Financial Performance - For the six months ended June 30, 2022, the Group recorded a turnover of approximately HK$7.43 million, representing a decrease of approximately 44% compared to HK$13.34 million in the corresponding period last year[16]. - Net loss attributable to shareholders was approximately HK$3.04 million for the reporting period, compared to a net profit of approximately HK$2.84 million in the same period last year[17]. - Loss per share was approximately 0.27 HK cents for the six months ended June 30, 2022, compared to a profit per share of approximately 0.25 HK cents in the previous year[18]. - Revenue from hotel operations decreased by approximately 53% to HK$5.03 million for the six months ended June 30, 2022, down from HK$10.68 million in the corresponding period of 2021[32]. - The Group recorded a share of loss from its interest in Fuzhou Harmony Piano of approximately HK$0.67 million due to declining market sales and rising manufacturing costs[39]. - The loss for the period was HKD 3,042,230, compared to a profit of HKD 2,838,600 in the previous year[188]. - Total comprehensive expense for the period was HKD 4,842,312, compared to a total comprehensive income of HKD 4,927,092 in the same period last year[191]. Asset and Liquidity Management - Net assets decreased by approximately HK$4.85 million to approximately HK$424.82 million as of June 30, 2022, compared with HK$429.67 million as of December 31, 2021[17]. - As of June 30, 2022, the Group had a net cash balance of approximately HK$43.78 million, down from HK$49.52 million as of December 31, 2021[44]. - The liquidity ratio as of June 30, 2022, was 4.26, down from 4.83 as of December 31, 2021[44]. - Cash and cash equivalents at the end of the period were HKD 43,782,805, down from HKD 49,520,268 at the beginning of the period[194]. - Current liabilities totaled HKD 10,697,963, compared to HKD 10,693,113 at the end of the previous year[190]. Hotel Operations and Market Conditions - The hotel occupancy rate dropped to 17% from 44% in the previous year, indicating a significant decline in demand[11]. - The average daily rate of hotel decreased to HK$287 from HK$326 year-on-year[11]. - The average occupancy rate for the Group's hotels was approximately 17%, representing a decrease of 61% compared to 44% in the same period last year[33]. - The average daily rate (ADR) for hotel rooms was approximately RMB287, which is a decrease of 12% from RMB326 in the corresponding period of 2021[33]. - Accommodation revenue from star-rated hotels was approximately HK$2.06 million, representing a decrease of approximately 67% over the corresponding period of 2021[35]. - Catering revenue generated approximately HK$2.16 million, representing 43% of hotel business turnover, an increase of 10 percentage points from 33% in the same period last year[37]. - The hotel operating income has declined periodically due to the local spread of the epidemic, with customer source accounting for 46% of the total, down 5 percentage points from 51% in the same period last year[37]. - The outlook for the commercial property market remains uncertain due to weak demand and ongoing pressure on rental rates[39]. Strategic Initiatives and Future Outlook - The Group aims to leverage its advantages in Fujian Province to enhance its long-term competitiveness in the tourism-related industries[20]. - The overall situation of the hotel industry is improving as the ability to respond to the epidemic enhances with the normalization of epidemic prevention and control in China[20]. - The Group plans to actively promote reform and integration to improve its internal impetus and long-term competitiveness for sustainable development[20]. - The Group aims to revitalize and optimize its asset management in Hong Kong to improve efficiency and release value[22]. - The Group is focusing on integrating hotel resources, cultural tourism, and equity investment to establish a core business industry chain and enhance competitiveness[22]. - The Group aims to improve operational efficiency through strict cost control measures to minimize adverse impacts from the epidemic[37]. - The Group plans to adopt a market-oriented incentive mechanism to seek new breakthroughs in cultural and tourism-related industries[47]. Corporate Governance and Management - The Company has adopted the Model Code for Securities Transactions as its code of conduct for Directors[78]. - The Company has a strong management team with extensive experience in finance and operational management[88]. - The Board comprises a total of nine Directors, including three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors[105]. - The Company has fully complied with the Corporate Governance Code provisions throughout the six months ended 30 June 2022[105]. - The internal audit team monitors compliance with policies and procedures, ensuring the effectiveness of risk management and internal control systems[129]. - The Audit Committee has reviewed the interim results and the interim report for the six months ended June 30, 2022[133]. - The Company has established measurable objectives for implementing the Board Diversity Policy and monitors progress towards these objectives[139]. Employee and Shareholder Information - As of June 30, 2022, the Group employed approximately 126 employees in Hong Kong and Xiamen, with remuneration based on performance and market rates[75]. - The Group operates a Mandatory Provident Fund (MPF) Scheme for all its employees in Hong Kong, with contributions based on a percentage of employees' salaries[181]. - As of June 30, 2022, at least 25% of the Company's total issued share capital was held by the public[182]. - The total contributions made by the Group to the retirement benefit plans during the review period are charged to the consolidated income statement[181].

Financial Performance - Revenue for the year ended December 31, 2021, was HK$23,427,000, a decrease of 8.8% from HK$25,689,000 in 2020[9] - Profit before tax increased to HK$2,683,000, up 142.5% from HK$1,108,000 in the previous year[9] - Profit for the year attributable to owners of the Company was HK$3,641,000, representing an increase of 79.7% compared to HK$2,027,000 in 2020[9] - Earnings per share for the year was HK$0.32, an increase of 77.8% from HK$0.18 in 2020[12] - Profit for the year attributable to owners of the Company increased by 79.63% to HK$3.64 million compared to HK$2.03 million in 2020[24] Assets and Liabilities - Total assets as of December 31, 2021, were HK$441,761,000, a slight increase from HK$439,508,000 in 2020[10] - Total liabilities decreased to HK$12,100,000 from HK$16,604,000 in 2020, indicating improved financial health[10] - The company reported a net asset value of HK$429,661,000 as of December 31, 2021, compared to HK$422,904,000 in 2020[10] - The net asset value of the Group was approximately HK$429.66 million as of December 31, 2021, up from HK$422.91 million in 2020[51] - The liquidity ratio was 4.83 as of December 31, 2021, compared to 4.16 in 2020[51] Revenue Breakdown - Accommodation revenue from star-rated hotel operations increased by approximately 7.37% to HK$10.18 million compared to the previous year[36] - The turnover from hotel operations was approximately HK$18.28 million, representing a decrease of approximately 2.19% from HK$18.69 million in 2020[29] - Catering revenue accounted for 33% of total revenue, amounting to HK$6.04 million, down from 37% in the previous year[35] - Rental revenue contributed 8% to total revenue, totaling HK$1.39 million, compared to 9% in the previous year[35] - Catering revenue reached approximately HK$6.04 million, representing about 33% of the hotel operation's turnover[39] Operational Challenges - Hotel accommodation revenue is significantly impacted by rising operational costs and COVID-19, with conference-related customers accounting for 54.15% of total clients[39] - The hotel occupancy rate decreased by 13.14% to 36.56% from 42.09% in 2020[33] - The Group is implementing cost-saving measures and minimizing cash spend to maintain financial stability during the pandemic[27] Management and Strategy - The Group plans to focus on investment management and operational management for continuous value-based growth[45] - The Group aims to strengthen and optimize its management team and seek breakthroughs in tourism-related business areas[47] - The Group will promote the integration of resources and diversify income sources to enhance overall asset return and enterprise value[47] - The Group aims to enhance management efficiency and optimize internal processes to drive future growth[48] - The Group plans to leverage opportunities from state-owned enterprise reforms to strengthen its management team and diversify revenue sources[49] Governance and Compliance - The Company continues to focus on compliance and governance standards as part of its operational strategy[80] - The Group maintained compliance with all relevant PRC laws and regulations regarding occupational health and safety during the reporting period[147] - The Board is unaware of any non-compliance with laws and regulations that significantly impact the Group's business and operations during the year[170] Shareholder Information - As of December 31, 2021, the total share capital of the Company was HK$898,839,029, divided into 1,145,546,000 ordinary shares[50] - The Group's share capital consisted of 1,145,546,000 ordinary shares as of December 31, 2021[138] - The register maintained by the Company shows that certain substantial shareholders had interests or short positions in the shares of the Company, with some holding 5% or more of the nominal value of any class of share capital[198] Directors and Management Experience - Ms. Chen Danyun has over 30 years of experience in international trade, corporate management, and investment management[84] - Mr. Chen Yang has approximately 30 years of experience in finance management and has held various management positions[86] - Mr. Wang Ruilian has over 35 years of experience in management and finance, previously serving as an executive director and general manager[94] - Ms. Weng Weijian has over 25 years of experience in risk management, accounting, and financial management[96] - The Company has a diverse board with extensive experience in finance, management, and corporate strategies[93] Risk Management - The Group identified key risks including economic downturns, operational challenges, regulatory compliance, and financial risks that could affect its business prospects[154] - The Group emphasizes the importance of maintaining good relationships with stakeholders, including customers, suppliers, and employees, to ensure sustainable business growth[167] - The Group is committed to sustainable operations while balancing the interests of various stakeholders, including customers, suppliers, and employees[168] Dividend and Financial Policies - The Group did not recommend the payment of a dividend for the year ended December 31, 2021[78] - The Directors do not recommend the payment of a dividend for the year ended December 31, 2021[119] - The Group did not have any outstanding bank loans or other borrowings as of December 31, 2021[54]

Financial Performance - For the six months ended June 30, 2021, the Group recorded a turnover of approximately HK$13.34 million, representing an increase of approximately 75.30% compared to HK$7.61 million in the corresponding period last year[11]. - Net profit attributable to shareholders was approximately HK$2.84 million for the reporting period, compared to a net loss of approximately HK$1.83 million for the same period in 2020[14]. - Profit per share was approximately 0.25 HK cents for the six months ended June 30, 2021, compared to a loss per share of approximately 0.16 HK cents for the same period in 2020[14]. - Revenue from hotel operations increased by approximately 155.8% to HK$10.68 million for the six months ended 30 June 2021, compared to HK$4.17 million for the same period in 2020[24]. - Total comprehensive income for the period was HKD 4,927,092, compared to a total comprehensive loss of HKD 2,581,818 in the same period last year[146]. - Profit before tax for the same period was HKD 2,412,766, compared to a loss of HKD 2,137,524 in the previous year[146]. - Profit for the period attributable to owners of the Company was HKD 2,838,600, a significant recovery from a loss of HKD 1,833,650 in the prior year[146]. Operational Metrics - Average daily rate of hotel increased to HK$326, a rise of 9% from HK$298 in the previous year[11]. - Hotel occupancy rate improved significantly to 44%, up 175% from 16% in the same period last year[11]. - Accommodation revenue was approximately HK$6.23 million, representing an increase of approximately 200% over the corresponding period of 2020[29]. - Catering revenue accounted for 33% of total revenue, amounting to HK$3.52 million for the six months ended 30 June 2021[28]. - Conference-related customers accounted for 51% of the total customer base, highlighting a focus on business clients[34]. Financial Position - Net assets increased by approximately HK$4.93 million to approximately HK$427.83 million as of June 30, 2021, compared to HK$422.90 million as of December 31, 2020[14]. - The Group maintained a low gearing ratio of 0.45% as of 30 June 2021, down from 0.6% on 31 December 2020, indicating a strong financial position[23]. - The Group had a net cash balance of approximately HK$52.98 million as of June 30, 2021, compared to HK$55.70 million on December 31, 2020[46]. - The net asset value of the Group was approximately HK$427.83 million as of June 30, 2021, with a liquidity ratio of 4.51[46]. - There were no outstanding bank loans or other borrowings by the Company and the Group as of June 30, 2021[48]. Strategic Outlook - The Group aims to continue its recovery and growth trajectory in the upcoming periods, focusing on enhancing operational efficiency and expanding market presence[14]. - Future strategies may include exploring new market opportunities and potential acquisitions to drive growth[14]. - The management remains optimistic about the overall market conditions and the Group's ability to capitalize on emerging trends[14]. - The Group plans to enhance management efficiency and diversify income sources by integrating hotel resources and expanding into new business formats[22]. - The Group plans to enhance its sales efforts in wedding banquets and catering services to diversify operations[34]. Corporate Governance - The Group emphasizes strong corporate governance with a focus on audit and remuneration committees led by experienced professionals[83]. - The Board consists of nine Directors, including three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors[87]. - The Company has received confirmation of independence from all three Independent Non-executive Directors, ensuring compliance with Listing Rules[88]. - The Board is responsible for the Group's risk management and internal control systems, which are reviewed annually for effectiveness[99]. - The Company fully complied with the Corporate Governance Code provisions throughout the six months ended 30 June 2021[87]. Management and Leadership - The company has a strong leadership team with extensive experience in various sectors, including tourism, finance, and corporate management[68]. - The management team includes professionals with advanced degrees in economics and business administration from reputable universities[66][68]. - The leadership has a proven track record in driving growth and managing complex corporate structures[68]. - The Company is committed to leveraging its experienced management team to navigate market challenges and opportunities[68]. Employee and Community Engagement - The Group is actively encouraging staff vaccinations to ensure safety and support business recovery during the ongoing pandemic[23]. - The Group's employer contributions to the MPF Scheme vest fully with employees upon contribution[141]. - The Group's subsidiary in mainland China participates in a state-managed retirement benefit plan operated by the government[141].

Financial Performance - Revenue for the year ended December 31, 2020, was HK$25,689,000, a decrease of 38.9% from HK$42,005,000 in 2019[9] - Profit before tax for 2020 was HK$1,108,000, down 89.1% from HK$10,219,000 in the previous year[9] - Profit for the year attributable to owners of the Company was HK$2,027,000, a decline of 78.6% compared to HK$9,462,000 in 2019[9] - The overall financial performance indicates significant challenges faced by the company in 2020, with a notable decline in profitability and revenue[9] - The Group recorded a revenue of approximately HK$25.69 million for the year ended 31 December 2020, representing a decrease of approximately 38.85% compared to HK$42.01 million in the previous year[30] - Net profit attributable to shareholders decreased to approximately HK$2.03 million, down 78.58% from HK$9.46 million in 2019[30] - Earnings per share for the year was approximately 0.18 HK cents, a decline of 78.31% from 0.83 HK cents in the previous year[30] - The turnover from hotel operations was approximately HK$18.69 million, representing a decrease of approximately 46.35% from HK$34.84 million in 2019[41] Assets and Liabilities - Total assets as of December 31, 2020, increased to HK$439,508,000 from HK$430,302,000 in 2019, representing a growth of 0.3%[10] - Total liabilities decreased to HK$16,604,000 in 2020 from HK$19,148,000 in 2019, a reduction of 13.3%[10] - Net assets rose to HK$422,904,000 in 2020, up from HK$411,154,000 in 2019, indicating a growth of 2.0%[10] - The company's capital debt ratio improved to 0.6% as of December 31, 2020, compared to 1.2% in 2019[46] - The Group had a net cash balance of approximately HK$55.70 million as of December 31, 2020, compared to HK$55.97 million in 2019, with a net asset value of approximately HK$422.91 million[86] Operational Metrics - The average daily room rate decreased by 6.03% to RMB 296 from RMB 315[30] - Hotel occupancy rate dropped to 42.09%, down 48.37% from 81.52% in the previous year[30] - Accommodation revenue was approximately HK$9.48 million, down about 55.17% from HK$21.15 million in 2019, accounting for 51% of total hotel revenue[52][53] - Catering revenue was approximately HK$6.90 million, representing about 36.89% of hotel operation turnover, compared to HK$9.90 million in 2019[57][62] - Rental revenue contributed approximately HK$1.64 million, accounting for 9% of hotel operation turnover[60][63] Strategic Initiatives - The Group plans to enhance internal driving force and long-term competitiveness by implementing new business strategies in response to the COVID-19 pandemic[33] - The Group aims to diversify income sources by integrating hotel resources and expanding into new business formats[34] - The Group plans to continue searching for assets with healthy profitability and excellent growth potential for long-term investment while enhancing operational efficiency through a multi-dimensional operation-supporting system[69] - The Group aims to leverage the strengths of Fujian Tourism Development Group Company Limited to seek breakthroughs in tourism-related and other business areas, promoting effective resource integration[73] Corporate Governance - The Directors do not recommend the payment of a dividend for the year ended December 31, 2020[30] - The Group had no significant contingent liabilities during the year under review[93] - The Group's policies regarding foreign currency risk exposure remained unchanged, with a focus on monitoring and potential hedging strategies[89] - The Group's procurement policy is based on maintaining good relationships and communication with suppliers as strategic partners[186] Human Resources - The Group had approximately 132 employees as of December 31, 2020, with remuneration packages based on performance and market rates[101] - The Group's commitment to employee training and retention is crucial for sustainable business growth[186] Environmental and Compliance - The Group reported no environmental claims, lawsuits, penalties, or administrative sanctions during the reporting period[170] - The Group is committed to minimizing environmental impact through various assessments and policies aligned with international best practices[170] - The Board is unaware of any significant non-compliance with laws and regulations affecting the Group's business and operations[190] Management Experience - Mr. Chen led FTDC to be ranked among the top 20 tourism groups in China for four consecutive years[117] - Ms. Chen has over 30 years of experience in international trade and corporate management[121] - Mr. Chen has approximately 30 years of experience in finance management[123] - Mr. Wang has over 35 years of experience in management and finance[132] - Ms. Weng has over 25 years of extensive experience in risk management and financial management[136]

Financial Performance - Revenue for the six months ended June 30, 2020, was approximately HK$7.61 million, a decrease of approximately 60.63% compared to HK$19.34 million in the same period last year [10]. - Net loss attributable to shareholders was approximately HK$1.83 million, compared to a net profit of approximately HK$1.85 million for the same period in 2019 [16]. - Loss per share was approximately 0.16 HK cents for the six months ended June 30, 2020, compared to a profit per share of approximately 0.16 HK cents in 2019 [18]. - The Group recorded a net loss attributable to owners of the Company of approximately HK$1.83 million, compared to a profit of HK$1.85 million for the same period in 2019, indicating a significant decline in performance [35]. - Revenue from hotel operations decreased by approximately 73.54%, amounting to HK$4.71 million for the six months ended June 30, 2020, down from HK$15.76 million in the corresponding period of 2019 [37]. - The Group's total turnover for the six months ended June 30, 2020, was approximately HK$7.61 million, representing a decrease of approximately 61% from HK$19.34 million in the previous year [35]. - Total comprehensive expense for the period was HKD 2,581,818, compared to a comprehensive income of HKD 1,727,459 in the prior year [176]. Hotel Operations - The hotel occupancy rate dropped to 16% from 78% in the same period last year, reflecting a decrease of approximately 79.49% [10]. - The average daily rate of hotel decreased to HK$298, down 5.70% from HK$316 in the previous year [10]. - Accommodation revenue was approximately HK$2.08 million, representing a decrease of approximately 79% over the corresponding period of 2019 [42]. - Catering revenue amounted to approximately HK$1.38 million, accounting for approximately 33% of the hotel operation's turnover [43]. - The average occupancy rate during the review period was approximately 16%, a decrease of 79.5% compared to 78% in 2019 [39]. - The average daily rate (ADR) was approximately RMB298, down 5.7% from RMB316 in the same period last year [39]. - The hotel business in Xiamen is expected to positively contribute to the Group's performance as it seizes growth opportunities in local tourism and restaurant industries [50]. Financial Position - Net assets decreased by approximately HK$2.58 million to approximately HK$408.57 million as of June 30, 2020, compared to HK$411.15 million as of December 31, 2019 [18]. - The gearing ratio of the Group as of June 30, 2020, was 1.0%, slightly down from 1.2% as of December 31, 2019, indicating a stable financial position [35]. - The Group had a net cash balance of approximately HK$50.00 million as of June 30, 2020, compared to HK$55.97 million as of December 31, 2019 [58]. - The liquidity ratio was 4.33 as of June 30, 2020, compared to 4.10 as of December 31, 2019 [58]. - The net asset value of the Group was approximately HK$412.70 million as of June 30, 2020, slightly down from HK$416.15 million as of December 31, 2019 [58]. - Cash and cash equivalents denominated in RMB amounted to HK$38,358,000 as of June 30, 2020, down from HK$44,280,000 as of December 31, 2019 [67]. - Cash and cash equivalents denominated in HK$ were HK$11,649,000 as of June 30, 2020, slightly down from HK$11,687,000 as of December 31, 2019 [67]. Strategic Plans - The company plans to review its existing business and update its business strategies to adapt to future developments, focusing on industries such as finance and high technology [27]. - The company aims to enhance management efficiency and optimize internal procedures to stimulate corporate resources' potential and intrinsic values [27]. - The Group plans to implement tight cost control measures and seek improvements in operational efficiency to mitigate the adverse impacts of rising operational costs and the COVID-19 pandemic [44]. - The Group aims to diversify its business by expanding into finance, high technology, and international trade while optimizing internal processes and enhancing management efficiency [35]. - The Group plans to expand into international trade business areas to broaden its revenue sources [56]. - The Group intends to diversify its income sources by expanding into finance, high technology, intelligent technology, and international trade [56]. Governance and Management - The Group emphasizes compliance with the Corporate Governance Code [107]. - The Company has fully complied with the Corporate Governance Code throughout the six months ended 30 June 2020 [108]. - The Board comprises a total of nine Directors, including three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors [108]. - The Company has received confirmation of independence from all three Independent Non-executive Directors, affirming their ability to provide objective challenges to management [115]. - The Company has implemented appropriate accounting policies to ensure the integrity of financial information [117]. - The Group's financial controls, risk management, and internal control systems are reviewed annually to ensure effectiveness [122]. - The Company has adopted a Board Diversity Policy, recognizing the benefits of diversity among Board members [138]. Employee Information - As of June 30, 2020, the Group had approximately 119 employees in Hong Kong and Xiamen [76]. - The remuneration package for employees was determined based on performance and prevailing market rates [76]. - Employee benefits expense decreased to HKD 5,858,208 from HKD 7,938,059, reflecting a reduction of 26% [176]. Shareholder Information - As of June 30, 2020, the total share capital of the Company was HK$898,839,029, divided into 1,145,546,000 ordinary shares [58]. - HC Technology and its associates hold 785,928,772 shares, representing approximately 67.95% of the issued share capital of the Company [162]. - Sino Earn beneficially holds 72,553,382 shares, with its issued share capital owned 30% by FHTI and 70% by FHIC [165]. - The Company has arranged appropriate insurance cover for its Directors against potential legal actions during the review period [149].

Financial Performance - Revenue for the year ended December 31, 2019, was HK$42,005,000, an increase of 4.7% from HK$39,146,000 in 2018[11] - Profit before tax for 2019 was HK$10,219,000, a decrease of 5.1% compared to HK$10,773,000 in 2018[11] - Profit for the year attributable to owners of the Company was HK$9,462,000, slightly up from HK$9,416,000 in 2018, representing a growth of 0.5%[11] - Total assets as of December 31, 2019, were HK$430,302,000, an increase from HK$420,600,000 in 2018[11] - Total liabilities increased to HK$19,148,000 in 2019 from HK$16,187,000 in 2018[11] - Earnings per share for 2019 was HK$0.83, up from HK$0.82 in 2018, reflecting a growth of 1.2%[15] - Net book value per share increased to HK$36.30 in 2019 from HK$35.66 in 2018[15] - The net assets as of December 31, 2019, were HK$411,154,000, compared to HK$404,413,000 in 2018, indicating a growth of 1.8%[11] - The company reported a profit margin of approximately 22.5% for the year 2019[11] Revenue Sources - The Group recorded a revenue of approximately HK$42.01 million for the year ended 31 December 2019, representing an increase of approximately 7.31% compared to HK$39.15 million in the previous year[32] - Net profit attributable to shareholders was approximately HK$9.46 million for the year ended 31 December 2019, a slight increase from HK$9.42 million in 2018[37] - The star-rated hotel operation generated approximately HK$34.84 million in turnover for the year, an increase of approximately 4.85% from HK$33.23 million in 2018[43] - Accommodation revenue was approximately HK$21.15 million, reflecting a 5.56% increase over the previous year, driven by higher room sales[50] - Catering revenue amounted to approximately HK$9.89 million, accounting for about 28% of the hotel operation's turnover, indicating a focus on developing the catering business since 2015[55] - Rental revenue from leasing the shopping center in the Group's hotel contributed approximately HK$2.77 million, representing about 8% of the hotel operation's turnover[55] - The rental income from properties in Hong Kong was approximately HK$7.16 million, marking a 21.05% increase compared to the previous year, attributed to leasing out previously unoccupied units[55] Future Plans and Strategies - The company plans to continue expanding its market presence and investing in new technologies in the upcoming fiscal year[11] - The Group plans to expand into industries such as finance, high technology, and international trade to diversify its business[36] - The Group aims to enhance management efficiency and optimize internal procedures to support future development strategies[36] - The Group plans to continue implementing cost control measures and improve operational efficiency to mitigate challenges posed by rising operational costs and the impact of COVID-19[55] Operational Metrics - The average daily room rate increased by 5.70% to HK$315 from HK$298 in the previous year[32] - The hotel occupancy rate improved to 81.52% from 80.12%, marking an increase of 1.75%[32] - The average occupancy rate for the hotel was approximately 81.52%, up 1.40% from 80.12% in 2018, while the average daily rate (ADR) increased by 5.70% to approximately RMB315 from RMB298[43] Financial Position - The gearing ratio as of 31 December 2019 was 1.20%, up from 1.00% in 2018, indicating a slight increase in financial leverage[39] - The Group's capital debt ratio was 1.20% as of December 31, 2019, compared to 1% in 2018, indicating a stable financial condition[41] - As of December 31, 2019, the Group had a net cash balance of approximately HK$55.97 million, an increase from HK$49.54 million in 2018[70] - The Group's net asset value was approximately HK$411.15 million, compared to HK$404.41 million in 2018, with a liquidity ratio of 4.10[70] - The Group has not charged any of its assets as of December 31, 2019, maintaining a strong financial position[70] - There were no outstanding bank loans or other borrowings as of December 31, 2019[70] Corporate Governance - The Company has fully complied with the Corporate Governance Code throughout the year 2019[165] - The Board comprises a total of nine Directors, including three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors[165] - The Group supports the establishment of good corporate governance practices and procedures, with the CEO delegated the authority to implement them[176] - The Board Diversity Policy aims to achieve diversity on the board, considering measurable aspects such as gender, age, ethnicity, knowledge, and length of service[181] - All board appointments will be based on meritocracy, with candidates evaluated against objective criteria[184] Risk Management - The Group's financial condition may be impacted by economic risks such as a severe downturn in the global economy and fluctuations in foreign currency exchange rates, inflation, and interest rates[122] - The Group faces operational risks, including competition and the need to keep pace with technological advances[122] - Regulatory risks include adherence to laws and regulations, as well as potential infringements on intellectual property rights[122] Environmental and Social Responsibility - The Group is committed to minimizing environmental impact and has undertaken various impact assessments aligned with international best practices[121] - The Group's policies promote clean operation and efficient resource use, aiming to minimize waste and emissions[121] - The Group's compliance with relevant PRC laws and regulations regarding occupational health and safety was maintained throughout the reporting period[121] Shareholder Information - As of December 31, 2019, Chen Danyun held 420,000 ordinary shares, representing a personal interest in the company[142] - Fujian Investment Holdings Company Limited and Fujian Huamin Industrial Group Company Limited each held 780,008,772 shares, accounting for approximately 50.1% of the total issued shares of the company[151] - HC Technology Capital Company Limited held 770,016,722 shares, representing approximately 50.0% of the total issued shares of the company[151] - The Company has maintained Director's liability insurance throughout the year[161]

Financial Performance - For the six months ended 30 June 2019, the Group recorded a revenue of approximately HK$19.34 million, representing an increase of approximately 8% compared to HK$17.87 million in the same period last year[12]. - Net profit attributable to shareholders was approximately HK$1.85 million, up from HK$1.08 million in the same period last year, reflecting a growth of 71.83%[12]. - Profit per share increased to approximately 0.16 HK cents for the six months ended 30 June 2019, compared to approximately 0.09 HK cents in the previous year, marking a rise of 77.78%[12]. - The Group's turnover for the same period amounted to approximately HK$19.34 million, representing an increase of approximately 8.2% from HK$17.87 million in the corresponding period of the previous year[36]. - For the six months ended June 30, 2019, the joint venture contributed approximately HK$1.7 million in profit[51]. - Total comprehensive income for the period was HKD 1,727,459, compared to HKD 850,979 for the same period in 2018, marking an increase of 102.5%[176]. Hotel Operations - The average daily rate of hotel increased to HK$316, up 9% from HK$290 in the same period last year[12]. - Hotel occupancy rate improved to 78%, an increase of 6.8% compared to 73% in the previous year[12]. - Revenue from star-rated hotel operations was approximately HK$15.80 million, reflecting a 4% increase from HK$15.20 million in the same period last year[36]. - Accommodation revenue was approximately HK$9.82 million, an increase of approximately 11.36% over the same period in 2018, driven by higher occupancy rates and ADR[39]. - Catering revenue generated approximately HK$4.19 million, accounting for approximately 27% of the Group's hotel revenue for the period[45]. Assets and Liabilities - Net assets increased by approximately HK$1.73 million to approximately HK$406.14 million as of 30 June 2019, compared to HK$404.41 million as of 31 December 2018[18]. - As of June 30, 2019, the Group had a net cash balance of approximately HK$52.87 million, an increase from HK$49.54 million as of December 31, 2018[54]. - The liquidity ratio was 4.18 as of June 30, 2019, slightly down from 4.26 as of December 31, 2018[54]. - Non-current assets as of June 30, 2019, totaled HKD 367,799,014, slightly down from HKD 369,045,922 at the end of 2018[179]. - Current assets increased to HKD 335,262,420 from HKD 324,600,662 at the end of 2018, indicating a growth of 3.1%[179]. Corporate Governance - The company emphasizes strong corporate governance with a focus on compliance with the Corporate Governance Code[93]. - The Group's governance structure includes audit, nomination, and remuneration committees to ensure comprehensive oversight[92]. - The independent non-executive directors play a crucial role in safeguarding the interests of shareholders and enhancing corporate integrity[91]. - The Company has complied with the Corporate Governance Code throughout the review period, ensuring adherence to recognized standards of corporate governance[94]. - The Board consists of nine Directors, including three Executive Directors, three Non-executive Directors, and three Independent Non-executive Directors, ensuring a balanced composition[94]. Strategic Plans - The Group plans to expand into industries such as finance, high technology, intelligence technology, and international trade to diversify its business[29]. - The Group aims to enhance its internal driving force and long-term competitiveness for sustainable development[29]. - The Group will continuously update its business plans and strategies to align with future developments[29]. - The Group aims to diversify income sources by expanding into finance, high technology, intelligent technology, and international trade[51]. - The Group will actively seek breakthroughs in tourism-related and other business areas, leveraging its position as a top tourism group in China[51]. Risk Management - The Group considers foreign currency risk exposure acceptable but will monitor it closely and use hedging instruments when necessary[56]. - The management has established ongoing processes for identifying, evaluating, and managing significant risks faced by the Group[111]. - The Board is satisfied that the risk management and internal control systems are reasonably effective and adequate for the year under review[111]. - The internal audit team monitors compliance and effectiveness of risk management and internal control systems, providing objective assurance to the Board[109]. Employee Information - The Group had approximately 144 employees as of June 30, 2019, with remuneration packages based on performance and market rates[68]. - The Company has ensured compliance with the Corporate Governance Code and relevant regulations, with regular reviews conducted by management and the Audit Committee[153]. Financial Reporting - The Company has implemented appropriate accounting policies to present financial information in a balanced and understandable manner to shareholders and stakeholders[104]. - The Company did not capitalize any borrowing costs during the period ended June 30, 2019, consistent with the previous period[63]. - The Group has adopted HKFRS 16, which requires recognition of a right-of-use asset and a lease liability for all leases, effective from January 1, 2019[198]. - The adoption of HKFRS 16 did not have a material effect on the opening balance of equity as of January 1, 2019[198].

Financial Performance - Revenue for the year ended December 31, 2018, was HK$39,146,000, representing an increase of 9% from HK$35,829,000 in 2017[24] - Profit before tax for 2018 was HK$10,773,000, up 15.6% from HK$9,325,000 in the previous year[24] - Profit for the year attributable to owners of the company was HK$9,416,000, an increase of 14.5% compared to HK$8,236,000 in 2017[24] - Earnings per share for 2018 was HK$0.82, compared to HK$0.69 in 2017, marking a 18.8% increase[29] - Net profit attributable to shareholders was approximately HK$9.42 million, an increase from approximately HK$7.95 million in 2017[76] Assets and Liabilities - Total assets as of December 31, 2018, were HK$420,600,000, slightly up from HK$416,208,000 in 2017[24] - The company reported total liabilities of HK$16,187,000 as of December 31, 2018, compared to HK$14,950,000 in 2017[24] - Net assets increased to HK$404,413,000 in 2018 from HK$401,258,000 in 2017, reflecting a growth of 0.5%[24] - The net asset value of the Group was approximately HK$404.41 million as of December 31, 2018, up from HK$401.26 million in 2017, reflecting a 0.5% increase[102] Revenue Breakdown - Revenue from hotel operations increased by around 11.70% to approximately HK$29.75 million for the year ended 31 December 2018 compared to the previous year[76] - Accommodation revenue reached approximately HK$20.04 million, marking a 29% increase over the corresponding period in 2017[91] - Catering revenue generated approximately HK$8.61 million, accounting for 26% of the hotel operation's turnover[94] - Rental revenue from the hotel shopping center contributed approximately HK$3.69 million, representing 11% of the hotel operation's turnover[94] - Rental income from properties in Hong Kong was approximately HK$5.92 million, a decrease of 2.69% compared to HK$6.08 million in the previous year[94] Operational Efficiency and Future Plans - The management remains optimistic about future growth prospects, focusing on market expansion and new product development[24] - The Group plans to expand into industries such as finance, high technology, and intelligence, while optimizing internal procedures to enhance management efficiency[70] - The Group aims to seek assets with healthy profitability for long-term investment while improving brand influence[97] - The Group plans to enhance operational efficiency and lower costs through a multi-dimensional operation-supporting system[97] Employee and Management - As of December 31, 2018, the Group had approximately 132 employees in Hong Kong and Xiamen[119] - The Group has a comprehensive career advancement plan and training programs to enhance employee capabilities[119] - Professional and social events are organized to promote communication and cohesion across departments[119] - The Group's executive leadership saw changes, with key resignations and appointments affecting governance[193] Compliance and Governance - The Group confirms compliance with all relevant statutes, rules, and standards throughout the year[120] - The Board was unaware of any non-compliance with laws and regulations that could significantly impact the Group's business operations during the reporting period[192] - The Group's annual report highlights the importance of compliance and strategic relationships in ensuring operational success[192] Environmental and Social Responsibility - The Group emphasizes the importance of environmental protection and corporate social responsibilities, as detailed in the Environmental, Social and Governance Report[121] - The Group is committed to minimizing environmental impact and has implemented various policies in line with international best practices[181] - The Group's commitment to sustainable operations includes balancing the interests of various stakeholders, which is crucial for long-term business growth[191] Risks and Challenges - Economic risks include fluctuations in foreign currency exchange rates, inflation, and interest rates affecting customer spending and profit margins[182] - Operational risks involve competition, technological advancements, and the ability to attract and retain skilled personnel[183] - The Group faced challenges in effectively competing within its operating environment, including difficulties in timely and cost-effective adaptation to technological innovations[188] - The Group has experienced significant management turnover, impacting its ability to attract, train, and retain qualified personnel[188]