Financial Performance - Profit attributable to owners of the Company for 2023 was a loss of HK$814,937, compared to a profit of HK$86,148 in 2022[7]. - Basic earnings per share for 2023 was HK$(2.15), a significant drop from HK$0.23 in 2022[7]. - Total net assets decreased to HK$11,604,584, a decline of 8.3% from the previous year[7]. - For the year ended December 31, 2023, the Group recorded a loss of HK$873.1 million, compared to a profit of approximately HK$88.8 million for the year ended December 31, 2022, primarily due to fair value losses on investment properties and impairment losses on properties under development and held for sale[71]. - The Group's investment properties experienced significant fair value losses, impacting overall profitability for the year[71]. - The accumulated profits available for distribution to shareholders as of December 31, 2023, amounted to HK$7,086,774,000, down from HK$7,521,841,000 in 2022[84]. Dividends - The dividend payout ratio for 2023 was (13%), indicating no dividends were paid compared to a payout of 165% in 2022[7]. - The Board of Directors proposed a final cash dividend of HK$0.17 per share, in addition to an interim cash dividend of HK$0.11 per share paid on September 15, 2023, totaling HK$0.28 per share for the fiscal year[71]. - An interim cash dividend of HK$0.11 per share was paid on September 15, 2023, with a recommended final cash dividend of HK$0.17 per share, totaling HK$0.28 for the year[81]. Market Conditions - China's GDP grew by 5.2% in 2023, reaching RMB126.06 trillion, while the real estate sector saw a decline of 9.6%[26]. - In the Foshan area, new property supply and transactions dropped by 66% and 21%, respectively[26]. - A-grade commercial properties in Shanghai experienced a 24% increase in supply, while net intake of office space decreased by 17%[26]. - The average rent for office space in Shanghai fell by 6% to RMB7.2 per square meter, with a vacancy rate of 20%[26]. - The vacancy rate for Grade A office space rose to 12.9% by December 2023, with overall rent down 5.3% compared to 2022[29]. - The Hong Kong mortgage rate increased from 1.5% in 2022 to 4.125% in 2023, leading to a 6.8% drop in average residential prices[29]. Property Performance - For the year ended December 31, 2023, the total rent received by the Group amounted to HK$302.1 million, a slight increase of 0.3% compared to 2022[31]. - The occupancy rate for major properties is 85%[31]. - In Foshan, 99% of residential units in The Grand Riviera have been sold, generating total sale proceeds of approximately HK$6 billion[31]. - The residential property project "Elegance Garden" has sold 30.8% of available units, generating approximately RMB33.4 million in sale proceeds[31]. - The income from One-Eight-One Hotel amounted to HK$77.1 million, a decrease of 6.2% compared to 2022[31]. - Revenue from Kimpton Kitalay Samui hotel increased by 104% to HK$96.3 million compared to 2022[31]. Strategic Acquisitions - The Group has acquired a 50% share of Cromwell Italy Urban Logistics Fund, holding seven logistic centers in Northern Italy[33]. - In April 2023, the Group acquired Barratt House in London, generating annual rental revenue of approximately GBP2.5 million[53]. - The Group also acquired a 50% stake in Cromwell Italy Urban Logistics Fund, holding a 25% effective interest in the properties[53]. Economic Outlook - Economic forecasts for 2024 predict a global growth rate similar to that of 2023, with the Euro area expected to grow by 0.9% and the UK by 0.6%[75]. - China's growth rate for 2024 is projected to be around 5%, with increased capital inflows as foreign investors recognize the resilience of the economy[75]. - The anticipated interest rate cut by the Federal Reserve in the second half of 2024 is expected to narrow the interest-rate differential between the US and China, reducing arbitrage opportunities for firms[75]. - The Hong Kong economy is forecasted to grow between 2.5% and 3.5% in 2024, supported by strong private consumption and property market investments[76]. Environmental Initiatives - The Group aims to reduce energy consumption by 3% in its Hong Kong properties by 2025, using 2021 as the baseline[94]. - The Group replaced pre-cooling air units in hotel buildings to enhance cooling efficiency and reduce energy consumption during the Reporting Period[94]. - The Group participated in Earth Hour 2023 by turning off non-essential lights and appliances for one hour, demonstrating support for energy conservation[96]. - The Group has introduced eco-friendly products, including biodegradable takeaway meal boxes and oxo-biodegradable paper cups, to minimize environmental impact[96]. - Water consumption decreased from 28,527.49 m³ in 2022 to 19,944.80 m³ in 2023, representing a reduction of approximately 30.3%[101]. - Water consumption per employee improved from 100.80 m³ in 2022 to 69.74 m³ in 2023, a decrease of about 30.8%[101]. Employee Management - The total employee turnover rate increased from 18% in 2022 to 36% in 2023, attributed to dynamic employment market conditions[111]. - During the reporting period, 57% of employees received training, with an average of 1.64 training hours per employee, down from 2.28 hours in 2022[114]. - The Group did not experience any work-related fatalities over the past three years, with work injury-related lost workdays decreasing from 386 days in 2022 to 31 days in 2023[116]. - The Group's employee retention strategy focuses on enhancing workplace satisfaction through competitive compensation and benefits, resulting in positive feedback from staff regarding workplace facilities[134]. - The Group's commitment to employee well-being includes participation in the "Good Mood @ Healthy Workplace" program, promoting mental health and a positive workplace culture[141]. Governance and Compliance - The Audit Committee met twice in the year, with a 100% attendance rate from all members, ensuring oversight of financial statements and internal controls[183]. - The Group is committed to effective risk management policies and internal control procedures to manage potential risks[189]. - The Audit Committee comprises four Independent Non-executive Directors, ensuring a robust review of financial statements and audit processes[198]. - No irregularities or major weaknesses in internal controls were found by the auditor during the 2023 Audit Committee meeting[189]. - The Group's operational manual and policies ensure adherence to quality standards, with department heads overseeing compliance through regular inspections[119].

Financial Performance - The company reported a total revenue of HKD 378,057,000 for the year ending December 31, 2023, compared to HKD 353,624,000 in 2022, representing an increase of approximately 6.9%[14] - The company experienced a net loss of HKD 873,087,000 for the year, compared to a net loss of HKD 715,240,000 in the previous year, indicating a deterioration in financial performance[14] - Basic loss per share was reported at HKD 2.15 for the year 2023, compared to HKD 0.23 in 2022[13] - The company reported a loss of HKD 873,087,000 for the fiscal year 2023, compared to a profit of HKD 88,799,000 in 2022[35] - Total comprehensive expenses for the year amounted to HKD 938,044,000, significantly higher than HKD 390,374,000 in the previous year, indicating an increase of approximately 140%[35] - The company’s share of losses from joint ventures was HKD 884,956,000, indicating a significant impact on overall financial performance[44] - The group recorded a comprehensive loss of approximately HKD 873,100,000 for the year ending December 31, 2023, a decrease of about HKD 961,900,000 compared to a profit of HKD 88,800,000 in 2022[82] Assets and Liabilities - Total assets decreased from HKD 14,307,738 thousand in 2022 to HKD 12,641,679 thousand in 2023, a decline of approximately 11.6%[17] - Current assets decreased from HKD 3,664,537 thousand in 2022 to HKD 2,693,394 thousand in 2023, representing a reduction of about 26.4%[17] - Cash and cash equivalents decreased from HKD 1,596,788 thousand in 2022 to HKD 1,156,972 thousand in 2023, a decrease of approximately 27.6%[17] - Non-current liabilities decreased from HKD 1,647,749 thousand in 2022 to HKD 1,037,095 thousand in 2023, a decline of approximately 37.1%[19] - Total equity attributable to shareholders decreased from HKD 12,599,373 thousand in 2022 to HKD 11,566,790 thousand in 2023, a decrease of about 8.2%[18] - The company’s borrowings due within one year increased significantly from HKD 992,230 thousand in 2022 to HKD 1,774,569 thousand in 2023, an increase of about 78.9%[17] Revenue Streams - Total revenue for the year was HKD 732,311,000, with significant contributions from property investment, development, management, and hotel operations[67] - The company’s customer revenue reached HKD 302,062,000 from property investment, with additional contributions from other segments[67] - The hotel business generated total revenue of approximately HKD 77,100,000, down by about HKD 5,100,000 from HKD 82,200,000 in 2022, resulting in EBITDA of approximately HKD 20,700,000[101] - The economic hotel segment's revenue increased from approximately HKD 6.4 million in 2022 to approximately HKD 11.8 million in 2023[133] - The hotel segment recorded total revenue of approximately HKD 96.3 million, an increase of approximately HKD 49.1 million compared to HKD 47.2 million in 2022, with EBITDA of approximately HKD 33.2 million[137] Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.11 per share for 2023, down from HKD 0.18 per share in 2022, representing a reduction of approximately 38.9%[52] - The final dividend per share for the year ending December 31, 2023, is HKD 0.17, down from HKD 0.20 in 2022, totaling approximately HKD 64,359,000 compared to HKD 75,717,000 in the previous year[76] - The board proposed a final cash dividend of HKD 0.17 per share for the fiscal year ending December 31, 2023, down from HKD 0.20 in 2022, totaling HKD 0.28 per share for the year[105] - The company will suspend share transfer registration from May 29, 2024, to May 31, 2024, for shareholders to qualify for the final dividend[59] Operational Highlights - The company plans to hold its Annual General Meeting on May 23, 2024, to discuss future strategies and performance[10] - The company has a clear division of responsibilities between the Chairman and the CEO, with the current Chairman possessing extensive market experience[4] - The company is committed to transparency and has adhered to the standards for securities trading as per the listing rules[5] - The management team is focused on enhancing operational efficiency and asset value to improve overall financial performance[131] - The management remains optimistic about local consumption and overall business activity, driven by government economic stimulus policies and a resurgence in the retail and real estate markets[131] Property and Investment Developments - The company has identified a new property investment segment in the UK, which may contribute to future revenue streams[42] - The group completed the acquisition of Barratt House in London, generating rental income of approximately HKD 18,100,000 since the acquisition date, with a 100% occupancy rate[92] - The group acquired four warehouses in Japan, two office buildings in Australia, and seven logistics centers in Italy, leading to a turnaround from a loss of approximately HKD 24,100,000 in 2022 to a profit of approximately HKD 22,100,000 in 2023 from joint ventures[104] - The first phase of the residential development project, named Xuan Long Ya Yuan, officially launched sales in November 2023, with 37 units sold generating revenue of approximately RMB 33.4 million[124] - The company completed construction of a new residential project with a total developable area exceeding 142,000 square meters, providing 1,084 residential units[123] Market Conditions and Future Outlook - The company’s tax rate for its Chinese subsidiaries is 25%, which may affect future profitability and cash flow projections[49] - The overdue accounts receivable amounted to HKD 2,505,000, with no provisions for impairment due to the good credit history of customers[55] - The group observed a stable increase in occupancy rates in Shanghai, indicating growing demand for properties in that area[117] - Management remains confident in the long-term success and competitiveness of the group, despite facing challenges in the market[107] - The group plans to enhance its leasing strategy to attract new tenants and improve rental income in 2024[117]

Financial Performance - The group recorded sales revenue of approximately HKD 54,900,000 for the period ending June 30, 2023, an increase of approximately HKD 12,300,000 or 29% compared to HKD 42,600,000 in 2022[1]. - Total revenue for the six months ended June 30, 2023, was HKD 372,584,000, a slight decrease of 0.5% compared to HKD 376,776,000 in the same period of 2022[67]. - The company reported a net loss of HKD 229,444,000 for the six months ended June 30, 2023[60]. - The total comprehensive loss for the period was HKD 365,450,000[60]. - The company reported a loss before tax of HKD 247,072,000, compared to a profit of HKD 128,974,000 in the prior year[67]. - The net loss attributable to shareholders was HKD 229,444,000, compared to a profit of HKD 119,497,000 in the same period last year[67]. - Basic loss per share was HKD (0.61), compared to earnings of HKD 0.32 per share in the previous year[67]. - Total comprehensive loss for the period was HKD 369,518,000, significantly higher than HKD 137,623,000 in the prior year[68]. - The company’s total assets as of June 30, 2023, were HKD 12,158,207,000[60]. - The company’s total assets decreased to HKD 12,228,285,000 from HKD 12,168,109,000 year-over-year[70]. Revenue Breakdown - Total revenue from hotel and catering business was approximately HKD 37,400,000 for the period ending June 30, 2023, a decrease of approximately HKD 23,300,000 compared to HKD 60,700,000 in 2022[5]. - Revenue from the hotel operations segment increased to HKD 90,462,000, up 11.5% from HKD 80,804,000 year-over-year[85]. - Revenue from the sales of products rose to HKD 54,862,000, representing a 28.8% increase from HKD 42,580,000 in the previous year[85]. - Rental income decreased to HKD 145,745,000, down 7.1% from HKD 156,949,000 in the previous year[67]. - Interest and dividend income fell to HKD 31,451,000, a decrease of 20.9% from HKD 39,832,000[67]. - Revenue from trade and manufacturing amounted to HKD 44,088,000, while hotel operations generated HKD 80,804,000[186]. - The Hong Kong market contributed HKD 73,264,000 to total revenue, while China contributed HKD 89,830,000[175]. Operational Highlights - The overall construction project was completed by the end of 2022, with the sales center and demonstration units expected to be operational by August 2023[3]. - Market research and soft promotion activities have commenced, with the first public sale phase anticipated in late October 2023[3]. - The company aims to improve operational efficiency in its hotel management segment, which has shown strong revenue performance[186]. - The company plans to continue expanding its market presence and investing in new product development[85]. - Future outlook includes a focus on enhancing customer contracts and exploring new market opportunities in Asia[181]. Financial Position - As of June 30, 2023, the group had bank loans of approximately HKD 1,475,153,000, which need to be repaid due to covenant breaches, with ongoing negotiations for loan terms[33]. - The group has confidence in securing alternative financing sources to ensure the continuity of operations despite potential loan repayment demands[33]. - The company held cash and cash equivalents of HKD 381,535,000 as of June 30, 2023[60]. - The cash and cash equivalents at the end of the period were HKD 1,427,049,000, down from HKD 1,726,506,000 at the end of the previous period[95]. - Current liabilities increased to HKD 2,806,691,000, compared to HKD 1,524,908,000 in the previous year[70]. Shareholder Information - The interim cash dividend is HKD 0.11 per share, payable on August 10, 2023[51]. - The ex-dividend date is September 1, 2023, with the last deadline for submitting transfer documents on September 4, 2023[51]. - The total number of issued ordinary shares is 378,583,440[51]. - The annual general meeting was held on May 25, 2023, indicating ongoing shareholder engagement[65]. Tax and Provisions - The current period's tax expenses included HKD 2,832,000 for Hong Kong profits tax and HKD 1,964,000 for Chinese corporate income tax[199]. - The group has recognized a provision for Chinese land value-added tax, with specific liabilities depending on the tax bureau's assessment[200]. - The total tax expenses for the current period were HKD 4,796,000, compared to HKD 8,487,000 in the previous period[199]. - The group recorded a prior year excess tax provision of HKD (3,489,000) for Hong Kong profits tax[199]. Investment Activities - The group acquired investment properties worth approximately HKD 425,248,000 through the acquisition of subsidiaries[40]. - Investment property fair value changes resulted in a gain of HKD 89,948,000[193]. - The group reported a loss of HKD 495,000 from the sale of properties, plants, and equipment[193]. - The fair value changes of financial assets recognized in profit or loss amounted to HKD 1,030,000[193]. Cash Flow - The net cash generated from operating activities was HKD 57,181,000, compared to a net cash used of HKD 54,059,000 in the same period last year[95]. - The company incurred a net cash outflow from investing activities of HKD 439,967,000, compared to HKD 241,036,000 in the previous year[95]. - New borrowings amounted to HKD 377,834,000, while repayments of borrowings were HKD 28,648,000[95].

Financial Performance - The company reported a net loss of HKD 227.166 million for the six months ended June 30, 2023, compared to a net profit of HKD 119.339 million in the same period last year[16] - Total comprehensive expenses for the period amounted to HKD 369.518 million, with HKD 365.450 million allocated to the company's shareholders[9][11] - Revenue from customer contract rentals, interest, and dividend income was HKD 372.584 million, a slight decrease from HKD 376.776 million in the previous year[16] - The fair value loss on equity instruments recognized in other comprehensive income was HKD 6.959 million, compared to HKD 16.355 million in the prior period[5] - Exchange differences arising from the translation of foreign operations resulted in a loss of HKD 133.908 million, down from HKD 236.818 million in the previous year[7] - Total assets decreased to HKD 12.869 billion as of June 30, 2023, from HKD 14.308 billion at the end of the previous fiscal year[24] - Current liabilities rose to HKD 2.807 billion, compared to HKD 1.525 billion at the end of the previous fiscal year, primarily due to an increase in short-term borrowings[24] - The company's equity attributable to shareholders decreased to HKD 12.158 billion from HKD 12.599 billion at the end of the previous fiscal year[13] - Basic loss per share was HKD 0.61, compared to earnings per share of HKD 0.32 in the same period last year[16] - The company reported a net loss of HKD 27,382 thousand for the period, with a segment loss of HKD 197,391 thousand[49] - Investment property fair value loss amounted to HKD 235,929 thousand, significantly impacting the overall financial performance[49] - The company's basic loss per share was HKD 229,444 thousand, compared to a profit of HKD 119,497 thousand in the same period last year[70] - The group reported an unaudited consolidated loss of approximately HKD 227.2 million for the period ending June 30, 2023, a significant decline from a profit of HKD 119.3 million in the same period in 2022, primarily due to a shift from investment property fair value gains to losses[76] Revenue and Income - Total revenue for the six months ended June 30, 2023, was HKD 372,584 thousand, with customer revenue contributing HKD 145,745 thousand[49] - Gross rental income for the period ending June 30, 2023, was approximately HKD 145.7 million, a decrease of 7.1% compared to HKD 156.9 million in the same period in 2022[78] - The rental income from Chuangxing Plaza decreased by HKD 10.9 million to HKD 27.2 million, with an occupancy rate of 73% as of June 30, 2023[79] - Chuangxing Bank Centre generated rental income of approximately HKD 47.9 million, with a new lease agreement reducing monthly rent by 23.8% to HKD 6.08 million starting February 19, 2024[80] - The rental income from Shitangfang increased by HKD 2.7 million to HKD 6.2 million, with an occupancy rate of 67% as of June 30, 2023[83] - Fuhui Court generated rental income of approximately HKD 3.3 million, with a net rental income of HKD 1.7 million after rental offsets, and the property was fully leased as of June 30, 2023[84] - The company completed the acquisition of Barratt House, a commercial property in London, with a total area of 16,200 square feet, generating rental income of HKD 5,500,000 from the acquisition date to June 30, 2023, and achieving a 100% occupancy rate[87] - The company recorded sales revenue of HKD 54,900,000 for the period ending June 30, 2023, a 29% increase compared to HKD 42,600,000 in 2022, with 18 residential units and 49 parking spaces sold[97] - As of June 30, 2023, 99% of the 5,264 residential units (5,238 units) and 50% of the 4,670 parking spaces (2,331 spaces) were sold, generating cumulative sales revenue of approximately HKD 6 billion, with potential additional revenue of HKD 700 million from unsold properties[98] - Office rental income decreased by 14% to HKD 50.9 million in 2023 compared to HKD 59.1 million in 2022[109] - Budget hotel revenue increased from HKD 3.2 million in 2022 to HKD 5.5 million in 2023, driven by the full reopening of China's tourism industry[112] - Hotel and catering business total revenue decreased to HKD 37.4 million in 2023 from HKD 60.7 million in 2022, resulting in a net loss of HKD 32.1 million after depreciation[124] - Hotel total revenue reached HKD 47.7 million in 2023, with an EBITDA profit of HKD 15.2 million, exceeding budget expectations[126] - Joint venture performance increased from HKD 4.4 million in 2022 to HKD 9.1 million in 2023, driven by new property acquisitions and fair value gains[116] Investment Properties - The company's investment properties increased to HKD 9.582 billion, up from HKD 9.480 billion at the end of the previous fiscal year[24] - The overall occupancy rate of the company's major investment properties was maintained at 80% as of June 30, 2023[91] - The company's flagship property in Shanghai, located at 288 Nanjing West Road, offers over 516,000 square feet of office and commercial space with a 74% office occupancy rate and 100% retail unit occupancy rate as of the reporting date[93] - The company acquired a land plot in Foshan's Sanshui District for RMB 775,500,000 in 2019, with a total area of 33,670 square meters and a plot ratio of 3.2, offering 1,084 residential units and 874 parking spaces[100][102] - The company acquired four logistics centers in Japan and two commercial properties in Australia, with occupancy rates ranging from 94% to 100%[127] - In July 2023, the company invested in a new joint venture, acquiring 50% of Cromwell Italy Urban Logistics Fund, which holds seven logistics centers in Northern Italy[129] - The company provided a shareholder loan of EUR 7 million (approximately HKD 61.4 million) to the new joint venture, expecting additional benefits from portfolio expansion and geographic diversification[129] Dividends and Shareholder Information - The board declared an interim cash dividend of HKD 0.11 per share for 2023, down from HKD 0.18 per share in 2022[63] - The company declared an interim dividend of HKD 0.11 per share for 2023, compared to HKD 0.18 per share in 2022, representing a decrease of 38.9%[71] - The company's 2023 interim results report will be sent to shareholders and published on the company's website and the HKEXnews website around September 1, 2023[135] Tax and Financial Reporting - The company's tax expenses included HKD 2,832 thousand for Hong Kong profits tax and HKD 1,964 thousand for China enterprise income tax[68] - The company's deferred tax liability decreased by HKD 24,383 thousand, reflecting changes in tax provisions and estimates[68] - The company's financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) and the Hong Kong Companies Ordinance, with no qualifications or emphasis of matter noted by the independent auditor[26][27][28] - The company has adopted new and revised HKFRS, including HKFRS 17 (Insurance Contracts) and amendments to HKAS 1, HKAS 8, and HKAS 12, effective from January 1, 2023, with no significant impact on financial performance or disclosures[37] - The company's financial statements are prepared on a historical cost basis, with certain properties and financial instruments measured at fair value where applicable[35] - The company's Chinese subsidiaries are subject to a corporate income tax rate of 25% under the PRC Enterprise Income Tax Law[42] - The company has no potential ordinary shares, and therefore, diluted earnings per share are not reported[44] - The company's financial statements are presented in Hong Kong dollars (HKD), with comparative figures extracted from the consolidated financial statements for the year ended December 31, 2022[27] - The condensed consolidated financial statements for the six months ended June 30, 2023, were reviewed by the company's auditor, Deloitte Touche Tohmatsu, in accordance with Hong Kong Standard on Review Engagements 2410[139] Operational and Strategic Updates - The company has identified a new geographical segment for property investment in the UK, which has been consolidated into the property investment segment[38] - The company's reportable segments under HKFRS 8 are: Property Investment, Property Development, Trade and Manufacturing, Property Management, and Hotel Operations[39][46] - The company's hotel business in Guangzhou continues to operate under the Hanting brand, with a new restaurant, "The Praya," opening on May 31, 2023, to enhance customer experience and loyalty[105][107] - The company invested in a hotel property in Koh Samui, Thailand, through the acquisition of Choengmon Real Estate Company Limited in 2021[108] - Management remains cautious about future investment opportunities while focusing on improving operational efficiency and asset value enhancement[130] - The company has substantially complied with the Corporate Governance Code as set out in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, with certain exceptions[131] - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules[132] - The Audit Committee reviewed the accounting policies and standards adopted by the group, discussed audit, internal control, and financial reporting, including the review of unaudited interim financial reports[139] Liabilities and Payables - The company's trade payables as of June 30, 2023, were HKD 9,034 thousand, a decrease from HKD 9,599 thousand as of December 31, 2022[60] - The company's construction costs and retention guarantees decreased to HKD 80,943 thousand from HKD 136,570 thousand in the previous period[60] - The company's investment property deposits received increased to HKD 133,420 thousand from HKD 130,582 thousand in the previous period[60]

Financial Performance - Profit for the year attributable to owners of the Company was HK$86.148 million, down from HK$427.302 million in 2021, representing a decline of approximately 80%[6] - Basic earnings per share decreased to HK$0.23 in 2022 from HK$1.13 in 2021, reflecting a significant drop[6] - Dividend per share was HK$0.38 in 2022, down from HK$0.46 in 2021, with a dividend payout ratio of 165%[6] - For the year ended 31 December 2022, the Group recorded a profit of HK$88.8 million, representing a decrease of 79% compared to 2021[70] - The total rent received by the Group amounted to HK$301.1 million, a drop of HK$4.7 million or 1.5% compared to 2021, with an occupancy rate of 73%[70] - For the year ended December 31, 2022, the Group recorded sales revenue of approximately HK$82.8 million, a decrease of approximately HK$156.2 million from HK$239.0 million, representing a decrease of 65.4%[187] Assets and Liabilities - Total assets for 2022 were HK$15,832.646 million, a decrease from HK$16,183.872 million in 2021[6] - Total liabilities increased to HK$3,172.657 million in 2022 from HK$2,949.461 million in 2021[6] - The company reported a total net asset value of HK$12,659.989 million in 2022, a slight decrease from HK$13,234.411 million in 2021[6] - Shareholders' funds decreased from approximately HK$13,146.7 million as of December 31, 2021, to approximately HK$12,599.4 million as of December 31, 2022, representing a net decrease of approximately HK$547.3 million[172] - The Group's net debt balance as of December 31, 2022, amounted to approximately HK$574.3 million, a decrease of approximately HK$723.1 million from a net cash balance of approximately HK$148.8 million in 2021[172] Economic Environment - The global GDP growth for 2022 is projected to be between 3.2% and 3.4%, down from 6% in 2021[30] - Future outlook remains cautious, with expectations for gradual recovery in the economic environment[30] - The US GDP grew by 2% in 2022, with private consumption contributing only 33% to the economy compared to over 50% in 2021[35] - The EU GDP increased by 3.5% in 2022, despite inflation peaking at 10.6% in October[36] - The UK experienced a 4.0% annual GDP growth in 2022, but the economy shrank by 0.5% in December[38] - Japan's economy grew by 1.1% in 2022, down from 2.1% in 2021, with private consumption and business investment both increasing by around 2%[38] - Mainland China's GDP growth was 3% in 2022, with total GDP surpassing RMB120 trillion (US$18 trillion) for the first time[38] Market Trends - The information and technology sector in Mainland China saw a 9% increase, while the property market remained weak with declining investment and sales[39] - The residential property market saw mass residential values drop by 11% and luxury market values by 4%, while the overall office market vacancy rate increased from 9% to around 12%[40] - The hotel "One-Eight-One" will adopt a new business model by adding a neo-classical Chinese restaurant in Q2 2023, aiming to attract both hotel guests and new patrons[75] - The management expects the tourism industry in Thailand, including Koh Samui, to recover rapidly in 2023 as Covid-19 restrictions are lifted[195] Government and Policy Support - The Hong Kong government implemented a HK$10,000 per person Consumption Voucher Scheme, costing HK$66.4 billion, to support individuals[42] - The SME Financing Guarantee Scheme increased the loan ceiling from HK$6 million to HK$9 million, extending the repayment period from 8 to 10 years[42] - The Hong Kong government provided relief measures including a consumption voucher plan costing HKD 66.4 billion and increased loan limits for SMEs[69] Environmental, Social, and Governance (ESG) Initiatives - The Executive Committee conducted a materiality assessment to identify and prioritize ESG issues relevant to the business, aiding in the formulation of long-term ESG strategies[103] - The Group emphasizes the importance of stakeholder feedback in shaping its ESG strategies and operational policies[105] - The company has implemented various environmental protection measures to control energy consumption and carbon emissions amid rising temperatures[152] - The company encourages green products in its procurement process, favoring suppliers with environmentally sound practices and compliance with local laws[135] Operational Efficiency and Future Plans - The management is focused on improving overall financial performance through operational efficiency and asset enhancement while cautiously seeking other investment opportunities[165] - The management expects cash balances to improve steadily through the sale of remaining residential and carpark units of "The Grand Riviera" and revenue from the Sanshui residential project[172] - The management plans to refinance the loan maturity portfolio in the coming year to further reduce liquidity risk[173] Investment and Development - The Group made two overseas investments in 2022, acquiring an office building in Australia and a warehouse in Hokkaido, Japan, with effective holdings of 12.5% and 50% respectively[45] - The Group acquired land in Sanshui District for RMB775.5 million, with a site area of approximately 33,670 square meters and an accommodation value of RMB7,198 per square meter[190] - The residential development, named Elegance Garden, will consist of 1,084 units with a total developable area exceeding 142,000 square meters[190]

Sales Performance - As of December 31, 2022, a total of 5,225 out of 5,264 residential units (99%) and 2,234 out of 4,670 parking spaces (48%) were successfully sold, generating total sales revenue of approximately HKD 6 billion[9]. - The management anticipates an additional total sales revenue of approximately HKD 800 million from unsold properties, including residential units, parking spaces, and retail shops[9]. - The group recorded sales revenue of approximately HKD 82.8 million for the fiscal year ending December 31, 2022, a significant decrease of approximately HKD 156.2 million or 65.4% compared to approximately HKD 239 million in 2021, with the number of residential units sold dropping from 63 to 20[52]. - The company plans to adjust its sales strategy and timeline due to the slow recovery of the Chinese real estate market, with marketing promotions set to begin in June 2023[31]. Financial Performance - For the fiscal year ending December 31, 2022, the hotel and restaurant business generated total revenue of approximately HKD 99.3 million, a decrease of about HKD 5.2 million compared to HKD 104.5 million in 2021, resulting in a net loss of approximately HKD 35.6 million after accounting for depreciation of about HKD 58.1 million[34]. - The company reported a net profit of HKD 88,799,000 for the fiscal year ending December 31, 2022, compared to HKD 420,646,000 in the previous year, reflecting a decline of about 79%[67]. - Basic earnings per share dropped to HKD 0.23 in 2022 from HKD 1.13 in 2021, indicating a significant decrease in profitability[67]. - The total revenue for the year ended December 31, 2022, was HKD 715,240,000, a decrease from HKD 736,791,000 in 2021, representing a decline of approximately 2.1%[77]. - The net profit for the year was HKD 88,799,000, down from HKD 420,646,000 in 2021, reflecting a decrease of approximately 78.9%[81]. - Other comprehensive income for the year was HKD (390,374,000), a significant decline from HKD 731,819,000 in the previous year[81]. - The company's total assets as of December 31, 2022, were HKD 12,659,989,000, down from HKD 13,234,411,000 in 2021, representing a decrease of approximately 4.3%[83]. - The company's total liabilities decreased to HKD 1,647,749,000 from HKD 1,727,946,000 in the previous year, a reduction of about 4.6%[83]. - The company's equity attributable to shareholders was HKD 12,599,373,000, down from HKD 13,146,704,000 in 2021, indicating a decrease of approximately 4.2%[83]. Investment Activities - The group has acquired four warehouses in Japan and two office buildings in Australia, maintaining stable rental income with occupancy rates between 94% and 100%[18]. - The group acquired a 50% stake in a real estate investment trust in April 2022, investing in two prime office buildings in Sydney, indirectly holding a 12.5% interest in the properties[37]. - A logistics center in Hokkaido was purchased in August 2022 without additional capital injection, featuring a total rental area of 210,280 square feet and an occupancy rate close to 100%[38]. - The company acquired all issued shares of Choengmon Real Estate Company Limited in Thailand, investing in hotel properties on Koh Samui[64]. Operational Efficiency - The management will continue to focus on existing businesses, improving operational efficiency and asset value to enhance overall financial performance while cautiously seeking other investment opportunities[20]. - The group’s profit before tax was HKD 188,005,000, reflecting the operational efficiency and cost management strategies implemented during the year[114]. - The operating expenses for the year were HKD (258,094,000), compared to HKD (579,645,000) in the previous year, indicating a significant reduction in costs[77]. Market Conditions - The hotel segment in Thailand recorded total revenue of approximately HKD 47.2 million with an operating gross profit of approximately HKD 10.1 million, and management expects the tourism sector in Thailand, including Koh Samui, to recover rapidly in 2023[36]. - The management expresses confidence in the gradual recovery of local consumption and overall business activities in Hong Kong following the removal of quarantine restrictions and government support measures[39]. - The economic hotel revenue decreased from approximately HKD 9,100,000 in 2021 to about HKD 6,400,000 in 2022, attributed to the slowdown of the Chinese economy[54]. Tax and Compliance - The company recognizes that the implementation of a dual-tier profits tax system does not significantly impact the consolidated financial statements, with Hong Kong's profits tax calculated at 16.5%[48]. - The group’s tax expenses included HKD 9,165,000 for Hong Kong profits tax and HKD 28,246,000 for China corporate income tax, totaling HKD 37,411,000[167]. - The company adhered to the corporate governance code, with some exceptions noted in the report[65]. Dividend and Shareholder Returns - The group declared a final dividend of HKD 0.20 per share, totaling approximately HKD 75,717,000, which is lower than the HKD 106,003,000 declared in the previous year[171]. - The basic earnings per share for the year were HKD 0.20, down from HKD 0.28 in the previous year, indicating a decrease of approximately 29%[171][169]. - The group declared a final dividend of HKD 0.28 per share for the year, compared to HKD 0.25 per share in the previous year[194].

Financial Performance - For the six months ended June 30, 2022, the total revenue was HK$376,776,000, a decrease of 3.0% from HK$389,816,000 in the same period of 2021[5] - The net profit for the period was HK$119,339,000, down 49.8% from HK$237,341,000 in the previous year[6] - Basic earnings per share decreased to HK$0.32, down from HK$0.61, reflecting a decline of 47.7%[5] - The total comprehensive income for the period was a loss of HK$137,623,000, compared to a gain of HK$457,827,000 in the same period last year[6] - The company's profit for the six months ended June 30, 2022, was HKD 119,497,000, a decrease from HKD 232,673,000 for the same period in 2021, representing a decline of approximately 48.7%[38] - The total comprehensive income for the period was HKD 27,395,000, significantly lower than HKD 138,617,000 in the previous year[33] Revenue Breakdown - Rental income increased to HK$156,949,000, up 5.0% from HK$149,023,000 year-on-year[5] - Revenue from hotel operations increased significantly to HKD 80,804,000, up 74.7% from HKD 46,205,000 in the previous year[18] - The company reported a decrease in sales from the retail segment to HKD 42,580,000, down 62.5% from HKD 113,460,000 in the previous year[18] - Revenue from property management was HKD 12,523,000, showcasing the company's diversified income streams[20] - The revenue from trade and manufacturing was HKD 44,088,000, contributing to the overall financial performance[20] Expenses and Costs - Administrative and operating expenses rose to HK$131,700,000, an increase of 15.7% from HK$113,844,000[5] - Total operating expenses for the period were HKD 260,175,000, highlighting the company's cost management efforts[26] - The company incurred employee costs of HKD 71,613,000 for the current period, up from HKD 67,920,000 in the previous year, reflecting an increase of approximately 3.5%[37] - Depreciation of property, plant, and equipment increased to HKD 50,660,000 from HKD 35,774,000, indicating a rise of approximately 41.6%[37] Assets and Liabilities - Non-current assets as of June 30, 2022, totaled HKD 12,318,376, an increase from HKD 12,201,944 as of December 31, 2021, representing a growth of approximately 0.96%[7] - Current assets amounted to HKD 3,816,848 as of June 30, 2022, down from HKD 3,981,928 as of December 31, 2021, indicating a decrease of about 4.15%[7] - Current liabilities increased to HKD 1,456,439 as of June 30, 2022, compared to HKD 1,221,515 as of December 31, 2021, reflecting an increase of approximately 19.25%[7] - The net current assets decreased to HKD 2,360,409 as of June 30, 2022, from HKD 2,760,413 as of December 31, 2021, a decline of about 14.48%[7] - Total non-current liabilities were HKD 1,688,000 as of June 30, 2022, slightly down from HKD 1,727,946 as of December 31, 2021, showing a decrease of approximately 2.30%[8] Dividends and Shareholder Information - The company declared an interim cash dividend of HK$0.18 per share, payable on September 19, 2022[4] - Major shareholder Liao Group Limited holds 132,326,710 shares, representing 34.95% of the issued share capital[88] - Major shareholder Aibo Group Limited owns 77,834,290 shares, accounting for 20.56% of the issued share capital[88] - The interim dividend declared for the current period is HKD 0.18 per share, consistent with the previous year's interim dividend[39] Investment and Financing Activities - The company reported a significant loss in fair value of financial instruments amounting to HK$16,355,000, compared to a gain of HK$190,369,000 in the previous year[6] - The company obtained bank loans of approximately HKD 376,000,000 during the period, compared to HKD 160,000,000 as of June 30, 2021[12] - The company has committed to provide loans to joint ventures amounting to HKD 279,131,000 during the period[49] Market and Operational Insights - The company is focusing on expanding its hotel operations, particularly in Thailand, as part of its growth strategy[24] - The overall occupancy rate of the group's main investment properties was maintained at 85.2% as of June 30, 2022[65] - The hotel project in Thailand recorded total revenue of HKD 16.9 million for the period ending June 30, 2022, with measures in place to improve occupancy rates and dining business[81] Compliance and Governance - The board of directors confirmed compliance with the corporate governance code during the review period[91] - The company’s interim financial report for the six months ending June 30, 2022, was reviewed by Deloitte, confirming adherence to accounting standards[96]

Financial Performance - Total assets increased from HK$14.53 billion in 2017 to HK$16.18 billion in 2021, representing an increase of approximately 11.3%[6] - Profit for the year attributable to owners of the Company decreased from HK$744.89 million in 2017 to HK$427.30 million in 2021, a decline of about 42.6%[6] - Basic earnings per share fell from HK$1.97 in 2017 to HK$1.13 in 2021, a decrease of approximately 42.5%[6] - Total liabilities rose from HK$2.70 billion in 2017 to HK$2.95 billion in 2021, an increase of about 9.4%[6] - Dividend per share decreased from HK$0.60 in 2017 to HK$0.28 in 2021, a reduction of approximately 53.3%[6] - The dividend payout ratio was 30% in 2017 and dropped to 25% in 2021, indicating a more conservative approach to dividend distribution[6] - Total net assets increased from HK$11.84 billion in 2017 to HK$13.23 billion in 2021, reflecting a growth of approximately 11.7%[6] - For the year ended December 31, 2021, the consolidated profits of the Company amounted to approximately HK$420.6 million, representing an increase of 142% compared to HK$173.5 million in 2020[78] - Revenue for 2021 was HK$835,165,000, an 8% increase from HK$771,622,000 in 2020[76] - Profit attributable to owners of the Company for 2021 was HK$427,302,000, a significant increase of 163% from HK$162,560,000 in 2020[76] - Basic earnings per share for 2021 rose to HK$1.13, up 163% from HK$0.43 in 2020[76] - The dividend payout ratio for 2021 was 41%, a decrease of 52% from 93% in 2020[76] Market and Economic Overview - In 2021, the global economy grew by 5.5%, with the strongest growth seen in developed countries due to vaccine availability and policy support[16] - The US economy advanced by 5.7% in 2021, supported by approximately $6 trillion in government stimulus and loose monetary policy[19] - China led significant economies with a GDP growth of 8.1% in 2021, driven by strong exports which grew by 30%[20] - The Euro Zone and the UK reported GDP growth of 5% and 7% respectively, bolstered by improvements in the labor market and private consumption[19] - The MSCI Emerging Market Index dropped by approximately 5% in 2021, contrasting with gains in developed markets[16] - The Stoxx Europe 600 index gained 22%, while the Topix index rose by 10% in 2021[16] - The US dollar had its best year since 2015, except against the Renminbi, amidst rising inflation and monetary tightening prospects[16] - The unemployment rate in Australia ended the year at 4.2%, with an annual GDP growth of 5% despite a contraction due to the Delta variant outbreak[19] - The emergence of the Omicron variant in Q4 2021 dampened economic growth in both the Euro Zone and the UK[19] Property Market Insights - The residential floor area sold in 50 key cities in China saw a 40% increase in the first half of 2021, followed by a 20% decrease in the second half, marking the smallest transaction volume since 2015[20] - The Hong Kong residential market saw a 4.4% increase in mass residential property values and a 7.2% increase in luxury property values by the end of 2021[22] - The Grand Riviera project in Foshan achieved sales of 99%, 100%, 100%, and 94% for phases 1, 2, 3, and 4 respectively, with total sale proceeds reaching approximately HK$6 billion by the end of 2021[22] - The residential project "Elegance Garden" in Foshan has a total buildable area of 142,908.8 sq.m. and is scheduled for completion in October 2022[23] - The Group recorded sales revenue of approximately HK$239 million, selling 63 residential units and 363 carpark spaces[91] - As of December 31, 2021, a total of 5,211 residential units (99% of total 5,264 units) and 2,045 carpark units (44% of total 4,670 units) were sold, generating accumulated sales proceeds of approximately HK$6 billion[91] Investment and Strategic Initiatives - The company aims to enhance its market position by promoting high-quality projects and leveraging its central location in Hong Kong[3] - The company is focused on expanding its market presence and exploring new strategic initiatives to enhance shareholder value[1] - The Group completed the investment in Kimpton Kitalay Samui, a five-star hotel in Thailand, with a total buildable area over 22,098 sq.m.[23] - The Group has a healthy cash flow and a strong balance sheet with a net cash position, allowing it to time the sales of residential units to maximize profit[26] - The Group is committed to seeking local and overseas investments that meet high prudential requirements while ensuring worthwhile returns[26] - The Group's financial strength allows it to continue pursuing strategic projects despite economic uncertainties[26] Corporate Governance and Compliance - The company intends to comply with the Corporate Governance Code, ensuring directors are subject to retirement at least once every three years[32] - All directors confirmed compliance with the Model Code for Securities Transactions throughout the review period[35] - The company has substantially complied with the Corporate Governance Code as set out in Appendix 14 of Listing Rules for the financial year ended 31 December 2021[116] - The Board comprises three Executive Directors, one Non-executive Director, and five Independent Non-executive Directors, meeting the requirement that at least one-third of the Board should be Independent Non-executive Directors[118] - The Independent Non-executive Directors are involved in the Audit Committee, Remuneration Committee, and Nomination Committee, ensuring effective and independent Board operations[120] - The Company Secretary is responsible for taking minutes of Board meetings, which are circulated for comments and finalized for records[128] Environmental, Social, and Governance (ESG) Initiatives - Key material ESG issues identified include waste management, health and safety, use of resources, emissions, development and training, and supply chain management[177] - The Group is committed to integrating effective environmental, social, and governance initiatives into its daily operations[176] - The Group signed the Energy-Saving Charter 2021, aiming to maintain an average indoor temperature between 24 and 26°C during summer and encouraging energy-saving practices among staff and tenants[181] - The Group's Chong Hing Finance Center in Shanghai has been awarded LEED gold certification, demonstrating its commitment to environmental sustainability[181] - The Group aims to minimize pollution and waste in daily operations while aligning with best practices for sustainable buildings[178] - The Group emphasizes the "Reduce, Reuse, Recycle" principle as a core concept in its environmental protection efforts[178] Shareholder Engagement - The Company is committed to maintaining a policy of open and timely disclosure of relevant information to shareholders, subject to applicable legal requirements[158] - Communication with shareholders is conducted through annual and interim reports, press releases, and disclosures to the Stock Exchange[158] - The Board encourages shareholder participation in general meetings and supports the appointment of proxies for those unable to attend[160] - The Company arranges for the annual report and financial statements to be posted to shareholders at least 21 days prior to the annual general meeting[159] - Shareholders holding at least 5% of total voting rights can request to convene a general meeting[167]

Financial Performance - For the six months ended June 30, 2021, the company reported a profit of HKD 237,341,000, a significant increase from HKD 21,231,000 in the same period of 2020, representing a growth of approximately 1,020%[44] - The company achieved a basic earnings per share of HKD 0.61, compared to HKD 0.05 in the previous year, marking a substantial increase[44] - Other comprehensive income for the period was HKD 220,486,000, a turnaround from a loss of HKD 163,866,000 in the prior year[45] - The total comprehensive income for the period amounted to HKD 457,827,000, compared to a loss of HKD 142,635,000 in the same period last year[45] - The company reported a net profit before tax of HKD 260,219,000, reflecting strong operational performance[73] - The company's profit for the six months ended June 30, 2021, was HKD 232,673,000, compared to HKD 17,375,000 for the same period in 2020[87] Revenue and Income Sources - Revenue from customer contracts was HKD 214,709,000, up from HKD 197,370,000 in 2020, indicating an increase of about 8%[44] - Total revenue for the six months ended June 30, 2021, was HKD 389,816,000, slightly up from HKD 389,148,000 in the same period of 2020, indicating a marginal increase of 0.17%[60] - Revenue from property sales was HKD 113,460,000, down from HKD 141,769,000 in the previous year, reflecting a decrease of approximately 20%[60] - The company’s hotel operations revenue increased to HKD 46,205,000 from HKD 13,509,000, marking a growth of approximately 242%[60] - Customer revenue amounted to HKD 149,023,000, with inter-group transactions contributing HKD 3,338,000[72] - Total revenue for the company reached HKD 389,816,000, with a significant contribution from property investment at HKD 206,490,000[71] Expenses and Costs - Direct costs decreased to HKD 154,343,000 from HKD 163,858,000, showing a reduction of approximately 5.5%[44] - Administrative and operating expenses increased slightly to HKD 113,844,000 from HKD 109,020,000, reflecting a rise of about 4.5%[44] - Financial costs significantly decreased to HKD 11,695,000 from HKD 26,359,000, indicating a reduction of approximately 55.6%[44] - Operating expenses totaled HKD 262,920,000, with a notable portion attributed to property management and development[73] Assets and Liabilities - Non-current assets increased to HKD 11,816,178 thousand as of June 30, 2021, compared to HKD 11,274,672 thousand as of December 31, 2020, reflecting a growth of 4.8%[46] - Current assets rose to HKD 3,694,253 thousand, up from HKD 3,664,878 thousand, indicating a slight increase of 0.8%[46] - Total liabilities increased to HKD 13,028,565 thousand as of June 30, 2021, compared to HKD 12,665,383 thousand as of December 31, 2020, representing a growth of 2.9%[47] - The company's equity attributable to shareholders increased to HKD 12,933,632 thousand from HKD 12,577,667 thousand, showing a growth of 2.8%[47] - The company's borrowings due within one year rose to HKD 606,632 thousand from HKD 480,469 thousand, an increase of 26.4%[46] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 118,363,000, a significant increase from HKD 25,499,000 in the same period of 2020, representing a growth of approximately 364%[53] - The company reported a net cash outflow from investing activities of HKD 220,781,000 for the six months ended June 30, 2021, compared to HKD 67,095,000 in the same period of 2020, indicating a significant increase in investment expenditures[53] - New borrowings amounted to HKD 160,000,000, while repayments of borrowings were HKD 34,244,000, resulting in a net cash inflow from financing activities of HKD 18,321,000[53] Dividends and Shareholder Information - The company plans to pay an interim cash dividend of HKD 0.18 per share on September 10, 2021[43] - The total dividend declared for the current period was HKD 94,645,000, with a dividend of HKD 0.25 per share for the year-end 2020, down from HKD 0.38 per share in 2019[89] - Major shareholders include 廖氏集團有限公司 with 132,326,710 shares (34.95%) and 婴贸集團有限公司 with 73,920,290 shares (19.52%) as of June 30, 2021[137] Future Outlook and Strategic Plans - The company plans to continue expanding its investment activities, particularly in property development and management sectors, to enhance revenue streams[60] - The company plans to expand its market presence, focusing on property management and financial investments[69] - Future outlook includes continued investment in new technologies and market expansion strategies to enhance competitive advantage[68] Compliance and Governance - The company has maintained compliance with the corporate governance code, except for the dual role of the Chairman and CEO, which the board believes is in the best interest of the company[141] - The audit committee reviewed the accounting policies and discussed audit, internal controls, and financial reporting, including the unaudited interim financial report[145] - The unaudited interim financial statements for the six months ending June 30, 2021, were reviewed by the company's auditor, Deloitte, and an unmodified review report was issued[145]

Financial Performance - Profit for the year attributable to owners of the Company decreased significantly from HK$1.01 billion in 2018 to HK$162.56 million in 2020, a decline of 84%[5] - Basic earnings per share dropped from HK$2.68 in 2018 to HK$0.43 in 2020, a decrease of 84%[5] - For the year ended December 31, 2020, the Group recorded a profit of HK$173.5 million, representing a decrease of 61% compared to 2019[22] - Revenue for 2020 was HK$771,622,000, down 40% from HK$1,276,508,000 in 2019[85] - Profit for the year attributable to owners of the Company was HK$162,560,000, down 62% from HK$429,984,000 in 2019[85] Dividend and Payout - Dividend per share was reduced from HK$0.70 in 2018 to HK$0.25 in 2020, a decrease of 64.3%[5] - The total dividend per share decreased by 33% to HK$0.40 from HK$0.60 in 2019[85] - The dividend payout ratio increased to 93% from 53% in the previous year[85] - The Group proposed a final cash dividend of HK$0.25 per share, totaling HK$0.40 per share for the year 2020[22] Assets and Liabilities - Total assets increased from HK$13.72 billion in 2016 to HK$14.94 billion in 2020, representing a growth of 8.9%[5] - Total liabilities decreased from HK$2.80 billion in 2016 to HK$2.27 billion in 2020, a reduction of 18.5%[5] - Total net assets rose from HK$10.92 billion in 2016 to HK$12.67 billion in 2020, an increase of 15.9%[5] Market and Economic Conditions - In 2020, the US economy contracted by 3.5% and employment levels decreased by 3% compared to 2019[1] - The EU and UK economies contracted by approximately 7% and 9% respectively, with a severe recession in Q2 followed by a rebound in Q3[1] - The Hong Kong economy contracted by more than 6% in 2020, with an unemployment rate of 6.6% in Q4, the worst in 16 years[18] - Mainland China was the only major economy to achieve positive growth of 2.3% in 2020, with quarterly growth rates of 3.2%, 4.9%, and 6.5% in Q2, Q3, and Q4 respectively[14] Property Development and Sales - The Group's property development project in Foshan, The Grand Riviera, achieved sales of 99%, 100%, and 100% for residential units of Phase 1, 2, and 3 respectively, with total sale proceeds of HK$5.9 billion by the end of 2020[24] - For the year ended December 31, 2020, the Group recorded sales revenue of approximately HK$226.0 million, with 72 residential units and 328 carpark units sold[101] - As of December 31, 2020, a total of 5,171 residential units out of 5,264 units (representing 98%) and 1,651 carpark units out of 4,670 units (representing 35%) were successfully sold, fetching accumulated sale proceeds of approximately HK$5.9 billion[101] Corporate Governance - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors throughout the review period[46] - All directors have confirmed their independence as per the Listing Rules[46] - The company intends to comply with the Corporate Governance Code regarding director re-election[46] - The Audit Committee is satisfied with the company's internal control procedures and financial reporting disclosures[76] Environmental Sustainability - The Group signed the "Energy Saving Charter 2020," promoting energy efficiency and aiming to reduce carbon emissions in Hong Kong[192] - The Chong Hing Finance Centre in Shanghai received LEED gold certification in June 2020, demonstrating the Group's commitment to sustainable building practices[192] - The Group's operations at Chong Hing Bank Centre, Chong Hing Square, and Fairview Court adhered to ISO 14001:2015 standards for environmental management[194] - The Group focused on integrating environmental considerations into business operations, including minimizing pollution and reducing waste[192] Employment and Staff Costs - The Group employed 472 staff as of December 31, 2020, with total employee costs of approximately HK$133.2 million, down from HK$144.0 million in the previous year[126] - The Group's remuneration policy links total rewards, including basic salary and bonuses, to employee performance, ensuring competitive pay levels in the market[126] Risk Management - The Group is committed to implementing effective risk management policies and internal control procedures to identify and manage potential risks[159] - The Audit Committee monitored the external auditors' independence and reviewed the internal control system of the Company[79] - The Group utilizes derivative instruments for hedging purposes to manage interest rate and foreign exchange exposures[119] Shareholder Communication - The Company emphasizes the importance of regular communication with shareholders to ensure informed assessments of its strategy, operations, and financial performance[174] - The Company maintains a website to promote effective communication, where announcements, financial information, and corporate governance practices are posted[181] - The Company encourages shareholders to participate in the annual general meeting and allows for proxy voting[180]