[Company Overview and Financial Summary](index=1&type=section&id=Company%20Overview%20and%20Financial%20Summary) This section provides an overview of Nanyang Holdings Limited's financial performance, highlighting key profit and revenue figures for the period [Performance Summary](index=2&type=section&id=Performance%20Summary) Nanyang Holdings Limited recorded a profit attributable to equity holders of HKD 125.8 million for the six months ended June 30, 2023, a significant turnaround from a loss of HKD 10.3 million in the prior year, primarily due to dividend income, investment gains, and fair value gains on investment properties - The Group recorded a profit attributable to equity holders of **HKD 125.8 million** (2022: loss of HKD 10.3 million)[2](index=2&type=chunk) - Profit for the period primarily included dividend income of approximately **HKD 67.2 million** from Shanghai Commercial Savings Bank Co., Ltd. for its 2022 earnings (after 21% withholding tax)[2](index=2&type=chunk) - Net fair value gain on investment properties (including those owned by a joint venture) was **HKD 28.7 million** (2022: loss of HKD 21.8 million)[2](index=2&type=chunk) Earnings/(Loss) Per Share | Indicator | 2023 (HKD) | 2022 (HKD) | | :--- | :--- | | Earnings/(Loss) per share | 3.70 | (0.30) | | Earnings per share (excluding net impact from fair value revaluation of investment properties) | 2.86 | 0.34 | [Group Financial Summary](index=1&type=section&id=Group%20Financial%20Summary) The Group Financial Summary for the six months ended June 30, 2023, shows a **157% increase** in revenue and other income/(loss), a **1,320% growth** in profit attributable to equity holders, and a significant rise in earnings per share Group Financial Highlights | Indicator | 2023 (HKD thousand) | 2022 (HKD thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue and other income/(loss) | 142,565 | 55,552 | 157% | | Profit/(Loss) attributable to equity holders of the Company | 125,809 | (10,314) | 1,320% | | Profit attributable to equity holders of the Company (after deducting changes in fair value of investment properties and related tax impact) | 97,106 | 11,505 | 744% | | Earnings/(Loss) per share | HKD 3.70 | HKD (0.30) | 1,333% | | Earnings per share (after deducting changes in fair value of investment properties and related tax impact) | HKD 2.86 | HKD 0.34 | 741% | [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Unaudited Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2023, the Group's operating profit significantly increased to HKD 144,320 thousand from HKD 11,575 thousand in the prior year, driven by substantial growth in revenue and other income/(loss) and positive fair value changes in investment properties Consolidated Statement of Profit or Loss Highlights | Indicator | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Revenue | 122,062 | 125,023 | | Other income/(loss) | 20,503 | (69,471) | | Revenue and other income/(loss) | 142,565 | 55,552 | | Gross profit | 132,415 | 46,902 | | Changes in fair value of investment properties | 31,000 | (16,159) | | Operating profit | 144,320 | 11,575 | | Profit before income tax | 145,247 | 9,652 | | Profit/(Loss) attributable to equity holders of the Company | 125,809 | (10,314) | [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2023, total comprehensive income attributable to equity holders increased to HKD 165,780 thousand, up from HKD 106,695 thousand in 2022, primarily due to the turnaround in profit for the period and fair value gains on financial assets Consolidated Statement of Comprehensive Income Highlights | Indicator | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 125,809 | (10,314) | | Exchange differences on translation of foreign operations | 5,352 | 13,409 | | Fair value gains on financial assets | 34,619 | 103,600 | | Other comprehensive income for the period, net of tax | 39,971 | 117,009 | | Total comprehensive income for the period attributable to equity holders of the Company | 165,780 | 106,695 | [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets increased to HKD 5,307,185 thousand from HKD 5,158,336 thousand on December 31, 2022, driven by increases in investment properties, financial assets at fair value through other comprehensive income, and trade and other receivables Consolidated Statement of Financial Position Highlights | Indicator | June 30, 2023 (HKD thousand) | December 31, 2022 (HKD thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 4,773,371 | 4,705,113 | | Current assets | 533,814 | 453,223 | | **Total assets** | **5,307,185** | **5,158,336** | | **Equity** | | | | Capital and reserves attributable to equity holders of the Company | 5,197,070 | 5,065,258 | | **Liabilities** | | | | Non-current liabilities | 31,895 | 33,368 | | Current liabilities | 78,220 | 59,710 | | **Total liabilities** | **110,115** | **93,078** | | **Total equity and liabilities** | **5,307,185** | **5,158,336** | [Notes to the Condensed Consolidated Interim Financial Information](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section details the basis of preparation, accounting policies, and specific notes to the condensed consolidated interim financial information [Basis of Preparation and Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA, consistent with the accounting policies and methods used in the 2022 annual financial statements, except for the adoption of new and amended standards effective for the financial year ending December 31, 2023 [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and should be read in conjunction with the 2022 annual financial statements - This interim financial information should be read in conjunction with the 2022 annual financial statements, which were prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs")[7](index=7&type=chunk) - The interim financial information for the six months ended June 30, 2023, has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA")[24](index=24&type=chunk) [Accounting Policies](index=5&type=section&id=Accounting%20Policies) The accounting policies and methods of computation used in preparing the interim financial information are consistent with those applied in the 2022 annual financial statements, and the adoption of new and amended standards has not caused any significant changes or impacts on the Group's performance and financial position - The accounting policies and methods of computation used in preparing the interim financial information are consistent with those applied in the 2022 annual financial statements[8](index=8&type=chunk) - The adoption of new and amended standards has not caused any significant changes to the accounting policies or any significant impact on the Group's performance and financial position[25](index=25&type=chunk) [New and Amended Standards](index=5&type=section&id=New%20and%20Amended%20Standards) The Group has adopted several new and amended standards effective January 1, 2023, including amendments to HKFRS 17, HKAS 1, 8, and 12, while other amendments effective January 1, 2024, or later have not been early adopted and are not expected to have a significant impact on the Group's operating results and financial position - For the period ended June 30, 2023, the Group has adopted the following new and amended standards, which are mandatory for the accounting period beginning January 1, 2023: Amendments to HKFRS 17, Amendments to HKAS 1 and HKFRS Practice Statement 2, Amendments to HKAS 8, and Amendments to HKAS 12[9](index=9&type=chunk) - The following issued amendments to standards and interpretations are mandatory for the Group's accounting periods beginning on or after January 1, 2024, and have not been early adopted by the Group: Amendments to HKFRS 16, Amendments to HKAS 1, Amendments to HKAS 7 and HKFRS 7, HK(IFRIC)-Int 5 (2020), and Amendments to HKFRS 10 and HKAS 28[26](index=26&type=chunk) - The Group has commenced an assessment of the impact of the above amendments to standards and interpretations and does not expect them to have any significant impact on the Group's operating results and financial position[44](index=44&type=chunk) [Revenue and Other Income/(Loss) and Segment Information](index=7&type=section&id=Revenue%20and%20Other%20Income%2F%28Loss%29%20and%20Segment%20Information) The Group's revenue primarily consists of rental income, financial investment income, and dividend income, with two main business segments: property and financial investment, where the financial investment segment contributed significantly to segment results in the first half of 2023, and revenue and non-current assets are mainly concentrated in Taiwan, Hong Kong, and Mainland China [Details of Revenue and Other Income/(Loss)](index=7&type=section&id=Details%20of%20Revenue%20and%20Other%20Income%2F%28Loss%29) The Group's revenue primarily includes rental income from investment properties, investment income from financial assets at fair value through profit or loss, dividend income from financial assets at fair value through other comprehensive income, and investment property management fee income, while other income/(loss) mainly represents net realized and unrealized gains/(losses) from financial assets at fair value through profit or loss - Revenue primarily includes rental income, investment income from financial assets at fair value through profit or loss, and dividend income from financial assets at fair value through other comprehensive income[14](index=14&type=chunk) - Other income/(loss) represents net realized and unrealized gains/(losses) from financial assets at fair value through profit or loss[14](index=14&type=chunk) Revenue and Other Income/(Loss) Breakdown | Revenue Item | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Gross rental income from investment properties | 29,300 | 34,660 | | Investment income from financial assets at fair value through profit or loss | 2,293 | 1,133 | | Dividend income from financial assets at fair value through other comprehensive income | 85,319 | 83,198 | | Management fee income from investment properties | 4,978 | 5,624 | | Other income | 172 | 408 | | **Total Revenue** | **122,062** | **125,023** | | Other income/(loss) (net realized and unrealized gains/(losses) from FVTPL financial assets) | 20,503 | (69,471) | | **Total Revenue and Other Income/(Loss)** | **142,565** | **55,552** | [Segment Results](index=7&type=section&id=Segment%20Results) The Group operates two main business segments: property and financial investment, with the financial investment segment contributing significantly more to segment results than the property segment for the six months ended June 30, 2023 - The Group operates two main business segments globally: property (investment and leasing of industrial and commercial buildings) and financial investment (holding and trading of investment securities)[27](index=27&type=chunk)[45](index=45&type=chunk) Segment Performance | Segment | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Property segment results | 40,073 | 34 | | Financial investment segment results | 104,247 | 11,541 | | **Total Segment Results** | **144,320** | **11,575** | [Segment Assets and Liabilities](index=8&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2023, the financial investment segment held higher segment assets, while the property segment had higher segment liabilities, with certain assets and liabilities, such as investments in joint ventures, right-of-use assets, deferred income tax liabilities, and lease liabilities, being centrally managed and excluded from segment reporting - Segment assets exclude investments in a joint venture and right-of-use assets, while segment liabilities exclude deferred income tax liabilities, lease liabilities, and other non-current liabilities, all of which are centrally managed[48](index=48&type=chunk) Segment Assets and Liabilities (June 30, 2023) | Segment | Segment Assets (HKD thousand) as of June 30, 2023 | Segment Liabilities (HKD thousand) as of June 30, 2023 | | :--- | :--- | :--- | | Property | 2,533,262 | 50,448 | | Financial Investment | 2,684,194 | 24,285 | | **Total** | **5,217,456** | **74,733** | Segment Assets and Liabilities (December 31, 2022) | Segment | Segment Assets (HKD thousand) as of December 31, 2022 | Segment Liabilities (HKD thousand) as of December 31, 2022 | | :--- | :--- | :--- | | Property | 2,502,356 | 51,026 | | Financial Investment | 2,561,380 | 5,243 | | **Total** | **5,063,736** | **56,269** | [Geographical Information](index=9&type=section&id=Geographical%20Information) For the six months ended June 30, 2023, the Group's revenue and other income/(loss) primarily originated from Taiwan and Hong Kong, while the total non-current assets were mainly located in Hong Kong and Mainland China Revenue and Other Income/(Loss) by Region | Region | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Hong Kong | 33,401 | 32,502 | | United States | 12,182 | (23,975) | | Europe | 10,944 | (28,793) | | Taiwan | 85,078 | 83,198 | | Other countries | 960 | (7,380) | | **Total** | **142,565** | **55,552** | Non-Current Assets by Region | Region | June 30, 2023 (HKD thousand) | December 31, 2022 (HKD thousand) | | :--- | :--- | :--- | | Hong Kong | 2,530,750 | 2,501,510 | | Mainland China | 84,117 | 87,251 | | **Total** | **2,614,867** | **2,588,761** | [Operating Profit](index=10&type=section&id=Operating%20Profit) For the six months ended June 30, 2023, operating profit was HKD 144,320 thousand, with key deductions including employee benefit expenses of HKD 13,003 thousand and investment property management fee expenses of HKD 6,508 thousand Operating Profit Components | Item | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 23 | 22 | | Depreciation of right-of-use assets | 1,748 | 1,930 | | Employee benefit expenses (including directors' emoluments) | 13,003 | 11,873 | | Management fee expenses for investment properties | 6,508 | 5,934 | [Finance Income/(Expenses)](index=10&type=section&id=Finance%20Income%2F%28Expenses%29) For the six months ended June 30, 2023, finance income primarily from bank interest income increased to HKD 338 thousand from HKD 164 thousand in the prior year, while finance expenses slightly decreased Finance Income/(Expenses) Breakdown | Item | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Bank interest income | 338 | 164 | | Interest expense on lease liabilities and other non-current liabilities | (89) | (101) | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2023, total income tax expense was HKD 19,438 thousand, slightly lower than HKD 19,966 thousand in the prior year, primarily comprising Hong Kong profits tax, withholding tax, and deferred income tax Income Tax Expense Breakdown | Item | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 1,294 | 1,815 | | Withholding tax | 17,866 | 17,472 | | Deferred income tax | 278 | 679 | | **Total Income Tax Expense** | **19,438** | **19,966** | - Hong Kong profits tax is provided at a rate of **16.5%** (2022: 16.5%) on the estimated assessable profit for the period[32](index=32&type=chunk) - Withholding tax is calculated based on the prevailing tax rates in the countries where the investment companies are located for dividends receivable from overseas investments (including a joint venture)[32](index=32&type=chunk) [Earnings/(Loss) Per Share](index=11&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) For the six months ended June 30, 2023, basic and diluted earnings per share significantly improved to **HKD 3.70**, compared to a loss of HKD 0.30 per share in the prior year, calculated based on profit attributable to equity holders and the weighted average number of ordinary shares outstanding Earnings/(Loss) Per Share Calculation | Indicator | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Profit/(Loss) attributable to equity holders of the Company | 125,809 | (10,314) | | Weighted average number of ordinary shares outstanding (thousand shares) | 33,968 | 33,968 | | Earnings/(Loss) per share (basic and diluted) | HKD 3.70 | HKD (0.30) | - The Company has no dilutive potential ordinary shares, and diluted earnings/(loss) per share is equal to basic earnings/(loss) per share[35](index=35&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Board of Directors decided not to declare an interim dividend for the six months ended June 30, 2023, while the Group paid a total of **HKD 33,968 thousand** in final and special dividends for 2022 in 2023 - The Directors have decided not to declare an interim dividend for the six months ended June 30, 2023 (2022: nil)[40](index=40&type=chunk)[55](index=55&type=chunk) Dividends Paid | Item | 2023 (HKD thousand) | 2022 (HKD thousand) | | :--- | :--- | :--- | | Final dividend for 2022 of HKD 0.70 per share paid | 23,778 | 23,778 (2021 final) | | Special dividend for 2022 of HKD 0.30 per share paid | 10,190 | 23,777 (2021 special) | | **Total** | **33,968** | **47,555** | [Trade and Other Receivables](index=12&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2023, total trade and other receivables significantly increased to **HKD 95,620 thousand**, primarily due to a substantial rise in dividends receivable, and the Group does not offer any credit period to customers Trade and Other Receivables Breakdown | Item | June 30, 2023 (HKD thousand) | December 31, 2022 (HKD thousand) | | :--- | :--- | :--- | | Trade receivables | 7 | 163 | | Other receivables, prepayments and deposits | 9,278 | 8,611 | | Dividends receivable | 85,077 | – | | Amounts due from a joint venture | 1,258 | 1,364 | | **Total** | **95,620** | **10,138** | - The Group does not offer any credit period to customers[57](index=57&type=chunk) [Trade and Other Payables](index=12&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2023, total trade and other payables remained stable at **HKD 54,106 thousand**, compared to HKD 54,049 thousand on December 31, 2022 Trade and Other Payables Breakdown | Item | June 30, 2023 (HKD thousand) | December 31, 2022 (HKD thousand) | | :--- | :--- | :--- | | Trade payables | 2,565 | 2,341 | | Rental and management fee deposits | 19,858 | 19,271 | | Other payables and accrued expenses | 31,683 | 32,437 | | **Total** | **54,106** | **54,049** | [Investment in a Joint Venture](index=13&type=section&id=Investment%20in%20a%20Joint%20Venture) The joint venture period and land use rights for Shanghai Shennan Textile Co., Ltd. expired on May 31, 2022, and the Group is currently negotiating with its Chinese joint venture partner to continue operations at the same location, pending resolution of land issues - The joint venture period and land use rights for Shanghai Shennan Textile Co., Ltd., the Group's joint venture, expired on May 31, 2022[39](index=39&type=chunk) - We are negotiating with our Chinese joint venture partner to continue operating the joint venture at the same location, but the land issue must be resolved first[61](index=61&type=chunk) [Business Review and Outlook](index=13&type=section&id=Business%20Review%20and%20Outlook) This section reviews the Group's property and financial investment businesses, along with its financial position and future outlook [Property Business](index=13&type=section&id=Property%20Business) The Group's property business in Hong Kong faces challenges due to economic weakness and oversupply in the Kwun Tong Nanyang Plaza industrial and commercial leasing market, leading to rent adjustments and intense competition, while Shanghai Southern Textile Co., Ltd. performed satisfactorily despite a slowdown in retail tenant business, and specific details for Shenzhen property business were not provided [Hong Kong Property](index=13&type=section&id=Hong%20Kong%20Property) The local Hong Kong property market faces challenges, with leasing activities for industrial and commercial floors at Kwun Tong Nanyang Plaza affected by economic weakness and a large supply of commercial buildings, leading to intense competition, and the Group has lowered rents and offered favorable terms to retain existing tenants and attract new ones, with an occupancy rate of approximately **80%** - The local property market continues to face challenges, with leasing activities for industrial and commercial floors at our Nanyang Plaza in Kwun Tong affected by economic weakness and a large supply of commercial building floors in the Kwun Tong area, leading to intense competition for the few potential tenants[41](index=41&type=chunk) - To retain existing tenants, we have lowered rents upon renewal and offered favorable leasing terms and reasonable rental levels to attract new tenants[41](index=41&type=chunk) - The Group's 290,000 square feet of industrial and commercial floor area currently has an occupancy rate of approximately **80%**[41](index=41&type=chunk) [Shanghai Property](index=13&type=section&id=Shanghai%20Property) Southern Textile Co., Ltd., in which the Group holds a **45% equity interest**, continues to show satisfactory profitability, with its total floor area of approximately **18,400 square feet** fully leased to third parties, despite a continued slowdown in retail tenant business due to economic weakness following China's reopening - Southern Textile Co., Ltd., in which the Group holds a **45% equity interest**, continues to show satisfactory profitability[66](index=66&type=chunk) - A total floor area of approximately **18,400 square feet** has been fully leased to third parties[66](index=66&type=chunk) - Despite China's reopening in early 2023, the economy remains weak, and the business of retail tenants continues to slow down[66](index=66&type=chunk) [Shenzhen Property](index=13&type=section&id=Shenzhen%20Property) Shenzhen is mentioned in the report, but no specific review or outlook for its property business is provided - Shenzhen is mentioned in the report, but no specific review or outlook for its property business is provided[42](index=42&type=chunk) [Financial Investment Business](index=14&type=section&id=Financial%20Investment%20Business) The Group's financial investment portfolio increased by approximately **5.8%** in the first half of 2023, generating net realized and unrealized gains of **HKD 20.5 million**, with a highly diversified allocation primarily in equities and bonds, and the Group holds approximately **4%** equity in Shanghai Commercial Savings Bank (SCSB), receiving significant dividend income, while SCSB also reported substantial growth in net profit after tax - For the six months ended June 30, 2023, the investment portfolio (including cash held within the portfolio) increased by approximately **5.8%**[43](index=43&type=chunk) - The Group recorded net realized and unrealized gains of **HKD 20.5 million** and investment income of **HKD 2.3 million**[43](index=43&type=chunk) Investment Portfolio Allocation (as of June 30, 2023) | Asset Class | Percentage | | :--- | :--- | | Equities | 71.3% | | - United States | 49.5% | | - Europe | 18.2% | | - Japan | 3.1% | | - Asia Pacific ex-Japan | 15.3% | | - Emerging Markets | 13.9% | | Bonds | 22% | | - United States | 85% | | - Europe | 7.3% | | - Emerging Markets and Others | 7.7% | | Commodity Investments | 3.5% | | Cash | 3.2% | - The Group currently holds 190,585,095 shares in Shanghai Commercial Savings Bank ("SCSB"), representing approximately **4%** of SCSB's total issued share capital, with this investment valued at **HKD 2,145.8 million** classified as financial assets at fair value through other comprehensive income under non-current assets[68](index=68&type=chunk) - The Group received net cash dividends of approximately **HKD 67.2 million** for SCSB's 2022 earnings (2022: net cash dividends of approximately HKD 65.4 million for SCSB's 2021 earnings)[68](index=68&type=chunk) - For the six months ended June 30, 2023, SCSB's audited net profit after tax attributable to its owners was approximately **NTD 9,769.8 million** (2022: net profit attributable to its owners was approximately NTD 7,256.6 million)[80](index=80&type=chunk) [Financial Position](index=15&type=section&id=Financial%20Position) The Group's investment properties valued at **HKD 2,351 million** were pledged for general banking facilities but remained unutilized as of June 30, 2023, with the debt-to-equity ratio decreasing from **0.15%** on December 31, 2022, to **0.11%** on June 30, 2023, and net current assets increasing to **HKD 455.6 million** at period-end - The Group's investment properties valued at **HKD 2,351 million** were pledged as collateral for general banking facilities, which were not utilized as of June 30, 2023, and December 31, 2022[68](index=68&type=chunk) - The debt-to-equity ratio decreased from **0.15%** (December 31, 2022) to **0.11%** (June 30, 2023)[68](index=68&type=chunk) - At the end of the period, the Group's net current assets were **HKD 455.6 million** (December 31, 2022: HKD 393.5 million)[68](index=68&type=chunk) [Outlook](index=14&type=section&id=Outlook) The Group maintains a cautious stance on the economic outlook for the remainder of the year, anticipating a potential end to interest rate cycles in the US and Europe, while economic stimulus measures by Chinese authorities are expected to provide market support, and the investment portfolio has risen by approximately **6.6%** as of August 14, 2023, with the Group closely monitoring new investment opportunities - The economic outlook for the remainder of the year is uncertain, and we are hopeful that the interest rate cycles in the US and Europe may be nearing an end[70](index=70&type=chunk) - Recent measures by Chinese authorities to promote economic growth and stabilize the property market, as well as other industries, are likely to provide market support[70](index=70&type=chunk) - As of August 14, 2023 (the latest practicable date), the investment portfolio has risen by approximately **6.6%** year-to-date, with the value of the investment portfolio (including cash) being approximately **USD 51 million** or **HKD 399.3 million**[70](index=70&type=chunk) - We remain cautious and will closely monitor any new investment opportunities[70](index=70&type=chunk) [Other Information](index=13&type=section&id=Other%20Information) This section covers additional corporate information, including share transactions, employee details, corporate governance, and board composition [Purchase, Sale or Redemption of Shares](index=13&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period[60](index=60&type=chunk) [Employees](index=16&type=section&id=Employees) As of June 30, 2023, the Group employed **13 staff members**, with remuneration determined by qualifications and experience, annual review of salaries and discretionary bonuses, and benefits including medical insurance and provident fund - As of June 30, 2023, the Group employed **13 staff members** (2022: 12 staff members)[82](index=82&type=chunk) - Remuneration is determined with reference to the qualifications and experience of the relevant staff, and salaries and discretionary bonuses are reviewed annually[82](index=82&type=chunk) - The Group also provides other benefits, including medical insurance and a provident fund[82](index=82&type=chunk) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) The Company confirms compliance with the Code Provisions of the Corporate Governance Code in Appendix 14 and the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix 10 of the Listing Rules for the six months ended June 30, 2023, with the Audit Committee having reviewed the Group's accounting principles, internal controls, risk management, and financial reporting matters, including the unaudited condensed consolidated financial statements - The Directors of the Company are not aware of any information that would reasonably indicate that the Company has not complied with the Code Provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules at any time during the six months ended June 30, 2023[83](index=83&type=chunk) - The Directors of the Company have confirmed that for the six months ended June 30, 2023, the Directors have complied with the required standards set out in the Model Code[84](index=84&type=chunk) - The Audit Committee has reviewed with management the accounting principles and practices adopted by the Group and discussed auditing, internal control, risk management, and financial reporting matters, including reviewing with management the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[84](index=84&type=chunk) - The Group's unaudited interim financial statements for the six months ended June 30, 2023, have been reviewed by the Group's external auditor, PricewaterhouseCoopers, in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the HKICPA[84](index=84&type=chunk) [Board Information](index=17&type=section&id=Board%20Information) As of the date of this announcement, the Board of Directors comprises seven directors, including executive directors, independent non-executive directors, and a non-executive director - As of the date of this announcement, the Board of Directors comprises the following seven directors: Executive Directors Rong Zhiquan (Managing Director), Chen Zhenni (Assistant Managing Director and Financial Controller); Independent Non-executive Directors Bi Shaofu (Chairman), Shi Xitao, Huang Zhiguang, Gao Fuhua; Non-executive Director Rong Kangxin[77](index=77&type=chunk)[86](index=86&type=chunk) [Publication of Detailed Results Announcement](index=17&type=section&id=Publication%20of%20Detailed%20Results%20Announcement) The detailed 2023 interim results announcement is available on the website of The Stock Exchange of Hong Kong Limited and the Company's website - Please refer to the detailed 2023 interim results announcement on the website of The Stock Exchange of Hong Kong Limited and the Company's website at http://www.nanyangholdingslimited.com[76](index=76&type=chunk)

Financial Performance - The company reported a net profit attributable to its owners of approximately NT$14,937,900,000 for the year ended December 31, 2022, compared to NT$14,255,600,000 for the same period in 2021, representing an increase of about 4.8%[53]. - Revenue for the year ended December 31, 2022, was HKD 95,070,000, a decrease of 51% compared to HKD 195,501,000 in 2021[126]. - Profit attributable to equity holders for 2022 was HKD 12,268,000, down 94% from HKD 190,717,000 in 2021[126]. - Earnings per share for 2022 was HKD 0.36, a decline of 94% from HKD 5.59 in 2021[126]. - Operating profit for 2022 was HKD 35,081,000, down 82.6% from HKD 201,165,000 in 2021[133]. - Total assets decreased to HKD 5,065,258,000 in 2022 from HKD 5,466,939,000 in 2021, reflecting a reduction of 7.3%[133]. - The company reported a pre-tax profit of HKD 35,141,000 in 2022, down 83.5% from HKD 212,240,000 in 2021[133]. - The net asset value per share decreased by 7% to HKD 149.12 from HKD 160.95 in 2021[126]. Investment Portfolio - As of March 21, 2023, the investment portfolio has increased by approximately 1.9% year-to-date, with a market value of about $47.6 million or HKD 373 million[22]. - The investment portfolio's asset allocation and performance are regularly reviewed to evaluate new investment opportunities[25]. - The company reported a significant change in the fair value of investment properties, with a gain of HKD 12,426,000 in 2022 compared to a loss of HKD 69,297,000 in 2021, representing a 118% improvement[126]. - Investment properties stood at HKD 2,494,000,000 in 2022, slightly down from HKD 2,499,000,000 in 2021[133]. Corporate Governance - The board of directors is responsible for leading and overseeing the company’s affairs to ensure business success[178]. - The company has established effective mechanisms to ensure the independence of its board, which is crucial for good corporate governance[179]. - The board of directors is committed to promoting good corporate governance to protect shareholder interests and enhance group performance[199]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules throughout the year[199]. - The board has adopted an anti-corruption policy to promote a culture of integrity and compliance within the organization[96]. Environmental and Social Responsibility - The board is committed to monitoring risks and opportunities related to climate change and has established environmental goals to reduce carbon emissions[31]. - The company aims to achieve carbon neutrality by 2050 in line with the government's climate action blueprint[31]. - The company has implemented various energy-saving measures, including upgrading to advanced lighting management systems and replacing traditional fluorescent lights with energy-efficient LED lights to reduce greenhouse gas emissions[38]. - Total greenhouse gas emissions decreased from 2,336.62 tons CO2 equivalent in 2021 to 2,173.04 tons CO2 equivalent in 2022, representing a reduction of approximately 7.0%[72]. - Total energy consumption decreased from 3,291,705.41 kWh in 2021 to 3,087,278.49 kWh in 2022, a decline of about 6.2%[72]. - The company is committed to reducing water consumption and has been conducting regular assessments and tests to prevent unnecessary leaks, with a long-term goal of further decreasing water usage[42]. - The group aims to reduce waste in its offices by promoting recycling and responsible office practices, following the "4Rs" principle (Reduce, Reuse, Repair, Recycle)[82]. Employee Welfare and Development - The company has been providing additional allowances and health measures for employees, including masks and hand sanitizers, to ensure their well-being during the pandemic[55]. - The company has implemented a five-day work week to promote work-life balance among employees[76]. - The company has been enhancing its awareness of business ethics among directors and employees through training materials and regular sessions with representatives from the Independent Commission Against Corruption[35]. - The group emphasizes talent development, providing various training courses for management and non-management employees to enhance their skills and knowledge[100]. Shareholder Information - The company plans to distribute a final dividend of HK$0.70 per share and a special dividend of HK$0.30 per share, totaling approximately HK$34,000,000, compared to HK$47,600,000 in the previous year[49]. - The company has adopted a dividend policy allowing for cash or other appropriate means to distribute dividends to shareholders, with the board having discretion over any proposed dividends[168]. - The company confirmed that its public float exceeded 25% as of March 22, 2023, consistent with the previous year[174]. - The company will review its dividend policy based on factors such as shareholder interests and cash dividends received from subsidiaries[191].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 NANYANG HOLDINGS LIMITED （於百慕達註冊成立之有限公司） （股份代號：212） 二 零 二 二 年 度 末 期 業 績 公 佈 集 團 財 務 摘 要 二零二二年 二零二一年 變動 港幣千元 港幣千元 收入與其他（虧損）╱收益 95,070 195,501 (51%) 本公司股權持有人應佔溢利 12,268 190,717 (94%) 本公司股權持有人應佔溢利 經扣除： －投資物業公平值之變動及 相關稅務影響 12,426 (69,297) (118%) 24,694 121,420 (80%) 二零二二年 二零二一年 港元 港元 每股溢利 0.36 5.59 (94%) ...

Financial Performance - The company reported a loss attributable to equity holders of HKD 10,314,000 for the six months ended June 30, 2022, compared to a profit of HKD 152,140,000 in the same period last year, representing a 107% decline [14]. - Revenue decreased by 66% to HKD 55,552,000 from HKD 161,767,000 year-on-year [12]. - The company's earnings per share (EPS) was HKD (0.30), down from HKD 4.45, marking a 107% decrease; adjusted EPS excluding fair value changes was HKD 0.34, down from HKD 3.28, a 90% decline [12]. - The company's operating profit for the period was HKD 11,575,000, down from HKD 168,377,000 in the prior year, indicating a substantial reduction in operational performance [37]. - Total revenue and other income for the six months ended June 30, 2022, was HKD 125,023,000, a decrease from HKD 125,751,000 in the previous year [37]. - The company recognized other comprehensive income of HKD 117,009,000 for the period, compared to HKD 223,952,000 in the previous year, showing a decline in overall comprehensive income [39]. - The company paid dividends of HKD 47,555,000 during the period, slightly lower than HKD 47,781,000 paid in the previous year, reflecting a cautious approach to cash distribution [55]. - The company declared no interim dividend for the six months ended June 30, 2022, compared to no dividend declared in the same period of 2021 [95]. Investment Properties - The fair value change of investment properties resulted in a loss of HKD 21,819,000, compared to a gain of HKD 40,043,000 in the previous year [12]. - The fair value change of investment properties resulted in a loss of HKD 16,159,000, contrasting with a gain of HKD 38,400,000 in the previous year, highlighting volatility in property valuations [37]. - The carrying value of investment properties as of June 30, 2022, was HKD 2,483,000,000, down from HKD 2,499,000,000 as of December 31, 2021 [103]. - The fair value of investment properties decreased by HKD 16,159,000 during the period, reflecting market conditions [104]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 5,635,571,000, an increase from HKD 5,553,540,000 at the end of 2021, indicating growth in asset base [45]. - The company's total equity increased to HKD 5,526,079,000 as of June 30, 2022, compared to HKD 5,466,939,000 at the end of 2021, reflecting a slight improvement in financial stability [45]. - The group’s net current assets were approximately HK$508 million as of June 30, 2022, down from HK$547.7 million as of December 31, 2021 [21]. - The debt-to-equity ratio increased from 0.01% as of December 31, 2021, to 0.16% as of June 30, 2022 [21]. - Total trade and other payables amounted to HKD 52,582 million, down from HKD 57,265 million as of December 31, 2021, indicating a decrease of approximately 8.9% [121]. Employee and Operational Metrics - The group employed 12 employees as of June 30, 2022, compared to 13 employees in the previous year [28]. - Employee benefits expenses for the six months ended June 30, 2022, were HKD 9,374 million, down from HKD 12,115 million in the previous year, representing a decrease of 22.7% [123]. - The company incurred employee benefit expenses of HKD 11,873, a decrease from HKD 15,161 in the previous year [87]. Market and Economic Conditions - The occupancy rate of Nanyang Plaza in Kwun Tong is currently 89.1%, with significant rental activity being low due to ongoing economic challenges [15]. - The company plans to remain cautious and monitor market fluctuations for the remainder of the year, especially in light of rising interest rates and geopolitical tensions [19]. Shareholder Information - The major shareholder, Tankard Shipping Co. Inc., holds 5,500,000 shares, representing 16.19% of the issued share capital [26]. - The company did not purchase, sell, or redeem any of its shares during the period [22]. - The weighted average number of ordinary shares issued decreased slightly to 33,968,000 shares from 34,159,000 shares year-on-year [94]. Financial Risks and Governance - The group faces various financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing potential adverse effects on financial performance [66]. - The company has adopted the updated Corporate Governance Code effective from January 1, 2022, and will fully comply in its 2022 report [32]. - The audit committee reviewed the group’s accounting principles and practices, including the unaudited interim financial statements for the six months ended June 30, 2022 [35].

Financial Performance - Revenue and other income for 2021 was HKD 195,501,000, a decrease of 13% from HKD 225,203,000 in 2020[6] - Profit attributable to equity holders of the company increased by 120% to HKD 190,717,000 from HKD 86,766,000 in the previous year[6] - Earnings per share rose by 121% to HKD 5.59, compared to HKD 2.53 in 2020[6] - The net asset value per share increased by 11% to HKD 160.95 from HKD 145.64 in 2020[6] - The company reported a significant increase in operating profit, reaching HKD 201,165,000 compared to HKD 132,030,000 in 2020[10] - The total equity of the company stood at HKD 5,466,939,000, an increase from HKD 4,978,908,000 in the previous year[10] - Total revenue for the year ended December 31, 2021, was HKD 168,647,000, a decrease of 8.3% from HKD 183,674,000 in 2020[160] - Gross profit for 2021 was HKD 178,470,000, down from HKD 208,835,000 in 2020, reflecting a decline of 14.6%[160] - Net profit attributable to equity holders for 2021 was HKD 190,717,000, a substantial increase of 119.9% from HKD 86,766,000 in 2020[160] - The company reported a total comprehensive income of HKD 544,342,000 for 2021, a significant recovery from a loss of HKD 282,328,000 in 2020[164] Dividends - The company declared a total dividend of HKD 1.40 per share, unchanged from the previous year[6] - The company proposed a final dividend of HKD 0.70 per share and a special dividend of HKD 0.70 per share, totaling approximately HKD 47,600,000 for the year, slightly down from HKD 47,900,000 in the previous year[23] - The board proposed a final dividend of HKD 0.70 per share and a special dividend of HKD 0.70 per share, totaling approximately HKD 47.6 million in dividend distribution, consistent with the previous year's total of HKD 47.9 million[91] - The company maintained a dividend payout of HKD 47,555,000 in 2021, slightly down from HKD 47,859,000 in 2020[160] - The company paid dividends totaling HKD 47,781 in 2021, slightly down from HKD 48,122 in 2020[178] Investment Properties - Investment properties valued at HKD 2,499,000,000, up from HKD 2,431,900,000 in 2020[10] - The fair value change of investment properties for 2021 was HKD 67,100,000, compared to a loss of HKD 35,600,000 in 2020[160] - The group's investment properties are valued at HKD 2,499,000,000 as of December 31, 2021, with the share of joint ventures' investment properties valued at HKD 60,490,000[142] Corporate Governance - The board of directors includes experienced members with backgrounds in finance, law, and corporate governance, enhancing the company's strategic oversight[19] - The company’s independent non-executive directors bring extensive experience from various sectors, contributing to robust governance practices[19] - The company has established a continuous professional development program for all directors to stay updated on relevant regulations and governance codes[58] - The board consists of six members, including two executive directors, three independent non-executive directors, and one non-executive director[53] - The company’s independent non-executive directors confirmed their independence annually as per listing rules[50] - The company has a policy for reviewing the structure and composition of the board annually[72] Sustainability and ESG - The board emphasizes the importance of integrating environmental, social, and governance (ESG) considerations into key business decisions and regularly reports on ESG performance for continuous improvement[106] - The company has established long-term sustainability goals focusing on reducing greenhouse gas emissions, improving energy and water efficiency, and promoting responsible office practices[111] - The company actively manages climate risks by implementing emergency plans to mitigate disruptions and financial losses from extreme weather events[108] - The company collaborates with building managers to install energy-efficient lighting and implement waste management practices to reduce greenhouse gas emissions and resource consumption[112] - Employee well-being is prioritized, with measures taken to ensure health and safety, including providing pandemic-related supplies and promoting work-life balance[114][115] - The company conducts regular training for management and staff to maintain competitiveness and compliance with market trends and regulations[117] - The company adheres to internationally recognized labor standards, strictly prohibiting child and forced labor in its operations and among partners[118] - The company emphasizes sustainable procurement practices by collaborating closely with suppliers to minimize risks related to environmental, social, and governance issues[120] - Total greenhouse gas emissions amounted to 2,336.62 tons of CO2 equivalent in 2021, a slight increase from 2,327.03 tons in 2020[125] - Total energy consumption reached 3,291,705.41 kWh in 2021, compared to 3,281,718.46 kWh in 2020, indicating a growth of approximately 0.6%[125] - Water consumption decreased to 6,799 cubic meters in 2021 from 10,323 cubic meters in 2020, representing a reduction of about 34.5%[125] Shareholder Information - As of December 31, 2021, the total equity held by the directors and senior management in the company amounted to 16,231,944 shares, representing 47.79% of the issued share capital[31] - The major shareholder, Tankard Shipping Co. Inc., holds 5,500,000 shares, accounting for 16.19% of the issued share capital[34] - The company confirmed that the public float of its issued shares exceeded 25% as of March 24, 2022[45] Audit and Compliance - The financial statements for the year have been audited by PwC, who expressed willingness to be reappointed[45] - There were no significant related party transactions that constituted connected transactions as defined by the Hong Kong Stock Exchange[45] - The company paid or accrued audit and non-audit fees to its auditors amounting to HKD 1,697,000 and HKD 1,134,000 respectively for the year ended December 31, 2021[68] Operational Insights - The company plans to continue its market expansion and explore new investment opportunities in the coming year[6] - Future outlook remains positive with a focus on enhancing operational efficiency and exploring new technologies[6] - The company has subsidiaries registered in Hong Kong, the British Virgin Islands, and Panama, indicating a diversified operational footprint[17] - The company’s financial performance and asset-liability summary for the past five fiscal years are detailed in the report[26] - The company maintains a complaint handling mechanism for its rental properties to improve service quality and address customer issues promptly[121] Employee Metrics - The employee turnover rate remained at 0% for both 2021 and 2020, indicating stable workforce retention[127] - The training rate for full-time employees dropped to 54% in 2021 from 85% in 2020, reflecting a significant decrease in employee training participation[127] - The average training hours per full-time employee decreased to 6.31 hours in 2021 from 7.04 hours in 2020[127] Cash Flow and Financial Position - Cash generated from operating activities showed a net inflow of HKD 10,729 in 2021, down from HKD 31,884 in 2020, indicating a decrease of approximately 66%[178] - The net cash inflow from investing activities was HKD 70,767 in 2021, slightly down from HKD 79,207 in 2020[178] - The net cash outflow from financing activities was HKD 61,060 in 2021, an improvement from HKD 68,622 in 2020, showing a reduction of approximately 11%[178] - The cash and cash equivalents at the end of the year increased to HKD 143,819 from HKD 123,243, reflecting a growth of approximately 16.7%[178]

Financial Performance - The company reported a profit attributable to equity holders of HKD 152,140,000 for the six months ended June 30, 2021, representing a 256% increase from HKD 42,785,000 in 2020[5]. - Total revenue and other income for the same period was HKD 161,767,000, up 44% from HKD 112,235,000 in 2020[3]. - Earnings per share increased to HKD 4.45, a 259% rise compared to HKD 1.24 in the previous year[3]. - Total comprehensive income attributable to equity holders for the period was HKD 376,092,000, compared to HKD 221,411,000 in the previous year, representing an increase of 69.9%[34]. - Other comprehensive income after tax for the period was HKD 223,952,000, compared to a loss of HKD 264,196,000 in the previous year[33]. - The gross profit for the same period was HKD 153,381,000, compared to HKD 104,235,000 in 2020, reflecting a significant increase[28]. - Operating profit rose to HKD 168,377,000 for the six months ended June 30, 2021, compared to HKD 71,613,000 in the previous year[28]. - The company reported a total operating profit of HKD 171,828,000 for the six months ended June 30, 2021, compared to HKD 65,563,000 in the same period of 2020[79]. Investment Portfolio - The company’s investment portfolio increased by 7.87% year-on-year, with financial assets at fair value through profit or loss totaling HKD 456,000,000, accounting for 8.4% of total assets[9]. - The investment in Shanghai Commercial & Savings Bank is valued at HKD 2,208,000,000, representing approximately 40.8% of the company's total assets[11]. - The investment portfolio has seen a year-to-date increase of approximately USD 3,200,000 or 5.6% as of August 24, 2021[10]. - The group's investment properties are valued at HKD 2,301,000,000 as of June 30, 2021, an increase from HKD 2,272,000,000 as of December 31, 2020[14]. - The total value of investment properties increased to HKD 2,470,300,000 as of June 30, 2021, up from HKD 2,431,900,000 at the end of 2020, reflecting a fair value change of HKD 38,400,000[94][96]. - The fair value of financial assets and liabilities is categorized into three levels based on the inputs used in the valuation techniques, with a total of HKD 2,675,865,000 in assets measured at fair value[62]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 5,409,642,000, an increase from HKD 5,068,499,000 as of December 31, 2020, reflecting a growth of 6.7%[36]. - Total equity increased to HKD 5,304,919,000 from HKD 4,978,908,000, marking a rise of 6.5%[36]. - The company's retained earnings rose to HKD 3,412,442,000 from HKD 3,310,383,000, an increase of 3.1%[36]. - The total liabilities increased to HKD 104,723,000 from HKD 89,591,000, reflecting a rise of 17.0%[36]. - The debt-to-equity ratio decreased from 0.1% as of December 31, 2020, to 0.06% as of June 30, 2021[14]. - The company’s total liabilities as of June 30, 2021, were HKD 104,723,000, with unallocated liabilities of HKD 73,229,000[76]. Cash Flow and Dividends - Cash and cash equivalents decreased to HKD 65,742,000 from HKD 123,243,000, a decline of 46.6%[45]. - The company reported a cash outflow from operating activities of HKD 3,451,000 for the current period, compared to an inflow of HKD 12,737,000 in the previous year[45]. - The company paid dividends of HKD 47,781,000 for the year 2020, slightly down from HKD 48,122,000 in the previous year[45]. - The company declared a special dividend of HKD 0.70 per share for the year 2020, consistent with the previous year's special dividend[11]. - The company did not declare an interim dividend for the six months ended June 30, 2021, compared to no interim dividend declared in the same period of 2020[11]. Operational Highlights - The rental rate for the company's industrial property in Kwun Tong is currently at 89.9%, with efforts to attract new tenants through favorable leasing terms[6]. - The company employed 13 staff members as of June 30, 2021, maintaining the same number as in 2020[21]. - The company incurred employee benefits expenses of HKD 15,161,000 for the six months ended June 30, 2021, an increase from HKD 14,487,000 in the previous year[79]. - The company's real estate segment generated revenue of HKD 41,339,000, while the financial investment segment contributed HKD 120,428,000 for the six months ended June 30, 2021[71]. Market Conditions and Risks - The company anticipates challenges from the ongoing pandemic and rising inflation rates, which may impact global stock market performance[10]. - The group’s overall risk management plan focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[56]. Share Repurchase - The company repurchased a total of 56,000 shares during the six months ended June 30, 2021, at a total cost of HKD 2,300,025[15]. - The company repurchased a total of 56,000 shares during the period, with a total payment of HKD 2,300,000, down from HKD 5,140,000 for 115,000 shares repurchased in the previous year, indicating a decrease of approximately 55.3% in repurchase expenditure[109].

Financial Performance - Total revenue and other income for 2020 was HKD 225,203,000, a decrease of 2% from HKD 228,897,000 in 2019[6] - Profit attributable to equity holders of the company increased by 44% to HKD 86,766,000 from HKD 60,281,000 in 2019[6] - Earnings per share rose by 45% to HKD 2.53, compared to HKD 1.75 in the previous year[6] - The fair value change of investment properties and related tax impacts decreased by 36% to HKD 65,742,000 from HKD 103,003,000 in 2019[6] - The net asset value per share decreased by 6% to HKD 145.64 from HKD 154.36 in 2019[6] - The company reported a total equity of HKD 4,978,908,000, compared to HKD 5,321,713,000 in the previous year[10] - The company recorded a total comprehensive loss of HKD 282,328 thousand in 2020, compared to a total comprehensive income of HKD 622,025 thousand in 2019[172] - The company reported a gross profit of HKD 208,835 for 2020, slightly down from HKD 212,222 in 2019[158] - The company experienced a significant decrease in the fair value of investment properties, reporting a loss of HKD 35,600 in 2020 compared to a loss of HKD 95,469 in 2019[158] - The total comprehensive income attributable to equity holders of the company for 2020 was a loss of HKD 282,328, compared to a gain of HKD 622,025 in 2019[162] Dividends - The company declared a final dividend of HKD 0.70 per share, consistent with the previous year[6] - The company reported a final dividend of HKD 0.70 per share and a special dividend of HKD 0.70 per share, totaling approximately HKD 47.9 million for the year, compared to HKD 48.3 million in the previous year[39] - The board of directors has the discretion to propose dividends based on factors such as operational performance, cash flow, and financial condition[55][56] - The company paid dividends totaling HKD 48,122 thousand in 2020, compared to HKD 48,267 thousand in 2019, a slight decrease of about 0.3%[176] Assets and Liabilities - Total assets amounted to HKD 4,978,908,000, down from HKD 5,321,713,000 in 2019[10] - The company’s total liabilities decreased to HKD 89,591 thousand in 2020 from HKD 103,044 thousand in 2019, a reduction of approximately 13.0%[168] - Total assets decreased to HKD 5,068,499 thousand in 2020 from HKD 5,424,757 thousand in 2019, representing a decline of approximately 6.5%[164] - Non-current assets amounted to HKD 4,523,602 thousand in 2020, down from HKD 4,955,719 thousand in 2019, a decrease of about 8.7%[164] - Current assets increased to HKD 544,897 thousand in 2020, compared to HKD 469,038 thousand in 2019, reflecting an increase of approximately 16.1%[164] Corporate Governance - The company is committed to good corporate governance to protect shareholder interests and enhance group performance[64] - The board of directors consists of seven members, including three executive directors and three independent non-executive directors[66] - The company has confirmed that there are no related party transactions that constitute defined related transactions under the Hong Kong Stock Exchange rules[61] - All directors participated in continuous professional development to stay informed about relevant regulations and governance codes[74] Shareholder Meetings and Proposals - The company plans to hold its annual general meeting on May 21, 2021, to discuss the audited financial statements and dividend distribution[11] - The company will suspend share transfer registration from May 14 to May 21, 2021, to determine shareholder eligibility for the upcoming annual general meeting[23] - All proxy forms must be submitted at least 48 hours before the meeting to be valid[24] - The chairman will request voting on all resolutions listed in the notice of the meeting[26] Environmental Impact - The company reduced electricity consumption by 57,286 kWh in 2020 due to the installation of new central air conditioning systems[115] - Greenhouse gas emissions decreased significantly from 1,995.32 tons of CO2 equivalent in the previous year to 1.57 tons of CO2 equivalent in 2020[115] - Total greenhouse gas emissions decreased to 1,606.47 tons of CO2 equivalent in 2020 from 3,702.79 tons in 2019, representing a reduction of approximately 56.7%[129] - Direct emissions (Scope 1) were 1.57 tons of CO2 equivalent in 2020, down from 1,995.32 tons in 2019, indicating a decline of about 99.9%[129] Investment Activities - The company has been engaged in investment holding as its primary business, with further details available in financial statement notes 16 and 31[38] - The company’s investment in Shanghai Commercial & Savings Bank amounted to HKD 1,985,100,000, accounting for approximately 39% of total assets[108] - The investment portfolio increased by 9.85% year-on-year, with financial assets at fair value through profit or loss totaling HKD 407,100,000, representing 8% of total assets[105] - The company has invested in global consumer-related funds and increased investments in smart energy and new technology stocks in the new year[106] Employee Welfare - The company provided various employee benefits, including discretionary bonuses, medical insurance, and retirement funds, to enhance employee welfare[117] - The company employed 13 staff members as of December 31, 2020, with compensation based on qualifications and experience[111] Audit and Compliance - The audit opinion confirmed that the consolidated financial statements accurately reflect the group's financial position as of December 31, 2020[132] - The company has not been aware of any violations of laws and regulations during the reporting period that could have a significant impact on its operations[128] Market Presence - The company has subsidiaries registered in Hong Kong, the British Virgin Islands, Liberia, and Panama, indicating a broad international presence[33][36] - The largest supplier accounted for 73% of the group's purchases, while the top five suppliers collectively represented 93%[61] - The largest customer contributed 13% of the total revenue from investment properties, and the top five customers accounted for 27%[61]

Financial Performance - The company reported a profit attributable to equity holders of HKD 42,800,000 for the six months ended June 30, 2020, a decrease of 69% compared to HKD 138,100,000 in 2019[10]. - Revenue and other income decreased by 31% to HKD 112,235,000 from HKD 162,052,000 year-on-year[4]. - Earnings per share dropped to HKD 1.24, down 69% from HKD 4.01 in the previous year[7]. - The company recorded a net loss of HKD 28,300,000 from realized and unrealized losses on financial assets during the period[14]. - The company reported a net profit attributable to equity holders of HKD 42,785,000 for the six months ended June 30, 2020, down from HKD 138,139,000 in 2019[35]. - The operating profit for the same period was HKD 71,613,000, significantly lower than HKD 150,617,000 in the previous year[33]. - The total comprehensive income for the period attributable to equity holders was a loss of HKD 221,411,000 compared to a gain of HKD 765,104,000 in the previous year[35]. - The company reported a profit of HKD 42,785,000 for the six months ended June 30, 2020, compared to a profit of HKD 138,139,000 for the same period in 2019, indicating a decrease of approximately 69%[38]. Revenue Breakdown - Revenue for the six months ended June 30, 2020, was HKD 140,565,000, representing an increase from HKD 127,982,000 in the same period of 2019[33]. - Revenue from real estate for the six months ended June 30, 2020, was HKD 44,251, an increase of 1.2% from HKD 43,720 in 2019[69]. - Revenue from financial investments for the six months ended June 30, 2020, was HKD 67,984, a decrease of 42.4% from HKD 118,332 in 2019[69]. - Total rental income from investment properties for the six months ended June 30, 2020, was HKD 38,369,000, a 1.6% increase from HKD 37,752,000 in 2019[65]. - Investment income from financial assets measured at fair value through profit or loss was HKD 1,514,000, down 33.8% from HKD 2,287,000 in 2019[65]. - Dividend income from financial assets measured at fair value through other comprehensive income was HKD 94,462,000, an increase of 15.5% compared to HKD 81,718,000 in 2019[65]. - Management fee income from investment properties was HKD 5,882,000, slightly down from HKD 5,968,000 in 2019[65]. - Other income for the period was HKD 338,000, compared to HKD 257,000 in 2019, reflecting a 31.5% increase[65]. Assets and Liabilities - Total assets decreased from HKD 5,424,757,000 as of December 31, 2019, to HKD 5,163,506,000 as of June 30, 2020, representing a decline of approximately 4.8%[37]. - The company's total equity decreased from HKD 5,321,713,000 to HKD 5,047,040,000, a reduction of about 5.1%[38]. - Cash and cash equivalents decreased significantly from HKD 80,874,000 to HKD 39,906,000, a drop of approximately 50.7%[40]. - The total liabilities increased from HKD 103,044,000 to HKD 116,466,000, an increase of about 13%[37]. - The total assets as of June 30, 2020, amounted to HKD 5,054,812, a decrease from HKD 5,305,747 as of December 31, 2019[72]. - The total liabilities as of June 30, 2020, were HKD 116,466, compared to HKD 103,044 as of December 31, 2019[72]. - The total trade payables as of June 30, 2020, were HKD 50,472,000, down from HKD 53,315,000 as of December 31, 2019, indicating a decrease of about 5.2%[110]. - The total other payables and accrued expenses were HKD 28,024,000 as of June 30, 2020, down from HKD 30,649,000 as of December 31, 2019, indicating a decrease of approximately 8.5%[110]. Investments and Shareholder Actions - The investment in Shanghai Commercial & Savings Bank accounted for approximately 4% of the bank's total issued capital, with a cash dividend received of about HKD 74,600,000[15]. - The company's investment properties are valued at HKD 2,298,000,000, with no bank financing utilized as of June 30, 2020[17]. - The investment portfolio, including cash, decreased by 7.45% as of June 30, 2020, with a total value of approximately HKD 335,800,000[14]. - The company holds a 65% stake in Shanghai Shen Nan Textile Co., which has been affected by the COVID-19 pandemic and subsequent rent concessions[12]. - The company repurchased a total of 115,000 shares at a total cost of HKD 5,139,800 during the six months ended June 30, 2020[18]. - The company’s share capital decreased from HKD 3,448,000 to HKD 3,437,000 due to share buybacks[38]. - The company did not declare an interim dividend for the six months ended June 30, 2020, compared to no interim dividend in 2019[83]. Market Conditions and Future Outlook - The rental rate for Nanyang Plaza in Hong Kong is currently at 90.4%, with expectations of further declines due to tenant requests for rent reductions[11]. - The company anticipates continued challenges and volatility in the market for the remainder of the year[15]. - The group faces various financial risks including market risk, credit risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[51]. Compliance and Governance - The major shareholder, Tankard Shipping Co. Inc., holds 5,500,000 shares, representing 16.00% of the issued share capital[25]. - The company’s board confirmed compliance with the corporate governance code during the reporting period[29]. - The group has not adopted any new accounting standards or amendments early, with several new standards effective from January 1, 2021, and beyond[49].

Financial Performance - Revenue for 2019 reached HKD 228.9 million, an increase of 88% compared to HKD 122.0 million in 2018[8] - Profit attributable to equity holders decreased by 82% to HKD 60.3 million from HKD 334.5 million in 2018[8] - Earnings per share (EPS) fell to HKD 1.75, down 82% from HKD 9.62 in the previous year[8] - The adjusted EPS, excluding changes in fair value of investment properties, increased by 168% to HKD 4.74 from HKD 1.77[8] - Operating profit for 2019 was HKD 75.6 million, a significant decrease from HKD 344.3 million in 2018[10] - The group recorded a profit attributable to equity holders of HKD 60,300,000 for the year ended December 31, 2019, a decrease from HKD 334,500,000 in 2018[100] - The earnings per share for the year was HKD 1.75, down from HKD 9.62 in 2018; excluding the impact of fair value revaluation of investment properties, the earnings per share would be HKD 4.74, compared to HKD 1.77 in 2018[100] - Net profit attributable to equity holders was HKD 60,281,000, down 82.0% from HKD 334,518,000 in the previous year[174] - Cash flow from operating activities showed a net inflow of HKD 22,010,000 in 2019, a recovery from a net outflow of HKD 5,064,000 in 2018[192] Assets and Equity - Total assets increased to HKD 5.32 billion, up 12% from HKD 4.75 billion in 2018[10] - The company reported a total equity of HKD 5.32 billion, reflecting a growth from HKD 4.75 billion in 2018[10] - Total equity attributable to equity holders rose to HKD 5,321,713,000 in 2019, compared to HKD 4,747,955,000 in 2018, an increase of 12.1%[180] - Total liabilities increased to HKD 103,044,000 in 2019 from HKD 85,101,000 in 2018, representing a growth of 21.5%[188] - Total liabilities to equity ratio increased to 0.019 from 0.018, indicating a slight increase in leverage[188] Dividends - The company declared a final dividend of HKD 0.70 per share, maintaining the same level as the previous year[8] - The company reported a total dividend distribution of approximately HKD 48,300,000 for the year, maintaining the same amount as in 2018[41] - The proposed final dividend is HKD 0.70 per share, consistent with the previous year's distribution[41] - The company maintained dividends of HKD 48,267,000 for both years, indicating a stable dividend policy despite the drop in profits[174] - The company has adopted a dividend policy allowing for cash or other means of dividend distribution, subject to board discretion and shareholder approval[56] Investment Properties - The fair value change of investment properties resulted in a profit of HKD 103.0 million, compared to a loss of HKD 273.0 million in 2018[8] - The latest valuation of investment properties decreased by HKD 95,500,000 as of December 31, 2019, compared to December 31, 2018[102] - The group's investment properties were valued at HKD 2,303,000,000 as of December 31, 2019, down from HKD 2,387,000,000 the previous year[112] - The fair value of investment properties decreased to HKD 2,467,500,000 in 2019 from HKD 2,553,230,000 in 2018, reflecting a decline of 3.4%[180] - The valuation of investment properties involved significant judgments and estimates, particularly regarding specific property characteristics and expected future rental income[144] Corporate Governance - The board of directors has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules throughout the year[65] - The board of directors consists of seven members, including three executive directors and three independent non-executive directors, ensuring a diverse governance structure[73] - The attendance rate for board meetings in 2019 was 100% for all directors, indicating strong engagement and commitment[73] - The independent non-executive directors confirmed their independence annually in accordance with listing rules, ensuring compliance and governance integrity[68] - The company emphasizes board diversity as a key factor for competitive advantage and sustainable development, considering various factors such as gender, age, and professional experience[87] Health and Safety - The company will implement health measures at the annual general meeting due to COVID-19, including mandatory temperature checks for attendees[18] - The company emphasizes the importance of health and safety for stakeholders during the ongoing pandemic[19] - The company has provided sufficient masks and hand sanitizers to ensure the health and welfare of its employees during the ongoing pandemic[115] Environmental Impact - Total greenhouse gas emissions decreased to 3,702.79 tons of CO2 equivalent in 2019 from 4,846.16 tons in 2018, representing a reduction of approximately 23.6%[135] - Energy consumption totaled 3,334,508.74 kWh in 2019, down from 3,877,562.61 kWh in 2018, indicating a decrease of about 14.0%[135] - Indirect energy consumption per revenue decreased to 19.21 kWh per HKD 1,000 in 2019 from 23.67 kWh in 2018, showing an improvement of about 18.0%[135] - The company has implemented energy-efficient measures, including the installation of energy-saving lamps and automatic control devices in buildings[121] Social Responsibility - The company collaborates with charitable organizations to find sustainable solutions for social issues, donating to local charities[132] - The company adheres to international labor standards, strictly prohibiting child labor and forced labor[127] - The company emphasizes employee well-being and work-life balance, providing various benefits including discretionary bonuses and medical insurance[123]

Financial Performance - The group reported a revenue of HKD 162,052,000 for the six months ended June 30, 2019, representing a 50% increase from HKD 108,359,000 in 2018[3]. - Profit attributable to equity holders decreased by 52% to HKD 138,139,000 compared to HKD 287,395,000 in the previous year[3]. - Earnings per share (EPS) was HKD 4.01, down 51% from HKD 8.22 in 2018; adjusted EPS excluding fair value changes was HKD 3.53, up 76% from HKD 2.01[3][5]. - The gross profit for the six months ended June 30, 2019, was HKD 153,956,000, compared to HKD 100,285,000 for the same period in 2018[27]. - Operating profit decreased to HKD 150,617,000 for the six months ended June 30, 2019, down from HKD 301,139,000 in the previous year[27]. - The company reported total revenue and other income of HKD 162,052,000 for the six months ended June 30, 2019, an increase from HKD 108,359,000 in the same period of 2018[27]. - The company’s total comprehensive income for the period was HKD 765,104 thousand, compared to HKD 377,024 thousand in the previous year, indicating a significant increase of about 102.6%[37]. - The company reported a total tax expense of HKD 18,499,000 for the six months ended June 30, 2019, slightly up from HKD 18,467,000 in the previous year[85]. Investment and Assets - The group holds a 65% stake in Shanghai Shen Nan Textile Co., which has a total lettable area of 28,142 square meters, fully leased to third parties[6]. - The investment in Shanghai Commercial & Savings Bank (SCSB) increased by approximately 39.8%, with a fair value change of HKD 631,700,000 reported in other comprehensive income[11]. - The financial assets classified as current assets amounted to HKD 348,900,000, representing 6.3% of the group's total assets[8]. - The group's investment properties are valued at HKD 2,411,000,000 as of June 30, 2019, compared to HKD 2,387,000,000 as of December 31, 2018[15]. - The total investment properties as of June 30, 2019, amounted to HKD 2,580,830,000, an increase of 1.1% from HKD 2,553,230,000 as of December 31, 2018[97]. - The fair value of investment properties increased by HKD 18,571,000 during the six months ended June 30, 2019, compared to a significant increase of HKD 220,391,000 in the same period of 2018[99]. - The total amount of prepayments, trade receivables, and other receivables as of June 30, 2019, was HKD 93,006,000, a substantial increase from HKD 19,091,000 as of December 31, 2018[109]. - The total assets as of June 30, 2019, were HKD 5,452,535,000, compared to HKD 4,724,049,000 as of December 31, 2018, indicating a growth of 15.4%[78]. Liabilities and Equity - Total liabilities rose to HKD 115,153 thousand, compared to HKD 85,101 thousand, indicating an increase of about 35.3%[33]. - The total equity attributable to equity holders increased to HKD 5,464,792,000 as of June 30, 2019, from HKD 4,747,955,000 as of December 31, 2018[31]. - The total equity as of June 30, 2019, was HKD 5,464,792 thousand, up from HKD 4,747,955 thousand, marking an increase of around 15.1%[37]. - The company’s retained earnings increased to HKD 3,362,457 thousand from HKD 3,272,585 thousand, showing a growth of approximately 2.7%[37]. - The deferred tax liabilities as of June 30, 2019, amount to HKD (24,404,000), a decrease from HKD (25,213,000) as of December 31, 2018, reflecting a reduction of approximately 3.2%[117]. Cash Flow and Dividends - Cash and cash equivalents at the end of the period were HKD 112,676 thousand, an increase from HKD 101,173 thousand, reflecting a growth of approximately 11.8%[41]. - The company reported a net cash outflow from operating activities of HKD 5,652 thousand, a significant improvement from HKD 26,278 thousand in the previous year[41]. - The company paid dividends amounting to HKD 48,267 thousand during the period, compared to HKD 47,122 thousand in the previous year[41]. - The company did not declare an interim dividend for the six months ended June 30, 2019, compared to no interim dividend declared in 2018[89]. Business Segments - The group operates two main business segments: real estate investment and leasing, and financial investments involving holding and trading securities[69]. - The real estate segment generated revenue of HKD 43,720,000, while the financial investment segment contributed HKD 118,332,000, leading to a total segment profit of HKD 150,617,000[75]. Market Outlook and Risks - The group anticipates a challenging outlook for the remainder of the year due to geopolitical issues and potential interest rate cuts in major markets[10]. - The group faces various financial risks including market risk, credit and counterparty risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[58]. - No changes have been made to the risk management policies since the end of the last reporting period[59].