Financial Performance - The company reported a retained profit of HKD 38,600,000 as of December 31, 2022, compared to HKD 42,953,000 in 2021[15]. - Revenue from the top five customers accounted for approximately 78% of total revenue, with the largest customer contributing about 58%[14]. - The company recorded a revenue decrease of 24% to HKD 323,579,000 in the fiscal year 2022, down from HKD 423,994,000 in 2021[52]. - The loss attributable to the company's owners decreased by 95% to HKD 189,249,000, compared to HKD 3,583,297,000 in the previous year[52]. - The total comprehensive expenses amounted to HKD 223,831,000, down from HKD 3,535,049,000 in the previous year[48]. - Basic loss per share for the year was HKD 0.93, compared to HKD 17.58 in 2021[52]. - The group recorded a significant decrease in income from its securities investments, with a drop from HKD 987,000 in the previous year to HKD 540,000 in the current year[66]. - The group's trading business revenue decreased to HKD 188,301,000 in FY2022 from HKD 222,394,000 in FY2021, while profit increased to HKD 3,614,000 from HKD 180,000[78]. - The lending business revenue decreased by 18% to HKD 123,723,000 in FY2022 from HKD 150,330,000 in FY2021, with a loss of HKD 92,210,000 compared to a profit of HKD 123,434,000 in FY2021[88]. - The brokerage business revenue decreased by 14% to HKD 11,015,000 in 2022 from HKD 12,799,000 in 2021, with commission income dropping by 37% to HKD 3,869,000[102]. Corporate Governance - The company has maintained a high standard of business ethics and corporate governance across all operations[5]. - The board consists of eight members, including three executive directors and four independent non-executive directors, ensuring a balanced composition[8]. - The company has a policy to evaluate the independence of non-executive directors annually[12]. - The company has not entered into any service contracts with directors that cannot be terminated within one year without compensation[21]. - The company encourages all directors to participate in continuous professional development to enhance their knowledge and skills[195]. - The company provides timely updates on regulatory and business environment developments to assist directors in fulfilling their duties[195]. - Internal briefings and professional development are arranged for directors as needed[195]. - The company has maintained independence assessments as part of its governance practices[196]. - The corporate governance report was published on March 28, 2023, reflecting the company's commitment to transparency[198]. - The company has implemented measures to ensure compliance with corporate governance standards[200]. - The company actively monitors and updates its governance practices in line with regulatory changes[195]. - The company emphasizes the importance of ongoing education for its board members to adapt to evolving market conditions[195]. Investment Strategy and Market Conditions - The company is committed to long-term, stable, and sustainable growth while considering environmental, social, and governance factors[5]. - The management adopted a prudent and rigorous approach in managing the business amid market uncertainties and complexities[52]. - The company’s investment strategy focuses on capital appreciation and dividend/interest income for long-term securities investments[53]. - The overall market conditions were influenced by factors such as the energy crisis from the Russia-Ukraine war and inflationary pressures[52]. - The group is evaluating investment opportunities in target companies within the financial industry, including an insurance company in Hong Kong, to expand and diversify its business and revenue base[59]. - The management maintains a cautious and prudent approach in managing the group's business amid global economic uncertainties, including inflation and geopolitical tensions[59]. - The group plans to announce further developments regarding investment opportunities to shareholders as they arise[59]. Impairment and Financial Assets - The impairment loss provision for receivables increased to HKD 209,397,000 from HKD 20,347,000[52]. - The net impairment loss recognized for the fiscal year 2022 was HKD 209,397,000, primarily related to credit risk assessments of certain defaulted and non-defaulted loans[158]. - The group recognized an impairment loss of HKD 7,301,000 on debt instruments due to increased credit risk, compared to an impairment loss of HKD 253,348,000 in the previous year[142]. - The net loss from financial assets measured at fair value through profit or loss was HKD 8,086,000 for the fiscal year, significantly reduced from HKD 3,674,811,000 in the previous year[66]. - The impairment provision increased by 98% to HKD 507,116,000 as of December 31, 2022, compared to HKD 256,541,000 in the previous fiscal year[80]. Shareholder Information - The largest shareholder, Dr. Zheng, holds 3,397,540,000 shares, representing approximately 16.67% of the issued shares[167]. - Another significant shareholder, Mr. Sun, owns 1,680,000,000 shares, accounting for approximately 8.24% of the issued shares[167]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2022, compared to no dividend in 2021[155]. Employee and Operational Information - The company had 50 employees as of December 31, 2022, with total employee costs amounting to HKD 29,512,000, slightly down from HKD 30,537,000 in 2021[106]. - The total amount of the loan portfolio was HKD 1,527,714,000, remaining relatively stable compared to HKD 1,491,216,000 in 2021, with a net value of HKD 1,020,598,000 after impairment provisions[99]. - The group held current assets of HKD 2,189,628,000 at the end of the fiscal year 2022, down from HKD 3,026,378,000 in 2021, with a current ratio of approximately 45.6 compared to 4.1 in the previous year[104]. - The company changed its English name from "China Strategic Holdings Limited" to "CSC Holdings Limited" and its Chinese name from "中策集團有限公司" to "中策資本控股有限公司" effective November 1, 2022[110]. - The company did not pledge any assets as of December 31, 2022, compared to HKD 3,096,000 in bank deposits pledged for credit financing in the previous year[113].

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之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示不會就本公佈全部或任何部份內容而產 生或因倚賴該等內容而引致之任何損失承擔任何責任。 CSC HOLDINGS LIMITED 中 策 資 本 控 股 有 限 公 司 （於香港註冊成立之有限公司） （股份代號：235） 截至二零二二年十二月三十一日止年度之 全年業績公佈 中策資本控股有限公司（「本公司」）之董事會（「董事會」）謹此公佈本公司及其附屬 公司（統稱為「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合業績 連同比較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 3 323,579 423,994 貿易收入 188,301 222,394 股息收入 540 987 利息收入 130,669 194,015 佣金、手續費收入及其他 4,069 6,598 ...

Financial Performance - For the six months ended June 30, 2022, the company recorded a revenue decrease of 21% to HKD 258,750,000, down from HKD 325,476,000 for the same period in 2021[15] - The loss attributable to owners of the company was HKD 104,350,000, compared to a loss of HKD 196,625,000 in the previous year[15] - The company reported a loss before tax of HKD 72,582,000, significantly improved from a loss of HKD 224,348,000 in the prior year[67] - The net loss attributable to the company's owners for the period was HKD 104,350,000, compared to a loss of HKD 196,625,000 in the same period last year[67] - Total comprehensive expenses attributable to the company's owners amounted to HKD 126,073,000, down from HKD 228,059,000 in the previous year[46] - The company reported a basic loss per share of 0.00 HKD for the six months ended June 30, 2022, with a weighted average number of ordinary shares of 20,385,254[105] - The company’s basic loss per share was HKD 0.51, an improvement from HKD 0.96 in the previous year[71] - The total comprehensive loss for the period was HKD 126,073,000, compared to HKD 228,059,000 in the same period last year[71] Investment Performance - The company's securities investments recorded an overall loss of HKD 21,280,000, significantly improved from a loss of HKD 148,094,000 in the same period last year[15] - The company did not record any income from its securities investments during the period, compared to HKD 21,249,000 in the same period last year[19] - The net loss from financial assets measured at fair value through profit or loss was HKD 3,933,000 for the first half of 2022, a significant improvement from a net loss of HKD 152,895,000 in the same period of 2021[20] - The net loss from debt instruments measured at fair value through other comprehensive income was HKD 38,856,000 for the first half of 2022, an improvement from a net loss of HKD 60,376,000 in the same period of 2021[27] - The company recognized an impairment loss of HKD 17,133,000 on debt instruments during the first half of 2022, compared to HKD 15,562,000 in the same period of 2021[28] Revenue Breakdown - The group's trading business recorded a revenue decrease to HKD 188,301,000 in the first half of 2022, down from HKD 222,394,000 in the same period of 2021, while profit increased to HKD 626,000 from HKD 244,000[32] - The lending business experienced a 15% revenue decline to HKD 64,469,000 in the first half of 2022, compared to HKD 75,724,000 in the same period of 2021, resulting in a loss of HKD 19,023,000, reversing from a profit of HKD 36,628,000[33] - Revenue from coke product trading was HKD 188,301 thousand, down 15.3% from HKD 222,394 thousand in the same period of 2021[82] - Interest income from lending business decreased to HKD 64,269 thousand, down 15% from HKD 75,499 thousand in the previous year[82] - The group's securities brokerage business saw a slight revenue decrease of 2% to HKD 5,980,000, while profit increased by 7% to HKD 4,449,000[45] Asset Management - The value of the company's financial assets measured at fair value through profit or loss was HKD 22,399,000, down from HKD 26,632,000 as of December 31, 2021[19] - The value of debt instruments measured at fair value through other comprehensive income was HKD 25,104,000, down from HKD 63,960,000 as of December 31, 2021[19] - The company's financial assets measured at fair value through profit or loss amounted to HKD 22,399,000, with no income generated during the first half of 2022, compared to HKD 271,000 in the same period of 2021[20] - The composition of the financial assets portfolio as of June 30, 2022, was 92.65% in property, 5.81% in conglomerates, and 1.54% in other categories[20] - The company's debt instruments measured at fair value through other comprehensive income totaled HKD 25,104,000 as of June 30, 2022, with no income generated during the first half of 2022, compared to HKD 20,978,000 in interest income in the same period of 2021[27] Financial Position - Total assets decreased to HKD 2,292,695,000 from HKD 2,421,972,000, indicating a decline of 5.3%[69] - Current assets totaled HKD 2,256,071,000, down from HKD 3,026,378,000, a decrease of 25.5%[69] - The company's net asset value was HKD 2,288,895,000, down from HKD 2,414,080,000, reflecting a decrease of 5.2%[69] - The group’s liquidity was supported by funds generated from operations, credit financing from financial institutions, and funds raised through the issuance of interest-bearing notes[47] - The group recorded a loss attributable to the company's owners reduced by 47% to HKD 104,350,000 for the first half of 2022, compared to HKD 196,625,000 in the same period of 2021[46] Impairment and Provisions - The impairment loss provision increased by 124% to HKD 78,981,000 in the first half of 2022, up from HKD 35,244,000 in the same period of 2021[33] - The impairment provision balance increased by 37% to HKD 352,687,000 as of June 30, 2022, compared to HKD 256,541,000 at the end of 2021[37] - The company made an impairment provision of 78,981,000 HKD for receivables during the period, compared to 35,244,000 HKD for the same period in 2021[116] - The expected credit loss for receivables as of June 30, 2022, was 352,687,000 HKD, compared to 256,541,000 HKD as of December 31, 2021[119] - The company’s total expected credit loss for the period was 373,254,000 HKD, reflecting changes in credit quality and market conditions[119] Operational Strategy - The company adopted a cautious and prudent approach in managing its business amid challenging market conditions, including the ongoing COVID-19 pandemic and geopolitical tensions[15] - The management remains focused on long-term capital appreciation and dividend/interest income as key investment return metrics[16] - The management continues to explore business opportunities to improve performance amid the recovery of the global economy post-COVID-19[32] - The group aims to provide loans to borrowers with good credit records and sufficient collateral, primarily commercial and residential properties in Hong Kong[33] - The group has established a clear credit policy and monitoring procedures covering all aspects of the loan process[40] Employee and Governance - The group had 47 employees as of June 30, 2022, down from 57 employees a year earlier, with total employee costs amounting to HKD 14,708,000[61] - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2022[181] - The company has adopted the standard code for securities transactions by directors and confirmed compliance during the six-month period[182] - The board has resolved not to declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[168] - The company did not declare any dividends for the interim period ended June 30, 2022, consistent with the previous year[101]

Financial Performance - The company recorded a revenue increase of 65% to HKD 423,994,000 for the fiscal year 2021, compared to HKD 256,347,000 in 2020[14]. - The company reported a loss attributable to shareholders of HKD 3,583,297,000, a significant decline from a profit of HKD 2,283,187,000 in the previous year[14]. - Basic loss per share for the year was HKD 0.1758, compared to earnings of HKD 0.1329 per share in 2020[14]. - The total comprehensive expenses attributable to shareholders were HKD 3,535,049,000, compared to total comprehensive income of HKD 2,294,579,000 in 2020[15]. - The overall loss from securities investments amounted to HKD 3,970,273,000, compared to a profit of HKD 2,939,628,000 in 2020[14]. - The group reported a significant increase in trading business revenue, rising over 53 times to HKD 222,394,000 in the fiscal year 2021, compared to HKD 4,062,000 in 2020, with a profit of HKD 180,000, reversing a loss of HKD 165,000 in the previous year[82]. - The lending business recorded a revenue decrease of 17% to HKD 150,330,000 in the fiscal year 2021, down from HKD 180,764,000 in 2020, but turned a profit of HKD 123,434,000 compared to a loss of HKD 27,348,000 in 2020[85]. - The securities brokerage business saw a revenue increase of 94% to HKD 12,799,000 in the fiscal year 2021, up from HKD 6,590,000 in 2020[99]. Investment Strategy - The group’s investment strategy focuses on long-term capital appreciation and dividend income for long-term securities, while short-term investments are evaluated based on market sentiment[25]. - The group confirmed a dividend income of HKD 987,000 from its equity securities during the fiscal year, down from HKD 7,033,000 in 2020[28]. - The group plans to continue exploring new business opportunities to further enhance performance in the trading sector[82]. - The company plans to explore new business and investment opportunities in the current uncertain economic environment[16]. Market Conditions and Challenges - The company faced unprecedented business challenges due to the ongoing COVID-19 pandemic and increased political and economic tensions between China and the US[14]. - The management continues to adopt a prudent and rigorous approach in managing the business amid ongoing market uncertainties due to the COVID-19 pandemic and geopolitical tensions[16]. - The competitive environment in lending, coke product trading, and securities brokerage has put pressure on revenue and profitability, prompting the group to focus on expanding market share[119]. - The group faces financial risks related to interest rates, stock prices, foreign currencies, credit, and liquidity, with management policies in place to mitigate these risks[120]. Asset Management - The total assets of the group as of December 31, 2021, included the financial asset portfolio valued at HKD 26,632,000[33]. - The group's securities investments as of December 31, 2021, included a financial asset portfolio valued at HKD 26,632,000, a significant decrease from HKD 4,073,317,000 in 2020[25]. - The net loss from financial assets measured at fair value through profit or loss was HKD 3,674,811,000, which included realized losses of HKD 3,669,926,000[28]. - The group recognized a net loss of HKD 268,398,000 on its debt instruments due to a decline in market value, compared to a loss of HKD 29,768,000 in the previous year[52]. Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the year[191]. - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2021, which were approved by the board[184]. - The independent non-executive directors have confirmed their independence according to the listing rules[196]. - The company adopts a dual leadership structure, separating the roles of chairman and CEO to enhance governance[200]. Employee and Operational Management - The workforce was reduced to 48 employees from 60 in 2020, with total employee costs amounting to HKD 30,537,000, up from HKD 27,630,000 in the previous year[115]. - The company maintained sufficient financial resources to support ongoing operations, leveraging its liquid assets and credit facilities[107]. - The company has established a clear credit policy and monitoring procedures to assess and manage credit risk effectively[92]. Shareholder Relations - The management expressed gratitude to shareholders, investors, and partners for their continued support during the challenging year[19]. - The company reported a retained profit of HKD 42,953,000 available for distribution to shareholders as of December 31, 2021[152]. - Revenue from the top five customers accounted for approximately 68% of total revenue, with the largest customer contributing about 52%[153]. - The company did not recommend a final dividend for the year ending December 31, 2021, consistent with the previous year[144].

Financial Performance - The company recorded a revenue increase of 127% to HKD 325,476,000 for the first half of 2021, compared to HKD 143,085,000 for the same period in 2020[11]. - The company reported a loss attributable to owners of HKD 196,625,000, a significant decline from a profit of HKD 51,651,000 in the previous year[11]. - The group's revenue for the first half of 2021 increased by 53% to RMB 6,923,244,000 compared to the same period in 2020[24]. - The net loss for the same period increased by 96% to RMB 4,821,626,000[24]. - The company reported a net loss of HKD (196,625,000) for the six months ended June 30, 2021, compared to a profit of HKD 51,651,000 for the same period in 2020, marking a substantial shift in financial performance[96]. - The company's basic loss per share was HKD 0.96 for the first half of 2021, compared to earnings of HKD 0.30 per share in the same period of 2020[75]. Investment Performance - The company experienced a loss of HKD 148,094,000 from securities investments, compared to a profit of HKD 291,996,000 in the same period last year[14]. - The net loss from financial assets at fair value through profit or loss was HKD 152,895,000, primarily due to a decrease in the fair value of the listed equity securities held by the group, including a loss of HKD 173,680,000 from investment in Evergrande Auto[15]. - The group held financial assets at fair value through profit or loss amounting to HKD 3,920,722,000 as of June 30, 2021, generating income of HKD 271,000 in the first half of 2021, a significant decrease from HKD 4,608,000 in the same period of 2020[15]. - The group's investment in Evergrande Auto saw a valuation drop of 82% from HKD 3,861,040,000 to HKD 692,048,000 as of the report date, reflecting significant market concerns[18]. - The group plans to monitor the financial performance of its financial assets closely and may consider selling part or all of its investment in Evergrande Auto depending on market conditions[18]. Debt and Liabilities - The company’s total liabilities were HKD 2,494,658,000 as of June 30, 2021, compared to HKD 2,542,650,000 on December 31, 2020[80]. - The company’s capital-to-debt ratio was approximately 44% as of June 30, 2021, compared to 43% on December 31, 2020[80]. - The total liabilities decreased from HKD 1,611,842,000 as of December 31, 2020, to HKD 1,600,330,000 as of June 30, 2021, indicating a reduction of approximately 0.73%[94]. - The total expected credit loss (with credit impairment) was HKD 414,099,000 as of June 30, 2021[142]. Operational Insights - The company continues to operate in a complex business environment, influenced by global economic recovery and geopolitical tensions[11]. - The management remains cautious in business operations amid uncertainties from new COVID-19 variants and international relations[11]. - The company is focused on long-term capital appreciation and dividend income for its securities investments[12]. - The management is optimistic about benefiting from the recovery of major economies like China, the US, and the UK[11]. - The group is exploring new business opportunities to improve operational performance[64]. Cash Flow and Assets - The net cash used in operating activities for the six months ended June 30, 2021, was HKD (39,645,000), compared to HKD 1,542,996,000 for the same period in 2020, indicating a significant decrease in cash flow from operations[98]. - As of June 30, 2021, total assets amounted to HKD 7,709,429,000, a decrease from HKD 8,000,306,000 as of December 31, 2020, representing a decline of approximately 3.63%[94]. - The company's cash and cash equivalents stood at HKD 2,243,859,000 as of June 30, 2021, slightly decreasing from HKD 2,277,270,000 as of December 31, 2020[165]. - The company’s non-current assets totaled HKD 512,627,000 as of June 30, 2021, an increase from HKD 481,392,000 as of December 31, 2020, representing a growth of about 6.03%[94]. Employee and Operational Costs - The company's employee costs rose to HKD 15,419,000, up from HKD 11,513,000 in the prior year, reflecting a 34.5% increase in personnel expenses[86]. - The total remuneration for directors increased to HKD 4,157,000 for the six months ended June 30, 2021, compared to HKD 3,248,000 for the same period in 2020, reflecting a rise of approximately 27.87%[194]. Shareholder Information - The company issued 3,397,540 shares during the period, increasing the total issued and paid-up shares to 20,385,254 as of June 30, 2021[181]. - No dividends were declared or proposed during the interim period, consistent with the previous year[122]. - The average number of ordinary shares for calculating basic loss per share increased to 20,385,254 shares from 16,987,714 shares in the previous year[125].

Financial Performance - The company recorded a profit attributable to owners of HKD 2,283,187,000 for the fiscal year 2020, compared to a loss of HKD 322,947,000 in 2019, primarily from fair value gains on listed equity securities[12]. - Total comprehensive income attributable to owners was HKD 2,294,579,000, compared to a total comprehensive loss of HKD 276,193,000 in 2019[13]. - The company reported a profit attributable to shareholders of HKD 2,283,187,000, compared to a loss of HKD 322,947,000 in 2019, largely driven by net gains from listed equity securities[19]. - The group reported a cumulative unrealized gain of HKD 3,815,408,000 from its investment in Evergrande Auto as of December 31, 2020[29]. - The confirmed unrealized gain for the year ended December 31, 2020, from Evergrande Auto was HKD 2,996,648,000[29]. - The company reported a retained profit of HKD 80,825,000 available for distribution to shareholders as of December 31, 2020[158]. Revenue and Income - Revenue decreased by 67% to HKD 256,347,000 in 2020, down from HKD 779,962,000 in 2019, mainly due to reduced sales in trading and interest income from lending[12]. - The group's trade business revenue decreased by 99% to HKD 4,062,000, compared to HKD 396,108,000 in the previous year, resulting in a loss of HKD 165,000[110]. - The lending business recorded a revenue decrease of 34% to HKD 180,764,000, down from HKD 273,977,000, with a loss of HKD 27,348,000 compared to a profit of HKD 128,293,000 in the previous year[111]. - The company's securities brokerage business revenue decreased by 28% to HKD 6,590,000, while profit from this segment fell by 42% to HKD 3,671,000 due to market volatility caused by COVID-19[115]. Investments - The company's securities investments included listed equity securities valued at HKD 4,073,317,000, an increase from HKD 1,454,098,000 in 2019, and debt securities valued at HKD 401,813,000, down from HKD 957,361,000[21]. - Total income from securities investments was HKD 64,931,000, compared to HKD 100,664,000 in 2019, while the profit from these investments was HKD 2,939,628,000, recovering from a loss of HKD 336,341,000 in the previous year[21]. - The net income from financial assets measured at fair value through profit or loss was HKD 2,905,676,000, significantly improving from a loss of HKD 436,888,000 in 2019[23]. - The fair value increase of the company's investment in Evergrande Auto was HKD 2,996,648,000, compared to a decrease of HKD 338,008,000 in the previous year[24]. - The group’s total financial assets at fair value through profit or loss amounted to HKD 4,073,317,000, with a total investment cost of HKD 1,093,845,000[29]. Business Strategy and Future Outlook - The company is considering acquiring the entire equity interest of a target company engaged in the insurance business in Hong Kong to diversify its business and revenue base[14]. - The management anticipates economic recovery signs as the mainland's pandemic stabilizes, with GDP growth in China and favorable conditions for Hong Kong to benefit from sustainable economic growth[14]. - The group is exploring new business opportunities to improve operational performance amid challenging market conditions[110]. - The group aims to enhance its investment strategy by focusing on the future prospects of the invested companies and their financial performance[30]. Financial Position and Liquidity - The company held current assets of HKD 8,000,306,000 at year-end, up from HKD 4,185,622,000 in 2019, indicating improved liquidity[118]. - The current ratio improved to approximately 5.0 from 2.3 in the previous year, reflecting a stronger financial position[118]. - The capital debt ratio decreased to approximately 43% from 54% in 2019, primarily due to an increase in equity attributable to owners[123]. - The group maintained a cautious approach to granting new loans, leading to a reduction in the size of the loan portfolio[112]. Risks and Challenges - The group faced significant business risks due to global economic conditions and international financial markets, which could impact its financial performance[130]. - The group operates in a highly competitive environment in its lending, electronic components trading, and securities brokerage businesses, which puts pressure on revenue and profitability[131]. - The net impairment provision for loans increased to HKD 373,254,000, up from HKD 154,089,000 in the previous year, reflecting the impact of COVID-19 on the economic situation[111]. Corporate Governance - The board of directors includes independent non-executive directors with extensive experience in finance and management[143][144][147]. - The company has complied with all applicable code provisions of the Corporate Governance Code[188]. - The board is responsible for monitoring financial performance and ensuring effective supervision of management[191]. - Independent non-executive directors have confirmed their independence according to the listing rules, ensuring proper governance practices[192]. Employee and Operational Information - The group had a total employee cost of HKD 27,630,000 for the year, an increase from HKD 24,975,000 in 2019, with the number of employees rising to 60 from 46[128]. - The company has a strong employee benefits program, including mandatory provident fund plans and additional welfare benefits[128]. - The company has maintained a public float of at least 25% of its issued shares[183].

[Cover and Contents](index=1&type=section&id=Cover) This report is the 2020 interim report for China Strategic Holdings Limited (Stock Code: 235) for the six months ended June 30, 2020 - This report is the 2020 interim report for China Strategic Holdings Limited[2](index=2&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section provides essential company details, including board members, committee compositions, company secretary, registered office, principal bankers, legal advisors, auditors, and share registrars - The company's Chairman is Dr Ko Ching Fai, and the Chief Executive Officer is Mr So Ka Lok[7](index=7&type=chunk) - The company's auditor is Deloitte Touche Tohmatsu[7](index=7&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's business performance, financial position, and future outlook for the first half of 2020, highlighting a return to profitability driven by fair value gains on securities investments despite challenges, alongside robust liquidity and a stable capital structure [Business Review](index=6&type=section&id=Business%20Review) In H1 2020, the Group returned to a profit of **HKD 51.65 million** from a loss in the prior period, primarily due to fair value gains on listed equity securities, despite a **76% revenue decline** to **HKD 143 million** from shrinking trading and money lending businesses Key Performance Indicators for H1 2020 | Indicator | For the six months ended June 30, 2020 | For the six months ended June 30, 2019 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 143,085,000 HKD | 604,991,000 HKD | -76% | | **Profit (Loss) attributable to owners of the Company** | 51,651,000 HKD | (139,502,000) HKD | Turned loss into profit | | **Earnings (Loss) per share** | 0.30 HK cents | (0.82) HK cents | Turned loss into profit | [Investment in Securities](index=6&type=section&id=Investment%20in%20Securities) Securities investment was the core profit driver, generating **HKD 37.19 million** in revenue and **HKD 292 million** in profit, reversing prior-year losses, with a portfolio comprising **HKD 1.585 billion** in FVTPL equity securities and **HKD 593 million** in FVTOCI debt instruments Securities Investment Business Performance | Item | For the six months ended June 30, 2020 | For the six months ended June 30, 2019 | | :--- | :--- | :--- | | **Revenue** | 37,190,000 HKD | 50,367,000 HKD | | **Profit (Loss)** | 291,996,000 HKD | (253,713,000) HKD | - The FVTPL portfolio recorded a net gain of **HKD 250 million**, primarily from a **HKD 349 million** fair value increase in the investment in Evergrande Health Industry Group Limited (Stock Code: 708), which constituted approximately **26%** of the Group's total assets at period-end[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - The FVTOCI debt instrument portfolio generated **HKD 32.582 million** in interest income but recorded a net fair value loss of **HKD 55.502 million** due to negative market sentiment[42](index=42&type=chunk) [Trading](index=15&type=section&id=Trading) The electronic components trading business was severely impacted by US-China trade disputes and European economic slowdown, leading to a temporary halt in commodity trading, with revenue plummeting **99%** to **HKD 3.43 million** and profit decreasing **95%** to **HKD 0.113 million** Trading Business Performance | Indicator | For the six months ended June 30, 2020 | For the six months ended June 30, 2019 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 3,430,000 HKD | 392,379,000 HKD | -99% | | **Profit** | 113,000 HKD | 2,255,000 HKD | -95% | [Money Lending](index=15&type=section&id=Money%20Lending) Money lending revenue decreased **37%** to **HKD 99.116 million** due to a smaller loan portfolio, resulting in a **HKD 144 million** loss from a prior-year profit, driven by a significant increase in impairment provisions to **HKD 241 million** amidst deteriorating economic conditions Money Lending Business Performance | Indicator | For the six months ended June 30, 2020 | For the six months ended June 30, 2019 | | :--- | :--- | :--- | | **Revenue** | 99,116,000 HKD | 156,357,000 HKD | | **(Loss) Profit** | (143,994,000) HKD | 140,475,000 HKD | | **Net impairment provisions** | 241,265,000 HKD | 14,471,000 HKD | - As at June 30, 2020, **99%** of the loan portfolio comprised secured loans, with personal loans accounting for **72.56%** and corporate loans for **27.44%**[51](index=51&type=chunk) [Securities Brokerage](index=16&type=section&id=Securities%20Brokerage) Securities brokerage revenue decreased **43%** to **HKD 3.349 million** and profit declined **57%** to **HKD 1.937 million**, impacted by Hong Kong stock market volatility and negative investor sentiment due to the COVID-19 pandemic Securities Brokerage Business Performance | Indicator | For the six months ended June 30, 2020 | For the six months ended June 30, 2019 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 3,349,000 HKD | 5,888,000 HKD | -43% | | **Profit** | 1,937,000 HKD | 4,457,000 HKD | -57% | [Overall Results](index=16&type=section&id=Overall%20Results) The Group reported a profit attributable to owners of **HKD 51.651 million** in H1 2020, reversing a **HKD 139.5 million** loss in the prior period, primarily driven by **HKD 292 million** in securities investment gains which offset a **HKD 144 million** loss from money lending and reduced profits from trading and securities brokerage - The Group's profit was primarily due to overall gains of **HKD 292 million** from securities investments, partially offset by a **HKD 144 million** loss from the money lending business[54](index=54&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) The Group maintained a robust financial position with ample liquidity, as bank balances and cash significantly increased to **HKD 1.64 billion** due to debt instrument sales and loan recoveries, resulting in a liquidity ratio of **2.5** and a stable capital gearing ratio of approximately **55%** Key Financial Indicators | Indicator | As at June 30, 2020 | As at December 31, 2019 | | :--- | :--- | :--- | | **Bank balances and cash** | 1,641,774,000 HKD | 135,793,000 HKD | | **Current ratio** | 2.5 | 2.3 | | **Capital gearing ratio** | 55% | 54% | - During the period, the Group redeemed **HKD 50 million** in principal amount of the 2016 notes[58](index=58&type=chunk) [Prospects](index=18&type=section&id=Prospects) Management anticipates a challenging market environment due to ongoing COVID-19 and escalating US-China tensions, maintaining cautious optimism for short-term global and local economic conditions while continuing prudent business management and seeking new investment opportunities - Facing ongoing COVID-19 and US-China tensions, the Group maintains a cautious optimistic outlook for the short-term and will continue to adopt a prudent management approach[67](index=67&type=chunk) [Interim Financial Statements](index=19&type=section&id=Interim%20Financial%20Statements) This section presents the auditor-reviewed interim financial information, including the condensed consolidated statements of profit or loss and other comprehensive income, financial position, changes in equity, and cash flows, reflecting the Group's financial performance and position as at June 30, 2020 [Review Report on Interim Financial Information](index=19&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) Deloitte Touche Tohmatsu reviewed the condensed consolidated financial statements in accordance with Hong Kong Standard on Review Engagements, concluding no material matters suggesting non-compliance with HKAS 34 - Auditor Deloitte issued an unmodified review conclusion on the interim financial statements[69](index=69&type=chunk)[71](index=71&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=20&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2020, the Group's revenue was **HKD 143 million**, a **76%** decrease year-on-year, yet it returned to profitability with a net profit attributable to owners of **HKD 51.651 million** due to **HKD 250 million** net fair value gains on financial assets Summary of Statement of Profit or Loss (For the six months ended June 30) | Indicator (HKD Thousands) | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | **Revenue** | 143,085 | 604,991 | | **Profit (Loss) before tax** | 63,993 | (218,789) | | **Profit (Loss) for the period attributable to owners of the Company** | 51,651 | (139,502) | | **Basic earnings (loss) per share** | 0.30 HK cents | (0.82) HK cents | [Condensed Consolidated Statement of Financial Position](index=21&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As at June 30, 2020, the Group maintained a stable asset-liability structure with total assets of **HKD 5.235 billion**, total liabilities of **HKD 1.863 billion**, and total equity of **HKD 3.372 billion**, while net current assets increased from **HKD 2.36 billion** to **HKD 2.74 billion** Summary of Statement of Financial Position | Indicator (HKD Thousands) | As at June 30, 2020 (Unaudited) | As at December 31, 2019 (Audited) | | :--- | :--- | :--- | | **Total non-current assets** | 630,653 | 1,009,669 | | **Total current assets** | 4,604,807 | 4,185,622 | | **Total current liabilities** | 1,859,912 | 1,825,502 | | **Net assets (Total equity)** | 3,372,150 | 3,369,789 | [Condensed Consolidated Statement of Changes in Equity](index=22&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As at June 30, 2020, total shareholders' equity slightly increased to **HKD 3.372 billion**, with the period's profit of **HKD 51.651 million** boosting retained earnings, partially offset by a **HKD 49.29 million** loss from fair value changes in debt instruments within the investment revaluation reserve - Total shareholders' equity increased from **HKD 3.370 billion** at the beginning of the period to **HKD 3.372 billion** at period-end, a net increase of **HKD 2.361 million**[77](index=77&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=23&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2020, the Group recorded a significant net increase of **HKD 1.506 billion** in cash and cash equivalents, driven by a strong **HKD 1.547 billion** net cash inflow from operating activities, primarily from reduced loan receivables Summary of Statement of Cash Flows (For the six months ended June 30) | Indicator (HKD Thousands) | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | **Net cash from (used in) operating activities** | 1,546,796 | (69,907) | | **Net cash from investing activities** | 342,961 | 111,648 | | **Net cash used in financing activities** | (383,776) | (82,138) | | **Net increase (decrease) in cash and cash equivalents** | 1,505,981 | (40,397) | [Notes to the Condensed Consolidated Financial Statements](index=24&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and supplementary information for the interim financial statements, covering the basis of preparation, significant accounting policies, revenue and segment information, details of balance sheet and profit or loss items, fair value of financial instruments, and related party transactions [Notes 1-4: Basis of Preparation, Accounting Policies, Revenue & Segment Information](index=24&type=section&id=Notes%201-4:%20Basis%20of%20Preparation,%20Accounting%20Policies,%20Revenue%20%26%20Segment%20Information) This section outlines the financial statements' preparation basis in compliance with HKAS 34 and significant accounting policies, with Note 3 detailing revenue composition, primarily interest income, and Note 4 disclosing segment performance, highlighting investment in securities as the sole profit source - The COVID-19 pandemic negatively impacted the Group's money lending, securities investment, securities brokerage, and trading businesses[82](index=82&type=chunk) Segment Results by Business Segment (For the six months ended June 30, 2020) | Business Segment (HKD Thousands) | Segment Revenue | Segment Results | | :--- | :--- | :--- | | **Investment in Securities** | 37,190 | 291,996 | | **Trading** | 3,430 | 113 | | **Money Lending** | 99,116 | (143,994) | | **Securities Brokerage** | 3,349 | 1,937 | [Notes 13-23: Details on Balance Sheet Items](index=32&type=section&id=Notes%2013-23:%20Details%20on%20Balance%20Sheet%20Items) This section details the composition and changes of key balance sheet items, including a significant increase in impairment provisions for loan receivables (Note 15), FVTPL financial assets primarily comprising Hong Kong listed equity securities (Note 16), and details on the 2016 and 2018 notes, including redemptions (Note 22) - Impairment provisions for loan receivables significantly increased from **HKD 154 million** at the beginning of the period to **HKD 395 million** at period-end, reflecting elevated credit risk[118](index=118&type=chunk)[122](index=122&type=chunk) - During the period, the Group redeemed **HKD 50 million** in principal amount of the 2016 notes; at period-end, the outstanding principal amounts for the 2016 and 2018 notes were **HKD 1 billion** and **HKD 200 million**, respectively[140](index=140&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) [Notes 24-26: Other Financial Notes](index=41&type=section&id=Notes%2024-26:%20Other%20Financial%20Notes) This section covers asset pledges, fair value measurement of financial instruments, and related party disclosures, showing significant debt and equity securities pledged as collateral (Note 24), all fair-valued financial assets measured using Level 1 active market quotes (Note 25), and key management personnel compensation (Note 26) - As at June 30, 2020, the Group pledged **HKD 593 million** in debt securities and **HKD 1.549 billion** in equity securities as collateral for borrowings[147](index=147&type=chunk) - All financial assets measured at fair value (listed equity and debt securities) are measured using active market quotes (Level 1 fair value hierarchy)[153](index=153&type=chunk) [Other Information](index=44&type=section&id=Other%20Information) This section provides information on dividend policy, directors' and major shareholders' interests, share option schemes, corporate governance, and the review of interim financial information, noting the board's decision not to declare an interim dividend and the company's compliance with corporate governance codes [Dividends and Shareholder Information](index=44&type=section&id=Dividends%20and%20Shareholder%20Information) The Board resolved not to declare an interim dividend for the six months ended June 30, 2020, and major shareholder Mr Sun Chu Hung holds approximately **9.89%** of the company's shares through Pioneer Success Development Limited - The Board resolved not to declare an interim dividend for the six months ended June 30, 2020[159](index=159&type=chunk) - Major shareholder Mr Sun Chu Hung is deemed to be interested in **1,680,000,000** shares, representing approximately **9.89%** of the company's issued shares[168](index=168&type=chunk)[169](index=169&type=chunk) [Corporate Governance](index=45&type=section&id=Corporate%20Governance) The company complied with all applicable code provisions of the Corporate Governance Code during the reporting period, with directors confirming adherence to the Model Code for Securities Transactions by Directors, and the interim financial statements reviewed by the Audit Committee and Deloitte - The company complied with all applicable code provisions of the Corporate Governance Code[171](index=171&type=chunk) - The interim financial statements were reviewed by the Audit Committee and auditor Deloitte[175](index=175&type=chunk)

Financial Performance - The company's revenue decreased by 47% to HKD 779,962,000 compared to HKD 1,477,776,000 in the previous year[11] - The loss attributable to the company's owners was HKD 322,947,000, a significant decline from a profit of HKD 708,790,000 in the previous year[11] - Basic loss per share was HKD 1.90, compared to a basic earnings per share of HKD 4.17 in the previous year[11] - Sales from the trading business dropped by 63% to HKD 396,108,000 from HKD 1,072,587,000 in the previous year[12] - The overall loss from securities investments was HKD 336,341,000, compared to a profit of HKD 735,422,000 in the previous year[12] - The company recorded a total comprehensive expense of HKD 276,193,000, down from a total comprehensive income of HKD 585,625,000 in the previous year[12] - The company continues to generate profits from its lending and securities brokerage businesses, with profits of HKD 128,293,000 and HKD 6,292,000 respectively[12] Investment Performance - As of December 31, 2019, the group's securities investments included a financial asset portfolio valued at HKD 1,454,098,000, down from HKD 2,092,411,000 in 2018, representing a decrease of approximately 30.5%[21] - The group recorded total income from securities investments of HKD 100,664,000 in 2019, a decline of 17.5% compared to HKD 122,084,000 in 2018, alongside a net loss of HKD 336,341,000 compared to a profit of HKD 735,422,000 in the previous year[21] - The financial asset portfolio generated income of HKD 27,319,000, an increase of 29.5% from HKD 21,103,000 in 2018, primarily from dividends of HKD 22,491,000 and interest income of HKD 4,828,000[24] - The net loss from financial assets at fair value through profit or loss was HKD 436,888,000, significantly down from a net gain of HKD 619,093,000 in 2018, largely due to market volatility affecting the fair value of listed equity securities[24][25] - The group's investment in Evergrande Health accounted for 71.39% of the total fair value of the financial asset portfolio, with a carrying value of HKD 1,038,072,000, representing about 20% of the group's total assets[28] - The group remains optimistic about the long-term prospects of its investment in Evergrande Health despite anticipated losses due to ongoing investments in new energy vehicle development[26] Business Outlook and Strategy - The management anticipates a challenging business outlook for 2020 due to the impact of the COVID-19 pandemic on the global economy[13] - The company plans to adopt a cautious approach in managing its business and seizing opportunities to create value for shareholders[13] - The group's investment strategy includes close monitoring of financial performance and future prospects of invested companies[31] - The group plans to continue its focus on innovative healthcare services and the development of new energy vehicles[34] - The group aims to leverage financial technology to enhance service quality and capitalize on emerging market opportunities[34] Revenue and Profitability Trends - The group recorded a loss of HKD 48,673,000 during the six-month period, reflecting a 57% decrease in revenue compared to the same period in 2018[43] - The revenue from property leasing and development services decreased by 19% to HKD 1,238,031,000 for the six months ended September 30, 2019, compared to the same period in 2018[46] - The group's trading business revenue decreased by approximately 63% to HKD 396,108,000 (2018: HKD 1,072,587,000), with profit dropping over 74% to HKD 2,288,000 (2018: HKD 8,740,000) due to trade disputes between the US and China and overall economic slowdown in Europe[63] Financial Position - The group's total liabilities amounted to HKD 1,825,502,000, down from HKD 2,416,401,000 in the previous year, leading to a capital-to-debt ratio of approximately 54%[74] - The group's current assets were HKD 4,185,622,000, a decrease from HKD 4,987,044,000 in the previous year, with a current ratio of about 2.3[69] - The group's equity attributable to owners decreased to HKD 3,369,789,000 from HKD 3,645,982,000, reflecting the impact of the loss incurred during the year[70] Governance and Compliance - The company has complied with relevant laws and regulations, with no significant violations reported during the review period[88] - The company has maintained a consistent approach to governance and compliance, ensuring all directors are covered by appropriate liability insurance[120] - The company has established a policy for handling and disclosing inside information to prevent any unfair advantage in securities trading[189] - The company has engaged an independent professional firm to assess its risk management and internal control systems, with recommendations for improvements provided[188] Human Resources - The group had 46 employees as of December 31, 2019, down from 55 in 2018, with total employee costs amounting to HKD 24,975,000, a decrease from HKD 31,278,000 in 2018[82] - The remuneration policy is based on employee capabilities, performance, experience, and current market conditions[136] - The company encourages continuous professional development for all directors to enhance their knowledge and skills[154] Shareholder Information - The company reported a retained profit of HKD 66,159,000 available for distribution to shareholders as of December 31, 2019[114] - Revenue from the top five customers accounted for approximately 50% of total revenue, with the largest customer contributing about 18%[115] - The company did not recommend a final dividend for the year ending December 31, 2019, consistent with the previous year[106] Risk Factors - The group faces significant business risks due to the global economic conditions and international financial markets, which are beyond its control and can significantly impact its financial performance[83] - Financial risks related to interest rates, stock prices, foreign currencies, credit, and liquidity are present in the group's daily operations[85] Board and Management Structure - The company’s board consists of a mix of executive and independent non-executive directors, ensuring a balance of power and oversight[158] - The chairman and CEO roles are separated, with Dr. Ko serving as chairman and Mr. Su as CEO, to enhance governance[159] - The company has established a share option scheme as detailed in the financial statements[130]

Financial Performance - The group's revenue decreased by 46% to HKD 604,991,000 for the six months ended June 30, 2019, compared to HKD 1,126,865,000 for the same period in 2018[11]. - The group recorded a loss attributable to owners of the company of HKD 139,502,000, compared to a profit of HKD 437,199,000 in the previous period[11]. - The loss per share for the interim period was HKD 0.82, down from a profit of HKD 2.57 per share in the same period last year[11]. - The overall investment securities business recorded a loss of HKD 253,713,000, compared to a profit of HKD 461,400,000 in the same period last year[13]. - The group reported net losses of HKD 304,339,000 from financial assets measured at fair value through profit or loss, compared to net gains of HKD 405,588,000 in the same period last year[15]. - The group recorded a total unrealized loss of HKD 298,834,000 for the six-month period ending June 30, 2019[21]. - The company reported a total loss for the period of HKD 139,502,000, compared to a loss of HKD 218,789,000 before tax[138]. - The company’s total comprehensive income for the period was HKD (91,198,000), a significant decline from HKD 321,799,000 in the previous year[85]. Investment Securities - The investment securities business held financial assets valued at HKD 1,784,912,000 as of June 30, 2019, down from HKD 2,092,411,000 as of December 31, 2018[13]. - The group generated income of HKD 50,367,000 from its investment securities business, down from HKD 57,700,000 in the previous year[13]. - Dividend income from equity securities amounted to HKD 11,781,000, up from HKD 5,696,000 in the previous year[15]. - The fair value loss of the group's listed equity securities portfolio amounted to HKD 245,824,000 during the interim period, compared to a fair value gain of HKD 528,776,000 in the same period last year[16]. - The group's financial assets measured at fair value through profit or loss amounted to HKD 1,784,912,000 as of June 30, 2019, down from HKD 2,092,411,000 as of December 31, 2018[169]. Revenue Segments - Revenue from the logistics and warehousing segment increased by 53% to RMB 738,574,000, with profit for the period recorded at RMB 188,147,000[30]. - The healthcare management segment saw a revenue increase of 132% to RMB 2,648,402,000, despite a loss of RMB 1,984,188,000 for the period[33]. - The infrastructure segment reported a 32% revenue increase to RMB 333,771,000, with profit for the period at RMB 474,970,000[33]. - The trading of coke products generated revenue of HKD 388,604,000, down from HKD 587,296,000 in the previous year, representing a decline of 33.8%[134]. Assets and Liabilities - Current assets at the end of the period were HKD 4,565,844,000, down from HKD 4,987,044,000 at the end of 2018, with a current ratio of approximately 5.4[59]. - The capital debt ratio was approximately 66%, with total liabilities of HKD 2,349,162,000 and equity attributable to owners of HKD 3,554,784,000[64]. - Non-current assets increased to HKD 1,338,102,000 as of June 30, 2019, up from HKD 1,075,339,000 at the end of 2018, representing a growth of 24.4%[83]. - The company's total liabilities increased slightly to HKD 2,349,162,000 from HKD 2,416,401,000, indicating a decrease of 2.8%[83]. - The net asset value of the company was HKD 3,554,784,000 as of June 30, 2019, down from HKD 3,645,982,000 at the end of 2018, a decrease of 2.5%[83]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2019, was HKD (69,907) thousand, compared to HKD (449,036) thousand for the same period in 2018, indicating a significant improvement[89]. - The net cash generated from financing activities was HKD (82,138) thousand, a decrease from HKD 268,905 thousand in the previous year, primarily due to increased loan repayments[89]. - Cash and cash equivalents decreased by HKD 40,397 thousand, compared to a decrease of HKD 106,610 thousand in the prior year, reflecting better cash management[89]. - The company recognized interest income of HKD 438 thousand, an increase from HKD 326 thousand in the previous year, indicating improved investment returns[89]. - The effective interest expense for the period was HKD 72,481,000, a decrease of 46.6% compared to HKD 135,910,000 in the previous year[194]. Strategic Focus and Future Outlook - The company plans to continue focusing on high-quality investments in Europe and Asia, aiming to provide stable rental income and investment returns[30]. - The company is committed to enhancing its market competitiveness through strategic transformation and optimizing its business model[27]. - The group aims to maintain a balanced asset portfolio strategy between recurring income sources and growth opportunities[73]. - The group plans to closely monitor the financial performance of its financial assets portfolio and make investment decisions based on internal assessments and publicly available information[26]. - The company anticipates further growth driven by new market opportunities and stable rental income sources[33]. Accounting Standards and Compliance - The company has adopted new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting and asset management strategies[95]. - The application of HKFRS 16 has led to changes in accounting policies, particularly in how lease liabilities and right-of-use assets are recognized[96]. - The total liabilities related to lease obligations recognized under HKFRS 16 amounted to HKD 15,926,000, with current liabilities at HKD 7,820,000 and non-current liabilities at HKD 8,106,000[126].

Financial Performance - The company reported a significant increase in profit attributable to shareholders, rising to HKD 582,597,000, a 462% increase compared to the previous year[9]. - Total revenue for the year increased by 11% to HKD 1,477,776,000, up from HKD 1,337,246,000 in 2017[9]. - The profit from the company's securities investment business was HKD 735,422,000, compared to HKD 165,454,000 in the previous year[10]. - The lending business generated a profit of HKD 266,829,000, an increase from HKD 186,184,000 in 2017[10]. - Basic earnings per share rose to HKD 4.17, compared to HKD 0.74 in the previous year[10]. - The group recorded income of HKD 122,084,000 and profit of HKD 735,422,000 for the year, compared to HKD 88,110,000 and HKD 165,454,000 in 2017, respectively[19]. - The group reported a total revenue of HKD 1,496,702,000 for the year ended December 31, 2018, representing a decrease of 7% compared to the previous year[45]. - The group recorded a profit attributable to owners of the company of HKD 708,790,000 for the year ended December 31, 2018, compared to HKD 126,193,000 in 2017, representing a significant increase[63]. Business Segments - The trading business performance remained stable, and the company will seek new business opportunities to maintain competitiveness[11]. - The securities brokerage business is progressing well, and the company will continue to invest financial resources in this area[11]. - Revenue from the agricultural wholesale market increased by 14% to RMB 1,128,654,000 for the year ended December 31, 2018, with losses increasing by 174% to RMB 348,601,000 compared to 2017[36]. - The asset management business saw an 80% increase in revenue to HKD 839,136,000 for the six months ended September 30, 2018, with a profit of HKD 40,832,000 recorded[36]. - The healthcare segment's revenue increased by 136% to RMB 3,133,018,000, with a loss of RMB 1,428,378,000 reported for the year[40]. - The property investment and development segment reported a 5% revenue increase to HKD 1,536,451,000, with a profit increase of 53% to HKD 2,575,489,000[40]. Investment Strategy - The company aims to balance recurring income sources and growth opportunities while enhancing operational efficiency and financial performance[12]. - The group plans to closely monitor the financial performance of its investment portfolio and make investment decisions based on internal assessments and publicly available information[29]. - The group's strategy includes focusing on capital appreciation and dividend income for long-term investments, while trading gains are prioritized for short-term holdings[19]. - The group aims to enhance risk control and optimize asset-liability structure to pursue high-quality development[33]. - The group plans to expand its lending business to secure stable interest income for future growth[37]. Risk Management - The geopolitical risks and uncertainties in global markets are being monitored, with a cautious approach to managing the securities portfolio[11]. - The company has integrated risk management as a core part of its business activities, implementing standardized procedures to identify, assess, and mitigate risks[173]. - An independent professional firm was engaged to evaluate the company's risk management and internal control systems, providing recommendations for improvement[176]. - The board of directors reviewed the internal control assessment report for the year ended December 31, 2018, and found no significant weaknesses in the internal control and risk management systems[176]. Corporate Governance - The company aims to achieve a high level of corporate governance to benefit shareholders[138]. - The company has complied with all applicable provisions of the Corporate Governance Code as of December 31, 2018, except for the deviation regarding the roles of Chairman and CEO[139]. - The board consists of seven members, including one non-executive director, three executive directors, and three independent non-executive directors, ensuring a diverse skill set and experience[145]. - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2018, which were audited by Deloitte[132]. - The company has established a webpage to enhance communication with stakeholders, where annual reports and announcements are published[182]. Environmental and Social Responsibility - The company aims for sustainable development through its environmental, social, and governance (ESG) strategies[187]. - The company generated a total greenhouse gas emission of 47,841 kg CO2e during the year[193]. - The total energy consumption per employee was 1,149 kWh, resulting in 908 kg CO2e emissions[197]. - The company promotes recycling initiatives for plastic bottles, paper, and ink cartridges[200]. - The company aims to minimize waste generation by advocating for double-sided printing and electronic documents[200].