Environmental Impact - The company reported a total greenhouse gas emissions of 67.16 tons of CO2 equivalent for the fiscal year 2023, an increase from 58.44 tons in 2022, reflecting a 14.8% rise [18]. - The nitrogen oxides (NOx) emissions decreased to 1.13 kg in 2023 from 1.28 kg in 2022, showing a reduction of 11.7% [15]. - The company maintained a total harmless waste density of 0.01 tons per employee for both fiscal years 2023 and 2022, indicating consistent waste management practices [22]. - The total amount of paper waste generated was 0.50 tons in 2023, slightly up from 0.48 tons in 2022, representing a 4.2% increase [23]. - The company aims to reduce total harmless waste density by 2025, using the baseline of 0.01 tons per employee recorded in the fiscal year 2021 [22]. - The company has implemented measures to encourage recycling of office waste, including ink cartridges and electronic equipment, to minimize environmental impact [21]. - The company’s direct greenhouse gas emissions (Scope 1) increased to 28.65 tons of CO2 equivalent in 2023 from 20.97 tons in 2022, marking a 36.5% increase [18]. - The company’s indirect greenhouse gas emissions (Scope 2) rose to 38.51 tons of CO2 equivalent in 2023 from 37.47 tons in 2022, a 2.8% increase [18]. - The total greenhouse gas emissions intensity increased from 1.17 tons of CO2 equivalent per employee in 2022 to 1.20 tons in 2023, with a long-term goal to reduce this intensity by the fiscal year ending December 31, 2025 [38]. - The company encourages employees to use public transportation to reduce carbon emissions [17]. Financial Performance - The group's revenue decreased by 78% to HKD 71,886,000 for the fiscal year ending December 31, 2023, compared to HKD 323,579,000 in 2022, primarily due to reduced interest income from lending activities and a temporary halt in commodity trading with European clients [30]. - The group reported a profit attributable to owners of the company of HKD 26,788,000 for the fiscal year, a turnaround from a loss of HKD 189,249,000 in 2022, mainly due to a reversal of impairment losses on receivables amounting to HKD 10,263,000 compared to an impairment of HKD 209,397,000 last year [30]. - The group's securities investments included a portfolio valued at HKD 9,912,000 as of December 31, 2023, down from HKD 17,033,000 in 2022, with income from this portfolio recorded at HKD 152,000, a decrease from HKD 540,000 in the previous year [32]. - The group experienced a net loss of HKD 7,121,000 from its financial assets measured at fair value through profit or loss during the fiscal year, compared to a net loss of HKD 8,086,000 in 2022 [35]. - The group's debt instruments measured at fair value through other comprehensive income amounted to HKD 4,418,000 as of December 31, 2023, with no income generated from this portfolio during the fiscal year [36]. - The company reported a net loss of HKD 17,659,000 in fair value of debt instruments for the year, an improvement from a loss of HKD 41,883,000 in 2022 [78]. - The total comprehensive income for the year ended December 31, 2023, was HKD 26,788 thousand, with a net loss on debt instruments measured at fair value of HKD (17,659) thousand [150]. - The company’s accumulated losses increased to HKD (1,086,741) thousand as of December 31, 2023 [150]. - Basic earnings per share were HKD 0.13, compared to a loss per share of HKD 0.93 in 2022 [198]. - The total comprehensive income attributable to owners was HKD 20,591,000, compared to a total comprehensive loss of HKD 223,831,000 in the previous year, which included a net fair value loss on debt securities of HKD 17,659,000 [199]. Employee and Training Metrics - In the fiscal year 2023, the percentage of male employees increased to 22% from 4% in 2022, while female employees rose to 24% from 12% [55]. - The age group of 41 to 50 years saw a significant increase in employment, with 48% in 2023 compared to 17% in 2022 [55]. - The average training hours per employee for males was 8.75 hours in 2023, up from 6.92 hours in 2022, while for females it was 3.54 hours, an increase from 5.16 hours [61]. - The percentage of trained senior management employees was 58% in 2023, compared to 61% in 2022, while other employees trained dropped to 12% from 15% [61]. - The percentage of trained employees is calculated by dividing the total number of trained employees during the reporting period by the total number of employees at the end of the reporting period [92]. - The average training hours by category are calculated by dividing the total training hours for specific category employees during the reporting period by the number of employees in that specific category at the end of the reporting period [93]. Compliance and Ethical Standards - The company emphasizes ethical standards and compliance with laws, providing a total of 12 hours of anti-corruption training for directors and employees in 2023 [73]. - The group has a zero-tolerance policy towards corruption, bribery, extortion, fraud, and money laundering, with disciplinary actions for violations including termination of employment [101]. - The group has implemented policies to ensure financial integrity and compliance with anti-money laundering and counter-terrorist financing laws [102]. - The company has implemented a structured supplier evaluation process focusing on quality, environmental performance, and ethical standards [65]. - The group has not found any violations of child labor and forced labor laws during the fiscal year 2023 [94]. - There were no significant violations of health and safety laws reported during the fiscal year 2023, nor any product recalls due to safety concerns [67]. Business Strategy and Outlook - The group adopted a cautious and prudent approach to manage its business amid geopolitical tensions, high inflation, and market uncertainties, reflecting a challenging operating environment [30]. - The group aims to achieve a stable return for its shareholders by continuously developing its business model to reduce operational risks [45]. - The company maintains a cautious optimism regarding its medium to long-term business outlook, despite ongoing geopolitical tensions and market uncertainties [200]. - Management plans to continue a prudent approach in managing the business and seeks new business and investment opportunities that are expected to bring long-term benefits [200]. - The company is evaluating investment opportunities in target companies within the financial sector to expand its business scale and diversify its revenue base [200]. Asset and Liability Management - Non-current assets increased significantly to HKD 183,432,000 from HKD 50,435,000, representing a growth of 264% year-over-year [117]. - Current assets decreased slightly to HKD 2,094,897,000 from HKD 2,189,628,000, a decline of approximately 4.3% [117]. - Cash and cash equivalents rose to HKD 1,312,947,000, up from HKD 1,005,561,000, marking an increase of 30.5% [117]. - Total liabilities decreased from HKD 48,039,000 to HKD 40,818,000, a reduction of about 15% [117]. - The net value of current assets was HKD 2,054,079,000, down from HKD 2,141,589,000, reflecting a decrease of approximately 4.1% [117]. - The total assets minus current liabilities increased to HKD 2,237,511,000 from HKD 2,192,024,000, an increase of about 2.1% [117]. - The company reported a significant increase in deferred tax assets to HKD 6,276,000 from HKD 1,315,000, a growth of 376% [117]. - Trade and other receivables decreased to HKD 127,183,000 from HKD 140,638,000, a decline of approximately 9.6% [117]. - The company has maintained goodwill at HKD 4,000,000, unchanged from the previous year [117]. - The company has recognized a new financial asset at fair value through other comprehensive income amounting to HKD 4,418,000, which was not present in the previous year [117].

Financial Performance - The company reported a revenue decrease of 78% to HKD 71,886,000 in the fiscal year 2023, down from HKD 323,579,000 in 2022, primarily due to reduced interest income from lending activities and a temporary halt in commodity trading with European clients[4]. - The company achieved a profit attributable to shareholders of HKD 26,788,000 in fiscal year 2023, compared to a loss of HKD 189,249,000 in 2022, mainly due to a reversal of impairment losses on receivables amounting to HKD 10,263,000[4]. - Total revenue for the year ended December 31, 2023, was HKD 71,886,000, a significant decrease from HKD 323,579,000 in 2022, representing a decline of approximately 77.8%[43]. - The company reported a profit of HKD 26,788,000 for the year ended December 31, 2023, a significant recovery from a loss of HKD 189,249,000 in the previous year[73]. - Basic earnings per share for the year were HKD 0.13, compared to a loss per share of HKD 0.93 in the previous year[35]. - The total comprehensive income attributable to shareholders was HKD 20,591,000, a recovery from a total comprehensive loss of HKD 223,831,000 in 2022[35]. Revenue Sources - Interest income increased by 374% to HKD 38,269,000, driven by higher cash reserves and rising bank deposit rates[33]. - Interest income from lending activities dropped to HKD 62,530,000 in 2023, down from HKD 123,523,000 in 2022, a decrease of 49.3%[43]. - Dividend income decreased to HKD 152,000 in 2023 from HKD 540,000 in 2022, reflecting a decline of 71.8%[43]. - Commission and fee income from securities brokerage fell to HKD 1,889,000 in 2023, compared to HKD 3,869,000 in 2022, a decline of 51.1%[43]. - The company’s interest income from banks rose to HKD 38,269,000 in 2023 from HKD 8,076,000 in 2022, an increase of approximately 373.5%[69]. Asset and Liability Management - The company's capital-to-debt ratio was approximately 3% in fiscal year 2023, up from 2% in 2022, with total liabilities of HKD 66,601,000 and equity attributable to shareholders of HKD 2,211,728,000[15]. - The company's total assets decreased slightly to HKD 2,237,511,000 from HKD 2,192,024,000 in the previous year[36]. - Total liabilities decreased to HKD 66,601,000 in 2023 from HKD 48,926,000 in 2022, a reduction of about 31.5%[91]. - The total amount of receivables, net of impairment provisions, was HKD 767,232,000 in 2023, down from HKD 1,020,598,000 in 2022, indicating a decrease of approximately 25%[100]. Impairment and Provisions - The company confirmed an impairment loss of HKD 11,519,000 on debt instruments measured at fair value through other comprehensive income, compared to HKD 7,301,000 in 2022[7]. - The company made a provision for impairment of receivables amounting to HKD 10,263,000 in 2023, compared to HKD 209,397,000 in 2022, indicating a significant reduction in impairment losses[77]. - The impairment provision for receivables decreased by 4% to HKD 486,136,000 in 2023 from HKD 507,116,000 in 2022[110]. Business Operations - The company continues to engage primarily in investment securities, trading, lending, and securities brokerage businesses as of December 31, 2023[104]. - The company’s loan portfolio was 99% secured by collateral as of December 31, 2023, with HKD 640,230,000 due within one year[11]. - The company’s commodity trading activities generated no revenue in fiscal year 2023, down from HKD 188,301,000 in 2022, with a profit of HKD 11,010,000 attributed to interest income from cash deposits[24]. Future Outlook - The group maintains a cautiously optimistic outlook on its medium to long-term business prospects despite geopolitical tensions and ongoing conflicts, including the Russia-Ukraine war and recent Israel-Hamas conflicts[134]. - The management will continue to adopt a prudent and rigorous approach to managing the group's business and seek new business and investment opportunities that are anticipated to bring long-term benefits[134]. - The group is evaluating multiple investment opportunities involving target companies in the financial industry to strengthen and diversify its business and revenue base[134].

Financial Performance - The total revenue for the group for the six months ended June 30, 2023, was HKD 20,465,000, compared to HKD 997,000 in the previous year, indicating a substantial growth[9]. - In the first half of 2023, the company recorded a revenue decrease of 80% to HKD 51,267,000, down from HKD 258,750,000 in the same period of 2022[127]. - Total revenue for the six months ended June 30, 2023, was HKD 51,267,000, a decrease of 80.2% compared to HKD 258,750,000 for the same period in 2022[185]. - Interest income decreased to HKD 50,284,000 from HKD 67,831,000, representing a decline of 26.0% year-over-year[185]. - The company reported a pre-tax loss of HKD 22,312,000, an improvement from a loss of HKD 72,582,000 in the previous year[185]. - The group recorded a significant reduction in loss attributable to owners, decreasing by 89% to HKD 11,996,000 for the first half of 2023, compared to HKD 104,350,000 for the same period in 2022[171]. - The company reported a loss attributable to owners of HKD 11,996,000 for the first half of 2023, compared to a loss of HKD 104,350,000 in the same period of 2022[127]. - Total comprehensive expenses amounted to HKD 14,759,000, a decrease from HKD 126,073,000 in the prior year[171]. Income and Expenses - The group's bank interest income for the six months ended June 30, 2023, was HKD 16,910,000, compared to HKD 666,000 for the same period in 2022, representing a significant increase[9]. - The group’s other income for the six months ended June 30, 2023, was HKD 3,555,000, compared to HKD 23,000 in the same period last year[9]. - The company achieved a turnaround in performance with a profit of HKD 4,489,000 in the first half of 2023, compared to a loss of HKD 19,023,000 in the previous year[162]. - The impairment loss provision decreased by 49% to HKD 40,614,000 in the first half of 2023, down from HKD 78,981,000 in the same period of 2022[162]. - The company confirmed an impairment loss of HKD 336,000 on debt instruments due to increased credit risk, compared to HKD 17,133,000 on June 30, 2022[118]. Assets and Liabilities - The group's total receivables from cash clients amounted to HKD 1,984,000, and from margin clients amounted to HKD 112,141,000 as of June 30, 2023[22]. - The group’s total receivables decreased from HKD 140,638,000 as of December 31, 2022, to HKD 129,416,000 as of June 30, 2023[22]. - The total liabilities for trade and other payables as of June 30, 2023, were HKD 36,625,000, a decrease from HKD 37,899,000 as of December 31, 2022, showing a reduction of 3.4%[49]. - The company's cash and cash equivalents amounted to HKD 1,059,588,000, an increase from HKD 1,005,561,000 as of December 31, 2022, representing a growth of approximately 5.4%[48]. - The total loan portfolio amounted to HKD 1,545,359,000, a slight increase of HKD 17,645,000 compared to the end of 2022[138]. - The net value of the loan portfolio, after deducting impairment provisions, was HKD 970,627,000, down from HKD 1,020,598,000 at the end of 2022[138]. - The company's deferred tax assets increased to HKD 2,806,000 as of June 30, 2023, compared to HKD 1,315,000 as of December 31, 2022, reflecting a growth of 113.1%[44]. Shareholder and Governance - The company’s major shareholders include Dr. Zheng Jiachun, holding approximately 16.67% of the issued shares, and Mr. Sun Cuhong, holding approximately 8.24%[61]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[77]. - The board of directors' remuneration has been increased to HKD 250,000 per year for certain directors, effective January 1, 2023[79][80][84]. - The company has adopted the standard code as the code of conduct for securities transactions by its directors[78]. Market and Operational Insights - The company’s trading activities with European clients temporarily halted, resulting in no revenue from trading operations, which had generated HKD 188,301,000 in the previous year[120]. - The company aims to closely monitor the performance of its financial assets and explore business opportunities to improve results in the European commodity market[120]. - The company continues to adopt a prudent approach in managing its business amid ongoing geopolitical tensions and economic uncertainties[113]. - The group completed the acquisition of an asset management company licensed to conduct regulated activities, expected to create synergies with its brokerage business[171]. - The group plans to expand its fund management activities in equity, fixed income, and alternative investments[171]. Employee and Operational Costs - The group had 50 employees as of June 30, 2023, with total employee costs amounting to HKD 15,522,000, an increase from HKD 14,708,000 in the previous year[152]. - The company's short-term employee benefits for directors remained stable at HKD 3,535,000 for both 2023 and 2022[41]. Financial Instruments and Investments - The company's financial assets measured at fair value through profit or loss amounted to HKD 13,224,000, with a net loss of HKD 3,809,000 during the first half of 2023[156]. - The company's debt instruments measured at fair value through other comprehensive income totaled HKD 18,976,000, with no income generated during the first half of 2023[158]. - The company's financial assets portfolio is primarily composed of property, accounting for 97.60% of the total[157]. - The company has not purchased or sold any debt securities during the first half of 2023[158].

[Mid-term Results Announcement Overview](index=1&type=section&id=中期業績公告概覽) This announcement presents the unaudited condensed consolidated interim results of China Strategic Holdings Limited and its subsidiaries for the six months ended June 30, 2023, including financial statements and business review - This announcement publishes the unaudited condensed consolidated interim results of China Strategic Holdings Limited and its subsidiaries for the six months ended June 30, 2023[102](index=102&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=簡明綜合損益及其他全面收益表) For the six months ended June 30, 2023, the company's revenue significantly decreased by 80% to HKD 51,267 thousand, and loss attributable to owners narrowed by 89% to HKD 11,996 thousand, primarily due to income tax credit and reduced fair value losses on financial assets Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 51,267 | 258,750 | -80.1% | | Loss before tax | (22,312) | (72,582) | -69.3% | | Income tax credit (expense) | 10,316 | (31,768) | N/A | | Loss for the period attributable to owners of the Company | (11,996) | (104,350) | -88.5% | | Total comprehensive expense for the period attributable to owners of the Company | (14,759) | (126,073) | -88.3% | | Basic loss per share | (0.06) HK cents | (0.51) HK cents | -88.2% | - Revenue significantly decreased by **80% to HKD 51,267 thousand**, primarily due to reduced interest income from money lending business and suspension of coke product trading activities[3](index=3&type=chunk)[42](index=42&type=chunk) - Loss attributable to owners significantly narrowed by **89% to HKD 11,996 thousand**, mainly due to reduced losses recognized from securities investments[42](index=42&type=chunk)[81](index=81&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=簡明綜合財務狀況表) As of June 30, 2023, the company's total assets slightly decreased, non-current assets significantly increased, while current assets and current liabilities both decreased, and net assets remained stable Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 291,855 | 50,435 | +478.7% | | Total current assets | 1,946,513 | 2,189,628 | -11.1% | | Total current liabilities | 46,894 | 48,039 | -2.4% | | Net current assets | 1,899,619 | 2,141,589 | -11.4% | | Total assets less current liabilities | 2,191,474 | 2,192,024 | -0.02% | | Net assets | 2,176,378 | 2,191,137 | -0.67% | | Total equity | 2,176,378 | 2,191,137 | -0.67% | - Total non-current assets significantly increased by **478.7% to HKD 291,855 thousand**, primarily due to an increase in the non-current portion of loans receivable[4](index=4&type=chunk)[123](index=123&type=chunk) - Total current assets decreased by **11.1% to HKD 1,946,513 thousand**, and total current liabilities slightly decreased by **2.4% to HKD 46,894 thousand**[4](index=4&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=4&type=section&id=簡明綜合財務報表附註) This section details the basis of preparation, significant accounting policies, revenue and results by business segment, other income and losses, finance costs, taxation, impairment provisions, dividend policy, loss per share, and specific details of various financial assets and liabilities [1. Basis of Preparation](index=4&type=section&id=1.%20編製基準) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix 16 of the Listing Rules, measured at historical cost, with HKD as the functional currency - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure requirements of Appendix 16 to the Listing Rules of the Stock Exchange of Hong Kong Limited[20](index=20&type=chunk) - The condensed consolidated financial statements have been prepared under the historical cost convention, except for certain financial instruments which are measured at fair value[5](index=5&type=chunk) - The financial statements are presented in Hong Kong Dollars, and all amounts have been rounded to the nearest thousand[112](index=112&type=chunk) [2. Significant Accounting Policies](index=4&type=section&id=2.%20主要會計政策) The accounting policies adopted in this interim period are consistent with the audited consolidated financial statements for 2022, with no significant impact from new HKFRS and amendments on financial position and performance - The accounting policies and methods of computation used in the preparation of the condensed consolidated financial statements for the six months ended June 30, 2023, are consistent with those presented in the audited consolidated financial statements of the Group for the year ended December 31, 2022[21](index=21&type=chunk) - The application of new and revised Hong Kong Financial Reporting Standards and amendments during this interim period has had no significant impact on the financial position and performance of the Group and/or the disclosures contained in the condensed consolidated financial statements for the current and prior periods[6](index=6&type=chunk) [3. Revenue](index=5&type=section&id=3.%20收入) Total revenue for the period was HKD 51,267 thousand, a significant decrease from the same period last year, mainly due to zero revenue from coke product trading and reduced interest income from money lending business Revenue Breakdown | Revenue Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Coke product trading | – | 188,301 | -100% | | Arrangement fee income from money lending business | – | 200 | -100% | | Commission and handling fee income from securities brokerage business | 983 | 2,418 | -59.3% | | Interest income from securities margin financing business | 3,697 | 3,562 | +3.8% | | Interest income from money lending business | 46,587 | 64,269 | -27.5% | | **Total Revenue** | **51,267** | **258,750** | **-80.1%** | - Revenue from coke product trading decreased from HKD 188,301 thousand to **zero**, which is the primary reason for the overall revenue decline[7](index=7&type=chunk) - Interest income from money lending business decreased by **27.5% to HKD 46,587 thousand**[7](index=7&type=chunk) [4. Segment Information](index=5&type=section&id=4.%20分類資料) The Group primarily operates in securities investment, trading, money lending, and securities brokerage businesses. In the first half of 2023, money lending and securities brokerage businesses achieved segment profit, while securities investment recorded a loss, and trading business turned profitable Segment Revenue and Results | Business Segment | June 30, 2023 Segment Revenue (HKD thousands) | June 30, 2023 Segment Results (HKD thousands) | June 30, 2022 Segment Revenue (HKD thousands) | June 30, 2022 Segment Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Securities Investment | – | (12,166) | – | (21,280) | | Trading | – | 5,118 | 188,301 | 626 | | Money Lending | 46,587 | 4,489 | 64,469 | (19,023) | | Securities Brokerage | 4,680 | 4,859 | 5,980 | 4,449 | | **Total** | **51,267** | **2,300** | **258,750** | **(35,228)** | - Trading business profit significantly increased from HKD 626 thousand in the same period of 2022 to **HKD 5,118 thousand** in the first half of 2023, despite zero revenue[26](index=26&type=chunk) - Money lending business turned profitable, from a loss of HKD 19,023 thousand in the same period of 2022 to a profit of **HKD 4,489 thousand** in the first half of 2023[26](index=26&type=chunk) [5. Other Income](index=7&type=section&id=5.%20其他收入) Total other income for the first half of 2023 amounted to HKD 20,465 thousand, primarily contributed by bank interest income, representing a significant increase from the same period last year Other Income Breakdown | Income Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 16,910 | 666 | +2439.1% | | Government subsidies | – | 308 | -100% | | Others | 3,555 | 23 | +15356.5% | | **Total** | **20,465** | **997** | **+1952.7%** | - Bank interest income significantly increased from HKD 666 thousand to **HKD 16,910 thousand**, being the main driver of other income growth[10](index=10&type=chunk) [6. Other Gains and Losses, Net](index=7&type=section&id=6.%20其他收益及虧損%EF%BC%8C淨額) In the first half of 2023, the company recorded a net loss of HKD 1 thousand from other gains and losses, primarily affected by exchange losses, compared to a gain of HKD 243 thousand in the same period last year Other Gains and Losses, Net | Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Gain on disposal of property, plant and equipment | – | 9 | | Gain on termination of leases | – | 213 | | Exchange (loss) gain, net | (1) | 21 | | **Total** | **(1)** | **243** | - Net exchange loss was **HKD 1 thousand**, compared to a gain of HKD 21 thousand in the same period last year[27](index=27&type=chunk) [7. Net Loss on Financial Assets at Fair Value Through Profit or Loss](index=7&type=section&id=7.%20透過損益按公允值列賬之金融資產之淨虧損) In the first half of 2023, the net loss on financial assets at fair value through profit or loss was HKD 3,809 thousand, a slight decrease from HKD 3,933 thousand in the same period last year Unrealized Net Loss on Financial Assets at Fair Value Through Profit or Loss | Metric | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Unrealized net loss | 3,809 | 3,933 | -3.2% | - The unrealized net loss was primarily due to a decrease in the fair value of the listed equity securities portfolio[65](index=65&type=chunk) [8. Finance Costs](index=8&type=section&id=8.%20融資成本) Finance costs significantly decreased to HKD 289 thousand in the first half of 2023, mainly due to the full redemption of interest-bearing notes in the previous period, resulting in zero interest on notes payable Finance Costs Breakdown | Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Interest on discounted bills receivable with full recourse | – | 38 | -100% | | Interest on notes payable | – | 12,726 | -100% | | Interest on lease liabilities | 289 | 191 | +51.3% | | **Total** | **289** | **12,955** | **-97.8%** | - Interest on notes payable decreased from HKD 12,726 thousand to **zero**, which is the primary reason for the significant decline in finance costs[14](index=14&type=chunk)[96](index=96&type=chunk) [9. Income Tax Credit (Expense)](index=8&type=section&id=9.%20所得稅抵免%EF%BC%88開支%EF%BC%89) In the first half of 2023, the company recorded an income tax credit of HKD 10,316 thousand, compared to an expense of HKD 31,768 thousand in the same period last year, primarily due to changes in current and deferred tax Income Tax Credit (Expense) Breakdown | Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Current tax | 8,825 | (2,884) | | Deferred tax | 1,491 | (28,884) | | **Income tax credit (expense) recognized in profit or loss** | **10,316** | **(31,768)** | - Under the two-tiered profits tax regime in Hong Kong, the first HKD 2 million of assessable profits are taxed at **8.25%**, and the remainder at **16.5%**[15](index=15&type=chunk)[119](index=119&type=chunk) [10. Loss for the Period](index=9&type=section&id=10.%20本期間虧損) The loss for the period was HKD 11,996 thousand, primarily influenced by a reduction in impairment loss provisions, with a significant decrease in impairment provision for loans receivable Loss for the Period Composition | Category | June 30, 2023 (HKD thousands) | June 30, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Impairment provision for debt instruments at fair value through other comprehensive income | 336 | 17,133 | -98.0% | | Impairment provision for loans receivable | 40,614 | 78,981 | -48.6% | | Impairment provision for other receivables | 8,069 | – | N/A | | **Total impairment losses** | **49,019** | **96,114** | **-49.0%** | | Depreciation of property, plant and equipment | 1,411 | 1,481 | -4.7% | | Depreciation of right-of-use assets | 4,506 | 3,728 | +20.9% | - Impairment provision for loans receivable significantly decreased by **48.6% to HKD 40,614 thousand**[16](index=16&type=chunk)[34](index=34&type=chunk) - The loss for the period was **HKD 11,996 thousand**, a significant reduction from HKD 104,350 thousand in the same period last year[53](index=53&type=chunk) [11. Dividends](index=9&type=section&id=11.%20股息) The Board of Directors decided not to declare any dividends for the six months ended June 30, 2023, consistent with the same period last year - No dividends were paid, declared, or proposed during this interim period (June 30, 2022: nil)[16](index=16&type=chunk)[30](index=30&type=chunk)[40](index=40&type=chunk) [12. Loss Per Share](index=9&type=section&id=12.%20每股虧損) For the six months ended June 30, 2023, basic loss per share was HKD 0.06 cents, a significant narrowing from HKD 0.51 cents in the same period last year, with no dilutive potential Basic Loss Per Share | Metric | June 30, 2023 | June 30, 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HKD thousands) | 11,996 | 104,350 | -88.5% | | Weighted average number of ordinary shares (thousands) | 20,385,254 | 20,385,254 | 0% | | **Basic loss per share (HK cents)** | **(0.06)** | **(0.51)** | **-88.2%** | - Diluted loss per share is not presented as there were no ordinary shares with dilutive potential outstanding during the current and prior periods[31](index=31&type=chunk) [13. Debt Instruments at Fair Value Through Other Comprehensive Income](index=10&type=section&id=13.%20透過其他全面收益按公允值列賬之債務工具) As of June 30, 2023, the portfolio value of these debt instruments was HKD 18,976 thousand, primarily debt securities listed overseas, with an impairment loss of HKD 336 thousand recognized in the current period Debt Instruments at Fair Value Through Other Comprehensive Income | Metric | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Listed investments, at fair value | 18,976 | 22,077 | -14.1% | | Current portion | 18,976 | – | N/A | | Non-current portion | – | 22,077 | -100% | - An impairment provision of **HKD 336 thousand** was recognized in this interim period, a significant decrease from HKD 17,133 thousand in the same period last year[32](index=32&type=chunk) - The debt instrument was issued by a mainland property company, with increased expected losses due to the issuer's default on interest and principal payments[48](index=48&type=chunk) [14. Loans Receivable](index=11&type=section&id=14.%20應收貸款) As of June 30, 2023, the total carrying amount of loans receivable was HKD 1,545,359 thousand, with a net value of HKD 970,627 thousand after impairment provisions, of which 99% are secured and primarily due within one year Loans Receivable Breakdown | Metric | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Fixed-rate loans receivable | 1,545,359 | 1,527,714 | +1.15% | | Less: Impairment provision | (574,732) | (507,116) | +13.3% | | **Net Value** | **970,627** | **1,020,598** | **-4.89%** | | Current portion | 720,222 | 1,020,598 | -29.4% | | Non-current portion | 250,405 | – | N/A | | Secured | 959,913 | 1,010,076 | -5.0% | | Unsecured | 10,714 | 10,522 | +1.8% | - The impairment provision balance increased by **13% to HKD 574,732 thousand**, with HKD 41,112 thousand being the impairment provision for this interim period[77](index=77&type=chunk) - **99%** of the loan portfolio is secured, primarily by properties, listed equity securities, and debt securities in Hong Kong[78](index=78&type=chunk) [15. Trade and Other Receivables](index=12&type=section&id=15.%20應收貿易及其他款項) As of June 30, 2023, total trade and other receivables amounted to HKD 129,416 thousand, mainly comprising trade receivables from margin clients in the securities brokerage business, with an impairment provision of HKD 8,069 thousand made for other receivables in the current period Trade and Other Receivables Breakdown | Category | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables from securities brokerage business | 114,125 | 118,408 | -3.6% | | Other receivables | 15,291 | 22,230 | -31.2% | | **Total** | **129,416** | **140,638** | **-8.0%** | - An impairment provision of **HKD 8,069 thousand** was made for other receivables in this interim period (June 30, 2022: nil)[58](index=58&type=chunk) - The market value of securities pledged by margin clients was **HKD 586,865 thousand**, exceeding the receivables, thus no impairment provision was made[57](index=57&type=chunk)[94](index=94&type=chunk) [16. Financial Assets at Fair Value Through Profit or Loss](index=13&type=section&id=16.%20透過損益按公允值列賬之金融資產) As of June 30, 2023, these financial assets primarily consisted of listed equity securities in Hong Kong, valued at HKD 13,224 thousand, all classified as current portion Financial Assets at Fair Value Through Profit or Loss | Metric | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Listed equity securities in Hong Kong | 13,224 | 17,033 | -22.4% | | Current portion | 13,224 | 17,033 | -22.4% | - The fair value of listed equity securities is determined based on the market closing prices reported by the Stock Exchange of Hong Kong Limited[60](index=60&type=chunk) [17. Trade and Other Payables](index=13&type=section&id=17.%20應付貿易及其他款項) As of June 30, 2023, total trade and other payables amounted to HKD 36,625 thousand, mainly comprising trade payables from securities brokerage business and accrued expenses Trade and Other Payables Breakdown | Category | June 30, 2023 (HKD thousands) | December 31, 2022 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables from securities brokerage business | 21,138 | 17,850 | +18.4% | | Accrued expenses and other payables | 15,487 | 20,049 | -22.7% | | **Total** | **36,625** | **37,899** | **-3.4%** | - Trade payables from securities brokerage business generally have a settlement period of two days after the transaction date[61](index=61&type=chunk) [Business Review](index=14&type=section&id=業務回顧) In the first half of 2023, the Group continued to primarily engage in securities investment, coke product trading, money lending, and securities brokerage businesses amidst a challenging macroeconomic environment, adopting a cautious and prudent approach to business management, with varied performance across segments [Securities Investment](index=14&type=section&id=投資證券) The Group's securities investments include Hong Kong listed equity securities and overseas listed debt securities, recording an overall loss of HKD 12,166 thousand, but narrowing from the same period last year. The company closely monitors portfolio performance and adjusts investment strategies based on market conditions - Overall securities investment recorded a loss of **HKD 12,166 thousand**, which narrowed from HKD 21,280 thousand in the same period last year[42](index=42&type=chunk)[65](index=65&type=chunk) - Investment decisions are made with reference to target company financial information, market news, investment analysis reports, and macroeconomic outlook[42](index=42&type=chunk) - Long-term investments primarily focus on capital appreciation and dividend/interest income, while non-long-term investments focus on trading gains[43](index=43&type=chunk) [Financial Assets at Fair Value Through Profit or Loss (Securities Investment)](index=15&type=section&id=透過損益按公允值列賬之金融資產%20%28投資證券%29) As of June 30, 2023, this portfolio was valued at HKD 13,224 thousand, primarily invested in property and other sector companies, with an unrealized net loss of HKD 3,809 thousand recognized in the current period Financial Assets at Fair Value Through Profit or Loss Portfolio Composition | Company Category | Proportion of Portfolio Market Value/Fair Value (%) | | :--- | :--- | | Property | 97.60 | | Other | 2.40 | | **Total** | **100.00** | - This portfolio generated **no revenue** in the first half of 2023[65](index=65&type=chunk) - A net loss of **HKD 3,809 thousand** was recognized, mainly due to a decrease in the fair value of the listed equity securities portfolio[65](index=65&type=chunk) [Debt Instruments at Fair Value Through Other Comprehensive Income (Securities Investment)](index=16&type=section&id=透過其他全面收益按公允值列賬之債務工具%20%28投資證券%29) As of June 30, 2023, this debt instrument portfolio was valued at HKD 18,976 thousand, with an impairment loss of HKD 336 thousand recognized in the current period, primarily due to increased expected losses from a mainland property company's bond default - This portfolio generated **no revenue** in the first half of 2023[47](index=47&type=chunk) - An impairment loss of **HKD 336 thousand** was recognized, mainly due to increased credit risk of debt instruments, particularly the default of a mainland property company's bond[48](index=48&type=chunk) Overseas Debt Securities Investment Details | Company Category | Approximate Proportion of Total Assets Carrying Amount (%) | Yield to Maturity at Purchase (%) | Purchase Cost (HKD thousands) | Carrying Amount as of January 1, 2023 (HKD thousands) | Market Value/Fair Value as of June 30, 2023 (HKD thousands) | Cumulative Fair Value Loss (HKD thousands) | Fair Value Loss Recognized in Current Period (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Property | 0.85 | 9.50 | 312,000 | 22,077 | 18,976 | (293,024) | (3,101) | [Trading](index=17&type=section&id=貿易) In the first half of 2023, the trading business generated no revenue due to the suspension of commodity trading activities with European clients, but recorded a profit of HKD 5,118 thousand, mainly from interest income on bank credit financing guarantees - Trading business revenue was **zero** (June 30, 2022: HKD 188,301 thousand), primarily due to the suspension of commodity trading activities with European clients[70](index=70&type=chunk) - Business profit was **HKD 5,118 thousand**, mainly from interest income earned on reserved cash deposits[70](index=70&type=chunk) - Management will continue to monitor the European commodity market and explore business opportunities to improve performance[70](index=70&type=chunk) [Money Lending](index=17&type=section&id=放債) Money lending business revenue decreased by 28% to HKD 46,587 thousand, but due to a 49% reduction in impairment loss provisions, the business turned profitable, recording a profit of HKD 4,489 thousand. The company strictly monitors its loan portfolio, with 99% of loans being secured - Money lending business revenue decreased by **28% to HKD 46,587 thousand**, primarily due to a decrease in the average amount of performance loans advanced to borrowers[76](index=76&type=chunk) - The business turned profitable, recording a profit of **HKD 4,489 thousand** (June 30, 2022: loss of HKD 19,023 thousand), mainly due to a **49% reduction** in impairment loss provisions to HKD 40,614 thousand[76](index=76&type=chunk) - The total carrying amount of the loan portfolio slightly increased to **HKD 1,545,359 thousand**, and management remains prudent in granting new loans[52](index=52&type=chunk) Loan Portfolio Borrower Categories and Maturity Dates | Borrower Category | Approximate Proportion of Loan Portfolio (%) | Annual Interest Rate (%) | Maturity Date | | :--- | :--- | :--- | :--- | | Individual | 26.16 | 9.50 - 18.00 | Within one year | | Corporate | 48.04 | 8.00 - 18.00 | Within one year | | Corporate | 25.80 | 8.50 - 12.00 | After one year but within three years | | **Total** | **100.00** | | | [Securities Brokerage](index=19&type=section&id=證券經紀) Securities brokerage business revenue decreased by 22% to HKD 4,680 thousand, mainly due to a decline in brokerage commission income amid weakening investment sentiment, but margin financing interest income increased, and bank interest income grew significantly, leading to a slight 9% increase in business profit to HKD 4,859 thousand - Business revenue decreased by **22% to HKD 4,680 thousand**, primarily due to a **59% decrease** in brokerage commission income to HKD 983 thousand[79](index=79&type=chunk) - Margin financing interest income increased by **4% to HKD 3,697 thousand**, partially offsetting the decline in commission income[79](index=79&type=chunk) - Business profit slightly increased by **9% to HKD 4,859 thousand**, mainly benefiting from a more than **10-fold increase** in bank interest income to HKD 1,902 thousand[79](index=79&type=chunk)[80](index=80&type=chunk) - The Group has completed the acquisition of an asset management company and plans to engage in fund management activities to generate synergistic benefits[80](index=80&type=chunk) [Financial Review](index=20&type=section&id=財務回顧) The Group's loss significantly narrowed in the first half of 2023, demonstrating strong liquidity, a low gearing ratio, and a robust financial position [Overall Results](index=20&type=section&id=整體業績) In the first half of 2023, loss attributable to owners of the Group decreased by 89% to HKD 11,996 thousand, with basic loss per share of HKD 0.06 cents, primarily due to reduced securities investment losses - Loss attributable to owners decreased by **89% to HKD 11,996 thousand**[81](index=81&type=chunk) - Basic loss per share was **HKD 0.06 cents**, a significant narrowing from HKD 0.51 cents in the same period last year[81](index=81&type=chunk) - The Group recorded total comprehensive expense attributable to owners of **HKD 14,759 thousand**, including a net fair value loss of HKD 3,101 thousand on debt securities[81](index=81&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=20&type=section&id=流動資金%EF%BC%8C財務資源及資本架構) The Group maintains strong liquidity with a current ratio of approximately 41.5 times and a gearing ratio of approximately 3%, possessing sufficient financial resources to meet operational needs - Current assets amounted to **HKD 1,946,513 thousand**, and quick assets to **HKD 1,053,158 thousand**[94](index=94&type=chunk) - The current ratio was approximately **41.5 times** (December 31, 2022: 45.6 times), indicating strong liquidity[83](index=83&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) - The gearing ratio was approximately **3%** (December 31, 2022: 2%), reflecting a low level of financial leverage[84](index=84&type=chunk) - Equity attributable to owners of the Company was **HKD 2,176,378 thousand**, approximately **HKD 10.68 cents per share**[95](index=95&type=chunk) [Prospects](index=21&type=section&id=前景) Facing global economic uncertainties, high inflation, and geopolitical tensions, the Group will continue to prudently manage its businesses and actively evaluate new business and investment opportunities in the financial industry to expand its business scale and diversify its revenue base - The macroeconomic environment remains challenging, including geopolitical tensions, high inflation, interest rate hikes, and a slow economic recovery in Hong Kong[85](index=85&type=chunk) - The Group will continue to manage its businesses with a cautious and prudent approach, and explore new business and investment opportunities expected to bring long-term benefits[85](index=85&type=chunk) - Management is evaluating investment opportunities in the financial industry, aiming to expand business scale and diversify the revenue base[85](index=85&type=chunk) [Corporate Governance](index=22&type=section&id=企業管治) The company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the reporting period, and the condensed consolidated financial statements have been reviewed by the Audit Committee and the auditor - The Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules[86](index=86&type=chunk) - The condensed consolidated financial statements have been reviewed by the Audit Committee and the auditor, Deloitte Touche Tohmatsu[86](index=86&type=chunk) [Other Information](index=22&type=section&id=其他資料) During the reporting period, the company and its subsidiaries did not purchase, sell, or redeem any listed securities. The composition of the Board of Directors is listed [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=購買%EF%BC%8C出售或贖回本公司之上市證券) During the six months ended June 30, 2023, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the six months ended June 30, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company’s listed securities[87](index=87&type=chunk) [Board of Directors](index=22&type=section&id=董事會成員) As of the date of this announcement, the Board of Directors comprises one non-executive chairman, three executive directors, and four independent non-executive directors - The Board of Directors includes Dr. Ko Ching Fai (Chairman, Non-executive Director); Mr. So Ka Lok (Chief Executive Officer, Executive Director), Mr. Chow Kam Wah and Mr. Chow Man Wai (Executive Directors); and Ms. Ma Yin Fan, Mr. Chow Yu Chun, Mr. Leung Hoi Ying and Mr. Lam Kin Fung (Independent Non-executive Directors)[88](index=88&type=chunk)

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].