[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].