Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 810,244 thousand, a decrease of 5.5% compared to HKD 857,771 thousand in the same period of 2022[2]. - The net profit for the period was HKD 26,237 thousand, a significant recovery from a loss of HKD 54,650 thousand in the previous year[3]. - The basic earnings per share for the period was HKD 0.46, compared to a loss per share of HKD 1.20 in the previous year[3]. - Other comprehensive income for the period was reported at HKD (16,770) thousand, a significant improvement from HKD (171,259) thousand in the same period of 2022[3]. - The group reported a profit of HKD 26,237,000 for the period, with a breakdown of profits from various segments including HKD 8,085,000 from watch and clock products[11]. - The group’s total profit before tax was HKD 37,371,000, with a tax expense yet to be detailed[11]. - The company reported a net profit of HKD 51,972,000 for the six months ending June 30, 2023, a substantial increase of 359% compared to HKD 11,323,000 in the previous year[72]. Revenue Breakdown - Non-banking and financial business sales revenue decreased to HKD 558,885 thousand from HKD 685,987 thousand, reflecting a decline of 18.5%[2]. - The group’s banking and financial business generated a total income of HKD 240,095,000, with trading income contributing HKD 16,160,000[11]. - Revenue from the subsidiary Zhuhai Rossini Watch Industry Co., Ltd. was HKD 157,638,000, a decrease of 35.1% from HKD 243,035,000 in the previous year[56]. - E-commerce sales decreased by approximately 37.9% to HKD 53,886,000 from HKD 86,718,000 in the same period last year[59]. - For the six months ended June 30, 2023, the revenue of EBO Group was HKD 113,029,000, a decrease of HKD 39,584,000 or 25.9% compared to HKD 152,613,000 in the same period last year[61]. - The overall revenue for Kunlun, Qinianhua, and The Dreyfuss Group Limited was HKD 106,983,000, down from HKD 129,928,000 in the previous year, with a net loss of HKD 7,953,000[67]. Assets and Liabilities - Total assets decreased to HKD 15,817,407 thousand from HKD 16,157,243 thousand, indicating a reduction of approximately 2.1%[4]. - Total liabilities were reported at HKD 11,624,759 thousand, down from HKD 11,978,382 thousand, showing a decrease of 3%[6]. - The company's cash and deposits as of June 30, 2023, were HKD 705,647 thousand, a substantial decrease from HKD 4,314,638 thousand at the end of 2022[4]. - Accounts receivable as of June 30, 2023, amounted to HKD 402,094,000, up from HKD 336,640,000 as of December 31, 2022, indicating an increase of about 19.4%[34]. - Inventory as of June 30, 2023, totaled HKD 1,792,187,000, a decrease from HKD 1,935,923,000 as of December 31, 2022, reflecting a decline of approximately 7.4%[36]. - The total amount of listed debt instruments at amortized cost was HKD 2,172,514,000 as of June 30, 2023, compared to HKD 1,571,725,000 as of December 31, 2022, representing an increase of approximately 38.3%[35]. Acquisition Details - The group completed the acquisition of 100% equity in Jinxi Industrial Co., Ltd. for HKD 108,456,000 in April 2023, making it a subsidiary[8]. - The acquisition payment will be made in installments, consisting of 38,461,538 shares and HKD 40,000,000 in cash, with adjustments based on profit guarantees[46]. - The profit guarantee stipulates that Jinxi Group must achieve a net profit of no less than HKD 30,000,000 for the fiscal years ending December 31, 2023, 2024, and 2025[46]. - The goodwill generated from the acquisition amounts to HKD 42,178,000, attributed to expected synergies and potential growth in the smartwatch business[50]. - The net cash inflow from the acquired subsidiary is approximately HKD 21,203,000, with a net profit contribution of about HKD 5,257,000 since the acquisition date[51]. Operational Highlights - The company has not reported any significant changes in business operations aside from the acquisition mentioned[8]. - The company remains optimistic about the second half of 2023, expecting a gradual rebound in the watch business in Hong Kong and mainland China despite ongoing economic challenges[106]. - Consumer confidence is expected to improve due to the Chinese government's stimulus policies, which will likely reflect in retail growth in Q3 2023[107]. - The company plans to enhance its performance by focusing on high-end watch production and rebuilding its global reputation and brand awareness[68]. - The company aims to maintain sustainable long-term development capabilities across diverse businesses[52]. Financial Management and Governance - The audit committee has reviewed the unaudited financial statements for the six months ended June 30, 2023, and discussed internal controls and financial reporting matters with management[114]. - The compensation committee is responsible for establishing transparent procedures for determining the remuneration of all directors and senior management[115]. - The risk management committee is responsible for assessing and determining the risk levels the group is willing to undertake to achieve strategic goals[117]. - The nomination committee is tasked with reviewing the structure, size, and diversity of the board, including gender, age, and cultural background[116]. - The financial performance and strategic initiatives reflect the collective efforts of the board and management team[119].

Financial Performance - The total revenue for the year 2022 was HKD 1,607,388,000, with a significant portion coming from self-owned brands[7]. - The company reported a net loss after tax of HKD 119,437,000 for the year 2022[7]. - In 2022, the company's revenue decreased by 17% to HKD 1.61 billion from HKD 1.93 billion in 2021[10]. - The net loss attributable to the company's owners increased by 9% to HKD 1.11 billion, compared to HKD 1.01 billion in the previous year[10]. - The total revenue for the year ended December 31, 2022, was approximately HKD 1,607,388,000, a decrease of HKD 323,711,000 or 16.8% compared to 2021[15]. - The company reported an EBITDA of HKD 51.73 million, a decline of 53.4% from HKD 110.97 million in 2021[13]. - The company did not recommend a final dividend for the year ended December 31, 2022, to retain sufficient funds for financial needs[10]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion HKD for the fiscal year, representing a 15% year-over-year growth[68]. - The company has set a future outlook with a revenue growth target of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[68]. Economic Challenges - The company faced significant challenges due to the ongoing COVID-19 pandemic, impacting both business operations and employee well-being[9]. - The company continues to focus on strategic initiatives to navigate through the economic turbulence caused by the pandemic[9]. - The company has implemented measures to increase cash flow and reduce the extent of losses amid ongoing economic challenges[10]. - The company anticipates a rebound in the Chinese economy, with a target growth rate of 5% for 2023 as stated by Premier Li Qiang[10]. - The company is closely monitoring the progress of the COVID-19 pandemic and assessing its impact on business operations[163]. Operational Adjustments - The company emphasized the importance of supporting customers and the operational ecosystem during the crisis[9]. - The company aims to leverage opportunities in the local watch brand market as consumer confidence gradually recovers[10]. - The company plans to develop suitable new products for the e-commerce market to improve unit price and profit margins[24]. - The company is focusing on optimizing management structure and controlling marketing expenses to reduce operational costs[24]. - The company is expanding its e-commerce efforts by integrating live streaming and traditional e-commerce channels[24]. Asset and Liability Management - The total assets of the company were reported at HKD 20,258,229,000 in 2018, showing a slight decline to HKD 19,597,081,000 in 2019[5]. - The total assets decreased by 19.1% to HKD 16.16 billion from HKD 19.96 billion in 2021[14]. - The total liabilities decreased by 21.9% to HKD 11.98 billion from HKD 15.34 billion in 2021[14]. - The company's cash and bank balances were approximately HKD 4,314,638,000 as of December 31, 2022, down from HKD 6,531,968,000 a year earlier[35]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance with applicable provisions[74]. - The company has a dedicated audit committee and remuneration committee, ensuring transparency and accountability in its operations[72]. - The board consists of 7 executive directors and 4 independent non-executive directors, ensuring a diverse and experienced governance structure[79]. - The company has established mechanisms to ensure the independence of the board, with 4 out of 11 directors being independent non-executive directors, complying with listing rules[81]. - The company emphasizes high transparency and effective communication with shareholders and investors, ensuring timely updates on business performance and financial status[108]. Risk Management - Major risks identified include economic risks, industry risks, e-commerce risks, interest rate risks, exchange rate risks, legal risks, intellectual property risks, and operational risks[153][154][155][156][157][158][159]. - The company is committed to protecting its intellectual property rights globally through collaboration with professionals[158]. - Credit risk is managed by only trading with reputable customers and setting limits on counterparty risks[160]. - The company conducts regular reviews of compliance with applicable laws and regulations to mitigate legal risks[157]. Sustainability and Social Responsibility - The management team emphasized a focus on sustainability initiatives, aiming to reduce carbon emissions by 30% over the next five years[68]. - The company is committed to sustainable development and social responsibility, focusing on minimizing environmental impact and engaging in charitable activities[74]. - The company has established a culture that values inclusivity, encouraging employees to generate new ideas and foster creativity[74]. Future Outlook - The company aims to enhance brand exposure through various low-cost marketing strategies, including exhibitions and social media interactions[23]. - The company is exploring market expansion opportunities in Southeast Asia, aiming to increase market share by 25% in the region over the next two years[68]. - The company anticipates a new development cycle for the watch industry as the global economy, particularly in mainland China, recovers post-COVID[24].

Financial Performance - For the year ended December 31, 2022, the total revenue was HKD 1,607,388,000, a decrease of 16.7% compared to HKD 1,931,099,000 in 2021[2] - The company reported a loss for the year of HKD 119,437,000, compared to a loss of HKD 105,376,000 in 2021, representing a 13.4% increase in losses[2] - The basic and diluted loss per share was HKD 2.55, compared to HKD 2.32 in the previous year[5] - The company reported a net loss of HKD 119,437,000 for the year, compared to a net loss of HKD 105,376,000 in the previous year[28] - The company’s loss attributable to shareholders was HKD 111,051,000 for the year ended December 31, 2022, compared to a loss of HKD 100,907,000 in 2021[48] - EBITDA for the year ended December 31, 2022, was approximately HKD 51,728,000, a decrease of HKD 59,238,000 or 53.4% from HKD 110,966,000 in 2021[60] Revenue Breakdown - Total revenue for the period reached HKD 1,607,388,000, with significant contributions from watch and clock products (HKD 1,248,281,000) and banking and financial services (HKD 338,642,000) [26] - The company reported a significant decrease in non-banking and financial business sales revenue to HKD 1,248,281,000 from HKD 1,555,114,000, a drop of 19.7%[2] - Revenue from external customers in 2022 was HKD 1,607,388 thousand, a decrease from HKD 1,931,099 thousand in 2021, with notable declines in the Chinese market[31] - Revenue from watch and timing products for the year ended December 31, 2022, was HKD 255,398,000, a decrease of HKD 98,352,000 or 27.8% compared to HKD 353,750,000 in 2021[70] - Non-banking and financial business revenue decreased to HKD 1,268,746,000 in 2022, a decline of 19% compared to HKD 1,571,138,000 in 2021[38] Assets and Liabilities - Total assets decreased to HKD 16,157,243,000 from HKD 19,962,419,000, reflecting a decline of 19%[6] - Total liabilities decreased to HKD 11,978,382,000 from HKD 15,338,879,000, a reduction of 22.5%[7] - The company’s equity attributable to owners decreased to HKD 4,012,813,000 from HKD 4,361,133,000, a decline of 8%[8] - The company’s total liabilities were reported at HKD 11,978,382,000, with banking and financial services liabilities at HKD 10,104,603,000 [27] - The total assets as of December 31, 2022, were HKD 16,157,243,000, down from HKD 19,962,419,000 as of December 31, 2021[98] Operational Highlights - The main business operations of the group include manufacturing and distribution of watches and timepieces, property investment, and banking and financial services[9] - The group has not experienced significant operational changes during the year[9] - The group implemented diversified sales models and flexible policies to adapt to the ongoing impact of the COVID-19 pandemic[65] - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming fiscal year[30] - The company aims to strengthen collaboration with traditional e-commerce platforms like Tmall and JD.com while actively promoting new e-commerce channels such as Douyin and Kuaishou[72] E-commerce and Market Trends - E-commerce sales accounted for 44.1% of total revenue in 2022, up from 41.4% in 2021[63] - E-commerce sales decreased from HKD 247,381,000 to HKD 180,963,000, a reduction of HKD 66,418,000 or 26.85% for the year ended December 31, 2022[66] - The company plans to enhance its e-commerce market by developing suitable new products to increase unit price and profit margin in the coming year[72] - The company anticipates a stronger recovery in the tourism sector in 2023, which is expected to boost visitor numbers and sales[67] Financial Management - The company incurred financial expenses totaling HKD 70,532,000, which included HKD 41,311,000 in unallocated expenses [26] - The company recognized a provision for expected credit losses of HKD (2,361) thousand on receivables, indicating a cautious outlook on credit quality[29] - The company’s inventory provisions amounted to HKD 24,917,000, indicating challenges in inventory management [27] - The company’s cash and deposits amounted to HKD 18,529 thousand, reflecting liquidity management strategies[29] Governance and Compliance - The company adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all applicable provisions, except for certain disclosures[131] - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2022, and confirmed they present a true and fair view of the group's financial position[141] - The external auditor, Hong Kong Li Xin De Hao CPA Limited, has confirmed that the financial figures align with the audited consolidated financial statements[142] Future Outlook - The group plans to leverage the recovery of the global economy, particularly in mainland China, to drive new development cycles in the watch industry[74] - The company is implementing innovative strategies to improve revenue in response to the challenges posed by the post-COVID-19 era[67] - The group aims to continue improving profitability and reviewing policies and customer relationships to adapt to ongoing challenges from the pandemic and rising living costs[77]

Financial Performance - Total revenue for the six months ended June 30, 2022, was approximately HKD 857.77 million, a decrease of 13.8% compared to HKD 994.59 million for the same period in 2021[5]. - Operating expenses for the same period were approximately HKD 554.37 million, down 11.6% from HKD 626.98 million in 2021[5]. - EBITDA for the six months ended June 30, 2022, was approximately HKD 33.85 million, a decline of 62.3% from HKD 89.84 million in 2021[8]. - The net loss attributable to shareholders for the period was approximately HKD 54.65 million, an increase of 98.6% compared to a net loss of HKD 27.52 million in the same period last year[8]. - The company reported a loss for the period of HKD 54,650 thousand, compared to a loss of HKD 27,521 thousand in the previous year, indicating a deterioration in performance[84]. - The company’s basic and diluted loss per share was HKD 1.20, compared to HKD 0.63 in the previous year, indicating a worsening loss per share[85]. - The total loss attributable to owners of the company for the six months ended June 30, 2022, was HKD 52,094,000, compared to HKD 27,396,000 for the same period in 2021[13]. Revenue Breakdown - Total revenue for the six months ended June 30, 2022, was HKD 857,771,000, with contributions from watch and clock products (HKD 685,987,000), property investment (HKD 9,124,000), and banking and financial services (HKD 162,660,000) [118]. - Non-banking and financial business gross profit was approximately HKD 354.31 million, a decrease of 23.1% from HKD 460.46 million in the previous year[8]. - EBO's revenue for the first half of 2022 was HKD 152,613,000, down 9.4% from HKD 168,447,000 in the same period last year, with a net loss of HKD 8,122,000 compared to a profit of HKD 4,306,000 in the previous year[14]. - The local brand subsidiary, Zhuhai Rossini Watch Co., recorded revenue of HKD 243.04 million, a decrease of 28.7% from HKD 340.86 million in the previous year[10]. Assets and Liabilities - Total assets as of June 30, 2022, were HKD 16.94 billion, a decrease of 15.1% from HKD 19.96 billion at the end of 2021[6]. - Total liabilities decreased by 17.9% to HKD 12.59 billion from HKD 15.34 billion at the end of 2021[6]. - The group's total assets decreased from HKD 19,962,419,000 on December 31, 2021, to HKD 16,940,637,000 on June 30, 2022[36]. - Total liabilities as of June 30, 2022, decreased to HKD 12,591,321,000 from HKD 15,338,879,000 as of December 31, 2021, primarily due to a reduction in payables to customers[49]. Market Strategy and Development - The company’s strategy focuses on long-term sustainable development by investing in existing and new businesses[4]. - The company plans to expand sales points into lower-tier cities to enhance market penetration despite challenges from the pandemic[10]. - EBO is focusing on developing a new series of smartwatches to penetrate the growing smartwatch market[16]. - The company plans to establish dedicated teams for watch business development, banking business development, and new business development to adapt to changing market conditions[61]. Operational Challenges - Visitor numbers for industrial tourism dropped significantly from approximately 30,000 to about 1,000, resulting in revenue of only HKD 749,000, a decline of about 68.1%[13]. - Physical store revenue for EBO decreased by approximately 25.5% year-on-year due to COVID-19 restrictions and competition from smartwatches[14]. - The impact of the COVID-19 pandemic led to a significant decline in customer footfall in physical stores, resulting in reduced sales revenue[55]. Corporate Governance - The company maintained compliance with the corporate governance code during the reporting period[73]. - The company’s governance practices were evaluated against the applicable code provisions, with one exception noted[73]. - The company’s independent non-executive director was unable to attend the annual general meeting due to other commitments[74]. Financial Management - The company has implemented plans to manage liquidity needs and improve financial conditions, ensuring the ability to continue as a going concern for at least the next twelve months[114]. - The company incurred financial expenses totaling HKD 32,853,000 during the reporting period[118]. - The company recognized a loss of HKD 10,395,000 from the sale of subsidiaries[118]. Investments and Fair Value - The investment in Guancheng Datong Co., Ltd. had a fair value of HKD 128,168,000, representing 0.8% of total assets, with a fair value loss of HKD 18,965,000 for the six months ended June 30, 2022[28]. - The fair value measurements of financial and non-financial assets and liabilities are based on observable market inputs where possible, classified into three levels of fair value hierarchy[115]. - The fair value of financial assets recognized in other comprehensive income was HKD 17,881,000, all classified as Level 2[174]. Employee and Social Responsibility - As of June 30, 2022, the group employed approximately 3,800 full-time employees in Hong Kong and mainland China, and about 260 in Europe[62]. - The company is committed to supporting various charitable activities, particularly in education and social welfare, as part of its corporate social responsibility initiatives[58].

Financial Performance - In fiscal year 2021, the company's revenue increased by 9% to HKD 1.93 billion from HKD 1.77 billion in 2020[22]. - The net loss for fiscal year 2021 was HKD 105.38 million, a 34% reduction from the previous year's loss of HKD 158 million[22]. - The loss attributable to shareholders decreased by HKD 68 million or 40.4% to HKD 101 million compared to the previous year[22]. - Total revenue for the year ended December 31, 2021, was approximately HKD 1,931,099,000, an increase of HKD 156,550,000 or 8.8% compared to 2020[38]. - Operating expenses for the same period were approximately HKD 1,233,917,000, a decrease of HKD 44,943,000 or 3.5% from 2020[39]. - The company reported a net loss of approximately HKD 105,376,000 for the year, a reduction of 33.7% compared to a net loss of HKD 158,829,000 in 2020[40]. - The total revenue for the year ended December 31, 2021, was HKD 194,054,000, an increase of 8% compared to HKD 171,521,000 in 2020, while the net loss after tax was HKD 82,826,000, down from HKD 128,128,000 in 2020[58]. - The bank's revenue for the year ended December 31, 2021, was HKD 353,731,000, a 2% increase from HKD 346,724,000 in 2020[68]. - The bank's net profit attributable to shareholders was HKD 30,602,000 in 2021, recovering from a net loss of HKD 3,633,000 in 2020[68]. Asset Management - The total assets as of 2021 were HKD 19.96 billion, a decrease from HKD 21.39 billion in 2020[16]. - The bank's assets under management reached a historical high during the past fiscal year, indicating strong growth despite market challenges[33]. - The total assets under management for Hong Kong Metasequoia Investment Fund increased from $10.24 million to approximately $14.32 million by December 31, 2021[75]. - The group's total assets decreased to HKD 19,962,419,000 as of December 31, 2021, down from HKD 21,385,195,000 in 2020, reflecting a decline of 6.6%[88]. - As of December 31, 2021, the total liabilities amounted to HKD 15,338,879,000, a decrease from HKD 16,648,968,000 as of December 31, 2020, primarily due to a reduction in payables to customers[106]. Strategic Initiatives - The company implemented measures to increase cash flow and reduce losses amid the economic disruptions caused by the pandemic[24]. - The company is conducting strategic reviews of several subsidiaries to return them to growth following performance setbacks due to the pandemic[24]. - The company has accelerated e-commerce and digitalization efforts to improve overall operational efficiency[21]. - The bank plans to deploy more resources in marketing, compliance, and risk management to maintain competitiveness and achieve long-term growth[26]. - The company is focusing on e-commerce and multi-channel networks to offset weak demand in physical store sales[47]. - The company has adopted a direct-to-consumer (D2C) strategy to enhance its omnichannel capabilities and leverage social media for product promotion[118]. Market Conditions - The geopolitical uncertainty, particularly due to the Ukraine crisis, is expected to impact global economic growth in 2022 and 2023[32]. - The bank anticipates that the watch market conditions will improve once the pandemic is managed effectively and consumer confidence is restored[32]. - The local self-owned watch brand business in mainland China showed slight improvement due to economic recovery and increased consumer confidence[24]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, with multiple committees overseeing audit, remuneration, and nominations[132][134]. - The board includes independent directors with diverse backgrounds in law, finance, and accounting, contributing to comprehensive governance[133][134]. - The company has established various committees, including the audit, remuneration, and nomination committees, to oversee specific governance aspects[136]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance with applicable provisions[142]. - The company has a clear division of responsibilities between the board and management to facilitate effective governance[145]. Risk Management - The bank is closely monitoring risks associated with the COVID-19 pandemic and has implemented appropriate risk management measures[29]. - The company has established a risk management committee to oversee risk management practices and internal controls[173]. - The company views the pandemic as a valuable learning experience and is prepared to take necessary measures to manage economic impacts[119]. Employee and Management - As of December 31, 2021, the group employed approximately 4,100 full-time employees in Hong Kong and mainland China, and about 260 in Europe[120]. - The management team has a combined experience of over 30 years in the financial and investment sectors, positioning the company for future growth[125][127]. - The company appointed Mr. Hao Xiaohui as co-CEO in January 2022, bringing extensive experience in international finance and investment management[125]. Investment and Dividends - The company aims to provide stable and sustainable returns to shareholders through its dividend policy, which considers factors such as retained earnings and future profitability[184][188]. - The company decided not to declare a final dividend for the year ended December 31, 2021, to retain sufficient funds for financial needs[22].

Financial Performance - Total revenue for the six months ended June 30, 2021, was approximately HKD 994,585,000, an increase of 24.9% compared to HKD 796,114,000 for the same period in 2020[4] - EBITDA for the six months ended June 30, 2021, was approximately HKD 89,839,000, a significant increase of 193.9% from HKD 30,566,000 in the same period last year[7] - The net loss attributable to shareholders for the period was approximately HKD 27,521,000, a reduction of 70.2% compared to a net loss of HKD 92,475,000 in the previous year[7] - The company reported a net loss of HKD 12,359,000 from other non-core subsidiaries, compared to a loss of HKD 9,566,000 in the previous year[24] - The company reported a loss of HKD 27,521,000 for the six months ended June 30, 2021, compared to a loss of HKD 92,475,000 in the same period of 2020, indicating an improvement[115] Revenue Breakdown - Non-banking and financial business gross profit was approximately HKD 460,459,000, representing a 50.0% increase from HKD 306,976,000 in the previous year[7] - The revenue from the subsidiary Zhuhai Rossini Watch Industry Co., Ltd. was HKD 340,858,000, an increase of 27.2% from HKD 268,065,000 in the previous year[9] - E-commerce sales increased by approximately 18.5% to HKD 136,827,000 compared to HKD 115,456,000 in the same period last year[13] - The revenue of EBO Group reached HKD 168,447,000, up 26.1% from HKD 133,564,000 in the same period last year, with a net profit of HKD 4,306,000 compared to a loss of HKD 16,498,000 last year[16] - Total merchandise sales for the six months ended June 30, 2021, reached HKD 818,019,000, a 38% increase from HKD 592,947,000 in 2020[121] Assets and Liabilities - The total assets as of June 30, 2021, were HKD 22,181,605,000, reflecting a 3.7% increase from HKD 21,385,195,000 at the end of 2020[5] - The total liabilities increased by 6.0% to HKD 17,648,617,000 from HKD 16,648,968,000 at the end of 2020[5] - Cash and bank balances decreased by HKD 130,430,000, or 43.0%, from HKD 303,644,000 to HKD 173,214,000[42] - The total liabilities as of June 30, 2021, amounted to HKD 17,648,617,000, an increase of 6.0% from HKD 16,648,968,000 as of December 31, 2020, primarily due to an increase in payables to customers[53] - The company’s total liabilities included a significant decrease in bank borrowings, reflecting a strategic focus on reducing debt[92] Market Focus and Strategy - The company plans to continue investing in existing and new businesses to create long-term returns exceeding the cost of capital[3] - The company is focusing on a diversified sales model and flexible policies to adapt to market changes and improve sales performance amid ongoing challenges[9] - The company plans to focus on the Chinese market in the second half of 2021 by developing new distribution channels and hosting sales events domestically[21] - The company believes that selling all watch and clock product businesses except for Ebolou could create substantial cash flow and enhance financial stability[65] - The company continues to focus on expanding its banking and financial services, aiming to enhance service offerings and improve profitability in the upcoming periods[116] Cash Flow and Investments - The company reported a net cash inflow from operating activities of HKD 3,003,983,000 for the six months ended June 30, 2021, compared to a net cash outflow of HKD 2,370,771,000 in the same period of 2020[92] - The company incurred financial expenses of HKD 39,000,000, compared to HKD 46,825,000 in the previous year, reflecting a reduction in costs[115] - The company purchased properties, plants, and equipment amounting to HKD 106,663,000 for the six months ended June 30, 2021, compared to HKD 53,628,000 for the same period in 2020, representing a 98.7% increase[145] - The company has a capital commitment of HKD 270,000,000 for its investment in the joint venture, Crown City International Limited[156] - The company recognized a decrease in non-controlling interests of HKD 12,719,000 after acquiring additional shares in Fortis Bank[167] Corporate Governance and Compliance - The company has adhered to the corporate governance code during the reporting period, with some exceptions regarding attendance at the annual general meeting[69][70][71] - The audit committee has reviewed the unaudited financial statements for the six months ended June 30, 2021, and discussed internal controls and financial reporting matters[74] - The remuneration committee is responsible for establishing transparent policies regarding the remuneration of all directors and senior management[75] - The nomination committee is tasked with reviewing the board's structure and diversity, and nominating suitable candidates for board membership[76] - The risk management committee evaluates the risks associated with achieving strategic objectives and monitors the effectiveness of the risk management system[77] Tax and Legal Matters - The total tax expense for the period was HKD 21,291,000, compared to HKD 6,381,000 in the previous year, reflecting a substantial increase[125] - The company faces various legal risks, including specific risks related to litigation, and provisions are recognized when the management believes that the outflow of resources embodying economic benefits is probable and can be reliably estimated[107] - Warranty provisions are based on management's estimates of future costs related to warranty claims, which may differ from actual outcomes[104] - The group is subject to income tax in multiple jurisdictions, and significant judgments are required in estimating tax liabilities[102] - The company has implemented plans to manage liquidity needs and improve financial conditions, ensuring the ability to continue as a going concern for at least twelve months after the reporting period[110]