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]