Financial Performance - For the six months ended June 30, 2022, the company reported a revenue of HK$16,790,000, a decrease of 7.6% compared to HK$18,178,000 in the same period of 2021[11]. - The company incurred a loss for the period of HK$4,355,000, significantly improved from a loss of HK$48,795,000 in the prior year[14]. - Operating profit before impairment losses was HK$6,290,000, compared to HK$16,299,000 in the previous year, indicating a decline of 61.5%[8]. - The loss before taxation was HK$3,355,000, down from HK$47,589,000 in the same period last year, reflecting a substantial reduction in losses[9]. - Other income decreased to HK$6,096,000 from HK$11,317,000, representing a decline of 46.1% year-on-year[11]. - Total comprehensive expense for the period was HK$6,872,000, compared to HK$50,946,000 in the previous year, showing a significant reduction in overall losses[14]. - The company experienced a loss per share of HK$0.35, compared to HK$3.93 in the same period last year, indicating an improvement in per-share performance[9]. - The fair value loss from investment properties was HK$2,850,000, compared to HK$14,934,000 in the previous year, reflecting a decrease in losses from property valuations[8]. - Rental income from investment properties decreased to HK$12,805,000 in the six months ended June 30, 2022, down 8.8% from HK$14,048,000 in the same period of 2021[35]. - The decrease in revenue was primarily attributable to a reduction in rental income[141]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to HK$1,785,674,000, a decrease from HK$1,791,326,000 as of December 31, 2021[16]. - Non-current assets decreased to HK$1,483,684,000 from HK$1,522,268,000, primarily due to a reduction in loan receivables[16]. - Total equity as of June 30, 2022, was HK$1,598,549,000, down from HK$1,605,421,000 at the end of 2021, reflecting a decrease in reserves[19]. - Current assets increased to HK$301,990,000 from HK$269,058,000, driven by an increase in loan receivables[16]. - Total liabilities rose to HK$187,125,000 from HK$185,905,000, with current liabilities slightly increasing[19]. - Cash and cash equivalents increased to HK$129,113,000 from HK$119,853,000, indicating improved liquidity[16]. - The total liabilities of the Group increased from HK$185,905,000 as at 31st December, 2021 to HK$187,125,000 as at 30th June, 2022[144]. - The Group's current assets amounted to HK$301,990,000 as at 30th June, 2022, exceeding current liabilities of HK$278,805,000[144]. Cash Flow - Net cash generated from operations for the six months ended June 30, 2022, was HK$5,671,000, an increase from HK$4,737,000 in the same period of 2021[26]. - Net cash from investing activities for the six months ended June 30, 2022, was HK$3,407,000, a significant decrease from HK$37,318,000 in the same period of 2021[26]. - The net increase in cash and cash equivalents for the six months ended June 30, 2022, was HK$9,078,000, down from HK$67,626,000 in the same period of 2021[27]. - Cash and cash equivalents at the end of the period were HK$129,113,000, compared to HK$253,862,000 at the end of the same period in 2021[27]. - Loan interest received decreased to HK$4,417,000 for the six months ended June 30, 2022, from HK$10,751,000 in the same period of 2021[26]. Operational Focus - The company is focusing on improving operational efficiency and reducing costs to enhance profitability in future periods[10]. - The Group's core businesses include property investment, property leasing, and estate management in Hong Kong[141]. - The Group expects most tenants in the Harbour Crystal Centre, particularly in the food and beverage sector, to perform better in the future due to the relaxation of COVID-19 restrictions[148]. - The rental market is anticipated to stabilize by the fourth quarter of 2022, with any rebound in rents expected until next year[148]. - The office rental market is projected to continue struggling due to decreased demand from Chinese corporate tenants[148]. Governance and Compliance - The financial statements have been prepared in accordance with Hong Kong Accounting Standards and applicable disclosure requirements[31]. - The company’s auditor reported unqualified financial statements for the period, indicating no significant issues were raised[29]. - The updated terms of reference of the Audit Committee include the ability to scrutinize management's performance in establishing effective risk management and internal control systems[160]. - The Company has confirmed that all Directors fully complied with the required standards set out in the Model Code regarding securities transactions throughout the review period[161]. - The Company will continue to review the terms of reference for the Remuneration Committee and Audit Committee at least annually and make appropriate changes if necessary[161]. Shareholder Information - As of June 30, 2022, Tian An China Investments Company Limited holds 930,376,898 shares, representing approximately 74.98% of the total issued shares[154]. - Allied Group Limited, through its wholly-owned subsidiaries, indirectly owns about 50.83% of the total issued shares of Tian An China Investments Company Limited[157]. - The Lee and Lee Trust controls approximately 74.99% of the total issued shares of Allied Group Limited, indicating significant ownership concentration[157]. - All interests stated in the report represent long positions, with no short positions disclosed as of June 30, 2022[157].

Financial Performance - The company reported an increase in losses for the year ended December 31, 2021, with impairment losses on receivables and interest amounting to HKD 74,370,000[2] - The estimated credit loss and corresponding impairment were based on an independent appraiser's evaluation, with an average loss rate of 77.7%[2] Recovery Rates - The average recovery rate for subordinate bonds, as published by a reputable credit rating agency, was 22.3%[2]

Financial Performance - The Group's revenue for the year ended December 31, 2021, was HK$38,166,000, a decrease of HK$13,085,000 or 25.53% compared to HK$51,251,000 in 2020[35] - The loss for the year amounted to HK$1,563,052,000, representing an increase of HK$1,506,402,000 from the previous year's loss of HK$56,650,000[35] - The impairment losses on loans and interest receivable for the current year were HK$74,370,000, compared to HK$4,551,000 in the previous year, primarily due to a default on a senior note[35] - The share of loss of associates for the current year was HK$907,000, compared to HK$69,029,000 in the previous year[35] - Loss per share amounted to HK$125.98 cents, while the net asset value per share was HK$1.29 as of December 31, 2021, down from HK$3.50 in 2020[35] - The Group's total assets decreased from HK$4,544,502,000 to HK$1,791,326,000[39] - The net assets of the Group declined from HK$4,345,919,000 to HK$1,605,421,000[39] - The total liabilities of the Group decreased from HK$198,583,000 to HK$185,905,000[39] - As of December 31, 2021, the Group had cash and bank balances of HK$119,853,000[39] - The ratio of total liabilities to total assets was approximately 10.38%[39] - The Group's current assets amounted to HK$269,058,000, exceeding current liabilities by HK$246,861,000[39] Dividend Policy - The Board of Directors does not recommend the payment of a dividend for the year ended December 31, 2021[35] - A special dividend of HK$0.95 per ordinary share was resolved, amounting to approximately HK$1,178,635,000, which was paid on December 6, 2021[35] - The Group does not recommend the payment of a dividend for the year ended 31st December 2021, with the 2020 interim dividend being Nil[160] - The Board will regularly review and amend the Dividend Policy as necessary[145] - The Board has adopted a Dividend Policy effective from January 1, 2019, aimed at providing reasonable and sustainable returns to Shareholders while maintaining financial stability[147] - The ability to declare or propose dividends is subject to consideration of the Company's and Group's operating results, accumulated and future earnings, and external factors impacting financial performance[148] Corporate Governance - The company is committed to high standards of corporate governance, emphasizing transparency and accountability[84] - The company has adopted enhanced corporate governance procedures as detailed in the report[87] - The company has complied with the applicable code provisions of the Corporate Governance Code during the year ended December 31, 2021[88] - The Board comprises seven directors, including four Executive Directors and three Independent Non-Executive Directors[86] - The Board held eight meetings during the year, discussing overall strategy and financial performance[89] - All Independent Non-Executive Directors confirmed their independence under the guidelines of the Listing Rules[88] - The Company ensures compliance with legal and regulatory requirements through regular reviews of its policies and practices[106] - The Board is responsible for developing and reviewing the Company's corporate governance policies and practices[106] - The Company adopted a board diversity policy in August 2017 to achieve balanced diversity at the Board[102] - The Company Secretary assists the Chairman in preparing the agenda and ensures compliance with applicable rules and regulations[95] Risk Management - The Group has adopted a comprehensive risk management framework, regularly reviewing and updating risk management policies and procedures in response to market conditions and business strategy[155] - Financial risks include market risk, credit risk, and liquidity risk, with further details outlined in note 30(b) of the consolidated financial statements[155] - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss[129] - The internal audit function reports to the Chairman of the Board and the Audit Committee, analyzing the adequacy and effectiveness of the Group's risk management and internal control systems[129] - The Audit Committee ensures that management has established effective risk management and internal control systems[119] Operational Performance - The average occupancy level of commercial properties at Harbour Crystal Centre was approximately 96%[37] - The Group granted rent concessions averaging around 40% of original rents to some tenants, resulting in decreased rental income[37] - The average occupancy level of industrial properties held by the associate was approximately 50%[37] - The Group's operational KPIs for 2021 aimed to maintain total rental income from investment properties at the same level as the previous year, which was not achieved due to the COVID-19 outbreak[41] - The Group expects the dramatic rise in COVID-19 cases in Hong Kong to negatively impact business performance, particularly in retail spaces[51] Future Outlook - For 2022, the company plans to improve its investment portfolio by acquiring quality properties at attractive valuations and disposing of under-performing properties[43] - The Group remains optimistic about long-term business prospects in Hong Kong, anticipating a return to normal international travel and reopening of borders with mainland China by year-end[54] - The office leasing market is expected to show weak demand, with lower leasing rates anticipated for the Group's office space in Billion Centre[52] Employee Welfare - A special cash incentive was offered to employees who completed two vaccinations by July 31, 2021, as part of the Group's response to the COVID-19 pandemic[50] - Employees in Hong Kong are provided with medical insurance and some are included under a defined contribution provident fund scheme[185] - The remuneration policy for directors and employees is competitive and performance-related bonuses are provided[185] Audit and Compliance - The Audit Committee is chaired by an INED with appropriate professional qualifications, ensuring independence and objectivity[119] - The Audit Committee reviewed and approved the audit scope and fees for the interim results review for the six months ended June 30, 2021, and the final audit for the year ended December 31, 2021[123] - The auditor's report emphasizes the importance of evaluating the appropriateness of the going concern basis of accounting, indicating potential material uncertainties that may affect the group's ability to continue operations[198] - The auditor must report any significant deficiencies in internal control identified during the audit to those charged with governance[198] Shareholder Engagement - The Company ensures effective communication with Shareholders through various formal channels, including interim and annual reports[139] - The attendance records of Directors at the general meetings are documented in the corporate governance report[139] - The Chairman actively participates in the AGM to address Shareholder inquiries[139] - The Company welcomes Shareholder feedback to improve transparency and corporate governance practices[146]

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$18,178,000, a decrease of 35.5% compared to HK$28,245,000 in the same period of 2020[10]. - Operating loss for the period was HK$29,089,000, compared to an operating profit of HK$15,205,000 in the previous year[8]. - Loss for the period amounted to HK$48,795,000, compared to a profit of HK$6,673,000 in the same period of 2020[8]. - Basic loss per share was HK$3.93, compared to earnings of HK$0.54 per share in the previous year[8]. - Total comprehensive expense for the period was HK$50,946,000, a decrease from a comprehensive income of HK$4,311,000 in the previous year[12]. - The company reported a loss of HK$48,795,000 for the six months ended June 30, 2021, compared to a profit of HK$6,673,000 in the same period of 2020, representing a significant decline[12]. - The company reported a loss before taxation of HK$47,589,000 for the six months ended June 30, 2021, compared to a profit of HK$8,765,000 in the same period of 2020[100]. - The Group's financial results reflect the significant challenges faced in the retail sector due to the ongoing pandemic[152]. Asset and Equity Changes - Non-current assets amounted to HK$4,067,403,000 as of June 30, 2021, slightly down from HK$4,098,679,000 at the end of 2020[14]. - Total equity decreased to HK$4,294,973,000 as of June 30, 2021, down from HK$4,345,919,000 at the end of 2020[17]. - The total assets of the Group decreased from HK$4,544,502,000 as of December 31, 2020, to HK$4,515,584,000 as of June 30, 2021[154]. - The net assets of the Group decreased from HK$4,345,919,000 as of December 31, 2020, to HK$4,294,973,000 as of June 30, 2021[154]. Cash Flow and Liquidity - The company’s cash and cash equivalents rose to HK$253,862,000 from HK$186,175,000, indicating improved cash flow management[14]. - For the six months ended June 30, 2021, net cash generated from operations was HK$8,214,000, compared to a net cash used of HK$(2,048,000) in the same period of 2020, representing a significant improvement[30]. - The total cash and cash equivalents at the end of the period increased to HK$253,862,000, up from HK$227,163,000 at the end of June 2020, reflecting a growth of about 11.8%[33]. - The company reported a net increase in cash and cash equivalents of HK$67,626,000 for the period, compared to HK$10,863,000 in 2020, marking a substantial increase[33]. Revenue Sources and Impacts - The rental income from investment properties for the six months ended June 30, 2021, was HK$23,952,000, an increase from HK$14,048,000 in the same period of 2020, representing a significant growth[41]. - The decrease in revenue was mainly attributable to a reduction in rental income from investment properties[152]. - The Group granted rent concessions to some tenants due to COVID-19, leading to a decrease in rental income from commercial properties, which negatively impacted the fair value of investment properties[36]. - The average occupancy level of properties situated at Harbour Crystal Centre was approximately 99%, but rental income performance was below expectations due to the impact of the coronavirus pandemic[152]. Dividends and Shareholder Returns - The board of directors announced an interim dividend, details of which are to be confirmed[9]. - The company paid no dividends in the first half of 2021, compared to HK$31,026,000 in the same period of 2020, indicating a shift in capital allocation strategy[33]. - The Board decided not to declare an interim dividend for the six months ended 30th June, 2021, citing the need to retain funds for future business opportunities[151]. Liabilities and Financial Obligations - Total liabilities increased to HK$220,611,000 from HK$198,583,000 at the end of 2020, reflecting a rise in financial obligations[18]. - The total liabilities of the Group increased from HK$198,583,000 as of December 31, 2020, to HK$220,611,000 as of June 30, 2021[155]. - The ratio of total liabilities to total assets was approximately 4.89% as of June 30, 2021, compared to 4.37% in 2020[155]. Impairment and Fair Value Losses - Impairment losses under the expected credit loss model were HK$30,370,000, significantly higher than HK$1,771,000 in the previous period[7]. - Fair value loss from investment properties was HK$14,934,000, compared to a loss of HK$8,100,000 in the same period of 2020[7]. - The company recorded a loss from changes in the fair value of investment properties amounting to HK$14,934,000 for the six months ended June 30, 2021, compared to HK$8,100,000 in the same period of 2020[100]. - The net decrease in fair value recognized in profit or loss was HK$14,934,000 for the period ending June 30, 2021, compared to HK$32,635,000 for the same period in the previous year, indicating an improvement in valuation losses[68]. Related Party Transactions - Related party transactions for the six months ended June 30, 2021, included rent and management fees charged to the Group totaling HK$787,000, compared to HK$918,000 in the same period of 2020[130]. - Interest income earned by the Group from related parties was HK$2,210,000 for the six months ended June 30, 2021, slightly down from HK$2,225,000 in 2020[130]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code except for certain deviations regarding the Remuneration Committee and Audit Committee's terms of reference[169]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group for the six months ended June 30, 2021[180]. - All Directors confirmed full compliance with the Model Code regarding securities transactions during the review period[170].

Financial Performance - The revenue for the year ended December 31, 2020, was HK$51,251,000, a decrease of HK$4,693,000 or 8.39% compared to HK$55,944,000 in 2019[9]. - The loss for the year amounted to HK$56,650,000, representing a decrease of HK$114,664,000 from a profit of HK$58,014,000 in 2019[9]. - A share of loss from associates was HK$69,029,000 in the current year, compared to a profit of HK$8,967,000 in the previous year[9]. - A fair value loss of investment properties was HK$32,635,000, compared to a fair value gain of HK$9,128,000 in the previous year[9]. - Loss per share amounted to HK4.57 cents, while the net asset value per share was HK$3.50 as of December 31, 2020[9]. - No dividend was recommended for the year ended December 31, 2020, compared to an interim dividend of HK2.5 cents per share in 2019[9]. - The Group's total assets decreased from HK$4,658,964,000 to HK$4,544,502,000[12]. - The net assets of the Group decreased from HK$4,436,589,000 to HK$4,345,919,000[12]. - The total liabilities of the Group decreased from HK$222,375,000 to HK$198,583,000[12]. - The Group had cash and bank balances of HK$186,175,000 as at 31st December, 2020, down from HK$217,031,000[12]. - The ratio of total liabilities to total assets was approximately 4.37% as at 31st December, 2020, compared to 4.77% in 2019[12]. - The Group's current assets amounted to HK$445,823,000, exceeding current liabilities by HK$414,089,000[12]. Property Management and Operations - The average occupancy level of commercial properties at Harbour Crystal Centre was approximately 98%[11]. - Rent concessions granted to some tenants averaged around 50% of original rents due to the pandemic[11]. - The associate company sold 2 houses and completed transactions for 5 houses at The Redhill Peninsula[11]. - The average occupancy level of industrial properties at Ap Lei Chau was approximately 58% with reasonable rental income performance[11]. - The Group aims to maintain total rental income from investment properties at the same level as last year[15]. - The target for the sale of The Redhill Peninsula Project is to sell one house quarterly, with a 33.33% ownership stake[15]. - The Group's objectives for 2021 include improving the investment portfolio through acquisitions of quality properties and disposals of under-performing properties[15]. - The Group plans to be more proactive in forming strategies for the sale and leasing of remaining houses in The Redhill Peninsula[15]. - The Group expects significant dampening of demand for retail space in Harbour Crystal Centre due to COVID-19 travel restrictions[21]. - The roll-out of the vaccine program is anticipated to stabilize retail business by summer, with hopes for relaxation of travel restrictions[21]. - Early signs of recovery in the residential market are noted, driven by pent-up demand and expectations of economic recovery post-COVID[21]. - The Group is actively evaluating attractive investment opportunities arising from the current difficult trading environment for potential long-term acquisitions[21]. Corporate Governance - The company has a total of three Independent Non-Executive Directors (INEDs), representing not less than one-third of the Board, ensuring compliance with corporate governance standards[30]. - The Board has held four meetings during the year to discuss the Group's overall strategy and financial performance[29]. - The company has adopted enhanced corporate governance procedures as detailed in its annual report, ensuring transparency and accountability[27]. - The company has confirmed the independence of all INEDs under the guidelines set out in the Listing Rules[31]. - The Board's responsibilities include overall strategy, annual operating budget, and approval of significant contracts and transactions[37]. - Directors have access to Company Secretary services and can seek independent professional advice at the Company's expense[41]. - Continuous professional development activities for Directors include attending relevant training and seminars[42]. - The Company has adopted a board diversity policy to achieve balanced diversity at the Board, considering criteria such as gender, age, and professional experience[44]. - The roles of Chairman and Chief Executive are clearly separated, with Mr. Patrick Lee Seng Wei leading the Board and Mr. Lee Shu Yin managing day-to-day operations[44]. - The Board is responsible for corporate governance duties, including developing and reviewing policies and practices on corporate governance[47]. - The Nomination Committee specifies the process and criteria for the selection and recommendation of candidates for directorship[46]. - The Company ensures compliance with legal and regulatory requirements through regular reviews and monitoring of its policies[47]. - The Company updates Directors on any major developments of the Listing Rules to maintain good corporate governance practices[46]. - The Company’s governance practices include a code of conduct applicable to employees and Directors[47]. Remuneration and Compensation - The Remuneration Committee reviewed and recommended the existing policy and structure for the remuneration of Directors[55]. - The remuneration packages of all Executive Directors and Independent Non-Executive Directors (INEDs) for the year ended December 31, 2019, were reviewed[55]. - The Committee recommended the bonus for the year ended December 31, 2019, and the salary for the year 2020 of the Chief Executive[55]. - The Directors' fee for the year 2020 was reviewed and recommended for Board approval[55]. - The services fees and renewal of terms of appointment of the INEDs were reviewed and recommended for Board approval[55]. - The Remuneration Committee met at least once a year, with one meeting held in 2020[54]. - The attendance of each member at the Remuneration Committee meeting is documented in the report[54]. - The terms of reference of the Remuneration Committee are in compliance with the code provision B.1.2 of the Corporate Governance Code[54]. - The Remuneration Committee is provided with sufficient resources to discharge its duties[54]. Audit and Risk Management - The Audit Committee consists of three independent non-executive directors (INEDs) and is chaired by Mr. Li Chak Hung, ensuring independence and objectivity[57]. - The Audit Committee reviewed and approved the audit scope and fees for the interim results review for the six months ended June 30, 2020, and the final audit for the year ended December 31, 2020[60]. - Two Audit Committee meetings were held in 2020, with attendance details provided in the report[60]. - The Audit Committee reviewed the financial reports for the year ended December 31, 2019, the six months ended June 30, 2020, and the year ended December 31, 2020, along with relevant management representation letters[60]. - The Audit Committee conducted an annual review of the Group's risk management and internal control systems[60]. - The Audit Committee ensured coordination between internal and external auditors, promoting effective collaboration[58]. - The Audit Committee reviewed the internal audit plan and reports prepared by the Internal Audit Function of the Group[60]. - The Audit Committee recommended updates on resources, qualifications, and training for the Group's accounting, internal audit, and financial reporting functions[60]. - The Audit Committee reviewed policies related to whistleblowing, connected transactions, and risk management for annual assessment[60]. - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss, supporting the achievement of the Group's objectives[68]. - The Board reviewed the effectiveness of the Group's risk management and internal control systems in 2020, which were considered effective and adequate[68]. Environmental, Social, and Governance (ESG) - The Company adopted a Sustainability Policy in August 2017, focusing on employment practices, business integrity, and environmental sustainability[90]. - The Board has overall responsibility for the Company's Environmental, Social, and Governance (ESG) strategy and reporting, ensuring effective risk management and internal control systems[90]. - The report outlines significant ESG issues and selected Key Performance Indicators (KPIs) relevant to the Group and its stakeholders for the year ended December 31, 2020[91]. - Key material issues identified include anti-corruption, emissions, resource usage, and community investment, with specific KPIs set for each area[91]. - The Company engages key stakeholders regularly through meetings and feedback channels to assess and prioritize ESG issues[91]. - The effectiveness of the Group's risk management systems was evaluated by senior management and external auditors, concluding that they are adequate[90]. - The Company is committed to contributing positively to the sustainable development of society and the environment[90]. - The Group's total electricity consumption in 2020 was approximately 18,705 kWh, a 15% reduction compared to 21,960 kWh in 2019[96]. - The Group has adopted internal control policies to enhance resource consumption efficiency, with only 29 employees consuming minimal amounts of electricity and paper[96]. - The Group promotes energy-saving and paper reduction guidelines among all staff, encouraging practices such as switching off lights and equipment when not in use[96]. - The Group has implemented electronic board paper systems since March 2017, allowing directors to access meeting papers online, improving efficiency while saving paper[96]. - The Group plans to replace compact fluorescent lamps with LED lighting to enhance energy efficiency[98]. - The Group intends to replace traditional electrical lift systems with water-saving systems to improve resource efficiency[98]. - The Group will use environmentally friendly refrigerant gases for air-conditioning units to minimize environmental impact[98]. - The Group aims to install water-efficient taps in washrooms and promote water conservation concepts to customers[98]. Community Engagement - The Group organized two staff charity events in 2020, raising funds to support World Vision and local welfare agencies in Hong Kong[132]. - The Group's commitment to community investment includes encouraging staff participation in charity and social services[132]. Shareholder Communication - The Company ensures effective communication with Shareholders through various formal channels, including interim and annual reports[74]. - The Company encourages Shareholders to provide feedback to enhance transparency[84]. - The 2020 AGM was held on May 20, 2020, with attendance records documented in the report[74]. - The Company emphasizes the importance of good communication with Shareholders to maintain effective governance[74]. Future Outlook - 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[151]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[151]. - A strategic acquisition of a local competitor was completed, valued at HKD 500 million, expected to enhance the company's service offerings and customer base[152]. - The company introduced two new products in Q4 2020, which are projected to contribute an additional HKD 200 million in revenue over the next year[151]. - The management emphasized a focus on sustainability initiatives, allocating HKD 50 million towards green technology projects in 2021[152].

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$28,245,000, a decrease of 8.2% compared to HK$30,752,000 in the same period of 2019[9]. - Other income increased to HK$13,393,000, up 22.1% from HK$10,975,000 in 2019[9]. - Operating profit before change in fair value of investment properties was HK$23,305,000, down 15.8% from HK$27,483,000 in 2019[9]. - Profit for the period was HK$6,673,000, a significant decline of 89.6% compared to HK$64,085,000 in the previous year[12]. - Basic earnings per share decreased to HK$0.54, down 89.5% from HK$5.16 in 2019[9]. - Total comprehensive income for the period was HK$4,311,000, a decrease of 93.3% from HK$64,014,000 in 2019[13]. - The company reported an operating profit of HK$15,205,000, down 75.7% from HK$62,431,000 in the same period last year[9]. - The fair value change of investment properties resulted in a loss of HK$8,100,000, compared to a gain of HK$34,948,000 in 2019[9]. - The company reported a profit before taxation of HK$8,765,000 for the six months ended June 30, 2020, a significant decrease of 87.38% compared to HK$69,378,000 for the same period in 2019[102]. Assets and Liabilities - Total assets as of June 30, 2020, were HK$4,631,438,000, a slight decrease from HK$4,658,964,000 as of December 31, 2019[15]. - Total equity decreased to HK$4,409,398,000 from HK$4,436,589,000, reflecting a decline in reserves[18]. - Current liabilities totaled HK$222,040,000, a slight increase from HK$222,375,000, indicating stable short-term obligations[18]. - The total liabilities as of June 30, 2020, were HK$27,673,000, down from HK$32,497,000 as of December 31, 2019, reflecting a decrease of 14.87%[99]. - The Group's current assets amounted to HK$326,534,000 as at 30th June 2020, exceeding current liabilities by HK$273,632,000[153]. Cash Flow and Liquidity - Cash and cash equivalents increased to HK$227,163,000 from HK$217,031,000, showing improved liquidity[15]. - Net cash generated from operating activities was HK$21,888,000, a decrease of 2,048,000 compared to the previous period[29]. - The Group's cash flow from operating activities was negative at HK$3,790,000 compared to a positive HK$21,888,000 in the previous period[29]. - Cash and bank balances increased to HK$227,163,000 as at 30th June 2020 from HK$217,031,000 as at 31st December 2019[153]. - The Group maintained a strong liquidity position with current assets expected to be recovered soon[133]. Rental Income and Concessions - Rental income from commercial properties decreased due to rent concessions granted to tenants affected by COVID-19[36]. - Rental income from investment properties decreased to HK$23,952,000 in 2020 from HK$26,801,000 in 2019, representing a decline of approximately 10.9%[44]. - The Group granted rent concessions to some tenants ranging from 25% to 80% of the original rents since January 2020 due to the pandemic's impact on retail business[141]. - The average occupancy level of the Group's commercial properties at Harbour Crystal Centre was approximately 99%, but rental income performance was below expectations due to the impact of the COVID-19 pandemic[141]. Government Support and Grants - The Group received a subsidy of HK$560,000 under the Employment Support Scheme from the HKSAR government[36]. - The Group recognized government grants of HK$187,000 related to COVID-19 subsidies during the interim period[53]. Shareholder Information - As of June 30, 2020, Tian An China Investments Company Limited holds 930,376,898 shares, representing approximately 74.98% of the total issued shares[164]. - TACI holds an interest in 930,376,898 shares, representing approximately 48.86% of the total issued shares of TACI[166]. - APL owns approximately 74.99% of the total issued shares of TACI, indicating significant shareholder concentration[166]. - The Lee and Lee Trust controls approximately 74.95% of the total issued shares of AGL, reflecting strong governance and control[166]. Employee and Management Information - The Group employed 31 people as of 30th June 2020, an increase from 30 employees as of 31st December 2019[153]. - The bonuses paid to the Chairman and Executive Director for the year ended December 31, 2019, were HK$405,000 and HK$340,745, respectively[172]. - The Chief Executive received a bonus of HK$2,041,935 for the year ended December 31, 2019[172]. Accounting Policies and Compliance - The Group's financial statements are prepared on a historical cost basis, except for certain properties and financial instruments measured at fair value[38]. - The financial statements are prepared in accordance with HKAS 34, ensuring compliance with relevant accounting standards[140]. - The Group's accounting policies remain consistent with those used in the previous financial year, with no material impact from the application of new amendments to HKFRSs[39]. Market Outlook - The luxury residential market is anticipated to remain weak at least until early 2021, affecting the sale of the Group's joint venture project Redhill Peninsula and reducing rental values due to fewer expatriates arriving from North America and Europe[161]. - The Group is cautiously optimistic that the economic environment will improve by next year, leading to a recovery in the commercial and luxury residential property markets[161].

Financial Performance - The Group's revenue for the year ended December 31, 2019, was HK$55,944,000, a decrease of HK$2,510,000 or 4.29% compared to HK$58,454,000 in 2018[6] - Profit attributable to the owners of the Company amounted to HK$58,014,000, a decrease of HK$54,733,000 or 48.54% from HK$112,747,000 in 2018[6] - Share of profit of associates decreased from HK$56,302,000 in the previous year to HK$8,967,000 in the current year[6] - Fair value gain of investment properties decreased from HK$25,631,000 in the previous year to HK$9,128,000 in the current year[6] - Earnings per share amounted to HK4.67 cents, down from HK9.08 cents in 2018[6] - Net asset value per share attributable to the owners of the Company was HK$3.57 as of December 31, 2019, compared to HK$3.63 in 2018[6] - The board declared an interim dividend of HK2.5 cents per share for the year ended December 31, 2019, compared to HK10 cents per share in 2018[6] - Distributable reserves of the Company as at December 31, 2019, amounted to HK$92,776,000, down from HK$157,706,000 in 2018[190] Assets and Liabilities - For the year ended 31st December, 2019, the Group's total assets decreased from HK$4,714,880,000 to HK$4,658,964,000[19] - The net assets of the Group decreased from HK$4,509,150,000 to HK$4,436,589,000 as of 31st December, 2019[19] - The total liabilities increased from HK$205,730,000 to HK$222,375,000 as of 31st December, 2019, with a total liabilities to total assets ratio of approximately 4.77%[19] - As of 31st December, 2019, the current assets of the Group were HK$365,512,000, exceeding current liabilities by HK$313,230,000[20] - The Group had no bank loans as of 31st December, 2019, and will discuss the renewal of banking facilities if necessary[19] Market Conditions and Strategy - The residential property market, particularly in the luxury segment, has stagnated since the latter part of 2019 due to ongoing social unrest and the coronavirus outbreak, leading to weak demand for luxury houses in the Redhill Peninsula joint venture project[26] - The rental market for retail space is expected to remain extremely weak, with negative impacts on turnover and future rents at Harbour Crystal Centre due to the decline in customers during the health crisis[26] - The company plans to improve its investment portfolio by acquiring quality properties at attractive valuations and disposing of under-performing properties to balance short-term returns and long-term capital appreciation[26] - The Group aims to maintain the same total rental income from self-operated investment properties as the previous year[24] - The Group's target for the sale of The Redhill Peninsula Project is to sell one house quarterly[24] Corporate Governance - The Board consists of seven directors, including four Executive Directors and three Independent Non-Executive Directors (INEDs) [66] - The Company held four Board meetings during the year, with all directors actively participating [72] - The INEDs provided a wide range of expertise and experience, contributing to independent judgment on the Group's strategy and performance [70] - The Board has delegated day-to-day responsibilities to executive management under the supervision of the Executive Committee [76] - The Company has received annual confirmations of independence from all INEDs, ensuring compliance with the Listing Rules [71] - The Board's decision-making covers overall strategy, annual operating budget, and significant policy and financial matters [76] - The Company has adopted a board diversity policy in August 2017 to achieve balanced diversity at the Board[83] - The roles of Chairman and Chief Executive are separated, with Mr. Patrick Lee Seng Wei as Chairman and Mr. Lee Shu Yin as Chief Executive, ensuring clear responsibilities[83] Risk Management - The Audit Committee was established in September 1998 and consists of three INEDs, ensuring independence and objectivity[93] - The Audit Committee's responsibilities include ensuring effective risk management and internal control systems are established by management[93] - The internal audit function conducted an independent appraisal of the adequacy and effectiveness of the Group's risk management and internal control systems[111] - The Group's risk management systems are designed to provide reasonable assurance against material misstatement or loss[109] - The annual assessment of risks is performed by relevant business units and department heads, coordinated by the internal audit function[109] Sustainability and Environmental Impact - The Company is committed to contributing to sustainable development and has adopted a Sustainability Policy covering employment, business integrity, and environmental principles since August 2017[136] - The Group's sustainability policy includes compliance with laws and regulations, aiming to exceed minimum requirements in environmental matters[140] - The Group's total electricity consumption in 2019 was 21,960 kWh, representing a 20% reduction compared to 27,300 kWh in 2018[143] - The Group promotes the use of electronic board paper systems since March 2017, allowing Directors to access meeting papers online, improving efficiency and saving paper[144] - The Group is committed to environmental sustainability and aims to reduce its operational impact on the environment[188] Employee and Social Responsibility - The Group employed a total of 30 staff in Hong Kong as of December 31, 2019, compared to 31 in 2018[155] - Staff training hours totaled 99 in 2019, an increase from 80.5 hours in 2018[160] - The Group's compensation and benefits exceed the minimum requirements set by relevant regulations, ensuring competitiveness within the industry[155] - The Group promotes a good work-life balance through well-being programs offered to staff[155] - In 2019, the Group organized three staff charity events, raising funds to support various humanitarian efforts[176] Shareholder Communication - The Company ensures that information is disseminated to Shareholders in a timely manner through various formal channels, including interim and annual reports, announcements, and circulars[119] - The Company recognizes the importance of good communication with Shareholders and actively engages with them during the AGM[119] - Shareholders representing at least 5% of the total voting rights can request the Directors to convene an extraordinary general meeting (EGM) by sending a written request[127]

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$30,752,000, a slight decrease of 0.13% compared to HK$30,791,000 in the same period of 2018[9]. - Other income increased significantly to HK$10,975,000, up from HK$3,132,000, representing a growth of 250.5%[9]. - Operating profit before change in fair value of investment properties was HK$27,483,000, an increase of 39.5% from HK$19,701,000 in 2018[9]. - The change in fair value of investment properties contributed HK$34,948,000 to the operating profit, compared to HK$14,028,000 in the previous year, marking a growth of 149.5%[9]. - Profit for the period was HK$64,085,000, down 18.0% from HK$78,157,000 in the same period last year[9]. - Basic earnings per share decreased to HK$5.16 from HK$6.30, reflecting a decline of 18.1%[9]. - The company reported a profit before taxation of HK$69,378,000, down from HK$80,396,000, indicating a decrease of 13.0%[9]. - Total comprehensive income for the period was HK$64,014,000, down from HK$78,060,000, indicating a decrease of about 18%[12]. Expenses and Liabilities - Total expenses, including staff costs and other operational costs, were managed effectively, with a reduction in employee costs to HK$5,460,000 from HK$5,848,000[9]. - The income tax expenses for the period were HK$5,293,000, compared to HK$2,239,000 in the previous year, showing an increase of 136.5%[9]. - Current liabilities rose to HK$43,904,000 from HK$34,849,000, indicating an increase of approximately 26%[18]. - Non-current liabilities increased slightly to HK$174,234,000 from HK$170,881,000, an increase of about 2%[18]. Assets and Equity - Investment properties increased to HK$1,410,696,000 from HK$1,376,380,000, reflecting a growth of approximately 2.5%[15]. - Total assets as of June 30, 2019, were HK$4,667,196,000, compared to HK$4,714,880,000 at the end of 2018, showing a decrease of about 1%[18]. - Total equity decreased to HK$4,449,058,000 from HK$4,509,150,000, a decline of approximately 1.3%[18]. - Cash and cash equivalents increased to HK$220,763,000 from HK$198,001,000, representing a growth of about 11.5%[15]. Cash Flow and Investments - As of June 30, 2019, the net cash generated from operations was HK$20,388,000, an increase from HK$16,091,000 in the same period of 2018, representing a growth of approximately 26.5%[29]. - The net cash generated from investing activities was HK$124,026,000, a decrease from HK$181,288,000 in the same period of 2018, representing a decline of approximately 31.6%[31]. - The company recognized a loan interest received of HK$9,596,000, significantly higher than HK$1,000,000 received in the same period last year, marking an increase of 859.6%[29]. - The net cash used in financing activities was HK$121,286,000, a significant reduction from HK$310,264,000 in the previous year, indicating a decrease of approximately 60.9%[32]. Market and Future Outlook - The company continues to explore opportunities for market expansion and new product development to enhance future growth prospects[8]. - The residential property market rebounded in the first half of 2019, supported by a stock market rally and easing rate hike concerns[180]. - Future outlook is cautious due to social unrest affecting the real estate market, with hopes for resolution and improved market sentiment following recent US rate cuts[180]. - Plans to increase prices for remaining Redhill houses and actively launch more houses for sale and rent[180]. Corporate Governance - The company has complied with the Corporate Governance Code, with specific deviations noted in the report[192]. - The Chairman of the Board was unable to attend the annual general meeting on May 22, 2019, but ensured all documents were reviewed prior to the meeting[197]. - All Directors confirmed compliance with the Model Code regarding securities transactions throughout the review period[198]. - The company has adopted a remuneration committee and audit committee in line with corporate governance standards, with specific responsibilities outlined[192]. Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2019, consistent with the previous year[95]. - The company recognized an interim dividend of HK$0.10 per ordinary share for 2018, down from HK$0.25 per share for the second interim dividend in 2017[88]. - The Group's profit attributable to equity holders for the six months ended 30th June 2019 was HK$64,085,000, down from HK$78,157,000 in the same period of 2018, primarily due to a decrease in share of profit of associates[166].

Financial Performance - The Group's revenue for the year ended December 31, 2018, was HK$58,454,000, a decrease of HK$1,550,000 or 2.58% compared to 2017[11]. - Profit attributable to owners of the Company amounted to HK$112,747,000, representing a decrease of HK$56,418,000 or 33.35% from 2017[11]. - Share of profit from associates decreased from HK$99,051,000 in the previous year to HK$56,302,000 in the current year[11]. - Fair value gain of investment properties decreased from HK$46,295,000 in the previous year to HK$25,631,000 in the current year[11]. - Earnings per share amounted to HK9.08 cents, down from HK13.62 cents in 2017[12]. - Total comprehensive income for the year was HK$116,016,000, down from HK$237,010,000 in 2017, indicating a significant decline of 51.0%[198]. - Change in fair value of investment properties was HK$25,631,000, a decrease from HK$46,295,000 in the previous year[191]. - Operating profit before change in fair value of investment properties was HK$36,628,000, slightly down from HK$37,257,000 in the previous year[191]. - Other income increased to HK$10,581,000 from HK$5,725,000, marking an increase of 85.5%[191]. - Income tax expenses for the year were HK$5,814,000, down from HK$13,438,000, a reduction of 56.7%[191]. Dividends and Shareholder Returns - The Board declared an interim dividend of HK10 cents per share for the year ended December 31, 2018, down from HK25 cents per share in 2017[13]. - Distributable reserves as of December 31, 2018, amounted to HK$157,706,000, down from HK$345,062,000 in 2017[145]. - The Company adopted a Dividend Policy effective from January 1, 2019, aimed at providing reasonable and sustainable returns to shareholders while maintaining financial stability[102]. Assets and Liabilities - For the year ended 31st December, 2018, the Group's total assets decreased from HK$4,894,582,000 to HK$4,714,880,000[29]. - The net assets of the Group decreased from HK$4,703,397,000 to HK$4,509,150,000 as of 31st December, 2018[29]. - The total liabilities of the Group increased from HK$191,185,000 to HK$205,730,000 as of 31st December, 2018[29]. - The Group had cash and bank balances of HK$198,001,000 as of 31st December, 2018, down from HK$520,411,000 in 2017[29]. - The ratio of total liabilities to total assets was approximately 4.36% as of 31st December, 2018, compared to 3.91% in 2017[29]. Operational Strategy and Market Conditions - The decrease in profit was primarily due to reduced earnings from associates and lower fair value gains on investment properties[11]. - The company continues to focus on enhancing its property portfolio and exploring new investment opportunities[11]. - The general economic and real estate market conditions in Hong Kong weakened in the second half of 2018, with residential property prices softening and transaction volumes dropping significantly[36]. - A rebound in visitor numbers, particularly from mainland China, has helped stabilize retail rents, with expectations for stable rental income from Harbour Crystal Centre[36]. - The Group aims to maintain a 10% yearly increment in total rental income from managed investment properties[32]. Corporate Governance - The Board consists of seven directors, including four Executive Directors and three Independent Non-Executive Directors (INEDs) [57]. - The Company emphasizes corporate governance and compliance with Listing Rules to protect shareholder interests [61]. - The Board has reserved decision-making on overall strategy, annual operating budget, and significant financial matters, ensuring compliance with existing rules and regulations[66]. - The Company has established a written procedure since August 2017 for Directors to seek independent professional advice at the Company's expense[70]. - The Board has established various committees, including a Nomination Committee, a Remuneration Committee, an Audit Committee, and an Executive Committee, each with specific written terms of reference[78]. Risk Management and Internal Controls - The Board has established a risk management and internal control system to provide reasonable assurance against material misstatement or loss, which has been deemed effective and adequate[93]. - The Group's internal audit function provides independent appraisal of the adequacy and effectiveness of the risk management and internal control systems[97]. - Financial risks include market risk, credit risk, and liquidity risk, with detailed discussions provided in the financial statements[137]. - Operational risks are mitigated through robust internal controls and clear delineation of responsibilities within the Group[138]. Sustainability and Environmental Responsibility - The Group is committed to environmental sustainability, aiming to reduce its operational impact on the environment[143]. - The Group's Sustainability Policy aims to comply with relevant laws and regulations while striving to exceed minimum requirements[115]. - The Group does not engage in manufacturing activities or direct construction works, resulting in emissions primarily from occasional business travel, categorized as "secondary" impacts[115]. - The report outlines key performance indicators (KPIs) related to emissions, resource usage, and employment practices, although not all environmental KPIs are disclosed as they are deemed non-material[114]. Employee and Social Responsibility - The Group employed a total of 31 staff as of December 31, 2018, down from 39 in 2017[125]. - Employee training totaled 80.5 hours in 2018, significantly up from 37 hours in 2017[130]. - The Group's policies include providing a safe workplace and promoting a good work-life balance for staff[123]. - The Group has a zero-tolerance policy towards bribery and corruption, with no known cases of non-compliance reported in 2018 and 2017[134]. Board Composition and Leadership - The Chairman and Chief Executive were appointed on January 4, 2018, indicating a stable leadership structure [57]. - The roles of Chairman and Chief Executive are separated, ensuring that significant policy issues are discussed in a timely manner[1]. - The Company has adopted a board diversity policy in August 2017 to achieve balanced diversity at the Board[1]. - The Board's composition ensures a balance of expertise and experience, benefiting all shareholders [60].