Financial Position - As of June 30, 2023, the net carrying amount of goodwill is HK$18,476,000, with no impairment losses recognized during the period[13][15]. - The carrying amount of interests in associates at the end of the period is HK$157,477,000, reflecting a share of post-acquisition gains of HK$6,637,000[19]. - The Group's total assets as of June 30, 2023, are reported at HK$1,000,000,000, reflecting a stable financial position[7]. - The Group's total equity as of June 30, 2023, was approximately HK$3,801.88 million, down from HK$3,869.61 million as of December 31, 2022[119]. - The Group's net current assets as of June 30, 2023, were approximately HK$2,410.39 million, with a current ratio of approximately 12.99% compared to 8.94% as of December 31, 2022[119]. - The Group's cash and cash equivalents included bank deposits of RMB25,599,000 (equivalent to HK$27,672,000) as of 30 June 2023, reflecting currency exchange restrictions[92]. - The Group's total trade and other receivables as of June 30, 2023, were HK$256,553,000, compared to HK$254,640,000 as of December 31, 2022, showing a slight increase[79]. - The Group's total trade and other payables amounted to HK$106.92 million as of June 30, 2023, a significant decrease from HK$219.26 million as of December 31, 2022[128]. Revenue and Profitability - The Group generated a total turnover of approximately HK$1,539.64 million for the six months ended June 30, 2023, representing an increase of 152.5% compared to HK$609.71 million in 2022[62]. - The operating loss for the same period was approximately HK$8.19 million, a decrease of approximately 110.5% from an operating income of HK$77.99 million in 2022[62]. - The net loss recorded was approximately HK$59.90 million, down from HK$123.11 million in 2022, indicating a significant reduction in losses[62]. - Basic and diluted loss per share were 0.13 Hong Kong cents, compared to 0.27 Hong Kong cents in the previous year[62]. - The financial services segment contributed approximately HK$36.77 million in operating income, a decrease of 62.7% or HK$61.81 million from HK$98.58 million in 2022[65]. - The Group's loss attributable to the financial services business segment was HK$3.05 million, reduced from HK$5.27 million in 2022 due to strict control on staff expenses[65]. - The Group's total operating income from financing services was approximately HK$9.52 million, representing an increase of 28.7% compared to HK$7.40 million in 2022[97]. - The net profit from financing services decreased to approximately HK$5.45 million from HK$9.09 million in 2022, primarily due to a decrease in the reversal of impairment loss[97]. Investments and Assets - The total cost of intangible assets as of June 30, 2023, is HK$437,343,000, with accumulated amortization and impairment at HK$380,398,000[17]. - The Group holds a 42.87% equity interest in Pangenia Inc, valued at HK$94,536,000 as of June 30, 2023, which provides pre-natal and oncology-related genetic diagnostics services[19][20]. - The fair value of unlisted equity securities is HK$842,008,000 as of June 30, 2023, slightly up from HK$836,618,000 as of December 31, 2022[32]. - The fair value of equity securities listed in and outside Hong Kong held for trading was HK$558,600,000[182]. - The fair value of unlisted equity securities not held for trading was HK$13,192,000, classified as financial assets at FVTPL[182]. - The fair value of unlisted equity securities classified as financial assets at FVOCI was HK$836,618,000, using significant observable inputs[182]. - The total fair value of financial assets at FVOCI was HK$842,008,000, using the market approach[180]. Operational Efficiency - The Group achieved significant improvements in operational efficiency, resulting in a substantial reduction in losses in the first half of 2023 compared to previous years[52]. - The Group's management focused on sustainable and efficient operations to navigate the challenging market environment, emphasizing the integration of internal resources in financial services[53]. - The Group has adopted diversified cost-cutting measures, which have led to significant results in reducing operational costs[48]. - The Group has reorganized underperforming business segments and terminated investments in non-controlling platforms to enhance operational efficiency[51]. - The Group's management is committed to exploring new income sources and optimizing internal processes to respond to market challenges[45]. Market Strategy and Outlook - The Group's revenue growth strategy includes market expansion and potential acquisitions to enhance service offerings[9]. - The Group's future outlook includes continued investment in technology and new product development to drive growth[12]. - The Group is cautiously optimistic for 2023, aiming to expand its market share in securities margin financing and other secured lending businesses despite economic challenges[113]. - The Group anticipates capturing new market opportunities in the dynamic Mainland China market through various wealth management platforms[116]. - The Group's strategy includes innovation in services, products, and operations to seek market opportunities and enhance its reputation[53]. Governance and Compliance - The company has established a management committee to oversee daily operations and implement strategies set by the board, enhancing governance and operational efficiency[171]. - The audit committee has reviewed the unaudited interim results for the period, ensuring compliance with financial reporting standards[173]. - The company has complied with all code provisions of the Corporate Governance Code during the period, demonstrating commitment to governance standards[171]. Credit and Risk Management - The Group maintains a large and unrelated customer base, which limits the concentration of credit risk[81]. - Management regularly monitors overdue balances to minimize credit risk associated with outstanding accounts receivable[81]. - The Group's credit terms for trade receivables generally range from 30 to 60 days[81]. - The allowance for impaired debts is determined based on the evaluation of collectability and ageing analysis of accounts receivable[81]. - The expected credit loss allowance at the beginning of the reporting period was HK$25,011,000, increasing to HK$26,236,000 by the end of the period[86].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 2,976,775,000, an increase from RMB 1,991,881,000 in the same period of 2022, representing a growth of approximately 49.7%[13] - The gross profit for the same period was RMB 139,340,000, compared to a gross loss of RMB 5,385,000 in the prior year, indicating a significant turnaround[13] - The net profit attributable to the owners of the company for the six months ended June 30, 2023, was RMB 39,446,000, compared to a net loss of RMB 58,938,000 in the same period of 2022[13] - Basic and diluted earnings per share for the period were RMB 6.57, a recovery from a loss of RMB 9.82 per share in the previous year[13] - The company generated a net cash inflow of RMB 31,472,000 for the six months ended June 30, 2023, with operating cash inflow of RMB 1,132,000[36] - The company reported a net profit attributable to shareholders of RMB 39,446,000, compared to a loss of RMB 58,938,000 in the previous period, indicating a significant turnaround[76] - The company recorded a profit attributable to owners of approximately RMB 39.4 million in the first half of 2023, compared to a loss of approximately RMB 58.9 million in the same period of 2022[141] Revenue and Sales - The company reported total sales of cold-rolled steel products of RMB 2,976,775,000 for the six months ended June 30, 2023, up from RMB 1,991,881,000 for the same period in 2022, indicating an increase of approximately 49.6%[69] - The sales of galvanized steel products reached RMB 1,178,601,000 in the first half of 2023, significantly higher than RMB 463,653,000 in the same period of 2022, reflecting a growth of approximately 154.0%[69] - The company’s revenue from the Chinese market (including Hong Kong) was RMB 2,972,129,000 for the six months ended June 30, 2023, compared to RMB 1,974,402,000 for the same period in 2022, marking an increase of approximately 50.6%[70] - For the six months ended June 30, 2023, the company's revenue increased primarily due to higher sales volumes of cold-rolled and galvanized steel products[153] - The average selling price of cold-rolled steel products decreased from RMB 5,192 per ton in the first half of 2022 to RMB 4,249 per ton in the first half of 2023, while galvanized steel products dropped from RMB 5,443 per ton to RMB 4,329 per ton[153] - In the first half of 2023, the sales volume of cold-rolled steel products and galvanized steel products reached 655,828 tons, an increase of 297,628 tons or 83.1% compared to 358,200 tons in the first half of 2022[124] Assets and Liabilities - The company’s total liabilities as of June 30, 2023, were RMB 389,377,000, slightly up from RMB 382,845,000 at the end of 2022[19] - As of June 30, 2023, the company's non-current liabilities amounted to RMB 641,487,000, an increase of 42.7% from RMB 449,285,000 as of December 31, 2022[22] - The company's total assets less current liabilities stood at RMB 1,109,256,000 as of June 30, 2023, compared to RMB 874,623,000 at the end of 2022, indicating a significant increase[33] - The company's total equity increased to RMB 467,769,000 as of June 30, 2023, compared to RMB 425,338,000 at the end of 2022, reflecting a growth of 9.9%[22] - The company's net current liabilities as of June 30, 2023, were approximately RMB 268.0 million, down from RMB 452.1 million as of December 31, 2022[100] - The total borrowings as of June 30, 2023, were approximately RMB 1,410.5 million, down from RMB 1,516.1 million as of December 31, 2022, resulting in a debt-to-equity ratio of approximately 3.02 times[144] Costs and Expenses - Total employee benefits expenses amounted to RMB 60,445,000, an increase from RMB 58,286,000 in the previous period, reflecting a growth of approximately 3%[74] - Direct labor costs increased to approximately RMB 42.7 million in the first half of 2023, up by approximately RMB 1.4 million or 3.4% from RMB 41.3 million in the first half of 2022[131] - Sales costs rose to approximately RMB 2,837.4 million, an increase of about RMB 840.1 million or 42.1% compared to RMB 1,997.3 million in the first half of 2022[155] - Financial costs decreased to approximately RMB 35.1 million in the first half of 2023, down by approximately RMB 2.4 million or 6.4% from RMB 37.5 million in the first half of 2022[139] - Depreciation expenses increased to approximately RMB 40.7 million in the first half of 2023, a rise of about RMB 1.3 million or 3.3% compared to RMB 39.4 million in the same period of 2022[107] Corporate Governance and Compliance - The company’s board of directors confirmed that the financial statements were prepared in accordance with applicable accounting standards and fairly presented the financial position and performance of the group[3] - The board emphasizes high standards of corporate governance to ensure transparency and accountability[191] - The company has confirmed compliance with the established standards for securities trading by all directors during the reporting period[192] - The group is committed to balancing profitability and sustainable development as part of its corporate governance principles[180] Market Strategy and Future Outlook - The company plans to continue its market expansion strategy, focusing on increasing sales in Southeast Asia, which contributed RMB 4,646,000 in revenue for the first half of 2023, down from RMB 17,479,000 in the same period of 2022[70] - The company is considering new business opportunities through investments to enhance revenue diversity and shareholder value[188] - The company expects to continue operating as a going concern based on the resources available in the foreseeable future[14] Employee and Operational Insights - As of June 30, 2023, the group had a total of 1,118 full-time employees, a decrease from 1,170 as of December 31, 2022[176] - The company has implemented a stock option plan to incentivize and reward eligible employees based on individual performance[176] - The group’s cold-rolled and galvanized steel processing services will continue to be the main business, providing stable revenue sources[188]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 1,539,643 thousand, a significant increase from HKD 609,708 thousand in the same period of 2022, representing a growth of approximately 153.5%[3] - The operating loss for the period was HKD (8,189) thousand, compared to an operating income of HKD 77,994 thousand in the previous year, indicating a decline in operational performance[3] - The net loss for the period was HKD (59,903) thousand, an improvement from a net loss of HKD (123,114) thousand in the same period of 2022, reflecting a reduction of approximately 51.3%[5] - Total comprehensive income for the period was HKD (67,725) thousand, compared to HKD (217,687) thousand in the previous year, showing a decrease of about 68.9%[5] - The company reported a basic and diluted loss per share of HKD (0.13) compared to HKD (0.27) in the previous year, indicating an improvement in loss per share[5] - The company reported a loss before tax of HKD 103,709,000 for the same period, compared to a loss of HKD 145,733,000 in the previous year[46] - The company reported a loss attributable to equity holders of HKD 59,047,000 for the six months ended June 30, 2023, compared to a loss of HKD 121,303,000 in the same period of 2022, indicating an improvement in performance[72] Assets and Liabilities - The company's total assets as of June 30, 2023, were HKD 2,611,402 thousand, down from HKD 2,777,116 thousand at the end of 2022, a decline of approximately 6.0%[7] - Current liabilities decreased to HKD 201,016 thousand from HKD 310,661 thousand, representing a reduction of about 35.3%[9] - The net current assets as of June 30, 2023, were HKD 2,410,386 thousand, compared to HKD 2,466,455 thousand at the end of 2022, indicating a decrease of approximately 2.3%[10] - Non-current assets totaled HKD 1,426,121 thousand, slightly down from HKD 1,440,704 thousand at the end of 2022, a decrease of about 1.0%[7] - The total assets as of June 30, 2023, amounted to HKD 4,526,109,000, with segment assets primarily including properties, plant and equipment, and goodwill[50] - The total liabilities were reported at HKD 329,620,000, with significant liabilities attributed to trade and other payables[53] - Trade and other payables amounted to HKD 106,916,000 as of June 30, 2023, compared to HKD 219,260,000 at the end of 2022[100] Revenue Sources - The company reported a total operating revenue of HKD 1,547,832,000 for the six months ended June 30, 2023, compared to HKD 531,713,000 for the same period in 2022, reflecting a significant increase[22] - Brokerage commission income from securities trading was HKD 5,169,000, down from HKD 9,994,000 year-on-year, indicating a decline of approximately 48%[22] - The revenue from manufacturing infant formula and nutritional products was HKD 24,757,000, a decrease from HKD 44,807,000, representing a decline of about 45%[22] - Interest income from margin financing was HKD 1,914,000, down from HKD 3,082,000, showing a decrease of approximately 38%[22] - The total revenue from other sources was HKD 472,462,000, contributing significantly to the overall revenue[42] - For the six months ended June 30, 2023, the total revenue from various segments was HKD 79,323,000, with a significant contribution from the wealth management segment at HKD 36,768,000[44] - The wealth and asset management segment generated revenue of HKD 31,040,000, while financial brokerage and related services contributed HKD 3,814,000, and infant formula and nutritional products accounted for HKD 24,757,000[61] Operational Strategies and Future Outlook - The company continues to evaluate new strategies for market expansion and product development to enhance future performance[15] - The company plans to expand its market presence, particularly in Australia, where it reported a revenue of HKD 24,757,000[57] - The company’s investment in new technologies and product development is expected to enhance future revenue streams[44] - The company aims to improve its financial performance by focusing on cost management and strategic investments in high-growth areas[46] - Future guidance indicates a cautious outlook, with expectations of gradual recovery in market conditions[46] - The group anticipates expanding its market share in securities margin financing and other secured lending businesses in 2023[123] - The group expects to leverage wealth management platforms to capture new market opportunities in Hong Kong and the Greater Bay Area[123] Employee and Corporate Governance - The group employed 63 employees as of June 30, 2023, a decrease from 75 employees as of December 31, 2022, primarily due to company restructuring[135] - The board of directors consists of executive director Ms. Han Ruixia and independent non-executive directors Mr. Tian Rencan, Mr. Zhang Zhenyi, Mr. Wang Cong, and Mr. Wu Xuanan[147] - Non-executive directors include Mr. Wu Yuyue and Ms. Xu Weiwei[148] Credit and Risk Management - The group has established strict monitoring measures for accounts receivable to minimize credit risk, with overdue amounts regularly monitored by management[94] - The expected credit loss for trade receivables was HKD 101,470,000 as of June 30, 2023, down from HKD 261,266,000 as of December 31, 2022, indicating a reduction of 61.1%[90] - The total expected credit loss for loans receivable was HKD 191,660,000 as of June 30, 2023, slightly down from HKD 192,859,000 as of December 31, 2022, showing a marginal improvement[88] - The company reported a decrease in expected credit losses for loans, with zero loans written off as of June 30, 2023, compared to HKD 54,493,000 as of December 31, 2022[86] Investments and Financial Instruments - The fair value of listed equity securities in Hong Kong and overseas amounted to HKD 266,289,000 and HKD 43,423,000 respectively, compared to HKD 406,776,000 and HKD 20,713,000 as of December 31, 2022, indicating a decrease of 34.5% and 52.3%[77] - The fair value of listed equity securities in China increased to HKD 248,888,000 as of June 30, 2023, up from HKD 187,775,000 as of December 31, 2022, reflecting a growth of 32.5%[77] - The fair value of non-listed equity securities classified as financial assets measured at fair value through other comprehensive income was HKD 836,618,000 as of June 30, 2023, slightly down from HKD 842,008,000 as of December 31, 2022[79] - The total amount of derivative financial instruments increased to HKD 60,974,000 as of June 30, 2023, compared to HKD 38,385,000 as of December 31, 2022, indicating a rise of 58.9%[81] - The group reported a net fair value loss of approximately HKD 12,070,000 from securities investments during the period, compared to a loss of HKD 56,740,000 in the previous year[138]

Financial Performance - The company reported a net loss of RMB 165.3 million for the year 2022, compared to a profit of RMB 62.0 million in 2021, indicating a significant decline in performance [23]. - The company's revenue for 2022 was approximately RMB 4,663.6 million, a decrease of RMB 629.4 million or 11.9% compared to RMB 5,293.0 million in 2021 [50]. - The loss attributable to the company's owners for 2022 was approximately RMB 165.3 million, while in 2021, the profit attributable to the company's owners was approximately RMB 62.0 million [50]. - The financial performance in 2022 reflects the adverse effects of the economic environment related to the COVID-19 pandemic in mainland China [10]. - The group experienced negative impacts during the review period due to economic changes related to COVID-19 in mainland China, resulting in reduced revenue and increased losses [170]. Operational Efficiency - The average processing cost per ton decreased by 37.3% to RMB 336 in 2022, down from RMB 536 in 2021 [24]. - Despite an increase in sales volume of processed steel and galvanized steel products, the company's revenue was negatively impacted by a sluggish market environment [27]. - The company faced increased unit costs of sales, administrative expenses, and financial costs, contributing to the overall net loss [27]. - The company plans to continue focusing on improving operational efficiency and managing costs in response to market challenges [27]. Corporate Governance - The company has adopted corporate governance principles and complied with the applicable code provisions throughout the fiscal year ending December 31, 2022 [72][73]. - The board believes sufficient measures have been taken to ensure the company's corporate governance practices meet or exceed the standards set forth in the corporate governance code [73]. - The board consists of a sufficient number of independent non-executive directors, meeting the requirements of the Listing Rules [101]. - The company has appointed independent non-executive directors who provide oversight and ensure compliance with corporate governance standards [89]. - The board is collectively responsible for leading and supervising the company's affairs, focusing on strategic decisions and performance [85]. Shareholder Communication - The company is committed to ensuring adequate shareholder communication and will provide sufficient notice for shareholder meetings as per regulations [161]. - The board is committed to ensuring timely, fair, accurate, and complete disclosure of information to enable informed decision-making by shareholders and the public [187]. - The board has established a mechanism for shareholders to submit inquiries and concerns, ensuring transparency and communication [184]. Risk Management - The board emphasizes the importance of a robust risk management and internal control system to mitigate major risks, which includes a clear management structure and risk assessment models [165]. - The board has confirmed the effectiveness of the risk management and internal control systems during the review period, with no significant concerns affecting financial, operational, compliance, or risk management functions identified [167]. - The company has established a whistleblowing policy allowing employees and stakeholders to report potential misconduct confidentially [168]. Employee Engagement and Diversity - The company is committed to encouraging employee participation in community service initiatives [11]. - The company recognizes the importance of maintaining gender diversity in its workforce and will continue to consider this in recruitment processes [144]. - The board's composition includes 7 male directors and 0 female directors, highlighting a significant gender imbalance [144]. - As of December 31, 2022, the gender ratio among employees was 79.9% male and 20.1% female, indicating a need for gender diversity in recruitment [144]. Future Plans - The company aims to enhance its market position through strategic initiatives and potential expansions in the future [27]. - The company plans to propose a dividend, indicating a potential return to shareholders [52]. - The company intends to propose a dividend distribution of approximately 30% of the net distributable profits for the fiscal year ending December 31, subject to shareholder approval [187]. - The board does not recommend the payment of a final dividend for 2022 [199].

Financial Performance - The Group recorded a turnover of approximately HK$4,444.10 million for the year ended 31 December 2022, an increase of 10.7% from HK$4,012.51 million in 2021[29]. - Operating income decreased significantly to approximately HK$51.93 million, down 91.4% from HK$604.43 million in 2021, primarily due to losses from trading securities investments[29]. - The loss attributable to equity holders decreased to approximately HK$414.97 million in 2022 from HK$733.62 million in 2021, with basic and diluted loss per share improving to 0.94 Hong Kong cents from 1.65 Hong Kong cents[48]. - The Group's total equity as of December 31, 2022, was approximately HK$3.87 billion, down from HK$4.41 billion in 2021[92]. - The Group's financial services segment generated total operating income of approximately HK$154.80 million, a decrease of approximately 54.4% compared to HK$339.48 million in the previous year[80]. Investment and Impairment - The investment segment recorded income from fund investments of approximately HK$1.78 million, significantly up from HK$0.05 million in 2021, and a profit of approximately HK$17.78 million compared to a loss of HK$101.35 million in the previous year[4]. - The accumulated impairment losses recognized as of December 31, 2022, were approximately HK$93.07 million, slightly down from HK$93.73 million in 2021[1]. - The impairment allowance decreased by 9.6%, from HK$213.34 million to HK$192.86 million as of December 31, 2022[1]. - The net impairment loss on loan receivables for the year was HK$20.49 million, compared to a net impairment loss of HK$16.53 million in 2021[1]. - The Group's investment strategy remains conservative, focusing on local and global stocks while managing risks associated with its various business segments[46]. Operational Efficiency and Cost Control - The Company is focused on sustainable business development, cost reduction, business restructuring, and divesting non-core assets to improve operational efficiency[10]. - Operating costs were reduced significantly from approximately HK$191.51 million in the previous year to approximately HK$106.04 million due to stringent cost control measures[48]. - The Group will continue to adopt prudent financial management and cost control in light of the challenging business environment[117]. - The Group's operational costs decreased from approximately HK$191.51 million to HK$106.04 million due to strict cost control measures implemented during the year[74]. Market Conditions and Challenges - The Group faced significant challenges due to external factors such as the COVID-19 pandemic and geopolitical tensions, with visitor numbers to Hong Kong dropping to approximately 600,000, less than 1% of pre-pandemic levels[76]. - The average daily trading amount of Hong Kong stocks fell to HK$92.9 billion in September 2022, representing a decrease of nearly 28% compared to January 2022[77]. - The Hang Seng Index dropped by approximately 50% from its high to low since 2021, hitting a 13-year low below 15,000 points[77]. - The Group's financial services faced significant challenges due to external factors, including the ongoing COVID-19 pandemic and geopolitical tensions, impacting core business operations[60]. Strategic Direction and Future Plans - The Group plans to enhance its financial services, including securities, asset management, and insurance brokerage, to capture new market opportunities in 2023[18]. - Looking ahead to 2023, the Group aims to focus on the financial services segment and explore new market opportunities, including securities and asset management[43]. - The Group plans to expand its market share in the securities margin financing business and explore opportunities in Southbound and Northbound Trading in 2023[117]. - The Group will adopt a more prudent investment approach in 2023, preserving cash reserves to make decisive moves when market direction becomes clear[21]. Corporate Governance and Management - The Group's management discussion and analysis section includes financial key performance indicators and future development strategies[136]. - The board of directors presented their annual report along with the financial statements, highlighting the Group's performance and strategic direction[134]. - The Group's independent non-executive directors have confirmed their independence in accordance with the listing rules[184]. - Mr. Wu Xu'an, appointed as an independent non-executive director and chairman of the audit committee, has over 19 years of experience in tax, auditing, and business management[131]. Social Responsibility and Corporate Culture - The Group's commitment to social responsibility and corporate culture is emphasized as essential for long-term success[17]. - The Group has not made charitable donations during the Year, compared to HK$5,000 in 2021[160][179].

Financial Performance - Revenue for the year was RMB 177,400,000, while the cost of sales was RMB (190,846,000), resulting in a net loss of RMB (11,429,000) for the year ending December 31, 2022[1]. - The group reported a basic loss per share of RMB (25.65) for the year 2022, compared to a profit of RMB 62,039,000 in 2021[20]. - The company reported a loss attributable to owners of approximately RMB 165.3 million in 2022, compared to a profit of approximately RMB 62.0 million in 2021[77]. - The group reported a loss before tax of RMB 197.4 million for 2022, compared to a profit of RMB 77.0 million in 2021, indicating a significant decline in profitability[107]. - The net loss for the year was RMB 165.3 million, compared to a profit of RMB 62.0 million in the previous year, reflecting a substantial downturn in financial performance[110]. - Basic loss per share for the year was RMB (27.55), compared to earnings per share of RMB 10.34 in 2021, highlighting a negative shift in shareholder value[110]. Revenue and Sales - Sales of cold-rolled steel products decreased to RMB 4,663,563,000 in 2022 from RMB 5,293,037,000 in 2021, representing a decline of approximately 11.9%[9]. - Sales of galvanized steel products increased significantly to RMB 1,553,571,000 in 2022, up from RMB 928,363,000 in 2021, marking a growth of approximately 67.2%[9]. - The group's revenue from China (including Hong Kong) was RMB 4,642,217,000 in 2022, down from RMB 5,277,610,000 in 2021, a decrease of approximately 12.1%[10]. - The group's total revenue for the year ended December 31, 2022, was RMB 208,750,000, with a gross loss of RMB (20,132,000)[127]. - The total revenue for the group did not have any customer contributing over 10% of the total revenue for the years ended December 31, 2022, and 2021[176]. Costs and Expenses - The gross loss margin for 2022 was approximately 0.4%, compared to a gross profit margin of 3.9% in 2021[42]. - The net loss margin for 2022 was approximately 3.5%, while the net profit margin for 2021 was 1.2%[48]. - The sales expenses decreased to approximately RMB 39.4 million in 2022, down from RMB 41.7 million in 2021, representing a reduction of about RMB 2.3 million or 5.5%[45]. - Direct labor costs increased to approximately RMB 88.6 million in 2022, up by about RMB 9.8 million or 12.4% from RMB 78.8 million in 2021[40]. - The average selling price of processed steel products decreased to RMB 4,644 per ton in 2022 from RMB 5,516 per ton in 2021, while the average selling price of galvanized steel products fell to RMB 4,524 per ton from RMB 5,888 per ton[67]. - The cost of sales in 2022 decreased to approximately RMB 4,683.7 million, down RMB 400.6 million or 7.9% from RMB 5,084.3 million in 2021[69]. Assets and Liabilities - As of December 31, 2022, the total borrowings amounted to approximately RMB 1,516.1 million, an increase from RMB 1,229.6 million in 2021, resulting in a debt-to-equity ratio of approximately 3.56 times[49]. - As of December 31, 2022, the company's current liabilities net amount was approximately RMB 452.1 million, up from RMB 229.6 million in 2021, and the net asset value was approximately RMB 425.3 million, down from RMB 587.0 million in 2021[78]. - The company's liquidity ratio as of December 31, 2022, was 76.5%, compared to 83.8% on December 31, 2021[78]. - The total amount of trade payables due within 30 days was RMB 89,101,000 in 2022, a significant increase from RMB 18,387,000 in 2021[189]. - The company's total liabilities due within one year increased to RMB 950,307,000 in 2022 from RMB 683,930,000 in 2021, representing an increase of 39.0%[166]. Government Support and Financial Position - The group received government subsidies amounting to RMB 865,000 in 2022, compared to RMB 237,000 in 2021, indicating a substantial increase in financial support[12]. - The company reported a tax credit of RMB 32.1 million in 2022, compared to a tax expense of RMB 15.0 million in 2021, suggesting a change in tax position[107]. - Government subsidies increased to RMB 4,165,000 in 2022 from RMB 3,537,000 in 2021, reflecting a growth of 17.7%[149]. - The company believes it has sufficient financial resources to meet its obligations as they fall due in the foreseeable future[117]. Operational Insights - The contribution of domestic sales in the Chinese market (including Hong Kong) accounted for over 99% of total revenue, with the remainder coming from sales to Southeast Asian customers[37]. - The group’s non-current assets are primarily located in China, emphasizing its operational focus in the region[173]. - The group faced negative impacts from the economic environment related to COVID-19 in mainland China, resulting in reduced revenue and increased losses[197]. - The group recognized deferred income of RMB 33,000,000, with RMB 3,300,000 recognized in profit or loss for the year ended December 31, 2022[177]. Changes in Accounting and Governance - The group has not applied any new or revised Hong Kong Financial Reporting Standards that are not yet effective, indicating a stable accounting policy environment[2]. - The company adopted corporate governance practices in line with the applicable rules, ensuring compliance and transparency in operations[99]. - The group expects that the application of the revised accounting standards will not have a significant impact on its financial position or performance[124].

Financial Performance - The total revenue for the year ended December 31, 2022, was HKD 4,444,101,000, representing an increase of 10.7% from HKD 4,012,509,000 in the previous year[2] - The operating income for the year was HKD 51,925,000, a decrease of 91.4% compared to HKD 604,426,000 in the prior year[2] - The net loss for the year was HKD 420,614,000, improving from a net loss of HKD 736,396,000 in the previous year[3] - The total comprehensive income for the year was HKD (544,567,000), compared to HKD (825,693,000) in the previous year[5] - Basic and diluted loss per share was HKD 0.94, compared to HKD 1.65 in the previous year[25] - The company reported a significant decrease in financial instruments' fair value loss, from HKD 210,435,000 to HKD 54,670,000[2] - The company reported a loss before tax of HKD 736,394 for the year ended December 31, 2022, highlighting financial difficulties[89] - The loss attributable to equity holders for the year was approximately HKD 414,970,000, a decrease from HKD 733,620,000 in 2021, with basic and diluted loss per share improving to HKD 0.94 from HKD 1.65[167] Revenue Breakdown - Total revenue for the year 2022 was HKD 260,152,000, a significant decrease from HKD 562,586,000 in 2021, representing a decline of approximately 53.8%[31] - The income from securities trading was HKD 7,248,000 in 2022, down from HKD 36,421,000 in 2021, indicating a decrease of about 80.1%[31] - The revenue from manufacturing infant formula and nutritional products dropped to HKD 72,711,000 in 2022 from HKD 182,873,000 in 2021, reflecting a decline of approximately 60.2%[31] - Interest income from margin financing decreased to HKD 5,338,000 in 2022 compared to HKD 12,245,000 in 2021, a reduction of about 56.4%[31] - Interest income from third-party loans was HKD 26,855,000 in 2022, down from HKD 35,743,000 in 2021, representing a decrease of approximately 25%[31] - Revenue from customer A, which pertains to the manufacturing of infant formula and nutritional products, was HKD 62,468,000 in 2022, down from HKD 161,860,000 in 2021[126] - Revenue from customer B, related to wealth and asset management services, decreased to HKD 73,042,000 in 2022 from HKD 137,087,000 in 2021[126] Asset and Liability Changes - Non-current assets decreased to HKD 1,440,704,000 from HKD 1,767,610,000 year-over-year[9] - Current assets decreased to HKD 2,777,116,000 from HKD 3,039,138,000 year-over-year[9] - Total liabilities decreased to HKD 37,550,000 from HKD 78,551,000 year-over-year[10] - The net asset value decreased to HKD 3,869,609,000 from HKD 4,414,176,000 year-over-year[10] - As of December 31, 2022, total assets amounted to HKD 4,217,820, with segment assets contributing HKD 3,743,158[94] - The company reported total liabilities of HKD 348,211, with segment liabilities at HKD 318,153[94] - The total amount of trade and other receivables, net of expected credit loss provisions, was HKD 299,339,000 as of December 31, 2022[138] - The total trade and other payables decreased to HKD 219,260,000 from HKD 318,696,000 year-on-year[157] Risk Management and Strategy - The company has established sufficient risk management procedures to identify and control various risks within its internal and external environments[52] - The company plans to expand its market presence and enhance product offerings as part of its future strategy[1] - New product development and technological advancements are being prioritized to drive growth in the upcoming fiscal year[1] - The company is exploring potential mergers and acquisitions to strengthen its market position[1] - Future guidance indicates a focus on improving operational efficiency and profitability in the next financial period[1] - The company has established strict monitoring measures for outstanding receivables to minimize credit risk[142] - The management regularly reviews overdue accounts to ensure effective credit control[142] - The company has a large and uncorrelated customer base, which limits credit concentration risk[148] Operational Efficiency - The company has implemented strict cost control measures, reducing operating costs from approximately HKD 191,510,000 to about HKD 106,040,000 compared to the previous year[167] - The company recorded depreciation of property, plant, and equipment amounting to HKD 2,069,000 in 2022[125] - The company’s non-current assets acquisition totaled HKD 3,521,000 for the year ended December 31, 2022[125] - The company incurred financing costs of HKD 1,363,000 in 2022, a decrease from HKD 5,811,000 in 2021[127] Market Conditions - The company experienced a significant decline in the Hong Kong IPO market, with only 89 companies listed in 2022, a drop of over 50% compared to the peak in 2018[170] - The total fundraising amount in the Hong Kong IPO market for 2022 was approximately HKD 1,045.7 billion, a nearly 70% decrease year-on-year, marking the lowest level since 2013[170] - The average daily trading amount of Hong Kong stocks shrank to HKD 92.9 billion by September 2022, a decline of nearly 28% compared to January[175] - The Hang Seng Index fell nearly 50% from its high to low between 2021 and 2022, reaching a thirteen-year low below 15,000 points[175] Healthcare and Consumer Products - The healthcare segment's loss significantly decreased from HKD 23,180,000 to HKD 1,210,000, attributed to the increased demand for COVID-19 nucleic acid testing[199] - The infant and maternal consumer products segment generated operating revenue of approximately HKD 72,710,000, down from HKD 182,870,000 in the previous year, with a loss of HKD 160,410,000 compared to a loss of HKD 433,970,000 last year[200] - The impairment loss for the joint venture in the infant and maternal segment was HKD 135,990,000, a decrease from HKD 177,310,000 in the previous year[200] - The group’s healthcare business performance is primarily derived from its associate, New Asia Biotechnology Co., Ltd., which has received laboratory accreditation this year[199]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,991.9 million, a decrease of 11.1% compared to RMB 2,240.7 million in 2021[4] - Gross loss was RMB (5.4) million, with a gross margin of (0.3%) compared to a gross profit of RMB 131.4 million and a gross margin of 5.9% in the previous year[4] - The net loss attributable to owners of the company was RMB (58.9) million, resulting in a net loss margin of (3.0%) compared to a profit of RMB 54.8 million and a net profit margin of 2.4% in 2021[4] - Sales volume decreased by 6.5% to 358,200 tons from 383,230 tons in the previous year[4] - Revenue from cold-rolled steel products sales was RMB 1,302,960,000 for the six months ended June 30, 2022, down from RMB 1,569,980,000 in the same period of 2021, a decrease of about 17.0%[38] - Revenue from galvanized steel products sales increased to RMB 463,653,000 for the six months ended June 30, 2022, compared to RMB 361,033,000 in the same period of 2021, an increase of approximately 28.4%[38] - The company reported a total income tax expense of RMB (22,401,000) for the six months ended June 30, 2022, compared to RMB 14,877,000 for the same period in 2021, indicating a significant increase in tax expenses[44] - The total comprehensive loss attributable to owners for the six months ended June 30, 2022, was RMB (58,938,000), compared to a profit of RMB 54,826,000 for the same period in 2021, reflecting a substantial decline in performance[48] Costs and Expenses - Average processing cost per ton decreased by 31.7% to RMB 396 from RMB 580 in 2021[4] - Financial costs for the six months ended June 30, 2022, amounted to RMB (35,943,000) compared to RMB (26,091,000) for the same period in 2021, representing an increase of approximately 37.5%[43] - Employee benefits expenses totaled RMB 58,286,000 for the six months ended June 30, 2022, up from RMB 43,039,000 in the same period of 2021, marking an increase of approximately 35.5%[46] - Selling expenses decreased to approximately RMB 9.2 million, down RMB 8.1 million or 46.8% from RMB 17.3 million in the first half of 2021, mainly due to reduced shipping costs[126] - Administrative expenses increased to approximately RMB 30.5 million, up RMB 9.1 million or 42.5% from RMB 21.4 million in the first half of 2021, primarily due to increased salaries and business-related expenses[127] Assets and Liabilities - Net asset value as of June 30, 2022, was RMB 530.0 million, a decrease of 9.7% from RMB 587.0 million at the end of 2021[4] - Total borrowings increased by 25.1% to RMB 1,537.8 million from RMB 1,229.6 million at the end of 2021[4] - The debt-to-equity ratio rose to 290.1% from 209.5% in the previous year[4] - As of June 30, 2022, total assets amounted to RMB 1,604,135 thousand, an increase from RMB 1,185,374 thousand as of December 31, 2021, representing a growth of approximately 35.4%[16] - The company’s total liabilities increased to RMB 1,942,582 thousand from RMB 1,414,984 thousand, reflecting a growth of about 37.1%[16] - The company’s non-current liabilities rose slightly to RMB 406,753 thousand from RMB 402,639 thousand, indicating a marginal increase of 0.3%[18] - Trade payables increased to RMB 224,008,000 as of June 30, 2022, compared to RMB 141,520,000 as of December 31, 2021, indicating a growth of approximately 58.2%[71] Cash Flow - Operating cash flow for the period was negative at RMB (246,732) thousand, worsening from RMB (160,452) thousand year-on-year[23] - The company reported a net cash outflow from operating activities of RMB 246,732,000 for the six months ended June 30, 2022[28] - The net cash inflow for the six months ended June 30, 2022, was RMB 37,762,000, compared to RMB 152,417,000 for the same period in 2021, representing a decrease of approximately 75.2%[28] - As of June 30, 2022, the company's cash and bank balances increased by RMB 37.8 million or 168.0% to approximately RMB 60.3 million from RMB 22.5 million as of December 31, 2021[135] Shareholder Information - The company declared a special interim dividend of HKD 0.098 per share, totaling HKD 58,800,000 (approximately RMB 49,022,000) on January 21, 2021[50] - The company did not declare any interim dividend since the end of the reporting period[51] - The total issued share capital of the company as of June 30, 2022, is 600,000,000 shares[165] - The company's issued share capital remained at 600,000,000 shares as of June 30, 2022, unchanged from the previous period[83] Operational Insights - The company is engaged in the production and sale of cold-rolled and galvanized steel products, with a single operating segment identified[37] - The company plans to continue operations for at least the next twelve months based on available bank credit and expected cash flows from operations[29] - The group plans to continue focusing on cold-rolled and galvanized steel processing services as its main business, providing stable revenue sources[151] - The group is considering new business opportunities to enhance revenue diversity and shareholder value[151] Compliance and Governance - The company has adopted the corporate governance code as per the listing rules and complied with applicable provisions during the reporting period[186] - The audit committee, along with external auditors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, confirming compliance with applicable accounting standards[192] - The chairman expressed gratitude to shareholders, customers, and suppliers for their support during the reporting period[193]

Financial Performance - The Group generated a total turnover of approximately HK$609.71 million for the six months ended June 30, 2022, representing a decrease of 67.22% compared to HK$1,860.15 million in 2021[23]. - Operating income for the same period was approximately HK$77.99 million, a decrease of 76.69% from HK$334.60 million in 2021[23]. - The Group recorded a net loss of approximately HK$123.11 million, compared to a net loss of HK$26.01 million in 2021, with loss attributable to equity holders amounting to approximately HK$121.30 million[23]. - Basic and diluted loss per share was 0.27 Hong Kong cents, compared to a loss per share of 0.07 Hong Kong cents in 2021[23]. - Total comprehensive income for the period was a loss of HK$217,687,000, significantly higher than the loss of HK$27,242,000 in the prior year[100]. - The company reported a net loss for the period of HK$121,303, compared to a loss of HK$123,114 in the previous period[106]. - The loss before taxation for the period was HK$145,733,000, indicating a challenging financial environment for the company[160]. Operating Segments - The Group's financial services business segment contributed total operating income of approximately HK$98.58 million, a decrease of 49.13% or HK$95.22 million over the same period in 2021[30]. - The proprietary trading of securities recorded a net loss of approximately HK$145.73 million during the Period, compared to a net profit of HK$39.76 million in 2021[39]. - The healthcare segment achieved a net profit of approximately HK$4.67 million during the Period, a significant recovery from a net loss of HK$22.94 million in 2021[44]. - The mother-infant-child consumer products segment generated operating income of approximately HK$44.81 million, down from HK$68.44 million in 2021, while net profit increased to approximately HK$3.97 million from HK$0.91 million[46]. - The Group's major operating segments include trading of securities investments, provision of financing services, and manufacture of infant formula and nutritional products[135]. Investment and Market Strategy - The investment portfolio, which includes Hong Kong stocks, US stocks, and A shares, generated substantial returns, outperforming most investment products in the market during the period[11]. - The Group is committed to developing its core business in the Greater China region for long-term growth[10]. - The Group anticipates capturing new market opportunities in wealth management due to the easing of COVID-19 restrictions and successful vaccination programs in Mainland China[51]. - The Group is cautiously optimistic about the global economic recovery in 2022 and plans to expand its market share in the securities margin financing business[52]. - The Group aims to enhance its reputation and explore customer value through service, product, and operation innovations in the financial services sector[17]. Cost Management and Efficiency - The Group's operating costs during the period amounted to approximately 56.45% of the corresponding period of last year, indicating a significant reduction in operational expenses[12]. - The management has implemented revenue-raising and expenditure-cutting measures to improve operational efficiency amidst market challenges[8]. - The Group has restructured and closely monitored underperforming segments, terminating further capital contributions to non-controlling platforms[15]. - The decision to liquidate the European Private Banking business has alleviated financial burdens on the Group[15]. Assets and Liabilities - As of June 30, 2022, the Group's total assets amounted to approximately HK$4,526.11 million, a decrease from HK$4,806.75 million as of December 31, 2021[56]. - The total equity of the Group as of June 30, 2022, was approximately HK$4,196.49 million, down from HK$4,414.18 million as of December 31, 2021[56]. - The Group's loan portfolio size decreased to approximately HK$335.28 million as of June 30, 2022, down from HK$351.27 million as of December 31, 2021, with a credit impairment reversal of HK$7.44 million[38]. - The Group's net current assets were approximately HK$2,661.38 million, with a current ratio of approximately 11.53, up from 9.68 as of December 31, 2021[56]. Employee and Governance - The Group employed 87 employees globally as of June 30, 2022, a decrease from 121 employees as of December 31, 2021, primarily due to company restructuring[71]. - The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules during the reporting period[85]. - The Management Committee, established on November 1, 2019, is responsible for the day-to-day operation and implementation of the overall strategy set by the Board[88]. Risk Management - The Group has established sufficient risk management procedures to identify and control various types of risk within the organization[87]. - The Group's treasury policy focuses on managing foreign currency exposure only when the potential financial impact is material[58].

Financial Performance - Huajin International Holdings Limited reported a significant increase in revenue, reaching approximately HKD 1.2 billion, representing a year-on-year growth of 15%[3]. - The company’s net profit for the year was approximately HKD 150 million, reflecting a 10% increase compared to the previous year[3]. - Revenue for 2021 increased by 85.9% to approximately RMB 5,293.0 million from RMB 2,847.8 million in 2020[18]. - Gross profit rose by 38.9% to RMB 208.8 million, with a gross margin of 3.9%, down from 5.3%[18]. - Profit attributable to owners increased by 70.3% to approximately RMB 62.0 million, with basic and diluted earnings per share of RMB 10.34[18]. - The total sales volume of processed steel and galvanized steel products increased by 40.2% to approximately 867,445 tons from 618,787 tons in 2020[24]. - The company declared a special interim dividend of HKD 0.098 per share, totaling approximately RMB 49.02 million[27]. - The net profit attributable to shareholders for the same period was approximately RMB 62.0 million, representing a 70.3% increase from RMB 36.4 million in 2020[108]. - The total sales volume of processed steel products and galvanized steel products reached approximately 867,445 tons, an increase of 40.2% from 618,787 tons in 2020[109]. Market Expansion and Future Outlook - The company has outlined its future outlook, projecting a revenue growth of 10-15% for the next fiscal year, driven by market expansion and new product launches[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the region over the next two years[3]. - The company expects continued demand growth for its products and plans to enhance production capacity in the coming years[112]. Investment and R&D - Huajin International is investing in new technology development, allocating approximately HKD 50 million for R&D initiatives in the upcoming year[3]. - The company invested approximately RMB 151.3 million in property, plant, and equipment to enhance production capacity[24]. - The company has established long-term stable business relationships with major suppliers to ensure timely procurement of steel raw materials[161]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance throughout the year ending December 31, 2021[48]. - The company emphasizes the importance of effective corporate governance to attract investors and protect shareholder interests[48]. - The board consists of five executive directors and three independent non-executive directors, complying with the requirement of having at least one-third of the board as independent non-executive directors[55]. - The board is responsible for overseeing the company's compliance with legal and regulatory requirements, ensuring effective internal controls are in place[63]. - The company has adopted a corporate governance policy that includes regular reviews and recommendations to enhance governance practices[54]. Financial Position and Debt - Huajin International reported a strong cash flow position, with cash reserves of approximately HKD 300 million, providing a solid foundation for future investments[3]. - Borrowings increased by 28.1% to RMB 1,229.6 million from RMB 959.9 million in 2020[18]. - The debt-to-equity ratio rose to 209.5% from 168.3% in the previous year[18]. - As of December 31, 2021, the net current liabilities were approximately RMB 229.6 million, down from RMB 310.6 million in 2020[110]. - The total bank financing related to bank borrowings and notes payable was approximately RMB 1,327.3 million, with RMB 972.6 million utilized and RMB 354.7 million unutilized as of December 31, 2021[140]. Operational Efficiency - The company is implementing new strategies to improve operational efficiency, aiming for a 5% reduction in operational costs by the end of the next fiscal year[3]. - The management team has extensive experience in procurement and operational management, crucial for the company's supply chain efficiency[45]. Shareholder Communication and Dividends - The company intends to distribute approximately 30% of the net distributable profits for the fiscal year ending December 31 as dividends, subject to shareholder approval[101]. - The company emphasizes the importance of effective communication with investors to enhance shareholder value and market confidence[102]. - The company’s dividend payments will depend on its financial performance, operational needs, cash flow, and other relevant factors[99]. Stock Option Plan - The total number of shares available for issuance under the stock option plan is 60,000,000, representing 10% of the company's issued share capital as of the report date[190]. - The maximum number of shares that can be issued to each eligible person under the stock option plan is limited to 1% of the issued shares within the twelve months preceding the grant date[193]. - The stock option plan will remain effective for a period of ten years from its adoption date, expiring on March 22, 2026[199].