Financial Performance - The group's revenue increased by 6.1% to HKD 530.8 million for the six months ended June 30, 2023, compared to HKD 500.1 million in 2022, primarily due to growth in the department store business [8]. - The attributable profit for the period was HKD 274.2 million, a significant increase from a loss of HKD 106.4 million in 2022, driven by investment portfolio gains of HKD 93.0 million compared to a loss of HKD 190.4 million in the previous year [8]. - Basic earnings per share were HKD 0.943, compared to a loss of HKD 0.365 per share in 2022, with basic earnings excluding property valuation gains at HKD 0.907 per share, up from a loss of HKD 0.188 [8]. - The operating profit for the group was HKD 306.9 million for the six months ended June 30, 2023, compared to an operating loss of HKD 8.5 million in 2022 [22]. - The net profit attributable to shareholders for the six months ended June 30, 2023, was HKD 274.2 million, a recovery from a loss of HKD 106.4 million in 2022 [22]. - The company reported a profit before tax of HKD 314.6 million, a significant recovery from a loss of HKD 68.3 million in the same period last year [33]. - The company reported a comprehensive income of HKD 274,180 thousand for the period, compared to a loss of HKD 89,118 thousand in the previous period [27]. - The group recorded a profit of HKD 196,897,000 for the six months ended June 30, 2023, compared to a loss of HKD 19,217,000 in the same period last year [42]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.34 per share, totaling HKD 98,833,000, compared to no dividend in 2022 [8]. - The company declared an interim dividend of HKD 98,833,000, equating to HKD 0.34 per share, compared to no interim dividend in the previous year [62]. Cash and Liquidity - The group's cash and listed securities amounted to approximately HKD 3,508.9 million as of June 30, 2023, up from HKD 3,370.9 million at the end of 2022 [9]. - The group had no borrowings as of June 30, 2023, and maintained a strong cash position, indicating no liquidity issues [10]. - Cash and cash equivalents increased to HKD 1,963,231 thousand from HKD 1,562,081 thousand, marking a significant increase of approximately 25.6% [24]. - The company recorded a net increase in cash and cash equivalents of HKD 415.6 million, contrasting with a decrease of HKD 261.2 million in the same period last year [33]. - Cash and cash equivalents increased to HKD 2,439,584,000 as of June 30, 2023, compared to HKD 2,362,467,000 at the end of 2022, reflecting a stronger liquidity position [59]. Asset and Liability Management - As of June 30, 2023, total assets decreased slightly to HKD 19,424,705 thousand from HKD 19,477,146 thousand as of December 31, 2022, representing a decrease of approximately 0.27% [24][25]. - The company's total liabilities increased to HKD 4,432,268 thousand from HKD 4,197,833 thousand, an increase of about 5.58% [24]. - Non-current liabilities decreased to HKD 876,135 thousand from HKD 891,880 thousand, a reduction of about 1.77% [25]. - The equity attributable to shareholders decreased to HKD 18,517,309 thousand from HKD 18,553,535 thousand, a decline of approximately 0.20% [25]. - The company's total assets amounted to HKD 29.1 billion as of June 30, 2023, reflecting a stable financial position [31]. Investment and Market Outlook - The investment portfolio generated a profit of HKD 93.0 million for the six months ended June 30, 2023, a significant recovery from a loss of HKD 190.4 million in 2022 [16]. - The group maintains a cautious optimism regarding the economic and business activities in Hong Kong post-COVID-19, despite slower-than-expected recovery [18]. - The group anticipates challenges in the Australian property market due to high vacancy rates and downward pressure on office rents [18]. - The company plans to continue its investment strategy focusing on property development and acquisition to enhance its portfolio [34]. - The group’s property investment portfolio is located in Hong Kong, Australia, and the United States, indicating ongoing market expansion efforts [40]. Operational Performance - The department store business generated revenue of HKD 326.3 million, an increase of 18.8% from HKD 274.7 million in 2022, with operating profit of HKD 4.7 million compared to a loss of HKD 19.2 million [13]. - Property investment income decreased by 12.2% to HKD 192.2 million from HKD 218.9 million in 2022, with commercial property income in Hong Kong down 4.4% to HKD 151.1 million [14]. - The overall occupancy rate for commercial properties in Hong Kong remained stable at approximately 93% as of June 30, 2023, compared to 94% in 2022 [14]. - The department store business generated revenue of HKD 215,750,000 from product sales, up 20.5% from HKD 179,003,000 in the previous year [39]. - The property investment segment reported total rental income of HKD 175,333,000, a decrease of 10.8% from HKD 196,558,000 in the prior period [39]. Compliance and Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange during the six months ended June 30, 2023 [80]. - The board of directors confirmed compliance with the standards for securities trading during the six months ended June 30, 2023 [81]. Related Party Transactions - The company paid HKD 11,735,000 in rent and management fees to a related company during the current period, consistent with the same amount for the six months ended June 30, 2022 [78]. - The company received HKD 2,777,000 in rent and management fees from a related company during the current period, unchanged from the previous year [78]. - The company incurred commission fees of HKD 421,000 to related companies for securities trading, an increase of 97.2% compared to HKD 213,000 for the six months ended June 30, 2022 [78]. - The company reported receivables of HKD 10,308,000 from related companies as of June 30, 2023, down from HKD 13,620,000 as of December 31, 2022 [78]. - The company generated HKD 850,000 in income from building and lease management services provided to a related company, a decrease from HKD 907,000 for the same period last year [78].

Financial Performance - For the six months ended June 30, 2023, the company reported total revenue of HKD 530,836,000, an increase of 6.5% compared to HKD 500,075,000 for the same period in 2022[3]. - The company achieved an operating profit of HKD 307,038,000, a significant recovery from an operating loss of HKD 7,846,000 in the previous year[3]. - The net profit for the period was HKD 273,594,000, compared to a net loss of HKD 106,294,000 in the same period last year, marking a turnaround in performance[3]. - Basic and diluted earnings per share were HKD 0.943, a recovery from a loss of HKD 0.365 per share in the prior year[3]. - The company reported a significant increase in other income to HKD 67,973,000, up from HKD 37,822,000 in the previous year, reflecting improved operational performance[3]. - The company reported a profit before tax of 314,608 thousand HKD for the six months ended June 30, 2023, compared to a loss of 68,302 thousand HKD in the same period of 2022[8]. - The total comprehensive income for the period was HKD 184,592,000, compared to a total comprehensive loss of HKD 266,044,000 in the same period last year[4]. - The company recorded a net increase in cash and cash equivalents of 415,630 thousand HKD, contrasting with a decrease of 261,205 thousand HKD in the prior year[8]. Assets and Liabilities - As of June 30, 2023, the company's total assets amounted to HKD 19,424,705,000, slightly down from HKD 19,477,146,000 at the end of 2022[5]. - The company's net assets stood at HKD 18,548,570,000, a decrease from HKD 18,585,266,000 at the end of the previous year[5]. - The company’s total equity as of June 30, 2023, was 18,517,309 thousand HKD, down from 19,216,319 thousand HKD at the beginning of the year[7]. - Total liabilities decreased to HKD 1,458,109,000 as of June 30, 2023, down from HKD 1,317,363,000 at the end of 2022, reflecting a reduction of 10.7%[18]. Investment and Income Segments - Department store sales amounted to HKD 215,750,000, up 20.5% from HKD 179,003,000 in the previous year[14]. - Property investment income reached HKD 326,278,000, representing a 18.7% increase from HKD 274,663,000 in the prior period[14]. - The investment property rental income totaled HKD 175,333,000, a decrease of 10.8% from HKD 196,558,000 in the previous year[14]. - The company operates in two segments: department store business and property investment, with a focus on resource allocation and performance evaluation[15]. Dividends and Shareholder Returns - The company paid dividends of 218,021 thousand HKD related to the previous year, impacting the equity position[7]. - The company declared an interim dividend of HKD 0.34 per share, totaling HKD 98,833,000 for the six months ended June 30, 2023, compared to no dividend declared for the same period in 2022[24]. - The company reported a total of HKD 218,021,000 in dividends payable for the interim period, compared to HKD 133,986,000 for the same period in 2022, showing an increase of approximately 62.9%[25]. Accounting and Compliance - The company has not adopted any new accounting standards or interpretations that have a significant impact on the financial report for the current period[10]. - The company is in the process of assessing the impact of new guidelines related to the cancellation of the offsetting mechanism for mandatory provident fund contributions[11]. - Management has begun implementing changes to accounting policies in line with new guidelines, with a full assessment expected by the end of 2023[12]. - All directors confirmed compliance with the standards set forth in the company's securities trading code during the six months ended June 30, 2023[44]. Market Outlook and Challenges - The group remains cautiously optimistic about the economic recovery in Hong Kong post-COVID-19, while facing challenges in the Australian property market due to high vacancy rates and declining rents[43].

Annual General Meeting and Corporate Governance - The company will hold its 32nd Annual General Meeting on June 13, 2023, at 10:30 AM[3] - The audited consolidated financial statements for the year ended December 31, 2022, will be reviewed and adopted[4] - The company plans to propose a final dividend and a special dividend[4] - The board of directors will be re-elected, including Mr. Guo Zhiqiang and Ms. Tan Huizhu[4] - The company seeks to authorize the board to issue additional shares not exceeding 20% of the total issued shares[5] - The company intends to authorize the repurchase of shares not exceeding 10% of the total issued shares[6] - The company will propose amendments to its Articles of Association, which will take effect immediately after the meeting[8] - The record date for attendance and voting at the AGM is set for June 13, 2023[10] - The share transfer registration will be suspended from June 6 to June 13, 2023[10] - All completed share transfer forms must be submitted by June 5, 2023, at 4 PM for registration[10] - The company is seeking shareholder approval for a proposed final dividend and special dividend, with the record date set for June 19, 2023[11] - The company currently has no plans to issue new shares despite seeking general authorization for share issuance under the Hong Kong Stock Exchange rules[11] - The annual report dated April 28, 2023, has been sent to all shareholders, detailing further information on the proposed resolutions[11] - The company emphasizes that all resolutions will be voted on at the annual general meeting as per the Hong Kong Stock Exchange regulations[11] - The board of directors includes experienced members with extensive backgrounds in finance and management, enhancing corporate governance[19][20][21] - The company has established various committees, including audit, remuneration, and nomination committees, to ensure effective oversight[14] - The company’s auditor is KPMG, a recognized public interest entity auditor, ensuring compliance with accounting and financial reporting standards[16] - The company has a strong commitment to shareholder communication, with announcements regarding meeting arrangements posted on its website[11] - The company advises shareholders to exercise caution in attending the annual general meeting during adverse weather conditions[11] - The board proposed a final dividend of HKD 0.15 per share for the year 2022, down from HKD 0.46 per share in 2021, along with a special dividend of HKD 0.60 per share to celebrate the 115th anniversary of its department store business[44] Financial Performance and Position - The group’s revenue for 2022 decreased by 7.8% to HKD 1,041.0 million compared to HKD 1,129.3 million in 2021, primarily due to a decline in core business revenue[29] - The group recorded a loss attributable to shareholders of HKD 300.9 million for 2022, compared to a profit of HKD 552.5 million in 2021, mainly due to an unrealized net loss of HKD 259.5 million from the investment portfolio[29] - Basic earnings per share for 2022 were HKD 0.1033 loss, down from HKD 0.1894 profit in 2021; excluding property valuation losses, basic earnings per share were HKD 0.0269, down from HKD 0.1441 in 2021[29] - The group's equity as of December 31, 2022, was HKD 18,553.5 million, a decrease of 3.4% from HKD 19,216.3 million in 2021[31] - The group had cash and listed securities of approximately HKD 3,370.9 million as of December 31, 2022, down from HKD 3,540.3 million in 2021, indicating sufficient liquidity for capital commitments and operational needs[31] - The group recorded an operating loss of HKD 21.3 million in its department store business for 2022, compared to an operating profit of HKD 17.1 million in 2021[36] - The group recorded a share of the joint venture's post-tax loss of HKD 18.1 million in 2022, compared to a profit of HKD 14.7 million in 2021, resulting in an overall loss of HKD 16.2 million for the group in 2022, down from a profit of HKD 21.1 million in 2021[38] - The group recorded a foreign exchange loss of HKD 0.7 million in 2022, compared to a gain of HKD 3.4 million in 2021, indicating challenges in currency fluctuations affecting financial results[39] - The group aims to maintain a dividend policy of distributing approximately 50% of annual basic profit to shareholders, barring unforeseen circumstances or significant capital needs[45] - The company reported a loss before tax of HKD 213 million in 2022, compared to a profit of HKD 681 million in 2021[130] - The total assets decreased to HKD 19,903 million in 2022 from HKD 20,639 million in 2021, reflecting a decline of 3.6%[130] - The company’s independent auditor issued an unqualified opinion on the financial statements, confirming compliance with Hong Kong Financial Reporting Standards[132] Investment and Market Strategy - The company reported a significant increase in overseas investment activities, reflecting a strategic focus on international market expansion[22] - The company plans to focus on market expansion and new product development in the upcoming year[146] - The group plans to renovate its store on Nathan Road in Yau Ma Tei to enhance customer shopping experience and product variety, while expecting stable rental income from commercial properties in Hong Kong and Australia despite challenges in the property leasing market[41] - The group aims to strengthen its core business and seek expansion opportunities to improve profitability, focusing on department store operations and increasing rental income from commercial properties[30] - The company plans to continue its focus on investment property management and expansion in the coming year[151] Employee and Workforce Management - The total employee cost, excluding directors' remuneration, was approximately HKD 185.6 million in 2022, down from HKD 194.5 million in 2021, with a total of 551 employees as of December 31, 2022, compared to 600 in 2021[40] - The company has a total of 551 employees, with 74% being female and 26% male as of December 31, 2022[111] - The company aims to improve gender diversity on the board and has implemented measures to identify potential successors[109] - The company has established mechanisms to ensure independent viewpoints are considered in board decisions[103] - The board's composition is currently balanced, with one female independent non-executive director[109] - The company has implemented standardized recruitment processes and emphasized work-life balance to promote gender diversity[112] Risk Management and Compliance - The board confirmed its responsibility for assessing and managing risks, including ESG-related risks, to achieve strategic objectives[119] - The company has ensured compliance with relevant laws and regulations affecting its operations, including those related to product safety and employee welfare[61] - The group has engaged external consultants to evaluate the adequacy and effectiveness of its risk management and internal control systems[120] - The board reviews the risk management and internal control systems annually, with external consultants assisting in the evaluation process[120] - The board has identified a significant new risk related to the aging workforce in the department store business, which may impact operations and service quality[121] Financial Reporting and Accounting Policies - The group adopts HKAS 16 for property, plant, and equipment, with land and buildings not revalued to fair value at each reporting date[163] - The group assesses contracts to determine if they contain a lease, recognizing right-of-use assets and lease liabilities at the lease commencement date[166] - The group recognizes expected credit losses on financial assets measured at amortized cost, including cash and cash equivalents, trade receivables, and lease receivables[169] - The group confirms government grants when reasonable assurance is received and conditions are met, recognizing them in the income statement in the same period as the related expenses[192] - The group’s financial statements present operating segments consistent with the information provided to the highest management for resource allocation and performance assessment[197]

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 1,041,028, a decrease of 7.8% from HKD 1,129,277 in 2021[3] - Operating profit for the year was HKD 170,619, down 64.6% from HKD 481,868 in the previous year[3] - The company reported a net loss of HKD 301,613 for the year, compared to a profit of HKD 552,641 in 2021, marking a significant decline[4] - The basic and diluted loss per share was HKD 103.3 cents, compared to earnings of HKD 189.4 cents per share in the prior year[3] - Total comprehensive loss for the year amounted to HKD 522,314, compared to a total comprehensive income of HKD 379,863 in 2021[4] - The company's revenue from department store operations decreased to HKD 603,748,000 in 2022 from HKD 658,601,000 in 2021, representing a decline of approximately 8.3%[10] - The total rental income from investment properties was HKD 379,614,000 in 2022, down from HKD 411,750,000 in 2021, indicating a decrease of about 7.8%[10] - The reported segment revenue for 2022 was HKD 1,151,989,000, a decrease of 7% from HKD 1,238,765,000 in 2021[14] - The segment profit for the department business was HKD 427,980,000 in 2022, down from HKD 461,179,000 in 2021, reflecting a decline of approximately 7%[14] - The company reported a loss attributable to shareholders of HKD 300,946,000 for 2022, compared to a profit of HKD 552,495,000 in 2021, resulting in a basic loss per share of HKD 103.3, down from HKD 189.4 in the previous year[27] Asset and Equity Changes - Non-current assets decreased to HKD 15,704,796 from HKD 16,381,429, indicating a decline of 4.1%[5] - Current assets included cash and cash equivalents of HKD 1,562,081, down from HKD 2,544,963 in the previous year[5] - The company's total assets less current liabilities were HKD 19,477,146, a decrease from HKD 20,196,972 in 2021[5] - As of December 31, 2022, the total equity attributable to shareholders was HKD 18,553,535,000, a decrease from HKD 19,216,319,000 as of December 31, 2021, reflecting a decline of approximately 3.4%[6] - Total assets reported for 2022 were HKD 15,367,668,000, a decrease of 4% from HKD 16,006,005,000 in 2021[16] - Shareholders' equity decreased by 3.4% to HKD 18,553.5 million as of December 31, 2022, from HKD 19,216.3 million in 2021[37] Income and Expenses - Other income increased significantly to HKD 103,297 from HKD 44,327 in the previous year, reflecting a growth of 133.3%[3] - The company’s total tax expense for 2022 was HKD 89,096,000, a decrease from HKD 128,351,000 in 2021, with the current year tax provision for Hong Kong profits tax at HKD 45,490,000[24] - The company’s financial expenses decreased to HKD 1,068,000 in 2022 from HKD 2,070,000 in 2021, a reduction of approximately 48%[15] - The company reported a net loss from fair value adjustments of financial instruments amounting to HKD 259,475,000 in 2022, compared to a gain of HKD 22,221,000 in 2021[21] Dividends and Share Repurchase - The company declared dividends totaling HKD 99,097,000 for the year, compared to HKD 210,019,000 for the previous year, reflecting a significant reduction in dividend payouts[7] - The company proposed a final dividend of HKD 0.15 per share for 2022, compared to HKD 0.46 per share in 2021, with total proposed dividends amounting to HKD 218,199,000, down from HKD 233,145,000[25] - The company repurchased shares amounting to HKD 7,056,000 during the year, contributing to the overall decrease in equity[6] - The company repurchased a total of 477,000 shares during the year ended December 31, 2022, at a total cost of HKD 7,075,000[49] Operational Insights - The company operates in two segments: department store operations and property investment, with no single customer accounting for more than 10% of total revenue[12] - The overall occupancy rate of the group's commercial properties in Hong Kong dropped to 92% in 2022 from 94% in 2021[43] - The group plans to continue enhancing its core business and seek expansion opportunities to improve profitability[36] - The group expects gradual improvement in department store performance in 2023 as social and economic activities in Hong Kong recover, although full recovery to pre-COVID-19 levels will take time[47] - The group had a total of 551 employees as of December 31, 2022, down from 600 in 2021, with no significant changes to compensation and benefits policies[46] Future Outlook - The company plans to renovate its store on Nathan Road in Yau Ma Tei to enhance customer shopping experience and offer a wider variety of products and services[47] - The group recorded a share of the joint venture's post-tax loss of HKD 18.1 million in the automotive dealership business in China for 2022, compared to a profit of HKD 14.7 million in 2021[44] - The group incurred an investment loss of HKD 206.4 million in 2022, compared to a gain of HKD 90.2 million in 2021, primarily due to negative returns from securities and bonds[45] Reporting and Compliance - The company has not adopted any new accounting standards that would have a significant impact on the financial statements for the current period[9] - The company will hold its 2023 Annual General Meeting on June 13, 2023[51] - The 2022 annual report will be published on the Stock Exchange's website later[52]

Financial Performance - For the six months ended June 30, 2022, the group's revenue decreased by 10.8% to HKD 500.1 million, down from HKD 560.9 million in 2021, primarily due to a decline in department store business revenue[8]. - The group recorded a loss attributable to shareholders of HKD 106.4 million for the six months ended June 30, 2022, compared to a profit of HKD 399.6 million in 2021, largely due to unrealized losses in the investment portfolio and a valuation loss of HKD 51.9 million on investment properties[8]. - Basic loss per share was HKD 36.5 cents, compared to earnings of HKD 136.9 cents per share in 2021; excluding the valuation loss on investment properties, the basic loss per share was HKD 18.8 cents[8]. - The total comprehensive loss for the period was HKD 266.0 million, compared to a total comprehensive income of HKD 331.1 million in the previous year[23]. - The company reported a loss before tax of HKD 68,302,000 for the six months ended June 30, 2022, compared to a profit of HKD 482,765,000 for the same period in 2021[32]. - The total comprehensive income for the period was reported as a loss of HKD 4,125 thousand, compared to a profit of HKD 155,824 thousand in the previous period[27]. Assets and Liabilities - As of June 30, 2022, the group's total equity was HKD 18,813.6 million, a decrease of 2.1% from HKD 19,207.5 million as of December 31, 2021[9]. - The total assets of the group as of June 30, 2022, were HKD 20,136,961,000, down from HKD 20,640,212,000 at the end of the previous year, representing a decline of 2.4%[43]. - Total liabilities decreased to HKD 1,290,694,000 from HKD 1,391,542,000, indicating a reduction of 7.3%[42]. - Net assets as of June 30, 2022, were HKD 18,846,267 thousand, down from HKD 19,248,670 thousand, a decrease of approximately 2.1%[25]. - The company's equity attributable to shareholders decreased to HKD 18,813,647 thousand from HKD 19,216,319 thousand, reflecting a decline of about 2.1%[25]. Cash Flow and Liquidity - The group had cash and listed securities of approximately HKD 3,203.9 million as of June 30, 2022, providing sufficient liquidity for current obligations and working capital needs[9]. - Cash and cash equivalents decreased to HKD 2,259,409 thousand from HKD 2,544,963 thousand, a decline of around 11.2%[24]. - The company’s operating cash flow for the six months ended June 30, 2022, was a net outflow of HKD 111,013,000, compared to a net inflow of HKD 73,062,000 in the same period of 2021[32]. - The company reported a net cash outflow from financing activities of HKD 165,504,000 for the six months ended June 30, 2022, compared to HKD 244,228,000 in the same period of 2021[32]. Revenue Breakdown - Department store business revenue fell by 14.4% to HKD 274.7 million for the first half of 2022, impacted by weak retail conditions and reduced customer traffic due to COVID-19 restrictions[13]. - Property investment income for the six months ended June 30, 2022, was HKD 218.9 million, a decrease of 8.0% from HKD 239.8 million in 2021, with a 3.2% decline in income from commercial properties in Hong Kong[14]. - The property investment segment generated revenue of HKD 280,676,000, down from HKD 294,827,000, reflecting a decline of 4.9% year-over-year[39]. - The total reported segment revenue for the department store business was HKD 274,663,000, a decrease of 14.4% from HKD 320,783,000 in the same period last year[39]. Investment Performance - The group's investment portfolio suffered a loss of HKD 190.4 million due to significant market volatility, compared to a gain of HKD 99.0 million in the same period of 2021[16]. - The net loss from the valuation of investment properties was HKD 51,895,000, while the previous period recorded a net gain of HKD 168,631,000, indicating a significant decline in property valuation[51]. - Total income from property investments decreased to HKD 225,412,000, with direct expenses amounting to HKD 180,094,000, leading to a net income of HKD 45,318,000[46]. Employee and Management Information - The group had 555 employees as of June 30, 2022, down from 621 employees a year earlier[17]. - Employee costs, excluding directors' remuneration, were HKD 90,541,000, a slight decrease from HKD 92,631,000 in the previous period[46]. - The total remuneration for key management personnel for the six months ended June 30, 2022, was HKD 18,516,000, slightly down from HKD 18,596,000 in the same period of 2021[73]. Future Outlook - The group anticipates continued challenges in the department store business for the second half of 2022 due to ongoing COVID-19 impacts and expected inflation and interest rate increases[18]. - The group's investment properties in Hong Kong and Australia are expected to face downward pressure on rental income but are still projected to contribute stable rental income in the second half of the year[18]. - The company is focusing on enhancing its investment properties and exploring new market opportunities to drive future growth[29]. Shareholder Information - The company has a total of 180,545,138 shares held by major shareholders, representing 61.985% of the issued voting shares[84]. - The individual equity holdings of directors include 郭志標 with 1,508,298 shares (0.518%), 郭志桁 with 649,050 shares (0.223%), and 郭志樑 with 480,620 shares (0.165%)[78]. - The company repurchased its own shares during the period to enhance the net asset value per share and earnings per share[85].

Financial Performance - The company reported a significant increase in revenue for the fiscal year ending December 31, 2021, with a total revenue of HKD 1.2 billion, representing a 15% year-over-year growth[2]. - The net profit for the same period was HKD 300 million, which is a 20% increase compared to the previous year[2]. - The group’s revenue decreased by 4.9% to HKD 1,129.3 million for the year ended December 31, 2021, compared to HKD 1,187.6 million in 2020, primarily due to the impact of COVID-19 on core business revenue[26]. - The group recorded a profit attributable to shareholders of HKD 552.5 million for the year, a significant recovery from a loss of HKD 456.1 million in 2020, mainly due to a net gain of HKD 180.1 million from investment property valuations[26]. - Basic earnings per share increased to HKD 189.4 cents, compared to a loss of HKD 156.2 cents per share in 2020; however, basic earnings excluding non-cash items decreased by 4.2% to HKD 144.1 cents[26]. - The group aims to strengthen its core department store business and enhance rental income from commercial property investments, which are key profit contributors[27]. - The company reported a profit of HKD 552,495,000 for the year ended December 31, 2021, compared to a loss in the previous year[140]. - Total comprehensive income for the year was HKD 379,532,000, reflecting a significant recovery from the previous year's loss[141]. Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.50 per share, subject to shareholder approval at the annual general meeting[4]. - The board proposed a final dividend of HKD 0.46 per share for the year, down from HKD 0.72 per share in 2020, resulting in a total dividend of HKD 0.80 per share for 2021[26]. - The company declared dividends totaling HKD 210,019,000 for the year, reflecting its commitment to returning value to shareholders[140]. - The total dividend paid to shareholders was HKD 309,116,000 in 2021, compared to HKD 221,920,000 in 2020[143]. Corporate Governance - The company has established an audit committee to enhance corporate governance and oversight of financial reporting[11]. - The company has adopted the corporate governance principles and complied with the Hong Kong Stock Exchange's Listing Rules, ensuring high standards of corporate governance[84]. - The board consists of 8 members, including 4 executive directors and 4 independent non-executive directors, with all directors attending 100% of board meetings and annual general meetings[89]. - The board is responsible for the overall business strategy, policies, and plans, requiring approval for all major acquisitions, sales, and capital transactions[92]. - The company established an ESG committee to assist the board in fulfilling its responsibilities regarding environmental, social, and governance matters[95]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[19]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[18]. - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next fiscal year[17]. - The company plans to continue focusing on market expansion and new product development strategies moving forward[136]. Operational Efficiency - The company plans to implement cost-saving measures aimed at reducing operational expenses by 5% over the next year[18]. - Customer satisfaction ratings improved to 90%, reflecting the success of recent service enhancements[19]. - Research and development expenses increased by 18%, totaling $150 million, to support new technology initiatives[17]. Financial Position and Assets - The group's total equity as of December 31, 2021, was HKD 19,216.3 million, reflecting a 0.3% increase from HKD 19,155.5 million in 2020[28]. - Cash and listed securities amounted to approximately HKD 3,540.3 million as of December 31, 2021, providing sufficient liquidity for capital commitments and operational needs[28]. - The total assets of the company in 2021 were HKD 20,639 million, remaining stable compared to HKD 20,633 million in 2020[122]. - The company’s total liabilities in 2021 were HKD 1,391 million, a decrease from HKD 1,447 million in 2020[122]. Investment and Property Management - The total fair value of investment properties held by the group as of December 31, 2021, is HKD 15,529 million, representing 75% of the total assets of the group[128]. - The company recorded a net gain from investment properties of HKD 180,076 thousand in 2021, compared to a loss of HKD 886,418 thousand in 2020[200]. - The company’s investment properties include commercial properties in Hong Kong, Houston, and Melbourne, with a total area of approximately 1,358,000 square feet[124]. Health and Safety Measures - The company is closely monitoring the impact of COVID-19 on its operations and will implement necessary health measures for shareholder meetings[9]. - The company plans to maintain strict health and safety measures in office properties and department stores due to the rapid development of the pandemic in Hong Kong[38]. - The company has implemented strict health and safety measures in its office properties and department stores to prevent the spread of the pandemic[60]. Shareholder Information - The major shareholder, 永安國際集團有限公司, holds 180,545,138 shares, which is 61.956% of the issued voting shares[78]. - Publicly held shares exceed 25% of the company's total issued shares[79]. - The company repurchased its own shares during the year to enhance the net asset value per share and earnings per share[81]. Risk Management - The board confirmed the establishment and maintenance of an effective risk management and internal control system to protect the group's assets[111]. - The risk management system was reviewed by an external consultant, who did not identify any major new risks during the year[113]. - The group monitors the default risk of specified debtors and recognizes expected credit losses when they exceed the carrying amount[166].

Revenue Performance - The group's revenue decreased by 8.2% to HKD 560.9 million for the six months ended June 30, 2021, compared to HKD 611.3 million in 2020, primarily due to a decline in department store sales[9]. - The total reported segment revenue for the first half of 2021 was HKD 615,610,000, a decrease of 8.3% from HKD 671,067,000 in the same period of 2020[63]. - The company's retail business generated sales of HKD 320,783,000, a decrease of 12.7% from HKD 367,773,000 in the previous year[57]. Profitability - The attributable profit for the period was HKD 399.6 million, a significant recovery from a loss of HKD 337.8 million in 2020, mainly due to a net gain of HKD 168.6 million from investment property valuations[9]. - Operating profit increased to HKD 308.7 million from HKD 142.3 million in the previous year, marking a substantial improvement[31]. - The net profit for the period was HKD 399.7 million, a turnaround from a loss of HKD 337.5 million in 2020[31]. - The overall comprehensive income for the period was HKD 331.1 million, compared to a loss of HKD 409.0 million in 2020[34]. Earnings Per Share - Basic earnings per share increased by 197.4% to HKD 0.922, compared to HKD 0.310 in 2020, excluding the net gain from investment property valuations[9]. - The company reported a consolidated profit attributable to shareholders of HKD 399,578,000 for the six months ended June 30, 2021, compared to a loss of HKD 337,811,000 for the same period in 2020, resulting in a basic earnings per share of HKD 136.9 compared to a loss of HKD 115.6[75]. Dividends - The interim dividend declared is HKD 0.34 per share, totaling HKD 99,165,000, compared to HKD 0.11 per share and HKD 32,120,000 in 2020[10]. - The company declared a final dividend of HKD 0.72 per share for the six months ended June 30, 2021, compared to HKD 0.65 per share in 2020, resulting in a total dividend payment of HKD 210,019,000 for 2021 versus HKD 189,801,000 for 2020, representing an increase of approximately 10.7%[90]. Assets and Liabilities - As of June 30, 2021, the group's total equity was HKD 19,271.3 million, a 0.6% increase from December 31, 2020[11]. - Total assets decreased slightly to HKD 20,301,351 thousand as of June 30, 2021, compared to HKD 20,186,786 thousand at the end of 2020, reflecting a 0.57% increase[39]. - The company's total liabilities decreased to HKD 997,866 thousand from HKD 1,000,735 thousand, a reduction of 0.19%[39]. - Total segment assets increased to HKD 16,122,298,000 as of June 30, 2021, compared to HKD 16,070,018,000 at the end of 2020, representing a growth of 0.3%[68]. Cash Flow and Liquidity - The group's cash and listed securities amounted to approximately HKD 3,598.2 million, providing sufficient liquidity for current obligations and operational needs[11]. - The net cash generated from operating activities was HKD 73,062,000, significantly up from HKD 10,983,000 in the same period last year[51]. - Cash and cash equivalents rose to HKD 2,671,638 thousand from HKD 2,570,282 thousand, marking an increase of 3.93%[39]. Investment Properties - Property investment income for the six months ended June 30, 2021, was HKD 239.8 million, a decrease of 5.9% from HKD 254.8 million in 2020[19]. - The net gain from investment property valuations was HKD 168,631,000, a recovery from a loss of HKD 427,473,000 in the previous year[66]. - Total income from investment properties for the six months ended June 30, 2021, included a net gain of HKD 168,631,000, a significant recovery from a net loss of HKD 427,473,000 in the previous year[82]. Market Outlook - The group is cautiously optimistic about local consumption recovery due to improvements in the labor market and government initiatives, including a HKD 1.8 million lottery for vaccinated customers[24]. - The overall occupancy rate of commercial investment properties in Hong Kong dropped to 94% from 98% in 2020, primarily due to a decrease in rental rates during new lease signings and renewals[19]. Corporate Governance - The company complied with the corporate governance code as per the Hong Kong Stock Exchange during the six months ended June 30, 2021[113]. - The major shareholder, Wing On Corporate Management (BVI) Limited, holds 61.902% of the issued share capital, equivalent to 180,545,138 shares[124].

Financial Performance - The group's revenue decreased by 13.2% to HKD 611.3 million for the six months ended June 30, 2020, compared to HKD 704.4 million in 2019[8]. - The group recorded a loss attributable to shareholders of HKD 337.8 million, a significant decline from a profit of HKD 575.8 million in the same period of 2019[8]. - Basic earnings per share decreased by 70.8% to HKD 0.31, down from HKD 1.06 in 2019[8]. - The group experienced a significant operating profit decline to HKD 142.3 million from HKD 360.6 million in the same period last year[22]. - The net loss attributable to the company for the period was HKD 337.5 million, compared to a profit of HKD 576.1 million in 2019[22]. - The company reported a net loss of HKD 337,811 for the six months ended June 30, 2020, compared to a profit in the same period last year[26]. - The total comprehensive income for the period was HKD 161,115,000, a decrease from HKD 190,708,000 in the same period of 2019[30]. - The company reported a pre-tax loss of HKD 337,811,000 for the six months ended June 30, 2020, compared to a profit of HKD 575,767,000 for the same period in 2019[47]. Dividends and Shareholder Returns - The group declared an interim dividend of HKD 0.11 per share, totaling HKD 32.12 million, compared to HKD 0.38 per share and HKD 111.52 million in 2019[8]. - The interim dividend declared for the six months ended June 30, 2020, was HKD 32,120,000, a significant decrease from HKD 111,516,000 for the same period in 2019[57]. - The company declared and paid dividends amounting to HKD 111,474,000 during the reporting period[31]. Assets and Liabilities - The group's equity as of June 30, 2020, was HKD 18,936.7 million, a decrease of 3.1% from HKD 19,558.5 million as of December 31, 2019[9]. - Total borrowings decreased by approximately HKD 19.4 million to HKD 83.9 million as of June 30, 2020, due to repayments and exchange rate differences[10]. - As of June 30, 2020, total assets less current liabilities amounted to HKD 19,800,723, a decrease of 3.06% from HKD 20,425,841 as of December 31, 2019[24]. - Non-current assets decreased to HKD 15,580,525 from HKD 16,090,297, reflecting a decline of 3.16%[24]. - Current assets totaled HKD 16,403,390, down from HKD 16,942,963, indicating a decrease of 3.18%[24]. - Total liabilities decreased to HKD 518,080 from HKD 593,377, reflecting a decline of 12.67%[24]. Operational Highlights - The department store business revenue fell by 20% to HKD 367.8 million, down from HKD 459.6 million in 2019, primarily due to the impact of COVID-19[13]. - The group received a government subsidy of HKD 5.3 million under the employment support scheme during the reporting period[13]. - The overall occupancy rate for the group's commercial properties in Hong Kong remained approximately 98%, down from 99% in 2019[14]. - The group reported a loss attributable to a joint venture in the automotive dealership business in China of HKD 6.5 million, compared to a loss of HKD 5.8 million in 2019[15]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of HKD 204,130,000 for the six months ended June 30, 2020, compared to a cash inflow of HKD 183,313,000 in the same period of 2019[31]. - The net cash used in financing activities was HKD 232,478,000 for the six months ended June 30, 2020, compared to HKD 160,582,000 in the same period of 2019[31]. - The company's cash and cash equivalents stood at HKD 2,775,333, a decrease from HKD 2,993,692 as of December 31, 2019[24]. Employee and Management Costs - The group had a total of 636 employees as of June 30, 2020, down from 659 employees in the previous year[17]. - Employee costs (excluding directors' remuneration) decreased to HKD 96,024,000 from HKD 103,359,000 year-on-year[44]. - The total remuneration for key management personnel for the six months ended June 30, 2020, was HKD 20,663,000, an increase of 30% compared to HKD 15,923,000 for the same period in 2019[72]. Market and Economic Outlook - The group anticipates that local consumption will remain under pressure for the remainder of the year due to the ongoing COVID-19 pandemic[18]. - The group maintains a strong financial position to withstand the economic challenges posed by COVID-19[18].

Annual General Meeting and Dividends - The company plans to hold its 29th Annual General Meeting on June 4, 2020, to discuss the financial statements for the year ending December 31, 2019[3]. - The company will propose a final dividend at the AGM, subject to shareholder approval[4]. - The financial report for the year ending December 31, 2019, will be accepted at the AGM[4]. - The board proposed a final dividend of HKD 0.65 per share for 2019, compared to HKD 0.42 per share in 2018, resulting in a total dividend of HKD 1.03 per share for the year[27]. - The company plans to maintain a dividend payout ratio of approximately 50% of the annual basic profit, barring unforeseen circumstances[42]. Board of Directors and Governance - The board of directors will seek re-election for retiring directors, including Mr. Guo Zhiqiang, Mr. Guo Zhi, and Ms. Tan Huizhu[9]. - The board of directors consists of 8 members, including the chairman and the CEO, who are brothers[80]. - The company has adopted the corporate governance code and complied with the relevant listing rules during the fiscal year ending December 31, 2019[78]. - All directors confirmed compliance with the standards set forth in the securities trading guidelines during the fiscal year[79]. - The board has established an ESG committee to implement policies aimed at reducing carbon emissions and improving employee welfare[58]. - The independent non-executive directors confirmed their independence annually as per the listing rules[86]. - The board is responsible for determining the overall business strategy, policies, and plans of the group[86]. Financial Performance - For the year ended December 31, 2019, the group's revenue decreased by 6.2% to HKD 1,371.5 million, down from HKD 1,462.8 million in 2018, primarily due to a decline in department store sales[27]. - The profit attributable to shareholders for the year was HKD 765.7 million, a decrease of 54.9% from HKD 1,697.7 million in 2018, mainly due to reduced net gains from investment property valuations[27]. - Basic earnings per share for 2019 were HKD 2.61, down from HKD 5.78 in 2018; excluding net gains from investment property valuations, basic earnings per share increased by 48.3% to HKD 1.907[27]. - The group recorded a net loss of HKD 10.6 million from foreign currency exchange, compared to a loss of HKD 2.4 million in 2018[37]. - The group anticipates continued challenges in the Hong Kong retail market in the first half of 2020 due to the impact of COVID-19[39]. Assets and Liabilities - As of December 31, 2019, total equity was HKD 19,547.3 million, an increase of 2.4% from HKD 19,086.5 million at the end of 2018[29]. - The company's total liabilities were HKD 1,438 million, an increase of 6.1% from HKD 1,356 million in 2018[119]. - Total assets increased to HKD 21,019 million in 2019, up 2.7% from HKD 20,469 million in 2018[119]. - The fair value of investment properties was HKD 16,090 million, accounting for 77% of the total assets[124]. - The company's equity attributable to shareholders totaled HKD 19,547,302,000, compared to HKD 19,080,443,000 in 2018, showing an increase of 2.4%[139]. Cash Flow and Liquidity - The group has a strong cash position and does not anticipate any liquidity issues in the near future[30]. - The group had cash and listed securities of approximately HKD 3,658.6 million as of December 31, 2019, providing sufficient liquidity for capital commitments and operational needs[29]. - The cash flow from operating activities for the year ended December 31, 2019, was HKD 421,771,000, an increase from HKD 217,497,000 in 2018, representing a growth of 93.8%[160]. - The net cash from operating activities was HKD 384,798,000 for 2019, compared to HKD 146,758,000 in 2018, indicating a significant increase of 162.5%[160]. Shareholder Information - Major shareholders include 永安國際集團有限公司, Wing On Corporate Management (BVI) Limited, and Kee Wai Investment Company (BVI) Limited, each holding 180,545,138 shares, accounting for 61.712% of the voting shares issued[72]. - Publicly held shares exceed 25% of the total issued shares of the company[73]. - The company reported a total equity of 1,508,298 shares held by key directors, representing 51.6% of the voting shares issued[66]. Risk Management and Compliance - The company has established a risk management policy to ensure consistency in measuring, controlling, monitoring, and reporting risks[108]. - The independent non-executive directors have reviewed and confirmed that the ongoing related party transactions are conducted within the normal course of business and are fair and reasonable[117]. - The external auditor has issued an unqualified opinion regarding the group's ongoing related party transactions, in compliance with the relevant accounting standards[118]. Employee and Social Responsibility - The company has been actively involved in social service organizations, reflecting its commitment to community engagement[20]. - The total employee cost, excluding directors' remuneration, was approximately HKD 211.2 million in 2019, down from HKD 222.2 million in 2018[38]. - Charitable donations for the year amounted to HKD 40,000, a decrease from HKD 83,000 in 2018[61]. Accounting Policies and Changes - The company adopted HKFRS 16 "Leases" effective January 1, 2019, which introduces a single accounting model for lessees, requiring recognition of right-of-use assets and lease liabilities for all leases, except for short-term leases and low-value assets[151]. - The adoption of HKFRS 16 significantly changed the cash flow presentation in the consolidated cash flow statement, with capitalized lease payments classified as financing activities rather than operating activities[159]. - The group recognizes expected credit losses based on a probability-weighted estimate of credit losses, with trade receivables measured using a lifetime expected credit loss model[181].

Financial Performance - The group's revenue decreased by 6.9% to HKD 704.4 million for the six months ended June 30, 2019, compared to HKD 756.6 million in 2018, primarily due to a decline in department store sales [7]. - Profit attributable to shareholders fell by 28.4% to HKD 575.8 million, down from HKD 804.4 million in 2018, mainly due to a decrease in net valuation gains from investment properties [7]. - Basic earnings per share decreased by 28.4% to HKD 196.1 cents, while the basic earnings per share excluding net valuation gains increased by 37.7% to HKD 106.2 cents [7]. - The net profit for the period was HKD 576.1 million, down from HKD 804.9 million in 2018, indicating a decline of about 28.4% [25]. - The profit before tax decreased to HKD 575,767,000 for the six months ended June 30, 2019, compared to HKD 804,404,000 for the same period in 2018, representing a decline of approximately 28.4% [68]. - The net profit for the six months ended June 30, 2019, was HKD 575,767, compared to HKD 564,243 for the same period in 2018, indicating a growth of about 2.7% [30]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 38 cents per share, totaling HKD 111,516,000, compared to HKD 28 cents per share totaling HKD 82,288,000 in 2018 [7]. - The interim dividend declared for the six months ended June 30, 2019, was HKD 111,516,000, compared to HKD 82,288,000 for the same period in 2018, marking an increase of around 35.5% [82]. - The company declared dividends amounting to HKD 82,278,000 during the period, reflecting its commitment to returning value to shareholders [35]. Assets and Liabilities - As of June 30, 2019, the group's total equity was HKD 19,517.8 million, an increase of 2.3% from HKD 19,086.5 million as of December 31, 2018 [8]. - Total assets as of June 30, 2019, amounted to HKD 20,403,584, an increase from HKD 19,978,144 as of December 31, 2018, representing a growth of approximately 2.1% [28]. - The company's liabilities decreased slightly, with total current liabilities at HKD 569,723 compared to HKD 490,529, indicating a rise of approximately 16.1% [27]. - The total liabilities increased to HKD 1,422,597,000 from HKD 1,355,566,000, representing a rise of 4.9% [63]. - The total amount of minimum future lease income receivable was HKD 1,268,364,000 as of June 30, 2019, slightly down from HKD 1,296,582,000 as of December 31, 2018 [74]. Cash Flow and Liquidity - The group's cash and listed securities amounted to approximately HKD 3,590.9 million, providing sufficient liquidity for current capital commitments and operational needs [8]. - Cash generated from operating activities for the six months ended June 30, 2019, was HKD 248,714,000, compared to HKD 89,325,000 for the same period in 2018, representing a significant increase [38]. - The net cash used in financing activities was HKD (160,582,000) for the six months ended June 30, 2019, compared to HKD (221,753,000) in the previous year, indicating improved cash flow management [38]. - Cash and cash equivalents as of June 30, 2019, were HKD 3,001,013,000, up from HKD 2,827,500, reflecting an increase of about 6.1% [27]. Investment Properties - Investment property income increased by 12.8% to HKD 254.5 million, with commercial property income in Hong Kong rising by 5.9% to HKD 182.6 million [14]. - The overall occupancy rate for commercial properties in Hong Kong rose to approximately 99% from 95% in 2018 [14]. - The group’s investment properties in Hong Kong and Australia are expected to continue providing stable rental income [19]. - The net revaluation gain from investment properties was HKD 266,731,000 for the six months ended June 30, 2019, down from HKD 577,116,000 in 2018, a decrease of approximately 53.8% [73]. Market Conditions and Outlook - The group expects challenging conditions for its department store business in the second half of the year due to increased social unrest in Hong Kong [19]. - The group has a strong financial position and a loyal customer base in the local market, which it aims to leverage for continued service quality [19]. Accounting Standards and Changes - The company adopted the modified retrospective approach for HKFRS 16 from January 1, 2019, with no restatement of comparative information [28]. - The company adopted HKFRS 16 for the first time on January 1, 2019, which introduced a single accounting model for lessees, impacting the financial statements [41]. - The total liabilities increased by HKD 25,303,000 in current liabilities due to the recognition of lease liabilities [51]. Shareholder Information - Major shareholder Wing On Corporate Management (BVI) Limited holds 180,545,138 shares, representing 61.522% of the voting rights [113]. - Major shareholder Kee Wai Investment Company (BVI) Limited also holds 180,545,138 shares, accounting for 61.522% of the voting rights [113]. - The total equity held by Dr. Kuo Chi-Pao is 1,508,298 shares, which is 0.514% of the issued voting shares [107].