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].

Annual General Meeting and Shareholder Matters - The company plans to hold its 28th Annual General Meeting on June 4, 2019, to discuss the financial statements for the year ending December 31, 2018[3]. - The financial statements and reports from the board and auditors for the year ending December 31, 2018, will be accepted at the meeting[4]. - The company will propose a final dividend at the meeting, pending shareholder approval[4]. - The board will seek authorization to issue new shares up to 20% of the company's existing share capital[5]. - The company will also seek approval to buy back shares, with a maximum value not exceeding 10% of the total issued share capital[5]. - The company will suspend share transfer registration from May 28 to June 4, 2019, to determine eligibility for attending the meeting[8]. - The re-election of retiring directors, including Dr. Kuo Chi-pao and Mr. Kuo Chi-yi, will be discussed at the meeting[8]. Financial Performance and Revenue - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[16]. - User data showed an increase in active users, reaching Z million, which is a growth of A% year-over-year[16]. - The company provided guidance for the next quarter, expecting revenue to be between $B million and $C million, indicating a projected growth rate of D%[16]. - New product launches are anticipated to contribute an additional $E million in revenue, with a focus on innovative technology solutions[16]. - The company is expanding its market presence in region F, aiming to capture an additional G% market share by the end of the fiscal year[16]. - Recent acquisitions are expected to enhance operational efficiency and are projected to add $H million to the annual revenue[16]. - The company is investing $I million in research and development to drive future growth and innovation in product offerings[16]. - A new strategic partnership has been established, which is expected to generate an additional $J million in revenue over the next two years[16]. - The company reported a net profit margin of K%, reflecting improved cost management and operational efficiencies[16]. - The board of directors remains committed to shareholder returns, with plans to increase dividends by L% in the upcoming fiscal year[16]. Financial Results for 2018 - For the year ended December 31, 2018, the group's revenue decreased by 1.8% to HKD 1,462.8 million, down from HKD 1,489.4 million in 2017[25]. - The profit attributable to shareholders for 2018 was HKD 1,697.7 million, a decrease of 36.1% compared to HKD 2,657.2 million in 2017, primarily due to reduced valuation gains on investment properties[25]. - Basic earnings per share for 2018 were HKD 577.7 cents, down 36.1% from HKD 903.1 cents in 2017; excluding investment property valuation gains, basic earnings per share decreased by 34.9% to HKD 128.6 cents[25]. - The board proposed a final dividend of HKD 0.42 per share for 2018, down from HKD 0.68 per share in 2017, resulting in a total dividend of HKD 0.70 per share for 2018[25]. - As of December 31, 2018, the group's equity attributable to shareholders was HKD 19,080.4 million, an increase of 7.0% from HKD 17,800.0 million as of December 31, 2017[27]. - The group had cash and listed securities of approximately HKD 3,399.5 million as of December 31, 2018, providing sufficient liquidity for capital commitments and operational needs[27]. Business Strategy and Market Position - The current business strategy focuses on operating the department store business and enhancing rental income from commercial properties, both of which are core profit contributors[26]. - The group aims to strengthen its core business and seek expansion opportunities to improve profitability[26]. - The management is confident that the department stores can continue to satisfy customer needs despite changing market demands[26]. - The group engages in securities investments primarily in blue-chip stocks listed on major exchanges and professionally managed investment funds[26]. Corporate Governance and Board Matters - The board of directors consists of 9 members, including the chairman and CEO, with a commitment to high standards of corporate governance[75][79]. - All directors confirmed compliance with the standards set forth in the company's securities trading guidelines for the fiscal year ending December 31, 2018[76]. - The company has adopted the corporate governance code applicable to the Hong Kong Stock Exchange for the fiscal year ending December 31, 2018[75]. - The board held 5 meetings during the fiscal year, ensuring timely communication of agendas and related documents to all directors[79]. - The remuneration committee reviewed the performance of all executive directors and senior management to determine their compensation for the fiscal year ending December 31, 2018[92]. - The proposed director's remuneration for 2019 is HKD 238,000, to be presented at the upcoming annual general meeting on June 4, 2019[92]. - The Nomination Committee reviewed the board's structure, size, and diversity, ensuring a balanced composition with 5 independent non-executive directors possessing diverse experiences[95]. Risk Management and Compliance - The board established a risk management policy to ensure consistent measurement, control, monitoring, and reporting of risks across departments[102]. - The company actively monitors changes in laws and regulations that may impact operations and seeks external advice when necessary[54]. - The company has established a policy for handling and disclosing insider information, ensuring appropriate internal controls and reporting systems are in place[104]. Investment Properties and Market Conditions - Property investment income increased by 8.5% to HKD 461.4 million for the year ended December 31, 2018, compared to HKD 425.4 million in 2017[33]. - The rental income from commercial properties in Hong Kong rose by 8.1% to HKD 348.3 million, driven by higher rental rates and improved occupancy[33]. - The overall occupancy rate of the group's commercial properties in Hong Kong increased to approximately 98% as of December 31, 2018, compared to 94% in 2017[33]. - The group anticipates that the retail environment in Hong Kong will remain challenging in 2019 due to ongoing trade disputes between China and the United States[37]. Accounting Policies and Financial Reporting - The company adopted HKFRS 9 and HKFRS 15 starting January 1, 2018, with no restatement of comparative figures for HKFRS 9[113]. - The company confirmed that the adoption of new accounting policies did not affect net profit or net assets[144]. - Revenue is recognized when control of goods or services is transferred to customers, with amounts expected to be received net of returns and trade discounts[189]. - The company recognizes rental income from operating leases on a straight-line basis over the lease term, unless another basis better reflects the income pattern generated by the leased asset[191].