Financial Performance - For the fiscal year ending December 31, 2023, the Group reported a loss after tax of approximately HK$22.4 million, compared to a loss of HK$4.8 million in 2022[22]. - The company reported a loss of approximately HK$5.18 million in 2023, compared to a loss of HK$1.6 million in 2022, primarily due to fluctuations in the stock market affecting fair value of listed equity investments[27]. - Administrative expenses increased to approximately HK$9.4 million in 2023 from HK$7.1 million in 2022, largely due to an increase in directors' emoluments[27]. - Other income for the year was HK$10,000, a significant decrease from HK$295,000 in 2022, which included a government subsidy of HK$192,000[35]. - The share price decreased by 35.00% during the year[51]. - Realized loss amounted to HK$17,508,000, with an unrealized loss of HK$36,253,000 at year-end[51]. - The fair value loss recognized was approximately HK$14,894,000, compared to an income of HK$0.17 million in 2022[53]. - The Group recorded unrealized losses of HK$6.906 million in 2023, compared to unrealized gains of HK$3.5 million in 2022, reflecting the adverse market conditions[33]. Investment Activities - The Group disposed of a significant portion of its listed investments, resulting in a substantial increase in gross proceeds from the disposal of financial assets at FVTPL compared to 2022[17][21]. - Gross proceeds from the disposal of financial assets at FVTPL increased significantly to HK$16.534 million in 2023 from HK$4.271 million in 2022, driven by the disposal of a substantial portion of listed investments[30]. - The Group did not make any new unlisted investments during the year[18][21]. - The company plans to focus on identifying and investing in both listed and unlisted investments with growth potential, without a specific industry focus[46]. - The Group's principal activities are investment holding, with detailed discussions found in the Management Discussion section of the annual report[91]. Financial Position - The Group's cash and cash equivalents increased to approximately HK$4,017,000 from HK$455,000 in the previous year[61]. - The gearing ratio at year-end was 66.33%, up from 25.71% in 2022[63]. - The margin loan from a securities broker decreased to approximately HK$2.415 million at year-end 2023, down from HK$10.505 million at year-end 2022, resulting in lower interest expenses[40]. - The Group held 14,635,763 shares, representing 1.61% of total shares at year-end[51]. - The Group's size relative to total assets for the investment in 康展投資 was 25.47% at year-end[59]. Management and Governance - Management emphasized the importance of vigilance and resilience to navigate ongoing economic challenges[10]. - The Board does not recommend the payment of a dividend for the Year, consistent with the previous year where no dividend was paid[92]. - The Group's remuneration committee will meet at least once a year to review the remuneration policy and packages for Directors and senior management[85]. - The Board established a schedule of matters specifically reserved for its decision and those reserved for management[199]. - The Board is responsible for corporate governance functions, including developing and reviewing policies and practices on risk management and compliance[200]. Market Environment - The overall operating environment faced uncertainties, with macroeconomic pressures including rising interest rates and geopolitical tensions impacting recovery[9][10]. - The Hang Seng index continued to decline, dropping 13.8% in 2023 after a 15.5% decline in 2022[16][20]. - The Group's principal activity is significantly affected by global economic volatility, impacting the earning power of business enterprises and stock market fluctuations[160]. Employee and Director Information - The Group had 6 employees and 5 Directors at Year End Date, with a remuneration policy that includes a 5% contribution to the MPF Scheme from both the Group and its employees[85]. - Staff remuneration accounted for approximately 57% of total administrative expenses, amounting to HK$5.469 million in 2023, up from HK$4.324 million in 2022[36]. - Each independent non-executive director received a director's fee of HK$100,000 per annum, which will remain the same for 2024[120]. - The independent non-executive directors are subject to retirement by rotation and re-election at each annual general meeting[115]. Compliance and Risk Management - The Group complies with legal and regulatory requirements, including Listing Rules and laws related to securities, taxation, and labor, ensuring operations align with applicable regulations[163]. - The Group promotes environmental protection through practices such as recycling and reducing energy consumption in daily operations[161][166]. - The Group's investment management agreement was confirmed to be fair and reasonable, conducted in the ordinary course of business[152]. Shareholder Communication - The Group maintains regular communication with shareholders through general meetings and announcements[171]. - The Company has sufficient public float as required under the Listing Rules[183].

Annual Report and Meeting Schedule - The annual report for the year ending December 31, 2023, will be delayed and is expected to be sent by June 5, 2024, or earlier [4]. - The annual general meeting has been rescheduled to take place on or before June 28, 2024, due to the delay in the annual report [6]. Shareholder Registration and Trading - The share transfer registration period will be suspended from May 24, 2024, to May 31, 2024, to determine the shareholders eligible to attend the annual general meeting [7]. - Trading of the company's shares has been suspended since April 2, 2024, pending further notice [8].

Financial Performance - The Group reported gross proceeds from operations of HK$16,534,000 in 2023, a significant increase from HK$4,271,000 in 2022, representing a growth of 286%[6] - Total revenue for the year was HK$30,000, compared to HK$1,176,000 in 2022, indicating a decline of 97.4%[6] - The Group incurred a loss before income tax of HK$22,401,000 in 2023, compared to a loss of HK$4,807,000 in 2022, reflecting an increase in losses of 366%[6] - The total comprehensive expense attributable to owners of the Company for the year was HK$37,295,000, compared to HK$4,638,000 in 2022, marking an increase of 704%[6] - Basic loss per share for 2023 was HK(18.49) cents, compared to HK(3.97) cents in 2022, indicating a deterioration in per-share performance[6] - The loss attributable to owners of the Company for 2023 was HK$22,401,000, compared to HK$4,807,000 in 2022, indicating a significant increase in losses[31] - The Group reported a loss after tax of approximately HK$22.4 million for the Year, compared to a loss of HK$4.8 million for the Year 2022[76] Asset and Liability Management - Non-current assets decreased to HK$6,734,000 in 2023 from HK$38,518,000 in 2022, a decline of 82.5%[7] - Current assets fell to HK$14,044,000 in 2023 from HK$21,098,000 in 2022, representing a decrease of 33.4%[7] - The Group's net assets dropped to HK$6,996,000 in 2023 from HK$44,291,000 in 2022, a decline of 84.2%[7] - The net asset value per share decreased to HK$0.06 as of December 31, 2023, down from HK$0.37 in 2022, based on net assets of HK$6,996,000[53] - The gearing ratio increased to 66.33% at year-end, compared to 25.71% at the end of 2022, indicating a higher level of financial leverage[100] Revenue Sources - The Group's revenue was primarily generated from Hong Kong, with significant dividend income from investments contributing over 10% of total revenue[13] - Dividend income for the year was HK$30,000, a decrease of 97.45% compared to HK$1,176,000 in 2022[20] - The fair value changes of financial assets at FVTPL resulted in net realized losses of HK$9,081,000 (revenue in nature) and HK$22,655,000 (capital in nature) for 2023, compared to losses of HK$21,664,000 and HK$0 in 2022 respectively[22] Expenses and Costs - Staff costs increased to HK$5,469,000 in 2023 from HK$4,324,000 in 2022, reflecting a rise in salaries and benefits[31] - Administrative expenses increased to approximately HK$9.4 million in 2023 from HK$7.1 million in 2022, attributed to an increase in directors' emolument[81] - Other income for the year was HK$10,000, a significant decrease from HK$295,000 in 2022, primarily due to the absence of government subsidies[88] - Investment management expenses decreased to HK$560,000 from HK$960,000 in 2022, reflecting a reduction in fees paid to Opus Capital[90] Financing Activities - The margin loan from a securities broker decreased to approximately HK$2,415,000 in 2023 from HK$10,505,000 in 2022, secured by financial assets valued at HK$9,513,000[33] - The daily interest rate on the margin loan ranged from 12.00% to 20.00% in 2023, compared to 9.252% to 20.00% in 2022[33] - The Company issued convertible notes with a principal amount of HK$4,000,000 on 29 December 2023, maturing on 29 December 2025, with an interest rate of 8% per annum[35] - If the convertible notes are fully converted, an additional 24,096,384 ordinary shares will be issued, representing 16.59% of the enlarged issued share capital[36] - The company issued convertible bonds totaling HK$4,000,000 with an annual interest rate of 8%, maturing on December 29, 2025, which will increase the share capital by approximately 16.59% upon full conversion[39] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with its provisions, except for the separation of the roles of Chairman and Chief Executive Officer since June 10, 2021[117] - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the year[119] - The company has no executive directors or Chief Executive Officer as of June 10, 2021, with a non-executive director serving as Chairman[117] - The company is in the process of appointing a suitable candidate for the role of executive director and Chief Executive Officer[117] - The company has confirmed that all directors have adhered to the securities transaction code of conduct throughout the year[122] Future Outlook and Events - Management is exploring options to raise additional equity funding to strengthen the balance sheet and capture investment opportunities[110] - The annual general meeting is scheduled for May 31, 2024, with the register of members closing from May 24 to May 31, 2024[120] - The annual report for the year ending December 31, 2023, will be published on the Stock Exchange and the company's website as soon as possible[121] - There are no major subsequent events reported after the year-end date[102] Audit and Valuation - The company was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the consolidated financial statements due to significant matters described in the disclaimer of opinion[58] - The fair value of the investment was determined based on limited financial information and a valuation performed by an independent external valuer[60] - A fair value loss of approximately HK$14,894,000 was recognized as other comprehensive expense, primarily due to a reduction in the investment in a zinc and lead mine in the PRC[77] - The investment accounted for as financial asset at fair value through other comprehensive income represents an indirect effective minority interest of 7.94% in a zinc and lead mine in the PRC[77]

Financial Reporting Errors - The company clarified errors in the 2022 annual report, specifically on pages 98 and 101 regarding investment details[3][4] - The company emphasized that all other information in the 2022 annual report remains unchanged, and this clarification serves as supplementary information[4] Investment Details - As of December 31, 2022, the company held a 14.70% stake in Rakarta Limited, with a cost value of HK$54.05 million and a fair value of HK$20.19 million[3] - The dividend income from Rakarta Limited for the year was reported as zero, with net assets attributable to the investment being (HK$2.545 million)[3] Board Composition - The board of directors consists of one non-executive director and four independent non-executive directors as of the announcement date[5]

Financial Performance - The Group reported a loss after tax of approximately HK$10.28 million for the period, compared to a loss of HK$4.7 million for the same period in 2022[16]. - Loss before income tax for the six months ended June 30, 2023, was HK$10,275,000, compared to a loss of HK$4,691,000 in 2022, reflecting an increase in loss of approximately 119%[117]. - Total comprehensive expense attributable to owners of the Company for the period was HK$10,275,000, up from HK$4,691,000 in the previous year, marking an increase of about 119%[117]. - The loss attributable to the owners of the Company for the period was HK$10,275,000, compared to HK$4,691,000 in 2022, reflecting an increase in losses of approximately 118.5%[154]. Revenue and Proceeds - Gross proceeds from operations for the six months ended June 30, 2023, were HK$7,659,000, a significant increase from HK$2,950,000 in the same period of 2022, representing a growth of approximately 159%[117]. - Revenue for the same period was HK$20,000, a decrease from HK$26,000 in 2022, indicating a decline of about 23%[117]. - Gross proceeds from the disposal of financial assets at FVTPL which are revenue in nature decreased by approximately HK$677,000, totaling HK$2.25 million for the period[18]. - Gross proceeds from the disposal of financial assets at FVTPL which are capital in nature increased significantly to HK$5.39 million, compared to HK$0 in the previous period[18]. Expenses - Administrative expenses increased to approximately HK$4.22 million from HK$3.83 million in the previous period[20]. - Investment management expenses were reduced from HK$0.48 million to HK$0.32 million during the period[16]. - Staff costs increased to HK$2,398,000 from HK$2,129,000, marking a rise of approximately 12.6%[151]. - Depreciation of plant and equipment increased to HK$108,000 from HK$77,000, reflecting a rise of approximately 40.3%[159]. Investment Performance - The fair value loss of revenue in nature listed equity investments at FVTPL was approximately HK$0.78 million, while the loss for capital in nature investments was approximately HK$4.18 million[20]. - The overall performance of listed investments was mixed at the period end date, reflecting varying industry sector results[11]. - Significant investment in ITC Properties Group Ltd saw a share price decrease of 4% during the period, with an unrealised loss of HK$41,497,000 at period end[36]. - Dynamic Growth's share price decreased by 35.58%, with realised losses of HK$4,902,000 and unrealised losses of HK$7,790,000 at period end[42]. Cash Flow and Liquidity - The Group's cash and cash equivalents at the Period End Date were approximately HK$220,000, down from HK$455,000 at 31 December 2022[52]. - For the six months ended June 30, 2023, cash generated from operations was HK$61,000, a significant decrease from HK$674,000 in the same period of 2022, representing a decline of approximately 91%[124]. - The company reported a net cash outflow from investing activities of HK$847,000, compared to a net cash outflow of HK$950,000 in the previous year[124]. - The net decrease in cash and cash equivalents for the period was HK$235,000, compared to a net decrease of HK$1,970,000 in the same period last year[124]. Assets and Liabilities - Net assets as of June 30, 2023, were HK$34,016,000, down from HK$44,291,000 at the end of 2022, representing a decrease of approximately 23%[121]. - Current liabilities decreased to HK$13,195,000 as of June 30, 2023, from HK$15,325,000 at the end of 2022, indicating a reduction of approximately 14%[121]. - The gearing ratio at the Period End Date was 27.95%, compared to 25.71% at 31 December 2022[54]. - Financial assets at FVTPL decreased to HK$23,614,000 as of June 30, 2023, from HK$26,997,000 as of December 31, 2022, representing a decline of approximately 12.5%[162]. Corporate Governance - The Company complied with the corporate governance code provisions during the period[92]. - The roles of chairman and chief executive are separated, and the Company is actively seeking a new executive director[93]. - The audit committee consists of four independent non-executive directors who reviewed the accounting principles and practices adopted by the group[98]. - The directors confirmed full compliance with the Model Code regarding securities transactions throughout the reporting period[100]. Market Conditions - The Hang Seng Index dropped by 6.1% between January 3, 2023, and June 30, 2023, indicating market volatility[10]. - The global macroeconomic outlook for the latter half of 2023 is mixed, with risks including the fragile situation in Ukraine and potential financial market instability[77]. Employee Information - The Group had 7 employees and 5 Directors, with remuneration packages including monthly salary and contributions to the MPF Scheme[70]. - The Group encourages on-the-job training and reimburses employees for job-related training courses[76]. - Directors' remuneration increased to HK$759,000 in 2023 from HK$150,000 in 2022[187]. Tax and Compliance - The Group has unused tax losses of HK$461,068,000 available to offset against future profits, slightly up from HK$450,793,000 at the end of 2022[148]. - The financial statements were prepared in accordance with the applicable disclosure requirements of the Listing Rules and HKAS 34, and were approved for issue by the Board on August 25, 2023[126][127].

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承 擔任何責任。 PROSPERITY INVESTMENT HOLDINGS LIMITED ...

Financial Performance - The Group reported a loss after tax of approximately HK$4.8 million for the Year, an improvement from a loss of HK$16 million in 2021[21]. - Gross proceeds from the disposal of financial assets at FVTPL decreased substantially to HK$3.1 million in 2022 from HK$30.9 million in 2021[27]. - Dividend income for the Year was HK$1.2 million, down from HK$2.3 million in 2021[27]. - Other comprehensive income included a fair value gain on financial assets of approximately HK$0.17 million, compared to a loss of HK$24.04 million in 2021[22]. - The Group reported a loss of approximately HK$1.6 million from revenue nature listed equity investments at FVTPL, compared to a loss of HK$1.8 million in 2021[29]. - A gain of approximately HK$4.5 million was recorded from capital nature listed equity investments at FVTPL, a significant improvement from a loss of HK$1.5 million in the previous year[29]. - Administrative expenses decreased to approximately HK$7.1 million from HK$9.3 million in 2021, with staff remuneration accounting for about 56% of total administrative expenses[29][34]. - Other income for the year was HK$295,000, up from HK$0 in 2021, primarily due to government subsidies under the Employment Support Scheme[33][36]. - The company's stock price decreased by 13.79% during the year[55]. - The Group's unrealized loss at year-end for one significant investment amounted to HK$49.2 million, after an impairment loss of HK$1.3 million[53]. - The share price of another significant investment decreased by 38.10% during the year, with an unrealized loss of HK$11.3 million at year-end[54]. Market Conditions - The Hang Seng Index dropped 15.5% in the Year, following a decline of 14.1% in 2021[15]. - The economic environment in Hong Kong remained challenging, influenced by global inflation and COVID-19 restrictions[8][9]. - The overall market performance is expected to vary significantly in 2023 due to geopolitical tensions and financial market instability[10]. Investment Strategy - The Group's strategy includes identifying and investing in both listed and unlisted investments with growth potential, without a specific industry focus[43][47]. - The Group aims to enhance shareholder value by improving earnings through ongoing projects and selective portfolio replenishment[50][51]. - The Group did not make any new unlisted investments during the Year[17]. Financial Management - Investment management expenses were reduced from HK$4.2 million to HK$0.96 million[21]. - Finance costs decreased by HK$0.3 million due to the repayment of margin loans[21]. - The margin loan from a securities broker at year-end was approximately HK$10.5 million, down from HK$12.1 million in 2021, with related interest expenses decreasing to HK$1.1 million from HK$1.4 million[41]. - The gearing ratio at year-end was 25.71%, an increase from 22.72% in the previous year[67]. - The group had cash and cash equivalents of approximately HK$455,000, down from HK$2,488,000 in the previous year[60]. Corporate Governance - The Board does not recommend the payment of a dividend for the year, consistent with the previous year[95]. - The Company has confirmed the independence of all INEDs in accordance with Rule 3.13 of the Listing Rules[126][132]. - The Company has maintained appropriate insurance cover for potential legal actions against the Directors[128]. - The INEDs have extensive experience, with backgrounds in law, finance, and corporate governance, contributing to the Company's oversight[119][120][124]. - The roles of chairman and chief executive have been performed by the same individual, which the board believes is in the best interest of the group for consistent leadership[198]. Employee and Director Information - The Group had 8 employees and 4 directors at year-end, with a compensation policy that includes a 5% contribution to the MPF scheme from both the Group and its employees[90]. - Each Independent Non-Executive Director (INED) received a director's fee of HK$100,000 per annum, which will remain the same for 2023[123][129]. - No Director proposed for re-election has a service contract that is not determinable within one year without compensation[125][131]. Compliance and Risk Management - The Board is not aware of any significant non-compliance with relevant laws and regulations affecting the Group[166]. - The Group engages an experienced investment director and manager to mitigate risks associated with investment price fluctuations[162]. - The Group promotes environmental protection practices, including recycling and reducing energy consumption[164].