Financial Performance - The financial leasing segment recorded a profit of HK$75.0 million in 2022, compared to a loss of HK$42.2 million in 2021[16]. - The food additives business reported a net loss of HK$4.5 million in 2022, an improvement from a loss of HK$11.6 million in 2021[16]. - The investment segment achieved a net profit of HK$7.9 million in 2022, up from HK$2.5 million in 2021[16]. - The trading segment incurred a net loss of HK$7.1 million in 2022, contrasting with a profit of HK$6.6 million in 2021[16]. - The Group's overall net loss was HK$43.6 million in 2022, an improvement from a net loss of HK$62.7 million in 2021[16]. - The net profit attributable to the owners of the Company was HK$7.0 million in 2022, compared to a net loss of HK$40.6 million in 2021[16]. - The Group recorded revenue of HK$77.8 million in 2022, down from HK$123.6 million in 2021, representing a decrease of approximately 37%[25]. - The Group achieved a net profit of HK$43.6 million in 2022, a significant improvement from a net loss of HK$62.7 million in 2021, marking a turnaround of approximately HK$106.3 million[32]. - The financial leasing segment contributed a profit of HK$75.1 million in 2022, compared to a loss of HK$42.2 million in 2021, indicating a recovery of approximately HK$117.3 million[26]. - The investment segment recorded a net profit of HK$12.0 million in 2022, up from HK$2.5 million in 2021, reflecting an increase of 380%[28]. - The trading segment incurred a net loss of HK$7.1 million in 2022, compared to a profit of HK$6.6 million in 2021, primarily due to inventory write-offs of HK$7.2 million[31]. - The food additives segment reported a net loss of HK$7.6 million in 2022, an improvement from a loss of HK$11.6 million in 2021, reducing the loss by approximately 34%[30]. Revenue and Expenses - Corporate and other expenses decreased to HK$29.0 million in 2022 from HK$33.9 million in 2021, a reduction of approximately 14%[32]. - The Group's tax expense decreased to HK$0.5 million in 2022 from HK$4.1 million in 2021, indicating a reduction of approximately 88%[32]. - The Trading Segment's revenue decreased to HK$60.5 million in 2022 from HK$103.5 million in 2021, with a gross profit of HK$14.7 million, down from HK$15.7 million, reflecting a 6.4% decline[43][46]. - The Investment Segment reported revenue and gross profit of HK$9.1 million in 2022, a 19% decrease from HK$11.2 million in 2021, primarily due to early loan settlements and a three-month rental income waiver[40][45]. - The Food Additives Segment generated revenue of HK$2.1 million in 2022, down from HK$5.7 million in 2021, but achieved a gross profit of HK$0.5 million compared to a gross loss of HK$3.2 million in the previous year[42][45]. - The Group's overall revenue decreased, but gross profit improved significantly from a loss in 2021 to a profit in 2022, mainly due to a reversal of net interest spread from a financial leasing project[47][52]. Strategic Initiatives and Future Plans - The Group plans to explore new potential growth opportunities and business expansion to diversify income sources in 2023[17]. - The reopening of the mainland border is expected to significantly increase face-to-face discussions and trade flow[17]. - The Group aims to maintain a prudent approach in seeking undervalued assets for long-term growth[17]. - The Group aims to seek new growth opportunities and diversify revenue sources as the market normalizes post-COVID-19[19]. - The Group plans to adopt a conservative investment strategy, focusing on a balanced portfolio of equity, debt, and real estate to ensure stable returns and necessary liquidity[157]. - The Group aims to adjust sales strategies and optimize product mix in response to changing consumer behavior post-COVID-19, enhancing competitiveness in the market[155]. - The Group is exploring new business models to thrive under current regulatory requirements and targeting various sectors for growth[156]. - The Group plans to optimize production processes and conduct R&D for new products to reduce operating costs and expand market share[164]. Credit Risk and Management - The Group's major credit risk is primarily related to finance lease receivables and loan receivables, sourced from financial leasing services in the PRC and loan financing services in Hong Kong[67][68]. - BJEG Group conducts due diligence on customers, analyzing their operating history and financial information to determine loan terms and assess risks[79]. - The operation division closely monitors the financial condition of lessees and guarantors, requesting semi-annual financial statements[93]. - The company may grant a limited time extension, usually not exceeding three months, for overdue payments before sending demand letters[99]. - In the event of a default, BJEG Group may negotiate settlement proposals or initiate legal proceedings to recover outstanding amounts[100]. - The expected credit loss (ECL) provision for finance lease and loan receivables totaled HK$162,029,000 in 2022, compared to HK$255,195,000 in 2021, indicating a reduction in credit risk[127]. - The ECL for Customer 1 (Sanya) was HK$152,645,000, representing 94.2% of the total provision, significantly higher than the 40.4% in the previous year[127]. - The company is focusing on improving its credit risk management strategies to enhance the recoverability of its receivables[130]. ESG and Sustainability - The Company is committed to implementing an ESG management framework to create sustained value for stakeholders[199]. - The Board oversees sustainability initiatives and incorporates ESG considerations into the Group's overall strategic formulation[200]. - The ESG report aims to provide details on the Group's sustainable development performance for the year ended December 31, 2022[197][198]. - The Company emphasizes minimizing environmental impact and enhancing employee well-being as part of its ESG commitments[199]. Economic and Market Conditions - The global economy faces significant pressure for stabilization and recovery due to factors like global trade friction and high inflation, but China's economic growth rate is expected to gradually recover[148]. - The financial leasing industry experienced a decline in the number of entities and business balances in 2022, indicating a critical period of transformation and optimization[148]. - The Chinese government has achieved positive results in pandemic control and socio-economic development, stabilizing the macro-economy and improving development quality[148]. - Green transformation and digital economy initiatives are expected to drive healthy development in the financial leasing industry, contributing positively to economic growth[153].

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的內容概不負責，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份內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） 379 （股份代號： ） 二零二二全年業績公告 中國恒嘉融資租賃集團有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬 公司（「本集團」）截至二零二二十二月三十一日止年度之綜合業績連同上一年度之比較數 字如下： 綜合損益表 截至二零二二十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 4 收入 62,632 109,604 來自客戶合約 4,699 5,713 租賃 10,455 8,313 實際利率法項下利息 77,786 123,630 總收入 (63,502) (127,439) ...

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的內容概不負責，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份內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） 379 （股份代號： ） 二零二二全年業績公告 中國恒嘉融資租賃集團有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬 公司（「本集團」）截至二零二二十二月三十一日止年度之綜合業績連同上一年度之比較數 字如下： 綜合損益表 截至二零二二十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 4 收入 62,632 109,604 來自客戶合約 4,699 5,713 租賃 10,455 8,313 實際利率法項下利息 77,786 123,630 總收入 (63,502) (127,439) ...

Revenue and Profitability - Revenue for the six months ended June 30, 2022, was HK$50,343,000, an increase of 5.4% compared to HK$47,706,000 for the same period in 2021[12]. - Gross profit for the current period was HK$5,344,000, compared to a gross loss of HK$7,027,000 in the corresponding period, indicating a significant turnaround[12]. - The company reported a loss for the period of HK$55,465,000, compared to a loss of HK$33,426,000 in the previous period, representing an increase in loss of approximately 65.8%[16]. - The Group's net loss for the current period was HK$55.5 million, compared to a net loss of HK$33.4 million in the corresponding period, reflecting a deterioration in financial performance[188]. - The Group's net loss attributable to owners of the Company was HK$37,614,000, an increase of 59.9% from a loss of HK$23,501,000 in 2021[89]. Expenses and Operational Costs - Administrative expenses increased to HK$31,006,000 from HK$29,389,000, reflecting rising operational costs[12]. - Total comprehensive expense for the period amounted to HK$67,399,000, up from HK$42,014,000, indicating a year-over-year increase of about 60.5%[16]. - Corporate and other expenses decreased to HK$12.4 million from HK$15.4 million in the corresponding period, contributing to the overall financial performance[186]. - The Group's total expenses were HK$12.4 million, down from HK$15.4 million in the corresponding period, indicating a reduction in operational costs[188]. Assets and Liabilities - The company's non-current assets decreased from HK$592,676,000 as of December 31, 2021, to HK$509,764,000 as of June 30, 2022, reflecting a decline of approximately 14%[18]. - Total assets as of June 30, 2022, were HK$969,166,000, down from HK$1,081,497,000 as of December 31, 2021[72]. - Total liabilities as of June 30, 2022, were HK$520,819,000, a decrease from HK$565,751,000 as of December 31, 2021[72]. - The company's total equity attributable to owners decreased from HK$515,746,000 to HK$448,347,000, a decline of about 13%[21]. - Current liabilities decreased slightly from HK$547,232,000 to HK$502,880,000, a reduction of about 8%[21]. Cash Flow and Liquidity - The net cash outflow from operating activities was HK$13,330,000, a significant improvement compared to HK$86,761,000 in the previous year[33]. - Cash and cash equivalents at the end of the period stood at HK$22,566,000, down from HK$36,567,000 at the end of June 2021[33]. - The Group financed its operations through facilities provided by banks and internally generated cash flows during the review period[196]. - The Group's finance cost was HK$13,000 for the current period, a decrease from HK$63,000 in the corresponding period[194]. Market and Future Outlook - The Company continues to explore market expansion opportunities and new product development strategies to enhance revenue streams[10]. - Future outlook remains cautious due to ongoing market uncertainties and operational challenges faced in the leasing sector[10]. - The Group's cautious application of its own capital in the Financial Leasing Segment has led to a reduction in business volume due to unfavorable operating conditions in the PRC[191]. Segment Performance - The Financial Leasing Segment recorded a segment loss of HK$36.8 million, an increase from a segment loss of HK$20.5 million in the corresponding period, primarily due to an impairment loss of approximately HK$15.7 million on loan receivable[177]. - The Trading Segment recorded revenue of approximately HK$40.3 million and a profit of approximately HK$4.1 million, compared to revenue of HK$38.0 million and a profit of HK$0.9 million in the corresponding period, driven by increased sales of hygiene products[185]. - The Food Additives Business generated revenue of approximately HK$1.7 million, down from HK$2.7 million in the corresponding period, but achieved a gross profit of HK$0.4 million compared to a gross loss of HK$1.5 million previously[180]. Financial Position and Valuation - The fair value of financial assets measured at fair value through profit or loss was HK$62,797,000, down from HK$74,845,000 as of December 31, 2021, representing a decrease of approximately 16.5%[142]. - The fair value hierarchy for the company's financial assets is classified as Level 3, indicating reliance on unobservable inputs for valuation[161]. - The Group's financial performance reflects ongoing adjustments in asset valuations, highlighting the impact of market conditions on investment values[153].

Financial Performance - The Group achieved significant revenue growth in 2021, driven by the expansion in trading of medical, health, daily necessities, and hygiene products in Hong Kong[12]. - The Group recorded revenue of HK$123.6 million in 2021, up from HK$66.2 million in 2020, representing an increase of 86.5%[24]. - The Group's gross loss decreased to HK$3.8 million in 2021 from HK$16.4 million in 2020, showing an improvement of 76.8%[24]. - The net loss for the Group was HK$62.7 million in 2021, significantly reduced from HK$356.6 million in 2020, a decrease of 82.4%[24]. - The financial leasing segment reported a loss of HK$42.2 million in 2021, down from a loss of HK$234.0 million in 2020, a reduction of 82.0%[25]. - The food additives segment recorded a net loss of HK$11.6 million in 2021, improved from a loss of HK$17.1 million in 2020, a decrease of 32.2%[27]. - The investment segment achieved a net profit of HK$2.5 million in 2021, down from HK$12.1 million in 2020, a decline of 79.3%[27]. - The Group's overall net loss decreased from HK$356.6 million in 2020 to HK$62.7 million in 2021, primarily due to a reduction in impairment loss on finance lease and loan receivables by HK$211.3 million[31][31]. Operational Challenges and Strategies - The trading segment turned profitable in its second year of operation, demonstrating a dramatic turnaround despite challenges posed by the COVID-19 pandemic[12]. - The financial leasing segment's performance remained weak due to stringent regulatory requirements in the PRC[12]. - The Group is addressing operational issues in the food additives business in Liaoning by streamlining manufacturing processes and increasing productivity through new production lines[12]. - The Group is focused on diversifying income sources and innovating business models to mitigate risks from the changing external environment[12]. - The Group aims to leverage its experienced management team and sound risk management to navigate operational difficulties caused by the pandemic and geopolitical tensions[25]. - The Group plans to cautiously seek new growth opportunities and undervalued assets to diversify income sources and achieve long-term development[25]. Investment and Financial Strategy - The investment strategy remains conservative and effective, aiming to generate stable income from idle funds without increasing liquidity risk[12]. - The Group's investment strategy remains conservative, focusing on a balanced portfolio of equity, debt, and real estate[135]. - The Group's financial assets at FVTPL were approximately HK$147.1 million, down from HK$156.1 million in 2020[144]. - The Group's total assets decreased by HK$104.2 million to HK$1,081.5 million as of December 31, 2021, compared to HK$1,185.7 million in 2020, mainly due to repayments of finance lease receivables and fair value losses on equity investments[48]. - The Group's total liabilities dropped by HK$45.3 million to HK$565.8 million as of December 31, 2021, from HK$611.1 million in 2020, while total borrowings decreased by HK$49.7 million to HK$423.7 million[48]. Credit Risk Management - The Group's major credit risk is primarily from finance lease receivables and loan receivables, mainly from BJEG Group in the PRC and TF Advances in Hong Kong[50]. - Internal control measures have been implemented to manage credit risk in the financial leasing business[54]. - The Group generally requires indications from at least two financial institutions for proposed financing arrangements[63]. - The Group assesses profitability, return on investment, and various risks including counterparty and leverage risk in finance lease transactions[61]. ESG and Sustainability - The Company conducts annual materiality assessments to understand stakeholder expectations on ESG issues, ensuring effective communication channels are available[170]. - ESG-related goals and targets are set to provide strategic direction, with progress reviewed regularly and reported annually to the Board[170]. - The Group aims to create sustained value for stakeholders through the implementation of an ESG management framework[170]. - The Group is committed to minimizing environmental impact and enhancing employee well-being while contributing to the community[170]. - The Group identified 22 ESG issues through stakeholder engagement, focusing on environmental, social, and operational aspects[185]. Market and Economic Conditions - China's GDP grew by 8.1% year-on-year in 2021, but recent COVID-19 outbreaks have led to broader economic disruptions[128]. - Economic recovery in Hong Kong was robust until the recent Omicron outbreak, which has significantly disrupted commercial activities[129]. - The future local economy in Hong Kong depends on controlling new COVID-19 infections and political stability[129]. Segment Performance - The Trading Segment recorded a net profit of HK$6.6 million in 2021, a significant improvement from a net loss of HK$3.0 million in 2020, due to a full year of profit contribution from the New Business acquired in August 2020[29][30]. - Revenue from the Trading Segment increased to HK$103.5 million in 2021, up from HK$36.8 million in 2020, with HK$31.8 million of this revenue coming from the New Business[34]. - The Food Additives Segment recorded revenue of HK$5.7 million in 2021, up from HK$3.5 million in 2020, but incurred a gross loss of HK$3.2 million, increasing from a gross loss of HK$1.8 million in 2020[34]. Employee and Operational Efficiency - Administrative expenses decreased to HK$40.1 million in 2021 from HK$94.3 million in 2020, primarily due to reduced staff costs and management incentive expenses[39]. - The Group employed approximately 98 employees as of December 31, 2021, down from 103 in 2020[152]. - The Group ensured sufficient working capital for business needs even after making investments[149].

| --- | --- | --- | |-------|------------------------------------------------------------------------------------|-------| | EGIC | 中國恒嘉融資租賃集團有限公司CHINA EVER GRAND FINANCIAL LEASING GROUP CO., LTD. | | | | (Incorporated in the Cayman Islands with limited liability) | | CONTENTS 目錄 | --- | --- | --- | |------------------------------------------------------------------------------------|------------------------------|----------| | | | | | | | | | | | CONTENTS | | | | | | | | 目錄 | | | | | | Corporate Informatio ...

Financial Performance - The Group recorded a significant loss of HK$356.6 million in 2020, compared to a loss of HK$51.0 million in 2019, primarily due to impairment losses on receivables in the financial leasing segment [9]. - The Group's performance was adversely impacted by the overall economic conditions and customer spending not recovering to pre-pandemic levels [9]. - The Group recorded a net loss of HK$356.6 million in 2020, a significant increase from a net loss of HK$51.0 million in 2019, with a loss attributable to owners of HK$242.9 million [31]. - Corporate expenses rose to HK$98.3 million in 2020 from HK$35.8 million in 2019, contributing to the overall net loss [31]. - The Group's total revenue decreased to HK$66.2 million in 2020 from HK$71.2 million in 2019, resulting in a gross loss of HK$16.4 million compared to a gross profit of HK$21.8 million in the previous year [23]. - The financial leasing segment recorded a segment loss of HK$234.0 million in 2020, compared to a loss of HK$45.8 million in 2019, primarily due to impairment losses on receivables of HK$199.4 million [12]. - The food additives business reported a net loss of HK$17.1 million in 2020, an increase from a net loss of HK$12.6 million in 2019, mainly due to a one-off impairment loss of HK$5.1 million [26]. - The trading segment, initiated in 2020, incurred a net loss of HK$5.5 million, attributed to start-up costs and fair value losses related to the acquisition of a new business [30]. - The Group's total assets decreased by HK$361.0 million to HK$1,185.7 million as of December 31, 2020, compared to HK$1,546.7 million in 2019 [51]. - The Group's bank and other borrowings were HK$458.6 million as of December 31, 2020, down from HK$523.7 million in 2019 [55]. Business Strategy and Operations - The Group initiated a trading business in medical and health products and acquired Tripler Holdings Limited to integrate its wholesaling business, aiming to diversify business risks [9]. - The Group's strategic focus includes expanding its distribution network with small to medium-sized pharmaceutical shops in Hong Kong [9]. - The Group's efforts to adapt to market challenges included exploring new business opportunities in response to the pandemic [9]. - The Group plans to explore new growth opportunities and undervalued assets to diversify income sources and achieve long-term growth despite challenging market conditions [13]. - The Group's strategy includes research and development of new products, such as Advantame and EPS, to enhance its offerings in the food additives segment [26]. - The Group's management remains cautiously optimistic about future growth opportunities and plans to seek undervalued assets for long-term diversification of income sources [92]. - The Group's trading segment plans to diversify products and broaden customer bases, having obtained a wholesaler license for proprietary Chinese medicines and applied for exclusive distributorships [91]. Economic Environment - China's GDP grew by 2.3% year-on-year in 2020, recovering notably in the second half after a contraction in the first quarter [9]. - The overall financial outlook remains cautious, with a focus on recovery and potential future growth in the health product sector [9]. - The pandemic significantly impacted the Group's performance, leading to substantial losses primarily from impairment losses on receivables [76]. - The Group anticipates that the global economy will recover steadily with the use of COVID-19 vaccines, although long-term economic prosperity may be affected by geopolitical tensions [77]. - The Group anticipates a gradual economic recovery post-pandemic, supported by government fiscal measures and a stable monetary environment, although geopolitical tensions may pose challenges [81]. Risk Management - The Group's management is actively monitoring credit risks and has implemented measures to mitigate potential losses from defaulted customers [67]. - The Group has implemented robust risk management policies to monitor and manage credit risks associated with existing and new finance projects [84]. Environmental, Social, and Governance (ESG) Initiatives - The Group identified 22 ESG issues covering environmental, social, and operational aspects, prioritizing stakeholder inputs for actions and reporting [141]. - Stakeholder engagement is crucial for formulating environmental and social strategies, with key stakeholders including government, shareholders, customers, and employees [133]. - The Group aims to operate in compliance with laws and fulfill tax obligations, ensuring law-abiding operations and timely payments [135]. - The materiality assessment conducted in 2020 helped the Group identify critical ESG issues that align with stakeholder expectations [141]. - The Group emphasizes the importance of food safety and product quality, implementing ISO 22000:2005 standards [139]. - The Group's governance practices include optimizing internal control and risk management while ensuring timely disclosure of operating data [135]. - The Group's operations primarily focus on finance leasing, consulting services, investment properties, and food additives in the PRC and Hong Kong [129]. Environmental Performance - The Group's key environmental performance indicators for emissions in 2020 are detailed in the report [168]. - There were no significant hazardous waste generated due to the nature of the Group's business [162]. - The Group strictly complied with national and local environmental protection laws, with no material non-compliance reported in 2020 [164]. - The Group implemented various electricity-saving policies, aiming to reduce electricity consumption significantly [152]. - The Group promotes waste reduction practices, including recycling and reducing paper consumption [163]. - In 2020, there were no significant fines or sanctions due to non-compliance with environmental regulations [167]. - The Group encourages the use of teleconferencing to reduce carbon footprints associated with business travel [158]. - The Group's environmental policy promotes proper and environmentally friendly handling of office waste [161]. - Nitrogen oxides (NOX) emissions increased to 10,248 g in 2020 from 7,028 g in 2019, representing a 45.5% rise [169]. - Total GHG emissions rose to 883,091 kg CO2e in 2020, up from 664,437 kg CO2e in 2019, marking a 33% increase [169]. - Indirect emissions (Scope 2) surged to 808,083 kg CO2e in 2020, compared to 578,053 kg CO2e in 2019, reflecting a 39.8% increase [169]. - Total non-hazardous waste produced increased to 1,010 kg in 2020 from 617 kg in 2019, a rise of 63.6% [169]. - GHG emissions intensity increased to 43 kg CO2e per unit produced in 2020, up from 34 kg CO2e in 2019, indicating a 26.5% increase [169]. - The Group implemented measures to control vehicle numbers and business travel frequency to reduce air and GHG emissions [175]. - Non-hazardous waste management strategies included recycling and minimizing landfill disposal, achieving set targets for 2020 [176]. - The Group aims to enhance energy efficiency and increase the use of clean energy in its operations [185]. - Employees are encouraged to adopt water-saving practices, contributing to overall resource efficiency [186]. - The Group's policies focus on reducing energy consumption and monitoring energy efficiency across facilities [185]. - Total energy consumption increased to 1,033,146 kWh in 2020, up from 812,282 kWh in 2019, representing a 27.2% increase [188]. - Energy consumption intensity rose to 50 kWh per unit produced in 2020, compared to 42 kWh in 2019, indicating a 19% increase [188]. - Water consumption decreased significantly to 391 m³ per unit produced in 2020, down from 915 m³ in 2019, a reduction of 57.3% [188]. - Total packaging material (paper) used for finished products decreased to 3,716 kg in 2020 from 4,717 kg in 2019, a decline of 21.2% [188]. - The amount of packaging material (plastic) per unit produced increased to 0.1873 kg in 2020, up from 0.1557 kg in 2019, reflecting an increase of 20.3% [188]. - Natural gas consumption remained stable at 6 m³ per unit produced in both 2020 and 2019 [188]. - The Group implemented energy-saving measures, including variable-frequency drives on machinery, to reduce energy consumption and costs [197]. - An open recirculating water system was installed in the Liaoning factory to enhance water efficiency and reduce electricity consumption for water processing [194]. - The Group's policies for water and energy management were adopted and measures were achieved for the year 2020 [199]. - The Group's operational costs and environmental footprint are directly affected by energy and water consumption, highlighting the importance of efficient resource management [198].

EGIC 中國恒嘉融資租賃集團有限公司 CHINA EVER GRAND FINANCIAL LEASING GROUP CO., LTD. (於開曼群島註冊成立之有限公司) (股份代號：379) 中期報告 目錄 目錄 公司資料 2 簡明綜合損益表 3 簡明綜合損益及其他全面收益表 4 簡明綜合財務狀況表 5 簡明綜合權益變動表 7 簡明綜合現金流量表 8 簡明綜合財務報表附註 9 管理層討論及分析 30 其他資料 45 01 中國恒嘉融資租賃集團有限公司 二零二零年中期報告 公司資料 | --- | --- | --- | |------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------| | | | | | 執行董事 王力平先生 （主席） 黎嘉輝先生 陶可先生 喬衛兵先生 非執行董事 | 主要往來銀行 香港： 香港上海滙豐銀行有 ...

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 32,997,000, a decrease of 40% compared to HKD 54,920,000 for the same period in 2018[9] - Gross profit for the same period was HKD 11,241,000, down from HKD 13,977,000, representing a decline of 19.7%[9] - The company reported a loss of HKD 16,420,000 for the six months ended June 30, 2019, compared to a profit of HKD 4,681,000 in the same period of 2018[9] - Basic loss per share was HKD 0.08, compared to earnings of HKD 0.02 per share in the previous year[9] - The company reported a net cash inflow from operating activities of HKD 66,282, compared to a net outflow of HKD 304,297 in the previous year[38] - The company reported a loss before tax of HKD 18,045,000 for the six months ended June 30, 2019, compared to a profit of HKD 6,369,000 in the same period of 2018[70] - The company incurred total expenses of HKD 18,995,000 in interest costs for the six months ended June 30, 2019, down from HKD 28,450,000 in 2018, a reduction of 33.7%[80] - The company reported a net loss of HKD 16,400,000 for the current period, compared to a net profit of HKD 4,700,000 in the corresponding period of 2018[142] - The financing leasing segment incurred a loss of HKD 16,200,000, a significant decline from a profit of HKD 6,800,000 in the same period last year[142] Assets and Liabilities - Non-current assets totaled HKD 858,893,000 as of June 30, 2019, slightly down from HKD 861,072,000 at the end of 2018[28] - Current assets decreased to HKD 867,929,000 from HKD 1,017,803,000, indicating a reduction of approximately 14.7%[28] - The company’s cash and cash equivalents decreased to HKD 137,388,000 from HKD 262,123,000, a decline of 47.6%[28] - Total assets less current liabilities decreased to HKD 1,209,483 from HKD 1,382,058 year-on-year[31] - The company's total equity stood at HKD 907,988, down from HKD 927,701 in the previous year[31] - The company reported a decrease in total liabilities to HKD 301,495 from HKD 454,357 year-on-year[31] - The group reported total liabilities of HKD 818,834,000 as of June 30, 2019, down from HKD 951,174,000 as of December 31, 2018[74] - The group’s total liabilities decreased from HKD 951,200,000 as of December 31, 2018, to HKD 818,800,000 as of June 30, 2019, reflecting a decrease of approximately HKD 132,300,000[159] Income and Expenses - The company reported other income of HKD 4,060,000, down from HKD 6,166,000, reflecting a decrease of 34.2%[9] - Administrative expenses were HKD 26,912,000, slightly up from HKD 26,119,000, indicating a rise of 3%[9] - Service fee income dropped to HKD 8,791,000, down 65.4% from HKD 25,390,000 year-on-year[64] - The financing lease interest income for the six months ended June 30, 2019, was HKD 18,891,000, a decrease of 36.8% from HKD 29,530,000 in the same period of 2018[64] - Other income decreased by HKD 2,100,000 or 34%, primarily due to a lack of dividend income from financial assets and a general decline in interest income[152] - Administrative and other operating expenses were HKD 27,100,000, a slight increase of HKD 500,000 compared to the previous period[154] Financial Reporting and Standards - The company adopted HKFRS 16 for the first time, which may impact future financial reporting[41] - The adoption of HKFRS 16 resulted in the recognition of right-of-use assets amounting to HKD 267,000 as of January 1, 2019[47] - The total lease liabilities recognized on the balance sheet as of January 1, 2019, amounted to HKD 267,000[48] - The financial statements have been prepared in accordance with HKFRS, with significant judgments and estimates disclosed in Note 3[44] - The transition to HKFRS 16 did not have a significant impact on the company's accounting policies, except for the recognition of right-of-use assets and lease liabilities[45] - The group has adopted the cumulative effect method for applying HKFRS 16, recognizing right-of-use assets equivalent to the amount of lease liabilities as of January 1, 2019[59] Investments and Acquisitions - The group acquired properties and equipment at a cost of HKD 85,633,000 during the six months ended June 30, 2019, with no acquisitions in the same period of 2018[96] - The group acquired investment properties at a cost of HKD 70,117,000 and changed the use of another asset with a net book value of HKD 63,976,000 to investment properties[97] - The group completed the acquisition of all issued shares of Jingli Limited for HKD 90 million, which has properties in Shanghai generating stable rental income[178] - The group acquired all shares of Juhao International Limited for HKD 70 million, which owns an office property with a rental income of approximately HKD 2.2 million per year[176] Shareholder Information - Major shareholders include Fu De Life Insurance Co., Ltd. with a 29.99% stake, and Wang Liping with a 16.12% stake[188] - The company has a total of 1,921,000,000 shares held by multiple entities, indicating significant ownership concentration[191] - Wang Liping holds 466,000,000 shares personally, in addition to his control over Shiqin Development Co., Ltd.[190] - The company has no other individuals with significant shareholdings as of June 30, 2019, apart from those disclosed[191] Corporate Governance - The company has complied with the corporate governance code, with some deviations noted regarding the remuneration committee's scope[195] - The audit committee has reviewed the unaudited interim financial statements for the six months ending June 30, 2019[199] - The board chairman was unable to attend the annual general meeting due to other commitments, highlighting potential governance challenges[196] - The company has adopted a standard code for securities trading by directors, ensuring compliance with governance standards[197]

Financial Performance - The Group reported a net loss of HK$373 million for 2018, a significant increase from a net loss of HK$36 million in 2017[13]. - The financial leasing business incurred a segment loss of HK$65 million, including a non-cash impairment loss on goodwill of HK$63 million[14]. - The terminal and logistics services generated a segment profit of HK$38 million, down from HK$44 million in 2017[14]. - The investment division recorded a loss of HK$59 million in 2018, compared to a loss of HK$24 million in 2017[14]. - Corporate expenses increased to HK$73 million in 2018 from HK$39 million in 2017[14]. - The Group experienced a non-cash loss on the disposal of partial interest in a joint venture amounting to HK$219 million[13]. - The overall fair value loss of financial assets at fair value through profit or loss was HK$46 million[13]. - The Group recorded revenue of HK$90.5 million in 2018, a decrease of 54.4% from HK$198.1 million in 2017[28]. - Gross profit for 2018 was HK$23.7 million, down from HK$31.3 million in 2017, reflecting a decline of 24.2%[28]. - The net loss for 2018 was HK$373.1 million, significantly higher than the net loss of HK$35.7 million in 2017, marking an increase of 943.3%[28]. - The financial leasing business segment reported a loss of HK$65.4 million, which included a non-cash impairment loss on goodwill of HK$63.0 million, compared to a loss of HK$10.9 million in 2017[29]. - Terminal and logistics services generated a segment profit of HK$37.6 million in 2018, down from HK$43.5 million in 2017, a decrease of 20.4%[30]. - The food additives business incurred a segment loss of HK$4.2 million in 2018, compared to a loss of HK$0.4 million in 2017, indicating a significant increase in start-up costs[31]. - The investment division recorded interest income of HK$4.5 million in 2018, up from HK$2.3 million in 2017, representing a growth of 95.7%[36]. - Corporate expenses rose to HK$72.8 million in 2018 from HK$38.6 million in 2017, an increase of 88.4%[37]. - The Group's net loss attributable to owners was HK$372.1 million in 2018, compared to HK$42.7 million in 2017, reflecting an increase of 770.5%[39]. Business Operations and Strategy - The management expresses confidence in the resilience of the Chinese market and aims to improve operational efficiency and diversify income sources[21]. - The Group anticipates potential growth opportunities despite the challenging operating environment[21]. - The Group expects to commence normal production of solid sorbitol in the first half of 2019 after completing necessary safety tests[31]. - The Group plans to enhance its business model and explore new unconventional sectors while adhering to effective risk management policies[96]. - The Group will continue to adopt a conservative investment strategy amid a cooling Chinese economy and US-China trade tensions[99]. - The Group aims to leverage favorable government policies and tax incentives to create more financing demand and business opportunities[100]. - The local management team will continue to enhance the development of financing products while adhering to effective risk management policies[100]. - The completion of the acquisition of Quantum Power on March 1, 2019, is expected to boost research and development capabilities, driving future revenue and profit growth[103]. - The Group's operations primarily focus on finance leasing, equity securities trading, and food additives business in Beijing and Hong Kong[120]. Environmental, Social, and Governance (ESG) Initiatives - The Group's environmental, social, and governance (ESG) report highlights its commitment to sustainable development and stakeholder engagement[118]. - The Group identified 22 ESG issues crucial to its business and stakeholders through a materiality assessment conducted in 2018[130]. - The Group encourages optimizing transportation routes and carpooling to reduce transportation costs and energy consumption[137]. - The Group is committed to protecting the environment by adhering to green operations and engaging with local communities[134]. - The Group's management has reviewed and disclosed the results of the materiality assessment in its reports[130]. - The Group's environmental policies and performance are communicated to stakeholders to ensure transparency[174]. - The Group's measures for reducing emissions and waste production have been successfully implemented in 2018[175]. Financial Position and Assets - The total assets of the Group decreased to HK$1,878.9 million as of December 31, 2018, down HK$705.7 million from HK$2,584.6 million in 2017, primarily due to a reduction in finance lease receivables of HK$231.2 million[69]. - The Group's total liabilities decreased from HK$1,230.2 million in 2017 to HK$951.2 million in 2018, resulting in a slight increase in the gearing ratio from 47.6% to 50.6%[69]. - Cash and cash equivalents increased to approximately HK$364.9 million as of December 31, 2018, compared to HK$261.8 million in 2017[70]. - The current ratio improved from 1.6 in 2017 to 2.0 in 2018 following the proceeds from the partial disposal of equity interest in Rizhao Lanshan[69]. - The Group's bank borrowings decreased to HK$428.6 million in 2018 from HK$472.8 million in 2017, with a corresponding reduction in short-term and long-term borrowings[70]. - The Group's income tax credit for the year included a deferred tax credit of HK$9.5 million, compared to a charge of HK$0.4 million in 2017[67]. Workforce and Employee Welfare - As of December 31, 2018, the Group employed approximately 83 employees, an increase from 39 in 2017, primarily due to the expansion of the food additives business[110]. - The Group's total workforce composition by gender as of December 31, 2018, is 50% male and 50% female[180]. - The age distribution of the workforce shows 17% under 30 years old, 75% between 30 to 50 years old, and 8% over 50 years old[180]. - The Group has established Health and Safety Policies to ensure a safe working environment and prevent occupational hazards[181]. - The Group supports employees in engaging in leisure and sports activities outside of the workplace[186]. - The Group has established a career development platform and competitive remuneration packages to enhance employee welfare[127]. Compliance and Risk Management - The Group aims to operate in compliance with laws and regulations, ensuring timely and full tax payments[125]. - In 2018, there were no cases of material non-compliance with the Labour Law or related regulations, and no significant fines or sanctions were reported[180][183]. - The Group prohibits child labour and is committed to protecting human rights, ensuring a workplace of respect and fairness for employees[195]. - Supply chain management is crucial for the Group, focusing on managing environmental and social risks while ensuring compliance with quality and safety standards[197]. - The Group requires impartial selection of suppliers and maximizes competition in the tendering process to prevent bribery and fraud[198].