Financial Performance - The financial leasing segment recorded a shared profit of HK$2.4 million, driven by interest income and fair value gains[19]. - The investment segment reported a net loss of HK$8.5 million in 2023, compared to a profit of HK$12.0 million in 2022[19]. - The distribution segment incurred a net loss of HK$5.0 million, an improvement from a loss of HK$7.1 million in 2022[19]. - The manufacturing segment recorded a net loss of HK$4.6 million, down from a loss of HK$7.6 million in 2022[19]. - The Group's total net loss from continuing operations was HK$40.4 million, compared to a loss of HK$31.6 million in 2022[19]. - The Group's revenue from continuing operations decreased by 26.5% to HK$52.7 million in 2023 compared to HK$71.7 million in 2022[26]. - The Group's gross profit from continuing operations decreased by 26.8% to HK$17.8 million in 2023 from HK$24.3 million in 2022[26]. - The net loss from continuing operations increased by 27.7% to HK$40.4 million in 2023 compared to HK$31.6 million in 2022[26]. - The Investment Segment's revenue decreased by 25.1% to HK$6.8 million in 2023, with a net loss of HK$8.5 million compared to a profit of HK$12.0 million in 2022[28]. - The Distribution Segment's revenue decreased by 29.0% to HK$42.9 million in 2023, with a net loss of HK$5.0 million, a decrease of 30.6% from HK$7.1 million in 2022[34]. - The Manufacturing Segment recorded revenue of HK$2.9 million in 2023, with a net loss of HK$4.6 million, an improvement from a loss of HK$7.6 million in 2022[35]. Corporate Strategy - The Group plans to focus on developing its own brand healthcare products and healthy instant noodles in the upcoming year[20]. - The Group aims to diversify income sources and pursue long-term growth through new potential opportunities and undervalued assets[20]. - The Group is actively seeking new growth opportunities and business expansion to diversify revenue sources and achieve long-term growth[23]. - The Group aims to enhance profitability by securing exclusive distributorships of proprietary Chinese medicines (PCMs) and expanding its distribution network in Hong Kong[149]. - The Group is investing in a production line for healthy instant noodles, expected to launch in Q2 2024, targeting health-conscious consumers[148]. - The Group plans to introduce more health and wellness products under its own brand, including gastrointestinal medical products and probiotics[149]. - A strategic partnership with Dan Dan Group has been established to enhance market presence and brand recognition through both physical and online retail channels[150]. Financial Position and Assets - The total assets of the Group decreased by HK$298.5 million to HK$502.8 million as of December 31, 2023, primarily due to the deconsolidation of BJEG Group[56]. - The gearing ratio improved significantly from 33.0% in 2022 to 9.9% in 2023, reflecting a deleverage effect from the deconsolidation[57]. - Total liabilities decreased to HK$49.9 million from HK$264.7 million, a reduction of HK$214.8 million, primarily due to the deconsolidation of BJEG Group[61]. - The capital-to-asset ratio improved significantly from 33.0% as of December 31, 2022, to 9.9% as of December 31, 2023[61]. - The current ratio increased from 1.3 to 2.0 during the same period, indicating improved liquidity[61]. - Cash and cash equivalents, along with other financial resources, decreased to approximately HK$28.4 million from HK$88.3 million year-over-year[62]. - The Group had no borrowings as of December 31, 2023, compared to HK$152.6 million in borrowings due within one year at a 9.0% interest rate in 2022[62]. - The Group's exposure to credit risk has been significantly reduced due to the deconsolidation of BJEG Group, which was previously classified as a non-wholly owned subsidiary[66]. Credit Risk Management - The expected credit loss (ECL) assessment is based on a probability-weighted expected credit losses model, which includes five key parameters[125]. - The company has a provision for impairment losses under ECL of HK$162,029,000 as of December 31, 2022, which is 100% of the total provision[123]. - The company is focused on managing its credit risk through individual assessments of receivables based on the ECL model[125]. - The finance department monitors loan repayments and conducts annual collateral valuations to ensure a loan-to-value ratio of at least 100%[109]. - The company conducts thorough credit risk assessments, including background checks and collateral evaluations, before approving loans[101]. Corporate Governance - The company complied with all code provisions of the Corporate Governance Code throughout the year, except for the separation of the roles of Chairman and CEO[189]. - The Board emphasized the importance of effective use of idle funds to enhance overall capital gain, ensuring sufficient working capital remains for business needs[171]. - The Board of Directors consists of five executive Directors, one non-executive Director, and four independent non-executive Directors[195]. - The company actively observes corporate governance developments in Hong Kong and overseas to maintain high standards[188]. - The Board is regularly updated on governance and regulatory matters[199].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 52,702,000, a decrease of 26.5% from HKD 71,738,000 in 2022[3] - Gross profit for the same period was HKD 17,769,000, down 26.7% from HKD 24,262,000 in the previous year[3] - The loss from continuing operations for the year was HKD 40,408,000, compared to a loss of HKD 31,649,000 in 2022[4] - The company reported a total comprehensive loss of HKD 50,691,000 for the year, contrasting with a comprehensive income of HKD 20,913,000 in 2022[5] - The basic loss per share from continuing and discontinued operations was HKD (2.29), compared to earnings of HKD 0.42 in the previous year[4] - The company’s total equity decreased to HKD 452,943,000 from HKD 536,659,000, a decline of 15.6%[8] - The company recorded a pre-tax loss of 40,887 thousand HKD in 2023, compared to a loss of 31,032 thousand HKD in 2022, indicating a worsening financial performance[21] - The net loss for continuing operations in 2023 was HKD 40,400,000, an increase of 27.7% from HKD 31,600,000 in 2022, primarily due to adverse fair value changes in investment properties amounting to approximately HKD 25,000,000[72] - The loss attributable to the owners of the company for 2023 was HKD 38.6 million, compared to a profit of HKD 7.0 million in 2022[37] Revenue Breakdown - Total revenue for the year was HKD 57,239,000, a decrease of 26.5% from HKD 77,786,000 in the previous year[15] - Revenue from asset management consulting services increased significantly to HKD 1,942,000 from HKD 28,000[15] - Sales of food additives and nutritional enhancers rose to HKD 2,910,000 from HKD 2,130,000[15] - Revenue from daily necessities, healthcare, and hygiene products decreased to HKD 42,948,000 from HKD 60,474,000[15] - Interest income from financing lease receivables dropped to HKD 2,595,000 from HKD 6,020,000[15] - Rental income increased to HKD 5,825,000 from HKD 4,699,000[15] - Revenue from customer contracts in China was HKD 4,852,000, up from HKD 2,158,000[17] - Revenue from customer contracts in Hong Kong decreased to HKD 42,948,000 from HKD 60,474,000[17] Assets and Liabilities - Non-current assets decreased to HKD 404,124,000 from HKD 483,276,000 in the previous year, reflecting a decline of 16.4%[7] - Current liabilities were reduced to HKD 49,888,000 from HKD 249,369,000, indicating a significant decrease of 80%[8] - The company’s cash and cash equivalents stood at HKD 28,413,000, down from HKD 38,143,000 in 2022[7] - The total liabilities for the company in 2023 were 49,888 thousand HKD, a decrease from 264,676 thousand HKD in 2022, reflecting a reduction in financial obligations[24] - The investment segment's liabilities decreased to 10,463 thousand HKD in 2023 from 15,132 thousand HKD in 2022, showing a reduction in financial risk[24] - The total assets as of December 31, 2023, were HKD 502,800,000, a decrease of HKD 298,500,000 from HKD 801,300,000 in 2022[82] - Total liabilities decreased to HKD 49,900,000 in 2023 from HKD 264,700,000 in 2022, primarily due to the deconsolidation of Beijing Hengjia Group[82] Operational Focus and Strategy - The company plans to continue focusing on financing leasing and related consulting services in China, as well as expanding its investment activities[9] - The company plans to focus on resource allocation and performance monitoring across its segments to enhance operational efficiency[22] - The company is focusing on operations in China and Hong Kong, with a stable recovery in Hong Kong's economy since early 2023, particularly in retail and local tourism[99] - The company is investing in a new health instant noodle production line, expected to launch in Q2 2024, targeting health-conscious consumers[102] - The group aims to enhance sales through product diversification, diversified distribution channels, and expanding its customer base across different regions[103] - The group plans to launch more proprietary health and wellness products, including gastrointestinal medical products, probiotics, and NMN products[103] Governance and Compliance - The company has adhered to the Corporate Governance Code and all its provisions, with the exception of the separation of roles between the Chairman and the CEO, which is currently held by Mr. Wang Liping[116] - The Audit Committee, composed of three independent non-executive directors, has reviewed and approved the consolidated financial statements for the year ended December 31, 2023[121] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2023[120] - The remuneration committee does not review or provide recommendations on the remuneration of senior management, as the board believes that executive directors are more suitable for this task[117] - The company is in the process of nominating a suitable candidate for the CEO position following the resignation of the previous CEO on July 31, 2023[116] Employee and Training - The group employs approximately 62 staff members in Hong Kong and China, providing regular training to enhance their skills and knowledge[111] Market Conditions - The economic environment in China remains challenging, with issues such as a sluggish real estate market and geopolitical tensions affecting consumer confidence[99]

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： ） 有關二零二三年中期業績公告及二零二三年中期報告 及業務更新之補充公告 茲提述本公司截至二零二三年六月三十日止六個月日期為二零二三年八月三十日之中期 業績公告（「二零二三年中期業績公告」）及截至二零二三年六月三十日止六個月之中期報 告（「二零二三年中期報告」）。除文義另有所指外，本公告所採用之詞彙與二零二三年中期 業績公告及二零二三年中期報告所界定者具有相同涵義。 本公告旨在提供二零二三年中期業績公告及二零二三年中期報告有關貿易分部之業務回 顧之補充資料。 貿易分部之業務回顧 截至二零二三年六月三十日止六個月之收入及分部虧損較截至二零二二年六月三十日止 (i) COVID-19 六個月有所減少，主要歸因於 疫情逐漸衰退，導致強制佩戴口罩政策放寬及 ...

Revenue and Profitability - Revenue for the six months ended June 30, 2023, was HK$25,046,000, a decrease of 50.3% compared to HK$50,343,000 in the corresponding period of 2022[10]. - Gross profit for the current period was HK$5,520,000, slightly up from HK$5,344,000, indicating a gross margin improvement[10]. - Loss for the period was HK$23,525,000, a significant reduction from HK$55,465,000 in the same period last year, representing a 57.6% decrease in losses[12]. - Basic and diluted loss per share for the current period was HK$1.34, compared to HK$2.23 in the corresponding period, reflecting an improvement in per-share losses[10]. - Total comprehensive expense for the period was HK$35,391,000, down from HK$67,399,000 in the previous year, marking a 47.5% reduction[12]. - Other income increased to HK$2,488,000 from HK$2,020,000, showing a growth of 23.2% year-over-year[10]. Expenses and Liabilities - Administrative expenses decreased to HK$29,037,000 from HK$31,006,000, a reduction of 6.4%[10]. - Current liabilities decreased to HK$235,449,000 from HK$249,369,000, a reduction of about 5.57%[17]. - Total equity attributable to owners of the Company decreased to HK$470,648,000 from HK$503,905,000, a decrease of around 6.59%[17]. - The Group's total liabilities dropped by HK$12.2 million or 5% to HK$252.5 million from HK$264.7 million as of December 31, 2022[163]. Cash Flow and Assets - Cash and cash equivalents decreased to HK$36,303,000 from HK$38,143,000, a decline of approximately 4.82%[14]. - As of June 30, 2023, total assets decreased to HK$753,755,000 from HK$802,335,000 as of December 31, 2022, representing a decline of approximately 6.06%[14]. - Net current assets decreased to HK$55,051,000 from HK$68,690,000, indicating a decline of approximately 19.87%[17]. - Cash inflow from investing activities for the same period was HK$19,451,000, a decrease of 17.3% from HK$23,424,000 in 2022[23]. Financial Performance by Segment - The Financial Leasing Segment reported a segment loss of HK$1.8 million, significantly reduced from a segment loss of HK$36.8 million in the corresponding period[130]. - The Financial Leasing Segment generated revenue of HK$4.6 million, an increase from HK$2.9 million in the Corresponding Period, but incurred a gross loss of HK$3.3 million compared to a gross profit of HK$12.2 million previously[138][140]. - The Trading Segment's revenue decreased to HK$16.2 million from HK$40.3 million, resulting in a loss of approximately HK$1.3 million, compared to a profit of HK$4.1 million in the Corresponding Period[136][139]. Investments and Fair Value - Fair value change on financial assets at FVTPL showed a gain of HK$6,252,000 in 2023 compared to a loss of HK$16,449,000 in 2022, indicating a significant recovery[60]. - The fair value of financial assets at FVTPL increased to HK$74.642 million as of June 30, 2023, from HK$64.419 million at the beginning of the year[122]. - The Group's equity investments at FVTOCI amounted to HK$91.3 million as of June 30, 2023, a decrease from HK$93.2 million as of December 31, 2022[195][200]. Strategic Initiatives and Market Outlook - The company continues to explore market expansion opportunities and new product development strategies to enhance future performance[8]. - The Group is navigating economic challenges in China, including a sluggish real estate market and geopolitical tensions, while also recognizing potential opportunities from monetary policy easing[186]. - The Group plans to launch new health products utilizing its production facility in Liaoning Province[196]. - The Group is focused on exploring new growth opportunities and undervalued assets to diversify income sources and enhance shareholder value[194][197].

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： ） 截至二零二三年六月三十日止六個月之 中期業績公告 中國恒嘉融資租賃集團有限公司（「本公司」）董事會（「董事會」或「董事」）謹此公佈本公司 及其附屬公司（「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合業績 連同二零二二年同期之比較數字如下： 簡明綜合損益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 附註 千港元 千港元 4 25,046 50,343 收入 (19,526) (44,999) 收入成本 5,520 5,344 毛利 ...

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].