Revenue Performance - Revenue for the six months ended June 30, 2021, was HK$47,706,000, a significant increase from HK$18,866,000 in the same period of 2020, representing a growth of 153.1%[11] - For the six months ended June 30, 2021, total revenue was HK$47,706,000, a significant increase from HK$18,866,000 in the same period of 2020, representing a growth of approximately 153%[43] - Revenue generated in Hong Kong during the current period was HK$40,629,000, significantly higher than HK$3,198,000 in the same period of 2020, showing a growth of approximately 1,270%[52] - The remaining revenue of HK$7,077,000 was generated in the PRC, down from HK$15,668,000 in the same period of 2020, indicating a decline of approximately 55%[52] - The Trading Segment achieved revenue of HK$37,961,000 for the six months ended June 30, 2021, compared to HK$2,014,000 in the same period of 2020, marking an increase of approximately 1,786%[48] Loss and Profitability - The gross loss for the current period was HK$7,027,000, compared to a gross profit of HK$356,000 in the corresponding period of 2020[11] - Loss before taxation decreased to HK$33,514,000 from HK$72,357,000 year-over-year, indicating an improvement of 53.7%[11] - The loss for the period attributable to owners of the Company was HK$23,501,000, down from HK$47,712,000 in the previous year, reflecting a reduction of 50.8%[11] - The company reported a loss for the period of HK$33,426,000, compared to a loss of HK$72,278,000 in the previous period, indicating an improvement[15] - The total comprehensive expense attributable to owners of the company was HK$33,029,000, down from HK$60,386,000[15] Expenses and Costs - Administrative expenses increased to HK$29,389,000 from HK$26,980,000, representing an increase of 8.9%[11] - Directors' remuneration increased to HK$7,054,000 from HK$5,762,000, marking a rise of 22.3%[73] - Interest expenses included in the cost of revenue rose to HK$15,996,000 from HK$14,643,000, an increase of 9.2%[73] - Corporate and other expenses were HK$15.3 million, slightly down by HK$0.8 million from the previous period[176] Cash Flow and Liquidity - The company's cash and cash equivalents decreased to HK$36,567,000 from HK$132,483,000, indicating a significant cash outflow[19] - The net cash outflow from operating activities for the six months ended June 30, 2021, was HK$86,761,000, compared to HK$76,778,000 for the same period in 2020[29] - Cash and cash equivalents at the end of the period were HK$36,567,000, significantly up from HK$10,716,000 at the end of June 2020[29] - The Group's bank balances and cash as of June 30, 2021, were approximately HK$156.7 million, down from HK$192.4 million as of December 31, 2020[199] Assets and Liabilities - Non-current assets decreased slightly to HK$466,906,000 from HK$552,935,000 as of December 31, 2020[17] - Current liabilities decreased to HK$541,259,000 from HK$567,991,000, reflecting a reduction in borrowings[20] - Total assets of the Group as of June 30, 2021, were HK$1,099,716,000, a decrease from HK$1,185,716,000 as of December 31, 2020[54] - The Group's liabilities as of June 30, 2021, were HK$567,112,000, down from HK$611,098,000 as of December 31, 2020, indicating a reduction in financial obligations[54] Shareholder Equity and Financing - The equity attributable to owners of the company decreased to HK$535,034,000 from HK$568,063,000, reflecting a decline in shareholder value[20] - The company issued new shares resulting in proceeds of HK$32,245,000 during the previous financing activities[29] - The company issued 2,383,830,000 new shares at a placing price of HK$0.014 per share before the share consolidation[118] - The company issued 257,000,000 shares of HK$0.1 each as part of an acquisition on August 21, 2020[118] Future Outlook and Strategy - Future outlook includes potential strategies for market expansion and new product development to enhance revenue streams[9] - The Group's management discussed strategies for future market expansion and potential new product developments during the call[173] - The Company is focused on the research and development of new products, including Advantame and EPS, to enhance its product offerings[176] Financial Instruments and Fair Value - The fair value of the Group's financial assets and liabilities approximates their carrying amounts as reflected in the condensed consolidated statement of financial position[146] - The management estimates the fair value of financial assets and liabilities measured at amortized cost using discounted cash flow analysis, asserting that carrying amounts approximate fair values[163][164] - The Group recorded a change in fair value of financial assets of HK$4,085 for the six months ended June 30, 2021, while the change for equity investments was a loss of HK$11,601[162] Segment Performance - The Financial Leasing Segment reported a loss of HK$20,507,000 for the six months ended June 30, 2021, compared to a loss of HK$50,617,000 in the same period of 2020, indicating an improvement[48] - The Investment Segment generated revenue of HK$5,497,000 in the first half of 2021, up from HK$2,368,000 in the same period of 2020, reflecting a growth of approximately 132%[48] - The Food Additives Business recorded revenue of approximately HK$2.7 million, up from HK$0.9 million in the Corresponding Period, with a loss of HK$5.6 million compared to a loss of HK$5.2 million previously[176] Challenges and Risks - The Company reported a total comprehensive loss for the period, reflecting ongoing challenges in the leasing sector[9] - The Group's revenue and gross loss figures reflect ongoing challenges in the operating environment, particularly in the PRC[179] - The major credit risk for the Group is attributed to finance lease receivables and loan receivables, with a focus on evaluating the credit risk of customers[199]

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].