香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生 或因依賴該等內容而引致之任何損失承擔任何責任。 ORIENTAL EXPLORER HOLDINGS LIMITED 東 方 興 業 控 股 有 限 公司 （於百慕達註冊成立之有限公司） （股份代號：430） 截至二零二二年十二月三十一日止年度之全年業績 綜合損益表 截至二零二二年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 收入 3 24,612 26,532 銷售成本 (4,652) (5,022) 毛利 19,960 21,510 其他收入及收益 3 1,909 1,151 於收益表處理之股權投資之公平值變動，淨額 (34) 8 外幣匯兌差額，淨額 (83) 3 投資物業之公平值變動，淨額 1,500 5,100 經營及行政開支 (5,143) (6,111) ...

riental xplorer Oriental Explorer Holdings Limited 亰 方 興 業 控 股 有 限 公 司 (於百慕達註冊成立之有限公司) (股份代號:0430) 中 期 報 告 2022 目錄 頁次 公司資料 2 簡明綜合損益表 3 簡明綜合全面收益表 4 簡明綜合財務狀況報表 5 簡明綜合權益變動表 6 簡明綜合現金流量表 7 未經審核簡明綜合財務報表之附註 8 管理層之討論及分析 21 其他資料 24 中期報告2022 1 中期報告2022 公司資料 | --- | --- | |-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------| | 董事會 | 律師 | | 執行董事 | 吳漢英 • 方成生律師樓 | | 劉志勇先生 （主席） 劉志奇先生 （副主席兼董事總經理） | 王、鄧律師事 ...

Financial Performance - The rental income for the year ended December 31, 2021, was approximately HKD 27,000,000, a significant increase of 80% compared to HKD 15,000,000 in 2020[11]. - The group recorded a profit of approximately HKD 19,000,000 for the year ended December 31, 2021, compared to a loss of HKD 115,000,000 in 2020, marking a substantial improvement[13]. - Revenue from continuing operations for 2021 was HKD 26,532,000, an increase from HKD 14,709,000 in 2020, representing an increase of 80.5%[44]. - Gross profit for 2021 was HKD 21,510,000, compared to HKD 12,227,000 in 2020, reflecting a growth of 76.2%[44]. - Profit from continuing operations for 2021 was HKD 18,807,000, a significant increase from HKD 5,111,000 in 2020, marking a rise of 267.5%[44]. - The company reported a net profit of HKD 18,807,000 for 2021, recovering from a loss of HKD 115,404,000 in 2020[44]. - Basic and diluted earnings per share from continuing operations were HKD 0.0484, compared to a loss of HKD 0.3613 in the previous year[151]. Financial Position - The fair value of the investment properties as of December 31, 2021, was approximately HKD 1,697,000,000, slightly up from HKD 1,692,000,000 in 2020[14]. - As of December 31, 2021, the group's cash and cash equivalents were approximately HKD 171,000,000, an increase from HKD 161,000,000 in 2020[21]. - The total borrowings of the group as of December 31, 2021, were approximately HKD 308,000,000, compared to HKD 299,000,000 in 2020[21]. - The group's debt-to-equity ratio as of December 31, 2021, was approximately 20.29%, up from 19.77% in 2020[22]. - Total assets as of December 31, 2021, were HKD 1,872,079,000, up from HKD 1,855,831,000 in 2020, indicating a growth of 0.7%[48]. - Total liabilities as of December 31, 2021, were HKD 353,604,000, compared to HKD 344,376,000 in 2020, showing an increase of 2.0%[48]. - The company reported a total equity of HKD 1,518,475,000, an increase from HKD 1,511,455,000 in the previous year[157]. Business Strategy and Outlook - The group anticipates a challenging economic outlook for 2022 due to multiple adverse factors, including ongoing local pandemic measures and geopolitical tensions, which may impact rental income from commercial and industrial properties[29]. - The group plans to maintain a prudent investment strategy to preserve financial resources for potential investment opportunities, aiming to create value for shareholders[29]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[151]. - The board will consider overall operational performance, expected working capital needs, capital expenditure requirements, and future development plans when deciding on dividend distribution[119]. Corporate Governance - The company emphasizes its commitment to good corporate governance practices, focusing on a quality board and robust internal controls[89]. - The board consists of two executive directors and three independent non-executive directors, ensuring a majority of independent members[91]. - All independent non-executive directors have confirmed their independence according to the listing rules, and the board composition is regularly reviewed[94]. - The company has adopted a board diversity policy to enhance its strategic goals and sustainable development, aiming for gender diversity by proposing at least one different-gender director by December 31, 2024[95]. - The company provides necessary training and updates to directors to ensure they understand their responsibilities and the company's operations[100]. Risk Management - The board has identified key risks, including market volatility and supply chain disruptions, and is implementing strategies to mitigate these risks[113]. - The internal audit function has been strengthened, ensuring compliance and effectiveness of risk management systems[114]. - The group will continue to monitor the impact of the ongoing COVID-19 pandemic on its financial performance and position[189]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2021, in accordance with Hong Kong Financial Reporting Standards[134]. - The auditor received approximately HKD 380,000 for audit services for the year ended December 31, 2021[124]. - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards, using historical cost method except for investment properties and certain financial instruments measured at fair value[182][184]. Shareholder Information - The company has established multiple communication channels with shareholders, including interim and annual reports, annual general meetings, and timely responses to inquiries[131]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, which must be convened within 21 days of the request[126].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 13,836,000, a significant increase from HKD 2,569,000 in the same period of 2020, representing a growth of approximately 439%[10] - Gross profit for the same period was HKD 11,305,000, compared to HKD 2,033,000 in 2020, indicating a gross margin improvement[10] - Profit before tax from continuing operations was HKD 8,213,000, a turnaround from a loss of HKD 1,683,000 in the previous year[10] - The net profit attributable to shareholders for the period was HKD 8,213,000, compared to a loss of HKD 128,315,000 in the same period last year[10] - Basic and diluted earnings per share for the period were HKD 2.12, recovering from a loss of HKD 47.52 per share in 2020[10] - The company achieved a profit of HKD 8,213,000 for the six months ended June 30, 2021, a significant recovery from a loss of HKD 128,315,000 in the same period of the previous year[19] - The adjusted profit before tax for the six months ended June 30, 2021, was HKD 8,213,000, compared to a loss of HKD 128,315,000 in the same period of 2020[30] - The group recorded a profit of approximately HKD 8,000,000 for the period, compared to a loss of HKD 128,000,000 in the previous year, primarily due to the completion of a group restructuring plan[91] Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 1,945,373,000, an increase from HKD 1,855,831,000 at the end of 2020[16] - Current liabilities increased to HKD 409,178,000 from HKD 320,085,000 at the end of 2020, indicating a rise in short-term obligations[16] - The net asset value was HKD 1,511,904,000, slightly up from HKD 1,511,455,000 at the end of 2020[16] - The total equity as of June 30, 2021, was HKD 1,511,904,000, an increase from HKD 1,320,991,000 as of June 30, 2020[19] - The company's total borrowings amounted to approximately HKD 389,000,000, an increase from HKD 299,000,000 as of December 31, 2020[100] - The debt-to-equity ratio as of June 30, 2021, was approximately 25.75%, compared to 19.77% as of December 31, 2020[100] Cash Flow - The company reported a net cash inflow from operating activities of HKD 97,370,000 for the six months ended June 30, 2021, compared to a net outflow of HKD 1,127,000 for the same period in 2020[22] - The company reported a significant reduction in financing cash outflow to HKD 7,398,000 for the six months ended June 30, 2021, down from HKD 48,012,000 in the previous year[22] - The cash and cash equivalents increased to HKD 251,100,000 as of June 30, 2021, from HKD 152,057,000 at the end of the previous year[22] - As of June 30, 2021, cash and cash equivalents amounted to HKD 251,100,000, an increase of 55.8% from HKD 161,116,000 as of December 31, 2020[59] Revenue Sources - Revenue from property investment for the six months ended June 30, 2021, was HKD 13,759,000, compared to HKD 2,568,000 in the same period of 2020[30] - Revenue from continuing operations for the six months ended June 30, 2021, was HKD 13,759,000, a significant increase from HKD 2,568,000 in the same period of 2020[37] - Rental income for the period was HKD 13,759,000, significantly up from HKD 2,568,000 in the previous year[78] - Rental income for the investment properties increased significantly to approximately HKD 14,000,000, up from HKD 3,000,000 in the same period last year, attributed to the expansion of the investment property portfolio[92] Shareholder Information - The company declared an interim dividend of HKD 0.01 per ordinary share, amounting to HKD 3,882,000 for the six months ended June 30, 2021[47] - As of June 30, 2021, the company's major shareholder, Mr. Liu Zhiyong, holds approximately 75% of the company's issued shares, totaling 291,137,700 shares[108] - The company will suspend share transfer registration from October 5 to October 7, 2021, for the purpose of qualifying for the interim dividend[123] - The interim dividend is scheduled to be distributed on October 21, 2021, to shareholders listed on the register as of October 7, 2021[123] Corporate Governance - The audit committee has reviewed the accounting principles and practices adopted by the group, including the unaudited interim results for the six months ending June 30, 2021[125] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with its principles during the six months ending June 30, 2021[126] - All directors confirmed compliance with the standard code of conduct for securities trading as stipulated in the listing rules during the same period[130] - The mid-term report for 2021, containing all information required by the listing rules, is available on the company's website and the Hong Kong Stock Exchange website[131] Market Outlook - The company maintains a cautious outlook for the second half of 2021 due to ongoing uncertainties in the global economic recovery from the COVID-19 pandemic[105] - Rental income and occupancy rates for the company's investment properties are expected to face significant pressure in the short to medium term[105] - The company has maintained a stable financial position and sustainable debt levels throughout the pandemic[105] - The management will continue to seek and seize suitable investment opportunities to create value for shareholders[105]

Financial Performance - The company recorded a net loss of approximately HKD 115 million for the year ended December 31, 2020, compared to a profit of approximately HKD 52 million in 2019[9]. - The company reported a loss from continuing operations of HKD 91,785,000 for the year, compared to a profit of HKD 200,919,000 in the previous year[42]. - The company reported a total comprehensive loss of HKD 30,034 million for the year, compared to a comprehensive income of HKD 65,861 million in 2019[155]. - The net loss attributable to shareholders for the year was HKD 115,404 million, a decline from a profit of HKD 52,045 million in 2019[150]. - Revenue from continuing operations for 2020 was HKD 14,748 million, a significant increase from HKD 5,080 million in 2019, representing a growth of 189%[5]. - Gross profit for the year was HKD 12,266 million, compared to HKD 3,931 million in 2019, indicating a gross margin improvement[5]. Investment Properties - The value of the investment properties increased significantly to approximately HKD 1.692 billion as of December 31, 2020, from HKD 283 million in 2019[12]. - Rental income from investment properties rose by approximately HKD 10 million or 188% to about HKD 15 million in 2020, compared to HKD 5 million in 2019[12]. - The company reported a total investment property value of approximately HKD 1,691,820,000 as of December 31, 2020, with a recognized gain of about HKD 2,500,000 from fair value changes in the income statement for the year[132]. Restructuring and Shareholder Changes - The company completed a group restructuring on July 31, 2020, which involved the acquisition of all issued shares of 达润投资有限公司 for HKD 1.38 billion and the sale of Linkful Strategic Investment Limited for HKD 1.14 billion[17]. - Following the restructuring, the total number of issued shares increased from 2.7 billion to approximately 3.88 billion, with the controlling shareholder's stake rising from about 64.1% to 75%[17]. - As of December 31, 2020, the CEO and directors collectively held 2,911,377,003 shares, representing 75.00% of the company's issued share capital[70]. Financial Position - The total assets increased to HKD 1,855,831,000 from HKD 1,755,055,000 in the previous year, representing a growth of approximately 5.7%[45]. - The total liabilities increased to HKD 344,376,000 from HKD 305,749,000, indicating a rise of about 12.6%[45]. - The company’s equity attributable to shareholders was HKD 1,511,455 million, compared to HKD 1,449,306 million in 2019, showing a slight increase in shareholder equity[157]. - The group’s debt-to-equity ratio was approximately 19.77% as of December 31, 2020, slightly down from 20.11% in 2019[23]. Cash Flow and Financing - The net cash inflow from operating activities was HKD 251,685,000, compared to HKD 86,137,000 in the previous year, indicating a significant increase[163]. - The cash and cash equivalents at the end of the year decreased to HKD 161,116,000 from HKD 200,981,000, representing a decline of 19.7%[170]. - The net cash outflow from financing activities was HKD 291,872,000, compared to HKD 87,692,000 in 2019, showing a substantial increase in cash outflow[168]. Corporate Governance - The company emphasizes strong corporate governance practices, focusing on a quality board, robust internal controls, and transparency to all shareholders[84]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced composition[86]. - All independent non-executive directors have confirmed their independence according to the listing rules, with no significant relationships among board members[88]. - The company has implemented a standard code of conduct for securities trading by directors, ensuring compliance with regulations[92]. Risk Management - The company has identified its major risks and established a risk management system to achieve strategic objectives[108]. - The board is committed to maintaining effective internal controls and risk management systems, which have been deemed sufficient and effective[111]. Audit and Compliance - The financial statements for the years ending December 31, 2018, 2019, and 2020 were audited by Guo Wei CPA Limited[81]. - The independent auditor confirmed that the consolidated financial statements reflect a true and fair view of the group's financial position as of December 31, 2020[128]. - The audit report emphasizes the importance of professional skepticism and the identification of risks of material misstatement in the financial statements[141]. Future Outlook - The group anticipates continued pressure on rental income and vacancy rates in 2021 due to the ongoing impact of the COVID-19 pandemic[27]. - The management believes that the future main business revenue will be more stable due to the completion of the group restructuring[27]. - The company will continue to focus on business expansion opportunities and maintaining a culture of quality service for its customers[113].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 123,613 thousand, a decrease from HKD 44,744 thousand in the same period of 2019, representing a decline of approximately 176.6%[10] - The company reported a loss before tax of HKD 128,315 thousand for the six months ended June 30, 2020, compared to a profit of HKD 38,558 thousand in the same period of 2019[10] - Basic and diluted loss per share for the period was HKD 4.75, compared to earnings of HKD 1.43 per share in the same period of 2019[10] - The group reported a decrease in financing costs, with interest on other loans amounting to HKD 425 million for the six months ended June 30, 2020, down from HKD 1,608 million in the same period of 2019, a reduction of approximately 73.6%[39] - The group incurred employee benefits expenses of HKD 2,562 million for the six months ended June 30, 2020, slightly down from HKD 2,625 million in the same period of 2019[36] - The company recorded a loss of approximately HKD 128 million for the six months ended June 30, 2020, compared to a profit of HKD 39 million in 2019, primarily due to fair value losses on equity investments[81] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 1,578,705 thousand, down from HKD 1,755,055 thousand as of December 31, 2019, indicating a decrease of approximately 10.1%[16] - The company reported a total equity attributable to shareholders of HKD 1,320,991 thousand as of June 30, 2020, down from HKD 1,449,306 thousand at the end of 2019, a decrease of approximately 8.8%[16] - The total liabilities as of June 30, 2020, were HKD 257,714 thousand, compared to HKD 305,215 thousand as of December 31, 2019, reflecting a decrease of approximately 15.6%[16] - The total value of current assets was approximately HKD 587 million, while total liabilities were approximately HKD 258 million, indicating no debt as of June 30, 2020[98] - The group has no significant contingent liabilities as of June 30, 2020[101] Cash Flow - Cash and cash equivalents decreased to HKD 152,057 thousand as of June 30, 2020, from HKD 200,981 thousand at the end of 2019, a decline of about 24.2%[22] - The net cash outflow from operating activities was HKD 1,127 thousand for the six months ended June 30, 2020, compared to an inflow of HKD 6,483 thousand in the same period of 2019[22] - The company had a net cash outflow from financing activities of HKD 48,012 thousand for the six months ended June 30, 2020, compared to an outflow of HKD 107,231 thousand in the same period of 2019[22] - As of June 30, 2020, the company's short-term deposits amounted to HKD 150,000,000, down from HKD 200,000,000 as of December 31, 2019[50] Dividends - The company did not declare any interim dividend for the period ended June 30, 2020[10] - The group did not recommend the distribution of an interim dividend for the six months ended June 30, 2020, consistent with the previous year[42] - The company did not declare an interim dividend for the year due to considerations of profitability, debt levels, and future funding needs[81] Investments and Restructuring - The company completed a major restructuring plan, acquiring all issued shares of a subsidiary for HKD 1,381,502,456 and selling another subsidiary for HKD 1,146,746,283[74] - Following the restructuring, the total number of issued shares increased from 2,700,000,000 to 3,881,836,004, with the controlling shareholder's stake rising from approximately 64.1% to 75%[75] - The company’s investment portfolio as of June 30, 2020, included high liquidity equity investments valued at approximately HKD 434 million, down from HKD 561 million at the end of 2019[83] - The company’s investment properties primarily consist of office, industrial, and residential properties, contributing stable rental income[82] - The group completed a restructuring plan with Wan Shi Chang International Holdings Limited on July 31, 2020, significantly enhancing its investment property portfolio[104] Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules during the six months ending June 30, 2020[125] - All directors confirmed compliance with the standards of the code for securities trading during the six months ending June 30, 2020[126] - The company plans to propose amendments to its articles of association to ensure compliance with the corporate governance code if necessary[125] Future Outlook - The management anticipates that the positive impact of the restructuring will begin to reflect in the group's performance from the second half of 2020[104] - The management will adopt a conservative investment and financial strategy to maintain a stable financial position amid uncertainties caused by the COVID-19 pandemic and geopolitical tensions[104] Shareholder Information - The company reported a total of 2,911,377,003 shares held by major shareholders, representing approximately 107.83% of the total issued shares[118] - The company has issued 2,700,000,000 ordinary shares with a par value of HKD 0.01, maintaining the same number of shares since December 31, 2019[53] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six months ending June 30, 2020[123] Compliance and Audit - The audit committee reviewed the group's accounting principles and practices, including the unaudited interim results for the six months ending June 30, 2020[124] - The interim report for 2020 is available on the company's website and the Hong Kong Stock Exchange website[130] - The company has no directors or executives holding any equity interests in the company or its subsidiaries as of June 30, 2020[112] - The company has not granted any rights to directors to purchase shares or debt securities during the six months ending June 30, 2020[117]

Financial Performance - The company recorded a net profit of approximately HKD 52 million for the year ended December 31, 2019, compared to a loss of HKD 92 million in 2018, primarily due to fair value gains from equity investments[9]. - The group's profit for the year ended December 31, 2019, was HKD 48,848,000, compared to a loss of HKD 79,150,000 in 2018[45]. - The net profit for the year was HKD 52,045 thousand, compared to a net loss of HKD 91,785 thousand in the previous year, indicating a turnaround in performance[155]. - Total revenue for the year ended December 31, 2019, was HKD 48,848 thousand, compared to HKD 79,150 thousand in 2018, reflecting a decrease of approximately 38.3%[155]. - Gross profit for 2019 was HKD 47,699 thousand, a significant recovery from a gross loss of HKD 80,207 thousand in 2018[155]. - Basic and diluted earnings per share for the year were HKD 1.93, a recovery from a loss of HKD 3.40 per share in 2018[155]. - Total comprehensive income attributable to shareholders for the year was HKD 65,861,000, compared to a loss of HKD 41,791,000 in the previous year[161]. Investment Performance - Fair value gains from equity investments amounted to approximately HKD 17 million in 2019, a significant recovery from a loss of HKD 111 million in 2018[9]. - The investment portfolio recorded a net fair value gain of approximately HKD 17 million as of December 31, 2019[12]. - The company’s equity investments included significant holdings in blue-chip stocks and exchange-traded funds, with a focus on long-term investment and dividend income[12]. - The company reported a fair value gain from investment properties of HKD 15,470 thousand for the year, contributing to overall profitability[155]. Dividend and Reserves - The company decided not to declare a final dividend for the year, considering its profit situation, debt levels, and future funding needs[10]. - The board decided not to declare a dividend for the year ended December 31, 2019, considering the company's profit situation and future funding needs[43]. - As of December 31, 2019, the company's available reserves amounted to approximately HKD 498,761,000, unchanged from 2018[60]. - The company's retained earnings as of December 31, 2019, totaled approximately HKD 88,380,000, also unchanged from 2018, but currently not distributable to shareholders due to unmet conditions[60]. Assets and Liabilities - Total assets as of December 31, 2019, amounted to HKD 1,755,055,000, with total liabilities of HKD 305,749,000[47]. - As of December 31, 2019, the company held liquid equity investments valued at approximately HKD 561 million, down from HKD 608 million in 2018[12]. - The group's cash and cash equivalents as of December 31, 2019, were approximately HKD 201 million, slightly down from HKD 202 million in 2018[24]. - Total bank and other borrowings as of December 31, 2019, were approximately HKD 291 million, down from HKD 376 million in 2018[24]. - Non-current assets totaled HKD 991,943,000, an increase from HKD 962,676,000 in 2018[161]. - Current assets decreased to HKD 763,112,000 from HKD 810,733,000 in 2018[161]. Operational Efficiency - The group employed approximately 10 employees as of December 31, 2019, with employee expenses totaling around HKD 5 million, down from HKD 6 million in 2018[29]. - Operating and administrative expenses decreased to HKD 7,949 thousand from HKD 8,160 thousand in 2018, showing improved cost management[155]. - Financing costs for the year were HKD 3,016 thousand, down from HKD 3,293 thousand in the previous year, indicating reduced debt servicing costs[155]. - The company is focused on maintaining its operational efficiency and exploring new market opportunities to sustain growth in the future[155]. Risk Management and Future Outlook - The group is closely monitoring the performance of its equity investments and market conditions to mitigate financial risks associated with global economic fluctuations[19]. - The group anticipates a negative impact on its business due to the COVID-19 pandemic, with uncertainty regarding the extent of this impact in 2020[26]. - The group expects a gradual recovery in demand for local commercial properties post-pandemic, although the overall outlook remains cautious due to the uncertain economic environment[30]. - The group acknowledges the ongoing volatility in the RMB, which may affect its performance, and will monitor and hedge currency risks as appropriate[22]. Corporate Governance - The company has confirmed that its financial statements for the years ended December 31, 2017, 2018, and 2019 were audited by KPMG, and the firm will be proposed for reappointment at the upcoming annual general meeting[82]. - The board consists of two executive directors and three independent non-executive directors, ensuring compliance with the requirement of having at least three independent non-executive directors[87]. - All independent non-executive directors have confirmed their independence according to the guidelines set out in the Listing Rules, ensuring a balanced composition of the board[89]. - The company has adopted a board diversity policy to enhance its strategic goals and sustainable development, considering various factors such as skills, experience, and gender[90]. - The company has implemented a continuous professional development program for directors, providing monthly updates on performance and encouraging participation in ongoing training[95]. Accounting and Reporting - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, utilizing historical cost accounting except for investment properties and certain financial instruments measured at fair value[182]. - The company has adopted new and revised Hong Kong Financial Reporting Standards for the current year, which did not have a significant impact on the financial performance or disclosures[188]. - The group recognized a lease liability of HKD 0 million as of January 1, 2019, following the application of HKFRS 16[194]. - The adjustments made to the consolidated statement of financial position as of January 1, 2019, included a decrease of HKD 375 million in prepaid land lease payments and a corresponding increase in right-of-use assets[197].

Financial Performance - The company reported revenue of HKD 44,744,000 for the six months ended June 30, 2019, compared to HKD 26,173,000 in the same period of 2018, representing an increase of 70.9%[8] - Gross profit for the period was HKD 44,151,000, up from a gross loss of HKD 26,685,000 in the previous year[8] - The company achieved a profit before tax of HKD 38,558,000, compared to a loss of HKD 31,756,000 in the prior year[8] - Basic and diluted earnings per share were HKD 1.43, compared to a loss of HKD 1.18 per share in the same period last year[8] - The total profit before tax for the six months ended June 30, 2019, was HKD 38,558,000, compared to a loss of HKD 31,756,000 in the same period of 2018, indicating a significant turnaround[36] - The company reported a profit attributable to ordinary equity holders of approximately HKD 38,558,000 for the period, compared to a loss of HKD 31,756,000 in the same period last year[49] - The group recorded a profit of approximately HKD 39,000,000 for the six months ended June 30, 2019, compared to a loss of HKD 32,000,000 in 2018, primarily due to fair value gains from equity investments[83] Assets and Liabilities - The total assets of the company as of June 30, 2019, were HKD 1,706,044,000, down from HKD 1,773,409,000 at the end of 2018[14] - Current liabilities decreased to HKD 280,622,000 from HKD 386,545,000 at the end of 2018, indicating improved liquidity[14] - The company’s equity attributable to shareholders increased to HKD 1,422,003,000 from HKD 1,383,445,000 at the end of 2018[14] - Total borrowings amounted to approximately HKD 270,000,000, a decrease from HKD 376,000,000 at the end of 2018, with no significant debt as of June 30, 2019[95] Cash Flow and Liquidity - The net cash flow from operating activities was HKD 6,483,000, down from HKD 9,768,000 in the previous year[22] - Cash and cash equivalents at the end of the period were HKD 101,600,000, a decrease from HKD 182,956,000 at the end of the previous year[22] - Cash and cash equivalents were reported at HKD 1,725,000 as of June 30, 2019, down from HKD 2,263,000 as of December 31, 2018[59] - The company’s cash and cash equivalents, after deducting pledged deposits, were reported at HKD 101,600,000 as of June 30, 2019, compared to HKD 202,263,000 as of December 31, 2018[59] - Cash and cash equivalents were approximately HKD 102,000,000 as of June 30, 2019, down from HKD 202,000,000 at the end of 2018[95] Revenue Sources - For the six months ended June 30, 2019, the revenue from external customers was HKD 2,497,000, compared to HKD 2,374,000 for the same period in 2018, representing an increase of approximately 5.2%[36] - The rental income from investment properties for the six months ended June 30, 2019, was HKD 2,497,000, up from HKD 2,374,000 in 2018, reflecting a growth of 5.2%[40] - The fair value gain/loss on equity investments for the six months ended June 30, 2019, was HKD 33,751,000, compared to a loss of HKD 35,034,000 in the same period of 2018, showing a recovery in investment performance[40] - The interest income from bank deposits increased to HKD 90,000 in the first half of 2019, up from HKD 49,000 in 2018, marking an increase of 83.7%[40] - The group’s investment properties primarily include office, industrial, and residential properties, contributing to stable rental income[84] Employee and Operational Expenses - The total employee expenses for the six months ended June 30, 2019, were HKD 2,625,000, down from HKD 2,747,000 in 2018, indicating a decrease of 4.4%[42] - The group employed approximately 10 employees in Hong Kong as of June 30, 2019, with employee expenses (including director remuneration) amounting to approximately HKD 3,000,000, unchanged from 2018[99] Corporate Governance and Compliance - The audit committee reviewed the accounting principles and practices adopted by the group and discussed the unaudited interim results for the six months ended June 30, 2019[120] - The company has adopted a board diversity policy to enhance the diversity of its board members, considering various factors such as skills, experience, and gender[125] - All directors confirmed compliance with the standard code of conduct for securities trading as per the listing rules for the six months ending June 30, 2019[126] - The company plans to propose amendments to its articles of association to ensure compliance with the corporate governance code[121] Future Outlook - The company anticipates a more challenging business environment in the second half of 2019 due to uncertainties from the US-China trade dispute and other global economic factors[100] - The company maintains a cautiously optimistic outlook for the Hong Kong and mainland China property markets, aided by a 0.25% interest rate cut in the US in late July 2019[100] Shareholder Information - As of June 30, 2019, Mr. Liu Zhiyong holds 1,729,540,999 shares, representing approximately 64.06% of the company's issued share capital[104] - The weighted average number of ordinary shares issued during the period remained at 2,700,000,000 shares for both 2019 and 2018[49] - The company’s total issued and fully paid ordinary shares remained at 2,700,000,000 shares as of June 30, 2019[63] - The company has no issued potential dilutive ordinary shares as of the reporting date, resulting in basic and diluted earnings per share being equal[49] Dividends - The company does not recommend the distribution of an interim dividend for the six months ended June 30, 2019, compared to no dividend in the same period last year[48] - The group did not declare an interim dividend for the year, considering its profit situation, debt levels, and future funding needs[83] Other Information - The group had irrevocable operating lease commitments of HKD 600,000 as of June 30, 2019, all related to short-term leases[34] - The group’s equity investments are primarily in Hong Kong-listed securities, with a focus on monitoring market conditions to mitigate financial risks[89] - There were no significant acquisitions or disposals of subsidiaries or associates during the reporting period[92] - The mid-term report for 2019, containing all required information as per listing rules, is available on the company's website and the Hong Kong Stock Exchange[127] - The board consists of two executive directors and three independent non-executive directors as of the report date[128]

Financial Performance - The company recorded a net loss of approximately HKD 92 million for the year ended December 31, 2018, compared to a profit of HKD 201 million in 2017, primarily due to fair value losses on equity investments [8]. - The group reported a loss of HKD 79,150,000 for the year ended December 31, 2018, compared to a profit of HKD 192,898,000 in 2017, indicating a significant decline in performance [40]. - The company reported a revenue of HKD (79,150) thousand for the year ended December 31, 2018, a significant decrease from HKD 192,898 thousand in 2017, representing a decline of approximately 141% [142]. - The gross loss for the year was HKD (80,207) thousand, compared to a gross profit of HKD 192,032 thousand in the previous year [142]. - The company incurred a loss before tax of HKD (91,359) thousand, down from a profit before tax of HKD 202,379 thousand in 2017 [142]. - The net loss for the year was HKD (91,785) thousand, contrasting with a profit of HKD 200,919 thousand in 2017, indicating a shift in performance [142]. - The total comprehensive income for the year ended December 31, 2018, was HKD 49,999, resulting in a total comprehensive loss of HKD 41,791 [153]. Investment and Assets - As of December 31, 2018, the company held high liquidity equity investments valued at approximately HKD 608 million, down from HKD 725 million in 2017 [11][21]. - The group reported a total investment property value of approximately HKD 267,310,000 as of December 31, 2018 [124]. - The group has listed equity investments at a fair value of approximately HKD 607,523,000 as of December 31, 2018, classified as Level 1 financial instruments [127]. - The total assets as of December 31, 2018, amounted to HKD 1,773,409,000, an increase from HKD 1,319,603,000 in 2017 [43]. - The company’s non-current assets totaled HKD 962,676 thousand in 2018, a significant increase from HKD 440,556 thousand in 2017 [148]. Cash Flow and Liquidity - The company's cash and cash equivalents were approximately HKD 202 million as of December 31, 2018, compared to HKD 153 million in 2017 [21]. - The cash flow from operating activities before tax loss was HKD (91,359), a decrease from HKD 202,379 in 2017 [156]. - The net cash inflow from operating activities was HKD 29,643, down from HKD 71,261 in the previous year [156]. - The cash and cash equivalents at the end of the year amounted to HKD 202,263, an increase from HKD 152,945 in 2017 [158]. Debt and Liabilities - Total bank and other borrowings amounted to approximately HKD 376 million as of December 31, 2018, an increase from HKD 353 million in 2017 [21]. - Total liabilities as of December 31, 2018, were HKD 389,964,000, compared to HKD 366,550,000 in 2017 [43]. - The group has no significant contingent liabilities as of December 31, 2018 [22]. Dividends and Shareholder Returns - The company did not declare a final dividend for the year due to considerations of profitability, debt levels, and future funding needs [9]. - The group decided not to declare a dividend for the year ended December 31, 2018, due to considerations of profitability, debt levels, and future funding needs [38]. - The company’s available distributable reserves as of December 31, 2018, were approximately HKD 498,761,000 [55]. Corporate Governance - The company has maintained compliance with the corporate governance code as of December 31, 2018 [80]. - The board consists of two executive directors and three independent non-executive directors, ensuring a majority of independent members [82]. - The company is committed to establishing good corporate governance practices and procedures [79]. - The board held 8 meetings in the fiscal year ending December 31, 2018, with all directors attending all meetings [86]. - The company adopted a board diversity policy in December 2013, aiming to enhance strategic goals and sustainable development through diverse board member backgrounds [87]. Risk Management - The company is closely monitoring foreign exchange risks, particularly related to the Renminbi, which may impact performance [17]. - The company has established a risk management system to identify and manage risks associated with achieving strategic goals [104]. - The board is committed to maintaining effective internal controls and risk management systems [104]. Market Conditions and Future Outlook - The group anticipates challenges in 2019 due to rising domestic operating costs and uncertainties from global political and economic factors, including the US-China trade war [27]. - The Hong Kong property market has experienced over two years of continuous growth, but potential risks include government measures and market volatility [27]. - The Federal Reserve raised interest rates four times in 2018, which may pressure the prices of equity investments held by the group, particularly high-yield stocks [24]. Employee and Compensation - Employee expenses, including director remuneration, remained stable at approximately HKD 6,000,000 for both 2018 and 2017 [23]. - The management emphasizes maintaining competitive and fair compensation for employees based on performance and market conditions [23]. - The remuneration committee considers the company's performance and market conditions when reviewing executive compensation [98]. Compliance and Regulations - The company has no significant violations of applicable laws and regulations during the review year [46]. - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, utilizing historical cost method except for investment properties and certain financial instruments measured at fair value [171]. - The company has implemented procedures to prevent improper handling of insider information [107].