Revenue and Profitability - Revenue for the six months ended September 30, 2019, was HKD 41,716,000, a significant increase from HKD 5,280,000 in the same period of 2018, representing a growth of 694%[5] - Gross profit for the same period was HKD 13,108,000, compared to HKD 4,588,000 in 2018, indicating a gross margin improvement[5] - Revenue from property development and sales was HKD 38,637,000, while revenue from hydropower station operation management was HKD 2,405,000[29] - The group generated HKD 41,072,000 in revenue from customer contracts, with property management services contributing HKD 30,000[29] - The group’s property management business generated revenue of approximately HKD 30,000 and a classified profit of approximately HKD 14,000 for the six months ended September 30, 2019, with no revenue recorded in the same period of 2018[72] Losses and Expenses - The company reported a loss before tax of HKD 1,215,000, an improvement from a loss of HKD 5,005,000 in the previous year[5] - The company reported a total comprehensive loss of HKD 30,472,000 for the six months ended September 30, 2019, compared to a total comprehensive loss of HKD 36,303,000 for the same period in 2018, reflecting a decrease in losses of approximately 16.5%[12] - The loss attributable to owners of the company was HKD 7,940,000, compared to HKD 7,502,000 in the previous year, indicating a slight increase in losses[7] - The company incurred costs of HKD 28,608,000 for sold inventory in the six months ended September 30, 2019, compared to HKD 692,000 in the same period of 2018, indicating a significant increase[37] - The company reported total expenses of HKD 3,568,000 related to taxes for the six months ended September 30, 2019, with no tax liabilities reported for the same period in 2018[39] Assets and Liabilities - Non-current assets decreased to HKD 103,207,000 from HKD 134,583,000 as of March 31, 2019, indicating a decline of 23%[9] - Current assets totaled HKD 351,527,000, down from HKD 451,086,000, representing a decrease of 22%[9] - The company's net asset value was HKD 364,934,000, a decrease from HKD 384,640,000 as of March 31, 2019[10] - Total assets classified as held for sale amounted to HKD 318,095,000 as of September 30, 2019[44] - The total liabilities of the company increased, impacting the overall financial position, although specific figures were not disclosed in the provided content[12] Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2019, was HKD (43,259,000), an improvement compared to HKD (85,061,000) for the same period in 2018, indicating a reduction in cash outflow of approximately 49.1%[14] - Cash and cash equivalents at the end of the period were HKD 6,697,000, down from HKD 17,140,000 at the end of the same period in 2018, representing a decrease of approximately 61.0%[14] - The company raised new borrowings amounting to HKD 33,575,000 during the financing activities, compared to HKD 51,974,000 in the previous year, indicating a decrease of approximately 35.4%[14] - The company issued shares worth HKD 11,760,000 during the period, contributing to the increase in share capital[12] - The company issued bonds totaling HKD 10,500,000, with a maturity exceeding two years, compared to HKD 1,000,000 as of March 31, 2019[52] Strategic Decisions and Changes - The company plans to sell its subsidiary, Fengwei Holdings Limited, as part of its strategic restructuring[2] - The company agreed to sell its wholly-owned subsidiary for HKD 7,500,000, which will result in the cessation of its electronic product design and sales business[32] - The company completed the acquisition of 100% equity in Zhongfu Real Estate, indirectly acquiring land use rights for approximately 9,188.2 square meters in Benxi City, Liaoning Province[71] - The company has not signed any legally binding agreements regarding significant investments or acquisitions of capital assets as of the report date[85] - The company has established an audit committee, which includes members Wang Ping, Song Wenke, and Zeng Guowei, to review accounting principles and internal controls[113] Employee and Management Costs - The company’s employee costs, including director remuneration, rose to HKD 2,799,000 for the six months ended September 30, 2019, compared to HKD 1,796,000 in the same period of 2018, an increase of 55.9%[37] - The total employee cost for the six months ended September 30, 2019, was approximately HKD 17,230,000, compared to HKD 15,086,000 for the same period in 2018, representing an increase of about 14.2%[82] - The company reported a significant increase in the remuneration for key management personnel, rising to HKD 2,249,000 from HKD 1,440,000 year-on-year[61] Corporate Governance - The company has adopted all code provisions of the corporate governance standards as of September 30, 2019, with some exceptions noted[102] - The independent non-executive director Wang Ping was re-elected at the 2019 annual general meeting, holding six directorships in listed companies[105] - The board of directors includes executive directors Wang Jing, Wang Xingqiao, and Zhao Shuang, along with independent non-executive directors Wang Ping, Song Wenke, and Zeng Guowei[115] Market Outlook and Future Plans - The group anticipates a challenging market environment in the coming year due to political, economic, and global trade tensions, and will maintain a prudent investment strategy[88] - The group will continue to focus on property development in China, clean energy development, and other prosperous industry categories[88]

China Sinostar Group Company Limited 中國華星集團有限公司 集團使命 我們肩負「創造美好生活」之使命，將我們管理團隊在企 業文化方面取得的成就融入到當前經營的業務中，並堅持 「客戶至上、謀求共贏、和平共處、推動環保、以結果為 導向」之理念，從而推動企業的可持續發展。這一理念表 明我們積極回應利益相關者所關注之問題，尤其是我們將 不斷增加回報，尋求良機，從而不負投資者之重托。我們 日後會將業務擴展至具備良好發展機遇的其他分部。我們 保證會供應優質產品，為客戶提供貼心服務，踐行向員工 許下的承諾並關注員工所需，為其創造居家式辦公環境並 為其提供廣闊的發展平台，同時積極參與社會福利事業， 從而取得社會各界的支持和理解。 Annual Report 2019 年報 CONTENTS 目錄 China Sinostar Group Company Limited 2019 Annual Report 年報 中國華星集團有限公司 OUR MISSION We have highlighted the mission of "invest for a better life", inte ...