Financial Performance - The company reported total revenue of HKD 360,402,000 for the year ending June 30, 2024, a decrease of 20.9% from HKD 455,608,000 in the previous year[1]. - The gross loss for the year was HKD 42,757,000, compared to a gross profit of HKD 66,253,000 in the prior year[1]. - The company incurred a loss before tax of HKD 294,149,000, significantly higher than the loss of HKD 102,908,000 reported in the previous year, representing an increase of 186.5%[2]. - The net loss for the year was HKD 300,314,000, compared to a net loss of HKD 115,409,000 in the previous year, indicating a year-over-year increase of 160.5%[2]. - Total comprehensive loss for the year amounted to HKD 305,274,000, compared to HKD 146,771,000 in the previous year, reflecting an increase of 107.5%[4]. - The loss per share for the year was HKD 37.67, compared to HKD 14.39 in the previous year, indicating a significant increase in losses per share[4]. - The company reported a loss attributable to shareholders of approximately HKD 257,302,000 for the year ended June 30, 2024[7]. - The company faced significant challenges leading to a decline in revenue and net income, attributed to a weak macroeconomic environment and specific market dynamics affecting jewelry sales[38]. Assets and Liabilities - The company's non-current assets decreased to HKD 2,595,092,000 from HKD 2,697,577,000, a decline of 3.8%[5]. - Current assets also decreased to HKD 771,813,000 from HKD 1,027,066,000, representing a decrease of 25.0%[5]. - Total liabilities decreased to HKD 995,596,000 from HKD 1,022,162,000, a reduction of 2.6%[6]. - The company's net asset value decreased to HKD 1,980,659,000 from HKD 2,285,933,000, a decline of 13.3%[6]. - Current liabilities exceeded current assets by approximately HKD 223,783,000 as of June 30, 2024[7]. - The company has bank loans classified as current liabilities amounting to HKD 882,506,000, with cash and cash equivalents at HKD 49,156,000[7]. - The total assets of the company as of 2024 were HKD 3,366,905,000, a decrease from HKD 3,724,643,000 in 2023, representing a decline of 9.6%[18]. - Total liabilities decreased to HKD 1,386,246,000 in 2024 from HKD 1,438,710,000 in 2023, a reduction of 3.6%[18]. Revenue Breakdown - The jewelry business generated revenue of HKD 333,897,000 in 2024, down 23.2% from HKD 434,936,000 in 2023[17]. - Property investment and development revenue increased to HKD 22,320,000 in 2024 from HKD 15,659,000 in 2023, a growth of 42.5%[17]. - Revenue from Hong Kong, the registered location, was HKD 40,785,000 in 2024, up from HKD 39,502,000 in 2023, an increase of 3.2%[21]. - Revenue from North America decreased significantly to HKD 115,463,000 in 2024 from HKD 172,309,000 in 2023, a decline of 33.0%[21]. - The jewelry segment's revenue fell by approximately HKD 101 million or 23.2% to HKD 333.9 million, with a loss of HKD 23.7 million compared to a profit of HKD 2.7 million last year[40]. Cash Flow and Financing - The cash and cash equivalents at the end of 2024 were HKD 49,156,000, down from HKD 90,695,000 in 2023, a decrease of 45.8%[18]. - The company plans to sell remaining properties, expecting profits of HKD 60,000,000 and HKD 153,730,000 to cover bank loans classified as current and non-current liabilities respectively[7]. - The company anticipates that other bank loans classified as current liabilities can be repaid on time or renewed after maturity based on past performance[7]. - The company will consider selling listed equity investments and bonds to provide additional operating funds if necessary[7]. - The company has provided guarantees for bank loans to subsidiaries amounting to HKD 843,690,000 as of June 30, 2024[51]. - Bank loans amounted to HKD 1.024 billion, with interest rates ranging from 5.05% to 8.25%[36]. Operational Strategies - The company aims to enhance operations and implement cost control measures to improve cash flow from operating activities[7]. - The company plans to recognize expected revenue from contract liabilities within the next year, amounting to HKD 343,000,000[15]. - The company plans to adopt a more cautious approach in investment and resource allocation, focusing on risk assessment and strategic implementation to mitigate financial performance impacts[43]. Governance and Compliance - The auditor's report on the financial statements for the two years did not contain any reservations or emphasis of matter[9]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from July 1, 2023, with no significant impact on its performance or financial position[10]. - The company has established an audit committee to oversee financial reporting and internal controls, composed of four independent non-executive directors[58]. - The company has not established an internal audit function for the year ending June 30, 2024, but believes that the current organizational structure and management oversight provide sufficient internal control and risk management[61]. - All directors confirmed compliance with the standard code of conduct for securities trading as per Appendix C3 of the Listing Rules for the year ending June 30, 2024[62]. Future Outlook - The market outlook remains bleak due to high interest rates impacting consumer spending and investment, potentially hindering economic recovery[42]. - The company will continue to strive to overcome future challenges and enhance business value[65].

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 200,183, a decrease of 25.7% compared to HKD 269,864 in the same period of 2022[4] - Gross profit for the same period was HKD 49,888, down 31.8% from HKD 73,049 in 2022[4] - The company reported a loss before tax of HKD 35,503, compared to a loss of HKD 7,640 in the previous year, indicating a significant decline in performance[4] - The net loss for the period was HKD 35,589, compared to a loss of HKD 7,659 in the prior year, reflecting a worsening financial situation[5] - Basic and diluted loss per share for the period was HKD 4.64, compared to HKD 0.92 in the same period last year[5] - The total comprehensive loss for the period was HKD 31,179,000, compared to a comprehensive loss of HKD 23,212,000 in the previous year, representing an increase of approximately 34%[13] - The jewelry segment's revenue fell by about HKD 74,336,000 or 28.3% to HKD 187,901,000, down from HKD 262,237,000 in the prior period, with a segment loss of HKD 8,804,000 compared to a profit of HKD 15,599,000 last year[66] Cash Flow and Liquidity - Cash and cash equivalents decreased to HKD 61,637 from HKD 90,695 at the end of June 2023, representing a decline of 32.1%[11] - The company experienced a net cash outflow from operating activities of HKD 27,327, compared to an outflow of HKD 5,149 in the previous year[11] - The group reported a net current liabilities of HKD 222,005,000 as of December 31, 2023, which raises concerns regarding liquidity[15] - The group has unutilized bank credit facilities exceeding HKD 350,000,000, which may support operational funding needs[15] - The group's cash and cash equivalents decreased to HKD 61,637,000 from HKD 97,101,000 as of June 30, 2023, mainly due to financial costs and partial repayment of bank loans[76] Assets and Liabilities - Total assets less current liabilities amounted to HKD 2,479,059, a decrease from HKD 2,702,481 as of June 30, 2023[8] - Non-current liabilities included bank loans of HKD 224,305, down from HKD 416,548 in the previous period[8] - The company’s total equity decreased to HKD 2,254,754 from HKD 2,285,933, indicating a slight reduction in shareholder value[8] - As of December 31, 2023, the total equity amounted to HKD 2,254,754,000, a decrease from HKD 2,446,366,000 as of December 31, 2022, reflecting a decline of approximately 7.8%[13] - The total bank loans amounted to HKD 1,045,997,000 as of December 31, 2023, with a repayment schedule including HKD 350,876,000 due within one year[45] Operational Segments - The group identified four operational segments: jewelry business, property investment and development, mining business, and investments[24] - The mining segment did not record any revenue during the review period due to minimal operational scale and no production activities[69] Corporate Governance and Management - The company has complied with all applicable corporate governance codes for the six months ending December 31, 2023, except for the separation of roles between the chairman and CEO[96] - The company has not established an internal audit function but believes its current organizational structure provides sufficient internal control and risk management[97] - The audit committee, composed of five independent non-executive directors, has reviewed the unaudited consolidated interim financial statements for the six months ending December 31, 2023[101] - The company has appointed Chen Meiqi as an executive director effective February 8, 2024[101] Future Outlook - The management remains optimistic about a gradual recovery as interest rates ease, which is expected to encourage consumer spending[70] - The property market is anticipated to gradually recover, with increased demand for retail and commercial spaces as economic stability and consumer confidence improve[73] Shareholder Information - The total equity held by directors and senior management in the company amounted to 509,609,522 shares, representing 74.60% of the issued share capital[90] - The major shareholder, Ms. Zheng Xiaoyan, provided a loan of RMB 4,000,000 (approximately HKD 4,384,000) as of December 31, 2023[82] - The company has a significant ownership structure with Zheng Xiaoyan holding 70% and Chen Weili holding 16% of the shares[92] Employee Information - The group employed approximately 478 employees as of December 31, 2023, a decrease from 502 employees as of June 30, 2023[83] - Employee benefits expenses for key management personnel amounted to HKD 4,102,000 for the six months ended December 31, 2023, compared to HKD 4,231,000 for the same period in 2022[63]

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 200,183,000, a decrease of 25.7% compared to HKD 269,864,000 in the same period of 2022[2] - Gross profit for the same period was HKD 49,888,000, down 31.8% from HKD 73,049,000 year-on-year[2] - The company reported a loss before tax of HKD 35,503,000, compared to a loss of HKD 7,640,000 in the previous year, indicating a significant increase in losses[2] - Total comprehensive loss for the period was HKD 31,179,000, compared to a loss of HKD 23,212,000 in the same period last year[3] - Basic and diluted loss per share was HKD 4.64, compared to HKD 0.92 in the previous year, reflecting a substantial decline in earnings[3] - The group reported a loss before tax of HKD 35,503,000 for the six months ended December 31, 2023, compared to a loss of HKD 7,640,000 in 2022[22] - The loss attributable to the company's owners for the six months ended December 31, 2023, was HKD 31,677,000, compared to a loss of HKD 6,261,000 in the previous year[37] - Basic loss per share for the six months ended December 31, 2023, was HKD 0.0464, compared to HKD 0.0092 for the same period in 2022[37] Assets and Liabilities - The company had total assets of HKD 2,701,064,000 as of December 31, 2023, compared to HKD 2,697,577,000 as of June 30, 2023[4] - Current liabilities exceeded current assets by HKD 222,005,000, indicating a negative net working capital position[5] - The company reported bank loans of HKD 1,045,997,000, with approximately HKD 695,121,000 due within one year[7] - The company’s equity attributable to owners was HKD 2,052,450,000, a decrease from HKD 2,079,737,000 as of June 30, 2023[5] - The company's investment properties had a carrying amount of HKD 2,078,220,000 as of December 31, 2023, compared to HKD 2,078,100,000 as of June 30, 2023[30] - The carrying amount of development properties increased to HKD 668,039,000 as of December 31, 2023, from HKD 657,777,000 as of June 30, 2023[31] Revenue Segments - Revenue from the jewelry business for the six months ended December 31, 2023, was HKD 187,901,000, a decrease of 28.3% compared to HKD 262,237,000 in 2022[18] - Jewelry segment revenue decreased by approximately HKD 74,336,000 or 28.3% to HKD 187,901,000 for the six months ended December 31, 2023, compared to HKD 262,237,000 in the previous period[40] - The jewelry business recorded a segment loss of HKD 8,804,000, down from a profit of HKD 15,599,000 in the prior period[40] - The decline in jewelry sales was attributed to a weak macroeconomic environment and high inventory levels among overseas retailers, impacting the company's performance[38] Expenses and Financial Costs - Interest expenses on bank loans increased to HKD 33,083,000 in 2023 from HKD 18,886,000 in 2022, representing a 75.5% increase[21] - The group’s financial costs totaled HKD 25,122,000 for the six months ended December 31, 2023, compared to HKD 15,799,000 in 2022, representing a 58.8% increase[21] - The increase in financial costs due to rising interest rates in Hong Kong amounted to approximately HKD 9,323,000, compared to HKD 15,799,000 in the previous period[37] - The cost of goods sold for the period was HKD 150,295,000, down from HKD 196,815,000 in the previous year, indicating a reduction of 23.6%[22] - The group incurred unallocated expenses of HKD 1,080,000 in 2023, compared to HKD 1,400,000 in 2022, reflecting a decrease of 22.9%[18] - Depreciation expenses for property, plant, and equipment were HKD 2,286,000 in 2023, up from HKD 1,967,000 in 2022, marking a 16.2% increase[22] Cash Flow and Capital Management - As of December 31, 2023, the company's cash and cash equivalents decreased to HKD 61,637,000 from HKD 97,101,000 as of June 30, 2023[49] - The company's net debt ratio was 0.3305 as of December 31, 2023, compared to 0.3215 on June 30, 2023[49] - The group has not changed its capital structure as of December 31, 2023, and management does not foresee any need for changes under current financial conditions[53] Corporate Governance and Risk Management - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period, with some deviations noted[58] - The board has not established an internal audit function, believing that the current organizational structure provides sufficient internal control and risk management[60] - The audit committee, composed of five independent non-executive directors, has reviewed the unaudited consolidated interim financial statements for the six months ending December 31, 2023[62] - The group has maintained a conservative approach to financial risk management, with market risks kept at a minimum level[56] - The group has entered into forward foreign exchange contracts to mitigate exchange rate risks related to GBP fluctuations[56] Employee and Operational Management - The group employed approximately 478 employees as of December 31, 2023, down from 502 employees as of June 30, 2023[54] - The company is focused on optimizing operational processes and implementing cost management measures to enhance overall efficiency and profitability[44] - The company has not recorded any revenue from its mining segment during the review period due to minimal operational scale and no production activities[43] - The group has adopted a new share option scheme since December 22, 2020, with 12,200,000 shares remaining unexercised under the previous scheme as of December 31, 2023[55] - The company has adopted a share option plan to attract and retain qualified employees, including directors[54] Dividend Policy - The company did not recommend any interim dividend for the six months ended December 31, 2023[27] - The company does not recommend any interim dividend for the six months ended December 31, 2023, consistent with the previous year[47] Property Development - The company holds a 90% interest in a site in Kowloon, which has been developed into a 25-story residential project with a total floor area of approximately 29,147 square feet, named "Hengpo," and obtained an occupancy permit in July 2023[41] - Rental income from properties increased by HKD 4,988,000 to HKD 10,383,000, compared to HKD 5,395,000 in the same period last year, due to more units being leased at the Henghui Center[40] - The company remains cautiously optimistic about the gradual recovery of the property market, despite challenges such as high interest rates and geopolitical tensions[46]

Financial Performance - For the fiscal year ended June 30, 2023, the Group's consolidated revenue decreased by approximately HK$148.3 million or 24.56% from HK$603.9 million to HK$455.6 million[20]. - The loss attributable to owners of the Company was HK$98.3 million, compared to a profit of HK$12.1 million in the previous year[22]. - The substantial decrease in gross profit of approximately HK$78.9 million was mainly due to a write-down of approximately HK$49.9 million for properties under development[22]. - The Group recognized a loss of approximately HK$27.8 million from the change in fair value of investment properties, compared to a gain of approximately HK$98.5 million in the previous fiscal year[22]. - Finance costs increased by approximately HK$29.1 million, as a significant portion was not capitalized as part of property development costs but recorded directly as expenses[22]. - Basic loss per share was HK14.39 cents, compared to basic earnings per share of HK1.78 cents in 2022[22]. Jewellery Segment - The Group specializes in manufacturing fine jewellery in precious metals set with various gemstones, targeting the middle to upper segments of the market[14]. - The Group's revenue from the jewellery segment decreased by approximately HK$157.3 million or 26.6% from HK$592.2 million last year to HK$434.9 million for the year ended June 30, 2023[27]. - The jewellery segment recorded a profit of approximately HK$2.7 million for the year ended June 30, 2023, down from approximately HK$35.6 million last year, primarily due to decreased revenue and unavoidable fixed operating expenses[27]. Property Segment - Revenue from rental income in the property segment amounted to approximately HK$15.7 million, an increase of HK$7.4 million from HK$8.3 million in 2022[32]. - The Group currently holds 75% interest in "One Continental," a 28-storey premium office and retail building with a gross floor area of approximately 86,970 sq.ft[33]. - The Group owns 90% interest in a site developed into a 25-storey residential project named "Amber Place," with a gross floor area of approximately 29,147 sq.ft, and obtained the occupation permit in July 2023[34]. - The Group's focus in the first half of 2023 was on securing high-quality tenants, resulting in consistent rental income and enhanced real estate portfolio value[46]. Market Outlook - The Group expects a continuous challenging macro backdrop in the second half of 2023, with a modest recovery anticipated in 2024[44]. - The real estate market in Hong Kong faced challenges due to rising interest rates and a slower economic recovery in China, impacting the residential, investment, and land sectors[46]. - The Group plans to adopt a prudent approach in real estate business development and financial positions to provide stable returns to shareholders[46]. Financial Position - As of June 30, 2023, the Group's gearing ratio was 0.3215, an increase from 0.2903 in 2022, indicating a rise in financial leverage[65]. - Cash and cash equivalents decreased to HK$97,101,000 as of June 30, 2023, down from HK$144,008,000 in 2022, primarily due to increased financial and construction costs[66]. - Bank loans denominated in HK$ and US$ amounted to approximately HK$1,058,377,000 as of June 30, 2023, compared to HK$1,027,421,000 in 2022[65]. - The Group's other borrowings, including amounts due to joint ventures and related companies, were approximately HK$122,007,000 as of June 30, 2023, compared to HK$117,216,000 in 2022[65]. Share Option Schemes - The 2010 Share Option Scheme had 12,200,000 options valid and outstanding as of June 30, 2023, following a share consolidation[89]. - The total number of shares available for issue under the 2020 Share Option Scheme is 68,311,825 shares, representing 10% of the shares of the Company in issue as of September 26, 2023[113]. - The 2020 Share Option Scheme is valid for ten years from December 22, 2020, and aims to incentivize eligible persons to enhance the Company's value[106][107]. - No share options have been granted under the 2020 Share Option Scheme since its adoption[111]. Corporate Governance - The Company has adopted the Corporate Governance Code and complied with it during the year ended June 30, 2023, with some deviations explained[175]. - The roles of the Chairman and the Chief Executive Officer are not separated, which is a deviation from Code provision C.2.1[177]. - The Company does not have an internal audit function as of June 30, 2023, but believes its current organizational structure provides sufficient internal control and risk management[178]. - The Board comprises four Executive Directors and five Non-executive Directors, including four Independent Non-executive Directors, meeting the requirement of at least one-third representation[186][198]. Management and Leadership - The Chairman has been with the Group since 2000 and has been instrumental in strategizing its direction[129]. - The Managing Director has over 50 years of experience in the jewellery industry and is responsible for daily operations and strategic planning[135]. - The Group's management team includes individuals with diverse backgrounds in various industries, enhancing strategic decision-making capabilities[145]. - The Group aims to leverage the extensive experience of its directors to navigate market challenges and seize growth opportunities[145].

[Financial Statements](index=3&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended December 31, 2022, the Group's performance shifted from profit to loss, with total revenue decreasing by 19.6% to HK$270 million Consolidated Statement of Profit or Loss and Other Comprehensive Income (Selected Items) | Indicator | For the six months ended December 31, 2022 (HK$'000) | For the six months ended December 31, 2021 (HK$'000) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 269,864 | 335,607 | -19.6% | | Gross Profit | 73,049 | 84,239 | -13.3% | | (Loss) / Profit before Income Tax | (7,640) | 17,011 | Shift from Profit to Loss | | (Loss) / Profit for the Period | (7,659) | 17,094 | Shift from Profit to Loss | | (Loss) / Profit attributable to Owners of the Company | (6,261) | 15,855 | Shift from Profit to Loss | | Basic (Loss) / Earnings per Share (HK cents) | (0.92) | 2.32 | Shift from Profit to Loss | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, the Group's total assets and net assets slightly decreased, recording net current liabilities of HK$122 million primarily due to reclassified bank loans Consolidated Statement of Financial Position (Selected Items) | Indicator | As at December 31, 2022 (HK$'000) | As at June 30, 2022 (HK$'000) | | :--- | :--- | :--- | | Non-current Assets | 2,733,981 | 2,755,018 | | Current Assets | 1,141,315 | 1,110,006 | | Current Liabilities | (1,263,720) | (1,063,782) | | **Net Current (Liabilities) / Assets** | **(122,405)** | **46,224** | | Non-current Liabilities | (202,084) | (354,876) | | **Net Assets** | **2,409,492** | **2,446,366** | [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Cash flow from operating activities significantly improved, with net outflow narrowing to HK$5.15 million, though financing cash inflow decreased, leading to a period-end cash balance of HK$139 million Consolidated Statement of Cash Flows (Selected Items) | Indicator | For the six months ended December 31, 2022 (HK$'000) | For the six months ended December 31, 2021 (HK$'000) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (5,149) | (258,137) | | Net Cash Used in Investing Activities | (13,693) | (36,171) | | Net Cash From Financing Activities | 13,126 | 167,509 | | Decrease in Cash and Cash Equivalents | (5,716) | (126,799) | | Cash and Cash Equivalents at End of Period | 138,848 | 213,185 | [Consolidated Statement of Changes in Equity](index=8&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from HK$2.446 billion to HK$2.409 billion as of December 31, 2022, primarily due to a total comprehensive loss and final dividend distribution - Total equity decreased by **HK$36.874 million** during the period, primarily comprising two components[13](index=13&type=chunk) - Transactions with owners: Distribution of **HK$13.662 million** as final dividend for 2022[13](index=13&type=chunk) - Total comprehensive income: Recording a total comprehensive loss of **HK$23.212 million**, which includes a loss for the period of **HK$7.659 million** and other comprehensive loss of **HK$15.553 million** (mainly exchange differences)[13](index=13&type=chunk) [Notes to the Financial Statements](index=9&type=section&id=Notes%20to%20the%20Financial%20Statements) [Note 1 Basis of Preparation](index=9&type=section&id=Note%201%20Basis%20of%20Preparation) Financial statements are prepared on a going concern basis, as the Board believes sufficient working capital exists despite net current liabilities and a period loss, supported by unutilized bank credit facilities - Management confirms that despite net current liabilities of **HK$122 million**, the going concern basis for financial statement preparation is appropriate, supported by over **HK$400 million** in unutilized bank credit facilities and good banking relationships[15](index=15&type=chunk) [Note 3 Segment Information](index=11&type=section&id=Note%203%20Segment%20Information) The Group operates in Jewellery, Property Investment and Development, Mining, and Investment segments, with Jewellery revenue and profit significantly declining, while Property segment loss expanded due to increased finance costs Segment Revenue and Results | Segment (For the six months ended December 31) | Revenue (HK$'000) | Segment Results (HK$'000) | | :--- | :--- | :--- | | **2022** | | | | Jewellery Business | 262,237 | 15,599 | | Property Investment and Development | 5,395 | (17,100) | | Mining Business | – | (3,399) | | Investment | 2,232 | 311 | | **2021** | | | | Jewellery Business | 329,943 | 30,344 | | Property Investment and Development | 3,875 | (2,609) | | Mining Business | – | (4,947) | | Investment | 1,789 | (2,679) | [Note 4 & 5 Revenue and Finance Costs](index=11&type=section&id=Note%204%20%26%205%20Revenue%20and%20Finance%20Costs) Total revenue decreased primarily due to a 20.5% reduction in Jewellery sales, while finance costs surged to HK$15.80 million as borrowing costs were no longer capitalized after property development completion - Sales of goods, primarily Jewellery, decreased from **HK$330 million** to **HK$262 million**, accounting for the main decline in total revenue[25](index=25&type=chunk) - Finance costs significantly increased, mainly due to total borrowing costs rising from **HK$7.87 million** to **HK$19.90 million**, coupled with a reduction in capitalized interest amounts[27](index=27&type=chunk) [Note 8 & 9 Dividends and EPS](index=14&type=section&id=Note%208%20%26%209%20Dividends%20and%20EPS) The Board does not recommend an interim dividend, and basic loss per share was 0.92 HK cents due to the shift from profit to loss, compared to earnings per share of 2.32 HK cents in the prior period - The Board does not recommend an interim dividend (2021 corresponding period: nil)[34](index=34&type=chunk) Basic (Loss) / Earnings Per Share | Indicator | For the six months ended December 31, 2022 | For the six months ended December 31, 2021 | | :--- | :--- | :--- | | (Loss) / Profit attributable to owners (HK$'000) | (6,261) | 15,855 | | Weighted average number of ordinary shares | 683,118,258 | 683,118,258 | | Basic (Loss) / Earnings per share (HK cents) | (0.92) | 2.32 | [Note 10, 14, 17 Key Assets and Liabilities](index=15&type=section&id=Note%2010%2C%2014%2C%2017%20Key%20Assets%20and%20Liabilities) The Group's core assets, investment properties (HK$2.11 billion) and properties under development (HK$697 million), are pledged for bank loans totaling HK$1.04 billion, with a significant portion classified as current liabilities due to demand clauses - Investment properties with a carrying value of **HK$2.11 billion** and properties under development of **HK$697 million** are pledged as security for bank borrowings[36](index=36&type=chunk)[40](index=40&type=chunk) - Total bank loans amount to **HK$1.041 billion**, of which **HK$732 million** is classified as current liabilities due to "on demand" repayment clauses, despite repayment schedules extending beyond one year[45](index=45&type=chunk) [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) [Operating Results and Business Review](index=25&type=section&id=Operating%20Results%20and%20Business%20Review) The Group shifted from profit to loss in H1 FY2022/23, recording a HK$6.26 million loss attributable to owners, primarily due to declining Jewellery business, increased finance costs, and exchange losses - The shift from profit to loss during the period was primarily attributable to[62](index=62&type=chunk) - A decrease in revenue and gross profit by **HK$65.74 million** and **HK$11.19 million**, respectively[62](index=62&type=chunk) - An increase in finance costs by **HK$13.45 million** due to interest no longer being capitalized after the completion of 'The Henley'[62](index=62&type=chunk) - Recording an exchange loss of **HK$3.12 million** (compared to a gain of **HK$1.01 million** in the prior period)[62](index=62&type=chunk) [Jewellery Business](index=25&type=section&id=Jewellery%20Business) The Jewellery business experienced weak demand due to global macroeconomic factors, resulting in a 20.5% revenue decrease to HK$262 million and segment profit nearly halving to HK$15.60 million - Due to global economic slowdown and rising inflation weakening market demand, Jewellery business revenue decreased by **20.5%** from **HK$330 million** to **HK$262 million**[63](index=63&type=chunk) - Jewellery business segment profit was **HK$15.60 million**, a decrease of approximately **48.6%** from **HK$30.34 million** in the prior year[63](index=63&type=chunk) [Property Investment and Development](index=25&type=section&id=Property%20Investment%20and%20Development) The property segment performed strongly, with rental revenue increasing by 39.2% to HK$5.40 million due to 'The Henley' completion, and other residential projects progressing well for future growth - Rental income increased to **HK$5.40 million** (a **39.2%** year-on-year increase), primarily due to the completion of 'The Henley' in Wan Chai and the commencement of rental income generation[64](index=64&type=chunk) - The Group is advancing multiple property projects, including the completed 'The Henley' in Wan Chai, the Cheung Sha Wan project expected to be completed in Q2 2023, and the planned redevelopment of a luxury residential project on Boundary Street[66](index=66&type=chunk) [Mining Business](index=26&type=section&id=Mining%20Business) The mining business remains largely stagnant with minimal operations, focusing solely on exploration in the Yuanling mining area, generating no revenue or significant capital investment - The operations of Hong Zhuang Gold Mine are minimal, with the Group focusing on exploration work in the Yuanling mining area, and no production activities or revenue generated during the period[67](index=67&type=chunk) [Business Outlook](index=27&type=section&id=Business%20Outlook) The Group maintains a cautious outlook on global economic recovery, anticipating continued challenges for the Jewellery business, while cautiously optimistic about the property market's recovery driven by cross-border travel and efforts to enhance rental returns - The Group anticipates a moderate global economic recovery, but uncertainties such as the Russia-Ukraine conflict, high inflation, and the Sino-US trade war will continue to pressure the Jewellery business[69](index=69&type=chunk) - With the fading of the pandemic and the resumption of cross-border travel, the Hong Kong property market is expected to gradually recover, and the Group will continue to seek quality tenants for sustainable rental returns[69](index=69&type=chunk) [Liquidity, Financial Resources and Gearing](index=27&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Gearing) As of December 31, 2022, the Group's gearing ratio slightly increased to 29.68%, with cash and cash equivalents at HK$139 million and total bank loans of HK$1.04 billion, while the Board considers working capital ample Liquidity and Financial Resources | Indicator | As at December 31, 2022 | As at June 30, 2022 | | :--- | :--- | :--- | | Gearing Ratio | 0.2968 | 0.2903 | | Cash and Cash Equivalents (HK$'000) | 138,848 | 144,008 | | Bank Loans (HK$'000) | 1,040,952 | 1,027,421 | - The majority of the Group's bank loans are denominated in Hong Kong Dollars and US Dollars, with interest rates linked to HIBOR, Prime Rate, or US Prime Rate[74](index=74&type=chunk)[76](index=76&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) [Directors' and Shareholders' Interests](index=30&type=section&id=Directors%27%20and%20Shareholders%27%20Interests) The report details directors' and major shareholders' interests, with controlling shareholder Tamar Investments Group Limited holding 74.12% of issued share capital, and several directors holding interests via personal shares or share options - The controlling shareholder, Tamar Investments Group Limited, holds **506,339,522 shares**, representing **74.12%** of the company's issued share capital[83](index=83&type=chunk)[86](index=86&type=chunk) - Several directors hold relevant share interests granted under the share option scheme, with Mr. Chan Wai Lap, Ms. Chan Wai Ki, and Mr. Wong Kwan Ting each holding **3,000,000 shares** of relevant interests[83](index=83&type=chunk)[84](index=84&type=chunk) [Corporate Governance](index=32&type=section&id=Corporate%20Governance) The company largely complied with corporate governance codes, with two deviations: unsegregated Chairman and CEO roles, and no independent internal audit function, which the Board deems sufficient - Deviation from Code Provision C.2.1: The roles of Chairman (Mr. Chan Wai Lap) and Chief Executive Officer are not segregated, but the Board believes the current structure, with responsibilities shared by the Chairman and Managing Director (Ms. Cheng Siu Yin), ensures sufficient balance of power[87](index=87&type=chunk) - Deviation from Code Provision D.2.5: The company has not established an internal audit function, but the Board believes the existing organizational structure and close monitoring by management provide adequate internal controls, and the need for such a function will be reviewed annually[88](index=88&type=chunk)

Financial Performance - For the fiscal year ended June 30, 2022, the Group's consolidated revenue increased by approximately HK$67.6 million or 12.6% from HK$536.3 million to HK$603.9 million[20]. - Profit attributable to owners of the Company decreased to HK$12.1 million from HK$19.9 million in the previous year, primarily due to an increase in impairment loss on mining rights of HK$21.9 million and an exchange loss of HK$3.3 million[20]. - The basic earnings per share for the year was HK$1.78, down from HK$2.91 in 2021[20]. - The jewellery segment's revenue increased by approximately HK$65.8 million or 12.5% from HK$526.4 million to HK$592.2 million for the fiscal year[23]. - The jewellery segment's profit increased by approximately HK$1.4 million or 4% to HK$35.6 million compared to HK$34.2 million in the previous year[23]. - The significant decrease in subsidies received from various governments related to the COVID-19 pandemic impacted overall profitability[20]. Operational Developments - The Group's fully-integrated production plant in China employed around 336 staff as of June 30, 2022[14]. - The Group benefited from market consolidation post-COVID-19, strengthening relationships with customers and enhancing competitive advantages[23]. - The overseas sales team resumed travel to visit clients and actively participated in major exhibitions during the year[23]. - The Group's online sales demand continued to grow, leading to closer collaboration with customers for timely delivery and necessary technical support[23]. - The jewellery business maintained a positive performance, but faces uncertainties due to macroeconomic headwinds and potential new COVID-19 variants[33]. Property and Investments - Rental income revenue amounted to approximately HK$8.3 million, an increase of HK$2.8 million from HK$5.5 million in 2021, primarily due to the acquisition of properties in May 2021[29]. - The Group holds 75% interest in a newly developed commercial building named "One Continental," which has a gross floor area of approximately 86,970 sq. ft.[29]. - The Group acquired six properties in December 2021, with a site area of approximately 5,054 sq. ft. and a developable gross floor area of approximately 25,270 sq. ft.[31]. - The Group's investment properties are fully let, generating stable rental income despite the pandemic[31]. Financial Position - Cash and cash equivalents decreased to HK$144,008,000 as of June 30, 2022, down from HK$340,207,000 in 2021[43]. - Bank loans increased to HK$1,027,421,000 as of June 30, 2022, compared to HK$836,210,000 in 2021[43]. - The Group's gearing ratio as of 30 June 2022 was 0.2903, an increase from 0.1996 in 2021[43]. - The Group's total borrowings, including amounts due to joint ventures and related companies, were approximately HK$117,216,000 as of 30 June 2022[43]. Governance and Management - The Company has adopted the Corporate Governance Code provisions effective from January 1, 2022, applicable to the financial year commencing on that date[129]. - During the year ended June 30, 2022, the company complied with the Corporate Governance Code, with some deviations noted in specific provisions[130]. - The Board held four meetings during the financial year ended June 30, 2022, with individual attendance rates for directors documented[135]. - The Company has arranged Directors and Officers Liability Insurance for its Directors and Officers[139]. - The Board is required to have a balanced composition of Executive and Non-executive Directors to ensure independent judgment[145]. Share Options and Dividends - The proposed final dividend will be paid on or about January 13, 2023, subject to shareholder approval at the AGM on December 5, 2022[30]. - The Register of Members will be closed from December 9 to December 13, 2022, for determining entitlement to the proposed final dividend[30]. - All share transfer documents must be lodged by 4:30 p.m. on December 8, 2022, to qualify for the proposed final dividend[30]. - As of June 30, 2022, there were 12,200,000 share options valid and outstanding under the 2010 Share Option Scheme after share consolidation[60]. Risk Management - The company has confirmed no significant weaknesses in its risk management and internal control systems[200]. - The Board requires management to maintain effective risk management and internal control systems[200]. - The Audit Committee regularly reviews the effectiveness of the Group's internal control systems and risk management[200]. - The Board will review the need for an internal audit function on an annual basis[200].

Financial Performance - Revenue for the six months ended December 31, 2021, was HKD 335,607,000, an increase of 16.1% compared to HKD 289,241,000 in the same period of 2020[10] - Gross profit for the period was HKD 84,239,000, representing a gross margin of 25.1%, up from HKD 67,781,000 and a margin of 23.4% in the previous year[10] - Net profit attributable to shareholders was HKD 15,855,000, a decrease of 10.9% from HKD 17,805,000 in the prior year[12] - Total comprehensive income for the period was HKD 23,754,000, down from HKD 63,595,000 in the same period last year[13] - The earnings per share for the period was HKD 2.32, down from HKD 2.61 in the same period last year[16] - Basic earnings per share for the company were HKD 0.0232 in 2021, compared to HKD 0.0261 in 2020, a decrease of 11%[49] - The profit before tax for the group was HKD 15,855,000 in 2021, down from HKD 17,805,000 in 2020, indicating a decline of 11%[49] Cash Flow and Liquidity - The company's cash and cash equivalents at the end of the period were HKD 213,185,000, a decrease from HKD 423,523,000 at the beginning of the period[21] - The company reported a net cash outflow from operating activities of HKD 258,137,000, compared to an outflow of HKD 6,831,000 in the previous year[22] - Cash and cash equivalents decreased to HKD 213,185,000 from HKD 340,207,000 as of June 30, 2021, primarily due to property acquisitions and construction costs[106] Assets and Liabilities - The total assets less current liabilities amounted to HKD 2,818,655,000, slightly up from HKD 2,808,092,000 as of June 30, 2021[19] - The company’s total liabilities increased to HKD 1,078,893,000 from HKD 910,185,000 in the previous period[19] - As of December 31, 2021, total equity amounted to HKD 2,449,613,000, an increase from HKD 2,432,846,000 as of December 31, 2020, reflecting a growth of approximately 0.7%[24] - The company’s bank loans in HKD amounted to HKD 980,074,000 as of December 31, 2021, an increase from HKD 813,558,000 as of June 30, 2021[107] - The company provided guarantees for bank loans to its subsidiaries amounting to HKD 820,719,000 as of December 31, 2021, up from HKD 670,640,000 as of June 30, 2021[109] Investments and Acquisitions - The company completed the acquisition of six properties on Boundary Street for a total price of HKD 183,500,000 on December 22, 2021[111] - The company acquired a 15% stake in Novell Enterprises Inc. for USD 900,000 (approximately HKD 7,002,000) on October 29, 2021, making Novell a wholly-owned subsidiary[112] - The carrying amount of development properties rose significantly to HKD 590,758,000 as of December 31, 2021, compared to HKD 335,843,000 as of June 30, 2021, indicating an increase of about 76%[66] Revenue Segments - Revenue from the jewelry business increased to HKD 329,943,000 in 2021, up from HKD 284,401,000 in 2020, representing a growth of 16%[37] - Rental income rose to HKD 3,875,000 in 2021, compared to HKD 2,633,000 in 2020, marking an increase of 47%[37] - The jewelry segment's revenue rose by approximately HKD 45,542,000 or 16% to HKD 329,943,000, with a profit of HKD 30,344,000 compared to HKD 26,461,000 in the previous period[97] Corporate Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[26] - The auditor's report confirmed that there were no reservations or emphasis of matter, indicating a clean audit opinion[27] - The company complies with all applicable corporate governance codes, with some deviations noted regarding the roles of the chairman and CEO[131] Share Capital and Options - As of December 31, 2021, the total number of issued and fully paid ordinary shares remained unchanged at 683,118,258, with a total capital of 560,673 thousand HKD[79] - The company has not granted or exercised any share options during the six months ended December 31, 2021, maintaining a total of 12,200,000 unexercised share options with a weighted average exercise price of 1.67 HKD[84] - The company has not issued any stock options under the 2020 Share Option Scheme since its adoption[116] Future Outlook - The group expects the commercial property market to gradually recover, with rental markets stabilizing despite the impact of the fifth wave of COVID-19[102] - The group plans to redevelop a site at 65 Castle Peak Road into a 25-story residential project, with completion expected by the end of 2022[100] - The group anticipates that the economic recovery will support demand in the primary residential market due to strong demand for quality properties and a low-interest environment[102] Employment and Staff - As of December 31, 2021, the company employed approximately 540 staff, a decrease from 567 as of June 30, 2021[115]

Financial Performance - For the fiscal year ended June 30, 2021, the Group's consolidated revenue increased by approximately HK$116.0 million or 27.6% from HK$420.3 million to HK$536.3 million[19] - Profit attributable to owners of the Company was HK$19.9 million, a turnaround from a loss of HK$15.3 million in the previous year[19] - Basic earnings per share for the year was HK2.91 cents, compared to a basic loss per share of HK2.25 cents in the previous year[19] - The Group recognized a profit of approximately HK$77.7 million from the change in fair value of investment properties, partially offset by an impairment loss on mining rights of HK$59.9 million[19] - The Group's cost management measures and government subsidies related to COVID-19 contributed to improved financial performance[26] Jewellery Division Performance - The jewellery division's revenue increased by approximately HK$123.4 million or 30.6% to HK$526.4 million for the year ended June 30, 2021[26] - The Group successfully reversed a loss of approximately HK$20.6 million in the previous year to a profit of approximately HK$34.2 million in the jewellery division[26] - The jewellery segment's revenue increased by approximately HK$123.4 million or 30.6%, from HK$403.0 million to HK$526.4 million for the year ended June 30, 2021[27] - The jewellery segment turned around from a loss of approximately HK$20.6 million to a profit of approximately HK$34.2 million for the year ended June 30, 2021[27] Market and Sales Strategy - The Group enhanced collaboration with e-retailers to boost online sales and marketing, adapting to changing consumer behavior due to COVID-19[26] - The global economic recovery in 2021 led to positive growth in jewellery retail sales in the US and Europe[26] - The Group's market expansion efforts included leveraging online and digital solutions to reach customers effectively[26] - The Group's proactive adaptation to customer behavior included a pivot towards online sales and marketing, enhancing its presence on e-commerce platforms[27] Real Estate and Property Development - The redevelopment of the Wan Chai Road Property is expected to be completed by the end of 2021, with a gross floor area of approximately 86,970 sq. ft.[31] - The Cheung Wah Street Property redevelopment is progressing well, with an expected completion date in late 2022 and a proposed gross floor area of approximately 29,147 sq. ft.[33] - The Group's Glassview Commercial Building continues to generate stable income despite the pandemic, with all units fully let[33] - In May 2021, the Group acquired properties at Hart Avenue, Kowloon, with a gross floor area of approximately 5,100 sq. ft., which are fully let and generating stable rental income[33] Financial Position and Capital Management - As of June 30, 2021, the Group's gearing ratio was 0.1996, an increase from 0.1344 in 2020[47] - The Group's cash and cash equivalents decreased to HK$340,207,000 from HK$468,521,000 in 2020[48] - Other borrowings related to amounts due to joint ventures and related companies increased to approximately HK$114,188,000 from HK$84,347,000 in 2020[47] - Bank and other loans amounted to approximately HK$836,210,000, up from HK$751,663,000 in 2020[47] - The decrease in cash was primarily due to the acquisition of a property at Hart Avenue, Kowloon, and construction costs for projects at Cheung Wah Street and Wan Chai Road[48] Corporate Governance and Management - The Company has complied with the corporate governance code effective from April 1, 2012, with some deviations noted in specific clauses[120] - The board of directors believes that good corporate governance can maximize shareholder benefits[121] - The Company emphasizes the importance of Board diversity, considering factors such as gender, age, cultural background, and professional experience in its composition[155] - The Company has established a formal and transparent procedure for the appointment of new directors, enhancing governance practices[148] - The Company ensures that all Directors are provided with timely and adequate information to make informed decisions[171] Audit and Risk Management - The Audit Committee is responsible for monitoring the financial reporting system, risk management, and internal control systems, as well as reviewing annual reports and financial statements[198] - The Audit Committee ensures fair and independent investigations of reported concerns[199] - The Board confirmed that there was no significant weakness in the risk management and internal control systems, and areas for improvement have been identified with appropriate measures taken[192] - Arrangements are in place for employees to raise concerns about financial reporting improprieties[199] Employee and Community Engagement - The Group employs approximately 567 employees, with the majority located in China, and has adopted share option schemes to attract and retain qualified personnel[56] - The Group is actively involved in community services and has leadership roles in various associations, enhancing its corporate social responsibility profile[102] - The Group's involvement in various community and charitable organizations demonstrates its commitment to social impact and community engagement[102]

Financial Performance - The company reported revenue of HKD 289,241,000 for the six months ended December 31, 2020, compared to HKD 286,211,000 in the same period of 2019, representing a slight increase of 1%[10] - Gross profit decreased to HKD 67,781,000 from HKD 77,437,000 year-on-year, indicating a decline of approximately 12.6%[10] - The net profit for the period was HKD 19,238,000, significantly up from HKD 5,911,000 in the previous year, marking an increase of 225%[10] - The total comprehensive income for the period was HKD 63,595,000, compared to HKD 4,185,000 in the same period last year, reflecting a substantial improvement[10] - The company's profit before tax for 2020 was HKD 221,460,000, an increase from HKD 208,774,000 in 2019, representing a growth of approximately 6.5%[39] - The basic earnings per share for 2020 was HKD 2.61, up from HKD 0.99 in 2019, indicating a significant increase of approximately 164.6%[46] - The company's net profit attributable to shareholders was HKD 17,805,000 for the six months ended December 31, 2020, compared to HKD 6,788,000 in the same period of 2019, reflecting an increase of approximately 162.5%[47] - Basic earnings per share for the six months ended December 31, 2020, were HKD 0.26, compared to HKD 0.1 in the previous year[83] Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 423,523,000 from HKD 547,336,000 year-on-year, a decline of approximately 22.6%[21] - The total assets less current liabilities increased to HKD 2,625,593,000 from HKD 2,549,860,000, showing a growth of about 3%[17] - The company’s equity attributable to owners rose to HKD 2,241,745,000 from HKD 2,179,583,000, an increase of approximately 2.8%[19] - The company incurred a net cash outflow from operating activities of HKD 6,831,000, an improvement from HKD 9,911,000 in the previous year[21] - Investment activities resulted in a net cash outflow of HKD 91,846,000, compared to HKD 51,594,000 in the same period last year, indicating increased investment efforts[21] Revenue Sources - Revenue from sales of goods generated from contracts with customers was HKD 284,401 thousand, compared to HKD 276,099 thousand in the previous year, reflecting an increase of 4.7%[36] - Rental income for the period was HKD 2,633 thousand, up from HKD 2,447 thousand in the previous year, representing an increase of 7.6%[36] - Interest income decreased to HKD 1,854 thousand from HKD 5,395 thousand, a decline of 65.5%[36] - Dividend income from investments was HKD 353 thousand, down from HKD 2,270 thousand, indicating a decrease of 84.5%[36] - Total revenue for the period was HKD 289,241 thousand, slightly up from HKD 286,211 thousand in the previous year, showing a marginal increase of 1.1%[36] Investments and Development - The company operates in four main segments: jewelry design, manufacturing, and sales; property investment and development; mining; and investment[36] - The company entered into a sale agreement for a property in Guangzhou, China, for a consideration of approximately HKD 3,934,000, expected to complete by early March 2021[80] - The company signed a temporary sale agreement to acquire a company for HKD 65,000,000, with the main asset being a property in Kowloon, expected to complete by May 31, 2021[81] - The group holds a 75% interest in a site located at 232 Wan Chai Road, Hong Kong, which is being redeveloped into a 28-story premium office and retail complex with a total floor area of approximately 86,908 square feet, expected to be completed in 2021[85] - The group owns a 90% interest in a site at 7, 7A, 9, and 9A Cheung Wah Street, Cheung Sha Wan, with plans to redevelop it into a 25-story residential development with a total floor area of approximately 29,110 square feet, expected to be completed by Q3 2022[85] Financial Management and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and the relevant disclosure requirements of the Hong Kong Stock Exchange[26] - The auditor's report on the financial statements did not contain any reservations or emphasis of matter[27] - The company has adopted new and revised accounting standards that did not have a significant impact on the financial statements for the reporting period[31] - The company has adopted a conservative strategy for financial risk management, maintaining market risk at a minimum level[104] - The company has complied with all applicable corporate governance codes during the six months ending December 31, 2020, with some deviations noted[116] Shareholder Information - The issued and fully paid ordinary shares remained unchanged at 6,831,182,580 shares, with a total capital of HKD 560,673,000 as of December 31, 2020[67] - The company’s major shareholders include Mr. Chen with a personal interest of 2,700,000 shares, representing 0.48% of the issued share capital[109] - The company’s board members hold significant interests, with Dr. Chen and Ms. Zheng each holding 74.12% of the company’s shares[109] - The company has a total of 5,063,395,220 shares held by major shareholders, indicating a concentrated ownership structure[114] Internal Controls and Audit - The company has not established an internal audit function as of December 31, 2020, but believes that the current organizational structure and management oversight provide sufficient internal control and risk management[121] - The audit committee, composed of four independent non-executive directors, has discussed the accounting policies and financial controls of the group and approved the unaudited consolidated interim financial statements for the six months ended December 31, 2020[125]

Financial Performance - For the fiscal year ended June 30, 2020, the Group's consolidated revenue decreased by approximately HK$20.7 million or 4.7% from HK$441.0 million to HK$420.3 million[16] - The loss attributable to owners of the Company was HK$15.3 million, compared to a profit of HK$43.7 million in the previous year[16] - The decrease in revenue and gross profit was approximately HK$20.7 million and HK$17.0 million respectively[16] - A loss of approximately HK$5.3 million was recognized due to changes in the fair value of investment properties, compared to a gain of approximately HK$37.4 million in the previous fiscal year[16] - The basic loss per share was HK$0.22, compared to basic earnings per share of HK$0.64 in 2019[16] - The Group's revenue from trading fine jewellery decreased by approximately HK$16.2 million or 3.9% from HK$419.2 million to HK$403.0 million for the year ended June 30, 2020[22] - The jewellery segment recorded a loss of approximately HK$20.6 million, down from a profit of approximately HK$5.2 million in the previous year[22] Strategic Initiatives - The Group has enhanced its digital marketing and ecommerce platform to further penetrate the online shopping market, which is one of the fastest-growing channels during the pandemic[22] - The Group plans to strategically strengthen its market position in the UK and USA to benefit from market transformation and increased regional demand[27] - The newly acquired US jewellery companies are expected to enhance the Group's market share in the online retail segment, particularly through efficient drop shipping services[27] - The Group anticipates increased contributions from existing commercial and residential redevelopment projects in the near future, reflecting management's optimism about future growth and potential returns[29] Project Developments - The Group holds 75% interest in a land parcel at No. 232 Wan Chai Road, Hong Kong, which is being redeveloped into a premium grade office and retail composite building with a gross floor area of approximately 86,908 sq. ft[25] - The foundation work for the Wan Chai project was completed in September 2019, and the superstructure work commenced in October 2019, with expected completion in 2021[25] - The Group also owns 90% interests in sites at Nos. 7, 7A, 9, and 9A Cheung Wah Street, with plans to redevelop into a 25-storey residential development with a proposed gross floor area of approximately 29,110 sq. ft[25] - The demolition of the existing building at Cheung Wah Street was completed in July 2019, and foundation works commenced in September 2019, with expected completion around the third quarter of 2022[25] Financial Management - The Group has implemented stringent cost control measures across all offices due to market uncertainties and unprecedented impacts[25] - As of June 30, 2020, the Group's gearing ratio was 0.1344, an increase from 0.0692 in 2019[35] - The cash and cash equivalents decreased to HK$468,521,000 as of June 30, 2020, down from HK$621,380,000 in 2019, primarily due to cash outflows from operating activities, acquisitions, and loan repayments[35] - The Group's bank loans denominated in HK$ amounted to HK$719,289,000 as of June 30, 2020, compared to HK$743,575,000 in 2019[40] - The Group's total borrowings included approximately HK$751,663,000 in bank loans denominated in HK$ and US$ as of June 30, 2020[35] - The Group's financial management strategy includes the use of foreign exchange forward contracts to minimize exchange rate risk[39] Corporate Governance - The company is committed to maintaining high standards of corporate governance practices to maximize shareholder benefits[83] - The Board comprises five Executive Directors, one Non-executive Director, and four Independent Non-executive Directors as of June 30, 2020[106] - The Company has established a Nomination Committee responsible for formulating nomination policy and making recommendations to the Board on the nomination and appointment of Directors[116] - The Company has adopted a Board Diversity Policy to ensure a balance of skills, experience, and diversity among Board members, considering factors such as gender, age, and professional experience[183] - The Company has established various communication channels with shareholders to encourage their participation and feedback[181] Management and Leadership - The Group's Executive Director, Dr. Chan Sing Chuk, has over 60 years of experience in the jewellery industry and is responsible for strategic planning and corporate development[65] - Ms. Cheng Siu Yin, the Managing Director and Co-Founder, has over 45 years of experience in the jewellery industry, focusing on daily operations and financial management[65] - The Group's leadership is focused on long-term sustainability and innovation within the jewellery sector[65] - The Group's management team is committed to enhancing sales and marketing strategies to drive growth[65] Employee and Shareholder Engagement - The Group employs approximately 623 employees, primarily located in the PRC, and has granted 12,000,000 share options to certain employees during the year[47] - A total of 132,000,000 share options have been granted since the adoption of the share option scheme, representing 2.65% of the shares in issue as of June 30, 2020[47] - The Company plans to propose a new share option scheme at the upcoming annual general meeting, as the previous scheme expired on July 12, 2020[49] - The Company expresses gratitude to shareholders, customers, and business partners for their support and trust during challenging times[59] Risk Management - The management does not anticipate the need to change the capital structure given the current financial position[41] - The ongoing COVID-19 pandemic may adversely impact the Group's future financial performance, despite some effects already being reflected in the results for the year ended June 30, 2020[45] - The Group's management is cautious about the ongoing impact of the COVID-19 pandemic, expecting a prolonged economic slowdown and a challenging market recovery[27]