Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 44,578,000, a decrease of 34.8% compared to HKD 68,380,000 in the same period of 2021[9]. - Gross profit for the period was HKD 2,595,000, representing a gross margin of 5.8%[9]. - Operating loss for the six months was HKD 10,711,000, compared to an operating loss of HKD 2,666,000 in the prior year, indicating a significant increase in losses[9]. - The net loss attributable to the owners of the company for the period was HKD 11,622,000, compared to HKD 10,457,000 in the same period last year[12]. - The company reported a total comprehensive loss of HKD 11,752,000 for the six months ended June 30, 2022, compared to a total comprehensive loss of HKD 6,379,000 for the same period in 2021[17]. - The company reported a pre-tax loss of HKD 11,522 thousand for the six months ended June 30, 2022, compared to a loss of HKD 10,457 thousand in the previous year[31]. - The loss attributable to the company's owners increased by approximately 10.5% from about HKD 10.5 million in the previous period to about HKD 11.6 million in the current period[60]. - The company reported a basic and diluted loss per share of HKD 0.7 for the period, compared to HKD 1.0 in the previous year[9]. Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2022, was HKD 43,297 thousand, a decrease of 36.7% from HKD 68,326 thousand in the same period of 2021[27]. - Telecommunications service revenue was HKD 43,297 thousand, down 36.7% from HKD 68,326 thousand year-on-year[31]. - Revenue from the telecommunications business fell by approximately 36.6% from about HKD 68,300,000 to about HKD 43,300,000, primarily due to a cautious pricing strategy and loss of several large contracts[75]. - The Hong Kong IT business generated revenue of approximately HKD 600,000, compared to about HKD 54,000 in the previous period, indicating growth since its launch[65]. Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 18,206,000 from HKD 30,663,000, reflecting a cash outflow during the period[15]. - Cash and cash equivalents decreased by HKD 12,398,000 during the six months ended June 30, 2022, compared to an increase of HKD 33,494,000 in the same period of 2021[20]. - The net cash used in operating activities was HKD 11,365,000 for the six months ended June 30, 2022, an improvement from HKD 19,493,000 in the prior year, reflecting a reduction of approximately 41.5%[20]. - The company had cash and cash equivalents of HKD 18,206,000 as of June 30, 2022, down from HKD 66,697,000 at the beginning of the year[20]. - Total assets as of June 30, 2022, were HKD 90,738,000, a slight decrease from HKD 95,409,000 as of December 31, 2021[15]. - Non-current assets in Hong Kong amounted to HKD 53,441 thousand as of June 30, 2022, slightly down from HKD 53,500 thousand at the end of 2021[33]. Liabilities and Equity - Current liabilities increased to HKD 29,872,000 from HKD 28,297,000, indicating a rise in short-term financial obligations[15]. - The company’s total equity attributable to owners decreased to HKD 54,962,000 as of June 30, 2022, from HKD 66,548,000 at the beginning of the year[17]. - The debt-to-asset ratio increased to approximately 10.4% from about 8.6% due to operating losses reducing net assets[81]. - Trade payables increased to HKD 8,457,000 as of June 30, 2022, compared to HKD 8,327,000 as of December 31, 2021[49]. Operational Challenges and Future Outlook - Future outlook remains cautious due to ongoing market challenges and operational losses[8]. - The company faced challenges due to the ongoing COVID-19 pandemic and geopolitical tensions, impacting operations primarily in Singapore and Hong Kong[57]. - The company plans to streamline operations by divesting underperforming business segments, particularly in the Chinese IT and distribution sector, which has not generated revenue since 2020[63]. - The company remains cautiously optimistic about overcoming challenges posed by COVID-19, as both Singapore and Hong Kong are gradually easing social restrictions[69]. Corporate Governance and Shareholder Information - The board of directors is committed to maintaining high standards of corporate governance, with a focus on shareholder value[104]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, and 2021[40]. - As of June 30, 2022, the total trade payables amounted to HKD 8,457,000, compared to HKD 8,327,000 as of December 31, 2021, reflecting a slight increase of 1.56%[50]. - Beta Dynamic Limited owns over 50% of the company's issued share capital, qualifying it as the company's holding entity[90].

Financial Performance - The company's revenue increased by approximately 43.0% from HKD 72,376,000 in 2020 to HKD 103,513,000 in 2021[5] - The net loss for the year was HKD 21,973,000, compared to a profit of HKD 16,884,000 in the previous year[5] - The company's net asset value rose significantly from HKD 21,497,000 in 2020 to HKD 66,548,000 in 2021[5] - Cash and bank balances decreased from HKD 33,238,000 in 2020 to HKD 30,663,000 in 2021[5] - The group's revenue increased by approximately 43.0% from about HKD 72,400,000 last year to about HKD 103,500,000 this year[30] - Revenue from the telecommunications business rose by approximately 41.0% to about HKD 102,100,000, primarily due to greater contributions from wholesale voice telecommunications[30] - The group's gross profit decreased by approximately 17.2% to about HKD 4,800,000, with a gross profit margin dropping from about 7.9% to about 4.7%[30] - Other income and losses fell by approximately 65.2% to about HKD 14,500,000, mainly due to the absence of certain income recorded last year[31] - The group reported a loss attributable to owners of the company of about HKD 22,000,000, compared to a profit of about HKD 16,900,000 last year[33] - The group's net asset value increased to about HKD 66,500,000 from about HKD 21,500,000 last year, primarily due to funds raised from rights issues[35] - Total capital expenditure for the year was approximately HKD 24,000, compared to about HKD 200,000 last year[36] - The group's bank balances and cash decreased slightly to about HKD 30,700,000 from about HKD 33,200,000 last year[38] - The debt-to-asset ratio improved to approximately 8.6% from about 73.1% last year, mainly due to the increase in net assets from rights issues[39] Business Strategy and Development - The company completed the sale of its underperforming travel business during the year[12] - The company is actively seeking opportunities in the Technology, Media, and Telecommunications (TMT) sectors to enhance service offerings[12] - The company acquired a property holding company to generate stable rental income and benefit from long-term capital appreciation[12] - The company aims to diversify its business and seek new investment opportunities in e-commerce and TMT sectors[12] - The group expects to maintain telecommunications business development by leveraging existing infrastructure and operational resources, while regularly adjusting business strategies to seize new development opportunities[25] - The group anticipates challenges in business development due to COVID-19 restrictions affecting sales personnel and potential business partners[25] - The group aims to enhance its market share in Hong Kong by providing higher quality services than competitors[26] - The group will continue to streamline business processes and strictly control costs in response to uncertainties brought by the COVID-19 pandemic[25] Corporate Governance - Zhang Shaohui was appointed as the executive director and chairman on March 2, 2021, and has extensive experience in investment banking, previously holding senior positions at Merrill Lynch and Citigroup[46] - Xu Zhenwei joined as an executive director on March 2, 2021, with a background in structured investments and derivatives, having served as a managing director at BNP Paribas[47] - The company emphasizes high standards of corporate governance, with the chairman and CEO roles currently held by Zhang Shaohui until a suitable candidate is found[53] - The board is committed to reviewing the current management structure to ensure the separation of the chairman and CEO roles in the future[53] - The company has not reported any non-compliance with the Listing Rules regarding corporate governance codes during the year[53] - The board believes that having Zhang Shaohui serve as both chairman and acting CEO provides strong leadership and efficiency in decision-making[53] - The company has a focus on enhancing shareholder value and maintaining accountability to its shareholders[53] - The independent non-executive directors bring over 17 years of experience in audit and business consulting, contributing to the company's governance[49] - The company is actively seeking to appoint a qualified candidate for the CEO position to ensure effective leadership[53] - The board will continue to assess the management structure to align with the best interests of the company and its shareholders[53] - The board of directors consists of two executive directors and three independent non-executive directors, with a total of 17 board meetings held during the year[63] - Executive directors have service contracts with a specific term of three years, subject to re-election at the annual general meeting[58] - Independent non-executive directors are required to attend shareholder meetings to understand shareholder opinions comprehensively[55] - The company has adopted a board diversity policy to ensure a balanced mix of skills, expertise, and perspectives among board members[60] - The nomination committee reviews the board's structure and diversity policy annually to assess its effectiveness and propose necessary changes[61] - All directors confirmed compliance with the standard code of conduct for securities trading during the year ended December 31, 2021[56] - The company has a policy that at least one-third of the directors must retire by rotation at the annual general meeting[59] - The attendance record for board meetings shows that the chairman attended 16 out of 17 meetings, while other directors had varying attendance rates[65] - The company emphasizes the importance of gender balance in the board composition as part of its diversity goals[60] - The board is responsible for setting the overall strategy and monitoring the group's operational and financial performance[66] - The company appointed new directors and provided them with immediate onboarding training to ensure they understand the business and regulatory responsibilities[68] - The Audit Committee, composed entirely of independent non-executive directors, held two meetings during the year to review the financial performance and internal controls[76] - The Remuneration Committee held three meetings to determine the remuneration framework and budget for directors and senior management for the year ending December 31, 2022[79] - The company encourages directors to participate in external training, with costs covered by the company, ensuring continuous professional development[68] - The company has established three permanent committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with specific responsibilities[74] - The Remuneration Committee provided recommendations on the remuneration of newly appointed directors to the Board[79] - The company maintains a high level of compliance with financial reporting regulations through the participation of independent non-executive directors[71] - The company’s governance practices include regular training and development for all directors to enhance their skills and knowledge[68] - The Nomination Committee was established on December 9, 2011, primarily composed of independent non-executive directors, with a focus on evaluating and recruiting new board members[83] - The Nomination Committee held three meetings this year to review the board's structure, size, and composition, and to assess the independence of non-executive directors[83] - The attendance record for the Nomination Committee meetings shows that all members attended their respective meetings, with Zhang Shaohui attending 2 out of 2 meetings[85] Risk Management and Internal Controls - The internal control mechanism aims to provide reasonable assurance regarding the reliability of financial reporting and compliance with applicable laws and regulations[107] - The company has not identified any significant risks based on the risk assessment conducted during the year[106] - The internal control consultant submitted a report on the effectiveness of the internal control and risk management mechanisms to the audit committee and the board in March 2022[111] - The company has established a mechanism for handling insider information to ensure the accuracy and timeliness of disclosures[110] - The board is responsible for maintaining the internal control mechanisms and reviewing their effectiveness[106] - The company has not established an internal audit function but relies on an internal control consultant for assessments[111] - The internal control mechanism includes risk identification, assessment, management, monitoring environment, and communication[108] - The company has a policy in place to prevent violations of disclosure regulations related to insider information[110] - The board believes that the risk management and internal control mechanisms of the group are effectively executed and sufficient, with ongoing reviews to adapt to changing business environments[112] Environmental, Social, and Governance (ESG) Initiatives - The group has successfully implemented all applicable mandatory measures for the Hong Kong Green Organization Certification and reported related achievements[123] - The ESG report includes quantitative data and key performance indicators (KPIs) that provide a balanced overview of the group's overall ESG performance[123] - The group focuses on improving data collection systems and expanding disclosure scope, particularly regarding greenhouse gas emissions and climate change awareness[122] - The board aims to integrate ESG considerations into business decision-making processes and regularly review progress towards ESG-related goals[117] - The group has been recognized for reducing waste in its operations, receiving the "Waste Reduction Certificate - Excellence Level" for seven consecutive years[121] - The ESG report covers the group's main operating companies in Hong Kong and Singapore, emphasizing their overall performance in environmental and social aspects[115] - The board is responsible for overseeing ESG matters, including assessing and determining significant ESG-related issues and risks[116] - The group encourages cross-departmental collaboration to address sustainability issues and create long-term value for stakeholders[118] - Stakeholders are invited to provide feedback on the ESG policies and performance to help improve the group's ESG outcomes[124] - The company reported a total greenhouse gas emissions of 17.18 tons CO2 equivalent for the year, an increase of 5.7% compared to 16.26 tons in the previous year[130] - The electricity consumption-related indirect emissions (Scope 2) rose by 11.9% to 15.68 tons from 14.01 tons[133] - The company generated no hazardous waste during the year, maintaining a consistent record of 0 kg for both the current and previous year[136] - The company aims to keep greenhouse gas emissions at levels similar to those of the current year in 2022[142] - The company has implemented various energy-saving measures to reduce electricity consumption, which is the primary source of its emissions[141] - The density of greenhouse gas emissions per employee increased to 0.75 tons from 0.68 tons in the previous year[130] - The company has set a goal to maintain the generation of non-hazardous waste at the lowest possible level in future years[139] - The company actively encourages the use of electronic documents to reduce paper usage[130] - The company has established effective communication channels with stakeholders to address their concerns and expectations[125] - The company has received no significant non-compliance issues regarding emissions and environmental regulations during the year[128] - The group's energy consumption in 2021 was 22,083 kWh, an increase from 17,291 kWh in 2020, with a density of 74.28 kWh per square meter[150] - The energy consumption per employee rose to 960.13 kWh in 2021 from 720.46 kWh in 2020, attributed to the gradual return to normal office operations in Hong Kong[150] - The group aims to maintain energy consumption at a level similar to 2021 in 2022, focusing on reducing electricity usage through various measures[153] - The group has implemented several energy efficiency measures, including encouraging employees to turn off lights and equipment when not in use[157] - The group has not encountered any issues in obtaining suitable water sources during the year[155] - The group has not used significant amounts of packaging materials due to the nature of its business[156] - The group has complied with all relevant environmental regulations in Hong Kong and Singapore, with no significant non-compliance issues reported[158] Human Resources and Employment Practices - The group has established a fair recruitment and promotion policy, ensuring compliance with equal employment opportunity laws[165] - The group provides competitive salaries and benefits, including medical and dental allowances, maternity leave, and training support[165] - There were no non-compliance cases related to employment laws and regulations during the year[167] - The total number of employees as of December 31, 2021, was 23, a decrease from 24 in 2020, with 100% being full-time employees[169] - The employee turnover rate for the year was 73.9%, up from 62.5% in 2020, with 17 employees leaving the company[174] - The percentage of trained employees was 30.8% for males and 10.0% for females, with a total training hours of 115.8 hours for the year[183] - The company provided various health and safety measures during the COVID-19 pandemic, including masks and hand sanitizers for all employees[182] - The company strictly adheres to labor laws and regulations, ensuring all employees are protected under relevant employment acts in Hong Kong and Singapore[184] - The company has not reported any significant non-compliance issues related to labor rights and laws during the year[187] - The company has implemented a series of internal policies to safeguard employee rights and welfare[184] - The employee turnover rate by age group showed a 125% turnover for ages 26-35 and 120% for ages 36-45[175] - The company has a focus on maintaining a safe working environment, with no reported major safety hazards during the year[178] - The company encourages continuous professional development, offering reimbursement for external training courses to enhance employee skills[181] Supplier and Data Management - The number of suppliers listed by region for the year 2021 is as follows: Singapore 56, Hong Kong 13, Malaysia 2, Thailand 2, Bulgaria 1, Myanmar 1, New Zealand 1, Switzerland 1, totaling 77 suppliers[189] - The company emphasizes good communication and efficient cooperation with suppliers to enhance trust and improve the ability to obtain environmentally friendly products[190] - The company has not identified any significant environmental or social risks posed by its suppliers and is committed to providing quality services while complying with relevant laws and regulations[190] - There were no major intellectual property issues discovered during the year, and the company is taking necessary actions to comply with all relevant regulations[192] - The company has implemented strict data protection measures, including software for data protection and restricted access to databases to prevent unauthorized access to customer data[195] - A total of 381 and 366 complaints were handled and resolved during the year, with remaining complaints still under processing at year-end[197] - The company has established a comprehensive internal control system and strict anti-corruption policies to prevent and monitor any misconduct or unethical behavior[198] - The company has complied with the Personal Data (Privacy) Ordinance in Hong Kong and has not discovered any incidents of customer personal data theft, alteration, damage, or leakage during the year[196] - The company is committed to hiring suppliers that focus on reducing carbon emissions in their operations[191] - The company has implemented measures to prevent corruption and enhance employee awareness regarding anti-corruption policies[200]

中期報告 2021 Great Wall Terroir Holdings Limited 長城天下控股有限公司 （股份代號：���） （於百慕達註冊成立之有限公司） （前稱Great Wall Belt & Road Holdings Limited 長城一帶一路控股有限公司） Interim Report 2021 Great Wall Terroir Holdings Limited 目錄 | 公司資料 | 2 | | --- | --- | | 簡明綜合損益表 | 3 | | 簡明綜合損益及其他全面收益表 | 4 | | 簡明綜合財務狀況表 | 5 | | 簡明綜合權益變動表 | 6 | | 簡明綜合現金流量表 | 7 | | 簡明綜合財務報表附註 | 8 | | 業務回顧及前景 | 23 | | 財務回顧 | 26 | | 附加資料 | 29 | 01 長城天下控股有限公司 二零二一年中期報告 目錄 公司資料 董事會 執行董事 張少輝 （主席兼代理行政總裁） （自二零二一年三月二日起獲委任為 主席兼代理行政總裁） 許振威 （自二零二一年三月二日起獲委任） 長城天下控股有限公司 (Stock Code ...

Great Wall Belt & Road Holdings Limited 長城一帶一路控股有限公司 (於百慕達註冊成立之有限公司) (股份代號：524) 2020 年 報 年 報 2020 長城一帶一路控股有限公司 Great Wall Belt & Road Holdings Limited 長城一帶一路控股有限公司 香港銅鑼灣 告士打道262號 中糧大廈 16樓1602室 電話： +852 2522 3800 傳真： +852 2111 2665 網址： www.gwbrhk.com 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 3 | | 主席報告書 | 4 | | 業務回顧 | 5 | | 財務回顧 | 7 | | 董事會 | 10 | | 企業管治報告 | 12 | | 董事會報告書 | 23 | | 獨立核數師報告書 | 32 | | 綜合損益表 | 36 | | 綜合損益及其他全面收益表 | 38 | | 綜合財務狀況表 | 39 | | 綜合權益變動表 | 41 | | 綜合現金流量表 | 42 | | 綜合財務報表附註 | 44 | | 本集團業績、資產 ...

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 40,439,000, an increase of 14.1% compared to HKD 35,304,000 for the same period in 2019[8] - Gross profit decreased to HKD 3,128,000, down 66.0% from HKD 9,194,000 in the previous year[8] - Operating profit for the period was HKD 29,033,000, a significant recovery from an operating loss of HKD 18,306,000 in 2019[8] - Profit before tax was HKD 27,959,000, compared to a loss of HKD 136,296,000 in the same period last year[8] - Net profit for the period was HKD 28,059,000, a turnaround from a loss of HKD 135,420,000 in 2019[11] - Basic and diluted earnings per share for the period were HKD 2.7, compared to a loss of HKD 12.9 per share in the previous year[8] - Total comprehensive income for the period was HKD 27,016,000, compared to a loss of HKD 134,875,000 in 2019[11] - The company reported a net loss of HKD 135,128,000 for the six months ended June 30, 2020, compared to a loss of HKD 135,420,000 for the same period in 2019[22] - Total comprehensive income for the period was HKD 26,932,000, a decrease from HKD 27,016,000 in the previous year[22] - The company reported a basic earnings profit of approximately HKD 28,031,000 for the six months ended June 30, 2020, compared to a loss of approximately HKD 135,128,000 for the same period in 2019[54] - The group recorded an attributable comprehensive profit of approximately HKD 28,000,000 for the period, compared to a loss of about HKD 135,100,000 in the previous period[101] Assets and Liabilities - Current assets as of June 30, 2020, totaled HKD 72,554,000, compared to HKD 21,846,000 at the end of 2019[14] - Total equity increased to HKD 28,915,000 from HKD 1,899,000 at the end of 2019[14] - Non-current assets as of June 30, 2020, totaled HKD 109,000, a decrease from HKD 202,000 as of December 31, 2019[45] - The company’s total reserves decreased to HKD (340,229,000) as of June 30, 2020, from HKD (368,260,000) at the beginning of the year[22] - The company’s cash flow from operating activities was significantly impacted by the ongoing economic conditions, reflecting a challenging business environment[22] - The group’s assets classified as held for sale amounted to HKD 55,184,000 as of June 30, 2020[38] - The group’s liabilities classified as held for sale were HKD 183,000, with total liabilities amounting to HKD 46,066,000[38] Cash Flow and Financing - Cash and cash equivalents decreased by HKD 2,350,000, ending at HKD 4,344,000 as of June 30, 2020, compared to HKD 11,678,000 at the beginning of the period[22] - The company incurred a net cash outflow of HKD 1,407,000 from operating activities, compared to HKD 888,000 in the prior year[22] - The company reported a net cash inflow of HKD 2,000 from investment activities, down from HKD 359,000 in the previous year[22] - The company’s financing activities resulted in a net cash outflow of HKD 945,000, compared to HKD 1,726,000 in the same period last year[22] Revenue Segments - The financial payment processing segment generated revenue of HKD 40,439,000, while the property development and telecommunications services segments reported no revenue during the same period[31] - The group reported a significant increase in revenue from Singapore, rising to HKD 38,971,000 in 2020 from HKD 10,500,000 in 2019[45] - Telecommunications business revenue was approximately HKD 40,400,000, a growth of 29.9% from HKD 31,100,000 in the previous period[93] - The increase in telecommunications revenue was primarily driven by the wholesale voice telecommunications segment[93] - The group’s overseas tax provision for the six months ended June 30, 2020, was HKD 100,000, compared to a tax provision of HKD (844,000) in the same period of 2019[51] Operational Efficiency - The company reported a significant reduction in operating expenses, with administrative expenses decreasing to HKD 11,630,000 from HKD 17,978,000 in the previous year[8] - Operating expenses totaled approximately HKD 12,500,000, a decrease of about 56.6% compared to the previous year, primarily due to cost structure streamlining[99] - The operating profit for the period was approximately HKD 29,000,000, compared to a loss of about HKD 18,300,000 in the same period last year, mainly due to the settlement of outstanding consideration related to the acquisition of Diamond Frontier Investments Limited[99] Shareholder Information - The major shareholder, Zhao Ruiyong, holds 222,820,000 shares, representing 21.22% of the company's equity[113] - The total number of shares held by major shareholders includes 222,820,000 shares held by Hong Kong Great Wall, representing 21.22%[119] - The company has a stock option plan valid for 10 years, allowing for the grant of up to 105,028,000 options, representing 10% of the issued shares at the time of adoption[123] - As of June 30, 2020, there were no stock options granted or agreed to be granted under the stock option plan[124] Legal and Compliance - The company has initiated legal proceedings against a former director for the forced transfer of remaining shares due to prolonged delays in settlement, with a remaining receivable balance of approximately HKD 12,393,000[67] - The company is preparing and exchanging relevant legal documents regarding claims against the former director as of the date of the interim report[67] - The company has maintained compliance with the corporate governance code and has confirmed adherence to the required standards for securities trading by directors[125][127] Future Outlook - The group anticipates continued challenges and uncertainties in the business environment for the second half of 2020 due to COVID-19 impacts[94] - The group will continue to seek opportunities in emerging technologies, information technology, and 5G technology sectors to enhance business performance and achieve sustainable growth[97] - The company plans to continue seeking opportunities in the telecommunications, media, and technology (TMT) sectors[93]

Financial Performance - The company's revenue for 2019 was approximately HKD 79,210,000, representing a 16.6% increase from HKD 67,920,000 in 2018[6]. - The net loss for the year was HKD 225,172,000, a significant increase from the previous year's loss of HKD 16,148,000[6]. - The gross profit for 2019 was HKD 13,491,000, down 56.2% from HKD 30,794,000 in 2018, indicating a significant decline in profitability[165]. - Operating loss for the year was HKD 40,813,000, slightly improved from a loss of HKD 46,754,000 in 2018[165]. - The net loss attributable to equity holders of the company was HKD 219,027,000, compared to a loss of HKD 11,727,000 in the previous year, reflecting a substantial increase in losses[166]. - Total comprehensive loss for the year amounted to HKD 226,846,000, compared to HKD 25,142,000 in 2018, highlighting a worsening financial position[168]. - The total comprehensive loss for the year was HKD 220,713,000, compared to a loss of HKD 20,535,000 in the previous year, indicating a significant increase in losses[178]. Asset and Liability Management - The company's net asset value decreased to HKD 1,899,000 from HKD 228,745,000 in 2018[6]. - Current liabilities exceeded current assets by approximately HKD 56,766,000 as of December 31, 2019[101]. - The company's equity attributable to owners decreased from HKD 225,728,000 in 2018 to HKD 5,015,000 in 2019, a decline of about 97.8%[173]. - The total liabilities exceeded total assets, resulting in a negative net asset value of HKD (56,766,000) in 2019[170]. - The group reported a net unrealized fair value loss of approximately HKD 54,500,000 and a net loss on sale and fair value changes of approximately HKD 60,600,000 for FVPL financial assets in 2019, contrasting with a net unrealized gain of approximately HKD 54,400,000 in 2018[41]. Cash Flow and Liquidity - The net cash used in operating activities for the year ended December 31, 2019, was HKD (8,104) thousand, a significant improvement from HKD (42,848) thousand in 2018, representing a reduction of approximately 81%[180]. - The net cash generated from investment activities was HKD 962 thousand in 2019, compared to a cash outflow of HKD (63,251) thousand in 2018, indicating a turnaround in investment cash flow[180]. - The group has entered into a loan agreement totaling HKD 41,700,000 to alleviate liquidity and financial pressure, with an outstanding amount of approximately HKD 2,840,000 as of December 31, 2019[199]. - The group plans to raise funds through a share placement and is in discussions with potential investors[196]. - The group did not incur any interest payments in 2019, compared to HKD (7) thousand in 2018, indicating a potential reduction in debt obligations[180]. Business Strategy and Diversification - The company is actively seeking opportunities in the telecommunications, media, and technology (TMT) sectors to diversify its business portfolio[14]. - The company plans to streamline its existing business portfolio in response to the economic uncertainties brought by COVID-19[14]. - The board remains optimistic that business diversification will enhance shareholder value and promote sustainable growth in the long term[14]. - The group aims to diversify its business portfolio and seek new investment opportunities despite the challenges posed by COVID-19 and the uncertain economic environment[23]. Governance and Management - The company appointed Li Bing as CEO on November 1, 2017, who has extensive experience in private equity, mergers, and acquisitions[45]. - The board includes independent non-executive directors with extensive experience in finance, investment, and corporate governance, enhancing the company's strategic oversight[49][51][52][53]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with distinct responsibilities[72]. - The board is committed to maximizing shareholder value and improving long-term returns for shareholders[56]. - The company has ensured compliance with the standards set out in the code of conduct for securities trading by all directors during the year ending December 31, 2019[59]. Impairment and Financial Risks - Impairment losses on goodwill and intangible assets were recorded at approximately HKD 7,300,000 and HKD 32,400,000, respectively, due to reduced financial forecasts[30]. - The independent auditor's report highlighted concerns regarding the recoverability of trade and other receivables totaling HKD 20,887,000, which were fully provided for impairment[148]. - The independent auditor has expressed a reservation regarding the validity of certain other receivables amounting to approximately HKD 5,090,000 due to lack of supporting documentation[149]. - The company has not identified any significant risks based on the risk assessment conducted in 2019[95]. Employee and Operational Efficiency - The total employee cost for the year ended December 31, 2019, was approximately HKD 18,800,000, down from HKD 23,000,000 in 2018, reflecting a decrease of about 18.26%[135]. - The company employed 35 staff members as of December 31, 2019, compared to 41 in 2018, indicating a reduction of approximately 14.63% in workforce size[135]. - The group’s total operating expenses for the year were approximately HKD 56,100,000, a reduction from HKD 81,900,000 in the previous year, mainly due to streamlined operations and reduced employee costs[25]. Environmental and Social Responsibility - The company has been actively participating in waste reduction initiatives since 2015, aiming to minimize waste generated during operations[144]. - The company has committed to high standards of environmental, social, and governance performance, collaborating with stakeholders for sustainable business development[144].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 35,304,000, an increase of 17.6% compared to HKD 30,172,000 for the same period in 2018[9] - Gross profit decreased to HKD 9,194,000, down 47.4% from HKD 17,484,000 in the previous year[9] - Operating loss for the period was HKD 18,306,000, slightly improved from a loss of HKD 19,691,000 in 2018[9] - The net loss attributable to equity holders of the company was HKD 135,128,000, compared to a profit of HKD 64,438,000 in the same period last year[9] - Basic and diluted loss per share was HKD 12.9, a decline from earnings of HKD 6.5 per share in 2018[9] - Total comprehensive loss for the period amounted to HKD 134,875,000, compared to a comprehensive income of HKD 61,443,000 in the prior year[12] - The company reported a significant impairment loss of HKD 4,485,000 on goodwill during the period[9] - Other income decreased to HKD 1,274,000 from HKD 3,126,000 in the previous year, reflecting a decline of 59.2%[9] - The company incurred financial costs of HKD 71,000, up from HKD 4,000 in the previous year, indicating increased financial burdens[9] Assets and Liabilities - Non-current assets decreased from HKD 116,118 thousand in 2018 to HKD 108,409 thousand in 2019, a decline of approximately 6.1%[15] - Current assets decreased significantly from HKD 189,585 thousand in 2018 to HKD 67,011 thousand in 2019, representing a decrease of about 64.7%[15] - Total liabilities increased from HKD 67,292 thousand in 2018 to HKD 72,599 thousand in 2019, an increase of approximately 8.5%[15] - The company's net asset value decreased from HKD 228,745 thousand in 2018 to HKD 93,870 thousand in 2019, a decline of about 59.0%[15] - The total equity attributable to equity holders decreased from HKD 225,728 thousand in 2018 to HKD 91,149 thousand in 2019, a decrease of approximately 59.5%[17] - Cash and cash equivalents decreased from HKD 13,915 thousand in 2018 to HKD 11,678 thousand in 2019, a decline of about 16.0%[15] - As of June 30, 2019, current liabilities exceeded current assets by approximately HKD 5,588,000[24] Cash Flow - The net cash used in operating activities was HKD (888,000) for the six months ended June 30, 2019, compared to HKD (52,192,000) in the same period of 2018[20] - The net cash generated from investment activities was HKD 359,000 for the six months ended June 30, 2019, compared to HKD (52,875,000) in the same period of 2018[20] - The net cash used in financing activities was HKD (1,726,000) for the six months ended June 30, 2019, compared to HKD 50,685,000 in the same period of 2018[20] - The company experienced a decrease in cash and cash equivalents of HKD 2,255,000 for the six months ended June 30, 2019[20] - The company has sufficient working capital for its current operations for the next twelve months after considering the loan from directors[24] Accounting Standards - The company adopted the Hong Kong Financial Reporting Standard 16, which significantly changed the accounting treatment for leases[29] - The adoption of Hong Kong Financial Reporting Standard 16 resulted in the recognition of right-of-use assets and lease liabilities amounting to approximately HKD 5,815,000 as of January 1, 2019[37] - The total lease liabilities as of January 1, 2019, were HKD 5,865,000, with a financing lease obligation of approximately HKD 50,000 classified as lease liabilities[36] - As of June 30, 2019, the right-of-use assets decreased to HKD 4,169,000 after amortization of HKD 1,652,000[42] - The total lease liabilities as of June 30, 2019, were HKD 4,214,000, with current liabilities amounting to HKD 3,238,000[42] Business Segments - The group's business segments include telecommunications services, financial payment processing solutions, software development services, distribution, property development, and tourism[45] - The financial payment processing segment generated revenue of HKD 31,076,000, while the solutions and software development services segment contributed HKD 4,228,000, compared to HKD 16,466,000 and HKD 13,706,000 respectively in the previous year[51] - The telecommunications business generated total revenue of approximately HKD 31,100,000, an increase of 88.5% from HKD 16,500,000 in the previous period, driven by the expansion of the wholesale voice telecommunications segment[104] - Revenue from the information technology and distribution business decreased by 69.3% to approximately HKD 4,200,000, down from HKD 13,700,000 in the previous period, due to global economic instability and weak consumer markets[105] Future Outlook - The company is focusing on strategic market expansion and new product development to improve future performance[9] - The group is currently seeking various opportunities in the telecommunications, media, and technology (TMT) sectors to diversify its business portfolio[104] - The group plans to continue pursuing new investment opportunities arising from the Belt and Road Initiative to enhance business performance and achieve sustainable growth[108] - The company anticipates maintaining its current market position while exploring potential growth opportunities in the future[95] Shareholder Information - As of June 30, 2019, the total issued and fully paid shares remained at 1,050,280,000, unchanged from the previous year[83] - Major shareholders include Hong Kong Great Wall with 222,820,000 shares, representing 21.22% ownership[138] - The new share option plan allows for a maximum of 105,028,000 options, equivalent to 10% of the issued shares as of the annual general meeting date[142] Corporate Governance - The company is committed to maintaining high standards of corporate governance and shareholder value[144] - Management will provide monthly updates to the board regarding the group's performance and financial status[145] - The company has adopted a standard code for securities trading by its directors, ensuring compliance[146]

Financial Performance - The company's revenue for 2018 was approximately HKD 67,920,000, a decrease of 5.3% from HKD 71,675,000 in 2017[6]. - The net loss for the year was HKD 16,148,000, an improvement from a loss of HKD 17,271,000 in the previous year, representing a reduction of 6.5%[6]. - The overall gross profit margin decreased to 45.3% from 54.7% year-on-year[15]. - Total revenue from the information technology and distribution business in 2018 was approximately HKD 21,800,000, accounting for 32.1% of the group's total revenue, a decrease of 4.0% from HKD 22,700,000 in 2017[18]. - The group recorded a one-time goodwill impairment loss of approximately HKD 5,100,000 in 2018, compared to HKD 21,000,000 in 2017, due to challenges in the business environment[20]. - The group recognized a loss provision of approximately HKD 45,700,000 for other receivables in 2018, which was not present in 2017[25]. - The group's total revenue for the year was approximately HKD 67,900,000, a decrease of 5.3% compared to the previous year, primarily due to reduced revenue from the information technology and distribution business[24]. - The overall gross profit margin for the year was 45.3%, down from 54.7% in the previous year, with gross profit decreasing by 21.4% to approximately HKD 30,800,000[24]. - The group’s operating loss was approximately HKD 46,800,000, an improvement from a loss of HKD 59,100,000 in the previous year[26]. - The group’s loss attributable to equity holders was approximately HKD 11,700,000, compared to a loss of HKD 15,700,000 in the previous year[27]. - The company reported a total loss of HKD 16,148,000 for the year ended December 31, 2018, compared to a loss of HKD 17,271,000 in 2017, representing a 6.5% improvement in performance year-over-year[197]. - The loss attributable to equity holders of the company was HKD 11,727,000 in 2018, down from HKD 15,735,000 in 2017, indicating a reduction of 25.8%[197]. - The company's basic and diluted loss per share improved to HKD (1.2) in 2018 from HKD (1.8) in 2017[197]. - Total comprehensive loss for the year was HKD 25,142,000, significantly higher than the HKD 11,411,000 reported in 2017, marking a 120.1% increase in losses[197]. Business Diversification and Strategy - The company is actively seeking opportunities to diversify its business portfolio, particularly in the enterprise IT solutions sector[12]. - A memorandum of understanding was signed to propose the sale of the underperforming IT and distribution business, which may enhance the company's financial position[12]. - The company established joint ventures in Xinjiang and Sichuan for developing cultural tourism and real estate projects[12]. - The board remains optimistic that business diversification will enhance shareholder value and promote sustainable growth in the long term[12]. - The group plans to diversify its business portfolio and seek new investment opportunities, particularly in response to the challenges faced in the information technology and distribution sector[22]. Corporate Governance - The company has maintained high levels of corporate governance, prioritizing shareholder interests and enhancing long-term shareholder value[57]. - The company has complied with the Listing Rules and Corporate Governance Code, ensuring proper appointment of a company secretary following the resignation of Ms. Chen Yan on March 13, 2018[58]. - The company confirmed that all directors have fully complied with the standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers during the year ended December 31, 2018[60]. - The company has a strong board of independent non-executive directors with extensive experience in finance, auditing, and corporate governance[53][54][55]. - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a diverse skill set and experience[61]. - The company has adopted a board diversity policy since 2013, focusing on various factors including gender, age, and professional experience to enhance decision-making[63]. - The company emphasizes transparency and accountability in its corporate governance policies[85]. - The company confirmed that it has complied with the corporate governance code as per the listing rules[85]. Financial Position and Assets - The company's total assets increased to HKD 228,745,000 from HKD 208,331,000, reflecting a growth of 9.7%[6]. - As of December 31, 2018, the net asset value of the group was approximately HKD 228.7 million, an increase from HKD 208.3 million in 2017[34]. - The company reported a significant decrease in trade and other receivables, which fell to HKD 43,531,000 in 2018 from HKD 69,792,000 in 2017, a decline of 37.6%[199]. - The company’s cash and cash equivalents decreased to HKD 13,915,000 in 2018 from HKD 69,409,000 in 2017, a drop of 80%[199]. - Non-current assets decreased to HKD 116,118,000 in 2018 from HKD 96,048,000 in 2017, reflecting a 21% increase[199]. - Current assets decreased to HKD 189,585,000 in 2018 from HKD 242,475,000 in 2017, a decline of 21.8%[199]. Shareholder Information - The board has not recommended the payment of dividends for the year ending December 31, 2018, consistent with the previous year[114]. - The company has no reserves available for distribution to shareholders as of December 31, 2018[116]. - Major shareholders include Hong Kong Great Wall, Great Wall Group, and Zhao Feifan, each holding 222,820,000 shares, or approximately 21.22%[133]. - As of December 31, 2018, Zhao Ruiyong holds 222,820,000 shares, representing approximately 21.22% of the company's equity[127]. Related Party Transactions - The company has established related party transactions with both Zhejiang Honglan and Hangzhou Kangyuan, requiring compliance with disclosure regulations[146][152]. - The auditor was unable to provide a letter confirming compliance with the listing rules due to insufficient information regarding the related party transactions[170]. - The related party transactions for the year ended December 31, 2018, are disclosed in the consolidated financial statements and do not fall under the definitions of "related transactions" or "continuing related transactions" as per the listing rules[171]. Environmental, Social, and Governance (ESG) Commitment - The company has been participating in the Hong Kong Green Organization Certification "Waste Reduction Certificate" program since 2015, aimed at encouraging businesses to reduce waste[174]. - The company emphasizes its commitment to high standards of environmental, social, and governance performance, focusing on employee development and environmental protection[174]. - The company plans to publish its Environmental, Social, and Governance report within three months after the annual report, providing further details on its performance[174].