Financial Performance - The group's revenue increased by 6% to HKD 3,249,000,000 for the six months ended June 30, 2020, while gross profit rose by 12%[7] - The group recorded a post-tax loss of HKD 309,534,000, compared to a profit of HKD 159,876,000 in the same period last year, primarily due to fair value and impairment losses totaling HKD 437,555,000[7] - The distribution business's total revenue increased by 7% or HKD 195,154,000 to HKD 3,110,224,000, driven by new brand product distribution in Thailand[18] - The group recorded revenue of HKD 3,248,584, an increase of 6.3% compared to HKD 3,056,270 in the same period last year[25] - The gross profit for the period was HKD 282,167, representing a gross margin of 8.7%[25] - The group reported a loss before tax of HKD 379,329, compared to a profit of HKD 201,007 in the previous year[25] - The net loss attributable to the company's owners was HKD 327,542, compared to a profit of HKD 139,594 in the same period last year[25] - The group reported a total revenue of HKD 3,248,584,000, compared to HKD 3,056,270,000 in the previous period, indicating a year-on-year increase[60] Asset and Liability Management - Total assets decreased by 4% to HKD 8,946,000,000, with net asset value per share dropping from HKD 14.3 to HKD 13.0[8] - The total assets decreased to HKD 5,733,862 from HKD 6,178,484 as of December 31, 2019[33] - The net assets of the company decreased to HKD 3,609,205 as of June 30, 2020, down 9.2% from HKD 3,973,220 as of December 31, 2019[35] - As of June 30, 2020, the total non-current liabilities amounted to HKD 1,870,152, a decrease of 5.0% from HKD 1,969,014 as of December 31, 2019[35] - The company’s total equity attributable to owners decreased to HKD 3,258,281 as of June 30, 2020, from HKD 3,610,212 as of December 31, 2019, reflecting a decline of 9.7%[35] Impact of COVID-19 - The group recorded a fair value loss of HKD 361,641,000 on investment properties and an impairment loss of HKD 21,808,000 on property, plant, and equipment due to the impact of COVID-19[16] - The group's operations were significantly impacted by the COVID-19 outbreak, leading to a severe decline in hotel occupancy rates across Japan and temporary closures of several hotel properties[45] - The group anticipates that the ongoing economic challenges will continue to affect its performance in the short term, particularly in the hospitality sector[45] - The group has implemented various strategies to navigate the adverse effects of the pandemic, including adjustments in accounting policies and operational strategies[56] Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 338,323 for the six months ended June 30, 2020, compared to HKD 55,005 for the same period in 2019, representing a significant increase[41] - Cash and cash equivalents increased by HKD 199,935 during the six months ended June 30, 2020, compared to an increase of HKD 51,433 in the same period of 2019[41] - The company’s bank borrowings stood at HKD 1,227,240 as of June 30, 2020, slightly down from HKD 1,233,510 as of December 31, 2019[35] - The company incurred a tax expense of HKD 69,795,000, compared to HKD 41,131,000 in the previous year[66] Investment Properties and Real Estate - Rental and operational income from real estate investment business decreased by 2% to HKD 138,360,000, with operating profit (excluding fair value changes and impairment losses) increasing to HKD 61,707,000 from HKD 58,212,000 year-on-year[15] - The newly opened Osaka SiS Rinku Tower hotel, with 258 rooms, partially offset the revenue decline from investment properties[16] - The group’s investment properties recorded a fair value loss of HKD 415,747, compared to a gain of HKD 191,480 in the previous year[25] - The book value of investment properties was HKD 4,365,800,000, down from HKD 4,705,311,000 as of December 31, 2019[101] Employee and Compensation - The number of employees as of June 30, 2020, was 703, an increase from 670 on June 30, 2019. Employee compensation and benefits amounted to HKD 81,654,000, down from HKD 87,381,000 in the previous year[120] - The employee compensation policy remains unchanged from the previous year, linking performance to rewards, with no stock options exercised during the six-month period ending June 30, 2020[120] - The company is actively reviewing its compensation and discretionary bonus systems annually to ensure competitiveness and alignment with performance[120] Corporate Governance - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange Listing Rules throughout the period ending June 30, 2020[157] - All directors confirmed compliance with the required standards of conduct as outlined in the standard code of conduct[158] - The audit committee, composed entirely of independent non-executive directors, reviewed the interim report for the six months ending June 30, 2020, along with the company's auditors[159]

Financial Performance - The company's revenue increased by HKD 37 million to HKD 6,416 million for the year ended December 31, 2019[24]. - Net profit decreased by 63% to HKD 121 million, primarily due to a decline in property and securities investment valuations[24]. - Total assets increased by 11% to HKD 9,329 million[25]. - Net asset value per share rose from HKD 13.9 to HKD 14.3[25]. - Rental income from real estate investment increased by 6% to HKD 279,400,000, generating a profit of HKD 145,500,000 compared to HKD 130,400,000 last year[26]. - The total market value of investment properties in Hong Kong, Singapore, and Thailand was HKD 1,793,000,000, with a fair value gain of HKD 10,700,000, down from HKD 158,900,000 last year[26]. - The group's securities investment portfolio had a book value of HKD 282,000,000, with a fair value loss of HKD 31,000,000 compared to a gain of HKD 7,000,000 last year[32]. - As of December 31, 2019, the total assets were HKD 9,329,183,000, with a current ratio of approximately 0.93, up from 0.87 in 2018[38]. - The group had a cash deficit of HKD 2,860,715,000 as of December 31, 2019, compared to HKD 2,335,406,000 in 2018[38]. - The company proposed a final dividend of HKD 0.02 per share, totaling HKD 5,559,000 for shareholders registered by July 3, 2020[130]. - The company’s ability to declare dividends is contingent upon its operating performance, capital requirements, and overall financial condition[137]. Investments and Acquisitions - The company acquired a hotel property in Okinawa and a hostel in Kyoto in 2019[20]. - The company rebranded the Rinku Space Tower to SiS Rinku Tower and opened a hotel with 258 rooms[20]. - The company holds additional equity in SiS Thailand, making it a subsidiary[20]. - The company has expanded its hotel portfolio in Japan, acquiring multiple properties from 2012 to 2019[20]. - The company established a hotel group to manage all Japanese properties[21]. - The company invested HKD 406,855,000 in investment properties and HKD 25,068,000 in property, plant, and equipment during the year[133]. - The company reported a fair value loss of HKD 13,115,000 from the revaluation of investment properties, which was directly deducted from the consolidated income statement[133]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse range of business experience and expertise[48]. - The company has adopted a board diversity policy, recognizing the importance of diverse skills, backgrounds, and experiences among board members to maintain competitive advantage[56]. - The chairman and CEO positions are held by the same individual, Mr. Lin Ka-fung, who is responsible for formulating the group's corporate strategy and development direction[51]. - The company has implemented a director nomination policy effective from January 1, 2019, which includes criteria such as character, integrity, qualifications, and industry knowledge[52]. - The company believes that its corporate governance practices meet or exceed the standards set by the relevant codes[49]. - The board is committed to ensuring that one-third of the directors retire and seek re-election at each annual general meeting, promoting accountability[49]. - The Audit Committee held four meetings during the year ending December 31, 2019, reviewing the group's financial performance and internal controls[60]. - The external auditor, Deloitte, provided audit services for a fee of HKD 2,638,000, tax advisory services for HKD 14,000, and other services for HKD 890,000, totaling HKD 3,542,000 for the year[73]. - The Nomination Committee met once in 2019 to review the board's structure and assess the independence of non-executive directors[63]. - The Remuneration Committee held one meeting during the year to review the remuneration policies for directors and senior management[64]. - The board of directors has a high attendance rate, with all executive directors attending 100% of board meetings[74]. - The company has established an internal audit function to regularly assess the effectiveness of its risk management and internal control systems[76]. - The company has implemented a code of conduct for directors regarding securities trading, ensuring compliance with regulatory standards[70]. - Independent non-executive directors are required to submit annual confirmations of their independence, ensuring compliance with listing rules[48]. Environmental Impact - The total energy consumption for the year 2019 was 8,500,000,000 kWh, an increase from 8,476,000,000 kWh in 2018[93]. - The total water consumption for 2019 was 166,022 cubic meters, slightly down from 166,311 cubic meters in 2018[93]. - The company generated 4,738 kg of non-hazardous waste in 2019, compared to 3,015 kg in 2018[91]. - Indirect energy emissions amounted to 4,547,015 tons of CO2 in 2019, a slight increase from 4,532,526 tons in 2018[90]. - Other indirect emissions reached 51 tons of CO2 in 2019, up from 48 tons in 2018[90]. - The company has implemented measures to monitor and reduce the environmental impact of its hotel operations[87]. Employee and Workforce - The employee count increased to 700 from 652, with total salaries and benefits amounting to HKD 179,333,000, up from HKD 153,042,000 in the previous year[41]. - As of December 31, 2019, the company employed a total of 163 full-time employees, an increase from 158 in 2018, with 71% located in Hong Kong[97]. - The company provided training to 74% of its employees in 2019, totaling 576 hours, an increase from 445 hours in 2018, averaging 5 hours of training per employee[103]. - The company has a diverse workforce, with 54% of employees being female and 46% male, and a significant portion of employees aged 30 and below[99]. - The company has a low employee turnover rate and has not reported any days lost due to work-related injuries[102]. - The company encourages employees to balance work and life, promoting a healthy lifestyle[97]. Community Engagement and Social Responsibility - The company has a strong focus on community engagement through donations and contributions, although no donations were made in the past year[116]. - Due to an uncertain business environment, the company did not make any charitable donations in 2019[117]. - The company is committed to strict confidentiality regarding personal data and has policies in place to protect such information[113]. Risk Management and Compliance - The company does not currently have a comprehensive currency hedging policy but monitors currency fluctuation risks and has established foreign currency forward contracts[45]. - The company has a clear code of conduct regarding conflicts of interest, intellectual property, and anti-corruption measures[114]. - There were no reports of corruption incidents received by the company during the year[115]. - The company has not encountered any intellectual property infringement cases related to its distributed products during the year[113]. Shareholder Information - The company’s directors hold a combined total of 185,973,108 shares, representing 66.90% of the issued share capital[145]. - Major shareholders as of December 31, 2019, included Yang Shengcong and Lin Meihua, each holding 5.06% of the issued share capital[175]. - The top five customers accounted for less than 30% of the total revenue, while the top five suppliers accounted for approximately 46% of the total purchase value, with the largest supplier contributing 15%[178]. - The company has established a remuneration committee since September 2005 to oversee compensation policies[179].

Financial Performance - Sales revenue decreased from HKD 3,208,364,000 in the same period last year to HKD 3,056,270,000, representing a decline of approximately 4.7%[6] - Net profit attributable to shareholders decreased by 2% to HKD 139,594,000[6] - The company's profit for the six months ended June 30, 2019, was HKD 159,876,000, a decrease of 2.0% from HKD 164,196,000 in 2018[24] - Total comprehensive income for the period was HKD 201,710,000, up 17.9% from HKD 171,104,000 in the previous year[24] - Basic earnings per share decreased to 50.2 HK cents from 51.4 HK cents in the previous year[21] - Total revenue for the group reached HKD 3,056,270,000 with a profit of HKD 249,316,000[93] - The pre-tax profit for the period was HKD 201,007,000[93] - The basic and diluted earnings per share were based on a profit attributable to shareholders of HKD 139,594,000[108] Revenue Sources - The real estate investment portfolio's total revenue increased by 8% to HKD 141,200,000, with a classified profit of HKD 58,212,000 compared to HKD 47,620,000 in the previous year[11] - The total value of the hotel properties in Japan increased to 19 after the acquisition of a hotel in Kyoto, contributing HKD 119,048,000 in revenue[11] - Distribution business classified profit increased by 28% to HKD 66,577,000, primarily driven by contributions from Thailand[13] - Revenue from mobile and IT products amounted to HKD 2,900,662,000, while hotel operations generated HKD 14,879,000[85] - The company’s revenue from Thailand was HKD 2,455,338,000, while revenue from Hong Kong was HKD 459,732,000[85] - The company reported a total of HKD 126,321,000 from rental income of investment properties during the same period[85] Assets and Liabilities - The company's non-current assets increased to HKD 6,194,218,000 as of June 30, 2019, compared to HKD 5,734,753,000 at the end of 2018, reflecting a growth of 8.0%[27] - Investment properties rose to HKD 5,086,207,000, an increase of 10.6% from HKD 4,598,274,000[27] - Current assets increased to HKD 2,983,816,000, up from HKD 2,634,379,000, representing a growth of 13.2%[27] - The company's total liabilities increased to HKD 3,273,058,000, compared to HKD 3,033,444,000, indicating a rise of 7.9%[30] - The net assets of the company stood at HKD 4,016,078,000, an increase of 4.2% from HKD 3,855,164,000[30] - The total value of investment properties was HKD 4,795,346,000 as of June 30, 2019, compared to HKD 4,361,882,000 as of December 31, 2018[129] Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 55,005,000, compared to a net cash used of HKD 21,482,000 in the same period of 2018[36] - Cash used in investing activities amounted to HKD 225,809,000, a decrease from HKD 359,960,000 year-over-year[36] - New bank borrowings for the period were HKD 1,648,647,000, an increase from HKD 1,503,620,000 in the prior year[36] - The net cash from financing activities was HKD 222,237,000, down from HKD 330,752,000 in the previous year[36] - The company has a current liability exceeding current assets by HKD 289,242,000 as of June 30, 2019, but expects to continue receiving existing loan financing[38] - The net cash deficit amounted to HKD 2,631,507,000 as of June 30, 2019, compared to HKD 2,335,406,000 as of December 31, 2018[153] Dividends and Share Options - The company declared dividends amounting to HKD 19,458,000 during the period[32] - The company declared a final dividend of HKD 0.07 per share, totaling HKD 19,458,000[113] - The company has a total of 4,200,000 unexercised share options as of June 30, 2019[173] - The total number of share options granted to directors and their associates amounts to 990,000[180] - The total number of share options granted to employees and other eligible persons is 1,260,000, leading to a cumulative total of 2,250,000 share options[183] Accounting Policies and Compliance - The application of HKFRS 16 resulted in changes to accounting policies, impacting the recognition of lease liabilities and right-of-use assets[47] - The company recognized a new lease liability and right-of-use asset amounting to HKD 79,085,000 as of January 1, 2019, following the application of HKFRS 16[70] - The company will apply HKFRS 15 to allocate consideration to lease and non-lease components of contracts effective from January 1, 2019[64] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules throughout the period ending June 30, 2019[189] - The audit committee, composed entirely of independent non-executive directors, reviewed the interim report for the six months ending June 30, 2019, including the accounting policies adopted[191] Employee and Management Information - The group employed 670 staff as of June 30, 2019, up from 637 a year earlier, with total employee compensation amounting to HKD 87,381,000 compared to HKD 77,066,000 in the previous year[157] - The remuneration paid or payable to directors was HKD 9,262,000, down from HKD 10,184,000 for the same period last year[133] - The group has made additional provisions for long-term employee benefits due to changes in Thai labor laws during the period[157] - The group’s compensation policy links performance to rewards and is reviewed annually without significant changes from the previous year[157]

Financial Performance - Revenue increased by 531% to HKD 6,379,000,000 for the year ended December 31, 2018[19] - Net profit decreased by 11.0% to HKD 329,500,000 for the same period[19] - Total asset value increased by 11.5% to HKD 8,369,000,000, with property revaluation gains of HKD 220,800,000 recorded[19] - Net asset value per share rose from HKD 12.7 to HKD 13.9[19] - Real estate investment segment revenue increased by 7.4% to HKD 262,600,000, generating a profit of HKD 130,400,000[20] - Revenue from Japanese real estate grew by 7.0% compared to the previous year[20] - Revenue from the Hong Kong distribution business increased by 11.6% to HKD 854,900,000, with a reduction in classified losses compared to the previous year[23] - SiS Distribution (Thailand) contributed revenue of HKD 5,261,600,000 and reported a profit of HKD 140,700,000 in 2018, driven by increased demand in Thailand for business, smartphones, and consumer goods[23] Assets and Liabilities - As of December 31, 2018, the total assets of the group were HKD 8,369,132,000, with total liabilities of HKD 4,513,968,000, resulting in a current ratio of approximately 0.87[32] - The debt-to-equity ratio was 87% as of December 31, 2018, compared to 82% in the previous year[33] - The group had a cash deficit of HKD 2,335,406,000 at the end of 2018, an increase from HKD 1,782,219,000 in 2017[32] Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring diverse business experience and knowledge[45] - The independent non-executive directors have confirmed their independence according to the listing rules, with one having over 20 years of experience in corporate banking and finance[45] - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in board member selection[54] - The audit committee is composed entirely of independent non-executive directors, with Ms. Wang Wei Ling serving as the chair[56] - The company has established a nomination policy effective from January 1, 2019, to guide the nomination and reappointment of directors[49] - The board is responsible for formulating business strategies and monitoring performance, with most decisions made by the board rather than management[45] - The company recognizes the importance of a diverse board as a competitive advantage and aims to balance various differences among board members[54] - The chairman and CEO roles are held by the same individual, Mr. Lin Jia Feng, who is responsible for the company's strategic direction[48] - The company has measures in place to ensure corporate governance standards meet or exceed those set by the listing rules[46] Environmental Impact - The total energy consumption for 2018 was 8,476,000,000 kWh, an increase from 8,390,000,000 kWh in 2017, representing a rise of approximately 1.03%[83] - The total water consumption in 2018 was 166,311 cubic meters, slightly down from 167,644 cubic meters in 2017, indicating a decrease of about 0.79%[83] - The carbon dioxide emissions for 2018 were 4,532,574 tons, a slight increase of 0.9% from 4,490,823 tons in 2017[82] - The company generated 3,015 kg of non-hazardous waste in 2018, up from 2,833 kg in 2017, reflecting an increase of approximately 6.4%[82] - The company has implemented measures to monitor and minimize the environmental impact of its hotel operations[79] Employee and Workforce - The number of employees decreased to 652 from 702 in the previous year, with total employee compensation and benefits amounting to HKD 153,042,000[37] - The company employed a total of 158 full-time employees as of December 31, 2018, an increase from 147 in 2017, with 69% located in Hong Kong[87] - The company provided training to 65% of its employees in 2018, totaling 445 hours, averaging 4 hours per employee, a decrease from 692 hours in 2017[94] - The employee turnover rate is low, with no reported days lost due to work-related injuries[92] - The company encourages employees to balance work and life, promoting a healthy lifestyle[87] Investment and Growth Strategy - The company has established three core businesses: real estate investment, distribution, and IT investment, which are expected to drive future growth[19] - The company aims to continue building a large property portfolio with long-term capital appreciation potential[22] - The group plans to continue evaluating and selecting investments in promising securities and companies[26] - The management remains cautiously optimistic about growth opportunities in the real estate and hotel sectors in Japan and the electronic payment market in Bangladesh[27] Shareholder Information - The group proposed a final dividend of HKD 0.07 per share, totaling HKD 19,458,000 for shareholders registered on July 5, 2019[122] - The company's distributable reserves as of December 31, 2018, amounted to HKD 1,091,322,000, a decrease from HKD 1,103,638,000 at the beginning of the year, reflecting a reduction of approximately 1.1%[131] - The retained earnings as of December 31, 2018, were HKD 1,062,136,000, down from HKD 1,074,452,000 at the start of the year, indicating a decline of about 3.6%[131] - The company has a dividend policy that depends on its operating performance, capital requirements, and overall financial condition, with no dividends declared if it cannot meet its liabilities[133] - The company’s ability to declare dividends is contingent upon its profitability and the economic environment, which may affect shareholder interests[133] Audit and Financial Reporting - The board is responsible for preparing true and fair consolidated financial statements according to Hong Kong Financial Reporting Standards and the Companies Ordinance[195] - The management is tasked with overseeing the financial reporting process of the group[196] - The independent auditor aims to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[199] - The audit process involves identifying and assessing risks of material misstatement and designing audit procedures to address these risks[200] - The auditor's report is issued solely to the shareholders and cannot be used for other purposes[199]