Financial Performance - For the year ended December 31, 2022, the group's revenue was HKD 1,601,799,000, a decrease of 79.4% compared to HKD 7,774,000 in 2021[19] - The group's gross profit for the same period was HKD 676,267,000, compared to HKD 4,178,000 in 2021, indicating a significant decline in profitability[19] - The group recorded a net profit of HKD 330,134,000 for the year, a turnaround from a net loss of HKD 341,506,000 in 2021[19] - Basic earnings per share for the year were HKD 3.82, compared to a loss per share of HKD 4.70 in 2021[19] - The company reported a pre-tax profit of HKD 547,895,000, a recovery from a loss of HKD 341,102,000 in 2021[52] - The group recorded a profit before tax of approximately HKD 547,900,000, compared to a loss of HKD 341,100,000 in the previous year[111] Assets and Liabilities - The total equity of the group as of December 31, 2022, was HKD 148,900,000, compared to a loss of HKD 123,200,000 in the previous year[11] - The group's non-current assets amounted to HKD 1,815,000,000, slightly up from HKD 1,806,000,000 in 2021[14] - Total assets decreased from HKD 4,591,013,000 in 2021 to HKD 3,330,776,000 in 2022, a decline of approximately 27.5%[31] - Current assets dropped significantly from HKD 2,785,052,000 in 2021 to HKD 1,515,760,000 in 2022, representing a decrease of about 45.6%[31] - Total liabilities decreased from HKD 4,714,214,000 in 2021 to HKD 3,181,830,000 in 2022, a reduction of approximately 32.4%[35] - The total interest-bearing borrowings of the group as of December 31, 2022, were HKD 1,476,700,000, down from HKD 1,882,700,000 a year earlier[124] Revenue Segments - The hotel business segment reported revenue of HKD 4,400,000, down from HKD 5,700,000 in 2021, with a segment loss of HKD 28,400,000 compared to HKD 17,700,000 in the previous year[13] - The property development segment generated revenue of approximately HKD 1,595,500,000, with a profit of HKD 572,900,000, reversing a loss of HKD 126,900,000 in 2021[113] - The company recognized revenue from property sales of HKD 1,586,691,000, up from HKD 508,000 in 2021[59] Cash Flow and Financial Obligations - The company reported cash and cash equivalents of HKD 16,127,000 in 2022, down from HKD 46,669,000 in 2021, a decline of about 65.5%[31] - The company’s financial obligations totalled approximately HKD 1,494,821,000 as of December 31, 2022, with HKD 559,817,000 due within the next twelve months[39] - The group has a total financial obligation of approximately HKD 1,494,821,000, with HKD 559,817,000 due within the next twelve months[107] Development Projects - The group had three ongoing development projects located in Zhuhai, Chengdu, and Doumen as of December 31, 2022[12] - The German project has a total construction area of approximately 145,176 square meters, with 53.94% of the saleable area sold as of December 31, 2022[114] - The Fuyuan Junting project has achieved sales of 99.34% and 45.37% for its first and second phases, respectively, with the first phase completed in May 2022[115] - The Fuyuan Plaza project has realized sales contracts amounting to approximately 59.34% of its saleable area, with construction expected to complete by June 2024[116] Impairments and Expenses - The group recognized a goodwill impairment of HKD 50,290, which was attributed to the acquisition of Yiwai International Investment Limited[82][83] - The group incurred a tax expense of HKD 217,761, reflecting the corporate income tax rate of 25% applicable in China[75][76] - Financial expenses for the year were HKD 203,706,000, an increase from HKD 135,687,000 in 2021[62] Corporate Governance and Future Outlook - The company aims to maintain high standards of corporate governance and has adhered to the relevant rules and principles as of December 31, 2022[133] - In 2023, with the gradual easing of pandemic measures in Hong Kong and mainland China, and the government's reduction of the bank reserve requirement ratio to stimulate domestic demand, the economy is expected to recover[138] - The company plans to accelerate property sales and strengthen its hotel business while identifying viable investment projects to maximize returns for shareholders[138] Employment and Operational Impact - The company employed a total of 113 staff as of December 31, 2022, a decrease from 156 employees on December 31, 2021[131] - The company's operations in mainland China have been severely impacted since the outbreak of the pneumonia virus at the end of 2019, affecting property sales and hotel business performance[132]

Financial Performance - The total revenue for the year 2022 was HKD 1,601,799,000, a significant increase from HKD 7,774,000 in 2021[3] - Gross profit for 2022 reached HKD 676,267,000, compared to HKD 4,178,000 in the previous year, indicating a substantial improvement[3] - The net profit for the year was HKD 330,134,000, a recovery from a loss of HKD 341,506,000 in 2021[3] - Basic earnings per share for 2022 was HKD 3.82, compared to a loss of HKD 4.70 per share in 2021[3] - The company reported a total comprehensive income of HKD 332,790,000 for the year, compared to a loss of HKD 330,668,000 in 2021[5] - The company generated other income of HKD 16,770,000, up from HKD 5,535,000 in the previous year[3] - The financial expenses for the year amounted to HKD 203,706,000, an increase from HKD 135,687,000 in 2021[3] - The company achieved a pre-tax profit of HKD 547,895,000, compared to a loss of HKD 341,102,000 in the previous year[20] - The company reported a profit attributable to shareholders of approximately HKD 265,200,000 for the year ended December 31, 2022, compared to a loss of HKD 326,300,000 in the same period of 2021[84] - The company reported a net profit of HKD 265,177,000 for the year, compared to HKD 326,264,000 in the previous year, reflecting a decrease of approximately 18.7%[63] Assets and Liabilities - As of December 31, 2022, the group's current liabilities exceeded current assets by approximately HKD 643,550,000[26] - The total financial obligations of the group amounted to approximately HKD 1,494,821,000, with HKD 559,817,000 due within the next twelve months[26] - Cash and cash equivalents were approximately HKD 251,924,000 as of December 31, 2022[26] - The group's total interest-bearing borrowings amounted to HKD 1,476,700,000, a decrease from HKD 1,882,700,000 as of December 31, 2021[111] - The company's total liabilities as of December 31, 2022, were HKD 361,100,000, a decrease from HKD 365,000,000 as of December 31, 2021[152] - The group's current liabilities exceeded current assets by approximately HKD 643,550,000 as of December 31, 2022, with total financial obligations of about HKD 1,494,821,000, of which HKD 559,817,000 is due within the next twelve months[79] - The group's non-current assets amounted to HKD 1,815,000,000 as of December 31, 2022, compared to HKD 1,806,000,000 as of December 31, 2021[129] - Current assets decreased to HKD 1,515,800,000 as of December 31, 2022, from HKD 2,785,100,000 as of December 31, 2021[129] - The group's net assets improved significantly to HKD 148,900,000 as of December 31, 2022, from a loss of HKD 123,200,000 as of December 31, 2021[130] - The group's total equity as of December 31, 2022, was HKD 148,900,000, compared to a loss of HKD 123,200,000 as of December 31, 2021[132] Business Operations - The business primarily includes property development, hotel operations, and food and beverage sales in China[10] - The group has ongoing development projects valued at HKD 1,047,016,000, down from HKD 1,828,965,000 in the previous year, indicating a reduction of approximately 42.7%[68] - The group plans to accelerate the development and sales of properties to improve cash flow and manage costs effectively[13] - The group plans to accelerate the pre-sale and sale of ongoing and completed properties to improve cash flow and manage capital expenditures effectively[101] - The group has identified potential investment projects to maximize returns for shareholders[140] - The primary business operations are focused in China, particularly in property development and related services[200] Market Conditions - The global economy faced challenges in 2022 due to factors such as the pandemic, the Russia-Ukraine war, and regional political instability, leading to weakened consumer and investment confidence[154] - The company has recognized goodwill impairment in the consolidated financial statements due to the ongoing impact of COVID-19 and adverse government measures on the Chinese real estate market[86] Corporate Governance - The company adhered to the corporate governance code and principles as per the listing rules, with some deviations noted[156] - The company has established an audit committee consisting of three independent non-executive directors[163] - The company plans to disclose relevant information as per listing rules on its website at an appropriate time[165] - The company has appointed new directors, including Mr. Tam Ka Wai as an executive director and Ms. Chan Chu Hai as an independent non-executive director[159][160] Cash Flow and Financing - The company reported a cash outflow of approximately HKD 10,068,000 during the year[56] - The company is negotiating with lenders regarding overdue loans totaling RMB 66,300,000 (approximately HKD 75,045,000) as of December 4, 2022[100] - The company is currently negotiating with property builders and lenders regarding construction costs and loan extensions[179] - The company has implemented several measures to improve its liquidity and financial condition, addressing delayed repayments to financial institutions[198] Segment Performance - Revenue from the property development segment was approximately HKD 1,595,500,000 for the year ended December 31, 2022, significantly up from HKD 1,800,000 in 2021, with segment profit of HKD 572,900,000 compared to a loss of HKD 126,900,000 in the previous year[85] - The hotel business segment recorded franchise income of HKD 4,400,000 for the year ended December 31, 2022, down from HKD 5,700,000 in the same period of 2021, with a segment loss of HKD 28,400,000[106] - The group has no revenue from Hong Kong, with income primarily derived from hotel operations and property development in other regions of China[107] Trade and Receivables - The total trade receivables for the year were HKD 87,697,000, with a recognized impairment loss of HKD 87,467,000[70] - The group reported a significant increase in trade receivables impairment losses, totaling HKD 588,701,000 in 2022 compared to HKD 275,204,000 in 2021[50] - The company reported a significant increase in payable trade accounts related to property development expenses, rising to HKD 588,701,000 from HKD 275,204,000, an increase of approximately 113.1%[70] Inventory and Contracts - The company reported a significant reduction in inventory from HKD 1,828,965,000 in 2021 to HKD 1,047,016,000 in 2022, a decrease of approximately 42.7%[192] - Contract liabilities decreased sharply from HKD 1,974,806,000 in 2021 to HKD 386,981,000 in 2022, a decline of about 80.4%[193] Employment - The group employed a total of 113 staff as of December 31, 2022, down from 156 staff in the previous year[115]

Financial Performance - The company reported revenue of HKD 414,786,000 for the six months ended June 30, 2022, a significant increase from HKD 8,160,000 in the same period last year, representing a growth of approximately 4,000%[12] - Gross profit for the same period was HKD 23,788,000, compared to HKD 6,618,000 in the previous year, indicating an increase of about 259%[12] - The company achieved a profit before tax of HKD 160,483,000, a turnaround from a loss of HKD 109,771,000 in the prior year[12] - Net profit for the period was HKD 160,333,000, compared to a loss of HKD 110,275,000 in the previous year, marking a substantial recovery[12] - Basic earnings per share for the period was HKD 2.39, compared to a loss per share of HKD 1.54 in the same period last year[12] - The company reported a total comprehensive income of HKD 161,790,000 for the period, compared to a loss of HKD 107,462,000 in the previous year[13] - The company reported a loss before tax of HKD 160,483,000 for the six months ended June 30, 2022, compared to a loss of HKD 109,771,000 in the same period of 2021[62] - The group reported a revenue contribution of approximately HKD 11,525,000 and a pre-tax profit of HKD 9,528,000 for the six months ended June 30, 2022[71] - For the six months ended June 30, 2022, the group's revenue was approximately HKD 414,800,000, compared to a loss of HKD 107,100,000 in the same period of 2021[98] - The group recorded a profit before tax of approximately HKD 160,500,000, while the same period in 2021 showed a loss of HKD 109,800,000, mainly due to a one-time gain from the sale of a subsidiary completed in May 2022[104] Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 4,591,013,000, a decrease from HKD 5,000,000,000 as of December 31, 2021[18] - Current liabilities totaled HKD 2,546,401,000, down from HKD 3,470,983,000 in the previous year, reflecting improved financial management[20] - The company’s total liabilities increased, with a notable rise in borrowings, leading to a net cash outflow from financing activities of HKD 334,655,000[39] - The group's current assets were HKD 1,991,000,000, down from HKD 2,785,100,000 as of December 31, 2021, while current liabilities decreased to HKD 2,546,400,000 from HKD 3,471,000,000[24] - The total interest-bearing borrowings amounted to HKD 1,539,800,000 as of June 30, 2022, compared to HKD 413,300,000 as of December 31, 2021[24] Cash Flow - The company reported a net cash inflow from operating activities of HKD 47,029,000 for the six months ended June 30, 2022, compared to HKD 83,873,000 in the same period of 2021, representing a decrease of approximately 43.8%[25] - Cash generated from investing activities was HKD 254,222,000, a significant increase from a cash outflow of HKD 50,243,000 in the previous year[32] - The company’s cash and cash equivalents decreased to HKD 48,436,000 at the end of the period from HKD 70,589,000 at the beginning, reflecting a decline of approximately 31.3%[43] - The company reported a significant cash inflow of HKD 253,587,000 from the sale of subsidiaries during the period[31] Market and Operations - The company plans to continue expanding its market presence and developing new products to drive future growth[12] - The company is engaged in property development and hotel operations primarily in China, indicating a focus on expanding its market presence in this region[48] - The property development segment generated revenue of approximately HKD 412,300,000 for the six months ended June 30, 2022, compared to a loss of HKD 33,900,000 in the same period of 2021[104] - The group has three ongoing development projects, with the German City project achieving a sales contract amount of 54.8% of its available area as of June 30, 2022[104] - The Fuyuan Junting project has achieved sales contract amounts of 98.5% and 45.2% for its first and second phases, respectively, with the first phase completed and delivered to buyers since May 2022[104] - The Fuyuan Plaza project has achieved a sales contract amount of 59.2% of its available area as of June 30, 2022, with construction expected to be completed between the second quarter of 2022 and 2024[105] Corporate Governance - The company is committed to maintaining high standards of corporate governance, emphasizing accountability and transparency[162] - The company has adopted the standard code of conduct for securities trading as per the listing rules, with all directors confirming compliance for the six months ending June 30, 2022[164] - The company established an audit committee consisting of three independent non-executive directors to review the unaudited consolidated financial information for the six months ending June 30, 2022[167] - The company has complied with the corporate governance code as per the listing rules during the review period[163] - The company has maintained compliance with the relevant standards set forth in the standard code of conduct for directors[164] Shareholder Information - The total number of shares that can be issued under the 2021 share option plan is capped at 694,635,004 shares, representing 10% of the shares issued by the company at the adoption date[142] - As of June 30, 2022, the company’s director Yang Lijun holds 3,087,027,152 shares, which accounts for approximately 11.6% of the issued ordinary shares[146] - The company’s major shareholders include 富偉國際控股有限公司 with 3,087,027,152 shares, representing a significant portion of the issued share capital[149] - The company’s major shareholders also include 翠領國際投資有限公司 and 興誠投資控股有限公司, holding 51%, 35%, and 14% stakes respectively[151]

Financial Performance - For the year ended December 31, 2021, the group's revenue was HKD 7,800,000, down from HKD 22,400,000 in 2020, representing a decline of approximately 65.2%[6] - The group recorded a pre-tax loss of approximately HKD 341,100,000 for the year, compared to a loss of HKD 216,600,000 in 2020, indicating an increase in losses of about 57.5%[6] - The loss attributable to the owners of the company for the year was approximately HKD 326,300,000, compared to a loss of HKD 217,700,000 in the previous year, reflecting a year-over-year increase of about 49.9%[16] - The property development segment generated revenue of HKD 1,800,000, down from HKD 5,100,000 in 2020, marking a decrease of approximately 64.7%[7] - The hotel business segment recorded revenue of HKD 5,700,000 for the year ended December 31, 2021, down from HKD 13,500,000 in 2020, with a loss of HKD 17,700,000 compared to a loss of HKD 61,000,000 in 2020[22] - The group reported a net loss margin of (4,392.90)% for the year ended December 31, 2021, compared to (810.54)% in 2020[69] - Basic loss per share was (4.70) HK cents for the year ended December 31, 2021, compared to (3.13) HK cents in 2020[69] Assets and Liabilities - As of December 31, 2021, the group's non-current assets were valued at HKD 1,806,000,000, a decrease from HKD 1,851,200,000 in 2020[8] - The group's current assets increased to HKD 2,785,100,000 as of December 31, 2021, compared to HKD 2,159,700,000 in 2020, representing an increase of approximately 29%[8] - The group's current liabilities rose to HKD 3,471,000,000 as of December 31, 2021, compared to HKD 2,101,800,000 in 2020, indicating an increase of about 65%[8] - The group's total borrowings amounted to HKD 1,882,700,000 as of December 31, 2021, a decrease from HKD 1,930,100,000 in 2020[28] - The group recorded a total equity deficit of HKD (123,200,000) as of December 31, 2021, compared to total equity of HKD 207,500,000 in 2020[28] - The group's debt-to-equity ratio significantly increased to approximately 930% compared to the previous year's ratio[29] - The group's net current liabilities were approximately HKD 685.9 million, with a pre-tax loss of about HKD 341.1 million for the year ending December 31, 2021[36] Development Projects - The group has three ongoing development projects, with pre-sale rates of approximately 55.2%, 75.7%, and 51.9% for the respective projects as of 2021[7] - The German City project has a total saleable area of approximately 49,999 square meters, with 55.2% of the saleable area contracted as of December 31, 2021, and construction completion expected by June 30, 2022[17] - The Fuyuan Junting project has a total saleable area of 85,102 square meters, with 99.1% of phase one and 39.6% of phase two contracted as of December 31, 2021, with phase two expected to complete by the end of 2022[18] - The Fuyuan Plaza project has a total saleable area of 61,654 square meters, with 51.9% contracted as of December 31, 2021, and construction expected to be completed between Q2 2022 and 2024[18] - The group plans to expedite the handover of completed properties, involving a total saleable area of approximately 96,000 square meters and expected sales revenue of RMB 1.3 billion[36] Financial Commitments and Liabilities - The group has outstanding property development commitments and land acquisitions amounting to HKD 832 million as of December 31, 2021, up from HKD 390 million a year earlier[33] - Contingent liabilities as of December 31, 2021, were HKD 365 million, an increase from HKD 130.6 million in the previous year, primarily related to bank guarantees for mortgage loans[34] - Cash and cash equivalents as of December 31, 2021, were HKD 46.7 million, down from HKD 59.7 million the previous year[45] Corporate Governance - The board of directors has established an audit committee composed of three independent non-executive directors to review the financial reports[125] - The company has maintained compliance with the corporate governance code as of December 31, 2021, with some deviations noted[131] - The board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors[135] - The company has established various committees, including the Remuneration Committee, Audit Committee, Nomination Committee, and Executive Committee, to ensure effective governance[151] - The company has adopted a shareholder communication policy to ensure timely and accessible information for shareholders and potential investors[188] Human Resources - The total number of employees increased to 156 as of December 31, 2021, from 126 a year earlier, reflecting ongoing human resource development initiatives[39] - The group has implemented a comprehensive human resources training and development plan to meet current and future challenges[84] - The group offers performance-related rewards within a competitive salary framework[84] Market Environment - The business environment in mainland China remains uncertain due to ongoing COVID-19 impacts, trade disputes between China and the US, and geopolitical tensions, which are expected to affect property sales[48] - The company anticipates that projects currently under development will start generating revenue from 2022, which is expected to improve financial performance[48] Compliance and Risk Management - The board is responsible for ensuring the establishment and maintenance of effective risk management and internal control systems[177] - The company has implemented measures to ensure that insider information is handled appropriately and confidentially[181] - The company has not established an internal audit department, considering the scale and complexity of its operations[178]

Financial Performance - The company reported a revenue of HKD 8,160,000 for the six months ended June 30, 2021, a decrease of 94.4% compared to HKD 144,761,000 in the same period of 2020[19]. - The gross profit for the period was HKD 6,618,000, down from HKD 71,229,000, reflecting a significant decline in sales[19]. - The company incurred a loss of HKD 110,275,000 for the period, compared to a loss of HKD 18,158,000 in the previous year, indicating a worsening financial position[21]. - Basic loss per share was HKD 1.54, compared to HKD 0.35 in the prior period, highlighting increased losses on a per-share basis[17]. - The company reported a total comprehensive loss of HKD 107,462,000 for the period, compared to a loss of HKD 25,276,000 in the previous year[22]. - The group reported a loss of HKD 33,929,000 for the six months ended June 30, 2021, compared to a profit of HKD 27,996,000 in the same period of 2020[40]. - The company recorded a pre-tax loss of HKD 107,121 thousand for the six months ended June 30, 2021, compared to a loss of HKD 24,276 thousand for the same period in 2020[70]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 4,418,451,000, an increase from HKD 4,010,953,000 at the end of 2020[23]. - Non-current assets totaled HKD 1,911,548,000, up from HKD 1,851,243,000, indicating growth in long-term investments[23]. - The total current liabilities increased to HKD 2,503,939 thousand as of June 30, 2021, compared to HKD 2,101,821 thousand as of December 31, 2020, representing an increase of approximately 19.1%[24]. - The total non-current liabilities rose to HKD 1,814,507 thousand as of June 30, 2021, up from HKD 1,701,665 thousand as of December 31, 2020, indicating an increase of about 6.6%[24]. - The company’s total liabilities increased to HKD 4,318,446 thousand as of June 30, 2021, compared to HKD 3,803,486 thousand as of December 31, 2020, marking an increase of approximately 13.5%[24]. - The total amount of contract liabilities as of June 30, 2021, was HKD 1,278,063,000, compared to HKD 754,137,000 as of December 31, 2020, reflecting an increase[82]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 83,873 thousand, compared to HKD 167,679 thousand for the same period in 2020, reflecting a decrease of approximately 50%[29]. - The company reported a net cash outflow from investing activities of HKD 50,243 thousand for the six months ended June 30, 2021, compared to HKD 121,477 thousand for the same period in 2020, indicating a decrease of about 58.7%[29]. - The company’s financing activities resulted in a net cash outflow of HKD 46,583 thousand for the six months ended June 30, 2021, compared to a net cash inflow of HKD 5,664 thousand for the same period in 2020[28]. - The cash and cash equivalents at the end of the period increased to HKD 106,319 thousand, up from HKD 56,129 thousand at the beginning of the period, showing a net increase of HKD 51,866 thousand[30]. Revenue Breakdown - Revenue from property sales was HKD 454,000 for the six months ended June 30, 2021, compared to HKD 133,032,000 in the same period of 2020, indicating a decrease of about 99.6%[43]. - Revenue from health product sales was HKD 258,000 for the six months ended June 30, 2021, down from HKD 3,305,000 in the same period of 2020, reflecting a decline of approximately 92.2%[43]. - The group generated franchise income of HKD 7,189,000 for the six months ended June 30, 2021, compared to HKD 6,584,000 in the same period of 2020, showing an increase of about 9.2%[43]. Corporate Governance - The company maintains a high standard of corporate governance and has complied with the corporate governance code as of June 30, 2021[149]. - The board believes that having the same individual serve as both chairman and CEO provides strong leadership and effective decision-making for the group[149]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial information for the period ending June 30, 2021[159]. Future Outlook and Plans - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[19]. - The group anticipates stable income from ongoing real estate projects in Zhongshan, Zhuhai, and Chengdu, expected to complete between Q4 2021 and Q4 2022[133]. Employee and Shareholder Information - The group employed a total of 138 staff as of June 30, 2021, an increase from 126 staff as of December 31, 2020[132]. - The company has significant shareholdings, with major shareholders holding over 5% of the issued shares, including 富偉國際控股有限公司 with 3,087,027,152 shares, representing a substantial portion of the total[144].

[Company Information](index=2&type=section&id=Company%20Information) [Letter to Shareholders](index=4&type=section&id=Letter%20to%20Shareholders) This letter reviews the Group's 2020 performance, business segment overview, and future outlook, noting a narrowed pre-tax loss despite a revenue decline and overall loss 2020 Annual Key Financial Performance | Indicator | 2020 (HKD) | 2019 (HKD) | | :--- | :--- | :--- | | Revenue | 22,400,000 | 34,500,000 | | Loss before tax | 216,600,000 | 233,800,000 | | Loss attributable to owners of the Company | 217,700,000 | 202,400,000 | - Pre-tax loss narrowed mainly due to: (1) interest income from termination of land grant contract; (2) fair value gain on investment properties; and (3) reduced impairment loss on property, plant and equipment[6](index=6&type=chunk) Presale Status of Major Properties Under Development (as at December 31, 2020) | Project Name | Location | Contracted Sales as % of Saleable Units | | :--- | :--- | :--- | | German Town Project | Hengqin | 29.0% | | Fuyuan Juntin Project | Chengdu | 49.8% | | Fuyuan Plaza Project | Doumen | 39.9% | - The Board does not recommend the payment of any dividend for the financial year ended December 31, 2020[11](index=11&type=chunk) - Looking ahead to 2021, the Group believes the COVID-19 pandemic in mainland China is largely under control, but the global economy still faces profound impacts from the pandemic and geopolitical risks, with the Group continuing to monitor developments and adjust strategies[12](index=12&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=6&type=section&id=Business%20Review) This section details the Group's 2020 overall and segment business performance, highlighting losses in property development and hotel segments despite pre-sale progress and strategic acquisitions Segment Results Summary (For the year ended December 31, 2020) | Business Segment | Revenue (HKD) | Segment Loss (HKD) | | :--- | :--- | :--- | | Property Development | 5,100,000 | 54,600,000 | | Hotel Business | 13,500,000 | 61,000,000 | - During the year, the Group completed the acquisition of a subsidiary holding the "Fuyuan Plaza" project, bringing the total number of projects under development to three: Hengqin German Town, Chengdu Fuyuan Juntin, and Doumen Fuyuan Plaza[17](index=17&type=chunk)[18](index=18&type=chunk) Details of Projects Under Development and Presale Progress | Project Name | Location | Saleable Area (sq.m.) | Presale Ratio | Estimated Completion Time | | :--- | :--- | :--- | :--- | :--- | | German Town | Zhuhai Hengqin | 49,999 | 29% | Q4 2021 | | Fuyuan Juntin | Chengdu Pidu | 85,102 | 49.8% | Phase I: Q4 2021, Phase II: 2023 | | Fuyuan Plaza | Zhuhai Doumen | 61,654 | 39.9% | H2 2022 | [Major Acquisitions and Disposals](index=7&type=section&id=Major%20Acquisitions%20and%20Disposals) The only significant transaction this year was the acquisition of Yiwei International Investment Limited and its subsidiaries, aimed at expanding the Group's revenue streams and profitability - On June 29, 2020, the Company entered into an agreement with Director Mr. Yang Lijun to acquire his indirectly held Yiwei International for a consideration of **HKD 108.6 million**, with the acquisition completed on September 15, 2020[25](index=25&type=chunk) - The Target Group's primary asset is a piece of land located in Doumen District, Zhuhai City, China, planned for development into a commercial complex including office buildings, a five-star hotel, and a shopping center[25](index=25&type=chunk) [Key Risks and Uncertainties](index=7&type=section&id=Key%20Risks%20and%20Uncertainties) The Group identified five major risks: business, policy, third-party, COVID-19 pandemic, and foreign exchange, outlining corresponding monitoring and response strategies - Business Risk: Core business performance is affected by economic conditions and the property market[31](index=31&type=chunk) - Policy Risk: Business operations must comply with government policies and regulations, and violations may lead to penalties[32](index=32&type=chunk) - COVID-19 Risk: The pandemic has caused a short-term psychological impact on the property market, with revenue expected to be affected in the first half of 2021, and the Group will closely monitor and continuously assess its financial and operational impacts[34](index=34&type=chunk) - Foreign Exchange Risk: Major business is conducted in RMB, while the reporting currency is HKD, with RMB borrowings accounting for approximately **65.1%** of total borrowings as of year-end, and no foreign exchange hedging transactions entered into by the Group[35](index=35&type=chunk) [Review of Financial Position](index=9&type=section&id=Review%20of%20Financial%20Position) This section reviews the Group's financial position, highlighting a significant increase in total assets and liabilities, which caused the gearing ratio to surge from 230% to 930% due to substantial borrowings for acquisitions and property development projects Financial Position Overview (as at December 31) | Item | 2020 (thousand HKD) | 2019 (thousand HKD) | | :--- | :--- | :--- | | Non-current assets | 1,851,200 | 862,000 | | Current assets | 2,159,700 | 914,000 | | Current liabilities | 2,101,800 | 788,200 | | Non-current liabilities | 1,701,700 | 593,500 | | Total equity | 207,500 | 394,300 | - The gearing ratio (total interest-bearing borrowings/total equity) significantly increased from approximately **230%** at the end of 2019 to approximately **930%** at the end of 2020, mainly due to substantial interest-bearing borrowings for acquisitions and property development projects[39](index=39&type=chunk) - Contingent liabilities amounted to **HKD 130.6 million** (2019: **HKD 77 thousand**), primarily related to repurchase guarantees provided to banks for mortgage loans obtained by property buyers[42](index=42&type=chunk) - As of year-end, the Group had a total of **126 employees**, a decrease from **135 employees** in 2019[46](index=46&type=chunk) [Outlook](index=10&type=section&id=Outlook) The Group is confident in China's long-term economic development, believing the acquisition of the Zhuhai Doumen land plot will expand revenue sources and enhance competitiveness, while continuing to monitor the pandemic and adjust strategies for stable growth - The Group is confident in the Chinese economy and believes the acquisition of Dewei International (holding the Zhuhai Doumen land plot) will expand the Group's revenue sources, strengthen profitability, and enhance competitiveness[48](index=48&type=chunk) - The Group will continue to achieve stable growth by enhancing internal management capabilities, optimizing operational management models, and continuously upgrading products[48](index=48&type=chunk) [Biographies of Directors and Senior Management](index=10&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section provides detailed personal biographies of the company's executive directors, non-executive directors, independent non-executive directors, and senior management team members, including their age, educational background, professional experience, and appointments within the Group and other companies [Report of the Directors](index=13&type=section&id=Report%20of%20the%20Directors) [Business Review (Analysis of Key Performance Indicators)](index=14&type=section&id=Business%20Review%20%28Analysis%20of%20Key%20Performance%20Indicators%29) This section analyzes the Group's business performance through key financial indicators, noting a deterioration in profitability and liquidity and a significant increase in the gearing ratio in 2020 Key Performance Indicators | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Profitability** | | | | Net loss margin | (969.39)% | (642.20)% | | Return on equity | (72.04)% | (43.40)% | | **Shareholder Return** | | | | Loss per share (basic) | (3.13) HK cents | (2.91) HK cents | | **Liquidity and Debt** | | | | Current ratio | 1.03 | 1.16 | | Gearing ratio | 930.3% | 233.3% | [Environmental, Social and Governance](index=15&type=section&id=Environmental%2C%20Social%20and%20Governance) This section outlines the Group's policies and practices regarding Environmental, Social, and Governance (ESG), confirming its commitment to sustainable operations, compliance with environmental regulations, and good stakeholder relationships, with no significant violations reported during the year - The Board is fully responsible for formulating ESG strategies, with the senior management team responsible for management, delegated to various departments for execution[76](index=76&type=chunk) - The Group strictly complies with relevant laws on environmental protection, solid waste disposal, noise, air, and water pollution, with no significant violations during the year[78](index=78&type=chunk) - The Group clarifies anti-corruption policies through employee handbooks and ensures high standards in food safety, customer privacy protection, and supplier management for its hotel business[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) [Major Customers and Suppliers](index=18&type=section&id=Major%20Customers%20and%20Suppliers) This year, the Group's revenue and procurement concentration were high, with the top five customers contributing over 78.7% of revenue and the top five suppliers accounting for over 39.9% of total purchases - Revenue from the top five customers accounted for over **78.7%** of total revenue, with the largest customer accounting for over **62.3%**[100](index=100&type=chunk) - Purchases from the top five suppliers accounted for over **39.9%** of total purchases, with the largest supplier accounting for over **19.8%**[100](index=100&type=chunk) [Directors' Interests in Competing Businesses](index=19&type=section&id=Directors%27%20Interests%20in%20Competing%20Businesses) The report discloses the interests held by Directors Mr. Yang Lijun and Mr. Wang Juicheng in other companies that may compete with the Group's business, explaining that these businesses are managed by independent teams and the Group operates independently of these private companies - Mr. Yang Lijun holds interests in Yang's Development Limited and Fuhua Investment Holdings Limited, both engaged in property investment and development in China[107](index=107&type=chunk) - Mr. Wang Juicheng serves as a director or senior executive in Liancheng Finance Company Limited (Hong Kong money lending business) and Gaomen Group Company Limited (Hong Kong club, entertainment, and restaurant business)[107](index=107&type=chunk) [Public Float](index=22&type=section&id=Public%20Float) The report confirms that as of March 18, 2021, the company's issued shares maintained a public float of not less than 25%, complying with listing rule requirements - Based on public information and the directors' knowledge, as of March 18, 2021, the Company met the Listing Rules requirement of a public float of not less than **25%**[127](index=127&type=chunk) [Corporate Governance Report](index=23&type=section&id=Corporate%20Governance%20Report) [Compliance with Corporate Governance Code](index=24&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The report states that for the year ended December 31, 2020, the company applied and complied with the principles and provisions of the Corporate Governance Code, with three deviations primarily concerning the Chairman and Chief Executive roles being held by the same person, and some directors being unable to attend general meetings due to the pandemic - Deviation from Code Provision A.2.1: The roles of Chairman and Chief Executive are not separated, with Mr. Yang Lijun appointed as Chief Executive on February 5, 2021, which the Board believes provides strong leadership and efficient decision-making[136](index=136&type=chunk) - Deviations from Code Provisions A.6.7 and E.1.2: Some executive and non-executive directors were unable to attend the general meetings in May and September 2020 due to the COVID-19 pandemic[137](index=137&type=chunk)[147](index=147&type=chunk) [Board Committees](index=28&type=section&id=Board%20Committees) The Board has four committees: Remuneration, Audit, Nomination, and Executive, with each committee chaired by an independent non-executive director to ensure independence and effective oversight, and this section details their composition, terms of reference, and key work in 2020 Directors' Meeting Attendance Record for 2020 | Director Name | Board | Remuneration Committee | Audit Committee | Nomination Committee | AGM | EGM | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yang Lijun (Chairman) | 8/10 | - | - | - | 0/1 | 0/1 | | Yu Shunhui (Non-executive) | 6/10 | - | - | - | 0/1 | 0/1 | | Wang Juicheng (Non-executive) | 10/10 | - | - | - | 1/1 | 1/1 | | Chan Hoi Ning (Independent Non-executive) | 10/10 | 2/2 | 3/3 | 2/2 | 1/1 | 0/1 | | So Wai Lam (Independent Non-executive) | 9/10 | 2/2 | 3/3 | 2/2 | 1/1 | 0/1 | | Sung Yat Chun (Independent Non-executive) | 8/10 | 2/2 | 3/3 | 2/2 | 0/1 | 1/1 | - The Remuneration Committee, comprising three independent non-executive directors, held two meetings during the year, primarily evaluating executive directors' performance and reviewing remuneration policies and benefits[171](index=171&type=chunk)[172](index=172&type=chunk) - The Audit Committee, comprising three independent non-executive directors, held three meetings during the year, primarily reviewing annual and interim results, accounting policies, considering auditor's remuneration, and reviewing risk management and internal control systems[175](index=175&type=chunk)[176](index=176&type=chunk) - The Nomination Committee, comprising three independent non-executive directors, held two meetings during the year, primarily reviewing Board structure and diversity policy, assessing independent directors' independence, and making recommendations on director appointments[179](index=179&type=chunk)[185](index=185&type=chunk) [Risk Management and Internal Control](index=33&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board confirms its responsibility to ensure the establishment and maintenance of effective risk management and internal control systems, with external audit professionals performing reviews that found no material deficiencies in 2020 - The Board is responsible for ensuring the establishment and maintenance of appropriate risk management and internal control systems, which are designed to manage rather than eliminate risks[197](index=197&type=chunk) - The Company has not established an internal audit department, as the Board believes there is no immediate need given the Group's business scale and nature, with risk management and internal control reviews performed by external professionals[199](index=199&type=chunk) - The 2020 review report on risk management and internal control systems was submitted to the Audit Committee and the Board, finding no material deficiencies, and the Board considers the existing systems effective and adequate[200](index=200&type=chunk) [External Auditor's Remuneration](index=35&type=section&id=External%20Auditor%27s%20Remuneration) This section discloses the service fees paid to the external auditor for the year ended December 31, 2020 External Auditor's Remuneration for 2020 | Service Type | Fees (thousand HKD) | | :--- | :--- | | Audit fees for the Group's auditor | 923 | | Tax services and others | – | | **Total** | **923** | [Independent Auditor's Report](index=38&type=section&id=Independent%20Auditor%27s%20Report) The auditor, Zhongzheng Tianheng Certified Public Accountants Limited, issued an unqualified opinion on the Group's consolidated financial statements for the year ended December 31, 2020, deeming them to present a true and fair view of the Group's financial position, performance, and cash flows, while highlighting seven key audit matters [Key Audit Matters](index=39&type=section&id=Key%20Audit%20Matters) The auditor identified seven matters that were most significant in the audit, involving significant management judgments and estimates, including impairment assessments of various assets, fair value measurements, and accounting for business combinations - Impairment assessment of trade receivables: Involves assessing impairment for total trade receivables of **HKD 92.61 million**, with an impairment loss of **HKD 91.87 million** recognized[234](index=234&type=chunk) - Impairment assessment of property, plant and equipment, right-of-use assets, and licenses: Impairment assessment performed on assets primarily derived from the hotel business[238](index=238&type=chunk)[240](index=240&type=chunk) - Impairment assessment of properties under development: Impairment assessment performed on properties under construction with a carrying amount of approximately **HKD 1.499 billion**[243](index=243&type=chunk)[244](index=244&type=chunk) - Impairment of properties under development for sale: Assessment of net realizable value for properties under development for sale with a carrying amount of **HKD 1.683 billion**[248](index=248&type=chunk)[250](index=250&type=chunk) - Valuation of investment properties: Fair value valuation performed on investment properties with a carrying amount of **HKD 24.13 million**[253](index=253&type=chunk)[255](index=255&type=chunk) - Business combination: Review of accounting treatment for the acquisition of Yiwei International Investment Limited during the year[267](index=267&type=chunk) - Impairment assessment of goodwill: Impairment test performed on goodwill of approximately **HKD 50.29 million** arising from the acquisition[271](index=271&type=chunk)[272](index=272&type=chunk) [Audited Consolidated Financial Statements](index=48&type=section&id=Audited%20Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=49&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the Group's operating results for the 2020 fiscal year, showing total revenue of **HKD 22.36 million** and an annual loss of **HKD 216.8 million**, with **HKD 217.7 million** attributable to owners of the Company Consolidated Statement of Profit or Loss Summary (For the year ended December 31) | Item | 2020 (thousand HKD) | 2019 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 22,360 | 34,466 | | Gross profit | 15,168 | 23,360 | | Loss before tax | (216,593) | (233,773) | | Loss for the year | (216,755) | (221,339) | | Loss attributable to owners of the Company | (217,714) | (202,376) | | Basic loss per share | (3.13) HK cents | (2.91) HK cents | [Consolidated Statement of Financial Position](index=50&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement reflects the Group's financial position as of December 31, 2020, with total assets increasing to **HKD 4.011 billion** and total liabilities to **HKD 3.803 billion**, resulting in a decrease in net assets (total equity) from **HKD 394 million** to **HKD 207 million** Consolidated Statement of Financial Position Summary (as at December 31) | Item | 2020 (thousand HKD) | 2019 (thousand HKD) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 1,851,243 | 862,032 | | Total current assets | 2,159,710 | 914,024 | | **Total assets** | **4,010,953** | **1,776,056** | | **Liabilities and Equity** | | | | Total current liabilities | 2,101,821 | 788,194 | | Total non-current liabilities | 1,701,665 | 593,544 | | **Total liabilities** | **3,803,486** | **1,381,738** | | **Net assets** | **207,467** | **394,318** | | Equity attributable to owners of the Company | 152,739 | 342,423 | | Non-controlling interests | 54,728 | 51,895 | [Consolidated Statement of Cash Flows](index=53&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes the annual cash inflows and outflows, showing net cash generated from operating activities of **HKD 314 million**, net cash used in investing activities of **HKD 249 million**, and net cash used in financing activities of **HKD 41.47 million**, resulting in a net increase in cash and cash equivalents of **HKD 22.67 million** Consolidated Statement of Cash Flows Summary (For the year ended December 31) | Item | 2020 (thousand HKD) | 2019 (thousand HKD) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 313,540 | (108,635) | | Net cash used in investing activities | (249,401) | (156,272) | | Net cash (used in)/generated from financing activities | (41,465) | 266,367 | | Net increase in cash and cash equivalents | 22,674 | 1,456 | | Cash and cash equivalents at beginning of year | 56,129 | 54,273 | | **Cash and cash equivalents at end of year** | **82,839** | **56,129** | [Notes to the Consolidated Financial Statements (Selected)](index=55&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements%20%28Selected%29) The notes to the financial statements provide detailed explanations and supplementary information for items in the financial statements, including accounting policies, segment information, details of various assets and liabilities, related party transactions, and risk management Segment Revenue and Loss (2020) | Business Segment | Revenue (thousand HKD) | Segment Loss (thousand HKD) | | :--- | :--- | :--- | | Property Development | 5,136 | (54,550) | | Hotel Business | 13,465 | (60,995) | | Other Businesses | 3,759 | (1,831) | | **Total** | **22,360** | **(117,376)** | - On June 29, 2020, the Group agreed to acquire Yiwei International, indirectly held by Director Mr. Yang Lijun, for a consideration of **HKD 108.6 million**, paid by issuing promissory notes, with the acquisition completed on September 15, resulting in **HKD 50.29 million** of goodwill[633](index=633&type=chunk)[642](index=642&type=chunk) - As of year-end, the Group's contingent liabilities amounted to **HKD 130.6 million**, primarily related to repurchase guarantees provided to banks for mortgage loans to property buyers[658](index=658&type=chunk) - As of year-end, the Group had contracted but unprovided property development expenditures and land acquisition commitments of approximately **HKD 390 million**[659](index=659&type=chunk) [Schedule of Major Properties](index=134&type=section&id=Schedule%20of%20Major%20Properties) This list details specific information on completed properties held for sale and properties under development by the Group as of December 31, 2020, including location, use, site area, saleable gross floor area, and the Group's ownership interest Schedule of Major Properties Under Development (as at December 31, 2020) | Name/Location | Use | Site Area (sq.m.) | Saleable GFA (sq.m.) | Ownership Interest (%) | | :--- | :--- | :--- | :--- | :--- | | Star City Garden | Residential/Commercial | 151,675 | - | 55 | | German Town (Zhuhai Hengqin) | Research/Development | 60,340 | 49,999 | 70 | | Fuyuan Juntin (Chengdu) | Residential/Commercial | 56,707 | 85,102 | 100 | | Fuyuan Plaza (Zhuhai Doumen) | Commercial | 48,653 | 61,654 | 100 | [Five-Year Financial Summary](index=135&type=section&id=Five-Year%20Financial%20Summary) This section provides a summary of the Group's key financial data for five fiscal years from 2016 to 2020, including performance (revenue, loss) and financial position (assets, liabilities, equity), illustrating the Group's financial performance trends in recent years Five-Year Performance Summary (For the year ended December 31) | (thousand HKD) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 22,360 | 34,466 | 18,086 | 30,785 | 88,535 | | Loss before tax | (216,593) | (233,773) | (133,846) | (35,766) | (464,917) | | Loss for the year | (216,755) | (221,339) | (136,180) | (19,757) | (400,405) | Five-Year Assets, Liabilities and Equity Summary (as at December 31) | (thousand HKD) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | 4,010,953 | 1,776,056 | 1,521,264 | 864,664 | 710,301 | | Total liabilities | 3,803,486 | 1,381,738 | 895,550 | 147,436 | 171,136 | | Net assets | 207,467 | 394,318 | 625,714 | 717,228 | 539,165 |

Financial Performance - The company reported revenue of HKD 144,761,000 for the six months ended June 30, 2020, a significant increase from HKD 16,913,000 in the same period of 2019, representing a growth of approximately 757%[6]. - Gross profit for the same period was HKD 71,229,000, compared to HKD 10,340,000 in 2019, indicating a gross margin improvement[6]. - The company incurred a loss before tax of HKD 9,301,000, a substantial reduction from a loss of HKD 52,004,000 in the prior year, reflecting a decrease in losses by approximately 82%[6]. - The net loss for the period was HKD 18,158,000, compared to HKD 51,307,000 in 2019, marking a decrease in net losses by about 65%[6]. - The basic loss per share improved to HKD (0.35) from HKD (0.71) year-over-year[9]. - The company reported a total revenue of HKD 69,464,000 for the six months ended June 30, 2020, compared to HKD 778,892,000 in the same period of 2019, indicating a significant decline[35]. - The company recorded a loss of HKD 484,113,000 for the six months ended June 30, 2020, compared to a loss of HKD 49,652,000 in the same period of 2019[35]. - The company reported a pre-tax loss of HKD 24,276,000 for the six months ended June 30, 2020, compared to a loss of HKD 49,652,000 for the same period in 2019[61]. - The financial expenses for the six months ended June 30, 2020, were HKD 30,353,000, down from HKD 32,062,000 in 2019[55]. - The company reported a loss attributable to shareholders of HKD 24,276,000 for the period[61]. Assets and Liabilities - Total assets increased to HKD 2,114,407,000 as of June 30, 2020, up from HKD 1,776,056,000 at the end of 2019, representing a growth of approximately 19%[18]. - Current assets rose to HKD 1,194,300,000, compared to HKD 914,024,000 in 2019, indicating an increase of about 31%[18]. - The company’s total liabilities increased to HKD 1,745,365,000, up from HKD 1,382,274,000 in the previous year, reflecting a rise of approximately 26%[19]. - The company’s total non-current assets were HKD 920,100,000 as of June 30, 2020, compared to HKD 919,900,000 as of December 31, 2019[99]. - The company’s total liabilities increased to HKD 1,745,400,000 as of June 30, 2020, from HKD 1,381,700,000 as of December 31, 2019, resulting in a debt-to-equity ratio of 249.4%[102][105]. - The group’s total liabilities increased to HKD 52,914,000 from HKD 48,040,000 in the previous year[55]. Cash Flow - The company reported a net cash generated from operating activities of HKD 167,679,000 for the six months ended June 30, 2020, compared to a net cash used of HKD 49,850,000 in the same period of 2019[39]. - The company experienced a net cash outflow from investing activities of HKD 121,477,000 for the six months ended June 30, 2020, slightly improved from HKD 129,727,000 in the previous year[39]. - The financing activities generated a net cash inflow of HKD 5,664,000 in the first half of 2020, a significant decrease from HKD 193,978,000 in the same period of 2019[39]. - The total cash and cash equivalents at the end of the period increased to HKD 106,319,000, up from HKD 56,129,000 at the beginning of the period[39]. Market and Business Operations - The company continues to explore market expansion opportunities and new product development strategies to enhance future growth prospects[6]. - The company is primarily engaged in property development and hotel operations in the People's Republic of China[41]. - The company confirmed that the sales area of two new property projects sold during the review period was approximately 15,585 square meters, compared to only 62 square meters from the previous year[90]. - The company has entered into a memorandum of understanding for the proposed sale of a 70% interest in land in Zhuhai, China, with a deposit of HKD 250,000,000 received[81]. - The company plans to acquire 100% equity of a real estate development company for HKD 108,600,000, with the payment structured through the issuance of promissory notes at an annual interest rate of 9%[79]. - The company plans to acquire Yiwai International Investment Limited for HKD 108,600,000, which will enhance its revenue sources and competitiveness[95]. Employee and Governance - The total number of employees decreased from 135 on December 31, 2019, to 109 as of June 30, 2020, reflecting the company's ongoing human resources policies[110]. - The company is committed to maintaining high standards of corporate governance and has adhered to the principles of the corporate governance code[136]. - The company has confirmed compliance with the standard code of conduct for securities trading by all directors during the reporting period[138]. - The company established a new audit committee consisting of three independent non-executive directors to review the interim report for the six months ending June 30, 2020[145]. Future Outlook - The company remains optimistic about China's future economic outlook, supported by favorable government policies and a stable industry environment[114]. - The company will continue to monitor the impact of COVID-19 on its financial and operational performance while enhancing internal management capabilities[114]. - The company plans to adjust its marketing strategies and development plans to align with the overall interests of the company and its shareholders[112].

Financial Performance - The group's revenue for the year ended December 31, 2019, was HKD 34,500,000, compared to HKD 18,100,000 in 2018, representing an increase of approximately 90%[9] - The group recorded a loss of HKD 221,300,000 for the year, compared to a loss of HKD 136,200,000 in 2018, indicating a worsening of approximately 62%[9] - The property development segment achieved sales revenue of HKD 20,900,000 in 2019, up from HKD 3,700,000 in 2018, reflecting a significant increase of approximately 465%[9] - The hotel business segment recorded operating income of HKD 13,600,000 for the year ended December 31, 2019, down from HKD 14,400,000 in 2018, with a segment loss of HKD 85,900,000 compared to a loss of HKD 43,300,000 in 2018[22] - The company experienced a net loss per share of HK$2.91 in 2019, compared to a loss of HK$1.78 in 2018[73] - The increase in financial costs was attributed to loans taken for property development projects[71] Asset and Liability Management - As of December 31, 2019, the group's non-current assets amounted to HKD 862,000,000, down from HKD 1,072,700,000 in 2018, while current assets increased to HKD 914,000,000 from HKD 448,600,000[37] - The total interest-bearing borrowings as of December 31, 2019, were HKD 919,900,000, an increase from HKD 589,900,000 in 2018, with 71.8% denominated in RMB[38] - The group's equity totalled HKD 394,300,000 as of December 31, 2019, down from HKD 625,700,000 in 2018, resulting in a significant increase in the debt-to-equity ratio to 233.3% from 94.3%[41] - The current ratio was 1.16, down from 1.62 in 2018, indicating a decline in liquidity[74] - The debt-to-asset ratio increased significantly to 233.3% in 2019 from 94.3% in 2018, reflecting a higher level of financial leverage[74] Business Development and Strategy - The group plans to invest more resources into a healthcare project utilizing German technology, expected to contribute positively in the near future[17] - The group is actively seeking government approvals to develop remaining land at the Starry Garden site, with a land area of 227 acres and a book value of HKD 55,400,000[21] - The group anticipates that the remaining units of the new property projects will be launched in the market in 2020[9] - The management remains confident in the future prospects of China and aims to leverage existing property assets for maximum shareholder benefit[17] - The global economic environment is expected to remain volatile due to intensified competition and the impact of COVID-19, which may limit the group's business development in China[50] - The group is committed to exploring new business opportunities, particularly in the healthcare sector, leveraging German technology to enhance existing property development projects[51] Risk Management - The group identified major risks including economic conditions and compliance with government regulations, which could impact financial performance[29] - The group anticipates that revenue and income for the first half of 2020 will be affected by the COVID-19 pandemic, despite effective control measures in China[33] Human Resources - As of December 31, 2019, the total number of employees increased to 135 from 51 in 2018, reflecting a significant growth in workforce[49] - Total compensation costs, including director remuneration, amounted to HKD 17,801,000 for the year ended December 31, 2019, up from HKD 12,851,000 in 2018[49] - The group continues to implement human resources training and development plans to equip employees with necessary skills for current and future challenges[91] Corporate Governance - The company has maintained high standards of corporate governance, focusing on transparency, accountability, and independence[147] - The independent non-executive directors contributed extensive professional knowledge and skills to the board's decision-making processes[153] - The company has adopted various improvement procedures in line with the corporate governance code applicable to the reporting period[148] - The company has complied with the listing rules regarding the board composition, ensuring at least three independent non-executive directors are present[154] - The roles of the chairman and CEO are separated to ensure a balance of power and authority within the company[164] Environmental and Social Responsibility - The group has implemented an environmental protection plan, including water recycling from swimming pools and energy-saving targets incorporated into annual performance evaluations[78] - The hotel operator has maintained air pollutant and greenhouse gas emissions within statutory limits set by the Environmental Protection Bureau[79] - The group strictly adheres to environmental laws and regulations, with no significant violations reported during the year[79] - The group has established a supplier code of conduct to ensure responsible procurement practices aligned with its ethical standards[88] Shareholder Information - The company has a dividend policy that is discretionary, depending on financial performance, operational needs, future business plans, and external economic factors[133] - The company confirmed that it has met the public float requirement of at least 25% of its issued shares as of April 24, 2020[139] - The company has not declared any dividends for the fiscal year ended December 31, 2019, consistent with 2018[16] Board and Committees - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[153] - The board held nine meetings during the year to discuss overall strategy and financial performance[157] - The audit committee reviewed the accounting principles and practices adopted by the group, including the audited financial report for the year ending December 31, 2019[140] - The remuneration committee held three meetings in 2019, evaluating executive directors' performance and reviewing current remuneration policies[170] - The nomination committee was formed in April 2012 and is responsible for recommending the appointment and removal of directors[178]

Financial Performance - The company reported revenue of HKD 16,913,000 for the six months ended June 30, 2019, compared to HKD 16,913,000 in the same period of 2018[8]. - Gross profit for the period was HKD 10,340,000, resulting in a gross margin of approximately 61.1%[8]. - The company incurred an operating loss before tax of HKD 52,004,000, slightly improved from a loss of HKD 53,380,000 in the previous year[8]. - The net loss for the period was HKD 51,307,000, compared to a net loss of HKD 56,462,000 in the same period last year, indicating a reduction in losses[8]. - For the six months ended June 30, 2019, the company reported a total revenue of HKD 69,464,000, a decrease from HKD 88,000,000 in the same period last year, representing a decline of approximately 21.0%[47]. - The company recorded a loss attributable to owners of the company of HKD (29,026,000) for the six months ended June 30, 2019, compared to a loss of HKD (28,199,000) in the prior year[47]. - The group reported a loss of HKD 52,004 million before tax for the six months ended June 30, 2019[84]. - The group reported a pre-tax loss of HKD 49,652,000 for the six months ended June 30, 2019, compared to a loss of HKD 48,230,000 in 2018[101]. - The group recorded a pre-tax loss of HKD 52,000,000 for the six months ended June 30, 2019, slightly improved from a loss of HKD 53,400,000 in the same period of 2018[114]. Assets and Liabilities - Total assets increased to HKD 1,696,714,000 as of June 30, 2019, up from HKD 1,521,264,000 at the end of 2018[13]. - Current assets totaled HKD 787,824,000, significantly higher than HKD 448,593,000 in the previous year[13]. - The company’s total liabilities increased to HKD 626,018,000, compared to HKD 619,121,000 at the end of 2018[30]. - The total assets increased by HKD 687,000 due to the adoption of HKFRS 16, with right-of-use assets increasing by HKD 55,517,000[65]. - The company reported a significant increase in trade payables and other payables, which rose by HKD 452,000 during the reporting period[65]. - Total liabilities increased by HKD 687 million[75]. - The group had total liabilities of HKD 127,673,000 as of June 30, 2019, compared to HKD 98,548,000 at the end of 2018[108]. - The group's total interest-bearing borrowings were approximately HKD 787,700,000 as of June 30, 2019, compared to HKD 641,100,000 as of December 31, 2018, indicating an increase of 22.8%[127]. - The debt-to-equity ratio as of June 30, 2019, was 137.3%, up from the previous ratio as of December 31, 2018, primarily due to significant borrowings for property development projects[127]. Cash Flow - The net cash used in operating activities was HKD (49,850,000), indicating a significant cash outflow compared to the previous period[49]. - The company generated a net cash inflow from financing activities of HKD 193,978,000, which contributed to an overall increase in cash and cash equivalents of HKD 14,401,000[49]. - As of June 30, 2019, the cash and bank balances stood at HKD 69,070,000, down from HKD 93,793,000 at the end of the previous period[49]. - The company’s cash and cash equivalents stood at HKD 69,070,000, compared to HKD 54,273,000 at the end of 2018[14]. Revenue Segmentation - Revenue from external customers for the six months ended June 30, 2019, was HKD 16,913 million, compared to HKD 8,236 million for the same period in 2018, representing a growth of 105.5%[88]. - The total revenue for the property development segment was HKD 10,508 million for the six months ended June 30, 2019[84]. - Revenue from a single customer contributed over 10% to the group's total revenue, amounting to HKD 7,612,000 for the six months ended June 30, 2019, compared to HKD 6,598,000 in 2018[89]. - The hotel business segment generated revenue of HKD 6,900,000 for the six months ended June 30, 2019, compared to HKD 7,300,000 in the same period of 2018, reflecting a decline of 5.5%[116]. Corporate Governance and Management - The company has maintained compliance with corporate governance standards, with a commitment to accountability and transparency[151]. - The company’s board of directors includes significant shareholders, with Yang Lijun holding 2,830,195,152 shares, representing a substantial ownership stake[144]. - The company has adhered to the corporate governance code, with some deviations noted regarding attendance at the annual general meeting[151]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors during the reporting period[153]. - Mr. Wan has been reappointed as the executive director and CEO effective April 15, 2019, with a monthly director's fee of HKD 160,000 plus an annual discretionary bonus[155]. - Mr. Yu was appointed as the executive director and co-chairman of the board effective August 29, 2019, with a monthly director's fee of HKD 150,000 plus an annual discretionary bonus[156]. - Mr. Yang's title changed to co-chairman after Mr. Yu's appointment, maintaining his annual salary of HKD 1,800,000 and annual discretionary bonus[157]. Future Plans and Developments - The company plans to focus on expanding its market presence and developing new products to drive future growth[5]. - The company continues to focus on the sale of completed unsold properties and actively seeks profitable investment opportunities in property development[115]. - The company plans to develop a large project with a total construction area of approximately 100,000 square meters, with an average land cost of RMB 3,700 per square meter[140]. - The company has acquired two premium residential land parcels in Sichuan, China, expected to commence pre-sale in Q4 2019, with completion and delivery of residential units targeted for the end of 2020[140]. - The company aims to complete the acceptance filing for the new residential project by Q4 2020[140]. Employee and Shareholder Information - The total number of employees increased to 168 as of June 30, 2019, from 51 as of December 31, 2018, reflecting the company's expansion efforts[131]. - The issued and paid-up share capital remained at 6,946,350,040 shares with a par value of HKD 0.01 each as of June 30, 2019[109]. - As of June 30, 2019, no stock options were granted under the new stock option plan, and there were no unexercised stock options[141]. - The total number of shares available for issuance under the plan is capped at 193,164,814 shares, which is 10% of the company's issued shares as of the adoption date[143]. - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the six months ending June 30, 2019[158].

Financial Performance - For the year ended December 31, 2018, the group recorded a loss of HKD 136.2 million, compared to a loss of HKD 19.8 million in 2017[13]. - The group's revenue for 2018 was HKD 18.1 million, down from HKD 30.8 million in 2017, with a pre-tax loss of HKD 133.8 million compared to HKD 35.8 million in 2017[22]. - The property development segment reported a loss of HKD 34.2 million in 2018, compared to a loss of HKD 3.1 million in 2017, with sales of HKD 3.7 million down from HKD 5.4 million[23]. - The hotel business segment recorded a loss of HKD 43.2 million in 2018, compared to a loss of HKD 15.9 million in 2017, with operating income of HKD 14.4 million down from HKD 25.4 million[24]. - The company's net loss margin for 2018 was (752.94%), compared to (64.18%) in 2017[64]. - The return on equity for 2018 was (20.28%), a decline from (3.15%) in 2017[64]. - The current ratio decreased to 1.62 in 2018 from 11.0 in 2017, indicating a deterioration in liquidity[65]. - The debt-to-asset ratio increased to 94.3% in 2018 from 13.4% in 2017, reflecting increased financial leverage[65]. Assets and Liabilities - As of December 31, 2018, the company's non-current assets amounted to HKD 1,072,700,000, up from HKD 546,400,000 on December 31, 2017, while current assets increased to HKD 448,600,000 from HKD 318,200,000[32]. - The company's total liabilities as of December 31, 2018, were HKD 895,500,000, significantly higher than HKD 147,400,000 on December 31, 2017, resulting in a debt-to-equity ratio of 94.3%[36]. - The company has committed property development expenditures and land acquisition obligations totaling HKD 667,700,000 as of December 31, 2018, compared to none in the previous year[38]. - The company held cash and cash equivalents totaling RMB 381,500,000 and HKD 155,500,000 as of December 31, 2018, compared to RMB 80,000,000 in the previous year[35]. Dividend and Shareholder Information - The group does not recommend any dividend payment for the fiscal year ended December 31, 2018, consistent with 2017[14]. - The board of directors has the discretion to declare or recommend dividends based on the group's financial performance, operational funding needs, future business plans, and external economic factors[121]. - The company raised approximately HKD 198,200,000 from a share placement in August 2017, with HKD 175,000,000 allocated for the acquisition of land in Zhuhai[44]. - The company issued convertible notes with a principal amount of HKD 160,000,000 at an annual interest rate of 12% for the acquisition of the remaining 50% stake in Fuyuan Real Estate Holdings Limited[122]. Business Operations and Market Outlook - The group faced increased losses primarily due to unfavorable RMB exchange rate fluctuations, depreciation, and increased administrative expenses[22]. - The group has no revenue from Hong Kong during the year, with income primarily related to hotel operations and property development in other regions of China[25]. - The group remains confident in the steady development of the real estate market in the Greater Bay Area despite global economic uncertainties[19]. - The group has successfully acquired land reserves in Hengqin, Zhuhai, and two residential plots in Chengdu, expecting significant benefits from these developments in the next one to two years[19]. Corporate Governance - The company has three independent non-executive directors who are members of the audit committee, ensuring representation of shareholder interests[95]. - The company is committed to avoiding potential conflicts of interest and ensuring transparency in its operations[95]. - The company has established a share option scheme for its directors, promoting alignment with shareholder interests[98]. - The company has established appropriate insurance arrangements for directors against potential legal liabilities[125]. - The company has complied with the corporate governance code as per the listing rules, with some deviations explained[135]. Environmental and Social Responsibility - The group maintains its office operations in Hong Kong with limited environmental impact, implementing energy-saving measures and promoting resource efficiency among employees[69]. - The group has invested in the Maoming Xilong International Hotel in Guangdong, China, ensuring compliance with air pollutant and greenhouse gas emission limits set by the Environmental Protection Bureau[69]. - The group has established a supplier code of conduct to promote responsible procurement practices, ensuring suppliers adhere to corporate responsibility standards[77]. - The group has not identified any significant violations of environmental laws and regulations during the year, maintaining compliance with local environmental laws[70]. Employee and Operational Matters - As of December 31, 2018, the total employee benefits expenditure was HKD 17,002,000, an increase from HKD 7,387,000 in 2017[47]. - The group is committed to providing a safe and healthy work environment for all employees, with measures in place to manage air quality and emissions[69]. - The group has established standard operating procedures to handle customer complaints, ensuring high levels of customer satisfaction[76]. Risk Management and Internal Controls - The Board is responsible for ensuring the establishment and maintenance of effective risk management and internal control systems to assess risks associated with achieving the company's objectives[196]. - The company did not establish an internal audit department in 2018 but engaged external professionals to review the effectiveness of its risk management and internal control systems[196]. - The Audit Committee is tasked with overseeing the integrity of financial reporting and internal control systems[174].