Financial Performance - The total revenue for the fiscal year ending December 31, 2023, was approximately HKD 298 million, an increase of about 9.2% compared to HKD 273 million in the previous year[11]. - The profit attributable to equity holders for the fiscal year was approximately HKD 5.7 million, up 18.8% from HKD 4.8 million in the previous year[11]. - Basic and diluted earnings per share increased to HKD 1.96 in 2023 from HKD 1.64 in 2022, representing a growth of 19.5%[33]. - Net asset value per share attributable to equity holders rose to HKD 7.19 in 2023 from HKD 5.35 in 2022, an increase of 34.5%[33]. - The current ratio improved slightly to 0.87 in 2023 from 0.85 in 2022[33]. - The debt-to-asset ratio decreased significantly to 167.9% in 2023 from 612.4% in 2022, indicating improved financial stability[34]. - Cash and bank balances increased to approximately HKD 62 million in 2023 from HKD 60.4 million in 2022, primarily due to increased cash generated from operations[34]. Business Operations - The revenue from the food and beverage trading and sales business in mainland China increased significantly by approximately 100.6% compared to the previous year, turning from a loss to a profit[11]. - The revenue from the frozen warehouse and related services business decreased by approximately 3.3% compared to the previous year[11]. - The company plans to enhance the operational efficiency of its frozen warehouse facilities and effectively manage costs while adjusting business strategies flexibly[9]. - The company aims to diversify its customer base to attract clients with greater demand for warehousing and logistics services[13]. - The company has noted an increasing demand for warehousing and logistics services from food grocery distributors, supermarkets, and frozen food stores during the pandemic[13]. - The group recorded a stable performance in business volume and profitability in the cold storage and logistics segment for 2023[17]. - The group successfully improved a high-margin product in collaboration with a well-known supermarket, achieving profitability in the food and beverage trading and sales segment, which had previously recorded a loss[19]. - The group plans to continue optimizing its food and beverage distribution business by focusing on high-margin wholesale channels and discontinuing low-margin distribution channels[27]. - The group is reallocating resources to higher-margin segments and core businesses, terminating non-core B2C operations in mainland China and Hong Kong[19]. - The group anticipates gradual recovery in its cold storage and logistics business in Hong Kong and food and beverage distribution in mainland China due to internal restructuring and resource reallocation[25]. - The group is actively seeking opportunities to expand its customer base in the cold storage and logistics sector by providing value-added services[26]. - The group has implemented strict cost control measures to maintain profitability in the food and beverage segment amid changing consumer demands[19]. - The group recognizes the impact of macroeconomic conditions and is prepared to adjust strategies to mitigate market risks[22]. Employee and Workforce - As of December 31, 2023, the total number of full-time employees in Hong Kong and mainland China was approximately 170 and 30, respectively, compared to 180 and 40 in 2022, indicating a decrease in workforce[46]. - The total employee-related costs for the year ended December 31, 2023, amounted to approximately HKD 66,095,000, down from HKD 69,455,000 in 2022, reflecting a reduction of about 3.4%[46]. - The company has maintained competitive employee compensation levels, with annual reviews and various benefits provided to employees[46]. Governance and Compliance - The company has adopted a set of effective governance principles and procedures to systematically review the operations of different departments[108]. - The board of directors is responsible for leading and monitoring the company, with three committees established: Audit Committee, Nomination Committee, and Remuneration Committee[109]. - The company has maintained appropriate directors and officers liability insurance for its directors and senior management throughout the year[97]. - The company has not established any management contracts related to the management of all or any significant part of its business during the year[98]. - The remuneration policy for employees is based on merit, qualifications, and capabilities[99]. - The company has confirmed the independence of all current independent non-executive directors[87]. - The company has not entered into any significant transactions or arrangements involving directors or their related entities during the year[93]. - The company has adopted an independent opinion policy effective from January 1, 2022, to ensure the board receives independent advice and information[113]. - The company has established a nomination policy requiring at least three independent non-executive directors, with specific qualifications and tenure requirements[115]. - The company has arranged training courses for directors to enhance their knowledge and skills, ensuring compliance with corporate governance code C.1.4[128]. - The company has provided appropriate insurance for directors to cover potential liabilities, in line with corporate governance code C.1.8, with annual reviews of the coverage[129]. - The company has not appointed a chairman as of December 31, 2023, which does not comply with corporate governance code C.2.7, but believes this will not negatively impact decision-making[133]. Shareholder Communication - The company emphasizes transparent communication with shareholders and investors, utilizing various channels for inquiries and suggestions[190]. - The company encourages shareholder participation in annual general meetings, ensuring that all directors and senior management actively attend[196]. - The company has adopted a shareholder communication policy to provide timely and comprehensive information to shareholders[195]. - The company’s annual report and interim reports provide extensive information about its business operations[194]. - The company ensures that sensitive information is disclosed in accordance with listing rules, maintaining equal access for all shareholders[194]. - The company has a dedicated website section for the latest updates on its business and operations[195]. - The company’s independent directors are available to address questions during the annual general meeting, ensuring transparency in decision-making[197]. - The company must provide shareholders with reasonable notice for general meetings, typically at least 21 days for annual meetings and 14 days for other meetings[199]. - The company is required to send a circular to shareholders simultaneously (or prior) to issuing the notice for the general meeting to approve transactions[200]. - The company must provide supplementary information to shareholders at least 10 business days before the relevant general meeting if any important information arises after the circular is issued[200]. - The annual report, including annual accounts and auditor's report, must be sent to shareholders at least 21 days before the annual general meeting and no later than 4 months after the financial year-end[200]. - For the first six months of each financial year, the company must send a mid-term report to shareholders no later than three months after the end of that six-month period[200]. - The company must send proxy forms along with the meeting notice to all eligible voters for all resolutions to be voted on at the meeting[200].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 298,386,000, an increase of 9.2% compared to HKD 273,308,000 in 2022[3] - Revenue from food and beverage trading and sales increased significantly to HKD 67,551,000, up 94.8% from HKD 34,680,000 in the previous year[3] - Gross profit for the year was HKD 51,876,000, a decrease of 12.9% from HKD 59,524,000 in 2022[3] - Profit before tax rose to HKD 15,233,000, compared to HKD 4,760,000 in the previous year, marking an increase of 219.5%[4] - Total comprehensive income for the year was HKD 14,897,000, up from HKD 3,560,000 in 2022, representing a 318.5% increase[4] - Basic and diluted earnings per share increased to HKD 1.96, compared to HKD 1.64 in the previous year, reflecting a growth of 19.5%[4] - Total revenue for the year ended December 31, 2023, was HKD 298,125,000, an increase from HKD 273,042,000 in 2022, representing a growth of approximately 9.5%[22] - The group reported a pre-tax profit of HKD 15,233,000 for the year ended December 31, 2023, compared to HKD 4,760,000 in the previous year, indicating a significant increase in profitability[20] - Profit attributable to equity holders for the year ended December 31, 2023, was approximately HKD 5.7 million, up 18.8% from HKD 4.8 million in 2022[34] - The food and beverage trading and sales business turned from a loss to a profit, with revenue increasing by approximately 100.6% compared to 2022[34] Assets and Liabilities - Non-current assets decreased to HKD 81,939,000 from HKD 146,279,000 in 2022, a decline of 44.0%[6] - Current assets increased to HKD 170,599,000, up from HKD 118,927,000 in 2022, representing a growth of 43.5%[6] - The company reported a net current liability of HKD 25,136,000, compared to HKD 21,581,000 in the previous year[6] - Total equity increased to HKD 20,849,000 from HKD 18,676,000 in 2022, an increase of 11.7%[8] - Trade receivables from third parties decreased to HKD 44.5 million in 2023 from HKD 53.2 million in 2022[30] - The current ratio improved slightly to 0.87 in 2023 from 0.85 in 2022[52] - The debt-to-asset ratio decreased significantly to 167.9% in 2023 from 612.4% in 2022, indicating improved financial stability[52][53] Income and Revenue Sources - Revenue from cold storage and related services was HKD 230,574,000, while food and beverage trading and sales generated HKD 67,551,000 for the year ended December 31, 2023[20] - The group’s total income from customer contracts under HKFRS 15 was HKD 298,125,000 for 2023, compared to HKD 273,042,000 in 2022, showing an increase of approximately 9.2%[22] - The group’s income from logistics services was HKD 25,875,000 for the year ended December 31, 2023, slightly down from HKD 26,468,000 in 2022[22] - The group’s total other income for the year was HKD 10,088,000, compared to HKD 9,712,000 in the previous year, reflecting a modest increase[24] - The group recognized government subsidies of approximately HKD 97,000,000 related to COVID-19, a decrease from HKD 4,114,000 in 2022[24] Strategic Initiatives - The group’s management has reclassified the loan services segment as a non-reportable segment, reflecting a strategic shift in resource allocation towards more profitable divisions[17] - The group plans to optimize its food and beverage distribution business in mainland China by focusing on high-margin wholesale channels[46] - The group has ceased non-core B2C operations in mainland China and Hong Kong to reallocate resources to higher-margin segments[40] - The group is implementing strict cost control measures to maintain profitability in the food and beverage segment[40] - The group aims to enhance operational efficiency and comply with environmental standards through upgrades to its facilities[45] - The group is actively seeking high-margin overseas products for trade in mainland China and vice versa[46] - The group recognizes the impact of macroeconomic conditions and is adjusting its strategies to mitigate market risks[42] - The logistics and frozen warehouse segment is expected to grow as industry standards for services increase, attracting more potential investors[45] Governance and Compliance - The company has adopted the corporate governance code and has not appointed a chairman as of December 31, 2023, which deviates from the governance code requirements[67] - The audit committee consists of three independent non-executive directors and has reviewed the audited consolidated financial statements for the year[71] - The company’s financial statements for the year ended December 31, 2023, have been agreed upon by its auditors, confirming the figures presented[72] - The company plans to continue reviewing its board structure and appoint suitable candidates for the chairman role if necessary[68] - The company has a written securities trading policy that all directors confirmed compliance with during the year[69] Employee and Operational Metrics - As of December 31, 2023, the total number of full-time employees in Hong Kong and mainland China was approximately 170 and 30, respectively, compared to 180 and 40 in 2022[63] - The total employee-related costs for the year ended December 31, 2023, amounted to approximately HKD 66,095,000, down from HKD 69,455,000 in 2022[63] Dividends and Share Capital - The company did not declare any dividends for the current year, consistent with the previous year[29] - The board of directors did not recommend the payment of dividends for the year ended December 31, 2023, consistent with the previous year[65] - The total issued share capital remained unchanged at HKD 2,901,104, divided into 290,110,400 ordinary shares as of December 31, 2023[58] Miscellaneous - The company sold a non-operating subsidiary during the year, with no other significant acquisitions or disposals reported[59] - The company has no specific future plans for significant investments or capital assets as of December 31, 2023[61] - There were no contingent liabilities reported for the year ending December 31, 2023[62] - The company has maintained stable rental costs for its cold storage operations, which remain a major cost item[37] - The company aims to diversify its customer base to meet the growing demand for warehousing and logistics services[36] - The company has noted an increasing demand for warehousing and logistics services from food grocery distributors and supermarkets during the pandemic[36] - The company recorded a net loss from foreign exchange of HKD 97, compared to a loss of HKD 222 in 2022[6] - Financial expenses decreased to HKD 10.1 million in 2023 from HKD 13.6 million in 2022[7] - Cash and bank balances increased to approximately HKD 62 million in 2023 from HKD 60.4 million in 2022, primarily due to increased cash generated from operations[53] - The company has no significant foreign exchange risk and did not use any financial instruments for hedging purposes in 2023[57] - The annual report containing all required information will be sent to shareholders and published on the company's website at an appropriate time[73]

Financial Performance - The group's total revenue for the six months ended June 30, 2023, was approximately HKD 162 million, an increase of about 21.8% compared to HKD 133 million in the same period last year[7]. - The group recorded a profit of approximately HKD 21.4 million for the six months ended June 30, 2023, compared to a profit of approximately HKD 2.3 million in the same period last year, representing an increase of about HKD 19.1 million[7]. - Profit before tax for the same period was HKD 21.394 million, significantly up from HKD 2.326 million in 2022, representing an increase of 820.5%[38]. - The company reported a net profit of HKD 21.394 million for the period, compared to HKD 2.326 million in the previous year, marking a substantial growth[39]. - The company reported a total comprehensive income of HKD 20.702 million for the period, compared to HKD 1.650 million in the previous year, an increase of 1165.5%[39]. - The group reported a net profit attributable to equity holders of HKD 11,833,000 for the six months ended June 30, 2023, compared to HKD 2,326,000 in the same period of 2022, indicating a significant increase in profitability[48]. Revenue Segments - Revenue from the food and beverage trading and sales business increased by approximately 178.2% compared to the same period last year, primarily due to effective sales strategies implemented in mainland China[7]. - The total revenue for the group was HKD 161,894,000, with segment revenues of HKD 118,670,000 from cold storage and related services, HKD 43,093,000 from food and beverage trading, and HKD 131,000 from loan services[54]. - Revenue from frozen warehouse services was HKD 104,585,000, up from HKD 103,007,000, while logistics and packaging services revenue increased to HKD 12,511,000 from HKD 11,974,000[58]. Cost Management - Administrative expenses were reduced by approximately 9.6% due to cost-saving measures implemented by the group[7]. - The group has observed a stable rental cost for the cold storage operations, which remains a major cost item, while pricing adjustments have been made for most customers[11]. - The group has noted a slight decrease in storage volume from customers, presenting challenges in passing on some related costs through price increases[11]. Strategic Changes - The group has terminated non-core B2C business units in mainland China to reallocate resources to higher-margin businesses and core operations[15]. - The group aims to optimize its food and beverage trading and sales business by focusing on developing higher-profit wholesale channels[15]. - The group has ceased operations of the e-commerce grocery platform "Anpin Life" in Hong Kong due to anticipated declines in online shopping demand[15]. Financial Position - The group's cash and bank balances as of June 30, 2023, were approximately HKD 61.4 million, a slight increase from HKD 60.4 million as of December 31, 2022[22]. - The group's debt-to-equity ratio as of June 30, 2023, was approximately 131.3%, a significant decrease from 612.4% as of December 31, 2022[22]. - The company’s total assets as of June 30, 2023, were HKD 237.311 million, compared to HKD 265.206 million at the end of 2022, indicating a decrease of 10.5%[41]. - The company’s net asset value increased to HKD 26.654 million from HKD 18.676 million, a growth of 42.6%[42]. - The group’s total liabilities decreased to HKD 210,657,000 as of June 30, 2023, from HKD 246,530,000 as of December 31, 2022, indicating a reduction of approximately 14.6%[57]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 44,824,000, a decrease from HKD 46,149,000 in the same period of 2022, representing a decline of approximately 2.8%[47]. - The financing activities resulted in a net cash outflow of HKD 42,698,000, which is slightly higher than the outflow of HKD 42,293,000 in the previous year[47]. - The group has unutilized bank financing of HKD 30,000,000 available for use as of June 30, 2023, indicating sufficient liquidity for operational needs[48]. Stock Options and Share Capital - The company’s issued share capital was 60,000,000 shares as of June 30, 2023, following a capital reorganization[89]. - The total number of unexercised stock options under the 2015 Plan is 23,208,832, unchanged from December 31, 2022[20]. - The maximum number of shares available for issuance under the 2015 Plan is 17,406,624, representing 6% of the total issued shares as of June 30, 2023[96]. - The total number of stock options granted to the five highest-paid individuals (excluding directors) is 11,604,416[100]. Governance and Compliance - The company has complied with the corporate governance code, except for the absence of a chairman during the reporting period[130]. - The audit committee has reviewed the unaudited consolidated results for the six months ended June 30, 2023, and found them compliant with applicable accounting standards[135]. - The company has engaged an independent consultant to assess the adequacy and effectiveness of its internal control systems[138]. - The risk management and internal control systems are deemed sufficient for the current operating environment, with no identified weaknesses[142].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 DAIDO GROUP LIMITED 大同集團有限公司* （於百慕達註冊成立之有限公司） （股份代號：00544） 截至二零二三年六月三十日止六個月之 未經審核中期業績 大同集團有限公司（「本公司」）董事會（「董事會」）謹此呈報本公司及其附屬公司（統稱「本 集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合中期業績，連同二零二二年 同期之比較數字。本中期財務業績已由本公司審核委員會審閱，但未經本公司核數師審閱。 簡明綜合損益及其他全面收益報表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 (未經審核) (未經審核) 收入 4 －提供冷凍倉庫及相關服務 118,670 116,693 －食品及飲料貿易及銷售 43,093 16,075 －貸款服務之利息收入（採用實際利率法 ...

Financial Performance - The total revenue for the fiscal year ended December 31, 2022, was approximately HKD 273 million, an increase of about 16.2% compared to HKD 235 million in the previous year[10]. - The company recorded a profit of approximately HKD 4.8 million for the fiscal year 2022, a significant turnaround from a loss of approximately HKD 80.3 million in the previous year, representing a 106.0% improvement[10]. - The revenue from the frozen warehouse and related services business increased by approximately 27.4% compared to the previous year[10]. - The company received government subsidies of approximately HKD 4.1 million under the employment support scheme from the Hong Kong government[10]. - The group anticipates a rebound in Hong Kong's economy in 2023, which may boost consumer spending and confidence[23]. - The group expects gradual recovery in its frozen warehouse and logistics business in Hong Kong and food and beverage distribution in mainland China through internal restructuring and resource reallocation[23]. Operational Efficiency - The company plans to enhance the operational efficiency of its frozen warehouse facilities and effectively manage costs as economic activities normalize[8]. - The group has increased the efficiency of temperature-controlled warehouse areas in response to rising demand from food grocery distributors and supermarkets due to the COVID-19 pandemic[13]. - The group has relocated the storage of alcohol and tobacco products to improve operational efficiency and reduce costs[15]. - The group has upgraded the cooling system in the Kwai Hei Street warehouse to improve operational efficiency and comply with environmental standards[24]. - The company is focusing on high-margin product lines and adopting more efficient and cost-effective sales channels in its food and beverage trading business in mainland China[8]. Market Conditions and Risks - The ongoing COVID-19 pandemic and trade tensions have negatively impacted trade activities in Hong Kong, affecting the overall performance of the warehousing and logistics industry[12]. - The company recognizes the ongoing risks from the COVID-19 pandemic and has implemented measures to mitigate operational and market risks[21]. - In 2022, the group faced significant increases in frozen warehouse rental costs, which may be challenging to pass on to customers amid a weak economic environment in Hong Kong[13]. Corporate Governance - The company has adopted a high standard of corporate governance practices, which are regularly reviewed and updated[109]. - The board of directors consists of 8 members, including 2 executive directors and 6 non-executive directors, with a focus on maintaining independence[111]. - The company has established a risk management policy to enhance its ability to manage risks effectively[109]. - The board is responsible for implementing an appropriate corporate governance structure, overseeing the group's business and performance[110]. - The company has arranged training courses for directors to enhance their knowledge and skills, ensuring compliance with corporate governance code C.1.4[129]. Shareholder Communication - The company emphasizes transparent communication with shareholders and investors, providing timely and comprehensive information through various channels[192]. - The company has adopted a shareholder communication policy to ensure clear and reliable information is provided to shareholders[193]. - The company encourages shareholders to submit proposals for special meetings and ensures compliance with relevant regulations[190]. - The company emphasizes the importance of the annual general meeting (AGM) for the fiscal year, with all directors and senior executives actively attending[194]. Employee and Remuneration Policies - The total employee-related costs for the year ended December 31, 2022, amounted to approximately HKD 69,455,000, down from HKD 78,568,000 in 2021[47]. - The remuneration policy aims to provide competitive and fair compensation to attract and retain high-quality employees, balancing fixed and variable pay[164]. - Executive directors' remuneration includes basic salary, annual bonuses, other benefits, and retirement benefits, with salaries reviewed annually[161]. - Non-executive directors' remuneration includes director's fees but excludes any performance-related pay, reviewed annually against comparable companies[169]. Financial Position - As of December 31, 2022, the company's basic and diluted earnings per share were HKD 1.64, a significant improvement from a loss of HKD 27.67 in 2021[33]. - The company's current ratio decreased to 0.85 in 2022 from 1.25 in 2021, indicating a tighter liquidity position[33]. - The total debt to total assets ratio improved to 0.93 in 2022 from 0.96 in 2021, reflecting better leverage management[33]. - Cash and bank balances as of December 31, 2022, were approximately HKD 60.4 million, slightly up from HKD 59.9 million in 2021, primarily due to increased cash generated from operations[33]. Strategic Initiatives - The company diversified its customer base to attract new clients, including supermarkets and frozen food stores, to mitigate risks during the pandemic[7]. - The online grocery shopping platform "Urban Mart" was launched in Hong Kong in 2021, with plans to expand sales channels to offline pop-up stores in shopping centers in 2022[18]. - The newly launched online B2C grocery shopping platform "Urban Mart" is expected to increase membership registrations and reach a broader retail customer base in Hong Kong[26]. Audit and Compliance - The audit committee, established on January 12, 2000, oversees the financial reporting system, internal audit functions, risk management, and internal control systems[171]. - The external auditor for the group was changed to Zhongjun Zhonghuan (Hong Kong) CPA Limited, effective from October 27, 2022, due to a disagreement on audit fees with Deloitte[180]. - The total fees paid to external auditors for the year ended December 31, 2022, amounted to HKD 1,536,000, a decrease of 40.4% from HKD 2,571,000 in the previous year[181]. - The audit committee met with the external auditor twice during the year ended December 31, 2022, to discuss audit plans and financial reporting matters[173].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 DAIDO GROUP LIMITED 大同集團有限公司* （在百慕達成立為法團，而其成員的法律責任是有限度的） （股份代號：00544） 截至二零二二年十二月三十一日止年度之 全年業績公告 大同集團有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬公司 （「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合業績，連同二零二一年 同期之比較數字如下： 綜合損益及其他全面收益報表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 3 - 提供冷凍倉庫及相關服務 238,362 187,109 - 食品及飲料貿易及銷售 34,680 47,671 - 貸款服務之利息收入(使用實際利率法計算) 266 288 ...

Financial Performance - The total revenue for the six months ended June 30, 2022, was approximately HKD 133 million, an increase of about 26.7% compared to approximately HKD 105 million in the same period last year[5]. - The group recorded a profit of approximately HKD 2.3 million, a significant improvement from a loss of approximately HKD 39 million in the same period last year, representing a loss reduction of 105.9%[5]. - Gross profit for the same period was HKD 29,323,000, significantly up from HKD 7,893,000, reflecting a gross margin improvement[37]. - The company reported a profit before tax of HKD 2,326,000, a turnaround from a loss of HKD 38,786,000 in the previous year[37]. - The company reported a net profit attributable to owners of HKD 2,326,000 for the six months ended June 30, 2022, compared to a loss of HKD 38,990,000 in the previous period[48]. - Total comprehensive income for the period was HKD 1,650,000, compared to a total comprehensive loss of HKD 38,773,000 in the prior period[48]. - The basic and diluted earnings per share for the period were HKD 0.8 cents, compared to a loss of HKD 13.4 cents per share in the prior year[38]. - The basic and diluted earnings per share for the period were HKD 0.008, a significant recovery from a loss per share of HKD 0.134 in the previous year[64]. Revenue Sources - The main source of income is from the operation of cold storage and related services, which has been impacted by the COVID-19 pandemic and trade tensions, leading to operational inefficiencies and deferred income[7]. - Revenue from cold storage and related services was HKD 116,693,000, up 42.4% from HKD 81,914,000 in the previous year[54]. - Revenue from food and beverage trading decreased to HKD 16,075,000, down 29.5% from HKD 22,848,000 in the prior year[54]. - The group reported a segment profit of HKD 17,145,000 from cold storage services, compared to a segment loss of HKD 24,134,000 in the previous year[55]. Cost Management - The group has implemented strict cost control measures over the past two years to maintain profitability in its food and beverage trading segment[12]. - Employee-related costs for the six months totaled HKD 34,056,000, down from HKD 40,881,000 in the same period last year, indicating a reduction of 16.5%[35]. - The company incurred a total of HKD 42,293,000 in net cash used in financing activities during the six months ended June 30, 2022[47]. Assets and Liabilities - The group's cash and bank balances as of June 30, 2022, were approximately HKD 64.8 million, an increase from HKD 59.9 million as of December 31, 2021[19]. - As of June 30, 2022, total assets less current liabilities amounted to HKD 161,719,000, down from HKD 217,792,000 at the end of 2021[41]. - The company’s lease liabilities decreased to approximately HKD 117,400,000 from HKD 144,900,000 as of December 31, 2021[31]. - Total liabilities decreased to HKD 278,545,000 from HKD 310,897,000 in the previous period[57]. - The company’s current liabilities net amount was HKD 10,254,000, primarily due to the reclassification of bank borrowings of HKD 35,000,000 from non-current liabilities[48]. Strategic Initiatives - The group has launched an online B2C e-commerce grocery shopping platform named "Urban Mart," which aims to reach retail customers and sell various daily products[13]. - The group has expanded the temperature-controlled area of its warehouse in Kwai Hing to meet the increasing demand for storage and logistics services during the pandemic[9]. - The group has terminated several low-margin distribution channels to focus resources on higher-margin channels in its food and beverage trading business[12]. - The group continues to seek opportunities in the logistics sector and diversify its customer base to meet the demand for refrigerated facilities during the pandemic[16]. - The group aims to enhance its logistics services in Hong Kong, responding to increasing industry standards and government support[16]. Risk Management and Internal Control - The board is responsible for maintaining an effective risk management and internal control system to achieve the company's objectives and ensure reasonable assurance against material misstatements or losses[117]. - The internal control measures include regular meetings of executive directors and senior management to review the financial and operational performance of key subsidiaries[119]. - An independent internal control consultant has been appointed to evaluate the adequacy and effectiveness of the risk management and internal control systems of several subsidiaries[117]. - As of June 30, 2022, the board believes that the company has sufficient risk management and internal control procedures to meet current operational needs[119]. - The existing risk management and internal control systems are deemed effective and adequate, with ongoing reviews and updates planned as necessary[119]. Share Capital and Financing - The company underwent a capital restructuring in March 2022, consolidating every ten shares into one and reducing the par value per share from HKD 0.10 to HKD 0.01[27][29]. - The company raised approximately HKD 11,600,000 from the subscription of 468,800,000 new shares at a price of HKD 0.0248 per share[109]. - The net proceeds of HKD 11,500,000 from the subscription are allocated as follows: 69% for general working capital and 31% for repaying bond interest expenses[111]. - The company has a bank financing of HKD 3,500,000 secured against HKD 1,700,000 in bank deposits, with approximately HKD 1,410,000 utilized as of June 30, 2022[81]. Government Support and Subsidies - The company received government subsidies amounting to HKD 2,745,000 during the current reporting period[58]. Management and Governance - The board of directors has not appointed a chairman during the reporting period, believing that collective decision-making by the board is sufficient[113]. - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2022, and confirmed compliance with applicable accounting standards and regulations[116]. - The company has adopted a written securities trading policy for directors, ensuring compliance with the standards set out in the listing rules[114].

Financial Performance - The total revenue for the fiscal year ended December 31, 2021, was approximately HKD 235 million, a decrease of about 7.7% compared to HKD 255 million in the previous year[13]. - The company recorded a loss of approximately HKD 80.3 million for the fiscal year, an increase of 97.8% from a loss of HKD 40.6 million in the previous year[13]. - The increase in loss was primarily attributed to the cessation of government subsidies under the COVID-19 employment support scheme, a one-time loss from the sale of an associate company, and a decline in revenue and gross margin in the trading business in mainland China[13]. - Operating costs for the frozen warehouse and logistics business have significantly impacted the company's operating profit margin due to increased rental costs and additional expenses for health and safety measures[18]. - The company reported a basic and diluted loss per share of HK$ (27.7) for the year ended December 31, 2021, compared to HK$ (16.2) in 2020[40]. - The company's current ratio improved to 1.25 in 2021 from 0.83 in 2020, indicating better short-term financial health[40]. - The total liabilities to total assets ratio increased to 0.96 in 2021 from 0.80 in 2020, reflecting a higher level of debt[40]. - The company has a bank balance and cash of approximately HK$ 59.9 million as of December 31, 2021, down from HK$ 69.8 million in 2020[41]. - The company has extended the maturity of bonds totaling HK$ 90 million for two years, indicating ongoing financial restructuring efforts[42]. - The company’s retained earnings included paid-in surplus of HKD 84,239,000 and accumulated losses of HKD 528,250,000 as of December 31, 2021[76]. Business Operations and Strategy - The company faced challenges in the frozen warehouse and logistics business due to reduced demand from the food and beverage sector, impacted by strict government regulations on dining[9]. - The company diversified its customer base to attract new clients needing storage and logistics services during the crisis, including supermarkets and frozen food stores[8]. - The company optimized warehouse operations to improve efficiency and reduce losses, addressing rising operational costs due to enhanced food safety measures[9]. - The company plans to continue enhancing the operational efficiency of its frozen warehouse facilities and effectively manage costs to increase returns[10]. - The company has restructured its internal operations and adjusted its product mix to focus on high-margin retail products in mainland China[9]. - The company has expanded its temperature-controlled warehouse area in Kwai Shing Street to meet the growing demand for storage and logistics services during the pandemic, with operations starting in Q3 2021[16]. - The company signed a service agreement for an additional frozen warehouse facility in Tsing Yi in Q4 2021 to address increasing customer storage needs[16]. - The company has implemented strict cost control measures to maintain profitability in its food and beverage trading segment, terminating several low-margin wholesale channels[20]. - A new B2C business segment and a beverage product named "Attitude Planet" were launched in April 2021, targeting the younger generation through online and offline distribution channels[20]. - The company has introduced an online grocery shopping platform "Urban Mart" in Hong Kong, aimed at reaching retail customers with a variety of daily products[21]. - The company has ceased providing new financial resources to its non-core loan business, reallocating resources to more profitable segments[22]. - The company anticipates gradual recovery in its frozen warehouse and logistics business in Hong Kong and food and beverage distribution business in mainland China as the global economy improves[30]. - The company plans to continue diversifying its customer base by engaging more supermarkets and frozen food retailers to meet the strong demand for refrigerated facilities during the pandemic[31]. Risk Management and Governance - The company recognizes ongoing risks from the pandemic, geopolitical tensions, and changing monetary policies, which may affect demand for its products and services[29]. - The company has established a risk management policy to enhance its risk management capabilities[126]. - The board is responsible for maintaining an effective risk management and internal control system, which is reviewed semi-annually by the audit committee[186]. - The audit committee reviewed the risk management and internal control review report and the audited consolidated financial statements for the fiscal year ending December 31, 2021[176]. - The company has adopted a whistleblowing policy since March 28, 2012, to encourage employees to report any misconduct or potential violations, with no reports received during the review year[187]. - The company has implemented a series of internal control measures, including enhanced reporting channels for senior management, to improve risk management and internal control systems[187]. - The company has a comprehensive communication policy to ensure transparency and compliance with regulatory requirements, including adherence to guidelines issued by the Securities and Futures Commission[188]. Corporate Governance - The board of directors emphasizes the importance of corporate governance for the company's success and long-term shareholder benefits[126]. - The board consists of three committees: Audit Committee, Nomination Committee, and Remuneration Committee, which assist in monitoring senior management functions[127]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance with all relevant provisions[126]. - The company has confirmed the independence of all current independent non-executive directors[105]. - The nomination committee, established in June 2005, includes three independent non-executive directors and is responsible for recommending all director appointments and reappointments[147]. - The company has not appointed a chairman as of December 31, 2021, which has resulted in non-compliance with corporate governance code A.2.7[143]. - The company’s board members have participated in continuous professional development through seminars and relevant reading materials[139]. - The remuneration committee provides recommendations on director remuneration based on the company's operating performance and market statistics[120]. - The audit committee was established on January 12, 2000, in accordance with guidelines from the Hong Kong Institute of Certified Public Accountants[171]. - The external auditor, Deloitte Touche Tohmatsu, was recommended for reappointment by the audit committee for the fiscal year ending December 31, 2021[176]. Shareholder Information - The company did not recommend any dividend for the year ending December 31, 2021, consistent with the previous year[74]. - The company’s dividend policy was adopted by the board and became effective on January 1, 2019[199]. - The dividend policy aims to balance shareholder interests and prudent capital management[199]. - Any proposed final dividend must be approved by shareholders at the annual general meeting and cannot exceed the amount recommended by the board[199]. - The board may also consider declaring special dividends outside of interim or final dividends[200]. - The company will periodically review and reassess the effectiveness of the dividend policy[200]. - Any amendments to the dividend policy must be considered and approved by the board[200].

Financial Performance - Total revenue for the six months ended June 30, 2021, was approximately HKD 105 million, a decrease of about 22% compared to HKD 135 million in the same period last year[5] - The group recorded a loss of approximately HKD 39 million for the period, compared to a loss of approximately HKD 26 million in the same period last year[5] - Total revenue for the six months ended June 30, 2021, was HKD 104,906,000, a decrease of 22.3% compared to HKD 135,075,000 for the same period in 2020[39] - The company reported a loss before tax of HKD 38,786,000, compared to a loss of HKD 26,430,000 for the same period in 2020, indicating a worsening financial position[39] - The company reported a net loss of HKD 38,990,000 for the six months ended June 30, 2021, compared to a loss of HKD 26,430,000 for the same period in 2020[48] - The basic and diluted loss per share for the period was HKD 1.34, compared to HKD 1.09 in the previous year, reflecting a 22.9% increase in loss per share[41] - The company recognized an impairment loss of HKD 7,500,000 related to a loan to an associate, which was not present in the previous year[39] - The company reported a segment loss of HKD 28,274,000 for the six months ended June 30, 2021, compared to a loss of HKD 16,018,000 in the same period of 2020[55] - The company reported a loss of HKD 38,990,000 for the six months ended June 30, 2021, compared to a loss of HKD 26,430,000 for the same period in 2020, representing a 47.5% increase in losses year-over-year[67] Revenue Breakdown - Revenue from frozen warehouse and related services was HKD 81,914,000, down from HKD 83,885,000, while food and beverage trading revenue dropped significantly to HKD 22,848,000 from HKD 51,000,000[39] - Revenue from cold storage and related services was HKD 81,914,000, down 2.3% from HKD 83,885,000 in the previous year[55] - Revenue from food and beverage trading dropped significantly to HKD 22,848,000, a decrease of 55.2% from HKD 51,000,000 in the prior year[54] Operational Developments - The group is converting two floors of its warehouse into a cold storage facility, expected to be operational in Q3 2021, to meet the growing demand for storage and logistics services[10] - A new B2C business segment was launched in April 2021, featuring a beverage product called "Attitude Planet," targeting the younger generation[13] - An online grocery shopping platform named "Urban Mart" was launched in Hong Kong, aimed at reaching retail customers with a variety of products[14] - The group has implemented strict cost control measures to maintain profitability in its food and beverage trading segment due to weak consumer demand during the pandemic[13] - The logistics business remains stable, supporting warehouse clients despite increased operational costs due to the pandemic[11] - The group is diversifying its customer base to attract clients with higher demand for storage and logistics services[10] - The group is focusing on e-commerce solutions to access a larger consumer base in mainland China and Hong Kong[20] Financial Position - As of June 30, 2021, the group's cash and bank balances were approximately HKD 45.1 million, down from HKD 69.8 million as of December 31, 2020[21] - The debt-to-equity ratio as of June 30, 2021, was approximately 110.7%, an increase from 68.4% as of December 31, 2020[21] - Total non-current assets decreased to HKD 266,119,000 from HKD 317,664,000, indicating a reduction of 16.2%[43] - Current assets also declined to HKD 122,238,000 from HKD 140,871,000, a decrease of 13.3%[43] - The company’s total liabilities increased to HKD 173,508,000 from HKD 169,651,000, showing a slight rise of 2.0%[45] - The company’s total equity attributable to owners decreased to HKD 49,683,000 as of June 30, 2021, from HKD 87,756,000 at the end of the previous period[46] - The company’s total assets decreased to HKD 388,357,000 as of June 30, 2021, from HKD 458,535,000 at the end of 2020, reflecting a decline of 15.3%[58] - Total liabilities also decreased to HKD 335,511,000 from HKD 367,620,000, a reduction of 8.7%[58] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2021, was HKD 16,674,000, an increase from HKD 15,247,000 in the previous year[47] - Total cash and cash equivalents at the end of the period were HKD 45,067,000, down from HKD 59,013,000 a year earlier[47] - The company incurred financing cash outflows of HKD 42,625,000, compared to HKD 71,844,000 in the previous year, indicating a reduction in financing costs[47] - The company has extended the maturity dates of two bonds totaling HKD 20,000,000 to November and December 2023, addressing liquidity risks[48] - The company’s management believes that it has sufficient working capital to meet cash flow requirements for the next twelve months[48] Risk Management and Governance - The board believes that the company has sufficient risk management and internal control procedures to meet its operational needs in the current environment[132] - The company has engaged an independent professional consultant to assess the adequacy and effectiveness of its risk management and internal control systems[131] - The risk management and internal control system evaluation plan focuses on reviewing operations in mainland China, compliance risk management, financial reporting, and follow-up on previous recommendations[131] - The board has not identified any issues that would indicate a breach in the risk management and internal control systems[132] - The company has maintained compliance with the corporate governance code, except for the absence of a chairman during the reporting period[127] Shareholder Information - The company has a total of 2,901,104,000 shares issued as of June 30, 2021[120] - The total equity held by directors Feng Baiji and He Hanzhong is 231,334,173 shares, representing 7.97% of the total issued shares[120] - The company granted a total of 116,044,160 stock options under the stock option plan, which is valid until June 1, 2025[115] - The exercise price for the stock options is HKD 0.039 per share, with a market price of HKD 0.039 at the time of grant[115] - Great Virtue Holding Limited holds 468,800,000 shares, accounting for 16.16% of the total issued shares[117] - Ever Achieve Enterprises Limited holds 202,323,133 shares, representing 6.97% of the total issued shares[117]

Financial Performance - The total revenue for the fiscal year ended December 31, 2020, was approximately HKD 255 million, down from approximately HKD 290 million in the previous year[9]. - The company recorded a loss of HKD 40.58 million for the fiscal year, a reduction of about 40% compared to a loss of HKD 67.14 million in the previous year[9][10]. - The improvement in performance was primarily attributed to the food and beverage trading segment and effective cost-saving measures implemented by the company[10]. - The group's revenue growth was partially offset by higher costs in frozen warehouse and logistics operations during the pandemic, including additional expenses for warehouse disinfection and staff temperature checks[13]. - The company reported a basic loss per share of HKD (1.62) for 2020, an improvement from HKD (2.76) in 2019[27]. - The net asset value per share attributable to the company's owners decreased to HKD 3.02 in 2020 from HKD 4.67 in 2019[27]. - The current ratio declined to 0.83 in 2020 from 1.19 in 2019, indicating a decrease in short-term liquidity[27]. - The debt-to-asset ratio remained stable at 0.80, while the asset-liability ratio improved to 68.4% in 2020 from 88.1% in 2019[27][28]. - Cash and bank balances decreased to approximately HKD 69.8 million in 2020 from HKD 118 million in 2019, primarily due to loan repayments[28]. - The company issued a total of HKD 100 million in bonds, consistent with the previous year, to support general working capital[28]. Business Strategy and Operations - The demand for the company's frozen warehouse and logistics services decreased due to strict pandemic measures affecting the food and beverage industry[6]. - The company diversified its customer base by attracting new clients, including supermarkets and frozen food stores, which required more frozen warehouse services during the crisis[6][12]. - The company plans to launch a business-to-consumer (B2C) retail network in Hong Kong to directly reach customers[7]. - The company aims to enhance operational efficiency in its frozen warehouse facilities and reduce costs to mitigate risks and increase returns[7]. - The company expanded its bonded warehouse business, which continued to achieve revenue growth throughout 2020[12]. - The company upgraded the shelving system in its Tsing Yi warehouse to optimize profit and ensure maximum operational efficiency[12]. - The food and beverage distribution business in mainland China turned profitable during the review period, attributed to internal restructuring and strategies to enhance revenue and profitability[16]. - The group plans to launch OEM new beverage products in mid-2021 and a B2C online grocery shopping platform in Hong Kong in early 2021[23]. - The group anticipates significant benefits from suppressed market demand in its frozen warehouse and logistics business in Hong Kong and food and beverage distribution in China due to expected economic recovery[20]. - The group is committed to diversifying its business portfolio to mitigate operational risks and ensure a balance between safety and profitability[17]. - The group will convert two additional floors of its warehouse on Kwai Hing Street into frozen storage by mid-2021, expecting revenue increases without significant additional costs[24]. - The logistics business remains stable in supporting warehouse clients despite challenges faced by certain customers due to reduced business volume[14]. - The group has ceased providing new financial resources to its loan services division, reallocating resources to more profitable segments[15]. - The group is enhancing the efficiency and storage capacity of its Tsing Yi warehouse and expanding its bonded warehouse capacity[24]. Corporate Governance - The company has maintained a high level of corporate governance practices[96]. - The financial statements for the year ended December 31, 2020, were audited by Deloitte Touche Tohmatsu[97]. - The board believes that corporate governance is crucial for the company's success and aims to maintain high standards of governance to benefit shareholders in the long term[102]. - The board has established a risk management policy to enhance the group's ability to prevent risks and ensure stable operations[102]. - The board consists of three committees: Audit Committee, Nomination Committee, and Remuneration Committee, which assist in monitoring senior management functions[103]. - The board includes two executive directors and five independent non-executive directors, ensuring a diverse governance structure[104]. - The board held a total of 17 meetings during the year, with all directors receiving at least 14 days' notice for regular meetings[108]. - Independent non-executive directors actively participate in board meetings and contribute to strategy and policy development[105]. - The company secretary is responsible for providing the board with updates on governance and regulatory matters[111]. - The board retains final decision-making authority on key matters, including long-term strategy and financial performance[106]. - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with all relevant guidelines[102]. - The board will continue to monitor corporate governance practices to ensure prudent regulation of daily business activities[102]. Employee and Compensation - As of December 31, 2020, the total number of full-time employees in Hong Kong and mainland China was approximately 230 and 40, respectively, compared to 220 and 120 in 2019[39]. - Total employee compensation for the year ended December 31, 2020, was approximately HKD 78,483,000, an increase from HKD 75,112,000 in 2019, reflecting competitive salary levels[39]. - The company has maintained a competitive employee compensation policy, including discretionary bonuses and various benefits[39]. Environmental, Social, and Governance (ESG) - The company has a focus on environmental, social, and governance (ESG) policies, with detailed discussions included in the annual report[51]. - The company emphasizes the importance of ESG (Environmental, Social, and Governance) issues and has established a governance framework to oversee its sustainable development initiatives[177]. - The board is responsible for setting strategic directions and monitoring progress towards ESG-related goals to enhance the company's ESG performance[177]. - The company aims to reduce food waste by providing discounted storage for surplus food to local charities, integrating sustainability into its business model[175]. - The company has committed to improving its ESG performance and incorporating sustainability into its core strategies for future challenges[176]. - The company maintains the same ESG risk factors as the previous year, including health and safety risks associated with machinery and driving, which could impact operations and reputation[179]. - The aging workforce poses a risk to productivity and safety, prompting the company to implement a human resource management system and eliminate the mandatory retirement age of 60 to retain experienced employees[179]. - The company has identified 22 sustainability issues, with 11 prioritized as material issues based on stakeholder feedback from 152 valid survey responses[189]. - The company emphasizes compliance management and has not encountered any significant legal violations related to emissions, employment, health and safety, labor standards, product liability, or corruption during the reporting year[183]. - The company actively participates in community activities and engages with NGOs to understand community needs[187]. - The company has established policies and measures to ensure adherence to the highest ethical and responsibility standards in its operations[181]. - The company’s sustainability issues are ranked by significance, with anti-corruption and customer rights protection being the highest priorities[194]. - The company is committed to responsible and sustainable operations to earn the trust of all stakeholders, including customers[195]. - No legal cases related to corruption against the company or its employees during the reporting year[197]. - Three board members and 33 employees participated in anti-corruption training provided by the ICAC to enhance awareness of corruption issues in the warehousing and logistics industry[198]. - The company emphasizes long-term relationships with suppliers that share common ethical values and standards[200]. - Environmental and social factors are considered alongside technical and price competitiveness in the procurement process[200]. - The company has established standardized procurement management processes to evaluate and monitor supplier performance regularly[200]. - Poorly performing suppliers will be removed from the supplier list to ensure compliance with the company's standards[200]. - The company has implemented a reporting platform to ensure a fair and effective mechanism for reporting misconduct[198]. - Employees are encouraged to report any suspicious cash flows and potential conflicts of interest[198]. - The company has a commitment to maintaining integrity and promoting social fairness, prohibiting all forms of bribery and corruption[196]. - No incidents of corruption have been reported in the company's operations during the year[197].