Financial Performance - For the six months ended December 31, 2021, the company reported revenue of HKD 94,447,000, an increase of 2.66% compared to HKD 92,000,000 for the same period in 2020[13]. - The cost of sales decreased significantly to HKD 18,321,000 from HKD 40,079,000, resulting in a gross profit of HKD 76,126,000, up from HKD 51,921,000[13]. - The company recorded a profit before tax of HKD 58,220,000, compared to a loss of HKD 379,949,000 in the previous year[13]. - Net profit from continuing operations for the period was HKD 44,460,000, a substantial recovery from a loss of HKD 282,585,000 in the same period last year[13]. - The total comprehensive income for the period was HKD 55,830,000, compared to a loss of HKD 156,483,000 in the previous year[15]. - The earnings per share for the period was HKD 25,471, compared to a loss per share of HKD 217,902 in the same period last year[15]. - The total comprehensive income attributable to the company's owners for the six months ended December 31, 2021, was HKD 45,161, compared to a loss of HKD 111,658 for the same period in 2020[19]. - Basic and diluted earnings per share from continuing and discontinued operations were HKD 0.95, recovering from a loss of HKD 8.10 in the previous year[19]. - The gross profit margin for the period was approximately 80.6%, a significant increase from 56.4% in 2020[125]. - The group generated a profit of approximately HKD 44,460,000, compared to a loss of HKD 282,585,000 in 2020, resulting in a profit margin of about 47.1%[129]. Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 188,692 from HKD 16,693 in the previous period, indicating improved liquidity[20]. - Net cash generated from operating activities was HKD 336,216, a significant increase from HKD 33,797 in the prior year[27]. - The total cash flow from operating activities for the six months ended December 31, 2021, was HKD 31,002,000, compared to HKD 1,032,000 in the same period of 2020[77]. - The group reported a net cash outflow from investing activities of HKD 259,036, primarily due to acquisitions and loan advances[27]. - The group reported a net cash outflow of HKD 46,000 from the sale of the subsidiary, reflecting minimal cash generation from the transaction[74]. Assets and Liabilities - The company's non-current assets totaled HKD 2,273,344 as of December 31, 2021, slightly increasing from HKD 2,236,451 as of June 30, 2021[20]. - The company’s current liabilities increased to HKD 44,936 from HKD 35,126, reflecting a rise in operational obligations[20]. - Total equity attributable to the company's owners was HKD 1,400,485, up from HKD 1,354,551 as of June 30, 2021[22]. - The company’s total assets less current liabilities stood at HKD 2,593,294, a decrease from HKD 2,698,285 in the previous period[22]. - The group aims to maintain a current ratio of approximately 291.1% as of December 31, 2021, down from 396.3% on June 30, 2021[140]. - Total equity as of December 31, 2021, was approximately HKD 1,400,485,000, a decrease from HKD 1,514,758,000 on June 30, 2021[140]. Business Operations and Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[13]. - The company aims to enhance operational efficiency and explore strategic partnerships to drive future growth[13]. - The group has future minimum lease payments of HKD 420,595,000, down from HKD 486,103,000[92]. - The company’s management team operates both the Jiachao Shopping Center and Shopping Center C, which is expected to generate significant income with minimal additional costs[121]. - Future plans include expanding leasing, management, and operational services to more shopping centers, with a focus on marketing and promotion activities[134]. Discontinued Operations - The group has ceased its biotechnology business, and the results from this segment have been classified as discontinued operations in the financial statements[40]. - The net loss from the discontinued biotechnology business for the six months ended December 31, 2021, was HKD 10,476,000, compared to a loss of HKD 5,934,000 in the same period of 2020[62]. - The group reported a loss of approximately HKD 10,476,000 from discontinued operations, an increase of 76.5% compared to HKD 5,934,000 in 2020[132]. - The group completed the sale of its entire equity interest in City Charm International Limited for a nominal price of USD 1.00 on November 22, 2021, marking the termination of its biotechnology operations[59]. Tenant and Rental Information - Property rental income for the six months ended December 31, 2021, was HKD 37,407,000, slightly up from HKD 37,309,000 in the previous year[36]. - Property management fee income increased to HKD 55,293,000 for the six months ended December 31, 2021, from HKD 53,513,000 in the same period of 2020, reflecting a growth of approximately 3.33%[36]. - The single largest tenant contributed 10% or more to the group's revenue, with total revenue from this tenant amounting to HKD 17,272,000 for the six months ended December 31, 2021, compared to HKD 16,087,000 in the previous year[33]. - As of December 31, 2021, approximately 99.0% of the leasable area of the Jiachao Shopping Center was rented out, with a remaining lease term of 1 to 13 years[117]. Corporate Governance and Compliance - The company adhered to the corporate governance code as per Appendix 14 of the listing rules, enhancing accountability and transparency[171]. - The audit committee, composed of four independent non-executive directors, reviewed the financial reporting procedures and risk management[173]. Employee and Training - The group employed a total of 144 employees in China and Hong Kong, providing competitive compensation and benefits[148]. - The group regularly provides internal training for employees[149].

Financial Performance - The company reported revenue of HKD 188,634,000 for the year, an increase of 18.2% from HKD 159,547,000 in 2020, but incurred a loss of HKD 227,892,000 compared to a loss of HKD 35,713,000 in the previous year[9]. - The gross profit margin for the fiscal year ending June 30, 2021, was approximately 56.4%, down from 60.1% in 2020, attributed to increased variable sales costs as shopping centers resumed normal operations[35]. - The group incurred a loss of approximately HKD 227,892,000 for the fiscal year ending June 30, 2021, with a loss rate of 120.8%, significantly higher than 22.4% in 2020, primarily due to a substantial decrease in the fair value of investment properties[35]. - Other income for the fiscal year ending June 30, 2021, was approximately HKD 30,280,000, an increase from HKD 14,764,000 in 2020, driven by increased customer spending and government subsidies[36]. - Administrative expenses were approximately HKD 37,696,000, accounting for about 20.0% of revenue, up from 18.8% in 2020, reflecting costs related to biotechnology trials and the sale of a subsidiary[39]. - Financial expenses amounted to approximately HKD 66,243,000, representing 35.1% of revenue, an increase due to higher interest rates on bank loans[40]. - The group recorded revenue of approximately HKD 188,634,000 for the fiscal year ending June 30, 2021, an increase of about 18.2% compared to HKD 159,547,000 in 2020[34]. Business Strategy and Operations - The company has shifted its business focus towards light asset and service-based property operations after selling a 75% stake in Zhengzhou Jiachao Property Services Co., Ltd[9]. - The group plans to enhance property operations by leasing to more well-known brands and diversifying tenant types to meet various customer needs[18]. - The group plans to expand its property operations by focusing on leasing, management, and operational services to various tenants in shopping centers[40]. - The group aims to diversify tenant types and upgrade shopping centers to meet the needs of different customer demographics through marketing and promotional activities[42]. - The group is committed to exploring investment opportunities in property operations under the Belt and Road Initiative and the dual circulation economic strategy[18]. - The group anticipates stable business development in the future while exploring suitable property operations and biotechnology projects to broaden revenue sources[19]. Biotechnology Sector - The company is exploring the biotechnology sector in Yunnan Province, China, with subsidiaries established for the production of cannabidiol (CBD) and has received necessary licenses for industrial hemp cultivation and trial production[16]. - The group has entered the biotechnology sector, holding a 60% stake in Honghe Qianlin Biotechnology Co., Ltd., which is involved in the production of industrial-grade cannabidiol for overseas markets[30]. - The group aims to diversify its business by developing biotechnology in Yunnan Province, China, with commercial production expected to start upon receiving the industrial hemp production license[43]. - The group anticipates optimistic future prospects for cannabidiol due to its widespread use in various sectors, supported by government initiatives like the Belt and Road Initiative[48]. Tenant and Customer Relations - The company provided rental and operational support to tenants during the COVID-19 pandemic, amounting to approximately HKD 697,000, a significant decrease from HKD 17,705,000 in 2020[15]. - The group has allowed certain tenants to defer rent payments and has reduced costs as a key strategic focus to address uncertainties caused by the COVID-19 pandemic[34]. - The company’s top five customers accounted for 30% of total sales, with the largest customer contributing approximately 18%[96]. - The company’s top five suppliers accounted for 58% of total purchases, with the largest supplier contributing approximately 49%[96]. Financial Position and Assets - As of June 30, 2021, the group's net current assets were approximately HKD 461,834,000, an increase from HKD 290,629,000 in 2020, and total assets were HKD 2,698,285,000, down from HKD 2,978,960,000 in 2020[49]. - The group's cash and bank deposits as of June 30, 2021, were approximately HKD 16,693,000, significantly decreased from HKD 419,095,000 in 2020[49]. - The current ratio as of June 30, 2021, was approximately 396.3%, up from 274.1% in 2020, indicating improved liquidity[49]. - The group has established a loan agreement to provide RMB 250 million at an interest rate of 7.5% to an independent third party, indicating a surplus cash position[31]. Corporate Governance - The board of directors held eight meetings during the fiscal year, with all members attending every meeting[113]. - The board is responsible for monitoring the company's business and financial performance, including expanding property operations and enhancing tenant satisfaction[116]. - The company has received annual confirmations of independence from all independent non-executive directors[96]. - The audit committee reviewed the effectiveness of the internal control system, which was deemed effective and adequate[116]. - The company has implemented corporate governance practices to enhance credibility and transparency[108]. Environmental and Social Responsibility - The company is committed to sustainable development in its operational locations, focusing on effective resource utilization, energy conservation, and emission reduction[158]. - The company has established a cannabis cannabidiol production line, which has undergone environmental assessments and complies with national and regional industrial policies[163]. - The company has committed to maintaining compliance with relevant laws and regulations regarding emissions and waste management throughout the reporting period[171]. - The company emphasizes the importance of stakeholder communication to meet expectations and enhance sustainability in its operations[162]. Employee and Community Engagement - The employee turnover rate for the reporting period was 22%, with 50% of departing employees from Zhengzhou[186]. - The group employed 148 full-time staff, with 90% based in Zhengzhou, and an average age of 38 years[186]. - The shopping center has created over 7,000 job opportunities, contributing positively to the community, especially in areas such as children's entertainment, education, and culture[198]. - A total of 432 training sessions were conducted during the reporting period, with 260 male and 172 female participants, resulting in a male-to-female training participation ratio of 1.5:1[190].

Financial Performance - The group reported revenue of HKD 92,000,000 for the six months ended December 31, 2020, compared to HKD 88,939,000 for the same period in 2019, representing a growth of 2.4%[9] - Gross profit for the period was HKD 51,921,000, down from HKD 54,985,000 in the previous year, indicating a decrease of 5.6%[9] - Other income increased significantly to HKD 15,981,000 from HKD 8,209,000, reflecting a growth of 94.1%[9] - The group incurred a loss before tax of HKD 385,883,000, compared to a profit of HKD 16,185,000 in the same period last year[9] - The net loss for the period was HKD 288,519,000, a significant decline from a profit of HKD 14,893,000 in the prior year[9] - Total comprehensive loss for the period amounted to HKD 156,483,000, compared to a loss of HKD 7,081,000 in the previous year[9] - Basic and diluted loss per share was HKD 8.10, compared to earnings of HKD 0.35 per share in the same period last year[14] - The group incurred a loss of HKD 288,519,000 for the six months ended December 31, 2020, compared to a profit of HKD 14,893,000 for the same period in 2019[33] - The total financial expenses for the six months ended December 31, 2020, were HKD 30,896,000, an increase from HKD 27,012,000 in the previous year, representing a rise of about 10.6%[36] Assets and Liabilities - Non-current assets increased to HKD 2,493,055 thousand as of December 31, 2020, compared to HKD 2,688,331 thousand as of June 30, 2020, reflecting a decrease of approximately 7.3%[15] - Current assets decreased to HKD 402,241 thousand from HKD 457,544 thousand, a decline of about 12.1%[15] - Total equity decreased to HKD 1,586,381 thousand from HKD 1,748,402 thousand, representing a reduction of approximately 9.2%[17] - Cash and cash equivalents decreased to HKD 352,311 thousand from HKD 419,095 thousand, a decrease of around 15.9%[21] - Total liabilities decreased to HKD 1,131,959 thousand from HKD 1,230,558 thousand, a decrease of about 8%[17] - The company’s total assets less current liabilities amounted to HKD 2,718,340 thousand, down from HKD 2,978,960 thousand, a decline of about 8.7%[17] - The total debt ratio as of December 31, 2020, was approximately 56.6%, an increase from 52.6% as of June 30, 2020, indicating a rise in leverage[105] Cash Flow - Net cash generated from operating activities was HKD 33,797 thousand, significantly lower than HKD 278,137 thousand in the same period last year, indicating a decline of approximately 87.8%[21] - The company’s cash flow from financing activities showed a net outflow of HKD 125,402 thousand, contrasting with a net inflow of HKD 112,453 thousand in the previous year[21] - The group’s cash and bank deposits as of December 31, 2020, were approximately HKD 352,311,000, down from HKD 419,095,000 as of June 30, 2020, reflecting a decrease of about 15.9%[104] - The group has a total borrowing amount of approximately HKD 864,050,000 as of December 31, 2020, slightly down from HKD 874,523,000 as of June 30, 2020, indicating a reduction of about 1.7%[106] Revenue Sources - Rental income from property leasing was HKD 37,309,000 for the six months ended December 31, 2020, up from HKD 35,555,000 in the previous year, indicating an increase of about 4.9%[29] - Property management fee income was HKD 53,513,000, compared to HKD 51,847,000 in the prior period, reflecting a growth of approximately 3.2%[29] - The group did not generate any revenue from its biotechnology segment during the reporting period[31] - The group had a single tenant contributing over 10% of total revenue, with total revenue from this tenant amounting to HKD 16,087,000, compared to HKD 14,058,000 in the previous year[28] Investment Properties - The company’s investment properties were valued at HKD 2,432,795 thousand as of December 31, 2020, down from HKD 2,637,363 thousand, reflecting a decrease of approximately 7.7%[15] - The fair value of investment properties decreased to HKD 2,432,795,000 as of December 31, 2020, down from HKD 2,806,818,000 as of June 30, 2020, reflecting a loss of HKD 403,000,000 due to fair value changes[48] - The fair value loss of investment properties was approximately HKD 403,000,000, reflecting the impact of the COVID-19 pandemic on rental growth[93] Corporate Governance - The company adheres to the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring accountability and transparency[128] - The audit committee consists of four independent non-executive directors, responsible for reviewing financial reporting and risk management[130] Future Plans and Developments - The group plans to separate property holding and property operation businesses to streamline operations, establishing a new company with a 75% indirect ownership[97] - The anticipated annual production capacity of the newly established biotechnology subsidiary is approximately 2,000 kilograms of CBD for industrial use[83] - The group plans to continue investing additional resources to drive growth in property operations and the biotechnology market, particularly in Zhengzhou, which is seen as a strategic location due to its economic and demographic factors[102] - The group has received industrial hemp cultivation and trial production permits from Chinese regulatory authorities and is awaiting the industrial hemp production license to commence commercial production[98] - The group aims to enhance profitability by exploring new opportunities in property operations and biotechnology, while maintaining strict cost control measures[101] Shareholder Information - As of December 31, 2020, Mr. Chen Jin Dong holds 369,100,000 shares, representing 13.73% of the company's issued share capital[115] - Mr. Chen Jin Yan holds 597,280,000 shares, accounting for 22.21% of the company's issued share capital[116] - The company has a stock option plan effective from November 22, 2013, with 2,080,000 options held by each of Mr. Lin Ye and Mr. Yang Ze Qiang[125] - No shares or securities were purchased, sold, or redeemed by the company or its subsidiaries during the period[127] Other Information - No dividends were declared or proposed during the interim period[43] - There were no significant events to report after the reporting period[77] - The company reported a total remuneration of HKD 2,004,000 for directors and key management personnel, consistent with the previous year[75] - Capital expenditures related to property, plant, and equipment were HKD 429,000 for the six months ending December 31, 2020, down from HKD 1,494,000 for the previous period[72] - The depreciation of property, plant, and equipment amounted to HKD 789,000 for the six months ended December 31, 2020, down from HKD 1,368,000 in the prior period[42] - The group provided rental and operational support totaling approximately HKD 681,000 to certain tenants during the pandemic[84] - Administrative expenses were approximately HKD 17,503,000, accounting for about 19.0% of revenue, a decrease from 22.5% in 2019[90]

Financial Performance - The company reported revenue of HKD 159,547,000 for 2020, a decrease of 24.6% from HKD 211,818,000 in 2019, and incurred a loss of HKD 35,713,000 compared to a profit of HKD 76,439,000 in the previous year[9]. - The group recorded revenue of approximately HKD 159,547,000 for the fiscal year ending June 30, 2020, a decrease of about 24.7% compared to HKD 211,818,000 in 2019[33]. - The gross profit margin for the fiscal year ending June 30, 2020, was approximately 60.1%, down from 69.9% in 2019[34]. - The group incurred a loss of approximately HKD 35,713,000 for the fiscal year ending June 30, 2020, compared to a profit of HKD 76,439,000 in 2019, resulting in a loss margin of 22.4%[35]. - Other income for the fiscal year ending June 30, 2020, was approximately HKD 14,764,000, a decrease from HKD 16,066,000 in 2019, primarily due to reduced parking usage[36]. - Administrative expenses increased by approximately 12.1% to HKD 29,946,000, accounting for about 18.8% of revenue for the fiscal year ending June 30, 2020[37]. - Financial expenses rose significantly to approximately HKD 61,942,000, representing about 38.8% of revenue, due to higher interest rates on new bank loans[37]. - The fair value of investment properties decreased by approximately HKD 77,778,000, reflecting a slowdown in rental growth[38]. - The board did not recommend a final dividend for the fiscal year ending June 30, 2020[39]. - The total equity of the group as of June 30, 2020, was approximately HKD 1,748,402,000, down from HKD 1,856,626,000 in 2019, with a total debt ratio of approximately 52.6%, up from 28.5% in 2019[49]. - The group plans to invest approximately HKD 6,463,000 in property, plant, and equipment for the year ending June 30, 2020, compared to HKD 1,241,000 in 2019[56]. Tenant and Property Management - The company has a shopping mall in Zhengzhou, China, with a total registered construction area of approximately 125,188 square meters, fully leased to over 140 tenants[10]. - A new shopping center (Zone C) with a total construction area of approximately 80,118 square meters has been leased, with around 120 tenants providing various services and products[11]. - The company provided rental and management fee reductions totaling approximately HKD 17,705,000 to over 280 tenants during the first half of 2020 due to COVID-19[15]. - The company provided rent relief totaling approximately HKD 17,705,000 to over 280 tenants during the first half of 2020 due to the impact of COVID-19[26]. - The company holds a 75% stake in Jiachao Property Services Co., which operates the Jiachao Shopping Center in Zhengzhou, China[24]. - The group plans to enhance tenant quality at the Jiachao Shopping Center and diversify tenant types to meet various customer needs[40]. - The company plans to enhance tenant diversity and upgrade tenant categories to meet the needs of various customer demographics[18]. - The company is focused on expanding its property operations market and enhancing tenant satisfaction[117]. Biotechnology Sector - The company is exploring the biotechnology sector, having established subsidiaries in Yunnan Province for the production of cannabidiol (CBD) and has secured an industrial hemp planting license[16]. - The company has entered the biotechnology sector, holding a 60% stake in Qianlin Biotechnology, which is expected to produce approximately 2,000 kg of CBD annually[27]. - A factory of approximately 2,904 square meters has been leased for production, with a total land area of about 1,028,133 square meters for raw material cultivation[16]. - The company plans to start trial operations in early 2021 once it receives the necessary production permits and completes equipment installation[16]. - The group aims to diversify its business and expand into the biotechnology market, leveraging the optimistic future prospects of cannabidiol due to regulatory approvals in Australia, Europe, and North America[47]. - The group has installed machinery for distillation and extraction processes in its newly leased factory in Yunnan, China[27]. Financial Position and Assets - As of June 30, 2020, the group's net current assets were approximately HKD 290,629,000, compared to HKD 124,948,000 in 2019, and total assets minus current liabilities were approximately HKD 2,978,960,000, up from HKD 2,721,116,000 in 2019[48]. - The group's cash and bank deposits as of June 30, 2020, were approximately HKD 419,095,000, significantly increased from HKD 32,377,000 in 2019, resulting in a current ratio of approximately 274.1% compared to 71.3% in 2019[48]. - The group has a total borrowing of approximately HKD 874,523,000 as of June 30, 2020, compared to HKD 494,318,000 in 2019, with all financing fully utilized[50]. Corporate Governance - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's guidelines, ensuring transparency and accountability[109]. - The company’s board of directors includes four independent non-executive directors, ensuring diverse oversight[75]. - The board consists of at least one-third independent non-executive directors, ensuring independence in decision-making[111]. - The board held eight meetings during the fiscal year ending June 30, 2020, with all directors attending most meetings[114]. - The company encourages directors to participate in training courses to enhance their knowledge and performance[115]. - The company has arranged appropriate liability insurance for directors to cover responsibilities arising from corporate activities[117]. - The audit committee is composed of four independent non-executive directors, ensuring oversight of financial reporting[125]. - The Audit Committee reviewed the independence of external auditors and their provision of non-audit services[132]. Environmental and Social Responsibility - The group reported an electricity consumption of approximately 32,243,000 kWh during the reporting period, with an energy consumption density of 157.05 kWh/sqm[169]. - The group achieved a reduction in electricity costs of over 18.9% due to a power sales agreement and government initiatives, primarily impacted by the pandemic-related closure of shopping centers[169]. - The group generated a total of 1.095 million cubic meters of non-hazardous waste during the reporting period, with a density of 5.33 cubic meters/sqm[166]. - The group monitored emissions from its underground parking facilities, with total carbon monoxide emissions reaching 1.61 tons[162]. - The group installed oil fume purification facilities in its dining tenants to comply with the "Air Pollution Prevention Law" and related standards[164]. - The group constructed seven sewage outlets for wastewater discharge, ensuring compliance with the "Comprehensive Wastewater Discharge Standards" and "Urban Sewage Discharge Standards"[165]. - The group has implemented waste classification systems in its managed shopping centers to ensure proper waste disposal and recycling[166]. - The group’s pollution prevention measures strictly adhere to relevant Chinese government regulations and standards during construction and operation[162]. - The group has a green area of 2,550 square meters to improve the ecological environment[176]. - The group has implemented a training card system for employees, requiring at least 12 points of training within a year to meet assessment standards[181]. - The group adheres to labor laws and regulations, ensuring no violations related to employment practices[179]. - The opening of Jiachao Shopping Center has created over 7,000 job opportunities, significantly contributing to the local community, especially in areas such as children's entertainment, education, and culture[187]. - The company has complied with health and safety regulations regarding the products and services offered, with no complaints received from tenants during the reporting period[185]. - The company has implemented measures to prevent bribery among employees, suppliers, and tenants, with no corruption lawsuits reported during the reporting period[186].

Financial Performance - For the six months ended December 31, 2019, the company reported revenue of HKD 88,939,000, a decrease of 2.4% from HKD 91,381,000 in the same period of 2018[14] - The gross profit for the same period was HKD 54,985,000, down from HKD 61,241,000, reflecting a decline of approximately 10.3%[14] - The company recorded a profit before tax of HKD 16,185,000, significantly lower than HKD 41,181,000 in the previous year, representing a decrease of 60.7%[14] - The net profit for the period was HKD 14,893,000, down 54.8% from HKD 32,946,000 in the prior year[14] - The basic and diluted earnings per share were both HKD 0.35, compared to HKD 0.87 in the same period last year, indicating a decline of 59.8%[15] - The company experienced a total comprehensive loss of HKD 7,081,000, a significant improvement from a loss of HKD 50,404,000 in the previous year[15] - The total comprehensive loss attributable to owners of the company was HKD 8,469,000, compared to a loss of HKD 43,000,000 in the same period of 2018[15] - The operating profit for the property operation segment was HKD 23,825,000, compared to HKD 47,662,000 in the same period of 2018, reflecting a significant decline[68] - The company reported a net profit of HKD 14,893,000 for the six months ended December 31, 2019, down from HKD 32,946,000 in the same period of 2018[68] - The group generated a profit of HKD 14,893,000 during the period, a significant decrease from HKD 32,946,000 in 2018, with a profit margin of approximately 16.7% compared to 36.1% in 2018[124] Revenue and Expenses - The company reported an increase in administrative expenses to HKD 19,898,000 from HKD 12,973,000, reflecting a rise of 53.5%[14] - The total interest expenses for the period were HKD 27,012,000, an increase from HKD 15,083,000 in the previous year[73] - Financial expenses rose to HKD 27,012,000 from HKD 15,083,000 in 2018, representing about 30.4% of revenue, attributed to higher interest rates on new bank borrowings[128] - Other income for the period was HKD 8,209,000, slightly up from HKD 7,996,000 in 2018, primarily from parking fees and other services provided to tenants[125] Assets and Liabilities - As of December 31, 2019, total assets amounted to HKD 3,123,384,000, an increase from HKD 2,721,116,000 as of June 30, 2019, representing a growth of approximately 14.8%[19] - Total equity as of December 31, 2019, was HKD 1,838,169,000, a slight decrease from HKD 1,856,626,000 as of June 30, 2019, showing a decline of approximately 1.0%[19] - The company reported a decrease in trade and other receivables to HKD 36,851,000 from HKD 278,114,000, a reduction of about 86.8%[19] - Non-current liabilities increased significantly to HKD 1,285,215,000 as of December 31, 2019, compared to HKD 864,490,000 as of June 30, 2019, marking an increase of approximately 48.6%[19] - The group has a total of HKD 54,502,000 in trade payables and other payables as of December 31, 2019, compared to HKD 65,309,000 as of June 30, 2019[96] - As of December 31, 2019, the group had a total bond liability of HKD 44,301,000, reflecting an increase in interest expenses during the period[101] Cash Flow - The net cash generated from operating activities for the six months ended December 31, 2019, was HKD 278,137,000, compared to HKD 83,814,000 for the same period in 2018, indicating a significant increase of 231.5%[27] - The company's cash and cash equivalents increased to HKD 423,418,000 as of December 31, 2019, up from HKD 32,377,000 at the beginning of the period, reflecting a growth of 1,210.5%[27] - The net cash used in investing activities was HKD (47,000) for the six months ended December 31, 2019, compared to HKD (1,209,000) in the same period of 2018, indicating a reduction in cash outflow[27] - The company’s bank borrowings increased to HKD 888,889,000 during the financing activities, reflecting a significant inflow of funds[27] Corporate Governance and Compliance - The company adheres to high standards of corporate governance and complies with the corporate governance code as per the listing rules[162] - The company has adopted the standard code of conduct for directors' securities trading as per the listing rules appendix, confirming compliance during the period[163] - The audit committee consists of four independent non-executive directors, responsible for reviewing financial reporting processes, risk management, and internal controls[165] - The audit committee has discussed the review of the group's accounting principles and practices along with management and external auditors[165] Future Outlook and Strategy - The company has not disclosed specific future outlook or guidance in the provided content[13] - The company plans to develop a biotechnology segment through a 60% stake in Honghe Qianlin Biotechnology Co., with a factory set to begin construction in 2020, targeting an annual production of approximately 2,000 kg of CBD[120] - The group anticipates positive results from its diversified business strategy and aims to maximize shareholder returns through ongoing market opportunities[133] - The group plans to expand its property operations and has invested significant resources in this area, aiming to enhance shareholder returns through diversified tenant types and marketing activities[130] Employee and Shareholder Information - The group employed a total of 154 employees in China and Hong Kong as of December 31, 2019, providing competitive compensation and benefits[144] - Major shareholders as of December 31, 2019, included Lin Lin with 369,100,000 shares (13.73%) and Chen Jinqing with 166,000,000 shares (6.17%)[156] - The company’s management compensation for the period totaled HKD 2,004,000, determined based on individual performance and market trends[111] Investment Properties - The fair value of investment properties at the end of the reporting period was HKD 2,775,281,000, down from HKD 3,208,333,000 at the beginning of the year[85] - As of December 31, 2019, the fair value of the group's investment properties was HKD 2,775,281,000, compared to HKD 2,806,818,000 as of June 30, 2019[86] - Rental income, management fees, and operational service income for the period amounted to HKD 88,939,000, a decrease from HKD 91,381,000 for the same period in 2018[88] - Future minimum lease payments contracted with tenants as of December 31, 2019, totaled HKD 789,214,000, down from HKD 999,674,000 as of June 30, 2019[90] Financial Reporting Standards - The company applies the Hong Kong Financial Reporting Standard 16 for leases, assessing contracts for lease components at the initial or modification date[36] - The company applies the Hong Kong Financial Reporting Standard 15 to allocate contract consideration to lease and non-lease components starting from July 1, 2019[51] - Refundable lease deposits are recognized at fair value and adjustments at initial recognition are treated as additional lease payments from the lessee[52] - The company treats lease modifications as new leases and considers any prepaid or accrued lease payments as part of the new lease payments[54]

Financial Performance - The company reported revenue of HKD 211,818,000 for the year, an increase from HKD 199,219,000 in 2018, representing a growth of approximately 8.04%[11] - The net profit for the year was HKD 76,439,000, down from HKD 112,195,000 in 2018, indicating a decline of about 31.87%[11] - The company recorded revenue of approximately HKD 211,818,000 for the fiscal year ending June 30, 2019, representing an increase of about 6.3% compared to HKD 199,219,000 in 2018[28] - The company's profit for the fiscal year ending June 30, 2019, was approximately HKD 76,439,000, with a profit margin of 36.1%, down from HKD 112,195,000 and 56.3% in 2018[30] - Other income for the fiscal year ending June 30, 2019, was approximately HKD 16,066,000, an increase from HKD 13,481,000 in 2018, primarily due to higher parking usage rates[32] - Administrative expenses were approximately HKD 26,719,000, accounting for about 12.6% of revenue, down from 13.5% in 2018[33] - Financial costs were approximately HKD 29,416,000, representing about 13.9% of revenue, a decrease from 16.4% in 2018 due to regular repayment of bank loans[33] Property Operations - The company operates a shopping mall in Zhengzhou, China, with a total registered building area of approximately 125,188 square meters and over 140 tenants[12] - A new shopping center (Zone C) with a total building area of approximately 80,118 square meters has been leased, with over 130 tenants providing various services and products[13] - The company believes that expanding the available retail space will attract more customers and enhance the overall profitability of its property operations[24] - The group’s investment properties had a book value of approximately HKD 2,806,818,000 as of June 30, 2019, down from HKD 3,208,333,000 in 2018, reflecting a revaluation loss of HKD 19,541,000 due to slowing rental growth[34] - The group plans to enhance the tenant mix at the Jiachao Shopping Center in Zhengzhou, China, to attract more popular brands and diversify tenant types[37] Financial Stability and Strategy - The company is focused on maintaining sustainable financial performance in its property operations and exploring investment opportunities in the property sector[18] - The company anticipates stable business development in the future, with a cautious approach to developing existing projects and exploring new opportunities[18] - The company continues to implement prudent cost management measures to enhance operational efficiency and maintain a reasonable financial position[18] - The group aims to maintain a reasonable level of working capital to ensure financial stability and expects sufficient resources from business operations and support from a major shareholder[42] - The group continues to implement prudent cost control policies to manage operating costs and enhance cash flow[39] Governance and Management - The board is committed to monitoring and reviewing the effectiveness of strategies to improve performance and enhance shareholder value[18] - The company’s board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[70] - The company’s independent non-executive directors confirmed their independence according to the listing rules[89] - The board consists of six members, with four being independent non-executive directors, ensuring a diverse composition[136] - The board held 11 meetings during the fiscal year ending June 30, 2019, with all directors attending most meetings, demonstrating strong engagement[105] Shareholder Information - The group did not recommend a final dividend for the year ended June 30, 2019, compared to no dividend in 2018[35] - The company has established a dividend policy aimed at maximizing shareholder value, with the board having full discretion over dividend declarations[137] - As of June 30, 2019, the company had a total of 597,280,000 shares held by the beneficial owner, representing 22.21% of the issued share capital[74] - Major shareholders included Ms. Lin Lin with 13.73% and Mr. Chen Jin Qing with 6.17% of the issued share capital[84] Environmental and Social Responsibility - The group reported a total electricity consumption of approximately 36,228,000 kWh during the reporting period, with an energy consumption density of 176.46 kWh/m²[157] - The group achieved a reduction in electricity costs of over 1.2% during the reporting period by participating in a local electricity sales platform[157] - The total water consumption for the group was approximately 348,000 cubic meters, with a water consumption density of about 1.70 m³/m²[158] - The group generated three types of non-hazardous waste during the reporting period: 4,000 cubic meters of construction waste, 8,760,000 liters of general waste, and 1,752,000 liters of kitchen waste[153] - The group has implemented a training card system for employees, requiring at least 12 points of training within a year to meet assessment standards[169] Compliance and Audit - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of June 30, 2019[184] - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[184] - The Audit Committee reviewed the annual and interim reports, focusing on changes in accounting policies, significant judgments, and compliance with accounting standards and listing rules[121] - The Audit Committee assessed the effectiveness of the internal control and risk management systems, concluding that they were adequate and did not require the establishment of an internal audit function at that time[119] Employee and Labor Practices - The group employs a total of 159 employees in China and Hong Kong, providing competitive compensation and benefits[50] - The group has not reported any employee injuries or work-related accidents during the reporting period[168] - The group has established a fair promotion mechanism to ensure no discrimination during hiring processes[167] - The group has not disclosed specific measures taken to prevent child labor and forced labor, indicating a need for enhanced labor practices transparency[179]

Financial Performance - Revenue for the six months ended December 31, 2018, was HKD 91,381,000, a decrease of 5.5% from HKD 96,971,000 in the same period of 2017[9]. - Gross profit for the same period was HKD 61,241,000, down 11.3% from HKD 69,014,000 year-on-year[9]. - Profit before tax decreased to HKD 41,181,000, a decline of 10.0% compared to HKD 46,038,000 in the previous year[9]. - Net profit for the period was HKD 32,946,000, down 18.5% from HKD 40,503,000 in the same period of 2017[9]. - Basic earnings per share decreased to HKD 0.87, compared to HKD 1.08 in the previous year, reflecting a decline of 19.4%[11]. - The profit for the period was HKD 32,946,000 for the six months ended December 31, 2018, compared to HKD 40,503,000 in 2017, indicating a decrease of around 18.5%[66]. - The group recorded a tax expense of HKD 8,235,000 for the six months ended December 31, 2018, up from HKD 5,535,000 in 2017, which is an increase of approximately 48.6%[69]. - The group’s financial expenses for the six months ended December 31, 2018, totaled HKD 15,083,000, a decrease from HKD 15,841,000 in 2017, representing a decline of approximately 4.8%[68]. - The basic and diluted earnings per share attributable to the company's owners for the six months ended December 31, 2018, were HKD 23,452,000 compared to HKD 28,915,000 for the same period in 2017, reflecting a decrease of approximately 19.5%[77]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 2,747,133,000, down from HKD 2,887,731,000 as of June 30, 2018[13]. - The total liabilities decreased from HKD 2,887,731,000 as of June 30, 2018, to HKD 2,747,133,000 as of December 31, 2018, indicating a reduction of approximately 4.9%[15]. - As of December 31, 2018, the total equity of the company was HKD 1,814,111,000, a decrease of 2.7% from HKD 1,864,515,000 as of June 30, 2018[15]. - The group’s current liabilities net value was approximately HKD 385,076,000, with total assets of approximately HKD 2,747,133,000[122]. - The total equity as of December 31, 2018, was approximately HKD 1,814,111,000, with a total debt ratio of approximately 30.8%[123]. - The total borrowing financing amount of the group was approximately HKD 523,863,000, a decrease from HKD 603,571,000 as of June 30, 2018[124]. Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 43,913,000 from HKD 18,121,000, indicating improved liquidity[13]. - The net cash generated from operating activities for the six months ended December 31, 2018, was HKD 83,814,000, representing a 49.5% increase compared to HKD 56,078,000 for the same period in 2017[19]. - The cash and cash equivalents at the end of the period increased to HKD 43,913,000 from HKD 30,791,000, reflecting a growth of 42.5%[19]. Revenue Recognition and Accounting Standards - The company has adopted new Hong Kong Financial Reporting Standards (HKFRS) 9 and 15 starting from July 1, 2018, which may impact future financial reporting[23]. - The company has adopted Hong Kong Financial Reporting Standard 15, which replaces HKAS 18 and HKAS 11, impacting revenue recognition from customer contracts[25]. - Revenue is recognized when control of goods or services is transferred to the customer, either over time or at a point in time[28]. - The application of HKFRS 15 did not significantly impact how the company recognizes revenue from services provided[32]. - The financial statements as of December 31, 2018, reflect the impact of HKFRS 15, with specific adjustments noted in the financial position[36]. Operational Performance - Rental income from property leasing was HKD 36,294,000 for the six months ended December 31, 2018, down from HKD 44,087,000 in 2017, reflecting a decrease of about 17.6%[60]. - Property management fee income increased to HKD 53,813,000 in 2018 from HKD 46,656,000 in 2017, marking an increase of approximately 15.5%[60]. - The group aims to expand its operations by managing additional retail spaces, which is expected to enhance customer traffic and tenant quality[106]. - The group has fully leased the Jiachong Shopping Center, which consists of 164 shops, as of December 31, 2018[104]. - The group plans to enhance tenant quality at Jiachao Shopping Center and diversify tenant types to meet various customer needs[116]. Foreign Exchange and Other Income - The company experienced a foreign exchange loss of HKD 83,350,000, which significantly impacted the overall comprehensive loss for the period[9]. - The company reported other income of HKD 7,996,000, an increase of 37.5% from HKD 5,790,000 in the previous year[9]. - Other income increased by approximately 38.1% to HKD 7,996,000, driven by higher electricity consumption by tenants and reduced payments from the electricity company[112]. Management and Governance - The company has not entered into any significant contracts where directors have a direct or indirect material interest during the reporting period[139]. - The company adheres to the corporate governance code as per the listing rules, enhancing accountability and transparency[148]. - The audit committee, consisting of four independent non-executive directors, supervises financial reporting, risk management, and internal controls[151].