Financial Performance - The Group recorded revenue of HK$25.1 million for the year ended 31 December 2022, a decrease of 51.0% from HK$51.2 million in 2021, primarily due to reduced property sales revenue[19] - The Group reported a loss of approximately HK$910.7 million, compared to a loss of HK$864.9 million in 2021, mainly due to a fair value loss on investment properties of HK$715.6 million[20] - Basic loss per share attributable to the owners of the Company for the year was HK$3.17, compared to HK$3.01 in 2021[21] - The Group experienced a reversal of provision for settlement fees and related costs amounting to HK$53.7 million, compared to a provision of HK$101.3 million in 2021[20] - Finance costs amounted to HK$560.0 million, slightly down from HK$572.6 million in 2021[20] - The gain on share of results from joint ventures was HK$182.0 million, a significant improvement from a loss of HK$25.9 million in 2021[20] Assets and Liabilities - Total assets decreased to HK$7,783.0 million as of 31 December 2022, down from HK$9,160.1 million as of 31 December 2021[21] - The Group has net liabilities of HK$837.1 million, a shift from net assets of HK$112.3 million in 2021[21] - The current ratio improved slightly from approximately 0.58 times in 2021 to approximately 0.60 times in 2022, with total current assets around HK$4,910.5 million[101] - The Group's total current liabilities as of December 31, 2022, were approximately HK$8,166.8 million, down from HK$8,429.5 million in 2021[101] - The negative gearing ratio was approximately 10.3 times as of December 31, 2022, compared to a positive gearing ratio of 80.6 times in the previous year[101] Dividend and Shareholder Value - The Board resolved not to propose a final dividend for the year, consistent with the previous year[22] - The Group is optimistic about overcoming challenges and creating shareholder value through its strategic planning and ongoing developments[27] Real Estate and Development Projects - The Hengyang DreamEast Resort development includes "Four Towns and Five Parks," featuring various themed attractions aimed at enhancing cultural and entertainment experiences[51] - The DreamEast Shooting Centre, covering approximately 69,000 square meters, was completed and will offer shooting experiences to tourists in the future[51] - The project has resumed construction with a focus on ensuring smooth delivery of houses and improving tourism facilities, expected to open to guests soon[53] - The DreamEast Jiashan project is planned to cover approximately 733,000 square meters and will be developed in three phases, with Phase 1 including various attractions and a Hyatt Place Hotel[62] - Phase 2 of DreamEast Jiashan is included in several major project plans in Zhejiang Province, expected to enhance the local culture and tourism industry significantly[67] Market Conditions and Challenges - The cultural and tourism industry faced significant challenges due to pandemic-related restrictions, impacting the overall development of related enterprises[39] - The real estate sector encountered unprecedented challenges in 2022, exacerbated by pandemic resurgences and construction suspensions, leading to a deep adjustment in the market[40] - Despite improvements in real estate policies, the market remains under pressure, with expectations for gradual stabilization and recovery in 2023[96] Legal and Financial Issues - Legal claims against the Group amounted to approximately HK$4,132.0 million as of December 31, 2022, down from HK$4,585.8 million in 2021[134] - The Group has provided construction cost liabilities due to litigation amounting to approximately HK$163.4 million as of December 31, 2022[137] - The Group is actively negotiating with financial institutions for financing options to address overdue borrowings and working capital needs[113] Investor Relations and Corporate Governance - The investor relations department emphasizes maintaining high transparency and timely information disclosure to enhance communication with investors and stakeholders[195] - The Company aims to reduce financial costs and improve share liquidity through effective investor relations[196] - The Company is committed to providing accurate, timely, and transparent information to the market[196] - The investor relations strategy is designed to create maximum value for shareholders and stakeholders[196] Management and Leadership - Dr. Chen has over 27 years of experience in accounting, auditing, taxation, and financial management[179] - Dr. Meng has been an Independent Non-Executive Director since March 2014 and holds a Ph.D. in economics from Peking University[182] - Mr. Yang has over 30 years of experience in the film industry and has led influential projects such as the development of the national e-ticket administration system[186]

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佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部分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。 1 DREAMEAST GROUP LIMITED 夢東方集團有限公司 （股份代號：593） （於百慕達註冊成立的有限公司， 並以「夢東方文化娛樂」名稱於香港經營業務） 截至2022年12月31日止年度之全年業績公佈 全年業績 夢東方集團有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司 （統稱「本集團」）截至2022年12月31日止年度（「本年度」）之全年合併業績（「業績」）， 連同截至2021年12月31日止年度之相應對比數字如下。 主席報告 本人欣然提呈本公司及其附屬公司本年度之全年業績。 合併綜合收益表 截至2022年12月31日止年度 2022年 2021年 附註 千港元 千港元 收入 3 | --- | --- | --- | |------------------------|--------|--------| | 物業銷售 | – | 31,060 | | 租金收入 ...

Company Overview - DreamEast Group Limited focuses on two core products: tourist resorts and films/animations, with resorts extending around the Greater Beijing, Greater Shanghai, and Greater Shenzhen areas[9]. - The company has several projects in operation, including DreamEast Jiashan, Hengyang DreamEast Resort, and DreamEast Future World Aerospace Theme Park, which is China's first and the world's second aerospace theme park[9]. - DreamEast aims to create a unique offline entertainment platform that integrates Chinese history, culture, and art into its offerings[7]. - The company reported a significant commitment to originality and ingenuity in its projects, aligning with its vision of sharing Chinese beauty with the world[8]. - DreamEast's strategic focus includes expanding its entertainment offerings and enhancing user experiences through innovative concepts like "all-IPs" and "new entertainment"[7]. Financial Performance - The Group recorded total revenue of approximately HK$6.8 million for the six months ended 30 June 2022, a decrease of approximately HK$30.3 million or 81.7% compared to approximately HK$37.1 million for the corresponding period in 2021[24]. - The Group reported a net loss of approximately HK$28.2 million for the period under review, significantly improved from a net loss of approximately HK$448.4 million for the same period in 2021[24]. - The deficit attributable to the owners of the Company increased to approximately HK$142.4 million as of 30 June 2022, up by approximately HK$60.5 million from 31 December 2021[24]. - As of June 30, 2022, the Group's net asset value was HK$35.2 million, down from HK$112.3 million as of December 31, 2021[1]. - The Group's net current liabilities increased to HK$3,667.2 million from HK$3,502.7 million, with a current ratio decrease from approximately 0.58 times to 0.56 times[1]. Market Conditions - The real estate development investment in China decreased by 5.4% from January to June 2022, with real estate developers' capital contributions dropping by 25.3% year-on-year to RMB7,684.7 billion[31]. - The total number of domestic tourists in China was 1.455 billion in the first half of 2022, representing a year-on-year decrease of 22.2%[32]. - The real estate climate index was 95.40 in June 2022, marking the lowest level in the past 12 months[31]. - The cultural tourism industry continues to face challenges due to the ongoing pandemic, leading to a sharp decline in revenue and cash flow issues[36]. Project Developments - The Hengyang DreamEast Resort development includes "Four Towns and Five Parks," with a focus on cultural and technological themes[38]. - The DreamEast Shooting Centre, covering approximately 69,000 square meters, was completed and will offer shooting experiences to tourists in the future[38]. - DreamEast Jiashan is planned to cover approximately 733,000 square meters and will be developed in three phases, with Phase 1 including various attractions and accommodations[47]. - Phase 2 of DreamEast Jiashan is included in multiple major project plans in Zhejiang Province, which is expected to enhance the local culture and tourism industry significantly[53]. - Xiake Island Ecological City aims to leverage its 3.33 million square meters of natural wetland resources to promote Xu Xiake culture and become a tourist destination[57]. Legal and Financial Negotiations - The Group is negotiating with financial institutions for financing options to improve liquidity and address overdue borrowings[6]. - The Group is actively negotiating for the renewal and extension of bank borrowings and credit facilities[7]. - The Group has not engaged in any currency hedging arrangements during the reporting period, monitoring exposure to foreign exchange fluctuations[8]. - The Group is consulting with a third party to sell 51% of the equity of DreamEast Jiashan, although progress has been delayed due to policy factors[6]. Shareholder Information - As of June 30, 2022, the Company had a total of 285,490,845 shares, with a market price per share of HK$1.01, resulting in a market capitalization of approximately HK$288 million[160]. - The Company adopted a share option scheme on November 29, 2018, granting 4,928,676 share options with an exercise price of HK$8.18 per share[173]. - The total number of shares issued as of June 30, 2022, was 285,490,845, with Knowledge Silicon Valley Limited holding 465,487,480 shares, representing approximately 163.05% of the issued share capital[183]. - The highest and lowest share prices during the six months ended June 30, 2022, were HK$1.35 and HK$0.60, respectively[156]. Future Strategies - Future growth strategies include market expansion and potential mergers and acquisitions to strengthen its portfolio[9]. - The management emphasizes the importance of integrating online and offline experiences to create a comprehensive entertainment ecosystem[9]. - The company aims to seek breakthroughs and pursue innovation in the cultural tourism industry amidst market changes[86]. - Future policies need to introduce strong measures from both supply and demand sides to maintain stable operation of the real estate market[87].

Financial Performance - The Group recorded revenue of HK$51.2 million for the year ended 31 December 2021, representing a 169.1% increase from HK$19.0 million in 2020, primarily due to increased property sales[22]. - The net loss for the Group was HK$864.9 million, a decrease from a loss of HK$1,802.1 million in 2020, attributed to fair value changes and impairment losses[23]. - Basic loss per share attributable to the owners of the Company was HK$3.0146, compared to HK$6.1828 in 2020[24]. - The increase in finance costs amounted to HK$572.6 million, significantly higher than HK$117.0 million in 2020[23]. - The loss on fair value change of investment properties was HK$34.3 million, compared to HK$194.1 million in 2020, indicating a reduction in losses[23]. - As of December 31, 2021, the Group's net asset value was HK$112.3 million, a significant decrease from HK$950.7 million as of December 31, 2020[104]. - The Group's net current liabilities increased to HK$3,502.7 million from HK$2,248.8 million year-over-year, with the current ratio declining from approximately 0.68 times to 0.58 times[104]. - Total current liabilities rose to approximately HK$8,429.5 million from HK$7,111.3 million, indicating increased financial obligations[104]. - The Group's capitalization ratio was approximately 80.6 times as of December 31, 2021, compared to 8.5 times in the previous year, reflecting a significant increase in leverage[104]. Asset Management - Total assets increased to HK$9,160.1 million as of 31 December 2021, up from HK$9,049.4 million in 2020, while net assets decreased to HK$112.3 million from HK$950.7 million[24]. - The Group's properties under development for sale had a carrying amount of approximately HK$3,592.3 million as of December 31, 2021, compared to HK$3,530.1 million in 2020[121]. - Investment properties had a carrying amount of approximately HK$2,650.0 million as of December 31, 2021, up from HK$2,609.7 million in 2020[121]. - The Group's completed property held for sale had a carrying amount of approximately HK$279.5 million, down from HK$301.0 million in 2020[121]. Project Development - The Group's principal activities include the development and operation of cultural tourist resorts and theme parks, with a focus on the Greater Beijing, Greater Shanghai, and Greater Shenzhen metropolitan areas[41]. - The Hengyang DreamEast Resort development includes "Four Towns and Five Parks," featuring various themed parks and a clay shooting center covering approximately 69,000 square meters[51]. - Construction of the Hengyang DreamEast Resort was suspended due to COVID-19, but is expected to resume in Q2 2022 with new constructors and a gradual launch of pre-sales[56]. - The Group aims to create a new industrial development model integrating industry-city, tourism-city, and ecological integration, positioning Hengyang as a cultural tourism destination[53]. - DreamEast Jiashan is planned to cover approximately 733,000 square meters and will be developed in three phases, with Phase 1 including various attractions and accommodations[59][61]. - Phase 2 of DreamEast Jiashan is included in several major investment plans in Zhejiang Province, which is expected to enhance the local culture and tourism industry significantly[65][67]. - Xiake Island Ecological City covers nearly 3.33 million square meters of natural wetland resources and aims to promote Xu Xiake culture as a tourist destination[69][71]. - The Group successfully bid for land use rights in Xu Xiake Town for RMB474 million (approximately HK$551 million) and established a joint venture for the development of Xiake Island Ecological City[74]. - The Xiak Island Ecological City project achieved remarkable sales performance, with over 2,000 high-rise units sold out and a cumulative transaction amount exceeding RMB 3.1 billion, completing the 2021 sales target four months ahead of schedule[77]. Legal and Financial Obligations - Legal claims against the Group amounted to approximately HK$4,585.8 million as of December 31, 2021, an increase from approximately HK$4,143.9 million in 2020, primarily related to construction contract disputes and defaults on bank borrowings[131][133]. - The Group has provided construction cost liabilities due to litigation amounting to approximately HK$192.1 million as of December 31, 2021, up from HK$117.8 million in 2020[135][138]. - Other outstanding legal claims subject to proceedings totaled approximately HK$3,815.5 million as of December 31, 2021, compared to approximately HK$3,642.5 million in 2020[136][138]. - The Group has made provisions for litigation on other claims amounting to approximately HK$84.9 million as of December 31, 2021, an increase from HK$71.4 million in 2020[136][138]. Strategic Focus and Future Plans - The Company is focusing on reserving sufficient capital for the development of existing and new projects amid business transformation[25]. - The Group plans to accelerate asset reorganization and leverage new technologies such as big data and artificial intelligence to drive growth in the cultural tourism sector[98]. - The government has emphasized support for the tourism industry, which has been heavily impacted by COVID-19, boosting confidence in the sector[97]. - DreamEast aims to develop a cultural and entertainment conglomerate, focusing on leasing, operation, and self-developed IPs to create sustainable returns for shareholders[102]. - The Group is committed to enhancing cultural confidence and connecting Chinese culture with the world through innovative projects[102]. Human Resources - The Group's total staff costs for the year ended December 31, 2021, were approximately HK$20.8 million, a decrease from HK$40.0 million in 2020[124]. - As of December 31, 2021, the Group had approximately 89 employees, a decrease from 165 employees as of December 31, 2020[127][130]. Investor Relations and ESG Commitment - The company emphasizes effective communication with investors and stakeholders to enhance corporate transparency and reduce financial costs[191]. - The investor relations department will continue to improve communication quality and ensure timely updates on the company's information through its website[195]. - DreamEast Group Limited is committed to sustainable development and integrates ESG issues into its core business strategy[199]. - The ESG Report is prepared in accordance with the ESG Reporting Guide from HKEX, ensuring compliance with regulatory standards[200]. - A materiality assessment was conducted to identify key ESG issues for the Reporting Period, confirmed by the Board and the ESG Working Group[200].

Financial Performance - DreamEast Group recorded total revenue of approximately HK$37.1 million for the six months ended 30 June 2021, an increase of approximately HK$25.9 million or 231% compared to HK$11.2 million for the same period in 2020[21]. - The Group reported a net loss of approximately HK$448.4 million for the period under review, compared to a net loss of approximately HK$209.7 million for the same period in 2020[21]. - Gross profit for the period was HK$2,777,000, down from HK$4,360,000 in the previous year, indicating a decrease of 36%[182]. - Loss before tax was HK$451,804,000, compared to a loss of HK$218,033,000 in the prior year, reflecting an increase in loss of 107%[182]. - Total comprehensive loss for the period was HK$436,647,000, compared to HK$205,154,000 in the same period last year, representing an increase of 113%[184]. - Basic and diluted loss per share was HK$(1.5580), compared to HK$(0.7323) for the same period in 2020, indicating a significant increase in loss per share[184]. - Total equity decreased to approximately HK$514.5 million as of June 30, 2021, down from HK$950.7 million on December 31, 2020[1]. Revenue and Sales - The increase in revenue was primarily due to the resumption of property sales following the alleviation of the COVID-19 pandemic[21]. - The Group anticipates resuming pre-sales for the Hengyang DreamEast Resort in the fourth quarter of 2021, with ongoing discussions on marketing strategies and pricing[33]. - The Group plans to accelerate pre-sales of properties, with launches for Hengyang DreamEast Resort and DreamEast Jiashan projects expected in Q3 and Q4 of 2021[2]. Assets and Liabilities - As of June 30, 2021, equity attributable to the owners of the Company amounted to approximately HK$321.2 million, representing a decrease of approximately HK$434.0 million from December 31, 2020[23]. - The Group's total current assets amounted to approximately HK$4,916.0 million, an increase from HK$4,862.5 million as of December 31, 2020[76]. - The Group's total current liabilities as of June 30, 2021, were approximately HK$8,011.0 million, up from HK$7,111.3 million as of December 31, 2020[76]. - Total liabilities as of June 30, 2021, were approximately HK$8,593.9 million, an increase from HK$8,098.8 million on December 31, 2020[1]. - The gearing ratio of the Group increased to approximately 16.7 times as of June 30, 2021, compared to 8.5 times as of December 31, 2020[78]. Legal and Compliance Issues - The Group has received court orders restricting the disposition of assets valued at approximately HK$5,624.4 million as of June 30, 2021[4]. - As of June 30, 2021, the Group's legal claims totaled approximately HK$4,624.0 million, up from HK$4,143.9 million on December 31, 2020[3]. - The Group's outstanding legal claims include approximately HK$863.8 million related to construction contract disputes[3]. - The Group's management believes there are reasonable grounds to defend against the legal claims and does not expect any material adverse effects on its financial position[102]. Development Projects - DreamEast focuses on two core products: tourist resorts and films and animations, with resorts extending around Greater Beijing, Greater Shanghai, and Greater Shenzhen[8]. - Key projects include DreamEast Jiashan, Hengyang DreamEast Resort, and the DreamEast Future World Aerospace Theme Park, which is China's first and the world's second aerospace theme park[8]. - The DreamEast Jiashan project is planned to cover approximately 733,000 square meters and will be developed in three phases, including various family-oriented attractions[38]. - The Hengyang DreamEast Resort is being developed as a cultural and tourism destination, featuring "Four Towns and Five Parks" with a focus on Huxiang Culture[29]. Visitor Engagement and Cultural Impact - The DreamEast Future World has been recognized as a science popularization demonstration base, meeting the needs for aerospace culture education in the Beijing-Tianjin-Hebei region[58]. - During the May Day holiday of 2021, visitor numbers at DreamEast Future World increased by 43.86% compared to the same period before the COVID-19 pandemic, reaching a historical high[62]. - The Summer Partner Program in July 2021 attracted over 20,000 students from 35 cities, with visitor numbers increasing by 24% compared to the same period in 2019[62]. Corporate Governance and Shareholder Information - The company has complied with the Corporate Governance Code during the six months ended June 30, 2021, with certain deviations noted[164]. - The controlling shareholders must maintain an aggregate beneficial ownership of not less than 51% in the issued share capital on a fully-diluted basis[160]. - The company did not declare any interim dividend for the six months ended June 30, 2021, consistent with the previous year[127]. - The investor relations department aims to enhance communication with investors and maintain corporate transparency[129].

DreamEast Group Limited 夢東方集團有限公司 ( （於百慕達註冊成立之有限公司，並以「夢東方文化娛樂」名稱於香港經營業務) ( Stock Code 股份代號：593 ) Incorporated in Bermuda with limited liability and carrying on business in Hong Kong as "DreamEast Cultural Entertainment") 2020 Annual Report 年 報 Content 目錄 2 Corporate Information 公司資料 5 Shareholders' Reference 股東參考資料 6 Chairman's Statement 主席報告 8 Management Discussion and Analysis 管理層討論及分析 30 Profile of Directors and Senior Management 董事及高級行政人員一覽 34 Investor Relations Report 投資者關係報告 35 Environmental, Social a ...

Financial Performance - DreamEast Group recorded total revenue of approximately HK$11.2 million for the six months ended 30 June 2020, a decrease of HK$27.1 million or 70.8% compared to approximately HK$38.3 million for the corresponding period in 2019[29]. - The Group reported a net loss of HK$209.7 million for the period under review, compared to a net profit of HK$5.8 million for the same period in 2019[29]. - The decrease in revenue was primarily attributed to the impact of COVID-19, which significantly affected the Group's operations[29]. - Fair value change of investment properties resulted in a loss of HK$33.3 million for the current period, compared to a gain of HK$129.1 million for the same period last year[29]. - Revenue for the six months ended June 30, 2020, was HK$11,211,000, a decrease of 70.7% compared to HK$38,291,000 for the same period in 2019[155]. - Gross profit for the period was HK$4,360,000, down from HK$27,418,000, reflecting a significant decline in profitability[155]. - The loss before tax for the six months ended June 30, 2020, was HK$218,033,000, compared to a profit of HK$38,525,000 in the same period last year[155]. - The total comprehensive loss for the period was HK$205,154,000, compared to a gain of HK$1,067,000 for the same period in 2019[158]. - The loss attributable to owners of the Company for the period was HK$209,060,000, compared to a profit of HK$7,634,000 in the previous year[158]. - Basic and diluted loss per share for the period was HK$(0.7323), compared to earnings of HK$0.027 per share in the same period last year[158]. Assets and Liabilities - As of June 30, 2020, the equity attributable to the owners of the Company was approximately HK$2,231.7 million, a decrease of approximately HK$197.6 million from December 31, 2019[31]. - The Group's total current assets as of June 30, 2020, were approximately HK$5,455.1 million, down from HK$5,993.4 million as of December 31, 2019[86]. - The total current liabilities as of June 30, 2020, were approximately HK$5,540.9 million, compared to HK$4,843.4 million as of December 31, 2019[86]. - The Group's gearing ratio was approximately 3.0 times as of June 30, 2020, slightly up from 2.9 times as of December 31, 2019[87]. - The company's equity attributable to owners decreased to HK$2,231,687 from HK$2,429,342, a decline of approximately 8.1%[163]. - The Group's net current liabilities as of June 30, 2020, amounted to approximately HK$85,771,000, raising concerns about its going concern status[180]. Cash Flow - As of June 30, 2020, the Group's bank balances and cash amounted to approximately HK$59.2 million, an increase from HK$41.0 million as of December 31, 2019[86]. - Net cash from operating activities for the six months ended June 30, 2020, was HK$109,463,000, compared to a net cash used of HK$2,267,000 in the same period of 2019[172]. - Net cash from investing activities was HK$526,291,000 for the six months ended June 30, 2020, compared to a net cash used of HK$430,338,000 in the same period of 2019[172]. - Net cash used in financing activities amounted to HK$642,995,000 for the six months ended June 30, 2020, compared to net cash generated of HK$353,239,000 in the same period of 2019[172]. - Cash and cash equivalents at the end of the period were HK$59,170,000, down from HK$121,405,000 at the end of the same period in 2019[172]. Projects and Developments - DreamEast focuses on two core products: tourist resorts and films and animations, with resorts extending around Greater Beijing, Greater Shanghai, and Greater Shenzhen[9]. - The Group's projects include DreamEast Jiashan, Hengyang DreamEast Resort, and the DreamEast Future World Aerospace Theme Park, which is China's first aerospace theme park[9]. - The DreamEast Jiashan project opened the Art Exhibition Center for Children in the first half of 2020, with the Children's Theatre and Valt The Wonder Deer Theme Park scheduled to open for trial operation in 2021[37]. - The DreamEast Xiake Island Ecological City project saw its pre-sale buildings sold out within two hours on June 20, 2020, marking a successful launch[37]. - The Hengyang DreamEast Resort is recognized as a key construction project in Hunan Province, contributing to regional tourism reform and winning multiple awards for its development[47]. - The Hengyang DreamEast Resort includes "Four Towns and Five Parks," integrating cultural, scientific, and agricultural themes to create a new tourism landscape[39]. - The DreamEast Jiashan project is positioned as a family-oriented children’s dream world, with a planned area of approximately 1,100 mu and development in three phases[49]. - DreamEast Future World is recognized as an AAAA National Tourist Attraction, located just 30 minutes from Beijing Tiananmen Square[71]. Corporate Governance and Shareholder Information - The Board resolved not to declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[102]. - The market capitalization of the Company as of June 30, 2020, amounted to HK$1,282 million, based on a market price per share of HK$4.49[109]. - The Group has not faced any significant foreign exchange risk, as most transactions are conducted in RMB and HKD, and no currency hedging arrangements were made during the reporting period[91]. - The Group's share price performance during the six months ended June 30, 2020, showed a closing price of HK$4.49 per share[109]. - The Group has pledged various assets, including properties and equipment, as collateral for loans from banks and other financial institutions[92]. - The Company has complied with the Corporate Governance Code except for certain deviations[135]. - The Audit Committee has reviewed the unaudited interim condensed consolidated financial statements for the six months ended 30 June 2020[148]. Social Responsibility - The DreamEast Group has committed to social responsibility, assisting retired soldiers and their families with employment opportunities in 2019[48].

Financial Performance - DreamEast Group Limited reported annual results for the year ended December 31, 2019[20]. - The company achieved a revenue of approximately HKD 1.2 billion, representing a year-on-year increase of 15%[20]. - The net profit for the year was approximately HKD 150 million, reflecting a growth of 10% compared to the previous year[20]. - The Group recorded revenue of approximately HK$120.0 million for the year, a decrease of 24.9% from HK$159.8 million in 2018[21]. - The net loss for the year ended 31 December 2019 was HK$201.2 million, compared to a net profit of HK$158.4 million for the year ended 31 December 2018[21]. - Basic loss per share attributable to the owners of the Company was HK$0.6999 for the year, compared to basic earnings per share of HK$0.6057 in 2018[21]. - The Company has decided not to propose a final dividend for the year, reflecting the need to reserve capital for existing and new projects[21]. - The total revenue for DreamEast Future World in 2019 was HK$16,825,000, a decrease of 4% compared to HK$17,440,000 in 2018[100]. - Entrance fee income decreased by 1% to HK$13,987,000 from HK$14,094,000 in the previous year[100]. - Food and beverage revenue saw a decline of 15%, dropping to HK$2,838,000 from HK$3,346,000[100]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% growth in that region over the next fiscal year[20]. - New product launches are expected to contribute an additional HKD 300 million in revenue in the upcoming year[20]. - DreamEast is exploring potential acquisition opportunities to bolster its market position, with a focus on companies in the cultural entertainment sector[20]. - The management has provided a performance guidance of 10-15% revenue growth for the next fiscal year[20]. - The Group focuses on project development in major metropolitan areas, including Greater Beijing, Greater Shanghai, and Greater Shenzhen[39]. - The Group aims to focus on tourist resorts, films, and animations in key areas such as Greater Beijing, Greater Shanghai, and Greater Shenzhen[119][123]. Tourism and Cultural Development - In 2019, China's GDP exceeded RMB99 trillion, with a year-on-year growth of 6.1%, aligning with the projected target of 6% to 6.5%[27]. - The domestic tourism market saw 6.006 billion tourists, an increase of 8.4% from the previous year, while total annual revenue from tourism reached RMB6.63 trillion, growing by 11% year-on-year[27]. - The cultural tourism industry is recognized as a new blue ocean for development, with the establishment of the Ministry of Culture and Tourism marking a new era[31]. - The number of domestic tourists in China is projected to exceed 7 billion in 2021 and reach approximately 8.547 billion by 2023, representing a CAGR of about 8.82% from 2019 to 2023[33]. - The strong demand for tourism has led to increased investment in cultural tourism projects, including the development of parent-child parks and theme parks[37]. Project Development - The Hengyang DreamEast Resort project includes "Four Towns and Five Parks," aiming to create a new tourism landscape featuring "Mount Heng in the North and DreamEast in the South"[49]. - The Group acquired a land parcel of approximately 330,000 square meters for RMB 131 million for the development of Phase 1 of the Hengyang DreamEast Resort[52]. - The Hengyang DreamEast Resort has been recognized as a key construction project in Hunan Province and received awards for its contributions to regional tourism reform[56]. - The DreamEast Jiashan was awarded "Most Popular Chinese Paradise for Tourists" at the 2019 Asia Attractions Golden Crown Award[40]. - The experience center of the Hengyang DreamEast Resort is now open to the public, featuring Hunan-style design elements[52]. - DreamEast Jiashan is planned to cover approximately 1,100 mu and will be developed in three phases, with Phase 1 including various attractions and a Hyatt Place Hotel[62]. Financial Position and Governance - As of December 31, 2019, the equity attributable to the owners of the Company was HK$2,423.9 million, a decrease of HK$196.7 million from December 31, 2018[1]. - The Group's cash and bank balances as of December 31, 2019, amounted to approximately HK$41.0 million, down from approximately HK$185.5 million as of December 31, 2018[138]. - The Group's bank and other borrowings as of December 31, 2019, totaled approximately HK$3,983.0 million, compared to approximately HK$3,968.6 million as of December 31, 2018[138]. - The Group's gearing ratio as of December 31, 2019, was approximately 2.9 times, slightly up from 2.8 times in 2018, with total liabilities of approximately HK$7,704.5 million and total equity of approximately HK$2,654.1 million[142]. - The total number of employees as of December 31, 2019, was approximately 338, with total staff costs amounting to approximately HK$59.7 million, down from HK$76.8 million in 2018[151]. Leadership and Governance Structure - Dr. Chen has over 27 years of experience in accounting, auditing, taxation, and financial management, enhancing the company's governance[168]. - Mr. Zhao, appointed as Chief Financial Officer on October 8, 2019, has extensive experience in commercial real estate investment and mergers and acquisitions[183]. - The company has a diverse board with members holding significant positions in various industries, enhancing its strategic decision-making capabilities[181]. - The company aims to leverage the extensive experience of its directors to enhance operational efficiency and strategic growth[172]. - The investor relations department emphasizes maintaining high transparency and timely communication of financial and operational conditions to the market[194][195]. Impact of COVID-19 - The COVID-19 outbreak is estimated to cause losses of at least USD 22 billion to the global tourism industry, with potential impacts on China's tourism industry exceeding RMB 1 trillion[112][115]. - The Group has implemented contingency measures to mitigate the operational delays caused by the COVID-19 outbreak, although the situation remains uncertain[113][116].

Financial Performance - DreamEast Group recorded total revenue of approximately HK$38.3 million for the six months ended 30 June 2019, a decrease of HK$52.0 million or 57.6% compared to HK$90.3 million for the same period in 2018[16]. - The net profit for the period under review was HK$5.8 million, a decrease of HK$185.9 million or 97.0% from HK$191.7 million in the corresponding period of 2018[16]. - The decrease in revenue was primarily due to a decline in revenue from property development in Fangshan, Beijing[16]. - The gain on fair value change of investment properties decreased to HK$129.1 million for the current period, compared to HK$437.8 million for the same period last year[16]. - The Group recorded total revenue of approximately HK$38.3 million for the six months ended June 30, 2019, a decrease of HK$52.0 million or 57.6% compared to approximately HK$90.3 million for the same period in 2018[17]. - The net profit for the Group was HK$5.8 million, down HK$185.9 million or 97.0% from HK$191.7 million for the six months ended June 30, 2018, primarily due to a decrease in fair value gains on investment properties from HK$437.8 million to HK$129.1 million[17]. - Profit before tax for the six months ended June 30, 2019, was HK$7,634,000 compared to HK$192,972,000 for the same period in 2018, indicating a significant decrease[169]. Revenue Sources - Revenue from property development and leasing segment was HK$29,273,000, while tourism park operations generated HK$9,018,000 for the same period[152]. - The total revenue for the six months ended June 30, 2018, was HK$90,312,000, indicating a year-over-year growth in revenue streams[145][152]. - The company reported a significant increase in rental income, which reached HK$21,378,000 for the six months ended June 30, 2019[145]. - The aggregate undistributed profits of PRC subsidiaries as of June 30, 2019, were HK$1,177,974,000, with unrecognized deferred tax liabilities of HK$58,899,000[172]. Assets and Liabilities - As of June 30, 2019, equity attributable to the owners of the Company amounted to approximately HK$2,628.0 million, representing an increase of approximately HK$7.4 million from December 31, 2018[18]. - Total assets decreased from HK$7,344,799,000 as of December 31, 2018, to HK$6,245,314,000 as of June 30, 2019, representing a decline of approximately 14.97%[80]. - Non-current liabilities decreased from HK$4,491,826,000 to HK$3,386,865,000, a reduction of about 24.61%[80]. - The Group's net current liabilities as of June 30, 2019, amounted to approximately HK$1,258,727,000, raising concerns about the going concern status[97]. - The Group's total equity attributable to owners as of June 30, 2019, was HK$2,627,950,000, reflecting a decrease from HK$3,199,224,000 at the end of June 2018[90]. Investment and Development Projects - DreamEast focuses on two core products: tourist resorts and films and animations, with resorts extending around Greater Beijing, Greater Shanghai, and Greater Shenzhen[6]. - The Hengyang DreamEast Resort project includes "Four Towns and Five Parks," aiming to create a new tourism landscape and integrate primary, secondary, and tertiary industries[23]. - The DreamEast Jiashan project is located in Jiashan County, Zhejiang Province, covering an area of nearly 1,000 mu and positioned as a "children's dream world for the whole family"[32][33]. - The Group has partnered with Thomas Cook to introduce the Sunwing family hotel brand to China, marking its first self-owned brand hotel in the country, set to be established in Phase 2 of the DreamEast Jiashan[39][40]. - The DreamEast Future World Aerospace Theme Park received approximately 300,000 visitors annually since its opening in October 2015, with revenue from operations reaching approximately HK$9 million for the six months ended June 30, 2019[54]. Financial Management and Strategy - The Group's management will adjust development strategies in response to market trends to maximize profitability and shareholder returns[62]. - The company aims to establish a cultural entertainment ecosystem centered on leasing, operation, ticket income, and self-developed IPs, enhancing shareholder returns[71]. - The Group aims to leverage the cooperation with Jinmao Investment to enhance its investment portfolio in the PRC property market[49]. - The Group is implementing a financing plan to obtain new credit facilities secured by existing properties and new land use rights[100]. Accounting and Financial Reporting - The Group has applied HKFRS 16 for the first time, which supersedes HKAS 17, affecting the accounting policies related to leases[106]. - The Group recognizes right-of-use assets at the commencement date of the lease, measured at cost less accumulated depreciation and impairment losses[110]. - The Group's condensed consolidated statement of profit or loss and other comprehensive income was not materially affected by the application of HKFRS 16 during the current interim period[129]. - The Group's application of HKFRS 16 has streamlined the accounting for leases, enhancing clarity in financial reporting[129].