SOUTH CHINA FINANCIAL HOLDINGS LIMITED 南 華 金 融 控 股 有 限 公 司 (於香港註冊成立之有限公司) (股份代號：00619) 截至二零二四年六月三十日止六個月 中 期 報 告 未經審核中期業績 South China Financial Holdings Limited南 華 金 融 控 股 有 限 公 司 (「本 公 司 J) 之 董 事 會 本 公司 及 其 附 屬 公 司 ( 統 稱 「本 集 團 J 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 ( 該 期 問 J 未 經 審 核 綜合業績連同相關比較數字如下: 簡 明 綜 合 損 益 表 | --- | --- | --- | --- | |------------------------------------------------------------------------------|-------|-----------------------------------------------------------------------|---------------- ...

Financial Performance - For the six months ended June 30, 2024, the company reported a loss of HKD 47,787,000 compared to a loss of HKD 45,638,000 for the same period in 2023, representing an increase in loss of approximately 4.7%[2] - The company's revenue for the current period was HKD 17,695,000, a decrease from HKD 20,939,000 in the previous year, indicating a decline of about 15.7%[1] - The loss before tax from continuing operations was HKD 43,866,000, compared to a loss of HKD 32,484,000 in the prior year, reflecting a deterioration of approximately 35.5%[2] - The company reported a net loss attributable to equity holders of HKD 47,787,000, compared to HKD 45,638,000 in the previous year, which is an increase of approximately 4.7%[3] - The basic and diluted loss per share for the current period was HKD 15.86, compared to HKD 14.43 in the previous year, reflecting an increase of about 9.9%[2] - The group's consolidated revenue for the six months ended June 30, 2024, was HKD 17,700,000, a decrease from HKD 20,900,000 in the same period of 2023[41] - The consolidated loss from discontinued operations for the six months ended June 30, 2024, was HKD 4,300,000, compared to HKD 13,200,000 in 2023[41] Assets and Liabilities - Total assets as of June 30, 2024, were valued at HKD 1,077,293,000, down from HKD 1,110,984,000 as of December 31, 2023, indicating a decrease of about 3.0%[4] - The company's cash and bank balances decreased to HKD 46,244,000 from HKD 52,031,000, a decline of approximately 11.2%[4] - The total liabilities as of June 30, 2024, were HKD 609,149,000, slightly up from HKD 607,511,000 at the end of 2023, indicating a marginal increase of about 0.3%[4] - As of June 30, 2024, the group's current liabilities exceeded its current assets by approximately HKD 124,129,000[8] - The total non-current liabilities amounted to HKD 300,490,000 as of June 30, 2024, an increase from HKD 280,344,000 as of December 31, 2023[5] - The group's total equity decreased to HKD 173,582,000 as of June 30, 2024, down from HKD 221,459,000 as of December 31, 2023[6] Operational Changes and Strategy - The company has not provided specific guidance for future performance or new product developments in the current report[1] - The group has decided to terminate its media publishing and financial public relations services to better allocate resources, effective from April 2024[21] - The company plans to focus on expanding its wealth management and corporate consulting services to enhance revenue streams in the future[12] - The company is exploring new technologies and products to improve operational efficiency and customer engagement in the upcoming quarters[12] - The company plans to focus resources on improving the financial services division's performance following the cessation of media and jewelry operations[57] - The company aims to diversify revenue sources by expanding into asset and wealth management, corporate consulting, and insurance services[57] - The company will maintain a cautious approach to business strategy and operational efficiency in response to an uncertain economic outlook[57] Financing and Capital Structure - The group has secured a total of HKD 151,600,000 in unsecured interest-bearing financing from a director and other directors, with HKD 114,680,000 drawn as of June 30, 2024[8] - The company is in discussions with banks for refinancing to meet its operational and financial needs in the near future[8] - The board is considering various alternatives to strengthen the group's capital base, including cost restructuring and seeking new investment opportunities[8] - As of June 30, 2024, the total amount of unsecured loans from major shareholders and directors is HKD 114,680,000, an increase from HKD 89,800,000 as of December 31, 2023[33] - The company issued HKD 50,000,000 of convertible bonds at a conversion price of HKD 0.22 per share on June 30, 2020, with a maturity of three years and no interest[34] - The company has confirmed that the 2020 convertible bonds will not be converted into ordinary shares and will be classified as non-current liabilities as of June 30, 2024[35] - The company completed the acquisition of Genius Year Limited and its subsidiaries on January 13, 2023, with a payment of HKD 89,840,000 in convertible bonds[35] - The 2023 convertible bonds have a maturity of three years, an annual interest rate of 1%, and a conversion price of HKD 0.32 per share, allowing for the conversion of up to 280,750,000 shares[36] - As of June 30, 2024, the total amount of 2023 convertible bonds is classified as non-current liabilities, with no requests for conversion or repayment expected within the next twelve months[36] Revenue Streams - Customer contract revenue for the six months ended June 30, 2024, was HKD 7,693 million, down from HKD 11,425 million in 2023, indicating a decrease of about 32.5%[13] - Interest income from loans and trade receivables was HKD 2,463 million for the six months ended June 30, 2024, down from HKD 3,907 million in 2023, reflecting a decrease of approximately 37.0%[14] - The company reported a significant increase in rental income, which rose to HKD 3,306 million for the six months ended June 30, 2024, compared to HKD 2,313 million in 2023, marking an increase of about 42.9%[14] - The margin lending and credit borrowing segment's revenue increased by approximately 20.3% to HKD 7,100,000 in 2024, up from HKD 5,900,000 in 2023, with an operating profit of HKD 300,000 compared to a loss of HKD 2,800,000 in 2023[44] - The asset and wealth management segment recorded a revenue of HKD 2,200,000 in 2024, a decrease of 58.2% from HKD 5,300,000 in 2023, resulting in an operating loss of HKD 3,400,000 compared to a loss of HKD 1,400,000 in 2023[45] - The corporate advisory and underwriting segment generated revenue of HKD 1,200,000 in 2024, significantly up from HKD 300,000 in 2023[46] Compliance and Governance - The company has established a compliance committee consisting of three independent non-executive directors to oversee financial reporting[63] - The interim results for the year 2024 have been reviewed by the audit committee and are deemed to comply with applicable accounting standards[63] - The interim report for the year 2024 will be made available to shareholders and published on the company's website[63]

Financial Performance - The group's consolidated revenue from continuing operations for the year ended December 31, 2023, was HKD 67.8 million, an increase of approximately 41.6% compared to HKD 47.9 million in 2022[6]. - The total operating expenses from continuing operations remained at HKD 132.7 million, unchanged from 2022[6]. - The group decided to terminate its jewelry business, resulting in a consolidated loss of HKD 2.7 million for the discontinued operation in 2023, compared to HKD 1.4 million in 2022[6]. - Brokerage commission and fee income decreased by approximately 19.6% to HKD 11.4 million in 2023, down from HKD 14.2 million in 2022[9]. - The income from margin financing and credit borrowing increased to HKD 12.9 million in 2023, up from HKD 10.9 million in 2022[10]. - The asset and wealth management segment recorded revenue of HKD 11 million, a 37.1% increase from HKD 8.1 million in 2022[11]. - The group generated HKD 1.4 million in revenue from financial consulting services in 2023, compared to no revenue in 2022[12]. - Media division revenue for the fiscal year 2023 was HKD 25,000,000, a decrease of 13.9% from HKD 29,000,000 in 2022[15]. - The media division reported an operating loss of HKD 20,200,000, compared to a loss of HKD 15,300,000 in 2022, excluding impairment losses of HKD 39,900,000[15]. - Revenue from the jewelry business decreased to HKD 11,200,000 in 2023 from HKD 20,500,000 in 2022, resulting in a net loss of HKD 2,700,000[17]. Investment and Assets - The investment portfolio decreased from HKD 122.3 million at the end of 2022 to HKD 47 million at the end of 2023[13]. - The market investment fair value loss for the year was HKD 7.2 million, significantly reduced from HKD 36.4 million in 2022[14]. - Total rental income for the property investment segment increased to HKD 5,600,000 in 2023 from HKD 4,600,000 in 2022[16]. - The fair value of investment properties was revalued at HKD 509,400,000 with no fair value changes recorded in 2023[16]. - The acquisition of Genius Year Limited was completed for HKD 89,800,000 through the issuance of convertible bonds, expanding into forestry business[18]. Capital and Liquidity - The capital adequacy ratio as of December 31, 2023, was approximately 64.8%, up from 54.3% in 2022[19]. - Cash balance as of December 31, 2023, was HKD 52,000,000, a decrease of 1.7% from HKD 52,900,000 in 2022[19]. - The company did not declare an interim dividend for the fiscal year ending December 31, 2023, and the board does not recommend a final dividend for the same period[56]. - As of December 31, 2023, the company had no distributable reserves[67]. - The board has adopted a dividend policy to determine the declaration and payment of dividends based on the group's financial performance and other relevant factors[58]. - The company has a policy to retain sufficient reserves for future growth while distributing profits to shareholders[59]. Employee and Organizational Development - The total number of employees decreased to 146 in 2023 from 181 in 2022, with employee costs amounting to HKD 51,100,000[25]. - The company emphasizes the importance of employee development as a key asset and aims to be an attractive employer through various incentive measures[33]. - The company has established multiple communication channels to enhance customer service and increase market penetration[34]. - The company recognizes suppliers as crucial for building quality business relationships and actively engages with them to ensure the provision of quality and sustainable products and services[35]. Risk Management - The company has identified potential risks including fluctuations in the fair value of financial assets, interest rate changes, credit risk during economic downturns, and uncertainties in fiscal, political, and monetary policies[37]. - The company has implemented a series of risk mitigation controls and management policies to address identified risks and closely monitors the selection of quality clients[37]. - The company has established multiple committees to formulate and review risk control strategies, policies, and guidelines[37]. - The board is responsible for evaluating and determining the nature and extent of risks the group is willing to take to achieve its strategic objectives[150]. - Management has established ongoing procedures to identify, assess, and manage significant risks faced by the group, reporting to the board at least twice a year[151]. Corporate Governance - The company emphasizes accountability and transparency in corporate governance practices[117]. - The board of directors is responsible for the company's sustainable development and ensures that environmental, social, and governance (ESG) risks are considered in long-term business planning[195]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange regulations[123]. - The board composition includes a mix of executive and independent non-executive directors to ensure balanced decision-making[130]. - The audit committee has reviewed and fulfilled its corporate governance responsibilities for the year ending December 31, 2023[123]. - The company regularly reviews its corporate governance policies and practices to comply with legal and regulatory requirements[125]. Environmental, Social, and Governance (ESG) Initiatives - The company focuses on reducing its operational environmental impact and promotes environmental protection within its community[197]. - The company has established a risk register to manage key risks, including those related to environmental, social, and governance issues[196]. - The company continues to focus on two key ESG areas: environment and social responsibility, balancing their impact on strategic planning[195]. - Total greenhouse gas emissions decreased from 142.97 tons in 2022 to 132.09 tons in 2023, representing a reduction of approximately 7.5%[200]. - The company encourages employees to use eco-friendly public transport and video conferencing to minimize business travel and associated emissions[197]. Shareholder Communication and Rights - The company provides shareholders with communication channels through annual meetings, reports, announcements, and its website[182]. - Shareholders holding at least 5% of total voting rights can request a special general meeting, and the request must specify the general nature of the business to be addressed[185]. - The company emphasizes effective communication with shareholders and potential investors through its website, which provides timely updates on business operations and financial information[190].

Financial Performance - For the fiscal year ending December 31, 2023, the total revenue was HKD 67,785,000, representing a 41.7% increase from HKD 47,875,000 in the previous year[2] - The net loss for the year was HKD 139,998,000, a decrease from the previous year's loss of HKD 151,659,000, indicating an improvement of approximately 7.7%[3] - The loss from continuing operations before tax was HKD 140,893,000, compared to HKD 153,966,000 in the prior year, reflecting a reduction of about 8.5%[3] - The total comprehensive loss for the year was HKD 140,656,000, compared to HKD 155,774,000 in the previous year, showing a reduction of about 9.7%[5] - The basic and diluted loss per share for the year was HKD 0.461, slightly improved from HKD 0.502 in the previous year[3] - The group reported a net loss of HKD 139,998,000 for the year ending December 31, 2023, compared to a net loss of HKD 151,659,000 in 2022[13] Revenue Breakdown - Total revenue from external customers for the year ended December 31, 2023, was HKD 67,785,000, a decrease from HKD 47,875,000 in the previous year[25] - Commission and brokerage income decreased to HKD 17,263,000 in 2023 from HKD 18,554,000 in 2022[19] - Service income increased significantly to HKD 1,839,000 in 2023 from HKD 385,000 in 2022[19] - The group’s commission and fee income decreased by approximately 19.6% to HKD 11.4 million in 2023, down from HKD 14.2 million in 2022[68] - The asset and wealth management segment achieved revenue of HKD 11.0 million, representing a growth of 37.1% from HKD 8.1 million in 2022[70] - The group generated revenue of HKD 1.4 million from financial advisory services in the fiscal year 2023, compared to no revenue in 2022[72] Expenses and Losses - The company reported a significant impairment loss of HKD 39,943,000 on property, plant, and equipment, compared to HKD 8,875,000 in the previous year[2] - Other income decreased to HKD 2,433,000 from HKD 8,010,000, marking a decline of approximately 69.6%[2] - The company experienced a net loss of HKD 7,585,000 from receivables and trade items, compared to HKD 5,098,000 in the previous year[2] - The total operating expenses were HKD 132,728,000, consistent with the previous year's expenses of HKD 132,729,000, indicating stability in operational costs[2] - The cost of services provided increased to HKD 7,566,000 in 2023 from HKD 6,709,000 in 2022, reflecting a rise of approximately 12.8%[27] - Media publishing and financial public relations service costs rose to HKD 31,080,000 in 2023, up from HKD 26,783,000 in 2022, marking an increase of about 15.5%[27] Assets and Liabilities - Total assets decreased from HKD 702,251,000 to HKD 499,184,000, representing a decline of approximately 29% year-over-year[7] - Current liabilities decreased from HKD 777,286,000 to HKD 607,511,000, a reduction of about 22%[9] - Non-current liabilities increased from HKD 155,794,000 to HKD 280,344,000, an increase of approximately 80%[9] - The company's net assets decreased from HKD 334,452,000 to HKD 221,459,000, a decline of around 34%[9] - The company reported a total equity of HKD 221,459,000, down from HKD 334,452,000, indicating a decrease of approximately 34%[9] - The company’s total liabilities decreased from HKD 933,080,000 to HKD 887,855,000, a decrease of about 5%[9] Cash Flow and Financing - The group secured a total of HKD 150,000,000 in unsecured financing from two directors, with HKD 89,800,000 drawn as of December 31, 2023[18] - The group is in discussions with banks for refinancing to meet upcoming operational and financial needs[18] - The group anticipates sufficient working capital to meet its financial obligations over the next twelve months[15] - The company’s cash and bank balances remained relatively stable, with HKD 52,031,000 compared to HKD 52,931,000[9] - The company’s total bank loans and other borrowings amounted to HKD 339,498,000 as of the reporting period[51] Discontinued Operations - The company reported a loss of HKD 1,640,000 from discontinued operations, which increased from HKD 908,000 in the previous year[3] - The total revenue from discontinued operations for the year was HKD 11,211,000, down from HKD 20,489,000 in the previous year[35] - The company has ceased its jewelry business in Nanjing, China, effective November 2023, to better allocate resources[34] - The company reported a total loss from discontinued operations of HKD 2,740,000 for the year, compared to HKD 1,445,000 in the previous year[35] Future Outlook and Strategy - The company plans to continue diversifying and expanding its product offerings, particularly in the wealth management sector, despite a challenging market environment[88] - The outlook for 2024 anticipates a gradual improvement in market sentiment, although uncertainties remain regarding the pace of economic recovery in mainland China and geopolitical challenges[87] - The company is committed to prudent capital management and liquidity risk management to address future challenges[89] - The media division is implementing cost control measures to reduce operating expenses amid a challenging advertising environment[75] Corporate Governance - The audit committee has confirmed that the financial performance for the year has been prepared in accordance with applicable accounting standards and regulations[94] - The independent auditor has agreed that the preliminary announcement of the group's financial position is consistent with the draft financial statements for the year[95] - The board has decided not to declare a final dividend for the year 2023, compared to no dividend in 2022[91]

Financial Performance - For the six months ended June 30, 2023, the company reported a loss of HKD 45,638,000 compared to a loss of HKD 72,375,000 for the same period in 2022, representing a 37% improvement in performance [2]. - The loss attributable to equity holders of the company from continuing operations was HKD 41,634,000, down from HKD 71,777,000 in the previous year, indicating a 42% reduction in losses [3]. - The company reported a total comprehensive loss of HKD 46,190,000 for the period, compared to HKD 78,615,000 in the prior year, reflecting a 41% decrease [5]. - The basic and diluted loss per share for the period was HKD 14.70, down from HKD 23.96 in the previous year, indicating an improvement in per-share performance [3]. - For the six months ended June 30, 2023, the company reported a net loss of approximately HKD 45,638,000, compared to a net loss of HKD 72,375,000 for the same period in 2022 [15]. - The group reported a net loss before tax of HKD 41,634,000 for the six months ended June 30, 2023, compared to a loss of HKD 71,761,000 in the same period of 2022 [21]. - The loss attributable to equity holders for the period was HKD 44,275,000, compared to HKD 72,182,000 in 2022, with a weighted average of 301,277,070 shares issued [35]. Revenue and Income - The revenue from continuing operations was HKD 43,331,122,000, while other income amounted to HKD 1,438,000, resulting in total income of HKD 43,332,560,000 [2]. - Revenue from continuing operations for the six months ended June 30, 2023, was HKD 33,122,000, compared to HKD 14,929,000 for the same period in 2022, representing a significant increase [24]. - Commission and management income increased to HKD 9,733,000 in 2023 from HKD 7,608,000 in 2022, reflecting a growth of approximately 28% [24]. - Media services revenue was HKD 12,183,000 in 2023, slightly down from HKD 12,862,000 in 2022 [24]. - The group’s total rental income was HKD 2,313,000 in 2023, down from HKD 3,074,000 in 2022 [24]. - The group’s interest income from loans and trade receivables was HKD 3,907,000 in 2023, compared to HKD 4,641,000 in 2022 [24]. - The group’s total income from trading securities, funds, bonds, and other contracts showed a significant recovery, with a net gain of HKD 1,178,000 in 2023 compared to a loss of HKD 14,772,000 in 2022 [24]. Assets and Liabilities - Non-current assets increased to HKD 650,903,000 as of June 30, 2023, from HKD 565,281,000 at the end of 2022, showing a growth of 15% [7]. - Current assets decreased to HKD 558,304,000 from HKD 702,251,000, a decline of 20% [7]. - The company's current liabilities decreased to HKD 645,061,000 from HKD 777,286,000, indicating a reduction of 17% [7]. - The net current liabilities stood at HKD 86,757,000, compared to HKD 75,035,000 in the previous year, reflecting a worsening position [7]. - As of June 30, 2023, the company's non-current liabilities totaled HKD 275,884,000, an increase from HKD 155,794,000 as of December 31, 2022 [8]. - The company’s total liabilities exceeded its total assets by approximately HKD 86,757,000 as of June 30, 2023 [15]. - The total equity attributable to the company's equity holders decreased to HKD 287,928,000 as of June 30, 2023, down from HKD 332,700,000 at the end of 2022 [10]. Cash Flow and Financing - The company's cash and cash equivalents decreased by HKD 13,787,000, resulting in a total of HKD 39,076,000 as of June 30, 2023, compared to HKD 31,121,000 in the previous year [12]. - The operating cash flow for the six months ended June 30, 2023, was HKD 28,772,000, a significant increase from HKD 217,000 in the same period of 2022 [12]. - The company is considering various alternatives to strengthen its capital base, including seeking new investments and business opportunities [15]. - The group is negotiating with banks for refinancing to meet upcoming operational and financial needs [17]. - A director, also a major shareholder, provided a HKD 100 million unsecured two-year loan, with HKD 34.7 million drawn as of June 30, 2023 [17]. - The financing costs for continuing operations included interest on bank loans and other borrowings totaling HKD 6,946,000 [30]. Business Strategy and Development - The company continues to explore new strategies for market expansion and product development to enhance future performance [2]. - The company is focusing on expanding its virtual asset services as a new business segment, which is expected to enhance its service offerings [82]. - The company plans to strengthen its business transformation with a focus on light capital operations, aiming to improve overall performance and deliver satisfactory returns to shareholders [84]. - The media division is transitioning from traditional media sales to integrated marketing solutions, aiming to capture market opportunities and enhance comprehensive marketing service development [83]. - The group continues to expand its product and service offerings, launching two new brands "SC Wealth" and "SC Private" in the fourth quarter of 2022 [69]. Share Capital and Incentive Plans - The company has issued HKD 50,000,000 of convertible bonds at a conversion price of HKD 0.22 per share on June 30, 2020 [49]. - The total number of shares issued as of June 30, 2023, is approximately 227,272,727, which represents about 75.44% of the total issued shares after the issuance of new shares [89]. - The company has a share incentive plan with a budget of up to HKD 20 million for purchasing shares from the market [96]. - The total number of stock options granted under the 2022 stock option plan is 18,076,620, representing approximately 6.0% of the total issued shares as of June 30, 2023 [116]. - The maximum number of further share options that can be granted under the 2022 share option plan is 12,051,087, accounting for approximately 4.0% of the company's issued share capital [111]. Corporate Governance and Compliance - The audit committee has reviewed the unaudited interim results and confirmed compliance with applicable accounting standards [124]. - The company has adhered to the corporate governance code during the reporting period, with specific deviations noted [123]. - The company appointed Mr. Wu Xuyang as an independent non-executive director effective April 28, 2023 [122]. - The interim results announcement was published on the Hong Kong Stock Exchange and the company's website [126].

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，概不就因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 SOUTH CHINA FINANCIAL HOLDINGS LIMITED 南 華 金 融 控 股 有 限 公 司 （於香港註冊成立之有限公司） （股份代號：00619） 有關截至二零二二年十二月三十一日止年度年報 之補充公告 茲提述South China Financial Holdings Limited南華金融控股有限公司（「本公司」，連 同其附屬公司，統稱「本集團」）於二零二三年四月二十七日刊發之截至二零二二年 十二月三十一日止年度之年報（「年報」）。除文義另有所指外，本公告所用所有詞彙與年報 所界定者具有相同涵義。 購股權計劃 除年報第18頁「董事報告」一節「購股權計劃」分節之披露外，本公司謹此根據上市 規則第17.07條及第17.09(3)條提供以下有關購股權計劃之資料： 於截至二零二二年十二月三十一日止年度內二零二二年購股權計劃項下購股權 數目之變動如下： 購股權數目 於二零二二年 購股 ...

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本 公告之內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確 表示，概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而 引致之任何損失承擔任何責任。 SOUTH CHINA FINANCIAL HOLDINGS LIMITED 南 華 金 融 控 股 有 限 公 司 （於香港註冊成立之有限公司） （股份代號：00619） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 未經審核中期業績 South China Financial Holdings Limited南 華 金 融 控 股 有 限 公 司（「本 公 司」）之 董事會（「董事會」）宣佈，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（「該期間」）未經審核綜合業績如下： 簡明綜合損益表 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 附註 千港元 千港元 （經重列） ...

Financial Performance - The group's consolidated revenue for the year ended December 31, 2022, was HKD 68.4 million, a decrease of approximately 36.0% compared to HKD 106.9 million in 2021[6]. - The consolidated loss for the year was HKD 151.7 million, compared to a loss of HKD 77.5 million in 2021[7]. - Brokerage commission and fee income decreased by approximately 34.5% to HKD 14.2 million in 2022, down from HKD 21.6 million in 2021[10]. - Interest income decreased by approximately 36.9% to HKD 10.9 million in 2022, compared to HKD 17.3 million in 2021[11]. - The group recorded an operating loss of HKD 15,300,000 in 2022, excluding goodwill impairment of HKD 8,900,000, compared to a loss of HKD 18,100,000 in 2021[15]. - Rental income decreased to HKD 4,600,000 in 2022, down from HKD 9,200,000 in 2021, with a revaluation loss of HKD 16,800,000[16]. - Jewelry product sales fell approximately 30.5% to HKD 20,500,000 in 2022, compared to HKD 29,500,000 in 2021, with segment losses increasing to HKD 1,200,000[17]. Asset and Wealth Management - The asset and wealth management segment recorded revenue of HKD 8.1 million in 2022, an increase of 172.5% from HKD 3.0 million in 2021[12]. - The group plans to focus resources on expanding its talent pool and increasing the asset scale managed, aiming to develop the asset and wealth management segment into a major revenue source in 2023[12]. - The group launched two new proprietary brands, "SC Wealth" and "SC Private," in the fourth quarter of 2022 to enhance financial planning services for high-net-worth clients[12]. - The group plans to expand its wealth management business with the launch of new brands "SC Private" and "SC Wealth" in Q4 2022[27]. Market and Economic Outlook - The outlook for 2023 anticipates a gradual recovery in the Hong Kong economy, although global economic and geopolitical uncertainties remain[26]. - The company anticipates ongoing economic challenges and market instability in 2023, emphasizing the need for rigorous cost control and prudent risk management[30]. - The group will continue to adopt a cautious approach in expanding its financial services segment to mitigate potential risks amid economic uncertainties[9]. Corporate Governance - The company is committed to high standards of business ethics and corporate governance, with regular reviews of governance practices[108]. - The company has adopted the corporate governance code and complied with all applicable provisions, with some deviations noted[112]. - The audit committee has been responsible for overseeing compliance with corporate governance standards and has reviewed governance practices[112]. - The board is responsible for the company's sustainable development and regularly evaluates environmental, social, and governance (ESG) goals and performance[184]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations that significantly impact its operations[32]. Risk Management - The company recognizes potential risks including fluctuations in the fair value of financial assets, interest rate changes, credit risks during economic downturns, and uncertainties in global market conditions[38]. - The company has implemented a series of risk mitigation and management policies to address identified risks and has established multiple committees to monitor and respond to these risks effectively[38]. - Management continuously reviews the adequacy and effectiveness of risk management and internal control systems, reporting significant risks to the board at least twice a year[141]. Environmental, Social, and Governance (ESG) - The company continues to focus on two key ESG areas: environmental protection and social responsibility, aiming to balance their impact on strategic planning[184]. - Total greenhouse gas emissions decreased by approximately 6.7% from 153.26 tons in 2021 to 142.97 tons in 2022, primarily due to reduced electricity consumption[189]. - The company has established a climate change policy to guide compliance across its business units[199]. - The company encourages employees to use environmentally friendly transportation and reduce business travel to lower greenhouse gas emissions[186]. Shareholder Relations and Dividends - The company did not declare an interim dividend for the year ending December 31, 2022, consistent with the previous year[57]. - The board does not recommend the payment of a final dividend for the year ending December 31, 2022, similar to the previous year[57]. - The company has adopted a dividend policy to determine whether to declare and pay dividends based on financial performance and other factors[58]. Acquisitions and Investments - The company completed the acquisition of Genius Year Limited and its subsidiaries for a total consideration of HKD 89,800,000, which includes 100% ownership of 65 plots of forest land in Hubei Province, China, covering approximately 139,216 mu[30]. - The group has entered into a conditional sale agreement to acquire Genius Year Limited for a total consideration of HKD 89,840,000, expected to be settled with convertible bonds[23]. Employee Relations - The company values its employees as a key asset and continues to implement various incentives to recognize their contributions to growth and development[34]. - The company emphasizes employee development and sustainable growth as part of its corporate culture[109]. Board Composition and Meetings - The board composition includes 4 executive directors and 4 independent non-executive directors as of December 31, 2022[117]. - The board meets at least four times a year, with a minimum of 14 days' notice for meetings[126]. - The company has implemented a board diversity policy since August 2013, focusing on gender, age, cultural background, and professional experience[120].

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，概不就 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 SOUTH CHINA FINANCIAL HOLDINGS LIMITED 南 華 金 融 控 股 有 限 公 司 （於香港註冊成立之有限公司） （股份代號：00619） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 集團業績 South China Financial Holdings Limited南 華 金 融 控 股 有 限 公 司（「本 公 司」）之 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 二零二二年十二月三十一日止年度之綜合業績，連同上一個財政年度之 比較數字如下： 綜合損益表 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 2 68,364 106,861 ...

Financial Performance - For the six months ended June 30, 2022, the company reported a revenue of HKD 427,147,000, a decrease of 33.5% compared to HKD 641,724,000 for the same period in 2021[2] - The net loss attributable to equity holders for the period was HKD 72,375,000, compared to a profit of HKD 5,662,000 in the previous year, representing a significant decline[2] - Total revenue for the six months ended June 30, 2022, was HKD 33,884,000, a decrease of 14.0% compared to HKD 39,494,000 for the same period in 2021[19] - The group reported a consolidated loss of HKD 72,400,000 for the period, compared to a profit of HKD 5,700,000 in the previous year[50] - The group generated total revenue of HKD 27,147,000 for the six months ended June 30, 2022, a decrease from HKD 63,724,000 in the same period of 2021[17] Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 1,400,704,000, down from HKD 1,612,131,000 as of December 31, 2021, indicating a decrease of approximately 13.1%[3] - Current assets totaled HKD 803,394,000, down from HKD 992,710,000, marking a decrease of approximately 19.1%[3] - The total value of current liabilities was HKD 865,706,000, a decrease from HKD 945,437,000 in the previous year[5] - Current liabilities exceeded current assets by approximately HKD 62,312,000 as of June 30, 2022[12] - The total liabilities, including other borrowings, were HKD 423,058,000, compared to HKD 478,135,000 in the previous year[16] Cash Flow and Financial Position - Cash flow from operating activities showed a net amount of HKD 217,000, compared to a negative HKD 137,830,000 in the previous year[8] - Cash flow from investing activities was HKD 1,167,000, an improvement from a negative HKD 4,746,000 in the previous year[8] - The cash and cash equivalents at the end of the period were HKD 31,121,000, down from HKD 75,917,000[8] - The company incurred a foreign exchange loss of HKD 4,180,000 during the period[8] - The net asset value decreased to HKD 408,623,000 from HKD 487,238,000 year-over-year[7] Revenue Segmentation - Over 70% of the group's revenue in 2022 was derived from operations in Hong Kong, consistent with 72% in 2021[17] - The media services segment generated revenue of HKD 12,862,000, up from HKD 9,288,000 in the previous year[17] - Jewelry product sales decreased to HKD 12,215,000, down 24.0% from HKD 16,116,000 in the previous year[21] - The group reported a significant loss in the trading and investment segment, with a revenue loss of HKD 15,003,000 compared to a profit of HKD 9,197,000 in the previous year[17] - The asset and wealth management segment recorded revenue of HKD 2,400,000, an increase of 9.2% compared to HKD 2,200,000 in 2021[54] Cost Management and Operational Efficiency - The company is focusing on improving operational efficiency and reducing costs in response to the challenging market conditions[2] - The group is implementing cost control measures to achieve positive cash flow from operations[13] - The cost of providing services was HKD 2,548,000, compared to HKD 6,729,000 in the previous year, indicating a significant reduction in service costs[22] - The group’s other expenses totaled HKD 75,900,000, slightly down from HKD 76,900,000 in the previous year[50] Future Outlook and Strategic Plans - Future guidance indicates a cautious outlook, with expectations of continued volatility in the financial markets impacting performance[2] - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[2] - The group is considering various alternatives to strengthen its capital base, including seeking new investment and business opportunities[12] - The company aims to enhance its wealth management business by offering more unique and high-quality investment products and services to expand its high-net-worth client base[67] - The company is actively pursuing the development of new media business and adopting a "dual-drive" model to integrate traditional and new media, enhancing market position and expanding business opportunities[67] Shareholder Information - The total issued ordinary shares as of June 30, 2022, was 301,277,070 shares[73] - No interim dividend was declared for the period, consistent with the previous year[25] - The company has adopted a share award plan with a budget of up to HKD 20 million to purchase shares from the market[76] - A new share option plan was adopted on August 9, 2022, to encourage and reward eligible participants for their contributions[78] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee the financial reporting process[82] - The company has complied with the corporate governance code, with some deviations noted regarding attendance at the annual general meeting[80] - The mid-term report has been published on the Hong Kong Stock Exchange website and the company's website, providing financial performance details for the period[83]