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]

Financial Performance - The group's consolidated revenue increased by 19.4% from HKD 89,500,000 in 2020 to HKD 106,900,000 in 2021, primarily due to improvements in the trading and investment segments[6]. - Total expenses decreased by 31.1% to HKD 156,000,000 in 2021 from HKD 226,200,000 in 2020, reflecting strict cost control measures[6]. - The consolidated loss for the group improved by 71.1%, amounting to HKD 77,500,000 in 2021 compared to HKD 268,600,000 in 2020[6]. - Total revenue for the year 2021 was HKD 23,000,000, a decrease from HKD 24,000,000 in 2020, with a significant increase in the second half to HKD 13,700,000 from HKD 9,300,000 in the first half[16]. - The media division's operating loss was reduced to HKD 18,100,000 in 2021 from HKD 109,200,000 in 2020 due to internal cost restructuring[16]. - The capital debt ratio as of December 31, 2021, was approximately 47.4%, up from 45.7% in 2020, with cash reserves increasing by 3.3% to HKD 90,300,000[19]. - The company did not declare an interim dividend for the year ended December 31, 2021, and the board does not recommend a final dividend for the same period[53]. - As of December 31, 2021, the company had no distributable reserves[65]. Revenue Segments - Brokerage commission income decreased by approximately 25.7% to HKD 21,600,000 in 2021 from HKD 29,100,000 in 2020, with an operating loss increasing to HKD 17,500,000[10]. - Interest income slightly declined by 6.6% to HKD 17,300,000 in 2021 from HKD 18,500,000 in 2020, while operating loss in this segment reduced to HKD 4,400,000[11]. - The asset and wealth management segment recorded over 100% revenue growth to HKD 3,000,000 in 2021 from HKD 1,400,000 in 2020, although it still faced an operating loss of HKD 8,200,000[12]. - The corporate advisory and underwriting segment reported minimal revenue in 2021, significantly reducing its operating loss by approximately 89.7% to HKD 1,200,000 from HKD 11,700,000 in 2020[13]. - Jewelry product sales increased by approximately 29.5% to HKD 29,500,000 in 2021, compared to HKD 22,800,000 in 2020, while maintaining a low operating loss of HKD 200,000[18]. Investment Portfolio - The group's investment portfolio decreased from HKD 261,000,000 at the end of 2020 to HKD 208,200,000 at the end of 2021, with a market investment fair value loss of HKD 23,300,000[14]. - The group confirmed a realized gain of HKD 2,300,000 in 2021, compared to a loss of HKD 28,400,000 in the same period of 2020[15]. Strategic Plans - The company plans to allocate more resources to expand its wealth management services and aims to achieve profitability in this segment by 2022[12]. - The company plans to expand its wealth management team and launch a new brand "SC Private" in Q2 2022 to cater to high-net-worth clients[27]. - The media business will continue to evolve into an integrated platform combining print, digital, and events, with a focus on expanding into the Greater Bay Area and Greater China markets[28]. - The company aims to enhance its digital platforms and innovative products while reviewing pricing strategies to maximize value[28]. Corporate Governance - The company has adopted a dividend policy to ensure sufficient reserves for future growth while distributing profits to shareholders[56]. - The board is responsible for the group's environmental, social, and governance (ESG) strategies and reporting[51]. - The company is committed to establishing good corporate governance practices and will regularly review its governance standards[100]. - The company has adopted the standards for securities trading by directors as outlined in the Listing Rules Appendix 10, ensuring compliance with insider trading regulations[101]. - The company has adhered to all applicable provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange Listing Rules for the year ended December 31, 2021[102]. - The Audit Committee has been responsible for overseeing corporate governance functions and has reviewed compliance with the Corporate Governance Code during the reporting period[104]. - The company has established an audit committee consisting of three independent non-executive directors to ensure compliance with corporate governance codes[135]. Risk Management - The company has established risk management policies to address potential risks affecting its business and financial condition[38]. - The company has established effective risk management and internal control systems to protect the interests of shareholders, customers, and employees[126]. - Management is responsible for identifying, assessing, and managing significant risks, with ongoing procedures in place to enhance risk management systems[127]. - The board reviews the adequacy of resources, qualifications, and training programs for accounting, internal audit, and financial reporting functions at least annually[127]. Environmental, Social, and Governance (ESG) - The company focuses on four main areas in its Environmental, Social, and Governance (ESG) report: (1) Environment; (2) Employment and Labor Practices; (3) Operational Practices; and (4) Community Engagement[164]. - The company promotes environmental policies to reduce its impact on the environment through energy savings and recycling initiatives[31]. - Total greenhouse gas emissions decreased by approximately 20% from 191.29 tons in 2020 to 153.26 tons in 2021, primarily due to reduced electricity and business travel consumption[168][169]. - The company encourages employees to use eco-friendly public transport and electronic communication to reduce greenhouse gas emissions[165]. - The company has established a risk management process to identify and assess key risks, including those related to environmental, social, and governance factors[164]. Employee Relations - The total employee cost for the year was approximately HKD 47,500,000, an increase from HKD 46,000,000 in 2020, with a total employee count of 146[25]. - The company has a total of 146 employees as of December 31, 2021, with a gender distribution of 79 males and 67 females[179]. - Employee turnover rate for 2021 was approximately 5.30%, down from 6.10% in 2020[182][183]. - The company reported zero work-related injuries and occupational diseases in both 2021 and 2020[186][187]. - Average training hours per employee in 2021 were 3.34 hours for management and department heads, compared to 2.48 hours in 2020[191]. Shareholder Communication - The company provides shareholders with various communication channels, including annual general meetings, annual reports, and its website, to keep them informed of significant matters and developments[155]. - Shareholders holding at least 5% of the total voting rights can request a special general meeting, as per the Companies Ordinance[158]. - The company promotes investor relations and enhances communication with shareholders and potential investors through its website[162].

Financial Performance - For the six months ended June 30, 2021, total revenue was HKD 463.724 million, a significant increase from HKD 34.291 million in the same period of 2020[2] - The company reported a net profit of HKD 5.662 million for the period, a substantial recovery from a net loss of HKD 169.774 million in the prior year[2] - Basic earnings per share for the period were HKD 1.9, compared to a loss per share of HKD 56.3 in the same period last year[2] - The company reported a comprehensive income of HKD 5,698 thousand for the period, compared to a comprehensive loss of HKD (181,885) thousand in the previous year[6] - The company reported a profit attributable to equity holders of HKD 5,674,000 for the six months ended June 30, 2021, compared to a loss of HKD 169,577,000 for the same period in 2020[30] Revenue Breakdown - Revenue from customer contracts included commission and management income of HKD 12,258,000, down from HKD 13,863,000 in 2020, a decrease of 11.6%[14] - The group generated over 72% of its revenue and operating profit from its operations in Hong Kong[17] - The media services segment reported revenue of HKD 9,288,000, down from HKD 14,549,000 in the previous year, a decrease of 36.5%[14] - The jewelry product sales increased to HKD 16,116,000 from HKD 11,991,000, reflecting a growth of 34.1%[14] - Total customer contract revenue for the six months ended June 30, 2021, was HKD 39,494,000, with significant contributions from various segments[19] Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 2.133 billion, up from HKD 1.996 billion as of December 31, 2020, indicating a growth of 6.9%[3] - Total liabilities rose to HKD 1,413,585 thousand, up from HKD 1,263,895 thousand, indicating an increase of about 11.8%[5] - The total equity attributable to the company's shareholders was HKD 568,663 thousand, a slight increase from HKD 562,965 thousand, representing a growth of about 1.2%[6] - The company’s accumulated losses decreased to HKD (645,918) thousand from HKD (651,592) thousand, indicating a reduction of about 0.9%[6] Cash Flow and Financing - The company's net cash flow from operating activities showed a significant decrease to HKD (137,830) thousand compared to HKD 26,371 thousand in the previous year[8] - The net cash flow from financing activities was HKD 148,748 thousand, a substantial increase from HKD 15,198 thousand in the previous year[8] - The company issued convertible bonds, generating proceeds of HKD 50,000 thousand during the period[8] - Cash and cash equivalents at the end of the period were HKD 75,917 thousand, down from HKD 83,867 thousand, representing a decrease of approximately 9.5%[8] Operational Highlights - The company plans to continue expanding its investment portfolio and enhancing its financial services to drive future growth[2] - The management expressed optimism about future performance, citing improved market conditions and strategic initiatives[2] - The company implemented effective cost control measures, resulting in a significant reduction in operating losses by approximately 28.6% to HKD 3,500,000[47] - The company launched digital marketing initiatives to acquire a larger customer base and expand into broader regional markets[48] Employee and Corporate Governance - The total number of employees as of June 30, 2021, was 185, a decrease from 235 employees on June 30, 2020, with employee costs amounting to HKD 28.8 million compared to HKD 47.2 million for the same period last year[63] - The company has adhered to all corporate governance codes, with some exceptions regarding attendance at the annual general meeting[81] - The company has established guidelines for directors regarding securities trading and compliance with insider information regulations[82] Market Outlook - Hong Kong's GDP is expected to grow by approximately 7.6% compared to last year, as economic activities gradually recover following the COVID-19 vaccination rollout[64] - The wealth management team is expected to generate more revenue in the medium to long term through the recruitment of talented individuals with strong financial backgrounds[67] - The media business is transitioning to a comprehensive platform integrating printing, digital, and event management, with anticipated revenue growth as social distancing measures ease[68]

Financial Performance - Total revenue decreased by 56% from HKD 204.1 million in 2019 to HKD 89.5 million in 2020[6] - The company reported a net loss of HKD 268.6 million for 2020, compared to a net loss of HKD 77.2 million in 2019[6] - Brokerage commission income fell by 12% from HKD 33 million in 2019 to HKD 29.1 million in 2020, while operating loss in this segment decreased by 57% to HKD 12.5 million[8] - Total loans increased from HKD 188.3 million in 2019 to HKD 240.2 million in 2020, but revenue from this segment decreased by 24% to HKD 18.5 million[10] - Revenue from corporate advisory and underwriting dropped 72% from HKD 23.6 million in 2019 to HKD 6.6 million in 2020, with operating loss reduced to HKD 11.7 million[11] - Asset management revenue decreased from HKD 3.5 million in 2019 to HKD 1.4 million in 2020, with operating loss at HKD 4.1 million[12] - Media segment revenue was HKD 24 million with an operating loss of HKD 109.2 million, reflecting the impact of COVID-19 on advertising spending[14] - The group's investment portfolio decreased from HKD 414,300,000 as of December 31, 2019, to HKD 261,000,000 as of December 31, 2020, with a total fair value loss of HKD 42,326,000 for the year[15] - The Hang Seng Index fell by 3% from 28,190 on December 31, 2019, to 27,231 on December 31, 2020, leading to an increase in fair value losses from HKD 13,400,000 in 2019 to HKD 42,300,000 in 2020[18] - The group's investment properties' fair value decreased from HKD 550,000,000 as of December 31, 2019, to HKD 526,000,000 as of December 31, 2020, with rental income slightly declining from HKD 12,800,000 to HKD 12,100,000[19] - The group incurred a net realized loss of HKD 28,400,000 from the sale of investments during the year, contrasting with a gain of HKD 19,000,000 in the previous year[18] Dividends and Shareholder Returns - No interim or final dividends were declared for the year ended December 31, 2020[7] - The company has adopted a dividend policy aimed at retaining sufficient reserves for future growth while distributing profits to shareholders[57] - The board does not recommend a final dividend for the year ended December 31, 2020, which is the same as the previous year[54] - As of December 31, 2020, the company had no distributable reserves available[66] Cost Management and Employee Structure - The total employee cost for the year was approximately HKD 46,000,000, a decrease from HKD 117,400,000 in the previous year, with total employees reduced from 240 to 137[26] - The company has implemented strict cost control measures in its investment banking and asset management divisions due to significant pressure from reduced trading volumes and sizes, particularly since June 2019 and during the COVID-19 pandemic[36] - The average employee turnover rate increased from 2.68% in 2019 to approximately 6.10% in 2020[172][171] - As of December 31, 2020, the company employed 137 individuals, with 77 male and 60 female employees[169] Risk Management and Governance - The company has established effective risk management and internal control systems to manage significant risks, with ongoing procedures for identifying, assessing, and managing major risks faced by the group[122] - The board is responsible for evaluating the nature and extent of risks the group is willing to take to achieve its strategic objectives, ensuring that appropriate risk management measures are in place[121] - The company has revised and implemented guidelines to prevent money laundering and terrorist financing to enhance its risk management and internal control[122] - The board ensures that independent non-executive directors participate in discussions and voting on significant transactions to avoid conflicts of interest[111] - The company provides independent professional advice to directors when necessary, with costs borne by the company[115] Environmental Impact - Total greenhouse gas emissions decreased by approximately 19% to 191.29 tons in 2020 from 236.4 tons in 2019, attributed to reduced electricity and business travel consumption[159][160] - Direct emissions from company vehicles were 10.05 tons in 2020, compared to 0 tons in 2019[159] - Indirect emissions from electricity consumption decreased to 171.54 tons in 2020 from 187.5 tons in 2019[159] - Business travel emissions dropped significantly to 1.43 tons in 2020 from 19.7 tons in 2019[159] - Paper consumption emissions reduced to 8.6 tons in 2020 from 23.3 tons in 2019[159] - The company implemented various measures to promote environmental protection, including encouraging the use of public transport and reducing paper consumption through electronic systems[156][158] Corporate Governance - The board of directors has identified and assessed key risks, implementing strategies to mitigate these risks as part of its risk management process[155] - The company has maintained its organizational documents without any changes as of December 31, 2020[152] - The audit committee is responsible for monitoring the integrity of financial statements and reviewing significant judgments made in financial reporting[130] - The board confirmed the adequacy and effectiveness of the group's risk management and internal control systems, with no significant control failures reported during the year[126] - The company has a policy for handling and disclosing inside information to comply with listing rules and securities regulations[125] Employee Development and Workplace Safety - Employee training and development policies continued to play a significant role, with various internal and external training programs implemented[178] - The average training hours per employee decreased in 2020 compared to 2019, with management receiving 2.48 hours (down from 4.55) and general staff receiving 3.10 hours (down from 4.75)[181] - The company emphasizes a supportive and healthy work environment, with policies in place to ensure fair recruitment and diversity[167] - The company has established safety measures in the workplace, including first aid kits and fire safety equipment[173] - The company reported zero work-related fatalities during the review year[175] - The number of reportable work injuries decreased from 1 in 2019 to 0 in 2020, with no reportable occupational diseases in both years[176] Shareholder Communication - The company continues to enhance investor relations and communication with shareholders through various channels, including its website[153] - The company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2020[69]