Financial Performance - The total revenue from continuing operations for the year was approximately HKD 149.8 million, a decrease of 11.0% compared to HKD 168.3 million in 2017[12][24]. - The net loss attributable to owners of the company was approximately HKD 126.9 million, compared to a loss of HKD 63.9 million in 2017, representing an increase of 98.9%[12][24]. - The art and culture segment generated revenue of approximately HKD 40,100,000, a decrease from HKD 42,700,000 in 2017, with a segment loss of about HKD 2,600,000 compared to a profit of HKD 19,400,000 in 2017[25]. - The auction business in mainland China faced a significant decline in commission income due to the economic downturn and tightened policies, leading to a goodwill impairment of HKD 36,000,000[27]. - The e-commerce segment reported revenue of approximately HKD 90,200,000, an increase from HKD 46,500,000 in 2017, with a segment loss reduced to HKD 600,000 from HKD 800,000[36]. - The wine segment contributed revenue of approximately HKD 6,100,000, up from HKD 1,200,000 in 2017, with a segment loss of HKD 1,700,000, improved from HKD 5,300,000 in 2017[35]. - The engineering services segment generated revenue of approximately HKD 13,900,000, down from HKD 77,800,000 in 2017, with a segment loss of HKD 24,900,000 compared to HKD 13,000,000 in 2017[36]. - The financial technology segment recorded revenue of approximately HKD 29.6 million for the year ended December 31, 2018, down from HKD 35.2 million in 2017, with a loss of HKD 0.9 million compared to a profit of HKD 0.2 million in 2017[39]. Business Strategy and Operations - The company held five auctions in Hong Kong and mainland China during the year, facing significant challenges due to tightening cultural relic management policies and social funding shortages[17]. - The company successfully completed the sale of all equity in its mobile finance business by the end of the year to minimize losses and strengthen overall financial status[17]. - In 2019, the company plans to focus on optimizing strategic combinations and business integration, particularly in auction and related supply chain finance businesses[18]. - The company aims to enhance cost reduction and efficiency measures while improving internal control management systems and overall governance capabilities[18]. - The company is actively researching the introduction of quality assets that align with its strategic development and sustainable growth goals[18]. - The company will continue to strengthen data management related to customer profiles and preferences to support future auction planning[17]. - The company plans to enhance its auction prepayment and art financing services to provide greater flexibility for auction participants and generate additional revenue[26]. - The company is collaborating with a licensed partner to develop a wine brand to expand sales channels[35]. - The company established two art central business districts in Xi'an and Hong Kong, focusing on comprehensive services for art and collectibles[34]. - The company is working with a major airline as a supplier for onboard sales to develop global cross-border e-commerce[36]. Risk Management - The company has established a corporate risk management framework to review and update the risks faced by the group[52]. - Key risks include strategic risks related to investment management, overall competitive environment, and the slowdown of the Chinese and global economies[52]. - The group has implemented a risk management policy to address operational, financial, and compliance risks[54]. - The company has established a risk management policy to identify, assess, and manage significant risks[197]. - The audit committee reviews the effectiveness of risk management and internal control systems at least once a year[197]. - The company has implemented a risk mitigation plan for identified significant risks[197]. Corporate Governance - The board consists of ten directors, including four executive directors, two non-executive directors, and four independent non-executive directors[168]. - The company has adopted a standard code for securities trading by its directors and senior management, ensuring compliance throughout the fiscal year[166]. - The board is committed to maintaining high corporate governance standards, which are essential for enhancing corporate value and accountability to shareholders[165]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, to oversee specific aspects of its affairs[180]. - The company emphasizes the importance of continuous professional development for all directors to ensure informed contributions to the board[176]. - The board is responsible for significant matters, including policy, strategy, budget, internal controls, and risk management[175]. - The company has received annual confirmation letters regarding the independence of its independent non-executive directors[171]. - The company will conduct a re-election of directors at the upcoming annual general meeting, ensuring compliance with the specified term limits[172]. - The Audit Committee held three meetings during the fiscal year to review the financial reporting system and internal controls[181]. - The Remuneration Committee conducted one meeting to review the remuneration of directors and senior management, with recommendations pending shareholder approval[185]. - The Nomination Committee held one meeting to assess the board's composition and diversity policy, ensuring alignment with corporate strategy[186]. - The company secretary was replaced by Mr. Tang Man-ju, effective September 18, 2018, ensuring compliance with relevant training requirements[190]. - The board of directors held four meetings during the fiscal year, with attendance records indicating active participation from members[189]. - The company has adopted a diversity policy for board appointments, considering various factors such as gender, age, and professional experience[186]. - The Audit Committee recommended the reappointment of external auditors after reviewing their reports and audit plans[181]. - The company is committed to maintaining effective communication between the board, management, and shareholders[190]. - The Remuneration Committee's recommendations for executive compensation are subject to approval at the annual general meeting[185]. Shareholder Information - The company reported no dividend distribution for the fiscal year ending December 31, 2018, consistent with the previous year[96]. - The company has adopted a dividend policy that considers actual and expected financial performance, retained earnings, and future expansion plans[99]. - The top five customers accounted for 53% of total revenue in the fiscal year, with the largest customer contributing 25%[100]. - The top five suppliers represented 67% of total procurement, with the largest supplier accounting for 34%[100]. - The company’s directors and their close associates do not hold any significant interests in the top five customers or suppliers[100]. - The company maintained a public float of at least 25% of its issued shares as required by listing rules[159]. - The company will hold its annual general meeting on May 30, 2019, and will suspend share transfer registration from May 27 to May 30, 2019[162]. Employee Relations - The group has approximately 84 employees as of December 31, 2018, down from 169 in 2017[64]. - The company has a strong focus on employee relations, regularly reviewing compensation and benefits to attract and retain talent[92]. Financial Summary - As of December 31, 2018, the group's total bank balance and cash amounted to HKD 54,400,000, a decrease of HKD 18,500,000 compared to 2017, primarily due to additional financial resources allocated for auction prepayments and art financing[55]. - The group's outstanding secured borrowings as of December 31, 2018, were HKD 600,000, and unsecured borrowings were HKD 55,300,000, compared to HKD 600,000 and HKD 37,500,000 in 2017, respectively[55]. - The capital debt ratio as of December 31, 2018, was 8.5%, up from 4.8% in 2017[59]. - The group incurred a foreign exchange loss of HKD 20,500,000 during the year, compared to a foreign exchange gain of HKD 30,800,000 in 2017[63]. - The net proceeds from the public offering on December 9, 2015, amounted to HKD 420,300,000, with allocations for loan repayment, online market development, and acquisitions[58]. - There were no significant acquisitions, disposals, or major investments made during the year[64]. - The company did not purchase, sell, or redeem any of its listed securities during the fiscal year[157]. - The company reported an audit service fee of HKD 1,770,000 for the annual financial statements[198]. - Additional audit services incurred a fee of HKD 1,348,000[198]. - The company allocated HKD 821,000 for risk management and internal control reviews, interim financial reviews, and financial advisory services[198].