Supplementary Announcement [Purpose and Scope of Announcement](index=1&type=section&id=Purpose%20and%20Scope%20of%20Announcement) This announcement provides supplementary information for Jinhui Holdings Limited's annual report for the year ended December 31, 2021, primarily focusing on the Group's money lending business - This announcement supplements Jinhui Holdings Limited's 2021 annual report, providing additional information[2](index=2&type=chunk) Overview of Money Lending Business [Business Model and Operations](index=1&type=section&id=Business%20Model%20and%20Operations) The Group's money lending business is operated by its licensed subsidiary, Kin Shun Finance, primarily providing loans to individuals, private, and listed companies using internal resources to earn interest income, with clients often referred through the Group's business network and subject to strict credit assessment and board approval - The money lending business is operated by Kin Shun Finance Limited, an indirect wholly-owned subsidiary and licensed money lender[3](index=3&type=chunk) - Loans are provided to customers, including individuals, private, and listed companies, using internal resources to generate interest income[3](index=3&type=chunk) - Loan applications undergo credit assessment, including credit history, financial background, and collateral value, followed by final review and approval by the Board of Directors[3](index=3&type=chunk)[8](index=8&type=chunk) [Impact of Pandemic and Risk Management](index=2&type=section&id=Impact%20of%20Pandemic%20and%20Risk%20Management) Affected by COVID-19, Kin Shun Finance adjusted its business strategy by increasing loan requirements to reduce default rates and lowering interest rates accordingly; despite this, impairment losses from expected credit losses and write-offs were recognized in 2021, though lower than 2020, as the Group continuously improved collection processes - Due to COVID-19, Kin Shun Finance adjusted its business strategy, increasing loan requirements (requiring asset/income proof) and lowering interest rates to mitigate risks[6](index=6&type=chunk) Net Impairment Losses from Expected Credit Losses and Write-offs (HKD) | Metric | 2021 (HKD) | 2020 (HKD) | Change | | :--- | :--- | :--- | :--- | | Expected credit losses on loans and interest receivables | Approximately 9,100,000 | Approximately 22,400,000 | Decrease of 59.46% | | Net impairment losses from write-offs | Approximately 5,000,000 | None | New | - In 2021, **31 loan renewal applications were received and approved**, with management conducting credit assessments prior to renewal[6](index=6&type=chunk) [Loan Portfolio Details](index=2&type=section&id=Loan%20Portfolio%20Details) As of the end of 2021, the Group's loan portfolio comprised 35 borrowers, with principal amounts ranging from HKD 100,000 to HKD 10 million, annual interest rates from 6.0% to 12.0%, all maturing within one year and unsecured; the top five borrowers accounted for 37.2% of net loans and interest receivables Loan Portfolio Overview as of December 31, 2021 | Metric | Details | | :--- | :--- | | Loan principal range | Approximately HKD 100,000 to HKD 10,000,000 | | Annual interest rate range | 6.0% to 12.0% | | Maturity period | Within one year | | Number of borrowers | 35 (30 individual clients, 5 corporate clients) | | Loan nature | All net loans and interest receivables are unsecured | Major Borrower Proportions as of December 31, 2021 | Borrower Type | Proportion of Net Loans and Interest Receivables | | :--- | :--- | | Largest borrower | Approximately 8.1% (approximately HKD 8,100,000) | | Top five borrowers | Approximately 37.2% | Money Lending Business Management and Monitoring [Lending Guidelines and Approval Process](index=2&type=section&id=Lending%20Guidelines%20and%20Approval%20Process) Kin Shun Finance adheres to strict lending guidelines and procedural manuals to standardize the loan approval process, which includes client identification, related party checks, senior officer review, credit analysis memorandum preparation, and final item-by-item approval by the Board based on applicant's credit, financial status, and collateral - All loans and agreements are granted and approved in accordance with Kin Shun Finance's lending guidelines and procedural manual[8](index=8&type=chunk) - The lending guidelines aim to generate interest income and avoid bad debts, providing specific requirements for loan interest rates, terms, credit assessment, and approval procedures[8](index=8&type=chunk) - The loan approval process includes application, client identification, related party checks, director review, credit analysis memorandum preparation, and final item-by-item approval by the Board of Directors[10](index=10&type=chunk) [Loan Monitoring and Collection](index=3&type=section&id=Loan%20Monitoring%20and%20Collection) The Group continuously monitors approved loans, reviewing them at least annually or more frequently, reporting repayment status monthly, and immediately informing directors of any defaults; for secured loans, additional collateral may be required, while for unsecured loans, repayment may be demanded if the client's financial condition deteriorates, with overdue debts subject to demand letters and legal action - Once a loan is approved, responsible personnel must conduct continuous monitoring reviews at least annually or more frequently, report repayment status monthly, and immediately inform directors upon discovering any defaults[10](index=10&type=chunk) - For secured loans, if collateral value is insufficient or the loan-to-value ratio is exceeded, borrowers may be required to provide additional collateral, partially repay, or realize collateral[11](index=11&type=chunk) - For unsecured loans, if a client's financial condition significantly deteriorates, the client may be required to repay the loan[11](index=11&type=chunk) - Demand letters are issued for debts overdue by **3 months**, and legal action is considered for debts overdue by **more than 6 months**[13](index=13&type=chunk) [Compliance](index=4&type=section&id=Compliance) Kin Shun Finance's money lending business fully complies with the Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong - The money lending business is regulated by the Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong, and Kin Shun Finance has fully complied with applicable laws and regulations[13](index=13&type=chunk) Other Information [Board Information](index=4&type=section&id=Board%20Information) The additional information provided in this supplementary announcement does not affect other content disclosed in the annual report; as of the announcement date, the Board members include Executive Directors Mr. Zhang Hengxin and Mr. Jia Minghui, and Independent Non-executive Directors Mr. Chan Chi Keung, Mr. Au Yeung Ming Yin, and Mr. Kwok Chun Wai - The additional information provided in this announcement does not affect other information contained in the annual report, and the annual report's content remains unchanged[14](index=14&type=chunk) - As of the announcement date, the Executive Directors are Mr. Zhang Hengxin and Mr. Jia Minghui; the Independent Non-executive Directors are Mr. Chan Chi Keung, Mr. Au Yeung Ming Yin, and Mr. Kwok Chun Wai[15](index=15&type=chunk)

AMCO UNITED HOLDING LIMITED (Stock Code 股份代號 : 630) (Incorporated in Bermuda with limited liability)（於百慕達註冊成立之有限公司） 2022 INTERIM REPORT 中期報告 * For identification purposes only 僅供識別 | --- | --- | --- | |------------------------------------------------------------------|----------------------------------|----------| | | | | | | | Contents | | | | 目錄 | | Management Discussion and Analysis | 管理層討論及分析 | 2 | | Corporate Governance and Other Information | 企業管治及其他資料 | 13 | | Interim Condensed Consolidated Statement ...

[FINANCIAL HIGHLIGHTS](index=3&type=section&id=FINANCIAL%20HIGHLIGHTS) In FY2021, total revenue grew 33.6% to HKD 71.9 million, driven by medical products, while annual loss significantly narrowed by 48.3% to HKD 18.1 million [FINANCIAL AND OPERATING RESULTS HIGHLIGHTS](index=3&type=section&id=FINANCIAL%20AND%20OPERATING%20RESULTS%20HIGHLIGHTS) In FY2021, total revenue grew 33.6% to HKD 71.9 million, primarily due to increased medical product income, with annual loss significantly narrowing by 48.3% to HKD 18.1 million 2021 Financial Year Key Financial and Operating Indicators | Indicator | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Results (HKD thousands)** | | | | | Revenue | 71,891 | 53,768 | +33.6% | | Annual Loss | (18,108) | (34,969) | +48.3% (Loss narrowed) | | **Financial Position (HKD thousands)** | | | | | Equity attributable to owners of the Company | 114,824 | 132,093 | -13.1% | | Total Assets | 184,777 | 212,756 | -13.1% | | Net Assets | 114,824 | 132,093 | -13.1% | | **Key Ratios** | | | | | Loss per Share (HK cents) | (0.75) | (1.7) | +55.9% (Loss narrowed) | | Current Ratio | 2.3 | 3.8 | -39.5% | | Total Debt to Total Assets Ratio | 0.4 | 0.4 | Stable | | Return on Total Assets (%) | (9.8) | (16.4) | Improved 6.6 percentage points | | Return on Sales (%) | (25.2) | (65.0) | Improved 39.8 percentage points | [CHAIRMAN'S STATEMENT](index=6&type=section&id=CHAIRMAN'S%20STATEMENT) The Chairman's Statement provides an overview of the Group's performance and strategic outlook amidst economic uncertainties [Performance Overview and Business Review](index=6&type=section&id=CHAIRMAN'S%20STATEMENT_OVERVIEW) Despite economic uncertainties, the Group achieved 33.6% revenue growth in 2021, primarily from medical products, offset by a decline in construction services - 2021 total revenue increased by **33.6%** to **HKD 71.9 million**, primarily driven by growth in medical product revenue, offsetting a decrease in building construction service revenue[24](index=24&type=chunk)[26](index=26&type=chunk) - Building contract works business faced challenges from industry slowdown and increased competition, leading to reduced revenue, lower profit margins, and increased operating losses[28](index=28&type=chunk)[30](index=30&type=chunk) - Money lending and securities investment businesses both achieved segment profits in 2021, contributing stable income to the Group[29](index=29&type=chunk)[31](index=31&type=chunk) [Prospects](index=8&type=section&id=PROSPECTS) The Group plans to leverage its diversified business portfolio, optimize capital allocation, and explore new opportunities for sustainable growth in 2022 - The Group will maintain its diversified business portfolio, formulating, evaluating, and revising existing business strategies to address market challenges and mitigate any adverse impacts[36](index=36&type=chunk)[37](index=37&type=chunk) - The company will focus on effective working capital management, cost control to maintain liquidity, and leveraging a lean organizational structure to enhance operational efficiency[36](index=36&type=chunk)[37](index=37&type=chunk) - The Group will continue to actively explore potential profitable businesses and investment opportunities, optimizing its business portfolio to maximize shareholder value and achieve sustainable growth[38](index=38&type=chunk) [MANAGEMENT DISCUSSION AND ANALYSIS](index=9&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section provides a detailed analysis of the Group's financial performance and operational review across its diverse business segments for the year [Results Analysis](index=9&type=section&id=RESULTS) In FY2021, total revenue increased by 33.6% to HKD 71.9 million, gross profit slightly rose, and loss attributable to owners significantly narrowed by 48.3% 2021 Financial Year Performance Summary | Item | 2021 (HKD thousands) | 2020 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 71,900 | 53,800 | +33.6% | | Gross Profit | 14,100 | 13,300 | +6.0% | | Gross Profit Margin | 19.6% | 24.7% | -5.1 percentage points | | Distribution and Administrative Expenses | 15,500 | 22,600 | -31.4% | | Loss Attributable to Owners of the Company | 18,100 | 35,000 | -48.3% (Loss narrowed) | [Business Review](index=10&type=section&id=BUSINESS%20REVIEW) The Group's business segments showed varied performance in 2021, with strong growth in medical products and securities investment, while others declined [Medical Products](index=10&type=section&id=Medical%20Products) Medical product revenue surged 119.8% to HKD 56.7 million due to increased demand, though segment profit decreased due to higher sales commissions Medical Products Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 56,700 | 25,800 | +119.8% | | Segment Profit | 500 | 1,100 | -54.5% | [Plastic Products](index=10&type=section&id=Plastic%20Products) Plastic product revenue declined 63.6% to HKD 0.4 million as most products reached end-of-life, resulting in a segment loss of HKD 0.21 million Plastic Products Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 400 | 1,100 | -63.6% | | Segment Result | (210) | 85 | Turned from profit to loss | [Building Contract Works Business](index=11&type=section&id=Building%20Contract%20Works%20Business) Building contract works revenue sharply decreased by 74.8% to HKD 4.1 million due to fewer new projects, but segment loss narrowed from cost reductions Building Contract Works Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 4,100 | 16,300 | -74.8% | | Gross Profit | 200 | 1,700 | -88.2% | | Gross Profit Margin | 4.9% | 10.4% | -5.5 percentage points | | Segment Loss | (7,600) | (10,700) | Loss narrowed | [Money Lending](index=12&type=section&id=Money%20Lending) Money lending interest income slightly increased to HKD 10.7 million, turning a segment loss into a profit of HKD 1 million, with HKD 130.6 million in outstanding loans Money Lending Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | | :--- | :--- | :--- | | Loan Interest Income | 10,700 | 10,600 | | Segment Profit/(Loss) | 1,000 | (12,100) | | Outstanding Loan Principal and Interest | 130,600 | 135,500 | | Expected Credit Loss Provision | 30,400 | 26,300 | [Securities Investment](index=12&type=section&id=Securities%20Investment) Securities investment segment profit significantly increased to HKD 15.5 million, driven by unrealized gains from fair value changes of Hong Kong-listed equity securities Securities Investment Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | | :--- | :--- | :--- | | Unrealized Gains | 15,500 | 1,100 | | Segment Profit | 15,500 | 1,000 | Major Investments Held for Trading as of December 31, 2021 | Company Name/Stock Code | Percentage of Shares Held | Fair Value Gain/(Loss) for the Year Ended December 31, 2021 (HKD thousands) | Fair Value as of December 31, 2021 (HKD thousands) | Percentage of Group's Total Assets | | :--- | :--- | :--- | :--- | :--- | | China Wallet Payment Group Limited (802) | 1.7% | (612) | 5,457 | 3.0% | | Wellong Technology Holdings Limited (8021) | 1.4% | 4,100 | 9,958 | 5.4% | | Others | - | 11,991 | 27,177 | 14.7% | | **Total** | - | **15,479** | **42,592** | **23.1%** | [Financial Review](index=15&type=section&id=FINANCIAL%20REVIEW) As of year-end 2021, the Group's net assets decreased by 17.3% to HKD 114.8 million, with no financial institution borrowings and extended bond maturity - As of December 31, 2021, the Group's consolidated net assets were **HKD 114.8 million**, a **17.3% decrease** from HKD 132.1 million in the prior year[70](index=70&type=chunk) - The Group had no borrowings from financial institutions, with bonds payable of **HKD 33.7 million** originally due in January 2022, now extended to January 2027[81](index=81&type=chunk) Key Financial Ratios | Indicator | December 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Gearing Ratio | 25.8% | 22.7% | | Current Ratio | 2.3 | 3.8 | [CORPORATE GOVERNANCE REPORT](index=21&type=section&id=CORPORATE%20GOVERNANCE%20REPORT) This report details the Group's corporate governance practices, including board structure, committees, and internal control systems, ensuring compliance and transparency [Board of Directors](index=21&type=section&id=BOARD%20OF%20DIRECTORS) The Board, comprising two executive and three independent non-executive directors, held two meetings and maintained compliance with listing rules - The Board of Directors comprises two executive directors (Mr. Zhang Hengxin, Mr. Jia Minghui) and three independent non-executive directors (Mr. Chan Chi Keung, Mr. Au Yeung Ming Yin, Mr. Kwok Chun Fai)[108](index=108&type=chunk) - During the reporting year, the Board held two meetings, and the Chairman met with the independent non-executive directors once without other directors present[111](index=111&type=chunk) [Chairman and Chief Executive](index=27&type=section&id=CHAIRMAN%20AND%20CHIEF%20EXECUTIVE) The roles of Chairman and Chief Executive are combined under Mr. Zhang Hengxin, a deviation from governance code, deemed beneficial for strong leadership - The company deviates from Corporate Governance Code Provision A.2.1, with the roles of Chairman and Chief Executive (held by the Managing Director) combined under Mr. Zhang Hengxin[148](index=148&type=chunk)[149](index=149&type=chunk) - The Board believes this arrangement is in the best interests of shareholders, providing strong leadership to reposition the company and enhance shareholder value[149](index=149&type=chunk) [Board Committees](index=27&type=section&id=BOARD%20COMMITTEES) The company maintains remuneration, nomination, audit, and investment committees, predominantly composed of independent non-executive directors, fulfilling their oversight duties - The Remuneration Committee, composed of three directors with a majority of independent non-executive directors, held one meeting during the year to review and recommend remuneration packages for executive directors and senior management[160](index=160&type=chunk)[161](index=161&type=chunk) - The Nomination Committee, comprising three directors with a majority of independent non-executive directors, held one meeting during the year to review the Board's structure, size, and diversity, and assess the independence of independent non-executive directors[171](index=171&type=chunk)[173](index=173&type=chunk) - The Audit Committee, composed of three independent non-executive directors, held two meetings during the year to review annual and interim financial statements, risk management, and internal control systems[176](index=176&type=chunk)[178](index=178&type=chunk) [Risk Management and Internal Control](index=34&type=section&id=RISK%20MANAGEMENT%20AND%20INTERNAL%20CONTROL) The Board oversees the Group's risk management and internal control systems, which were reviewed by an independent consultant and deemed effective for FY2021 - The Board is responsible for the effectiveness of the Group's risk management and internal control systems, with management responsible for their design, implementation, and monitoring[199](index=199&type=chunk) - The company does not have an internal audit function but appointed an independent internal control consultant for review, deeming it more cost-effective[217](index=217&type=chunk) - Following the annual review, the Board concluded that the Group's risk management and internal control systems were effective and adequate for the FY2021[222](index=222&type=chunk) [DIRECTORS' REPORT](index=43&type=section&id=DIRECTORS'%20REPORT) This report outlines the company's principal activities, business review, and directors' and substantial shareholders' interests in shares and related securities [Principal Activities and Business Review](index=43&type=section&id=PRINCIPAL%20ACTIVITIES%20AND%20BUSINESS%20REVIEW) The company operates as an investment holding company with diverse subsidiaries in medical products, plastics, construction, money lending, and securities investment - The company is an investment holding company, with its principal subsidiaries' businesses detailed in Note 33 to the consolidated financial statements[258](index=258&type=chunk) - The Directors do not recommend the payment of a dividend for the year ended December 31, 2021[258](index=258&type=chunk) [Directors' and Chief Executive's Interests in Shares, Related Shares and Debentures](index=46&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS) Three directors each hold 18.62 million share options, representing 0.77% of issued share capital, with no options granted, exercised, or lapsed during the year Directors' Long Positions in Shares and Related Shares of the Company (as of December 31, 2021) | Director Name | Capacity | Number of Related Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Zhang Hengxin | Beneficial Owner | 18,620,000 | 0.77% | | Jia Minghui | Beneficial Owner | 18,620,000 | 0.77% | | Au Yeung Ming Yin | Beneficial Owner | 18,620,000 | 0.77% | - The aforementioned related shares are share options granted by the company on May 4, 2020, with an exercise price of **HKD 0.087** per share[277](index=277&type=chunk) - As of year-end 2021, share options involving **372.4 million shares** were granted and remained unexercised under the share option scheme, with no options granted, exercised, or lapsed during the year[289](index=289&type=chunk)[290](index=290&type=chunk) [Substantial Shareholders' Interests in Shares and Related Shares](index=51&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS) As of December 31, 2021, Mr. Gong Hongwei was the only substantial shareholder, beneficially owning 126.43 million ordinary shares, or 5.23% of issued capital Substantial Shareholders' Shareholdings (as of December 31, 2021) | Shareholder Name | Capacity/Nature of Interest | Number of Issued Ordinary Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Gong Hongwei | Beneficial Owner | 126,430,000 | 5.23% | [Major Customers and Suppliers](index=52&type=section&id=MAJOR%20CUSTOMERS%20AND%20SUPPLIERS) The Group exhibits high concentration risk with its top customer accounting for 11% of revenue and top five suppliers for 98% of total purchases - The largest customer accounted for approximately **11%** of the Group's consolidated revenue, with the top five customers collectively accounting for approximately **50%**[310](index=310&type=chunk) - The largest supplier accounted for approximately **47%** of the Group's total purchases, with the top five suppliers collectively accounting for approximately **98%**[311](index=311&type=chunk) [INDEPENDENT AUDITOR'S REPORT](index=59&type=section&id=INDEPENDENT%20AUDITOR'S%20REPORT) The Independent Auditor's Report provides an opinion on the consolidated financial statements and highlights key audit matters for the reporting period [Auditor's Opinion](index=59&type=section&id=AUDITOR'S%20OPINION) The auditor issued an unmodified opinion, affirming the consolidated financial statements fairly present the Group's financial position and performance in accordance with HKFRS - The auditor issued an unmodified opinion on the company's 2021 consolidated financial statements, affirming their true and fair presentation of the company's financial position and operating results[364](index=364&type=chunk) [Key Audit Matters](index=60&type=section&id=KEY%20AUDIT%20MATTERS) Key audit matters include the impairment assessment of loans receivable and the fair value measurement of unlisted equity instruments, both involving significant management judgment - Key Audit Matter One: Impairment assessment of loans receivable, with a net book value of approximately **HKD 100.189 million** as of year-end 2021, involving significant management judgment and estimates for expected credit losses[372](index=372&type=chunk)[374](index=374&type=chunk)[376](index=376&type=chunk) - Key Audit Matter Two: Fair value measurement of unlisted equity instruments, amounting to approximately **HKD 21.418 million** as of year-end 2021, which is complex and relies on valuation models and significant judgment[381](index=381&type=chunk)[382](index=382&type=chunk) [CONSOLIDATED FINANCIAL STATEMENTS](index=67&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the Group's consolidated financial statements, including the statement of profit or loss, financial position, and cash flows for the reporting period [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=67&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) In FY2021, revenue increased to HKD 71.9 million, gross profit rose, and the annual loss significantly narrowed to HKD 18.1 million due to cost control Consolidated Statement of Profit or Loss Summary (For the year ended December 31) | Item (HKD thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Revenue | 71,891 | 53,768 | | Gross Profit | 14,115 | 13,300 | | Loss Before Income Tax | (18,108) | (35,541) | | Loss for the Year Attributable to Owners of the Company | (18,108) | (34,969) | | Total Comprehensive Loss for the Year | (17,269) | (34,137) | | Basic and Diluted Loss per Share (HK cents) | (0.75) | (1.71) | [Consolidated Statement of Financial Position](index=68&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of December 31, 2021, total assets were HKD 184.8 million, total liabilities HKD 69.95 million, and net assets HKD 114.8 million, reflecting a 13.1% decrease Consolidated Statement of Financial Position Summary (As of December 31) | Item (HKD thousands) | 2021 | 2020 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 22,776 | 36,128 | | Current Assets | 162,001 | 176,628 | | **Total Assets** | **184,777** | **212,756** | | **Liabilities and Equity** | | | | Current Liabilities | 69,514 | 46,991 | | Non-current Liabilities | 439 | 33,672 | | **Total Liabilities** | **69,953** | **80,663** | | **Total Equity** | **114,824** | **132,093** | [Consolidated Statement of Cash Flows](index=71&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) Operating activities generated HKD 5.4 million in net cash, while investing and financing activities resulted in net outflows, leading to a net cash increase of HKD 0.64 million Consolidated Statement of Cash Flows Summary (For the year ended December 31) | Item (HKD thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 5,399 | (26,942) | | Net Cash Used In Investing Activities | (1,313) | (33,749) | | Net Cash (Used In)/Generated From Financing Activities | (3,443) | 53,610 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 643 | (7,081) | | Cash and Cash Equivalents at Beginning of Year | 4,131 | 12,288 | | **Cash and Cash Equivalents at End of Year** | **4,721** | **4,131** | [FINANCIAL SUMMARY](index=181&type=section&id=FINANCIAL%20SUMMARY) This section provides a five-year financial overview, highlighting trends in revenue, annual loss, total assets, and total equity [Five-Year Financial Summary](index=181&type=section&id=FIVE-YEAR%20FINANCIAL%20SUMMARY) Over the past five years, revenue fluctuated with a rebound in 2021, while the Group consistently reported annual losses, with 2021 being the lowest Five-Year Performance and Balance Sheet Summary (HKD thousands) | For the year ended December 31 | 2021 | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Performance** | | | | | | | Revenue | 71,891 | 53,768 | 67,707 | 112,279 | 87,932 | | Loss for the Year Attributable to Owners of the Company | (18,108) | (34,969) | (34,546) | (26,752) | (147,930) | | **Assets and Liabilities** | | | | | | | Total Assets | 184,777 | 212,756 | 192,817 | 234,093 | 228,211 | | Total Liabilities | 69,953 | 80,663 | 86,530 | 98,258 | 62,528 | | Equity Attributable to Owners of the Company | 114,824 | 132,093 | 106,287 | 135,835 | 165,683 |

Revenue and Profitability - For the six months ended June 30, 2021, the Group's revenue increased by HK$2.1 million or 7.6% to HK$29.8 million compared to HK$27.7 million in the same period last year, primarily driven by the Medical Products Business[7]. - Gross profit rose by HK$1.2 million or 15.4% to HK$9.0 million, with a gross profit margin increase of 2.3 percentage points to 30.5% from 28.2% in the previous year[8]. - The Medical Products Business revenue surged by HK$7.9 million or 75.2% to HK$18.4 million, accounting for 61.6% of the Group's total revenue for the period[16]. - The overall loss attributable to owners of the Company decreased by HK$10.6 million or 89.8% to HK$1.2 million compared to a loss of HK$11.8 million in the same period of 2020[15]. - Revenue for the six months ended 30 June 2021 was HK$29,845,000, representing an increase of 7.8% compared to HK$27,668,000 for the same period in 2020[134]. - Gross profit for the same period was HK$9,089,000, up from HK$7,792,000, indicating a gross profit margin improvement[134]. - Loss for the period narrowed to HK$1,245,000 from HK$11,810,000 in the previous year, reflecting a significant reduction in losses[134]. - Total comprehensive loss attributable to owners of the Company was HK$2,004,000, compared to HK$11,810,000 in the prior year[134]. Business Segments Performance - The Plastic Products Business revenue increased by HK$2.8 million or 140% to HK$3.0 million, representing 10.1% of the Group's total revenue[23]. - Revenue from the Building Contract Works Business decreased by HK$8.9 million or 76.1% to HK$2.8 million for the six months ended 30 June 2021, contributing 9.4% of the Group's total revenue[26]. - The Money Lending Business recorded loan interest income of HK$5.6 million, an increase of HK$0.4 million or 7.7%, accounting for 18.9% of the Group's total revenue[30]. - Segment profit for the Medical Products Business increased to HK$0.4 million from HK$0.1 million in the previous year, reflecting improved sales orders[21]. - The segment loss for the Building Contract Works Business decreased by HK$2.0 million or 60.6% to HK$1.3 million for the six months ended 30 June 2021[26]. - The segment profit from the Money Lending Business amounted to HK$0.6 million, up from HK$0.4 million in the previous year[30]. - Medical Devices Business generated revenue of HK$18,380,000, while the Money Lending Business contributed HK$5,631,000 for the six months ended June 30, 2021[158]. - Reportable segment profit for the six months ended June 30, 2021, was HK$11,189,000, compared to a loss of HK$4,314,000 in the same period of 2020[178]. Financial Position and Liquidity - As of 30 June 2021, the Group's consolidated net asset was approximately HK$130.1 million, a decrease of approximately HK$2.0 million compared to HK$132.1 million as at 31 December 2020[55]. - The Group's current ratio and quick ratio were both 2.2 as of June 30, 2021, down from 3.8 as of December 31, 2020, reflecting a decline in liquidity[59]. - The outstanding principal and interest amount of loan receivables was HK$136.3 million as of 30 June 2021, slightly up from HK$135.5 million at the end of 2020[30]. - Cash and cash equivalents decreased to HK$3,830,000 as of 30 June 2021, down from HK$27,663,000 at the beginning of the year[143]. - The Group's gearing ratio was 22.0% as of June 30, 2021, compared to 22.7% as of December 31, 2020, indicating a slight decrease in leverage[59]. - The Group will focus on maintaining liquidity by effectively managing working capital and controlling costs amid economic uncertainties[49]. Cost Management - Distribution costs increased significantly by HK$3.42 million to HK$3.43 million, while administrative expenses decreased by HK$1.4 million or 7.7% to HK$16.8 million[14]. - Administrative expenses decreased to HK$16,788,000 from HK$18,199,000, showing cost control efforts[134]. - Staff costs, including directors' emoluments, amounted to HK$2,543,000 for the first half of 2021, down from HK$5,032,000 in 2020, reflecting a decrease of approximately 49.7%[186]. - The cost of services recognized as expenses decreased to HK$4,964,000 in 2021 from HK$10,360,000 in 2020, reflecting a decline of about 52%[186]. Investment and Market Strategy - The Group intends to diversify its investment portfolio to reduce concentration and investment risks in light of recent market volatility[36]. - The Group aims to optimize its business portfolio to adapt to changing business climates and explore potentially profitable opportunities for sustainable growth[53]. - The Group is focusing on streamlining and outsourcing business processes, implementing strict cost control, and exploring potential business opportunities to expand its customer base[21]. - The Group will continue to focus on tendering for higher-margin projects in both public and private sectors to improve business results[29]. Corporate Governance and Compliance - The company has complied with all code provisions of the Corporate Governance Code for the six months ended June 30, 2021[121]. - All directors confirmed full compliance with the Model Code for securities transactions during the six months ended June 30, 2021[121]. - The roles of Chairman and Managing Director are combined, with Mr. Zhang Hengxin holding both positions, which the company believes is in the best interest of shareholders[121]. Share Option Scheme - The Company adopted a Share Option Scheme on June 30, 2015, approved by shareholders, to grant share options as incentives for contributions to the Group[74]. - The maximum number of shares that may be issued upon exercise of all share options under the Share Option Scheme must not exceed 10% of the issued share capital on the date of approval[80]. - The Share Option Scheme is valid for ten years and will expire at the close of business on June 29, 2025[81]. - The Company was authorized to refresh the scheme mandate limit to issue a maximum of 241,887,948 share options under the Share Option Scheme at the annual general meeting held on June 29, 2021[82]. Future Outlook - The year 2021 is expected to remain challenging due to the impact of COVID-19 and economic slowdowns, prompting the Group to modify its business strategies accordingly[48]. - The Directors noted that the future performance of the Group's investments will be volatile and significantly affected by the overall economic environment and market conditions[45].

AMCO UNITED HOLDING LIMITED 雋泰控股有限公司 ANNUAL REPORT 2020 年 報 AMCO UNITED HOLDING LIMITED (Stock Code 股份代號 : 630) (Incorporated in Bermuda with limited liability)（於百慕達註冊成立之有限公司） ANNUAL REPORT 2020 年報 * For identification purposes only 僅供識別 Contents 目錄 | --- | --- | |------------------------------------------------|--------------------------| | FINANCIAL HIGHLIGHTS | 財務摘要 | | CORPORATE INFORMATION | 公司資料 | | CHAIRMAN'S STATEMENT | 主席報告 | | MANAGEMENT DISCUSSION AND ANALYSIS | 管理層討論及分析 | | PROFILE OF DIRECTORS ...

Financial Performance - For the six months ended June 30, 2020, the Group's revenue was HK$27.7 million, a decrease of HK$17.8 million or 39.1% from HK$45.5 million in the same period last year[5]. - Gross profit for the Group was HK$7.8 million, down HK$3.7 million or 32.3% compared to HK$11.5 million for the same period last year, with a gross profit margin increase of 2.9 percentage points to 28.2%[6]. - The overall loss attributable to owners of the Company was HK$11.8 million, a decrease of HK$4.7 million or 28.3% compared to a loss of HK$16.5 million in the same period last year[14]. - Loss before income tax for the six months ended June 30, 2020, was HK$12,150,000, an improvement from a loss of HK$16,463,000 in 2019[111]. - The company reported a net loss of HK$11,810 for the six months ended June 30, 2020, compared to a loss of HK$16,463 for the same period in 2019, indicating an improvement in performance[118]. Revenue Breakdown - The Medical Devices Business revenue decreased by HK$7.1 million or 40.2% to HK$10.5 million, accounting for 37.9% of the Group's total revenue[15]. - The Plastic Moulding Business revenue decreased by HK$0.2 million or 40.0% to HK$0.3 million, representing 0.9% of the Group's total revenue[22]. - The Building Contract Works Business generated revenue of HK$11.7 million, a decrease of HK$10.1 million or 46.3% compared to HK$21.8 million in the same period of 2019, contributing 42.3% of the Group's total revenue[27]. - Loan interest income from the Money Lending Business was HK$5.2 million, a decrease of HK$0.5 million or 8.8% from HK$5.7 million in the previous year, accounting for 18.9% of the Group's total revenue[33]. Cost Management - Distribution costs declined by HK$0.09 million to HK$0.01 million, a reduction of 90.0% over the corresponding period of 2019[13]. - Administrative expenses decreased by HK$4.9 million to HK$18.2 million, representing a decrease of 21.2% compared to HK$23.1 million in the same period last year[13]. - Staff costs, including salaries, wages, and other benefits, decreased to HK$5,032,000 in 2020 from HK$6,904,000 in 2019, a reduction of about 27.1%[166]. - Cost of inventories recognized as expenses decreased to HK$9,516,000 in 2020 from HK$13,822,000 in 2019, a decrease of approximately 31.5%[166]. - Cost of services decreased to HK$10,360,000 in 2020 from HK$19,971,000 in 2019, representing a reduction of about 48.2%[166]. Investment and Assets - The outstanding principal and interest amount of loan receivables as of June 30, 2020, was HK$119.1 million, down from HK$136.6 million as of December 31, 2019[33]. - As of June 30, 2020, the Group held 8 listed equity securities in Hong Kong with a fair value of HK$12.7 million[39]. - The Group's total cash and bank balances amounted to approximately HK$27.7 million as of June 30, 2020, which increased by HK$15.4 million compared to HK$12.3 million as of December 31, 2019[58]. - The Group's total assets amounted to HK$170,748, a decrease from HK$187,153 as of December 31, 2019, representing a decline of approximately 8.1%[116]. - The company’s non-current assets decreased from HK$5,664 to HK$2,728, a decline of approximately 52.1%[116]. Share Options and Dividends - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2020, compared to nil for the same period in 2019[62]. - The total number of shares available for issue under the Share Option Scheme is 577,287,948, representing approximately 28.18% of the total shares in issue as of August 31, 2020 (i.e., 2,048,879,481 shares)[91]. - The total outstanding share options at the end of the period amounted to 372,400,000, which is approximately 18.18% of the total shares in issue[90]. - The exercise price for the share options granted is set at HK$0.087, with an exercise period from May 4, 2020, to May 3, 2025[90]. Business Strategy and Future Outlook - The Group is actively exploring potential business opportunities to expand its customer base in both the Medical Devices and Plastic Moulding segments[22]. - The Group aims to diversify its investment portfolio to reduce concentration and investment risks due to recent market volatility[40]. - The Group will continue to implement prudent credit control procedures to balance business growth and risk management in its Money Lending Business[33]. - The Group will focus on effective management of working capital and cost control to maintain liquidity amid economic slowdown and market volatility[53]. - The company expects the performance of the Building Contract Works Business to improve in the second half of 2020 based on the latest information available[197]. Impairment and Goodwill - The impairment loss recognized during the period was HK$6,379,000, compared to HK$0 in the previous period[189]. - Goodwill related to the Building Contract Works Business was approximately HK$10,196,000, with impairment recognized for both June 30, 2020, and December 31, 2019[190]. - The impairment loss has been included in profit or loss under administrative expenses[197]. - Goodwill of approximately HK$67,362,000 related to the Medical Devices Business unit was fully impaired as of 31 December 2014 due to significant and continuous losses incurred in prior years[197].

Financial Performance - Revenue for 2019 decreased to HK$67,707,000 from HK$112,279,000 in 2018, representing a decline of approximately 39.6%[21] - The loss for the year increased to HK$34,546,000 in 2019 compared to a loss of HK$26,752,000 in 2018[21] - The equity attributable to owners of the Company decreased to HK$106,287,000 in 2019 from HK$135,835,000 in 2018, a reduction of about 21.7%[21] - The total assets of the Group decreased to HK$192,817,000 in 2019 from HK$234,093,000 in 2018, a decline of approximately 17.6%[21] - The return on total assets was (17.9%) in 2019, compared to (11.4%) in 2018, indicating a worsening financial performance[21] - The return on sales was (51.0%) in 2019, significantly lower than (23.8%) in 2018, reflecting increased operational challenges[21] - The Group's overall performance was impacted by the challenging economic and trade environment, but it maintained stable gross margins in sales and services[39] - Gross profit decreased by HK$4.8 million or 20.3% to HK$18.8 million, while the gross profit margin increased by 6.8 percentage points to 27.8%[52] - Overall loss attributable to owners of the Company was HK$34.5 million, an increase of HK$7.8 million or 29.2% compared to a loss of HK$26.7 million in 2018[54] Business Segment Performance - The Medical Devices Business experienced a significant decline in sales orders, leading to a shift from profit to loss despite higher margins[37] - The Plastic Moulding Business continued to see revenue decline due to the end of product life cycles, although segment losses decreased due to cost containment measures[38] - The Medical Equipment Business experienced a significant decline in revenue due to a major customer's order drop, resulting in a shift from profit to loss despite improved price margins[40] - Revenue from the Plastic Moulding Business decreased by 17.6% or HK$0.3 million to HK$1.4 million, accounting for 2.1% of the Group's total revenue[61] - Segment loss of the Plastic Moulding Business decreased by 86.1% or HK$0.31 million to HK$0.05 million for the year under review[62] - Revenue from the Building Contract Works Business decreased by HK$17.3 million or 31.7% to HK$37.3 million for the year ended 31 December 2019, contributing 55.1% of the Group's total revenue[65] - Segment loss for the Building Contract Works Business increased to HK$11.3 million in 2019 from HK$5.0 million in 2018, primarily due to a decrease in gross profit margin and an impairment loss on goodwill of HK$7.9 million[65] - The Money Lending Business generated stable income with both segment revenue and profit increasing in 2019[44] Cost Management and Operational Strategies - The Group implemented strict cost control measures and streamlined operations to address challenges in the Medical Equipment and Plastic Moulds Businesses[40][46] - The Group has ceased production of low gross profit margin products in the Plastic Moulding Business and is focusing on higher margin orders[61] - The Group plans to continue tendering for higher-margin contracts in the construction sector despite a challenging market environment[45] - The Group will continue to focus on tendering for projects with higher margins and managing contract and operating costs to improve business results[69] Investment and Financial Management - The Group will actively monitor and reassess its investment portfolio in the Securities Investment segment, which recorded a stable loss compared to the previous year[44] - The Group intends to diversify its investment portfolio to reduce concentration and investment risks in light of recent market volatility[75] - The Group's Securities Investment segment recorded an unrealised loss of HK$10.9 million for the year ended 31 December 2019, compared to an unrealised loss of HK$10.0 million in 2018[72] - The Group's total borrowings from financial institutions were zero as of December 31, 2019[87][91] - The Group's total cash and bank balances amounted to HK$12.3 million as of December 31, 2019, down HK$6.0 million from HK$18.3 million as of December 31, 2018[87][91] Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code throughout the year ended December 31, 2019[116] - The Board consists of two Executive Directors and three Independent Non-executive Directors, ensuring a balanced governance structure[116] - The company is committed to maintaining high standards of corporate governance, emphasizing accountability and transparency to shareholders[116] - The Board oversees the Group's businesses, strategic decisions, and performance, delegating day-to-day responsibilities to Executive Directors and senior management[116] - The Company has arranged insurance cover to indemnify Directors and officers against costs and liabilities incurred in the execution of their duties[144] - The Company monitors compliance with legal and regulatory requirements as part of its governance duties[149] Board and Committee Activities - The Audit Committee held two meetings during the year to review the audited financial statements for the year ended December 31, 2018, and the unaudited interim financial statements for the six months ended June 30, 2019[181] - The Nomination Committee is responsible for reviewing the Board's structure, size, and diversity at least annually[162] - The Remuneration Committee reviewed and recommended the remuneration packages for Executive Directors and senior management for the year ended December 31, 2019[160] - The Investment and Management Committee is responsible for managing daily operations and evaluating proposed investment activities, particularly those with a percentage ratio equal to or higher than 5%[187] - The Board has adopted a Board Diversity Policy to enhance performance quality through diverse Board composition[175] Employee and Management Information - The Group employed 44 individuals as of December 31, 2019, an increase from 42 in 2018[94] - Employee remuneration is largely performance-based, including salaries, insurance, and share option schemes[94] - Other employee benefits include medical cover, housing allowance, and discretionary bonuses[94] - The Financial Controller has over 10 years of experience in auditing, accounting, and financial management, enhancing the company's financial oversight[108] - The company secretary has held various management positions, bringing extensive experience in corporate governance and compliance[110]

Financial Performance - For the six months ended June 30, 2019, the Group's revenue was HK$45.5 million, a decrease of HK$9.7 million or 17.6% from HK$55.2 million in the same period last year[10]. - The Group's gross profit was HK$11.5 million, an increase of HK$0.8 million or 7.5%, with a gross profit margin rising by 5.9 percentage points to 25.3%[11]. - The Group recorded a loss attributable to owners of the Company of HK$16.5 million, compared to a profit of HK$3.4 million in the same period last year[17]. - Loss before income tax for the period was HK$16,463,000, compared to a profit of HK$3,343,000 in the same period of 2018[97]. - Basic and diluted loss per share was HK(0.88) cent, compared to earnings of HK0.18 cent per share in the previous year[97]. - The Group recorded other losses of HK$3.3 million, compared to other income of HK$5.0 million in the same period last year[12]. - Administrative expenses rose by HK$10.8 million to HK$23.1 million, an increase of 87.8% from HK$12.3 million[17]. - The Group's consolidated loss before income tax for the six months ended June 30, 2019, was HK$16,463,000, compared to a profit of HK$3,343,000 in 2018[177]. Business Segment Performance - The Medical Devices Business generated revenue of HK$17.5 million, down 10.7% or HK$2.1 million from HK$19.6 million, accounting for 38.5% of total revenue[17]. - The segment profit for the Medical Devices Business was HK$1.5 million, a decrease of HK$0.1 million or 6.3% compared to HK$1.6 million in the previous year[17]. - Revenue from the Plastic Moulding Business increased by HK$0.2 million or 66.7% to HK$0.5 million, representing 1.1% of the Group's total revenue[19]. - Revenue from the Building Contract Works Business decreased by HK$9.3 million or 29.9% to HK$21.8 million for the six months ended June 30, 2019, compared to HK$31.1 million for the corresponding period in 2018[23]. - Segment loss of the Building Contract Works Business increased to HK$5.1 million for the six months ended June 30, 2019, compared to HK$0.06 million for the same period in 2018[23]. - Loan interest income from the Money Lending Business increased by HK$1.5 million or 35.7% to HK$5.7 million for the six months ended June 30, 2019, compared to HK$4.2 million for the corresponding period last year[27]. - Segment profit from the Money Lending Business amounted to HK$5.1 million for the six months ended June 30, 2019, compared to HK$4.1 million for the same period in 2018[27]. Investment and Financial Position - As of June 30, 2019, the Group's consolidated net asset was approximately HK$124.4 million, a decrease of approximately HK$11.4 million compared to HK$135.8 million as of December 31, 2018[51]. - The Group's total cash and bank balances amounted to approximately HK$11.9 million as of June 30, 2019, down HK$6.4 million from HK$18.3 million as of December 31, 2018[51]. - The Group's gearing ratio was 17.4% as of June 30, 2019, compared to 9.1% as of December 31, 2018[51]. - The Group's current ratio and quick ratio were both 3.5 as of June 30, 2019, an increase from 3.3 as of December 31, 2018[53]. - The outstanding principal and interest amount of loan receivables as at 30 June 2019 was HK$142.9 million[27]. - The Group has made a loss allowance for expected credit loss of HK$3.7 million for loan receivables as at 30 June 2019[27]. - The Group's cash and bank balances at 1 January 2019 were HK$18,300,000, compared to HK$26,276,000 at the same time in 2018, showing a decrease of approximately 30.5%[108]. Operational Strategies and Future Outlook - The Group is implementing strategies to streamline and outsource business processes, enforce strict cost control, and ensure effective resource utilization to maintain competitive advantages[17]. - The Group will continue to focus on tendering for projects with higher margins in both public and private sectors[25]. - The Group aims to enhance profit margins through effective cost control and working capital management[46]. - The year 2019 is expected to be challenging due to economic uncertainty and ongoing political unrest in Hong Kong[45]. - The Group intends to leverage its existing technical knowledge to diversify income streams and achieve sustainable growth[40]. - The Group will focus on expanding business segments with higher profit margins and growth potential, such as money lending and securities brokerage[42]. Share Option Scheme - The Share Option Scheme allows the Board to grant share options to eligible participants, with options to be accepted within 28 days from the date of the grant letter[59]. - The exercise price of share options must be at least the highest of the closing price on the grant date, the average closing price for the five business days prior, or the nominal value of a share[60]. - The maximum number of shares that may be issued upon the exercise of all share options under the Share Option Scheme must not exceed 10% of the issued share capital of the Company at the time of approval[61]. - At the annual general meeting on June 17, 2019, the Company was authorized to refresh the scheme mandate limit to issue a maximum of 186,267,948 share options under the Share Option Scheme[66]. - The total number of shares issued upon exercise of share options in any 12-month period shall not exceed 1% of the shares in issue unless approved by ordinary resolution[64]. - Share options granted to substantial Shareholders or Independent Non-executive Directors exceeding 0.1% of the Company's issued share capital and valued over HK$5 million must be pre-approved by Shareholders[64]. - The Share Option Scheme is valid for ten years and will expire at the close of business on June 29, 2025[65]. Compliance and Governance - The Company has complied with all code provisions of the Corporate Governance Governance Code for the six months ended June 30, 2019[82]. - The Company will review its current structure regarding the roles of Chairman and Managing Director when appropriate[82]. - The Company has maintained a focus on enhancing shareholder value through effective leadership and operational strategies[82].

Financial Performance - Revenue from continuing operations for 2018 was HK$112,279,000, an increase from HK$87,932,000 in 2017, representing a growth of approximately 27.6%[19] - The loss for the year decreased significantly to HK$26,752,000 in 2018 from HK$147,930,000 in 2017, indicating an improvement in financial performance[19] - The equity attributable to owners of the Company decreased to HK$135,835,000 in 2018 from HK$165,683,000 in 2017, reflecting a decline of about 18%[19] - The total assets increased slightly to HK$234,093,000 in 2018 from HK$228,211,000 in 2017, showing a growth of approximately 2.5%[19] - The current ratio for 2018 was 3.3, slightly down from 3.4 in 2017, indicating stable liquidity[19] - The total debt to total assets ratio increased to 0.4 in 2018 from 0.3 in 2017, suggesting a higher leverage position[19] - The return on total assets was (11.4%) in 2018, an improvement from (64.8%) in 2017, indicating better asset utilization despite still being negative[19] - The return on sales was (23.8%) in 2018, improved from (168.2%) in 2017, reflecting a reduction in losses relative to revenue[19] Business Segment Performance - The Medical Devices Business saw an increase in revenue despite lower margins, attributed to a recovery in sales orders and effective cost control measures[35] - The Plastic Moulding Business continued to decline in revenue due to the end of product life cycles, with segment losses increasing, but the company plans to maintain operations as long as it contributes to covering costs[35] - The total revenue of the Group increased by HK$24.4 million or 27.8%, from HK$87.9 million last year to HK$112.3 million for the year ended December 31, 2018[53] - Gross profit of the Group was HK$23.6 million, representing an increase of HK$3.2 million or 15.7% compared to HK$20.4 million in 2017[54] - Gross profit margin decreased by 2.2 percentage points to 21.0% from 23.2% in 2017, primarily due to a decrease in gross profit margin in the Medical Devices Business and Building Contract Works Business[54] - Revenue from the Medical Devices Business increased, contributing to the overall revenue growth despite a decline in profit margin[53] - The Building Contract Works Business generated increased revenue from significant public sector contracts awarded near the end of 2017 and early 2018, but faced challenges from intensified market competition and rising costs[38] - The Money Lending Business generated stable income with both segment revenue and profit increasing in 2018[39] - The Group recorded a segment loss in its Securities Investment business, which was significantly reduced compared to the previous year[39] - The Group plans to continue efforts in tendering for higher-margin projects, particularly in the private sector, to improve results in the Building Contract Works Business[40] Cost Management and Financial Strategy - The Group aims to maintain liquidity through effective working capital management and cost control amidst economic uncertainties[46] - The Group recorded a significant decrease in other losses to HK$9.7 million from HK$128.2 million in 2017, primarily due to reduced unrealised fair value losses on held-for-trading investments[56] - Distribution costs declined by 33.3% to HK$0.2 million from HK$0.3 million in 2017, reflecting stringent cost control measures[56] - The Group plans to diversify its investment portfolio to reduce concentration and investment risks in light of recent market volatility[81] - The Group will maintain a diversified portfolio of investments to minimize possible financial risks[91] Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the year ended December 31, 2018[118] - The Board consists of two Executive Directors and three Independent Non-executive Directors, overseeing strategic decisions and performance[118] - The Company aims to meet the requirement of providing at least 14 days' notice for regular board meetings in the future[120] - The Company has adopted high standards of corporate governance to maintain shareholder accountability[118] - The Company has streamlined its operations, focusing on business development, operational efficiency, and financial management during the year ended December 31, 2018[152] Director and Committee Activities - The Board of Directors held four meetings during the year, ensuring accountability and transparency in corporate governance[120] - The Remuneration Committee is tasked with recommending policies and structures for the remuneration of all Directors and senior management[154] - The Audit Committee held two meetings during the year to review the financial reporting process and risk management systems[175] - The Nomination Committee assessed the independence of Independent Non-executive Directors and made recommendations for the re-election of retiring Directors at the 2018 AGM[173] Employee and Operational Insights - The number of employees increased to 42 as of December 31, 2018, from 37 in 2017[97] - Employee remuneration is based on performance and experience, including salaries, insurance, and share option schemes[97] - The Company has maintained a training record for Directors to ensure continuous professional development and compliance with statutory requirements[139] - The Company encourages Directors to participate in training to develop and refresh their knowledge and skills[139]