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的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CNT GROUP LIMITED 北 海 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：701） 截至二零二二年十二月三十一日止年度之 業績公佈 及 建議修訂現有公司細則 財務摘要 截至十二月三十一日止年度 二零二二年 二零二一年 變動 千港元 千港元 業績 （經重列） % 收入 665,591 885,473 -24.8 毛利 156,162 200,585 -22.1 毛利率 23.5% 22.7% 3.5 本年度虧損 (118,989) (35,428) 235.9 應佔虧損： 本公司股東 (94,081) (20,633) 356.0 非控股權益 (24,908) (14,795) 68.4 每股虧損（港仙） 基本及攤薄 (4.94) (1.08) 357.4 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 319,942,000, a decrease of 26.1% compared to HKD 432,665,000 for the same period in 2021[6]. - Gross profit for the same period was HKD 68,128,000, down 37.5% from HKD 109,006,000 in 2021[6]. - The net loss for the period was HKD 58,812,000, compared to a profit of HKD 198,000 in the previous year[8]. - The total comprehensive loss for the period was HKD 99,832,000, compared to a total comprehensive income of HKD 7,466,000 in 2021[8]. - For the six months ended June 30, 2022, the company reported a total comprehensive loss of HKD 99,832,000, compared to a loss of HKD 79,269,000 for the same period in 2021, reflecting an increase in losses of approximately 25.0%[14]. - The company reported a pre-tax loss of HKD 58,258,000 for the six months ended June 30, 2022, compared to a pre-tax profit of HKD 1,962,000 for the same period in 2021[37]. - The company reported a loss attributable to shareholders of HKD 46,080,000 for the first half of 2022, compared to a profit of HKD 4,290,000 in the same period of 2021, marking a significant decline[100]. Assets and Liabilities - Total assets as of June 30, 2022, were HKD 1,587,261,000, down from HKD 1,717,049,000 at the end of 2021[10]. - Current liabilities totaled HKD 631,030,000, a decrease from HKD 724,165,000 in the previous year[10]. - The company's equity attributable to owners of the parent was HKD 1,238,286,000, down from HKD 1,355,629,000 at the end of 2021[12]. - Total liabilities as of June 30, 2022, were HKD 668,828,000, compared to HKD 759,282,000 as of December 31, 2021, indicating a reduction of 11.9%[35]. - The group's total equity as of June 30, 2022, was HKD 1,428,660,000, down from HKD 1,546,000,000 as of December 31, 2021[135]. Cash Flow and Liquidity - The company reported a decrease in cash and cash equivalents to HKD 338,443,000 from HKD 455,165,000 in the previous year[10]. - The company's cash flow from operating activities showed a net outflow of HKD 74,916,000 for the six months ended June 30, 2022, compared to an outflow of HKD 69,489,000 in the previous year, indicating a decline of about 7.0%[18]. - The total cash and cash equivalents at the end of the period were HKD 338,443 thousand, down from HKD 387,976 thousand at the end of June 2021[20]. - The company experienced a decrease in cash and cash equivalents of HKD (108,637) thousand for the six months ended June 30, 2022, compared to a decrease of HKD (115,835) thousand in the same period of 2021[20]. - The company's cash and cash equivalents decreased by HKD 16,443,000 during the reporting period, reflecting challenges in liquidity management[18]. Revenue Streams - Sales of paint products amounted to HKD 310,152,000, down from HKD 403,797,000, representing a decline of 23.1% year-over-year[39]. - The hotel business generated revenue of HKD 1,027,000, which was not present in the previous year's report, indicating new revenue streams[39]. - The steel product trading segment generated revenue of HKD 636,000, significantly lower than HKD 13,063,000 in the previous year, marking a decrease of 95.1%[39]. - The rental income from investment properties was HKD 8,127,000, down from HKD 15,805,000, reflecting a decline of 48.6% year-over-year[39]. Operational Performance - The company’s operating profit before changes in working capital was reported at HKD (30,790,000) for the six months ended June 30, 2022, compared to HKD 6,273,000 in the previous year, indicating a deterioration in operational performance[18]. - The company experienced a significant decrease in trade receivables, which reduced by HKD 12,592,000 during the reporting period, compared to an increase of HKD 19,559,000 in the previous year[18]. - The average occupancy rate of investment properties decreased to 87.7% in the first half of 2022 from 96.7% in the same period of 2021[118]. Stock Options and Corporate Governance - The company has not granted any stock options under the 2012 plan as of June 30, 2022, and the 2012 plan has been terminated[70]. - A new stock option plan was adopted on June 2, 2022, which will remain effective for ten years, expiring on June 1, 2032[71]. - A total of 80,000,000 stock options were granted on June 15, 2022, with an exercise price of HKD 0.335 per share[72]. - The company has adhered to the corporate governance code as per the listing rules during the six months ending June 30, 2022[170]. Future Outlook - The group plans to launch new paint products with fireproof and antiviral technologies in the second half of 2022[142]. - The group aims to streamline its paint and coating product offerings and will temporarily cease production of several less popular products over the next two years[142]. - The office rental market in Hong Kong is expected to stabilize in the second half of 2022, with demand from small and medium enterprises improving as pandemic restrictions ease[145].

Financial Performance - In 2021, CNT Group's revenue from the paint and coating business increased by 17.6% to approximately HKD 838.07 million, compared to HKD 712.89 million in 2020[7]. - Total revenue for the year ended December 31, 2021, was HKD 881.02 million, reflecting a 12.7% increase from HKD 782.73 million in 2020[8]. - The group's gross profit decreased by 20.8% to HKD 195.44 million in 2021, down from HKD 247.00 million in 2020[8]. - The loss attributable to shareholders significantly reduced to HKD 20.63 million in 2021, compared to HKD 94.24 million in 2020[8]. - Revenue for the year was approximately HKD 881,020,000, representing a 12.7% increase from the previous year[66]. - Gross profit for the year was approximately HKD 196,130,000, a decrease of 20.8% compared to the previous year, with the gross margin declining from 31.7% to 22.3%[66]. Revenue Breakdown - The paint and coating segment generated revenue of approximately HKD 838,070,000, accounting for 95.1% of total revenue, with a 15.5% increase year-over-year[67]. - The property investment segment recorded revenue of approximately HKD 29,550,000, contributing 3.4% to total revenue, with a significant increase in segment profit to approximately HKD 45,390,000 from a loss of HKD 63,370,000 last year[68]. - The steel trading segment reported revenue of HKD 13,400,000, a decrease of 63.8% year-over-year, attributed to reduced demand and intense competition[71]. Market Conditions - The global economic growth is expected to slow to 4% in 2022 and further to 3.5% in 2023 due to ongoing challenges from the pandemic and geopolitical tensions[10]. - The anticipated economic growth for Hong Kong in 2022 is projected to be between 2.0% and 3.5%[6]. - The overall market for commercial properties in Hong Kong is expected to see a rental increase of 5% in 2022, following a 5.2% decline in 2021[1]. Investment Property Performance - The group's investment property revenue decreased by 6.4% to approximately HKD 29.55 million in 2021, down from HKD 31.57 million in 2020[7]. - The fair value gain from the investment property portfolio was approximately HKD 15.38 million in 2021, a significant improvement from a fair value loss of HKD 93.88 million in 2020[7]. - The total value of the group's investment properties as of December 31, 2021, was approximately HKD 601,380,000, a decrease of 28.4% from HKD 840,180,000 in 2020[39]. Operational Challenges - The company's sales cost as a percentage of revenue rose from 69.7% in 2020 to 80.2% in 2021, impacting profitability due to rising raw material prices[19]. - Revenue in Hong Kong decreased by approximately 1.5% for the year ended December 31, 2021, following a 9.4% decline in 2020, primarily due to project delays[27]. - The group faces financial risks due to interest rate fluctuations affecting interest-bearing financial assets and liabilities, primarily from bank deposits and floating-rate bank borrowings[87]. Corporate Governance - The board of directors is committed to good corporate governance practices, with regular meetings to discuss overall strategy and performance[105]. - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring a diverse range of expertise on the board[102]. - The audit committee held two meetings during the year to review financial statements and the effectiveness of the group's risk management and internal control systems[114]. ESG and Sustainability - The company presented its ESG report for the year ending December 31, 2021, outlining policies and performance in environmental and social areas[140]. - The company emphasizes the importance of a robust ESG strategy to create investment value and long-term returns for stakeholders[154]. - The management team actively supported the company's sustainable development strategies and objectives, achieving certain results related to environmental and social key performance indicators[152]. Employee Welfare - The company has implemented a five-day workweek to promote work-life balance for employees[194]. - No layoffs occurred during the COVID-19 pandemic, and employee compensation and benefits remained unchanged[195]. - The company emphasizes continuous professional development and has a long-term training strategy for employees[199].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 432,665,000, representing an increase of 47.3% compared to HKD 293,904,000 for the same period in 2020[14] - Gross profit for the same period was HKD 109,006,000, up 14.6% from HKD 95,085,000 in 2020[14] - The company reported a profit before tax of HKD 1,962,000, a significant recovery from a loss of HKD 67,480,000 in the previous year[14] - Net profit for the period was HKD 198,000, compared to a loss of HKD 68,675,000 in 2020, indicating a turnaround in performance[14] - The company reported a basic and diluted earnings per share of HKD 0.23, recovering from a loss per share of HKD 3.33 in the previous year[14] - Other comprehensive income for the period was HKD 7,268,000, compared to a loss of HKD 15,547,000 in 2020, reflecting improved performance in foreign exchange[16] - For the six months ended June 30, 2021, the total comprehensive income attributable to the owners of the parent was HKD 7,523,000, compared to HKD 21,650,000 for the same period in 2020, representing a decrease of approximately 65.2%[22] - The company reported a pre-tax profit of HKD 1,962,000 for the six months ended June 30, 2021, compared to a pre-tax loss of HKD 67,480,000 in the same period of 2020[46] - The group reported a pre-tax profit of HKD 4,292,000 for the six months ended June 30, 2021, compared to a loss of HKD 63,450,000 in the same period of 2020[63] - The company recorded a profit attributable to shareholders of HKD 4,290,000 for the first six months of 2021, compared to a loss of HKD 63,450,000 in the same period of 2020[101] Assets and Liabilities - The total assets as of June 30, 2021, were HKD 1,739,641,000, slightly down from HKD 1,773,577,000 at the end of 2020[18] - Current assets amounted to HKD 1,028,118,000, a decrease from HKD 1,090,790,000 at the end of 2020[18] - The company's total equity attributable to the owners of the parent was HKD 1,366,392,000, down from HKD 1,394,303,000 at the end of 2020[20] - The company's total equity as of June 30, 2021, was HKD 1,700,021,000, an increase from HKD 1,556,761,000 as of December 31, 2020, reflecting a growth of about 9.2%[22] - The company's total liabilities as of June 30, 2021, were not explicitly detailed but can be inferred from the equity and cash flow statements[22] - Total liabilities as of June 30, 2021, were HKD 647,280,000, down from HKD 663,078,000 at the end of 2020, reflecting a reduction of 2.4%[44] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2021, was HKD 69,489,000, compared to HKD 29,624,000 for the same period in 2020, indicating a significant increase in cash outflow[29] - The company experienced a significant increase in interest paid, amounting to HKD 2,804,000 for the period, compared to HKD 3,786,000 in the previous year[29] - The company’s investment cash flow for the six months ended June 30, 2021, was a net outflow of HKD 11,545,000, contrasting with a net inflow of HKD 8,761,000 in the same period of 2020[29] - The total cash and cash equivalents at the end of the period were HKD 387,976 thousand, down from HKD 408,819 thousand at the end of June 2020, representing a decrease of about 5.3%[31] - The net cash outflow for cash and cash equivalents was HKD (115,835) thousand for the six months ended June 30, 2021, compared to HKD (52,586) thousand for the same period in 2020, reflecting a significant increase in cash outflow[31] - The total cash flow from financing activities included new bank loans of HKD 104,111 thousand and repayment of bank loans of HKD (96,255) thousand for the six months ended June 30, 2021[31] - The total bank borrowings as of June 30, 2021, were HKD 277,550,000, compared to HKD 269,690,000 as of December 31, 2020, with a debt-to-equity ratio of 17.8%[124] Revenue Segmentation - Sales of paint products accounted for HKD 403,797,000, a significant increase from HKD 267,220,000, reflecting a growth of 50.9%[47] - The paint and coating business accounted for 93.3% of total revenue in the first half of 2021, compared to 90.9% in the first half of 2020[102] - Revenue from sales to construction and renovation contractors in mainland China increased by 80.5% to HKD 172,860,000 in the first half of 2021, compared to HKD 95,780,000 in the same period of 2020[107] - Revenue from water-based paint and coating products rose by 61.3% to HKD 187,850,000, accounting for 46.5% of total revenue in the first half of 2021, up from 43.6% in the same period of 2020[108] - The revenue from the steel trading business for the first six months of 2021 was HKD 13,060,000, an increase of 16.2% compared to HKD 11,240,000 in the same period of 2020[119] Expenses and Costs - The cost of sold inventory increased to HKD 323,659,000 for the six months ended June 30, 2021, up 62.8% from HKD 198,819,000 in 2020[59] - Selling and distribution expenses rose by 22.2% to HKD 52,620,000, while administrative expenses increased by 3.9% to HKD 54,540,000 in the first half of 2021[112] - Raw material costs surged by 72.3% in the first half of 2021, outpacing overall revenue growth of 51.1%[110] - Gross profit increased by 16.5% to HKD 92,320,000 in the first half of 2021, despite a decline in gross margin from 29.7% to 22.9% due to rising raw material prices[111] Investment Properties - The total fair value of investment properties as of June 30, 2021, includes a net fair value gain of HKD 15,539,000 for the six months ended[77] - The carrying value of investment properties increased to HKD 857,886,000 from HKD 840,182,000 at the end of 2020, representing a growth of approximately 2.1%[68] - The average occupancy rate for investment properties reached 96.7% in the first half of 2021, up from 95.6% in the same period of 2020[115] - Fair value gains from investment properties amounted to HKD 15,540,000 in the first half of 2021, a significant recovery from a fair value loss of HKD 54,720,000 in the same period of 2020[115] Market Outlook and Strategy - The company anticipates that the paint and coatings industry will continue to develop steadily despite challenges such as rising raw material prices due to increased crude oil prices and strong manufacturing demand[133] - The company plans to enhance its production facilities and capacity for paint and coatings products to ensure reliable and high-quality supply[134] - The company will continue to explore opportunities for business development and acquisitions in the paint and coatings sector in mainland China[134] - The company remains cautiously optimistic about the stable growth of the real estate market in mainland China, despite a challenging economic environment[138] - The company plans to continue reviewing its investment property portfolio and is cautious in acquiring new properties that can generate stable income and capital appreciation potential[116]

///// U)]]]]][iiii CNT GROUP LIMITED 北 海 集 團 有 限 公 司 (於百慕達註冊成立之有限公司) (股份代號：701) ２０２０ 年 報 目 錄 2 公司資料 3 主席報告書 5 管理層討論及分析 20 企業管治報告書 30 環境、社會及管治報告書 46 董事會報告書 58 獨立核數師報告書 // 63 綜合損益表 64 綜合全面收益表 65 綜合財務狀況表 67 綜合權益變動表 69 綜合現金流量表 72 財務報表附註 177 主要物業附表 180 詞彙 公司資料 董事會 執行董事 林定波（主席） 莊志坤（董事總經理） 非執行董事 徐浩銓 陳樺碩 張玉林 獨立非執行董事 胡匡佐 黃德銳 張曉京 林瑩如 鄭偉波 高國輝 審核委員會 胡匡佐（審核委員會主席） 黃德銳 陳樺碩 薪酬委員會 胡匡佐（薪酬委員會主席） 林定波 黃德銳 提名委員會 胡匡佐（提名委員會主席） 莊志坤 張曉京 公司秘書 霍碧儀 核數師 安永會計師事務所 執業會計師 註冊公眾利益實體核數師 香港中環添美道1號中信大廈22樓 股份過戶登記處 香港 卓佳登捷時有限公司 香港皇后大道東183號合和中心54樓 ...

Revenue and Profitability - Revenue for the six months ended June 30, 2020, was HKD 293,904,000, a decrease of 19.6% compared to HKD 365,202,000 in the same period of 2019[6] - The company reported a loss before tax of HKD 67,480,000, compared to a profit of HKD 429,034,000 in the previous year[6] - Net loss attributable to equity holders of the parent was HKD 63,450,000, compared to a profit of HKD 440,062,000 in the same period of 2019[6] - Basic and diluted loss per share was HKD 3.33, compared to earnings per share of HKD 23.12 in 2019[6] - The company reported a pre-tax loss of HKD 58,716 for the six months ended June 30, 2020, compared to a profit of HKD 429,034 in the same period of 2019[184] - The group reported a loss attributable to equity holders of the parent of HKD 63,450,000 for the six months ended June 30, 2020, compared to a profit of HKD 440,062,000 for the same period in 2019[195] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 1,689,372,000, down from HKD 1,814,260,000 at the end of 2019[10] - Current assets decreased to HKD 873,282,000 from HKD 934,140,000 in the previous year[10] - The company’s cash and cash equivalents were HKD 408,819,000, down from HKD 465,374,000 at the end of 2019[10] - Total liabilities of the company as of June 30, 2020, were HKD 1,662,004,000, compared to HKD 1,651,068,000 as of January 1, 2020, showing an increase of about 0.7%[14] - Total liabilities as of June 30, 2020, were HKD 493,406, compared to HKD 511,563 as of December 31, 2019, indicating a reduction in liabilities[180] Equity and Comprehensive Income - Total equity decreased to HKD 1,662,004,000 from HKD 1,786,800,000 at the end of 2019[12] - As of June 30, 2020, the total equity attributable to the owners of the parent company was HKD 1,537,052,000, a decrease from HKD 1,651,068,000 as of January 1, 2020, representing a decline of approximately 6.9%[14] - The company reported a total comprehensive income of HKD 438,746,000 for the six months ended June 30, 2020, compared to HKD 426,660,000 for the same period in 2019, indicating a year-over-year increase of about 2.5%[14] - The company’s total comprehensive income for the period included a loss of HKD 12,563,000 from other comprehensive income, reflecting challenges in the market[14] Cash Flow and Investments - Operating cash flow before changes in working capital for the six months ended June 30, 2020, was HKD 3,708,000, compared to a loss of HKD 41,328,000 in the same period of 2019[167] - Net cash used in operating activities for the six months ended June 30, 2020, was HKD (29,624,000), a decrease from HKD 21,210,000 in 2019[167] - Net cash flow from investing activities for the six months ended June 30, 2020, was HKD 8,761,000, significantly lower than HKD 325,540,000 in the previous year[169] - The company’s investment in properties, plant, and equipment resulted in cash outflows of HKD 6,821,000 for the six months ended June 30, 2020[169] Dividends and Share Structure - The company declared and paid a final dividend of HKD 2,500,000 for the year 2019, consistent with the previous year's dividend[14] - The group did not declare an interim dividend for the six months ended June 30, 2020, compared to no dividend declared for the same period in 2019[199] - The company’s total issued shares remained at 190,369,000 as of June 30, 2020, unchanged from the previous reporting period[14] - The group’s average number of ordinary shares issued was 1,903,685,690 for both periods, indicating no change in share structure[195] Market and Operational Performance - Sales of paint products amounted to HKD 267,220, down from HKD 305,877, representing a decline of 12.6%[184] - Rental income from investment properties increased to HKD 15,444, up 67.5% from HKD 9,218 in the previous year[184] - The cost of sold inventory for the six months ended June 30, 2020, was HKD 198,819,000, down from HKD 274,847,000 in 2019, representing a decrease of approximately 27.6%[193] - The group incurred impairment losses on property, plant, and equipment amounting to HKD 5,011,000 for the six months ended June 30, 2020, compared to no impairment in the same period of 2019[200] Compliance and Regulatory Matters - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with relevant regulations[171] - The group’s tax expense for the period was nil due to no taxable profits generated in Hong Kong, while the applicable tax rate in mainland China was 25%[194]

Financial Performance - CNT Group Limited's revenue for the year ended December 31, 2019, was approximately HKD 807.92 million, a slight decrease of 2.9% compared to HKD 831.36 million in 2018[9]. - The gross profit for the group increased to approximately HKD 43.23 million, a rise of 24.2% compared to the previous year's gross profit[9]. - The group's net profit attributable to shareholders for 2019 was approximately HKD 234.79 million, a turnaround from a loss of HKD 25.09 million in 2018[9]. - The overall revenue of the company increased by 15.6% in HKD terms, and by 20.2% in local currency terms for the year ending December 31, 2019[19]. - The classified profit for the year was approximately HKD 267,430,000, significantly up from HKD 106,990,000 in the previous year, primarily due to the sale of a subsidiary holding the Sai Kung property[35]. - The group recorded a profit attributable to shareholders of approximately HKD 234,790,000, compared to a loss of approximately HKD 25,090,000 in the previous year[61]. - Total revenue for the year was approximately HKD 807,920,000, a decrease of 2.9% compared to last year[61]. - Gross profit for the year was approximately HKD 221,680,000, an increase of 24.2%, with a gross margin rising from 21.5% in 2018 to 27.4% in 2019[61]. - Operating profit for the year was HKD 230.650 million, compared to an operating loss of HKD 75.564 million in the previous year[196]. - The net profit for the year was HKD 227.903 million, a significant recovery from a loss of HKD 60.288 million in 2018[196]. Revenue Breakdown - The revenue from the paint and coating business, operated by the subsidiary China Paint Group Limited, was approximately HKD 713.33 million, representing a 15.6% increase from HKD 617.25 million in 2018[8]. - The industrial paint and coating products accounted for 41.0% of total revenue in 2019, down from 46.2% in 2018[15]. - The property investment business contributed approximately HKD 22.52 million in revenue, slightly up from HKD 22.37 million in 2018[8]. - The steel trading business experienced a significant revenue decline of 62.5% compared to the previous year due to a challenging market environment[8]. - The paint products segment generated revenue of approximately HKD 713,330,000, accounting for 88.3% of total revenue, with a year-on-year increase of 15.6%[64]. - The property investment segment recorded revenue of approximately HKD 22,520,000, with a significant increase in segment profit to approximately HKD 267,430,000 from HKD 106,990,000 last year[65]. - The steel trading segment reported revenue of HKD 72,080,000, a decrease of 62.5% year-on-year, but achieved a segment profit of approximately HKD 6,730,000 compared to a loss of HKD 6,670,000 last year[66]. Market and Sales Performance - The Chinese market accounted for 89.5% of the total revenue of China Paint Group in 2019, down from 92.4% in 2018[15]. - In 2019, the total sales volume of paint and coatings in China increased by 38.3%, compared to a decline of 9.5% in 2018[16]. - Sales revenue of industrial paint and coatings, construction paint and coatings, and general paint and coatings increased by 2.5%, 43.5%, and 1.5% respectively for the year ending December 31, 2019[19]. - Sales to the Central China region increased by 38.6% due to the company becoming a registered supplier for property developers[22]. - Sales to Hong Kong customers increased significantly by 60.4%, driven by an improved product mix and expanded distribution network[25]. Investment and Property Management - The investment property portfolio held by the company as of December 31, 2019, consisted of 14 properties, with a total floor area of 264,180 square feet, compared to 367,187 square feet in 2018[32]. - The total market value of the investment properties as of December 31, 2019, was approximately HKD 851,340,000, an increase of 6.4% from HKD 799,980,000 in 2018[36]. - The average occupancy rate decreased to 76.9% in 2019 from 80.3% in 2018, mainly due to the termination of lease agreements without renewals[36]. - Rental income for 2019 was approximately HKD 27,800,000, slightly down from HKD 28,040,000 in 2018[36]. - The company completed the sale of the Sai Kung property and the acquisition of the Wanchai property on May 31, 2019, recording a sale gain of approximately HKD 490,410,000[39]. - The company plans to enhance its commercial and residential property portfolio to increase recurring income and cash flow for long-term investment purposes[39]. - The company has proposed to build a columbarium in Yuen Long, Hong Kong, with a maximum of 20,000 niches, subject to various planning conditions[40]. Corporate Governance - The board of directors is committed to best corporate governance practices and has established a nomination committee to enhance governance[94]. - The board held regular meetings to discuss overall strategy, operational performance, and financial matters, with attendance records documented[102]. - The group has implemented measures to ensure compliance with corporate governance codes, although some exceptions exist regarding the appointment of non-executive directors[94]. - The group has a clear separation of roles between the chairman and the managing director to ensure effective governance[95]. - The board of directors has adopted a diversity policy to enhance board efficiency, considering factors such as gender, age, cultural background, and professional experience[105]. - The audit committee held two meetings during the year, with all members attending both sessions, ensuring thorough review of financial statements and compliance[112]. - The remuneration committee approved a discretionary bonus for an executive director after reviewing the remuneration policy and performance[113]. - The nomination committee was established on July 11, 2019, and recommended the appointment of two independent non-executive directors, considering diversity criteria[116]. - Each director is required to undergo training to understand their responsibilities and the company's operations, with various training categories attended throughout the year[108]. - The company emphasizes the importance of independent directors, with the audit committee primarily composed of independent non-executive directors[111]. Environmental and Social Responsibility - The group has established a comprehensive environmental policy aimed at reducing emissions and improving energy efficiency[146]. - The management has implemented various energy-saving measures to minimize energy consumption and reduce greenhouse gas emissions[147]. - The group strictly complies with environmental protection laws and regulations in both mainland China and Hong Kong[147]. - The group emphasizes the importance of resource management and promotes a culture of resource conservation among employees[149]. - The group has developed a risk management system to address environmental, social, and governance risks[140]. - The importance matrix highlights key areas of focus, including labor rights, community service, and environmental protection[144]. - The group implemented energy-saving measures, focusing on reducing electricity consumption from office lighting and appliances[150]. - The company aims to enhance employee environmental awareness and reduce carbon emissions as part of its sustainable development strategy[174]. - The company is committed to community contributions and has been actively involved in charitable activities to promote sustainable community development[174]. Risk Management - The group faces increasing competition in its core markets of Hong Kong and mainland China, which poses a market risk of losing market share[85]. - Operational risks are managed through standard operating procedures and regular assessments by management to identify and mitigate risks[86]. - The board is responsible for maintaining an effective risk management and internal control system to enhance operational efficiency and ensure the accuracy of financial statements[117]. - The external auditor's fees for 2019 amounted to HKD 6,301,000, with HKD 4,790,000 for audit services and HKD 1,511,000 for non-audit services[124]. - The internal audit system monitors the overall financial status and aims to prevent significant asset losses or misappropriations[118]. Employee Management - The number of employees decreased to 817 from 886 in the previous year, with total employee costs of approximately HKD 153,030,000 compared to HKD 166,440,000 last year[80]. - The group maintains a five-day workweek to enhance work-life balance for employees, fostering a supportive work environment[160]. - The group emphasizes employee health and safety, implementing comprehensive measures to prevent illness and injury in the workplace[164]. - The group encourages continuous learning and development for employees, ensuring they possess the necessary skills and knowledge[163]. - The group has not reported any significant violations related to employment, health, safety, or labor standards during the reporting period[164].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 365,202,000, an increase of 20.5% compared to HKD 302,907,000 in the same period of 2018[9] - Gross profit for the same period was HKD 90,355,000, up 28.9% from HKD 70,098,000 year-on-year[9] - The net profit for the six months ended June 30, 2019, was HKD 428,083,000, a significant recovery from a loss of HKD 4,303,000 in the previous year[9] - Basic and diluted earnings per share increased to HKD 23.12 compared to HKD 0.74 in the same period of 2018[9] - Other income and gains surged to HKD 494,709,000 compared to HKD 5,626,000 in the same period last year[9] - The company reported a profit of HKD 440,062,000 for the six months ended June 30, 2019, compared to a loss of HKD 11,979,000 in the previous period[17] - The total comprehensive income for the period was HKD 426,660,000, a significant recovery from a loss of HKD 12,086,000 in the prior period[17] - The company reported a pre-tax profit of HKD 429,034,000 for the six months ended June 30, 2019, compared to a pre-tax loss of HKD 3,468,000 in the same period last year[60] - The pre-tax profit for the group for the six months ended June 30, 2019, was HKD 440,062,000, a significant increase from HKD 14,045,000 in the same period of 2018[73] Assets and Liabilities - Total non-current assets as of June 30, 2019, amounted to HKD 1,457,982,000, an increase from HKD 1,343,677,000 at the end of 2018[13] - Cash and cash equivalents increased to HKD 568,106,000 from HKD 295,866,000 at the end of 2018[13] - The total liabilities decreased to HKD 491,652,000 from HKD 627,236,000 in the previous year[13] - As of June 30, 2019, the total equity of the company reached HKD 2,043,708,000, an increase from HKD 1,636,085,000 as of December 31, 2018, representing a growth of approximately 25%[15] - Non-current liabilities decreased from HKD 33,866,000 to HKD 24,284,000, a reduction of about 28.5%[15] - The company's reserves increased significantly from HKD 1,300,346,000 to HKD 1,720,055,000, marking an increase of approximately 32.2%[15] - The total assets as of June 30, 2019, amounted to HKD 2,559,644,000, up from HKD 2,297,187,000 at the end of 2018, reflecting a growth of 11.4%[58] - The total liabilities as of June 30, 2019, were HKD 515,936,000, a decrease from HKD 661,102,000 at the end of 2018, indicating a reduction of 21.9%[58] Cash Flow - Operating cash flow for the six months ended June 30, 2019, was HKD 21,210 thousand, a significant improvement from a cash outflow of HKD 126,594 thousand in the same period of 2018[26] - Net cash flow from investing activities was HKD 325,540 thousand for the six months ended June 30, 2019, compared to a cash outflow of HKD 98,116 thousand in the previous year[28] - The company reported a net cash flow from financing activities of HKD (74,584) thousand for the six months ended June 30, 2019, down from HKD 80,420 thousand in 2018[28] - The company experienced a net increase in cash and cash equivalents of HKD 272,166 thousand for the six months ended June 30, 2019, compared to a decrease of HKD 144,290 thousand in the same period of 2018[28] - The company had a total of HKD 197,983 thousand in cash and bank balances as of June 30, 2019, compared to HKD 178,649 thousand in the previous year[28] Investment and Acquisitions - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[8] - The company completed the acquisition of 50% of the equity of North Sea Tinplate Co., Ltd. for HKD 1.00 on July 24, 2019, making it a wholly-owned subsidiary[116] - The company plans to acquire all issued shares of Xunma International Investment Limited for HKD 183,000,000, subject to certain adjustments[117] - The group acquired investment properties worth HKD 530,000,000 through the acquisition of a subsidiary during the reporting period[77] - The group plans to enhance its commercial and residential property portfolio to increase recurring income and cash flow for long-term investment purposes[137] Dividends and Shareholder Information - The company declared a final dividend of HKD 19,037,000 for the year ended December 31, 2018[17] - The group did not declare an interim dividend for the six months ended June 30, 2019, compared to no interim dividend declared for the same period in 2018[75] - The company has decided not to declare an interim dividend for the six months ending June 30, 2019, consistent with the previous year[167] - As of June 30, 2019, the company’s director holds 498,053,620 shares, representing 26.16% of the total issued shares[169] Market and Industry Insights - The average growth rate of the paint and coating industry in mainland China for the first half of 2019 was 5.8%, down from 6.1% in the same period of 2018[122] - Total sales volume of paint and coating products in mainland China increased by 14.4% in the first half of 2019 compared to the same period in 2018[122] - The company aims to benefit from the Guangdong-Hong Kong-Macao Greater Bay Area initiative, targeting key cities like Shenzhen and Zhongshan for business development[165] Compliance and Governance - The company has complied with the corporate governance code as per the listing rules, with the exception of certain provisions regarding the appointment of non-executive directors[177] - A nomination committee was established on July 11, 2019, chaired by Mr. Hu Kuangzu, with members including Mr. Zhuang Zhikun and Mr. Zhang Xiaojing[177] - The company has adopted a code of conduct for directors' securities transactions, confirming compliance with the required standards[178] - Ongoing derivative litigation against certain directors of the company is still in progress, with the company listed as a nominal defendant[179]

Financial Performance - For the year ended December 31, 2018, the company's loss attributable to shareholders was approximately HKD 25,090,000, a decrease of HKD 62,610,000 compared to a profit of HKD 37,520,000 for the year ended December 31, 2017[9]. - The company's revenue for the year was approximately HKD 831,940,000, representing a decrease of 32.3% compared to the previous year[9]. - Gross profit decreased by approximately HKD 169,020,000, with a reduction of 48.6% compared to the previous year[9]. - 中漆集团的分类亏损约为157,150,000港元，较2017年大幅减少约178,800,000港元[26]. - The company recorded a loss attributable to shareholders of approximately HKD 25,090,000, compared to a profit of approximately HKD 37,520,000 in the previous year[67]. - Revenue for the year was approximately HKD 831,940,000, a decrease of about 32.3% compared to the previous year[67]. - Gross profit for the year was approximately HKD 178,450,000, down about 48.6% year-on-year, with a gross margin decrease from 28.3% to 21.5%[67]. - The group reported a loss of HKD 60,288,000 for the year, compared to a profit of HKD 46,918,000 in the previous year, indicating a significant decline in performance[187]. - The group’s operating loss for the year was HKD 75,564,000, compared to an operating profit of HKD 55,039,000 in the previous year[187]. Market Conditions - The company anticipates greater downward pressure on China's economy in 2019, with the IMF predicting a GDP growth rate of approximately 6.2%[10]. - The domestic retail wood coating market demand weakened, primarily due to a decrease in completed residential units and commercial properties, impacting the demand for interior decoration paint and coating products[15]. - 中漆集团在中国内地及香港的分销商销售减少，影响了年内的销量和盈利能力[18]. - 由于不利的宏观经济环境，中漆集团的收入显著减少，导致毛利显著下降[23]. - The company aims to increase its market share in the domestic market of China amidst the challenging economic environment and trade tensions[62]. Cost Management - 中漆集团的原材料成本占收入的整体百分比由60.4%增加至65.6%，上升5.2个百分点[19]. - 2018年中漆集团的毛利率下降6.4个百分点至24.5%，主要由于原材料价格上涨和固定制造费用增加[20]. - The company implemented strict cost control measures starting from Q2 2018 to stabilize business performance and restore profitability, focusing on reducing fixed manufacturing costs and administrative expenses[27]. - The company raised prices for most paint and coating products twice in the second half of 2018 to offset rising costs, indicating a need for further price increases in 2019 if raw material prices rise significantly again[29]. Investment Strategy - The company will continue to invest in steel product trading and property investment to diversify and expand its investment portfolio[12]. - The company holds a portfolio of 13 investment properties as of December 31, 2018, with a total floor area of 367,187 square feet, generating rental income of approximately HKD 22.37 million, down from HKD 33.72 million the previous year[36]. - The total market value of the company's investment properties increased by approximately 17.0% to about HKD 799.98 million as of December 31, 2018, primarily due to an increase in fair value gains[37]. - The company strategically holds selected investment properties for stable rental income and capital appreciation while also selling some properties to fund business operations and expansion plans[38]. - The group has acquired five residential properties in Zhongshan, China for approximately RMB 4,380,000, with plans to lease them for rental income[59]. - The group has also acquired ten parking spaces in Qingpu District, Shanghai for RMB 2,800,000, intending to lease them for long-term investment[60]. Corporate Governance - The board consists of three independent non-executive directors, all of whom are confirmed to be independent according to the listing rules[101]. - The board held regular meetings, with all directors attending 100% of the meetings, demonstrating strong governance and engagement[101]. - The audit committee, composed of three non-executive directors, held two meetings to review financial statements and ensure compliance with accounting standards[107]. - The company has adopted a board diversity policy, emphasizing the importance of diverse perspectives in enhancing board effectiveness[103]. - The company is committed to maintaining high standards of corporate governance, with regular reviews of its practices and compliance with regulatory requirements[105]. Environmental and Social Responsibility - The ESG report outlines the group's commitment to sustainable development and environmental protection, aiming to minimize pollution and protect the ecological environment[128]. - The group has implemented various energy-saving measures to reduce carbon emissions from office operations, focusing on energy efficiency and resource conservation[139][142]. - The group emphasizes stakeholder engagement, maintaining close communication with government, shareholders, employees, customers, suppliers, and the community to align sustainability goals[133]. - The group has not been involved in any significant legal or regulatory violations related to environmental protection during the reporting period[148]. - The group aims to build effective and efficient green supply chains by collaborating with suppliers who have a good compliance record and social responsibility[159]. Employee Management - The employee count decreased to 886 as of December 31, 2018, down from 1,039 the previous year, with total employee costs amounting to HKD 166,440,000[84]. - The group offers competitive compensation packages and regularly reviews salary levels across different employee tiers[153]. - Employees participate in a five-day work week, allowing more time for family and social activities, along with various benefits such as medical insurance and holiday bonuses[153]. - The group has implemented a long-term talent training strategy to enhance employee skills and knowledge, ensuring effective execution of their roles[154]. - The group maintains a smoke-free work environment and has established comprehensive health and safety measures for employees[155].