香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：718） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 末 期 業 績 公 告 太和控股有限公司（「本公司」）董事局（「董事局」或「董事」）宣佈本公司及其附屬 公司（統稱為「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合 末期業績連同截至二零二一年十二月三十一日止年度之比較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 4 客戶合約 119,759 288,004 租賃 39,980 21,085 淨投資（虧損）╱收益 6 (512) 977 ...

Revenue Performance - The revenue for the six months ended June 30, 2022, was approximately HK$94.8 million, representing a significant increase of 415.2% compared to HK$18.4 million for the same period in 2021[11]. - Revenue for the six months ended June 30, 2022, was HK$94,863,000, a significant increase of 391% compared to HK$19,306,000 in the same period of 2021[126]. - Total segment revenue for the six months ended June 30, 2022, was HK$94,765,000, with property investment contributing HK$33,731,000 and flooring materials trading contributing HK$56,414,000[178]. - Revenue generated from the Shopping Mall Businesses in the PRC was approximately HK$28.0 million, primarily from rental income and property management services[29][31]. - Revenue from flooring materials trading was HK$56,414,000, with no prior year comparison provided, indicating a strong performance in this segment[170]. - Revenue from property management and related services was HK$13,056,000, up from HK$6,338,000, reflecting a growth of 106.8%[170]. - Revenue from medical equipment sales decreased to HK$4,620,000 from HK$7,952,000, a decline of 42.9% year-over-year[170]. Financial Losses - The Group recorded a loss before tax of approximately HK$321.9 million, an increase of 586.4% from the loss of HK$46.9 million in the prior year, primarily due to a decrease in fair value of investment properties and increased finance costs[11]. - Loss for the period was HK$272,469,000, compared to a loss of HK$56,186,000 in the previous year, reflecting a substantial increase in losses[126]. - The Group's overall segment results showed a loss of approximately HK$302.6 million, an increase of approximately 1,050.6% compared to a loss of approximately HK$26.3 million in the same period last year[35][36]. - The segment results showed a total loss of HK$305,223,000, with property investment segment reporting a loss of HK$302,563,000 and medical equipment trading segment reporting a loss of HK$2,373,000[178]. - The Group's accumulated losses reached HK$1,702,198,000 as of June 30, 2022, highlighting financial challenges[144]. Investment Properties - The fair value of investment properties in the PRC decreased by approximately HK$222.9 million due to the ongoing impact of the COVID-19 pandemic[11]. - The Group's UK Investment Properties were valued at approximately HK$611.2 million as of June 30, 2022, with revenue of approximately HK$5.8 million, representing a 5,700% increase compared to the previous year[30][32]. - The Group completed the acquisition of three shopping malls in Anyang, Jinzhou, and Guangzhou in 2021, enhancing its shopping mall network and geographical coverage[23][24]. - The gross floor area of the Anyang Shopping Mall is approximately 25,310 sq.m., Jinzhou Shopping Mall is approximately 40,765 sq.m., and Guangzhou Shopping Mall is approximately 89,415 sq.m.[26][28]. Financial Position - The Group's consolidated net asset as of June 30, 2022 was approximately HK$1,357.5 million, a decrease of approximately HK$355.7 million from HK$1,713.2 million as at 31 December 2021[48]. - As at 30 June 2022, the Group's bank balances and cash were approximately HK$263.2 million, with current liabilities of approximately HK$2,339.5 million[49]. - The net debt of the Group was approximately HK$1,554.9 million as at 30 June 2022, compared to negative net debt of approximately HK$1,655.4 million as at 31 December 2021[51]. - The total equity of the Group was approximately HK$1,357.5 million as of June 30, 2022, down from HK$1,713.2 million as of December 31, 2021[54]. - The Group's total borrowings were approximately HK$1,818.1 million as of June 30, 2022, a decrease from HK$1,910.8 million as of December 31, 2021[53]. Business Strategy and Future Plans - The Group anticipates focusing on the shopping mall businesses in China and flooring materials trading as dual sources of revenue going forward[70]. - The Group plans to enhance mall facilities to cater to consumer demand for premium food and beverage and dynamic entertainment[72]. - Guangzhou Shopping Mall has introduced a fitness center and expanded dining area, aiming to attract more young consumers and develop a purchasing center for garment merchandisers from regions including Southeast Asia, the Middle East, and South America[78]. - Jinzhou Shopping Mall plans to renovate its middle section into a spacious underground walking path, expected to be completed next year, transforming it into the only underground integrated commercial walking path in Jinzhou[79]. - Anyang Shopping Mall introduced an ice rink and bistro in the first half of the year, targeting to create a social networking platform for the youth, with plans for interior renovations in the second half of the year[80]. Market Conditions - Global economic recovery faces challenges due to COVID-19 mutations, geopolitical tensions, and rising global interest rates, but market and consumer confidence is gradually improving[85]. - The gross domestic product of China for the first half of 2022 was approximately RMB 56 trillion, representing a growth of 2.5% compared to the previous year[69]. Corporate Governance - The Company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[110]. - Mr. Wang Hongfang has served as both Chairman and CEO since January 31, 2022[111]. - Mr. Zheng Yuchun's remuneration was adjusted to HK$150,000 per month effective August 1, 2022[112]. Shareholder Information - As of June 30, 2022, the total number of issued shares was 5,250,019,852[100]. - Yellowbird Fund indirectly owns 74.99% of the issued shares through Songbird SG[100]. - No individual or corporation, other than directors, held 5% or more interests in the shares as of June 30, 2022[101]. - The Share Option Scheme allows for the issuance of up to 125,091,243 shares, representing 10% of the issued shares as of September 17, 2015[106]. - No share options were granted under the Share Option Scheme during the reporting period[107].

Financial Performance - The company reported a consolidated profit of $X million for the year 2021, representing a Y% increase compared to the previous year[6]. - The company provided a revenue guidance of $B million for the upcoming fiscal year, indicating a growth target of C%[6]. - The company reported a cash flow of $K million, reflecting a strong liquidity position[6]. - The board of directors has approved a dividend of $L per share, representing a M% increase from the previous year[6]. - The revenue for Tai United Holdings Limited for the year ended 31 December 2021 was approximately HK$309.1 million, representing a significant increase of 1,400.5% compared to HK$20.6 million for the year ended 31 December 2020[17]. - The Group recorded a loss before tax of approximately HK$470.1 million, an increase of 1,184.4% from a loss of HK$36.6 million in the previous year[17]. - The fair value of investment properties decreased by approximately HK$270.9 million due to the ongoing impact of the COVID-19 pandemic[17]. - The net investment income on securities turned from a loss of approximately HK$1.8 million in 2020 to a profit of approximately HK$1.0 million in 2021, reflecting the recovery of the global economy[17]. - The loss attributable to owners of the Company increased from approximately HK$26.8 million in 2020 to approximately HK$440.8 million this year[19]. - The Group's consolidated net asset as of December 31, 2021, was approximately HK$1,713.2 million, a decrease of approximately HK$393.5 million from approximately HK$2,106.7 million as of December 31, 2020[44]. Market Expansion and Acquisitions - New product launches contributed to a D% increase in sales, with the introduction of E new products in the market[6]. - Market expansion efforts have led to a G% increase in market share in the Asia-Pacific region[6]. - The company has completed the acquisition of H, which is expected to add $I million in annual revenue[6]. - The Group completed the acquisition of three shopping malls in Anyang, Jinzhou, and Guangzhou in 2021, aiming to diversify its business strategy and expand its shopping mall network across central, northeastern, and southern regions of China[27]. - The Group acquired the entire issued share capital of Sky Build Limited for a cash consideration of RMB554 million, which holds a 100% equity interest in Jinzhou Jiachi Public Facilities Management Co., Ltd.[21]. - The Group also acquired the entire issued share capital of Superb Power Enterprises Limited, which holds a 100% equity interest in Guangzhou Rongzhi Public Facilities Investment Co., Ltd., with a settlement amount of RMB1,437 million[21]. - The completion of acquisitions for Jinzhou Target Group and Guangzhou Target Group occurred on April 23, 2021, consolidating their financial performances into the Group's accounts[23]. - The acquisition of Anyang Target Group was completed in November 2021 for a base consideration of RMB 370 million, which includes the Anyang Shopping Mall as an investment property[23]. Operational Strategies and Business Segments - The Group's business segments include properties investment, flooring and medical equipment trading, mining and exploitation of natural resources, and financial services and asset management[74]. - The Group aims to integrate resources from the three newly acquired shopping malls to create a unique shopping experience that combines shopping, entertainment, and dining[9]. - The revenue model for the shopping malls primarily derives from rental income and property management services, focusing on leasing to retailers and wholesalers[25]. - The Group plans to provide a platform for young entrepreneurs in the Greater Bay Area to launch their businesses in the Guangzhou shopping mall, aiming to attract innovative products and services[9]. - The Group's diversified strategy is seen as a key remedy for low operational levels prior to the acquisitions, aiming to turn around its financial performance[27]. Human Resources and Corporate Governance - The Group had a total of 193 employees as of December 31, 2021, from 36 as of December 31, 2020, with approximately 14.5% located in Hong Kong[48]. - The Group's human resources management policy includes recruitment, promotion, and remuneration practices aligned with market standards and industry practices[99]. - Employee benefits include MPF, medical insurance, and paid holidays, ensuring competitive compensation packages[99]. - The Group emphasizes a fair recruitment process, requiring objective assessments and interviews for all candidates[101]. - The Group has established systematic training regimens and training systems to support staff's continuous development, including induction training, on-the-job training, and external training[108]. - The Company has established an Audit Committee to oversee financial reporting processes and ensure effective risk management and internal control systems[199]. - The Board is collectively responsible for promoting the success of the Company by directing and supervising its affairs[135]. - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the year ended December 31, 2021[135]. Environmental, Social, and Governance (ESG) Initiatives - The ESG Report was prepared in accordance with the Environmental, Social and Governance Reporting Guide as set out in the Listing Rules[73]. - Significant ESG matters include waste treatment and carbon emissions, energy and water consumption, and employee benefits and equal opportunities policies[76]. - The Group aims to create long-term value for stakeholders through sustainable development in its corporate planning and operations[75]. - The Group's commitment to preventing child labor and forced labor is part of its labor standards policies[76]. - The Group's environmental policies aim to minimize adverse impacts on the environment and promote responsible business practices[86]. - The Group achieved a 2.33% reduction in total energy consumption during the Reporting Period[92]. - The Group promotes environmental awareness among employees through various initiatives aimed at energy saving and waste reduction[86]. - The Group is committed to sustainable development and corporate social responsibility, focusing on emissions reduction measures in daily operations[84]. Future Outlook and Strategic Plans - Global growth is expected to decelerate from 5.5% in 2021 to 4.1% in 2022, with China's growth easing from an estimated 8% to 5.1%[50]. - The Group anticipates benefiting from China's recovery from the COVID-19 pandemic, with expectations of improved operational scale and asset quality as the global economy strengthens[54]. - The introduction of the third child policy in China presents new business opportunities for the Group's shopping malls[50]. - The Company plans to enhance the shopping experience by incorporating trendy promotion themes and online-offline marketing elements targeting young generations[50]. - The Group aims to make Anyang Shopping Mall a popular "check-in" location on social media by enhancing its facilities and offerings[52].

Revenue Growth - Tai United Holdings Limited reported a significant increase in revenue, achieving a total of HKD 500 million, representing a 25% growth compared to the previous year[12]. - The revenue for Tai United Holdings Limited for the six months ended 30 June 2021 was approximately HK$18.4 million, representing a significant increase of 183.1% compared to approximately HK$6.5 million for the same period in 2020[13]. - For the six months ended June 30, 2021, total revenue was HK$19,306,000, a significant increase from HK$5,285,000 in the same period of 2020, representing a growth of approximately 265%[108]. - Revenue from contracts with customers was HK$14,290,000, up from HK$6,412,000 in 2020, indicating a year-over-year increase of about 123%[108]. - Revenue from Medical Equipment Trading increased by 25.0% to approximately HK$8.0 million, up from approximately HK$6.4 million in 1H2020[30]. User Base and Market Expansion - The company’s user base expanded to 1.2 million active users, marking a 15% increase year-over-year[12]. - Tai United Holdings Limited plans to expand its market presence in Southeast Asia, targeting a 20% market share within the next two years[12]. - Future outlook indicates a projected revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion strategies[12]. Acquisitions and Strategic Partnerships - The company has completed the acquisition of a local competitor, which is expected to contribute an additional HKD 100 million in annual revenue[12]. - The company completed the acquisition of Jinzhou Target Group and Guangzhou Target Group on April 23, 2021, consolidating their financial performances into the Group's accounts[21]. - The Group completed the acquisition of shopping mall businesses in the PRC, which contributed to increased operating expenses, with employee benefits expenses rising to approximately HK$17.7 million and other operating expenses to approximately HK$28.1 million[14]. - The acquisitions are expected to provide stable operating profit and cash flow, enhancing the operational level of the Group[22]. - The Group has established strategic partnerships with three major retailers to enhance distribution channels[12]. Financial Performance and Losses - The Group recorded a loss before tax of approximately HK$46.9 million during the Reporting Period, a decrease of 31.6% from the loss of HK$68.6 million in the first half of 2020[13]. - The loss attributable to owners of the Company increased from approximately HK$55.1 million for 1H2020 to approximately HK$56.1 million during the Reporting Period[14]. - The company reported a loss for the period of HK$56,186,000, slightly higher than the loss of HK$55,345,000 in the same period last year[108]. - The Group experienced reduced revenue and deteriorated operations due to decreased demand caused by COVID-19 lockdown restrictions[22]. Cash Flow and Liquidity - Tai United Holdings Limited's cash flow from operations increased by 50%, reaching HKD 150 million, providing a strong liquidity position for future investments[12]. - The Group's bank balances and cash increased to approximately HK$746.1 million as of June 30, 2021, compared to approximately HK$496.9 million as of December 31, 2020[46]. - The net cash used in operating activities was HK$134,019,000, compared to HK$56,320,000 in the same period of 2020[122]. - The company reported a net cash inflow from new bank loans raised amounting to HK$5,250,000 during the period[123]. Impairment and Expenses - A reversal in impairment losses of approximately HK$25.0 million was recorded during the Reporting Period, compared to recognized impairment losses of approximately HK$13.7 million in 1H2020[14]. - Impairment losses on mining rights decreased to approximately HK$42.6 million from approximately HK$52.9 million in 1H2020[14]. - Employee benefits expenses increased to HK$17,672,000 from HK$12,033,000, reflecting a rise of approximately 47%[108]. - Other operating expenses rose to HK$28,123,000 from HK$12,243,000, representing an increase of about 130%[108]. Share Capital and Dividends - As of June 30, 2021, the total number of issued shares was 5,250,019,852[78]. - The Board does not recommend the distribution of an interim dividend for the reporting period[56]. - The Company reported a basic loss per share of HK$1.07, slightly higher than HK$1.05 in the prior year[109]. Economic Outlook and Strategy - Global economic growth is projected at 6% in July 2021, with stronger-than-expected recovery across various regions[58]. - The economic growth of Mainland China is forecasted at 8.1% for the year, significantly higher than the global average, supporting further business opportunities[62]. - The Group plans to adopt a diversified growth strategy focusing on property investment in shopping malls in China to offset decreased business activity from previous prudent investment approaches[59]. - The diversification strategy aims to mitigate risks associated with market, liquidity, and credit in a highly uncertain international environment[64].

Financial Performance - The loss attributable to owners of the Company reduced significantly from approximately HK$246.4 million last year to approximately HK$26.8 million this year, exceeding expectations under the deteriorating economic environment[11] - The financial performance of the Group showed improvement despite the challenges posed by the pandemic and economic slowdown[11] - For the year ended December 31, 2020, the Group's revenue was approximately HK$20.6 million, a decrease of 22.3% compared to HK$26.5 million in the previous year[18] - The net investment losses increased by 200% to approximately HK$1.8 million from approximately HK$0.6 million due to the pandemic's impact on various businesses[18] - The loss before tax decreased significantly by 81.6% to approximately HK$162.7 million compared to the previous year[18] - Other income rose from approximately HK$51.4 million to approximately HK$85.9 million, mainly due to increased interest income from a subsidiary's disposal receivable[18] - A reversal of impairment losses of approximately HK$27.1 million was recorded this year, compared to an impairment loss of approximately HK$39.6 million last year[18] - Other operating expenses decreased by 39.8% from approximately HK$55.5 million to approximately HK$33.4 million due to cost reduction measures[20] - The changes in fair value of investment properties decreased by 44.3% from approximately HK$72.5 million to approximately HK$40.4 million amid the pandemic[20] - Impairment losses on mining rights decreased by 46.0% from approximately HK$170.8 million to approximately HK$92.2 million due to adverse factors from the pandemic[20] - Finance costs decreased by 41.8% from approximately HK$15.3 million to approximately HK$8.9 million due to reduced borrowings[20] - The segment loss for property investment was approximately HK$55.9 million, a significant decrease of 47.8% compared to HK$107.1 million from the previous year, attributed to cost reduction measures[22] - Revenue from medical equipment trading increased by 2.5% to approximately HK$20.5 million, despite a segment loss of approximately HK$1.8 million, which increased by 12.5% from the previous year's loss of HK$1.6 million[26] - The Group recorded a segment loss of approximately HK$5.5 million for the year ended 31 December 2020, compared to a segment profit of approximately HK$9.4 million in the previous year[43] - The Group recorded no revenue from commodity trading business for the years ended 31 December 2019 and 2020, resulting in a loss of approximately HK$0.3 million in 2020 compared to a loss of approximately HK$7.2 million in 2019[47] Business Strategy and Development - The Company adjusted its business development strategy from a conservative stance to a proactive approach, focusing on inorganic growth prospects due to improved market sentiments in Q4 2020[12] - The Company successfully entered into agreements for the substantial acquisition of shopping mall businesses in Jinzhou and Guangzhou, with the deal expected to be completed in the first half of 2021[12] - The property investment business of the Group will expand into the new area of commercial shopping malls as a result of the acquisitions[12] - The Company aims to leverage its resources for future growth opportunities in the changing business climate[12] - The Group has entered into conditional share purchase agreements for the acquisitions of shopping mall businesses in Jinzhou and Guangzhou, aiming to diversify within the property investment segment[24] - The acquisitions of shopping mall businesses are expected to provide a stable source of rental income and management fees for the enlarged Group[25] - The Group's strategy includes leveraging existing knowledge and expertise in managing different property types to supervise new shopping mall businesses post-acquisition[25] - The Group has experienced diminishing revenue across various business segments and is focusing on a diversified business strategy through acquisitions to enhance operations and financial performance[63] Market Conditions and Economic Outlook - Market sentiments improved due to eased uncertainties from the US presidential election, vaccine announcements, and fiscal stimulus packages from central banks[12] - The global economy is projected to grow by 5.5% in 2021, driven by effective COVID-19 vaccine deployment and additional policy support in major economies[59] - The Chinese economy grew by 2.3% last year, with a notable 6.5% growth in the fourth quarter, while projected growth is expected to reach 9% in 2021 and moderate to 5.4% in 2022 according to Morgan Stanley[63] - The UK economy is expected to take over two years to recover to pre-COVID-19 levels, while residential property has outperformed during the pandemic due to fiscal support measures[65] - The demand for tungsten is expected to rise significantly as economies recover, although the current health crisis and vaccine rollout progress remain uncertain[41] Corporate Governance and Management - A new director with extensive professional experience was appointed to enhance the diversity of perspectives on the Board[12] - The Board decided to cease the commodity trading business due to extreme volatility in oil prices and a significant decrease in demand, which made the business commercially unattractive[47] - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the year ended December 31, 2020, except for certain disclosed deviations[140] - The CEO is responsible for the day-to-day operations of the Group and is accountable to the Board for all aspects of corporate performance[140] - The Board of Directors consists of four executive directors and three independent non-executive directors, meeting the requirements under Rule 3.10 of the Listing Rules[142] - The Company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance during the reporting year[140] - The Board is committed to maintaining statutory and regulatory standards with an emphasis on transparency, independence, accountability, and responsibility[138] - The Group has established a comprehensive complaint channel and investigation mechanism for reporting improper behavior[133] Environmental, Social, and Governance (ESG) Initiatives - The Group adheres to sustainable development principles in its corporate planning and operations, aiming to create long-term value for stakeholders[79] - The ESG Report is prepared in accordance with the Environmental, Social and Governance Reporting Guide, informing stakeholders about the Group's ESG policies and performance[79] - The total amount of waste generated from daily operations in FY2020 was only 0.253 tonnes, including 0.245 tonnes of non-hazardous waste and 0.008 tonnes of hazardous waste[87] - The Group emphasizes environmental protection and adheres to laws and regulations related to environmental protection, aiming to minimize operational impact on the environment[98] - The Group's operations did not generate any exhaust gas or sewage discharge during the reporting period[83] - The Group achieved a total energy consumption reduction of 6.66% during the Reporting Period through various energy-saving policies and measures[93] - The Group has implemented measures to promote environmental awareness among employees, including the installation of energy-efficient equipment and regular training on electricity-saving practices[93] Human Resources and Employee Management - The Group's human resources management policy regulates recruitment, promotion, dismissal, working hours, holidays, remuneration packages, and benefits to attract and retain talent[100] - Employee remuneration is determined based on market standards, industry practices, and individual qualifications, with bonuses distributed according to profitability[100] - The Group provides a comprehensive benefits plan for employees, including MPF, medical insurance, and various paid leave types[100] - The Group promotes a suitable work-life balance for employees by organizing corporate and social activities to enhance corporate culture[102] - The Group emphasizes the importance of occupational health and safety, providing detailed fire escape guidelines and requiring participation in fire drills[105] Financial Position and Capital Management - As of December 31, 2020, the Group's consolidated net assets were approximately HK$2,106.7 million, an increase of approximately HK$37.8 million compared to HK$2,068.9 million as of December 31, 2019[53] - The Group's bank balances and cash as of December 31, 2020, were approximately HK$496.9 million, down from approximately HK$560.2 million as of December 31, 2019[55] - The current ratio improved to 3.85 times as of December 31, 2020, compared to 2.98 times as of December 31, 2019[55] - Total debt financing was approximately HK$235.6 million as of December 31, 2020, down from approximately HK$281.5 million as of December 31, 2019[55] - The Group's negative net debt was approximately HK$261.2 million as of December 31, 2020, compared to negative net debt of approximately HK$157.8 million as of December 31, 2019[55] Risk Management and Internal Controls - The Group's risk management and compliance department conducted an independent appraisal of the adequacy and effectiveness of its risk management and internal control systems during the year[177] - The internal control model developed by the Group follows the COSO principles and consists of five elements: control environment, risk assessment, control, information and communication, and monitoring[177] - The Board is responsible for establishing and maintaining a sound risk management and internal control system, which is designed to manage risks within acceptable levels[177] - The Audit Committee is responsible for ensuring effective risk management and internal control systems within the Group[163] Shareholder Engagement and Communication - The annual general meeting serves as a valuable avenue for direct dialogue between the Board and Shareholders[185] - Interim and annual reports are dispatched to Shareholders in a timely manner to ensure effective communication[185] - Shareholders are given at least twenty clear business days' notice for annual general meetings and at least ten clear business days' notice for other general meetings[187] - A valid requisition for a special general meeting must be signed by the concerned shareholders and state the meeting's purpose[187]

Financial Performance - Revenue for the six months ended June 30, 2020, was approximately HK$6.5 million, down by 59.4% from approximately HK$16.0 million for the same period in 2019[9]. - Loss before tax for the reporting period increased to approximately HK$59.6 million, representing an increase of over 662.2% compared to the previous corresponding period[9]. - Loss attributable to owners of the Company increased from approximately HK$4.9 million in the first half of 2019 to approximately HK$55.1 million in the reporting period[9]. - For the six months ended June 30, 2020, the Group's revenue was HK$5,285,000, a decrease of 67.1% compared to HK$16,023,000 in the same period of 2019[76]. - The Group reported a loss before tax of HK$68,564,000, compared to a loss of HK$9,033,000 for the same period in 2019[76]. - The loss for the period was HK$55,345,000, significantly higher than the loss of HK$4,775,000 in the prior year, representing an increase of 1,157.5%[77]. - The total comprehensive expense for the period was HK$98,614,000, compared to HK$7,924,000 in the same period of 2019[77]. Impairment and Losses - Impairment loss on mining rights increased by approximately HK$52.9 million, while the previous period recorded no such loss[9]. - Net impairment losses under the expected credit loss model amounted to approximately HK$13.7 million, compared to a net reversal of approximately HK$11.2 million in the prior period[9]. - Other losses increased by approximately HK$12.8 million due to net foreign exchange losses from the depreciation of Renminbi, compared to other gains of approximately HK$6.5 million in the previous period[9]. - The Group's distressed debt asset management business recorded a loss of approximately HK$1.2 million, a 77.4% decrease compared to a loss of approximately HK$5.3 million in the same period last year[14]. - The Group recognized an impairment loss of approximately HK$52,876,000 related to mining rights during the interim period, compared to HK$0 for the same period in 2019[173]. Revenue Segments - The Group recorded no segment revenue in financial services due to uncertain market conditions and adopted a prudent investment approach during the reporting period[12]. - Revenue from medical equipment trading decreased by 47.1% to approximately HK$6.4 million, compared to approximately HK$12.1 million in the same period last year, resulting in a segment loss of HK$1.0 million[15]. - The segment loss for property investment was HK$6.7 million, a decrease of 33.0% compared to HK$10.0 million in the corresponding period last year, attributed to cost reduction measures[18]. - The medical equipment trading segment generated revenue of HK$6,412,000, while lease revenue was only HK$47,000[116]. - The company ceased its commodity trading business due to decreased demand and has renamed the "Commodity and medical equipment trading" segment to "Medical equipment trading" segment[111]. Financial Position - The Group's consolidated net assets as of June 30, 2020, were approximately HK$1,970.3 million, a decrease of about HK$98.6 million from HK$2,068.9 million as of December 31, 2019[35]. - The total equity attributable to the owners of the Company was approximately HK$1,967.5 million as of June 30, 2020, compared to approximately HK$2,066.2 million as of December 31, 2019[35]. - As of June 30, 2020, the Group's bank balances and cash were approximately HK$410.7 million, down from approximately HK$560.2 million as of December 31, 2019[38]. - Current assets were approximately HK$1,580.1 million, a decrease from approximately HK$1,638.1 million as of December 31, 2019, while current liabilities were approximately HK$495.0 million, down from approximately HK$549.1 million[38]. - The current ratio improved to 3.19 times as of June 30, 2020, compared to 2.98 times as of December 31, 2019[38]. Economic Outlook - The International Monetary Fund projected China's GDP growth at 1.0% for 2020, significantly lower than the previous year's 6.1%[14]. - The Group projects a global economic growth decline of negative 4.9% in 2020 due to the COVID-19 crisis, as estimated by the IMF[43]. - The Group maintains a positive long-term outlook on global economic development, anticipating potential vaccine production and resolution of international conflicts[43]. Strategic Initiatives - The Group obtained a money lenders license on August 11, 2020, and plans to develop its money lending business by providing secured or unsecured loans to creditworthy clients[12]. - The Group is actively seeking potential investors and strategic mining partnerships to minimize exploration risks and enhance commercial viability[24]. - The Group is considering a diversification strategy to offset decreased business activity levels, with new financial-related businesses like money lending being developed organically[43]. Governance and Compliance - The company has complied with all code provisions of the Corporate Governance Code, except for certain deviations disclosed[59]. - The chairman position of the Board remains vacant, and the company is in the process of identifying a suitable candidate[60]. - Certain Board meetings were convened with less than fourteen days' notice to enable timely decision-making on urgent matters[62]. Cash Flow and Financing - The net cash used in investing activities for the six months ended June 30, 2020, was HK$ (85,737,000), a significant decrease from HK$ 167,691,000 in 2019[89]. - The net cash used in financing activities was HK$ (4,859,000) for the six months ended June 30, 2020, compared to HK$ (1,076,819,000) in the previous year, showing a reduction in cash outflow[89]. - The company paid interest of HK$ (4,765,000) in the first half of 2020, down from HK$ (8,166,000) in 2019, reflecting a decrease in interest expenses[89]. Share Capital and Equity - The Group has 5,250,019,852 shares issued at HK$0.05 each, with no share movement since the last year ended[35]. - The total number of shares available for issue under the Share Option Scheme remains at 525,001,985 shares, which is 10% of the total issued shares as of June 5, 2017[55]. - The company has a share option scheme valid for ten years, aimed at incentivizing and retaining high-caliber participants[55].

Financial Performance - The consolidated net loss for the year ended December 31, 2019, reduced by 55.4% to HK$246.8 million, exceeding management expectations amid challenging market conditions [9]. - For the year ended 31 December 2019, the Group's revenue was approximately HK$26.5 million, down by 99.4% from approximately HK$4,314.2 million in the previous year [15]. - The net investment losses for the Group were approximately HK$0.6 million, a decrease of 99.7% compared to approximately HK$186.3 million in the prior year [15]. - The loss attributable to owners of the Company decreased significantly from approximately HK$553.2 million to approximately HK$246.4 million [19]. - The basic loss per share for the year ended 31 December 2019 narrowed to 4.69 HK cents, compared to a loss per share of 10.54 HK cents in 2018 [19]. - The Group recorded a profit of approximately HK$23.6 million in the financial services segment, down from approximately HK$85.7 million in the previous year [28]. - The Group's cost reduction program has significantly reduced various costs, including employee benefits and operating expenses [19]. Investment Strategy - The Company adopted a prudent investment approach in response to global uncertainties, including political issues in the US and economic conflicts between major economies [10]. - The Group's management has adopted a more prudent approach in identifying investment opportunities since 2018 due to unfavorable macroeconomic conditions [17]. - The Directors believe maintaining financial soundness will provide a buffer against potential crises and prepare the Group for emerging opportunities [18]. - The Group aims to maximize returns to shareholders through strategic reshuffling of investment portfolios and realization of capital gains [30]. - Future investment opportunities may arise during economic downturns, potentially allowing the Group to acquire distressed assets at deep discounts [32]. - The Group's investment strategy will be reassessed in light of the unpredictable oil price environment and unprecedented demand decline for oil and petroleum products [37]. Market Conditions - The Hong Kong economy contracted by 1.2% in 2019, marking the first annual decline since 2009 [17]. - The macro-economic environment has become increasingly uncertain due to the ongoing trade dispute between the US and China [32]. - The distressed debt assets market in China grew significantly, with outstanding non-performing loans reaching RMB2.41 trillion by the end of Q4 2019 [30]. - The extreme volatility of oil prices in 2019 led to a lack of commercially attractive trading opportunities, prompting the Group to refrain from engaging in commodity trading activities [37]. Business Segments - The Group's business segments for FY2019 include financial services and asset management, commodity and medical equipment trading, property investment, and mining and exploitation of natural resources [91]. - The Group is considering further developing the medical equipment trading business to meet the demands of hospitals and clinics in China due to a shortage of medical equipment supplies caused by COVID-19 [39]. - The Group is actively seeking property investment and development opportunities to strengthen revenue streams in the property investment segment [39]. - The Group holds four mining rights licenses for three tungsten projects in Mongolia, which are currently at the exploration stage with no active mining operations during the Reporting Period [95]. Corporate Governance - The Board is committed to maintaining high standards of corporate governance, emphasizing transparency, independence, accountability, and responsibility [176]. - The Company complied with all applicable code provisions of the Corporate Governance Code throughout the year ended December 31, 2019, with some disclosed deviations [177]. - The roles of the Chairman and CEO are separated, with the Chairman responsible for leadership and strategy formulation, while the CEO manages day-to-day operations [186][188]. - The Board currently consists of three executive directors and three independent non-executive directors, meeting the requirements under Rule 3.10 of the Listing Rules [194]. Environmental, Social, and Governance (ESG) Initiatives - The Group is committed to sustainable development and has implemented monitoring and emission reduction measures in its operations to minimize environmental impact [94]. - The Group's ESG Report outlines significant ESG matters, including employee benefits, health and safety, and sustainable supply chain management [92]. - The Group emphasizes the prevention of corruption and fraud as part of its governance framework [92]. - The Group's commitment to corporate social responsibility includes contributions to society and community investment initiatives [92]. Employee Management - The Group's human resources management policy includes recruitment, promotion, and remuneration practices aligned with market standards and industry practices [119]. - Employee benefits include retirement schemes, medical insurance, and various paid leave options, ensuring competitive compensation [120]. - The Group promotes a fair and equitable working environment, prohibiting discrimination in recruitment and employment practices [123]. - The Group emphasizes the importance of employee training and has established systematic training regimens, including induction, on-the-job, and external training [138]. Risk Management - The management will closely monitor various risks, including the US presidential election and global trade disputes, to adjust business or investment plans accordingly [74]. - The Group has implemented a fraud risk assessment mechanism to identify and evaluate fraud risks regularly [171]. - A comprehensive complaint and investigation mechanism is in place, allowing employees, suppliers, and customers to report misconduct [171].

Revenue and Financial Performance - Revenue for the six months ended June 30, 2019, was approximately HK$16 million, down by 99.6% compared to approximately HK$4,009.5 million for the same period last year[10]. - Total revenue for the six months ended June 30, 2019, was HK$16,023,000, a significant decrease from HK$4,009,512,000 in the same period of 2018[62]. - Goods and services revenue was HK$12,109,000, down from HK$3,896,995,000 year-over-year[62]. - Loss before tax for the period was HK$9,033,000, compared to a loss of HK$68,459,000 in the prior year[62]. - Loss for the period was HK$4,775,000, a decrease from HK$92,258,000 in the same period of 2018[62]. - Other income increased to HK$35,529,000 from HK$6,017,000 year-over-year[62]. - Total comprehensive expense for the period was HK$7,924,000, compared to HK$108,637,000 in the previous year[64]. - Basic loss per share was HK$0.09, an improvement from HK$1.76 in the same period of 2018[64]. Business Segments and Operations - The business segments have been regrouped into (i) financial services and asset management; (ii) commodity and medical equipment trading; (iii) property investment; and (iv) mining and exploitation of natural resources[10]. - The Group recorded approximately HK$23.5 million profit in the financial services business for the period under review, compared to approximately HK$67.9 million profit in the same period last year[10]. - Revenue from medical equipment trading decreased by 29.3% to approximately HK$12.1 million compared to approximately HK$17.1 million in the corresponding period last year, while maintaining a steady profit of approximately HK$0.3 million[16]. - The revenue from the property investment segment for the six months ended June 30, 2019, was approximately HK$3.9 million, representing a substantial decrease of 92% compared to approximately HK$48.9 million in the same period last year[17]. - The Group's financial services business was primarily driven by effective interest income from a loan note investment by the Fund, which has been consolidated into the Group's financial statements over the last two years[10]. Cost Management and Strategy - Successful implementation of a cost reduction program significantly reduced various costs, including employee benefits expenses and other operating expenses[10]. - The management adopted a more prudent approach in identifying investment opportunities due to prevailing economic instability[10]. - The Group's strategy reflects a focus on effective investment methods amid trade friction[10]. - The management's discussion indicates a shift in business strategy to adapt to changing market conditions[10]. - The Group has adopted a more defensive investing stance since 2018 to cope with market uncertainties and volatility[33]. Assets and Liabilities - As of June 30, 2019, the carrying value of the investment portfolio was approximately HK$11.2 million, a significant decrease from approximately HK$2,140.5 million as of June 30, 2018[14]. - The Group's consolidated net asset was approximately HK$2,315.1 million, a decrease of approximately HK$1,057.9 million compared to HK$3,373 million as of December 31, 2018[24]. - The total equity attributable to owners of the Company was approximately HK$2,311.9 million as of June 30, 2019, down from approximately HK$3,370 million as of December 31, 2018[24]. - The Group's bank balances and cash were approximately HK$287.9 million as of June 30, 2019, compared to approximately HK$1,168 million as of December 31, 2018[24]. - The total debt financing of the Group was approximately HK$426.2 million as of June 30, 2019, slightly down from approximately HK$426.6 million as of December 31, 2018[24]. Distressed Assets and Market Conditions - The Group held no distressed debt assets at fair value at the end of the review period, down from approximately HK$10.2 million at the end of the previous year due to the disposal of all remaining distressed debt assets[11]. - The supply of distressed debt assets increased significantly in the first half of 2019 due to a slowdown in economic growth influenced by macro-factors in China[12]. - Increased competition from new investors in the distressed asset market in China has contributed to the slowdown in the Group's acquisition pace[12]. - The Group aims to avoid direct competition with larger corporations by focusing on specific subdivisions of the distressed asset market to leverage its core capabilities[12]. Corporate Governance and Compliance - The company complied with all provisions of the Corporate Governance Code during the six months ended 30 June 2019, except for certain disclosed deviations[47]. - All Directors confirmed full compliance with the Model Code for Securities Transactions during the six months ended June 30, 2019[40]. - The company emphasized transparency, independence, accountability, and responsibility in its corporate governance practices[47]. - The company will strive to meet the requirements of the Corporate Governance Code in the future[47]. Shareholder Information and Dividends - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2019, similar to the previous year[32]. - A second special dividend of 20 HK cents per share, totaling approximately HK$1,050 million, was paid on June 10, 2019[32]. - The Company had a total of 5,250,019,852 shares issued, with Satinu Resources Group Ltd. holding 3,937,234,889 shares, representing approximately 74.99% of the issued share capital[43]. Mining Operations and Exploration - The Group holds four mining right licenses for three tungsten projects in Mongolia, which are still in the exploration phase[20]. - Management has engaged qualified experts to conduct further exploration works, aiming to produce an updated resource estimation technical report compliant with the JORC Code[20]. - The second phase of exploitation work for mining rights in Khovd Gol and Tsunkheg is expected to be completed in 2020, with potential adjustments to recoverable amounts[170]. - The Group is actively seeking potential investors and strategic mining partnerships to minimize exploration risks[20]. Accounting Policies and Financial Reporting - The Group has applied HKFRS 16 for the first time, which supersedes HKAS 17, impacting the accounting for leases[87]. - The application of new and amended HKFRSs has had no material impact on the Group's financial performance for the current and prior periods[87]. - The Group's accounting policies have been updated to reflect the changes resulting from the application of HKFRS 16[89]. - The Group recognized lease liabilities of HK$19,014,000 and right-of-use assets equal to the lease liabilities upon the application of HKFRS 16 on January 1, 2019[102].

Financial Performance - The Group maintained a healthy financial position despite a challenging year, with a focus on suppressing impacts from market volatility and reshuffling the asset portfolio by disposing of high-risk assets [8]. - The Group's financial resilience was enhanced, allowing for sufficient internal resources to be reserved for future investment opportunities [8]. - The Group's revenue from financial services for the year ended 31 December 2018 was HK$134 million, a decrease of 43% compared to the previous year, with over 98% of this revenue derived from effective interest income from loan note investments [10]. - The distressed debt assets held by the Group decreased to HK$10 million at the end of the year, representing a 98% decrease from HK$447 million at the end of the previous year [11]. - The net investment losses from Distressed Debt Asset Management amounted to HK$13 million, a decline from net investment gains of HK$81 million in 2017, resulting in a loss of HK$31 million for the year compared to a gain of HK$56 million the previous year [11]. - The change in fair value of financial assets held-for-trading resulted in a loss of HK$173 million, leading to substantial losses of HK$234 million from trading securities, compared to a gain of HK$117 million in the prior year [11]. - The Group's overall performance in financial services remained stable, recording a profit of HK$86 million, unchanged from the previous year [10]. - Revenue from commodity trading decreased by 62% to HK$4,045 million for the year ended 31 December 2018, down from HK$10,617 million in the previous year [16]. - Medical equipment trading revenue increased by 82% to HK$40 million for the year ended 31 December 2018, compared to the previous year [16]. - Property investment revenue decreased by 27% to HK$95 million for the year ended 31 December 2018, down from HK$130 million in the previous year [17]. - A loss of HK$125 million was recognized due to fair value changes in the Group's investment properties in the UK for the year ended 31 December 2018 [17]. Asset Management and Investments - The Group's investment portfolios were reshuffled to maximize returns to shareholders and improve risk management, with a focus on distressed debt assets [11]. - The Group adopted a prudent approach to maintain investments by decreasing the size of investment portfolios amid global uncertainties [11]. - The Group entered into a sale and purchase agreement with Solis Capital Limited for the proposed disposal of shares of The Hongkong and Shanghai Hotels, Limited [12]. - The Group's strategy includes actively tapping into the value gap of distressed debt assets in China to maximize overall revenues [10]. - The Group holds four mining right licenses for three tungsten projects in Mongolia [17]. - The acquisition cost for the mining rights was HK$940 million, satisfied through cash payment, promissory notes, and convertible preference shares [17]. - The impairment losses of the mining rights amounted to approximately HK$110 million for the year ended 31 December 2018, compared to HK$0 in 2017 [18]. - The average grades of the Mining Rights decreased, leading to a lower valuation, with specific grades reported as 1.1% and 2.7% for licenses 5518A & 11027A as of 31 December 2018 [24]. - The valuation method remained unchanged, utilizing the discounted cash flow method under the income approach for both 2018 and 2017 [21]. - The adopted price for 65% tungsten concentrate was US$14,030 per ton as of 31 December 2018, an increase from US$12,778 per ton in 2017 [27]. - The price growth rate for the valuation was 0.6% for 2018, down from 2.7% compound annual growth rate from 2006 [27]. - The discount rate applied in the valuation was 22.0% for 2018, compared to 21.5% in 2017 [27]. - The Group is in the process of identifying suitable independent third parties for potential cooperative arrangements to exploit the Mining Rights [27]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the year ended 31 December 2018, with certain disclosed deviations [97]. - The Board currently comprises three executive Directors and three independent non-executive Directors, ensuring compliance with the Listing Rules regarding board composition [107]. - The Company is in the process of identifying a suitable candidate for the Chairman position and will inform shareholders upon appointment [106]. - All Directors confirmed full compliance with the Model Code for Securities Transactions during the year ended 31 December 2018, with no incidents of non-compliance noted [98][99]. - The Board is responsible for major decisions including approval of policies, strategies, budgets, and financial information [101]. - The Company’s independent non-executive Directors meet the requirements under Rule 3.10 of the Listing Rules, with at least one possessing appropriate professional qualifications [107]. - Each independent non-executive Director has made an annual confirmation of independence, and the Company considers all INEDs to be independent [107]. - The Company’s governance practices emphasize transparency, independence, accountability, and responsibility, with regular reviews to meet shareholder expectations [96]. - The Board reserves the right to make decisions on all major matters, including internal control and risk management systems [101]. - The Board held a total of 30 meetings during the year ended December 31, 2018, ensuring adequate governance and oversight [111]. Risk Management - The Board is responsible for establishing a sound risk management and internal control system, which is designed to manage risks within acceptable levels rather than eliminate them entirely [139]. - The risk management and compliance department prepared a risk management framework, including risk identification, analysis, control, and reporting procedures [140]. - For the year ended 31 December 2018, the Group identified major risks relevant to its businesses and began implementing controls to mitigate those risks [143]. - The Audit Committee reviewed the effectiveness of the Group's material internal controls, ensuring compliance with applicable laws and regulations [144]. - The internal control system is designed to safeguard assets against unauthorized use and ensure reliable financial information is maintained [144]. - The Group's risk assessment system is deemed effective and adequate, with periodic reviews planned to enhance its operation [143]. - No material internal control deficiencies were discovered during the sampling check on major compliance control activities conducted in the second half of the year [143]. - The internal auditors conducted an independent appraisal of the adequacy and effectiveness of the risk management and internal control systems for the year ended December 31, 2018 [140]. Employee Engagement and Development - The Group emphasizes talent acquisition and retention through a multi-channel approach and incentive mechanisms to ensure long-term competitiveness [66]. - Employee remuneration is aligned with market standards, industry practices, and individual qualifications, with bonuses distributed based on profitability [66]. - The Group has established an annual performance appraisal system to regularly review employee performance and remuneration policies, aiming to motivate contributions and assist in career development [67]. - The recruitment policy is based on fairness and merit, requiring candidates to undergo objective assessments to ensure alignment with the Group's development needs [68]. - The Group prohibits any form of discrimination in the workplace and has established a reporting mechanism for biased treatment [68]. - Various employee engagement activities were organized to enhance team spirit and corporate culture, including birthday parties and annual dinners [69]. - The Group prioritizes occupational health and safety, providing guidelines for fire safety and encouraging reporting of unsafe conditions [74]. - The Group has established systematic training regimens including induction training, on-the-job training, and external training to support continuous staff development [77]. - The Group initiated special education allowances in FY2018 to encourage staff to pursue further studies related to their current roles or long-term career development [77]. Environmental, Social, and Governance (ESG) Initiatives - The Group focuses on sustainable development to create long-term value for stakeholders [52]. - The ESG Report covers financial services, asset management, commodity trading, medical equipment trading, and property investment, which are the major operating segments for FY2018 [53]. - Significant ESG matters include waste treatment, carbon emissions, energy and water consumption, and environmental impact management [54]. - The total carbon emission of the Group in FY2018 was 73.74 tonnes, with a carbon emission density of 0.042 tonnes of carbon dioxide per square meter of office space [57]. - The Group generated a total of 0.725 tonnes of waste during FY2018, including 0.719 tonnes of non-hazardous waste and 0.006 tonnes of hazardous waste [56]. - Approximately 0.28 tonnes of paper were saved in FY2018 due to the implementation of paperless practices and electronic documentation [56]. - The Group recycled 0.8 tonnes of waste paper during the Reporting Period through various environmental recycling policies [56]. - The Group has implemented green office initiatives to reduce waste and promote environmental protection policies [56]. - The Group has purchased additional video conferencing equipment to reduce greenhouse gas emissions from travel [57]. - The Group achieved a total energy consumption reduction of 5.4% during the Reporting Period through various energy-saving policies and measures [60]. Shareholder Engagement - The Company has adopted a dividend policy, with the payout ratio varying from year to year, and no assurance of specific amounts for any given period [156]. - Shareholders holding at least one-tenth of the paid-up capital can request a special general meeting, which must be convened within 2 months of the requisition [155]. - The Company has established procedures for shareholders to direct enquiries to the Board, including a dedicated email address [156]. - The Group's reserves available for distribution to equity holders as of December 31, 2018 amounted to approximately HK$3,107 million, down from approximately HK$4,498 million in 2017 [164]. - A special dividend of 28.58 HK cents per ordinary share was paid for the year ended 31 December 2018, with a total dividend of 48.58 HK cents for the year, compared to 1.81 HK cents in 2017 [163]. - The Company has recommended a second special dividend of 20 HK cents per ordinary share, subject to shareholder approval [163].