股份代號 : 720 (於百慕達註冊成立之有限公司) 年 報 2024 ANNUAL REPORT 2024 Stock Code: 720 (Incorporated in Bermuda with limited liability) AUTO ITALIA HOLDINGS LIMITED 意達利控股有限公司 ANNUAL REPORT 2024 年 報 公司資料 2 主席報告 4 管理層討論及分析 5 董事簡歷 14 董事會報告 18 企業管治報告 37 環境、社會及管治報告 56 獨立核數師報告 85 綜合損益表 91 綜合損益及其他全面收益表 92 綜合財務狀況表 93 綜合權益變動表 95 綜合現金流量表 96 綜合財務報表附註 98 五年財務摘要 175 詞彙 176 目 錄 公司資料 董事 執行董事 莊天龍先生 （執行主席兼行政總裁） 李少峰先生 連鎮豪先生 授權代表 莊天龍先生 鄺燕萍女士 非執行董事 杭青莉女士（於2024 年11 月26日獲委任） 獨立非執行董事 江啟銓先生 杜振偉先生 沈仲平博士 董事委員會 審核委員會 江啟銓先生 （主席） 杜振偉先生 沈仲平博士 薪酬委員會 杜振偉 ...

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 31,322,000, a decrease of 34% from HKD 47,504,000 in 2023[4] - The company reported a loss before tax of HKD 97,631,000, compared to a loss of HKD 206,798,000 in the previous year, indicating an improvement of 53%[4] - The basic and diluted loss per share for the year was HKD 1.93, down from HKD 3.39 in 2023, reflecting a 43% reduction in loss per share[5] - The company reported a significant reduction in other losses, which decreased to HKD 55,423,000 from HKD 174,885,000, a 68% improvement[4] - The loss attributable to shareholders for the year was HKD 102.1 million, an improvement from HKD 179.3 million in 2023, primarily due to unrealized fair value losses of HKD 76.1 million from an investment in an associate[46] Revenue and Income - Rental income decreased to HKD 26,640,000 from HKD 31,665,000, representing a decline of 16%[13] - Group revenue for the year ended December 31, 2024, was HKD 31,322 million, a decrease of 34% from HKD 47,504 million in 2023[18] - Rental income from investment properties was HKD 26,640 million in 2024, down from HKD 31,665 million in 2023, reflecting an 18% decline[23] - The automotive segment recorded revenue of HKD 4.7 million for the year ended December 31, 2024, down from HKD 15.8 million in 2023, primarily due to macroeconomic challenges and increased market competition[38] Assets and Liabilities - The company’s non-current assets increased to HKD 735,812,000 from HKD 572,292,000, marking a growth of 29%[7] - The total equity attributable to owners of the company rose to HKD 212,587,000, up from HKD 164,625,000, an increase of 29%[8] - Total assets as of December 31, 2024, amounted to HKD 797,211 million, while total liabilities were HKD 529,698 million, resulting in a net asset position[20] - Total trade receivables as of December 31, 2024, amounted to HKD 17.1 million, an increase from HKD 12.4 million in 2023[11] - Total trade payables as of December 31, 2024, were HKD 35.2 million, up from HKD 18.3 million in 2023, with other payables including refundable customer deposits related to the terminated automotive business[31] Cash and Financial Costs - The company’s cash and cash equivalents decreased to HKD 18,116,000 from HKD 21,373,000, a decline of 15%[7] - Financial costs increased to HKD 33,781 million in 2024 from HKD 23,567 million in 2023, marking a 43% rise[22] - Interest expenses for the year amounted to HKD 22 million, with total outstanding borrowings from three other loans at HKD 361.5 million as of December 31, 2024[51] - The group had cash and cash equivalents of HKD 21.4 million as of December 31, 2024, down from HKD 26.9 million in 2023, with 74.5% in GBP, 23.6% in HKD, and 1.7% in RMB[48] Investments and Fair Value - The fair value loss on investments in an associate company was HKD 76,142 million in 2024, down from HKD 120,591 million in 2023, indicating a 37% reduction[22] - The fair value gain on investment properties for 2024 was HKD 26,163 million, compared to a loss of HKD 52,601 million in 2023, indicating a significant turnaround[25] - The fair value of the investment in CBL decreased to HKD 40.4 million as of December 31, 2024, down from HKD 117.1 million in 2023, representing 5.1% of the total assets of the group, compared to 18.6% in 2023[45] - The fair value change of investment properties resulted in an unrealized gain of HKD 26.2 million, contrasting with a fair value loss of HKD 52.6 million in 2023[60] Corporate Governance and Compliance - The company has maintained compliance with all corporate governance code provisions, with a noted deviation regarding the roles of the Executive Chairman and CEO[76] - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2024, discussing risk management and internal controls[78] - The company has adopted a standard code for securities trading by directors, confirming compliance for the year ending December 31, 2024[77] Future Plans and Strategic Initiatives - The company plans to expand its CDMO business by focusing on mature European markets to increase revenue and profit margins from biopharmaceuticals and biosimilars[66] - The management team is actively exploring opportunities to optimize financial conditions and reduce financial cost pressures amid geopolitical tensions and economic uncertainty[67] - The sales cooperation agreements established during the European expansion efforts are expected to significantly boost sales in 2025[62] Miscellaneous - The company did not declare or propose any dividends for the year ended December 31, 2024, consistent with 2023[36] - The board does not recommend the payment of a final dividend for the year ending December 31, 2024[73] - There were no significant acquisitions or disposals by subsidiaries, associates, or joint ventures for the year ending December 31, 2024[72] - The annual general meeting is scheduled for May 16, 2025[79]

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company is transitioning into a manufacturer of new energy commercial vehicles, aiming to penetrate the European new energy commercial vehicle market [10] - The acquisition of 100% equity in Handerson Automotive Technology for HKD 166 million is a significant step in expanding the company's automotive business from sales and after-sales services to full-scale OEM manufacturing [2][10] - The company leverages a light-asset model to enhance efficiency and reduce costs, allowing for quicker development cycles and lower initial investments [4][5] Company Background - The company primarily engages in investment holding, with its main businesses being automotive distribution and property investment [1] - In 2023, the company reported total revenue of HKD 47.504 million, with automotive business contributing HKD 15.839 million (33%) and property investment generating HKD 31.665 million (67%) [1] Business Model and Operations - Handerson utilizes China's automotive production capacity and supply chain advantages, focusing on the development and manufacturing of new energy logistics vehicles [3] - The company has established strategic partnerships with Dongfeng Motor and JAC Motors to enhance its R&D capabilities [3] - The light-asset model allows the company to significantly reduce development time and upfront investment, exemplified by the eBOLD logistics vehicle, which took only one year from project initiation to delivery [4] Market Opportunity - The European market for new energy commercial vehicles is still in its early stages, with only 7% of new registered vans being electric as of 2023 [6][9] - The report highlights a growing demand for new energy vehicles in Europe, driven by regulatory changes aimed at reducing carbon emissions [6][9] - The company has received orders for 800 vehicles in 2024 and plans to increase this to 2,000 vehicles per month in 2025 [5] Competitive Landscape - The report notes that the penetration rate of new energy commercial vehicles in Europe is low compared to traditional diesel vehicles, presenting a significant growth opportunity [7][9] - The company faces challenges from established European manufacturers and must invest in technology and brand recognition to capture a larger market share [10]

Financial Performance - Rental income from the property investment segment decreased to HKD 13.2 million, down from HKD 14.0 million in 2023, primarily due to a tenant terminating their lease early[4] - Revenue from the automotive segment fell to HKD 2.4 million, compared to HKD 11.7 million in 2023, reflecting a challenging macroeconomic environment and increased competition[4] - Gross profit decreased by HKD 1.8 million to HKD 10.7 million, with a gross margin of 68.6%, up from 48.7% in 2023[5] - Other income for the six months ended June 30, 2024, was HKD 120,000, down from HKD 280,000 in 2023, mainly due to a decrease in commission income from the automotive segment[5] - The net loss attributable to the company's owners for the six months ended June 30, 2024, was HKD 76.9 million, compared to HKD 117.4 million in 2023[6] - Total revenue for the six months ended June 30, 2024, was HKD 15,668 thousand, a decrease of 39.1% compared to HKD 25,737 thousand for the same period in 2023[41] - Gross profit for the same period was HKD 10,746 thousand, down 14.2% from HKD 12,524 thousand in 2023[41] - The company reported a loss before tax of HKD 79,752 thousand, an improvement of 37.6% compared to a loss of HKD 128,025 thousand in the previous year[41] - The net loss for the period was HKD 79,613 thousand, compared to a net loss of HKD 127,704 thousand in 2023, reflecting a 37.6% reduction in losses[42] - Basic and diluted loss per share for the period was HKD 1.45, an improvement from HKD 2.22 in the same period last year[42] Financial Position - Total assets as of June 30, 2024, were HKD 502,362 thousand, down from HKD 572,292 thousand as of December 31, 2023[44] - Current liabilities increased to HKD 390,737 thousand from HKD 317,708 thousand at the end of 2023, indicating a rise in financial obligations[44] - Total liabilities decreased to HKD 162,732 thousand from HKD 310,831 thousand, reflecting a reduction of approximately 47.5%[46] - The company’s non-controlling interests decreased to HKD 43,423 thousand from HKD 46,658 thousand, a decline of approximately 7.5%[46] - The group’s total equity as of June 30, 2024, was HKD 350,000,000, with 17,500,000,000 shares issued and fully paid[84] Cash Flow and Financing - The company’s cash and cash equivalents were HKD 20,869 thousand as of June 30, 2024, slightly down from HKD 21,373 thousand at the end of 2023[44] - The company raised HKD 11,000 thousand in bank and other borrowings during the financing activities, compared to HKD 12,000 thousand in the same period last year[50] - The company reported a net cash outflow of HKD 6,690 thousand from financing activities, an improvement from HKD 11,069 thousand in the previous year[50] - The group has secured a one-year extension option for loans totaling HKD 255,558,000, with sufficient collateral from investment properties valued at HKD 379,537,000[51] - The group has access to undrawn committed borrowing facilities of HKD 34,000,000, which will be increased to HKD 64,000,000 following an agreement in August 2024[51] Investments and Assets - The group held an investment in Chime Biologics Limited valued at HKD 57 million, representing approximately 10.3% of total assets as of June 30, 2024[6] - The group recorded a net unrealized fair value loss of HKD 60.2 million on investments in an associate company[6] - The fair value loss on investment properties was HKD 2,963,000 for the six months ended June 30, 2024, compared to a loss of HKD 22,635,000 in the same period of 2023, showing a reduction of 87.8%[64] - The group’s investment in Chime Biologics Limited (CBL) was valued at HKD 56,996,000, down from HKD 117,122,000 as of December 31, 2023, reflecting a decrease of approximately 51.3% due to market conditions[74][75] Shareholder Information - As of June 30, 2024, the company has a total of 5,292,515,390 shares issued, with significant shareholdings including 2.11% by Mr. Zhuang Tianlong and 3.75% by Mr. Li Shaofeng[19][20] - Major shareholders include Gustavo International Limited and 鼎珮投資集團有限公司, each holding approximately 5.76% and 28.70% of the issued shares, respectively[21][22] - The company has a total of 111,891,000 shares held by Mr. Zhuang Tianlong, which includes 51,891,000 ordinary shares and 60,000,000 related shares under the share option plan[19][20] - The expired share option plan from May 28, 2012, remains effective for options granted prior to its expiration, allowing for the exercise of options until July 26, 2025[24] - As of June 30, 2024, there are 60,000,000 unexercised options available under the expired share option plan[24] Governance and Compliance - The company maintained compliance with the corporate governance code during the reporting period, with a noted deviation regarding the separation of roles between the chairman and CEO[28] - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and authority[29] - The audit committee is responsible for reviewing the effectiveness of audit procedures and the company's cash flow status[34] - The remuneration committee is tasked with determining the compensation of individual executive directors and senior management, reviewing the stock option plan annually[34] - The nomination committee is responsible for recommending candidates for board appointments based on their qualifications and capabilities[35] Market Conditions and Future Outlook - The macroeconomic environment remains challenging due to interest rate hikes and geopolitical tensions, prompting the company to explore potential opportunities, particularly in the automotive sector, to deliver long-term value to shareholders[17] - The company is committed to exploring new business opportunities and strategies to enhance shareholder value amidst economic uncertainties[17]

Financial Performance - For the six months ended June 30, 2024, the total revenue was HKD 2,425,000, a decrease of 81.7% compared to HKD 13,243,000 for the same period in 2023[1] - The gross profit for the period was HKD 15,668,000, down 38.9% from HKD 25,737,000 in the previous year[1] - The loss attributable to the company's owners was HKD 76,931,000, an improvement from a loss of HKD 117,400,000 in the same period last year, representing a 34.5% reduction[2] - The basic and diluted loss per share was HKD 1.45, compared to HKD 2.22 for the same period in 2023[2] - The total comprehensive loss for the period was HKD 80,925,000, down from HKD 121,538,000 in the previous year, indicating a 33.5% improvement[3] - The group experienced a pre-tax loss of HKD 79,752,000, which includes a fair value loss of HKD 60,212,000 from an investment in an associate[12] - The net loss attributable to the company's owners for the six months ended June 30, 2024, was HKD 76.9 million, compared to a loss of HKD 117.4 million in 2023, representing a 34.5% improvement[19] - Financial costs for the six months ended June 30, 2024, totaled HKD 16.5 million, an increase of 114% from HKD 7.7 million in 2023[17] Assets and Liabilities - As of June 30, 2024, non-current assets totaled HKD 502,362,000, a decrease from HKD 572,292,000 as of December 31, 2023[4] - Current liabilities increased to HKD 390,737,000 from HKD 317,708,000 at the end of 2023, reflecting a 22.9% rise[4] - The company's equity attributable to owners decreased to HKD 86,935,000 from HKD 164,625,000, a decline of 47.3%[5] - As of June 30, 2024, total assets amounted to HKD 553,469,000, with classified assets in the automotive segment at HKD 8,751,000 and property investment segment at HKD 444,166,000[14] - Total liabilities as of June 30, 2024, were HKD 423,111,000, with classified liabilities in the automotive segment at HKD 3,378,000 and property investment segment at HKD 274,931,000[14] - The debt-to-equity ratio increased from 186.9% to 308.4% due to unrealized fair value losses impacting total equity[40] Segment Performance - For the six months ended June 30, 2024, the group reported total revenue of HKD 15,668,000, with automotive segment revenue at HKD 2,425,000 and property investment revenue at HKD 13,243,000[12] - The automotive segment incurred a loss of HKD 2,818,000, while the property investment segment generated a profit of HKD 4,499,000, resulting in a consolidated profit of HKD 1,504,000[12] - The automotive segment recorded revenue of HKD 2.4 million for the first half of 2024, significantly down from HKD 11.7 million in 2023, due to challenging macroeconomic conditions and intense market competition[30] - The automotive segment reported a loss of HKD 3,640,000, while the property investment segment incurred a loss of HKD 14,448,000, leading to a consolidated loss of HKD 18,255,000[13] - Rental income from the property investment segment for the six months ended June 30, 2024, was HKD 13.2 million, a decrease of HKD 0.8 million compared to HKD 14 million in 2023[29] - The property investment segment generated rental income of HKD 1.1 million and HKD 12.1 million from properties in Hong Kong and Scotland, respectively, for the period, compared to HKD 1.1 million and HKD 12.9 million in 2023[49] Investments and Financing - The fair value loss recorded on an investment in an associate was HKD 60,212,000 during the period[8] - The company has plans to seek better financing options and may consider asset sales to strengthen its future liquidity and financial position[6] - The company has obtained other borrowings of HKD 11 million during the current interim period, with an interest rate of 9% and a maturity date of April 17, 2025[25] - The investment in Chime Biologics Limited (CBL) had a fair value of HKD 57 million, representing approximately 10.3% of the group's total assets[37] - CBL has ongoing contracts worth USD 69.5 million, a 30% increase from the previous year, and is negotiating potential contracts valued over USD 60 million[52] - CBL completed three batches of 2000L scale operations for a major client, paving the way for future large commercial orders[52] Corporate Governance and Compliance - The company did not declare or pay any dividends for the six months ended June 30, 2024, and has no plans to declare any dividends post-reporting period[21] - The board did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[54] - The company has maintained compliance with corporate governance codes, although there is a deviation regarding the roles of the chairman and CEO[56][57] - The interim results for the six months ended June 30, 2024, have not been audited but have been reviewed by the company's auditors[60] Market Conditions and Future Outlook - The macroeconomic environment remains challenging due to interest rate hikes and geopolitical tensions, prompting the company to explore potential business opportunities, particularly in the automotive sector[53] - The group plans to continue exploring opportunities in the financial investment and services segment[12] - The company has adopted a cautious approach to balance financing returns and risks amid recent market volatility, with no outstanding secured loans to customers as of June 30, 2024[51]

Financial Performance - The company reported a consolidated loss attributable to shareholders of approximately HKD 179.3 million for the reporting period, primarily due to unrealized fair value losses on investments in associates and investment properties [26]. - The company reported a loss attributable to shareholders of HKD 179.3 million for the year, compared to a loss of HKD 63.4 million in 2022, primarily due to unrealized fair value losses of HKD 120.6 million on an investment in an associate and HKD 52.6 million on investment properties [69]. - The net loss for the year 2023 was HKD 205,897,000, which is a substantial increase from the net loss of HKD 85,590,000 in 2022, reflecting a deterioration in financial performance [109]. - The group reported a loss before tax of HKD (206,798,000) for the year ended December 31, 2023, compared to a loss of HKD (86,134,000) in 2022, indicating a significant increase in losses [140]. - The group recorded an unrealized fair value loss of HKD 52.6 million on investment properties and HKD 120.6 million on investments in an associate during the reporting period [14]. Revenue and Profitability - Total revenue for 2023 reached HKD 47,504,000, a significant increase from HKD 29,479,000 in 2022, representing a growth of 60.9% [107]. - Gross profit increased by HKD 6.3 million to HKD 29 million, compared to HKD 22.7 million in 2022, mainly driven by the performance of the automotive segment [31]. - The overall gross margin decreased by 15.9 percentage points to 61.1% in the reporting period, compared to 77.0% in 2022 [67]. - The company reported a gross profit of HKD 29,035,000 for 2023, compared to HKD 22,701,000 in 2022, indicating a gross profit margin improvement [107]. - The automotive segment recorded revenue of HKD 15.8 million for the year ended December 31, 2023, compared to HKD 1.3 million in 2022 [42]. Expenses and Liabilities - Total sales and distribution costs, along with administrative expenses, amounted to HKD 37.8 million, representing 79.6% of revenue, up from 73.2% in 2022 [46]. - Financial costs increased to HKD 23.6 million in 2023 from HKD 12.3 million in 2022, primarily due to an increase in interest expenses on bank and other borrowings [47]. - The company’s administrative expenses rose to HKD 33,701,000 in 2023 from HKD 21,409,000 in 2022, reflecting increased operational costs [107]. - Non-current liabilities increased significantly to HKD 99,548,000 in 2023 from HKD 33,994,000 in 2022, indicating a rise in financial obligations [112]. - The debt-to-equity ratio increased from 95.4% in 2022 to 186.9% in 2023, reflecting a rise in total borrowings to HKD 394.9 million [50]. Cash Flow and Financial Position - The group’s cash and cash equivalents decreased to HKD 26.9 million as of December 31, 2023, from HKD 44.3 million in 2022 [50]. - The net cash used in operating activities was HKD (4,418,000) for the year, compared to a net cash inflow of HKD 1,623,000 in 2022, indicating a decline in operational cash flow [140]. - The group’s total liabilities increased to HKD 310,831,000 in 2023 from HKD 424,920,000 in 2022, indicating a reduction in overall financial leverage [112]. - As of December 31, 2023, the bank loan balance and accrued interest amounted to HKD 29.1 million, down from HKD 30.5 million in 2022 [73]. - The group believes it has sufficient working capital to meet its financial obligations due within 12 months from the date of approval of the consolidated financial statements [129]. Investments and Acquisitions - The company increased its stake in Dakota RE II Limited from approximately 54.98% to about 69.15% by acquiring additional shares, enhancing its investment property portfolio [11]. - The company completed the acquisition of Wuhan Junyi Automotive Sales Service Co., Ltd. on February 17, 2023, which will expand its Maserati dealership network in China [89]. - The group increased its ownership in Dakota RE II from 54.98% to 69.15% following the issuance of new shares to repay other borrowings [139]. - The group has accumulated pre-commercial contract amounts of USD 47.4 million with expectations to sign contracts exceeding USD 30 million in the near future [60]. Market and Operational Outlook - The company anticipates that 2024 will remain challenging due to rising interest rates and geopolitical tensions, but it is committed to exploring global opportunities, particularly in the automotive sector [27]. - The company continues to explore potential business opportunities, particularly in the automotive sector, to deliver long-term value growth for shareholders amid economic uncertainties [84]. - The company launched a series of marketing activities, including the grand opening of a new 4S store and the introduction of the Maserati GranTurismo Trofeo, resulting in a significant increase in showroom traffic by over 50% in the following month [7]. Employee and Social Responsibility - 100% of employees in Wuhan and 75% of employees in Hong Kong received appropriate training during the reporting period, with an overall training rate of 91% [193]. - The company emphasizes the importance of employee health and safety, implementing measures such as mandatory mask-wearing and providing hand sanitizers [187]. - The company has established policies to support employees' professional training, including exam leave and tuition reimbursement [193]. - No work-related fatalities or injuries occurred in the past four years, and there were no reported violations of occupational health and safety laws during the reporting period [190]. - The company regularly reviews its suppliers to ensure compliance with environmental, social, and governance standards, terminating relationships with those that do not meet requirements [196]. Compliance and Governance - The company strictly adheres to data privacy laws, including the Personal Information Protection Law of China and the Personal Data (Privacy) Ordinance in Hong Kong [200]. - The company has not reported any incidents of child labor or forced labor [194].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 47,504,000, compared to HKD 29,479,000 in 2022, representing a 60.9% increase[2] - The company reported a loss of HKD 205,897,000 for the year 2023, compared to a loss of HKD 85,590,000 in 2022, indicating a significant increase in losses[4] - The gross profit for 2023 was HKD 29,035,000, up from HKD 22,701,000 in 2022, marking a 28% increase[2] - The basic and diluted loss per share for 2023 was HKD 3.39, compared to HKD 1.20 in 2022, indicating a worsening loss per share[16] - The loss attributable to owners of the company for the year was HKD 179,285,000, compared to HKD 63,405,000 in 2022[38] - The group reported a loss before tax of HKD 85,715,000 for the year ended December 31, 2023[30] - The company reported a total loss of HKD 179,285,000 for 2023, compared to a loss of HKD 63,405,000 in 2022, indicating a deterioration in financial performance[56] Revenue Sources - Rental income increased to HKD 31,665,000 in 2023 from HKD 28,137,000 in 2022, reflecting an 8.9% growth[2] - The automotive segment generated revenue of HKD 12,536,000 in 2023, with no revenue reported in the previous year[45] - Rental income from property investment increased to HKD 31,665,000 in 2023, up from HKD 28,137,000 in 2022, marking a growth of about 9.1%[45] - The automotive segment generated revenue of HKD 15.8 million in 2023, a significant increase from HKD 1.3 million in 2022[89] Assets and Liabilities - The company's total assets decreased to HKD 572,292,000 in 2023 from HKD 719,022,000 in 2022, a decline of 20.4%[6] - The total assets of the group as of December 31, 2023, were HKD 782,262,000, with current liabilities totaling HKD 391,336,000[32] - The company’s liabilities totaled HKD 417,256,000 in 2023, an increase from HKD 291,406,000 in 2022, reflecting a rise in financial obligations[50] - The company has a net current liability of HKD 261,461,000 as of December 31, 2023, compared to HKD 294,102,000 in 2022, showing an improvement in current liabilities[18] Financing and Debt - The company plans to seek better financing options or consider asset disposals to strengthen future liquidity and financial position[11] - The company has a loan of HKD 257,487,000 that can be renewed after October 18, 2024, contingent on meeting certain financial ratios[10] - The group has an available undrawn committed borrowing facility of HKD 45,000,000 as of December 31, 2023[21] - The group has a term bank loan of HKD 28,675,000, secured by investment properties valued at HKD 57,250,000 as of December 31, 2023[40] - As of December 31, 2023, the group's total debt and equity ratio increased to 186.9%, up from 95.4% in 2022, with total borrowings amounting to HKD 394.9 million[97] Cash Flow and Liquidity - As of December 31, 2023, the group's net current liabilities amounted to HKD 261,461,000, with a net operating cash outflow of HKD 4,418,000[20] - The company’s cash and cash equivalents stood at HKD 21,373,000 as of December 31, 2023[50] - As of December 31, 2023, the group had cash and cash equivalents of HKD 26.9 million, down from HKD 44.3 million as of December 31, 2022[73] Corporate Governance and Compliance - The audit committee reviewed the audited consolidated financial statements for the year ended December 31, 2023, discussing risk management and internal controls[143] - The company has maintained compliance with all corporate governance codes during the year ended December 31, 2023, despite some deviations noted[169] - The company emphasizes the importance of a robust corporate governance structure and will review its framework as necessary[170] Strategic Plans and Developments - The company plans to expand its property investment segment, which has shown promising rental income growth, particularly in Scotland[65] - CBL continues to explore potential business opportunities, including automotive-related businesses, to create long-term value for shareholders[108] - The company plans to acquire 51% of Wuhan Junyi Automobile Sales Service Co., Ltd. for RMB 10.2 million[137] - The company completed the acquisition of Wuhan Junyi on February 17, 2023, making it a subsidiary, with its financial statements consolidated into the group[166] - The total consideration for the acquisition was HKD 960 million[179] Financial Reporting and Standards - The group has adopted new Hong Kong Financial Reporting Standards effective from January 1, 2023, which did not have a significant impact on the financial position and performance[42] - The company will publish its annual report for the year ended December 31, 2023, at an appropriate time[145] - The company’s auditor, Deloitte, has agreed to the figures presented in the preliminary announcement for the year ended December 31, 2023[164]

Financial Performance - For the six months ended June 30, 2023, the company reported a loss attributable to owners of the company of HKD 117,400,000, compared to a loss of HKD 109,947,000 for the same period in 2022, representing an increase in loss of approximately 4.1%[9] - The company reported a mid-term revenue from continuing operations of HKD 14,339,000 and a mid-term loss of HKD 4,368,000 if the acquisition of Wuhan Junyi had been completed on January 1, 2023[33] - Other income and losses resulted in a net loss of HKD 117.5 million, compared to a net loss of HKD 90.9 million in 2022, primarily due to unrealized fair value losses on investments[69] - The group reported an unrealized loss of HKD 22.6 million on investment properties, compared to a gain of HKD 1.7 million in 2022[84] - The group's loss attributable to owners for the six months ended June 30, 2023, was HKD 117.4 million, compared to HKD 109.9 million in 2022, primarily due to unrealized losses on investments[93] Revenue and Income - For the six months ended June 30, 2023, the property investment segment recorded rental income of HKD 14 million, a decrease from HKD 14.6 million in 2022, primarily due to the negative impact of GBP depreciation on rental income from Scotland[62] - The automotive segment generated revenue of HKD 11.7 million in the first half of 2023, reflecting the financial contribution from the acquisition of Wuhan Junyi Automobile Sales Service Co., Ltd. in February 2023[63] - The group recorded a rental income of HKD 11 million from investment properties in Hong Kong and Scotland, down from HKD 13.5 million in 2022[84] Assets and Liabilities - The fair value of investment properties as of June 30, 2023, was HKD 468,390,000, down from HKD 579,155,000 as of January 1, 2022, reflecting a fair value loss of HKD 55,449,000[12] - As of June 30, 2023, the group's bank balance and cash amounted to HKD 27.2 million, down from HKD 42.8 million as of December 31, 2022[71] - The debt-to-equity ratio increased from 95.4% as of December 31, 2022, to 136.0% as of June 30, 2023, reflecting total borrowings of HKD 383.7 million and total equity of HKD 282.1 million[73] - As of June 30, 2023, the group's bank deposits and properties totaled HKD 470.4 million, a slight decrease from HKD 471.7 million as of December 31, 2022[78] Borrowings and Financial Costs - The company obtained a new loan of HKD 12,000,000 during the period, with an interest rate of 9%, maturing on April 17, 2025[29] - The group successfully secured borrowings of HKD 12 million and received an interest-free loan of HKD 11.6 million from an affiliate during the period[70] - Financial costs increased to HKD 7.7 million, up from HKD 6.5 million in 2022, mainly due to higher interest expenses on bank and other borrowings[90] Shareholder Information - The weighted average number of ordinary shares used to calculate diluted loss per share was 5,292,515,390 for both periods ended June 30, 2023, and June 30, 2022[9] - As of June 30, 2023, the total number of issued shares is 5,292,515,390, with major shareholders holding significant stakes, including 鼎珮投資集團有限公司 at 28.70%[143] - The company’s major shareholder, Ms. Mai Siu-Hin, directly holds approximately 22.94% of the issued share capital and indirectly holds about 5.76% through Maini Investments Limited, totaling approximately 28.7%[169] Corporate Governance - The company maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange during the reporting period[155] - The company has complied with the corporate governance code, ensuring the roles of chairman and CEO are separate[178] - The remuneration committee includes independent non-executive directors and is chaired by Mr. Du Zhenwei[187] Acquisitions and Business Development - The company acquired a subsidiary during the period, recognizing a right-of-use asset of HKD 5,712,000, compared to zero in 2022[14] - The acquisition of Wuhan Junyi was completed on February 17, 2023, and its financial statements have been consolidated with the group[53] - The company completed the acquisition of 武漢駿意 in February 2023, expanding its Maserati dealership network in China[129] - The group has opened a new Maserati 4S dealership in Wuhan, China, covering 47,000 square feet, enhancing its service offerings[107] - The group is actively seeking investment targets within the CDMO value chain, focusing on cell line development and media formulation[110] - The group plans to continue exploring potential business opportunities to deliver long-term value growth for shareholders amid economic uncertainties[111] Employee Information - As of June 30, 2023, the company employed a total of 34 staff in Hong Kong and mainland China, emphasizing the importance of employees for sustainable business development[126] Stock Options and Securities - The company reported a total of 60,000,000 unexercised stock options granted under the expired stock option plan as of June 30, 2023[147] - A total of 90,700,000 stock options were granted to the group's advisors, with 300,700,000 options remaining unexercised as of June 30, 2023[151] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2023[154] Changes in Management - The company experienced a change in its board of directors, with Mr. Huang Ruishen resigning as an executive director effective July 27, 2023[150] - Mr. Ng Chiu-Wai resigned as an executive director on July 27, 2023, resulting in the expiration of 18,000,000 share options granted to him[174] - Dr. Shen Zhongping was appointed as an independent non-executive director and member of the audit, nomination, and remuneration committees effective May 24, 2023[183] Other Information - The company did not declare or propose any dividends for the periods ended June 30, 2023, and June 30, 2022[11] - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to no dividend declared in 2022[137] - The company has successfully renewed its lending license in February 2023, ensuring adequate financial infrastructure for its financial services sector[131] - The interim financial statements have been reviewed but not audited, indicating ongoing financial oversight[197]

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之任何損失承擔任何責任。 AUTO ITALIA HOLDINGS LIMITED 意 達 利 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：720） 截至2023年6月30日止6個月之中期業績 意達利控股有限公司*（「本公司」）之董事（「董事」）會（「董事會」）宣佈，本公司及 其附屬公司（統稱「本集團」）截至2023年6月30日止6個月之未經審核簡明綜合業績， 連同比較數字如下： 簡明綜合損益表 截至2023年6月30日止6個月 持續經營業務 終止經營業務 總計 截至6月30日止6個月 截至6月30日止6個月 截至6月30日止6個月 2023年 2022年 2023年 2022年 2023年 2022年 附註 千港元 千港元 千港元 千港元 千港元 千港元 （未經審核） （未經審核） （未經審核） （未經審核） （未經審核） （未經審核） （附註9） 商品及服務收入 11,731 – – – 11,7 ...

Employee Training and Safety - Over 85% of existing employees received appropriate training during the reporting period, including all positions and genders[1] - All directors and employees underwent online anti-corruption training during the reporting period, enhancing internal awareness of anti-corruption[2] - The company has not experienced any work-related fatalities or injuries in the past three years, maintaining a safe working environment[6] - The company has not reported any work-related fatalities in the past three fiscal years, indicating a strong commitment to employee safety[61] - The company has implemented various pandemic control measures to enhance the safety of employees and customers[11] Environmental Sustainability - The company successfully reduced paper usage by 73% compared to 2021 due to effective implementation of environmental measures[24] - The company is committed to minimizing hazardous and non-hazardous waste levels, aiming to keep them close to 2022 levels[25] - The company continuously tracks and analyzes its carbon footprint to identify areas for reduction and provide transparency to stakeholders[20] - The company reported direct greenhouse gas emissions (Scope 1) of 16.99 tons of CO2 equivalent in 2022, a decrease of 41.5% from 28.81 tons in 2021[59] - Indirect greenhouse gas emissions (Scope 2) were 1.30 tons of CO2 equivalent in 2022, down 98.6% from 91.77 tons in 2021[59] - The greenhouse gas emissions density (Scope 1 and 2) improved to 0.62 tons of CO2 equivalent per HKD 1 million in revenue, compared to 2.08 tons in 2021, reflecting a significant reduction[59] - The total amount of hazardous waste generated was zero tons in 2022, compared to 2.55 tons in 2021, indicating effective waste management practices[59] - The company reported zero water consumption in 2022, a significant improvement from 153 cubic meters in 2021, demonstrating enhanced resource efficiency[59] - The company is focused on environmental protection by reducing resource consumption and waste[196] - The company ensures that all chemical by-products are processed by government-approved licensed partners to minimize environmental impact[198] Corporate Governance and Diversity - The company aims to adopt new regulations by December 31, 2024, ensuring no single gender on the board, promoting gender diversity[9] - The company emphasizes the importance of supply chain management and expects all suppliers to align with its core values in corporate social responsibility[14] Financial Performance and Investments - The acquisition of a Maserati dealership in Wuhan is expected to enhance the company's distribution network in China and contribute to revenue growth[46] - The company plans to expand its market presence through strategic investments, including the acquisition of VMS Auto Italia Fin Services Holdings Limited for HKD 960 million[47] - The group reported a gross profit margin increase of 40.2 percentage points, reaching 77.0% compared to 36.8% in 2021, primarily due to the real estate investment segment's gross profit margin rising by 81.2%[98] - The group announced the acquisition of 51% of Wuhan Junyi Automobile Sales Service Co., Ltd. for a total consideration of RMB 10.2 million, which was completed in February 2023[97] - The fair value loss of HKD 12,530,000 related to the investment in Chime Biologics was recognized in the consolidated income statement for the year ended December 31, 2022[76] - The group recorded a loss attributable to shareholders of HKD 63.4 million for the year, compared to a loss of HKD 7.1 million in 2021[136] - The group anticipates 2023 to be challenging due to rising interest rates and geopolitical tensions, but will focus on automotive-related businesses and property investments[128] Research and Development - CBL obtained its first commercial production registration certification for an anti-PD-1 antibody in July 2022, becoming one of the few CDMOs in China qualified for commercial antibody drug production[67] - CBL's Shanghai R&D center achieved a breakthrough by developing a cell line with productivity of 8-10 g/L, significantly higher than the industry average of 3-5 g/L, enhancing its capabilities in early drug development[150] - The new GMP-3 facility is expected to be operational in Q2 2023, allowing CBL to participate in early drug development with cost-effective solutions[151] - The second-phase drug production facility (DP-2) is expected to commence operations in Q1 2023, adding new filling formats to CBL's integrated manufacturing solutions[151] Financial Health and Risk Management - The group's cash and cash equivalents amounted to HKD 44.3 million as of December 31, 2022, compared to HKD 39.3 million as of December 31, 2021[120] - The group's debt-to-equity ratio increased from 78.4% as of December 31, 2021, to 95.4% as of December 31, 2022, due to unrealized losses on investment properties[120] - The group incurred finance costs of HKD 12.3 million in 2022, an increase from HKD 11.5 million in 2021, mainly due to increased interest expenses from Capella[134] - The company has experienced a significant increase in financial risk and uncertainty factors as detailed in the risk management report[194] - The company aims to balance financing activities' returns and risks amid recent market volatility, maintaining a cautious approach[45] - The group is cautiously conducting loan operations to avoid potential defaults and protect the overall interests of the company and its shareholders during the current market downturn[96] Future Outlook - Future business development and outlook discussions are included in the management discussion and analysis section[193] - The company continues to monitor the impact of COVID-19 on its operations and financial condition, while exploring potential business opportunities for long-term value growth[173] - The group plans to explore potential opportunities globally to create long-term synergies[128]