Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 422,038,000, a decrease of approximately 39.8% compared to HKD 699,901,000 for the same period in 2023[1]. - The company incurred a loss before tax of HKD 117,183,000, compared to a loss of HKD 178,169,000 in the prior year, indicating an improvement of approximately 34.2%[1]. - The total comprehensive loss for the period was HKD 155,697,000, down from HKD 277,784,000 in the same period last year, reflecting a reduction of about 43.9%[2]. - Basic and diluted loss per share improved to HKD 17.50 from HKD 22.50, indicating a reduction in loss per share of approximately 22.2%[2]. - The group reported a total loss for the group for the six months ended June 30, 2024, was HKD 117,277,000, compared to a loss of HKD 151,050,000 for the same period in 2023, indicating an improvement in performance[12]. - The group reported a loss attributable to shareholders of approximately HKD 118 million, compared to a loss of HKD 152 million in the same period last year[32]. Revenue Breakdown - The revenue from property agency services was HKD 404,543,000 for the six months ended June 30, 2024, down from HKD 672,573,000 in the same period of 2023, indicating a decrease of about 40%[11]. - Interest income from receivables was HKD 17,495,000 for the six months ended June 30, 2024, compared to HKD 27,328,000 for the same period in 2023, reflecting a decline of approximately 36.1%[12]. - The financial services segment generated revenue of HKD 17,495,000 for the six months ended June 30, 2024, down from HKD 27,328,000 in the same period of 2023, a decrease of about 36.1%[12]. - The property agency business generated revenue of approximately HKD 405 million, accounting for 96% of the group's total revenue, down from HKD 673 million last year[32]. - The financial services segment reported revenue of approximately HKD 17 million, representing 4% of the group's total revenue, down from HKD 27 million last year[32]. Assets and Liabilities - The company's non-current assets decreased to HKD 102,013,000 from HKD 120,377,000 year-over-year, representing a decline of approximately 15.2%[3]. - Current liabilities decreased to HKD 270,143,000 from HKD 352,458,000, showing a reduction of about 23.3%[4]. - The company's total assets decreased to HKD 1,679,556,000 from HKD 1,792,608,000, a decline of approximately 6.3%[4]. - The company's total equity attributable to owners decreased to HKD 1,468,178,000 from HKD 1,610,914,000, a decline of about 8.8%[4]. - The group maintained a healthy financial position with cash and bank deposits of approximately HKD 211 million, down from HKD 299 million as of December 31, 2023[38]. - Total borrowings amounted to approximately HKD 140 million, a decrease from HKD 167 million as of December 31, 2023, with a capital debt ratio of about 7.2%[38]. Employee and Operational Costs - Total employee costs for the six months ended June 30, 2024, were HKD 395,767,000, down from HKD 512,176,000 in the same period of 2023, indicating a decrease of about 23%[15]. - Interest expenses from bank and other borrowings decreased to HKD 5,264,000 for the six months ended June 30, 2024, compared to HKD 9,263,000 for the same period in 2023, representing a reduction of approximately 43%[13]. - The total lease liabilities decreased to HKD 3,238,000 for the six months ended June 30, 2024, from HKD 7,109,000 in the same period of 2023, indicating a decline of approximately 54%[13]. Strategic Initiatives - The group plans to continue optimizing resource allocation and enhancing operational efficiency in response to market changes[33]. - The group is focusing on digitalization and information technology to provide diversified services to clients and expand online customer sources[33]. - The group is committed to strict risk control and adjusting its strategies in the financial services sector to adapt to market and regulatory changes[34]. - The group plans to enhance digitalization and artificial intelligence investments to improve service efficiency and customer experience[36]. - The group aims to integrate resources and optimize service systems to support transactions in both new and second-hand housing markets[36]. Governance and Compliance - The group has established an audit committee consisting of three independent non-executive directors to review the unaudited interim results[37]. - The group did not experience significant impacts on its performance and financial position from the new accounting standards adopted during the reporting period[6]. - There were no significant transactions with related parties during the reporting period, consistent with the previous year[23]. Stock Options and Dividends - The company does not recommend the payment of any dividends for the six months ended June 30, 2024, consistent with the previous year[16]. - The company adopted a stock option plan on May 23, 2023, to attract and retain top employees, with a validity of 10 years[24]. - The maximum number of shares that can be issued under the stock option plan is capped at 10% of the company's issued share capital as of the adoption date, equating to 67,414,998 shares[25]. - As of June 16, 2023, the company granted stock options allowing holders to purchase a total of 67,380,000 shares, subject to certain performance conditions[26]. - By June 30, 2024, 30,340,000 stock options granted to a specific individual have lapsed[26]. - The exercise price for the stock options is set at HKD 1.85 per share, with a total of 33,670,000 shares available for issuance as of June 30, 2024[28]. - The total number of stock options granted under the plan represents approximately 4.99% of the weighted average number of shares issued, compared to 9.99% in 2023[28].

Loan Clients and Types - The group has a total of 927 loan clients, consisting of 907 personal loans and 20 corporate loans[18]. - Among the secured loans, there are 14 secured by property and 7 secured by project collateral[18]. - The company has provided secured and unsecured loans to a total of 927 customers as of December 31, 2023[30]. Credit Risk Management - The credit risk management system includes a multi-level assessment and approval process for loan applications[3]. - The credit risk assessment policy includes ongoing monitoring of loan recoverability and collection strategies[25]. - The group has established a credit risk assessment system that involves extensive documentation review and due diligence procedures[26]. - The group has implemented appropriate collection actions based on client consultations, including legal proceedings and loan restructuring arrangements[29]. - As of December 31, 2023, the company recorded a loan impairment loss of approximately HKD 235 million, with about HKD 222 million classified as Stage 3 due to negative impacts from the pandemic and adverse market conditions[32]. Funding and Client Focus - The group primarily funds its lending business through internal resources[10]. - The group focuses on high-net-worth and reputable clients for personal loans, including executives, businessmen, and professionals[24]. Share Option Plan - The group has adopted a stock option plan allowing for the issuance of up to 67,414,998 shares, representing approximately 10% of the company's issued share capital[21]. - The total number of shares available for issuance under the share option plan is 67,380,000 shares, representing approximately 9.99% of the weighted average number of shares issued for the year ended December 31, 2023[33]. Interest Rate Management - The group regularly reviews market interest rates and regulatory updates to adjust loan rates accordingly[7].

Financial Performance - The company reported a total revenue of HKD 3,479,216 thousand for the year ending December 31, 2023, compared to HKD 3,269,309 thousand in 2022, reflecting an increase of approximately 6.4%[4] - In 2023, the group's revenue was approximately HKD 1,295,000,000, a decrease of about 15% compared to HKD 1,517,000,000 in 2022[26] - The group reported a loss attributable to shareholders of approximately HKD 531,000,000, compared to a loss of HKD 580,000,000 in 2022[26] - The property agency business revenue was approximately HKD 1,251,000,000, down from HKD 1,426,000,000 in 2022, accounting for about 97% of total revenue[26] - The financial services segment generated revenue of approximately HKD 44,000,000, down from HKD 91,000,000 in 2022, accounting for about 3% of total revenue[32] Business Operations - Property agency services accounted for 94% of the total revenue in 2023, maintaining a strong focus on this core business segment[5] - The company aims to expand its agency projects across various regions to strengthen its leading position in the domestic real estate service market[7] - The company has established partnerships with over 50 cities and is collaborating closely with major developers such as Vanke and China Overseas Land & Investment[7] - The company has a comprehensive service network covering major cities in China, enhancing its market reach and operational capabilities[11] - The group has over 900 agency projects covering more than 50 cities nationwide, with approximately 110 branches for second-hand properties[32] Management and Governance - The management team includes experienced professionals with over 28 years of experience in real estate development and related businesses[13] - The audit committee, consisting of independent non-executive directors, has reviewed the audited financial statements for the year ending December 31, 2023[17] - The company has no established corporate governance committee; the board is responsible for governance functions, including policy formulation and compliance[52] - The company’s governance policies and practices are regularly reviewed to ensure compliance with legal and regulatory requirements[52] - The board's focus includes long-term goals, overall strategy, and monitoring financial and operational performance[51] Financial Position - The group maintains a strong financial position with cash and bank deposits of approximately HKD 299 million as of December 31, 2023, down from HKD 394 million in 2022[38] - The current ratio is 4.26, an increase from 3.72 in 2022, indicating improved liquidity[38] - Total borrowings amount to approximately HKD 167 million, a decrease from HKD 232 million in 2022[38] - The capital debt ratio is approximately 7.8%, slightly up from 7.6% in 2022, reflecting stable leverage[38] Strategic Plans - The group plans to solidify its new housing business and optimize its layout and scale in Guangzhou and the Greater Bay Area in 2024[35] - The group aims to enhance its existing transaction, value research, and assessment businesses, focusing on better synergy between primary and secondary markets[35] - The group is committed to leveraging technology and developing new media businesses to enhance its offline transaction services and expand resource integration[36] Environmental, Social, and Governance (ESG) - The company has implemented various environmental and social policies to support sustainable development[164] - The company aims to maintain greenhouse gas emissions, non-hazardous waste, and resource usage at the same level as 2023, with a reduction target of approximately 5% for 2024[167] - Total greenhouse gas emissions for the year amounted to approximately 2,333 tons of CO2 equivalent, a decrease from 4,414 tons in 2022[183] - The company has established a working group to collect relevant ESG data and report to the board on the effectiveness of internal controls and risk management[167] - The company engages with stakeholders through various channels to understand their concerns and expectations regarding financial performance and business development[176] Shareholder Information - The company has a dividend policy approved in 2019, aimed at enhancing transparency for shareholders[78] - The company did not recommend the distribution of a final dividend for the year ending December 31, 2023, consistent with the previous year where no dividend was declared[105] - The company has established a shareholder communication policy, which will be regularly reviewed by the board to ensure its effectiveness[98] - The company’s articles of association allow shareholders to propose resolutions at special general meetings, subject to specific procedures[96] Employee Relations - The company recognizes the importance of maintaining good relationships with employees, customers, and business partners for sustainable development[109] - The group has approximately 5,300 full-time employees, emphasizing the importance of competitive compensation based on individual roles and performance[41] - The company has established a compensation policy based on employee performance, experience, and current market rates[150] Risk Management - The board reviews the effectiveness of risk management and internal control systems annually[85] - The internal audit department was established in 2006 to ensure compliance with group policies and procedures[84] - The company faces various financial risks, which are detailed in the consolidated financial statements[114]

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,294,513,000, a decrease from HKD 1,516,862,000 in the previous year, representing a decline of approximately 14.7%[2] - The company reported a loss from continuing operations of HKD 530,950,000 for the year, compared to a loss of HKD 246,020,000 in the previous year, indicating an increase in losses of about 115.5%[5] - Basic and diluted loss per share from continuing and discontinued operations was HKD 78.8 cents, compared to HKD 86.1 cents in the previous year, showing a slight improvement[7] - The company incurred a pre-tax loss of HKD 594,160,000, up from HKD 328,832,000 in the previous year, reflecting a worsening of approximately 80.7%[14] - Total comprehensive expenses for the current year amounted to HKD 638,325,000, down from HKD 944,829,000 in the previous year, reflecting a decrease of about 32.4%[18] - The profit/loss from continuing operations for the current year was HKD 1,532,000, a significant improvement from a loss of HKD 104,981,000 in the previous year[19] - The company reported a loss of HKD 529,418,000 for the current year, compared to a loss of HKD 748,367,000 in the previous year, indicating a reduction in losses by approximately 29.3%[16] - The total comprehensive income for the year was reported as HKD (108,907,000), compared to HKD (196,462,000) in the previous year, showing an improvement in comprehensive income[18] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 1,792,608,000, down from HKD 2,559,154,000 in the previous year, a decrease of about 30%[8] - The company’s total liabilities decreased to HKD 352,458,000 from HKD 491,866,000, a reduction of approximately 28.3%[8] - The company’s cash and cash equivalents decreased to HKD 298,659,000 from HKD 393,966,000, a decline of approximately 24.2%[8] - The company recognized a provision for bad debts amounting to HKD 259,613,000 in 2023, compared to a reversal of HKD 59,731,000 in 2022[75] - The company’s total liabilities decreased from HKD 48,657,000 in 2022 to HKD 26,242,000 in 2023[72] Revenue Segments - The company is involved in property agency services and financial services, with total revenue from property agency services reported at HKD 1,419,017,000 for the year[32] - The financial services segment generated revenue of HKD 91,027,000, maintaining a stable contribution to overall income[32] - Total revenue for the year ended December 31, 2023, was HKD 4,309,528,000, with a significant portion coming from property agency services at HKD 1,425,835,000[45] - Revenue from continuing operations was HKD 1,294,513,000, while discontinued operations contributed HKD 2,792,666,000[45] - The financial services segment generated revenue of HKD 44,007,000, indicating a need for strategic improvements[53] - The group's property agency business revenue decreased from approximately 1,426 million HKD in 2022 to about 1,251 million HKD in 2023, accounting for approximately 97% of the total revenue[118] - The financial services segment's revenue was approximately 44 million HKD in 2023, down from about 91 million HKD in 2022, representing around 3% of the total revenue[123] Operational Strategies - The group plans to enhance its market expansion strategies to improve revenue streams in the upcoming fiscal year[44] - The company is focusing on new product development and technology advancements to drive future growth[44] - The group aims to optimize its operational efficiency to reduce the overall cost burden, particularly in central administration[53] - The group plans to enhance its existing transaction, value research, and evaluation businesses in 2024, focusing on better synergy between new and second-hand businesses[127] - The group is actively developing new media business and collaborating with internet companies to enhance its offline transaction services[96] - The group has implemented management improvements aimed at enhancing efficiency and reducing costs, despite the ongoing market adjustments[120] Market Conditions - In 2023, the real estate industry experienced a significant downturn, with national commercial housing sales area declining by approximately 17.7% to 1.12 billion square meters, and sales amount dropping by about 12.5% to 11.7 trillion yuan[116] - The central and local governments have introduced various supportive policies to stabilize the real estate market, including relaxing purchase and loan restrictions in major cities[126] - The group anticipates that 2024 will be a year of recovery for the domestic real estate market, with supply-demand imbalances expected to ease further[126] Corporate Governance - The company has appointed Mr. Lau Hang Wong as the company secretary, which is expected to enhance compliance with applicable laws and regulations[139] - The board of directors confirmed full compliance with the standards set out in the Listing Rules Appendix C3[141] - The audit committee, composed of three current independent non-executive directors, has reviewed the annual financial statements for the year ended December 31, 2023[144] Employee and Compensation - The group has approximately 5,300 full-time employees, emphasizing the importance of competitive compensation packages[100] - Total employee costs for the year amounted to HKD 1,019,049,000, down from HKD 1,339,405,000 in the previous year[75] Dividends and Share Options - The company did not recommend the payment of a final dividend for the year ending December 31, 2023, consistent with the previous year[57] - A stock option plan was adopted on May 23, 2023, allowing for the issuance of options not exceeding 10% of the company's issued share capital[108][109] - The fair value of share options granted under the plan was approximately HKD 41,648,000, based on an exercise price of HKD 1.85 per share[84]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 699,901,000, a decrease of 76.4% compared to HKD 2,973,645,000 for the same period in 2022[2] - The company reported a loss before tax of HKD 178,169,000, significantly improved from a loss of HKD 641,650,000 in the previous year, representing a reduction of 72.2%[2] - The net loss for the period was HKD 151,050,000, compared to a net loss of HKD 663,875,000 in the same period last year, indicating a 77.3% improvement[2] - Total comprehensive loss for the period was HKD 277,784,000, down from HKD 814,090,000 in the previous year, reflecting a decrease of 65.8%[2] - The company incurred a financial asset impairment provision of HKD 109,289,000, compared to HKD 19,918,000 in the previous year, marking a significant increase[2] - Sales expenses for the period were HKD 601,817,000, down from HKD 3,049,435,000, a reduction of 80.3%[2] - Administrative expenses decreased to HKD 158,690,000 from HKD 328,760,000, a decline of 51.8%[2] - The company reported a foreign exchange loss of HKD 126,734,000, compared to a loss of HKD 150,215,000 in the previous year, showing a slight improvement[2] - The company reported a loss of HKD 814,090,000 for the period, reflecting ongoing financial challenges[196] - Total comprehensive expenses amounted to HKD 2,347,922,000, indicating substantial operational costs[199] Assets and Liabilities - As of June 30, 2023, total assets were HKD 2,183,995,000, down from HKD 2,559,154,000 at the end of the previous year[23] - The company’s equity attributable to owners was HKD 1,944,226,000, a decrease from HKD 2,234,034,000 in the previous year[23] - As of June 30, 2023, the company's cash and bank deposits were approximately HKD 318 million, down from HKD 394 million as of December 31, 2022[102] - The total borrowings amounted to approximately HKD 185 million, a decrease from approximately HKD 232 million as of December 31, 2022[102] - The company's capital debt ratio was approximately 7.3%, slightly down from 7.6% as of December 31, 2022[102] - As of June 30, 2023, the group has mortgaged investment properties and equipment valued at approximately HKD 33 million to secure bank loans, compared to HKD 35 million as of December 31, 2022[116] Market Performance - The total housing sales amount for the first half of 2023 was approximately HKD 69.5 billion, an increase of about 8% compared to HKD 64.5 billion in the same period last year[98] - The total housing sales area for the same period was approximately 3 million square meters[98] - The overall real estate market in mainland China saw a decline in sales area of approximately 5% year-on-year, totaling around 600 million square meters in the first half of 2023[110] - The real estate development sentiment index fell again in June, indicating a continued cautious attitude among homebuyers[110] Strategic Initiatives - The company plans to expand its market share and business revenue in Guangdong Province[101] - The company aims to establish an effective operational review mechanism and a complete authorization approval process to ensure timely and accurate decision-making[101] - The company will focus on risk control as a key operational principle and closely monitor changes in the financial environment and market[100] - The group aims to enhance operational efficiency and service levels in response to changing supply-demand dynamics in the real estate market[114] - The company plans to leverage its strengths in Guangzhou to create a favorable business environment[114] - The group is committed to ensuring stable operations and achieving a smooth transition to a mature development phase[114] Corporate Governance - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[117] - The existing stock option plan authorized the issuance of 67,380,000 shares, representing 9.99% of the company's issued shares as of the date of the mid-term report[128] - Major shareholder Fu holds 195,616,312 shares, representing 29.02% of the company's issued capital[130] - The company has appointed a practicing lawyer as the company secretary to ensure compliance with applicable laws and regulations[137] - The company has not repurchased any shares since its listing date, nor have any subsidiaries bought or sold shares[149] - The company has adopted the corporate governance code as per the listing rules and confirmed full compliance with the standards[152] - The roles of Chairman and CEO were separated on May 24, 2023, to comply with corporate governance standards[154] - The company has confirmed that all directors have complied with the corporate governance code during the reporting period[152] - The company has not disclosed any significant changes in shareholdings or interests as of June 30, 2023[148] Stock Options and Performance Targets - The company has set performance targets for stock options to be realized by December 31, 2023, with 70% and 40% of shares allocated to the first and second batches of grantees, respectively[123] - The company has set performance targets for the fiscal year ending December 31, 2024, with stock options vesting based on achieving these targets[141] - As of June 30, 2023, the company reported a total of 168,537,497 shares registered under a subsidiary[146] - The company has a total of 112,418,263 shares registered under China-net Holding Ltd., fully owned by a major shareholder[146] Operational Challenges - The company reported a decrease in financial business performance compared to the same period last year due to various macroeconomic constraints[100] - The operational performance analysis indicates a significant decline in revenue across various segments, necessitating strategic reassessment[184] - The company incurred a loss during the period, with financing costs reported at HKD 487,174,000[187]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 HOPEFLUENT GROUP HOLDINGS LIMITED 合 富 輝 煌 集 團 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：733） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 合富輝煌集團控股有限公司（「本公司」）董事（「董事」）會欣然公佈本公司及 其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經 審核綜合中期業績，連同二零二二年同期之比較數字如下： 簡明綜合損益及其他全面收入報表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 收益 3 699,901 2,973,645 其他收入 8,098 13,826 銷售開支 (601,817) (3,049,435) 行政開支 (158,690) (328,760) 金融資產之 ...

香港交易及結算所有限公司以及香港聯合交易所有限公司（「聯交所」）對本公告的 內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何 責任。 HOPEFLUENT GROUP HOLDINGS LIMITED 合 富 輝 煌 集 團 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：733） 補充公告 有關截至二零二二年十二月三十一日止年度年報 茲提述合富輝煌集團控股有限公司（「本公司」，連同其附屬公司為「本集團」）於二 零二三年四月二十五日所刊發截至二零二二年十二月三十一日止年度年報（「二零 二二年年報」）。除文義另有所指外，本公告所用詞彙與二零二二年年報所界定者 具有相同涵義。 除二零二二年年報所披露資料外，本公司董事（「董事」）會（「董事會」）謹此提供有 關本集團金融服務業務的額外資料如下： (i) 客戶規模及多元化 截至二零二二年十二月三十一日止年度，本集團金融服務業務集中服務現有 經篩選的客戶及房地產公司。 ...

Financial Performance - The company's total revenue for 2022 was HKD 1,517,000,000, a decrease of 43% compared to 2021[14] - Shareholders' loss for the year reached HKD 580,000,000, with no final dividend recommended for the year ending December 31, 2022[14] - The group's total revenue for the year ended December 31, 2022, was HKD 1,517,000,000, a decrease of approximately 43% compared to HKD 2,669,000,000 in 2021[37] - The group reported a loss attributable to shareholders of HKD 580,000,000, compared to a loss of HKD 545,000,000 in 2021, with a basic loss per share of HKD 0.861[37] Property Agency Business - The property agency business revenue fell from HKD 2,489,000,000 in 2021 to HKD 1,426,000,000, representing a 43% decline[16] - The property agency business generated revenue of HKD 1,426,000,000, accounting for 94% of total revenue, while the financial services business contributed approximately HKD 91,000,000, or 6%[37] - The property agency business revenue decreased by 43% from approximately HKD 2,489,000,000 in 2021 to about HKD 1,426,000,000 due to a challenging industry environment[38] - The property agency business currently covers over 80 cities nationwide, with more than 1,100 projects and approximately 160 second-hand branches[39] Financial Services - The financial services segment reported a revenue of HKD 91,000,000 for 2022, showing a significant decrease due to external market conditions[16] - The financial services business recorded a total transaction amount of approximately HKD 512,000,000, with revenue of about HKD 91,000,000, down from approximately HKD 180,000,000 in 2021[41] Market Conditions - The overall market remains under pressure, with a slow recovery expected from government policies introduced at the end of the year[14] - The real estate market in China is expected to gradually warm up in 2023, with related indicators anticipated to improve[17] - The real estate development investment in China saw its first decline since 1999, impacting the overall market environment[14] - The company continues to focus on key cities with rapid urbanization and high value, adapting to market changes[16] Strategic Partnerships and Restructuring - In April, the company restructured its property agency business with Poly, and in November, it increased its stake with Country Garden Services to leverage mutual advantages[16] - The group restructured its cooperation model with Poly, acquiring a 43.9% stake in HeFu China while selling its stake in Poly Consulting Group[38] - The proposed restructuring involves the transfer of 43.9% equity from Poly to the company, allowing the company to fully own HeFu China[150] - Poly has committed to provide property agency services for properties valued at no less than RMB 80 billion annually for five years, starting from September 1, 2022[151] Governance and Management - The board of directors held 22 meetings in the fiscal year, demonstrating active governance and oversight[57] - The company does not have a CEO position; daily operations are overseen by executive directors and senior management[62] - The audit committee, composed of three independent non-executive directors, reviewed the financial statements for the year ending December 31, 2022[71] - The company’s governance policies and practices are regularly reviewed by the board to ensure compliance with legal and regulatory requirements[61] Risk Management - The group reported a satisfactory review of its risk management and internal control systems as of December 31, 2022[95] - The company has established a risk management and internal control system aimed at managing risks rather than eliminating them, ensuring reasonable assurance against significant misstatements or losses[94] - The board is responsible for overseeing the overall risk management and has committed to identifying and monitoring risks while implementing coordinated mitigation measures[94] Environmental, Social, and Governance (ESG) - The board of directors has established environmental and social governance (ESG) policies to support sustainable development[175] - The company has established a comprehensive environmental, social, and governance (ESG) reporting framework, focusing on stakeholder engagement and the importance of various ESG issues[180] - The total greenhouse gas emissions for the year ended December 31, 2022, were approximately 4,414 tons, a decrease from about 5,800 tons in the previous year, representing a reduction of approximately 24%[195] - The company has implemented measures to reduce environmental impact and regularly reviews the effectiveness of these measures[178] Employee Relations - The company expresses gratitude to all employees, shareholders, clients, and business partners for their ongoing support and trust[17] - The group has approximately 7,300 full-time employees, emphasizing the importance of human resources as a valuable asset[48] - The company has implemented a compensation policy based on employee performance, experience, and current market rates[161] Shareholder Communication and Dividends - The company has a policy for shareholder communication, which includes annual general meetings and special meetings to facilitate communication between shareholders and the board[108] - The board did not recommend a final dividend for the year ending December 31, 2022, consistent with the previous year[114] - No interim dividend was declared for the six months ending June 30, 2022, compared to HKD 0.005 per share for the same period in 2021[115]

[Company Profile and Performance Announcement](index=1&type=section&id=Company%20Profile%20and%20Performance%20Announcement) [Company General Information](index=4&type=section&id=1.1%20Company%20General%20Information) Hopefluent Group Holdings Limited is an investment holding company listed on the Hong Kong Stock Exchange, with its functional currency in RMB and financial statements in HKD - The company is an investment holding company incorporated in the Cayman Islands, with its shares listed on the Hong Kong Stock Exchange[102](index=102&type=chunk)[20](index=20&type=chunk) - The company's functional currency is RMB, but consolidated financial statements are presented in HKD[102](index=102&type=chunk) [Annual Performance Announcement](index=1&type=section&id=1.2%20Annual%20Performance%20Announcement) The company announces its audited consolidated results for the year ended December 31, 2022, including comparative figures - The company is pleased to announce its audited consolidated results for the year ended December 31, 2022[92](index=92&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=1.3%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended December 31, 2022, the Group reported a loss of HK$748,367 thousand and total comprehensive expenses of HK$944,829 thousand Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue from continuing operations | 1,516,862 | 2,669,143 | | Loss for the year | (748,367) | (752,727) | | Total comprehensive expenses for the year | (944,829) | (656,738) | | Loss for the year attributable to owners of the company | (580,377) | (544,799) | | Loss for the year attributable to non-controlling interests | (167,990) | (207,928) | | Total comprehensive expenses for the year attributable to owners of the company | (718,777) | (493,293) | | Total comprehensive expenses for the year attributable to non-controlling interests | (226,052) | (163,445) | - Loss for the year from continuing operations was **HK$(351,001) thousand**, and loss for the period from discontinued operations was **HK$(397,366) thousand**[107](index=107&type=chunk) - Exchange differences on translation of overseas operations amounted to **HK$(144,602) thousand**, and exchange differences reclassified to profit or loss upon derecognition of discontinued operations were **HK$(51,562) thousand**[108](index=108&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=1.4%20Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, the Group's total assets less current liabilities were HK$2,559,154 thousand, net current assets were HK$1,338,037 thousand, and equity attributable to owners of the company was HK$2,227,896 thousand Summary of Consolidated Statement of Financial Position | Metric | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current assets | 1,221,117 | 1,252,599 | | Current assets | 1,829,903 | 5,741,502 | | Current liabilities | 491,866 | 2,472,082 | | Net current assets | 1,338,037 | 3,269,420 | | Total assets less current liabilities | 2,559,154 | 4,522,019 | | Non-current liabilities | 325,120 | 409,542 | | Equity attributable to owners of the company | 2,227,896 | 2,946,673 | | Non-controlling interests | 6,138 | 1,165,804 | | Total equity | 2,234,034 | 4,112,477 | [Notes to the Consolidated Financial Statements](index=4&type=section&id=1.5%20Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes to the consolidated financial statements, including general company information and the adoption of new or revised Hong Kong Financial Reporting Standards - The notes to the consolidated financial statements provide detailed financial information for the year ended December 31, 2022[114](index=114&type=chunk) [General Information](index=4&type=section&id=1.5.1%20General%20Information) The company is incorporated in the Cayman Islands, with its principal place of business located in Guangzhou, China - The company's registered office is in the Cayman Islands, and its principal place of business is in Guangzhou, China[102](index=102&type=chunk) [Adoption of Hong Kong Financial Reporting Standards](index=4&type=section&id=1.5.2%20Adoption%20of%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted certain new or revised Hong Kong Financial Reporting Standards during the current accounting period, but these changes had no significant impact on the Group's results and financial position - The Hong Kong Institute of Certified Public Accountants has issued certain new or revised Hong Kong Financial Reporting Standards that are effective for the first time in the current accounting period[103](index=103&type=chunk) - These new or revised Hong Kong Financial Reporting Standards had no significant impact on the Group's results and financial position for the current or prior periods[117](index=117&type=chunk) - The directors do not anticipate that the application of these amendments and revisions in the future will have a significant impact on the consolidated financial statements[127](index=127&type=chunk) [Details of Notes to Financial Statements](index=5&type=section&id=Details%20of%20Notes%20to%20Financial%20Statements) [Revenue](index=5&type=section&id=2.1%20Revenue) The Group's total revenue for 2022 was HK$4,309,528 thousand, a significant decrease from 2021, primarily derived from agency commissions, financial services income, and interest income from loans receivable, with discontinued operations contributing a larger proportion Revenue Classification | Revenue Source | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Agency commissions from continuing operations | 1,425,835 | 2,489,400 | | Agency commissions from discontinued operations | 2,792,666 | 4,496,736 | | Financial services income | 6,223 | 56,231 | | Interest income from loans receivable | 84,804 | 123,512 | | **Total Revenue** | **4,309,528** | **7,165,879** | - Revenue primarily comprises agency commissions from property agency services, financial services income, and interest income from loans receivable[118](index=118&type=chunk) [Segment Information](index=6&type=section&id=2.2%20Segment%20Information) The Group's operating segments include property agency and financial services, with Poly Consultants Group's property agency business classified as a discontinued operation in 2022 - The Group's operating segments include property agency (providing primary and secondary property services) and financial services (providing mortgage referral and loan financing services)[120](index=120&type=chunk)[131](index=131&type=chunk) - Poly Consultants Group's property agency business was classified as a discontinued operation on March 31, 2022[131](index=131&type=chunk) [Revenue Analysis by Geographical Market](index=7&type=section&id=2.2.1%20Revenue%20Analysis%20by%20Geographical%20Market) In 2022, the majority of the Group's revenue came from China, with contributions from both continuing and discontinued operations, while Australia accounted for a smaller portion Revenue Analysis by Geographical Market | Region | Business Segment | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | :--- | | China | Continuing operations (Property agency) | 1,419,017 | 2,459,935 | | China | Continuing operations (Financial services) | 91,027 | 179,743 | | China | Discontinued operations (Property agency) | 2,792,666 | 4,496,736 | | Australia | Continuing operations (Property agency) | 6,818 | 29,465 | | **Total** | | **4,309,528** | **7,165,879** | - Comparative revenue and related segment notes have been restated as if the discontinued operations for the current year had been discontinued at the beginning of the comparative period[122](index=122&type=chunk) [Results Analysis by Operating and Reportable Segment](index=8&type=section&id=2.2.2%20Results%20Analysis%20by%20Operating%20and%20Reportable%20Segment) In 2022, the continuing property agency segment recorded a loss of HK$312,589 thousand, while the financial services segment recorded a profit of HK$22,470 thousand, and discontinued operations generated a loss of HK$153,870 thousand Results Analysis by Operating and Reportable Segment (2022) | Metric | Property Agency (Continuing Operations) (HK$ Thousand) | Financial Services (Continuing Operations) (HK$ Thousand) | Discontinued Operations (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Segment revenue | 1,425,835 | 91,027 | 2,792,666 | | Segment (loss) / profit | (312,589) | 22,470 | (153,870) | | Other income | | | 8,182 | | Central administrative costs | | | | | Finance costs | | | (5,145) | | Loss before tax | | | (148,039) | Results Analysis by Operating and Reportable Segment (2021) | Metric | Property Agency (Continuing Operations) (HK$ Thousand) | Financial Services (Continuing Operations) (HK$ Thousand) | Discontinued Operations (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Segment revenue | 2,489,400 | 179,743 | 4,496,736 | | Segment (loss) / profit | (227,309) | 34,236 | (125,789) | | Other income | | | 19,385 | | Central administrative costs | | | | | Finance costs | | | (5,509) | | Loss before tax | | | (86,891) | [Finance Costs and Income Tax](index=9&type=section&id=2.3%20Finance%20Costs%20and%20Income%20Tax) Finance costs for continuing operations decreased from HK$62,461 thousand in 2021 to HK$48,657 thousand in 2022, and the Group recorded an income tax expense of HK$22,169 thousand in 2022, compared to a credit of HK$112,135 thousand in 2021 Finance Costs for Continuing Operations | Source of Finance Costs | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 6,053 | 885 | | Interest on other borrowings | 24,507 | 40,401 | | Interest on lease liabilities | 18,097 | 21,175 | | **Total** | **48,657** | **62,461** | Income Tax Expense / (Credit) | Tax Type | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | China corporate income tax | 8,270 | 14,602 | | Deferred tax assets | 14,933 | (131,694) | | Deferred tax liabilities | (1,034) | 4,957 | | **Total** | **22,169** | **(112,135)** | - The tax rate for Chinese subsidiaries is **25%**, for Australian entities is **30%**, and no provision for Hong Kong profits tax was made due to no assessable profits[30](index=30&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) [Details of Loss for the Year](index=10&type=section&id=2.4%20Details%20of%20Loss%20for%20the%20Year) Details of the loss for the year show that staff costs and depreciation expenses are major components, with a reversal of financial asset impairment in 2022 compared to recognition in 2021 Details of Loss for the Year Calculation | Item | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Total staff costs | 1,339,405 | 2,105,550 | | Auditor's remuneration | 4,200 | 4,500 | | Depreciation expense (Property, plant and equipment) | 25,941 | 40,284 | | Depreciation expense (Right-of-use assets) | 56,163 | 70,795 | | Reversal / (recognition) of impairment for financial assets | (59,731) | 468,992 | | (Gain) / loss on disposal and write-off of property, plant and equipment | (1,016) | 238 | | Loss / (gain) on fair value changes of financial assets at fair value through profit or loss | 1,921 | (228) | | Loss / (gain) on disposal of financial assets at fair value through profit or loss | 3,107 | (2,017) | | Other losses / (gains) total net | 4,012 | (2,007) | [Dividends and Loss Per Share](index=11&type=section&id=2.5%20Dividends%20and%20Loss%20Per%20Share) The Board does not recommend any final dividend for 2022, and no interim dividend was declared; basic and diluted loss per share for continuing and discontinued operations in 2022 was 86.1 HK cents, an increase from 2021 [Dividends](index=11&type=section&id=2.5.1%20Dividends) No interim or final dividends were approved or paid in 2022 Approved and Paid Dividends | Dividend Type | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | 2022 Interim dividend (HK$0.00 per share) | – | 3,371 | | 2021 Final dividend (HK$0.00 per share) | – | 16,854 | | **Total** | **–** | **20,225** | - The Board does not recommend the payment of a final dividend for the year ended December 31, 2022[40](index=40&type=chunk)[76](index=76&type=chunk) [Loss Per Share](index=11&type=section&id=2.5.2%20Loss%20Per%20Share) Basic and diluted loss per share for continuing and discontinued operations was 86.1 HK cents in 2022 (2021: 80.8 HK cents), while loss per share from continuing operations was 36.5 HK cents (2021: 68.0 HK cents) Loss Per Share | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Basic and diluted loss per share from continuing and discontinued operations | (86.1) HK cents | (80.8) HK cents | | Basic and diluted loss per share from continuing operations | (36.5) HK cents | (68.0) HK cents | | Basic and diluted loss per share from discontinued operations | (49.6) HK cents | (12.8) HK cents | Loss and Number of Shares for Basic Loss Per Share Calculation | Item | 2022 (HK$ Thousand / Thousand Shares) | 2021 (HK$ Thousand / Thousand Shares) | | :--- | :--- | :--- | | Loss for the year attributable to owners of the company | (580,377) | (544,799) | | Less: Loss for the period from discontinued operations | 334,357 | 86,241 | | Loss from continuing operations | (246,020) | (458,558) | | Weighted average number of ordinary shares in issue | 674,150 | 674,150 | [Trade Receivables, Deposits and Payables](index=12&type=section&id=2.6%20Trade%20Receivables,%20Deposits%20and%20Payables) This section details the Group's trade receivables, deposits paid to property developers, and various payables, accrued expenses, and contract liabilities [Trade Receivables](index=12&type=section&id=2.6.1%20Trade%20Receivables) Trade receivables significantly decreased from HK$1,204,202 thousand in 2021 to HK$656,951 thousand in 2022, with notable reductions across all aging categories Aging Analysis of Trade Receivables | Aging | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 30 days | 265,143 | 472,948 | | 31 to 60 days | 16,254 | 95,016 | | 61 to 90 days | 13,932 | 74,765 | | 91 to 120 days | 14,622 | 35,942 | | 121 to 180 days | 21,695 | 71,500 | | Over 180 days | 325,305 | 454,031 | | **Total** | **656,951** | **1,204,202** | - The average credit period granted to customers by the Group ranges from **30 to 180 days**[3](index=3&type=chunk) [Deposits](index=13&type=section&id=2.6.2%20Deposits) Deposits paid to property developers (primarily for primary market property agency services) due from non-controlling interests and their related parties decreased from HK$1,402,039 thousand in 2021 to zero in 2022, with management expecting all deposits to be settled within one year - Deposits primarily refer to amounts paid by the Group to property developers to commence property agency services[5](index=5&type=chunk) - As of December 31, 2022, deposits due from non-controlling interests and their related parties were **HK$0** (2021: HK$1,402,039,000)[5](index=5&type=chunk) - These deposits are interest-free, refundable, and unsecured, and management expects all such deposits to be settled within one year after the reporting date[5](index=5&type=chunk) [Trade Payables and Accrued Expenses](index=13&type=section&id=2.6.3%20Trade%20Payables%20and%20Accrued%20Expenses) Trade payables and accrued expenses primarily consist of accrued other taxes, operating expenses, staff costs, and other sundry creditors - Trade payables and accrued expenses primarily include accrued other taxes, operating expenses, staff costs, and other sundry creditors[6](index=6&type=chunk) [Contract Liabilities](index=13&type=section&id=2.6.4%20Contract%20Liabilities) Contract liabilities, mainly from customer prepayments for services not yet rendered, significantly decreased from HK$837,505 thousand in 2021 to HK$25,642 thousand in 2022 Third-Party Contract Liabilities | Item | 2022 (HK$ Thousand) | 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Third-party contract liabilities | 25,642 | 837,505 | - Contract liabilities primarily arise from customer prepayments for services not yet rendered and are recognized as revenue upon satisfaction of performance obligations[7](index=7&type=chunk) [Discontinued Operations](index=14&type=section&id=2.7%20Discontinued%20Operations) The Group's Poly Consultants Group, primarily providing property agency services in China, was classified as a discontinued operation due to a reorganization agreement with Poly, and this section details the financial impact of this change - Discontinued operations refer to the business of Poly Consultants Group, primarily providing property agency services in China[131](index=131&type=chunk) [Business Reorganization](index=14&type=section&id=2.7.1%20Business%20Reorganization) The company entered into an agreement with Poly to sell the entire equity of Poly Consultants Group in exchange for Poly's 43.9% equity interest in Hopefluent China, making Hopefluent China a wholly-owned subsidiary and Poly Consultants Group ceasing to be a subsidiary on August 31, 2022 - The company entered into an agreement with Poly to conditionally agree to dispose of the entire issued share capital of Poly Consultants Group in consideration for a **43.9% equity interest** in Hopefluent China[11](index=11&type=chunk) - Upon completion of the reorganization, Hopefluent China will become an indirect wholly-owned subsidiary of the company, and Poly Consultants Group will cease to be a subsidiary of the company[11](index=11&type=chunk) - Poly Consultants Group was derecognized as a subsidiary of the company on **August 31, 2022** (the derecognition date)[12](index=12&type=chunk) [Financial Performance](index=14&type=section&id=2.7.2%20Financial%20Performance) For the period ended August 31, 2022, discontinued operations recorded a loss of HK$397,366 thousand and revenue of HK$2,792,666 thousand Calculation of Loss for the Period / Year from Discontinued Operations | Item | January 1 to August 31, 2022 (HK$ Thousand) | January 1 to December 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 2,792,666 | 4,496,736 | | Other income | 8,182 | 19,385 | | Selling expenses | (2,777,578) | (4,342,857) | | Administrative expenses | (168,958) | (279,668) | | Loss before tax | (148,039) | (86,891) | | Loss for the period / year from discontinued operations | (186,595) | (100,061) | | Loss on derecognition of discontinued operations | (210,771) | – | | **Total Loss** | **(397,366)** | **(100,061)** | - Staff costs for discontinued operations were **HK$1,254,342 thousand** (2021: HK$1,981,548 thousand)[10](index=10&type=chunk) [Cash Flows](index=15&type=section&id=2.7.3%20Cash%20Flows) For the period ended August 31, 2022, discontinued operations generated net cash inflow from operating activities of HK$520,793 thousand, but overall net cash outflow was HK$210,578 thousand Cash Flows from Discontinued Operations | Cash Flow Category | January 1 to August 31, 2022 (HK$ Thousand) | January 1 to December 31, 2021 (HK$ Thousand) | | :--- | :--- | :--- | | Net cash generated from / (used in) operating activities | 520,793 | (1,082,142) | | Net cash used in investing activities | (33,750) | (35,149) | | Net cash used in financing activities | (648,351) | (26,702) | | Net decrease in cash and cash equivalents | (161,308) | (1,143,993) | | Effect of foreign exchange rate changes | (49,270) | 39,852 | | **Net Cash Outflow** | **(210,578)** | **(1,104,141)** | [Net Assets Derecognized](index=16&type=section&id=2.7.4%20Net%20Assets%20Derecognized) As of the derecognition date, Poly Consultants Group's net assets were HK$299,580 thousand, and the derecognition resulted in a net cash outflow of HK$675,206 thousand Net Assets of Poly Consultants Group at Derecognition Date | Asset Category | Amount (HK$ Thousand) | | :--- | :--- | | Investment properties | 23,516 | | Property, plant and equipment | 73,228 | | Right-of-use assets | 111,040 | | Interests in associates | 37,816 | | Trade and other receivables | 1,504,694 | | Bank balances and cash | 675,206 | | Trade and other payables | (2,125,920) | | **Net Assets** | **299,580** | - The net cash outflow arising from derecognition was **HK$675,206 thousand**[19](index=19&type=chunk) [Restatement of Comparative Figures](index=16&type=section&id=2.7.5%20Restatement%20of%20Comparative%20Figures) To conform to the current year's presentation, the comparative consolidated statement of profit or loss and other comprehensive income and related notes have been restated as if the discontinued operations had ceased at the beginning of the comparative period, with no impact on financial position, performance, or cash flows - To conform to the current year's presentation, the comparative consolidated statement of profit or loss and other comprehensive income and related notes have been restated as if the discontinued operations for the year had ceased at the beginning of the comparative period[35](index=35&type=chunk) - The restatement had no impact on the Group's reported financial position, performance, or cash flows[35](index=35&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [2022 Full Year Market Review](index=17&type=section&id=3.1%202022%20Full%20Year%20Market%20Review) In 2022, China's real estate sector faced multiple challenges from global economic volatility, industry adjustments, and the COVID-19 pandemic, leading to significant declines in sales and investment, with market recovery still requiring time despite government support policies at year-end - In 2022, China's mainland real estate industry faced numerous challenges, affected by global economic volatility, industry restructuring, and the COVID-19 pandemic[53](index=53&type=chunk) - National commercial housing sales decreased by approximately **30%** year-on-year, and national real estate development investment also significantly declined[53](index=53&type=chunk) - Despite government policies introduced at year-end to support the real estate industry, recovery will take time[53](index=53&type=chunk) [Overall Business Review of the Group](index=17&type=section&id=3.2%20Overall%20Business%20Review%20of%20the%20Group) The Group's turnover for 2022 was HK$1,517,000 thousand, a decrease of approximately 43% year-on-year, with loss attributable to shareholders reaching HK$580,000 thousand and basic loss per share at 86.1 HK cents, and the Board not recommending a final dividend Group Overall Business Performance | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Turnover | HK$1,517,000,000 | HK$2,669,000,000 | | Year-on-year change in turnover | Decreased by approximately 43% | | | Loss attributable to shareholders | HK$580,000,000 | HK$545,000,000 | | Basic loss per share | 86.1 HK cents | 80.8 HK cents | - The Board does not recommend the payment of a final dividend for the year ended December 31, 2022[54](index=54&type=chunk) [Property Agency Business](index=18&type=section&id=3.3%20Property%20Agency%20Business) Property agency business turnover decreased by 43% to HK$1,426,000 thousand, primarily due to the challenging mainland real estate environment; the Group reorganized its cooperation with Poly, received increased shareholding from Country Garden Services, and is exploring "AI Home Viewing" digital operating models Property Agency Business Performance | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Turnover | HK$1,426,000,000 | HK$2,489,000,000 | | Decrease in turnover | 43% | | - The decrease in turnover was mainly due to the challenging environment in the mainland real estate industry, constrained by economic and pandemic uncertainties and developers' debt risks[55](index=55&type=chunk) - The Group reorganized its cooperation with Poly, acquiring Poly's **43.9% equity interest** in Hopefluent China and selling its equity interest in Poly Consultants Group to Poly[56](index=56&type=chunk) - The Group received an increased shareholding from Country Garden Services, which is expected to strengthen real estate brokerage and property value-added services[56](index=56&type=chunk) - The Group is committed to exploring digital operations and sustainable service models through its "AI Home Viewing" platform[56](index=56&type=chunk) - Currently, the Group's property agency business covers over **80 cities** of various sizes nationwide, with over **1,100 agency projects** and approximately **160 secondary market branches**[67](index=67&type=chunk) [Financial Services Business](index=19&type=section&id=3.4%20Financial%20Services%20Business) In 2022, the financial services business recorded a total transaction volume of approximately HK$512,000 thousand and turnover of approximately HK$91,000 thousand, a decrease from 2021, with the Group focusing on serving existing high-quality clients and prioritizing risk control through stringent vetting procedures Financial Services Business Performance | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Total transaction volume | HK$512,000,000 | | | Turnover | HK$91,000,000 | HK$180,000,000 | - The financial services business faced an overall market contraction, with the Group focusing on serving existing high-quality clients[68](index=68&type=chunk) - The Group employs more stringent vetting procedures to select real estate enterprises and high-net-worth individuals with high investment and financing needs, prioritizing risk control as a key operating principle[68](index=68&type=chunk) [Outlook for 2023](index=19&type=section&id=3.5%20Outlook%20for%202023) The Group anticipates market recovery in 2023, driven by government policies to stabilize the economy and support the real estate sector, expecting to reverse its disadvantage and continue to deepen its presence in key cities while expanding digital business opportunities - It is expected that in 2023, the mainland government will prioritize stable economic development, with real estate remaining a pillar industry of the national economy[69](index=69&type=chunk) - The government will fully support the market from both supply and demand sides by releasing more financial tools, improving financial and home purchase restrictions, and stimulating consumption through loan incentives[69](index=69&type=chunk) - With the fading of the pandemic's shadow, China's mainland economy has emerged from its trough, and with a recovery in real estate market sales, the Group's performance is expected to reverse its disadvantage[70](index=70&type=chunk) - The Group will continue to deepen its presence in key cities, consolidate its business foundation, maintain existing customer resources, and expand more business opportunities through new digital business initiatives[51](index=51&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Audit Committee](index=20&type=section&id=4.1%20Audit%20Committee) The company's Audit Committee, comprising three independent non-executive directors, has reviewed the audited financial statements for the year ended December 31, 2022 - The company's Audit Committee, consisting of three incumbent independent non-executive directors, has reviewed the audited financial statements for the year ended December 31, 2022[60](index=60&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=4.2%20Liquidity%20and%20Financial%20Resources) As of December 31, 2022, the Group maintained a sound financial position with cash and bank deposits of approximately HK$394,000 thousand and a current ratio of 3.72; total borrowings were approximately HK$232,000 thousand, with a gearing ratio of approximately 7.6%, no significant contingent liabilities, and low foreign exchange risk Overview of Liquidity and Financial Resources | Metric | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and bank deposits | HK$394,000,000 | HK$1,721,000,000 | | Current ratio | 3.72 | 2.32 | | Total borrowings | HK$232,000,000 | HK$516,000,000 | | Gearing ratio | 7.6% | 7.4% | - The Group's borrowings are denominated in RMB[71](index=71&type=chunk) - The Group had no significant contingent liabilities as of December 31, 2022[71](index=71&type=chunk) - The Group pledged investment properties and property, plant and equipment totaling approximately **HK$35,000,000** to banks to secure bank borrowings[72](index=72&type=chunk) - The majority of the Group's business transactions are denominated in HKD or RMB, thus not exposing it to significant foreign exchange fluctuation risks[73](index=73&type=chunk) [Employees and Environmental Policy](index=20&type=section&id=4.3%20Employees%20and%20Environmental%20Policy) As of December 31, 2022, the Group had approximately 7,300 full-time employees, viewing them as valuable assets, and is committed to fostering an environmentally friendly work environment by conserving water and electricity and encouraging recycling to minimize environmental impact - As of December 31, 2022, the Group had approximately **7,300 full-time employees**[62](index=62&type=chunk) - The Group regards its employees as its greatest and most valuable asset, with compensation packages determined by responsibilities, qualifications, performance, and seniority[62](index=62&type=chunk) - The Group is committed to creating an environmentally friendly work environment, conserving natural resources, and minimizing environmental impact by saving water and electricity and encouraging recycling of office supplies[74](index=74&type=chunk) [Capital Structure](index=21&type=section&id=4.4%20Capital%20Structure) As of December 31, 2022, the total number of shares in the company's issued share capital with a par value of HK$0.01 per share was 674,149,989 shares - As of December 31, 2022, the total number of shares in the company's issued share capital with a par value of **HK$0.01 per share** was **674,149,989 shares**[63](index=63&type=chunk) [Dividend Policy](index=21&type=section&id=4.5%20Dividend%20Policy) The Board does not recommend a final dividend for the year ended December 31, 2022, and no interim dividend was declared for the six months ended June 30, 2022 - On March 28, 2023, the Board did not recommend the payment of a final dividend for the year ended December 31, 2022[76](index=76&type=chunk) - No interim dividend was declared for the six months ended June 30, 2022[76](index=76&type=chunk) [Closure of Register of Members](index=21&type=section&id=4.6%20Closure%20of%20Register%20of%20Members) The company will suspend its share transfer registration from June 12, 2023, to June 15, 2023, to determine shareholders' eligibility to attend and vote at the 2023 Annual General Meeting - The company will suspend its share transfer registration from **June 12, 2023, to June 15, 2023**[64](index=64&type=chunk) - The suspension of share transfer registration aims to determine shareholders' eligibility to attend and vote at the 2023 Annual General Meeting[64](index=64&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=21&type=section&id=4.7%20Purchase,%20Redemption%20or%20Sale%20of%20the%20Company's%20Listed%20Securities) Since its listing date, the company has not redeemed any of its shares, nor has the company or any of its subsidiaries purchased or sold any of the company's shares - Since its listing date, the company has not redeemed any of its shares, nor has the company or any of its subsidiaries purchased or sold any of the company's shares[78](index=78&type=chunk) [Corporate Governance](index=21&type=section&id=4.8%20Corporate%20Governance) For the year ended December 31, 2022, the company generally complied with the Corporate Governance Code, with minor deviations regarding the separation of Chairman and CEO roles and Board meeting frequency, and directors confirm full compliance with the Model Code - For the year ended December 31, 2022, the company generally complied with the code provisions set out in Part 2 of Appendix 14 to the Listing Rules, the Corporate Governance Code, with certain deviations[85](index=85&type=chunk) - The directors confirm full compliance with the required standards set out in the Model Code[80](index=80&type=chunk) [Chairman and Chief Executive Officer](index=21&type=section&id=4.9%20Chairman%20and%20Chief%20Executive%20Officer) Mr. Fu Wai Chung serves as the company's Chairman and co-founder, possessing extensive industry experience; the company has no CEO position, with daily operations overseen by executive directors and senior management to ensure balanced power distribution - Mr. Fu Wai Chung is the company's Chairman and co-founder, possessing extensive industry experience[86](index=86&type=chunk) - The company has not established a Chief Executive Officer position, with daily operations and management overseen by executive directors and senior management[79](index=79&type=chunk) - The Board believes that despite the absence of a Chief Executive Officer position, the Board, composed of experienced individuals, holds regular meetings to discuss matters affecting the company's operations, ensuring a balanced distribution of power[79](index=79&type=chunk) [Company Secretary](index=22&type=section&id=4.10%20Company%20Secretary) Mr. Lo Hang Hong, a Hong Kong practicing solicitor, has been appointed as the company secretary, with Mr. Lo Yat Fung, an executive director, serving as his contact person - The company has appointed Mr. Lo Hang Hong, a Hong Kong practicing solicitor, as its company secretary, and the contact person for the company secretary is Mr. Lo Yat Fung, an executive director of the company[87](index=87&type=chunk) [2023 Annual General Meeting](index=22&type=section&id=4.11%202023%20Annual%20General%20Meeting) The company will hold its 2023 Annual General Meeting on Thursday, June 15, 2023, with the notice to be published on the Stock Exchange and company websites and dispatched to shareholders - The company will hold its 2023 Annual General Meeting on **Thursday, June 15, 2023**[89](index=89&type=chunk) - The notice convening the 2023 Annual General Meeting will be published on the Stock Exchange website and the company's website, and dispatched to the company's shareholders[89](index=89&type=chunk) [Acknowledgement](index=23&type=section&id=4.12%20Acknowledgement) The Board sincerely thanks the Group's clients, shareholders, and all employees for their support and contributions during the year; as of the date of this announcement, the Board comprises executive directors, non-executive directors, and independent non-executive directors - The Board sincerely thanks the Group's clients and shareholders for their support, and also thanks all Group employees for their tireless and dedicated contributions during the year[90](index=90&type=chunk) - As of the date of this announcement, the Board comprises executive directors Mr. Fu Wai Chung, Ms. Fu Man, Mr. Lo Yat Fung, and Mr. Fu Yee Lap; non-executive director Ms. Wu Yun; and independent non-executive directors Mr. Lam King Pei, Mr. Ng Keung, and Ms. Wong Lo Kwai Wah[83](index=83&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 2,973,645, a decrease of 24.4% compared to HKD 3,931,313 for the same period in 2021[2] - The company reported a loss before tax of HKD 641,650 for the six months ended June 30, 2022, compared to a profit in the same period of 2021[2] - The net loss attributable to owners of the company for the period was HKD 663,875, compared to a profit of HKD 41,938 in the prior year[5] - Total comprehensive loss for the period was HKD 814,090, a significant increase from a total comprehensive income of HKD 63,603 in the previous year[5] - Basic and diluted loss per share was HKD 72.26, compared to earnings of HKD 4.87 per share in the same period last year[5] - The revenue from property agency services was HKD 2,937,664 thousand, down 23.1% from HKD 3,821,157 thousand in the previous year[24] - Financing income, including interest income from receivables, was HKD 33,259 thousand, a decline of 58.1% compared to HKD 79,396 thousand in 2021[24] - The company reported a net cash used in financing activities of HKD (166,414) thousand for the period[14] - The company reported a loss of HKD 663,875 for the six months ended June 30, 2022, compared to a profit of HKD 41,938 in the same period of 2021[32][33] - The segment loss for property agency was HKD 384,600, while the financial services segment reported a profit of HKD 19,355[32] Cash Flow and Liquidity - The net cash used in operating activities for 2022 was HKD (125,746) thousand, compared to HKD 277,091 thousand in 2021[14] - The cash and cash equivalents at the end of the period were HKD 486,403 thousand, significantly down from HKD 2,973,056 thousand at the end of 2021[14] - The total cash and cash equivalents decreased by HKD 2,490,616 thousand from the beginning of the period[14] - As of June 30, 2022, the group maintained a cash and bank deposit balance of approximately HKD 487 million, down from HKD 1.721 billion as of December 31, 2021[77] - The current ratio as of June 30, 2022, was 2.16, compared to 2.32 as of December 31, 2021[77] - The total borrowings amounted to approximately HKD 381 million, down from HKD 516 million as of December 31, 2021, with a capital debt ratio of approximately 6.3%[77] Operational Changes and Strategy - The company is focusing on restructuring and improving operational efficiency to address the current financial challenges[2] - The company operates two reportable segments: property agency services and financial services, which require different business strategies[22] - The company has classified the assets and liabilities of the Poly Consulting Group as held for sale, with total assets amounting to HKD 2,784,011,000 and liabilities of HKD 1,834,244,000[53] - The company is in the process of a conditional agreement to sell its 43.9% stake in a subsidiary, which will result in the subsidiary becoming a wholly-owned subsidiary post-restructuring[49] - The group adjusted its cooperation model with Poly Development, taking over 43.9% of the equity in HeFu China and selling Poly Consulting Group, resulting in an impairment of goodwill of approximately HKD 206 million[73] Employee and Cost Management - Total employee costs for the six months ended June 30, 2022, were HKD 1,724,999, down from HKD 2,108,791 in the previous year, indicating a reduction of approximately 18.2%[37] - The group views employees as valuable assets, with approximately 18,600 full-time staff as of June 30, 2022[80] Market Conditions - The real estate market in mainland China faced significant challenges, with the top 100 property companies experiencing a sales decline of over 50% year-on-year in the first half of 2022[66] - The financial services business had a total transaction amount of approximately HKD 600 million, down from HKD 1.6 billion in the previous year, with revenue of approximately HKD 36 million compared to HKD 110 million in the prior year[74] Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules during the six months ending June 30, 2022[100] - The company secretary is a practicing lawyer, ensuring compliance with applicable laws and regulations[101] - The company has adopted the standard code of conduct for securities transactions by directors as per the listing rules and confirmed compliance[102] Shareholder Information - As of June 30, 2022, major shareholders held the following stakes: Mr. Fu Wei Cong with 340,369,807 shares (50.49%), Fu's Family Limited with 174,184,799 shares (25.84%), and China-net Holding Ltd. with 130,762,340 shares (19.40%)[93] - No stock options were granted, canceled, exercised, or lapsed during the reporting period[90] - The company has not repurchased any shares since its listing and has not purchased or sold any shares of the company or its subsidiaries[99]