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佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈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。 ETERNITY INVESTMENT LIMITED * 764 有關 截至二零二二年十二月三十一日止年度之全年業績公佈之 澄清公佈 謹此提述Eternity Investment Limited（永恒策略投資有限公司*）（「本公司」）日期為二零二 三年三月三十日之截至二零二二年十二月三十一日止年度之全年業績公佈（「全年業績公 佈」）。本公佈所用詞彙與全年業績公佈所界定者具有相同涵義。 董事會謹此就全年業績公佈之無意錯誤作出下列澄清： A. 全年業績公佈之英文及中文版本第13頁「其他分部資料－截至二零二二年十二月三十 一日止年度」一節項下，(1)物業投資分部的添置物業、廠房及設備（以千港元呈列）應 為285,936，而非155,681；及(2)綜合分部的添置物業、廠房及設備（以千港元呈列） 應為285,952，而非155,697；及 ...

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佈之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈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。 ETERNITY INVESTMENT LIMITED 永 恒 策 略 投 資 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：764） 截至二零二二年十二月三十一日止年度之 全年業績公佈 Eternity Investment Limited（永恒策略投資有限公司*）（「本公司」）董事會（「董事會」）公佈本公 司及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合業績連 同二零二一年比較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 4 156,103 272,165 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 81,529,000, a decrease of 47.2% compared to HKD 154,225,000 for the same period in 2021[5] - Gross profit for the same period was HKD 37,047,000, down from HKD 108,244,000, reflecting a significant decline in profitability[5] - The company reported a loss of HKD 66,231,000 for the period, compared to a profit of HKD 29,383,000 in the previous year, indicating a shift in financial performance[5] - Total comprehensive loss for the period was HKD 136,362,000, compared to a comprehensive income of HKD 33,656,000 in the prior year[8] - The company reported a basic and diluted loss per share of HKD 1.78 for the period, compared to earnings of HKD 0.77 in the same period last year[5] - The company reported a loss of HKD 15,633,000 for the six months ended June 30, 2022, compared to a profit of HKD 19,165,000 in the same period of 2021, indicating a shift to negative profitability[156] - The company reported a loss attributable to shareholders of HKD 66,229,000 for the six months ended June 30, 2022, compared to a profit of HKD 29,480,000 in the same period of 2021[194] Assets and Liabilities - Non-current assets as of June 30, 2022, amounted to HKD 2,581,664,000, a slight decrease from HKD 2,653,228,000 at the end of 2021[10] - Current assets totaled HKD 1,156,020,000, showing a marginal increase from HKD 1,148,458,000 as of December 31, 2021[10] - The company's total assets were HKD 3,737,684,000, down from HKD 3,801,686,000 at the end of the previous year[12] - The total equity attributable to owners of the company decreased to HKD 2,052,753,000 from HKD 2,193,442,000[12] - Total assets as of June 30, 2022, amounted to HKD 3,664,992,000, with liabilities totaling HKD 1,690,942,000[167] - The total liabilities reached HKD 1,614,529, with HKD 944,337 from the China segment[169] Cash Flow - The company reported a net cash inflow from operating activities of HKD 109,817,000 for the six months ended June 30, 2022, compared to HKD 200,654,000 in the same period of 2021, representing a decrease of approximately 45%[154] - The net cash outflow from investing activities was HKD 74,154,000 for the six months ended June 30, 2022, compared to an inflow of HKD 49,233,000 in the same period of 2021, indicating a significant shift in investment strategy[154] - The company experienced a net increase in cash and cash equivalents of HKD 26,805,000 for the six months ended June 30, 2022, down from HKD 193,293,000 in the previous year, reflecting a decline of approximately 86%[157] - As of June 30, 2022, the total cash and cash equivalents stood at HKD 71,908,000, a decrease from HKD 254,978,000 at the end of the same period in 2021, indicating a liquidity challenge[157] - The company’s financing activities resulted in a net cash outflow of HKD 8,858,000 for the six months ended June 30, 2022, compared to an outflow of HKD 56,594,000 in the same period of 2021, showing improved cash management[154] Revenue Segments - The property investment segment reported revenue of HKD 18,641,000, while the jewelry products segment generated HKD 39,422,000 in revenue[163] - Revenue from jewelry sales was HKD 39,422,000, down from HKD 40,789,000 in the previous year, reflecting a decline of 3.4%[179] - The group recognized government subsidies related to COVID-19 amounting to HKD 384,000 under the "Employment Support Scheme"[182] Investment and Expenses - The company recorded a depreciation expense of HKD 10,552 for property, plant, and equipment[171] - The total cost of sold inventory was HKD 35,050,000, compared to HKD 38,614,000 in the previous year, showing a reduction[191] - The total cost of property, plant, and equipment acquired during the six months ended June 30, 2022, was HKD 79,971,000, an increase from HKD 73,659,000 in 2021[196] - The impairment loss on property, plant, and equipment recognized in the income statement for the six months ended June 30, 2021, was HKD 3,515,000[196] Accounting and Standards - The group applied new accounting standards effective from January 1, 2022, which did not have a significant impact on the financial statements[161] - The expected credit loss provision for loans was HKD (1,241,000), compared to HKD (4,805,000) in the previous year, indicating an improvement[185] Other Financial Metrics - Interest income from bank deposits was reported at HKD 28,000, contributing to the overall financial performance[163] - The fair value changes of derivative financial instruments resulted in a gain of HKD 3,266[171] - The investment property fair value changes generated a gain of HKD 5,000[171] - The group reported a significant decrease in the fair value of financial assets, with a net loss of HKD (493,000) compared to a gain of HKD 61,930,000 in the previous year[179] - The company did not declare any interim dividends for the six months ended June 30, 2022, consistent with the previous year[192]

Financial Performance - The company reported a loss attributable to owners of HK$200.38 million in 2021, a 42% increase compared to the previous year[10]. - The loss was primarily due to a HK$117.54 million loss from changes in fair value of financial assets at fair value through profit or loss, contrasting with a gain of HK$140.51 million in the prior year[10]. - Revenue for the year ended December 31, 2021, was HK$272.17 million, a 23% increase from HK$221.76 million in 2020, driven by increases in jewelry sales, rental income, and trading gains[28]. - The profit attributable to owners of the Company for the year was a loss of HK$200,375,000, compared to a loss of HK$140,858,000 in the previous year[86]. - The Group's equity attributable to owners decreased to HK$2,193,442,000 in 2021 from HK$2,368,661,000 in 2020[86]. Segment Performance - The money lending business recorded a segment loss (before taxation) of HK$196.41 million, a 32% increase from the previous year, attributed to a HK$53.57 million increase in the allowance for expected credit losses[12]. - The sale of financial assets business reported a segment loss (before taxation) of HK$53.80 million, compared to a profit of HK$191.81 million in the previous year[11]. - The jewelry products business achieved a segment profit (before taxation) of HK$1.68 million, recovering from a loss of HK$13.10 million the previous year[13]. - The property investment segment loss (before taxation) decreased from HK$49.98 million in 2020 to HK$41.88 million in 2021, primarily due to the absence of a previous year's loss of HK$19.20 million and an increase in rental income of HK$10.56 million[19]. Investment and Financial Strategy - The company expects to adjust its equity securities portfolio and realize equity securities into cash as appropriate in 2022 due to uncertain market conditions[11]. - The Group's financial strategy includes leveraging cash generated from operations and borrowings to fund its activities[60]. - The Group is focused on managing its debt obligations while exploring opportunities for growth and expansion in its core business areas[64]. - The Group's investment strategy included a focus on acquiring undervalued securities in the Hong Kong market[115]. Credit Risk and Allowance for Expected Credit Losses - The allowance for expected credit losses (ECL) on financial assets rose from HK$198,470,000 in 2020 to HK$250,392,000 in 2021, reflecting an increase of HK$53,570,000 in loan receivables[44]. - The total allowance for ECL on loan receivables was HK$251,002,000, reflecting a HK$53,570,000 increase compared to the previous year[166]. - The Group will continue to closely monitor the performance of its loan portfolio, especially in light of the impacts from the COVID-19 pandemic[172]. - The Group's expected credit loss (ECL) allowance for loan receivables increased significantly from HK$123,727,000 to HK$262,391,000 year-on-year due to the transfer of loans to Stage 3 (credit impairment) and the impact of the COVID-19 pandemic on clients' financial conditions[174][175]. Property Investment and Development - The development of the second and third phases of the 580 Chinese acre land in Beijing is underway, with 279 residential serviced apartments and two office buildings planned[19]. - The Group plans to enhance its property investment business in 2022 to ensure the timely completion of the development phases in Beijing[19]. - The fair value of the investment property portion of the Shun Tak Property increased from HK$140,000,000 at December 31, 2020, to HK$164,500,000 at December 31, 2021, resulting in a gain of HK$3,800,000[198]. - The office leasing market in Hong Kong faced challenges, impacting the Group's rental income from the investment property portion[199]. Cash Flow and Borrowings - The Group's cash and cash equivalents amounted to HK$43,571,000 as of December 31, 2021, down from HK$54,125,000 in 2020[58]. - Outstanding borrowings as of December 31, 2021, were HK$625,774,000, a decrease from HK$668,080,000 in 2020[62]. - The Group issued HK$200,000,000 of 13% guaranteed secured notes due in 2022, secured by shares in a wholly-owned subsidiary and personal guarantees from executive directors[62]. Future Plans and Initiatives - The company plans to launch a business-to-business sales portal in Q2 2022 to enhance sales and marketing capabilities[13]. - The Group expects to launch its business-to-business sales portal in the second quarter of 2022, which is anticipated to enhance sales and marketing capabilities[180][183].

O ETERNITY INVESTMENT LIMITED 永 恒 策 略 投 資 有 限 公 司 * (於百慕達註冊成立之有限公司) (股份代號:764) 202 中 期 報 告 混合產品 泵自负责任公 只村黄页的赶張 FSC" C004888 ・国 代 目錄 頁次 公司資料 2 簡明綜合損益表 3 簡明綜合損益及其他全面收益表 4 簡明綜合財務狀況表 5 簡明綜合權益變動表 7 簡明綜合現金流量表 8 簡明綜合財務報表附註 10 管理層討論及分析 50 上市規則規定之附加資料 70 二零二一年中期報告 1 永恒策略投資有限公司 公司資料 董事會 執行董事 李雄偉先生 （主席兼行政總裁） 張國偉先生 陳健華先生 張國勳先生 獨立非執行董事 尹成志先生 吳向仁先生 黃德銓先生 公司秘書 陳健華先生 審核委員會成員 黃德銓先生（主席） 尹成志先生 吳向仁先生 薪酬委員會成員 吳向仁先生（主席） 李雄偉先生 尹成志先生 提名委員會成員 李雄偉先生（主席） 尹成志先生 吳向仁先生 財務委員會成員 陳健華先生（主席） 黃德銓先生 註冊辦事處 Clarendon House 2 Church Street Hamilt ...

Financial Performance - The company reported a loss attributable to owners of HK$140.86 million in 2020, representing a 33% improvement compared to the previous year[9]. - Segment profit (before taxation) from the sale of financial assets was HK$191.81 million in 2020, a turnaround from a loss of HK$79.27 million in 2019[10]. - The money lending business recorded a segment loss (before tax) of HK$148.77 million in 2020, compared to a profit of HK$72.50 million in 2019[11]. - The jewelry products business reported a segment loss (before taxation) of HK$13.10 million in 2021, down from a profit of HK$74,000 in the previous year[16]. - A significant gain of HK$140.51 million was recorded from changes in the fair value of financial assets, compared to a loss of HK$80.49 million in the previous year[9]. - The segment loss (before taxation) of the property investment business decreased from HK$119.01 million in 2019 to HK$49.98 million in 2020, an improvement attributed to the absence of a HK$49.78 million write-off from hotel villas[17]. - The Group recorded revenue of HK$221,757,000 for the year ended 31 December 2020, a 12% increase from HK$198,796,000 in the previous year[28]. - Loss attributable to owners improved by 33% to HK$140,858,000 from HK$209,148,000 in the previous year, mainly due to a HK$50,468,000 increase in gain on sale of financial assets[28]. - The sale of jewelry products reported a gross loss of HK$287,000, with the gross profit margin decreasing from 18% in 2019 to -0.41% in 2020[28]. - Gross profit for property investment increased by 12% to HK$11,785,000, with the gross profit margin rising from 41% to 44%[28]. Business Strategy and Development - The company plans to develop a business-to-business sales portal to enhance business development and sales orders, despite initial high costs[16]. - The company aims to develop additional sales channels for the Mainland China market in 2021[16]. - The company has modified its business strategy for the second and third phases of its 580 Chinese acre land in Beijing, shifting to leasing high-end serviced apartments[17]. - The development of the second and third phases of the Subject Land is expected to be completed in the first quarter of 2022[17]. - The Group is developing a business-to-business sales portal to enhance its sales capabilities, despite the initial high costs, aiming for long-term cost-effective global business expansion[121]. Impact of COVID-19 - An increase of HK$192.96 million in the allowance for credit losses on loan receivables was noted, attributed to the COVID-19 pandemic's impact on customer repayment abilities[11]. - The jewelry sales segment recorded a loss of HK$13.1 million in 2021, compared to a profit of HK$74,000 in the previous year, highlighting the impact of COVID-19[18]. - The company remains cautious about the ongoing COVID-19 pandemic while maintaining a proactive approach to cost control and financial strategy[23]. - The Group recorded a credit loss allowance of HK$197,432,000 for loan receivables, an increase of HK$192,958,000 compared to the previous year, primarily due to the COVID-19 pandemic's impact on default probabilities[119]. Financial Position and Liquidity - As of 31 December 2020, the Group's cash and cash equivalents amounted to HK$54,125,000, down from HK$140,550,000 in 2019[32]. - Outstanding borrowings as of 31 December 2020 were HK$668,080,000, an increase from HK$655,561,000 in 2019[34]. - The Group's liquidity was supported by cash generated from operations, equity, and borrowings[32]. - The Group's net current assets were HK$331,887,000, up from HK$210,194,000 in 2019, with a current ratio of 1.37 compared to 1.24 in 2019[37]. - The Group's total borrowings included a securities margin financing facility of HK$14,065,000 at a fixed interest rate of 6% per annum[37]. Share of Losses from Associates - The share of loss from associates increased by 198% to HK$98.18 million in 2020, primarily due to losses from Global Mastermind Holdings Limited[22]. - Global Mastermind reported significant losses due to a slump in its travel business and increased impairment losses on trade and loan receivables[22]. - The share of losses from associates amounted to HK$98,176,000 for the year ended 31 December 2020, including HK$76,484,000 from Global Mastermind Holdings Limited[32]. Audit and Governance Issues - The Board of Global Mastermind believes that the incidents leading to the loss were standalone events caused by certain then directors and/or officers, with no involvement from other personnel[187]. - The audit committee agrees with the implementation of reinforced internal control measures to prevent similar incidents in the future[193]. - The Board anticipates that the issues related to the incidents will not have any continuing effect on the consolidated financial statements for the year ending 31 December 2021[191]. - Moore Stephens, the auditor, was unable to express an opinion on the consolidated financial statements for the year ended 31 December 2020 due to insufficient audit evidence[182]. - The audit committee has agreed to implement enhanced internal control measures to prevent similar incidents in the future, indicating a proactive approach to risk management[196]. Future Outlook - The directors forecast a rebound in the global economy in the second half of 2021, contingent on successful vaccine deployment and ongoing policy support[159]. - The financial market recovery is advanced compared to the economic recovery, prompting the directors to monitor and adjust the Group's listed securities portfolio in 2021[160]. - The Group expects interest income from its money lending business in 2021 to decrease by 10% to 20% compared to 2020[161]. - The directors believe that the global economy will recover gradually as vaccines are rolled out, but the recovery depends on successful vaccination deployment and continued supportive fiscal and monetary policies[163].

Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 87,102,000, a decrease of 4.4% compared to HKD 91,085,000 for the same period in 2019[4]. - Gross profit for the period was HKD 49,339,000, down from HKD 59,655,000, reflecting a decline of 17.3%[4]. - The company reported a loss for the period of HKD 208,966,000, compared to a loss of HKD 110,111,000 in the previous year, indicating an increase in losses of 89.6%[4][6]. - Basic and diluted loss per share was HKD (5.47), compared to HKD (2.83) in the prior year, representing an increase in loss per share of 93.5%[6]. - The property investment segment reported a loss of HKD 46,555,000, while the jewelry sales segment incurred a loss of HKD 11,842,000, contributing to a total comprehensive loss of HKD 141,319,000 for the period[31]. - The lending segment generated revenue of HKD 44,305,000, but reported a significant loss of HKD 100,918,000, indicating challenges in this area[31]. - The company reported a pre-tax loss of HKD 231,942,000, with a tax credit of HKD 22,976,000, leading to a net loss of HKD 208,966,000 for the period[31]. - The company reported a loss attributable to owners of the company of HKD 208,757,000 for the six months ended June 30, 2020, compared to a loss of HKD 107,958,000 for the same period in 2019[68]. Assets and Liabilities - Total assets as of June 30, 2020, were HKD 3,632,831,000, a decrease from HKD 3,834,656,000 as of December 31, 2019[10]. - Total liabilities increased to HKD 1,446,553,000 from HKD 1,416,200,000, reflecting a rise of 2.1%[13]. - The company's equity attributable to owners decreased to HKD 2,191,855,000 from HKD 2,423,931,000, a decline of 9.6%[10]. - Cash and cash equivalents as of June 30, 2020, were HKD 111,692,000, compared to HKD 140,550,000 at the end of 2019, indicating a decrease of 20.5%[10]. - The total outstanding borrowings amounted to HKD 685,616,000 as of June 30, 2020, compared to HKD 655,561,000 at the end of 2019[169]. Cash Flow - For the six months ended June 30, 2020, the net cash used in operating activities was HKD (29,011) thousand, compared to HKD (9,541) thousand for the same period in 2019, indicating a significant increase in cash outflow[18]. - The net cash used in investing activities was HKD (691) thousand, a decrease from HKD (14,087) thousand in the previous year, reflecting reduced investment expenditures[18]. - The net cash generated from financing activities was HKD 4,809 thousand, a recovery from a net cash outflow of HKD (78,401) thousand in the prior period, showing improved financing conditions[18]. - The group reported a net decrease in cash and cash equivalents of HKD (24,893) thousand, compared to a much larger decrease of HKD (102,029) thousand in the same period last year[19]. Credit Loss Provisions - The group experienced a significant increase in credit loss provisions for trade receivables and loans due to the impact of COVID-19, affecting overall financial performance[22]. - Credit loss provisions for loans receivable amounted to HKD 133,716,000, while provisions for other receivables were HKD 709,000, and trade receivables were HKD 1,187,000[60]. - The company confirmed a credit loss provision of HKD 1,187,000 for trade receivables during the six months ended June 30, 2020, compared to HKD 8,000 for the same period in 2019[93]. - The company’s total accumulated credit loss provision increased from HKD 22,021,000 as of December 31, 2019, to HKD 155,737,000 as of June 30, 2020[91]. Dividends and Shareholder Returns - The company did not declare an interim dividend for the period[6]. - The company did not declare or pay any interim dividends for the six months ended June 30, 2020, consistent with the previous year[66]. Management Strategies - The management discussed potential strategies for market expansion and new product development in the upcoming quarters[4]. - QianTang anticipates that its strategic investment and financial services segment will become a growth driver, focusing on real estate investments and asset management, particularly in Europe and Asia[190]. - QianTang plans to enhance its pearl and jewelry business by participating in major jewelry exhibitions worldwide to optimize operational efficiency[190]. Financial Instruments and Fair Value - The fair value of financial instruments classified as Level 1 amounted to HKD 276,889,000, while Level 3 instruments were valued at HKD 4,712,000[140]. - The fair value of guaranteed notes was HKD 299,963,000 as of June 30, 2020, compared to HKD 299,841,000 as of December 31, 2019[148]. - The fair value of guaranteed notes was classified as level 3, with the most significant input being the discount rate[148]. Related Party Transactions - The company reported related party transactions with a loan receivable from Elite Prosperous amounting to HKD 38,437,000 as of June 30, 2020, consistent with the previous year[119]. - The company provided a loan of RMB 25,000,000 (equivalent to HKD 28,532,000) to Mr. Guan Jialin, with an annual interest rate of 9%[130]. Employee and Executive Compensation - The total remuneration for executive directors and the CEO was HKD 11,346,000 for the six months ended June 30, 2020, slightly up from HKD 11,316,000 in the same period of 2019[123]. - Employee costs for the six months ended June 30, 2020, were HKD 21,966,000, a decrease from HKD 22,675,000 in the previous year, primarily due to a restructuring of staff in the Beijing operations[182].

O ETERNITY INVESTMENT LIMITED 永 恒 策 略 投 資 有 限 公 司 * (Incorporated in Bermuda with limited liability) (於百慕達註冊成立之有限公司) (Stock Code 股份代號 : 764) 2019 ANNUAL REPORT 年報 《座供藏別 | --- | --- | |----------------------------------------------------------------------------------------------------|----------| | | | | | Contents | | | 目錄 | | | | | | | | Corporate Information 公司資料 | 2 | | Chairman's Statement 主席報告 | 4 | | Management Discussion and Analysis 管理層討論及分析 | 7 | | Corporate Governance Report 企業管治報告 | 46 | | Enviro ...

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of HKD 91,085 thousand, a decrease of 10.3% compared to HKD 101,629 thousand in 2018[7]. - The gross profit for the same period was HKD 59,655 thousand, down 17.5% from HKD 72,363 thousand in the previous year[7]. - The operating loss was HKD 84,370 thousand, significantly improved from an operating loss of HKD 185,656 thousand in 2018[7]. - The net loss for the period was HKD 110,111 thousand, compared to a net loss of HKD 213,439 thousand in the prior year, indicating a 48.2% reduction in losses[7]. - Basic and diluted loss per share was HKD 2.83, an improvement from HKD 5.55 in the same period last year[7]. - The company reported total revenue of HKD 1,807,051 thousand for the six months ended June 30, 2019, compared to HKD 2,655,704 thousand in the same period of 2018, indicating a decline[145]. - The company’s operating loss for the period was HKD (78,602) thousand, compared to a loss of HKD (107,958) thousand in the previous year[145]. - The company’s total comprehensive income for the period was HKD (220,056) thousand, reflecting a significant decrease from the previous year[145]. Assets and Liabilities - Total assets increased to HKD 4,006,633 thousand from HKD 3,971,193 thousand, reflecting a growth of 0.9%[13]. - Total liabilities rose to HKD 1,467,901 thousand, up from HKD 1,318,115 thousand, representing an increase of 11.4%[16]. - The company's equity attributable to owners decreased to HKD 2,543,461 thousand from HKD 2,655,704 thousand, a decline of 4.2%[13]. - The company reported cash and cash equivalents of HKD 40,552 thousand, down from HKD 140,628 thousand in the previous year[13]. - The company reported a total asset value of 236,781 thousand HKD as of December 31, 2018[192]. - The company has a current liability of (441) thousand HKD related to lease liabilities[192]. - The company recorded a decrease in received deposits and other payables amounting to (102,535) thousand HKD, compared to 28,186 thousand HKD previously[192]. Cash Flow - The company reported a net cash outflow from operating activities of HKD (9,541) thousand for the six months ended June 30, 2019, compared to a net inflow of HKD 299,103 thousand in the same period of 2018[146]. - The net cash outflow from investing activities was HKD (14,715) thousand, while in 2018, it was a net inflow of HKD 162,286 thousand[146]. - The company experienced a decrease in cash and cash equivalents of HKD (102,029) thousand for the six months ended June 30, 2019, compared to a decrease of HKD (63,191) thousand in the same period of 2018[151]. - As of June 30, 2019, the cash and cash equivalents stood at HKD 40,552 thousand, down from HKD 161,399 thousand at the end of the previous year[151]. - The company’s financing activities resulted in a net cash outflow of HKD (78,401) thousand, compared to HKD (335,821) thousand in the previous year[148]. - The company’s cash flow from financing activities included inflows from a director's loan and shareholder advances, totaling HKD 25,000 thousand and HKD 7,200 thousand respectively[148]. Lease Accounting - The company has adopted the new Hong Kong Financial Reporting Standards (HKFRS) and its amendments, effective from January 1, 2019, with no significant impact on financial performance or disclosures[154]. - The application of HKFRS 16 on leases has resulted in changes to accounting policies, replacing HKAS 17 and related interpretations[156]. - The company recognizes right-of-use assets at the commencement date of the lease, measured at cost, which includes initial direct costs and estimated costs for dismantling and restoring the asset[162]. - Lease liabilities are recognized at the present value of future lease payments, with adjustments made for changes in lease terms or assessments of purchase options[165]. - The company applies exemptions for short-term leases and low-value asset leases, recognizing lease payments on a straight-line basis over the lease term[159]. - The initial measurement of lease liabilities includes fixed payments and variable lease payments based on indices or rates[166]. - The company will reassess lease liabilities if there are changes in lease terms or market rental rates, adjusting the corresponding right-of-use assets accordingly[169]. - The right-of-use assets are presented as a separate item in the consolidated financial position statement[163]. - The company has implemented a systematic approach to evaluate whether contracts contain leases or lease components[157]. - The transition to HKFRS 16 has led to significant changes in accounting policies, impacting the recognition and measurement of lease-related assets and liabilities[161]. - The company recognized lease liabilities of HKD 264,967,000 and right-of-use assets of HKD 236,781,000 as of January 1, 2019[181]. - The average incremental borrowing rate applied by the company as of January 1, 2019, was 4.9%[183]. - The company confirmed a total undiscounted lease liability of HKD 696,620,000 as of January 1, 2019[183]. - The company chose not to recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less at the initial application date[180]. - The company adjusted the carrying amount of lease liabilities to reflect the right-of-use assets at the transition date[187]. - The company’s operating lease commitments as disclosed on December 31, 2018, amounted to HKD 701,449,000[183]. - The company’s right-of-use assets related to golf club land leases amounted to HKD 82,912,000[187]. - The company applied the transitional provisions of HKFRS 16 without restating prior periods for leases where it acts as a lessor[190]. - The company’s lease payments are set to increase at a fixed percentage, impacting the recognized lease liabilities[187]. - The company did not reassess contracts that were not previously identified as leases upon the initial application of HKFRS 16[178]. Future Outlook - The company aims to enhance its market presence and explore new investment opportunities in the upcoming quarters[7]. - The company’s investment in associates includes a receivable of 38,437,000 HKD, classified as long-term equity[200].

Financial Performance - In 2018, the company reported a loss attributable to owners of HK$586.09 million, a 200% increase compared to 2017[44] - The significant increase in loss was primarily due to a HK$203.69 million increase in loss on change in fair value of Hong Kong listed equities, a HK$233.63 million write-off of property, plant and equipment, and a HK$38.92 million allowance for credit losses on receivables[44] - Loss attributable to owners of the Company for the year ended 31 December 2018 amounted to HK$586,090,000, a 200% increase from HK$195,545,000 for the previous year[61] - The Group recorded a revenue of HK$188,037,000 for the year ended 31 December 2018, representing a 248% increase from HK$53,989,000 in the previous year[61] - The Group's equity attributable to owners decreased from HK$3,266,389,000 at the end of 2017 to HK$2,655,704,000 at the end of 2018[84] - The Group's net current assets were HK$783,497,000 as of December 31, 2018, compared to HK$834,571,000 in 2017, with a current ratio of 2.19, up from 1.84 in 2017[90] - The Group's return on financial assets at fair value through profit or loss was (41)% for 2018, down from (16)% in 2017[104] - The return on capital employed in the sale of jewelry products was (16)% in 2018, compared to (7)% in 2017, reflecting a decline in profitability[104] - The return on property investment decreased to 3% in 2018 from 5% in 2017, indicating reduced performance in this area[104] - The Group reported a segment loss of HK$289,126,000 in the sale of financial assets business for the year ended 31 December 2018, primarily due to a loss of HK$296,211,000 from changes in fair value of financial assets at FVTPL[108] Business Operations and Strategy - The company's money lending business achieved a 36% increase in interest income on loans, driven by unexpected growth in the second half of 2018[44] - The company plans to diversify credit risk by developing the Hong Kong listed companies segment, as listed companies generally have higher creditworthiness[44] - The company will closely monitor economic factors, investor sentiment, and fundamentals of investees to proactively adjust its portfolio in 2019[44] - The performance of the jewelry products business is expected to improve gradually due to increased sales and marketing efforts[47] - The sales team has increased its marketing efforts, leading to expectations of gradual improvement in the jewelry sales business over the coming years[48] - The Group aims to solidify its fundamentals by refining business operations and cautiously developing existing businesses in 2019[51] - The company plans to enhance its pearls and jewellery business while optimizing operational efficiency and productivity to maintain competitiveness[130] Property and Investment - The property investment segment experienced a deterioration in 2018, primarily due to a HK$233.62 million write-off of "construction in progress" and a HK$21.29 million allowance for credit losses on receivables from Mainland China debtors[50] - The disposal of the Guangzhou Property in June 2018 resulted in a loss of HK$10.99 million, but was deemed necessary to strengthen financial resources as it had not generated positive cash flow since acquisition[50] - Seven hotel villas on the Subject Land in Beijing were demolished, leading to a HK$233.62 million write-off, to make way for a new cultural business[50] - The second and third phases of the Subject Land are planned to include a five-star hotel, high-end serviced apartments, and other facilities, with a total gross floor area of 71,000 square meters[50] Economic Outlook - The global economic outlook for 2019 is uncertain due to challenges such as trade tensions between the US and Mainland China and the slowdown in Mainland China's economy[51] - The anticipated lowering of required reserve ratios by the People's Bank of China is expected to stimulate positive market sentiment and impact financial markets positively[183] Losses and Write-offs - A HK$233,621,000 write-off of "construction in progress" was recognized in the second half of 2018 due to the demolition of hotel villas for new business development[72] - The significant increase in losses on financial assets was attributed to a 220% rise in losses due to market conditions in 2018[108] - The loss arising from changes in fair value of financial assets was HK$296,765,000 for the year, compared to HK$92,526,000 in 2017[111] Employee and Operational Costs - The headcount of the Group increased to 96 employees in 2018 from 87 in 2017, with staff costs rising to HK$82,959,000 from HK$69,895,000[99] - Selling and distribution expenses increased by 39% from HK$3,842,000 in the year ended 31 December 2017 to HK$5,350,000 in the year ended 31 December 2018[73] - Administrative expenses amounted to HK$162,812,000 for the year ended 31 December 2018, a 62% increase from HK$100,573,000 for the previous year[73] Strategic Investments and Joint Ventures - A memorandum of understanding was signed on 4 October 2018 for a joint venture focused on property acquisition and development in the UK, particularly in student housing and serviced apartments[130] - Affluent Partners is focusing its investments on real estate and asset management sectors, especially in Europe and Asia[133] Challenges and Future Plans - The company is pursuing strategic measures, including asset disposals and refinancing, to restore cash flow and liquidity during this challenging period[165] - Hsin Chong must fulfill conditions for resuming trading by July 31, 2019, or face delisting, highlighting the urgency of its financial recovery efforts[173]