Revenue and Profitability - Revenue for the six months ended June 30, 2023, was HKD 81,665,000, a slight increase of 0.17% compared to HKD 81,529,000 in the same period of 2022[10] - Gross profit decreased to HKD 35,118,000, down 5.0% from HKD 37,047,000 year-on-year[10] - Investment and other income surged to HKD 19,830,000, a significant increase of 214.5% from HKD 6,322,000 in the previous year[10] - The total comprehensive loss for the period was HKD 136,636,000, compared to a loss of HKD 66,229,000 in the previous period, indicating a worsening of 106.5%[17] - The company reported a total revenue from investment properties and operating rights of HKD 20,047,000, compared to HKD 18,641,000 in the previous year, showing an increase of about 7.5%[60] - Revenue from jewelry product sales increased to HKD 43,968,000 in 2023 from HKD 39,422,000 in 2022, marking an increase of 11.5%[47] Losses and Financial Performance - Operating loss improved to HKD 17,989,000, compared to a loss of HKD 38,805,000 in the same period last year[10] - Loss before tax decreased to HKD 52,350,000, down 22.4% from HKD 67,464,000 year-on-year[10] - The net loss for the period was HKD 51,025,000, a reduction of 22.9% compared to HKD 66,231,000 in the previous year[10] - Basic and diluted loss per share improved to HKD 1.38, compared to HKD 1.78 in the same period of 2022[10] - The total loss for the period attributable to the company's owners was HKD 51,025,000, a decrease from HKD 66,229,000 in the previous year, indicating an improvement of approximately 22.9%[62] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 3,349,653,000, down from HKD 3,457,470,000 at the end of 2022[13] - Total equity decreased to HKD 1,702,499,000 from HKD 1,793,416,000 at the end of the previous year[14] - Current liabilities decreased to HKD 1,095,295,000 from HKD 1,119,801,000 at the end of 2022[14] - As of June 30, 2023, total liabilities amounted to HKD 1,647,154,000, a decrease of 1.0% from HKD 1,664,054,000 as of December 31, 2022[15] - The company’s total assets less current liabilities stood at HKD 2,254,358,000 as of June 30, 2023, down from HKD 2,337,669,000 as of December 31, 2022, indicating a decrease of 3.5%[15] Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2023, was HKD 29,931,000, a significant decrease of 72.7% compared to HKD 109,817,000 for the same period in 2022[20] - The company incurred a net cash outflow from investing activities of HKD 14,415,000 for the six months ended June 30, 2023, compared to HKD 74,154,000 in the same period of 2022[20] - The company’s financing activities generated a net cash inflow of HKD 3,641,000, a recovery from a net cash outflow of HKD 8,858,000 in the previous year[20] - The group’s total outstanding borrowings increased to HKD 704,596,000 from HKD 664,809,000 as of December 31, 2022[162] Credit Risk and Provisions - The expected credit loss provision for loans was HKD 2,018,000, indicating a cautious approach to credit risk management[39] - The expected credit loss provision for receivables was HKD 2,018,000 for the six months ended June 30, 2023, a decrease of HKD 555,000 compared to the same period in 2022[192] - The provision for expected credit losses included HKD 109,000 for Stage 1 loans, HKD 482,000 for Stage 2 loans, and HKD 2,609,000 for Stage 3 loans[194] Operational Strategies and Future Plans - The company is actively taking measures to recover receivables to improve operating cash flow and financial condition[26] - The company plans to implement various sales and marketing strategies to increase occupancy rates in serviced apartments in Beijing, China[26] - The company is reviewing its investments and considering liquidating certain financial assets to enhance cash flow[26] - The company is exploring multiple options for raising operational funds with various financial institutions[26] Shareholder and Director Transactions - The company has a total of HKD 6,666,000 payable to joint ventures as of June 30, 2023[104] - The company provided personal guarantees for a total loan amount of HKD 200,000,000 by executive director Li Xiongwei[128] - The company had a cash advance balance of HKD 1,500,000 owed by executive director Zhang Guoxun as of June 30, 2023, after repaying HKD 500,000 in May 2023[130] Legal and Compliance Matters - The company is negotiating a binding settlement agreement with Client N regarding a loan secured by 100% of the issued shares of a Hong Kong investment holding company[191] - Legal actions are ongoing against Client J for an outstanding principal of HKD 25,000,000, with a court ruling requiring repayment within ten days of the judgment[199] - The company has obtained a court order to freeze assets worth approximately HKD 136,855,000 from Client H, with a recent court ruling requiring repayment within 30 days[200]

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） 截至二零二三年六月三十日止六個月 之中期業績公佈 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」）截至二零二三年六月三十日止六個月之未經審核簡明綜合業 績連同二零二二年比較數字如下： 簡明綜合損益及其他全面收益表 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 4 81,665 81,529 ...

Financial Performance - The company reported a loss attributable to owners of HK$272.77 million in 2022, a 36% increase compared to the previous year[12]. - Total revenue for the Group decreased by 43% to HK$156,103,000 in 2022 from HK$272,165,000 in 2021, mainly due to a trading loss of HK$9,850,000 and a decrease in interest income of HK$35,940,000[28]. - The loss attributable to owners of the Company for the year ended December 31, 2022, was HK$272,772,000, a 36% increase from HK$200,375,000 in 2021, primarily due to the absence of a one-off gain from the disposal of an associate[29]. - The Group shared a loss of HK$17.70 million from investments in associates in 2022, a 9% decrease compared to the previous year, attributed to improved financial performance of an associate[22]. - The Group recorded a tax credit of HK$28,839,000 for the year ended December 31, 2022, resulting from various deferred tax adjustments[46]. Business Segments Performance - The sale of financial assets business recorded a segment loss (before taxation) of HK$82.15 million, a 53% increase from last year[13]. - The money lending business showed a segment loss (before tax) of HK$148.85 million, but this represented a 24% improvement compared to the previous year[14]. - The jewelry products business reported a segment profit (before taxation) of HK$1.59 million, a 5% decrease due to a slowdown in sales orders[18]. - The property investment business achieved a segment profit (before taxation) of HK$13.32 million, a turnaround from a segment loss of HK$41.88 million in 2021[18]. Impairments and Losses - The impairment loss on goodwill was recorded at HK$28.80 million in 2022[12]. - A loss of HK$69,898,000 was recorded from the change in fair value of financial assets at FVTPL at the end of the reporting period[37]. - An impairment loss of HK$28,802,000 was recognized for goodwill related to the acquisition of Smart Title Limited[38]. Revenue and Profit Margins - The gross profit from the jewelry product business increased by 6% to HK$11,215,000 in 2022, with a gross profit margin rising from 12% to 14%[30]. - The gross profit for the property investment business increased by 4% to HK$19,660,000 in 2022, with the gross profit margin increasing from 50% to 52%[34]. - The jewelry products business generated revenue of HK$82,397,000 for the year ended December 31, 2022, a decrease of 9% from HK$90,764,000 in the previous year[129]. Cash Flow and Financial Position - As of December 31, 2022, the Group's cash and cash equivalents amounted to HK$34,765,000, a decrease from HK$43,571,000 as of December 31, 2021[52]. - Outstanding borrowings as of December 31, 2022, were HK$664,809,000, up from HK$625,774,000 as of December 31, 2021[52]. - The gearing ratio increased to 37% as of December 31, 2022, compared to 29% as of December 31, 2021[59]. - The Group's net current liabilities were HK$241,897,000 as of December 31, 2022, compared to net current assets of HK$148,728,000 as of December 31, 2021[60]. Strategic Plans and Future Outlook - The company plans to enhance marketing and leasing activities in 2023 to achieve a high occupancy rate for properties on the Subject Land[18]. - The company aims to closely monitor the performance of its loan portfolio and take active actions for collecting problem loans in 2023[14]. - The company will adjust its equity securities portfolio and realize equity securities into cash as appropriate in 2023 due to a challenging macroeconomic environment[13]. - The Group expects interest income from its money lending business in 2023 to remain the same as in 2022[175]. Risks and Challenges - The company acknowledges the principal risks including strategic risk, economic risk, and credit risk that may impact financial conditions and future performance[199]. - Economic risk includes potential downturns affecting performance through increased bad debts and lower asset values[200]. - The global macroeconomic environment remains challenging in 2023 due to high inflation and ongoing geopolitical tensions[173]. Audit and Compliance - The independent auditors expressed a qualified opinion on the Group's consolidated financial statements for the year ended December 31, 2022, related to the share of results of associates and other comprehensive expenses[184]. - The audit qualification from the previous year continues to affect the comparability of the current year's figures and the corresponding figures[189]. - The audit committee discussed the audit qualification with HLB during a meeting held on March 30, 2023[195].

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].