Financial Performance - As of December 31, 2019, the net asset value was approximately HK$128.9 million, a decrease of about 9.2% from HK$142.0 million in 2018, primarily due to an operational loss of about HK$49.9 million[25]. - The Group's investment portfolio value was about HK$100.9 million as of December 31, 2019, down from approximately HK$105.9 million in 2018[26]. - The gross proceeds from the disposal of investments and investment income decreased by approximately 37.6% to about HK$30.7 million in 2019, down from about HK$49.2 million in 2018[40]. - For the year ended December 31, 2019, the group's revenue was HK$2.4 million, a decrease from HK$3.8 million in 2018, with dividend income of about HK$2.2 million and interest income dropping to HK$0.2 million[41]. - The loss from operations for the year was approximately HK$49.9 million, slightly improved from HK$53.7 million in 2018, primarily due to a net fair value loss on the equity portfolio of about HK$24 million[42]. - Miji International's revenue for the year ended December 31, 2019, was RMB 246.3 million, a decrease of about 12.6% from RMB 281.7 million in 2018[114]. - Miji International's net profit for the year ended December 31, 2019, dropped to RMB 19.9 million, a decrease of about 16% from RMB 23.7 million in 2018[114]. - HSBC's profit for the year ended December 31, 2019, dropped to US$8.7 billion, representing a decrease of about 42% from US$15.1 billion in 2018[117]. - Tencent's revenue increased by about 20.7% from RMB 312.7 billion in 2018 to RMB 377.3 billion in 2019, driven by commercial payment services and online games[123]. - Profit attributable to Tencent's equity holders rose by about 18.6% to RMB 93.3 billion for the year ended December 31, 2019[123]. Investment Activities - Investments in listed equities increased to about HK$91.2 million in 2019 from HK$72.9 million in 2018[26]. - The Company invested in two callable equity-linked notes with a total nominal amount of about HK$8 million during the year[31]. - The company's investment in listed securities amounted to approximately HK$91.2 million as of December 31, 2019, up from HK$72.9 million in 2018, while non-listed stock-linked notes were about HK$8 million, compared to zero in 2018[32]. - The company has adopted a typical asset-only approach for strategic asset allocation, considering investment objectives, risk tolerance, and liquidity needs[50]. - Investments in private equity, including pre-IPO investments, are considered to enhance expected returns but will be approached cautiously due to higher liquidity risks[55]. Shareholder Information - The net asset value per share decreased to HK$0.14 in 2019 from HK$0.22 in 2018[25]. - As of December 31, 2019, the total number of issued shares increased to 942,821,250 from 655,121,250 in 2018, with share placements raising funds through the issuance of 130,800,000 shares at HK$0.155 each in May 2019 and 156,900,000 shares at HK$0.105 each in December 2019[88]. - No share options were exercised or cancelled during the year, with 7,300,000 options lapsed and 7,800,000 granted, totaling 15,600,000 outstanding options as of December 31, 2019[83]. Market Conditions - The Hang Seng Index and Hang Seng China Enterprises Index rose only 9.1% and 10.3% respectively in 2019, underperforming compared to other global markets[36]. - The Shanghai Composite Index and Shenzhen Composite Index increased by 22.3% and 35.9% respectively, reflecting a recovery in the Mainland market due to the trade deal with the US[39]. - The recent outbreak of COVID-19 has adversely affected the global business environment and investor sentiment, leading to a major correction in the US stock market[59]. - Concerns about the potential slowdown in the global economy are expected to increase risks and uncertainties in the Hong Kong market[60]. Operational Changes - The company plans to adjust its investment objectives and policies to include the use of derivatives for hedging purposes due to market volatility[61]. - The company will hold a higher percentage of its assets in cash or more liquid securities to manage liquidity risk[61]. - Administrative expenses decreased to about HK$26.5 million from HK$30 million, attributed to a reduction in depreciation costs[47]. - Recovery actions for outstanding convertible note receivables have been ongoing since 2014, with no recovery of company assets reported from the proceedings[49]. Asset Management - As of December 31, 2019, cash and bank balances amounted to approximately HK$24.8 million, down from HK$30.9 million in 2018[75]. - Net current assets as of December 31, 2019, were approximately HK$52.3 million, a decrease from HK$68.7 million in 2018[75]. - The gearing ratio as of December 31, 2019, was 2.1%, slightly down from 2.2% in 2018, indicating a steady decline[77]. - The company has no material capital commitments as of December 31, 2019[76]. Company Developments - Lamtex announced plans to sell its loan financing business due to the tightening regulatory environment and competition, with proceeds intended for investments in cultural tourism and healthcare in China, although the sale was terminated in January 2020[135]. - Lamtex plans to further develop its core business in electronic products while exploring new ventures in cultural tourism, elderly care services, fintech, and supply chain sectors[137]. - In December 2019, Newtree Group's shareholders approved the acquisition of the remaining 80% of Alpha Youth Limited for approximately RMB390 million, which is engaged in concrete production and sales in China[147]. - Over the next two years, Sands China plans to invest $15 billion to expand its hotel room, retail, and entertainment offerings on Cotai[155].

Interim Report 2019 中期 報告 FLAT 18, 9/F, BLOCK B, FOCAL INDUSTRIAL CENTRE, 21 MAN LOK STREET, HUNGHOM, KOWLOON, HONG KONG 香港九龍紅磡民樂街 21 號富高工業中心 B 座 9 樓 18 室 (CONTINUED INTO BERMUDA WITH LIMITED LIABILITY) (於百慕達存續之有限公司) (STOCK CODE 股份代號 : 810) TEL 電話 : (852) 3589 6710 FAX 傳真 : (852) 3102 2970 INTERIM REPORT 2019 中期報告 www.hk0810.com.hk/en/ CONTENTS 目錄 CHAIRMAN'S STATEMENT 2 主席報告 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS 簡明綜合損益表 20 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 簡明綜合權益變動報表 26 CORP ...

Financial Performance - The net asset value as of December 31, 2018, was approximately HK$142 million, a decrease of about 22.0% from HK$182.1 million in 2017[25]. - The decline in net asset value was primarily due to a net fair value loss in the equity investment portfolio, aligning with the overall drop in stock market indices, including a 13.6% decrease in the Hang Seng Index[25]. - The fair value of listed equity investments decreased to approximately HK$44.6 million as of December 31, 2018, down from HK$66.2 million in 2017[32]. - The Group recorded investment income and gross proceeds from the disposal of financial assets at fair value through profit or loss of about HK$49.2 million, representing a decrease of about 6.1% compared to the previous year[93]. - The Group's loss from operations amounted to HK$53.7 million, partly due to net fair value losses on listed equity securities of about HK$27.8 million[95]. - The Group's revenue for 2018 was HK$3.8 million, with dividend income from financial assets at fair value through profit or loss at about HK$2.4 million[94]. Investment Strategy - The investment strategy focuses on a diversified portfolio and a prudent but proactive investment approach[4]. - The company raised equity by HK$14.3 million through a placing of new shares during the year[25]. - The company reduced investments in lower-yield debt securities in response to the rising U.S. interest rate environment, while maintaining higher-yield debt securities for better returns[26]. - The Group plans to increase investments in private equity, particularly in pre-IPO opportunities, and has established an investment company in China[109]. - The new technology and innovation stock board in Shanghai will allow companies that are not yet profitable to list, creating more pre-IPO investment opportunities in biotech and fintech[110]. - The investment in China Oriented is expected to generate high returns if its IPO application is successful in the future[40]. Company Governance - The Company complied with all provisions under the Corporate Governance Code except for specific provisions regarding the appointment terms of non-executive directors and timely distribution of board papers[148][150]. - The Board of Directors consists of five members, including one Executive Director and three Independent Non-executive Directors, with roles of Chairman and CEO separated[157][160]. - The Company has no financial, business, or family relationships among Board members as of December 31, 2018[168]. - The Company’s governance practices align with the Corporate Governance Code, ensuring compliance and transparency[176]. - The Directors confirm that they are not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern[193]. Revenue and Profit Trends - Tencent Holdings reported a significant revenue increase to RMB312,694 million from RMB237,760 million, with a moderate profit increase to RMB78,719 million in 2018[57]. - AIA Group's net profit declined to US$3,226 million, but shareholder equity rose to about US$39,006 million, with new business value increasing by 22%[64]. - Sa Sa International's turnover increased from about HK$3.5 billion to about HK$4.1 billion, leading to a significant net profit increase[71]. - Newtree Group's revenue rose from HK$47.8 million to approximately HK$59.8 million for the six months ended September 30, 2018, with a turnaround to a profit before income tax of about HK$2.3 million[46]. - Sands China reported a net revenue increase to US$8,665 million and a net profit increase to about US$1,875 million, while shareholder's equity slightly decreased to about US$4,409 million[87]. Market Conditions - The Hang Seng China Enterprises Index and GEM Board Index fell by 13.5% and 44.5%, respectively, during the year[25]. - The trade truce between China and the U.S. in December 2018 improved investor sentiment, contributing to a significant rebound in the stock market since early 2019[108]. - HSBC is considered a leading Hang Seng Index constituent, with potential for share price increase if investor sentiment improves post trade resolution between China and the US[48]. Operational Highlights - The company had 32 employees as of December 31, 2018, compared to 27 employees as of December 31, 2017[142][145]. - The Company held its Annual General Meeting (AGM) once during the year, with all directors present[165]. - The attendance of the directors at the AGM was 100%, with each director attending the meeting[165]. - The internal audit function has been primarily provided by professional firms or individual consultants due to the Company's small operations[199]. Financial Position - As of December 31, 2018, cash and bank balances amounted to approximately HK$30.9 million, an increase from HK$22.5 million as of December 31, 2017[122]. - The net current assets as of December 31, 2018, were approximately HK$68.7 million, down from HK$81.7 million as of December 31, 2017[122]. - The gearing ratio decreased to 2% as of December 31, 2018, compared to 3% as of December 31, 2017[124]. - The Group's property and equipment amounted to approximately HK$11.6 million as of December 31, 2018, down from HK$16.3 million as of December 31, 2017[125].