Financial Performance - The group recorded a total revenue loss of HKD 109.62 million for the six months ended June 30, 2022, compared to a revenue of HKD 127.47 million for the same period in 2021, representing a decrease of 186%[16]. - The group reported a pre-tax loss of HKD 201.62 million for the six months ended June 30, 2022, compared to a pre-tax profit of HKD 5.26 million for the same period in 2021[16]. - The brokerage and margin financing, corporate finance, asset management, and proprietary trading businesses generated a total income and other income of HKD 108.59 million, down from HKD 131.93 million in the previous year[16]. - The group's proprietary trading business recorded a negative income of HKD 115.12 million, a significant decrease from the income of HKD 116.89 million in the same period last year, marking a decline of HKD 232.01 million[16]. - Total revenue for the six months ended June 30, 2022, was HKD (109,624) million, compared to HKD 127,473 million in the same period of 2021[42]. - The group reported a loss attributable to equity shareholders of HKD (201,619) million for the six months ended June 30, 2022, compared to a profit of HKD 5,260 million in 2021[44]. - The basic and diluted loss per share for the six months ended June 30, 2022, was (5.506) HKD, compared to earnings of 0.144 HKD per share for the same period in 2021[110]. Revenue Breakdown - The brokerage and margin financing business recorded revenue of HKD 2.11 million, a significant decrease of approximately 72% compared to HKD 7.65 million in the same period last year[17]. - Commission income from brokerage services fell to HKD 0.86 million, down about 74% from HKD 3.25 million in the same period last year, due to decreased market activity and client trading interest[18]. - Corporate finance revenue increased to HKD 3.39 million, up approximately 15% from HKD 2.94 million in the same period last year, primarily driven by an increase in underwriting and placement services[21]. - Underwriting and placement service revenue reached HKD 1.09 million, a substantial increase of 10,800% compared to the previous year, attributed to the development of the bond issuance business[22]. - The asset management business recorded no revenue during the review period, a decline from HKD 3,000 in the same period last year, impacted by market volatility and investor redemptions[24]. Market Conditions - The macroeconomic environment remains challenging, with ongoing impacts from the COVID-19 pandemic and geopolitical tensions affecting market conditions[9]. - The company anticipates potential recovery in the Hong Kong IPO market in the second half of 2022, which may benefit its corporate financing business[14]. - The total amount raised through initial public offerings (IPOs) in Hong Kong during the first half of 2022 was only HKD 19.7 billion, a dramatic drop of 90.7% year-on-year[14]. - The Hang Seng Index closed at 21,859 points at the end of June 2022, down 6.6% from the end of December 2021[13]. Financial Position - As of June 30, 2022, the total cash and bank balance of the group was HKD 182.37 million, down from HKD 285.07 million as of December 31, 2021[33]. - The net current assets amounted to HKD 962.20 million, a decrease from HKD 1,582.24 million as of December 31, 2021, with a current ratio of 21.4 times compared to 11.3 times previously[33]. - The debt-to-equity ratio was 5,274.0% as of June 30, 2022, significantly higher than 629.1% as of December 31, 2021[33]. - The total assets less current liabilities were HKD 972.26 million as of June 30, 2022, down from HKD 1,602.43 million as of December 31, 2021[46]. - As of June 30, 2022, total equity amounted to HKD 288,740,000, a decrease from HKD 283,481,000 as of January 1, 2021[52]. Operational Changes - The company employed 65 staff as of June 30, 2022, a decrease from 70 staff as of June 30, 2021[40]. - The company did not recommend the payment of an interim dividend for the review period, consistent with the previous year[8]. - There were no significant acquisitions or disposals during the review period[35]. Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2022, was HKD 393,683,000, compared to HKD 250,937,000 for the same period in 2021, representing a 57% increase[59]. - The company incurred a financing cash outflow of HKD (494,162,000) for the six months ended June 30, 2022, compared to HKD (241,755,000) in 2021, reflecting an increase in financing activities[59]. - The company’s accumulated losses as of June 30, 2022, were HKD (937,180,000), slightly improved from HKD (942,440,000) as of January 1, 2021[52]. - The company’s cash and cash equivalents decreased by HKD 101,630,000 during the six months ended June 30, 2022, compared to an increase of HKD 8,619,000 in the same period of 2021[59]. Accounts Receivable and Payable - The total accounts receivable as of June 30, 2022, was HKD 917,404,000, compared to HKD 745,772,000 at the end of 2021[119]. - The provision for impairment of accounts receivable was HKD 537,575,000, slightly down from HKD 539,917,000 at the end of 2021[119]. - The aging analysis of accounts receivable shows that HKD 1,330 million (83%) is overdue between 31 to 90 days, while only HKD 14 million (less than 1%) is overdue for more than 180 days[134]. - The company reported accounts payable related to securities brokerage services of HKD 68,669 million as of December 31, 2021, with no new accounts payable reported for June 30, 2022[194]. Bond Issuance - The company issued USD 178 million in three-year bonds in February 2021 to repay USD 200 million due in April 2021, improving liquidity ratios[33]. - The company issued bonds totaling $178 million on February 9, 2021, with a fixed annual interest rate of 4.00%[200]. - The 2021 USD bonds are listed on the stock exchange and will mature on February 9, 2024[200].

| --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------| | | | | | | | | | 西嶺國修 SOUTHWEST SECURIT Southwest Securities International Securities Limited西證國際證券股份有限公司* (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 : 812 2027 Annual Report 年 報 | | | | * For i ...

Financial Performance - The company reported an interim performance for the six months ended June 30, 2021, with a comparison to the same period in 2020 provided in the report[5]. - Total revenue for the six months ended June 30, 2021, was HKD 127,473,000, a decrease of 1.1% from HKD 128,878,000 in the same period of 2020[45]. - The group's total revenue and other income for the review period was HKD 131.93 million, compared to HKD 134.29 million for the same period in 2020[18]. - The company reported a profit before tax of HKD 5,260,000, compared to a loss of HKD 127,210,000 in the previous year[45]. - Basic and diluted earnings per share were HKD 0.144, recovering from a loss of HKD 3.474 per share in the same period last year[45]. - The company reported a pre-tax profit of 5,260 thousand HKD for the six months ended June 30, 2021, compared to a pre-tax loss of 127,210 thousand HKD for the same period in 2020[93]. Market Conditions - Global confirmed COVID-19 cases exceeded 190 million, with over 4.15 million deaths, indicating a significant increase compared to January 2021[7]. - China's GDP growth rate for the first half of 2021 reached 12.7%, with forecasts of 8.5% and 5.6% growth for 2021 and 2022 respectively[8]. - The U.S. and EU GDPs are expected to grow by 6.6% and 4.8% in 2021, with continued growth projected for 2022 at 4.2% and 4.5% respectively[8]. - Oil prices rose from approximately $50 per barrel at the beginning of 2021 to over $70 per barrel by the end of June 2021 due to increased demand from economic recovery[11]. - International gold prices decreased from about $1,900 per ounce at the beginning of 2021 to approximately $1,800 per ounce by the end of June 2021, influenced by rising economic recovery and interest rate expectations[11]. - Bitcoin's price fluctuated from around $29,000 at the beginning of 2021 to nearly $65,000 during the first half, before falling back to about $35,000 by the end of June 2021 due to regulatory concerns[11]. Regulatory Environment - The company is monitoring geopolitical tensions, particularly between the U.S. and China, which may impact market conditions[10]. - The tightening of regulations in various sectors in China may slow the growth of leading companies in technology, education, and real estate[10]. Securities Market Overview - The average daily trading volume in the Hong Kong securities market for the first half of 2021 was HKD 188.2 billion, a year-on-year increase of 60.1%[15]. - The total market capitalization of the securities market increased by 39.4% year-on-year to HKD 52.8 trillion, up 11.2% from December 2020[15]. - The number of newly listed companies in the first half of 2021 was 46, a decrease of 28.1% year-on-year, while the IPO fundraising amount reached HKD 210.4 billion, an increase of nearly 130%[16]. Revenue Breakdown - The brokerage and margin financing business recorded a revenue of HKD 7.65 million, a decrease of approximately 55% from HKD 16.88 million in the previous year[19]. - The corporate finance business generated revenue of HKD 2.94 million, down about 69% from HKD 9.37 million in the same period last year[24]. - The asset management business recorded revenue of HKD 3,000, compared to no revenue in the same period of 2020[25]. - The group's trading business recorded revenue of HKD 116,890,000, an increase from HKD 102,640,000 in the previous six months[27]. - Other income and gains decreased to HKD 4,460,000 from HKD 5,420,000 due to a decline in bank interest income[28]. Expenses and Costs - Total expenses decreased significantly to HKD 126,670,000 from HKD 261,504,000, representing a reduction of approximately 51.6%[45]. - Employee costs rose to HKD 40,890,000 from HKD 32,980,000, attributed to performance bonuses linked to departmental business performance[29]. - Service fees and commission expenses decreased to HKD 6,440,000 from HKD 6,860,000, primarily due to reduced transaction volumes in brokerage and corporate finance[31]. - Financial costs decreased by approximately 5% to HKD 55,280,000 from HKD 58,010,000, due to lower interest payments on bonds[32]. Asset Management and Investments - The group's investment portfolio SP6 achieved a cumulative return rate of 27% as of June 30, 2021, outperforming the market[26]. - The group plans to establish two fixed-income focused funds in the second half of the year to expand its asset management scale[26]. - The group aims to enhance cross-border cooperation with its parent company to provide advisory services for quality domestic enterprises entering the Hong Kong capital market[24]. - The group plans to enhance asset management business positioning and expand product lines, including new fixed-income asset management products[33]. Financial Position - As of June 30, 2021, the group's cash and bank balances totaled HKD 395,800,000, up from HKD 382,200,000 at the end of 2020[35]. - The current ratio improved significantly to 10.2 times from 1.2 times, and the capital debt ratio decreased to 476.3% from 546.3%[35]. - The company’s total assets as of June 30, 2021, were reported at 1,208,531 thousand HKD, down from 1,391,161 thousand HKD at the end of 2020[97]. - Total assets less current liabilities amounted to HKD 1,675,904,000, compared to HKD 302,723,000 in the previous year, showing a significant increase[47]. - The company has no income tax expense for the period, maintaining a tax rate of 0%[45]. Employee and Management Changes - The group employed a total of 70 employees as of June 30, 2021, down from 84 employees a year earlier[42]. - Mr. Pu Rui resigned as Executive Director and CEO effective March 29, 2021[185]. - The company appointed Mr. Wu Jian as the Party Secretary and Chairman effective August 23, 2021, and September 6, 2021, respectively[184]. Corporate Governance - The company has adhered to the corporate governance code as outlined in Appendix 14 of the Listing Rules during the review period[186]. - The company has adopted the standard code for securities trading by directors as per Appendix 10 of the Listing Rules, confirming compliance by all directors[187]. - The audit committee reviewed the accounting principles and practices adopted by the group, discussing audit, internal control, and financial reporting matters[190].

Financial Performance - The total assets of the company amounted to approximately HKD 2.009 billion, with floating assets around HKD 283 million[35]. - The company recorded a net loss of approximately HKD 138 million, primarily due to expected credit losses on receivables from margin financing amounting to about HKD 150 million[35]. - The group recorded a pre-tax loss of approximately HKD 138.5 million, a decrease of 60.1% compared to a pre-tax loss of HKD 346.8 million in 2019[42]. - Net trading income increased by approximately HKD 114.2 million or 132.2%, reaching HKD 200.6 million compared to HKD 86.4 million in 2019[42]. - Brokerage and margin financing revenue decreased by approximately HKD 81.3 million or 74.6%, totaling HKD 27.7 million compared to HKD 109 million in 2019[43]. - Corporate finance revenue decreased by approximately HKD 13.7 million or 37.4%, amounting to HKD 22.9 million compared to HKD 36.6 million in 2019[44]. Market Overview - The total fundraising amount for initial public offerings (IPOs) in Hong Kong increased by 26.5% year-on-year to HKD 397.5 billion[35]. - The total number of listed companies on the main board and GEM reached 2,538, with a total market capitalization increasing by 24.5% to HKD 47.5 trillion[40]. - The anticipated government fiscal deficit for the year is projected to reach a historical high of HKD 30 billion due to significant pandemic-related expenditures[35]. - The global economic contraction is estimated at 3.5% to 4.3% by various institutions, marking the most severe recession since World War II[35]. - The group expects significant uncertainty in the economic outlook and new stock market in Hong Kong for the first half of 2021 due to ongoing pandemic impacts[47]. Business Strategy - The company plans to expand its asset management product line, separating fixed income and equity products to support investment banking activities such as bond underwriting and mergers and acquisitions[35]. - The company aims to achieve multi-departmental collaborative development to accelerate its business transformation[35]. - The group plans to enhance cross-border cooperation with its parent company to attract quality domestic enterprises to the Hong Kong capital market[47]. - The group plans to enhance overall strength by expanding financing channels, accelerating business transformation, controlling costs, and promoting cross-border collaboration starting in 2021[57]. Employee and Workforce - The company expresses gratitude for the dedication and efforts of its employees, enabling prudent progress[35]. - Employee costs rose to approximately HKD 97,000,000 from HKD 75,200,000 in 2019, despite a decrease in employee numbers and fixed costs[54]. - The group employed a total of 88 employees as of December 31, 2020, focusing on improving human resource management and employee training[67]. - The company maintains a competitive compensation system to attract and retain talent, regularly reviewing salaries based on market conditions and employee performance[136]. - The company emphasizes equal opportunity and anti-discrimination policies, ensuring a fair and respectful work environment[138]. - During the reporting period, the average training hours per employee were 3.6 hours for males and 3.9 hours for females, with 78% of male employees and 68% of female employees receiving training[151]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) matters, with senior management leading efforts to manage ESG risks and ensure effective internal controls[73]. - The company actively engages with stakeholders, including government, shareholders, employees, customers, suppliers, and the public, to address their concerns and expectations regarding ESG issues[77]. - The company has established appropriate and effective management policies and internal control systems for ESG matters during the reporting period[82]. - The company has received several awards and certifications for its environmental protection efforts, including the Hong Kong Environmental Excellence Award and various waste reduction and energy-saving certificates[89]. - The company is committed to sustainable development and regularly reviews relevant environmental protection laws and regulations to enhance its environmental measures[86]. - Total greenhouse gas emissions decreased from approximately 149.00 tons of CO2 equivalent in 2019 to about 126.46 tons in 2020, representing a reduction of approximately 15.13%[93]. Compliance and Risk Management - The company adheres to strict advertising regulations, ensuring that all marketing materials are accurate and do not mislead investors[165]. - The company is dedicated to protecting customer privacy and complies with the Personal Data (Privacy) Ordinance, ensuring confidentiality of customer data[169]. - The company has implemented a comprehensive emergency plan and conducts regular drills to ensure quick response to unexpected events[164]. - The company emphasizes a culture of integrity and strictly adheres to anti-corruption laws and regulations in all regions of operation[172]. - Employees are required to report any conflicts of interest and are subject to disciplinary actions for violations of anti-corruption policies[172]. - The group faced a fine of HKD 5 million due to regulatory violations related to anti-money laundering and terrorist financing activities during the reporting period[173].

Financial Performance - The company's total assets were approximately HKD 21.36 billion, with net assets of about HKD 4.22 billion[12]. - The company recorded a net loss of approximately HKD 3.45 billion, primarily due to increased provisions for margin loan projects[12]. - The total revenue and other income amounted to HKD 263,000,000, representing a 26.4% increase from HKD 208,100,000 in 2018, despite a pre-tax loss of HKD 346,800,000, which is a 76.3% increase from the previous year's loss of HKD 196,700,000[18]. - Brokerage and margin financing business generated revenue of HKD 109,000,000, up from HKD 100,800,000 in 2018, with margin financing revenue increasing by 11.3% to HKD 91,000,000[21]. - The corporate finance business recorded revenue of HKD 36,600,000, down from HKD 40,900,000 in 2018, despite successful completion of multiple IPOs and bond underwriting projects[24]. Market Overview - The average daily trading volume in the Hong Kong securities market decreased by 18.9% year-on-year to HKD 87.2 billion[17]. - The total market capitalization of the securities market increased by 27.6% year-on-year to HKD 38.2 trillion[17]. - The number of listed companies on the main board and GEM reached 2,449, with a year-on-year increase of 5.8%[17]. - The Hong Kong Stock Exchange successfully maintained its position as the world's leading market for initial public offerings, raising HKD 312.9 billion, an increase of 8.6% year-on-year[17]. - The average daily trading volume of the Stock Connect program decreased by 15.1% year-on-year to HKD 10.8 billion[17]. Operational Strategy - The company plans to focus on wealth preservation and management services while avoiding high-risk activities[13]. - The company will prudently adjust its operational strategies in response to global market conditions and the ongoing pandemic[12]. - The company aims to enhance corporate culture in 2020 by focusing on customer-centricity, teamwork, and compliance risk management[36]. - The company aims to become a leading boutique financial service provider globally, despite uncertainties in the global environment[12]. Financial Position and Liquidity - As of December 31, 2019, the total cash and bank balances of the group amounted to HKD 789.1 million, up from HKD 441.8 million in 2018, while net current assets reached HKD 1,946.4 million compared to HKD 7.3 million in 2018[39]. - The current ratio was reported at 16.0 times, significantly improved from 1.0 times in 2018, while the capital debt ratio stood at 367.0%, down from 6,529.8% in the previous year[39]. - The group completed a rights issue in April 2019, raising approximately HKD 156.9 million, which was capitalized to enhance liquidity and improve the capital debt ratio[41]. - In October 2019, the company issued perpetual securities totaling HKD 580 million to strengthen its capital base and support ongoing operations and business development[41]. - As of December 31, 2019, the group had no outstanding bank loans and maintained total bank standby credit of HKD 270 million, down from HKD 290 million in 2018[42]. Environmental Management - The company emphasizes sustainable development and environmental management, adhering to local laws and regulations, including the Waste Disposal Ordinance and Air Pollution Control Ordinance[65]. - The company received several environmental awards during the reporting period, including the Hong Kong Environmental Excellence Award and the Waste Reduction Certificate at the Excellence Level[66]. - The main source of greenhouse gas emissions comes from gasoline consumption by vehicles (Scope 1), purchased electricity (Scope 2), and paper usage (Scope 3)[72]. - The company actively implements measures to reduce greenhouse gas emissions, such as promoting paper-saving initiatives and energy-saving practices[72]. - The company has established effective management policies and internal control systems regarding environmental, social, and governance matters[61]. Employee Management - The company emphasizes the importance of attracting, nurturing, and retaining employees as its core competitive advantage[101]. - As of December 31, 2019, the company had a total of 88 employees, with a gender distribution of 51% male and 49% female[108]. - The age distribution of employees is as follows: 19.32% aged 30 or below, 43.18% aged 31-40, 26.14% aged 41-50, and 11.36% aged 50 or above[109]. - The company provides diverse training opportunities to enhance employee skills and productivity[112]. - The company maintains a competitive compensation system to attract and retain talent, regularly reviewing salaries based on market conditions and employee performance[103]. Corporate Governance - The board of directors consists of five executive directors and three independent non-executive directors, ensuring a diverse governance structure[162]. - The company has adopted a comprehensive corporate governance policy to enhance shareholder value and maintain investor confidence[160]. - The company has established measures to prevent bribery, fraud, and money laundering, demonstrating a commitment to ethical practices[157]. - The board is responsible for overseeing the overall business strategy and management planning, ensuring effective governance[165]. - The company has implemented a diversity policy for board members, emphasizing the importance of diversity in enhancing company performance[196].

Market Performance - The average daily trading volume in the Hong Kong securities market for the first half of 2019 was HKD 97.9 billion, a year-on-year decrease of 22.7% but a quarter-on-quarter increase of 10.3%[15]. - The Hang Seng Index closed at 28,543 points at the end of June 2019, up 10.4% from the end of December 2018[15]. - The total market capitalization of the securities market increased by 9.4% to HKD 32.7 trillion in the first half of 2019[15]. - There were 84 new listed companies in the Hong Kong market in the first half of 2019, a year-on-year decrease of 22.2%[15]. - The total amount raised from initial public offerings (IPOs) in Hong Kong increased by 34.7% year-on-year to HKD 69.5 billion in the first half of 2019[15]. - The number of main board listed companies reached 1,996 by the end of June 2019, an increase of 3.6% quarter-on-quarter[15]. - The average daily trading volume under the Stock Connect program was HKD 11.2 billion, a year-on-year decrease of 31.6%[15]. - The Hong Kong Stock Exchange's global IPO financing ranking dropped from first place in the previous year to third in the first half of 2019[15]. - The number of listed companies in the GEM segment decreased significantly, with only 6 new listings, a drop of 88.0% year-on-year[15]. - The market share of Group A participants in the Hong Kong Stock Exchange increased by over 1.5 percentage points in the first half of 2019[15]. Financial Performance - The group recorded total revenue and other income of HKD 153,732,000, representing a 99% increase compared to HKD 77,208,000 for the six months ended June 30, 2018[18]. - The brokerage and margin financing business generated revenue of HKD 67,164,000, up from HKD 44,901,000, marking a growth of 49%[19]. - Interest income from margin financing reached HKD 56,927,000, a significant increase of 73% from HKD 32,884,000 in the previous period[22]. - The corporate finance segment reported revenue of HKD 16,113,000, a decrease of 35% from HKD 24,874,000, primarily due to a reduction in financing arrangement service fees[24]. - The asset management business recorded revenue of HKD 507,000, down from HKD 1,100,000, as the group terminated its first hedge fund and is focusing on new investment opportunities[28]. - The trading business achieved revenue of HKD 47,699,000, a substantial increase from HKD 2,171,000, reflecting a recovery in market conditions[31]. - Other income and recoveries amounted to HKD 22,249,000, significantly higher than HKD 4,162,000, driven by increased bank interest income and recovery of previously provided bad debts[32]. Strategic Initiatives - The group plans to continue expanding its institutional and high-net-worth individual client base, enhancing credit and financial product services[23]. - The group completed two exclusive IPO projects in the first half of 2019, enhancing its market activity and future project acquisition capabilities[27]. - The group aims to strengthen its asset management business by increasing the scale of asset securitization and diversifying its investor base[28]. - The company plans to enhance its capital structure by exploring low-cost financing options and improving resource allocation efficiency[39]. - The focus for the second half of 2019 includes business innovation, management innovation, and further integration of domestic and international operations[38]. - The company aims to provide comprehensive financial services through effective collaboration among various business units and compliance with regulatory requirements[44]. Financial Position - As of June 30, 2019, the total cash and bank balances were HKD 412,300,000, down from HKD 441,800,000 at the end of 2018, with a current ratio of 28.9 times compared to 1.0 times previously[44]. - The capital debt ratio was 1,222.8% as of June 30, 2019, significantly improved from 6,529.8% at the end of 2018[44]. - The company issued a two-year bond worth USD 200,000,000 in April 2019 to repay HKD 780,000,000 and USD 150,000,000 in bonds due in May 2019, improving liquidity ratios[45]. - The company has no significant contingent liabilities or capital commitments as of June 30, 2019[50][51]. - The company reported a total comprehensive loss attributable to equity shareholders of HKD 59,849,000 for the six months ended June 30, 2019, compared to a loss of HKD 81,261,000 in the same period of 2018, representing a 26.4% improvement[65]. - Basic loss per share was HKD 2.465 for the first half of 2019, an improvement from HKD 3.315 in the same period of 2018[65]. - Non-current assets decreased from HKD 22,477,000 as of December 31, 2018, to HKD 68,857,000 as of June 30, 2019, indicating a significant increase in fixed assets and right-of-use assets[69]. - Current assets decreased from HKD 2,003,700,000 as of December 31, 2018, to HKD 1,711,397,000 as of June 30, 2019, primarily due to a reduction in financial assets at fair value through profit or loss[69]. - The company's total liabilities decreased significantly from HKD 1,996,383,000 as of December 31, 2018, to HKD 59,136,000 as of June 30, 2019, reflecting a reduction in debt obligations[69]. - The company reported a net asset value of HKD 126,845,000 as of June 30, 2019, compared to HKD 29,794,000 as of December 31, 2018, indicating a substantial improvement in equity position[69]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 277,746,000, compared to a net cash used of HKD 212,074,000 in the same period of 2018[163]. - The total cash and cash equivalents at the end of the period were HKD 412,296,000, down from HKD 548,984,000 at the end of June 2018[163]. - The company raised HKD 159,900,000 from issuing shares during the period[163]. - The financing activities resulted in a net cash outflow of HKD 302,644,000, compared to a net cash inflow of HKD 102,192,000 in the previous year[163]. - The total equity attributable to equity shareholders increased to HKD 366,182,000 as of June 30, 2019, from HKD 244,121,000 at the beginning of the year[159]. - The company incurred a cumulative loss of HKD (516,753,000) as of June 30, 2019[159]. - The company issued bonds amounting to HKD 1,569,960,000 during the period, with transaction costs of HKD 11,420,000[163]. - The company’s total liabilities decreased to HKD 239,337,000 from HKD 456,577,000 at the beginning of the year[159]. Accounting and Compliance - The company adopted new accounting standards effective January 1, 2019, which may impact future financial reporting[167]. - The company recognized right-of-use assets amounting to HKD 58,200,000 and lease liabilities of HKD 58,200,000 as of January 1, 2019, following the adoption of HKFRS 16[184]. - The total liabilities increased by HKD 58,200,000 due to the recognition of lease liabilities[183]. - The company opted for practical expedients, not separating non-lease components from lease components for certain contracts[175]. - The right-of-use assets are measured at cost less any accumulated depreciation and impairment losses, with adjustments made for any re-measurement of lease liabilities[189]. - The company has chosen to exempt low-value asset leases and short-term leases from recognizing right-of-use assets and lease liabilities[175]. - The transition impact on lease liabilities was calculated based on the present value of remaining lease payments discounted at the incremental borrowing rate as of January 1, 2019[176]. - The company will assess impairment of right-of-use assets in accordance with HKAS 36 as of the transition date[176]. - The new accounting policy replaces the previous lease accounting policy effective from January 1, 2019[189]. - The company will re-evaluate lease terms if significant events or circumstances affecting the ability to exercise renewal options occur[194]. - The carrying amount of right-of-use assets as of January 1, 2019, was HKD 57,395,000, which decreased to HKD 50,050,000 by June 30, 2019, reflecting a depreciation expense of HKD 7,345,000[197]. - Lease liabilities decreased from HKD 58,200,000 on January 1, 2019, to HKD 50,638,000 by June 30, 2019, after accounting for interest expenses of HKD 155,000 and payments of HKD 7,717,000[197]. - The adoption of the revised Hong Kong Accounting Standard No. 28 did not have a significant impact on the group's unaudited interim condensed consolidated financial statements[200]. - The group assessed its long-term interests in associates and joint ventures and continues to measure them at amortized cost under Hong Kong Financial Reporting Standard No. 9[200]. - The interpretation of uncertain tax positions under Hong Kong Accounting Standard No. 12 was considered, with the group believing that tax authorities are likely to accept its transfer pricing policies[200].