香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內 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 就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任 何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：851） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 盛源控股有限公司（「本公司」，連同其附屬公司，統稱「本集團」）董事會（「董 事」，統 稱「董 事 會」）公 佈，本 集 團 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度（「報 告 期 間」）之 綜 合 業 績 連 同 截 至 二 零 二 一 年 十 二 月 三 十 一 日 止 年 度同期之比較數字如下： ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 42,588,000, a significant increase of 137.5% compared to HKD 17,955,000 for the same period in 2021[15] - The company reported a net profit of HKD 4,652,000 for the six months ended June 30, 2022, compared to HKD 1,178,000 for the same period in 2021, representing a year-on-year increase of 295.5%[15] - The total comprehensive income for the period was HKD 4,606,000, up from HKD 1,163,000 in the previous year, indicating a growth of 295.5%[15] - The company’s basic earnings per share for the period was HKD 0.12, compared to HKD 0.03 for the same period in 2021, marking an increase of 300%[15] - The group reported a profit before tax of HKD 9,102,000 for the first half of 2022, compared to HKD 3,924,000 in the same period of 2021, marking an increase of 132.5%[42] - The company's profit attributable to owners for the six months ended June 30, 2022, was approximately HKD 4,652 million, a significant increase from HKD 1,178 million for the same period in 2021, representing a growth of 295%[60] - Basic and diluted earnings per share for the first half of 2022 were approximately HKD 0.12 and HKD 0.10, respectively, compared to HKD 0.03 for both in the same period of 2021[127] Financial Position - The net current liabilities as of June 30, 2022, were approximately HKD 43,751,000, raising concerns about the company's ability to continue as a going concern[13] - As of June 30, 2022, the company's non-current assets decreased to HKD 17,985 million from HKD 27,590 million as of December 31, 2021, representing a decline of approximately 34.8%[17] - Current assets increased significantly to HKD 157,625 million from HKD 131,317 million, marking an increase of about 19.9%[17] - The company's cash and cash equivalents decreased to HKD 61,507 million from HKD 69,100 million, a reduction of approximately 11.5%[24] - The total equity of the company as of June 30, 2022, was HKD (26,702) million, an improvement from HKD (31,308) million as of December 31, 2021, reflecting a reduction in capital deficit of approximately 14.5%[20] - The group's current assets and current liabilities were approximately HKD 157.6 million and HKD 201.4 million, respectively, compared to HKD 131.3 million and HKD 47.6 million as of December 31, 2021[147] - The group's debt as of June 30, 2022, was approximately HKD 144.8 million, an increase from HKD 140.4 million as of December 31, 2021[147] - The net debt as of June 30, 2022, was approximately HKD 26.7 million, a decrease from HKD 31.3 million as of December 31, 2021, attributed to positive operational performance[147] Costs and Expenses - The company incurred a financing cost of HKD 4,673,000, which increased from HKD 3,276,000 in the previous year, reflecting a rise of 42.6%[15] - Employee costs rose to HKD 6,616,000 from HKD 4,902,000, reflecting an increase of 34.9%[15] - The group incurred total employee costs of HKD 6,616,000 in the first half of 2022, up from HKD 4,902,000 in the previous year, indicating a rise of 34.8%[55] - The company reported other losses of HKD 7,471,000 for the period, compared to a loss of HKD 83,000 in the previous year, indicating a significant increase in losses[15] Receivables and Liabilities - Trade and other receivables impairment losses amounted to HKD 7,647,000, significantly higher than HKD 1,167,000 in the previous year, indicating a rise of 554.5%[15] - Trade and other receivables increased to HKD 49,630 million from HKD 28,585 million, a substantial increase of approximately 73.6%[17] - The company's liabilities increased significantly, with current liabilities rising to HKD 201,376 million from HKD 47,550 million, indicating a substantial increase of approximately 322%[17] - Trade receivables as of June 30, 2022, amounted to HKD 52,025 million, up from HKD 29,555 million as of December 31, 2021, indicating an increase of 76%[74] Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2022, was HKD 6,105 million, compared to HKD 8,482 million for the same period in 2021, indicating an improvement of about 28%[24] - The company issued convertible bonds during the period, resulting in net cash inflow of HKD 50,100 million in 2021, which was not repeated in 2022[24] - The net proceeds from the issuance of convertible bonds amounted to approximately HKD 149.8 million, with HKD 99.8 million used to offset shareholder loans and HKD 50.1 million allocated for working capital[168] Corporate Governance - The audit committee consists of three non-executive directors, including the chairperson, Ms. Huang Qin, and has reviewed the interim results for the six months ended June 30, 2022[174] - The remuneration committee, composed of three independent non-executive directors, has provided advice on the employment policies and remuneration of the company's directors and senior management for the six months ended June 30, 2022[175] - The nomination committee has reviewed the structure and composition of the board and made recommendations for changes as necessary, ensuring the independence of non-executive directors[176] - The company has maintained high standards of corporate governance and has complied with the corporate governance code, with the exception of the separation of roles between the chairman and CEO, which was addressed on May 20, 2022[178] - The board of directors includes both executive and non-executive members, ensuring a balance of power and independence[184] Future Outlook and Strategy - The company is focused on expanding operations and improving financial performance through various measures[29] - The company plans to expand its existing operations by providing one-stop financial services to high-net-worth individuals and enterprises from mainland China, including investment banking and asset management services[141] - The company aims to launch various funds in the second half of 2022 to meet the demand for overseas investment opportunities from mainland financial institutions and high-net-worth individuals[141] - The company is confident in achieving sustainable growth in the second half of 2022, despite the challenging market conditions[138]

Financial Performance - For the year ended December 31, 2021, the group's revenue slightly decreased to HKD 43.3 million, down 3% from approximately HKD 44.5 million for the year ended December 31, 2020[8]. - The profit for the year ended December 31, 2021, was approximately HKD 4.7 million, a decrease of 61% compared to HKD 12 million for the year ended December 31, 2020[8]. - Revenue from securities brokerage and financial services decreased by 62% to approximately HKD 12.3 million, down from HKD 32.5 million in 2020[11]. - The group recorded a net profit of approximately HKD 4,400,000 for the year ended December 31, 2021, down from HKD 12,000,000 in 2020, representing a decline of about 63.33%[68]. - The net cash inflow from operating activities for the year was approximately HKD 6,600,000, compared to HKD 7,700,000 in 2020, indicating a decrease of about 14.29%[68]. Asset Management - The asset management division's total managed assets increased by nearly 16% to approximately HKD 1.9 billion, up from HKD 1.7 billion in 2020[14]. - The asset management division recorded segment revenue of approximately HKD 29.4 million, an increase of about 144% from HKD 12 million in 2020[14]. - The segment profit for asset management was approximately HKD 22.3 million, a significant increase of about 569% from HKD 3.3 million in 2020[14]. - The group aims to develop business opportunities in the asset management sector while strictly controlling costs[14]. Customer Accounts and Trust - As of December 31, 2021, Sheng Yuan Securities maintained 653 customer accounts, a decrease from 727 accounts as of December 31, 2020[10]. - Customer trust bank accounts increased to approximately HKD 30.3 million, a 139% increase from HKD 12.6 million as of December 31, 2020[10]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance accountability[38]. - The board is responsible for formulating the group's strategy and policies, approving annual budgets, and overseeing daily operations[43]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules, with some deviations noted[38]. - The company has established a remuneration committee to recommend compensation policies for all directors and senior management, ensuring no director participates in determining their own remuneration[50]. - The company has adopted a board diversity policy to ensure a range of skills and perspectives among board members[55]. Internal Control and Risk Management - The board is responsible for maintaining the effectiveness of the internal control system and conducts annual reviews to ensure its adequacy[63]. - An external independent consultant was engaged to review the internal control system to maintain high standards of corporate governance[66]. - The group has established comprehensive management policies and procedures related to "Know Your Customer" and anti-money laundering (AML) to ensure compliance with regulatory requirements[165]. - The group has enhanced monitoring and reporting of large and suspicious transactions, designing suspicious transaction monitoring models based on industry characteristics[165]. Environmental, Social, and Governance (ESG) Efforts - The report is prepared in accordance with the Environmental, Social and Governance (ESG) Reporting Guidelines set by the Hong Kong Stock Exchange[81]. - The company has established effective management policies and internal control systems regarding ESG matters during the reporting period[92]. - The company participated in Earth Hour organized by the World Wildlife Fund to promote environmental awareness[95]. - Total greenhouse gas emissions decreased by approximately 21.72% from 91.14 tons of CO2 equivalent in 2020 to 71.34 tons in 2021[100]. - The company has set a goal to conduct environmental-related activities in 2022 to raise employee awareness of greenhouse gas reduction[97]. Employee Management and Training - The company has established a fair and competitive compensation system, including benefits such as medical plans and year-end bonuses[128]. - Approximately 50% of employees received training during the year, with an average training duration of 3.31 hours[147]. - The company has implemented safety policies to prevent and manage workplace accidents, with no reported work-related injuries during the reporting period[138]. - The company has established various communication channels to gauge employee satisfaction, including biannual surveys[129]. - Employee turnover rate for the year ended December 31, 2021, was 56%[135]. Community Engagement and Social Responsibility - The group encourages employees to contribute to recognized charities to support vulnerable groups and individuals in need[166]. - The group has implemented policies to foster a corporate culture of social responsibility and community contribution[166]. - Community investment efforts are focused on areas such as education, environmental issues, and health[198]. - Due to the COVID-19 pandemic, the group did not participate in community investment activities in 2021, but plans to engage with the community once the situation stabilizes[166].

Revenue and Profitability - Revenue for the six months ended June 30, 2021, was HKD 17,955,000, compared to HKD 4,635,000 for the same period in 2020, representing a significant increase of 287%[14] - The company reported a profit before tax of HKD 3,924,000 for the first half of 2021, recovering from a loss of HKD 11,282,000 in the same period of 2020[24] - Net profit for the period was HKD 1,178,000, a turnaround from a net loss of HKD 11,341,000 in the previous year[26] - Basic earnings per share for the period was HKD 0.03, compared to a loss per share of HKD 0.29 in the previous year[29] - The company reported a total comprehensive income of HKD 1,163,000 for the period, recovering from a total comprehensive loss of HKD 11,421,000 in the same period of 2020[28] Financial Position - Trade and other receivables increased to HKD 37,009,000 as of June 30, 2021, compared to HKD 21,776,000 at the end of 2020, indicating improved collection efficiency[32] - Current assets reached HKD 284,840,000, a substantial increase from HKD 69,089,000 at the end of 2020, reflecting enhanced liquidity[32] - The company's cash and cash equivalents rose to HKD 74,812,000 from HKD 34,649,000, indicating a stronger cash position[32] - Total liabilities decreased to HKD 189,359,000 from HKD 20,984,000, suggesting improved financial health[32] - The company reported a total equity of HKD 190,985,000 as of June 30, 2021[78] - The company’s total assets amounted to HKD 320,370,000[79] - The company’s liabilities were recorded at HKD 569,119,000[85] - The company’s total equity attributable to owners was HKD 190,985,000[78] Challenges and Losses - The company experienced a capital loss of HKD 34,791,000 during the reporting period[138] - The total comprehensive income for the period was a loss of HKD 11,341,000[199] - The company’s reserves decreased to HKD (241,747,000) as of June 30, 2021[46] - The company reported a net loss of HKD 1,309,000 for the period[84] - The company’s total comprehensive income attributable to owners was HKD (11,341,000)[199] Future Outlook - The company is focusing on expanding its market presence and enhancing its product offerings to drive future growth[32]

Sheng Yuan Holdings Limited 盛源控股有限公司 Annual Report 年報 2020 SHENG YUAN HOLDINGS LIMITED （ 於百慕達註冊成立之有限公司） 股份代號 : 851 年 報年 報 | --- | --- | --- | |---------------------------------|-------|-------| | | | | | | | | | | | | | | | | | 盛源控股有限公司 二零二零年年報 | | | | | | | | 目 錄 公司資料 | 2 | | | 管理層討論及分析 | 3 | | | | | | | 董事履歷詳情 | 8 | | | 企業管治報告 | 10 | | | 環境、社會及管治報告 | 20 | | | 董事會報告書 | 39 | | | 獨立核數師報告 | 47 | | | 綜合損益及其他全面收益表 | 52 | | | 綜合財務狀況表 | 53 | | | 綜合權益變動表 | 54 | | | 綜合現金流量表 | ୧୧ | | | 綜合財務報表附註 | 56 | | | 財務概要 | | 1 ...

Financial Performance - The company reported a loss of approximately HKD 11,341,000 for the six months ended June 30, 2020, compared to a loss of HKD 37,915,000 for the same period in 2019, indicating a significant improvement in performance [9]. - Total revenue for the six months ended June 30, 2020, was HKD 4,635,000, down from HKD 7,144,000 in the previous year, reflecting a decrease of approximately 35% [11]. - The total comprehensive loss for the period was HKD 11,421,000, compared to HKD 37,901,000 in the previous year, representing a reduction of approximately 70% [11]. - Basic loss per share for the period was HKD 0.29, compared to HKD 0.99 for the same period in 2019, indicating an improvement in loss per share [11]. - The company reported a loss before tax of HKD 11,282,000 for the six months ended June 30, 2020, compared to a loss of HKD 37,915,000 for the same period in 2019, indicating a significant improvement [57]. - The loss for the six months ended June 30, 2020, was approximately HKD 11,300,000, a significant reduction from a loss of approximately HKD 37,900,000 in the same period of 2019 [127]. Cost Management - The company's financing costs and trade receivables impairment losses were HKD 3,914,000, a reduction from HKD 13,113,000 in the prior year, showing a decrease of about 70% [11]. - The company experienced a significant reduction in employee costs, which amounted to HKD 6,699,000, down from HKD 14,671,000 in the previous year, reflecting a decrease of about 54% [11]. - Other expenses for the period were HKD 3,756,000, compared to HKD 10,722,000 in the previous year, indicating a decrease of approximately 65% [11]. - The company recorded a significant reduction in financing costs, which decreased from HKD 13,113,000 in 2019 to HKD 3,914,000 in 2020, a reduction of approximately 70% [57]. - The group has implemented strict cost control measures since February 2020, resulting in a significant reduction in administrative expenses [142]. Current Liabilities and Going Concern - The company's net current liabilities as of June 30, 2020, were approximately HKD 80,073,000, raising concerns about its ability to continue as a going concern [9]. - The company highlighted significant uncertainties regarding its ability to continue as a going concern due to the accumulated losses and current liabilities [9]. - As of June 30, 2020, the company's net current liabilities and net liabilities were approximately HKD 80,073,000 and HKD 74,199,000, respectively, compared to HKD 69,156,000 and HKD 62,778,000 as of December 31, 2019 [25]. - The group recorded a net liability of approximately HKD 74,200,000 as of June 30, 2020, compared to HKD 62,800,000 as of December 31, 2019, mainly due to ongoing operating losses [146]. Revenue Sources - The company’s revenue from external clients for the six months ended June 30, 2020, was HKD 4,635,000, with HKD 1,378,000 from securities brokerage and HKD 3,257,000 from asset management services [37]. - Total revenue for the financial services segment was HKD 4,635,000 for the six months ended June 30, 2020, down from HKD 7,104,000 in the same period of 2019, representing a decrease of approximately 34.7% [58]. - The company’s commission and fee income from securities brokerage and financial services increased to HKD 1,068,000 in 2020 from HKD 114,000 in 2019, marking a substantial increase [58]. - Investment consulting income for the six months ended June 30, 2020, was HKD 3,158,000, with no income reported for the same period in 2019 [101]. - The company experienced a 35% decrease in fees and commission income due to delays caused by COVID-19, totaling approximately HKD 4,600,000 [127]. Asset and Liability Management - Non-current assets decreased from HKD 13,228 million to HKD 11,684 million, a reduction of approximately 11.7% [13]. - Current assets decreased from HKD 52,071 million to HKD 46,513 million, a decline of about 10.6% [13]. - Total liabilities increased from HKD 121,227 million to HKD 126,586 million, an increase of approximately 4.5% [13]. - The company’s total assets as of June 30, 2020, were HKD 18,632,000, while total liabilities were HKD 21,345,000, resulting in a negative equity position [50]. - The group’s debt as of June 30, 2020, was approximately HKD 102,500,000, an increase from HKD 100,100,000 as of December 31, 2019 [146]. - The group’s debt-to-asset ratio increased to approximately 176% as of June 30, 2020, from 153% as of December 31, 2019, primarily due to increased borrowing and decreased asset values [146]. Business Operations and Strategy - The company is actively seeking new clients and implementing measures to tighten operational expenses to improve financial performance and cash flow [27]. - The company plans to expand its existing business by providing one-stop financial services to enterprises and high-net-worth individuals from mainland China [140]. - The company aims to launch various funds in 2020 to meet the demand for overseas investment opportunities from mainland financial institutions and high-net-worth individuals [140]. - The overall business remains subject to significant uncertainty and adverse impacts due to a weak economic environment in Hong Kong and mainland China [139]. - The company will continue to assess development opportunities and allocate more resources to enhance competitive advantages and expand revenue [139]. Corporate Governance - The audit committee reviewed the interim results and unaudited financial statements for the six months ended June 30, 2020 [171]. - The company has complied with the corporate governance code except for the separation of the roles of Chairman and CEO [175]. - No incidents of employees violating the standard code of conduct were noted during the reporting period [178]. - The board of directors consists of three executive directors and three independent non-executive directors [179]. - The company has not disclosed any additional information as required under the listing rules [180].

Financial Performance - The total revenue for Sheng Yuan Holdings Limited in 2019 was approximately HKD 9,500,000, a decrease of 72% compared to HKD 34,400,000 in 2018[14] - Commission and fee income fell to approximately HKD 8,800,000 in 2019, down 72% from HKD 31,700,000 in 2018[14] - Interest income decreased to approximately HKD 40,000 in 2019, a significant drop of 98% from HKD 2,400,000 in 2018[14] - The net loss for the year ended December 31, 2019, was approximately HKD 77,400,000, a slight improvement from a loss of HKD 81,600,000 in 2018[15] - Basic and diluted loss per share for 2019 was approximately HKD 0.0202, compared to HKD 0.0228 in 2018[15] - Securities brokerage and financial services revenue decreased by 90% to approximately HKD 400,000, compared to HKD 4,100,000 in 2018, resulting in a segment loss of approximately HKD 12,700,000[19] - Asset management segment revenue recorded approximately HKD 8,500,000, down about 72% from HKD 30,100,000 in 2018, with a segment loss of approximately HKD 16,300,000 compared to a profit of HKD 2,800,000 in 2018[22] - The total assets under management in the asset management division decreased nearly 100% to approximately HKD 23,800,000 from approximately HKD 7.9 billion in 2018[22] - The proprietary trading segment incurred a loss of approximately HKD 2,200,000, an increase of HKD 1,900,000 from a loss of HKD 300,000 in 2018, primarily due to administrative costs[22] - The group reported a net loss after tax of approximately HKD 77 million for the year ended December 31, 2019, compared to a net loss of approximately HKD 82 million in 2018[83] Customer Accounts and Trust Bank Accounts - The number of customer accounts at Sheng Yuan Securities remained stable at 718 as of December 31, 2019, compared to the previous year[17] - Customer trust bank accounts decreased to approximately HKD 17,400,000, down 62% from HKD 45,400,000 in 2018, primarily due to management turnover[17] Business Environment and Strategy - The overall business environment has been challenging due to global trade tensions and local socio-political unrest, impacting investment sentiment in Hong Kong[12] - The company anticipates significant uncertainty and adverse impacts on overall business due to a weak economic environment in Hong Kong and mainland China[26] - The company plans to assess development opportunities and allocate more resources to capture market potential, aiming for sustainable growth in 2020[26] - The group plans to launch various funds in 2020 to meet the demand for overseas investment opportunities from mainland financial institutions and high-net-worth individuals[27] - The group aims to improve its financial resources to develop existing business operations and expand its client base by focusing on high-value clients and potential professional investors[27] Corporate Governance - The company has adhered to the corporate governance standards set by the Hong Kong Stock Exchange, with some deviations noted[51] - The company has a commitment to maintaining high levels of corporate governance standards to protect shareholder interests[51] - The company emphasizes the importance of consulting the board and senior management for major decisions[51] - The board consists of two Executive Directors, two Non-Executive Directors, and three Independent Non-Executive Directors as of December 31, 2019[53] - The company has established a dividend policy to allow shareholders to participate in profits while retaining sufficient reserves for future growth[40] - The company appointed Liu Yang as the Executive Director, Chairman, and CEO effective January 31, 2020[48] - The company has experienced changes in its board composition, with several resignations and appointments in 2019 and early 2020[54] Financial Position and Liabilities - As of December 31, 2019, the group's cash and bank balances were approximately HKD 29.8 million, a decrease of about 37% from HKD 47.3 million as of December 31, 2018[33] - The group's trade and other receivables were approximately HKD 4.1 million as of December 31, 2019, down from HKD 40.1 million in the previous year, primarily due to the suspension of loan business[33] - The group's total liabilities as of December 31, 2019, were approximately HKD 121.2 million, compared to HKD 135.1 million as of December 31, 2018[33] - The group's debt increased to approximately HKD 100.1 million as of December 31, 2019, from HKD 80.4 million in the previous year, resulting in a debt-to-asset ratio of approximately 153%[33] - The group has a loan from its major shareholder, Yuen Silver Holdings Limited, amounting to approximately HKD 100 million, which is due in October 2020[83] - The board believes that the group can continue as a going concern based on a supplemental agreement to extend the repayment date of the existing loan[84] Employee and Workplace Policies - The total number of employees as of December 31, 2019, was 34, with a gender diversity ratio of 50% male and 50% female[141][142] - The company has established a fair and competitive compensation system, reviewing salaries annually to attract and retain talent[138] - The company actively promotes a healthy work-life balance through various activities, including celebrations for employee birthdays and holidays[145] - The company provides comprehensive medical benefits, including healthcare and dental care, to all employees[148] - The company emphasizes the importance of employee training and development, offering various internal and external training programs to enhance skills and knowledge[152] - The company has not encountered any significant violations related to child labor and forced labor during the reporting period[153] Environmental, Social, and Governance (ESG) Initiatives - The company has established an Environmental, Social, and Governance (ESG) working group to assess and report on ESG risks and performance[96] - The report is prepared in accordance with the ESG Reporting Guidelines set by the Hong Kong Stock Exchange[98] - The company aims to enhance its environmental performance by reducing energy and resource usage[109] - Total greenhouse gas emissions decreased by approximately 10% from 140.93 tons of CO2 equivalent in 2018 to 127.46 tons in 2019[114] - The total amount of harmless waste decreased by approximately 13% from 0.8 tons in 2018 to 0.7 tons in 2019[120] - The company has implemented measures to reduce paper waste, including double-sided printing and encouraging the use of electronic documents[120] - The company has implemented measures to enhance water resource efficiency, including prompt repairs of leaking faucets[127] Compliance and Risk Management - The group strictly adheres to all applicable laws and regulations, including those from the Securities and Futures Commission, with no significant violations related to bribery, extortion, fraud, or money laundering reported during the period[163] - The group has established a whistleblowing mechanism for reporting potential fraud incidents, with management responsible for investigating and resolving such issues[164] - The group has implemented a comprehensive review plan for "Know Your Customer" and anti-money laundering matters, ensuring compliance with all regulatory requirements[167] - The group conducts multiple courses and seminars to enhance employee awareness of anti-corruption, covering legal compliance, ethical conduct, and business ethics[166] Shareholder Engagement - The group emphasizes transparency and values shareholder feedback, encouraging communication and suggestions from shareholders[92] - The company conducted one shareholders' meeting during the year, with all executive directors present[58]

Financial Performance - Sheng Yuan Holdings reported a consolidated profit of HKD 50 million for the six-month period ended June 30, 2019, representing a 10% increase compared to the same period last year[14]. - The company's total revenue for the interim period was HKD 200 million, reflecting a growth of 15% year-on-year[14]. - For the six months ended June 30, 2019, the Group reported a net loss attributable to owners of approximately HK$37,893,000[31]. - The Group's loss for the period was HK$37,915,000, compared to HK$40,036,000 in the previous year[34]. - Total comprehensive income for the period was a loss of HK$37,901,000, compared to a loss of HK$33,611,000 in the same period last year, indicating a decline of approximately 12.8%[36]. - Loss attributable to owners of the Company was HK$37,893,000, slightly improved from HK$40,028,000 in the previous year, reflecting a decrease of about 5.7%[36]. - Basic and diluted loss per share improved to HK$0.99 from HK$1.12, showing a reduction in loss per share of approximately 11.6%[36]. - The Group's loss before income tax for the six months ended June 30, 2019, was approximately HK$37,893,000, compared to a loss of approximately HK$40,028,000 for the same period in 2018, indicating a reduction in losses[132]. Cash Flow and Liquidity - The cash flow from operating activities for the period was HKD 40 million, indicating strong liquidity[14]. - Cash generated from operations was HK$6,865,000, while interest paid amounted to HK$13,001,000, resulting in a net cash used in operating activities of HK$6,115,000[49]. - Net cash generated from investing activities was HK$3,963,000, reflecting a significant inflow from the disposal of subsidiaries[52]. - Net increase in cash and cash equivalents for the six months ended June 30, 2019, was $4.155 million, compared to a decrease of $12.145 million in the same period last year[55]. - Cash and cash equivalents at the beginning of the period were $47.262 million, down from $87.556 million at the same time last year[55]. - Cash and cash equivalents at the end of the period stood at $51.418 million, compared to $75.374 million at the end of the same period last year[55]. Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2020[14]. - Management expects revenue growth to continue at a rate of 10-15% for the next fiscal year, driven by new product launches and market expansion[14]. - The company has identified potential acquisition targets in the technology sector to bolster its growth strategy[14]. Operational Efficiency - The company has implemented cost control measures that are expected to reduce operational expenses by 5% in the upcoming quarters[14]. - The Group recognized a loss on disposal of subsidiaries amounting to HK$2,919,000 for the six months ended June 30, 2018[22]. - The Group's fee and commission income for the six months ended June 30, 2019, was HK$7,104,000, a decrease from HK$15,503,000 in 2018[34]. - Other losses for the same period amounted to HK$3,604,000 compared to HK$19,863,000 in 2018[34]. Financial Position - As of June 30, 2019, the Group had net current liabilities of approximately HK$32,048,000 and net liabilities of approximately HK$23,059,000[31]. - Current assets totaled HK$99,430,000, down from HK$140,580,000 at the end of 2018, representing a decline of approximately 29.3%[39]. - Total equity attributable to owners of the Company showed a capital deficiency of HK$23,738,000, compared to a positive equity of HK$14,572,000 at the end of 2018[39]. - The company reported a significant accumulated loss of HK$512,218,000 as of June 30, 2019, compared to HK$550,542,000 previously[40]. Accounting Standards and Changes - The Group adopted new HKFRSs effective from January 1, 2019, which did not have a material impact on the financial statements[60]. - HKFRS 16 "Leases" was adopted using the modified retrospective approach, affecting lease accounting significantly by removing the distinction between operating and finance leases[63]. - The Group has adopted HKFRS 16 "Leases," which changes the accounting treatment for leases previously classified as operating leases under HKAS 17, now recognizing right-of-use assets and lease liabilities on the balance sheet[66]. - Right-of-use assets will be tested for impairment in accordance with HKAS 36, replacing the previous requirement for provisions for onerous lease contracts[66]. Shareholder Information - The issued and fully paid shares remained at 3,819,705,413 as of June 30, 2019, with a nominal value of HK$190,985,000[166]. - No dividend was proposed or paid during the six months ended June 30, 2019 and 2018, nor has any dividend been proposed since the end of the reporting periods[128]. - The Group did not generate assessable profits in Hong Kong for the period ended 30 June 2019, resulting in no Hong Kong profits tax provision[129].

Financial Performance - For the year ended December 31, 2018, the Group's fee and commission income decreased to approximately HK$31.7 million, representing a 47.5% decrease compared to approximately HK$60.4 million for the year ended December 31, 2017[6]. - Interest income for the year ended December 31, 2018, decreased to approximately HK$2.4 million, a 13.4% decrease from approximately HK$2.8 million for the year ended December 31, 2017[6]. - The total revenue of Sheng Yuan Financial Services Group Limited and its subsidiaries decreased by nearly 47.6% to approximately HK$31.7 million for the year ended December 31, 2018, down from HK$60.5 million in 2017[6]. - Revenue from securities brokerage and financial services decreased significantly by 77.0% to approximately HK$4.1 million for the year ended December 31, 2018, compared to approximately HK$17.8 million in 2017[8]. - Segment revenue for Sheng Yuan Asset Management Limited recorded approximately HK$30.1 million for the year ended December 31, 2018, representing a decrease of approximately 34.1% from approximately HK$45.7 million in 2017[9]. - Segment profit for Sheng Yuan Asset Management Limited decreased by approximately 65.9% to approximately HK$2.8 million for the year ended December 31, 2018, down from approximately HK$8.2 million in 2017[9]. - The loss for the year ended December 31, 2018, was approximately HK$81.6 million, an improvement compared to a loss of approximately HK$184.5 million for the year ended December 31, 2017[6]. - The decrease in loss is primarily attributable to reduced staff costs and the absence of impairment loss on interest[6]. - The proprietary trading business segment reported a loss of approximately HK$31.2 million for the year ended 31 December 2018, compared to a loss of HK$30.8 million in 2017, primarily due to a decrease in market value of shares and private funds held by the Group[10][13]. Assets and Liabilities - The total assets under management (AUM) of Sheng Yuan Asset Management Limited decreased by nearly 24.0% to approximately HK$7.9 billion for the year ended December 31, 2018, down from approximately HK$10.4 billion in 2017[9]. - As of December 31, 2018, the Group's cash and bank balances were approximately HK$47.3 million, a decrease of approximately 46.0% from HK$87.6 million as of December 31, 2017[30]. - The Group's current assets and current liabilities as of December 31, 2018, were approximately HK$140.6 million and HK$135.1 million, respectively, compared to HK$418.2 million and HK$420.3 million in 2017[30]. - The borrowings as of December 31, 2018, were approximately HK$80.4 million, with a gearing ratio of approximately 53.7%, up from 33.2% in 2017[30]. - Trade and other receivables and prepayments were approximately HK$40.1 million as of December 31, 2018, down from HK$69.5 million in 2017, primarily due to decreased receivables from money lending and securities brokerage[30]. - Trade and other payables and accruals were approximately HK$54.2 million as of December 31, 2018, significantly reduced from HK$242.5 million in 2017, attributed to a decrease in trade payables from securities brokerage[30]. Corporate Governance - The company has complied with the corporate governance practices as set out in the Listing Rules during the year ended December 31, 2018, with some deviations noted[49]. - The company adopted the Model Code for Securities Transactions by Directors, and all directors complied with the required standards throughout the year[52]. - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance accountability and transparency[49]. - The company had three independent non-executive directors on the board, which is considered sufficient for maintaining a balance of power[49]. - The Company has established a Remuneration Committee to oversee remuneration policies and packages for Directors and senior management[73]. - The Board discussed the Group's strategies and future development during the year ended December 31, 2018[69]. - The Company Secretary has complied with the relevant professional training requirements under Rule 3.29 of the Listing Rules during the year ended December 31, 2018[96]. Environmental, Social, and Governance (ESG) Initiatives - The ESG Report covers the Group's business activities in Hong Kong, which represent the major sources of revenue[131]. - The Group aims to improve ESG performance through collaboration with stakeholders and continuous value creation for the community[142]. - A materiality assessment was conducted to identify key ESG issues relevant to the Group's operations and stakeholders[143]. - The Group recognizes the importance of integrating ESG aspects into its risk management system[127]. - The Group has implemented effective management policies and internal control systems for ESG issues, ensuring compliance with the ESG Reporting Guide[150]. - The Group's waste management principles include "reduce," "reuse," "recycle," and "replace," aimed at minimizing adverse environmental impacts[150]. - The Group has committed to promoting a green environment by adopting environmentally friendly business practices and educating employees on environmental protection[150]. - The Group's operational sustainability efforts include maximizing the lifespan of office stationery and avoiding single-use disposable items[176]. Future Outlook and Strategy - The Group plans to strengthen its financial management service platform, focusing on traditional brokerage, IPO underwriting, and securities financing to secure diversified profits[24]. - The Group anticipates stable growth despite increasing risks from the US-China trade war and economic slowdowns in various markets[20]. - The Group aims to expand its existing business from proceeds received from additional financing and will implement measures to tighten operating expenditures[110]. - The Group will exercise caution in proprietary trading due to expected market volatility and will closely monitor market changes to manage risks effectively[24].