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，並明確表示概不就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。 承董事會命 永利地產發展有限公司 公司秘書 吳浩然 香港，二零二五年八月八日 於本公佈刊登日期，董事會包括四名執行董事周彩花女士、黃少華女士、王敏莉 女士及周煥燕女士，以及三名獨立非執行董事藍章華先生、崔志仁先生及林國昌 先生。 * 僅供識別 WING LEE PROPERTY INVESTMENTS LIMITED 永利地產發展有限公 司 * （於百慕達註冊成立之有限公司） （股份代號：864） 董事會會議通知 永利地產發展有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會會議將於 二零二五年八月二十二日上午十一時三十分舉行，藉以（其中包括）考慮及批准本 公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績，並考慮是否 要派發中期股息。 ...

Core Viewpoint - Wynn Development (00864) anticipates a net loss of approximately HKD 164 million to HKD 166 million for the first half of 2025, compared to a net loss of approximately HKD 61.3 million in the same period of 2024, primarily due to a higher expected decrease in the fair value of investment properties [1] Group 1: Financial Performance - The expected decrease in the fair value of the group's investment properties for the first half of 2025 is estimated to be around HKD 169 million to HKD 171 million, compared to a decrease of approximately HKD 67.9 million in the same period of 2024 [1] - Despite the anticipated loss, the board expects that the decrease in fair value will not have a significant adverse impact on the group's operations and cash flow, as it is a non-cash item [1][2] - The group expects to achieve a net profit for the first half of 2025 that is in line with the same period in 2024, excluding the impact of the fair value changes [1] Group 2: Comprehensive Expenses - The group anticipates comprehensive expenses of approximately HKD 30 million to HKD 32 million for the first half of 2025, compared to approximately HKD 24.2 million in the same period of 2024 [1] - The total comprehensive expenses for the first half of 2025 are expected to be around HKD 194 million to HKD 198 million, significantly higher than the approximately HKD 85.5 million in the same period of 2024 [2]

Group 1 - The company expects to incur a net loss of approximately HKD 164 million to HKD 166 million in the first half of 2025, compared to a net loss of approximately HKD 61.3 million in the same period of 2024, primarily due to a higher expected decrease in the fair value of investment properties [1] - The anticipated decrease in the fair value of the company's investment properties for the first half of 2025 is approximately HKD 169 million to HKD 171 million, compared to a decrease of approximately HKD 67.9 million in the same period of 2024, reflecting the overall market conditions in Hong Kong's commercial retail and residential property sectors [1] - Despite the expected decrease in fair value being a non-cash item, the company does not anticipate any significant adverse impact on its operations and cash flow, as its business focuses on long-term investments and property leasing [1] Group 2 - The company also expects to incur other comprehensive expenses of approximately HKD 30 million to HKD 32 million in the first half of 2025, compared to approximately HKD 24.2 million in the same period of 2024, mainly due to the decrease in the fair value of the fund and fund properties [2] - The anticipated total comprehensive expenses for the first half of 2025 are expected to be approximately HKD 194 million to HKD 198 million, compared to approximately HKD 85.5 million in the same period of 2024 [2] - The unrealized valuation changes will not be reclassified to profit or loss and are considered non-cash items, which do not affect the company's daily operations and cash flow [2]

Core Viewpoint - Wynn Properties Development (00864.HK) anticipates a net loss of approximately HKD 164 million to HKD 166 million for the six months ending June 30, 2025, compared to a net loss of approximately HKD 61.3 million for the same period in 2024, primarily due to a higher expected decrease in the fair value of investment properties [1] Summary by Relevant Sections - **Financial Performance** - The expected decrease in the fair value of the group's investment properties for the upcoming period is estimated to be between HKD 169 million and HKD 171 million, compared to a decrease of approximately HKD 67.9 million in the same period of 2024 [1] - **Market Conditions** - The anticipated losses reflect the overall market conditions for commercial retail and residential investment properties in Hong Kong during the review period [1] - **Operational Impact** - Despite the expected decrease in fair value being a non-cash item, the board anticipates that it will not have any significant adverse impact on the group's operations and cash flow [1] - **Profitability Excluding Fair Value Changes** - Excluding the impact of the fair value decrease, the group expects to record a profit for the six months ending June 30, 2025, that remains flat compared to the same period in 2024 [1]

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，並明確表示概不就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。 WING LEE PROPERTY INVESTMENTS LIMITED 盈利警告 董事局謹此知會本公司股東及準投資者，本集團預期截至二零二五年六月三十 日止六個月將錄得虧損淨額介乎約164百萬港元至約166百萬港元，而二零二四 年同期則錄得虧損淨額約61.3百萬港元。此主要是由於預期本集團投資物業之 公平值於截至二零二五年六月三十日止六個月之減少淨額較高，而二零二四年 同期之減少淨額則較低。 本集團亦預期截至二零二五年六月三十日止六個月將錄得其他全面開支介乎約 30百萬港元至約32百萬港元，而二零二四年同期則錄得其他全面開支約24.2百 萬港元。此主要是由於截至二零二五年六月三十日止六個月之該基金及基金物 業之公平值減少。 有關未實現估值變動將不會重新分類至損益，為非現金項目，並不影響本集團 之日常營運及現金流。預期截至二零二五年六月三十日止六個月之全面開支總 額將介乎約194百萬港元至約198百萬港 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 FF301 致：香港交易及結算所有限公司 公司名稱: 永利地產發展有限公司（於百慕達註冊成立之有限公司） 呈交日期: 2025年8月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00864 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.01 HKD | | 10,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.01 HKD | | 10,000,000 | 本 ...

Financial Performance - The total market value of the group's investment properties as of December 31, 2024, is approximately HKD 604.1 million, a decrease of about HKD 247.3 million compared to 2023[9]. - Rental income for the year ended December 31, 2024, is approximately HKD 26.8 million, a decrease of about 3.5% from 2023, primarily due to increased rental concessions[10]. - The net loss for the year ended December 31, 2024, is approximately HKD 234.3 million, compared to a net loss of HKD 47.1 million in 2023[13]. - Revenue for the fiscal year 2024 was HKD 26.8 million, a decrease from HKD 27.8 million in 2023, representing a decline of approximately 3.6%[20]. - The annual loss attributable to equity holders of the company was HKD 234.3 million in 2024, compared to HKD 47.1 million in 2023, indicating a significant increase in losses[20]. - The total equity attributable to equity holders was HKD 608.0 million as of December 31, 2024, down from HKD 882.3 million in 2023, a decrease of approximately 30.9%[20]. - The basic loss per share for 2024 was HKD 0.6066, an increase from HKD 0.1219 in 2023, reflecting a worsening financial performance[33]. Investment Properties - The fair value of the group's investment properties decreased by approximately HKD 247.3 million in 2024, reflecting the overall market conditions for commercial retail and residential investment properties in Hong Kong[13]. - The fair value of the investment in the Epic Capital Development Fund I, L.P. is approximately HKD 55.7 million as of December 31, 2024, down from HKD 89.5 million in 2023[11]. - The net change in fair value of investment properties decreased by HKD 247.3 million in 2024, compared to a decrease of HKD 56.7 million in 2023[20]. - The investment in a fund related to property reconstruction decreased in fair value to approximately HKD 55.7 million in 2024 from HKD 89.5 million in 2023, a decline of about 37.8%[31]. Market Conditions - The long-term high-interest environment and strong HKD are negatively impacting consumer sentiment, hindering the recovery of the Hong Kong retail market[15]. - The group anticipates ongoing challenges in the retail market due to changing consumer habits and geopolitical tensions affecting the global economic outlook[15]. Financial Health - The group's total comprehensive expenses for 2024 are approximately HKD 40.1 million, compared to about HKD 6.2 million in 2023[10]. - The net current liabilities were approximately HKD 7.6 million as of December 31, 2024, a significant decrease from HKD 66.8 million in 2023[34]. - The current ratio improved to approximately 0.91 in 2024, compared to 0.40 in 2023, indicating better short-term financial health[34]. - The company has no major plans for significant investments or acquisitions due to an uncertain market outlook[20]. Corporate Governance - The company emphasizes effective corporate governance as a key factor for sustainable development and shareholder value[60]. - The board consists of seven members, including four executive directors and three independent non-executive directors[61]. - The independent non-executive directors have extensive experience in banking and property investment[55][56]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules[60]. - The board is responsible for overall management, including policy formulation, strategy approval, and risk management systems[61]. - The company has established sufficient risk management procedures to identify and control various risks in its internal and external environment[47]. Employee and Board Diversity - The gender diversity ratio among board members is balanced, with 28.6% male and 71.4% female employees in 2024[73]. - The company has implemented a board diversity policy, considering factors such as gender, age, and professional experience[67]. - The company reported a 0% employee turnover rate for the year 2024, maintaining a stable workforce of 7 full-time employees[137]. - The age distribution of employees showed 42.8% in the 36-45 age group and 57.2% in the 56 and above category, with no employees in the 18-25 and 26-35 age groups[140]. Environmental, Social, and Governance (ESG) Compliance - The company has complied with the environmental, social, and governance (ESG) reporting guidelines for the year ending December 31, 2024[121]. - Stakeholder engagement activities are conducted to maintain ongoing dialogue and make informed decisions regarding ESG matters[122]. - The company remains committed to environmental compliance, with no significant adverse impacts reported from its operations[135]. Risk Management and Internal Controls - The board is responsible for maintaining an effective internal control and risk management system, which is reviewed annually for effectiveness[106]. - The company has established an insider information policy to guide the handling of insider information and ensure compliance with regulations[107]. - The company has implemented internal control policies to manage potential conflicts of interest among directors[102]. Shareholder Information - The company did not declare a final dividend for the year ended December 31, 2024, consistent with the previous year[51]. - The company’s available reserves for distribution as of December 31, 2024, were approximately HKD 0, unchanged from the previous year[178]. - Shareholders holding at least 10% of the paid-up capital can request the board to convene a special general meeting[112]. Charitable Contributions - The company donated HKD 50,000 to the Wing Lee Entrance Scholarship at the University of Hong Kong to encourage youth[153]. - The company made a charitable donation of HKD 50,000 during the fiscal year, consistent with the previous year[169].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 26,826,000, a decrease of 3.47% from HKD 27,787,000 in 2023[2] - The company incurred a pre-tax loss of HKD 232,143,000, compared to a loss of HKD 45,183,000 in the previous year, reflecting a significant increase in losses[2] - The net loss for the year was HKD 234,266,000, up from HKD 47,092,000 in 2023, indicating a worsening financial performance[2] - The fair value change of investment properties resulted in a loss of HKD 247,260,000, compared to a loss of HKD 56,670,000 in the prior year[2] - The total tax provision for the year was HKD 2,123,000, up from HKD 1,909,000 in 2023, marking an increase of 11.2%[20] - The total comprehensive expenses attributable to equity holders for the year ended December 31, 2024, amounted to approximately HKD 274.3 million, a significant increase from HKD 53.3 million in 2023[50] - The basic loss per share for 2024 was approximately HKD 0.6066, representing an increase of about HKD 0.4847 compared to the basic loss per share of HKD 0.1219 in 2023[50] Asset and Equity Changes - Total assets decreased to HKD 671,270,000 from HKD 952,993,000, representing a decline of approximately 29.5%[3] - The company's net asset value fell to HKD 607,973,000 from HKD 882,290,000, a decrease of about 30.9%[3] - As of December 31, 2024, the total market value of the group's investment properties is approximately HKD 604.1 million, a decrease of about HKD 247.3 million compared to 2023[37] - The fair value of investment properties decreased to HKD 604,080,000 in 2024 from HKD 851,340,000 in 2023, reflecting a decline of 29.05%[29] - The total equity as of December 31, 2024, was approximately HKD 608.0 million, down about HKD 274.3 million from HKD 882.3 million at the end of 2023[53] Liabilities and Financing - The company reported a current liabilities net amount of HKD 7,612,000, significantly improved from HKD 66,765,000 in 2023[4] - As of December 31, 2024, total bank loans amounted to approximately HKD 132.2 million, with about 61.2% (HKD 80.9 million) due within one year[57] - The capital debt ratio increased to approximately 0.22 as of December 31, 2024, compared to 0.11 as of December 31, 2023, primarily due to the raising of new bank loans of approximately HKD 48.5 million[57] - The company raised new bank financing of approximately HKD 48.5 million in 2024, which contributed to an increase in cash and bank deposits to about HKD 79.4 million[54] Revenue and Income Sources - Total revenue from investment properties for the year ended December 31, 2024, was HKD 26,826,000, a decrease of 3.47% from HKD 27,787,000 in 2023[14] - Interest income increased to HKD 2,744,000 in 2024 from HKD 1,853,000 in 2023, representing a growth of 47.93%[16] - Rental income for the year ended December 31, 2024, is approximately HKD 26.8 million, a decrease of about 3.5% from 2023, primarily due to increased rental concessions[38] - The company’s total rental income from a single customer accounted for over 10% of total revenue in both 2024 and 2023[14] Operational Insights - The occupancy rate of the group's investment properties as of December 31, 2024, is 99.9%[38] - The company plans to actively review its capital structure and may initiate new debt financing or sell properties to obtain additional funds[5] - The company believes it will have sufficient working capital to meet its current needs in the foreseeable future[5] - The company will maintain close communication with tenants to provide support during challenging times, aiming to keep a high occupancy rate despite market challenges[50] - The company plans to continue exploring opportunities for business diversification beyond the leasing property market[46] Market Conditions and Challenges - The group expects significant challenges in the Hong Kong retail market in 2024 due to changing consumer habits and a strong HKD negatively impacting consumer spending[43] - The group recorded a decrease in the fair value of investment properties of approximately HKD 247.3 million in 2024, reflecting the overall market conditions for commercial retail and residential investment properties in Hong Kong[41] Miscellaneous - The company did not declare any dividends for the years ended December 31, 2024, and 2023[22] - The company has not applied any new accounting standards or interpretations that are not yet effective for the reporting period[7] - The company has no significant impact from the amendments to accounting standards as it did not enter into any sale-and-leaseback transactions or supplier financing arrangements[10][12] - The group had no significant contingent liabilities as of December 31, 2024, and December 31, 2023[60] - The group did not redeem, repurchase, or cancel any listed securities during the year ending December 31, 2024[70] - The group recorded employee costs of approximately HKD 2.7 million for the year ending December 31, 2024, a decrease from HKD 6.8 million in 2023, mainly due to reduced director remuneration[65] - The company did not launch or announce any new businesses or services during the year ended December 31, 2024[49] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the years ending December 31, 2024, and 2023[62] - The group has established sufficient risk management procedures to identify and control various risks[64]

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$13,383,000, a decrease of 3.1% compared to HK$13,807,000 for the same period in 2023[6] - Loss before taxation was HK$60,226,000, compared to a profit of HK$1,098,000 in the same period last year[6] - Total comprehensive expense for the period was HK$85,492,000, significantly higher than HK$954,000 in the previous year[6] - Basic and diluted loss per share was HK$15.87, compared to HK$0.03 in the prior period[6] - The Group reported a loss before taxation of HK$61,271,000 for the six months ended June 30, 2024, compared to a loss of HK$108,000 for the same period in 2023[26] - The Group recorded a net loss for the period of approximately HK$61.3 million, compared to a net loss of approximately HK$108,000 in 2023, excluding the impact of the net decrease in fair value reserves from the Fund[75] - The total comprehensive expense for the Group attributable to owners amounted to approximately HK$85.5 million, significantly higher than approximately HK$1.0 million in 2023, reflecting market conditions in Hong Kong's commercial retail and residential investment property sectors[79] Assets and Liabilities - Non-current assets decreased to HK$866,733,000 from HK$952,993,000 as of December 31, 2023[7] - Current assets increased to HK$76,959,000 from HK$45,372,000 as of December 31, 2023[7] - Total equity decreased to HK$796,798,000 from HK$882,290,000 as of December 31, 2023[7] - As of June 30, 2024, the total equity of the company is HK$796,798,000, a decrease from HK$933,498,000 as of June 30, 2023, reflecting a loss for the period[9] - The carrying value of investment properties in Hong Kong decreased from HK$851,340,000 as of December 31, 2023, to HK$783,460,000 as of June 30, 2024, representing a decline of approximately 8%[32] - The Group's total lease and other receivables amounted to HK$1,501,000 as of June 30, 2024, compared to HK$1,806,000 as of December 31, 2023, reflecting a decrease of approximately 17%[42] - Bank loans as of June 30, 2024, totaled HK$134,599,000, an increase from HK$100,581,000 as of December 31, 2023[50] Cash Flow - The net cash from operating activities for the six months ended June 30, 2024, is HK$7,433,000, compared to HK$6,328,000 for the same period in 2023, indicating an increase of approximately 17.5%[11] - The company reported a net increase in cash and cash equivalents of HK$32,703,000 for the six months ended June 30, 2024, compared to a decrease of HK$7,085,000 in the same period of 2023[11] - The company’s investment activities resulted in a net cash outflow of HK$5,005,000 for the six months ended June 30, 2024, compared to an inflow of HK$915,000 in the same period of 2023[11] - The company’s financing activities generated a net cash inflow of HK$30,275,000 for the six months ended June 30, 2024, compared to a net cash outflow of HK$14,328,000 in the same period of 2023[11] Investment Properties - The fair value of investment properties decreased to HK$783,460,000 as of June 30, 2024, down from HK$851,340,000 at the beginning of the period, representing a net decrease of 8%[28] - The Group's investment properties are measured using the fair value model and classified as investment properties, with no new acquisitions during the reporting period[34] - The Group's investment property portfolio consisted of 38 properties located in Hong Kong, with a total market value of approximately HK$783.5 million, down from HK$851.3 million as of December 31, 2023, reflecting a net decrease in fair value of approximately HK$67.9 million[71] - The Group's gross rental income for the six months ended June 30, 2024, was approximately HK$13.4 million, a decrease of about 3.1% compared to HK$13.8 million in the same period of 2023, primarily due to increased rental concessions granted to tenants[71] Share Capital and Options - The issued and fully paid share capital remained unchanged at HK$3,862,000 as of June 30, 2024[56] - The share option scheme allows for a maximum of 70,670,156 shares to be issued, which represents approximately 18.3% of the issued shares as of the date of the interim report[95] - The outstanding share options as of January 1, 2024, were 44,024,027[101] - The company has not granted any share options under the Scheme during the Period[100] Corporate Governance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions during the six months ended June 30, 2024[123] - The audit committee, comprising three independent non-executive directors, has reviewed the interim report for the six months ended June 30, 2024[126] - The company has complied with the Model Code for Securities Transactions by Directors during the six months ended June 30, 2024[124] Market Outlook - The management remains optimistic about the outlook of the Hong Kong property leasing market despite challenges in the retail sector due to low consumer confidence and increased competition[78] - The Group may look beyond the Hong Kong region for investment opportunities to maintain competitiveness[79] - The government has implemented measures to stimulate retail demand, including expanding the Individual Visit Scheme and raising duty-free quotas for Mainland visitors, which may enhance Hong Kong's attractiveness as a tourist destination[78]

Interim Results Announcement [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group turned from profit to loss, recording a pre-tax loss of HKD 60,226 thousand, with loss per share significantly increasing to HKD 15.87 cents. Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 13,383 | 13,807 | | Direct operating expenses | (516) | (965) | | Other income | 1,310 | 1,036 | | Net change in fair value of investment properties | (67,880) | (7,100) | | Administrative expenses | (2,780) | (2,799) | | Finance costs | (3,743) | (2,881) | | (Loss)/Profit before tax | (60,226) | 1,098 | | Tax | (1,045) | (1,206) | | Loss for the period | (61,271) | (108) | | Net change in fair value reserve (non-recycling) of equity investments at fair value through other comprehensive income | (24,221) | (846) | | Total comprehensive expense for the period | (85,492) | (954) | | Loss per share - basic and diluted (HK cents) | (15.87) | (0.03) | [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total non-current assets decreased due to fair value reductions, while net current assets turned positive, and total equity decreased. Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets | 866,733 | 952,993 | | Current assets | 76,959 | 45,372 | | Current liabilities | 50,281 | 112,137 | | Net current assets/(liabilities) | 26,678 | (66,765) | | Total assets less current liabilities | 893,411 | 886,228 | | Non-current liabilities | 96,613 | 3,938 | | Net assets | 796,798 | 882,290 | | Total equity | 796,798 | 882,290 | [Notes to the Condensed Consolidated Financial Statements](index=3&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed information on the basis of preparation, key accounting policies, segment data, and fair value measurements of financial instruments, along with other critical financial disclosures. [1. Basis of Preparation](index=3&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and applicable disclosure requirements of the Listing Rules. - Financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules[3](index=3&type=chunk) [2. Significant Accounting Policies](index=3&type=section&id=2.%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with investment properties and designated equity instruments measured at fair value. - Accounting policies are consistent with the prior year, with investment properties and certain equity instruments measured at fair value[4](index=4&type=chunk) - Revisions to HKFRS applied this period had no significant impact on the financial statements[4](index=4&type=chunk) [3. Segment Information](index=4&type=section&id=3.%20Segment%20Information) The Group operates a single segment of property investment, with revenue derived from rental income from operating leases, analyzed by geographical area and property type. - The Group operates a single segment: property investment, with revenue from rental income[5](index=5&type=chunk) Revenue from External Customers (For the six months ended June 30) | Region/Property Type | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong - Hong Kong Island: Commercial | 7,005 | 7,269 | | Hong Kong - Hong Kong Island: Residential | 168 | 75 | | Hong Kong - Kowloon: Commercial | 3,286 | 3,360 | | Hong Kong - Kowloon: Residential | 1,756 | 1,654 | | Hong Kong - Kowloon: Industrial | 1,168 | 1,449 | | **Total** | **13,383** | **13,807** | [4. Finance Costs](index=5&type=section&id=4.%20Finance%20Costs) For the six months ended June 30, 2024, finance costs for bank loans increased to HKD 3,743 thousand from HKD 2,881 thousand in the prior period. Finance Costs (For the six months ended June 30) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank loans | 3,743 | 2,881 | [5. (Loss)/Profit Before Tax](index=5&type=section&id=5.%20%28Loss%29%2FProfit%20Before%20Tax) The loss before tax was HKD 60,226 thousand, after deducting depreciation of property, plant and equipment and including interest income. - Loss before tax was **HKD 60,226 thousand**, including depreciation of property, plant and equipment of **HKD 251 thousand** and interest income of **HKD 1,210 thousand**[6](index=6&type=chunk) [6. Tax](index=5&type=section&id=6.%20Tax) Tax expense for the period was HKD 1,045 thousand, primarily comprising Hong Kong profits tax and deferred tax expense, with Hong Kong profits tax rate at 16.5%. Tax (For the six months ended June 30) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong profits tax - current period | 875 | 1,036 | | Deferred tax expense | 170 | 170 | | **Total** | **1,045** | **1,206** | - Hong Kong profits tax rate is **16.5%**, with a two-tiered rate of **8.25%** for the first **HKD 2,000,000** of assessable profits for some subsidiaries[7](index=7&type=chunk) [7. Loss Per Share](index=6&type=section&id=7.%20Loss%20Per%20Share) For the six months ended June 30, 2024, basic and diluted loss per share significantly increased to HKD 15.87 cents, mainly due to the expanded loss attributable to equity holders. Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Loss for the period attributable to equity holders of the Company | (61,271) | (108) | | Weighted average number of ordinary shares | 386,175,758 | 386,175,758 | | Basic and diluted loss per share (HK cents) | (15.87) | (0.03) | - Diluted loss per share calculation did not assume the exercise of share options as their exercise price was higher than the average market price of shares[8](index=8&type=chunk) [8. Dividends](index=6&type=section&id=8.%20Dividends) The Directors do not recommend an interim dividend for the six months ended June 30, 2024, consistent with the prior period. - No dividends were paid, declared, or proposed for the current period or the prior period[9](index=9&type=chunk) [9. Investment Properties](index=6&type=section&id=9.%20Investment%20Properties) As of June 30, 2024, the fair value of investment properties was HKD 783,460 thousand, a decrease of HKD 67,880 thousand, with all properties located in Hong Kong and valued by independent professionals. Changes in Fair Value of Investment Properties | Item | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | At beginning of period | 851,340 | 908,010 | | Net decrease in fair value | (67,880) | (56,670) | | At end of period | 783,460 | 851,340 | - Investment properties' fair value is assessed by independent professional valuer Broadrich Corporate Consultancy Limited using the direct comparison method[10](index=10&type=chunk) - The Group does not recognize deferred tax liability on fair value changes of Hong Kong investment properties as their disposal is not subject to income tax[10](index=10&type=chunk) [10. Other Property, Plant and Equipment](index=7&type=section&id=10.%20Other%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2024, the Group made no new additions to property, plant and equipment, consistent with the prior period. - No new additions to property, plant and equipment were made during the period[11](index=11&type=chunk) [11. Other Financial Assets](index=7&type=section&id=11.%20Other%20Financial%20Assets) As of June 30, 2024, other financial assets primarily consisted of unlisted partnership investments designated at fair value through other comprehensive income, totaling HKD 71,497 thousand. Other Financial Assets | Item | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Equity instruments designated at fair value through other comprehensive income (non-recycling) - unlisted partnership investment | 71,497 | 89,503 | - The investment represents a **10%** equity interest in Epic Capital Development Fund I, L.P., primarily engaged in property redevelopment in Hong Kong[12](index=12&type=chunk) - The Company designated this equity instrument investment at fair value through other comprehensive income to reflect its long-term investment strategy[12](index=12&type=chunk) [12. Lease Receivables and Other Receivables](index=8&type=section&id=12.%20Lease%20Receivables%20and%20Other%20Receivables) As of June 30, 2024, total lease receivables and other receivables were HKD 1,501 thousand, with a net amount of HKD 1,251 thousand after deducting non-current portions. Lease Receivables and Other Receivables | Item | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Lease receivables | 172 | 311 | | Deferred lease receivables | 513 | 654 | | Other receivables, deposits and prepayments | 816 | 841 | | **Total** | **1,501** | **1,806** | | Less: Non-current portion of deferred lease receivables | (250) | (373) | | **Net amount** | **1,251** | **1,433** | - The Group does not grant credit periods to tenants for leased properties and internally assesses the credit quality of potential tenants[14](index=14&type=chunk) [13. Deposits Received and Other Payables](index=9&type=section&id=13.%20Deposits%20Received%20and%20Other%20Payables) As of June 30, 2024, total deposits received and other payables were HKD 8,187 thousand, a decrease from HKD 11,445 thousand, mainly due to reduced accrued expenses. Deposits Received and Other Payables | Item | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Rental deposits received | 7,028 | 7,019 | | Accrued expenses | 853 | 4,104 | | Other payables | 306 | 322 | | **Total** | **8,187** | **11,445** | - All deposits received and other payables, except for certain rental deposits, are expected to be settled or recognized as income within one year[16](index=16&type=chunk) [14. Share Capital](index=9&type=section&id=14.%20Share%20Capital) As of June 30, 2024, the Company's issued and fully paid share capital remained unchanged at HKD 3,862 thousand, with 386,175,758 shares. Share Capital Information | Item | Number of Shares | Amount (HKD) | Shown in Condensed Consolidated Financial Statements (HKD thousands) | | :--- | :--- | :--- | :--- | | Issued and fully paid share capital (as of June 30, 2024) | 386,175,758 | 3,861,757 | 3,862 | - The Company's share capital remained unchanged during the period[18](index=18&type=chunk) [15. Fair Value Measurement of Financial Instruments](index=10&type=section&id=15.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) The Group's financial assets primarily include equity instrument investments designated at fair value through other comprehensive income, valued at HKD 71,497 thousand, classified as Level 3 fair value measurement. Fair Value Measurement of Financial Assets | Financial Asset | Fair Value as of June 30, 2024 (HKD thousands) | Fair Value as of December 31, 2023 (HKD thousands) | Fair Value Hierarchy | | :--- | :--- | :--- | :--- | | Equity instrument investments designated at fair value through other comprehensive income | 71,497 | 89,503 | Level 3 | - The fair value of unlisted equity instruments is determined using the adjusted net asset method, referencing the fair value of underlying properties assessed by qualified external valuers[20](index=20&type=chunk) Changes in Level 3 Fair Value Measurements (Unlisted Equity Instruments) | Item | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | At beginning of period | 89,503 | 88,583 | | Payments for capital injection | 6,215 | 7,120 | | Net unrealized (loss) recognized in other comprehensive income during the period | (24,221) | (6,180) | | At end of period | 71,497 | 89,503 | [16. Related Party Transactions](index=11&type=section&id=16.%20Related%20Party%20Transactions) The Group leased two properties to companies wholly owned by the Chairman's spouse and CEO, receiving approximately HKD 786 thousand in rental income and holding HKD 393 thousand in rental deposits during the period. - The Group leased properties to related party companies, with rental income of **HKD 786 thousand** and rental deposits of **HKD 393 thousand** during the period[22](index=22&type=chunk) Management Discussion and Analysis [Business Review](index=12&type=section&id=Business%20Review) The Group primarily invests in and leases commercial and residential properties in Hong Kong, with its investment property portfolio valued at approximately HKD 783.5 million, experiencing a decrease due to fair value adjustments and reduced rental income. - The Group's investment property portfolio is valued at approximately **HKD 783.5 million**, a decrease of approximately **HKD 67.9 million** from December 31, 2023, primarily due to a net decrease in the fair value of investment properties[23](index=23&type=chunk) - Total rental income was approximately **HKD 13.4 million**, a **3.1%** year-on-year decrease, mainly due to offering more rental concessions to tenants[23](index=23&type=chunk) - The Group holds a **10%** investment in Epic Capital Development Fund I, L.P. (the "Fund"), whose property has been redeveloped into an office building and began unit sales in June 2024[23](index=23&type=chunk) - Due to changes in office demand, oversupply, and reduced investment from mainland enterprises, the fair value of the Fund's property and the Fund itself continued to decline, resulting in the Fund investment's fair value of approximately **HKD 71.5 million**, accounting for approximately **7.6%** of total assets[24](index=24&type=chunk) - Excluding the net impact of changes in fair value of investment properties, the Group recorded a net profit of approximately **HKD 6.6 million**, a decrease of approximately **5.7%** from the prior year, mainly due to reduced rental income and increased finance costs[24](index=24&type=chunk) [Prospects](index=13&type=section&id=Prospects) Hong Kong's retail market significantly declined in H1 2024 due to low consumer confidence and reduced competitiveness, while the Group plans to monitor market changes, adjust leasing policies, and explore diversification opportunities with a prudent financial approach. - Hong Kong's retail market experienced a significant decline in H1 2024, affected by low consumer confidence, reduced competitiveness, and a strong Hong Kong dollar[25](index=25&type=chunk) - The government has introduced various measures to stimulate retail demand and attract talent, such as expanding the Individual Visit Scheme and increasing the duty-free allowance for mainland visitors[26](index=26&type=chunk) - The Group will continue to closely monitor economic developments and property market changes, adjust leasing policies, and communicate with tenants to maintain high occupancy rates[26](index=26&type=chunk) - The Group is prudently exploring opportunities to diversify its business beyond the leased property market and will maintain a prudent financial policy, with no current plans for significant investments or acquisitions of capital assets[26](index=26&type=chunk) Financial Review [Results](index=15&type=section&id=Results) Total comprehensive expense attributable to equity holders significantly increased to approximately HKD 85.5 million, primarily reflecting fair value changes in investment properties and the Epic Fund, leading to an increased loss per share. - Total comprehensive expense for the period was approximately **HKD 85.5 million**, a significant increase from approximately **HKD 1.0 million** in the prior period, mainly impacted by fair value changes of investment properties and the Epic Fund[27](index=27&type=chunk) - Loss per share was **HKD 15.87 cents**, an increase of **HKD 15.84 cents** from **HKD 0.03 cents** in the prior period[27](index=27&type=chunk) [Liquidity and Capital Resources](index=15&type=section&id=Liquidity%20and%20Capital%20Resources) The Group's net current assets improved significantly to HKD 26.7 million from a net current liability of HKD 66.8 million, driven by bank loan renewals and new loans, increasing liquidity and the debt-to-equity ratio. - Net current assets improved from approximately **HKD (66.8) million** as of December 31, 2023, to approximately **HKD 26.7 million** as of June 30, 2024, with the current ratio increasing from approximately **0.40** to approximately **1.53**[28](index=28&type=chunk) - Liquidity improved mainly due to the renewal of two bank loans (approximately **HKD 49.2 million**) for over 24 months and new bank loans (approximately **HKD 48.5 million**), reducing current liabilities[28](index=28&type=chunk) - Bank deposits and cash increased to approximately **HKD 75.4 million**, primarily from new bank loans and operating cash flow, partially offset by capital contributions to the Epic Fund and bank loan repayments[28](index=28&type=chunk) - Total bank loans increased to approximately **HKD 134.6 million**, secured by investment properties, leasehold land, and buildings with a book value of approximately **HKD 317.8 million**, at interest rates ranging from **6.21%** to **6.36%**[29](index=29&type=chunk) - The total debt-to-equity ratio was approximately **16.9%**, up from approximately **11.4%** as of December 31, 2023[29](index=29&type=chunk) [Capital Expenditure](index=16&type=section&id=Capital%20Expenditure) The Group incurred no significant capital expenditure during the period, with future capital expenditures expected to be funded by operating cash and bank borrowings. - No significant capital expenditure was incurred during the period, with future funding primarily from operating cash and bank borrowings[30](index=30&type=chunk) [Capital Commitments](index=16&type=section&id=Capital%20Commitments) As of June 30, 2024, the Group had no contracted but unprovided capital commitments for its investment in the Epic Fund. - No contracted but unprovided capital commitments were present during the period[31](index=31&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2024, and December 31, 2023, the Group had no significant contingent liabilities. - The Group had no significant contingent liabilities[32](index=32&type=chunk) [Pledged Assets](index=17&type=section&id=Pledged%20Assets) As of June 30, 2024, investment properties with a book value of approximately HKD 306.3 million and leasehold land and buildings of HKD 11.5 million were pledged for bank facilities. - Investment properties with a book value of approximately **HKD 306.3 million** and leasehold land and buildings of approximately **HKD 11.5 million** were pledged for bank facilities[33](index=33&type=chunk) [Material Acquisitions and Disposals of Subsidiaries](index=17&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) The Company made no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period. - No material acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the period[34](index=34&type=chunk) [Treasury Policy](index=17&type=section&id=Treasury%20Policy) The Group maintains a prudent treasury policy, primarily denominated in HKD with minimal exchange rate risk, and does not use financial instruments for hedging. - The Group adopts a prudent treasury policy, primarily denominated in HKD, with minimal exchange rate risk[35](index=35&type=chunk) - Cash is typically held in short-term deposits, and financial instruments are not used for hedging purposes[35](index=35&type=chunk) [Risk Management](index=17&type=section&id=Risk%20Management) The Group has established and maintains adequate risk management procedures and internal controls to identify and manage internal and external risks. - The Group has established and maintains adequate risk management procedures and internal controls[36](index=36&type=chunk) Other Information [Human Resources](index=18&type=section&id=Human%20Resources) As of June 30, 2024, the Group had seven employees in Hong Kong, with staff costs of approximately HKD 1.1 million, and regularly reviews remuneration policies based on performance. - The Group had seven employees in Hong Kong, with staff costs of approximately **HKD 1.1 million** during the period[37](index=37&type=chunk) - Remuneration policies and benefits are regularly reviewed, with discretionary bonuses and share options granted based on operating results and individual performance[37](index=37&type=chunk) [Interim Dividend](index=18&type=section&id=Interim%20Dividend) The Directors do not recommend an interim dividend for the six months ended June 30, 2024, consistent with the prior period. - The Directors do not recommend an interim dividend for the period[38](index=38&type=chunk) [Corporate Governance](index=18&type=section&id=Corporate%20Governance) The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules. - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code[39](index=39&type=chunk) [Standard Code for Securities Transactions by Directors](index=18&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all Directors confirmed compliance during the period. - The Company has adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers, with all Directors confirming compliance[40](index=40&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries redeemed, repurchased, or sold any of the Company's listed securities during the period. - Neither the Company nor its subsidiaries redeemed, repurchased, or sold any of the Company's listed securities during the period[41](index=41&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive Directors, has reviewed the unaudited interim results for the period. - The Audit Committee, composed of three independent non-executive Directors, has reviewed the unaudited interim results for the period[42](index=42&type=chunk) [Acknowledgement](index=19&type=section&id=Acknowledgement) The Board of Directors extends its sincere gratitude to all shareholders, tenants, professionals, and employees for their support. - The Board of Directors expresses gratitude to shareholders, tenants, professionals, and employees for their support[43](index=43&type=chunk) [Board Composition](index=19&type=section&id=Board%20Composition) The Board of Directors comprises four executive directors and three independent non-executive directors. - The Board of Directors comprises four executive directors and three independent non-executive directors[44](index=44&type=chunk)