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)

Financial Performance - The group's net loss for the year ended December 31, 2023, was approximately HKD 47.1 million, compared to a net profit of approximately HKD 17.5 million in 2022[11]. - Rental income for the year ended December 31, 2023, was approximately HKD 27.8 million, a decrease of about 5.3% from 2022, primarily due to increased rental concessions given to tenants[8]. - The company's revenue for the year 2023 was HKD 27.8 million, a decrease of 5.1% compared to HKD 29.3 million in 2022[19]. - The total market value of the group's investment properties as of December 31, 2023, is approximately HKD 851.3 million, a decrease of about HKD 56.7 million compared to 2022[8]. - The net change in fair value of investment properties showed a significant decline of HKD 56.7 million in 2023, compared to an increase of HKD 5.1 million in 2022[19]. - The company reported a loss attributable to equity holders of HKD 47.1 million for 2023, contrasting with a profit of HKD 17.5 million in 2022[19]. - The total equity attributable to equity holders decreased to HKD 882.3 million as of December 31, 2023, down from HKD 934.5 million in the previous year[19]. - The basic loss per share for 2023 was HKD 0.1219, compared to earnings of HKD 0.0454 per share in 2022, indicating a shift from profit to loss[32]. - The company held cash and bank deposits of approximately HKD 42.6 million as of December 31, 2023, down from HKD 53.7 million in 2022[35]. - The company recorded other comprehensive expenses of approximately HKD 6.2 million in 2023, down from approximately HKD 22.2 million in 2022[9]. Investment Properties - The fair value of the group's investment properties decreased by approximately HKD 56.7 million in 2023, reflecting a worsening market for commercial retail and residential investment properties in Hong Kong[11]. - The company has no major plans for significant investments or acquisitions due to the uncertain market outlook[15]. - The group continues to hold a 10% investment in Epic Capital Development Fund I, L.P., which is involved in a property redevelopment project in Kowloon[8]. - The fair value of the investment in the fund was approximately HKD 89.5 million as of December 31, 2023, representing a slight increase from HKD 88.6 million in 2022[30]. - The company did not acquire any investment properties during the fiscal year[179]. - As of December 31, 2023, the company had investment properties with a book value of approximately HKD 225.1 million pledged for bank loans, down from HKD 257.4 million in 2022[43]. Corporate Governance - The board proposed no final dividend for the year ending December 31, 2023, consistent with 2022[52]. - The company has adopted a corporate governance code in compliance with the Stock Exchange Listing Rules, ensuring adherence to all applicable provisions for the year ending December 31, 2023[65]. - The board consists of seven members, including four executive directors and three independent non-executive directors[66]. - The independent non-executive directors have confirmed their independence in accordance with the guidelines set out in the Listing Rules[72]. - The company has established sufficient risk management procedures to identify and control various risks[47]. - The board is responsible for managing all significant matters, including policy formulation, overall strategy, and risk management systems[66]. - The company has implemented a diversity policy to attract and retain female employees[80]. - The board has established clear terms of reference for its committees, including the Audit, Remuneration, and Nomination Committees[92]. - The company has arranged appropriate liability insurance for directors against legal responsibilities arising from company affairs[90]. - The company confirmed compliance with internal policies and non-competition agreements regarding property transactions[166]. Environmental, Social, and Governance (ESG) Initiatives - The company has complied with the "comply or explain" provisions of the environmental, social, and governance (ESG) reporting guidelines for the year ending December 31, 2023[133]. - The company is committed to minimizing its environmental footprint through effective resource utilization and promoting environmental awareness among employees and tenants[139]. - The company encourages energy-saving practices, such as using energy-efficient equipment and promoting employee awareness to reduce energy consumption[140]. - The total electricity consumption for the headquarters was approximately 16,995 kWh in the current year, compared to 16,117 kWh in 2022, resulting in CO2 equivalent emissions of about 6,628.05 kg[143]. - Water consumption for the headquarters was approximately 0.92 cubic meters, up from 0.83 cubic meters in 2022, with a water usage intensity of about 0.13 cubic meters per employee[144]. - The total paper usage during normal operations was approximately 491.01 kg, an increase from 435.94 kg in 2022, with CO2 equivalent emissions from paper usage totaling about 2,356.85 kg[145]. - The company has not generated any hazardous waste during its operations, and its environmental impact is considered minimal due to the nature of its business[139]. Employee and Social Responsibility - The employee turnover rate for 2023 was 0%, with a total of 7 full-time employees, maintaining the same number as in 2022[148]. - The gender ratio of employees in 2023 was 28.6% male and 71.4% female, consistent with the previous year[149]. - The company made a charitable donation of HKD 50,000 during the year, compared to none in the previous year[177]. - A donation of HKD 50,000 was made to the Wing Lee Entrance Scholarship at the University of Hong Kong to encourage youth to achieve their personal goals[160]. - The company has not recorded any industrial accidents or workdays lost due to occupational injuries during the reporting period[152].

Financial Performance - For the year ended December 31, 2023, the company reported a revenue of HKD 27,787,000, a decrease of 5.3% from HKD 29,331,000 in 2022[12] - The company recorded a net loss of HKD 47,092,000 for the year, compared to a profit of HKD 17,527,000 in the previous year[12] - The total comprehensive expense for the year amounted to HKD 53,272,000, significantly higher than HKD 4,635,000 in 2022[12] - Revenue from external customers for the year ended December 31, 2023, was HKD 27,787,000, a decrease from HKD 29,331,000 in 2022, representing a decline of approximately 5.3%[34] - The company reported a net loss attributable to equity holders of approximately HKD 47.1 million for the year ended December 31, 2023, compared to a profit of HKD 17.5 million in 2022[41] - The group recorded a net profit of approximately HKD 10.7 million for the year ended December 31, 2023, compared to approximately HKD 15.0 million in 2022, primarily due to decreased rental income and increased financial costs[62] Assets and Liabilities - The company's non-current assets, primarily investment properties, decreased to HKD 851,340,000 from HKD 908,010,000 in the previous year[14] - The net current liabilities increased to HKD 66,765,000, compared to HKD 13,088,000 in 2022, indicating a deterioration in liquidity[18] - The fair value of investment properties decreased to approximately HKD 851.3 million in 2023 from HKD 908.0 million in 2022, reflecting a net change of HKD (56.7) million[55] - The fair value of the group's investment properties decreased by approximately HKD 56.7 million in 2023, reflecting the overall market conditions in Hong Kong's commercial retail and residential investment property sectors[62] - The total equity of the group as of December 31, 2023, was approximately HKD 882.3 million, down from approximately HKD 934.5 million in 2022, reflecting a decrease of approximately HKD 52.2 million[72] - As of December 31, 2023, the group's current liabilities net amount was approximately HKD 66.8 million, an increase from approximately HKD 13.1 million in 2022, with a current ratio of approximately 0.40[72] Income and Expenses - The basic and diluted loss per share for the year was HKD (12.19), compared to earnings of HKD 4.54 in 2022[12] - The group reported a diluted loss per share of HKD (121.0) cents for 2023, compared to a diluted earnings per share of HKD 45.4 cents in 2022[43] - The group has adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 17 on insurance contracts, which did not have a significant impact on the financial statements as the group has no contracts within its scope[21] - Financing costs increased to HKD 6,330,000 in 2023 from HKD 3,065,000 in 2022, reflecting a significant rise of approximately 106.3%[36] - The group reported a total employee cost of HKD 6,771,000 for 2023, down from HKD 8,164,000 in 2022, indicating a decrease of about 17.0%[36] - The current tax provision for Hong Kong profits tax for the year was HKD 1,494,000, compared to HKD 2,344,000 in the previous year, a reduction of approximately 36.3%[37] - Deferred tax for the year was HKD 1,459,000, down from HKD 2,155,000 in 2022, representing a decrease of about 32.3%[37] Dividends and Capital Management - The company did not declare any dividends for the year ended December 31, 2023, consistent with the previous year[5] - The group did not recommend any dividend distribution at the end of the reporting period[40] - The group did not declare a final dividend for the year ending December 31, 2023, consistent with 2022[89] - The company plans to actively review its capital structure and may pursue new debt financing or property sales to enhance liquidity[19] - The group maintained a cautious financial management policy, with cash typically held in short-term deposits primarily in HKD[80] Operational Insights - The group’s operational business is primarily focused on property investment, with no significant changes in business segments reported[28] - Rental income from a single customer accounted for over 10% of the total revenue for the year ended December 31, 2023[30] - Rental income for the year ended December 31, 2023, was approximately HKD 27.8 million, a decrease of about 5.3% compared to 2022, primarily due to increased rental concessions granted to tenants[60] - The company continued to hold a 10% investment in Epic Capital Development Fund I, L.P., which is involved in property redevelopment in Hong Kong[60] - The company injected additional capital of approximately HKD 7.1 million into the fund during 2023, which was offset by a net decrease in the fund's fair value reserve of approximately HKD 6.2 million[61] - The group continues to maintain a high level of occupancy across its diversified tenant portfolio, closely monitoring economic trends and adjusting rental policies as necessary[64] Market Outlook - The management remains optimistic about the economic outlook for Hong Kong, anticipating a gradual recovery in retail property leasing activities despite ongoing inflationary pressures and geopolitical uncertainties[63] - The group has no major plans for significant investments or acquisitions due to an uncertain market outlook, maintaining a prudent financial policy when evaluating potential investment opportunities[66] Risk Management - The group has established sufficient risk management procedures to identify and control various risks in line with the best interests of the group and its shareholders[85] - As of December 31, 2023, the group had no significant contingent liabilities[82] Other Financial Information - The group recorded share-based payment expenses of approximately HKD 1.1 million for the year 2023, down from HKD 2.6 million in 2022[86] - The group had no capital commitments contracted but not provided for in the financial statements as of December 31, 2023, and 2022[81] - Capital expenditure for the year ending December 31, 2023, was approximately HKD 7.1 million, a decrease from HKD 14.9 million in 2022[77] - The group held approximately HKD 42.6 million in bank deposits and cash as of December 31, 2023, a decrease from approximately HKD 53.7 million in 2022[73]

Financial Performance - The group reported a diluted loss per share of (108) HK$'000 for the six months ended June 30, 2023, compared to (6,588) HK$'000 in the same period of 2022[3]. - The total comprehensive expense attributable to owners of the Company for the period was approximately HK$1.0 million, a decrease from approximately HK$11.1 million in 2022[52]. - Loss per share for the six months ended June 30, 2023, was HK cents 0.03, representing a reduction in loss of approximately HK cents 1.67 per share from the previous year[52]. - The Group reported a loss for the period of HK$108,000, a substantial recovery from a loss of HK$6,588,000 in the prior year[102]. - The Group's revenue for the six months ended June 30, 2023, was HK$13,807,000, a decrease of 2.1% compared to HK$14,107,000 for the same period in 2022[102]. - The Group's total rental income from investment properties was approximately HK$13.8 million for the period, reflecting a decrease of about 2.1% compared to approximately HK$14.1 million in the same period of 2022[65]. Dividends and Share Capital - No dividend was paid, declared, or proposed for the six months ended June 30, 2023, consistent with 2022[4]. - No interim dividend was recommended for the six months ended June 30, 2023, compared to no dividend in the same period of 2022[36]. - The company has a total issued and fully paid share capital of HK$3,862,000 as of June 30, 2023[20]. Investment Properties - The fair value of investment properties at the end of the period was 900,910 HK$'000, down from 908,010 HK$'000 at the beginning of the period, reflecting a net decrease in fair value of (7,100) HK$'000[4]. - The total market value of the Group's investment properties was approximately HK$900.9 million, down from approximately HK$908.0 million as of December 31, 2022, reflecting a net decrease in fair value of approximately HK$7.1 million[48]. - The fair value of the Group's investment properties as of June 30, 2023, is HK$900,910,000, compared to HK$908,010,000 as of December 31, 2022, reflecting a slight decrease[156]. - There were no new additions or disposals of investment properties during the six months ended June 30, 2023[49]. Bank Loans and Financial Liabilities - As of June 30, 2023, bank loans amounted to HK$102,167,000, a decrease from HK$113,614,000 as of December 31, 2022[16]. - The interest rates on bank loans ranged from 6.63% to 6.85% per annum as of June 30, 2023, compared to 6.05% to 6.55% as of December 31, 2022[16]. - The total amount due after one year shown under non-current liabilities was HK$8,464,000 as of June 30, 2023, down from HK$58,285,000 as of December 31, 2022[16]. - The amount due within one year from bank loans was HK$93,703,000 as of June 30, 2023[16]. - The Group's total debt to equity ratio was approximately 10.9% as of June 30, 2023, compared to approximately 12.2% as of December 31, 2022[54]. Cash and Liquidity - The Group's cash and cash equivalents were reported at HK$46,664,000, a decrease from HK$53,749,000 in the same period last year[104]. - The cash and cash equivalents at the end of the period decreased to HK$46,664,000 from HK$50,781,000, representing a decline of 8.8% year-over-year[125]. - The Group had available unutilized bank loan facilities of approximately HK$20 million as of June 30, 2023, unchanged from December 31, 2022[54]. - The decrease in bank deposits and cash was mainly due to the full repayment of one bank loan of approximately HK$8.86 million[191]. Operational Costs and Expenses - The Group recorded staff costs of approximately HK$1.1 million for the six months ended June 30, 2023, compared to approximately HK$3.6 million for the same period in 2022, representing a decrease of about 69.4%[35]. - Administrative expenses decreased to HK$2,799,000 from HK$5,037,000, reflecting a reduction in operational costs[102]. - Interest paid on bank loans increased significantly to HK$2,881,000 for the six months ended June 30, 2023, compared to HK$993,000 in the same period of 2022, reflecting a rise of 189.5%[132]. Market Conditions and Future Outlook - The Hong Kong government has continued to relax COVID-19 control measures since January 2023, positively impacting the economy and the recovery of the tourism sector[70]. - Management remains optimistic about the Hong Kong economy's outlook, expecting retail property leasing activities to gradually return to normal at a slow but steady pace[70]. - The Group will continue to monitor economic developments and property market changes to adjust rental policies accordingly[70]. - The Group is optimistic about the potential redevelopment and appreciation in value of the relevant property following the redevelopment[52]. - The Group does not have plans for any material investments or acquisitions of capital assets due to market uncertainties[52]. Tenant and Lease Information - The Group internally assesses the credit quality of potential tenants before accepting new tenants, ensuring no credit period is granted[13]. - The properties held have committed tenants with lease terms ranging from 1 year to 5 years[26]. - As of June 30, 2023, 96.6% of the Group's investment properties were leased[65]. - The Group's portfolio maintains high occupancy rates due to a diverse tenant mix across different industries[70].

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 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） 中期業績公佈 截至二零二三年六月三十日止六個月 中期業績 永利地產發展有限公司（「本公司」）之董事局（「董事局」）欣然呈列本公司及其附屬 公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合業 績及截至二零二二年六月三十日止同期之比較數字。 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 千港元 千港元 附註 （未經審核） （未經審核） 收益 3 13,807 14,107 直接經營開支 (965) (617) 12,842 13,490 其他收入 1,036 499 投資物業公平值變動淨額 9 (7,100) (12,910) 行政支出 (2,799 ...

Financial Performance - Rental income for the year ended December 31, 2022, was approximately HKD 29.3 million, a slight increase of about 1.4% from the previous year[13]. - The group recorded a net profit of approximately HKD 17.5 million for the year ended December 31, 2022, which was comparable to the net profit of approximately HKD 17.4 million in 2021[15]. - Revenue for 2022 was HKD 29,331,000, an increase of 1.38% from HKD 28,934,000 in 2021[92]. - Profit before tax increased to HKD 20,016,000, representing a growth of 5.4% compared to HKD 18,991,000 in 2021[92]. - Net profit for the year was HKD 17,527,000, slightly up from HKD 17,406,000, reflecting a growth of 0.7%[92]. - Total comprehensive income for the year showed a loss of HKD 4,635,000, compared to a gain of HKD 61,064,000 in 2021[92]. - Basic earnings per share increased to HKD 4.54 from HKD 4.51, a rise of 0.66%[92]. Investment Properties - The total market value of the group's investment properties as of December 31, 2022, was approximately HKD 908.0 million, an increase of about HKD 13.7 million compared to 2021[12]. - The fair value of the group's investment properties as of December 31, 2022, is approximately HKD 908 million, representing about 85.3% of the total assets[58]. - The group experienced a net change in the fair value of investment properties of approximately HKD 5.1 million in 2022, compared to HKD 2.0 million in 2021, indicating an overall increase in retail property prices in Hong Kong[15]. - The net increase in the fair value of investment properties recorded in the consolidated income statement for the year ended December 31, 2022, is approximately HKD 5.1 million[58]. - The group’s investment properties include office buildings, retail shops, industrial properties, residential properties, and parking lots located in Hong Kong[58]. Financial Position - As of December 31, 2022, total equity amounted to HKD 934,452,000, a slight decrease from HKD 936,514,000 in the previous year[74]. - Bank loans due after one year were reported at HKD 58,285,000, compared to HKD 70,814,000 in the previous year, indicating a reduction in long-term debt[72]. - Current liabilities increased to HKD 68,631,000 from HKD 47,507,000, indicating a rise of 44.4%[93]. - As of December 31, 2022, the group recorded a net current liability of approximately HKD 13,088,000, compared to HKD 1,184,000 in 2021[129]. - The net asset value as of December 31, 2022, was HKD 934,452 million, slightly down from HKD 936,514 million in 2021[175]. Economic Outlook - The group anticipates witnessing a general recovery in Hong Kong's economy in 2023, despite ongoing challenges such as interest rate hikes and inflation[17]. - The group expects the property market to face external challenges, including geopolitical tensions and anticipated global economic recession[17]. - The group anticipates that the retail property rental rate will continue to rise steadily, supported by the consumption voucher scheme, which will distribute HKD 3,000 in April 2023 and an additional HKD 2,000 mid-year[19]. Credit Risk Management - The expected credit loss is measured based on 12-month and lifetime expected credit losses, reflecting potential default events that may occur after the reporting date[23]. - The group assesses credit risk based on individual or collective criteria, with expected credit losses recalibrated at each reporting date to reflect changes in credit risk since initial recognition[27]. - The group evaluates the expected credit loss based on reasonable and supportable information without undue cost or effort, considering past events, current conditions, and forecasts of future economic conditions[142]. - The company considers both quantitative and qualitative data in assessing credit risk, including historical experience and forward-looking information[50]. Accounting Policies - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring transparency and accuracy in financial disclosures[85]. - The group recognizes rental income from investment properties according to specified accounting policies, with changes in fair value or gains/losses from disposal recognized in profit or loss[136]. - The group’s accounting policies include the classification of leases as finance or operating leases based on the transfer of risks and rewards associated with asset ownership[117]. - The group’s investment properties are recorded at fair value unless under construction, with any changes in fair value recognized in profit or loss[136]. Cash Flow - Operating cash generated for 2022 was HKD 19,528 million, an increase of 2.2% from HKD 19,109 million in 2021[150]. - Net cash generated from operating activities for 2022 was HKD 16,705 million, up from HKD 15,657 million in 2021[150]. - Cash used in investing activities for 2022 was HKD 14,333 million, a decrease from HKD 21,244 million in 2021[150]. - New bank loan proceeds in 2022 amounted to HKD 12,800 million, with net cash from financing activities totaling HKD 6,111 million[150]. - Cash and cash equivalents increased by HKD 8,483 million in 2022, compared to a decrease of HKD 20,999 million in 2021[150]. Audit and Compliance - The audit report confirmed compliance with relevant independence requirements, ensuring the integrity of the financial reporting process[68]. - The audit identified key audit matters, particularly regarding the valuation of long-term investments, which were assessed through external valuation reports[83]. - The independent auditor's report emphasized the importance of professional judgment and skepticism throughout the audit process[88]. - The audit committee played a crucial role in overseeing the financial reporting process, ensuring that the financial statements reflect the true financial position of the company[63].