Financial Performance - Revenue for the six months ended June 30, 2020, was $18,734,000, a decrease of 48.7% compared to $36,557,000 in the same period of 2019[20][21] - Gross profit for the period was $5,427,000, down 27.3% from $7,480,000 in 2019[24][26] - Loss for the period was $3,352,000, slightly improved from a loss of $3,479,000 in the same period of 2019[49][51] - Total comprehensive loss for the period was $3,472,000, compared to $4,175,000 in 2019, indicating a reduction of 16.8%[74] - Basic and diluted loss per share for the six months ended June 30, 2020, was (0.22) cents, compared to (0.23) cents in 2019[65] - The operating loss before working capital changes for the six months ended June 30, 2020, was US$1,150,000, compared to an operating loss of US$2,520,000 for the same period in 2019, showing a significant reduction of approximately 54.4%[187] - The Company reported cash flows used in operating activities of US$3,296,000 for the six months ended June 30, 2020, compared to US$2,520,000 for the same period in 2019, indicating an increase of approximately 30.7%[187] Assets and Liabilities - Non-current assets increased to $2,781,000 as of June 30, 2020, from $2,018,000 at the end of 2019, reflecting a growth of 37.8%[78] - Current assets decreased to $18,405,000 from $24,427,000, a decline of 24.7%[78] - Total liabilities decreased from $16,042,000 to $13,330,000, a reduction of 16.9%[78] - Net assets decreased to $6,306,000 from $9,778,000, a decline of 35.5%[82] - The Company reported a cash and cash equivalents balance of $10,699,000 as of June 30, 2020, down from $12,723,000 at the end of 2019[78] - Cash and cash equivalents at the end of the period were US$10,699,000, a decrease from US$12,723,000 at the beginning of the period, representing a decline of about 15.9%[187] - As of June 30, 2020, total equity attributable to owners of the Company decreased to US$6,306,000 from US$9,778,000 at the beginning of the year, reflecting a decline of about 35.5%[85] - The accumulated losses increased to US$171,649,000 as of June 30, 2020, from US$168,297,000 at the beginning of the year, indicating an increase of about 1.4%[85] Business Operations - The Company has not reported any new product launches or technological advancements during this period[188] - There were no significant market expansions or acquisitions mentioned in the report[188] - The Company continues to engage in trading and supply chain management services, as well as operating online social platforms[188] - The Group's business comprises two reportable operating segments: trading and supply chain management services, and operation of online social platforms[196] Financial Reporting and Standards - The adoption of revised Hong Kong Financial Reporting Standards has no material impact on the preparation of the Group's condensed consolidated interim financial statements[194] - The condensed consolidated interim financial statements are presented in United States dollars (US$) for the six months ended 30 June 2020[193] - The Group's interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2019[193] - The Group's financial information is prepared in accordance with Hong Kong Accounting Standards and the disclosure requirements of the Listing Rules on the Stock Exchange[193] Segment Reporting - Management monitors the results of the Group's operating segments separately for resource allocation and performance assessment[196] - The Group's performance evaluation is based on reportable segment loss, which is a measure of adjusted loss before tax[196] - Intersegment sales and transfers are transacted with reference to the selling prices used for sales made to third parties at prevailing market prices[197] - The adjusted loss before tax is measured consistently with the Group's loss before tax, excluding bank interest income, interest on bank borrowings, share of loss of a joint venture, and corporate and other unallocated expenses[196] - The Group was incorporated in Bermuda and has been listed on the Stock Exchange of Hong Kong since 10 May 2002[193]

Rea 道和環球 DAOHE GLOBAL DAOHE GLOBAL GROUP LIMITED 道和環球集團有限公司 (Incorporated in Bermuda with limited liability 於百慕達註冊成立之有限公司) (Stock Code 股份代號: 915) | --- | --- | --- | --- | --- | |---------|-------|-------|-------|-------| | | | | | | | 2019 \| | | | | | | | | | | | | | | r | | | | | | | | | | | | | | | Contents 目 錄 Chairman's Statement 主席報告書 3 Management Discussion and Analysis 管理層討論及分析 5 Biographical Details of Directors and Senior Management 董事及高級管理層資料 12 Corporate Governance Report 公司管治報告 20 Environmenta ...

Revenue Performance - Revenue for the six months ended June 30, 2019, was US$36,557,000, a decrease from US$58,239,000 in the same period of 2018, representing a decline of approximately 37.2%[19] - Revenue from external customers for the six months ended June 30, 2019, was $36,557,000, a decrease from $58,239,000 in the same period of 2018, representing a decline of approximately 37.2%[185] - Revenue from sales of merchandise decreased to $13,297,000 from $32,270,000, marking a decline of approximately 58.8%[185] - Commission income for the period was $4,550,000, down from $5,418,000, representing a decrease of about 16%[185] - For the six months ended June 30, 2019, segment revenue from trading and supply chain management services was $17,847,000, while revenue from the operation of online social platforms was $18,710,000, totaling $36,557,000[116] Profit and Loss - Gross profit for the same period was US$7,480,000, down from US$13,526,000 in 2018, indicating a decrease of about 44.0%[19] - Loss for the period was US$3,479,000, compared to a loss of US$11,303,000 in the prior year, showing an improvement of approximately 69.1%[28] - Total comprehensive loss for the period was US$4,175,000, compared to US$13,258,000 in 2018, reflecting a reduction of about 68.5%[29] - The company reported a loss before tax of $12,857,000 for the period, compared to a loss before tax of $4,208,000 in the previous period[180] - The company incurred a loss for the period of $11,303,000, which is a substantial increase from the loss of $3,479,000 reported previously[180] Expenses - Selling and marketing expenses decreased to US$2,507,000 from US$7,021,000, a reduction of about 64.3%[19] - General and administrative expenses slightly decreased to US$9,646,000 from US$9,988,000, a decline of approximately 3.4%[19] - The impairment loss on goodwill was recorded as US$0, a significant improvement from US$9,700,000 in the previous period[19] - Amortization of other intangible assets was $6,845,000, reflecting ongoing costs associated with intangible asset management[180] Cash Flow and Liquidity - Cash generated from operations was negative at US$2,520,000, a significant increase from the previous year's negative cash flow of US$761,000[48]. - Net cash flows used in operating activities totaled US$3,296,000, compared to US$15,000 in the prior year, indicating a substantial increase in cash outflow[48]. - Cash and cash equivalents decreased from US$17,192,000 as of December 31, 2018, to US$6,719,000 as of June 30, 2019, a decline of about 60.9%[33] - Cash and cash equivalents at the end of the period were US$6,719,000, down from US$14,327,000 at the end of the previous period[48]. - The Group's cash flow from financing activities was negative, with a net cash outflow of US$153,000 during the reporting period[48]. Assets and Liabilities - Total non-current assets decreased from US$19,823,000 as of December 31, 2018, to US$18,489,000 as of June 30, 2019, representing a decline of approximately 6.7%[33] - Total current assets decreased from US$30,644,000 as of December 31, 2018, to US$27,727,000 as of June 30, 2019, a reduction of about 9.5%[33] - Total current liabilities increased slightly from US$19,414,000 as of December 31, 2018, to US$19,688,000 as of June 30, 2019, an increase of approximately 1.4%[33] - Net assets increased from US$24,602,000 as of December 31, 2018, to US$20,427,000 as of June 30, 2019, indicating a decrease of about 17%[35] - The company’s equity attributable to owners decreased from US$24,537,000 as of December 31, 2018, to US$20,378,000 as of June 30, 2019, a decrease of approximately 17%[35] Accounting Standards and Policies - The Group's financial statements have been prepared in accordance with Hong Kong Accounting Standards, specifically HKAS 34 for interim financial reporting[51]. - The adoption of HKFRS 16 Leases has been implemented using the modified retrospective method, affecting the accounting for leases from January 1, 2019[64]. - The Group adopted HKFRS 16 on January 1, 2019, which requires all leases to be recognized as right-of-use assets and lease liabilities, impacting the financial statements significantly[68] - The cumulative impact of adopting HKFRS 16 was reflected in the retained earnings adjustment as of January 1, 2019, without restating prior year comparatives[68] Strategic Initiatives - The company aims to enhance its market position through strategic initiatives and potential new product developments in the upcoming periods[21] - The Group terminated its money lending business during the period, resulting in a focus on two reportable operating segments[116] - The Group's financial performance reflects ongoing challenges in operational efficiency and cash management strategies[48].

Financial Performance - Daohe Global recorded a revenue of approximately US$107.5 million for the year ended 31 December 2018, representing a year-on-year growth of around 195.2% from the online social platforms business, which contributed approximately US$43.5 million[12]. - The gross profit for the year was approximately US$27.7 million, with about US$9.4 million coming from the online social platforms operation[26]. - Operating expenses increased to approximately US$33.0 million, primarily due to the growth in the online social platforms business[27]. - The loss for the year amounted to approximately US$84.2 million, which included non-cash impairment losses on goodwill of approximately US$66.5 million[28]. - Excluding non-cash impairment losses, the Group's profit for the year would have been approximately US$8.6 million[28]. - Gross profit for the year ended December 31, 2018, was approximately US$27.7 million, compared to US$18.2 million for the eight months ended December 31, 2017[30]. - Operating expenses for the year ended December 31, 2018, were approximately US$33.0 million, an increase from US$23.6 million for the eight months ended December 31, 2017, primarily due to increased expenses in the online social platform segment[30]. - The Group reported a loss of approximately US$84.2 million for the year ended December 31, 2018, compared to a loss of US$76.2 million for the eight months ended December 31, 2017[31]. - Revenue from trading and supply chain management services was approximately US$64.0 million, representing about 59.5% of the Group's total revenue, down from approximately 81.1% for the eight months ended December 31, 2017[44]. - Revenue from the operation of online social platforms surged by 195.2% to approximately US$43.5 million, contributing around 40.5% of the Group's total revenue[45]. Market and Business Strategy - The number of Internet users in China reached 829 million as of December 2018, with 817 million using mobile phones, indicating a significant market opportunity[16]. - Daohe Global plans to terminate its money lending business in 2019 to focus resources on trading, supply chain management services, and online social platforms, which have greater development potential[17]. - The company aims to develop more mobile games to meet the demand for innovative online social and entertainment experiences[16]. - Daohe Global will explore other areas suitable for procurement to satisfy the needs of US-based business partners[13]. - The company has established long-term relationships with brand partners and retail customers, which will help navigate challenges posed by the ongoing China-US trade dispute[13]. - The management expects challenges in trading and supply chain management services due to the ongoing China-US trade dispute, particularly affecting exports in the first half of 2019[81]. - The Group plans to expand procurement beyond China to meet customer requirements, especially from US clients, while continuing to enhance product offerings and competitive pricing[82]. Impairment and Losses - The Group recognized non-cash impairment losses on goodwill and other intangible assets of approximately US$66.5 million and US$21.7 million, respectively, due to a challenging business environment[51]. - The Group recognized an impairment loss of US$75.5 million for goodwill and other intangible assets for the year ended December 31, 2018, due to anticipated declines in future earnings from two business segments[56]. - The trading and supply chain management services segment recognized an impairment loss of US$12.7 million, with US$9.7 million provided in the interim results due to a challenging business environment and reduced customer orders[59]. - A further impairment loss of US$3 million was recognized for the trading and supply chain management segment for the year ended December 31, 2018, primarily due to fewer orders from U.S. customers affected by the China-US trade war[60]. Cash and Assets - As of December 31, 2018, the Group's cash and cash equivalents amounted to approximately US$17.2 million, an increase from US$13.3 million in 2017[72]. - The Group's current ratio was approximately 1.6, with a gearing ratio of zero, indicating no interest-bearing borrowings[73]. - Trade receivables as of December 31, 2018, were approximately US$8.8 million, with US$1.2 million aged over 90 days being closely monitored[74]. - The Group's net asset value decreased to approximately US$24.6 million as of December 31, 2018, down from approximately US$111.5 million in 2017[74]. Corporate Governance - The Company has adopted the Corporate Governance Code as stated in the Listing Rules on The Stock Exchange of Hong Kong Limited[126]. - During the year ended 31 December 2018, the Company complied with all applicable Code Provisions of the CG Code, except for certain deviations[127]. - The Board of Directors consisted of seven Directors, including three Executive Directors, one Non-executive Director, and three Independent Non-executive Directors during the year ended 31 December 2018[135]. - The Board had six Directors after the resignation of Mr. YU Lei as an Executive Director effective from 1 January 2019[135]. - The Company established written guidelines for securities transactions by employees likely to possess unpublished inside information, with no incidents of non-compliance noted during the year[129]. - The Directors have given sufficient time and attention to the Company's affairs during the year ended 31 December 2018[136]. - Independent Non-executive Directors provide diversified skills and expertise, ensuring the interests of all Shareholders are considered[137]. - The Company maintains an updated list of Directors identifying their roles and functions on its website and the Stock Exchange[138]. - The Company has adopted a Board Diversity Policy to ensure a diverse mix of skills, knowledge, and experience among Board members, which is essential for effective governance[143][144]. - The Nomination Committee is responsible for assessing Board diversity and ensuring an appropriate balance of perspectives, skills, and experience[145]. - The Company has implemented a Director Nomination Policy to maintain a suitable mix of skills and experience on the Board[148]. - The Board meets regularly to review and approve financial and operational performance, ensuring compliance with corporate governance standards[159]. - The Company has arranged appropriate insurance coverage for directors' and officers' liabilities to protect against legal actions arising from corporate activities[150]. - The management provides monthly updates and financial accounts to the Board to ensure informed decision-making[152]. - The Board is collectively responsible for promoting the success of the Group and making decisions in the best interests of the Company[151]. - The Company emphasizes the importance of training and continuous professional development for Directors and senior management[157]. - The Board is tasked with developing and reviewing the Company's corporate governance policies and practices[158]. - The Company has four Board committees, including Executive, Audit, Remuneration, and Nomination[164]. Management and Directors - Mr. Ho Chi Kin has over 20 years of experience in wealth management services across the USA, Hong Kong, and mainland China, focusing on corporate restructuring and mergers and acquisitions[99]. - The company has appointed Mr. Ho as Chief Financial Officer since January 1, 2018, and he is also a member of the Executive Committee of the Board[100]. - Mr. Wang Arthur Minshiang has been an Independent Non-executive Director since April 22, 2002, and is currently the Chairman of the Remuneration Committee[102]. - Mr. Lau Shu Yan, appointed as an Independent Non-executive Director on January 11, 2017, is the Chairman of the Audit Committee[108]. - Mr. Zhang Huijun has been an Independent Non-executive Director since January 11, 2017, and is a member of the Audit, Remuneration, and Nomination Committees[113]. - The company has a diverse board with members holding extensive experience in finance, accounting, and corporate governance[99][100][102][108][113]. - The management team includes professionals with qualifications from prestigious institutions, enhancing the company's strategic decision-making capabilities[99][100]. - The company is focused on expanding its corporate restructuring and financial consulting services in mainland China[99]. - The board's composition reflects a strong commitment to governance and oversight, with independent directors actively participating in key committees[102][108]. - The company aims to leverage its management's extensive experience to enhance shareholder value through strategic initiatives[99][100]. Director Remuneration - Mr. WONG Hing Lin, Dennis was appointed as the Chief Executive Officer and Chairman of the Executive Committee effective from January 1, 2019[165]. - Mr. HO Chi Kin was appointed as Chief Financial Officer effective from January 1, 2018[165]. - The attendance of Mr. WONG Hing Lin at Board meetings was 4 out of 4, and at Executive Committee meetings was 6 out of 6[168]. - The Company held a total of 4 Board meetings and 2 Audit Committee meetings during the year ended December 31, 2018[168]. - The roles of Chairman and CEO are segregated, with responsibilities clearly defined[174]. - The Company ensures that all Directors are subject to retirement by rotation and eligible for re-election at least once every three years[176]. - Key issues and decisions made during meetings were communicated to Directors in a timely manner[173]. - The Board is satisfied that each Director spends sufficient time performing their responsibilities[173]. - The Company circulates written resolutions for approval by Board members, except in cases of conflict of interest[172]. - Mr. WONG Hing Lin, Dennis's director salary increased to HK$450,000 per month effective from January 1, 2019[190]. - Mr. HO Chi Kin's director salary increased to HK$120,000 per month effective from January 1, 2019[190]. - Mr. HO Chi Kin appointed as company secretary effective from August 24, 2018[191]. - Mr. HO Chi Kin acted as chairman of the 2018 AGM due to Mr. ZHOU Xijian's absence[180]. - All Independent Non-executive Directors confirmed their independence as per Rule 3.13 of the Listing Rules[182]. - Mr. WANG Arthur Minshiang has served as Independent Non-executive Director for over nine years and was re-elected at AGMs held on August 27, 2012, and August 27, 2015[182]. - The Company provides ongoing professional development and updates to Directors regarding business and regulatory changes[186][187]. - The Company has a clear separation of roles between the Chairman and the Chief Executive Officer[179]. - The Company ensures all Directors receive tailored induction upon appointment to understand their responsibilities[183]. - The Company has formal letters of appointment for all Independent Non-executive Directors outlining key terms[181]. - Mr. Huang's director salary increased to HKD 450,000 per month starting January 1, 2019[193]. - Mr. Ho's director salary increased to HKD 120,000 per month starting January 1, 2019[194]. - Mr. Ho has been serving as the Company Secretary since August 24, 2018, and is also the Executive Director and Chief Financial Officer[195]. - The Company has four committees: Executive Committee, Audit Committee, Remuneration Committee, and Nomination Committee, overseeing specific aspects of the Company's affairs[200].