Economic Performance - The company reported a stable growth in the Chinese mainland and Hong Kong economies despite a challenging environment, showcasing strong potential and resilience[8]. - For 2025, the company anticipates stable growth in the Chinese economy, which will support its development and provide opportunities in the licensing business related to cross-border "bad assets" investments[10]. - The group recorded revenue of approximately HKD 92,441,000, a decrease from HKD 202,143,000 in the previous year, representing a decline of about 54.3%[26]. - The total loss for the year was approximately HKD 241,044,000, reduced from a loss of HKD 566,793,000 in the previous year, showing an improvement of about 57.5%[26]. - The company reported a significant increase in customer relationships, focusing on providing high-quality services to maintain stable business and asset growth, as well as long-term profitability[86]. Risk Management - The company implemented multiple measures to accelerate the resolution of existing risks, achieving positive results in reducing risk exposure through substantial restructuring and litigation recovery[10]. - The company is committed to compliance and risk management, integrating compliance concepts into its corporate culture[10]. - The group is focusing on risk management and exploring opportunities in distressed asset management to seek counter-cyclical investment returns[31]. - The group has established credit risk policies and processes for assessing expected credit losses in accordance with Hong Kong Financial Reporting Standard 9[48]. - The group is actively monitoring credit risks associated with loans and debt instruments, and will take remedial actions if there are signs of overdue repayments or declines in collateral value[49]. Management and Governance - Management optimization efforts led to effective control and reduction of management costs, enhancing team cohesion and operational efficiency[10]. - The company aims to enhance its corporate image and adopt lean management practices to drive high-quality transformation and development[10]. - The company’s board of directors includes experienced members with backgrounds in asset management and human resources, enhancing governance and strategic direction[12][13]. - The company has a strong board with members possessing diverse expertise in finance, law, and management, contributing to strategic decision-making[19]. - The company has established a governance structure with clear responsibilities for risk management, including a Risk Management Committee and an Audit Committee[162]. Financial Performance - The net gain from financial assets measured at fair value through profit or loss was approximately HKD 105,358,000, compared to a net loss of HKD 202,905,000 in the previous year, indicating a significant turnaround[26]. - Basic loss per share for the year was HKD 0.074, down from HKD 0.111 in the previous year, reflecting a decrease in loss per share of approximately 33.3%[27]. - Securities business revenue was approximately HKD 4,936,000, down from HKD 11,252,000 in the previous year, a decline of about 56% due to reduced interest income and lower market activity[30]. - The asset management and direct investment segment reported revenue of approximately HKD 87,505,000, down from HKD 137,058,000 in the previous year, a decrease of about 36.2% attributed to reduced asset scale and interest income[32]. - The group achieved a profit of approximately HKD 14,736,000 in the securities business, a recovery from a loss of HKD 819,000 in the previous year, indicating a positive shift in performance[30]. Shareholder and Corporate Governance - The company has a structured board with both executive and non-executive directors, ensuring governance and oversight[87]. - The company has adopted and complied with all applicable provisions of the Corporate Governance Code during the year[105]. - The company has established a shareholder communication policy to facilitate investor engagement and feedback[173]. - The company has maintained a high level of corporate governance practices, aligning with the long-term interests of shareholders[112]. - The company has established appropriate liability insurance for its directors and senior officers to protect against legal actions arising from company business[129]. Sustainability and ESG - The environmental, social, and governance (ESG) report outlines the company's commitment to sustainable development and its efforts in ESG management[184]. - The company is actively optimizing its sustainable development strategy in response to climate change and the government's dual carbon goals[195]. - The company aims to enhance its market competitiveness by continuously improving its ESG management system and effectively managing environmental and social risks[197]. - The company has disclosed quantifiable key performance indicators (KPIs) related to environmental and social aspects, ensuring data accuracy through internationally recognized standards[188]. - The company is committed to creating long-term value for stakeholders by deepening its ESG strategy and setting more specific sustainable development goals[196]. Internal Controls and Audit - The company has implemented rigorous internal controls and review procedures to ensure the accuracy and reliability of the report's content[189]. - The internal audit team and external agencies conduct regular evaluations of the internal control system's operation and report to the Audit Committee[163]. - The audit committee reviewed the annual performance and consolidated financial statements for the year[108]. - The audit fees for the fiscal year ending December 31, 2024, amounted to HKD 2,800,000 for audit services, a decrease of 25.7% from HKD 3,770,000 in 2023[167]. - The company has established a framework for identifying, measuring, and monitoring risks effectively[156].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 92,441,000, a decrease of 54.3% compared to HKD 202,143,000 in 2023[2] - Commission and service fee income decreased to HKD 5,990,000 from HKD 15,115,000, representing a decline of 60.3%[2] - Interest income calculated using the effective interest method fell to HKD 76,446,000, down 44.2% from HKD 136,654,000[2] - The net loss before tax for the year was HKD 264,783,000, compared to a loss of HKD 566,653,000 in the previous year, showing an improvement of 53.3%[3] - The total comprehensive loss for the year was HKD 217,036,000, a reduction from HKD 522,425,000 in 2023, indicating a 58.6% improvement[4] - The group reported a loss of HKD 241 million for the year, an improvement from a loss of HKD 567 million in 2023[10] - The basic loss per share improved to HKD (0.074) from HKD (0.111), a reduction in loss of 33.3%[3] Assets and Liabilities - Non-current assets decreased to HKD 1,083,985,000 from HKD 1,311,801,000, a decline of 17.3%[5] - Current assets significantly dropped to HKD 981,785,000 from HKD 2,606,465,000, a decrease of 62.3%[5] - Total liabilities increased to HKD 6,339,151,000 from HKD 5,570,920,000, reflecting a rise of 13.8%[6] - The group's net liabilities increased to HKD 2,273 million in 2024 from HKD 1,657 million in 2023[10] - Total assets as of December 31, 2024, amounted to HKD 2,065,770,000, a decrease from HKD 3,918,266,000 in 2023, representing a decline of approximately 47.4%[31] - The total liabilities as of December 31, 2024, were HKD 4,339,151,000, compared to HKD 5,574,920,000 in 2023, indicating a reduction of approximately 22.2%[31] Cash Flow and Financial Support - The company reported a significant decrease in cash and bank deposits, which fell to HKD 413,122,000 from HKD 1,581,355,000, a decline of 73.9%[5] - The total bank credit available to the group as of December 31, 2024, was HKD 100 million, significantly reduced from approximately HKD 1,706 million in 2023[10] - The indirect controlling shareholder has committed to providing financial support, with total loans and perpetual securities amounting to HKD 10.1 billion as of December 31, 2024, down from HKD 10.5 billion in 2023[11] - The group plans to actively develop its licensing business, focusing on securities brokerage, asset management, and corporate finance[14] - The group aims to improve cash flow by concentrating resources on recovering existing project cash flows and controlling administrative costs[13] Credit Risk and Impairment - The expected credit loss provision for the entire available period is 88.4% in 2024, down from 99.5% in 2023[63] - The company has established credit risk policies and processes for impairment assessment under HKFRS 9, categorizing projects into three stages based on credit risk[99] - The group has recognized an impairment provision of approximately HKD 243 million for a fixed income investment due to a decline in the net asset value of the collateral[102] - The company’s expected credit loss provision for finance lease receivables was HKD 166,034,000 as of December 31, 2024, a decrease from HKD 512,335,000 in 2023, indicating a significant improvement[51] Operational Efficiency and Strategy - The group is focusing on enhancing risk control measures and operational efficiency to adapt to the challenging economic environment[75] - The group plans to focus on improving operational efficiency and customer service quality while exploring differentiated competitive advantages[84] - The group aims to deepen its asset management business in the "bad asset" sector, leveraging its experience in distressed asset management[84] Corporate Governance and Compliance - The company has adopted and complied with the corporate governance principles as outlined in the listing rules[120] - The board of directors confirmed full compliance with the standards for securities trading throughout the year[121] - The audit committee, composed of three independent non-executive directors, has reviewed the group's financial reporting system and internal controls[122] Employee and Management Changes - The group employed a total of 12 employees as of December 31, 2024, down from 16 employees as of December 31, 2023, indicating a reduction of 25% in workforce[114] - The board of directors has undergone changes, with Mr. Zhang Xing resigning as chairman and non-executive director effective November 8, 2024, and Mr. Wang Cheng appointed as the new chairman[116]

Financial Performance - The company recorded revenue of approximately HKD 48,697,000 for the period, down from HKD 64,436,000 in the previous period, representing a decrease of about 24.5%[4]. - The net profit for the period was approximately HKD 142,581,000, a significant improvement from a net loss of HKD 458,361,000 in the previous period[4]. - The basic loss per share for the period was HKD 0.7 cents, compared to HKD 7.6 cents in the previous period, indicating a reduction in losses[4]. - Total revenue for the six months ended June 30, 2024, was HKD 48,697,000, a decrease of 24.4% compared to HKD 64,436,000 for the same period in 2023[37]. - The company reported a net loss attributable to owners of HKD 57,447,000 for the six months ended June 30, 2024[42]. - The total comprehensive loss for the period was HKD 55,381,000, which includes other comprehensive income adjustments[42]. - The company reported a profit of HKD 143 million for the six months ended June 30, 2024, a turnaround from a loss of HKD 458 million in the same period last year[50]. - The total comprehensive income for the period was HKD 144,647,000, recovering from a loss of HKD 427,581,000 in the same period last year[38]. Business Segments - The securities business generated income of approximately HKD 5,050,000, an increase from HKD 2,743,000 in the previous period, reflecting a growth of about 84.5%[7]. - The asset management and direct investment segment reported income of approximately HKD 46,440,000, down from HKD 58,642,000 in the previous period, a decrease of about 20.8%[9]. - The securities business recorded a profit of approximately HKD 2,747,000 for the period, compared to a loss of HKD 11,292,000 in the previous period, indicating a positive shift in performance[7]. - The asset management and direct investment segment generated a profit of HKD 159,690 thousand, contrasting with a loss of HKD 360,398 thousand in the previous year[61][62]. Financial Position - As of June 30, 2024, the company's total issued shares were 8,709,586,011, with total equity attributable to shareholders amounting to approximately negative HKD 1.712 billion[14]. - The group's cash and bank deposits totaled approximately HKD 627.6 million as of June 30, 2024, down from approximately HKD 1.581 billion at the end of 2023[16]. - The asset-liability ratio increased to 150% as of June 30, 2024, compared to 130% at the end of 2023, primarily due to a decrease in total assets[16]. - The group has drawn down bank credit of approximately HKD 200 million as of June 30, 2024, compared to approximately HKD 820 million at the end of 2023[17]. - The company’s total liabilities decreased from HKD 5,103,868,000 as of December 31, 2023, to HKD 3,977,067,000 as of June 30, 2024[106]. - The total assets as of June 30, 2024, amounted to HKD 2,647,818 thousand, down from HKD 3,918,266 thousand as of December 31, 2023[63][64]. - The total equity as of June 30, 2024, was HKD 6,288,630 thousand, reflecting a decrease from HKD 6,242,484 thousand at the beginning of the period[44]. Cash Flow and Financing - The company generated net cash inflow from operating activities of HKD 438,989 thousand, down from HKD 813,417 thousand in the previous year[46]. - The net cash outflow from financing activities was HKD 1,469,797 thousand, compared to an outflow of HKD 326,684 thousand in the prior period[46]. - The company plans to actively improve cash flow by focusing resources on recovering cash flows from existing projects and investments while controlling administrative costs[55]. - The company has implemented measures to sell publicly traded bonds and listed equity securities to alleviate liquidity pressure when necessary[54]. - The company aims to maintain sufficient operating funds to meet its financial obligations due within the next twelve months[56]. Risk Management and Impairment - The company emphasized strengthening risk management and focusing on core business during a challenging economic environment[5]. - The company recognized an impairment provision of approximately HKD 247,527,000 due to the increase in the fair value of collateral shares during the reporting period[24]. - The company has established credit risk policies and processes for impairment assessment under HKFRS 9, categorizing financial instruments into three stages based on credit risk[25]. - The company recorded a net reversal of impairment provisions of approximately HKD 210 million during the period, primarily due to an increase in the fair value of collateral from a margin financing project[26]. - The company is actively monitoring the financial status of borrowers and collateral to minimize credit risk[86]. Shareholder and Corporate Governance - The company has adopted and complied with all applicable corporate governance codes during the period[133]. - All directors confirmed compliance with the standard code of conduct for securities trading during the reporting period[134]. - The company believes that the ongoing legal claims will not significantly impact its normal business operations[127]. - The company is committed to ensuring the fund meets its obligations as a liquidity provider[127]. Future Outlook and Strategy - The company provided a positive outlook for the second half of 2024, projecting a revenue growth of 25% year-over-year[140]. - Market expansion plans include entering two new Southeast Asian countries by Q4 2024, aiming for a 10% market share within the first year[140]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of up to RMB 500 million for potential targets[140]. - The company aims to increase its dividend payout ratio to 30% in the upcoming fiscal year, reflecting strong cash flow generation[140].

Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of HKD 48,697,000, a decrease of 24.7% compared to HKD 64,436,000 for the same period in 2023[1]. - The net profit for the period was HKD 142,581,000, a significant recovery from a loss of HKD 458,361,000 in the previous year[2]. - The total comprehensive income for the period was HKD 144,647,000, compared to a loss of HKD 427,581,000 in the same period last year[2]. - The group reported a profit of HKD 143 million for the six-month period ending June 30, 2024, recovering from a loss of HKD 458 million in the same period of 2023[7]. - The group reported a pre-tax profit of 118,574,000, with a tax credit of 24,007,000, resulting in a profit for the period of 142,581,000[19]. - The group recorded a net profit of approximately HKD 142,581,000 for the current period, a significant improvement from a net loss of HKD 458,361,000 in the previous period[61]. Revenue Breakdown - Commission and service fee income increased to HKD 2,350,000 for the six months ended June 30, 2024, from HKD 6,119,000 in the previous year, reflecting a decline of about 61.6%[21][23]. - Interest income for the six months ended June 30, 2024, was HKD 45,567,000, a decrease from HKD 58,317,000 in the same period of 2023, indicating a drop of approximately 21.8%[21][23]. - The group’s income from external customers in Hong Kong for the six months ended June 30, 2024, was HKD 48,030,000, down from HKD 63,006,000 in the same period of 2023, a decrease of approximately 23.7%[28]. - The group’s income from external customers in mainland China for the six months ended June 30, 2024, was HKD 667,000, down from HKD 1,430,000 in the same period of 2023, reflecting a decline of about 53.3%[28]. - The group reported a total customer contract revenue of 2,350,000 HKD, down 61.6% from 6,119,000 HKD in the previous year[32]. Assets and Liabilities - Non-current assets totaled HKD 1,269,646,000 as of June 30, 2024, a slight decrease from HKD 1,311,801,000 at the end of 2023[3]. - Current assets decreased significantly to HKD 1,378,172,000 from HKD 2,606,465,000 at the end of 2023[3]. - Current liabilities were reported at HKD 579,506,000, down from HKD 2,787,867,000 at the end of 2023[4]. - The company's total liabilities amounted to HKD 4,359,077,000, an increase from HKD 3,570,422,000 at the end of 2023[4]. - Total assets as of June 30, 2024, amounted to HKD 2,647,818,000, a decrease from HKD 3,918,266,000 as of December 31, 2023, reflecting a decline of approximately 32.5%[24]. - Total liabilities as of June 30, 2024, were HKD 4,360,077,000, compared to HKD 5,574,920,000 as of December 31, 2023, indicating a reduction of about 22%[24]. Cash Flow and Financing - The group plans to improve cash flow by focusing on recovering cash from existing projects and investments while controlling administrative costs[12]. - The group has implemented measures to enhance liquidity, including negotiating bank loans and selling marketable securities if necessary[11]. - The group has utilized HKD 200 million of its bank credit facilities as of June 30, 2024, compared to HKD 820 million utilized as of December 31, 2023[9]. - The group has unutilized bank standby credit of approximately HKD 620,000,000 as of June 30, 2024, compared to approximately HKD 886,626,000 as of December 31, 2023[72]. - The company’s total cash and bank deposits amounted to approximately HKD 627,595,000 as of June 30, 2024, a decrease from approximately HKD 1,581,355,000 as of December 31, 2023[70]. Credit Risk and Impairment - The group reported a net impairment reversal of HKD 214,006,000 for receivables and other receivables for the six months ended June 30, 2024[25]. - The expected credit loss provision decreased to HKD 132,119,000 as of June 30, 2024, from HKD 512,335,000 as of December 31, 2023[43]. - The company is actively monitoring the financial condition of borrowers to minimize credit risk[48]. - The company’s management believes that the impairment provisions for the period are adequate[48]. - The total expected credit loss provision (with credit impairment) was HKD 93,304,000 as of June 30, 2024, slightly down from HKD 94,083,000 as of December 31, 2023[52]. Corporate Governance and Compliance - The company has adopted all applicable corporate governance codes as per the listing rules during the reporting period[93]. - The audit committee has reviewed the group's unaudited interim financial information for the period, ensuring compliance with accounting principles and practices[94]. - The interim report will be published in September 2024 on the Hong Kong Stock Exchange website and the company's website[95]. Strategic Focus and Future Plans - The company continues to explore new strategies for market expansion and product development to enhance future performance[1]. - The group continues to focus on developing its licensing business, including securities brokerage, asset management, and corporate finance, seeking opportunities to explore new markets[13]. - The company plans to focus on enhancing operational efficiency and customer service quality while exploring differentiated competitive advantages in the market[68]. - The group aims to maintain sufficient financial resources to meet its obligations and liabilities as they come due[10].

Economic Environment - The Hang Seng Index fell by 13.82% in 2023, marking the fourth consecutive year of decline[6]. - The overall economic environment remains challenging, with geopolitical tensions and high inflation impacting market liquidity and growth prospects[28]. - The company anticipates significant uncertainty in the global economy in 2024 due to geopolitical tensions and high market interest rates, which may impact economic growth in mainland China and Hong Kong[39]. Financial Performance - The company recorded revenue of approximately HKD 202,143,000, a decrease from HKD 276,630,000 in the previous year, representing a decline of about 27%[26]. - The company's revenue for the year was approximately HKD 137,058,000, down from HKD 225,155,000 in the previous year, primarily due to a reduction in risk assets and interest income[36]. - The net loss for the year was approximately HKD 566,793,000, significantly reduced from a loss of HKD 2,228,026,000 in the previous year, marking an improvement of about 74%[26]. - Basic loss per share was HKD 0.111, down from HKD 0.287 in the previous year, indicating a reduction in loss per share by approximately 61%[27]. - The financial services segment recorded revenue of approximately HKD 51,232,000, an increase from HKD 35,600,000 in the previous year, and net income from the sale of financial assets was approximately HKD 102,114,000, compared to HKD 0 in the previous year[37]. Risk Management - The company focused on risk management and improved asset quality, effectively reducing risk exposure in its existing projects[32]. - The risk management framework has been strengthened, with a focus on compliance and regulatory adherence, reducing potential liabilities by 10%[22]. - The company emphasizes the importance of early layout and targeted strategies in asset disposal to maximize value[7]. - The company aims to strengthen its asset management services, particularly in the distressed asset sector, to capitalize on market opportunities[35]. - The company has implemented daily risk monitoring for financing lease projects, tracking any delays in lease payments or breaches of contract[72]. Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the year[134]. - The board has adopted a diversity policy for its members, aiming to gradually appoint at least one female director by the end of 2024[153]. - The company has arranged appropriate liability insurance for its directors and senior officers to protect against legal actions arising from business activities[161]. - The audit committee has reviewed the accounting principles and practices adopted by the group for the year[137]. - The company has established six board committees, including the audit committee, to ensure adequate resources are available for fulfilling their duties[177]. Strategic Initiatives - The company is transitioning to a light asset operation model, enhancing its "investment + investment banking" business synergy[10]. - The company plans to enhance corporate governance and improve revenue-generating capabilities in 2024[10]. - The company aims to improve operational efficiency, targeting a reduction in costs by 5% through process optimization initiatives[15]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[18]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on digital asset management solutions[19]. Human Resources - The company employed 16 employees as of December 31, 2023, down from 43 employees a year earlier, indicating a significant reduction in workforce[75]. - The group values employee relationships by providing competitive compensation and a good working environment, along with various training opportunities[106]. - The company provides equal opportunities for all employees, ensuring no discrimination based on gender, race, age, nationality, or other aspects of diversity[160]. Sustainability - The board of directors emphasized a commitment to sustainable practices, aiming for a 40% reduction in carbon footprint by 2030[19]. - The group emphasizes environmental responsibility by encouraging employees to reduce energy and paper consumption, and comply with environmental laws[103]. - The Sustainable Development Committee was composed of two independent non-executive directors and one executive director, with Dr. Lin Jiali serving as the chairman until March 31, 2024, when Mr. Guan Wanfai will take over as chairman[198]. Investment and Assets - The company reported a significant increase in total assets, reaching approximately HKD 10 billion, representing a growth of 15% year-on-year[14]. - The group holds significant securities investments, including 1,836,000 shares of Yucheng Technology Holdings Limited, with a cost of HKD 7,803,000 and a fair value of HKD 75,000 as of December 31, 2023[54]. - The fair value of the China Special Opportunities Fund SP1 investment decreased to HKD 262,223,000 from HKD 293,095,000 year-over-year, representing a decline of approximately HKD 31,660,000[54]. Debt and Financing - The debt-to-asset ratio increased to 130% as of December 31, 2023, from 102% the previous year, primarily due to a decrease in total assets[44]. - The company has secured loans totaling approximately USD 1,069,233,000 (approximately HKD 8,352,179,000) from China Huarong International Holdings to support its operations[45]. - As of December 31, 2023, the outstanding loan amount under Financing Agreement I is HKD 620 million[128]. - Financing Agreement II has a total financing amount of up to HKD 200 million, requiring repayment as per bank's request[129]. Impairment and Provisions - The group recorded a net impairment loss of approximately HKD 260 million for the year, primarily due to the downgrade of three real estate bonds, resulting in an impairment provision of about HKD 84 million[61]. - The fair value impairment provision for public bonds amounted to HKD 82.11 million, with an investment cost of HKD 678 million and a book value of HKD 134 million[64]. - The company has implemented a mechanism to ensure that the board receives independent opinions and perspectives effectively throughout the year[170].

Financial Performance - The company reported a total annual loss of HKD 566,793,000 for 2023, compared to a loss of HKD 2,228,026,000 in 2022, representing a significant improvement [8]. - Total revenue for 2023 was HKD 202,143,000, down from HKD 276,630,000 in 2022, indicating a decrease of approximately 27% [23]. - The group reported a net loss before tax of HKD 566.65 million, compared to a loss of HKD 2.25 billion in the previous year [75]. - The group reported a pre-tax loss of HKD 2,254,487,000 for the year ended December 31, 2022 [127]. - The company reported a loss attributable to equity holders of HKD 967,291,000 for the year 2023, compared to a loss of HKD 2,500,007,000 in 2022, indicating a significant improvement in performance [139]. - The net loss for the year was approximately HKD 566,793,000, a significant reduction from the previous year's loss of HKD 2,228,026,000, indicating an improvement of about 75% [195]. - Shareholders' attributable loss for the year was approximately HKD 967,291,000, compared to HKD 2,500,007,000 in the previous year, reflecting a decrease of about 61% [195]. Revenue and Income - The company’s interest income calculated using the effective interest method decreased to HKD 136,654,000 in 2023 from HKD 151,266,000 in 2022, a decline of about 10% [23]. - The total income from commissions and service fees was HKD 15,115 million, showing a stable revenue stream [103]. - The group generated total income of HKD 202,143,000 in 2023, down from HKD 276,630,000 in 2022, representing a decrease of approximately 27% [133]. - Revenue from external customers in Hong Kong decreased to HKD 150,911,000 in 2023 from HKD 240,136,000 in 2022, reflecting a decline of approximately 37.2% [130]. Assets and Liabilities - The company’s total liabilities increased to HKD 2,783,549,000 in 2023 from HKD 4,274,440,000 in 2022, reflecting a decrease of about 35% [16]. - The total value of current assets decreased to HKD 2,606,465,000 in 2023 from HKD 4,529,248,000 in 2022, a reduction of approximately 42% [28]. - The total asset value reached HKD 3,918,266,000, while total liabilities were HKD 5,574,920,000 [91]. - The total value of other loans and debt instruments as of December 31, 2023, was approximately HKD 1.322 billion, with an expected credit loss provision of HKD 908.648 million [177]. Cash Flow and Financing - The company has extended a bank loan of HKD 200,000,000, with the next review date set for August 2024 [38]. - The total bank credit line as of December 31, 2023, is HKD 1,706,626,000, with HKD 820,000,000 already utilized [58]. - A bank loan of HKD 620 million is scheduled for repayment in February 2024 [78]. - The group has implemented measures to recover cash flow from projects and control capital expenditures [59]. Strategic Initiatives - The group will focus on improving cash flow by concentrating resources on recovering existing projects and investments over the next year [41]. - The group aims to enhance marketing efforts for its existing funds and financial services, leveraging internal coordination and cross-business collaboration [44]. - The group is focusing on the retail market segment and wealth management business as part of its strategic initiatives [42]. - The group plans to actively develop licensing businesses and provide integrated financial services to clients [59]. - The group is enhancing resource coordination and external collaboration to expand its business network [62]. Risk Management and Compliance - The group aims to enhance risk control measures and improve communication with clients to ensure normal repayment of existing projects [198]. - The company has made provisions for expected credit losses based on past credit loss experiences and future cash flow estimates [148]. - The company’s management noted that the economic impact from the US-China trade dispute and recent COVID-19 outbreaks has significantly affected its operations [151]. Impairment and Credit Losses - The group recognized a significant impairment provision of HKD 259,925,000 for direct investments in debt instruments, down from HKD 1,219,618,000 in the previous year, marking a reduction of approximately 79% [195]. - The net impairment provision for accounts receivable at the end of 2023 was HKD 76.286 million, a decrease from HKD 133.289 million in 2022 [163]. - The expected credit loss provision for remaining accounts receivable was approximately HKD 291 million, compared to HKD 284 million in 2022 [164]. Market Conditions - The overall economic recovery in Hong Kong remains slow, with the market entering a downturn, posing ongoing challenges for the group's operations [196]. - The group is focusing on compliance operations, accelerating business transformation, and increasing marketing and business expansion efforts in a challenging economic environment [197].

Financial Performance - The company's revenue from asset management and direct investment for the period was approximately HKD 58,642,000, down from HKD 105,142,000 in the previous period, with net losses from financial assets decreasing from HKD 291,476,000 to HKD 180,695,000[11]. - The group recorded a basic loss per share of HKD 0.076, compared to a basic loss per share of HKD 0.167 in the previous period[22]. - The division's revenue for the period was approximately HKD 1,430,000, down from HKD 25,187,000 in the previous period, with division losses decreasing to approximately HKD 30,322,000 from HKD 262,416,000[28]. - As of June 30, 2023, the group recorded revenue of approximately HKD 64,436,000, a decrease from HKD 135,889,000 in the previous period[46]. - The net loss for the period was approximately HKD 458,361,000, significantly reduced from a net loss of HKD 1,346,573,000 in the previous period[46]. - Total revenue for the six months ended June 30, 2023, was HKD 64,436,000, a decline of 52.6% compared to HKD 135,889,000 in the same period last year[107]. - The company reported a total loss for the period of HKD (458,361,000) for the first half of 2023[161]. - The company reported a loss attributable to ordinary equity holders of HKD 658,804,000 for the six months ended June 30, 2023, compared to a loss of HKD 1,457,379,000 in the same period of 2022[198]. Asset Management and Investment Strategy - The group’s asset management and direct investment business focuses on distressed assets and corporate rescue themes, aiming to identify counter-cyclical investment opportunities[48]. - The company plans to focus on expanding its asset management business, particularly in cross-border services and high-yield bond funds, to enhance management fee income[54]. - The company is focusing on restructuring asset acquisition opportunities to address significant non-performing core business issues[123]. - The company is focusing on the "big bad" alternative investment transformation and actively managing its asset management business[140]. - The group plans to increase resource investment in areas such as overseas privatization, equity mergers and acquisitions, and cross-border asset acquisitions[31]. Financial Position and Liquidity - The group held USD loans of approximately USD 260,940,000 (equivalent to about HKD 2,045,054,000) as of June 30, 2023, unchanged from the previous period[34]. - The group has unused bank standby credit of approximately HKD 883,491,000, providing additional liquidity if needed[35]. - The total cash and bank deposits of the company as of June 30, 2023, were approximately HKD 2,491,087,000, an increase from approximately HKD 1,986,641,000 as of December 31, 2022[57]. - The company obtained shareholder loans and perpetual capital bonds totaling approximately USD 1,069,233,000 (equivalent to approximately HKD 8,358,233,000) as of June 30, 2023, for operational funding[58]. - The group’s total bank credit as of June 30, 2023, was approximately HKD 2,482,491,000, with HKD 1,599,000,000 utilized[115]. Risk Management - The group aims to improve risk control measures and enhance communication with clients to ensure the repayment of normal projects[12]. - The risk management department continuously evaluates the impairment of financial assets, including financing lease projects, and communicates the impact on financial reports to management and the board[94]. - The board's audit committee meets quarterly to discuss impairment situations and significant accounting matters, ensuring oversight of the group's risk and internal control mechanisms[94]. - The group conducts ongoing risk monitoring for financing lease projects, with actions taken for overdue payments, including sending collection notices and maintaining close communication with debtors[91]. - The group is committed to continuous improvement of its risk management and internal control systems, with regular reports to the board on risk dynamics and impairment provisions[94]. Employee Development - The group emphasizes employee development through various training programs and offers incentives based on performance and compliance[87]. - The group aims to retain and motivate capable employees by providing competitive compensation and benefits, including group medical and life insurance plans[87]. - As of June 30, 2023, the group employed a total of 36 employees, down from 43 employees as of December 31, 2022[87]. Impairment and Financial Assets - The company recognized an impairment provision of approximately HKD 30 million for a fixed income investment project due to low recoverability of accrued interest[70]. - A net impairment loss of approximately HKD 133 million was reported during the period, primarily due to two financing lease projects related to companies in the wind and solar power sectors facing cash flow difficulties[75]. - The fair value of public bonds classified as financial assets at fair value through other comprehensive income was approximately HKD 678 million, with a net impairment provision of HKD 30 million during the period[83]. - The impairment provision for other loans and debt instruments was HKD 59,591,000, a decrease from HKD 240,125,000 in the previous year[187]. Future Outlook - The group anticipates that the economic situation in the second half of the year will remain challenging, and it aims to seize market opportunities during this special period[29]. - The board is confident in the feasibility of the business plan for the next twelve months, aiming to increase profitability and improve cash flow[134]. - The management is implementing strategies to enhance cash flow and improve profitability through targeted investment strategies and business model promotion[130][131].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 （於百慕達註冊成立之有限公司） （股份代號：993） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 華融國際金融控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本 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，連同截至二零二二年六月三十日止六個月的比較數字 如下： 簡明綜合損益表 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 （未經審核） （未經審核） 附註 千港元 千港元 收入 佣金及服務費收入 5 6,119 4,203 利息收入 5 使用實際利率法計算之利息收入 44,275 76,590 其他 14,042 34,961 投 資收入 5 – 20,135 64,436 135,889 按公允價值計入損益賬之金融資產之虧損淨額 (180,695) (291,4 ...

Business Transformation and Strategy - In 2023, the company aims to accelerate its transformation and achieve a "return to the right track" by focusing on core business development and leveraging resources from CITIC Group and China Huarong[13] - The company is committed to business transformation, focusing on core operations and achieving breakthroughs in asset management and corporate financing[30] - The company is committed to developing its licensed core businesses while identifying special investment opportunities to drive differentiated growth[13] - The company is exploring differentiated and specialized development paths to build core competitive advantages in its business[30] - The company aims to enhance management efficiency and strengthen risk control to support high-quality development in the future[33] Risk Management and Governance - The company has a strong focus on risk management, with both the Chairman and CEO being members of the Risk Management Committee[46] - The management team emphasizes the importance of compliance and risk assessment in all business operations[46] - The company has implemented risk control measures to effectively reduce risk exposure and improve asset quality amid tightening financial conditions[78] - The management team has significant experience in corporate governance and financial institution management, enhancing the company's strategic direction[46] - The company is committed to sustainable development, with independent directors actively participating in relevant committees[43] Financial Performance - The group recorded revenue of approximately HKD 276,630,000, a decrease from HKD 486,592,000 in the previous year, resulting in a total loss of approximately HKD 2,228,026,000 compared to a loss of HKD 1,602,292,000 last year[52] - The asset management and direct investment segment generated revenue of approximately HKD 225,155,000, down from HKD 372,787,000, with a loss of approximately HKD 1,702,167,000 compared to a loss of HKD 1,276,665,000 in the previous year[55] - The basic loss per share for the year was 28.7 HK cents, compared to a basic loss of 20.9 HK cents in the previous year[76] - The group faced an increase in segment losses to approximately HKD 419,907,000, compared to a loss of about HKD 83,276,000 in the previous year, reflecting a significant deterioration in performance[97] - The fair value of financial assets measured at other comprehensive income decreased from HKD 259,658,000 in 2021 to HKD 71,540,000 in 2022, representing a decline of approximately 72.5%[183] Operational Efficiency and Cost Management - The company has implemented comprehensive budget management to continuously reduce costs and improve efficiency, enhancing overall management performance[12] - The management team has been restructured to optimize front, middle, and back office operations, significantly improving team cohesion and operational capabilities[12] - The company has initiated the closure of its Sheung Wan branch and terminated its futures and options business to reduce costs and improve efficiency[80] - The group plans to actively raise funds and develop counter-cyclical fund products and asset management services to expand its asset management scale and enhance management fee income[85] - The group aims to optimize its securities company structure and improve operational efficiency while focusing on institutional and intermediary business to increase revenue contributions from these areas[85] Market Environment and Economic Outlook - The group expects economic recovery in Hong Kong and mainland China in 2023, following the easing of pandemic restrictions and the resumption of cross-border activities[60] - The overall market environment remains challenging, with a significant decline in the total amount and number of IPOs in Hong Kong due to various economic pressures[82] - The company faced significant challenges due to the ongoing COVID-19 pandemic, the Russia-Ukraine conflict, inflation, and rising interest rates, which impacted global economic growth and the Hong Kong capital market[77] - The company is confident in overcoming uncertainties in the market and is focused on creating new opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area[33] Shareholder and Capital Management - The group secured a total of approximately USD 1,069,233,000 (equivalent to about HKD 8,346,884,000) in shareholder loans and perpetual capital bonds from China Huarong International Holdings, an increase from USD 958,079,000 (approximately HKD 7,455,880,000) the previous year[101] - The company issued perpetual capital securities amounting to USD 490,000,000 (approximately HKD 3,846,715,000) during the year[195] - The profit attributable to perpetual capital securities holders for the year was a loss of HKD 420,969,000, compared to a profit of HKD 219,423,000 in the previous year[195] - The total issued shares of the company as of December 31, 2022, were 8,709,586,011, with total equity attributable to shareholders amounting to approximately negative HKD 732,882,000, worsening from negative HKD 495,994,000 a year prior[100] - The group has not granted any share options under the share option scheme during the years ended December 31, 2022, and 2021[192] Environmental and Social Responsibility - The company has set emission reduction targets and outlined steps to achieve these goals[1] - Total greenhouse gas emissions and density for direct (Scope 1) and energy indirect (Scope 2) emissions are reported[1] - The total amount of hazardous waste generated and its density are documented[1] - The total water consumption and its density are provided, along with efficiency targets for water usage[2] - The company has implemented occupational health and safety measures, with statistics on work-related fatalities and injury rates[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告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 （於百慕達註冊成立之有限公司） （股份代號：993） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 華融國際金融控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然向列位 股東「( 股東」)提呈本公司及其附屬公司（統稱為「本集團」）之綜合業績（乃摘錄自 截至二零二二年十二月三十一日止年度（「本年度」）之綜合財務報表）與截至二 零二一年十二月三十一日止年度（「上年度」）之比較數字如下： 綜合損益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 佣金及服務費收入 5 13,026 33,052 利息收入 5 使用實際利息法計算之利息收入 151,266 294,050 ...