Financial Performance - For the six months ended June 30, 2022, the company's revenue was approximately HKD 184.5 million, a decrease of 20% compared to HKD 230.7 million for the same period in 2021[13]. - Gross profit for the same period was HKD 88,045,000, down 40% from HKD 147,341,000 year-on-year[49]. - Operating profit decreased to HKD 104,161,000, a decline of 42% from HKD 180,427,000 in the previous year[49]. - Net profit for the period was HKD 82,587,000, representing a significant drop of 70% compared to HKD 271,566,000 in the prior year[49]. - Earnings per share (basic and diluted) were HKD 0.21, down from HKD 0.70 in the same period last year[49]. - Total comprehensive income for the period was HKD 91,797,000, compared to HKD 270,798,000 in the previous year, reflecting a decrease of 66%[52]. - The group's profit before tax for the six months was HKD 111,713,000, compared to HKD 282,526,000 for the same period last year, indicating a significant decline[70]. - The company reported a profit of HKD 82,587 for the six months ended June 30, 2022, down from HKD 271,539 for the same period in 2021, representing a decrease of approximately 69.5%[59]. Revenue Sources - The income from asset management services during the period was approximately HKD 103.6 million, down from HKD 114.8 million in the same period of 2021[15]. - Asset management fee income decreased to HKD 103,557,000 from HKD 114,797,000, representing a decline of 10%[67]. - Rental income from investment properties was HKD 44,799,000, down 29% from HKD 63,527,000 in the prior year[67]. - Interest income from investment instruments fell to HKD 27,905,000 from HKD 44,326,000, a decrease of 37%[67]. - Property management fee income was HKD 8,231,000, up from HKD 8,057,000 in the previous year, reflecting a growth of 2%[67]. Asset Management and Investments - The company acquired Enigma Company Limited for HKD 848.7 million, with plans to develop the acquired property into a residential project expected to contribute revenue in the second half of 2024[10]. - The company completed the sale of its entire equity interest in Ryder Court, valued at GBP 132 million, on January 28, 2022[9]. - The company holds a 45% equity interest in the Mission property in San Francisco[11]. - The company recognized a share of profit from joint ventures of approximately HKD 29,200,000, significantly up from HKD 1,400,000 for the six months ended June 30, 2021, due to the reversal of previously over-provided construction costs[20]. - The total investment in joint ventures, including Ultimate Vantage and Goldwin, was approximately HKD 194,500,000 as of June 30, 2022, up from HKD 173,500,000 as of December 31, 2021[20]. Financial Position - The total equity attributable to shareholders was approximately HKD 4,356,900,000 as of June 30, 2022, an increase from HKD 4,299,900,000 as of December 31, 2021[28]. - The company’s interest-bearing bank and other borrowings were approximately HKD 661,200,000 as of June 30, 2022, down from HKD 1,265,700,000 as of December 31, 2021, primarily due to asset sales[28]. - Total liabilities decreased significantly to HKD 1,025,633,000 from HKD 1,651,044,000, showing improved financial stability[55]. - The net assets attributable to joint ventures decreased to HKD 351,614,000 as of June 30, 2022, from HKD 401,788,000 at the end of 2021[81]. - The company reported a current portion of accounts receivable of HKD 167,910,000 as of June 30, 2022, compared to HKD 223,203,000 at the end of 2021[86]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 134,919, compared to HKD 126,516 for the same period in 2021, reflecting an increase of about 6.3%[62]. - The net cash used in investing activities for the six months ended June 30, 2022, was HKD 164,943, compared to HKD 11,980 in the previous year, indicating a substantial increase in cash outflow for investments[62]. - The company incurred a payment of HKD 805,445 for the acquisition of subsidiaries, compared to HKD 1,855 in the previous year, indicating a significant increase in investment activity[62]. - The group has capital expenditure commitments of HKD 258,600,000 for the development of properties as of June 30, 2022, down from HKD 280,100,000 as of December 31, 2021[34]. Corporate Governance and Shareholder Information - The company has complied with the corporate governance code throughout the reporting period[113]. - Major shareholder Vanke holds 292,145,949 shares, representing 75.0% of the equity[124]. - The company did not recommend the payment of an interim dividend for the period, consistent with no dividends declared for the same period in 2021[78]. - The company approved a final dividend of HKD 35,058 for the previous year, which was paid out during the reporting period[59]. - The company reported a dividend payable of HKD 35,058,000 as of June 30, 2022, compared to no dividends payable as of December 31, 2021[90].

Financial Performance - Vanke Overseas Investment Holdings Limited reported a significant increase in revenue, achieving a total of 1.2 billion HKD for the fiscal year, representing a 15% year-over-year growth[6]. - The company reported a profit attributable to shareholders of approximately HKD 424.6 million for the fiscal year 2021, representing a growth of about 129% compared to HKD 185.7 million in 2020[18]. - The company's revenue for the year was approximately HKD 461,200,000, a decrease of about 3% compared to HKD 474,500,000 in the previous year[23]. - The income from asset management services was approximately HKD 228,700,000, a decrease from HKD 237,300,000 in the previous year, with segment profit dropping to about HKD 75,300,000 from HKD 90,300,000[25]. - The fair value gain for the year was approximately HKD 191,300,000, compared to a fair value loss of HKD 56,200,000 in the previous year[24]. - The company has established a new management service framework agreement effective from October 30, 2020, to enhance asset management capabilities in Hong Kong, the UK, and the USA[19]. - The group generated revenue of approximately HKD 228,700,000 under the new management service framework agreement for the year ended December 31, 2021[144]. Market Expansion and Strategy - Vanke has outlined a positive outlook for the upcoming year, projecting a revenue growth of 10-12% driven by new project launches and market expansion strategies[6]. - Vanke is pursuing market expansion in Southeast Asia, with plans to enter three new countries by the end of the next fiscal year, targeting a market share increase of 5% in these regions[6]. - The company has completed a strategic acquisition of a local real estate firm for 300 million HKD, which is expected to enhance its market presence and operational capabilities[6]. - The company completed the acquisition of Enigma Company Limited, which indirectly holds properties in Hong Kong, on January 31, 2022, with plans to develop these into residential projects[22]. - The board believes that the acquisition of Enigma represents an attractive investment opportunity, crucial for expanding the property portfolio and revenue base in a competitive environment[140]. Operational Efficiency - Vanke has implemented new strategies to improve operational efficiency, aiming for a 10% reduction in operational costs over the next year[6]. - The company reported a net profit margin of 18%, reflecting improved cost management and operational efficiencies compared to the previous year[6]. - The service cost to revenue ratio for Regal Centre increased to 25.1% in 2021 from 21.6% in 2020, attributed to rising direct operating expenses and declining revenue[61]. - Ryder Court's service cost to revenue ratio rose to 9.9% in 2021 from 1.6% in 2020, due to costs associated with vacant areas and decreased revenue[61]. Financial Health and Assets - Vanke's total assets have increased to 5 billion HKD, marking a 12% increase from the previous fiscal year, indicating strong financial health[6]. - As of December 31, 2021, the company's equity attributable to shareholders was approximately HKD 4,299,900,000, an increase from HKD 3,911,500,000 as of December 31, 2020, reflecting a net increase of HKD 423,500,000 after dividend payments of HKD 35,100,000[37]. - The group's interest-bearing bank and other borrowings amounted to approximately HKD 1,265,700,000 as of December 31, 2021, down from HKD 1,301,700,000 as of December 31, 2020, primarily due to loan repayments and depreciation of GBP against HKD[37]. - The debt-to-equity ratio as of December 31, 2021, was 29.4%, a decrease from 33.3% as of December 31, 2020, while the net debt-to-equity ratio was 10.6%, down from 17.7%[38]. Employee and Management - The employee turnover rate for the company in 2021 was 22%, up from 16% in 2020, indicating a significant increase in staff attrition[93]. - The average employee tenure as of December 31, 2021, was 1.8 years, compared to 1.3 years in 2020, suggesting a decrease in employee retention[93]. - The group had 105 employees as of December 31, 2021, an increase from 96 employees in 2020, leading to a significant rise in employee costs to approximately HKD 131 million from HKD 111 million in 2020[95]. - The remuneration committee held two meetings during the year ended December 31, 2021, to review the remuneration policies for all directors and senior management[184]. Corporate Governance - The company has complied with the corporate governance code as stipulated in the listing rules throughout the year ended December 31, 2021[155]. - The board of directors consists of four executive directors and three independent non-executive directors as of the report date[157]. - The independent non-executive directors provide sufficient checks and balances to protect the interests of shareholders and the group[164]. - The company has established measurable goals to achieve board diversity, which are discussed and approved annually by the Nomination Committee[190]. Risk Management - The company has a risk management system in place to monitor and mitigate key risks, including reputation and compliance risks[83]. - The management regularly assesses major risks and presents evaluations to the Audit Committee, along with action plans for identified deficiencies[198]. - The company has implemented a risk management and internal control system, which is reviewed at least annually by the board[196]. Environmental and Social Responsibility - The company is committed to environmental policies, aiming to improve resource efficiency and reduce emissions during operations[85]. - The company has not identified any significant environmental regulations that could adversely affect its property leasing and management operations[86]. - The company made charitable donations of HKD 78,000 during the year, down from HKD 158,000 in 2020[109].

vanke 萬科海外投資控股有限公司 (於開曼群島註冊成立之有限公司) (股份代號：01036) 110 N 韓最 截至二零二一年六月三十日止六個月 公司資料 | --- | --- | --- | |---------------------------------------------|--------------------|-----------------------------------------------------| | | | | | 董事會 | 公司秘書 | | | 執行董事 | 葉凱雯 | | | 張旭 （主席） | | | | 闕東武 （首席執行官） | 核數師 | | | 李凱彥 | 畢馬威會計師事務所 | | | 周悅 | | （根據財務匯報局條例註冊之公眾利益實體核數師） | | （自二零二一年五月二十六日起獲委任） | | | | 非執行董事 | | 本公司之法律顧問 （香港法例） | | 陳志裕 | 禮德齊伯禮律師行 | Maples and Calder (Hong Kong) LLP （開曼群島法例） | | （自二零二一年五月二十六日起辭任） | | | | | ...

vanke 萬科海外投資控股有限公司 (於開曼群島註冊成立之有限公司) (股份代號：01036) 報 告 FR 截至二零二零年六月三十日止六個月 公司資料 | --- | --- | --- | |---------------------------------------------|---------------------------------------|------------------------------------------------| | | | | | 董事會 | 核數師 | | | 執行董事 | 畢馬威會計師事務所 | | | 張旭 （主席） | | （根據財務匯報局條例註冊之公眾利益實體核數師） | | 闕東武 （首席執行官） | | | | 李凱彥 | 本公司之法律顧問 | | | LIN Lily （自二零二零年八月二十一日起辭任） | 禮德齊伯禮律師行 | （香港法例） | | 非執行董事 | Maples and Calder (Hong Kong) LLP | （開曼群島法例） | | 陳志裕 | 主要往來銀行 | | | 獨立非執行董事 | 中國銀行（香港）有限 ...

vanke 萬科海外投資控股有限公司 (於開曼群島註冊成立之有限公司) (股份代號：01036) 報室 f 厚 目錄 公司資料 2 1 萬科海外投資控股有限公司 二零一九年年度報告 | --- | --- | |--------------------------|-------| | | | | 董事履歷詳情 | | | 管理層論述及分析 | | | 董事會報告 | | | 企業管治報告 | | | 環境、社會及管治報告 | | | 獨立核數師報告 | | | 綜合損益表 | | | 綜合損益及其他全面收益表 | | | 綜合財務狀況表 | | | 綜合權益變動表 | | | 綜合現金流量表 | | | 財務報表附註 | | | 附屬公司總覽 | | | 物業項目總覽 | | | 五年財務摘要 | | | | | 1 公司資料 董事會 執行董事 張旭(主席) 闕東武(首席執行官) 李凱彥 (自二零一九年八月十五日起由非執行董事調任) LIN Lily (自二零一九年八月十五日起由非執行董事調任) 非執行董事 陳志裕 獨立非執行董事 陳維曦 羅芷妍 岑信江 (自二零一九年二月二十八日起辭任) 張安志 (自二零 ...

vanke 萬科置業（海外）有限公司 (於開曼群島註冊成立之有限公司) (股份代號：01036) T MD 一篇 Fir 截至二零一九年六月三十目止六個月 在 本中期報告以環保紙印製 公司資料 | --- | --- | --- | |----------------------------------------------|------------------------|--------------------------------------------------| | | | | | 董事會 | 核數師 | | | 執行董事 | 畢馬威會計師事務所 | | | 張旭(主席) | | | | 闕東武(首席執行官) | | | | 李凱彥（於二零一九年八月十五日調任） | 本公司之法律顧問 | | | LIN Lily(於二零一九年八月十五日調任) | | 禮德齊伯禮律師行(香港法例) | | 非執行董事 | | Maples and Calder (Hong Kong) LLP (房曼群島法例) | | 陳志裕 | 主要往來銀行 | | | 獨立非執行董事 | 中國銀行(香港)有限公司 | | | ...

[Company Information](index=4&type=section&id=Company%20Information) The report lists key company information including core management, board members, committees, auditor, legal counsel, principal bankers, and registered office - The report lists the company's core management, board members, various committee compositions, auditor (KPMG), legal counsel, principal bankers, and registered office[8](index=8&type=chunk)[9](index=9&type=chunk) [Biographical Details of Directors](index=5&type=section&id=Biographical%20Details%20of%20Directors) The report details the personal biographies of executive, non-executive, and independent non-executive directors, including their roles within and outside Vanke, professional backgrounds, and industry experience - The report provides detailed personal biographies of executive directors, non-executive directors, and independent non-executive directors, including their tenure within and outside the Vanke system, professional backgrounds, and industry experience[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) - Executive Director Mr Zhang Xu also serves as Executive Vice President and Chief Operating Officer of Vanke Co, Ltd, while Executive Director Ms Que Dongwu is Vanke's Vice President and General Manager of Overseas Business Division, indicating close management ties between the company and its parent company Vanke[12](index=12&type=chunk)[13](index=13&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business and financial performance, strategic outlook, and key risks for the reporting period [Business Review](index=7&type=section&id=Business%20Review) The Group's total revenue increased by **5%** to approximately **HK$102 million**, primarily driven by rental income growth from Regent Centre, with investment property fair value growing **8%** to **HK$1.968 billion** - **2018 Key Performance Indicators** | Indicator | 2018 | 2017 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | HK$101.8 million | HK$96.5 million | +5% | | Investment Property Fair Value | HK$1.968 billion | HK$1.83 billion | +8% | | Related Profit (excluding fair value changes) | HK$540.8 million | HK$54.2 million | +898% | [Leasing and Property Management](index=7&type=section&id=Leasing%20and%20Property%20Management) The Group's core leasing asset, Regent Centre, saw increased rental rates and occupancy, boosting segment revenue to **HK$101.8 million** and segment profit (excluding fair value changes) to **HK$77.4 million** - **Regent Centre Leasing Performance** | Indicator | End of 2018 | End of 2017 | | :--- | :--- | :--- | | Occupancy Rate | 99% | 97% | | Average Monthly Rent | HK$9.7/sq ft | HK$9.5/sq ft | - An upgrade of Regent Centre's air-conditioning system was completed in the first quarter of 2018, with a total expenditure of approximately **HK$31 million**, aimed at improving energy efficiency and cooling performance[24](index=24&type=chunk) [Property Development and Financing](index=8&type=section&id=Property%20Development%20and%20Financing) This segment recorded a **14,688%** profit increase to **HK$473 million**, mainly from recognizing sales profit from the 'Pavilia Bay' property development project by associate Ultimate Vantage - The Group's share of profit from associates (Ultimate Vantage and Goldrich Holdings) was **HK$466 million**, compared to only **HK$46 thousand** in the same period last year, primarily due to the recognition of sales profit from the "Pavilia Bay" project[29](index=29&type=chunk) - The Group provides mortgage financing services to buyers of the "Pavilia Bay" project through another associate, Goldrich Holdings[27](index=27&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) The Group maintains a robust financial position with no interest-bearing debt and significantly increased bank balances and cash, while key performance indicators demonstrate stable leasing and enhanced profitability [Rights Issue](index=9&type=section&id=Rights%20Issue) The report details the utilization of net proceeds from the 2015 rights issue, with approximately **HK$393 million** remaining reallocated for future land or property acquisitions - **Net Proceeds from Rights Issue Utilization (as at end of 2018)** | Item | Total Unutilized (HK$ million) | | :--- | :--- | | Acquisition of land or properties | 393 | | Total Unutilized | 393 | [Liquidity and Financial Resources](index=10&type=section&id=Liquidity%20and%20Financial%20Resources) At year-end 2018, the Group's equity attributable to shareholders increased to **HK$3.667 billion**, with no interest-bearing debt and bank balances and cash significantly rising to **HK$1.425 billion** - **Liquidity Indicators (End of 2018)** | Indicator | Amount | | :--- | :--- | | Equity attributable to shareholders | HK$3.667 billion | | Interest-bearing debt | 0 | | Bank balances and cash | HK$1.425 billion | [Key Performance Indicators](index=10&type=section&id=Key%20Performance%20Indicators) The Group's five key performance indicators show improved occupancy and average rent, stable service cost-to-income ratio, zero gearing, and a significant increase in return on equity to **20.3%** - **Overview of 2018 Key Performance Indicators** | Indicator | 2018 | 2017 | | :--- | :--- | :--- | | Occupancy Rate of the Property | 99% | 97% | | Average Rent of the Property | HK$9.7/sq ft | HK$9.5/sq ft | | Service Cost-to-Income Ratio | 22.4% | 22.3% | | Gearing Ratio | 0% | 0% | | Return on Equity | 20.3% | 5.3% | [Principal Risks and Uncertainties](index=16&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces key risks including high reliance on the Hong Kong property market, potential underperformance of business partners, M&A uncertainties, funding needs for acquisitions, and potential conflicts of interest with its parent company Vanke - The Group's business is highly concentrated in Hong Kong, making its performance susceptible to fluctuations in Hong Kong's economic conditions and property market[77](index=77&type=chunk) - As the parent company Vanke operates businesses in Hong Kong through two platforms, the Group (75% owned) and Vanke Hong Kong (100% owned), and some directors hold positions in both platforms, there are potential business competition and conflicts of interest[84](index=84&type=chunk) [Environmental Policy](index=18&type=section&id=Environmental%20Policy) The Group is committed to environmentally sound business practices, aiming to reduce emissions and optimize resource use through efficiency improvements, energy-saving equipment, and promoting eco-friendly measures among stakeholders - In property development projects, the Group strives to obtain environmental certifications such as BEAM Plus (Hong Kong) and LEED (US) where practicable[86](index=86&type=chunk) [Relationships with Suppliers, Customers and Employees](index=18&type=section&id=Relationships%20with%20Suppliers%2C%20Customers%20and%20Employees) The Group maintains close cooperation with its property management company and strives for excellent tenant service, while noting an **89%** employee turnover rate in 2018 attributed to normal replacement and efficiency improvements - The employee turnover rate in 2018 was **89%**, a significant increase from **17%** in 2017, which the company attributed to normal staff replacement and efforts to enhance work efficiency[92](index=92&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=Employees%20and%20Remuneration%20Policy) The Group reduced its employee count to three by year-end 2018, leading to a decrease in staff costs (including directors' emoluments) from **HK$7.8 million** to **HK$5.4 million**, with administrative support provided by Vanke Hong Kong on a cost basis - **Changes in Employees and Costs** | Indicator | End of 2018 | End of 2017 | | :--- | :--- | :--- | | Number of Employees | 3 | 6 | | Staff Costs | HK$5.4 million | HK$7.8 million | [Outlook](index=19&type=section&id=Outlook) Management anticipates economic uncertainties in 2019 due to global factors, with the Group planning to diversify its business by seeking opportunities in Hong Kong and overseas, while expecting stable high occupancy and rents for Regent Centre - Facing macroeconomic uncertainties, the Group's strategy is to continue pursuing business diversification and expanding into Hong Kong and overseas markets[94](index=94&type=chunk) [Final Dividend](index=20&type=section&id=Final%20Dividend) The Board recommends a final dividend of **HK$0.09** per share for the year ended December 31, 2018, a **200%** increase from the previous year, subject to approval at the Annual General Meeting - **Final Dividend Proposal** | Year | Final Dividend Per Share | | :--- | :--- | | 2018 | HK$0.09 | | 2017 | HK$0.03 | [Report of the Directors](index=21&type=section&id=Report%20of%20the%20Directors) This statutory disclosure outlines the company's principal business as investment holding, confirms annual results, and recommends a final dividend of **HK$0.09** per share - This report is a statutory disclosure document, outlining the company's principal business as investment holding and confirming the annual results and the proposed final dividend of **HK$0.09** per share[100](index=100&type=chunk)[102](index=102&type=chunk) - The report discloses directors' shareholdings in associated corporations (Vanke) and major shareholder information, with Vanke Co, Ltd holding **75.0%** of the company's shares through an indirect wholly-owned subsidiary[113](index=113&type=chunk)[119](index=119&type=chunk) - The report identifies directors' interests in competing businesses, clarifying a potential competitive relationship between the Group and Vanke Hong Kong Group in Hong Kong property development business[130](index=130&type=chunk)[131](index=131&type=chunk) - **Major Customer and Supplier Proportions** | Category | Proportion | | :--- | :--- | | Largest Customer | 9.7% | | Top Five Customers (total) | 26.4% | | Largest Supplier | 72.4% | | Top Five Suppliers (total) | 88.3% | [Environmental, Social and Governance Report](index=28&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) This report covers the Group's property leasing and management business (Regent Centre), detailing environmental initiatives like energy-saving upgrades and disclosing key environmental data, alongside social responsibility policies and community engagement - The scope of this report covers only the Group's property leasing and management business (Regent Centre), excluding property development and financing businesses led by joint venture partners[143](index=143&type=chunk) - Environmentally, the Group completed an energy-saving upgrade of Regent Centre's air-conditioning system, and the report discloses key environmental data such as electricity consumption, water usage, and paper recycling[144](index=144&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - Regarding social responsibility, the report outlines the company's equal opportunity employment policy, healthy and safe working environment, anti-corruption whistleblowing system, and community investment activities[151](index=151&type=chunk)[153](index=153&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) [Corporate Governance Report](index=31&type=section&id=Corporate%20Governance%20Report) The report confirms the company's compliance with the Corporate Governance Code for 2018, with minor deviations corrected, and details the board's composition, committee functions, and oversight of risk management and internal controls - The report confirms that, except for a few deviations such as the non-separation of the Chairman and Chief Executive Officer roles, the company complied with the Corporate Governance Code throughout 2018, with the deviation corrected in February 2019[163](index=163&type=chunk) - The Board of Directors comprises two executive directors, three non-executive directors, and three independent non-executive directors, meeting the requirement that independent non-executive directors constitute at least one-third of the board[170](index=170&type=chunk)[174](index=174&type=chunk) - The report details the responsibilities, composition, and annual work summaries of the Remuneration Committee, Nomination Committee, and Audit Committee, reflecting the operation of the company's governance structure[179](index=179&type=chunk)[185](index=185&type=chunk)[197](index=197&type=chunk) - The Board is responsible for overseeing the Group's risk management and internal control systems and has reviewed their effectiveness for the year, deeming them effective and adequate[195](index=195&type=chunk)[196](index=196&type=chunk) [Independent Auditor's Report](index=42&type=section&id=Independent%20Auditor%27s%20Report) KPMG issued an unqualified opinion on the Group's 2018 consolidated financial statements, with 'Valuation of investment properties' identified as a key audit matter due to its significant impact and subjective judgments - Auditor KPMG issued an unqualified opinion on the company's consolidated financial statements for the year ended December 31, 2018, stating that the financial statements present a true and fair view of the Group's financial position and performance[219](index=219&type=chunk) - The report identifies "Valuation of investment properties" as a key audit matter because investment properties account for **53%** of the Group's total assets, their fair value changes significantly impact profit before tax, and the valuation involves significant subjective judgments and estimates (e.g., capitalization rates and market rents)[221](index=221&type=chunk)[227](index=227&type=chunk) [Financial Statements](index=46&type=section&id=Financial%20Statements) This section presents the Group's consolidated financial performance, position, equity changes, and cash flows for the reporting period, along with detailed notes explaining accounting policies and financial data [Consolidated Statement of Comprehensive Income](index=46&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's profit and total comprehensive income surged by **336%** to **HK$677 million** in 2018, primarily driven by a significant increase in share of results of associates from **HK$46 thousand** to **HK$466 million** - **Consolidated Statement of Comprehensive Income Summary (HK$ thousand)** | Item | 2018 | 2017 | | :--- | :--- | :--- | | Revenue | 101,780 | 96,460 | | Gross Profit | 78,976 | 74,940 | | Operating Profit | 203,329 | 162,169 | | Share of Results of Associates | 465,682 | 46 | | Profit Before Tax | 689,790 | 167,791 | | **Profit for the Year** | **676,843** | **155,149** | | Earnings Per Share (HK$) | 1.74 | 0.40 | [Consolidated Statement of Financial Position](index=47&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) At year-end 2018, total assets increased to **HK$3.747 billion** and net assets to **HK$3.667 billion**, driven by rising investment property fair value and increased bank balances, maintaining a robust financial structure with no interest-bearing debt - **Consolidated Statement of Financial Position Summary (HK$ thousand)** | Item | 2018 | 2017 | | :--- | :--- | :--- | | **Non-current Assets** | **2,306,572** | **2,053,988** | | Investment Properties | 1,968,000 | 1,830,000 | | Interests in Associates | 338,435 | 223,772 | | **Current Assets** | **1,439,959** | **1,023,408** | | Bank Balances and Cash | 1,425,085 | 865,905 | | **Net Assets** | **3,666,767** | **3,001,610** | | **Total Equity** | **3,666,767** | **3,001,610** | [Consolidated Statement of Changes in Equity](index=48&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total shareholders' equity increased from **HK$3.002 billion** at the beginning of the year to **HK$3.667 billion** at year-end, primarily due to the **HK$677 million** profit for the year, net of the **HK$11.686 million** final dividend paid - **Summary of Changes in Equity (HK$ thousand)** | Item | Amount | | :--- | :--- | | As at January 1, 2018 | 3,001,610 | | Profit and Total Comprehensive Income for the Year | +676,843 | | Approved Final Dividend for Prior Year | -11,686 | | **As at December 31, 2018** | **3,666,767** | [Consolidated Statement of Cash Flows](index=49&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Net cash and cash equivalents increased by **HK$559 million** for the year, with **HK$66.7 million** from operating activities and a significant **HK$504 million** net inflow from investing activities, mainly from associate dividends and repayments - **Consolidated Statement of Cash Flows Summary (HK$ thousand)** | Item | 2018 | 2017 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 66,698 | 83,082 | | Net Cash from Investing Activities | 504,168 | 90,587 | | Net Cash Used in Financing Activities | (11,686) | (11,686) | | **Net Increase in Cash and Cash Equivalents** | **559,180** | **161,983** | | Cash and Cash Equivalents at Beginning of Year | 865,905 | 703,922 | | **Cash and Cash Equivalents at End of Year** | **1,425,085** | **865,905** | [Notes to the Financial Statements](index=50&type=section&id=Notes%20to%20the%20Financial%20Statements) These notes provide detailed explanations of key accounting policies, significant judgments, and breakdowns of financial data, covering revenue, segment information, investment property valuation, associate investments, dividends, and financial risk management [Revenue and Segment Information](index=65&type=section&id=Revenue%20and%20Segment%20Information) Group revenue primarily comprises rental income (**HK$86.3 million**) and property management fees (**HK$15.48 million**), with the 'Leasing and Property Management' segment contributing all revenue and **HK$213 million** in segment results, while 'Property Development and Financing' contributed **HK$473 million** in segment results without revenue - **2018 Segment Results (HK$ thousand)** | Segment | Revenue | Segment Results | | :--- | :--- | :--- | | Leasing and Property Management | 101,780 | 213,357 | | Property Development and Financing | 0 | 473,217 | | **Total** | **101,780** | **686,574** | [Investment Properties](index=74&type=section&id=Investment%20Properties) The Group's investment properties were valued at **HK$1.968 billion** at year-end 2018, an increase of **HK$136 million** from the beginning of the year, with valuation performed by independent surveyors using the income capitalization approach - The fair value measurement of investment properties is classified as Level 3, utilizing significant unobservable inputs such as capitalization rates (**3.5%-4%**) and market rent per square foot (**HK$9.5-10.3**)[366](index=366&type=chunk) [Interests in Associates and Amounts Due from Associates](index=77&type=section&id=Interests%20in%20Associates%20and%20Amounts%20Due%20from%20Associates) The Group holds **20%** interests in Ultimate Vantage Limited (UVL) and Goldrich Holdings Limited, with UVL's 'Pavilia Bay' project generating **HK$2.007 billion** in profit for the year, significantly contributing to the Group's profit - Associate UVL's property development project "Pavilia Bay" recognized **HK$9.959 billion** in revenue and **HK$2.007 billion** in profit in 2018, serving as the primary source of the Group's profit for the year[383](index=383&type=chunk) [Dividends](index=72&type=section&id=Dividends) The Board proposes a final dividend of **HK$0.09** per share for 2018, totaling approximately **HK$35.06 million**, subject to shareholder approval, while the 2017 final dividend of **HK$0.03** per share was paid during the year - **Dividend Distribution Status** | Financial Year | Dividend Type | Amount Per Share | Status | | :--- | :--- | :--- | :--- | | 2018 | Final Dividend | HK$0.09 | Proposed | | 2017 | Final Dividend | HK$0.03 | Paid in 2018 | [Financial Risk Management and Fair Value](index=84&type=section&id=Financial%20Risk%20Management%20and%20Fair%20Value) The Group primarily faces credit and liquidity risks, but is not exposed to interest rate or foreign exchange risks due to no interest-bearing borrowings and all operations being Hong Kong-based and denominated in HKD - The Group has no interest-bearing borrowings and is therefore not affected by fluctuations in market interest rates[417](index=417&type=chunk) - All of the Group's assets and operations are in Hong Kong, and cash flows are denominated in Hong Kong dollars, thus there is no foreign exchange risk[418](index=418&type=chunk) [Overview of Property Projects](index=89&type=section&id=Overview%20of%20Property%20Projects) This section provides a summary of the Group's key property projects, including Regent Centre (100% owned, completed for investment) and Pavilia Bay (20% interest, completed for sale) - **Major Property Projects** | Project Name | Location | Type | Effective Interest | Status | | :--- | :--- | :--- | :--- | :--- | | Regent Centre | Kwai Chung, New Territories | Industrial/Warehouse | 100% | Completed and held for investment | | Pavilia Bay | Tsuen Wan, New Territories | Residential | 20% | Completed and held for sale | [Five-Year Financial Summary](index=90&type=section&id=Five-Year%20Financial%20Summary) This section presents a five-year summary of key financial figures, including revenue, profit for the year, and net assets, illustrating the Group's financial performance and growth trends over time - **Five-Year Financial Summary (HK$ thousand)** | Item | 2018 | 2017 | 2016 | 2015 | 2014 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 101,780 | 96,460 | 91,244 | 89,067 | 85,809 | | Profit for the Year | 676,843 | 155,149 | 131,320 | 161,705 | 137,555 | | Net Assets | 3,666,767 | 3,001,610 | 2,858,147 | 2,738,513 | 1,552,423 |