Financial Performance - The Group's revenue increased by approximately 495.4% to approximately HK$321.8 million from approximately HK$54.1 million for the year ended 31 December 2020[10]. - For the year ended December 31, 2021, the Group recorded a revenue of approximately HK$321.8 million, representing a significant increase of 495.4% compared to HK$54.1 million in the previous year[42]. - Sales of materials contributed approximately HK$321.1 million to total revenue, accounting for 99.8% of total revenue, up from 99.1% in the previous year[26]. - The Group's gross profit increased to approximately HK$15.9 million, with a gross profit margin rising from 1.1% in the previous year to 4.9%[43]. - Gross profit rose to approximately HK$15.9 million, an increase of HK$15.3 million from HK$0.6 million in the Previous Year, with an overall gross margin improvement from 1.1% to 4.9%[49]. - The loss attributable to the owners of the Company was approximately HK$357.8 million, primarily due to impairment losses of receivables amounting to HK$340.3 million during the Year[11]. - The loss attributable to the owners of the Company for the Year was approximately HK$357.8 million, compared to HK$25.8 million in the Previous Year[62]. - Fair value loss on investment properties was recorded at HK$13.9 million for the Year, compared to HK$2.0 million in the Previous Year[52]. Operational Strategy - The Company aims to diversify its business and broaden income sources through efficient resource allocation[18]. - The Group plans to transform into a comprehensive supplier of aluminum-related products and building materials, offering more value-added services[35]. - The Company is focused on formulating business plans and strategies for future development to capture new business opportunities[18]. - The Group established warehouses in the PRC in early 2021 to enhance inventory management and respond quickly to customer demands[33]. - The Group received recurring orders for the supply of copper materials in the PRC, contributing to revenue growth[10]. Market Conditions - Strong demand and tight capacity in freight markets are expected to persist, with shipping and logistics prices facing inflationary pressure in 2022[12]. - Price volatility on industrial metals and other commodities adds uncertainty due to geopolitical tensions, particularly from Russia's invasion of Ukraine[12]. - The Group is closely monitoring the impact of COVID-19 and global shipping cost increases on its operations and financial position[36]. - The Group faces significant economic risks due to its dependence on global economic conditions, particularly in the United States, Mainland China, and Hong Kong, which can impact financial performance[109]. - The Group's existing businesses operate in a competitive environment, putting pressure on revenue and profitability, necessitating efforts to enlarge market share and enhance competitiveness[110]. Risk Management - The Group will continue to monitor risks related to COVID-19 and the political environment, implementing stringent cost and risk management measures[13]. - The Group is exposed to financial risks including foreign currency, interest rate, equity price, liquidity, and credit risk in its ordinary course of business[113]. - The Group is exposed to environmental risks such as pollution and mechanical breakdowns, which can disrupt operations and adversely affect financial performance[111]. - The Group relies on a small number of customers, limiting its bargaining power and potentially affecting financial performance if customer base expansion does not occur[112]. - The Group's proactive measures to recover outstanding balances from counterparties have not yielded optimistic results, leading to significant impairment recognition[61]. Corporate Governance - The Board comprises six directors, including three executive directors and three independent non-executive directors, ensuring a strong element of independence[129]. - The Board meets regularly, at least four times a year, to approve and monitor the Group's business strategies and policies[140]. - The Company Secretary ensures compliance with corporate governance developments and the Group's obligations under the Listing Rules[141]. - The Company has received annual written confirmations of independence from all independent non-executive directors, meeting the independence guidelines[142]. - The Audit Committee, comprising three independent non-executive directors, met three times during the year to review the consolidated financial statements and interim reports[165]. Financial Position - As of December 31, 2021, the Group's gearing ratio was 107.6%, significantly up from 36.2% as of December 31, 2020[68]. - The debt-to-equity ratio increased to 111.6% as of December 31, 2021, compared to 36.9% in the previous year[70]. - Equity attributable to the owners of the Company decreased to approximately HK$221.1 million from HK$569.7 million due to operating losses during the year[71]. - Current assets and current liabilities as of December 31, 2021, were approximately HK$381.9 million and HK$117.4 million, respectively, compared to HK$696.7 million and HK$99.0 million in the previous year[71]. - The Group's current ratio was 3.3 as of December 31, 2021, down from 7.0 in the previous year[76]. Compliance and Regulations - The Group has complied with all applicable laws and regulations, with no material breaches reported during the year ended December 31, 2021[119]. - The Company received a letter from the Stock Exchange on 19 October 2021, outlining the resumption guidance that requires the Company to remedy issues causing its trading suspension and comply with Listing Rules before trading can resume[93]. - The Company was informed on 18 December 2020 that it failed to meet the requirements of Listing Rule 13.24, which necessitates sufficient business operations to ensure continued listing[94]. Human Resources - Staff costs for the year amounted to approximately HK$5.9 million, down from HK$8.5 million in the previous year[82]. - Administrative and operating expenses decreased by HK$3.1 million or 17.2% to HK$14.9 million, mainly due to the absence of depreciation of right-of-use assets[46]. - Administrative and operating expenses decreased by 17.2% to HK$14.9 million from HK$18.0 million in the Previous Year, primarily due to the absence of depreciation on right-of-use assets and reduced employee costs[51].

Revenue and Sales Performance - During the six months ended June 30, 2021, the sales of materials generated revenue of approximately HK$226.5 million, a significant increase from HK$5.8 million in the previous period, representing 100.0% of total revenue (previous period: 95.6%) [12] - The significant increase in sales was attributed to recurring orders for copper materials from reputable metal companies in the PRC [13] - Revenue for the six months ended June 30, 2021, was HK$226,516,000, a significant increase from HK$6,093,000 in the same period of 2020, representing a growth of approximately 3,617% [90] - For the six months ended June 30, 2021, total revenue from contracts with customers was HK$226,516,000, a significant increase from HK$6,093,000 in the same period of 2020 [144] - Segment revenue from materials sales was HK$226,516,000, while rental income was HK$0, compared to HK$270,000 in the previous year [144] Profitability and Financial Performance - Profit attributable to the owners of the Company was approximately HK$4.0 million, a turnaround from a loss of HK$8.4 million in the previous Period [39][44] - The company reported a profit of HK$4,001,000 for the six months ended June 30, 2021, compared to a loss of HK$8,372,000 in the same period of 2020, indicating a significant turnaround in performance [92] - Gross profit for the same period was HK$7,978,000, compared to HK$321,000 in 2020, indicating a substantial improvement [90] - Operating profit increased to HK$4,938,000 in 2021 from HK$166,000 in 2020, showcasing a positive trend in operational efficiency [90] - Other comprehensive income for the period was HK$4,108,000, a recovery from a loss of HK$10,308,000 in the previous year, contributing to total comprehensive income of HK$8,109,000 [92] Expenses and Cost Management - Selling and distribution expenses amounted to approximately HK$3.1 million, primarily due to freight and transportation costs for sales of aluminum-related products and scrap copper [36][42] - Administrative and operating expenses decreased by HK$3.7 million or 47.2% to HK$4.1 million, mainly due to the absence of depreciation of right-of-use assets and a reduction in staff costs [38][43] - Staff costs for the period amounted to approximately HK$3.2 million, a decrease from HK$4.0 million in the previous period [66] Assets and Liabilities - Total assets increased to HK$1,009,688,000 as of June 30, 2021, up from HK$879,226,000 at the end of 2020, reflecting a growth of approximately 14.8% [95] - Current assets rose to HK$825,199,000, compared to HK$696,674,000 at the end of 2020, marking an increase of about 18.4% [95] - Total liabilities as of June 30, 2021, were HK$431,867,000, with unallocated liabilities of HK$355,229,000 [4] - The Group's gearing ratio was 50.7%, up from 36.2% as of December 31, 2020 [48] - The debt to equity ratio was 39.1% and the net debt to equity ratio was 49.1% as of June 30, 2021, compared to 36.9% and 36.2% respectively at the end of 2020 [49] Trade Receivables and Cash Flow - Trade receivables surged to HK$112,647,000 from HK$22,150,000, indicating a substantial increase of approximately 408% [95] - The ageing analysis shows that trade receivables aged 0-30 days rose to HK$44,281,000 from HK$2,785,000, a substantial increase of 1495% [176] - The net cash used in operating activities for the same period was HK$85,309,000, compared to a net cash generated of HK$9,000,000 in the previous year [105] - The company generated HK$96,402,000 from financing activities, significantly improving from a net cash used of HK$10,579,000 in the prior year [105] Corporate Developments and Future Plans - The Group plans to transform into a comprehensive supplier of aluminum-related products and building materials, leveraging its experience and business networks [22] - The Group established warehouses in the PRC in early 2021 to enhance inventory management, allowing for timely responses to customer orders and providing inventory management services [11] - The Group began supplying aluminum-related products, including copper, magnesium, and silicon, which are essential for aluminum alloy production [21] - The Group's focus on international aluminum products manufacturers is driven by competitive pricing from the PRC [21] Legal and Compliance Matters - The outcome of the Second Review regarding the Company's listing status remains uncertain as of the date of the report [73] - The Company is currently assessing the feasibility of commencing litigation to recover outstanding receivables, which are contingent upon the completion of a recent legal nullification process [85] - The Company has regained legal ownership and company chop of Qianhai Shitong after the completion of the nullification process in July 2021 [79] - The shareholding in Qianhai Shitong was diluted from 100% to 25% due to unauthorized issuance of new shares, which has been reported and addressed legally [78] Shareholder and Equity Information - The equity attributable to owners of the Company increased to approximately HK$577.8 million, primarily due to operating profits during the Period [50] - The total equity attributable to owners increased to approximately HK$577.8 million as of June 30, 2021, compared to HK$569.7 million on December 31, 2020 [53] - Basic and diluted earnings per share improved to HK$0.75 from a loss of HK$1.85 per share in 2020 [90] - The Group did not declare any interim dividend for the six months ended June 30, 2021, consistent with the decision for the same period in 2020 [159]

Financial Performance - For the year ended December 31, 2020, the Group recorded consolidated revenue of approximately HK$54,054,000, a decrease of 5.0% from HK$56,883,000 in 2019[11] - Loss attributable to owners of the Company was approximately HK$25,776,000, compared to HK$25,086,000 in 2019, with a basic loss per share of HK5.40 cent[11] - The sale of materials business generated revenue of approximately HK$53,591,000 for the year ended December 31, 2020, a decrease of 5.3% from approximately HK$56,582,000 in 2019, representing 99.1% of total revenue[39] - The gross profit from the sale of materials business was approximately HK$136,000 for the year ended December 31, 2020, down from approximately HK$196,000 in 2019, contributing 22.7% of total gross profit[39] - The Group's gross profit for the year ended December 31, 2020, was approximately HK$599,000, with a gross profit margin of 1.1%, an increase of approximately 20.5% from HK$497,000 in 2019[56] - The net loss attributable to owners of the Company for the year ended December 31, 2020, was approximately HK$25,776,000, an increase of approximately HK$690,000 compared to HK$25,086,000 in 2019[61] Property Investment - The Group's rental income from properties investment amounted to approximately HK$463,000, an increase from HK$301,000 in 2019[23] - The properties investment segment recorded a valuation loss of approximately HK$2,023,000, with an overall loss of approximately HK$3,286,000 for the year[23] - The Group's property investment segment recorded a valuation loss of approximately HK$2,023,000 for the year ended December 31, 2020, compared to a loss of HK$2,270,000 in 2019, indicating an improvement in valuation loss by 10.9%[26] - The Group's property investment segment reported an overall loss of approximately HK$3,286,000 for the year ended December 31, 2020, compared to a loss of HK$3,215,000 in 2019[26] COVID-19 Impact - The COVID-19 pandemic has created a highly uncertain outlook for the upcoming financial year[12] - The COVID-19 outbreak significantly impacted the Group's operations, particularly in the first half of 2020, leading to a contraction in the sale of materials business due to temporary closures and transportation restrictions[42] - To mitigate the impact of COVID-19, the Group diversified its product offerings in the sale of materials business starting in the second half of 2020[42] - The financial performance and revenue from the sale of materials business are expected to improve in the future as the COVID-19 situation stabilizes[48] Management Strategy - The management intends to improve financial performance and explore investment opportunities in property investment and other segments with good prospects[12] - The Group will take a prudent approach to face challenges and aims for sustainable growth to maximize shareholder benefits[12] - The Board is confident in future business development and will seek investment opportunities to diversify revenue streams and strengthen financial position[52] - The Group will continue to implement cost-cutting measures to improve operating performance amid challenging business conditions[47] Current Assets and Liabilities - The Group's current assets as of December 31, 2020, were approximately HK$696,674,000, with a current ratio of about 7.04, significantly up from 2.33 in 2019[62] - Current liabilities decreased by 63.7% to approximately HK$98,989,000 as of December 31, 2020, primarily due to the reclassification of borrowings[63] - As of December 31, 2020, the group's current assets amounted to approximately HK$696,674,000, an increase from approximately HK$634,034,000 as of December 31, 2019[66] - The current liabilities decreased by 63.7% to approximately HK$98,989,000 as of December 31, 2020, down from approximately HK$272,344,000 in the previous year[67] Corporate Governance - The Company complied with all applicable Corporate Governance Code provisions for the year ended December 31, 2020[137] - The Board of Directors consisted of six members, including three Executive Directors and three Independent Non-executive Directors, ensuring a strong element of independence[139] - The Company has ensured compliance with the Code Provision A.2.1, separating the roles of Chairman and Chief Executive Officer[158] - The Company emphasizes integrity, transparency, and accountability in its corporate governance practices, which are fundamental to enhancing shareholder value[136] Legal and Compliance Issues - The company discovered unauthorized execution of a corporate guarantee by its subsidiaries for a loan amounting to approximately RMB 18,000,000, which was granted without proper authorization[87] - A PRC court granted a judgment on July 8, 2020, stating that the enforcement of the arbitration award against the subsidiaries has ceased to have effect, resolving a significant legal issue[89] - The Market Supervision Administration is currently investigating the suspected forgeries, and the company has taken steps to nullify the unauthorized shareholders' resolution[95] - The company aims to restore its 100% shareholding in the affected subsidiary following the invalidation of the suspected forgeries[95] Employee and Operational Information - The Group had 16 employees as of December 31, 2020, a decrease from 18 employees in 2019[110] - The Group maintained good relationships with employees, customers, and suppliers, with no significant disputes reported during the year ended December 31, 2020[133] Risk Management - The Group is facing economic risks due to global economic conditions and the impact of COVID-19 on business operations[118] - The Group is exposed to financial risks related to foreign currency, interest rates, equity prices, liquidity, and credit risk[127] - The management policy to mitigate market risk includes efforts to enlarge market share and enhance competitiveness[119]

Financial Performance - For the six months ended June 30, 2020, the Group's rental income was approximately HK$270,000, a decrease of 87% compared to HK$2,070,000 for the same period in 2019[16]. - The profit from the properties investment segment for the six months ended June 30, 2020, was approximately HK$178,000, down 87% from HK$1,401,000 in the previous year[16]. - The Group has not recorded any revenue or profit from investment holding for the six months ended June 30, 2020, consistent with the same period in 2019[17]. - During the six months ended June 30, 2020, the building materials trading segment generated revenue of approximately HK$5,823,000, a decrease of 86.8% compared to approximately HK$44,153,000 for the same period in 2019, representing 95.6% of total revenue[27][31][33]. - For the six months ended June 30, 2020, the Group recorded a consolidated revenue of approximately HK$6,093,000, representing a decrease of 86.8% compared to HK$46,223,000 for the same period in 2019[42]. - The Group's gross profit for the same period was approximately HK$321,000, with a gross profit margin of 5.3%, resulting in a decrease of approximately 85.3% from HK$2,182,000 in the previous year[43]. - The net loss for the six months ended June 30, 2020, was approximately HK$8,372,000, a reduction of about 24.2% from HK$11,049,000 for the same period in 2019[44]. - The total comprehensive loss for the period attributable to owners was HK$18,680,000, compared to HK$11,591,000 in the previous year[87]. - The company reported a comprehensive loss of HK$18,680,000 for the six months ended June 30, 2020, compared to a loss of HK$8,621,000 for the same period in 2019[96]. Business Segments - The Group's overall business segments are facing challenges due to the economic conditions in the region[16]. - The building materials trading business commenced in the second half of 2017, sourcing materials from suppliers in the PRC[18]. - The Group's building materials include aluminum, steel products, timber logs, and tiles, primarily used in construction projects[19]. - The Group's strategy includes pursuing quality suppliers and expanding marketing channels to boost business and profit growth[32]. - For the six months ended June 30, 2020, segment revenue totaled HK$6,093,000, with properties investment contributing HK$270,000 and trading business contributing HK$5,823,000[110]. - The gross profit for the same period was HK$321,000, with properties investment generating HK$270,000 and trading business generating HK$51,000[110]. Economic Impact - The economic development in Liaoning Province did not meet expectations, adversely affecting the Group's investment properties business[16]. - The persistent depressed state in the property market in Liaoning Province has negatively impacted property demand in the region[16]. - The significant decline in sales revenue was primarily due to the COVID-19 outbreak, which led to temporary closures of suppliers' production facilities and transportation restrictions[31][33]. - The Group anticipates that the financial performance and revenue from the building materials trading business will improve in the second half of 2020 as the COVID-19 situation in the PRC comes under control[35]. - The market for building material trading in the Southeast Region of the PRC is expected to grow due to increased demand for properties in the Greater Bay Area[36]. Financial Position - The Group's current assets as of June 30, 2020, were approximately HK$628,986,000, with a current ratio of about 2.23[48]. - Current liabilities increased by 3.4% to approximately HK$281,554,000, primarily due to an increase in former shareholders' loans[49]. - As of June 30, 2020, the equity attributable to owners of the Company amounted to approximately HK$519,593,000, down from approximately HK$538,273,000 at the end of 2019[50]. - The debt to equity ratio was approximately 35% as of June 30, 2020, compared to 36% at the end of 2019[51]. - The Group plans to explore new financing channels, including bank loans and share placements, to support business expansion and improve financial stability[40]. - The company had bank borrowings of HK$177,319,000 as of June 30, 2020, slightly down from HK$180,526,000 at the end of 2019[90]. - The company’s gearing ratio was 35%, slightly down from 36% as of December 31, 2019[72]. Management and Governance - The Board is actively looking for investment opportunities in new businesses to diversify revenue streams and strengthen the Group's financial position[38]. - The company discovered suspected forgeries related to unauthorized use of company chops and signatures after the reporting period[58]. - The company has initiated actions to nullify the unauthorized shareholder resolution and is cooperating with the Market Supervision Administration for investigation[60]. - The management believes the group has sufficient financial resources to meet its ongoing operational needs[55]. - The company is considering engaging a PRC legal adviser to handle the suspected forgery matter if necessary[182]. Employee and Administrative Expenses - The Group's administrative expenses included staff costs of approximately HK$4,047,000, showing a slight decrease from HK$4,331,000 in the previous year[44]. - Key management compensation, including accrued bonuses, amounted to approximately HK$2,466,000 for the six months ended June 30, 2020, compared to HK$2,659,000 for the same period in 2019, reflecting a decrease of about 7.3%[171]. - The company had approximately 28 employees as of June 30, 2020, unchanged from the previous year[77]. Legal and Compliance Issues - A corporate guarantee for a loan of approximately RMB 18,000,000 was executed without authorization, leading to arbitration proceedings against the subsidiaries[66]. - The PRC Court granted a judgment on July 8, 2020, stating that the enforcement of the arbitration award against the subsidiaries has ceased to have effect[68]. - The company has not adopted any new standards or interpretations that are not yet effective for the current accounting period, indicating stability in accounting practices[100]. - The company has reclassified certain comparative figures to conform to the current period presentation[176]. Shareholding and Corporate Structure - Li Gang holds 85,704,866 shares, representing approximately 18.94% of the total shareholding[194]. - Pan Lihui holds 33,112,281 shares, representing approximately 7.32% of the total shareholding[194]. - As of June 30, 2020, no other directors or chief executives had registered interests in the company's shares or debentures[197]. - The 2003 and 2011 Share Option Schemes aim to motivate participants by providing them with a personal interest in the company's share capital[198].

Financial Performance - For the year ended December 31, 2019, the Group recorded a consolidated revenue of approximately HK$56,883,000, a decrease of 94% from the previous year (2018: approximately HK$885,871,000) [14] - Loss attributable to owners of the Company was approximately HK$25,086,000, compared to a loss of approximately HK$14,531,000 in 2018, resulting in a basic loss per share of HK5.55 cent (2018: HK3.21 cent) [14] - The decrease in loss was mainly due to a reduction in other gains, including a one-off gain on disposal of subsidiaries of approximately HK$9,203,000 and a decrease in interest income from approximately HK$21,755,000 in 2018 to approximately HK$15,735,000 in 2019 [14] - For the year ended 31 December 2019, the Group's rental income decreased to approximately HK$301,000 from approximately HK$4,270,000 in 2018, representing a decline of about 92.9% [25] - The trading of building materials segment generated revenue of approximately HK$56,582,000, a significant decrease of approximately 93.6% from approximately HK$881,601,000 in 2018, contributing 99.5% of total revenue [29][35] - The gross profit from the trading of building materials was approximately HK$196,000, down from approximately HK$4,890,000 in 2018, representing 39.4% of total gross profit [29] - The Group's gross profit for the year was approximately HK$497,000, with a gross profit margin of 0.9%, reflecting a decrease of approximately 94.6% from HK$9,160,000 in 2018 [52] - The net loss attributable to owners of the Company was approximately HK$25,086,000 for the year, an increase of approximately HK$10,555,000 compared to a net loss of HK$14,531,000 in 2018 [54] Business Strategy and Future Plans - Management intends to improve the financial performance of existing businesses and explore investment opportunities in property investment, investment holding, and trading of building materials [15] - The Group aims to bring substantial value to shareholders through new segments with good prospects [15] - The Group plans to explore new bank borrowings and fundraising options, including rights issues and placements, to support the expansion of the building materials trading business [37] - The Group aims to seize new property investment opportunities in Shenzhen City and the Greater Bay Area, leveraging the Chairman's extensive business network [38] - The Group plans to continue exploring strategic investment opportunities to diversify revenue sources and strengthen financial conditions [48] Market Conditions and Risks - The Group has not acquired any investment properties in Northeast China since 2017 due to the depressed property market in Liaoning Province [38] - The Board remains cautiously optimistic about steady growth in the property investment and building materials trading markets in the Southeast Region of the PRC [45] - The Group will implement cost-cutting measures to improve operating performance amid challenges such as the US-China trade tension and the coronavirus outbreak [44] - The Group is exposed to economic risks from global financial conditions, particularly in the US, Mainland China, and Hong Kong [100] - The trading business of building materials operates in a competitive environment, impacting revenue and profitability [101] - The Group faces environmental risks such as pollution and adverse weather conditions that could disrupt operations [109] - The reliance on a small number of customers limits the Group's bargaining power and may affect financial performance [110] - Financial risks related to foreign currency, interest rates, and liquidity are present in the Group's ordinary course of business [111] - The Group faced inherent risks such as pollution and equipment failure, which could adversely affect financial performance [113] Corporate Governance - The Company maintained a high standard of corporate governance, ensuring integrity, transparency, and accountability [123] - The Board of Directors met regularly, with attendance records indicating active participation in governance [132] - The Company adopted a code of conduct for directors' securities transactions, confirming compliance during the year [125] - The Board comprises six directors, including three executive directors and three independent non-executive directors [126] - The Board met the requirements of the Listing Rules by appointing at least three Independent Non-executive Directors (INEDs), with more than one-third of the Board's composition being INEDs [138] - The Company Secretary ensured compliance with the continuing obligations of listed issuers under various regulations, including the Listing Rules and the Companies Ordinance [137] - The roles of Chairman and Chief Executive Officer are separated, with Mr. Li Sen as Chairman and Mr. Wei Junqing as CEO, complying with corporate governance standards [140] - Independent Non-executive Directors are appointed for a term of twelve months and are subject to retirement by rotation and re-election [145] - The Company provided relevant training and updates to Directors to keep them informed of market developments and regulatory changes [150] Audit and Compliance - The independent auditor provided audit and non-audit services to the Company during the year ended 31 December 2019, with remuneration details specified [153] - The Company has implemented appropriate insurance coverage for Directors' liability [139] - The Audit Committee met three times during the year to review the consolidated financial statements for the year ended December 31, 2018, and the unaudited condensed consolidated financial information for the six months ended June 30, 2019 [161] - The Remuneration Committee held one meeting during the year to review and approve the remuneration packages of Directors, ensuring no individual director participated in decisions regarding their own remuneration [166] - The Nomination Committee reviewed the diversity of the Board during the year and will continue to assess the Board Diversity Policy to ensure effective implementation [172] Employee and Operational Information - The Group had 18 employees as of December 31, 2019, down from 21 in 2018 [98] - There were no significant disputes with employees, customers, or suppliers during the year ended December 31, 2019 [118] - The Company acknowledges its responsibility for preparing consolidated financial statements in compliance with Hong Kong Financial Reporting Standards [192]

Financial Performance - For the six months ended June 30, 2019, the Group's rental income was approximately HK$2,070,000, a decrease of 5.7% from HK$2,196,000 for the same period in 2018[16]. - The properties investment segment recorded a profit of HK$1,401,000 for the six months ended June 30, 2019, down 35.5% from HK$2,176,000 in the previous year[16]. - The trading of building materials segment generated revenue of approximately HK$44,153,000, a significant decline of 92.9% compared to HK$620,795,000 for the same period in 2018, representing 95.5% of total revenue[19]. - The gross profit from the trading of building materials was approximately HK$112,000, which is only 5.1% of total gross profit, down from HK$2,839,000 in the previous year[19]. - For the six months ended 30 June 2019, the Group recorded a consolidated revenue of approximately HK$46,223,000, representing a decrease of 92.6% compared to HK$622,991,000 for the same period in 2018[38]. - The Group's gross profit for the six months ended 30 June 2019 was approximately HK$2,182,000, with an average gross profit margin of 4.7%, a decrease of approximately 56.7% compared to HK$5,035,000 in the same period in 2018[39]. - The Group's net loss was approximately HK$11,049,000 for the six months ended 30 June 2019, a decrease in loss of approximately HK$2,048,000 compared to HK$13,097,000 for the same period in 2018[42]. - The operating loss for the period was HK$2,255,000, compared to an operating profit of HK$3,233,000 in the previous year[80]. - The company reported a comprehensive loss of HK$11,591,000 for the six months ended June 30, 2019, compared to a loss of HK$13,097,000 for the same period in 2018, indicating a decrease in loss of 11.5%[87]. Revenue and Income Sources - The Group had no revenue or profit from investment holding for the six months ended June 30, 2019, consistent with the same period in 2018[17]. - Revenue from the building materials trading business decreased by approximately 92.9% during the six months ended 30 June 2019 due to market competition and funding shortfalls[29]. - The Group's cash and bank balances were approximately HK$854,000 as of June 30, 2019, a decrease from HK$2,123,000 as of December 31, 2018[47]. - The company did not declare any interim dividend for the six months ended June 30, 2019, consistent with the previous year where no dividend was declared[168]. Assets and Liabilities - The total assets as of June 30, 2019, amounted to HK$825,067,000, an increase from HK$813,900,000 at the end of 2018[84]. - The Group's current liabilities increased by 9.4% to HK$258,626,000 compared to HK$236,451,000 as of December 31, 2018[51]. - Total liabilities increased to HK$260,867,000 as of June 30, 2019, up from HK$238,109,000 as of December 31, 2018, representing an increase of 9.4%[85]. - The Group's equity attributable to owners of the Company amounted to HK$564,200,000 as of June 30, 2019, down from HK$575,791,000 as of December 31, 2018[46]. - The Group's current assets were HK$470,026,000 as of June 30, 2019, with a current ratio of approximately 1.82[50]. Strategic Focus and Future Plans - The overall performance of the Group indicates challenges in the trading of building materials and a decline in rental income, necessitating strategic reassessment[13]. - The Group's focus remains on properties investment and trading of building materials, with ongoing efforts to enhance operational efficiency[13]. - Future strategies may include exploring new markets and potential product offerings to improve revenue streams[13]. - The property investment business segment will continue to be developed, focusing on opportunities in the Greater Bay Area, particularly in Shenzhen City[31]. - The Board remains cautiously optimistic about the growth in the markets of property investment and building materials trading in the Southeast Region of the PRC due to national policies related to the Greater Bay Area[36]. Financial Management and Cost Control - Cost-cutting measures will be prioritized to improve operating performance amid challenges such as US-China trade tensions and economic slowdown in the PRC[35]. - The Group plans to explore different avenues for funding, including new bank borrowings and various fundraising methods, to support the expansion of the building materials trading business[27]. - The management believes the Group has sufficient financial resources to meet its ongoing operational needs[48]. Accounting Policies and Standards - The unaudited condensed consolidated interim financial information for the six months ended 30 June 2019 is prepared in accordance with HKAS 34 and the Listing Rules, presented in thousands of Hong Kong dollars (HK$'000) [92]. - The Group has adopted all new and revised standards effective from 1 January 2019, with the exception of HKFRS 16 "Leases," which has a significant impact on accounting policies [94]. - HKFRS 16 introduces a single accounting model for lessees, requiring recognition of a right-of-use asset and a lease liability for all leases, except short-term leases and leases of low-value assets [98]. - The Group has applied HKFRS 16 using the modified retrospective approach, adjusting the opening balance of equity at 1 January 2019 without restating comparative information [99]. - The Group's accounting policies as a lessor remain unchanged from those under HKAS 17, with no adjustments required for leases in which it acts as a lessor[114]. Lease Liabilities and Right-of-Use Assets - The Group's lease liabilities recognized as of January 1, 2019, amounted to HK$5,325,000 after accounting for total future interest expenses of HK$373,000[120]. - The Group's right-of-use assets had a net book value of HK$3,936,000 as of June 30, 2019, after depreciation of HK$1,389,000 during the period[175]. - The Group's total non-current liabilities increased from HK$1,658,000 to HK$4,236,000 due to the recognition of lease liabilities[126]. - The Group's transition to HKFRS 16 involved recognizing lease liabilities at the present value of remaining lease payments, discounted using relevant incremental borrowing rates[115]. Trade Receivables and Credit Management - As of June 30, 2019, trade receivables amounted to HK$20,469,000, an increase from HK$18,604,000 as of December 31, 2018, representing a growth of approximately 10%[190]. - The net trade receivables after provision for expected credit loss were HK$20,091,000 as of June 30, 2019, compared to HK$18,211,000 as of December 31, 2018, indicating an increase of about 10%[190]. - The provision for expected credit loss decreased slightly from HK$393,000 as of December 31, 2018, to HK$378,000 as of June 30, 2019[196]. - The company has a credit period for trade receivables generally ranging from 30 to 180 days, indicating a flexible payment structure for customers[191].

Financial Performance - For the year ended December 31, 2018, the Group recorded consolidated revenue of approximately HK$885,871,000, an increase of over 16.25 times from HK$54,531,000 in 2017[18]. - Loss attributable to owners of the Company from continuing operations was approximately HK$14,531,000, down from HK$50,855,000 in 2017, with a basic loss per share of HK0.16 cent compared to HK0.65 cent in 2017[18]. - The decrease in loss from continuing operations was mainly due to a reduction in fair value loss on investment properties from HK$20,866,000 in 2017 to HK$5,369,000 in 2018[18]. - Interest income from loan receivables recognized during the year was HK$21,755,000, compared to nil in 2017[18]. - The gross profit from continuing operations for the year was approximately HK$9,160,000, with an average gross profit margin of 1.0%, down from 13.8% in 2017[59]. - The overall net loss attributable to owners of the Company was approximately HK$14,531,000, a decrease of approximately HK$79,369,000 compared to HK$93,900,000 in 2017[62]. Revenue Segments - For the year ended December 31, 2018, the Group's rental income amounted to approximately HK$4,270,000, an increase from approximately HK$3,967,000 in 2017[37]. - The properties investment segment recorded a profit of approximately HK$17,222,000 for the year ended December 31, 2018, compared to a loss of approximately HK$21,932,000 in 2017[37]. - The trading of building materials segment contributed a revenue of approximately HK$881,601,000, representing 99.5% of total revenue from continuing operations[40]. - The gross profit from the trading of building materials segment was approximately HK$4,890,000, accounting for 53.4% of total gross profit from continuing operations[40]. Investment and Strategic Plans - The management intends to improve the financial performance of existing businesses and explore investment opportunities in property investment and trading of building materials[19]. - The Group aims to bring substantial value to shareholders through investments in segments with good prospects[19]. - The Group plans to actively explore strategic investments and diversify revenue streams, including potential acquisitions in the Greater Bay Area and Hong Kong[53]. - The acquisition of Quick Master Company Limited for HK$450,000 is expected to diversify the Group's business scope and broaden income sources[52]. - The Group aims to seize new property investment opportunities in Shenzhen City and the Greater Bay Area, driven by market potential[47]. Financial Position and Ratios - As of December 31, 2018, the Group had current assets of approximately HK$462,283,000, with a current ratio of about 1.96, up from 1.07 in 2017[66]. - As of December 31, 2018, the Group's current liabilities decreased by 59% to approximately HK$236,451,000 from HK$577,169,000 in 2017[72]. - The equity attributable to owners of the Company amounted to approximately HK$575,791,000, down from HK$603,238,000 in 2017[68]. - The Group's cash and bank balances decreased by 98.6% to approximately HK$2,123,000 from HK$154,140,000 in 2017, primarily due to the repayment of bank borrowings[68]. - The debt to equity ratio improved to approximately 32% as of December 31, 2018, compared to 71% in 2017[69]. - The gearing ratio was 32% as of December 31, 2018, down from 56% in 2017[86]. Corporate Governance - The Board of Directors consists of six members, including three Executive Directors and three Independent Non-executive Directors, ensuring a strong element of independence[126]. - The Company has maintained compliance with the Listing Rules, including the appointment of at least three Independent Non-executive Directors, with more than one-third of the Board being independent[137]. - The Company Secretary is responsible for ensuring compliance with corporate governance and regulatory requirements, including the Listing Rules and other applicable laws[136]. - The Company has adopted a board diversity policy aimed at achieving a sustainable and balanced development and enhancing performance quality[186]. - The Board will consider various perspectives, including race, gender, age, and industry experience, when designing its composition[187]. Risk Management - The Board has overall responsibility for ensuring effective risk management and internal control systems are in place[195]. - The Group's risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss[200]. - The Group has identified significant economic risks due to global financial conditions, particularly in the US, Mainland China, and Hong Kong, which it aims to mitigate through business diversification[100]. - The Group is exposed to environmental risks, including pollution and adverse weather conditions, which could disrupt operations and affect financial performance[102]. Employee and Operational Matters - The Group had 21 employees as of December 31, 2018, an increase from 12 employees in 2017[91]. - The Group plans to continue developing its building materials trading business by recruiting additional staff and adopting a more proactive approach to select quality suppliers and customers[46]. - The trading business of building materials operates in a competitive environment, impacting revenue and profitability, with management focusing on increasing market share[101]. Compliance and Audit - The Company has complied with all relevant laws and regulations during the year ended December 31, 2018, with no material breaches reported[110]. - The independent auditor's remuneration for the audit of the current year was HK$1,050,000, a decrease from HK$2,400,000 in the previous year[155]. - The Audit Committee met twice during the year to review the consolidated financial statements for the year ended December 31, 2017, and the unaudited financial information for the six months ended June 30, 2018[161].