Financial Performance - Revenue for the six months ended January 31, 2024, was HKD 1,409,290,000, an increase of 40.6% compared to HKD 1,002,365,000 for the same period in 2023[2] - Operating profit for the same period was HKD 363,063,000, up 91.1% from HKD 189,902,000 in the previous year[2] - The company reported a loss attributable to owners of the company of HKD 202,037,000, a slight improvement from a loss of HKD 222,578,000 in the prior year[2] - Basic and diluted loss per share was HKD 0.527, compared to HKD 0.535 for the same period last year[8] - The company experienced a total comprehensive expense of HKD 273,139,000, compared to HKD 370,330,000 in the prior year[16] - The company reported a loss attributable to shareholders of HKD 174,530,000 for the six months ended January 31, 2024, compared to a loss of HKD 176,944,000 for the same period in 2023[21] Assets and Liabilities - Non-current assets totaled HKD 22,823,139,000, a decrease from HKD 23,007,187,000 as of July 31, 2023[5] - Current assets amounted to HKD 6,339,173,000, down from HKD 7,110,571,000 in the previous period[5] - Total assets less current liabilities were HKD 26,166,455,000, an increase from HKD 25,899,365,000[6] - The company’s total liabilities as of January 31, 2024, were HKD 16,170,261,000[39] - The company’s current liabilities as of January 31, 2024, were HKD 1,343,588,000, a decrease from HKD 1,730,450,000 as of July 31, 2023[25] Revenue Sources - Revenue from property sales was HKD 897,917,000, up from HKD 570,476,000, representing a 57.3% increase year-over-year[45] - Rental income from investment properties increased to HKD 280,059,000 from HKD 252,059,000, marking an 11.1% growth[45] - Rental income increased by 18.5% to HKD 501.5 million, while property sales surged by 57.4% to HKD 897.9 million, contributing to the overall revenue growth[71] Development Projects - The group is currently developing the second phase of the Hengqin Innovation Project, which is expected to provide 1,585,000 square feet of office space and commercial facilities[51] - Approximately 83% of the leasable area in the first phase of the Hengqin Innovation Project has been leased, contributing significantly to the group's rental income[51] - The group anticipates that the ongoing development of the Hengqin-Macau cooperation zone will enhance its long-term performance[51] Economic Environment - The geopolitical tensions and high-interest rates are expected to continue impacting global economic recovery, affecting the group's business environment[48] - The group faced challenges in the office leasing business due to economic slowdown, leading to a slight increase in vacancy rates and a decrease in rental prices[49] - The hotel business in mainland China showed significant recovery after the relaxation of COVID-19 restrictions, despite ongoing economic slowdowns[77] Cash and Financing - As of January 31, 2024, the company had cash on hand of approximately HKD 2,151,600,000 and undrawn loan facilities of HKD 3,091,800,000, with a debt-to-equity ratio of 63%[61] - The total borrowings of the company as of January 31, 2024, amount to HKD 9,998,400,000, a decrease of HKD 619,800,000 from July 31, 2023[144] - The company maintains a net debt to equity ratio of approximately 63% as of January 31, 2024[144] Occupancy and Leasing - The occupancy rates for major properties as of January 31, 2024, included 96.2% for Shanghai Hong Kong Plaza and 100.0% for Shanghai Mayflower Life Plaza[78] - The average occupancy rate for the Shanghai Huaxin Hotel was 78.3%, with an average room rate of HKD 426[110] - The average occupancy rate for the Shanghai Kai Xin Garden reached 95%, with a total building area of approximately 82,100 square feet[89] Strategic Initiatives - The group plans to expand its market presence through strategic acquisitions and new developments in key urban areas[86] - The company is actively discussing potential share sales by core related parties to restore public float levels, which currently remain below the minimum requirements[61] - The group is actively pursuing new leasing opportunities in the Shanghai Kai Xin Garden, which recently received LEED Gold certification[83] Governance and Management - The board consists of seven executive directors and six independent non-executive directors, ensuring a diverse governance structure[161] - The group employs approximately 1,700 staff, with competitive salary levels and performance-based promotions[157] - The group actively engages in investor relations, maintaining communication with analysts and institutional investors through various meetings[159]

Financial Performance - For the fiscal year ending July 31, 2023, the group recorded revenue of HKD 1,800,500,000, a decrease of approximately 28.4% compared to HKD 2,515,800,000 in the previous fiscal year[12] - Property sales revenue decreased by 45.4% to HKD 887,000,000 from HKD 1,624,700,000, significantly impacting overall performance[13] - The net loss attributable to shareholders was approximately HKD 584,700,000, compared to a net loss of HKD 134,500,000 in the previous fiscal year, indicating a substantial increase in losses[15] - The loss per share was HKD 1.766, compared to HKD 0.406 in the previous year, reflecting the increased financial strain[16] - The group's gross profit decreased by 30.4% to HKD 902,000,000 from HKD 1,296,900,000, highlighting challenges in maintaining profitability[12] - The company reported a loss attributable to owners of HKD 584.7 million for the year ended July 31, 2023, compared to a loss of HKD 134.5 million in the previous year, representing a significant increase in losses[17] - The net asset value attributable to owners decreased from HKD 14,606.4 million as of July 31, 2022, to HKD 12,777.9 million as of July 31, 2023, reflecting a decline of approximately 12.5%[19] - The company did not recommend the payment of a final dividend for the year ended July 31, 2023, consistent with the previous year[20] Rental Income and Property Management - Rental income increased by 2.2% to HKD 894,600,000 from HKD 875,100,000, showing resilience in this segment[13] - The rental income from the leasing portfolio of approximately 5,900,000 square feet remained stable despite a weak performance during the year[24] - The average exchange rate of the Renminbi depreciated by about 7.3% compared to the previous year, but rental income in Renminbi increased significantly by 10.3% to RMB 800.8 million[44] - The occupancy rate for the Shanghai Hong Kong Plaza retail segment improved to 91.5% from 87.2% in the previous year, while the office segment increased to 90.8% from 85.9%[45] - The rental revenue from the Hengqin Innovation Phase I increased significantly by 113.7% to HKD 130.8 million in 2023, compared to HKD 61.2 million in 2022[49] - The rental revenue from the Guangzhou Richbond Plaza decreased by 21.7% to HKD 21.3 million in 2023, down from HKD 27.2 million in 2022[49] - The total rental revenue for the year ended July 31, 2023, was HKD 894.6 million, representing a 2.2% increase from HKD 875.1 million in the previous year[47] Development Projects - The first phase of the Hengqin Innovation Project has achieved approximately 83% leasing of available rental space, with major tenants including themed indoor experience centers and various entertainment facilities[25] - The company is currently developing the second phase of the Hengqin Innovation Project, which is expected to provide a total area of 2,519,900 square feet for commercial and entertainment facilities[25] - New properties expected to contribute to revenue include the Hengqin Harrow School and additional office and serviced apartment buildings in the second phase of the Innovation Park[29] - The group has completed all residential units in the Shanghai Wuliqiao project, with 13 parking spaces still available for sale[26] Financial Position and Debt - As of July 31, 2023, the company had cash on hand of approximately HKD 2,471.7 million, down from HKD 4,142.6 million the previous year[33] - The net debt to equity ratio increased to 64% from 53% in the previous year, indicating a higher leverage position[33] - The total borrowings of the group as of July 31, 2023, amounted to HKD 10,618,200,000, a decrease of HKD 1,321,500,000 compared to HKD 11,939,700,000 as of July 31, 2022[102] - The capital debt ratio, defined as net debt to net asset value, was approximately 64% as of July 31, 2023, compared to 53% in the previous year[102] Environmental, Social, and Governance (ESG) Initiatives - The report covers the group's performance in environmental, social, and governance (ESG) aspects from August 1, 2022, to July 31, 2023[121] - The board emphasizes the importance of ESG issues for long-term business success and has approved the group's environmental goals, which will be reviewed annually[123] - The group identifies ten sustainable development goals that are most relevant to its business and outlines contributions in the report[121] - The company aims to reduce energy consumption, greenhouse gas emissions, and waste generation as part of its environmental sustainability goals[135] - The company has implemented an environmental management system and standards across its property portfolio to enhance environmental performance[140] - The company has received various green building certifications, including ISO 14001:2015 and LEED certifications for several properties[140] Employee and Workplace Policies - The employee turnover rate for the group was reported at 47% as of July 31, 2023[170] - The total training hours provided by the company exceeded 27,000 hours, emphasizing the importance of continuous learning and skill enhancement for employees[184] - The company has established effective policies and complaint mechanisms to promote a diverse and inclusive workplace, ensuring employee confidentiality[173] - The company provides various non-monetary benefits, including vaccination leave, additional holidays, and annual health check-ups, to enhance employee well-being[176] - The company actively implements health and safety measures, including regular safety training and the appointment of safety officers on construction sites[180] Customer Satisfaction and Feedback - The company maintains a high customer satisfaction rate, with all properties in Shanghai, Guangzhou, and Zhongshan achieving satisfaction scores of 97% or above in customer surveys[197] - The company received a total of 43 complaints across properties in Guangzhou, Zhongshan, and Shanghai during the reporting year[199] - Customer satisfaction score reached 80% based on the latest data collected from a survey sent to customers after check-out in May 2023[200] - The company has established a customer feedback system, including a suggestion box and a customer service hotline, to understand customer expectations[199]

[Financial Performance Overview](index=1&type=section&id=I.%20Financial%20Performance%20Overview) [Consolidated Income Statement](index=1&type=section&id=Consolidated%20Income%20Statement) The group recorded a loss for the year ended July 31, 2023, with significant decreases in revenue and gross profit, a substantial reduction in operating profit, and an expanded loss attributable to owners of the company | Metric | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--------- | :-------------- | :-------------- | | Revenue | 1,800,510 | 2,515,771 | | Cost of Sales | (898,518) | (1,218,917) | | Gross Profit | 901,992 | 1,296,854 | | Operating Profit | 165,513 | 677,943 | | Profit/(Loss) Before Tax | (430,928) | 278,004 | | Loss for the Year | (689,353) | (283,884) | | Attributable to Owners of the Company | (584,702) | (134,523) | - Basic and diluted loss per share attributable to owners of the company increased from **HK$0.406 in 2022** to **HK$1.766 in 2023**[3](index=3&type=chunk) [Consolidated Statement of Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive expense for the year significantly increased, primarily due to exchange differences and other comprehensive expenses, leading to a substantial rise in comprehensive expense attributable to owners of the company | Metric | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :------------- | :-------------- | :-------------- | | Loss for the Year | (689,353) | (283,884) | | Exchange Differences | (1,253,968) | (735,672) | | Other Comprehensive Expense for the Year, Net of Tax | (1,264,536) | (705,711) | | Total Comprehensive Expense for the Year | (1,953,889) | (989,595) | | Attributable to Owners of the Company | (1,828,551) | (825,886) | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of July 31, 2023, the group's total non-current assets and total current assets both decreased, resulting in a reduction in total assets, while total liabilities also decreased, but equity attributable to owners of the company continued to decline | Metric | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :------------- | :-------------- | :-------------- | | Total Non-current Assets | 23,007,187 | 24,368,332 | | Total Current Assets | 7,110,571 | 9,416,437 | | Total Current Liabilities | 4,218,393 | 6,942,518 | | Total Non-current Liabilities | 13,390,175 | 12,379,172 | | Equity Attributable to Owners of the Company | 12,509,190 | 14,463,079 | [Notes to the Consolidated Financial Statements](index=5&type=section&id=II.%20Notes%20to%20the%20Consolidated%20Financial%20Statements) [Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) These financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, generally accepted accounting principles in Hong Kong, and the Hong Kong Companies Ordinance, using the historical cost convention and presented in Hong Kong dollars, with all values adjusted to the nearest thousand - Financial statements are prepared on a historical cost basis, with investment properties and derivative financial instruments measured at fair value[19](index=19&type=chunk) - The Board believes the group has sufficient working capital to fund operations and meet financial obligations for the next 12 months, thus preparing financial statements on a going concern basis is appropriate[15](index=15&type=chunk) [Changes in Accounting Policies and Disclosures](index=5&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The group adopted several revised Hong Kong Financial Reporting Standards for the first time, but these revisions had no significant financial impact on the financial statements - The group first adopted amendments to HKFRS 3, HKAS 16, HKAS 37, and Annual Improvements to HKFRS 2018-2020[20](index=20&type=chunk)[21](index=21&type=chunk) - The adoption of these revised standards had no significant financial impact on these financial statements[16](index=16&type=chunk) [Revenue, Other Income and Gains, and Segment Information](index=6&type=section&id=3.%20Revenue,%20Other%20Income%20and%20Gains,%20and%20Segment%20Information) The group's revenue primarily derives from property sales, investment properties, hotel and serviced apartment operations, building management operations, and theme park operations, with total revenue and other income and gains decreasing year-on-year in 2023, mainly due to reduced property sales, though some businesses like theme park operations saw growth - The group's revenue refers to income from property sales, investment properties, hotel and serviced apartment operations, building management operations, and theme park operations[27](index=27&type=chunk) | Revenue Source | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--------------- | :-------------- | :-------------- | | Property Sales | 887,025 | 1,624,672 | | Hotel and Serviced Apartment Operations | 250,234 | 177,621 | | Building Management Operations | 124,500 | 128,704 | | Theme Park Operations | 18,877 | 16,049 | | Rental Income from Investment Properties | 519,874 | 568,725 | | Total Revenue, Other Income and Gains | 1,896,845 | 2,657,844 | - For 2023, total revenue, other income, and gains from customer contracts amounted to **HK$1,280,636 thousand**, with **HK$887,025 thousand** recognized at a point in time and **HK$393,611 thousand** recognized over time[23](index=23&type=chunk) | Segment | 2023 Segment Revenue (HK$ Thousand) | 2022 Segment Revenue (HK$ Thousand) | | :------------- | :---------------------- | :---------------------- | | Property Development | 910,417 | 1,649,710 | | Property Investment | 661,013 | 709,547 | | Hotel and Serviced Apartment Operations | 250,590 | 178,124 | | Theme Park Operations | 19,534 | 17,203 | | Consolidated Total | 1,841,554 | 2,554,584 | [Operating Profit](index=10&type=section&id=4.%20Operating%20Profit) Operating profit for the year significantly decreased, primarily due to the cost of properties sold, impairment of property, plant and equipment, and write-down of completed properties held for sale to net realizable value | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :----------------------- | :-------------- | :-------------- | | Cost of Properties Sold | 394,913 | 736,337 | | Depreciation of Property, Plant and Equipment | 142,928 | 221,772 | | Depreciation of Right-of-use Assets | 20,633 | 21,540 | | Impairment of Property, Plant and Equipment | 173,642 | 366,312 | | Write-down of Completed Properties Held for Sale to Net Realizable Value | 4,849 | — | | Loss on Derecognition of Rental Receivables | 7,159 | 32,265 | - Depreciation expenses for hotel and serviced apartments and related leased property renovations amounted to **HK$80,557,000**, and for theme parks, **HK$65,300,000**[38](index=38&type=chunk) [Finance Costs](index=11&type=section&id=5.%20Finance%20Costs) Total finance costs for the year significantly increased, mainly due to higher interest expenses on bank loans and secured notes, as well as increased bank financing fees | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :------------- | :-------------- | :-------------- | | Interest Expense on Bank Loans | 571,273 | 398,390 | | Interest Expense on Secured Notes | 68,320 | 147,043 | | Bank Financing Fees and Direct Costs | 62,079 | 20,048 | | Total Finance Costs | 596,219 | 399,768 | - Of the finance costs, **HK$141,566 thousand** was capitalized into the cost of properties under development, investment properties under construction, and construction in progress[44](index=44&type=chunk) [Taxation](index=11&type=section&id=6.%20Taxation) Total tax expense for the year significantly decreased, primarily benefiting from lower PRC Enterprise Income Tax and Land Appreciation Tax, as well as the positive impact of deferred tax | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :------------- | :-------------- | :-------------- | | PRC Enterprise Income Tax | 98,858 | 155,129 | | Land Appreciation Tax | 211,693 | 330,104 | | Deferred Tax | (52,126) | 76,655 | | Total Tax Expense for the Year | 258,425 | 561,888 | - The statutory Hong Kong Profits Tax rate is **16.5%**, with no provision made for the current year due to no estimated assessable profits[47](index=47&type=chunk) [Dividends](index=12&type=section&id=7.%20Dividends) No final dividend was declared for the year ended July 31, 2023 - No final dividend was declared for the years ended July 31, 2023, and July 31, 2022[49](index=49&type=chunk) [Loss Per Share Attributable to Owners of the Company](index=12&type=section&id=8.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic loss per share attributable to owners of the company significantly increased, primarily due to the expanded loss for the year | Metric | 2023 (HK$) | 2022 (HK$) | | :------------- | :------------ | :------------ | | Basic and Diluted Loss Per Share | (1.766) | (0.406) | - The basic loss per share is calculated based on the loss attributable to owners of the company of **HK$584,702,000** (2022: HK$134,523,000) and the weighted average number of ordinary shares in issue of **331,033,443** during the year[46](index=46&type=chunk) - There were no potentially dilutive ordinary shares in issue for the group for the years ended July 31, 2023, and 2022, as the exercise price of share options was higher than the average market price of shares during the year[46](index=46&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=12&type=section&id=9.%20Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) The group's net trade receivables and total other receivables decreased, with credit policies varying by business operations and market conditions, and no significant concentration of credit risk | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :------------- | :-------------- | :-------------- | | Net Trade Receivables | 133,316 | 162,104 | | Finance Lease Receivables Due | 482,099 | 497,168 | | Other Receivables, Deposits and Prepayments | 344,526 | 347,616 | | Total | 959,941 | 1,006,888 | | Amount Classified as Current | (481,967) | (513,245) | | Non-current Portion | 477,974 | 493,643 | - The group has different credit policies for various business operations based on customary practices and market conditions of different subsidiaries, with no significant concentration of credit risk[58](index=58&type=chunk) - The group does not hold any collateral or other credit enhancements for these balances[59](index=59&type=chunk) [Trade and Other Payables and Accruals](index=13&type=section&id=10.%20Trade%20and%20Other%20Payables%20and%20Accruals) The group's total trade payables, accruals, and other payables decreased, primarily driven by a reduction in trade payables | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :------------- | :-------------- | :-------------- | | Trade Payables | 273,818 | 487,824 | | Accruals and Other Payables | 1,243,278 | 1,210,629 | | Put Option Liabilities | 1,114,080 | 1,240,322 | | Total | 2,631,176 | 2,938,775 | | Amount Classified as Current | (1,730,450) | (1,979,103) | | Non-current Portion | 900,726 | 959,672 | [Contract Liabilities and Deposits Received](index=13&type=section&id=11.%20Contract%20Liabilities%20and%20Deposits%20Received) The group's total contract liabilities and deposits received increased, with the growth in contract liabilities being the primary driver | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :------------- | :-------------- | :-------------- | | Contract Liabilities | 755,595 | 541,567 | | Deposits Received | 248,674 | 248,835 | | Total | 1,004,269 | 790,402 | | Amount Classified as Current | (874,884) | (651,860) | | Non-current Portion | 129,385 | 138,542 | [Management Discussion and Analysis](index=14&type=section&id=III.%20Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) The global economy faces challenges with China's slowdown, yet government stimulus measures are in place; the group's regional focus and lease-led strategy demonstrate resilience, maintaining optimism for the Greater Bay Area, with newly completed green buildings enhancing the leasing portfolio and the Novotown project progressing, alongside plans for timely land bank expansion - Global geopolitical and economic issues, the war in Ukraine, a high-interest rate environment, and COVID-19 restrictions in China hindered global economic recovery, leading to market caution[64](index=64&type=chunk) - The Chinese government introduced various economic stimulus and support measures, such as lowering bank reserve requirement ratios and reducing down payment amounts, to boost economic growth[65](index=65&type=chunk) - The group's approximately **5,900,000 sq ft** leasing portfolio in Shanghai, Guangzhou, Zhongshan, and Hengqin performed stably, with the completion of Shanghai Lippo Plaza and Guangzhou Lippo International Centre, both achieving LEED v4 Gold certification, adding approximately **1,300,000 sq ft** of total leasable gross floor area[66](index=66&type=chunk) - Construction for Phase 2 of Hengqin Novotown is underway, and leasing progress for Phase 1 commercial area is good, with approximately **83%** of leasable area already leased[68](index=68&type=chunk) - The group will consider expanding its land bank opportunely, taking into account macroeconomic conditions, existing businesses, and risk allocation[74](index=74&type=chunk) [Overview of Annual Results](index=17&type=section&id=Overview%20of%20Annual%20Results) Revenue for the year decreased by **28.4%** year-on-year, primarily due to reduced property sales income; net loss attributable to owners of the company significantly expanded, and net loss per share increased, with net loss still rising even after excluding the impact of property revaluation and other non-recurring items | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | Percentage Change | | :------------- | :---------------- | :---------------- | :--------- | | Rental Income | 894.6 | 875.1 | +2.2% | | Property Sales | 887.0 | 1,624.7 | -45.4% | | Theme Park Operations | 18.9 | 16.0 | +18.1% | | Total Revenue | 1,800.5 | 2,515.8 | -28.4% | - Net loss attributable to owners of the company was approximately **HK$584.7 million**, a significant increase from **HK$134.5 million** in the prior year, mainly due to reduced property sales income, increased finance costs, and decreased investment property valuations[84](index=84&type=chunk) - Net loss per share was **HK$1.766** (2022: HK$0.406)[85](index=85&type=chunk) | Loss Adjustment Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :------------- | :---------------- | :---------------- | | Reported Loss | (584.7) | (134.5) | | Impairment/(Revaluation Gain) of Investment Properties | 68.8 | (341.0) | | Net Loss After Tax, Excluding Impairment/Revaluation Gain of Investment Properties | (534.0) | (391.6) | | Impairment of Property, Plant and Equipment | 173.6 | 366.3 | | Net Loss After Tax, Excluding Impairment/Revaluation Gain of Investment Properties and Impairment of Property, Plant and Equipment | (391.0) | (151.6) | - Net asset value per share attributable to owners of the company decreased from **HK$44.12** as of July 31, 2022, to **HK$38.60** as of July 31, 2023[88](index=88&type=chunk) [Property Portfolio Composition](index=19&type=section&id=Property%20Portfolio%20Composition) As of July 31, 2023, the group's property portfolio exceeded **10 million sq ft** of gross floor area, encompassing commercial, office, serviced apartments, residential, and car parking spaces, with completed properties held for lease constituting the majority | Property Type | Approximate Gross Floor Area (000 sq ft) | Number of Car Parking Spaces | | :------------- | :---------------------- | :--------- | | Completed Properties Held for Lease | 5,871 | 2,984 | | Properties Under Development | 2,686 | 1,352 | | Completed Properties Held for Sale | 1,578 | 3,463 | | Total Gross Floor Area | 10,135 | 7,799 | [Property Investment](index=20&type=section&id=Property%20Investment) The group's property investment business recorded growth in leasing revenue in 2023, primarily driven by newly completed Grade A office buildings in Shanghai and Guangzhou, with Hengqin Novotown Phase 1 showing outstanding performance in both occupancy rate and revenue, while occupancy rates for other key investment properties varied, and new projects are still in the leasing phase - Mainland China's hotel business significantly recovered, and two new Grade A office buildings in Shanghai and Guangzhou were completed, adding approximately **1,300,000 sq ft** of leasable gross floor area to the group's investment property portfolio[92](index=92&type=chunk) | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | Percentage Change | | :------------- | :---------------- | :---------------- | :--------- | | Leasing Revenue | 894.6 | 875.1 | +2.2% | - Excluding currency translation effects, revenue from investment properties denominated in RMB significantly increased by **10.3%** to **RMB800.8 million**[92](index=92&type=chunk) [Review of Key Investment Properties](index=22&type=section&id=Review%20of%20Key%20Investment%20Properties) The group's key investment properties include Shanghai Hong Kong Plaza, Shanghai Mayflower Lifestyle Plaza, Shanghai Kaixin Garden, Shanghai Lippo Plaza, Guangzhou Mayflower Commercial Plaza, Guangzhou Fubon Plaza, Guangzhou Lippo Centre, Guangzhou Lippo International Centre, Zhongshan Palm Spring Rainbow Garden Rainbow Club Mall, and Hengqin Novotown Phase 1, with newly completed Shanghai Lippo Plaza and Guangzhou Lippo International Centre actively seeking tenants, and Hengqin Novotown Phase 1 commercial area achieving an **83%** occupancy rate | Property Name | 2023 Revenue (HK$ Million) | 2022 Revenue (HK$ Million) | Occupancy Rate as of 2023 Year-End (%) | | :--------------- | :---------------------- | :---------------------- | :--------------------- | | Shanghai Hong Kong Plaza | 370.1 | 397.6 | Retail: 91.5%, Office: 90.8%, Serviced Apartments: 88.1% | | Shanghai Mayflower Lifestyle Plaza | 66.7 | 67.7 | Retail: 98.9%, Hotel: 91.3% | | Shanghai Lippo Plaza | 12.0 | N/A | Retail: 70.1%, Office: 31.9% | | Guangzhou Lippo International Centre | 10.6 | N/A | Retail: 6.0%, Office: 42.0% | | Hengqin Novotown Phase 1 | 130.8 | 61.2 | Retail: 81.0%, Hotel: 86.0% | - Shanghai Lippo Plaza and Guangzhou Lippo International Centre were completed in **September and November 2022**, respectively, both achieving LEED v4 Gold certification and are currently undergoing leasing[108](index=108&type=chunk)[127](index=127&type=chunk) - Leasing progress for Hengqin Novotown Phase 1 commercial area is robust, with approximately **83%** of the leasable area already leased, primarily to themed indoor experience centers, duty-free groups, and F&B brands[118](index=118&type=chunk) [Hotel and Serviced Apartment Operations](index=25&type=section&id=Hotel%20and%20Serviced%20Apartment%20Operations) The group's Shanghai Ascott Huai Hai Road Serviced Apartments, Shanghai The Stellar, and Zhuhai Hengqin Hyatt Regency all recorded varying average occupancy rates and average room rates during the review period | Hotel Name | Average Occupancy Rate (%) | Average Room Rate (HK$) | | :--------------- | :------------- | :-------------- | | Shanghai Ascott Huai Hai Road Serviced Apartments | 79.3 | 1,055 | | Shanghai The Stellar | 66.3 | 412 | | Zhuhai Hengqin Hyatt Regency | 57.2 | 812 | [Property Development](index=26&type=section&id=Property%20Development) Revenue from property development business decreased by **45.4%** year-on-year, primarily due to reduced property sales, with recognized sales mainly driven by Zhongshan Palm Spring Rainbow Garden and Shanghai Wuliqiao Project, while contracted but unrecognized sales increased, mainly from Zhongshan Palm Spring Rainbow Garden, Hengqin Novotown Phase 1, and Hengqin Harrow International School - For the year ended July 31, 2023, the group's property development business recorded revenue from property sales of **HK$887.0 million**, a **45.4%** decrease from the previous year[133](index=133&type=chunk) - Excluding currency translation effects, property sales revenue denominated in RMB was **RMB794.0 million**, a year-on-year decrease[133](index=133&type=chunk) [Recognized Sales](index=26&type=section&id=Recognized%20Sales) Recognized sales for the year were primarily contributed by high-rise residential units and villa residential units at Zhongshan Palm Spring Rainbow Garden, cultural studio and workshop units at Hengqin Novotown Phase 1, and residential units at Shanghai Wuliqiao Project | Project | Number of Units Sold | Approximate Gross Floor Area (sq ft) | Average Selling Price (HK$/sq ft) | Revenue (HK$ Million) | | :------------- | :--------- | :-------------------- | :--------------------- | :---------------- | | Shanghai Wuliqiao Project Residential Units | 1 | 3,202 | 14,000 | 41.1 | | Hengqin Novotown Phase 1 Cultural Studios | 10 | 32,605 | 4,547 | 137.9 | | Hengqin Novotown Phase 1 Cultural Workshops | 56 | 42,476 | 2,375 | 92.6 | | Zhongshan Palm Spring Rainbow Garden High-rise Residential Units | 287 | 343,099 | 1,838 | 578.8 | | Zhongshan Palm Spring Rainbow Garden Villa Residential Units | 3 | 6,208 | 3,412 | 20.2 | | Subtotal | 357 | 427,590 | 2,212 | 870.6 | [Contracted Sales](index=27&type=section&id=Contracted%20Sales) As of July 31, 2023, the group's contracted but unrecognized sales amounted to **HK$971.7 million**, primarily driven by residential units at Zhongshan Palm Spring Rainbow Garden, cultural studio and workshop units at Hengqin Novotown Phase 1, and the property occupied by Hengqin Harrow International School in Novotown Phase 2 | Project | Number of Units Sold | Approximate Gross Floor Area (sq ft) | Average Selling Price (HK$/sq ft) | Revenue (HK$ Million) | | :------------- | :--------- | :-------------------- | :--------------------- | :---------------- | | Zhongshan Palm Spring Rainbow Garden High-rise Residential Units | 300 | 364,690 | 1,684 | 614.0 | | Hengqin Novotown Phase 1 Cultural Studios | 7 | 27,318 | 4,715 | 128.8 | | Hengqin Novotown Phase 1 Cultural Workshops | 37 | 26,310 | 2,360 | 62.1 | | Hengqin Novotown Phase 2 Harrow International School Building | N/A | 149,078 | 1,110 | 165.5 | | Subtotal | 344 | 567,396 | 1,710 | 970.4 | - Excluding currency translation effects, contracted but unrecognized sales denominated in RMB increased to **RMB869.8 million**, up from **RMB615.0 million** in the prior year[155](index=155&type=chunk) [Review of Key Completed Properties Held for Sale and Properties Under Development](index=28&type=section&id=Review%20of%20Key%20Completed%20Properties%20Held%20for%20Sale%20and%20Properties%20Under%20Development) The group holds multiple completed properties held for sale and properties under development projects in Shanghai, Guangzhou, and Zhongshan, with all residential units at Shanghai Wuliqiao Project sold, satisfactory sales progress at Zhongshan Palm Spring Rainbow Garden, ongoing sales of cultural studio and workshop units at Hengqin Novotown Phase 1, and construction progressing for Phase 2, including the sale of the property occupied by Hengqin Harrow International School - All residential units and **30** car parking spaces at Shanghai Wuliqiao Project have been sold, with **13** remaining car parking spaces for sale[138](index=138&type=chunk) - All construction works at Zhongshan Palm Spring Rainbow Garden have been completed, with sales of remaining phases ongoing, and recognized sales of high-rise residential units and villa units totaling **HK$599.0 million**[141](index=141&type=chunk)[162](index=162&type=chunk) - Recognized sales of cultural studio and workshop units at Hengqin Novotown Phase 1 totaled **HK$230.5 million**, with contracted but unrecognized sales totaling **HK$190.9 million**[179](index=179&type=chunk) - Construction for Hengqin Novotown Phase 2 is underway, and the property occupied by Hengqin Harrow International School has been sold to the school operator to realize investment value and progressively recover funds[180](index=180&type=chunk) [Capital Structure, Liquidity and Debt Maturity](index=31&type=section&id=Capital%20Structure,%20Liquidity%20and%20Debt%20Maturity) The group's total borrowings decreased, but the gearing ratio increased, with debt maturity spread out and sufficient cash and unutilized loan facilities available, while certain assets are pledged to secure borrowings and bank facilities | Metric | 2023 (HK$ Million) | 2022 (HK$ Million) | | :------------- | :---------------- | :---------------- | | Total Borrowings | 10,618.2 | 11,939.7 | | Cash and Bank Balances | 2,471.7 | 4,142.6 | | Unutilized Loan Facilities | 2,013.9 | 1,984.5 | | Gearing Ratio | 64% | 53% | - Approximately **93%** of the group's borrowings are floating-rate, and **7%** are interest-free, primarily denominated in RMB (**40%**), HKD (**57%**), and USD (**3%**)[168](index=168&type=chunk) - Debt maturity is spread out: **HK$1,151.3 million** repayable within one year, **HK$1,367.4 million** in the second year, **HK$6,625.6 million** in the third to fifth years, and **HK$1,473.9 million** after the fifth year[182](index=182&type=chunk) - Certain assets of the group are pledged to secure borrowings and bank facilities, including investment properties, properties under development, property, plant and equipment, right-of-use assets, completed properties held for sale, and time deposits and bank balances[183](index=183&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=31&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) LF Bonds, a wholly-owned subsidiary of the company, fully redeemed its US$350 million secured notes issued in 2018 in January 2023, having previously repurchased a portion of these notes in the open market - LF Bonds fully redeemed its outstanding **US$350 million** secured notes issued in 2018 on January 18, 2023[79](index=79&type=chunk)[150](index=150&type=chunk) - On August 12, 2022, LF Bonds repurchased secured notes with a principal amount of **US$3.5 million** for approximately **US$3,235,000** (approximately HK$25,365,000)[184](index=184&type=chunk) [Corporate Governance](index=32&type=section&id=Corporate%20Governance) The company is committed to maintaining a high standard of corporate governance and complies with the Corporate Governance Code set out in Appendix 14 of the Listing Rules, with the Audit Committee having reviewed the consolidated results for the year - The company has complied with all code provisions of the Corporate Governance Code for the year ended July 31, 2023[185](index=185&type=chunk) - The company's Audit Committee, comprising four independent non-executive directors, has reviewed the company's consolidated results for the year ended July 31, 2023[188](index=188&type=chunk) [Directors, Employees and Remuneration Policy](index=32&type=section&id=Directors,%20Employees%20and%20Remuneration%20Policy) The group welcomes new directors and thanks outgoing directors, is committed to maintaining a stable employee team, provides competitive remuneration and benefits, and evaluates performance for promotions and salary adjustments - Dr. Lam Kin Ngok, Peter and Mr. Cheung Sum joined the Board as Executive Directors on **June 2, 2023**, and **August 1, 2023**, respectively, and Mr. Au Hoi Fung joined as an Independent Non-executive Director on **August 1, 2023**[173](index=173&type=chunk) - Mr. Chow Fuk Hon retired from the Board on **October 1, 2023**[186](index=186&type=chunk) - The group employs approximately **1,700 staff**, maintains competitive salaries, conducts performance-based evaluations for promotions and salary increments, and offers benefits such as share option schemes, Mandatory Provident Fund schemes, hospitalization insurance, medical allowances, and training subsidies[185](index=185&type=chunk) [Investor Relations](index=32&type=section&id=Investor%20Relations) The group actively communicates with the investment community through webinars, conference calls, seminars, and non-deal roadshows, providing updates on operations, financial performance, and outlook, and welcomes feedback from all parties - The group maintains active communication with the investment community through webinars and conference calls with research analysts and investors[174](index=174&type=chunk) - Management actively participates in investor relations programs, engaging with research analysts and institutional investors, and attending major investment seminars and international non-deal roadshows[186](index=186&type=chunk) - The company welcomes feedback from investors, stakeholders, and the public, and provides contact information[187](index=187&type=chunk) [Other Information](index=32&type=section&id=IV.%20Other%20Information) [Review of Annual Results](index=32&type=section&id=Review%20of%20Annual%20Results) The company's Audit Committee has reviewed the consolidated results for the year ended July 31, 2023, including the consolidated financial statements - The company's Audit Committee has reviewed the company's consolidated results (including the consolidated financial statements) for the year ended July 31, 2023[188](index=188&type=chunk) [Independent Auditor's Review of Preliminary Announcement](index=33&type=section&id=Independent%20Auditor's%20Review%20of%20Preliminary%20Announcement) The figures in the consolidated financial statements contained in this preliminary announcement have been agreed by the company's auditor, Ernst & Young, but their work does not constitute an assurance engagement - The figures in the consolidated statement of financial position, consolidated income statement, consolidated statement of comprehensive income, and related notes in this preliminary announcement have been agreed by the company's auditor, Ernst & Young, with the corresponding figures in the group's consolidated financial statements for the year[177](index=177&type=chunk) - The work performed by Ernst & Young does not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements, or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and therefore no assurance opinion is expressed on this preliminary announcement[177](index=177&type=chunk) [Annual General Meeting](index=33&type=section&id=Annual%20General%20Meeting) The company will publish and dispatch the Annual General Meeting notice to shareholders on the respective websites of Hong Kong Exchanges and Clearing Limited and the company in mid-November - The Annual General Meeting will be published and dispatched to shareholders on the respective websites of Hong Kong Exchanges and Clearing Limited and the company in mid-November[178](index=178&type=chunk)

Financial Performance - For the six months ended January 31, 2023, the company reported interest expenses of HKD 349,218,000, an increase from HKD 299,465,000 in the previous year, representing a growth of approximately 16.6%[6] - The operating profit for the company was HKD 274,452,000 for the six months ended January 31, 2023, compared to HKD 214,424,000 in the same period last year, indicating a year-over-year increase of about 28%[8] - The company reported a loss of HKD 222,578,000 for the six months ended January 31, 2023, compared to a loss of HKD 119,777,000 for the same period in 2022, representing an increase in loss of approximately 85.9%[15] - Total revenue for the six months ended January 31, 2023, was HKD 1,002,365,000, while the cost of sales was HKD 527,521,000, resulting in a gross profit of HKD 474,844,000[13] - Operating profit decreased to HKD 189,902,000 for the current period from HKD 349,684,000 in the previous period, indicating a decline of approximately 45.7%[13] - The total comprehensive loss for the period was HKD 370,330,000, compared to a comprehensive income of HKD 285,718,000 in the previous year, marking a significant shift in performance[15] - Total revenue for the period reached HKD 1,002,365,000, a decrease of 21.7% compared to HKD 1,281,083,000 in the previous year[43] - Revenue from property sales was HKD 570,476,000, down from HKD 798,043,000, representing a decline of 28.5%[43] - Hotel and serviced apartment operations generated revenue of HKD 109,365,000, slightly down from HKD 111,079,000, a decrease of 1.5%[43] - The total tax expense for the period was HKD 138,210,000, down from HKD 254,873,000 in the previous year[52] Assets and Liabilities - The total assets of the company as of January 31, 2023, were HKD 32,085,449,000, a decrease from HKD 33,784,769,000 as of July 31, 2022, representing a decline of about 5%[9] - The company reported a total liability of HKD 17,992,700,000 as of January 31, 2023, down from HKD 19,321,690,000 in the previous year, indicating a reduction of approximately 6.9%[9] - Non-current assets totaled HKD 24,684,495,000 as of January 31, 2023, compared to HKD 24,368,332,000 as of July 31, 2022, showing a slight increase of approximately 1.3%[23] - Current liabilities decreased to HKD 4,030,708,000 from HKD 6,942,518,000, indicating a reduction of about 42%[23] - The company’s total assets less current liabilities amounted to HKD 28,054,741,000, compared to HKD 26,842,251,000, reflecting a growth of about 4.5%[23] - The company’s equity attributable to owners was HKD 14,092,749,000, down from HKD 14,463,079,000, indicating a decrease of approximately 2.6%[26] - The company’s total reserves as of January 31, 2023, were HKD 12,628,942,000, down from HKD 12,951,282,000 as of July 31, 2022[28] - The group’s accounts payable and accrued expenses totaled HKD 3,116,869, with current liabilities amounting to HKD 2,159,534 and non-current liabilities at HKD 957,335[72] - The group’s financial liabilities related to put options amounted to HKD 1,237,531, reflecting stability in financial commitments[72] Cash Flow - The company reported a net cash flow from operating activities of (HKD 192,160,000) for the six months ended January 31, 2023, compared to HKD 583,059,000 for the same period in 2022[37] - The company’s financing activities resulted in a net cash outflow of (HKD 1,411,081,000) for the period, compared to (HKD 91,880,000) in the previous year[37] - The company had cash and cash equivalents of HKD 1,599,442,000 at the end of the reporting period, down from HKD 2,499,329,000 at the end of the previous period[37] - The company’s cash and cash equivalents increased to HKD 502,342,000 from HKD 497,168,000, indicating a slight improvement in liquidity[66] - As of January 31, 2023, the group's cash and bank balances amounted to HKD 2.316 billion, with 82% denominated in RMB[142] - The group has unutilized loan financing of HKD 2.373 billion, ensuring sufficient liquidity for current property development and investment projects[144] Property and Development - The company’s revenue is derived from property sales, investment properties, hotel operations, building management, and theme park operations[35] - The group’s property development business recorded revenue of HKD 570,500,000 for the six months ended January 31, 2023, a decrease of 28.5% compared to HKD 798,000,000 in the same period last year[105] - The total area of completed unsold units, including residential, serviced apartment, and commercial units, was approximately 905,600 square feet, with a total book value of approximately HKD 740,700,000 as of January 31, 2023[111] - The average selling price for high-rise residential units was HKD 1,879 per square foot, contributing to sales revenue of HKD 444,100,000[110] - The average selling price for villa units was HKD 3,409 per square foot, contributing to sales revenue of HKD 20,100,000[110] - The average occupancy rate for the Zhuhai Hengqin Hyatt Hotel was 48.6%, with an average room rate of HKD 824[88] - The average occupancy rate for the Ascott Huaihai Road serviced apartments was 73.8%, with an average rent of HKD 1,013[102] - The total completed rental properties in Shanghai amount to 958,933 square feet for commercial/retail use and 996,935 square feet for office use, totaling 1,955,868 square feet[148] - The total completed rental properties in Guangzhou amount to 761,380 square feet for commercial/retail use and 1,210,553 square feet for office use, totaling 1,971,933 square feet[150] - The total completed rental properties across major locations amount to 2,664,993 square feet for commercial/retail use and 2,207,488 square feet for office use, totaling 4,872,481 square feet[150] Governance and Strategy - The company has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on its reported performance or financial position[41] - The company plans to focus on market expansion and new product development to drive future growth[50] - The board consists of 11 members, with 6 executive directors and 5 independent non-executive directors, ensuring a diverse professional background[187] - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules throughout the reporting period[185] - The company is actively managing its business to ensure sustainability while considering the interests of all stakeholders[186] - The group is actively pursuing market expansion through new developments and strategic partnerships in key locations[81] - The company remains confident in the ongoing development of the Hengqin Guangdong-Macao Deep Cooperation Zone, anticipating it will become a key hub in the Greater Bay Area[120] Shareholder Information - The company has initiated a new share option plan effective from December 19, 2022, allowing for the issuance of up to 33,103,344 shares, representing 10% of the issued shares as of January 31, 2023[170] - The company has 23,531,135 shares available for grant under the 2012 share option plan as of January 31, 2023[190] - The company has not granted any new share options under the 2012 plan since its expiration on December 17, 2022[194]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 截至二零二三年一月三十一日止六個月 之中期業績公佈 業績 麗豐控股有限公司（「本公司」）董事會（「董事會」）公佈本公司及其附屬公司（「本集團」）截至二零二三年 一月三十一日止六個月之未經審核綜合業績，連同去年同期比較數字如下： 簡明綜合收益表 截至二零二三年一月三十一日止六個月 截至一月三十一日止六個月 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 營業額 3 1,002,365 1,281,083 銷售成本 (527,521) (661,169) 毛利 474,844 619,914 其他收入及收益 58,234 78,102 銷售及市場推廣費用 (53,652) (69,571) 行政費用 (161,297) (121,467) ...

Financial Performance - For the fiscal year ending July 31, 2022, the group recorded revenue of HKD 2,515.8 million, a decrease of approximately 21.3% compared to HKD 3,196.6 million in the previous year[14]. - Property sales revenue decreased by 28.6% to HKD 1,624.7 million from HKD 2,275.5 million year-on-year[15]. - Gross profit increased by 80.3% to HKD 1,296.9 million, attributed to improved profitability in property sales[14]. - The net loss attributable to the company's owners for the year ended July 31, 2022, was approximately HKD 134.5 million, a significant decrease from HKD 539 million in the previous fiscal year, primarily due to improved property sales profitability and an increase in the fair value of investment properties[19]. - The net loss per share for the year was HKD 0.406, down from HKD 1.628 in the previous year, indicating a reduction in losses[20]. - The company's net asset value attributable to owners as of July 31, 2022, was HKD 14.606 billion, a slight decrease from HKD 15.431 billion as of July 31, 2021, with net asset value per share dropping from HKD 46.62 to HKD 44.12[23]. - The group reported an adjusted net loss of HKD 391.6 million after excluding the impact of property revaluation, compared to HKD 727.5 million in the previous year[21]. - The increase in impairment losses on properties, plants, and equipment was HKD 366.3 million for the year, compared to HKD 189.4 million in the previous year[21]. - The company reported a total equity of HKD 14,463,079,000, down from HKD 15,451,598,000 in 2021[154]. - The company reported a tax expense of HKD 561,888,000, an increase from HKD 439,414,000 in the previous year[145]. Rental Income and Portfolio - Rental income slightly decreased by 1.7% to HKD 875.1 million from HKD 890.3 million in the previous year[15]. - The rental income from the leasing portfolio of approximately 4.5 million square feet in first-tier cities and the Greater Bay Area remained stable during the fiscal year[27]. - The company expects that first-tier cities and the Greater Bay Area will continue to be the main sources of rental income growth in the coming years[27]. - The rental income from Guangzhou Li Feng Center increased by 5.1% to HKD 142.9 million, compared to HKD 136.0 million in the previous year[60]. - The rental income from the Hengqin Innovation Phase I property decreased by 28.9% to HKD 61.2 million, down from HKD 86.1 million in the previous year[60]. - The group maintained a stable rental income from its leasing portfolio in key cities such as Shanghai, Guangzhou, and Zhongshan despite challenging operating conditions[59]. - The total revenue from leasing operations for the year ended July 31, 2022, was HKD 875.1 million, a slight decrease from HKD 890.3 million for the previous year[64]. - The average rental rate for Shanghai Hong Kong Plaza was 87.2% for retail and 85.9% for office, showing a decline from 90.3% and 83.8% respectively in the previous year[60]. Property Development and Future Outlook - The group aims to enhance its property development and investment strategies in the Chinese market moving forward[8]. - Future outlook includes potential acquisitions to strengthen market position and operational capabilities[9]. - The group plans to consider timely expansion of its land reserves while managing its financial situation based on macroeconomic conditions and existing business risks[31]. - The group anticipates that the residential units and unsold serviced apartments in the Zhongshan Palm Rainbow Garden will contribute to revenue in the upcoming fiscal year[31]. - The group's property development business recorded a revenue of HKD 1,624.7 million for the year ended July 31, 2022, a decrease of 28.6% compared to HKD 2,275.5 million in the previous year[95]. - The confirmed sales were primarily driven by residential units from the Zhongshan Palm Rainbow Garden and cultural workspaces from the Hengqin Innovation Phase I[95]. - The average selling price for residential units in the Shanghai Wuliqiao project was HKD 12,911 per square foot, contributing HKD 89 million to the group's revenue[104]. - The total sales from the Zhongshan Palm Rainbow Garden included 530 high-rise residential units and 16 villa units, generating revenue of HKD 1,070.5 million[96]. Financial Management and Debt - The group reported cash on hand of approximately HKD 4,142,600,000 as of July 31, 2022, down from HKD 4,699,000,000 in the previous year, and unused loan facilities of HKD 1,984,500,000[41]. - The debt-to-equity ratio as of July 31, 2022, was 53%, an increase from 45% in the previous year, indicating a cautious approach to financial management[41]. - The net debt increased to HKD 7,797.1 million from HKD 6,889.3 million year-over-year[46]. - Total borrowings amount to HKD 11,939,700,000, an increase of HKD 351,400,000 compared to HKD 11,588,300,000 in the previous year[130]. - The net debt to equity ratio is approximately 53%, up from 45% in the previous year[130]. - Approximately 23% of borrowings are fixed-rate, while 72% are floating-rate[131]. Environmental, Social, and Governance (ESG) Initiatives - The company has received approval from the management team and the board of directors for the annual Environmental, Social, and Governance (ESG) report[169]. - The board acknowledges the importance of ESG issues for the long-term success of the business and takes overall responsibility for the management and execution of these issues[170]. - The company conducted extensive stakeholder engagement activities to ensure that significant ESG issues are relevant to its business and stakeholders[172]. - The company aims to reduce its environmental impact and has set qualitative targets for the fiscal year 2020/2021, focusing on reducing energy consumption, greenhouse gas emissions, and waste generation[182]. - The company has obtained ISO 14001:2015 environmental management system certification for its properties in Guangzhou and Shanghai during the reporting year[186]. - The company has received multiple green building certifications, including LEED Gold certification for Guangzhou Li Feng Center and LEED Gold pre-certification for Shanghai Li Feng Tian Jie Center[185]. - The company has identified tropical cyclones as the most significant climate-related risk, potentially causing substantial asset and economic losses[190]. - The company has implemented waste management procedures requiring contractors to submit waste handling plans based on the "3R" principles (Reduce, Reuse, Recycle)[197].

Financial Performance - Revenue for the six months ended January 31, 2022, was HKD 1,281,083, a decrease of 17.6% compared to HKD 1,554,721 for the same period in 2021[6]. - Gross profit increased to HKD 619,914, compared to HKD 290,582 in the previous year, reflecting a significant improvement in profitability[6]. - Operating profit for the period was HKD 349,684, a turnaround from an operating loss of HKD 59,362 in the prior year[6]. - The net loss for the period was HKD 119,777, a substantial reduction from a loss of HKD 494,095 in the same period last year[8]. - The company reported a basic and diluted loss per share of HKD 0.226, an improvement from HKD 1.348 in the previous year[6]. - The total comprehensive income for the period was HKD 1,213,073,000, compared to HKD 1,659,155,000 in the previous year[19]. - The company reported a loss attributable to owners of the company of HKD (446,124,000) for the period[19]. - The company reported a loss of HKD 74,853 during the period, impacting retained earnings negatively[15]. Comprehensive Income - Other comprehensive income for the period totaled HKD 405,495, compared to HKD 1,707,168 in the previous year, indicating a decrease in overall comprehensive income[8]. - The total comprehensive income attributable to owners of the company was HKD 322,402, compared to HKD 1,213,031 in the prior year[8]. - The company experienced a foreign exchange gain of HKD 375,528, compared to a gain of HKD 1,705,911 in the previous year[8]. - Other comprehensive income for the period included a foreign exchange gain of HKD 367,288, contributing positively to overall equity[15]. Assets and Liabilities - As of January 31, 2022, total non-current assets increased to HKD 25,379,546, up from HKD 24,503,832 as of July 31, 2021, representing a growth of approximately 3.56%[10]. - Current liabilities rose significantly to HKD 7,547,186 from HKD 4,185,761, indicating an increase of approximately 80.00%[10]. - The net current assets decreased to HKD 2,928,477 from HKD 6,449,273, reflecting a decline of approximately 54.73%[10]. - The company’s total liabilities increased to HKD 20,116,817,000 from HKD 19,687,268,000, reflecting a growth of approximately 2%[35]. - The company’s total liabilities classified as current liabilities were HKD 2,004,229,000, a decrease from HKD 2,289,675,000 in the previous year[51]. Cash Flow - The net cash flow from operating activities for the six months was HKD 583,059,000, down from HKD 874,300,000 in the prior year, indicating a decline of approximately 33.3%[21]. - The net cash flow used in investing activities was HKD (857,727,000), compared to HKD (996,587,000) in the previous year, showing an improvement of about 13.9%[21]. - The net cash flow from financing activities was HKD (91,880,000), a significant decrease from HKD 1,132,738,000 in the previous year[21]. - The company’s cash and cash equivalents stood at HKD 2,499,329, a decrease from HKD 2,819,615, indicating a decline of approximately 11.37%[10]. Revenue Breakdown - Revenue from property sales was HKD 798,043,000, compared to HKD 816,617,000 in the previous year, reflecting a decrease of about 2.4%[28]. - Property sales revenue decreased by 27.2% to HKD 798.0 million, down from HKD 1,095.8 million in the previous year[97]. - The total rental revenue for the group increased by 6.3% to HKD 472.8 million for the six months ended January 31, 2022, compared to HKD 444.7 million for the same period in 2021[114]. Future Plans and Strategy - The company plans to focus on market expansion and new product development to drive future growth[5]. - The company plans to continue focusing on property development and investment, as well as expanding its hotel and theme park operations[26]. - The company plans to consider expanding its land reserves in a timely manner, taking into account macroeconomic conditions and existing business in relevant cities[86]. - The company is committed to providing regular updates to its board, ensuring transparency and informed decision-making regarding its performance and future prospects[200]. Corporate Governance - The board of directors consists of 11 members, with a diverse background in real estate, investment, banking, accounting, finance, and law, ensuring comprehensive oversight of the company's operations[200]. - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations during the reporting period[199]. - The company is focused on long-term sustainability and strategic planning to align with shareholder interests and stakeholder considerations[200].

Financial Performance - For the fiscal year ending July 31, 2021, the company recorded a revenue of HKD 3,196.6 million, an increase of approximately 166.0% compared to HKD 1,201.8 million in the previous fiscal year[14]. - The increase in revenue was primarily due to a significant rise in property sales, with property sales revenue reaching HKD 2,275.5 million, up 435.9% from HKD 424.6 million[15]. - Gross profit increased by 20.4% to HKD 719.1 million from HKD 597.3 million in the previous year[14]. - The net loss attributable to the company's owners decreased to approximately HKD 539 million, compared to HKD 1,006.3 million in the previous year, marking a significant reduction[17]. - The loss per share was HKD 1.628, down from HKD 3.049 in the previous year, indicating an improvement in financial performance[18]. - The company's net asset value attributable to owners increased to HKD 15,431.3 million, up from HKD 14,309.1 million the previous year, with a slight increase in net asset value per share from HKD 43.23 to HKD 46.62[18]. - Operating profit was HKD 165.8 million, a turnaround from an operating loss of HKD 918.6 million, with an operating margin of 5.2%[44]. - The net profit for the year was a loss of HKD 675,565,000, compared to a loss of HKD 1,224,558,000 in the previous year, indicating an improvement in financial performance[133]. Revenue Sources - Rental income for the year was HKD 890.3 million, representing a 17.4% increase from HKD 758.1 million in the previous year[15]. - The rental revenue from the leasing portfolio of approximately 4.5 million square feet remained stable during the review period, with major growth expected from first-tier cities and the Greater Bay Area[23]. - The total rental revenue for the group increased by 17.4% to HKD 890.3 million in 2021 from HKD 758.1 million in 2020[57]. - The rental revenue from Hengqin Innovation Phase I surged by 611.6% to HKD 86.1 million, up from HKD 12.1 million in the previous year[57]. Property Development - The property development business recorded a revenue of HKD 2,275,500,000 for the year ended July 31, 2021, representing a 435.9% increase compared to HKD 424,600,000 in 2020[93]. - The confirmed sales primarily came from residential units and parking spaces in the Shanghai Wuliqiao project and the Zhongshan Palm Rainbow Garden, as well as sales from the Hengqin Harrow School occupied property[93]. - The total area of the Zhuhai Hengqin Hyatt Hotel is approximately 594,800 square feet, with the group’s share being about 475,800 square feet, including 493 guest rooms[93]. - The average selling price per square foot for the Shanghai Wuliqiao residential units was HKD 15,331, generating a revenue of HKD 846 million[94]. - The total planned gross floor area for the Zhongshan Palm Rainbow Garden project is approximately 6,075,000 square feet, with confirmed sales contributing HKD 836.3 million to revenue[108]. Strategic Initiatives - The company is focused on expanding its investment and development in hotel-style serviced apartments, residential, office, and commercial properties in mainland China[9]. - Future outlook includes continued growth in property sales and potential new developments in cultural and recreational facilities[9]. - The company plans to enhance its operational efficiency and explore strategic acquisitions to support its growth objectives[9]. - The group plans to expand its land reserves and will consider various factors including macroeconomic conditions and existing business risks[29]. Market Outlook - The company remains optimistic about the long-term business environment in China, particularly in the Greater Bay Area, and expects continued growth in the tourism market[22]. - The company anticipates that ongoing cooperation between Hengqin and Macau will encourage more residents to move to Hengqin, further promoting market growth[26]. Corporate Governance and ESG - The board of directors emphasizes the importance of sustainable development and corporate governance in its future strategies[9]. - The company identified 23 significant environmental, social, and governance (ESG) issues relevant to its operations through benchmarking against peers[160]. - Key ESG issues identified include energy management, waste management, employee relations, and customer satisfaction, all of which are critical for both property and hotel operations[162]. - The company aims to enhance its ESG strategy based on stakeholder feedback collected during the year[158]. Employee Relations - The group employed approximately 2,000 employees as of July 31, 2021, emphasizing the importance of maintaining a stable workforce for continued success[127]. - The group has implemented competitive salary policies and performance-based promotions, which are crucial for employee retention and motivation[127]. - The group has established various employee benefits, including stock option plans and medical insurance, to enhance employee satisfaction and retention[127]. Financial Position - The group had cash on hand of approximately HKD 4.699 billion as of July 31, 2021, compared to HKD 2.525 billion in 2020, and undrawn loan facilities of HKD 3.026 billion[35]. - The debt-to-equity ratio as of July 31, 2021, was 45%, down from 55% in 2020[35]. - The group reported a significant increase in current assets, which rose to HKD 10,635,034,000 from HKD 8,532,774,000, reflecting improved liquidity[138]. Construction and Development Projects - The second phase of the "Innovation Park" is under construction, expected to be completed in stages by 2024, providing a total area of approximately 2,519,800 square feet for commercial and entertainment facilities[26]. - The group is currently delivering pre-sold units in the Zhongshan Palm Rainbow Garden project, which has completed construction[27]. - The Guangzhou Haizhu Square project is currently under construction, with an estimated completion date in the first half of 2023 and a total site area of 90,708 square feet[147]. Environmental Initiatives - The group is committed to reducing environmental impact by integrating sustainability into business operations, with specific goals for reducing greenhouse gas emissions, energy consumption, and waste generation[163]. - The group has achieved LEED Gold certification for the Guangzhou Li Feng Center and Gold pre-certification for the Guangzhou Haizhu Plaza Development Project, emphasizing its commitment to sustainable building practices[166]. - The company has implemented a waste management strategy that includes recycling bins in office areas and properties, and has introduced smart recycling bins in Zhongshan to enhance waste processing[176].

Financial Performance - For the six months ended January 31, 2021, the company reported revenue of HKD 1,554,721,000, a significant increase from HKD 599,898,000 in the same period last year, representing a growth of approximately 159%[3] - The gross profit for the same period was HKD 290,582,000, down from HKD 312,049,000 year-on-year, indicating a decrease of about 7%[3] - Operating loss narrowed to HKD 59,362,000 compared to a loss of HKD 249,786,000 in the previous year, showing an improvement of approximately 76%[3] - The company incurred a total loss of HKD 494,095,000 for the period, which is an improvement from a loss of HKD 570,790,000 in the prior year, reflecting a reduction of about 13%[5] - Other income and gains increased to HKD 54,964,000 from HKD 30,526,000, marking an increase of approximately 80%[3] - The financing costs rose to HKD 186,318,000 from HKD 115,477,000, representing an increase of about 61%[3] - The company reported a foreign exchange gain of HKD 1,705,911,000, a significant turnaround from a loss of HKD 424,811,000 in the previous year[5] - Total comprehensive income for the period was HKD 1,213,073,000, compared to a loss of HKD 995,610,000 in the same period last year, indicating a substantial recovery[5] - The company’s basic and diluted loss per share was HKD 1.348, slightly improved from HKD 1.351 in the previous year[3] Assets and Liabilities - Total non-current assets increased to HKD 24,222,784,000 from HKD 22,425,560,000, representing an increase of approximately 8%[8] - Current assets rose to HKD 10,851,823,000 compared to HKD 8,532,774,000, marking a growth of around 27%[8] - Total liabilities remained stable with current liabilities at HKD 6,723,661,000, slightly down from HKD 6,725,324,000[8] - Net current assets improved significantly to HKD 4,128,162,000 from HKD 1,807,450,000, indicating a growth of over 128%[8] - Total equity attributable to owners increased to HKD 15,522,287,000 from HKD 14,309,099,000, reflecting an increase of approximately 8.5%[10] - The total value of non-current liabilities rose to HKD 12,718,194,000 from HKD 9,813,488,000, an increase of about 29%[8] Cash Flow - The net cash flow from operating activities for the six months ended January 31, 2021, was HKD 874,300,000, a turnaround from a cash outflow of HKD 298,903,000 in the same period of 2020[19] - The company recorded a net cash flow from financing activities of HKD 1,132,738,000, compared to HKD 703,658,000 in the previous year, reflecting an increase of approximately 60.9%[19] - The cash and cash equivalents at the end of the period increased to HKD 2,290,979,000 from HKD 1,249,053,000, marking a growth of about 83.4%[19] - The company’s cash and cash equivalents increased to HKD 2,290,979,000 from HKD 1,193,956,000, a growth of approximately 92%[8] Revenue Sources - Revenue from customer contracts amounted to HKD 992,787,000, compared to HKD 322,046,000 in the previous year, indicating a growth of about 208.5%[26] - The company generated rental income from investment properties amounting to HKD 282,702,000, compared to HKD 277,852,000 in the previous year, showing a slight increase[26] - Total revenue for the year 2021 reached HKD 1,564,300,000, an increase from HKD 609,916,000 in 2020[31] - The group recorded a revenue of HKD 1,554.7 million for the six months ending January 31, 2021, representing an increase of approximately 159.2% compared to the previous year[93] Property Development and Leasing - The company has engaged in various new accounting standards and policies, which did not have a significant impact on the reported performance or financial position[23] - The company is actively pursuing market expansion opportunities in the Greater Bay Area, particularly in Hengqin, which is positioned as a core city in Guangdong Province[127] - The group recorded property development revenue of HKD 1,095,800,000 for the six months ended January 31, 2021, representing an increase of 525.5% compared to the same period last year[141] - The company has ongoing development projects, including the second phase of Innovation Square, which is expected to cover approximately 1,898,725 square feet upon completion[183] Market Outlook and Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[3] - The company remains optimistic about the long-term business environment in China, driven by the government's dual circulation development model[76] - Future outlook includes continued investment in property development and potential acquisitions to strengthen the portfolio and drive revenue growth[127] Corporate Governance - The company has not established a nomination committee, with its functions being undertaken by the entire board of directors[192] - The board of directors consists of 14 members, including 7 executive directors and 5 independent non-executive directors, ensuring diversity in gender, nationality, and professional background[193] - The company has adopted a share option scheme to recognize the contributions of eligible participants, including directors and employees, which will remain effective for ten years from the adoption date[200] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules, with minor deviations noted[190]

Financial Performance - For the fiscal year ending July 31, 2020, the company reported revenue of HKD 1,201.8 million, a decrease of approximately 17.8% compared to HKD 1,461.2 million in 2019[12] - The gross profit fell by 34.9% from HKD 917.5 million in the previous year to HKD 597.3 million[12] - Rental income decreased by 10.6% to HKD 758.1 million, while property sales dropped by 30.8% to HKD 424.6 million[14] - The company recorded a net loss attributable to shareholders of approximately HKD 1,006.3 million, compared to a profit of HKD 668.6 million in the previous year[14] - The average exchange rate of RMB depreciated by about 3.7% during the reporting period, leading to a 14.6% decline in revenue when measured in RMB[12] - The company reported a net loss per share of HKD 3.049, compared to earnings per share of HKD 2.043 in 2019[15] - The net profit attributable to the company's owners for the year ended July 31, 2020, was HKD (1,006.3) million, compared to a profit of HKD 668.6 million in 2019[16] - The company did not recommend a final dividend for the year ended July 31, 2020, compared to a dividend of HKD 0.20 per share in 2019[19] - The company’s net asset value per share decreased to HKD 43.23 from HKD 48.36 year-over-year[41] - The group recorded a revenue of HKD 424.6 million from property sales for the year ending July 31, 2020, a decrease of 30.8% compared to HKD 613.3 million in 2019[87] Operational Highlights - The theme park operations revenue surged by 6266.7% to HKD 19.1 million, reflecting a significant increase in this segment[14] - Increased operating expenses were primarily due to higher depreciation costs for properties, plants, and equipment during the reporting period[14] - The property investment segment contributed approximately 63% to the total revenue, with a rental portfolio of 4,500,000 square feet located in first-tier cities and the Greater Bay Area[20] - The company expects to have a rental portfolio of approximately 8,800,000 square feet after the completion of ongoing projects, including the redevelopment of Shanghai Zhabai Plaza and Guangzhou Haizhu Plaza[21] - The first phase of the Innovation Square has achieved 69% occupancy, with major tenants including Adidas and Starbucks, despite a five-month closure due to COVID-19[23] - The Shanghai Wuliqiao project has sold 17 out of 28 residential units, generating a signed sales total of approximately RMB 536.4 million, with additional units under subscription expected to increase this figure to RMB 756.2 million[25] Strategic Plans - The company plans to continue focusing on property development and investment in cultural and recreational facilities in mainland China[7] - The company aims to enhance its market presence through strategic investments and potential acquisitions in the property sector[7] - The company plans to expand its land reserves considering macroeconomic conditions and existing business risks[26] - The expected growth of the rental portfolio and development projects is outlined for fiscal years 2021 to 2024, with significant contributions anticipated from completed projects[29] - The company is developing key facilities in the second phase of Innovation Square, including the Harrow International School, expected to open in February 2021[24] Financial Position - As of July 31, 2020, the company had cash on hand of approximately HKD 2,524.6 million, down from HKD 3,097.3 million a year earlier[36] - The net debt to equity ratio increased to 54.6% from 38.0% in the previous year[41] - The stock price as of July 31, 2020, was HKD 8.93, compared to HKD 7.84 a year prior[41] - The group’s total borrowings as of July 31, 2020, amounted to HKD 10,339,500,000, an increase of HKD 1,220,300,000 from the previous year[126] - The group holds cash and bank balances of HKD 2,524,600,000 and undrawn loan facilities of HKD 3,034,200,000 as of July 31, 2020[126] Sustainability and Compliance - The company is committed to environmental sustainability, adhering to all relevant environmental laws and regulations without any violations reported during the fiscal year[157] - The company has upgraded its management systems in Shanghai and Guangzhou to comply with the latest ISO 14001:2015 standards[160] - The company employs green building practices in its projects, following LEED v4 standards for design and construction[158] - The company has established a waste management plan based on the "3R" principles (Reduce, Reuse, Recycle) to manage waste generated from property development[163] - The company has committed to providing a safe working environment, implementing health and safety measures, and offering training to employees to manage occupational health risks[174] Employee Engagement and Training - The group employed approximately 2,000 employees as of July 31, 2020, maintaining competitive salary levels and performance-based promotions[132] - The company provides extensive internal and external development programs for employees, including tuition assistance for those with over 12 months of service[179] - Training programs for property management staff cover sales and marketing skills, customer service, and property safety management, among others[180] - Employee training opportunities in the hotel sector include topics such as business development and customer service, aimed at fostering growth[182] Customer Satisfaction and Safety - High customer satisfaction levels were recorded, with overall satisfaction rates of 99%, 97%, and 99% for properties in Guangzhou[186] - The company has implemented various COVID-19 preventive measures across its operations to ensure the health and safety of customers and employees[190] - The Shanghai Ascott Huaihai Road serviced apartment has established standard operating procedures for health checks and safety protocols during the pandemic[192] - The company has received recognition from the Yuexiu District government for its exemplary COVID-19 response measures in property management[191]