Financial Performance - In the first half of 2023, the company recorded a revenue decrease of 46% to $3,989,000 compared to $7,405,000 in the same period of 2022, primarily due to a decline in shipping business revenue[51]. - The company reported a loss attributable to shareholders of $983,000 in the first half of 2023, compared to a profit of $1,575,000 in the same period of 2022[58]. - The company reported a loss before tax of $983,000 compared to a profit of $1,575,000 in the previous year, indicating a significant shift in performance[108]. - The company experienced a net comprehensive loss attributable to owners of $1,232,000 compared to a gain of $490,000 in the previous year[108]. - The company's basic loss per share was $(0.09), compared to earnings of $0.14 per share in the prior year[108]. - The group recorded no revenue or profit from its commodity trading business focused on electronic components in the first half of 2023, similar to the situation in the first half of 2022, and plans to restart this business when market conditions improve[74]. Revenue and Segment Analysis - Segment revenue for shipping investment holdings was $3,953,000, with total segment revenue amounting to $3,989,000[1]. - The company's shipping business revenue decreased by 46% to $3,953,000, with profit dropping by 80% to $796,000, compared to $4,029,000 in the previous year[51]. - Marine revenue decreased to $3,953,000 from $7,265,000, representing a decline of approximately 45.5% year-over-year[108]. - Total revenue for the six months ended June 30, 2023, was $3,989,000, down from $7,405,000, a decrease of about 46.1%[108]. Assets and Liabilities - Total assets of the company reached $66,455,000, with segment assets for shipping investment holdings at $44,067,000[4]. - The total liabilities of the company amounted to $5,317,000, with segment liabilities for shipping investment holdings at $5,177,000[4]. - The total assets of the group as of June 30, 2023, were $63,801,000, a decrease from $66,455,000 as of December 31, 2022[88]. - The company's total liabilities decreased from $66,455,000 to $63,801,000, a reduction of approximately 4.0%[135]. - As of June 30, 2023, the company's current assets were $17,893,000 and quick assets totaled $14,143,000, with a current ratio of approximately 5.77[59]. Impairment and Credit Loss - The company reported a pre-tax loss of $983,000, which includes a net impairment loss of $109,000 related to vessels[1]. - The company recognized a vessel impairment loss of $109,000 in the first half of 2023, compared to no impairment loss in the same period of 2022[69]. - The company recognized a credit loss provision of $704,000 for debt instruments measured at fair value through other comprehensive income[12]. - The net credit loss provision for debt instruments measured at fair value through other comprehensive income was $704,000, significantly reduced from $1,617,000 in the previous year, indicating an improvement in credit quality[94]. Investment and Acquisition Plans - The company is considering purchasing a second-hand Supramax or Panamax vessel, noting that prices for such vessels have significantly increased since 2021 but are showing signs of stabilization[52]. - The group plans to use the remaining net proceeds of $5,800,000 from its public offering to acquire a second-hand bulk carrier, as prices for such vessels have increased significantly since 2021[82]. - The group has not acquired any second-hand super handy or Panamax vessels due to significant price increases, but sees opportunities in the second-hand dry bulk carrier market and will continue its acquisition plans[85]. - The company aims to seek opportunities to acquire investment properties with ideal rental yields and/or high appreciation potential[57]. Financial Costs and Borrowings - The company’s total borrowings amounted to $1,817,000 as of June 30, 2023, down from $2,878,000 at the end of 2022[60]. - Financial costs for the first half of 2023 were $115,000, a reduction of 31% from $167,000 in the same period of 2022, attributed to a decrease in average borrowing amounts[101]. - As of June 30, 2023, the group's borrowing ratio was approximately 3%, down from 5% as of December 31, 2022, with total borrowings of $1,817,000 compared to $2,878,000[79]. Market Conditions and Outlook - The management remains cautiously optimistic about the medium to long-term outlook for the shipping business, despite a weak market environment due to economic slowdowns and geopolitical tensions[107]. - The Baltic Dry Index remained volatile compared to the previous year, prompting a review of the recoverable amounts of the company's vessels[8]. - The Baltic Dry Index fluctuated between 500 and 1,500 points during the reporting period, significantly lower than the 2,000 to 3,000 points range in the first half of 2022[68]. Shareholder Information - The company has not granted any share options under its share option scheme since its adoption[25]. - The company has a total of 109,770,356 shares available for issuance under the share option scheme, representing approximately 10% of the issued shares[25]. - The weighted average number of ordinary shares issued during the period remained unchanged at 1,097,704 shares for both 2023 and 2022[130]. Other Financial Metrics - Operating cash flow before changes in working capital was $1,186,000, down from $4,574,000, reflecting a decline of approximately 74%[113]. - Cash and cash equivalents decreased from $18,115,000 at the end of 2022 to $1,307,000 at the end of June 2023, a decline of approximately 92.8%[140]. - Net cash generated from investing activities was $718,000 for the six months ended June 30, 2023, compared to $9,416,000 for the same period in 2022, indicating a significant decrease of approximately 92.4%[140]. - The actual annual interest rate on loans as of June 30, 2023, ranged from 8.65% to 9.04%, compared to 2.95% to 7.17% as of December 31, 2022[169].

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，並明確表示概不會就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。 COURAGE INVESTMENT GROUP LIMITED 勇利投資集團有限公司 （於百慕達註冊成立之有限公司） （香港股份代號：1145） （新加坡股份代號：CIN） 截至二零二三年六月三十日止六個月之 未經審核中期業績公佈 勇利投資集團有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬公司（統稱 「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合業績連同比較數字如 下： 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 附註 千美元 千美元 （未經審核） （未經審核） ...

Corporate Governance - The company held four regular board meetings and two shareholder meetings during the year ended December 31, 2022[1]. - The audit committee consists of three independent non-executive directors, ensuring strong oversight of financial reporting and compliance[10]. - The nomination committee is composed of four members, including three independent non-executive directors, ensuring adherence to corporate governance standards[3]. - The company has established a whistleblowing policy to encourage reporting of fraud, misconduct, and improper behavior, which is crucial for effective risk management[17]. - The company has implemented a zero-tolerance policy towards corruption, fraud, and other serious violations of professional ethics[96]. - The company has a whistleblowing policy to protect whistleblowers from common concerns such as confidentiality and retaliation[97]. Financial Performance - The group recorded a revenue increase of 27% to $12,372,000 for the fiscal year ending December 31, 2022, compared to $9,738,000 in 2021, primarily driven by the growth in the shipping business[47]. - The shipping business achieved a revenue growth of 35% to $12,079,000 in the fiscal year 2022, with a profit increase of 38% to $5,436,000, up from $3,938,000 in 2021[47]. - The company reported a pre-tax profit of $1,123 thousand for fiscal year 2022, down from $10,488 thousand in 2021, showing a decline of approximately 89%[140]. - The company’s basic earnings per share for fiscal year 2022 was $0.10, a decrease from $0.96 in 2021, indicating a decline of about 90%[140]. - The total administrative expenses for fiscal year 2022 were $1,335 thousand, compared to $1,523 thousand in 2021, showing a reduction of approximately 12%[140]. - The company recorded a net impairment loss of $797 thousand for vessels in fiscal year 2022, a significant decrease from $13,430 thousand in 2021[140]. - Total revenue for the fiscal year 2022 was $12,372 thousand, an increase from $9,738 thousand in 2021, representing a growth of approximately 27%[140]. - Marine revenue for the fiscal year 2022 was $12,079 thousand, compared to $8,976 thousand in 2021, indicating a growth of about 34%[140]. Risk Management - The company maintains a robust risk management and internal control system, with no significant weaknesses identified as of December 31, 2022[16]. - The company has established a crisis response plan to mitigate the negative impacts of extreme weather events on operations[105]. - The company anticipates stricter climate legislation and regulations to support global carbon neutrality, which may increase capital investment and compliance costs[74]. - The company did not experience significant foreign exchange risk during the fiscal year 2022, as its monetary assets and liabilities are primarily denominated in USD or HKD[189]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to enhance its environmental, social, and governance (ESG) performance through dedicated personnel overseeing related policies and strategies[27]. - The group has set environmental goals related to greenhouse gas emissions, waste management, energy consumption, and water usage to mitigate its environmental impact[35]. - The group has established effective management policies and internal controls to address significant environmental, social, and governance issues[34]. - The group’s operations did not generate any direct greenhouse gas emissions during the fiscal year 2022, as all owned vessels were leased out[37]. - The total greenhouse gas emissions density increased by approximately 28.57% from about 0.007 tons per employee in the fiscal year 2021 to about 0.009 tons per employee in the fiscal year 2022, primarily due to increased business activities[67]. - The company aims to reduce total greenhouse gas emissions density by 10% by the end of the fiscal year 2026, using the fiscal year 2021 as the baseline[62]. - The company has set up recycling bins to collect recyclable materials as part of its waste management strategy to achieve its sustainability goals[67]. - The company is committed to maintaining transparency in its environmental, social, and governance (ESG) reporting to build trust with investors[75]. - The company has committed to optimizing resource usage and tracking key performance indicators related to environmental, social, and governance aspects[100]. - The company emphasizes the importance of environmental and safety performance in its operations and maintains close communication with suppliers to address service issues[152]. Employee Development and Diversity - The gender ratio of employees, including senior management, was 1:1 as of December 31, 2022, indicating gender diversity within the workforce[5]. - The company emphasizes the importance of a diverse workforce and is dedicated to providing equal opportunities in employment[82]. - The company actively provides career development opportunities for employees through internal and external training programs[85]. - The average training hours per employee increased to 36.56 hours in fiscal year 2022 from 24.75 hours in 2021, reflecting a significant improvement in employee training[118]. - In the fiscal year 2022, the total number of trained employees was calculated as a percentage of the total number of employees at the end of the reporting period[87]. - The average training hours by category were calculated based on the training hours of specific category employees divided by the number of employees in that category at the end of the reporting period[88]. Operational Insights - The company is primarily engaged in shipping, investment holding, property holding and investment, and commodity trading, with a focus on electronic components trading[26]. - The company has three super handy-sized vessels with a total carrying capacity of approximately 171,000 deadweight tons, and is exploring opportunities to acquire second-hand vessels as market conditions show signs of easing[48]. - The company plans to continue its strategy of acquiring a second-hand dry bulk vessel, potentially including Panama-type vessels with higher carrying capacity[48]. - The crew expenses for the year amounted to $2,679,000, an increase from $1,892,000 in the previous year[193]. - The company continues to monitor market conditions closely for potential vessel acquisitions and will update shareholders on any developments[187]. Financial Position - As of December 31, 2022, total equity amounted to $61,138,000, a decrease from $61,452,000 in 2021, reflecting a reduction of approximately 0.51%[171]. - Non-current liabilities decreased significantly from $4,878,000 in 2021 to $756,000 in 2022, indicating a reduction of approximately 84.5%[171]. - Cash and cash equivalents decreased from $7,640,000 at the beginning of the year to $2,201,000 at year-end, representing a decline of approximately 71.2%[175]. - The company reported a net cash outflow from financing activities of $(7,050,000) in 2022, compared to $(6,441,000) in 2021, reflecting an increase of approximately 9.5%[175]. - The total liabilities and equity amounted to $66,455,000 as of December 31, 2022, down from $72,451,000 in 2021, a decrease of approximately 8.2%[171]. Compliance and Legal Matters - There were no significant violations of relevant laws and regulations that had a major impact on the company during the fiscal year 2022[61]. - The company has no significant contingent liabilities or capital commitments as of December 31, 2022[190]. - A deposit of $1,006,000 was paid to the Singapore Supreme Court related to a claim from another vessel's owner, which is expected to be refunded after the case is resolved[191].

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，並明確表示概不會就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。 COURAGE INVESTMENT GROUP LIMITED 勇利投資集團有限公司 （於百慕達註冊成立之有限公司） （香港股份代號：1145） （新加坡股份代號：CIN） 截至二零二二年十二月三十一日止年度之 全年業績公佈 勇利投資集團有限公司（「本公司」）董事會（「董事會」或「董事」）欣然公佈本公司及其附屬 公司（統稱為「本集團」）截至二零二二年十二月三十一日止年度的經審核綜合業績連同比 較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千美元 千美元 收入 海運收入 12,079 8,976 ...

Financial Performance - For the first half of 2022, Courage Investment Group Limited reported a revenue increase of 80% to $7,405,000, compared to $4,119,000 in the same period of 2021[11]. - The shipping business generated revenue growth of 100% to $7,265,000, with profit increasing by 249% to $4,029,000, driven by the recovery of global economic activities[12]. - The basic earnings per share rose to $0.14, up from $0.06 in the previous year[11]. - The company reported a profit attributable to shareholders of $1,575,000 for the first half of 2022, compared to $703,000 for the same period in 2021, indicating a significant increase in profitability[26]. - The total comprehensive income attributable to shareholders was $490,000 for the first half of 2022, up from $255,000 in the previous year[26]. - The shipping business contributed a profit of $4,029,000, a substantial increase from $1,154,000 in the first half of 2021[26]. - Net profit attributable to the company's owners for the period was $1,575,000, compared to $703,000 in the previous year, representing a 124% increase[38]. - The company reported a total comprehensive income of $490,000 for the period, up from $255,000 in the previous year[38]. - Employee costs for the first half of 2022 were $335,000, an increase from $296,000 in the same period of 2021[35]. - The group achieved a total profit of $1,575,000 for the six months ended June 30, 2022, up from $703,000 in the same period last year, reflecting an increase of approximately 124%[71]. Market Conditions - The overall market outlook for the shipping business remains cautiously optimistic despite new uncertainties from the Russia-Ukraine conflict[12]. - The market conditions for the shipping business improved in the first half of 2022, attributed to the recovery of global economic activities as the COVID-19 pandemic eased[36]. - The shipping business's performance is closely tied to the fluctuations in freight rates, which are expected to improve with the ongoing recovery of global economic activities[12]. Assets and Liabilities - As of June 30, 2022, the company held current assets of $21,040,000, an increase from $13,122,000 at the end of 2021[27]. - The current ratio improved significantly to approximately 7.50, compared to 2.44 at the end of 2021, primarily due to cash received from the sale of investment properties[27]. - The total assets of the group amounted to $69,300,000 as of June 30, 2022, compared to $72,451,000 as of December 31, 2021, showing a decrease of about 4%[65]. - The total amount of secured loans was $5,939,000 as of June 30, 2022, a decrease of 39.1% from $9,786,000 as of December 31, 2021[83]. - Current liabilities decreased to $2,806,000 from $5,374,000, a reduction of 48%[43]. - The total cash and cash equivalents increased to $18,115,000 at the end of the period, up from $7,175,000 at the end of the previous year, marking a rise of 152%[50]. Investment and Acquisition Plans - The company has not yet acquired any second-hand super handymax vessels due to significant price increases since 2021, but plans to continue its acquisition strategy[13]. - The company is exploring the acquisition of a second-hand panamax vessel to enhance its fleet options when market conditions stabilize[13]. - The company plans to acquire a second-hand dry bulk carrier, specifically targeting Panama-type vessels, to enhance its operational capacity[36]. - The company will continue to seek potential investment and acquisition opportunities to enhance long-term benefits[36]. Credit Loss and Financial Management - The company recognized a credit loss provision of $1,617,000 for debt instruments measured at fair value through other comprehensive income, reflecting a significant increase in credit risk[26]. - The fair value of debt instruments classified as measured at fair value through other comprehensive income decreased by a net amount of $2,424,000 during the period[17]. - The expected credit loss provision for debt instruments measured at fair value through other comprehensive income was $1,617,000 for the six months ended June 30, 2022, compared to $0 for the same period in 2021[82]. - The company closely collaborates with independent qualified valuers to assess expected credit losses based on historical and forward-looking data[77]. Shareholder Information - As of June 30, 2022, the company had a significant shareholder, Mr. Sun, holding 315,990,132 shares, representing approximately 28.79% of the total issued shares[109]. - The company has adopted a share option scheme that allows for the issuance of up to 109,770,356 shares, which is about 10% of the total issued shares as of the report date[104]. - The group did not declare or propose any dividends during the interim period, consistent with the previous year[70]. Compliance and Governance - The financial statements for the six months ended June 30, 2022, were approved and authorized for publication by the board on August 23, 2022[99]. - The company confirmed compliance with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2022[112]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, prior to board approval[117]. - The company’s directors confirmed compliance with the required standards of the Model Code for Securities Transactions by Directors during the reporting period[113].

Financial Performance - For the fiscal year 2021, Courage Investment Group Limited reported a revenue increase of 23% to $9,738,000, up from $7,920,000 in 2020[13] - The company achieved a profit attributable to owners of $10,488,000, compared to a loss of $3,470,000 in the previous year, marking a significant turnaround[13] - Basic earnings per share improved to $0.96, compared to a basic loss per share of $0.54 in 2020[13] - Total comprehensive income for the year was $12,122,000, a significant increase from a total comprehensive loss of $3,133,000 in the previous year[37] - The company reported a net profit attributable to shareholders of $10,488,000 for the fiscal year 2021, compared to a loss of $3,470,000 in 2020[37] Shipping Business - The shipping business contributed a profit of $3,938,000, an increase from $1,716,000 in 2020, driven by improved market conditions[13] - The shipping business achieved a revenue growth of 36% to $8,976,000, with profit increasing by 129% to $3,938,000, attributed to the recovery of major economies and increased demand for shipping services[20] - The Baltic Dry Index exceeded 5,600 points in October 2021, reaching a five-year high, indicating a favorable market outlook for shipping rates[14] - The overall market conditions for the shipping industry are expected to remain stable, with cautious optimism for the medium to long-term outlook[14] - The Baltic Dry Index, closely related to market freight rates, fluctuated significantly, reaching a low of approximately 1,300 points in February 2021 and exceeding 5,600 points in October 2021, indicating a favorable market outlook for the shipping business[20] Investment Strategy - Courage Investment Group Limited aims to explore potential investment and acquisition opportunities to enhance long-term benefits for the company[14] - The company plans to continue its strategy of acquiring a second-hand dry bulk carrier, despite significant price increases in the market during the fiscal year[14] - The group plans to continue its strategy of acquiring a second-hand dry bulk carrier, considering the current volatile market conditions for such vessels[22] - The estimated funding required for acquiring a second-hand ultra-flexible vessel ranges from $7,000,000 to $12,000,000, while the current market price for such vessels has increased to approximately $10,000,000 to $18,000,000, reflecting a 40%-50% increase from previous estimates[45] Financial Position - Current assets as of December 31, 2021, were $13,122,000, an increase from $11,740,000 in 2020[38] - The current ratio improved to approximately 2.44 from 1.58 in the previous year, primarily due to the reclassification of debt instruments to current assets[38] - The company's equity attributable to shareholders increased to $61,452,000, up by $11,912,000 from $49,540,000 in 2020[38] - The company's total borrowings were $9,786,000 as of December 31, 2021, down from $15,875,000 in 2020, resulting in a debt-to-equity ratio of approximately 16%[42] Risk Management - The group has identified significant risks, including economic risks related to the COVID-19 pandemic and the ongoing US-China trade disputes, which have caused substantial fluctuations in the Baltic Dry Index[58] - The board is responsible for assessing the company's risk tolerance and overseeing the risk management and internal control systems[153] - The group conducted an annual risk assessment to identify and manage significant strategic, financial, operational, and compliance risks[156] - The internal audit function was reviewed, and no significant weaknesses in internal controls or risk management were identified[157] Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the year ended December 31, 2021[123] - The board of directors has undergone changes, with several appointments and resignations noted during the year[93] - The company has adopted a dual leadership structure, separating the roles of the chairman and the CEO[133] - The chairman of the board is currently Mr. Su Ka Lok, while the CEO is Mr. Yuen Chi Lap[134] Employee and Customer Relations - Employee costs for the fiscal year 2021 amounted to $778,000, an increase from $416,000 in 2020, reflecting a growing workforce and rising compensation[54] - The company recognizes the importance of maintaining good relationships with employees, customers, and suppliers to achieve its business goals, with no major disputes reported in the fiscal year 2021[67] - The top five customers accounted for approximately 93.6% of total sales for the year, up from 89.3% in 2020, with the largest customer representing about 36.5%[92] Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report reviews the company's initiatives and performance in environmental protection and labor practices for the fiscal year ending December 31, 2021[172] - The company aims to reduce total greenhouse gas emissions intensity by 10% by 2026, using the fiscal year 2021 as the baseline[195] - The company has no direct greenhouse gas emissions as it does not own any vehicles and has leased out its three vessels for the entire fiscal year 2021[196] - The company emphasizes the importance of stakeholder engagement and maintains close communication with various stakeholders, including government, shareholders, employees, customers, suppliers, media, and the public[184]

Courage Investment Group Limited 勇利投資集團有限公司 | --- | --- | |----------------------------------------------------------|----------------------------------| | | | | | | | | Courage Investment Group Limited | | | | | 勇利投資集團有限公司 | | | | | | | | | (Incorporated in Bermuda with limited liability) | | | (Hong Kong Stock Code: 1145) (Singapore Stock Code: CIN) | | Interim Report Interim Report 2 021 中報 Courage Investment Group Limited 勇利投資集團有限公司 (香港股份代號: 1145) (新加坡股份代號: CIN) (於百慕達註冊成立之有限公司) 中期報告 目錄 公司資料 3 管理層討論及展望 4 ...

Financial Performance - For the fiscal year 2020, Courage Investment Group Limited reported a revenue decrease of 46% to $7,920,000, down from $14,708,000 in 2019[13]. - The group recorded a net loss attributable to shareholders of $3,470,000 for the fiscal year 2020, compared to a profit of $180,000 in 2019, resulting in a basic loss per share of 0.63 cents[13]. - The shipping business generated a profit of $1,716,000 in fiscal year 2020, down from $2,081,000 in 2019[13]. - The group recognized an impairment loss on vessels of $2,760,000 in 2020, significantly higher than the $247,000 recognized in 2019[13]. - The fair value of investment properties decreased by $1,167,000 in 2020, compared to an increase of $38,000 in 2019[13]. - Revenue from the group's commodity trading business decreased by 91% to $323,000 in 2020, down from $3,707,000 in 2019, with operating profit dropping 92% to $4,000[35]. - The investment property segment recorded a loss of $1,003,000, down from a profit of $30,000 in 2019, with revenue contribution of $186,000[28]. - The group reported a significant increase in current assets to $11,740,000 in 2020, up from $5,941,000 in 2019, leading to a current ratio of approximately 1.58, compared to 0.83 in the previous year[40]. - The group’s equity attributable to shareholders increased by $5,698,000 or 13% to $49,540,000 in 2020, mainly due to subscription amounts received from a public offering[40]. - The group incurred a loss of $45,000 from an associate in 2020, compared to a profit of $399,000 in 2019, primarily due to a decrease in fair value of an investment property[36]. Business Operations - The global economic slowdown due to COVID-19 significantly impacted international trade volumes and freight rates, adversely affecting the group's business[13]. - The group plans to explore potential acquisition opportunities in Hong Kong and China to diversify its business and enhance returns[22]. - The group aims to develop online training services for maritime crew, capitalizing on the growing demand due to COVID-19[22]. - The company is actively seeking suitable vessels to expand its shipping business as part of its corporate development strategy[14]. - The group’s top five customers accounted for approximately 89.3% of total sales for the year, up from 79.1% in 2019, with the largest customer representing about 57.4% of total sales, compared to 20.6% in 2019[80]. - The group’s top five suppliers accounted for approximately 50.6% of total procurement for the year, down from 64.0% in 2019, with the largest supplier representing about 34.3%, compared to 25.1% in 2019[80]. Capital and Financing - In November 2020, the company completed a capital reorganization and raised approximately HKD 71,350,000 (about $9,150,000) through a public offering[14]. - The net proceeds from the public offering were approximately HKD 67,240,000 (about $8,620,000), with HKD 22,000,000 (about $2,820,000) allocated to repay bank loans[14]. - The remaining net proceeds of approximately HKD 45,240,000 (about $5,800,000) are intended for the acquisition of a second-hand super handymax vessel[14]. - The group’s borrowings decreased to $15,875,000 in 2020 from $19,143,000 in 2019, resulting in a debt-to-equity ratio of approximately 32% compared to 44% in the previous year[44]. Risk Management - The group faced significant risks from the COVID-19 pandemic and ongoing US-China trade disputes, affecting the shipping industry[52]. - The group identified financial risks related to foreign currency, interest rates, and liquidity during its operations[56]. - The company has established a risk management and internal control system in place to manage risks associated with achieving business objectives[139]. - The board has conducted an annual risk assessment to identify and manage significant strategic, operational, financial, and compliance risks[143]. Corporate Governance - The company emphasizes high standards of corporate governance to benefit shareholders[109]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors[112]. - The company has adopted a specific code of conduct for directors' securities transactions, ensuring compliance with regulations[111]. - The company has established a compensation policy based on employee capabilities, performance, experience, and current market conditions[100]. - The company emphasizes the importance of board diversity, considering skills, industry experience, and other factors in board composition[125]. Environmental, Social, and Governance (ESG) - The total greenhouse gas emissions decreased by approximately 34.54% from about 12.19tCO2e in the fiscal year 2019 to about 7.98tCO2e in the fiscal year 2020, primarily due to the implementation of various environmental measures and reduced business travel during the COVID-19 pandemic[183]. - The company emphasizes the importance of sustainable business practices and continuously improves existing policies to mitigate potential negative environmental impacts[178]. - The company actively collects and analyzes environmental, social, and governance data to identify and manage related issues[167]. - The company aims to improve its environmental, social, and governance performance by listening to stakeholder feedback and collaborating with them[167]. - The company has established effective management policies and internal controls regarding environmental, social, and governance matters for the fiscal year 2020[174]. Employee and Workforce - Employee costs for the fiscal year 2020 were $416,000, unchanged from 2019, with a total of 15 employees[51]. - The company employed 15 employees as of December 31, 2020, compared to 13 employees in 2019, indicating a growth in workforce[189]. - The company’s employee expenses for crew services amounted to $1,665,000 in 2020, a decrease from $1,714,000 in 2019[51]. Compliance and Legal - The company maintained compliance with relevant laws and regulations, with no significant violations reported during the fiscal year[57]. - The company reported no significant violations of relevant laws and regulations that would have a major impact, including the Air Pollution Control Ordinance, Waste Disposal Ordinance, and Water Pollution Control Ordinance in Hong Kong[178].

Financial Performance - For the first half of 2020, Courage Investment Group reported a revenue decrease of 42% to $4,360,000 compared to the same period in 2019[10]. - The group recorded a loss attributable to shareholders of $1,307,000, with a basic loss per share of 0.24 cents[10]. - The group recorded a loss attributable to owners of $1,307,000 for the period, compared to a profit of $269,000 in the same period last year, indicating a significant decline in performance[32]. - Revenue from the commodity trading business decreased by 82% to $323,000, down from $1,792,000 in the previous year, primarily due to the impact of COVID-19 and the US-China trade dispute[30]. - For the six months ended June 30, 2020, total revenue decreased to $4,360,000 from $7,460,000 in the same period of 2019, representing a decline of approximately 41.1%[48]. - The company reported a net loss attributable to shareholders of $1,307,000 for the period, compared to a profit of $269,000 in the previous year[48]. - The company’s cash flow from operating activities was $898 million for the first half of 2020, compared to $1,597 million in the same period of 2019, indicating a decrease of about 43.8%[61]. Revenue Breakdown - The shipping segment experienced a 34% decline in revenue to $3,537,000, while profit increased by 22% to $1,110,000[11]. - Shipping revenue fell to $3,537,000, down 33.7% from $5,336,000 year-on-year[48]. - Revenue from customer contracts was $3,138,000 for the six months ended June 30, 2020, compared to $4,629,000 in 2019, indicating a decrease of about 32.2%[82]. Asset Valuation - The fair value of investment properties decreased by $1,141,000, contributing to the overall loss[10]. - The fair value of investment properties decreased by $(1,141,000) for the six months ended June 30, 2020, compared to an increase of $590,000 in the same period of 2019[82]. - The fair value of financial assets classified as fair value through profit or loss was $1,123,000 at the end of the period, down from $1,861,000 as of December 31, 2019[16]. - The fair value of debt instruments classified as fair value through other comprehensive income decreased by a net amount of $228,000 in the first half of 2020, compared to an increase of $543,000 in the same period of 2019[17]. - The fair value of listed debt securities was $10,151,000 as of June 30, 2020, up from $9,978,000 as of December 31, 2019[96]. Liabilities and Equity - The group's total liabilities as of June 30, 2020, amounted to $17,509,000, a decrease from $19,143,000 at the end of the previous year, reflecting a reduction in borrowing[37]. - The group's current ratio was approximately 0.46 as of June 30, 2020, down from 0.83 at the end of the previous year, indicating a decline in liquidity[34]. - The group’s equity attributable to owners decreased by $1,603,000 or 4% to $42,239,000 as of June 30, 2020, primarily due to the recorded loss during the period[35]. - The company’s total liabilities and equity amounted to $61,314 million as of June 30, 2020, down from $64,770 million at the end of 2019, a decrease of about 5.7%[54]. Operational Adjustments - The company suspended its chartering business in February 2020 due to market conditions affected by COVID-19[11]. - The company plans to cautiously consider purchasing a second-hand super handymax bulk carrier to expand its fleet capacity[12]. - The company has sufficient operating funds to meet its financial obligations in the foreseeable future[68]. - Employee costs for the first half of 2020 were $170,000, down from $214,000 in the same period of 2019, reflecting a reduction of approximately 20.5%[45]. Investment Strategy - The company continues to invest in listed equity securities and corporate bonds, targeting bonds with attractive yields and low default risk[15]. - The investment strategy focuses on selecting stocks with strong appreciation potential and/or high-quality dividend yields[15]. - The company aims to enhance its investment portfolio by focusing on high-quality assets and expanding into promising markets[19]. Market Conditions - The Baltic Dry Index showed significant volatility, dropping to around 400 points in May 2020 and rebounding to nearly 1,800 points in June 2020[12]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations, with no reliable estimate of the potential adverse effects at this time[120]. - The company maintains a cautious optimism regarding the medium to long-term outlook for the shipping industry as major economies, including China, gradually recover[46]. Corporate Governance - The company confirmed compliance with the corporate governance code as per the Hong Kong Listing Rules during the six months ended June 30, 2020[136]. - The audit committee reviewed the unaudited financial statements, which were formally approved by the board[139].

[Chairman's Report](index=5&type=section&id=Chairman%27s%20Report) [Performance and Outlook](index=5&type=section&id=Performance%20and%20Outlook) In FY2019, despite US-China trade tensions, the Group achieved profitability, with total revenue growing 21% year-on-year, primarily driven by shipping business growth and the newly acquired MV Polyworld; however, profit attributable to owners decreased due to vessel impairment losses, and looking ahead, the global COVID-19 outbreak presents challenges to the shipping industry, prompting the Group to manage its business with prudence and continue seeking investment opportunities to expand its fleet | Metric | 2019 (USD) | 2018 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 14,708,000 | 12,191,000 | +21% | | Profit attributable to owners | 180,000 | 1,251,000 | -85.6% | | Total comprehensive income | 758,000 | (103,000) | Turnaround to profit | | Basic earnings per share | 0.03 US cents | 0.25 US cents | -88% | - The decrease in profit was primarily due to a net vessel impairment loss of **$0.247 million USD** recorded this year, compared to a reversal of vessel impairment loss of **$4.257 million USD** in the prior year[14](index=14&type=chunk) - The Group completed the acquisition of MV Polyworld, a Supramax dry bulk vessel with a carrying capacity of approximately **57,000 DWT**, in February 2019, increasing its total owned vessel carrying capacity to approximately **171,000 DWT**, aligning with the Group's strategy to expand its shipping business scale[13](index=13&type=chunk) - Looking ahead, while US-China trade tensions have eased, the global COVID-19 outbreak will hinder international trade volumes, adversely affecting the Group's operations; the Group will continue to cautiously seek investment opportunities and plans to acquire another dry bulk vessel[15](index=15&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=6&type=section&id=Business%20Review) In FY2019, the Group's core businesses included shipping, property holding and investment, investment holding, and commodity trading, with total revenue increasing 21% to **$14.708 million USD**, though profit attributable to owners decreased to **$0.18 million USD**; shipping business was the primary growth driver, while investment holding turned profitable, and contributions from property investment and commodity trading declined [Shipping](index=6&type=section&id=Shipping) The shipping business achieved significant progress in FY2019, with revenue increasing 72% to **$10.111 million USD** and profit growing 121% to **$2.081 million USD**, driven by the commencement of charter-in/out activities, the acquisition of MV Polyworld, and improved charter rates for owned vessels; despite extreme volatility in the Baltic Dry Index and new uncertainties from the COVID-19 pandemic, the Group remains cautiously optimistic about the business's medium to long-term prospects | Metric | 2019 (USD) | 2018 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 10,111,000 | 5,886,000 | +72% | | Profit | 2,081,000 | 942,000 | +121% | - Performance growth was attributed to: (i) the commencement of charter-in/out business; (ii) the completion of MV Polyworld acquisition in February 2019; and (iii) higher charter rates for owned vessels[20](index=20&type=chunk) - Due to unfavorable market conditions, the Group has temporarily suspended its charter-in/out business and plans to resume it when the market improves[20](index=20&type=chunk) - The Baltic Dry Index experienced extreme volatility during the year, ranging from below **600 points** to above **2,500 points**, increasing market uncertainty[21](index=21&type=chunk) [Property Holding and Investment](index=7&type=section&id=Property%20Holding%20and%20Investment) The property holding and investment business recorded a profit of **$0.03 million USD** and contributed revenue of **$0.063 million USD**, with the revenue decrease primarily due to an office unit in Shun Tak Centre, Hong Kong, being vacant for several months following the early termination of an old lease; the investment property recognized a revaluation gain of **$0.038 million USD** at year-end | Metric | 2019 (USD) | 2018 (USD) | | :--- | :--- | :--- | | Profit | 30,000 | 1,739,000 | | Revenue | 63,000 | 273,000 | | Revaluation gain | 38,000 | 1,432,000 | [Investment Holding](index=7&type=section&id=Investment%20Holding) The investment holding business turned profitable in FY2019, recording a profit of **$0.383 million USD** on revenue of **$0.827 million USD**, primarily from corporate bond interest and listed equity dividends; the business profit was mainly contributed by **$0.692 million USD** in bond interest income, partially offset by **$0.456 million USD** in unrealized losses on listed equity securities, while debt instruments measured at fair value through other comprehensive income saw a net increase of **$0.576 million USD** due to general interest rate reductions | Metric | 2019 (USD) | 2018 (USD) | | :--- | :--- | :--- | | Revenue | 827,000 | 784,000 | | Profit/(Loss) | 383,000 | (3,809,000) | - Business revenue included **$0.692 million USD** in corporate bond interest income and **$0.135 million USD** in equity securities dividend income[26](index=26&type=chunk) - Business profit was impacted by **$0.456 million USD** in unrealized losses on listed equity securities (compared to **$3.87 million USD** in the prior year)[26](index=26&type=chunk) - The fair value of the Group's debt instruments (primarily real estate company bonds) increased by a net of **$0.576 million USD**, mainly due to general interest rate reductions[27](index=27&type=chunk)[37](index=37&type=chunk) [Commodity Trading](index=9&type=section&id=Commodity%20Trading) The commodity trading business, primarily involving infant and personal care products and electronic components, experienced a 29% decline in revenue to **$3.707 million USD** and a 28% decrease in operating profit to **$0.051 million USD** in FY2019, with the performance decline partly attributed to a general slowdown in the electronics industry caused by US-China trade disputes | Metric | 2019 (USD) | 2018 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 3,707,000 | 5,248,000 | -29% | | Operating profit | 51,000 | 71,000 | -28% | [Financial Review](index=10&type=section&id=Financial%20Review) As of end-2019, the Group's financial position was robust, with owners' equity growing 2% to **$43.842 million USD**; to support business expansion, particularly the acquisition of MV Polyworld, the Group secured new loans of **$12.908 million USD**, increasing total borrowings to **$19.143 million USD** and the gearing ratio from 33% to 44%; despite a current ratio of 0.83, the adjusted current ratio was 1.38 when excluding a demand loan, and management believes the Group possesses sufficient financial resources for ongoing operations | Metric | December 31, 2019 (USD) | December 31, 2018 (USD) | | :--- | :--- | :--- | | Current assets | 5,941,000 | 10,914,000 | | Current liabilities | 7,139,000 | 10,956,000 | | Current ratio | 0.83 | 1.00 | | Owners' equity | 43,842,000 | 43,084,000 | | Total borrowings | 19,143,000 | 14,417,000 | | Gearing ratio | 44% | 33% | - New loans of **$12.908 million USD** were obtained during the year, primarily for the acquisition of MV Polyworld and working capital; simultaneously, **$8.182 million USD** in loans were repaid[45](index=45&type=chunk) - Finance costs increased **44%** year-on-year to **$1.171 million USD**, mainly due to new loans for MV Polyworld and rising floating interest rates[49](index=49&type=chunk) - At year-end, the Group pledged three vessels, an investment property, and certain debt instruments, with a total book value of approximately **$52.1 million USD**, to banks and financial institutions to secure loan facilities[54](index=54&type=chunk) [Risk Factors](index=13&type=section&id=Risk%20Factors) The Group faces multiple significant risks, including economic risks where the shipping business is affected by Baltic Dry Index volatility, property investment by the Hong Kong real estate market, and investment holding by global economic conditions; market risks stem from intense competition across all business segments; additionally, the Group must manage financial risks (interest rate, credit), environmental risks (e.g., shipping accidents), customer concentration risk, and supply chain disruption risks - Economic risks: The shipping business is affected by the volatility of the Baltic Dry Index; the property investment business is influenced by the performance of the Hong Kong real estate market; and the investment holding business is impacted by global macroeconomic and financial market conditions[60](index=60&type=chunk)[61](index=61&type=chunk) - Market risks: The dry bulk shipping, property leasing, and commodity trading markets are highly competitive, which could exert pressure on revenue and profitability[61](index=61&type=chunk) - Other major risks include: financial risks (foreign currency, interest rate, securities price, credit, and liquidity), environmental risks (oil spills, collisions, etc.), customer concentration risk, and supply chain risk[63](index=63&type=chunk) [Directors' and Senior Management's Biographies](index=15&type=section&id=Directors%27%20and%20Senior%20Management%27s%20Biographies) [Directors' and Senior Management's Background](index=15&type=section&id=Directors%27%20and%20Senior%20Management%27s%20Background) This section provides detailed background information on the company's directors and senior management, including non-executive directors, executive directors, independent non-executive directors, and the Chief Executive Officer, covering their age, educational qualifications, professional credentials, industry experience, and positions held in other listed companies - Mr. Su Ka Lok, Non-executive Director and Chairman, possesses extensive experience in corporate management, finance, and accounting, and serves as a director in several Hong Kong listed companies[69](index=69&type=chunk) - Ms. Wang Yu, Executive Director and Company Secretary, holds master's degrees in business administration and corporate governance, with experience in the logistics industry and corporate administration[70](index=70&type=chunk) - Independent Non-executive Directors Mr. Chow Kai King, Mr. Bau Siu Ming, and Mr. Cho Hoi Ho possess rich experience in real estate investment, banking and finance, and auditing and corporate finance, respectively[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - Mr. Yuen Tsz Lap, Chief Executive Officer and Financial Controller, holds a Master of Business Administration degree and has extensive finance and accounting experience in the United States and Hong Kong[76](index=76&type=chunk) [Directors' Report](index=17&type=section&id=Directors%27%20Report) [Business and Financial Status](index=17&type=section&id=Business%20and%20Financial%20Status) This report outlines the Group's status for the financial year ended December 31, 2019, where the company's principal business is investment holding, and the Board resolved not to declare a final dividend; changes in property, plant and equipment and investment properties are detailed in the financial statements notes, and as of year-end, the company had accumulated losses with no distributable reserves - The Company is an investment holding company, with its subsidiaries engaged in shipping, property investment, investment holding, and commodity trading[79](index=79&type=chunk) - The Board resolved not to declare a final dividend for the year ended December 31, 2019[79](index=79&type=chunk) - As of December 31, 2019, the Company had accumulated losses of **$33.802 million USD**, with no reserves available for distribution[83](index=83&type=chunk) [Major Suppliers and Customers](index=18&type=section&id=Major%20Suppliers%20and%20Customers) In FY2019, the Group experienced high customer and supplier concentration, with the top five customers accounting for **79.1%** of total sales and the largest customer for **20.6%**, while the top five suppliers accounted for **64.0%** of total purchases and the largest supplier for **25.1%**; company directors, their associates, or major shareholders held no material interests in these key customers or suppliers | Concentration Metric | 2019 | 2018 | | :--- | :--- | :--- | | Top 5 customers % of total sales | 79.1% | 61.0% | | Largest customer % of total sales | 20.6% | 15.4% | | Top 5 suppliers % of total purchases | 64.0% | 86.1% | | Largest supplier % of total purchases | 25.1% | 28.5% | [Directors and Interests](index=18&type=section&id=Directors%20and%20Interests) During the reporting period, the Board experienced personnel changes, including the resignation of two executive directors, the passing of one independent non-executive director, and the appointment of a new independent non-executive director; as of year-end, directors and the chief executive held no share interests in the company or its associated corporations, while major shareholder Mr. Sun Cho Hung held **28.79%** of the company's shares through his controlled corporations - Board changes during the year included: Executive Directors Mr. Cheung Leung and Ms. Wan Jia resigned, Independent Non-executive Director Mr. To Yan Ming passed away, and Mr. Cho Hoi Ho was appointed as a new Independent Non-executive Director[84](index=84&type=chunk) - As of December 31, 2019, directors and the chief executive had no disclosable interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations[92](index=92&type=chunk) - Major shareholder Mr. Sun Cho Hung, through his wholly-owned Brilliant Epic Asia Limited and its subsidiary Prosperous Link Development Limited, beneficially held **157,995,066 shares**, representing **28.79%** of the issued share capital[98](index=98&type=chunk) [Corporate Governance Report](index=22&type=section&id=Corporate%20Governance%20Report) [Governance Structure and Compliance](index=22&type=section&id=Governance%20Structure%20and%20Compliance) As of end-2019, the company largely complied with the Corporate Governance Code, with one deviation regarding the disclosure of reasons for an independent non-executive director holding too many listed company directorships; the Board, composed of five directors, maintains a balanced structure and has adopted a standard code for directors' securities transactions, with the roles of Chairman and Chief Executive Officer separated and held by Mr. Su Ka Lok and Mr. Yuen Tsz Lap respectively, ensuring checks and balances - The Company complied with all applicable Code Provisions of the Corporate Governance Code, except for Code Provision A.5.5(2), which requires detailed explanation in the circular why Mr. To Yan Ming, holding directorships in over seven listed companies, was still considered to devote sufficient time[110](index=110&type=chunk)[111](index=111&type=chunk) - The Board comprises five directors: one non-executive director (Chairman), one executive director, and three independent non-executive directors, meeting Listing Rules requirements for board composition and independence[116](index=116&type=chunk) - The roles of Chairman (Mr. Su Ka Lok) and Chief Executive Officer (Mr. Yuen Tsz Lap) are separate, in line with Corporate Governance Code recommendations[120](index=120&type=chunk)[121](index=121&type=chunk) [Board Committees](index=25&type=section&id=Board%20Committees) The company established three core committees—Remuneration, Nomination, and Audit—all predominantly or entirely composed of independent non-executive directors who also serve as chairs; the Remuneration Committee is responsible for setting compensation policies, the Nomination Committee for director nominations and board diversity review, and the Audit Committee for overseeing financial reporting, risk management, and internal controls, with all committees holding meetings during the year to fulfill their duties - The Remuneration Committee comprises three independent non-executive directors, responsible for setting remuneration policies and reviewing directors' remuneration[125](index=125&type=chunk) - The Nomination Committee comprises three independent non-executive directors and one non-executive director, responsible for director nominations, and has adopted and reviewed the Board Diversity Policy[126](index=126&type=chunk)[131](index=131&type=chunk) - The Audit Committee comprises three independent non-executive directors, responsible for reviewing financial statements, discussing risk management and internal controls, and communicating with auditors[135](index=135&type=chunk) - During the year, the Audit Committee reviewed annual and interim financial statements, discussed accounting policies, and assessed the effectiveness of risk management and internal control systems[139](index=139&type=chunk) [Risk Management and Internal Control](index=29&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board holds ultimate responsibility for the Group's risk management and internal control systems; despite not establishing an internal audit function, the Group engaged an independent outsourced internal auditor to assist with annual reviews covering financial, operational, and compliance controls; the 2019 review found no significant internal control or risk management weaknesses, and the Board considers the existing systems adequate and effective - The Board is ultimately responsible for risk management and internal control systems, reviewing their adequacy and effectiveness annually[144](index=144&type=chunk) - The Group did not establish an internal audit function for cost-effectiveness but engaged an independent outsourced internal auditor (Roma Risk Advisory Limited) to assist with annual reviews[144](index=144&type=chunk) - The 2019 review covered significant controls at corporate and operational levels, and the Board and Audit Committee believe the Group maintained adequate and effective risk management and internal control systems[145](index=145&type=chunk)[146](index=146&type=chunk) [Environmental, Social and Governance Report](index=32&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [A. Environmental](index=35&type=section&id=A.%20Environmental) In environmental aspects, the Group is committed to sustainable development and complies with relevant environmental regulations; during the reporting period, greenhouse gas emissions primarily originated from purchased electricity, business travel, and office paper, and the Group manages emissions and resource use through energy conservation, reduced business travel, and environmentally friendly office practices; due to the nature of its business, the Group has no significant gas emissions, hazardous waste, or water usage issues | Greenhouse Gas Emissions (tCO2e) | FY2019 | | :--- | :--- | | Scope 1 (Direct) | – | | Scope 2 (Indirect - Electricity) | 8.72 | | Scope 3 (Other Indirect) | 3.47 | | **Total** | **12.19** | | Total Intensity (tCO2e/employee) | 0.94 | | Resource Consumption | FY2019 | | :--- | :--- | | Non-hazardous waste (office paper) | 0.306 tonnes | | Total energy consumption (electricity) | 10,901.00 kWh | - The Group actively promotes waste management and energy saving through measures such as double-sided printing, paper recycling, purchasing energy-efficient equipment, and turning off unnecessary lighting and electrical appliances[194](index=194&type=chunk)[198](index=198&type=chunk) [B. Social](index=39&type=section&id=B.%20Social) In terms of social responsibility, the Group values human resources, striving to provide an equal opportunity, diverse, and anti-discriminatory work environment, while offering necessary training and development opportunities to employees; the Group strictly adheres to labor standards, prohibiting child and forced labor, and in its operations, prioritizes occupational health and safety, establishing comprehensive safety management systems, especially in the shipping business; furthermore, the Group has implemented supply chain management, product quality assurance, customer privacy protection, and anti-corruption mechanisms to ensure compliance and ethical operations - Employment: The Group is committed to providing equal opportunities, with compensation and promotion based on skills and performance; as of year-end, the Group's headquarters had **13 employees**[211](index=211&type=chunk)[226](index=226&type=chunk) - Health and Safety: The Group has established comprehensive health and safety policies for both office and shipping operations; the shipping business has robust safety management systems and emergency plans, with no related accidents reported during the year[230](index=230&type=chunk)[231](index=231&type=chunk) - Labor Standards: Strictly prohibits the recruitment of child labor and forced labor, verifying candidates' personal information during the recruitment process[235](index=235&type=chunk) - Supply Chain Management: Suppliers are selected based on technology, price, delivery time, and reputation, and undergo annual performance evaluations[236](index=236&type=chunk) - Anti-corruption: The Group maintains a zero-tolerance policy towards corruption, has formulated a Code of Conduct, and established a whistleblowing system[247](index=247&type=chunk)[248](index=248&type=chunk) [Independent Auditor's Report](index=45&type=section&id=Independent%20Auditor%27s%20Report) [Audit Opinion and Key Audit Matters](index=45&type=section&id=Audit%20Opinion%20and%20Key%20Audit%20Matters) Deloitte Touche Tohmatsu issued an unmodified opinion on the Group's consolidated financial statements for the year ended December 31, 2019, affirming that the statements present a true and fair view of the Group's financial position and performance; key audit matters included the assessment of "Net impairment loss on vessels" and "Valuation of investment properties," both involving significant management judgment and estimation - Audit Opinion: The auditor believes the consolidated financial statements truly and fairly reflect the Group's financial position and performance in accordance with International Financial Reporting Standards and comply with the disclosure requirements of the Hong Kong Companies Ordinance[254](index=254&type=chunk) - Key Audit Matter One: Net impairment loss on vessels; due to the significant balance and the substantial management judgment involved in its assessment, the auditor evaluated management's methodology, the relevance of key input data, and the reasonableness of estimates[259](index=259&type=chunk)[260](index=260&type=chunk) - Key Audit Matter Two: Valuation of investment properties; given the materiality of the balance to the overall financial statements and the significant judgment required for fair value determination, the auditor assessed the valuer's competence, the appropriateness of valuation methods, and the reasonableness of key assumptions used[263](index=263&type=chunk) [Consolidated Financial Statements](index=51&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=51&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In FY2019, the Group's total revenue was **$14.708 million USD**, a 21% year-on-year increase; however, profit before tax significantly decreased to **$0.18 million USD** due to a recorded vessel impairment loss, with profit attributable to owners also at **$0.18 million USD**; after accounting for factors like fair value changes of debt instruments, total comprehensive income for the year was **$0.758 million USD**, a notable improvement from the prior year's total comprehensive expense of **$0.103 million USD** | Item (USD '000) | 2019 | 2018 | | :--- | :--- | :--- | | Total revenue | 14,708 | 12,191 | | Profit before tax | 180 | 1,252 | | Profit for the year attributable to owners | 180 | 1,251 | | Total comprehensive income (expense) for the year attributable to owners | 758 | (103) | [Consolidated Statement of Financial Position](index=52&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2019, the Group's total assets were **$64.77 million USD**, a 9.6% increase from the previous year-end, primarily due to an increase in property, plant and equipment (vessels); total liabilities rose to **$20.928 million USD**, mainly driven by increased borrowings, while total equity slightly increased to **$43.842 million USD**; notably, the Group was in a net current liability position at year-end, with current liabilities exceeding current assets | Item (USD '000) | December 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Non-current assets | 58,829 | 48,204 | | Current assets | 5,941 | 10,914 | | **Total assets** | **64,770** | **59,118** | | Current liabilities | 7,139 | 10,956 | | Non-current liabilities | 13,789 | 5,078 | | **Total liabilities** | **20,928** | **16,034** | | **Total equity** | **43,842** | **43,084** | [Consolidated Statement of Cash Flows](index=56&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In FY2019, the Group generated net cash of **$3.844 million USD** from operating activities, a significant improvement from the prior year; net cash used in investing activities amounted to **$10.985 million USD**, primarily for the acquisition of property, plant and equipment (vessels); financing activities generated net cash of **$4.726 million USD**, mainly from new borrowings; the combined effect resulted in a decrease in cash and cash equivalents to **$1.951 million USD** at year-end | Item (USD '000) | 2019 | 2018 | | :--- | :--- | :--- | | Net cash generated from operating activities | 3,844 | 285 | | Net cash used in investing activities | (10,985) | (1,484) | | Net cash generated from financing activities | 4,726 | 2,739 | | Net (decrease) increase in cash and cash equivalents | (2,415) | 1,540 | | Cash and cash equivalents at end of year | 1,951 | 4,284 | [Notes to the Consolidated Financial Statements (Selected)](index=58&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements%20%28Selected%29) The financial statement notes provide detailed explanations, including that despite the Group's net current liability position at year-end, directors believe there is sufficient working capital for ongoing operations; revenue is disaggregated by business type, with shipping and commodity trading as primary sources; segment information indicates shipping as the largest asset and profit contributor; vessel assets recorded a net impairment loss; total borrowings significantly increased with corresponding asset pledges; and the financial instruments section elaborates on the Group's market, credit, and liquidity risks and their management strategies - Note 2: Despite the Group having a net current liability of **$1.198 million USD** at year-end, the directors believe the Group can repay maturing liabilities with working capital and proceeds from the sale of financial assets, thus the financial statements are prepared on a going concern basis[302](index=302&type=chunk) - Note 7: Segment results show that the shipping business contributed **$2.081 million USD** in operating profit, making it the Group's primary source of profit; the investment holding business turned profitable, contributing **$0.383 million USD** in profit[433](index=433&type=chunk) - Note 16: During the year, the Group's vessel assets recognized a net impairment loss of **$0.247 million USD**, compared to a reversal of impairment loss of **$4.257 million USD** in the prior year, which was one of the major factors affecting annual profit[477](index=477&type=chunk)[481](index=481&type=chunk) - Notes 29 & 35: Total Group borrowings amounted to **$19.143 million USD**, secured by three vessels, an investment property, and certain debt instruments[513](index=513&type=chunk)[536](index=536&type=chunk) - Note 39: The major financial risks faced by the Group include interest rate risk (from floating-rate borrowings), price risk (from investments in listed equity and debt securities), and liquidity risk; sensitivity analysis indicates that a **100 basis point** change in interest rates would impact annual profit by approximately **$0.191 million USD**[545](index=545&type=chunk)[550](index=550&type=chunk)[553](index=553&type=chunk) [Five-Year Financial Summary](index=109&type=section&id=Five-Year%20Financial%20Summary) [Financial Trends](index=109&type=section&id=Financial%20Trends) This section provides a summary of the Group's key financial data over the past five years, showing that the Group's revenue reached a five-year high of **$14.708 million USD** in 2019; despite achieving profitability in 2019, the profit level significantly decreased from 2018, while total assets and total equity have continuously grown over the past two years | Item (USD '000) | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Performance** | | | | | | | Revenue | 14,708 | 12,191 | 9,897 | 4,546 | 6,663 | | Profit (Loss) for the year | 180 | 1,251 | 9,885 | (17,766) | (36,843) | | **Assets and Liabilities** | | | | | | | Total assets | 64,770 | 59,118 | 56,713 | 37,265 | 59,026 | | Total liabilities | (20,928) | (16,034) | (18,956) | (21,962) | (26,499) | | Equity attributable to owners of the Company | 43,842 | 43,084 | 37,757 | 15,303 | 32,527 |