Financial Performance - For the year ended December 31, 2021, the Group's revenue increased by 17.7% to HK$79.1 million compared to HK$67.2 million for the year ended December 31, 2020[12]. - The Group reported a loss of HK$38.3 million for the year ended December 31, 2021, an improvement from a loss of HK$83.4 million in 2020[12]. - The gross profit for the year ended December 31, 2021, was HK$40.4 million, significantly up from HK$11.3 million in 2020[12]. - The Group recorded a gain on disposal of subsidiaries amounting to HK$15.0 million for the year ended December 31, 2021, compared to HK$55.7 million in 2020[12]. - The securities trading segment achieved a profit of HK$0.1 million for the year ended December 31, 2021, recovering from a segment loss of HK$0.1 million in 2020[18]. - Hotel business revenue increased by 17.7% to HK$79.1 million for the year ended December 31, 2021, compared to HK$67.2 million for the previous year[19]. Occupancy and Operations - The average occupancy rate of the Group's hotels decreased by 13.6% to 24.4% for the year ended December 31, 2021, down from 38.0% in 2020[17]. - Administrative and other operating expenses were HK$84.7 million for the year ended December 31, 2021, compared to HK$78.5 million in 2020[12]. - The average occupancy rate decreased by 13.6% to 24.4% for the year ended December 31, 2021, down from 38.0% the previous year[19]. Financial Position - The Group's cash and bank balances and investments held for trading amounted to HK$1,782.7 million as of December 31, 2021, compared to HK$1,813.5 million the previous year[23]. - Current assets and current liabilities were HK$1,853.6 million and HK$88.3 million, respectively, resulting in a current ratio of 21.0 as of December 31, 2021[24]. - The gearing ratio as of December 31, 2021, was 1.2%, unchanged from the previous year[24]. Future Outlook - The Company expects international travel to resume normal in 2024 due to high vaccination rates and community immunity[43]. - The Group plans to seek further high-quality hotel investment opportunities and explore other high-growth business segments, including commercial and residential property development projects in the PRC[43]. - The PRC's GDP grew by approximately 8.1% in 2021, indicating a strong economic recovery that may benefit the Group's operations[8]. - Approximately 128 million people entered/exited through immigration clearance in the PRC during 2021, reflecting a decrease of only 3% year-on-year, which may impact the hospitality sector positively in the future[8]. Leadership and Governance - The company has a strong leadership team with diverse backgrounds in finance, real estate, and technology[56]. - Mr. Tam Chung Sun has over 30 years of experience in real estate development and hotel operations, and has been the Chairman since October 2020[46]. - Mr. Lai Tsz Wah has been the managing director since May 2019, with more than 30 years of experience in auditing, accounting, and finance[47]. - The board includes a mix of executive and independent non-executive directors to ensure effective governance[58]. - The company is focused on expanding its market presence and enhancing operational management through strategic appointments[61]. Corporate Governance - The Company complies with the Corporate Governance Code, with minor exceptions explained in the report[73]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors[78]. - The Company has established various committees, including the audit committee, remuneration committee, nomination committee, and corporate governance committee, to oversee specific aspects of its affairs[80]. - The Company has established a Nomination Committee comprising two INEDs and one Executive Director to guide the nomination process[129]. - The Company has purchased appropriate directors and officers liability insurance to protect against legal actions arising from the performance of their duties[90]. Audit and Risk Management - The independent auditor issued a qualified opinion on the consolidated financial statements for the year ended December 31, 2021, due to insufficient financial information regarding the investment in 翹豐發展[174][178]. - The Audit Committee held five meetings during the year to review financial reporting matters, including the annual results for the year ended December 31, 2020, and the interim results for the six months ended June 30, 2021[112]. - The Company has outsourced its internal control audit function to an independent accounting firm to review key internal controls based on operational, financial, and compliance risks[167]. - The independent accounting firm reported no significant control failings or weaknesses during the year, ensuring an adequate internal control system is maintained[168]. - The Audit Committee is satisfied with the effectiveness and adequacy of the internal control audit function, confirming it is adequately resourced[169]. Shareholder Communication - The company maintains ongoing communication with shareholders through financial reports, announcements, and general meetings[195]. - Shareholders are encouraged to participate in meetings and can appoint proxies if unable to attend[196]. - The company emphasizes the importance of shareholder communication and has established formal channels for this purpose[199]. - The company’s website provides additional information regarding its operations and financial performance[200].

Financial Reporting - The company plans to release its audited annual results for the year ending December 31, 2021, by April 29, 2022, or earlier[3] - The announcement indicates a delay in publishing the audited annual results due to reasons outlined in the previous announcement[3] Investor Caution - The company emphasizes the importance of shareholders and potential investors exercising caution when trading its securities[5]

Financial Performance - Total revenue for the six months ended June 30, 2021, was HK$33,918,000, a decrease of 3.9% from HK$35,310,000 in the same period of 2020[6] - Gross profit increased to HK$21,650,000, up 13.4% from HK$19,072,000 year-on-year[6] - Loss for the period was HK$30,803,000, compared to a loss of HK$1,952,000 in the same period of 2020[6] - Total comprehensive expense for the period was HK$28,557,000, significantly higher than HK$1,738,000 in the previous year[7] - Basic loss per share for the period was HK$0.04, compared to HK$0.00 in the same period of 2020[7] - The company reported a fair value loss on investment properties of HK$18,093,000 for the period[6] - The company reported a total comprehensive expense of HK$74,758,000 for the period ended June 30, 2020, which included a loss of HK$1,372,000[16] - The company reported a loss for the period of HK$27,792,000 for the six months ended December 31, 2020, compared to a loss of HK$1,372,000 for the same period in 2020[16] Assets and Liabilities - Non-current assets increased to HK$293,001,000 as of June 30, 2021, compared to HK$269,605,000 at the end of 2020[10] - Current assets totaled HK$1,834,818,000, slightly down from HK$1,850,449,000 at the end of 2020[10] - Net assets decreased to HK$1,978,887,000 from HK$2,015,808,000 at the end of 2020[11] - The company’s total assets as of June 30, 2021, were HK$1,978,887,000, reflecting a decrease from HK$2,023,121,000 at the end of the previous reporting period[16] - The company’s total liabilities increased, with lease liabilities repayment amounting to HK$1,959,000 during the financing activities[16] Cash Flow and Investments - The company’s cash and bank balances stood at HK$1,765,995,000 as of June 30, 2021, down from HK$1,813,337,000 at the end of 2020[10] - For the six months ended June 30, 2021, the net cash used in operating activities was HK$44,864,000, compared to HK$15,635,000 for the same period in 2020, indicating a significant increase in cash outflow[16] - The company experienced a net decrease in cash and cash equivalents of HK$44,880,000 for the six months ended June 30, 2021, compared to HK$25,716,000 in the same period of 2020[16] - The company’s cash and cash equivalents amounted to HK$1,765,995,000, a decrease from HK$1,788,470,000 at the same date in 2020[16] - Interest received during the first half of 2021 was HK$10,048,000, a significant increase from HK$2,116,000 in the same period of 2020[16] Hotel Operations - Hotel operations generated revenue of HK$33,918,000, with HK$14,462,000 recognized over time and HK$3,814,000 at a point in time[32] - The segment profit excluding depreciation for hotel operations was HK$991,000, while the overall segment loss was HK$13,396,000[32] - The geographical market for hotel operations primarily focused on the People's Republic of China, generating HK$18,276,000 in revenue[32] - The hotel segment's overall revenue decreased by 4.0% to HK$33.9 million for the six months ended June 30, 2021, compared to HK$35.3 million for the same period in 2020[125] - The average occupancy rate increased by 1.7% to 31.8% for the six months ended June 30, 2021, from 30.1% in the same period of 2020[125] Share Capital and Options - As of June 30, 2021, the company had 789,211,046 issued and fully paid ordinary shares, with a share capital of HK$7,892,000[81] - The company had 28,000,000 outstanding share options as of June 30, 2021, down from 34,000,000 at the beginning of the year due to 6,000,000 options lapsing during the period[88] - The company’s authorized share capital remained at 150,000,000,000 shares as of June 30, 2021[81] - The share option scheme adopted on May 30, 2013, is valid for 10 years, expiring on June 2, 2023[165] Corporate Governance and Compliance - The Company complied with the Corporate Governance Code during the six months ended June 30, 2021, with some deviations noted[182] - All Directors confirmed compliance with the Model Code for securities transactions during the six months ended June 30, 2021[185] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2021[180] Future Outlook and Strategy - The Group does not expect a robust rebound in the hospitality market for the remaining months of the year due to ongoing COVID-19 impacts[152] - The company anticipates ongoing revenue impacts due to the unpredictable nature of the COVID-19 pandemic, with no strong rebound expected in the hotel industry for the remaining months of the year[154] - The company aims for nearly 100% vaccination among its employees to ensure health and safety during operations[154] - The company is exploring high-growth potential business opportunities in China, including property development and investment, to enhance overall returns for the company and its shareholders[154] - The company has implemented unprecedented health and safety measures as part of its transition to a "new normal" in the hotel industry[153]

Financial Performance - The Group's revenue for the year ended December 31, 2020, was HK$67.2 million, representing a decrease of 52.0% compared to HK$140.0 million for the year ended December 31, 2019[16]. - The Group reported a loss of HK$83.4 million for the year ended December 31, 2020, an improvement from a loss of HK$110.9 million in 2019[16]. - Gross profit for the year was HK$11.3 million, down from HK$62.0 million in 2019, indicating a significant impact from the pandemic[16]. - The hotel operations generated a revenue decrease of 52.0% to HK$67.2 million for the year ended December 31, 2020[20]. - The securities trading segment recorded a loss of HK$0.1 million for the year ended December 31, 2020, compared to a loss of HK$2.9 million in the previous year[21]. Visitor Statistics - Total visitor arrivals to Hong Kong in 2020 were approximately 3.6 million, a decrease of 93.6% year-on-year, following a 14.2% decline in 2019[15]. - The average hotel room occupancy rate in Hong Kong dropped from approximately 79.1% to 46.1% in 2020, reflecting a significant occupancy loss[15]. - Overall room rates in Hong Kong decreased by approximately 26.5% year-on-year in 2020[15]. - Visitors from Mainland China accounted for 75.8% of total arrivals, with a year-on-year decrease of 93.8%[15]. Expenses and Losses - The Group's administrative and other operating expenses were HK$78.5 million, down from HK$94.1 million in 2019[16]. - Impairment loss on property, plant, and equipment was HK$29.0 million, compared to HK$7.4 million in 2019[16]. - The Group recorded a gain on disposal of subsidiaries amounting to HK$55.7 million in 2020, while there was no such gain in 2019[16]. Financial Position - As of December 31, 2020, the Group's cash and bank balances and investments held for trading amounted to HK$1,813.5 million, slightly down from HK$1,816.3 million in the previous year[30]. - The current ratio as of December 31, 2020, was 22.5, significantly improved from 11.2 in the previous year[31]. - The gearing ratio as of December 31, 2020, was 1%, compared to nil in the previous year[31]. - The Group's interest-bearing borrowing amounted to HK$22.0 million as of December 31, 2020, while there were no borrowings in the previous year[30]. - The capital debt ratio was 1% as of December 31, 2020, indicating low leverage[35]. Market Outlook - The group does not expect a recovery in the hospitality market in the upcoming year due to ongoing uncertainties related to COVID-19[51]. - The group plans to explore high-quality hotel investment opportunities and will begin engaging in property development and investment in Guangdong Province, particularly in the Greater Bay Area[51]. Corporate Governance - The company has maintained compliance with the Corporate Governance Code throughout the year ended December 31, 2020, except for specific provisions A.2.1, A.4.1, C.1.2, and E.1.2, with reasons provided[75]. - The board of directors includes independent non-executive directors with extensive experience in finance, insurance, and investment, enhancing corporate governance[62][66][67]. - The company is committed to good corporate governance practices, which are crucial for its development and safeguarding shareholder interests[75]. - The company has adopted various policies and procedures to ensure compliance with the Listing Rules on The Stock Exchange of Hong Kong Limited[75]. - The company has established various committees, including an audit committee and a corporate governance committee, to oversee specific aspects of its affairs[82]. Board and Management - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors, ensuring effective governance and oversight[80]. - The company has a diverse board with members holding qualifications from recognized institutions, ensuring a broad range of expertise[66][69]. - The company secretary, Ms. Law Sau Lai, has been in her role since August 2009, with extensive experience in company secretarial practice[71]. - The company has not appointed a Chief Executive Officer; the Managing Director, Mr. Lai Tsz Wah, is fulfilling the role of CEO[98]. Audit and Risk Management - The Audit Committee consists of three Independent Non-Executive Directors (INEDs), with Mr. Poon Kwok Hing serving as the chairman[115]. - The Audit Committee reviewed the adequacy and effectiveness of the Group's risk management and internal control systems[122]. - The Company has fully implemented recommendations from the independent accounting firm to strengthen the risk management framework and internal control system during 2020[174]. - The internal control audit function is considered adequately resourced by the Audit Committee[175]. Shareholder Engagement - The Company maintains communication with Shareholders through financial reports, announcements, and general meetings[185]. - Shareholders are encouraged to participate in general meetings or appoint proxies to vote on their behalf[186]. - The Company’s website provides information related to the Group for Shareholders[185]. - Shareholders holding at least 10% of the paid-up capital can request the Board to convene a special general meeting[193].

Financial Performance - Total revenue for the six months ended June 30, 2020, was HK$35,310,000, a decrease of 70% compared to HK$118,600,000 in the same period of 2019[7]. - Gross profit for the same period was HK$19,072,000, down from HK$36,395,000, reflecting a gross margin decline[7]. - Loss for the period was HK$1,952,000, significantly improved from a loss of HK$40,565,000 in the prior year[9]. - The company reported a gain on disposal of subsidiaries amounting to HK$67,446,000, contributing positively to the financial results[7]. - The total comprehensive expense for the period ended June 30, 2020, was HK$1,625,000, compared to a total comprehensive income of HK$32,764,000 for the same period in 2019[16]. - The company reported a loss for the period of HK$1,372,000 for the six months ended June 30, 2020, compared to a loss of HK$38,576,000 for the same period in 2019[16]. - The total profit before tax for the company was HK$6,730,000, a recovery from a loss of HK$39,009,000 in the same period of 2019[39]. - The Group recorded a loss of HK$2.0 million for the six months ended June 30, 2020, an improvement from a loss of HK$40.6 million in the same period of 2019[141]. Assets and Liabilities - Non-current assets decreased to HK$324,208,000 as of June 30, 2020, from HK$377,707,000 at the end of 2019[12]. - Current assets totaled HK$1,830,851,000, down from HK$1,913,663,000, indicating a reduction in liquidity[12]. - Total equity decreased to HK$2,023,121,000 from HK$2,097,992,000, reflecting a decline in the company's net worth[13]. - Cash and bank balances stood at HK$1,787,444,000, slightly down from HK$1,816,076,000 at the end of 2019[12]. - The Group's cash and bank balances and investments held for trading amounted to HK$1,787.6 million as of June 30, 2020, compared to HK$1,816.3 million as of December 31, 2019[154]. - Current assets and current liabilities as of June 30, 2020, were HK$1,830.9 million and HK$99.8 million, respectively, resulting in a current ratio of 18.3[155]. - The Group had no borrowings as of June 30, 2020, maintaining a gearing ratio of nil[155]. - The Group did not have any assets pledged for credit facilities as of June 30, 2020[156]. Revenue Breakdown - For the six months ended June 30, 2020, total revenue from hotel operations was HK$35,310,000, a significant decrease from HK$118,600,000 in the same period of 2019, representing a decline of approximately 70%[39]. - Revenue from hotel rooms was HK$16,038,000 and food and beverage services contributed HK$1,850,000 for the first half of 2020, totaling HK$17,888,000[28]. - The geographical breakdown of hotel revenue showed that Hong Kong contributed HK$9,338,000 and the People's Republic of China contributed HK$8,550,000, totaling HK$17,888,000[28]. - Hotel investment revenue decreased by 70.2% to HK$35.3 million for the six months ended June 30, 2020, compared to HK$118.6 million for the same period in 2019[148]. Operational Metrics - The average occupancy rate of the Group's hotels decreased by 36.2% to 30.1% for the six months ended June 30, 2020, compared to 66.3% in 2019[146]. - The average hotel room occupancy level in Hong Kong was 39.2%, a decrease of 50.8% compared to the same period in 2019[137]. - The Group's administrative expenses increased to HK$67.8 million for the six months ended June 30, 2020, compared to HK$57.3 million in 2019[141]. Investment and Fair Value - The company reported a fair value loss on investment properties of HK$18,344,000 for the period[7]. - The fair value loss on investment properties was HK$18.3 million for the six months ended June 30, 2020, compared to HK$16.1 million in the same period of 2019[141]. - The Group incurred depreciation expenses of HK$16,362,000 for property, plant, and equipment during the first half of 2020[39]. - The fair value measurements of financial assets and liabilities are categorized into three levels based on the observability of inputs used[126]. Shareholder Information - The Company declared a special dividend of HK$2.5 cents per share, totaling HK$19,730,000, distributed on July 17, 2020[55]. - The total number of issued shares of the Company was 789,211,046[182]. - Director Mr. Lai Tsz Wah holds 147,663,250 shares, representing approximately 18.71% of the issued share capital[178]. - The Group had 526 employees as of June 30, 2020, with 448 stationed in the PRC[166]. - The Company has adopted a share option scheme to provide incentives and rewards to employees[166]. Economic Outlook - The economic outlook for the second half of 2020 is expected to be significantly challenging due to the ongoing COVID-19 pandemic and escalating PRC-US trade tensions, leading to further contraction in Hong Kong and PRC's economy[168][173]. - The hotel sector is adapting to a 'new normal' with unprecedented health and safety measures, aiming to restore consumer confidence in hotel safety[169][173]. - The Group's revenue will continue to be impacted in the short term due to strict precautionary measures related to COVID-19, although long-term damage to the hotel sector is not anticipated[170][174].

Visitor Arrivals and Tourism Impact - In 2019, total visitor arrivals to Hong Kong decreased by 14.2% year-on-year to approximately 55.9 million, with visitors from Mainland China accounting for 78.3% of the total[14]. - Overnight visitors in 2019 totaled approximately 23.7 million, representing an 18.8% decrease compared to the previous year[14]. - The average hotel room occupancy rate in Hong Kong dropped from approximately 91.4% to 79.1% in 2019, indicating a significant occupancy loss[14]. - Overall room rates in Hong Kong decreased by approximately 12.4% year-on-year in 2019[14]. - The ongoing US-China trade tensions and geopolitical risks negatively impacted market confidence and tourism in Hong Kong[8]. - The company faced a challenging operating environment due to the decline in tourist arrivals and the impact of social unrest in Hong Kong[9]. - The Group's revenue is expected to be impacted due to a significant drop in hotel occupancy rates amid the COVID-19 pandemic, with arrivals in Hong Kong plummeting by 75% in the first quarter of 2020[51][52]. - Visitor numbers to Hong Kong dropped by 75% in Q1 2020 as a result of COVID-19 restrictions[53]. - The hotel industry is expected to remain weak in the near term, affecting the group's performance in the first half of 2020[54]. - Hotel occupancy rates in China significantly declined in Q1 2020 due to government-imposed lockdowns, impacting the group's revenue[54]. Financial Performance - The Group reported a revenue of HK$215.4 million for the year ended 31 December 2019, a decrease of 18.1% compared to HK$263.0 million for the year ended 31 December 2018[17]. - The Group incurred a loss of HK$110.9 million for the year ended 31 December 2019, compared to a profit of HK$0.4 million for the previous year[17]. - The gross profit for the year was HK$62.9 million, down from HK$106.3 million in 2018, reflecting a significant decline in profitability[17]. - The average occupancy rate of the Group's hotels decreased by 7.0% to 67.8% for the year ended 31 December 2019, compared to 74.8% in 2018[23]. - The gross margin fell to 29.2%, a decrease of 11.2% from 40.4% in the corresponding period of 2018[23]. - The securities trading segment recorded a loss of HK$2.9 million for the year ended 31 December 2019, an improvement from a loss of HK$9.8 million in 2018[24]. - The Group's other income and gains amounted to HK$3.9 million for the year, compared to other losses of HK$6.2 million in the previous year[17]. - As of December 31, 2019, the Group's cash and bank balances and investments held for trading amounted to HK$1,816.3 million, a decrease from HK$1,866.8 million as of December 31, 2018[32][37]. - The Group's current assets and current liabilities as of December 31, 2019 were HK$1,913.7 million and HK$160.6 million, respectively, resulting in a current ratio of 11.9, down from 13.6 in the previous year[33][37]. - The Group had no borrowings as of December 31, 2019, maintaining a gearing ratio of nil, consistent with the previous year[33][37]. - Over 95% of the Group's cash and bank balances were denominated in Hong Kong dollars and US dollars, with approximately 4.2% in Renminbi as of December 31, 2019[34][37]. Economic Environment - The GDP of the People's Republic of China averaged 6.1% in 2019, reflecting a decrease of about 0.6% compared to 2018, marking the lowest figure since 1992[9]. - Hong Kong's GDP dropped by 1.2% year-on-year in real terms in 2019, following a growth of 2.9% in 2018[9]. - The PRC implemented positive fiscal policies in 2019 to strengthen counter-cyclical adjustments, which contributed to steady growth despite external pressures[9]. - The company anticipates continued challenges in the market due to ongoing geopolitical uncertainties and economic pressures[9]. - The government forecasts Hong Kong's economy to grow between -1.5% to 0.5% in 2020, reflecting the challenging economic outlook[51]. - The Hong Kong economy is projected to grow between -1.5% to 0.5% in 2020 due to challenges including the COVID-19 pandemic, trade tensions, and political unrest[53]. Corporate Governance and Management - The company has a commitment to long-term growth and profitability as part of its corporate strategy[82]. - The board of directors has adopted various policies to ensure compliance with the Corporate Governance Code, maintaining high standards of corporate governance[81]. - The company has complied with the code provisions of the Corporate Governance Code during the year ended December 31, 2019, except for one provision with explained reasons[81]. - The company has over 30 years of experience in the financial and investment sectors, enhancing its market expertise[67]. - The company has a diverse board with independent non-executive directors who bring extensive experience in various industries, including insurance and investment[69][70][73]. - The financial controller has over 20 years of progressive accounting experience, contributing to the company's financial management[77]. - The company secretary has extensive experience in company secretarial practice, ensuring compliance and governance[78]. - The Board of Directors consists of seven members, including four executive directors and three independent non-executive directors[87]. - During the year, the Board held nine full meetings, including four regular meetings, to review financial and operational performance[91]. - The company has established various committees, including the audit committee and remuneration committee, to oversee specific aspects of its affairs[89]. - The Chairman and Managing Director roles are held separately by Dr. Yap, Allan and Mr. Lai Tsz Wah, respectively, ensuring clear division of responsibilities[101]. - All directors participated in continuous professional development, receiving materials on corporate governance and updates on the Group's business and financial matters[106]. - The company has purchased appropriate directors and officers liability insurance to protect against legal actions arising from their duties[103]. - The Company has established a Corporate Governance Committee to develop and review corporate governance policies and practices[159]. - The Corporate Governance Committee reviewed compliance with the CG Code for the year ended December 31, 2018, and for the six months ended June 30, 2019[166]. - The Company maintains internal control and risk management systems to manage risks associated with achieving business objectives[170]. - The Audit Committee evaluated the effectiveness of the internal control and risk management systems, focusing on financial reporting reliability and operational efficiency[175]. - An independent accounting firm was outsourced for internal control audits, covering key operational, financial, and compliance risks identified by the Audit Committee[176]. - The independent accounting firm conducted an annual review, reporting no significant control failings or weaknesses that could affect shareholders[179]. - The Company fully implemented recommendations from the independent audit to strengthen the risk management framework and internal control system during 2019[179]. Employee and Remuneration Policies - The Group employed 586 employees as of December 31, 2019, with 479 stationed in the PRC, and has adopted a share option scheme for eligible participants[43][48]. - The proposed salary increase for employees, including senior management, was approved for 2020[131]. - The remuneration of senior management is within the range of HK$1,000,000 to HK$1,500,000 for one individual and up to HK$1,000,000 for another[134]. - The remuneration of independent non-executive directors for 2020 was reviewed and recommendations were made to the Board[131]. Committees and Meetings - The Audit Committee held three meetings during the Year, with all members attending at least two meetings[122]. - The Audit Committee reviewed the financial reporting matters, including the annual results for the year ended December 31, 2018, and the interim results for the six months ended June 30, 2019[124]. - The Remuneration Committee held four meetings during the Year and passed a resolution regarding the payment of discretionary bonuses to the Managing Director and senior management for 2018[128]. - The Nomination Committee held five meetings during the year to assess the independence of INEDs and review board nominations[138]. - The Corporate Governance Committee held two meetings during the year, with all members actively participating[164]. Shareholder Communication - The Company maintains communication with shareholders through various channels, including financial reports and general meetings[192]. - Shareholders are encouraged to participate in general meetings and can appoint proxies if unable to attend[194].

Financial Performance - Total revenue for the six months ended June 30, 2019, was HK$118.6 million, a decrease of 7.0% from HK$127.6 million in the same period of 2018[16] - Gross profit for the period was HK$36.4 million, down 27.0% from HK$49.8 million in the previous year[16] - Loss for the period was HK$40.6 million, compared to a loss of HK$45.3 million in the same period of 2018, indicating a slight improvement[16] - Direct operating costs increased to HK$82.2 million, up from HK$77.7 million, reflecting a rise in operational expenses[16] - Other income, gains, and losses showed a significant recovery, with a gain of HK$512, compared to a loss of HK$5.1 million in the previous year[16] - Administrative and other operating expenses decreased to HK$57.3 million from HK$75.2 million, showing a reduction of 23.8%[16] - Total comprehensive expense for the period was HK$34.0 million, an improvement from HK$53.6 million in the same period of 2018[16] - For the six months ended June 30, 2019, the loss attributable to owners of the Company was HK$38,576,000, a decrease of 9.6% compared to HK$42,632,000 in the same period of 2018[18] - Total comprehensive expense for the period attributable to owners of the Company was HK$32,764,000, significantly lower than HK$49,554,000 in the previous year, indicating an improvement[18] - Basic and diluted loss per share remained at HK$0.05 for both 2019 and 2018, reflecting consistent performance in terms of loss per share[18] Assets and Liabilities - Non-current assets decreased from HK$446,034,000 as of December 31, 2018, to HK$479,559,000 as of June 30, 2019, primarily due to changes in property and investment properties[21] - Current assets slightly decreased from HK$1,894,570,000 at the end of 2018 to HK$1,940,737,000 at mid-2019, with bank balances and cash remaining stable around HK$1,856,150,000[21] - Total liabilities associated with assets classified as held for sale increased from HK$36,618,000 to HK$37,259,000, indicating a slight rise in obligations related to these assets[22] - Net assets as of June 30, 2019, were HK$2,187,017,000, a decrease from HK$2,214,931,000 at the end of 2018, reflecting a reduction in overall equity[22] - The Company reported a net current asset position of HK$1,761,526,000, down from HK$1,801,938,000 at the end of 2018, indicating a tightening liquidity position[22] - Deferred tax liabilities decreased from HK$33,041,000 to HK$31,735,000, suggesting a reduction in future tax obligations[22] - The Company maintained its share capital at HK$7,892,000, with reserves totaling HK$1,989,103,000 as of June 30, 2019, reflecting stability in capital structure[22] Cash Flow - Net cash from operating activities decreased to HK$11,601,000 for the six months ended June 30, 2019, down from HK$18,763,000 in 2018, representing a decline of approximately 38%[27] - Net cash from investing activities improved to HK$1,927,000 in 2019, compared to a net cash used of HK$23,229,000 in 2018, indicating a significant turnaround[27] - Cash used in financing activities increased to HK$20,179,000 in 2019, compared to HK$207,000 in 2018, reflecting a substantial rise in financing costs[27] - The net decrease in cash and cash equivalents was HK$6,651,000 for the first half of 2019, compared to a decrease of HK$4,673,000 in the same period of 2018[27] - Cash and cash equivalents at June 30, 2019, totaled HK$1,856,810,000, slightly down from HK$1,795,571,000 at the end of June 2018[27] - Interest received increased to HK$2,174,000 in 2019 from HK$1,909,000 in 2018, marking an increase of approximately 14%[27] Lease Accounting - The Group has applied HKFRS 16 for the first time, which may impact future financial reporting related to leases[36] - The Group recognizes right-of-use assets at the commencement date of the lease, measured at cost, less accumulated depreciation and impairment losses[51] - Lease liabilities are recognized at the present value of unpaid lease payments at the commencement date, using the incremental borrowing rate if the implicit interest rate is not determinable[66] - The cost of right-of-use assets includes initial measurement of lease liability, lease payments made before commencement, initial direct costs, and estimated costs for dismantling and restoring the site[54] - Right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term[58] - The Group recognized lease liabilities of HK$74,742,000 and right-of-use assets of HK$76,575,000 as of January 1, 2019[100] - The Group applies HKFRS 16 retrospectively, with cumulative effects recognized at the date of initial application[93] - The total adjustment on rental deposits as of January 1, 2019, was HK$1,833,000, leading to a revised carrying amount of HK$76,575,000 for right-of-use assets[109] Hotel Operations - For the six months ended June 30, 2019, the Group's total revenue from hotel operations was HK$94,091,000, with HK$80,119,000 from hotel rooms and HK$13,972,000 from food and beverage[128] - The revenue from hotel operations in the same period of 2018 was HK$102,269,000, indicating a decrease of approximately 8% year-over-year[131] - The geographical breakdown of revenue for the six months ended June 30, 2019, shows HK$48,488,000 from Hong Kong and HK$45,603,000 from the PRC, reflecting a balanced market presence[128] - The Group's hotel operations segment includes accommodation, food and banquet services, and rental income from shop units and investment properties[136] - The Group incurred operating losses in its hotel operations segment in the PRC due to adverse market and economic changes[184] Investment Properties - The Group's investment properties experienced a fair value decrease of HK$16,088,000 for the six months ended 30 June 2019, compared to a decrease of HK$12,253,000 for the same period in 2018[192] - The Group's investment properties were valued by an independent professional valuer, ensuring compliance with relevant qualifications and experiences[192] Other Financial Information - The effective tax rate for the company's PRC subsidiaries was 25% for both periods[152][153] - The company reported a net exchange gain of HK$180,000, contrasting with a loss of HK$274,000 in the previous year[147] - The Group's assessment of individual trade receivables indicated no need for provisions during the reporting periods[197] - As of June 30, 2019, the company's listed investments in equity securities listed in Hong Kong amounted to HK$5,875,000, a decrease from HK$7,068,000 as of December 31, 2018, representing a decline of approximately 16.8%[199] - The company has conditionally agreed to dispose of its entire equity interest in Luoyang Golden Gulf Hotel Company Limited for a consideration of RMB61,000,000, equivalent to approximately HK$68,500,000[200]

Financial Performance - The Group reported revenue of HK$263.0 million for the year ended December 31, 2018, representing an increase of 4.2% compared to HK$252.3 million for the previous year[19]. - The profit for the year ended December 31, 2018, was HK$0.4 million, a significant recovery from a loss of HK$125.2 million in 2017[19]. - Gross profit increased to HK$106.3 million in 2018, up from HK$100.7 million in 2017[19]. - The Group recorded a revenue of HK$263 million for the year ended December 31, 2018, representing a 4.2% increase from HK$252.3 million in the previous year[20]. - The Group achieved a profit of HK$400 million for the year ended December 31, 2018, compared to a loss of HK$125.2 million for the year ended December 31, 2017[20]. - The gross margin improved to 40.4%, up 0.5% from 39.9% in the previous year[24]. - Administrative expenses rose to HK$137.6 million in 2018, compared to HK$126.2 million in 2017[19]. - The Group's administrative expenses were HK$137.6 million for the year ended December 31, 2018, compared to HK$126.2 million in the previous year[20]. - The Group's interest income was HK$4 million for the year ended December 31, 2018, down from HK$8.6 million in the previous year[20]. Market and Economic Conditions - The average hotel room occupancy rate in Hong Kong rose from 89.3% to 91.0% in 2018[16]. - Total visitor arrivals to Hong Kong reached approximately 65.1 million in 2018, an increase of 11.4% year-on-year[16]. - Visitors from Mainland China accounted for 78.3% of total arrivals, with a year-on-year increase of 14.8%[16]. - The overall room rate in Hong Kong hotels increased by approximately 6.8% in 2018[16]. - The hotel market is expected to continue recovering steadily, but uncertainties remain due to geopolitical tensions and economic conditions[59][62]. - The opening of major infrastructure projects, such as the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the Hong Kong-Zhuhai-Macao Bridge, is anticipated to positively impact tourism and economic growth[65]. - The Hong Kong government has committed to investing in infrastructure development, including the opening of the Guangzhou-Shenzhen-Hong Kong Express Rail Link (142 km) and the Hong Kong-Zhuhai-Macao Bridge (55 km), which will enhance connectivity and stimulate economic growth[67]. Investment and Acquisition Activities - The company entered into a framework agreement for a potential acquisition of 51% equity interest in a company owned by independent third parties for HK$75 million[34]. - On December 27, 2017, the company proposed to acquire the entire registered capital of a limited liability company in the PRC for RMB280 million (approximately HK$334.3 million), with an initial payment of RMB20 million (approximately HK$24.8 million)[36]. - Due diligence on the target could not be finalized due to the PRC vendors' refusal to cooperate, leading to arbitration proceedings initiated by the company[36]. - A settlement agreement was reached on September 27, 2018, terminating the acquisition agreement and refunding the initial payment of RMB20 million before December 31, 2018[39]. - On November 23, 2018, the company entered into a disposal agreement for a possible sale of 60% equity interests in Luoyang Golden Gulf Hotel Company Limited for RMB61 million (approximately HK$68.5 million)[39]. - The purchaser paid a deposit of RMB21 million (approximately HK$23.9 million) upon signing the disposal agreement[39]. - The remaining balance of RMB40 million (approximately HK$44.6 million) is to be deposited into an escrow account following shareholder approval[39]. Financial Position and Liquidity - As of December 31, 2018, the Group's cash and bank balances and investments held for trading amounted to HK$1,866.8 million, an increase from HK$1,823.7 million as of December 31, 2017[42][45]. - The Group's current assets and current liabilities as of December 31, 2018 were HK$1,945.0 million and HK$143.0 million, respectively, resulting in a current ratio of 13.6, up from 10.2 in the previous year[43][45]. - The Group had no borrowings as of December 31, 2018, maintaining a gearing ratio of nil, consistent with the previous year[43][45]. - Over 95% of the Group's cash and bank balances were denominated in Hong Kong dollar and United States dollar, with approximately 4.6% in Renminbi as of December 31, 2018[44][45]. Corporate Governance - The board of directors consists of six members, including three executive directors and three independent non-executive directors, overseeing the company's strategic direction and performance[96][97]. - The company has established various committees, including the Audit Committee and the Remuneration Committee, to oversee specific aspects of its operations[98]. - During the year, the board held six full meetings to review financial and operational performance, as well as to approve annual and interim results[99]. - The company has been compliant with the Corporate Governance Code throughout the year, with minor exceptions explained in the report[91]. - The Company has established a Corporate Governance Committee to develop and review corporate governance policies and practices[172]. - The Company has established a clear nomination policy to guide the selection and recommendation of Director candidates[161]. - The Company has purchased appropriate directors and officers liability insurance for legal actions against the Directors and officers[110]. Remuneration and Performance - The Remuneration Committee held one meeting during the Year and passed two resolutions regarding discretionary bonuses for the Managing Director and senior management for 2017[139]. - The remuneration of senior management for the Year was within the following bands: one senior management member earned up to HK$1,000,000 and another earned between HK$1,000,001 to HK$1,500,000[146]. - The Remuneration Committee reviewed the remuneration policy and proposed salary increases for employees, including senior management, for 2019[142]. Risk Management and Internal Control - The Audit Committee reviewed the adequacy and effectiveness of the risk management and internal control systems of the Group[136]. - An independent accounting firm was outsourced for internal control audits, focusing on key operational, financial, and compliance risks[186]. - The Audit Committee reported no significant control failings or weaknesses during the Year, maintaining an adequate internal control system[190]. - The Company fully implemented recommendations from the independent accounting firm to strengthen the risk management framework and internal control system[190].