Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 306,112,000, a decrease of 24.1% from HKD 403,401,000 in the same period of 2019[9] - Gross profit for the same period was HKD 86,604,000, down 14.4% from HKD 101,084,000 year-on-year[9] - The net profit for the six months ended June 30, 2020, was HKD 47,991,000, a significant decline of 85.3% compared to HKD 326,680,000 in 2019[10] - Basic earnings per share for the period were HKD 3.194, down from HKD 21.874 in the previous year, reflecting a decrease of 85.4%[8] - The company reported a net profit before tax of HKD 164,197,000 for the first half of 2020[31] - The company's current profit for the six months ended June 30, 2020, is HKD 45,940,000, a significant decrease from HKD 314,107,000 for the same period in 2019, representing a decline of approximately 85.3%[46] Revenue Sources - The company confirmed revenue from various sources, including automotive parts sales and financial printing services, with revenue recognition based on the transfer of control to customers[23] - Total customer contract revenue reached 306,112 thousand HKD, with significant contributions from various segments including automotive parts and printing services[25] - Automotive parts sales generated 55,915 thousand HKD, while waste sales contributed 171,224 thousand HKD to the total revenue[25] - Printing services accounted for 37,720 thousand HKD, and financial services added 26,562 thousand HKD to the overall revenue[25] - Revenue from the environmental segment was approximately HKD 171.2 million, a decrease of about 41.4% compared to the first half of 2019[75] - Financial services segment revenue increased to approximately HKD 35.9 million, a growth of 1.6 times compared to HKD 14 million in the first half of 2019[76] - Revenue from the automotive parts segment was approximately HKD 55.9 million, a slight increase of about 10.3% compared to the first half of 2019[77] - Revenue from the commercial printing segment decreased by 7.2% to approximately HKD 37.7 million, resulting in a loss of approximately HKD 1.6 million in the first half of 2020[78] Assets and Liabilities - Total assets as of June 30, 2020, amounted to HKD 13,121,273,000, an increase from HKD 11,763,083,000 at the end of 2019[11] - The total equity attributable to owners of the company decreased to HKD 2,298,527 thousand from HKD 2,345,095 thousand, representing a decline of approximately 2.0%[12] - The total non-current liabilities increased to HKD 9,934,581 thousand from HKD 8,543,793 thousand, indicating a rise of approximately 16.3%[12] - The company’s total liabilities increased to HKD 13,121,273 thousand from HKD 11,763,083 thousand, reflecting an increase of approximately 11.5%[12] - The total receivables from trade and securities brokerage amounted to HKD 609,517,000 as of June 30, 2020, compared to HKD 410,569,000 at the end of 2019, marking an increase of about 48.5%[49] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 1,618,575,000 from HKD 585,052,000, indicating a strong liquidity position[11] - The net cash used in operating activities for the six months ended June 30, 2020, was HKD (230,785) thousand, compared to HKD 139,384 thousand for the same period in 2019[13] - The net cash generated from financing activities increased significantly to HKD 1,330,591 thousand from HKD 593,245 thousand year-over-year, marking an increase of approximately 124.9%[13] - The cash and cash equivalents at the end of the period rose to HKD 1,598,575 thousand, up from HKD 966,970 thousand, reflecting an increase of approximately 65.2%[13] - The company reported a net cash outflow from investment activities of HKD 635,296 thousand, compared to a net cash outflow of HKD 8,327 thousand in the current period[13] Financial Expenses and Tax - The company experienced a significant increase in financial expenses, which rose to HKD 308,392,000 from HKD 280,354,000, reflecting a rise of 10.0%[9] - The total tax expense for the six months ended June 30, 2020, is HKD 116,206,000, down from HKD 195,765,000 in 2019, indicating a reduction of about 40.5%[43] - The deferred tax expense for the six months ended June 30, 2020, is HKD 114,503,000, down from HKD 188,953,000 in 2019, indicating a decrease of approximately 39.3%[43] Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring compliance with accounting principles and internal controls[104] - The company has adhered to high standards of corporate governance and complied with all relevant codes during the reporting period[102] - No significant interests in any important contracts related to the group's business were disclosed by the directors during the reporting period[101] Future Outlook and Strategy - The company provided a future outlook projecting a revenue growth of 20% for the next fiscal year[105] - The company is considering strategic acquisitions to enhance its product offerings and market presence[105] - The group plans to acquire all issued shares of a Hong Kong-listed company, with a final offer price of HKD 0.3935 per share, aiming to diversify its business into the Hong Kong department store sector[91] - The group anticipates ongoing intense competition and weak demand in the commercial printing segment, which is expected to persist for several years[90] - The group will continue to review and assess relevant risks, benefits, and prospects in its operations[90]

Financial Performance - Total revenue for the fiscal year ended December 31, 2019, was approximately HKD 828.9 million, with a loss attributable to equity holders of approximately HKD 415.5 million, resulting in a basic loss per share of HKD 0.2889[22]. - The company reported a net loss of approximately HKD 404.7 million for the year, compared to a profit of approximately HKD 383.7 million in the previous year[36]. - The total revenue for the year was approximately HKD 828.9 million, an increase of about 2.2% from approximately HKD 811 million in the previous year[36]. - The company recognized a remeasurement gain of HKD 709,402,000 related to interests in associates in 2019, which was not present in 2018[194]. - The total equity attributable to the company's owners decreased to HKD 2,345,095, down from HKD 2,878,448 in the previous year, representing a decline of approximately 18.5%[200]. Revenue Breakdown - Revenue contributions came primarily from the environmental category (71.4%), automotive parts category (12.9%), and commercial printing category (9.4%)[36]. - Revenue from environmental classification increased from HKD 570.8 million in FY2018 to HKD 592.2 million in FY2019, a growth of approximately 3.8%[39]. - Revenue from financial services surged approximately 300% to HKD 40.9 million in FY2019, up from HKD 10.3 million in FY2018, with an operating profit of HKD 12.6 million compared to a loss of HKD 20.3 million in FY2018[41]. - Revenue from the automotive parts segment declined by 15.8% to HKD 107 million in FY2019, down from HKD 127.1 million in FY2018, while operating profit improved to HKD 10.1 million from breakeven in FY2018[42]. - Revenue from commercial printing decreased by approximately 5.5% to HKD 77.9 million in FY2019, with operating profit dropping by 70.9% to HKD 0.7 million[43]. Investment Activities - The group completed the acquisition of a company with a primary asset being a residential property in Hong Kong, which is expected to diversify the investment property portfolio[24]. - The company completed the acquisition of 60% equity in Chuangyue Financing in April 2019, enhancing its financial services segment in Hong Kong[26]. - The company is seeking government approval for the redevelopment of the Zhangkengjing property from industrial to residential and office use, with the application currently under review[33]. - The company has received preliminary approval to convert the Xikeng property into affordable housing and residential use, with expectations for final approval in the second half of 2020[25]. - The company is expanding its processing plant in Osaka, Japan, to enhance local operations and productivity, aiming to diversify its product offerings[25]. Economic Outlook - The group anticipates 2020 to be a challenging year due to ongoing trade tensions and the impact of the COVID-19 pandemic on global business sentiment[24]. - The GDP growth rate in China for 2019 was 6.1%, down from 6.6% in 2018, marking the lowest growth rate in a decade[24]. - The company anticipates challenges in the property market due to the COVID-19 pandemic but remains optimistic about long-term prospects, particularly in Shenzhen's Longhua and Guangming districts, which are designated as rapidly developing economic areas[50]. - The company expects stable demand for automotive parts as consumers opt to repair old vehicles instead of purchasing new ones[55]. - The company forecasts continued intense competition and weak demand in the commercial printing segment, with plans to implement cost control measures[56]. Financial Position - As of December 31, 2019, the group had cash and bank balances totaling approximately HKD 585.1 million, down from HKD 896.5 million a year earlier[46]. - The group's debt-to-equity ratio increased to 369.1% as of December 31, 2019, compared to 266.6% a year earlier, with interest-bearing borrowings amounting to approximately HKD 8.66 billion[46]. - The company’s cash and cash equivalents were HKD 585,052,000 in 2019, down from HKD 896,544,000 in 2018, a decrease of 34.7%[198]. - Non-current liabilities increased to HKD 8,543,793 from HKD 7,555,408, reflecting a growth of about 13.0% year-over-year[200]. - The company's total assets increased to HKD 11,763,083 from HKD 10,487,834, marking a growth of approximately 12.2%[200]. Environmental and Social Responsibility - The company is committed to corporate social responsibility, focusing on energy conservation and waste reduction in daily operations[72]. - The company reported a total greenhouse gas emissions of 163.50 tons (CO2 equivalent) in 2019, a decrease from 167.95 tons in 2018 and 190.68 tons in 2017[132]. - The company has established a comprehensive environmental management system to comply with regulations and improve environmental performance[127]. - The company encourages the use of modern communication methods to reduce business travel and associated greenhouse gas emissions[133]. - The group aims to continue its charitable efforts and support for disadvantaged communities as part of its corporate social responsibility[180]. Governance and Compliance - The board of directors includes three executive directors and three independent non-executive directors, with two directors eligible for re-election at the upcoming annual general meeting[79]. - The company confirmed compliance with all code provisions of the Corporate Governance Code during the year ended December 31, 2019[99]. - The independent non-executive directors provided valuable insights on strategic development and ensured compliance with financial regulations[105]. - The company has established policies and guidelines for handling and disclosing inside information, ensuring compliance with relevant regulations[112]. - The company has not identified any significant control deficiencies based on the internal control review conducted in 2019[112].

[Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including profit or loss, comprehensive income, financial position, cash flows, and changes in equity [Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The company's total revenue grew 83.1% to HKD 403.4 million, but profit for the period significantly decreased to HKD 57.06 million due to higher finance costs Comparison of Profit or Loss Statements for H1 2019 vs H1 2018 (thousand HKD) | Indicator | For the six months ended June 30, 2019 (thousand HKD) | For the six months ended June 30, 2018 (thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **403,401** | **220,308** | **+83.1%** | | Gross Profit | 101,084 | 61,468 | +64.5% | | Other Income and Losses | 505,092 | 680,302 | -25.8% | | Finance Costs | (280,354) | (162,671) | +72.3% | | Profit Before Tax | 252,824 | 504,265 | -49.9% | | **Profit for the Period** | **57,059** | **347,216** | **-83.6%** | | Profit Attributable to Owners of the Company | 44,486 | 343,992 | -87.1% | | Basic Earnings Per Share (HK cents) | 3.10 | 27.21 | -88.6% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Total comprehensive income for the period significantly decreased by 59.4% to HKD 33.14 million, mainly due to exchange losses from overseas operations Total Comprehensive Income for H1 2019 (thousand HKD) | Indicator | For the six months ended June 30, 2019 (thousand HKD) | For the six months ended June 30, 2018 (thousand HKD) | | :--- | :--- | :--- | | Profit for the Period | 57,059 | 347,216 | | Other Comprehensive Expenses for the Period | (23,916) | (265,649) | | **Total Comprehensive Income for the Period** | **33,143** | **81,567** | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets increased to HKD 12.87 billion, driven by investment properties, while total liabilities rose to HKD 10.21 billion due to increased bank borrowings Key Financial Position Indicators (thousand HKD) | Indicator | June 30, 2019 (thousand HKD) | December 31, 2018 (thousand HKD) | | :--- | :--- | :--- | | **Non-current Assets** | **10,628,605** | **9,409,334** | | Of which: Investment Properties | 10,099,503 | 9,081,879 | | **Current Assets** | **2,240,415** | **2,012,335** | | **Total Assets** | **12,869,020** | **11,421,669** | | **Current Liabilities** | **1,374,395** | **933,835** | | **Non-current Liabilities** | **8,840,100** | **7,555,408** | | Of which: Bank Borrowings | 7,335,385 | 4,864,046 | | **Total Liabilities** | **10,214,495** | **8,489,243** | | **Equity Attributable to Owners of the Company** | **2,458,616** | **2,878,448** | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Operating activities generated a net cash inflow of HKD 86.57 million, while investing and financing activities resulted in net outflows and inflows respectively, leading to a net increase in cash of HKD 97.33 million Cash Flow Statement Summary (thousand HKD) | Indicator | For the six months ended June 30, 2019 (thousand HKD) | For the six months ended June 30, 2018 (thousand HKD) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 86,570 | (81,772) | | Net Cash Used in Investing Activities | (635,296) | (4,569,930) | | Net Cash from Financing Activities | 646,059 | 4,792,740 | | **Net Increase in Cash and Cash Equivalents** | **97,333** | **141,038** | | Cash and Cash Equivalents at Beginning of Period | 876,544 | 46,632 | | **Cash and Cash Equivalents at End of Period** | **966,970** | **217,020** | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners of the company decreased to HKD 2.459 billion, primarily due to a reduction in capital reserves from acceptance bill redemption, partially offset by profit for the period - Equity attributable to owners of the company decreased from **HKD 2,878,448 thousand** at the beginning of the period to **HKD 2,458,616 thousand** at the end of the period, with key changes including: - Profit for the period increased by **HKD 44,486 thousand** - Other comprehensive income (loss) decreased by **HKD 24,537 thousand** - Redemption of acceptance bills led to a **HKD 439,781 thousand** decrease in capital reserves - Acquisitions resulted in non-controlling interests increasing from **HKD 53,978 thousand** to **HKD 195,909 thousand**[9](index=9&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the accounting policies, revenue breakdown, segment information, business combinations, and bank borrowings [2. Principal Accounting Policies](index=9&type=section&id=2.%20Principal%20Accounting%20Policies) The Group adopted new accounting standards, notably HKFRS 16 Leases, leading to the recognition of new right-of-use assets and lease liabilities - The Group first applied **HKFRS 16 Leases** on January 1, 2019, replacing HKAS 17, using a modified retrospective approach with cumulative effects recognized at the beginning of the period without restating comparative data[14](index=14&type=chunk)[30](index=30&type=chunk) Impact of HKFRS 16 Adoption on Statement of Financial Position as at January 1, 2019 (thousand HKD) | Item | Carrying Amount Before Adjustment (thousand HKD) | Adjustment (thousand HKD) | Reclassification (thousand HKD) | Carrying Amount After Adjustment (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | | Right-of-use Assets | – | 66,086 | 5,082 | 71,168 | | Prepaid Lease Payments | 4,968 | – | (4,968) | – | | **Current Assets** | | | | | | Prepaid Lease Payments | 114 | – | (114) | – | | **Current Liabilities** | | | | | | Lease Liabilities | – | 22,402 | – | 22,402 | | **Non-current Liabilities** | | | | | | Lease Liabilities | – | 43,684 | – | 43,684 | [3. Revenue](index=18&type=section&id=3.%20Revenue) Total revenue for H1 2019 increased by 83.1% to HKD 403 million, primarily driven by strong growth in the environmental and financial services segments Revenue Breakdown by Business Segment (thousand HKD) | Business Segment | H1 2019 (thousand HKD) | H1 2018 (thousand HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Environmental | 292,088 | 113,775 | +156.7% | | Auto Parts | 50,710 | 46,447 | +9.2% | | Commercial Printing | 40,664 | 44,855 | -9.3% | | Financial Services | 14,003 | 4,960 | +182.3% | | Property Investment | 5,698 | 9,773 | -41.7% | | Labels | 238 | 498 | -52.2% | | **Total** | **403,401** | **220,308** | **+83.1%** | [4. Segment Information](index=21&type=section&id=4.%20Segment%20Information) The Group operates in six segments, with property investment contributing the majority of segment results and total assets, while the environmental segment showed strong operating profit - The Group's six operating segments are: Commercial Printing, Labels, Auto Parts, Financial Services, Property Investment, and Environmental[45](index=45&type=chunk) Segment Results and Assets (thousand HKD) | Business Segment | H1 2019 Segment Results (thousand HKD) | H1 2018 Segment Results (thousand HKD) | Segment Assets as at June 30, 2019 (thousand HKD) | | :--- | :--- | :--- | :--- | | Property Investment | 304,635 | 353,660 | 10,532,537 | | Environmental | 42,918 | 11,147 | 443,591 | | Auto Parts | 5,425 | 76 | 152,679 | | Financial Services | 1,330 | 412 | 406,712 | | Commercial Printing | 705 | 2,094 | 48,780 | | Labels | (64) | (116) | 485 | | **Total** | **354,949** | **367,273** | **11,584,784** | [8. Business Combination](index=26&type=section&id=8.%20Business%20Combination) The Group completed two key acquisitions, including a 60% stake in Grand Ascent Finance for HKD 96 million and an additional 2% stake in Shenzhen Yousheng Property - On April 30, 2019, the Group completed the acquisition of a **60% equity interest** in Grand Ascent Finance Limited for a total consideration of **HKD 96 million**, resulting in goodwill of approximately **HKD 58.89 million**. Grand Ascent Finance primarily provides corporate finance advisory services in Hong Kong[56](index=56&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - On April 22, 2019, the Group acquired an additional **2% equity interest** in Yousheng Property for approximately **HKD 45.48 million**, increasing its stake to **51%**, making Yousheng Property a subsidiary primarily engaged in property redevelopment[64](index=64&type=chunk) [20. Bank Borrowings and Overdrafts](index=38&type=section&id=20.%20Bank%20Borrowings%20and%20Overdrafts) Total bank borrowings and overdrafts significantly increased to HKD 8.18 billion, with most being secured and non-current, reflecting higher leverage Summary of Bank Borrowings and Overdrafts (thousand HKD) | Item | June 30, 2019 (thousand HKD) | December 31, 2018 (thousand HKD) | | :--- | :--- | :--- | | Current Portion | 844,905 | 496,953 | | Non-current Portion | 7,335,385 | 4,864,046 | | **Total** | **8,180,290** | **5,360,999** | - The Group's bank credit facilities amount to **HKD 8.95 billion**, with **HKD 8.18 billion** utilized. Some borrowings are secured by company guarantees, investment properties (carrying value of **HKD 9.0 billion**), leasehold land and buildings (carrying value of **HKD 66.5 million**), and personal guarantees from controlling shareholders[91](index=91&type=chunk) [Management Discussion and Analysis](index=44&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's financial performance, segment-specific reviews, liquidity, capital structure, and future outlook [Overall Financial Review](index=44&type=section&id=Overall%20Financial%20Review) Total revenue grew 83.1% to HKD 403 million, but profit declined 83.6% to HKD 57.1 million due to investment losses and higher finance costs - Revenue growth of **83.1%** was primarily driven by the environmental segment's revenue increasing from **HKD 114 million** to **HKD 292 million**, and the financial services segment's revenue increasing from **HKD 5 million** to **HKD 14 million**[102](index=102&type=chunk) - The **83.6%** decline in profit was mainly due to: - Losses of approximately **HKD 82.5 million** from the disposal of listed securities investments - An increase in finance costs of approximately **HKD 118 million** - A net decrease in exchange gains of approximately **HKD 145 million**[102](index=102&type=chunk) [Financial and Business Review of Each Segment](index=45&type=section&id=Financial%20and%20Business%20Review%20of%20Each%20Segment) The environmental segment became the main revenue driver with significant growth, while financial services also surged due to acquisitions, and property investment saw fair value gains despite lower rental income - **Environmental Segment**: Revenue increased by **156.7%** year-on-year to **HKD 292 million**, with operating profit growing **285.0%** to **HKD 42.9 million**. This growth was primarily due to shifting operations to Malaysia and Japan in response to China's waste import policies[103](index=103&type=chunk) - **Auto Parts Segment**: Revenue increased by **9.2%** year-on-year to **HKD 50.7 million**, and profit grew from **HKD 0.1 million** to **HKD 5.4 million**, mainly due to increased wholesale sales and improved credit control[104](index=104&type=chunk) - **Commercial Printing Segment**: Revenue decreased by **9.3%** year-on-year to **HKD 40.7 million**, and operating profit fell from **HKD 2.1 million** to **HKD 0.7 million**, primarily impacted by negative capital market sentiment[105](index=105&type=chunk) - **Financial Services Segment**: Revenue increased by **182.3%** year-on-year to **HKD 14 million**, and operating profit grew from **HKD 0.4 million** to **HKD 1.3 million**, mainly benefiting from revenue consolidation after the acquisition of Grand Ascent Finance[106](index=106&type=chunk) - **Property Investment Segment**: Rental income decreased from **HKD 9.8 million** to **HKD 5.7 million** due to the termination of the Xikeng property lease for urban redevelopment. Segment profit was **HKD 305 million**, primarily from fair value gains on investment properties[108](index=108&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=47&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group's financial position is sound with HKD 987 million in cash, but total interest-bearing borrowings reached HKD 8.99 billion, resulting in a high gearing ratio of 365.8% Key Capital Structure Indicators | Indicator | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Bank Balances and Cash (HKD) | 987 million | 897 million | | Interest-bearing Borrowings (HKD) | 8.99 billion | 7.67 billion | | Gearing Ratio | 365.8% | 266.6% | [Review and Outlook](index=48&type=section&id=Review%20and%20Outlook) Management is optimistic about the diversified business, with environmental and financial services segments poised for growth, and property investment advancing urban renewal projects - **Environmental Segment**: Operations in Malaysia and Japan are expected to be key growth drivers, with plans to commence local sales in Japan[114](index=114&type=chunk) - **Financial Services Segment**: The acquisition of Grand Ascent Finance strengthened Hong Kong operations, while an application is underway with the CSRC to establish a securities company in Guangzhou[116](index=116&type=chunk)[117](index=117&type=chunk) - **Property Investment Segment**: Optimistic about the property markets in Shenzhen's Guanlan and Guangming districts. The urban renewal project for Xikeng property is expected to be approved in H2 2019[119](index=119&type=chunk)[121](index=121&type=chunk) [Shareholder and Corporate Governance Information](index=50&type=section&id=Shareholder%20and%20Corporate%20Governance%20Information) This section details information regarding dividends, directors' and substantial shareholders' interests, and the company's corporate governance practices [Dividend](index=50&type=section&id=Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2019 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2019 (H1 2018: nil)[121](index=121&type=chunk) [Directors' and Chief Executive's Interests](index=51&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) Chairman Dr. Lam Hiu Fung holds 74.62% of the company's shares through Merryland Holdings Limited, with his spouse also deemed to have the same interest Major Directors' Shareholding | Director's Name | Capacity | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Dr. Lam Hiu Fung | Corporate Interest | 1,073,160,000 | 74.62% | | Ms. So Kiu Wah | Spouse's Interest | 1,073,160,000 | 74.62% | [Substantial Shareholders](index=52&type=section&id=Substantial%20Shareholders) Merryland Holdings Limited is the sole substantial shareholder, beneficially owning 74.62% of the issued share capital - Merryland Holdings Limited holds **1,073,160,000 shares**, representing **74.62%** of the issued share capital, making it the controlling shareholder of the company[126](index=126&type=chunk) [Corporate Governance](index=55&type=section&id=Corporate%20Governance) The company maintains high corporate governance standards, complying with Listing Rules, and its Audit Committee has reviewed the interim results - For the six months ended June 30, 2019, the company consistently complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules[131](index=131&type=chunk) - The Audit Committee, comprising three independent non-executive Directors, has reviewed the unaudited interim results for the six months ended June 30, 2019, in conjunction with management[133](index=133&type=chunk)

Financial Performance - The total revenue for the year ended December 31, 2018, was approximately HKD 811 million, an increase from HKD 763 million in 2017[5]. - The profit attributable to equity holders was approximately HKD 363.3 million, with a basic earnings per share of HKD 0.2689 based on a weighted average of 1,350,887,946 shares[7]. - The profit margin from environmental classification increased from 9.4% to 15.9% during the year[7]. - Operating profit for the year was HKD 979.9 million, significantly higher than HKD 197.1 million in 2017[5]. - The total dividend for the year was zero, consistent with the previous year[8]. - The company reported a net profit of approximately HKD 383,711,000, representing a significant increase of 244.5% compared to HKD 111,221,000 in 2017[169]. - Basic earnings per share for 2018 were HKD 26.89, compared to HKD 8.11 in 2017, reflecting a growth of 231.1%[167]. - The company reported a substantial increase in reserves to HKD 2,734,877 thousand in 2018, compared to HKD 955,317 thousand in 2017, reflecting strong profitability[173]. Assets and Liabilities - The total assets as of December 31, 2018, amounted to HKD 11,421.7 million, compared to HKD 2,175.5 million in 2017[6]. - Total liabilities were HKD 8,489.2 million, up from HKD 1,071.5 million in the previous year[6]. - The net asset value increased to HKD 2,932.4 million from HKD 1,104.0 million in 2017[6]. - Non-current assets increased significantly to HKD 9,409,334 thousand in 2018 from HKD 1,513,429 thousand in 2017, primarily driven by investment properties[171]. - Current liabilities increased to HKD 933,835 thousand in 2018, compared to HKD 461,501 thousand in 2017, indicating higher trade payables and bank borrowings[171]. - The company's total liabilities increased significantly, with bank borrowings rising to HKD 2,668,773,000 from HKD 204,805,000 in the previous year, reflecting increased leverage for growth initiatives[180]. Investments and Acquisitions - The company agreed to acquire 10% equity in a securities company in Guangzhou for RMB 350 million, pending regulatory approval[8]. - The company completed the acquisition of a Hong Kong-registered company licensed for regulated activities, enhancing its financial services portfolio[9]. - The company completed the acquisition of Realord Ventures Limited, enhancing its property investment business and expected to generate stable rental income[10]. - The company acquired 100% equity of Realord Ventures Limited and Manureen Ventures Limited for RMB 5,854,995,000 (approximately HKD 7,323,176,000) on April 19, 2018, constituting a related party transaction[71]. - The company also entered into an agreement to acquire 60% equity of Chuangyue Financing Limited for HKD 96,000,000 on December 27, 2018, which is also classified as a related party transaction[71]. Revenue Segments - Revenue from the automotive parts segment increased by 46.3% to approximately HKD 127,100,000, attributed to significant growth in the Guangzhou operations[17]. - The commercial printing segment recorded a revenue increase of 17.6% to approximately HKD 82,400,000, driven by multiple IPO projects and acquisitions[16]. - The environmental segment generated revenue of approximately HKD 570,800,000, accounting for 70.4% of total revenue, with a slight decline due to new government regulations[20]. - The financial services segment reported stable revenue of approximately HKD 10,300,000, but incurred an operating loss of HKD 20,300,000 due to impairment provisions[18]. - The property investment segment's revenue decreased by 3.3% to approximately HKD 19,500,000, but the fair value gain from investment properties increased significantly to approximately HKD 671,400,000[21]. Corporate Governance - The board of directors includes three executive directors and three independent non-executive directors[57]. - The company confirmed compliance with the Corporate Governance Code throughout the year ending December 31, 2018[73]. - Deloitte Touche Tohmatsu will be proposed for reappointment as the company's independent auditor at the upcoming annual general meeting[72]. - The audit committee held two meetings during the year ended December 31, 2018, with full attendance from its three independent non-executive directors[84]. - The company has committed to maintaining effective communication with shareholders through various channels, including annual general meetings and timely performance announcements[94]. Environmental and Social Responsibility - The company emphasizes compliance with environmental regulations and has not identified any significant non-compliance issues[43]. - The company has implemented various energy-saving measures and promotes recycling to protect the environment[49]. - The company aims to phase out traditional diesel vehicles in favor of electric vehicles to achieve zero emissions on the road[102]. - The company generated zero hazardous waste in 2018, compared to 0.33 tons in 2017, achieving a 100% reduction[112]. - The group donated HKD 10 million to support pediatric cardiac research, demonstrating commitment to community investment[151]. Employee and Workforce Management - The total number of employees increased from 63 in 2017 to 176 in 2018, marking a growth of 179.4%[112]. - The group has implemented a comprehensive benefits package for all employees, including medical insurance and training subsidies[128]. - The group has a strict anti-discrimination policy in hiring, promotion, and other employment practices to promote diversity[127]. - The group provides personal protective equipment to frontline employees, including dust masks and noise-canceling earplugs[131]. - The percentage of employees receiving training in 2018 was 100% for both male and female employees in Shenzhen and Guangxi, compared to 32.7% and 67.3% respectively in 2017 for males and females in Shenzhen[136].