Wealth Management and Financial Services - The Group has become one of the most trusted partners in wealth management and financial planning in Hong Kong, holding licenses for comprehensive financial services including securities and futures trading, corporate finance, and asset management[5]. - The Group aims to provide all-rounded quality products and services to maximize returns for shareholders while contributing to societal well-being[12]. - The Group is actively seeking local and overseas partners to promote overall development in response to challenges in the business environment[12]. Property Investment and Development - The property investment and development segment has been rapidly expanding, engaging in multiple projects across Hong Kong and major cities in the PRC, including residential buildings and shopping malls[6]. - The Group is committed to exploring quality property projects in the Greater Bay Area to increase land reserves for future development[6]. - The Group disposed of certain investment properties with a carrying amount of approximately HK$20,747,000 during the six months ended 30 June 2021, compared to nil in 2020[138]. Financial Performance Highlights - Revenue for the six months ended June 30, 2021, was HK$3,973.5 million, a 48.0% increase from HK$2,684.1 million in the same period of 2020[29]. - Gross profit for the same period was HK$354.3 million, up 45.8% from HK$243.2 million year-on-year[29]. - EBITDA reached HK$497.1 million, significantly higher than HK$57.7 million in the previous year, marking an increase of 760.0%[29]. - Profit attributable to owners of the Company was HK$170.1 million, up 62.1% from HK$104.9 million in 2020[29]. - The company reported a profit for the period, contributing to the overall increase in retained earnings[54]. Assets and Liabilities - Total assets as of June 30, 2021, were HK$37,033.1 million, an increase of 11.5% from HK$33,124.2 million at the end of 2020[29]. - Total liabilities rose to HK$25,566,970, compared to HK$22,262,087 at the end of 2020, representing an increase of approximately 14.3%[50]. - Net assets increased to HK$11,466.1 million, up 5.6% from HK$10,862.1 million at the end of 2020[29]. Cash Flow and Financing Activities - Cash and cash equivalents were HK$1,624.1 million, a decrease of 6.0% from HK$1,724.7 million at the end of 2020[29]. - Net cash used in operating activities was HK$32,557, significantly improved from HK$1,089,010 in the prior year[63]. - The company generated HK$326,898 from financing activities, a decrease from HK$1,145,490 in the same period of 2020[65]. Segment Performance - The Automation segment generated revenue of HK$470,304,000, while the Financial Services segment contributed HK$139,153,000, and the Property Investment and Development segment brought in HK$454,469,000[89]. - The total segment results amounted to HK$449,054,000, with the Automation segment reporting a profit of HK$28,404,000 and the Financial Services segment showing a profit of HK$77,338,000[89]. - The company is focused on strategic decisions based on the performance of its operating segments, which include Automation, Financial Services, Property Investment and Development, Securities Investment, Trading of Commodities, Yacht Club, Training, and Others[86]. Accounting and Financial Reporting - The interim condensed consolidated financial statements for the six months ended 30 June 2021 have been prepared in accordance with HKAS 34, with figures presented in thousands of Hong Kong dollars[70]. - The adoption of new HKFRSs has no material impact on the Group's interim condensed consolidated financial statements[79]. - The management's significant judgements and estimates in applying accounting policies remain consistent with those used in the consolidated financial statements for the year ended 31 December 2020[80]. Investments and Fair Value - The company reported a fair value gain on investment properties of HK$346,276, compared to a loss of HK$407,401 in 2020[43]. - The fair value of listed equity securities in Norway decreased to HK$26,087,000 from HK$36,825,000, while those in the United States increased to HK$11,280,000 from HK$10,482,000[149]. - The Group considers its equity investments to be strategic in nature, with changes in fair value recognized in other comprehensive income[150][151]. Employee and Operational Expenses - Employee benefit expenses rose to HK$109,949,000, compared to HK$82,449,000 in the previous year, reflecting a significant increase of approximately 33.6%[121]. - Distribution costs increased to HK$59,690, up from HK$42,571 in the previous year, reflecting higher operational expenses[43]. - The total accrued operating expenses decreased to HK$95,082,000 as of June 30, 2021, down from HK$103,422,000 as of December 31, 2020, reflecting a decline of approximately 8.5%[184].

ANNUAL REPORT 2020 年報 GLORY SUN FINANCIAL GROUP LIMITED 寶新金融集團有限公司 (Stock Code 股份代號 : 01282) (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） 2020 ANNUAL REPORT 年 報 http://www.hk1282.com 0.02 5 96 12.26 18.32 2.56 -1,15 0 1.01 1.84 a 230 0.50 0.44 182 4.74 1.83 363 e 0.18 400 0.57 0 10 1.53 3.00 78 0.80 1.13 0.10 0.95 4.04 0.02 66 2.08 0.33 n 93 0 GLORY SUN FINANCIAL GROUP LIMITED 寶新金融集團有限公司 CORPORATE PROFILE 公司簡介 Glory Sun Financial Group Limited (the "Company") was established ...

Revenue and Profitability - Revenue for the six months ended June 30, 2020, was HKD 2,684.1 million, an increase from HKD 1,999.0 million in the same period of 2019, representing a growth of approximately 34.3%[14] - Gross profit for the same period was HKD 243.2 million, compared to HKD 69.4 million in 2019, indicating a significant increase of approximately 250.4%[14] - Profit attributable to owners of the company was HKD 104.9 million, down from HKD 370.4 million in 2019, a decrease of approximately 71.6%[14] - Basic and diluted earnings per share were HKD 0.35, compared to HKD 1.40 in the previous year, a decline of approximately 75%[14] - The company incurred a loss from continuing operations of HKD 62,613 thousand for the six months ended June 30, 2020, a decline from a profit of HKD 423,382 thousand in the prior year[23] - The total comprehensive loss for the period was HKD 566,994 thousand, compared to a total comprehensive income of HKD 53,595 thousand in the same period of 2019[26] Financial Position - Total assets as of June 30, 2020, were HKD 29,326.1 million, slightly down from HKD 29,439.1 million at the end of 2019[14] - Net asset value decreased to HKD 10,596.6 million from HKD 10,761.3 million, a decline of approximately 1.5%[14] - Cash and cash equivalents were HKD 1,189.0 million, down from HKD 1,313.6 million, a decrease of approximately 9.5%[14] - Current ratio improved to 1.6 from 1.3, indicating better short-term financial health[14] - The company's net asset value as of June 30, 2020, was HKD 10,596,623 thousand, down from HKD 10,761,271 thousand at the end of 2019[32] - The total liabilities increased to HKD 10,596,623 thousand as of June 30, 2020, compared to HKD 10,761,271 thousand at the end of the previous reporting period[37] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2020, was HKD (1,089,010) thousand, compared to HKD (1,711,711) thousand for the same period in 2019, indicating an improvement of approximately 36.4%[40] - The financing activities generated a net cash inflow of HKD 1,145,490 thousand for the six months ended June 30, 2020, compared to HKD 2,697,442 thousand in the same period of 2019, representing a decline of about 57.5%[43] - The company raised HKD 400,000 thousand through the issuance of new shares during the reporting period[43] - The total borrowings amounted to HKD 9,782,834,000, an increase from HKD 6,190,104,000 as of December 31, 2019, representing a growth of approximately 58.5%[163] Segment Performance - The company reported a loss before tax of HKD 128,928,000, primarily driven by losses in the yacht club segment of HKD 97,541,000[91] - The segment performance showed a loss in the yacht club segment of HKD 97,541,000, indicating challenges in that area[91] - The company has ongoing investments in development properties, totaling HKD 7,871,269 thousand, reflecting its commitment to market expansion[29] Impairments and Losses - The group experienced a significant impairment loss of approximately HKD 131,168,000 related to intangible assets in the yacht club and education segments due to the impact of COVID-19[77] - The group recognized impairment losses of approximately HKD 131,168,000 on other intangible assets due to significant declines in service demand caused by the COVID-19 pandemic[130] Acquisitions and Investments - The company completed the acquisition of Shenzhen Baoneng Hengchuang Industrial Co., Ltd. for a total consideration of RMB 300 million (approximately HKD 333.9 million) on December 24, 2019[50] - The identifiable assets and liabilities of the acquired subsidiary, Baoxin Land Group, had a total fair value of HKD 3,851,512,000 as of the acquisition date[193] - Baoxin Land Group contributed approximately HKD 1,518,674,000 in revenue and HKD 80,349,000 in profit to the group during the period from the acquisition date to the end of the reporting period[196] Market Conditions and Future Outlook - The group’s financial performance is subject to variability due to consumer behavior changes and discretionary spending recovery post-COVID-19[76] - The group continues to face challenges in estimating future cash flows due to the ongoing uncertainties related to the pandemic[81] - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[91]

Property Investment and Development - Glory Sun Financial Group reported a significant expansion in property investment and development, operating multiple projects across major cities in Hong Kong and China, including residential buildings and shopping centers[5]. - The group aims to increase its land reserves in the Greater Bay Area to support future development opportunities[5]. - The property investment and development segment has seen rapid growth, with ongoing projects in key cities like Shenzhen and Shantou, aiming for significant sales revenue increases[64]. - The Shantou Times Bay project, with over 1 million square meters of total construction area, has achieved strong sales performance since its launch in June 2019[71]. - The company successfully acquired two real estate projects in Nanning, covering a total area of 850,000 square meters, positioning it as a leading financial commercial street in the Wuxiang New District[74]. - In Ganzhou, the company launched the Baoneng City project, achieving a high sales completion rate of 29.6% with 425 out of 1,437 parking spaces sold, marking a record in the local real estate market[75]. - The company continues to explore quality project reserves in Shenzhen, which is a core city for its property development business[70]. - The group is actively involved in multiple property projects in China, with notable contributions from projects such as Nanning Wuxiang Lake No. 1 and Shantou Baoneng City Garden[97]. - The group holds major investment properties, including the Baoneng Technology Park with a total area of 426,878 square meters, expected to be completed by 2055[109]. - The group’s commercial and residential projects in Jiangxi Province are fully completed, contributing to its overall property portfolio[100]. - The group aims to expand its market presence through strategic property investments and developments in key regions of China[97]. Financial Performance - Total revenue for the year reached approximately HKD 10,887.8 million, with a gross profit of HKD 1,953.7 million, resulting in a gross margin of 18%[28]. - EBITDA for the year was HKD 1,930.4 million, while EBIT stood at HKD 1,851.5 million, reflecting an operating profit margin of 17%[28]. - Net profit attributable to shareholders was HKD 684.3 million, with a net profit margin of 9%[28]. - The financial summary for the year ending December 31, 2019, indicates a focus on comprehensive financial services, including securities and futures trading, corporate finance, and asset management[5]. - The financial services segment generated revenue of approximately HKD 175.4 million, a decrease of 1.9% year-on-year, accounting for 1.6% of total revenue[96]. - The property investment and development segment contributed approximately HKD 5,063.1 million in revenue, representing 46.5% of total revenue, with a significant increase from HKD 706.6 million in 2018[97]. - Operating profit for the property investment and development segment was approximately HKD 1,717.6 million, up from HKD 468.7 million in 2018[97]. - The group recorded revenue of approximately HKD 10,887.8 million for the year ended December 31, 2019, an increase of 634.1% compared to 2018[95]. - Profit attributable to the owners of the company was approximately HKD 684.3 million, a 2% increase from 2018[95]. - The gross profit rose by 282.0% to approximately HKD 1,953.7 million, while the gross margin decreased to 17.9% from 34.5% in 2018[139]. Strategic Initiatives - The company is committed to leveraging opportunities arising from "Made in China 2025" and the 5G market development[5]. - Future strategies include seeking local and overseas partnerships to promote comprehensive development amid a challenging business environment[5]. - The company plans to leverage its geographical advantages in Hong Kong and mainland China to capture business opportunities arising from national strategies like the Belt and Road Initiative[45]. - The company aims to continue stable growth in its core business despite the complex domestic and international business landscape[45]. - The company is committed to enhancing shareholder returns through strategic initiatives and government support[45]. - The company aims to leverage the Greater Bay Area's regional synergies to better serve clients and capture market opportunities in 2020[51]. Financial Services and Wealth Management - The financial services business is a core focus for the company, holding licenses for various regulated activities including securities trading and asset management[48]. - The company has established itself as a trusted partner in wealth management and financial planning in Hong Kong[5]. - The company maintains a diversified wealth management service portfolio, collaborating with over 30 international financial institutions[58]. - The asset management team will focus on macroeconomic analysis to identify investment opportunities amid tightening regulations and fundraising challenges[57]. Automation and Technology - Glory Sun Financial Group's ongoing efforts in automation and technology development are aimed at capitalizing on market trends and enhancing operational efficiency[5]. - The automation segment's revenue increased by 11.8% to approximately HKD 634.2 million, accounting for 5.8% of the total revenue[120]. - Operating profit for the automation segment rose by 18.1% to approximately HKD 54.8 million, driven by increased demand for surface mount technology equipment due to the large-scale commercial application of 5G technology[120]. - The automation business has been a key distributor of surface mount technology machines since 2012, focusing on increasing market share amid rising demand for 5G components[81]. Financial Risks and Management - The group faces various financial risks, including market, liquidity, and credit risks, particularly due to the recent depreciation of the RMB and interest rate cycles, which may significantly impact its financial condition and operating performance in China[171]. - The group closely monitors its foreign exchange exposure and allocates its holdings in different currencies to minimize foreign exchange risks[171]. - The group emphasizes the importance of liquidity management by monitoring cash flow and maintaining sufficient cash levels and credit lines to finance its operations and reduce cash flow volatility[171]. - The group is committed to enhancing credit assessments for new customers and continues to monitor existing customers to improve risk control measures[172]. Corporate Governance and Management - The company has undergone changes in its board members, including the appointment of new independent non-executive directors and changes in executive roles[195]. - The company’s independent non-executive directors have extensive experience in finance and law, enhancing the overall financial oversight and management[194]. - The company’s Chief Financial Officer has nearly 20 years of experience in auditing, professional accounting, and financial management[191]. - The company’s independent non-executive directors include members with significant academic and professional qualifications, contributing to strategic decision-making[193]. Shareholder Information - The company reported no dividend payment for the year ended December 31, 2019, compared to a final dividend of HKD 0.20 per share for 2018[199]. - The net proceeds from the issuance of 2,400,000,000 new shares in December 2019 amounted to approximately HKD 599.4 million[161]. - The planned allocation of the funds raised includes HKD 130.0 million for brokerage and corporate finance services, HKD 80.0 million for asset management business expansion, and HKD 250.0 million for lending business expansion[162].

Revenue and Profitability - Revenue for the six months ended June 30, 2019, was HKD 2,012.6 million, a significant increase from HKD 914.0 million in the same period of 2018, representing a growth of 120%[20] - Net profit for the period was HKD 458.2 million, compared to HKD 263.5 million in the previous year, reflecting a year-on-year increase of 74%[20] - The company's EBITDA for the first half of 2019 was HKD 626.9 million, up from HKD 359.4 million in 2018, marking a growth of 74%[20] - Basic earnings per share for the first half of 2019 were HKD 1.42, compared to HKD 0.94 in the same period of 2018, reflecting a growth of 51%[20] - Operating profit for the same period was HKD 535,050 thousand, compared to HKD 349,794 thousand in 2018, reflecting a year-over-year increase of 53%[34] - Profit attributable to owners of the company from continuing operations was HKD 332,260 thousand, up from HKD 243,673 thousand in the previous year, marking a growth of 36.5%[34] Financial Position - The total assets of the company as of June 30, 2019, amounted to HKD 27,662.9 million, compared to HKD 10,781.2 million at the end of 2018, indicating a substantial increase of 156%[20] - The company's net asset value reached HKD 11,023.2 million, up from HKD 6,964.8 million in December 2018, representing a growth of 58.8%[20] - The debt level increased to HKD 9,891.7 million from HKD 1,686.4 million, resulting in a significant rise in the debt-to-equity ratio to 89.7%[20] - Total liabilities amounted to HKD 16,639,650 thousand, compared to HKD 3,816,423 thousand, reflecting a growth of 336.5%[46] - The company's total equity reached HKD 11,023,235 thousand, up from HKD 6,964,754 thousand, indicating an increase of 58.7%[46] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2019, was a net outflow of HKD 1,786,777 thousand, significantly higher than the outflow of HKD 611,365 thousand in the previous year, indicating increased cash usage[56] - The company raised HKD 5,104,526 thousand through bank borrowings and other loans during the financing activities, a substantial increase from HKD 1,397,214 thousand in the same period last year[59] - The net cash inflow from investing activities was HKD 579,735 thousand, a recovery from a net outflow of HKD 2,232,079 thousand in the previous year, reflecting improved investment management[56] - The company incurred a cash outflow of HKD 14,556 thousand for the acquisition of property, plant, and equipment, compared to HKD 5,692 thousand in the previous year, showing increased capital expenditure[56] Segment Performance - The group operates in multiple segments, including automation, financial services, manufacturing, property investment and development, securities investment, and online gaming services[114] - Total revenue for the six months ended June 30, 2019, was HKD 2,012,644,000, with a significant contribution from online gaming services at HKD 336,644,000[117] - Operating profit for the same period was HKD 154,758,000, with notable losses in the manufacturing segment amounting to HKD 28,813,000[117] - The financial services segment reported revenue of HKD 103,079,000, contributing to the overall performance despite a challenging environment[117] Accounting Standards and Changes - The group adopted the new Hong Kong Financial Reporting Standard No. 16 on leases, effective from January 1, 2019, which introduces a single accounting model for lessees[72] - The new definition of leases focuses on the assessment of control over the identified asset, impacting how leases are recognized in financial statements[76] - The group capitalizes all leases except for short-term leases and low-value asset leases, which were previously classified as operating leases under the old standard[77] - The adoption of the new standards did not have a significant impact on the interim financial information, except as noted[70] Challenges and Future Outlook - The gross profit margin decreased to 2.7% from 35.3% year-on-year, indicating a shift in profitability dynamics[20] - The operating profit margin also declined to 26.6% from 38.3%, suggesting challenges in maintaining operational efficiency[20] - Future outlook includes continued focus on market expansion and new product development to drive growth in various segments[118]

Strategic Transformation and Business Development - China Goldjoy Group reported a strategic transformation in 2015, successfully expanding its manufacturing business by producing LED products and developing new energy initiatives[5] - The company has been actively acquiring quality properties in Hong Kong and China since 2017, contributing to stable income and growth in property investment and development[5] - Future strategies include optimizing business structure and seizing opportunities in emerging industries, while actively seeking local and overseas partners for comprehensive development[5] - The company aims to enhance its overall development through strategic partnerships and market expansion initiatives[5] - The company plans to expand into the clean energy and financial services sectors through a joint venture with Cloud Energy International Investment Limited[124] Financial Performance - The company reported a revenue of HKD 1,582.6 million for 2018, a decrease of 44% compared to HKD 2,825.3 million in 2017[26] - Gross profit for 2018 was HKD 519.4 million, with a gross margin of 33%, up from 31% in 2017[26] - The net profit attributable to shareholders was HKD 670.8 million, down from HKD 869.2 million in the previous year, representing a decline of 23%[26] - The company’s total assets amounted to HKD 10,781.2 million, while net assets were HKD 6,964.8 million[26] - The company’s debt-to-equity ratio increased to 24.2% in 2018 from 8.1% in 2017[26] - The interest coverage ratio significantly decreased to 11.2 from 53.3 in the previous year, indicating reduced ability to cover interest expenses[26] - The current ratio dropped to 1.4 in 2018 from 2.4 in 2017, indicating a decline in short-term financial health[26] - Profit attributable to owners decreased to approximately HKD 670.8 million, a year-on-year decline of 22.8% from HKD 869.2 million in 2017, including one-time negative goodwill adjustments totaling approximately HKD 388.9 million[137] Financial Services and Investments - The financial services division offers comprehensive financial services, including securities and futures trading, as well as asset management licenses in Hong Kong and mainland China[5] - The company plans to enhance its investment banking business and expand corporate financing in 2019[46] - A strategic investor was introduced in June 2018 to help expand the shareholder base and enhance advisory services[46] - The company aims to focus on the high-net-worth client segment through its financial services platform[46] - The financial services segment showed a positive performance, contributing 11.3% to total revenue, up from 5.2% in 2017[126] - The group has established partnerships with over 30 international financial institutions to provide a diverse range of financial products and services[69] - The asset management business of the group has seen significant growth, with assets under management (AUM) reaching approximately HKD 1,467 million, an increase of 188.8% from HKD 508 million in 2017[68] Automation and Manufacturing - The automation division has engaged in distribution services, providing advanced automation equipment to manufacturers in China since its listing in 2010[4] - The company plans to expand its automation business services to capture high-profit leasing opportunities in the high-tech distribution and service sectors[53] - The automation division's sales revenue decreased by 7.5% to HKD 567.1 million in 2018, accounting for approximately 35.8% of the group's total revenue[88] - Operating profit for the automation division increased by 35.7% to approximately HKD 46.4 million in 2018[88] - Manufacturing business revenue was approximately HKD 99.3 million in 2018, representing 6.3% of the group's total revenue, down from 4.3% in 2017[92] Property Investment and Development - Revenue from property investment and development was approximately HKD 706.6 million, accounting for about 44.7% of total revenue, down from 50.0% in 2017[77] - The group continues to seek suitable investment projects in major cities and potential areas in China for property investment and development[79] - The Shenzhen Bangkai property project is being developed in three phases, with the first phase covering approximately 100,000 square meters and a rental rate of 92% as of December 31, 2018[78] - The group is optimistic about the real estate market's stable growth, supported by market demand, despite strict regulatory policies from the Chinese government[167] Challenges and Risks - The group is facing various financial risks, including market, liquidity, and credit risks, which could significantly impact its financial condition and operating performance[157] - The group has experienced a gradual depreciation of the Renminbi, which may adversely affect its gross profit margin[157] - The group anticipates continued economic slowdown in both global and Chinese markets in 2019, but expects improvement in the Chinese economy due to recent economic policies and easing trade tensions[162] Management and Governance - Zhang Chi appointed as executive director since July 13, 2017, with experience in fund investment and management[183] - Chen Kaibin appointed as non-executive director on November 1, 2018, with extensive experience in logistics, securities, and financing[184] - Wang Zhenbang has served as an independent non-executive director since November 28, 2009, enhancing financial monitoring and management[187] - Li Guoan, appointed as independent non-executive director on November 28, 2009, holds multiple degrees from UK universities and is a chartered engineer[188] - He Jiayao appointed as Chief Financial Officer and Company Secretary on December 12, 2018, with nearly 20 years of experience in auditing and financial management[192] Future Outlook - The management anticipates leveraging market trends and emerging industries for future growth[5] - The group maintains an optimistic outlook for its development prospects, supported by a diversified and robust development strategy[57] - The company anticipates rapid development opportunities in the 5G era, leveraging established partnerships and system integration capabilities[170] - The company plans to regularly review its investment portfolio to reduce volatility and increase returns, focusing on innovative technology industries[171]