Revenue and Financial Performance - For the six months ended June 30, 2020, the revenue from hotel operations was HK$11,666,321, representing a decrease of approximately 34.4% compared to HK$17,773,701 for the same period last financial year[21]. - The decrease in revenue was primarily due to the COVID-19 pandemic, which affected the hotel and tourism industries due to social distancing policies and travel restrictions[21]. - The Group experienced a total comprehensive loss of HK$11,231,144 for the six months ended June 30, 2020, representing an increase of approximately 4.5% from a loss of HK$10,751,256 in the previous year[50]. - Total revenue for the six months ended June 30, 2020, was HK$11,666,321, down 34.5% from HK$17,773,701 in 2019[148]. - The Group incurred a loss of HK$11,004,136 for the six months ended 30 June 2020, compared to a loss of HK$10,744,545 for the same period in 2019, indicating a year-over-year increase in losses of approximately 2.4%[165]. - The total comprehensive loss for the period was HK$11,231,144, compared to HK$10,751,256 in 2019, indicating an increase of about 4.4%[150]. - Operating loss for the period was HK$8,313,647, compared to an operating loss of HK$7,794,876 in the previous year, reflecting a deterioration of approximately 6.6%[148]. - Basic and diluted loss per share for the period was HK$2.25, slightly improved from HK$2.39 in the same period of 2019[150]. Hotel Operations and Development - The Group operated 3 leased-and-operated hotels and had 2 hotels under development during the reporting period[19]. - The Group plans to provide capital to joint venture companies for hotel development in Chengdu and Wuhan, which is expected to add around 200 accommodation places[22]. - The Group is focusing on improving the performance of existing hotels and enhancing accommodation management and consultancy services through effective sales and marketing plans[25]. - The Group continues to enhance hotel facilities and implement staff performance programs to boost revenue and improve service quality[25]. - Revenue of Huizhou Hotel decreased during the first half of the year due to the Pandemic, but started to recover in Q2 2020 with the new "Staycation" trend[31]. - Nanshan Hotel's revenue decreased compared to the same period last year due to the Pandemic, prompting a review of marketing strategies and cooperation with tourism intermediaries[33]. - Baoan Hotel's occupancy rate showed an increasing trend in Q2 2020 despite revenue impact from the Pandemic, attributed to the benefits of a comprehensive renovation[39]. - Chengdu Hotel is under renovation and expected to commence operations between December 2020 and early 2021, despite delays caused by the Pandemic[42]. - Wuhan Hotel is also under renovation and anticipated to start operations in Q1 2021, with a total GFA of approximately 9,000 sq.m[43]. Financial Position and Liabilities - The Group's total liabilities exceeded its total assets by HK$7,604,258 as of June 30, 2020, with the Controlling Shareholder agreeing to provide ongoing financial support[69]. - The Group reported net current liabilities of HK$ (34,408,475) as of June 30, 2020, compared to HK$ (22,526,095) at the end of 2019, indicating a deterioration in liquidity[155]. - The Group's total liabilities exceeded its total assets by HK$7,604,258 as of June 30, 2020, raising concerns about the Group's ability to continue as a going concern[145]. - The Controlling Shareholder has agreed to provide adequate funds to meet the Group's liabilities as they fall due, ensuring continued operations[170]. Cost Management and Efficiency - Cost-saving measures have been implemented to lower corporate expenses and maximize the Group's benefits[26]. - The Group aims to optimize its overall hotel assets structure and improve efficiency by exploring various accommodation services in the PRC, Hong Kong, and overseas[22]. - The Group is actively seeking investment and enhancement opportunities to broaden its revenue base[22]. - Employee benefit expenses decreased by HK$1,553,353 or approximately 18.7% due to a reduction in headcount during the period[62]. Compliance and Governance - The Company did not recommend the payment of an interim dividend for the six months ended June 30, 2020, consistent with the previous year[86]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors throughout the period from January 1, 2020, to June 30, 2020[103]. - The Company complied with the Corporate Governance Code throughout the six months ended June 30, 2020[100]. - The Audit Committee reviewed the unaudited consolidated interim results for the six months ended June 30, 2020, and had no disagreements with the accounting treatments adopted[107]. Accounting and Financial Reporting - The interim financial information has been reviewed and is deemed to be prepared in accordance with HKAS 34 "Interim Financial Reporting" without material misstatement[140]. - The Group has early applied the Amendment to HKFRS 16 "COVID-19-Related Rent Concession" to address financial impacts related to the pandemic[185]. - The application of amendments to HKFRSs has had no material impact on the Group's financial positions and performance for the current and prior periods[186]. - The Group recognized changes in lease payments resulting from rent concessions of HK$726,576 in the profit or loss for the current interim period[191]. - The Group's financial statements reflect the impacts of the COVID-19 pandemic on its lease agreements[190]. Employee and Shareholder Information - As of June 30, 2020, the Group had 66 employees, a decrease from 84 employees as of December 31, 2019[89]. - As of June 30, 2020, Yuan Fuer holds 321,580,510 shares, representing 71.72% of the company's total shares issued, which amounts to 448,363,708 shares[116][125]. - Chen Hui has an interest in 35,740,071 shares, accounting for 7.97% of the total shares issued as of June 30, 2020[126]. - The company has no other directors or chief executives with interests or short positions in shares or debentures as of June 30, 2020[122][127].

Legend Strategy International Holdings Group Company Limited 材濬國際集團控股有限公司 (a company incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號 1355 LegendStrategy ｶ溶國際 ANNUAL REPORT 2019 年報 CONTENTS 目錄 董事及高級管理層之 履歷詳情 綜合損益及 其他全面收入表 2 CORPORATE INFORMATION 公司資料 5 CHAIRMAN'S STATEMENT 主席報告 8 MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 20 BIOGRAPHICAL DETAILS OF DIRECTORS AND SENIOR MANAGEMENT 23 CORPORATE GOVERNANCE REPORT 企業管治報告 43 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT ...

Stock Code 股份代號1355 www.legend-strategy.com LegendStrategy 朸濬國際 | --- | --- | --- | |-------|-------|-------| | | | | | | | | | | | | | | | | Legend Strategy International Holdings Group Company Limited (a company incorporated in the Cayman Islands with limited liability) 朸濬國際集團控股有限公司 CONTENTS 目錄 | --- | --- | --- | |-------|--------------------------------------------------------------------------------------|-------------------------------| | | | | | 2 | CORPORATE INFORMATION | 公司資料 | | 5 | MANAGEMENT DIS ...