香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示不會就本公告全部或任何部分內容而產 生或因依賴該等內容而引致的任何損失承擔任何責任。 Virtual Mind Holding Company Limited 1520 有關 截至二零二二年十二月三十一日止年度之年報 之補充公告 茲提述天機控股有限公司（「本公司」）於二零二三年四月二十八日刊發的截至二零二二年 十二月三十一日止年度的年報（「年報」）。本公告是年報的補充，應與年報一併閱讀。本 公司董事謹此根據香港聯合交易所有限公司證券上市規則第17.09(3)條的規定，就年報 「董事報告書」一節提供以下有關本公司購股權計劃的補充資料。 於年報日期（即二零二三年三月三十日），根據本公司購股權計劃可供發行的本公司股份 總數為29,176,737股，佔本公司已發行股份總數約1.46%。 承董事會命 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示不會就本公告全部或任何部分內容而產 生或因依賴該等內容而引致的任何損失承擔任何責任。 Virtual Mind Holding Company Limited 1520 有關 截至二零二二年十二月三十一日止年度之年報 之補充公告 茲提述由天機控股有限公司（「本公司」）於二零二三年四月二十八日刊發本公司截至二零 二二年十二月三十一日止年度的年報。本公司董事謹此就貸款融資業務的披露事項提供 以下補充資料。 於二零二二年十二月三十一日，本集團的應收貸款及利息結餘（扣除虧損撥備）約為 98,163,000港元（二零二一年：114,667,000港元），其中，應收本集團五大借款人款項合共 約44,586,000港元（二零二一年：37,425,000港元），佔本集團應收貸款及利息總額的45.4% （二零二一年：32.6%）。所有應收貸款的年利率介乎2.3%至24%（二零二一年：2.3%至 30%）。於二零二二年十二月三十一日，應收貸款的固定期限為3個月至60個月（二零二一 ...

Financial Performance - Revenue for 2022 was HK$89,620,000, a decrease of 36% from HK$139,818,000 in 2021[12] - Gross profit for 2022 was HK$14,060,000, down from HK$38,699,000 in 2021, representing a decline of 64%[12] - Loss before income tax increased to HK$58,403,000 in 2022 from HK$46,020,000 in 2021[12] - The Group's revenue decreased by 35.9% to approximately HK$89,620,000 in 2022, down from HK$139,818,000 in 2021[108] - Revenue from the apparel operation decreased by 42.5% to approximately HK$74,337,000 for the year ended 31 December 2022, accounting for 82.9% of the Group's total revenue[111] - The money lending operation's revenue increased by approximately 29.0% to HK$13,631,000 in 2022, up from HK$10,564,000 in 2021, representing 15.2% of the Group's total revenue[116] - Loss attributable to owners of the Company increased by 42.4% to approximately HK$65,895,000, driven by decreased revenue, impairment losses on money lending operations, and increased administrative expenses[168] Assets and Liabilities - Total assets as of December 31, 2022, were HK$288,373,000, an increase from HK$234,832,000 in 2021[14] - Total liabilities rose to HK$79,073,000 in 2022, compared to HK$38,575,000 in 2021[14] - Shareholders' equity increased to HK$208,432,000 in 2022 from HK$196,257,000 in 2021[14] - Loans and interest receivables (net of allowances) decreased by approximately 14.4%, from HK$114,667,000 as of December 31, 2021, to HK$98,163,000 as of December 31, 2022[117][120] - Trade receivables increased by 42.1% to approximately HK$39,065,000, with trade receivables turnover days rising from 72 to 159 days due to longer credit periods requested by customers[176] - Inventory increased by 9.1% to approximately HK$6,564,000, with inventory turnover days increasing from 22 to 32 days[175] Financial Ratios - The current ratio for 2022 was 4.42, slightly down from 4.87 in 2021[14] - The gearing ratio increased to approximately 15.0% as of December 31, 2022, from 4.1% in 2021[191] - The gross profit margin decreased from approximately 27.7% in 2021 to 15.7% in 2022[125][130] Acquisitions and Business Development - The company completed the acquisition of Dreamtoys Group, which focuses on trendy cultural products and has partnerships with a major gaming provider[20] - The Group completed the acquisition of DREAMTOYS INC. to enhance its product offerings in trendy cultural products[24] - The acquisition of Dreamtoys Inc. was completed on July 15, 2022, with a total consideration including HK$4,400,000 promissory note and 120,000,000 consideration shares[149] Management and Governance - Mr. Cheung has over 20 years of experience in banking and finance, managing a portfolio with assets over USD 300 million in the Greater China region[71] - Mr. Chan has extensive experience in international trading, sales, marketing, and business development in various industries since 1999[73] - Mr. Gong has over 13 years of experience at Tencent, where he held senior positions and received multiple awards for his contributions[78] - Mr. Hon has over 14 years of experience in corporate finance, mergers and acquisitions, and financial management in listed companies and financial institutions[87] - The company has a strong board with members holding various key positions in finance and law, enhancing corporate governance and strategic planning[79][81][85] - The company is committed to maintaining high standards of corporate governance and compliance, as evidenced by its board structure and committee memberships[81][87] Future Outlook - The Group expects economic activities to gradually return to normal in 2023, driven by domestic demand in Mainland China and Hong Kong[38] - The company anticipates a rebound in business in 2023, driven by the economic recovery in mainland China and Hong Kong[50] - The company plans to expand its apparel portfolio, focusing on sportswear and children's clothing, leveraging trend-related intellectual property[50] - The easing of regulatory pressure in the gaming sector presents new opportunities for the Group's gaming and animated character-related products[48] - The company aims to explore more business opportunities with established gaming platforms, capitalizing on the improved regulatory environment[51] Expenses and Financial Management - Administrative expenses increased by 49.4% to approximately HK$76,290,000 in 2022, compared to HK$51,070,000 in 2021, due to layoff expenses and increased share-based compensation[160] - Finance costs surged by 990.4% to approximately HK$3,991,000 in 2022, up from HK$366,000 in 2021, mainly due to interest expenses from convertible bonds[161] - Selling and distribution expenses decreased by 89.2% to approximately HK$1,865,000 in 2022, down from HK$17,197,000 in 2021, primarily due to a shift in target markets[159] Credit and Risk Management - The expected credit loss allowance on loans and interest receivables increased by 17.5% to approximately HK$21,196,000 for the year ended December 31, 2022[117][120] - Ongoing credit assessments and evaluations of customers' financial status are performed to reduce exposure to credit risk[200] - The Board closely monitors the Group's liquidity position to ensure it meets funding requirements[200]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Virtual Mind Holding Company Limited 天 機 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1520） 截至二零二二年十二月三十一日止年度的全年業績公告 財務概要 – 本集團截至二零二二年十二月三十一日止年度的收入約為89,620,000港元（二 零二一年：139,818,000港元），較去年減少約35.9%。 – 截至二零二二年十二月三十一日止年度，本公司擁有人應佔虧損約為 65,895,000港元（二零二一年：46,271,000港元），增加約42.4%。 ...

Revenue and Profitability - Revenue for the six months ended June 30, 2022, decreased by approximately 27.6% to approximately HK$23,224,000 compared to HK$32,081,000 in 2021[3]. - Gross profit increased by 155.8% to approximately HK$6,199,000, with the money lending operation earning gross profit of approximately HK$8,062,000, up from HK$5,451,000 in 2021[3]. - Loss attributable to owners of the Company for the period was approximately HK$40,992,000, an increase of approximately 99.7% from HK$20,522,000 in 2021[3]. - The apparel operation recorded a gross loss of approximately HK$1,863,000, improved from a loss of HK$3,028,000 in 2021[3]. - For the six months ended June 30, 2022, total revenue was HK$23,224,000, with HK$15,162,000 from apparel design, manufacturing, and trading, and HK$8,062,000 from money lending services[41]. - The segment loss before tax for the apparel segment was HK$10,250,000, while the money lending segment reported a loss of HK$7,395,000, resulting in a total loss before tax of HK$40,967,000[41]. - Revenue from the apparel operation decreased by approximately 43.1% to approximately HK$15,162,000 compared to HK$26,630,000 in 2021, significantly affected by reduced consumer activity[154]. - Revenue from the money lending operation increased by approximately 47.9% to approximately HK$8,062,000 compared to HK$5,451,000 in 2021[159]. Expenses and Losses - Administrative expenses increased significantly to HK$37,838,000 from HK$20,582,000 in 2021[7]. - Provision for expected credit loss on loans and interest receivables rose to HK$9,382,000 from HK$1,106,000 in 2021[7]. - Total comprehensive loss for the period was approximately HK$41,497,000, compared to HK$20,352,000 in 2021[10]. - Basic and diluted loss per share attributable to owners of the Company was HK(2.30) cents, compared to HK(1.21) cents in 2021[10]. - Selling and distribution expenses decreased by approximately 79.4% to HK$929,000 from HK$4,508,000 in 2021, mainly due to reduced transportation costs[171]. - Loss attributable to owners of the Company was approximately HK$40,992,000, an increase of approximately 99.7% from HK$20,522,000 in 2021, driven by decreased revenue from the apparel operation and increased provisions[175]. Cash Flow and Financial Position - For the six months ended June 30, 2022, the net cash used in operating activities was HK$26,346,000, a decrease from HK$54,961,000 in the same period of 2021[18]. - The net cash used in investing activities for the same period was HK$3,708,000, compared to HK$13,457,000 in 2021[18]. - The net cash generated from financing activities was HK$32,784,000, significantly higher than HK$5,054,000 in the previous year[18]. - Cash and cash equivalents at the end of the period increased to HK$17,879,000 from HK$15,087,000 in 2021[18]. - The company's cash and bank balances at the end of the period were HK$15,348,000, down from HK$78,547,000 at the beginning of the period[18]. - The current ratio improved to approximately 5.83 as of June 30, 2022, compared to 4.87 as of December 31, 2021[185]. - The total borrowings and lease liabilities amounted to approximately HKD 19,659,000 as of June 30, 2022, compared to HKD 7,954,000 as of December 31, 2021[188]. - The current margin loan payable decreased to HK$1,479,000 from HK$4,057,000 as of December 31, 2021, representing a reduction of approximately 63.6%[124]. Assets and Liabilities - Net assets decreased to HK$184,846,000 as of June 30, 2022, from HK$196,257,000 at the end of 2021[14]. - As of June 30, 2022, total assets amounted to HK$231,379,000, with segment assets of HK$46,567,000 for apparel and HK$176,028,000 for money lending services[44]. - The company experienced a significant increase in segment liabilities, with total liabilities reaching HK$46,533,000 as of June 30, 2022[44]. - Trade receivables as of 30 June 2022 amounted to HK$20,147,000, with an impairment loss of HK$435,000, resulting in a net trade receivable of HK$19,712,000[100][101]. - The total trade payables as of 30 June 2022 were HK$17,422,000, with significant amounts due within 0 to 30 days (HK$6,772,000) and 31 to 60 days (HK$2,807,000)[121]. - The Group's loans receivables as of 30 June 2022 were HK$151,953,000, with an impairment loss of HK$45,327,000, resulting in a net current loans receivable of HK$115,583,000[110][111]. Shareholder Information - The Board of Directors did not recommend the payment of any interim dividend for the reporting period[3]. - No dividends were paid or proposed during the six months ended June 30, 2022, consistent with the previous year[82]. - The total number of issued and fully paid ordinary shares increased to 1,790,267,378 as of June 30, 2022, up from 1,690,000,000 as of December 31, 2021[135]. - A total of 87,100,000 share options were granted at an exercise price of HK$0.278 per share, with an estimated fair value of approximately HK$8,638,000[140]. - Directors' emoluments increased significantly to HK$6,170,000 in 2022 from HK$2,245,000 in 2021, marking an increase of approximately 174.5%[139]. Compliance and Regulations - The financial statements are prepared in accordance with Hong Kong Accounting Standards 34, ensuring compliance with local regulations[26]. - The company has not indicated any major impact from the adoption of new and revised accounting standards on its interim financial statements[33]. - The Group did not incur any taxation under the British Virgin Islands and the Cayman Islands jurisdictions during the reporting period[77]. - The Hong Kong profits tax is calculated at a rate of 16.5%, with the first HK$2,000,000 of assessable profit taxed at 8.25%[79]. Market and Operational Insights - The company has not reported any significant changes in its business operations during the period[22]. - The company identified design, manufacturing, and trading of apparels and provision of money lending services as its reportable operating segments[36]. - The geographical location of external customers is based on their domicile, with a notable revenue contribution from Mainland China[60]. - Major customers contributing to over 10% of the group's revenue included Customer A with HK$5,666,000, Customer B with HK$3,219,000, and Customer C with HK$2,587,000[63].

Financial Performance - Revenue for 2021 was HK$139,818,000, an increase of 22.2% from HK$114,474,000 in 2020[13] - Gross profit for 2021 was HK$38,699,000, up from HK$24,957,000 in 2020, reflecting a gross margin improvement[13] - Loss before income tax was HK$46,020,000, a reduction from a loss of HK$67,038,000 in 2020[13] - The Group's revenue increased by 22.1% to approximately HK$139,818,000 for the reporting period, compared to HK$114,474,000 in 2020[67] - Revenue from apparel operations rose by 20.7% to approximately HK$129,254,000 for the year ended December 31, 2021, up from HK$107,053,000 in 2020[67] - Revenue from money lending operation increased by approximately 42.3% to approximately HK$10,564,000, accounting for 7.6% of total revenue[69] - The loss attributable to owners of the Company for the year ended 31 December 2021 was approximately HK$46,271,000, representing a decrease in loss of 32.1% compared to HK$68,115,000 in 2020[98] Assets and Liabilities - Total assets decreased to HK$234,832,000 in 2021 from HK$283,700,000 in 2020[13] - Shareholders' equity decreased to HK$196,257,000 in 2021 from HK$238,425,000 in 2020[13] - Current ratio for 2021 was 4.87, down from 5.27 in 2020, indicating a decrease in liquidity[13] - Loans and interest receivables (net of allowances) increased by approximately 5.4% to approximately HK$114,667,000[72] - The Group's inventories decreased by 49.7%, from approximately HK$11,971,000 as at 31 December 2020 to approximately HK$6,016,000 as at 31 December 2021[98] - Trade receivables increased by 43.6%, from approximately HK$19,136,000 as at 31 December 2020 to approximately HK$27,486,000 as at 31 December 2021[100] - Cash and bank balances amounted to approximately HK$15,348,000 as of December 31, 2021, down from HK$78,547,000 in 2020[108] - Total borrowing and lease liabilities increased to approximately HK$7,954,000 as of December 31, 2021, compared to HK$4,975,000 in 2020[108] Operational Efficiency - Inventory turnover days improved to 22 days in 2021 from 49 days in 2020[13] - Trade payables turnover days increased to 72 days in 2021 from 61 days in 2020[13] - Selling and distribution expenses increased by 5.7% to approximately HK$17,197,000, while as a percentage of revenue, these expenses decreased to 12.3% from 14.2%[93] - The Group's financial reporting is overseen by the chief financial officer, who has over 15 years of experience in professional accounting and corporate finance[66] Market and Economic Conditions - China's GDP grew by 8.1% year on year in December 2021, indicating significant economic growth[23] - The US GDP grew by 5.7% in 2021, supported by government fiscal measures and monetary policy[20] - Hong Kong's economy rebounded by 6.4% in 2021, driven by strong global demand and a consumption voucher scheme[24] - The company anticipates that the global economy will recover in 2022, but at a more moderate pace than in 2021 due to ongoing COVID-19 variant threats[34] - The rapid rise in global inflation in 2021 has created cost pressures on the company's product exports, shipping, and logistics activities[38] Strategic Initiatives - The Group plans to expand its apparel business by developing trendy products and diversifying into men's and young adults' markets[29] - The Group aims to enrich its product portfolio by seeking suitable intellectual property rights for apparel production[29] - The company plans to adjust its major women's clothing export business to better align with the Chinese market, expanding its apparel portfolio and entering the sportswear and children's wear markets[39] - The company aims to diversify its business income by exploring opportunities in trendy cultural products closely related to apparel, capitalizing on China's economic development[39] - Recent agreements have been signed by the company to explore further business opportunities in China[40] Corporate Governance - The Board comprises 8 Directors, including 3 independent non-executive Directors, all of whom have appropriate professional qualifications or expertise in accounting or related financial management[150] - The Company has received annual confirmations of independence from each independent non-executive Director, which the Board considers valid[150] - The positions of the chairman and the deputy chief executive officer are held by separate individuals to maintain effective segregation of duties[156] - The Board will continue to review and update its corporate governance practices to ensure compliance with legal and commercial standards[145] - The company emphasizes continuous professional development for directors to maintain informed contributions to the board[171] Management and Leadership - Mr. Li has over 20 years of experience in investment activities and business management, holding directorships in several companies listed on the Hong Kong Stock Exchange[46] - Ms. Tin has extensive experience in fashion apparel, trendy brand promotion, and information technology, having served as an executive director of Carnival Group International Holdings Limited from 2005 to 2011[48] - Mr. Cheung has over 20 years of experience in banking and finance, managing a portfolio with assets under management exceeding USD 300 million in the Greater China region[50] - Mr. Gong has over 13 years of experience at Tencent, where he held senior positions and received multiple awards for his contributions[53] - Mr. Tang is a practicing solicitor and a partner at a law firm with over 70 years of service in Hong Kong[56]

香港華信金融投資有限公司 CEFC HONG KONG FINANCIAL INVESTMENT COMPANY LIMITED （於開曼群島註冊成立之有限公司） (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code：1520 INTERIM REPORT o o o o 0 2021 中期報告 O C | --- | --- | |-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

香港華信金融投資有限公司 CEFC HONG KONG FINANCIAL INVESTMENT COMPANY LIMITED (於開曼群島註冊成立之有限公司) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code：1520 O O O O O ANNUAL REPORT 年報 O ○ Contents 目錄 | --- | --- | --- | |---------------------------------------------------------|--------------------------|--------| | | | Page | | Corporate Information | 公司資料 | 頁次 2 | | Financial Summary | 財務概要 | 5 | | Chairman's Statement | 主席報告書 | 6 | | Biographical Details of Directors and Senior Management | 董事及高級管理 ...

Revenue Performance - For the six months ended 30 June 2020, the Group's revenue decreased by approximately 50.9% to approximately HK$15,545,000 from HK$31,673,000 in 2019[2] - Revenue from the apparel operation was HK$9,936,000, representing a decrease of approximately 61.9% compared to HK$26,102,000 in the corresponding period in 2019[2] - Revenue from the money lending operation slightly increased by approximately 0.7% to HK$5,609,000 from HK$5,571,000 in 2019[2] - Revenue for the first half of 2020 decreased by approximately 50.9% or HK$16,128,000 to approximately HK$15,545,000 compared to HK$31,673,000 in 2019[132] - The geographical breakdown of revenue shows HK$8,950,000 from Hong Kong, HK$6,581,000 from the United States, and HK$14,000 from other regions for the six months ended June 30, 2020[59] Financial Losses - The gross loss for the period was approximately HK$33,000, a significant decline from a gross profit of HK$4,386,000 in 2019[2] - The loss attributable to owners of the Company was approximately HK$28,586,000, a decrease of 4.2% from HK$29,839,000 in 2019[5] - The total comprehensive income for the period attributable to the owners of the Company was a loss of HK$28,975,000 compared to a loss of HK$29,814,000 in 2019[9] - The loss before tax for the six months ended June 30, 2020, was HK$29,747,000, compared to a loss of HK$16,561,000 for the same period in 2019[55] - The Company reported a loss for the period of HK$28,586,000 for the six months ended June 30, 2020, compared to a loss of HK$29,839,000 for the same period in 2019, showing a slight improvement[20] Assets and Liabilities - The Group's inventories increased by approximately 112.9% to HK$31,908,000 as at 30 June 2020 from HK$14,987,000 as at 31 December 2019[5] - Total assets as of June 30, 2020, amounted to HK$317,921,000, with segment assets of HK$64,260,000 and other corporate assets of HK$184,319,000[50] - Total liabilities were reported at HK$41,699,000, with segment liabilities of HK$39,800,000[50] - As of June 30, 2020, the net current assets decreased to HK$196,097,000 from HK$225,590,000 as of December 31, 2019, representing a decline of approximately 13%[13] - The total equity attributable to the owners of the Company decreased to HK$276,222,000 as of June 30, 2020, down from HK$305,197,000 at the end of 2019, reflecting a reduction of about 9.5%[13] Cash Flow and Liquidity - The net cash used in operating activities for the six months ended June 30, 2020, was HK$27,996,000, an improvement compared to HK$43,370,000 for the same period in 2019, indicating a decrease of approximately 35%[31] - The cash and cash equivalents at the end of the period were HK$74,823,000, down from HK$106,693,000 at the end of June 2019, marking a decline of about 29.9%[31] - The current liquidity ratio of the Group was approximately 5.79 as of June 30, 2020, compared to 6.26 as of December 31, 2019[161] - The gearing ratio of the Group was approximately 2.4% as of June 30, 2020, down from 2.8% as of December 31, 2019[164] - The Group's liquidity position has been maintained through prudent financial management and ongoing credit assessments of customers[168] Expenses and Cost Management - Selling and distribution expenses decreased by approximately HK$2,438,000, and administrative expenses decreased by approximately HK$1,725,000 during the reporting period[5] - Total staff costs for the six months ended June 30, 2020, were approximately HK$17,829,000, down from approximately HK$25,574,000 for the same period in 2019, reflecting a reduction in employee headcount from 293 to 241[174] - Administrative expenses decreased by approximately 6.0% or HK$1,725,000 to about HK$27,004,000 from HK$28,729,000 in 2019[155] - The company’s directors' emoluments for the first half of 2020 were HK$3,531,000, compared to HK$3,151,000 in 2019[127] Credit Loss Provisions - The provision for expected credit losses (ECL) on trade receivables was HK$52,000, while a reversal of ECL on loans was HK$436,000 for the six months ended June 30, 2020[55] - The expected credit loss provision increased significantly to approximately HK$9,875,000, up about HK$7,087,000 from HK$2,788,000 as of December 31, 2019, due to updated credit risk assessments reflecting the impact of COVID-19[146] - The provision for expected credit losses (ECL) for trade receivables was HK$217,000 as of June 30, 2020, down from HK$653,000 as of December 31, 2019[102] Business Operations and Strategy - The Group continues to focus on its core segments: apparel manufacturing and trading, and money lending services, each requiring different business strategies[50] - The Group has not reported any significant changes in its business operations during the period[35] - The Group's business operations did not experience significant changes during the reporting period[37] - The company expects continued disruption to commercial activity and reduced consumer spending in the second half of 2020 due to the ongoing COVID-19 pandemic[139] Shareholder Information - No dividends were paid or proposed to the owners of the Company during the six months ended June 30, 2020, consistent with 2019[86] - The Board did not recommend any payment of an interim dividend for the six months ended 30 June 2020[194] Future Plans and Investments - The Group's future plans for material investments or capital assets were not specified as of June 30, 2020[181] - The Group has retained unutilised proceeds for working capital purposes due to the lack of suitable merger and acquisition opportunities[190] - The unutilised proceeds amounting to HK$75,288,000 were retained for future acquisitions and business development, with approximately HK$45,000,000 allocated for purchasing raw materials and garments[190]

Financial Performance - Revenue for the year ended December 31, 2019, was HK$158,714,000, a decrease of 22.1% from HK$203,892,000 in 2018[22] - Gross profit for 2019 was HK$32,196,000, down 24.3% from HK$42,480,000 in 2018[22] - The company reported a loss before income tax of HK$71,048,000 in 2019, compared to a loss of HK$62,178,000 in 2018[22] - Loss attributable to the owners of the company was HK$76,680,000 in 2019, an increase from a loss of HK$60,032,000 in 2018[22] - The overall cost of sales decreased by approximately 21.6%, from approximately HK$161,412,000 in 2018 to approximately HK$126,518,000 in 2019[98] - The gross profit margin decreased from approximately 20.8% in 2018 to 20.3% in 2019[100] - The loss attributable to the owners of the Company for the year ended 31 December 2019 was approximately HK$76,680,000, representing an increase in loss of approximately HK$16,648,000 or 27.7% compared to 2018[113] Assets and Liabilities - Total assets as of December 31, 2019, were HK$351,054,000, down 17.9% from HK$427,616,000 in 2018[23] - Shareholders' equity decreased to HK$305,197,000 in 2019 from HK$382,418,000 in 2018, a decline of 20.2%[23] - The current ratio for 2019 was 6.26, slightly down from 6.85 in 2018[23] - The gearing ratio increased to 2.8% in 2019 from 0.3% in 2018, indicating a rise in financial leverage[23] - Loans and interest receivables increased by approximately 6.8%, from approximately HK$105,339,000 as of December 31, 2018, to approximately HK$112,501,000 as of December 31, 2019[98] - The Group's total lease liabilities as of December 31, 2019, were approximately HK$8,547,000, with HK$5,568,000 repayable within one year[138] Inventory and Receivables - Inventory turnover days increased to 43 days in 2019 from 20 days in 2018, reflecting slower inventory movement[23] - The group's inventory increased by approximately HK$5,980,000 or 66.4%, from approximately HK$9,007,000 as of December 31, 2018, to approximately HK$14,987,000 as of December 31, 2019[121] - Trade and bills receivables increased by approximately HK$5,551,000 or 29.9%, from approximately HK$18,548,000 as of December 31, 2018, to approximately HK$24,099,000 as of December 31, 2019[127] Economic Environment - Hong Kong's economy declined by 1.2% in 2019, marking the first annual economic contraction since 2009[25] - The trade disputes between China and the United States are expected to continue impacting the apparel operation in 2020[29] - Trade tensions between China and the United States have negatively impacted demand for apparel products manufactured in China, leading to a slowdown in orders from U.S. customers[90] Management and Governance - The company has a strong leadership team with diverse backgrounds in finance, investment, and corporate governance, enhancing its strategic planning and operational efficiency[46][49][54][57] - The company is focused on ensuring good corporate governance practices, with Mr. Guo leading the corporate governance committee[47] - The company has established four committees under the Board: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, to assist in overseeing management functions[186] - The company is committed to promoting good corporate governance and managing enterprise-wide risk as a top priority[191] Operational Strategies - The Group plans to adopt further cost-cutting measures to reduce operational costs amid the challenging environment[39] - The Group is dedicated to improving the performance of its existing businesses while cautiously exploring potential business opportunities[39] - The company aims to enhance its market presence through strategic planning and business development initiatives led by its experienced management team[49][54] Impact of COVID-19 - The COVID-19 pandemic may cause severe disruptions to the global economy and affect the Group's business operations[38] - The Group will continue to monitor the impacts of the pandemic on its operations and financial position[38] - The Group anticipates that the temporary suspension of its factory in China will not significantly affect its ability to deliver orders for the whole year[32] Revenue Breakdown - Revenue from the apparel operation for 2019 was approximately HK$146,995,000, a decline of approximately 21.4% from HK$187,041,000 in 2018[25] - Revenue from private label products decreased by approximately 16.3% to approximately HK$104,760,000 in 2019, contributing 71.3% of total apparel revenue[96] - Revenue from own brand products decreased by approximately 31.7% to approximately HK$42,235,000 in 2019, with gross profit decreasing by 26.8% to approximately HK$12,072,000[96] - Revenue from the money lending operation contracted by approximately HK$5,132,000 or approximately 30.5%, from approximately HK$16,851,000 in 2018 to approximately HK$11,719,000 in 2019[98] Expenses and Cost Management - Selling and distribution expenses decreased by approximately HK$8,853,000 or 33.3% to approximately HK$17,698,000 for the year ended 31 December 2019[104] - Administrative expenses decreased by approximately 21.0% or HK$17,401,000 to approximately HK$65,328,000 for the year ended 31 December 2019[110] - Total staff costs for the year ended 31 December 2019 were approximately HK$56,481,000, a decrease from approximately HK$76,044,000 for the year ended 31 December 2018[166]