Financial Performance - For the six months ended June 30, 2023, the company recorded a loss of approximately HKD 16.5 million, compared to a loss of approximately HKD 4.5 million for the same period in 2022[9]. - The company's revenue for the six months ended June 30, 2023, was HKD 17,574 million, down from HKD 19,203 million in 2022, representing a decrease of approximately 8.5%[74]. - The gross profit for the same period in 2023 was HKD 14,979 million, compared to HKD 16,355 million in 2022, indicating a decline of about 8.4%[74]. - The company recorded other income of HKD 321 million for the six months ended June 30, 2023, down from HKD 499 million in 2022, representing a decrease of approximately 35.7%[74]. - The company incurred a total comprehensive loss of HKD 16,491,000 for the six months ended June 30, 2023, compared to a loss of HKD 4,503,000 for the same period in 2022[80]. - The company reported a net loss of HKD 16,491,000 for the period, reflecting ongoing challenges in the market[142]. - For the six months ended June 30, 2023, the company recorded a loss attributable to owners of approximately HKD 16,491,000, compared to a loss of HKD 4,503,000 for the same period in 2022[175]. Operating Loss and Expenses - The company's operating loss for the six months ended June 30, 2023, was HKD 15,037 million, significantly higher than the operating loss of HKD 2,823 million in 2022[74]. - The total segment loss for the first half of 2023 was HKD 15,827,000, compared to a loss of HKD 15,037,000 in the previous year[142]. - Employee benefits expenses, including director remuneration, were HKD 4,206,000, down from HKD 4,412,000 in the previous year[149]. - Unallocated company income and expenses netted to HKD 790,000, contributing to the overall loss[142]. Revenue Breakdown - Total revenue for the first half of 2023 was HKD 17,574,000, a decrease of 8.5% from HKD 19,203,000 in the same period of 2022[137]. - Office property rental income decreased to HKD 8,925,000, down 16.5% from HKD 10,687,000 year-on-year[137]. - Retail property rental income increased slightly to HKD 6,573,000, up 2.4% from HKD 6,422,000 in the previous year[137]. - Property management fee income was HKD 6,182,000, a decrease of 4.5% from HKD 6,474,000 in 2022[137]. - Rental income for the six months ended June 30, 2023, was approximately HKD 15.5 million, down from HKD 17.1 million in 2022, with office property rental contributing about HKD 6.6 million or 42.4%[200]. - Property management fee income for the same period was approximately HKD 2.1 million, consistent with 2022, representing about 11.8% of total revenue[200]. - The company’s property management fee income accounted for 10.9% of total revenue in 2022, slightly increasing to 11.8% in 2023[200]. Assets and Liabilities - Total liabilities as of June 30, 2023, were HKD 9,854 million, a decrease from HKD 10,913 million as of December 31, 2022[6]. - As of June 30, 2023, total assets amounted to HKD 1,293,260,000, a slight decrease from HKD 1,309,860,000 as of December 31, 2022, representing a decline of approximately 1.2%[76]. - The company reported a total equity attributable to owners of HKD 1,274,579,000 as of June 30, 2023, down from HKD 1,291,070,000, representing a decline of about 1.3%[76]. - The total liabilities decreased slightly to HKD 18,681,000 from HKD 18,790,000, reflecting a reduction of about 0.6%[78]. - The company’s deferred tax liabilities increased to HKD 7,788,000 from HKD 7,301,000, reflecting an increase of approximately 6.7%[78]. - The company’s retained earnings as of June 30, 2023, were HKD 902,971,000, down from HKD 919,462,000, indicating a decrease of about 1.8%[80]. - The cash and bank balances increased to HKD 26,067,000 from HKD 17,409,000, marking a significant increase of approximately 49.5%[76]. - The cash and cash equivalents decreased by HKD 1,152,000 during the period, compared to a decrease of HKD 70,289,000 in the previous year[82]. - The company’s current assets net amount was HKD 16,769,000, a significant increase from HKD 7,740,000 in the previous period[78]. - As of June 30, 2023, accounts receivable amounted to HKD 388,000, a significant increase from HKD 72,000 as of December 31, 2022[183]. Investment Properties - The fair value loss on investment properties for the six months ended June 30, 2023, was approximately HKD 24.9 million, compared to HKD 14.3 million in 2022, reflecting an increase in losses[9]. - The fair value of investment properties decreased to HKD 1,254,860,000 from HKD 1,279,793,000 at the beginning of the year[152]. - The group has not made any significant acquisitions of non-current assets during the six months ended June 30, 2023[121]. Financial Management and Strategy - The company emphasized the importance of prudent financial management, which has been a key factor in its success[21]. - The company plans to focus on a resilient investment portfolio to generate stable recurring income and create value for shareholders[21]. - The group expects that the adoption of new accounting standards will not have a significant impact on its financial position and performance[113]. - The group has not recognized any overseas profits tax provisions for the six months ended June 30, 2023[128]. - The weighted average number of ordinary shares issued remained constant at 720,000 shares for both periods[175]. - The company did not declare or pay any dividends for the six months ended June 30, 2023[174]. - The company received government subsidies of HKD 288,000 under the Employment Support Scheme aimed at maintaining employment during the COVID-19 pandemic[170]. - The company reported no impairment provisions for accounts receivable as of June 30, 2023[185]. - Financing expenses from related companies amounted to HKD 37,000 in 2022, with no such expenses reported for 2023[192].

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。 Thing On Enterprise Limited 晉 安 實 業 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：2292） 截至二零二三年六月三十日止六個月之 中期業績公告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 變動 千港元 千港元 % （未經審核） （未經審核） 收益 17,574 19,203 (8.48) 毛利 14,979 16,355 (8.41) 除所得稅前虧損 (15,037) (2,860) 425.77 本公司擁有人應佔期內溢利 ...

Investment Properties Valuation - The fair value of investment properties decreased from HKD 1,363,347,000 on January 1, 2021, to HKD 1,279,793,000 on December 31, 2022, reflecting a total decline of HKD 83,554,000 over the two-year period[1]. - The fair value change of investment properties was a loss of HKD 26,377,000 for the year ended December 31, 2021, and a loss of HKD 57,177,000 for the year ended December 31, 2022[1]. - The fair value of investment properties as of December 31, 2022, is HKD 1,279,793,000, a decrease from HKD 1,336,970,000 in 2021, representing a decline of approximately 4.2%[30]. - The fair value of office properties in Hong Kong is HKD 826,200,000, down from HKD 867,800,000 in the previous year, indicating a decrease of about 4.8%[37]. - The fair value of retail properties in Hong Kong is HKD 453,593,000, compared to HKD 469,170,000 in 2021, reflecting a decline of approximately 3.3%[37]. - The total investment property fair value change for the year 2022 was a decrease of HKD 57,177,000, with office properties decreasing by HKD 41,600,000 and retail properties by HKD 15,577,000[42]. - The valuation of the company's investment properties was conducted by an independent professional valuer, ensuring adherence to the relevant valuation standards[2]. - The financial team of the company reviews the independent valuation reports every six months to ensure accuracy and compliance with valuation standards[4]. - The company continues to evaluate market conditions and property characteristics to optimize the valuation of its investment properties[31]. Financial Performance - The company reported a significant increase in the unit sale price for office properties, ranging from HKD 11,020 to HKD 43,439 per square foot, which could lead to a substantial increase in fair value[37]. - The group reported a pre-tax loss of HKD (35,688,000) in 2022, compared to a loss of HKD (5,114,000) in 2021[100]. - The group's operating cash flow before changes in working capital was HKD 21,601,000 in 2022, slightly up from HKD 21,272,000 in 2021[100]. - The total revenue from office property rental was HKD 20,450,000, while retail property rental revenue was HKD 13,002,000, and property management fee income was HKD 12,750,000, resulting in a total revenue of HKD 37,517,000 for the year[186]. - The total revenue for the previous year was HKD 37,616,000, indicating a slight decrease of 0.26% year-over-year[198]. - The segment loss for office properties was HKD 32,479,000, while retail properties reported a loss of HKD 8,181,000, leading to an overall segment loss of HKD 36,706,000[196]. - The company reported cash and bank balances with a fair value equivalent to their book value, with interest rates ranging from 0.5% to 5% for bank deposits[53][54]. Shareholder and Governance - As of December 31, 2022, major shareholders, including Mr. Wang, hold 75% of the issued share capital, amounting to 540,000,000 shares[63][67]. - The company has adopted a standard code of conduct for securities trading, confirming compliance by all directors for the fiscal year ending December 31, 2022[69]. - The company has a shareholder communication policy to ensure equal and timely access to information for shareholders[162]. - The company aims to ensure effective and timely communication of information to shareholders and potential investors[165]. - The company’s website provides updated information on its business activities and governance[170]. - The company has complied with the listing rules and established an audit committee on December 15, 2017, which reviewed the audited consolidated financial statements for the year ended December 31, 2022[122]. Environmental, Social, and Governance (ESG) - The board is committed to integrating environmental, social, and governance (ESG) principles into business operations, emphasizing the importance of managing related risks and opportunities[126]. - The company aims to balance the interests of all stakeholders, including employees, suppliers, customers, and the environment, in its daily operations[133]. - The company has identified significant ESG issues through stakeholder communication, including compliance with listing rules and corporate governance[136]. - The company plans to enhance transparency in its sustainability performance by disclosing more comprehensive ESG information in the long term[132]. - The board is responsible for overseeing the effectiveness of the ESG risk management and internal control systems[127]. - The company has established various communication channels to engage with stakeholders regarding its business success and sustainability performance[135]. - The company is committed to reducing waste and protecting the environment in response to regulatory expectations[133]. - Carbon emissions for the year 2022 were recorded at 35.94 tons of CO2 equivalent, slightly up from 35.59 tons in 2021, indicating a 0.98% increase[141]. - Carbon emissions density remained stable at 0.06 tons of CO2 equivalent per square meter of floor area for both 2021 and 2022[141]. - The company has implemented measures to promote a paperless office environment, significantly minimizing paper waste during administrative processes[142]. - The company has not reported any confirmed environmental violations or complaints during the reporting period[140]. - The company continues to educate employees on energy efficiency to reduce greenhouse gas emissions associated with electricity consumption[141]. Capital Structure and Financing - The company has secured a total of HKD 1 billion in unsecured revolving loan financing, with interest rates linked to the Hong Kong Interbank Offered Rate (HIBOR)[58][59]. - The company extended the loan financing agreement, with the new maturity date set for January 2, 2024, from the previous date of July 3, 2023[27]. - As of December 31, 2022, the group had no outstanding borrowings, a significant change from HKD 78,651,000 in borrowings reported at the end of 2021[116]. - Total borrowings as of December 31, 2022, were zero, compared to HKD 78,651 thousand in 2021[178]. - The company maintained a prudent liquidity risk management policy, ensuring sufficient cash and available credit facilities[172]. - The company actively reviews and manages its capital structure to enhance shareholder value[177]. Related Party Transactions - The independent non-executive directors confirmed that the ongoing related party transactions were conducted on normal commercial terms and in the best interest of shareholders[22]. - The company has complied with the disclosure requirements under the Listing Rules regarding related party transactions[23]. - Rental income and property management fee income from related companies remained stable at HKD 4,811,000 in 2022, compared to HKD 4,809,000 in 2021[107]. Assets and Liabilities - The total assets decreased from HKD 1,582,727,000 in 2021 to HKD 1,524,592,000 in 2022[113]. - The group's equity attributable to owners increased from HKD 1,082,758,000 in 2021 to HKD 1,083,775,000 in 2022[113]. - The group reported a decrease in total liabilities from HKD 499,969,000 in 2021 to HKD 440,817,000 in 2022[113]. - Current liabilities as of December 31, 2022, included other payables and accrued expenses totaling HKD 10,622 thousand[174]. - Other payables and accrued expenses totaled HKD 10,913,000 in 2022, down from HKD 13,043,000 in 2021, indicating a decrease of approximately 16.4%[57].

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 19,203,000, representing an increase of 3.1% compared to HKD 18,625,000 for the same period in 2021[13] - Gross profit for the same period was HKD 16,355,000, slightly up from HKD 16,164,000, indicating a stable gross margin[13] - Operating loss decreased to HKD 2,823,000 from HKD 7,470,000 year-on-year, showing improved operational efficiency[13] - Loss before tax was HKD 2,860,000, down from HKD 7,714,000 in the previous year, reflecting a significant reduction in losses[13] - The company reported a loss of HKD 4,503,000 for the period, compared to a loss of HKD 9,245,000 in the same period last year, indicating a positive trend[13] - Basic and diluted loss per share improved to HKD 0.63 from HKD 1.28 year-on-year, reflecting better performance[13] Assets and Liabilities - The total assets as of June 30, 2022, were HKD 1,343,627,000, a decrease from HKD 1,428,140,000 at the end of 2021[17] - Cash and bank balances decreased to HKD 7,561,000 from HKD 77,850,000, indicating a liquidity challenge[17] - Total liabilities were HKD 18,094,000, significantly reduced from HKD 98,104,000, suggesting improved financial stability[20] - The group’s current liabilities exceeded current assets by HKD 1,293,000 as of June 30, 2022, raising concerns about liquidity[31] - The company’s total receivables, prepayments, deposits, and other receivables amounted to HKD 2,010,000 as of June 30, 2022, compared to HKD 1,686,000 as of December 31, 2021, indicating an increase of 19.2%[82] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2022, was HKD 8,365,000, a decrease of 20.2% from HKD 10,482,000 in the same period of 2021[26] - Net cash used in financing activities was HKD 78,688,000, significantly higher than HKD 10,399,000 in the previous year, indicating increased debt repayments[26] - The net decrease in cash and cash equivalents for the period was HKD 70,289,000, compared to a slight increase of HKD 83,000 in the prior year[26] - Cash and cash equivalents at the end of the period stood at HKD 7,561,000, down from HKD 2,976,000 at the end of June 2021[26] - Interest paid on borrowings decreased to HKD 37,000 from HKD 244,000, reflecting lower financing costs[26] - The group received HKD 34,000 in bank interest, a decrease from HKD 932,000 in the previous year, indicating lower interest income[26] Revenue Sources - Office property rental income reached HKD 10,687,000, up 2.28% from HKD 10,449,000 in the previous year[40] - Retail property rental income was HKD 6,422,000, slightly increasing from HKD 6,389,000, reflecting a growth of 0.52%[40] - Property management fee income rose to HKD 6,474,000, compared to HKD 6,224,000, marking an increase of 4.01%[40] - After deducting inter-segment revenue of HKD 4,380,000, the net property management fee income was HKD 2,094,000[50] - Rental income for the six months ended June 30, 2022, was approximately HKD 17.1 million, an increase from HKD 16.8 million in 2021, with 62.5% coming from office properties[104] Operational Strategy - The company continues to focus on operational improvements and cost management strategies to enhance profitability in the future[8] - The company plans to continue seeking quality property investments in Hong Kong, mainland China, and other international cities to mitigate risks associated with reliance on a single geographic market[106] - The company has a clear strategy for market expansion and enhancing its property management services[127] Corporate Governance - The company has established an audit committee to review the interim results for the six months ended June 30, 2022[146] - The company has complied with all relevant provisions of the corporate governance code as of June 30, 2022[144] Dividends and Share Capital - The company did not declare or pay any dividends for the six months ended June 30, 2022, consistent with the previous year[61] - The company has a total of 720,000 issued and fully paid ordinary shares as of June 30, 2022[87] - The company has a total of 540 million ordinary shares held by Mr. Wang, representing 75.0% of the issued share capital[131]

Financial Performance - The company recorded rental income of approximately HKD 33.9 million for the year ended December 31, 2021, a decrease from HKD 36.5 million in 2020, representing a decline of about 7.1%[12] - The group recorded a loss of approximately HKD 8.4 million for the year ended December 31, 2021, compared to a loss of approximately HKD 79.8 million for the year ended December 31, 2020[31] - The fair value loss of investment properties for the year was approximately HKD 26.4 million, down from HKD 101.8 million in 2020[31] - The group achieved a profit of approximately HKD 18.0 million for the year ended December 31, 2021, excluding the fair value changes of investment properties, compared to HKD 21.9 million in 2020[31] - For the year ended December 31, 2021, the group reported a loss before tax of HKD 5.1 million, significantly improved from a loss of HKD 76.3 million in 2020, representing a 93.3% reduction in losses[36] - The group’s total property value was approximately HKD 1,337.0 million, a decrease from HKD 1,363.3 million in 2020[34] - The group’s cash and bank balances as of December 31, 2021, were approximately HKD 77.9 million, slightly down from HKD 78.1 million in 2020[38] - The group’s current ratio was approximately 6.1 as of December 31, 2021, compared to 6.6 in 2020[38] - The company has not made any charitable donations for the year ended December 31, 2021, similar to 2020[147] Revenue Sources - Of the total rental income, approximately HKD 21.0 million (61.9%) came from office properties, while HKD 12.9 million (38.1%) came from retail properties, indicating a shift in revenue sources compared to 2020[12] - Property management fee income was approximately HKD 3.7 million, accounting for about 9.9% of total revenue, down from 10.3% in 2020[12] - The rental income from investment properties constitutes the vast majority of the group's revenue, making it susceptible to market fluctuations and tenant payment issues[134] Market Conditions and Strategy - The company anticipates continued volatility in the property market and plans to cautiously evaluate potential investment opportunities[13] - The ongoing COVID-19 pandemic has led to a slight decrease in revenue, but the company has not experienced significant impacts on its financial condition or operations[13] - The company aims to maintain performance in Hong Kong while seeking quality properties in mainland China and other international cities to mitigate geographic market risks[13] - The company is exploring investment opportunities in the financial sector, including financial investments and technology services, to diversify revenue sources[13] - The management team will closely monitor market changes and make strategic adjustments to the asset portfolio to minimize the impact of global economic instability[13] - The financial condition and operating performance of the company may be adversely affected by any downturn in the Hong Kong real estate market, which is sensitive to economic conditions and consumer confidence[138] Corporate Governance - The company has maintained compliance with all relevant corporate governance codes as of December 31, 2021[63] - The board consists of six members, ensuring a balanced composition with strong independent elements[66] - The board held four meetings during the fiscal year ending December 31, 2021, with all directors attending all meetings[76] - The company conducted one annual general meeting on April 28, 2021, with full attendance from all directors[79] - All directors participated in ongoing professional development to enhance their knowledge and skills[81] - The Nomination Committee held one meeting to review the board's structure, diversity, and the independence of non-executive directors[88] - The Remuneration Committee met once to review the remuneration policies for directors and senior management, ensuring no director set their own pay[90] - The company has established an audit committee in compliance with listing rules and corporate governance codes, consisting of three members[94] - The audit committee is responsible for monitoring the company's internal control systems and compliance with legal and regulatory requirements[95] - The company emphasizes open communication with shareholders and regularly discloses information regarding annual and interim performance[111] Risk Management - The company has a risk management system in place, which is reviewed annually[99] - The company has established a risk management policy aimed at ensuring stable business growth and proactively addressing business-related risks[120] - The board is responsible for maintaining effective risk management and internal control systems to protect shareholder investments and company assets[119] - The board has reviewed the effectiveness of the risk management and internal control systems, concluding they are adequate as of December 31, 2021[128] Shareholder Information - The company raised approximately HKD 194.0 million from its global offering, with net proceeds after underwriting fees and expenses[58] - As of December 31, 2021, the company utilized HKD 119.5 million of the raised funds, leaving HKD 74.5 million unutilized[59] - The board decided to extend the expected timeline for utilizing the unutilized net proceeds to December 31, 2023, and repurpose it for loan repayment[58] - The company plans to use the unutilized net proceeds to reduce interest expenses, which is deemed beneficial for long-term business development[58] - The company has fully utilized all proceeds from the listing as of January 31, 2022, including the repayment of approximately HKD 74.5 million in loans[59] - The company acknowledges that any future dividend payments will be determined by the board based on profitability, cash flow, financial condition, and other relevant factors[113] Related Party Transactions - The independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[166] - The external auditor provided an unqualified opinion on the group's related party transactions, confirming compliance with the listing rules[168] - Significant related party transactions conducted in the normal course of business are detailed in the consolidated financial statements[177] Share Option Scheme - The company has adopted a share option scheme to incentivize selected participants, with a total of 72,000,000 shares available for issuance, accounting for 10% of the issued shares as of the report date[192] - The share option scheme will remain effective until December 14, 2027[194] - No share options have been granted under the share option scheme from the adoption date to the report date[195] Non-Competition Agreements - The company has established a non-competition agreement to prevent major shareholders from engaging in competing businesses during the restricted period[198] - The company has received written confirmations from all parties regarding their compliance with non-competition agreements for the year ended December 31, 2021[199] - Independent non-executive directors have reviewed the written confirmations and confirmed no known violations of the non-competition agreements[199] Operational Management - The company is actively involved in property management, including leasing, tenant relations, and property renovations[29] - The group has a strong focus on operational management and strategic planning to navigate market challenges[31] - The company maintains good relationships with employees, customers, and suppliers, focusing on providing quality service and consumer experience[142]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 18,625,000, a decrease of 8.8% from HKD 20,425,000 in the same period of 2020[43] - Gross profit for the same period was HKD 16,164,000, down from HKD 18,018,000, reflecting a decline of 10.3%[43] - Operating loss for the six months was HKD 7,470,000, significantly improved from a loss of HKD 28,796,000 in the prior year, indicating a reduction of 74.0%[43] - Loss before tax was HKD 7,714,000, compared to HKD 29,917,000 in the previous year, marking a decrease of 74.2%[43] - Net loss for the period was HKD 9,245,000, down from HKD 31,614,000, representing a 70.8% improvement[43] - The company reported a total segment loss of HKD 8,534,000 for the first half of 2021, compared to a loss of HKD 30,589,000 in the same period of 2020[82] - The company reported a loss attributable to shareholders of HKD 9,245,000 for the six months ended June 30, 2021, compared to a loss of HKD 31,614,000 for the same period in 2020, representing a 70.8% improvement in losses[98] Assets and Liabilities - Total assets as of June 30, 2021, were HKD 1,436,161,000, a slight decrease from HKD 1,455,549,000 at the end of 2020[46] - Total liabilities decreased to HKD 106,977,000 from HKD 117,120,000, reflecting a reduction of 8.7%[50] - The company's equity attributable to owners was HKD 1,329,184,000, down from HKD 1,338,429,000, a decrease of 0.8%[50] - Total segment assets as of June 30, 2021, amounted to HKD 1,359,360,000, with office property assets at HKD 879,874,000[84] - Total liabilities as of June 30, 2021, were HKD 106,977,000, with segment liabilities of HKD 17,231,000[84] Cash Flow and Management - Cash and bank balances increased to HKD 79,078,000 from HKD 78,063,000, showing a growth of 1.3%[46] - Operating cash flow for the six months ended June 30, 2021, was HKD 10,482,000, compared to HKD 8,384,000 for the same period in 2020, representing a 25.0% increase[56] - Net cash from operating activities was HKD 10,482,000, while cash used in financing activities was HKD (10,399,000), showing a significant reduction in cash outflow compared to HKD (18,699,000) in the previous year[56] - The group repaid borrowings amounting to HKD (10,155,000), a significant decrease from HKD (49,373,000) in the previous year, indicating improved cash management[56] - The group did not receive any new borrowings during the current period, contrasting with HKD 30,700,000 received in the same period last year[56] Revenue Sources - Office property rental income decreased to HKD 10,449,000, down 18.9% from HKD 12,882,000 year-on-year[72] - Retail property rental income increased to HKD 6,389,000, up 17.7% from HKD 5,429,000 in the previous year[72] - Property management fee income was HKD 6,224,000, a decrease of 9.0% from HKD 6,842,000 in the same period last year[72] - For the six months ended June 30, 2021, the group recorded rental income of approximately HKD 16.8 million, a decrease from HKD 18.3 million in 2020, with 62.1% from office properties and 37.9% from retail properties[142] Investment and Future Plans - The company plans to continue focusing on property management and rental services to enhance revenue streams moving forward[74] - The group aims to explore investment opportunities in financial services and technology to diversify revenue sources and reduce reliance on a single geographic market[144] - The company plans to utilize the remaining unutilized proceeds for acquiring new investment properties by December 31, 2021[162] - The company has allocated HKD 194.0 million for various purposes, including HKD 174.6 million for new investment properties and HKD 9.7 million for enhancing property management services[162] Compliance and Governance - The company has established an audit committee to review the interim results for the six months ended June 30, 2021[183] - The company confirms compliance with all relevant provisions of the corporate governance code as of June 30, 2021[181]

Financial Performance - The company recorded rental income of approximately HKD 36.5 million for the year ended December 31, 2020, a decrease from HKD 38.3 million in 2019, representing a decline of about 4.7%[15] - Property management fee income was approximately HKD 4.2 million, down from HKD 5.7 million in 2019, accounting for about 10.3% of total revenue, compared to 12.9% in the previous year[15] - For the year ended December 31, 2020, the company recorded a loss of approximately HKD 79.8 million, compared to a loss of approximately HKD 185.9 million for the year ended December 31, 2019, primarily due to a fair value loss of investment properties of about HKD 101.8 million[34] - The company’s revenue for the year ended December 31, 2020, was approximately HKD 40.7 million, a decrease of 7.37% from HKD 43.9 million in 2019[39] - The gross profit for the year ended December 31, 2020, was approximately HKD 35.8 million, compared to HKD 38.3 million in 2019, reflecting a decrease of 6.50%[40] - The total value of the company's investment property portfolio as of December 31, 2020, was approximately HKD 1,363.3 million, down from HKD 1,395.8 million in 2019, with 63.3% from office and retail properties located on Hong Kong Island[37] Market Conditions and Strategy - The company anticipates continued volatility in the property market and will cautiously assess potential investment opportunities[16] - The ongoing COVID-19 pandemic has led to a general slowdown in business activities in Hong Kong, impacting various industries, including retail and dining[16] - The company plans to monitor global economic conditions closely and adjust rental policies accordingly to minimize impacts[16] - The company aims to maintain performance in Hong Kong while seeking quality properties in China and other international cities to mitigate risks associated with reliance on a single geographic market[16] - The company is also exploring investment opportunities in the financial sector, including financial investments and technology services, to diversify revenue sources[16] Management and Governance - The company has a strong management team with diverse backgrounds in finance, law, and property management, enhancing its operational capabilities[30] - The group has been actively involved in market expansion and investment property management, indicating a strategic focus on growth[32] - The company emphasizes compliance and corporate governance, with a company secretary having over 20 years of experience in related matters[32] - The investment committee plays a crucial role in overseeing the company's investment strategies and property management operations[32] - The board of directors includes members with extensive experience in finance and corporate governance, ensuring sound decision-making[30] Risk Management - The company faces risks related to market rental fluctuations and tenant competition, which could impact cash flow and liquidity if rental income levels are not maintained[137] - The board is responsible for maintaining effective risk management and internal control systems to protect shareholder investments and company assets[122] - The company has adopted a risk management policy aimed at ensuring stable business growth and addressing business-related risks proactively[123] - The board has established a framework for risk management procedures and ensures compliance with relevant regulations[125] - The company’s operations are susceptible to sudden outbreaks of infectious diseases, which could negatively impact the economic environment and operational performance[138] Shareholder Relations and Communication - The company maintains open communication with shareholders and regularly discloses information regarding its performance[114] - The company’s annual and interim results are communicated to shareholders through reports and announcements published on the stock exchange website[115] - The board has confirmed that the group has sufficient resources to continue operations for the foreseeable future, adopting the going concern basis for preparing financial statements[120] Employee and Corporate Social Responsibility - The company is committed to environmental protection through measures such as energy conservation and encouraging recycling of office supplies[142] - The company maintains good relationships with employees, customers, and suppliers, focusing on providing quality service and consumer experience[145] Related Party Transactions - The independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[169] - The external auditor provided an unqualified opinion on the group's related party transactions, confirming compliance with the listing rules[171] - The company has disclosed related party transactions in accordance with the listing rules, ensuring transparency[173] Financial Commitments and Proceeds - The company plans to utilize unspent IPO proceeds for acquiring new investment properties by December 31, 2021[49] - The net proceeds from the global offering amounted to approximately HKD 194.0 million, with HKD 119.5 million utilized by December 31, 2020[61] - As of December 31, 2020, the company had utilized HKD 100.1 million for acquiring new investment properties, with an expected remaining amount of HKD 74.5 million to be utilized by December 31, 2021[62]

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 20,425,000, a decrease of 4.83% compared to HKD 21,459,000 for the same period in 2019[49]. - Gross profit for the same period was HKD 18,018,000, down from HKD 18,683,000, reflecting a decline of 3.54%[49]. - Operating loss decreased to HKD 28,796,000 from HKD 59,294,000, representing a reduction of 51.40%[49]. - Loss before tax improved to HKD 29,917,000 compared to HKD 62,597,000 in the previous year, a decrease of 52.24%[49]. - Net loss for the period was HKD 31,614,000, significantly lower than HKD 63,764,000 in the prior year, marking a 50.51% improvement[49]. - The company reported a net loss of HKD 31,614 million for the first half of 2020, compared to a loss of HKD 63,764 million in the same period of 2019[86]. - The group recorded a loss of approximately HKD 31.6 million for the six months ended June 30, 2020, compared to a loss of HKD 63.8 million for the same period in 2019, primarily due to a fair value loss of investment properties of about HKD 42.8 million[160]. Assets and Liabilities - Total assets as of June 30, 2020, were HKD 1,515,435,000, a decrease from HKD 1,566,737,000 at the end of 2019[53]. - Non-current assets increased to HKD 1,422,313,000 from HKD 1,395,823,000, reflecting a growth of 1.89%[53]. - Current assets totaled HKD 1,433,840,000, slightly up from HKD 1,413,529,000, indicating a 1.43% increase[53]. - Total liabilities decreased to HKD 128,808,000 from HKD 148,496,000, a reduction of 13.25%[56]. - The company's equity attributable to owners decreased to HKD 1,386,627,000 from HKD 1,418,241,000, a decline of 2.23%[56]. - Total assets as of June 30, 2020, amounted to HKD 1,515,435 million, with total liabilities of HKD 128,808 million[87]. - The company’s total segment assets were HKD 1,438,549 million, with office property assets valued at HKD 934,269 million[87]. Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2020, was HKD 10,283,000, a decrease of 8.2% from HKD 11,196,000 in 2019[62]. - Net cash from operating activities was HKD 8,384,000, down 12.3% from HKD 9,560,000 in the previous year[62]. - Cash and cash equivalents decreased by HKD 802,000, ending at HKD 3,761,000 compared to HKD 110,815,000 at the end of June 2019[62]. - The net cash from investing activities was HKD 9,513,000, significantly lower than HKD 151,337,000 in the same period last year, primarily due to the purchase of investment properties amounting to HKD 63,108,000[62]. - The company incurred a financing cash outflow of HKD 18,699,000, compared to HKD 53,400,000 in the previous year, reflecting a reduction in loan repayments[62]. - Total cash and bank balances stood at HKD 78,931,000, down from HKD 254,515,000 in the previous year[62]. - The company received HKD 30,700,000 from borrowings during the period, with no borrowings reported in the previous year[62]. - The group’s long-term loans outstanding as of June 30, 2020, were approximately HKD 109.5 million, due in July 2021[168]. Revenue Sources - Office property rental income was HKD 12,882 million, slightly down from HKD 12,933 million in 2019, representing a decrease of 0.4%[86]. - Retail property rental income decreased to HKD 5,429 million from HKD 5,774 million, a decline of 6.0%[86]. - Property management fee income was HKD 6,842 million, down from HKD 7,572 million, reflecting a decrease of 9.7%[86]. - Rental income for the six months ended June 30, 2020, was approximately HKD 18.3 million, a slight decrease from HKD 18.7 million in 2019, with 70.4% coming from office properties and 29.6% from retail properties[161]. - The group’s property management fee income was approximately HKD 2.1 million, accounting for about 10.4% of total revenue for the six months ended June 30, 2020, down from 12.8% in 2019[161]. Tax and Government Support - The company paid HKD 1,899,000 in Hong Kong profits tax, an increase from HKD 1,636,000 in 2019[62]. - The company received government subsidies of HKD 162,000 from the Hong Kong government's employment support scheme to maintain employment during the COVID-19 pandemic[92]. - The company plans to maintain employment until at least August 31, 2020, as a condition of receiving government support[92]. Shareholder and Management Information - Major shareholder Wang Congde holds 75.0% of the issued share capital of the group[190][195]. - The company’s management compensation totaled HKD 2,280,000 for the six months ended June 30, 2020, down from HKD 2,599,000 for the same period in 2019, a decrease of approximately 12.3%[152]. - The group employed 18 staff members as of June 30, 2020, down from 19 in 2019, with a compensation policy including discretionary bonuses based on performance[180]. Future Plans and Considerations - The group plans to cautiously evaluate potential investment opportunities in the property market while seeking quality properties in Hong Kong, China, and other international cities to mitigate risks associated with reliance on a single geographic market[163]. - The group plans to utilize the unutilized proceeds for acquiring new investment properties by December 31, 2021[185]. - The company is currently evaluating the potential impact of new accounting standards and revisions, with no significant impact expected on financial performance[69]. - The group will continue to monitor global economic conditions closely and adjust rental policies accordingly to minimize impacts on performance[163]. Dividends and Stock Options - The company did not declare or pay any dividends for the six months ended June 30, 2020[110]. - No interim dividend was declared for the six months ended June 30, 2020, compared to none in 2019[171]. - The company has adopted a stock option plan to provide additional incentives to selected participants, recognizing their contributions to the group's performance[197]. - No stock options have been granted under the stock option plan from the adoption date to the report date[198].

Financial Performance - The group recorded rental income of approximately HKD 38.3 million and property management fee income of approximately HKD 5.7 million for the year ended December 31, 2019[38]. - The gross profit for the year was approximately HKD 38.3 million, while the net loss attributable to owners for the year was approximately HKD 185.9 million[38]. - The group achieved a net profit of approximately HKD 22.1 million, excluding changes in the fair value of investment properties[38]. - The company recorded a loss of approximately HKD 185.9 million for the year ended December 31, 2019, compared to a profit of approximately HKD 50.5 million for the year ended December 31, 2018, primarily due to a fair value loss of investment properties of about HKD 208.0 million[58]. - Rental income for the year ended December 31, 2019, was approximately HKD 38.3 million, an increase from HKD 36.1 million in 2018, with 70.0% of this income coming from office properties[59]. - The company’s property management fee income was approximately HKD 5.7 million for the year ended December 31, 2019, representing 12.9% of total revenue, up from 12.4% in 2018[59]. - The company’s revenue for the year ended December 31, 2019, was approximately HKD 43.96 million, a 6.74% increase from HKD 41.19 million in 2018[63]. - The gross profit for the year ended December 31, 2019, was approximately HKD 38.3 million, compared to HKD 35.2 million in 2018, reflecting an 8.71% increase[64]. - The company reported a distributable reserve of approximately HKD 362,302,000 as of December 31, 2019, compared to HKD 355,215,000 in 2018, reflecting a year-on-year increase of about 2.4%[175]. Economic Outlook - The group expects its performance to be inevitably affected by the ongoing economic uncertainties, including the impact of COVID-19[39]. - The property market is expected to remain volatile, and the group will cautiously evaluate investment opportunities[40]. - The group aims to maintain performance in Hong Kong while seeking quality properties in Hong Kong, China, and other international cities to mitigate risks associated with reliance on a single geographic market[40]. - The company’s performance is significantly influenced by the economic conditions and real estate market in Hong Kong, which may affect its business outlook[163]. - Any decline in the demand for properties in Hong Kong could adversely impact the company’s financial condition and operational performance[163]. Investment Strategy - The group plans to explore investment opportunities in the financial sector, including financial services and technology, to diversify revenue sources[40]. - The group will closely monitor market changes and make appropriate strategic adjustments to its asset portfolio to minimize the impact of global economic instability[40]. - The company has a structured investment committee to oversee its investment activities[56]. Management and Governance - The company has a strong focus on managing investment property leasing, marketing, and tenant relations[56]. - The management team includes professionals with diverse backgrounds in finance, law, and property management[53]. - The company is committed to maintaining compliance and corporate governance with over 21 years of experience in related matters[56]. - The board of directors includes members with extensive experience in corporate strategy and operational management[48]. - The company has adopted a board diversity policy to enhance its strategic goals and sustainable development[98]. - The board consists of six members, including two executive directors and three independent non-executive directors, ensuring a balanced skill set[93]. - The company has complied with all relevant corporate governance codes as of December 31, 2019[90]. - The company plans to hold at least four board meetings annually, approximately once per quarter[102]. - The company has established an audit committee to oversee compliance with legal and regulatory requirements[122]. - The audit committee consists of three members, all of whom attended 100% of the meetings held[124]. - The company maintains open communication with shareholders and provides reasonable information disclosure[137]. Risk Management - The board is responsible for the effectiveness of the risk management and internal control systems, which aim to manage risks rather than eliminate them[145]. - The company has adopted a risk management policy to ensure stable business growth and proactively address business-related risks[145]. - The risk management framework includes identifying, assessing, quantifying, and mitigating significant risks to ensure adequate risk management systems[146]. - The audit committee is aware of the existing risk management and internal control systems and will conduct an annual review[126]. Employee Relations - The company values its employees as key assets and aims to create a supportive environment for their personal development[166]. - The company has a discretionary bonus scheme based on operational performance and individual contributions for eligible employees[81]. - The company has established a stock option plan for its employees[81]. - The company had 19 employees as of December 31, 2019, an increase from 18 employees in 2018[81]. Related Party Transactions - The board confirmed that the ongoing related party transactions were conducted on normal commercial terms and in the best interest of shareholders[187]. - Significant related party transactions conducted during the normal course of business are detailed in the consolidated financial statements, complying with Listing Rule 14A[197]. - The company has received a loan financing of up to HKD 1,000,000,000 from its controlling shareholder, with terms including an unsecured revolving loan of up to HKD 400,000,000 at a rate of HIBOR plus 0.4% and up to HKD 600,000,000 at HIBOR plus 2.0%[193]. - The loan financing agreement was extended from October 25, 2019, to October 25, 2020, maintaining all other principal terms unchanged[194]. - The loan financing qualifies for exemption under Listing Rule 14A.90, as it is made on normal commercial terms and does not involve the group's assets as collateral[196]. Compliance and Legal Matters - The company has engaged a professional company secretary service provider to assist in compliance and adapt to changing regulatory environments[128]. - There were no significant violations of laws and regulations that impacted the company’s business operations during the review period[165]. - The total fees paid to the auditor, PricewaterhouseCoopers, for the year ended December 31, 2019, amounted to HKD 1,373,000, including HKD 1,173,000 for audit services and HKD 200,000 for non-audit services[127].

Financial Performance - Total revenue for the six months ended June 30, 2019, was HKD 21,459,000, representing an increase of 1.67% compared to HKD 21,106,000 in the same period of 2018[46] - Gross profit for the same period was HKD 18,683,000, up from HKD 18,071,000, indicating a gross margin improvement[46] - Other income and net gains increased significantly to HKD 3,856,000 from HKD 1,863,000, reflecting a growth of 106.4%[46] - The company reported a loss before tax of HKD 62,597,000, compared to a profit of HKD 83,948,000 in the previous year, marking a substantial decline[46] - Basic and diluted loss per share was HKD (8.86), a decrease from earnings of HKD 11.65 per share in the prior year[46] - The company reported a net loss for the period of HKD 63,764,000, compared to the previous year's performance[84] - The company reported a loss attributable to owners of HKD 63,764,000 for the six months ended June 30, 2019, compared to a profit of HKD 82,176,000 in the same period of 2018[102] Assets and Liabilities - Total assets as of June 30, 2019, were HKD 1,797,237,000, down from HKD 1,912,440,000 at the end of 2018[49] - Total liabilities decreased to HKD 256,863,000 from HKD 308,302,000, indicating a reduction of 16.7%[52] - The company's equity attributable to owners decreased to HKD 1,540,374,000 from HKD 1,604,138,000, reflecting a decline of 3.97%[49] - The total segment assets as of June 30, 2019, amounted to HKD 1,797,237,000[84] - Total liabilities as of the same date were HKD 256,863,000, with allocated liabilities of HKD 15,693,000 for the retail property segment[84] Cash Flow and Investments - Cash and bank balances increased to HKD 254,515,000 from HKD 158,318,000, showing a growth of 60.7%[49] - Operating cash flow for the six months ended June 30, 2019, was HKD 9,560,000, a significant increase from HKD 1,236,000 in the same period of 2018, representing a growth of 675%[58] - Net cash generated from investing activities was HKD 151,337,000, compared to a net cash used of HKD 214,266,000 in the previous year, indicating a turnaround in investment performance[58] - The company reported a cash and cash equivalents balance of HKD 110,815,000 at the end of the period, up from HKD 10,695,000 at the end of June 2018, marking a substantial increase of 935%[58] - The total cash and bank balance, after deducting bank deposits with original maturities over three months, was HKD 254,515,000, compared to HKD 225,695,000 in the previous year, reflecting a growth of 12.8%[58] Operational Strategy - The company plans to focus on enhancing operational efficiency and exploring new market opportunities to improve future performance[46] - The company continues to evaluate its operational segments based on the nature of services provided, focusing on rental and property management[77] - The group plans to adopt a conservative approach in evaluating investment properties due to ongoing market instability[153] - The group aims to explore quality properties in Hong Kong, China, and other international cities to mitigate risks associated with reliance on a single market[153] - The group will closely monitor market changes and make strategic adjustments to its asset portfolio to reduce the impact of global economic instability[153] Corporate Governance - The company has adopted the corporate governance code as outlined in Appendix 14 of the listing rules[187] - The board believes that the company has complied with all relevant provisions of the corporate governance code as of June 30, 2019[188] - The audit committee has been established and consists of three members, with Ms. Chan as the chairperson[190] Employee and Management Information - The group had 18 employees as of June 30, 2019, with no changes in headcount from December 31, 2018[168] - The company has adopted a cautious financial management strategy to maintain a robust liquidity position throughout the review period[158]