Market Performance - The Hang Seng Index dropped 14.1% in 2021, closing at 23,397, while the S&P 500 gained 26.9% and the Shanghai Composite Index rose 4.8%[10]. - The Hang Seng TECH Index plummeted 31.6% in 2021 due to regulatory pressures and accounting requirements imposed by the US[20]. - The Hang Seng China Enterprises Index dropped 23.3% in 2021, indicating a challenging market environment[53]. Financial Performance - For the year ended December 31, 2021, the Group recorded a loss of approximately HK$51,597,000, compared to a loss of HK$19,807,000 in 2020, primarily due to operating expenses and equity investment losses[25][27]. - The carrying value of the Group's listed equity investments decreased to approximately HK$25,764,000 as of December 31, 2021, down from HK$74,514,000 in 2020[24][27]. - The Group's sales proceeds from disposals of trading listed equity securities were approximately HK$22,457,000 for the year ended December 31, 2021, compared to HK$65,477,000 in 2020[25][27]. - The realised and unrealised losses on listed investments amounted to approximately HK$45,583,000 for the year ended 31 December 2021[31]. - The Group's net assets were approximately HK$46,522,000 as of December 31, 2021, down from HK$80,477,000 in 2020[85][89]. Investment Strategy - The Group will continue to adopt a prudent investment approach and explore new investment opportunities to enhance shareholder returns[16]. - The Group's investment strategy focuses on short to medium-term capital appreciation through a diversified portfolio of listed and unlisted securities[19]. - The Group aims to leverage its strong financial position to identify sound investment opportunities amid current market weaknesses[23][26]. Economic Context - The Chinese economy's GDP grew by 8.1% in 2021, but growth slowed in the fourth quarter due to heightened Sino-US tensions[11]. - The People's Bank of China lowered the reserve ratio requirement twice in 2021 to stimulate spending and growth[11]. - The adverse impact from the COVID-19 pandemic on overseas financial markets is expected to continue easing, although geopolitical tensions may lead to market volatility[23][26]. Corporate Governance - The Company is committed to maintaining good corporate governance standards to enhance shareholder value[131]. - The Board held 12 meetings during the year ended December 31, 2021, reviewing the operation and financial performance, and approving annual and interim results[151]. - The Company has adopted a board diversity policy considering various factors such as gender, age, cultural background, education, race, professional experience, skills, knowledge, and tenure to achieve board diversity[170]. Shareholder Rights - Shareholders are entitled to requisition to convene an extraordinary general meeting if they hold not less than one-tenth of the paid-up capital carrying voting rights[193]. - The Company emphasizes the protection of shareholders' rights and interests, allowing them to attend general meetings and raise questions regarding the Group's status and development plans[192]. - Any shareholder holding at least 10% of the paid-up capital can request the Board to convene a special general meeting[199]. Losses and Expenses - Realized losses on financial assets at fair value through profit or loss for the year ended December 31, 2021, were approximately HK$33,334,000, compared to HK$54,067,000 in 2020[20]. - Unrealized losses for the same period were approximately HK$12,249,000, down from unrealized gains of HK$39,953,000 in 2020[20]. - Total employee benefits expenses (excluding Directors' emoluments) for the year ended December 31, 2021, were approximately HK$1,273,000, a decrease from HK$1,621,000 in 2020[107].

Revenue and Income - Revenue for the six months ended June 30, 2021, was HK$88,000, compared to HK$54,000 for the same period in 2020, representing a 63% increase[5] - Dividend income increased to HK$88,000 for the six months ended 30 June 2021, compared to HK$54,000 in the same period of 2020, representing a growth of 63%[27] Losses and Expenses - The net loss on financial assets at fair value through profit or loss was HK$27,099,000, significantly higher than the loss of HK$6,127,000 in the previous year[5] - Loss from operations for the period was HK$29,364,000, compared to HK$7,407,000 in the prior year, indicating a substantial increase in operational losses[5] - Loss before income tax was HK$29,589,000, up from HK$8,196,000 year-over-year[6] - The total comprehensive income for the six months ended June 30, 2021, was a loss of HK$29,589,000, compared to a loss of HK$19,874,000 for the previous year[11] - The company reported a basic and diluted loss per share of HK$1.46, compared to HK$0.43 for the same period in 2020[6] - The accumulated losses increased to HK$296,499,000 as of June 30, 2021, from HK$266,910,000 at the end of 2020[11] - The remuneration for key management personnel during the six months ended June 30, 2021, was HK$953,000, a decrease of approximately 24% from HK$1,260,000 for the same period in 2020[86] Assets and Equity - Current assets decreased to HK$73,505,000 from HK$87,636,000, a decline of 16%[7] - Net current assets were HK$68,251,000, down from HK$80,169,000, reflecting a decrease of 15%[8] - Total equity decreased to HK$68,530,000 from HK$80,477,000, indicating a reduction of 15%[9] - As of June 30, 2021, total equity amounted to HK$68,530,000, a decrease from HK$80,477,000 at the end of 2020, reflecting a change in equity of HK$11,947,000 for the period[11] - Cash and cash equivalents at the end of the period were HK$14,794,000, a substantial increase from HK$389,000 at the end of June 2020[12] - The total net assets as of June 30, 2021, are approximately HK$68,530,000, compared to HK$80,477,000 as of December 31, 2020, indicating a decline of approximately 15%[81] Cash Flow - The net decrease in cash from operating activities was HK$1,536,000, significantly improved from a net decrease of HK$34,695,000 in the same period of 2020[12] - The net increase in cash from financing activities was HK$16,216,000, compared to HK$36,216,000 in the prior year, indicating a reduction in financing inflow[12] - The company reported a net decrease in cash from investing activities of HK$6,000, compared to HK$2,255,000 in the same period last year[12] Financial Instruments and Investments - Gross proceeds from trading of listed equity securities decreased significantly to approximately HK$3,195,000 in the first half of 2021, down from HK$37,480,000 in 2020, a decline of 91.5%[27] - Realised losses on financial assets at fair value through profit or loss were approximately HK$2,328,000 for the six months ended June 30, 2021, compared to realised gains of HK$19,525,000 in 2020[27] - Unrealised losses on financial assets at fair value through profit or loss amounted to HK$24,771,000 in the first half of 2021, compared to unrealised gains of HK$13,398,000 in 2020[27] - The total fair value of the Group's investments as of June 30, 2021, was approximately HK$48,955,000, down from HK$74,514,000 as of December 31, 2020[112] - The total cost of listed investments held as at June 30, 2021 was HK$84,038,000[120] Share Capital and Financing - The total issued share capital increased to 2,312,649,882 shares as of June 30, 2021, from 1,927,649,882 shares as of December 31, 2020, reflecting an increase of approximately 20%[74] - The company completed a share placement on May 14, 2021, issuing 385,000,000 shares at a net price of approximately HK$0.046 per share, raising net proceeds of about HK$17,600,000[78] - The intended use of proceeds from the share placements was for general working capital and potential investments[194] - A share consolidation proposal was announced on July 12, 2021, to consolidate every ten existing shares into one consolidated share, resulting in 231,264,988 consolidated shares post-consolidation[198] Market Conditions and Outlook - The market outlook remains cautious due to the severity of the Delta variant of COVID-19 and increasing tensions in Sino-U.S. relations[107] - The Hang Seng Index dropped over approximately 2,300 points or 7.4% from its peak of over 31,100 points in February 2021 to around 28,800 points in June 2021[106] - The Hang Seng TECH Index fell by approximately 2,850 points or 25.9% from over 11,000 points in February 2021 to around 8,150 points at the end of June 2021[106] Tax and Regulatory Matters - As of 30 June 2021, the Group had unused tax losses of approximately HK$306,945,000 available for offset against future profits[39] - The Group did not recognize any deferred tax assets related to tax losses due to the unpredictability of future profit streams[39] - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, with no material impact on the financial statements[22]

(Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） 2019 Annual Report 年報 C HINA FI NAN CIAL LEASIN G GRO UP LI MITED 中國金融租賃集團有限公司 ANNUAL REPORT 2019 年報 CONTENTS 目錄 2 Company Profile 公司簡介 3 Chairman's Statement 主席報告 6 Management Discussion and Analysis 管理層討論及分析 21 Corporate Governance Report 企業管治報告 36 Environmental, Social and Governance Report 環境、社會及管治報告 44 Biographical Details of Directors 董事履歷詳情 50 Report of the Directors 董事會報告書 59 Independent Auditor's Report 獨立核數師報告書 66 Consoli ...