Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 378,542,000, a significant increase from HKD 79,501,000 in the same period of 2023, representing a growth of 376%[2] - The net loss for the period was HKD 36,808,000, an improvement compared to a net loss of HKD 74,171,000 in the prior year, reflecting a reduction of 50.3%[3] - Total comprehensive loss for the period amounted to HKD 47,648,000, down from HKD 92,336,000 in the previous year, indicating a decrease of 48.6%[3] - The basic and diluted loss per share for the period was HKD 0.79, compared to HKD 1.90 in the same period last year, showing an improvement of 58.6%[2] - The company incurred a pre-tax loss of HKD 36,676,000 for the six months ended June 30, 2024, compared to a pre-tax loss of HKD 72,026,000 for the same period in 2023, indicating an improvement in financial performance[13][15] - The company reported a loss attributable to equity shareholders of HKD 36,808,000 for the six months ended June 30, 2024, compared to a loss of HKD 74,104,000 for the same period in 2023[23] - The company incurred operating losses of HKD 5,130,000 for the six months ended June 30, 2024, compared to an operating profit of HKD 584,000 for the same period in 2023[17] - The company recorded a fair value loss on investment properties of HKD 5,130,000, compared to a loss of HKD 11,364,000 in the previous year, indicating a reduction of 54.9%[2] Revenue Breakdown - Revenue from the supply chain business was HKD 327,019,000, while hotel management and catering services generated HKD 42,963,000 during the same period[14] - The supply chain business generated revenue of HKD 328,000,000, a substantial increase of HKD 311,200,000 year-on-year, attributed to the recovery of the Chinese market and consumer demand[43] - The hotel management and catering services segment reported revenue of HKD 49,200,000, a decrease of 19.8% compared to HKD 61,400,000 in the same period last year[44] Assets and Liabilities - Cash and cash equivalents as of June 30, 2024, were HKD 17,146,000, a decline from HKD 85,362,000 at the end of 2023[4] - The total assets less current liabilities stood at HKD 398,224,000, down from HKD 449,570,000 as of December 31, 2023[4] - Non-current assets decreased to HKD 301,443,000 from HKD 325,957,000, reflecting a reduction of 7.5%[4] - As of June 30, 2024, total assets amounted to HKD 872,932,000, a decrease from HKD 948,240,000 as of December 31, 2023[16] - Total liabilities as of June 30, 2024, were HKD 553,326,000, down from HKD 580,986,000 as of December 31, 2023[16] - The capital debt ratio increased to 116.2% as of June 30, 2024, compared to 103.9% as of December 31, 2023, indicating a rise in leverage[54] Cash Flow and Liquidity - The company is actively negotiating with banks to revise repayment terms to alleviate liquidity pressure and improve financial conditions[8] - Plans are in place to secure additional funding through shareholder loans to repay overdue bank borrowings[8] - The company has accelerated measures to recover payments from customers, which is critical for improving cash flow[8] - The liquidity ratio was reported at 1.20 as of June 30, 2024, slightly down from 1.25 as of December 31, 2023, reflecting stable financial resources[54] Legal and Governance Issues - The company is facing a lawsuit from a bank for the recovery of principal and interest amounting to approximately HKD 314,901,000, which exceeds the company's cash and cash equivalents[7] - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with no dividend in the same period of 2023[24] - The company has adhered to the corporate governance code principles as of June 30, 2024, with the exception of the chairman's absence at the annual general meeting due to other business commitments[64] - All directors have confirmed compliance with the standard code of conduct for securities trading during the six-month period ending June 30, 2024[65] - The audit committee has reviewed the unaudited interim financial statements for the six months ending June 30, 2024, and believes they comply with applicable accounting standards and listing rules[66] Operational Changes and Strategies - The company aims to enhance the performance of its supply chain business by focusing on the domestic market and actively seeking new potential clients[43] - The company has implemented prudent strategies to adapt to changing market dynamics in the hotel and catering services sector, aiming to improve product and service quality[45] - The expected credit loss provision decreased from HKD 49,400,000 to a reversal of HKD 3,200,000, mainly due to the recovery of significant overdue receivables in the supply chain business[49] - The group plans to acquire a company engaged in iron ore and iron concentrate production, which is expected to diversify revenue sources and enhance sustainable development[61] - The group aims to strengthen its supply chain business performance and achieve vertical integration for cost efficiency following the acquisition[62] Employee and Management Information - The total remuneration for key management personnel was HKD 2,191,000 for the six months ended June 30, 2024, compared to HKD 1,987,000 for the same period in 2023[38] - Employee count decreased to approximately 280 as of June 30, 2024, from 310 a year earlier, indicating a reduction in workforce[59] Other Financial Information - The company has implemented changes in accounting policies, but these have not significantly impacted the financial results for the current or prior periods[10] - The company recorded interest income of HKD 154,000 for the six months ended June 30, 2024, a significant decrease from HKD 1,174,000 in 2023[17] - The company purchased property, plant, and equipment amounting to approximately HKD 2,650,000 during the six months ended June 30, 2024[25] - The company recorded a fair value loss of HKD 96,000 on financial assets for the six months ended June 30, 2024[17] - The investment property in Yunfu generated rental income of HKD 1,300,000, with a fair value of HKD 165,200,000 as of June 30, 2024[46] - Direct costs and operating expenses surged from HKD 67,500,000 to HKD 361,500,000, an increase of HKD 294,000,000, primarily due to the significant growth in the supply chain business[49] - Trade receivables and other receivables amounted to HKD 442.9 million as of June 30, 2024, up from HKD 413 million as of December 31, 2023, with overdue trade receivables of HKD 17.3 million within 12 months[52] - Cash and cash equivalents decreased to HKD 17.1 million as of June 30, 2024, from HKD 85.4 million as of December 31, 2023, while interest-bearing borrowings stood at HKD 371.5 million[53] - The group has provided financial guarantees amounting to HKD 298.5 million as of June 30, 2024, down from HKD 305.8 million as of December 31, 2023[57] - The group has no significant investments or major acquisitions during the reporting period, maintaining a conservative capital expenditure approach[58] - The fair value loss of investment properties was HKD 11,400,000, reflecting challenges in the commercial environment in China[51]

Financial Performance - The company recorded a net loss of approximately HKD 202,200,000 for the year ending December 31, 2023, compared to a net loss of HKD 14,300,000 for the year ending December 31, 2022, primarily due to significant increases in expected credit losses and fair value losses on investment properties [6]. - Total revenue for the year ended December 31, 2023, was HKD 422,500,000, a decrease of 41.8% from HKD 726,500,000 for the year ended December 31, 2022 [185]. - The supply chain business generated revenue of HKD 298,300,000 for the year ended December 31, 2023, significantly down from HKD 632,200,000 in the previous year [179][185]. - The hotel management and catering services segment contributed revenue of HKD 121,500,000 for the year ended December 31, 2023, showing growth despite challenges [180]. - The company’s independent auditor has issued a disclaimer of opinion on the consolidated financial statements due to the significance of the matters described [14]. Asset and Liability Management - Fair value losses on investment properties amounted to HKD 55,400,000, a substantial increase from HKD 400,000 in the previous year, attributed to a sluggish real estate market in China [7]. - Trade receivables and other receivables decreased by HKD 224,000,000, mainly due to a reduction in trade receivables from supply chain operations, reflecting a slowdown in business [8]. - The company faces immediate repayment demands on two interest-bearing bank loans totaling approximately RMB 301,567,000 (approximately HKD 330,578,000) as of December 31, 2023 [15]. - As of December 31, 2023, the company faces a maximum liability of HKD 305,800,000 due to breaches of loan agreements secured by the company [32]. - The company reported a total borrowings of approximately HKD 367.3 million as of December 31, 2023, down from HKD 448.5 million in 2022, representing a decrease of about 18.5% [92]. Cash Flow and Liquidity - The company's cash and cash equivalents increased to HKD 85,400,000 as of December 31, 2023, up from HKD 37,700,000 in the previous year, while interest-bearing borrowings decreased to HKD 381,600,000 from HKD 470,900,000 [13]. - The debt-to-equity ratio rose to 103.9% as of December 31, 2023, compared to 82.8% in the previous year, primarily due to significant losses impacting shareholder equity [13]. - The company has a current ratio of 1.25, indicating stable liquidity compared to 1.29 in the previous year [13]. - The board has prepared cash flow forecasts covering at least the next twelve months, believing the company will have sufficient working capital to meet its financial obligations [17]. - The company has successfully recovered trade receivables exceeding RMB 76,000,000, aiding in ensuring sufficient operating capital through cash inflows [26]. Strategic Initiatives - The company plans to obtain additional funding through shareholder loans to repay overdue bank loans, with one major shareholder verbally agreeing to provide necessary funds if needed [24]. - The company is actively pursuing the acquisition of a company engaged in iron ore and iron concentrate production to diversify its supply chain business [52]. - The company aims to enhance customer value creation and strengthen core competitiveness through strategic acquisitions and operational improvements in 2024 [175]. - The management is focusing on domestic market opportunities and expects an increase in demand for the supply chain business [179]. - The company will continue to focus on advancing its hotel management and catering services business [52]. Governance and Compliance - The company has complied with applicable laws and regulations without any significant violations during the fiscal year ending December 31, 2023 [131]. - The company has adopted a standard code for securities trading that meets or exceeds the listing rules [141]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors [144]. - The board is committed to reviewing the effectiveness of the corporate governance structure and making changes as necessary [140]. - All independent non-executive directors confirmed their independence annually, ensuring compliance with listing rules [152]. Employee and Operational Insights - As of December 31, 2023, the total employee cost was approximately HKD 58,200,000, accounting for 13.8% of the company's revenue [47]. - The company had approximately 300 employees as of December 31, 2023, down from about 330 employees in 2022 [47]. - The overall gender diversity within the company is approximately 43%, with 129 out of 302 employees being female [197]. - The management is focused on operational efficiency and a customer-centric approach to drive sustainable growth in the hotel management and catering services sector [192]. - The company has implemented decisive measures in response to challenges, including modifying penalties and suspending order acceptance due to delayed payments from several clients [191].

Financial Performance - The company reported a revenue of HKD 422,492,000 for the year ended December 31, 2023, a decrease of 41.8% compared to HKD 726,536,000 in 2022[11]. - The net loss for the year was HKD 202,150,000, significantly higher than the loss of HKD 14,261,000 in the previous year, representing a year-over-year increase of 1,319.5%[11]. - The total comprehensive loss for the year was HKD 216,739,000, compared to HKD 77,493,000 in 2022, indicating a substantial increase in overall losses[12]. - The company reported a net loss attributable to shareholders of HKD 201,747,000 for 2023, compared to a loss of HKD 14,259,000 in 2022, indicating a significant increase in losses[60]. - The company reported a pre-tax loss of HKD 199,451,000 for the current period, reflecting ongoing operational challenges[50]. Revenue Breakdown - Total revenue from external customers was HKD 422,492,000, with the supply chain business contributing HKD 298,284,000, property investment contributing HKD 2,672,000, and hotel management and catering services contributing HKD 121,536,000[66]. - Revenue from supply chain business products was HKD 294,706,000, down 53.0% from HKD 626,693,000 in the previous year[17]. - The supply chain business generated revenue of HKD 298,300,000, down from HKD 632,200,000 in the previous year[143]. - Revenue from hotel management and catering services increased from HKD 87,500,000 in 2022 to HKD 121,500,000 in 2023, showing growth despite challenges[170]. Expenses and Costs - Direct costs and operating expenses decreased to HKD 389,177,000 from HKD 689,812,000, reflecting a reduction of 43.6%[11]. - The company recorded a significant increase in administrative expenses, which rose to HKD 43,612,000 from HKD 43,174,000, a rise of 1.0%[11]. - The company reported a total cost of goods sold of HKD 293,191,000 from supply chain operations, down from HKD 594,619,000 in the previous year, indicating a reduction of approximately 50.7%[34]. - The company incurred financial costs of HKD 31,863,000 during the year, contributing to the overall loss[86]. Asset and Liability Management - The company's total assets decreased from HKD 658,903,000 in 2022 to HKD 449,570,000 in 2023, reflecting a decline in overall asset value[52]. - The company's equity total decreased from HKD 568,923,000 in 2022 to HKD 367,254,000 in 2023, indicating a decline in shareholder equity[55]. - The total liabilities as of December 31, 2023, were HKD 580,986,000, compared to HKD 758,884,000 in 2022, indicating a reduction in debt[88]. - The company's overdue receivables over 12 months increased to HKD 20,408,000 in 2023 from HKD 17,354,000 in 2022, representing a 6.06% increase[102]. - The company's bank loans amounted to HKD 367,308,000 in 2023, down from HKD 448,450,000 in 2022, reflecting a reduction of 18.06%[127]. Credit Risk and Provisions - The company recognized an expected credit loss provision of HKD 60,090,000 for trade receivables, which increased from HKD 18,259,000 in the previous year, reflecting a significant rise in credit risk[34]. - The expected credit loss provision increased to HKD 89,000,000, up from HKD 19,500,000 in the previous year, primarily due to delayed payments from several customers in the supply chain business[147]. - The net expected credit loss provision for the supply chain business was HKD 56,199,000 in 2023, up from HKD 15,725,000 in 2022[89]. Funding and Liquidity - The company plans to obtain additional funding through shareholder loans to address liquidity issues and repay overdue bank loans[24]. - Cash and cash equivalents at year-end were HKD 85,362,000, which is insufficient to cover the total overdue bank loans of approximately HKD 330,578,000[24]. - The company has outstanding loans totaling approximately RMB 294,300,000 (about HKD 322,612,000) that have not been repaid, leading to legal claims from the bank[108]. - The company is actively negotiating with banks to revise repayment terms for existing loans that were demanded for immediate repayment due to covenant breaches[24]. Future Outlook and Strategy - For 2024, the group is cautiously optimistic about its supply chain business and is actively managing risks while exploring growth opportunities[194]. - The company plans to enhance product and service quality in hotel management and catering services to maintain competitiveness[141]. - The group is in discussions with banks to renew and extend overdue bank loans, expecting successful negotiations in the coming months[195].

智通财经APP获悉，百德国际(02668)大涨超24%，创阶段新高，截至发稿，涨24.29%，报0.43港元，成交额156万港元。 消息面上，百德国际公布，于2024年2月29日，该公司拟向宗传投资控股有限公司收购宗传投资集团有限公司全部已发行股本，代价为约人民币2.9亿元，公司将以每股代价股份0.336港元的发行价向卖方或其指定第三方配发及发行9.5亿股代价股份的方式支付。 于完成后，该集团将持有目标公司全部已发行股本，使目标集团(包括(其中包括)主要于中国从事生产及销售金属商品的抚顺兴洲)将成为公司附属公司，其财务业绩将于公司财务报表综合入账。 公告称，透过收购事项，该集团能够将抚顺兴洲的铁矿石及铁精粉生产及销售业务纳入其现有供应链业务，从而实现业务及市场多元化。 ...

Revenue Performance - Total revenue for the six months ended June 30, 2023, was HKD 79,500,000, a decrease of 78.8% compared to HKD 374,700,000 for the same period in 2022[17]. - Supply chain business generated revenue of HKD 16,800,000, a significant drop from HKD 342,500,000 in the same period last year[9][17]. - Hotel management and catering services reported revenue growth from HKD 28,400,000 to HKD 61,400,000, marking a substantial increase[10][17]. - Revenue for the six months ended June 30, 2023, was HKD 79,501 thousand, a decrease of 78.8% compared to HKD 374,684 thousand for the same period in 2022[66]. - Revenue from supply chain business was HKD 14,937,000, while hotel management and catering services generated HKD 53,424,000 for the first half of 2023[96]. Financial Losses - The company recorded a net loss of approximately HKD 74,200,000 for the six months ended June 30, 2023, compared to a net profit of HKD 31,300,000 for the same period in 2022[20]. - The company reported a loss of HKD 74,171 thousand for the six months ended June 30, 2023, compared to a profit of HKD 31,266 thousand in the previous year[66]. - The company reported a net loss attributable to equity shareholders of HKD 74,104,000 for the six months ended June 30, 2023, compared to a profit of HKD 31,266,000 in the same period of 2022[106]. - Total comprehensive loss for the period amounted to HKD 92,336,000, significantly higher than the comprehensive loss of HKD 10,639,000 in the previous year[150]. Cost Management - Direct costs and operating expenses decreased from HKD 327,600,000 to HKD 67,500,000, while administrative expenses fell from HKD 36,700,000 to HKD 20,700,000[18]. - Financial costs decreased from HKD 17,200,000 to HKD 12,500,000 due to loan repayments[18]. - The group recognized impairment losses of HKD 49,360,000 for trade receivables and other receivables during the six months ended June 30, 2023, compared to an impairment reversal of HKD 1,834,000 in the previous year[122]. Assets and Liabilities - Total assets as of June 30, 2023, were HKD 1,083,452 thousand, down from HKD 1,327,807 thousand as of December 31, 2022[71]. - Current liabilities decreased to HKD 519,177 thousand from HKD 668,904 thousand at the end of 2022, reflecting a reduction of 22.4%[71]. - The total liabilities as of June 30, 2023, were HKD 603,305,000, compared to HKD 758,884,000 in the previous year[99]. - Trade receivables (net of expected credit loss provisions) decreased to HKD 452,708,000 as of June 30, 2023, from HKD 634,037,000 as of December 31, 2022, representing a decline of approximately 28.6%[113]. Operational Adjustments - As of June 30, 2023, the group employed approximately 310 staff, down from about 400 staff a year earlier, reflecting adjustments in operational needs[36]. - The management is actively addressing challenges in the supply chain business and aims to improve overall performance despite current adversities[37]. - The company is focusing on operational efficiency and customer satisfaction to drive growth in the competitive hotel management and catering services sector[13]. Corporate Governance - The company has complied with the corporate governance code principles as per the listing rules, with minor deviations noted[53]. - The board will continue to review the effectiveness of the corporate governance structure and make changes as necessary[54]. - All directors confirmed compliance with the standard code during the six-month period ending June 30, 2023[55]. Shareholder Information - As of June 30, 2023, the total number of shares outstanding is 3,900,000,000[43]. - Teng Le Holdings owns 980,000,000 shares, representing 25.13% of the total shares[45]. - Yong Heng Holdings holds 720,000,000 shares, accounting for 18.46% of the total shares[45]. - Chang Feng Limited possesses 596,253,000 shares, which is 15.29% of the total shares[45]. - Bao Xin Financial Group has a stake of 571,079,950 shares, equivalent to 14.64% of the total shares[45]. Cash Flow and Investments - Cash generated from operating activities was HKD 26,795,000, a recovery from a cash outflow of HKD 89,311,000 in the prior year[152]. - The company recorded a net cash inflow from investing activities of HKD 38,812,000, compared to HKD 164,292,000 in the same period last year[152]. - The cash and cash equivalents at the end of the period were HKD 38,945,000, down from HKD 61,962,000 at the end of the previous year[152]. Future Outlook - The company plans to continue focusing on hotel management and catering services, aiming to enhance operational efficiency and market presence[35]. - The company has established a strategic partnership to form a new supply chain company aimed at expanding its customer base[12]. - The company plans to continue its strategy of leveraging its investment properties for rental income and capital appreciation[109].

Revenue Performance - For the six months ended June 30, 2023, total revenue decreased to HKD 79,501 thousand, down 78.8% from HKD 374,684 thousand in the same period of 2022[10] - Revenue from sales of supply chain products was HKD 14,937 thousand, a significant drop of 95.6% compared to HKD 338,876 thousand in the previous year[6] - Revenue from hotel management and catering services increased to HKD 53,424 thousand, up 121.9% from HKD 24,165 thousand in the prior year[6] - The group's total revenue for the six months ended June 30, 2023, was HKD 79,500,000, a decrease of 78.8% compared to HKD 374,700,000 for the same period in 2022[138] - The supply chain business generated revenue of HKD 16,800,000 for the six months ended June 30, 2023, down from HKD 342,500,000 in the previous year[138] - The hotel management and catering services segment reported revenue growth from HKD 28,400,000 to HKD 61,400,000 during the same period[139] Financial Losses - The company reported a loss before tax of HKD 72,026 thousand, compared to a profit of HKD 33,762 thousand in the same period last year[10] - The net loss attributable to equity shareholders for the period was HKD 74,104 thousand, compared to a profit of HKD 31,266 thousand in the previous year[10] - Total comprehensive loss for the period amounted to HKD 92,336 thousand, compared to a total comprehensive income of HKD 10,639 thousand in the same period of 2022[12] - The group reported a loss before tax of HKD 72,026,000 for the six months ended June 30, 2023, compared to a profit before tax of HKD 33,762,000 for the same period in 2022[23][24] - The group’s total comprehensive income for the six months ended June 30, 2023, was a loss of HKD 74,171,000, compared to a profit of HKD 31,266,000 for the same period in 2022[23][24] - The net loss for the six months ended June 30, 2023, was approximately HKD 74,200,000, compared to a net profit of HKD 31,300,000 for the same period in 2022[113] Asset and Liability Changes - Non-current assets decreased to HKD 432,914 thousand as of June 30, 2023, down from HKD 462,121 thousand at the end of 2022[13] - Current assets decreased to HKD 650,538 thousand, compared to HKD 865,686 thousand at the end of the previous year[13] - Total liabilities decreased to HKD 519,177 thousand from HKD 668,904 thousand at the end of 2022[14] - The company's equity attributable to equity shareholders decreased to HKD 476,651 thousand from HKD 568,923 thousand at the end of 2022[14] - As of June 30, 2023, total assets amounted to HKD 1,083,452,000, a decrease from HKD 1,327,807,000 as of December 31, 2022[50] - Total liabilities as of June 30, 2023, were HKD 603,305,000, down from HKD 758,884,000 as of December 31, 2022[50] - The company’s trade receivables at the end of the reporting period were HKD 452,708,000, a decrease from HKD 634,037,000 as of December 31, 2022[65] - The company had bank loans secured amounting to HKD 362,426,000 as of June 30, 2023, compared to HKD 435,996,000 as of December 31, 2022[70] - The company’s trade payables were HKD 76,117,000 as of June 30, 2023, compared to HKD 152,386,000 as of December 31, 2022[68] - The company’s supply chain business reported segment assets of HKD 533,520,000 as of June 30, 2023, down from HKD 746,028,000 as of December 31, 2022[50] - The company’s deferred tax assets and liabilities were HKD 4,782,000 and HKD 36,298,000 respectively as of June 30, 2023[50] Operational Efficiency and Cost Management - The company focused on enhancing procurement cost control and optimizing operational efficiency in its hotel management and catering services segment[108] - The group continues to focus on operational efficiency and customer experience to drive growth in the competitive hotel management and catering services industry[136] - The company implemented stricter credit risk control measures, leading to a reduction in sales orders and delayed payments from several customers[78] - Direct costs and operating expenses decreased significantly from HKD 327,600,000 to HKD 67,500,000 for the six months ended June 30, 2023[112] - Financial costs reduced from HKD 17,200,000 to HKD 12,500,000 due to loan repayments during the same period[113] Employee and Corporate Structure - As of June 30, 2023, the group had approximately 310 employees, a decrease from about 400 employees as of June 30, 2022[155] - The group has provided corporate guarantees for financing to several subsidiaries, with a guarantee amount of HKD 300,900,000 as of June 30, 2023, down from HKD 314,700,000 as of December 31, 2022[165] Dividends and Shareholder Returns - The group did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[31] - The board does not recommend any interim dividend for the six months ended June 30, 2023, consistent with zero dividend for the same period in 2022[169] Credit Loss Provisions - The group recorded an increase in expected credit loss provisions from HKD 1,800,000 to HKD 49,400,000 due to delayed payments from certain customers in the supply chain business[141] - The group's trade receivables (net of expected credit loss provisions) were HKD 442,100,000 as of June 30, 2023, down from HKD 624,200,000 as of December 31, 2022[144] - The company recorded an impairment loss of HKD 49,360,000 for trade receivables and other receivables during the six months ended June 30, 2023[93]

Financial Performance - For the fiscal year ending December 31, 2022, the company reported total revenue of HKD 726,500,000, a decrease of 65.8% compared to HKD 2,125,200,000 for the previous year[6]. - The supply chain business generated revenue of HKD 632,200,000, down significantly from HKD 2,114,800,000 in the prior year, reflecting a decline of approximately 70%[25]. - The hotel management and catering services segment contributed revenue of HKD 87,500,000, despite challenges posed by the COVID-19 pandemic[7]. - The company recorded a net loss of approximately HKD 14,300,000 for the fiscal year, compared to a net loss of HKD 5,600,000 in the previous year, indicating a worsening financial position[19]. - The supply chain business's segment profit was HKD 8,800,000, representing a decline of 68.1% year-over-year[26]. - The total revenue for the year ended December 31, 2022, was HKD 726,500,000, a decrease of 65.8% compared to HKD 2,125,200,000 for the year ended December 31, 2021, primarily due to a decline in supply chain business revenue to HKD 632,200,000 from HKD 2,114,800,000[31]. - The total revenue from lending, securities investment, leasing, and property investment was approximately HKD 6,800,000, down from HKD 10,400,000 for the year ended December 31, 2021[32]. - The operating profit for the year was HKD 15,025,000, down from HKD 47,703,000 in the previous year, reflecting a decline of 68.6%[166]. - The net loss for the year was HKD 14,261,000, compared to a loss of HKD 5,648,000 in 2021, indicating an increase in losses[166]. - The company's basic and diluted loss per share for the year was HKD 0.37, compared to HKD 0.15 in the previous year, reflecting a worsening in per-share performance[166]. Cost Management - Direct costs and operating expenses significantly decreased from HKD 2,064,100,000 for the year ended December 31, 2021, to HKD 689,800,000 for the year ended December 31, 2022, mainly due to the substantial decline in supply chain business revenue, which accounted for over 87% of total revenue[33]. - The financial costs decreased from HKD 48,000,000 for the year ended December 31, 2021, to HKD 31,900,000 for the year ended December 31, 2022, primarily due to loan repayments during the year[35]. - The company reported direct costs and operating expenses of HKD 689,812,000 for the year, a decrease from HKD 2,064,125,000 in 2021, indicating a reduction in operational costs[166]. - Administrative expenses increased from HKD 46,300,000 for the year ended December 31, 2021, to HKD 62,700,000 for the year ended December 31, 2022, primarily due to expected credit loss provisions and costs associated with the newly acquired hotel management and catering services[57]. Business Strategy and Diversification - The company is actively seeking opportunities for business diversification and revenue stream expansion, including the acquisition of 卓見實業集團有限公司 to enhance its hotel management and catering services[18]. - The management remains focused on maintaining market position and achieving stable revenue growth despite ongoing pandemic challenges[26]. - The company aims to create value for shareholders, customers, and employees by taking proactive measures to navigate challenges[9]. - The company aims to enhance the performance of its core supply chain business by eliminating non-value-added activities and expanding its customer base in 2023[76]. - The group aims to enhance its operational efficiency and expand its customer base in the hotel management and catering services sector, responding to increased demand post-pandemic[125]. Financial Position and Liquidity - Cash and cash equivalents as of December 31, 2022, were HKD 37,700,000, compared to HKD 15,400,000 in the previous year, while interest-bearing borrowings decreased to HKD 470,900,000 from HKD 527,600,000[39]. - The capital debt ratio was 82.8% as of December 31, 2022, compared to 81.6% in 2021, indicating a slight increase in leverage[62]. - The current ratio remained stable at 1.29, down from 1.30 in the previous year, reflecting consistent liquidity management[62]. - The company's total borrowings as of December 31, 2022, were approximately HKD 448,500,000, down from HKD 523,100,000 in 2021, representing a reduction of 14.3%[149]. - The company has no significant contingent liabilities as of December 31, 2022, maintaining a stable risk profile[87]. Investments and Acquisitions - The company completed the acquisition of all issued shares of Zhuojian Industrial for a cash consideration of HKD 120,000,000, which was finalized on April 1, 2022[96]. - The company completed the sale of its minority stake in Jinyu Limited on May 31, 2022, and no longer holds any equity in Jinyu[74]. - The company sold a 14.73% stake in Jinyu for a cash consideration of HKD 110,000,000[97]. - The company invested approximately HKD 2,200,000 in property, plant, and equipment during the year, significantly up from HKD 25,000 in 2021[150]. Risk Management - The company is monitoring market developments and is prepared to adjust investment strategies as necessary to optimize its portfolio[29]. - The supply chain business is significantly impacted by the downturn in the Chinese real estate market, leading to increased expected credit losses[26]. - The company will continue to adopt a prudent approach in developing its supply chain business and will tighten credit risk assessments while seeking opportunities with valuable customers[51]. - The company will continue to monitor foreign currency and interest rate risks closely, with no significant exposure identified at this time[63]. Shareholder Returns - The board does not recommend the payment of any dividends for the year ended December 31, 2022[101]. - The company issued ordinary shares, raising 198,225 thousand HKD during the year[171].

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 726,536,000, a decrease of 65.8% compared to HKD 2,125,223,000 in 2021[17] - The company reported a net loss of HKD 14,261,000 for the year, compared to a net loss of HKD 5,648,000 in the previous year, representing an increase in loss of 152.5%[17] - The basic and diluted loss per share for the year was HKD 0.37, compared to HKD 0.15 in the previous year, indicating a worsening in per-share performance[17] - Revenue from supply chain business products was HKD 626,693,000, down from HKD 2,103,228,000 in 2021, a decrease of 70.2%[23] - The company reported a pre-tax loss of HKD 16,838,000 for the year, compared to a pre-tax loss of HKD 271,000 in the previous year[43][44] - The total loss for the year was HKD 5.648 million, with financial costs amounting to HKD 47.974 million[66] - The company reported a net loss of approximately HKD 14,300,000 for the year ended December 31, 2022, compared to a net loss of HKD 5,600,000 for the previous year, primarily due to decreased revenue from the supply chain business and expected credit losses of HKD 18,300,000[132] Assets and Liabilities - Non-current assets increased to HKD 462,121,000 in 2022 from HKD 459,856,000 in 2021, showing a slight growth of 0.5%[3] - Current assets decreased significantly from HKD 1,092,003,000 in 2021 to HKD 865,686,000 in 2022, a decline of 20.7%[3] - The company's total liabilities decreased from HKD 841,446,000 in 2021 to HKD 668,904,000 in 2022, a reduction of 20.5%[3] - The company’s equity attributable to shareholders decreased from HKD 646,416,000 in 2021 to HKD 568,923,000 in 2022, a decline of 12.0%[10] - The total assets of the company were valued at HKD 1,327,807,000, while total liabilities included deferred tax liabilities of HKD 37,130,000[48] - The total assets as of December 31, 2022, were HKD 1,551.859 million, with total liabilities of HKD 758.884 million[69] - The company’s total assets as of December 31, 2022, amounted to HKD 1,236,960,000, with significant contributions from various segments including hotel management and property investment[91] Revenue Streams - The supply chain business generated revenue of HKD 632.216 million, while the hotel management and catering services contributed HKD 87.504 million[67] - Revenue from the hotel management and catering services segment reached HKD 87,500,000 for the year ended December 31, 2022, compared to zero in the previous year, indicating a new revenue stream for the company[129] - The company reported a significant increase in revenue from the Chinese market, rising to HKD 387.369 million in 2022 from HKD 248.495 million in 2021[72] Expenses and Costs - Employee costs, including directors' remuneration, rose to HKD 55,222,000 from HKD 18,926,000, an increase of 191.5%[35] - The group recorded administrative expenses of HKD 62,700,000, an increase of HKD 16,400,000 from HKD 46,300,000 in the previous year, primarily due to expected credit loss provisions and costs from newly acquired hotel management and catering services[158] - The company's financial costs decreased from HKD 48,000,000 for the year ended December 31, 2021, to HKD 31,900,000 for the year ended December 31, 2022, mainly due to loan repayments[132] Cash and Cash Equivalents - The company’s cash and cash equivalents decreased to HKD 37,684,000 in 2022 from HKD 15,442,000 in 2021, reflecting a decline of 142.5%[3] - The group's cash and cash equivalents decreased to HKD 5,465,000 from HKD 15,113,000 as of December 31, 2021[136] - The group's cash and cash equivalents increased to HKD 37.7 million in 2022 from HKD 15.4 million in 2021, while interest-bearing borrowings decreased to HKD 470.9 million from HKD 527.6 million[163] Investments and Acquisitions - The company acquired non-current assets worth HKD 219.926 million from subsidiaries during the reporting period[70] - The acquisition of Zhuojian Industrial Group was completed for HKD 120 million on April 1, 2022, making it a wholly-owned subsidiary[198] - The company expanded its business into hotel management and catering services through the acquisition of Chuang Jian Industrial Group, which has become a major growth area[123] Risk Management and Future Plans - The company plans to continue focusing on its core business segments, including leasing services and property investment, to drive future growth[40] - The group aims to enhance the performance of its core supply chain business by eliminating non-value-added activities and expanding its customer base in 2023[178] - The group will maintain strict risk control in its leasing business and extend services to other market participants while being cautious in property investment and lending[179] Employee Information - As of December 31, 2022, the group had approximately 330 employees, a significant increase from about 50 employees in 2021[200] - The total employee cost for the year ended December 31, 2022, was approximately HKD 55,200,000, representing 7.6% of the group's revenue[200] Other Financial Metrics - The capital debt ratio was 82.8% as of December 31, 2022, compared to 81.6% in 2021, indicating stable financial leverage[164] - The group reported a significant reduction in accounts payable from HKD 310.8 million in 2021 to HKD 152.4 million in 2022, aligning with a slowdown in supply chain operations[189] - The total amount of receivables from finance leases was HKD 27,700,000, with recognized revenue of HKD 2,300,000 for the year[153]

Revenue Performance - For the six months ended June 30, 2022, the total revenue of the group was HKD 374,700,000, a decrease of 37.3% compared to HKD 597,500,000 for the same period in 2021[17]. - The supply chain business generated revenue of HKD 342,500,000, down HKD 248,500,000 from HKD 591,000,000 in the previous year, reflecting a significant decline due to reduced usage of non-ferrous metals and construction materials[9]. - The hotel management and catering services segment recorded revenue of HKD 28,400,000 during the review period, compared to zero revenue in the same period last year[17]. - The total revenue from lending, securities investment, leasing, and property investment was approximately HKD 3,700,000, down from HKD 6,500,000 in the previous year[17]. - Total revenue for the six months ended June 30, 2022, was HKD 374,684,000, a decrease of 37.4% compared to HKD 597,499,000 for the same period in 2021[59]. - Revenue from supply chain business was HKD 338,876, while hotel management and catering services generated HKD 24,165[90]. Profitability - Net profit for the six months ended June 30, 2022, was approximately HKD 31.3 million, an increase from HKD 12.8 million for the same period in 2021, mainly due to increased dividend income from financial assets and reduced financial costs[20]. - Operating profit for the period was HKD 50,968,000, compared to HKD 45,210,000 in the previous year, reflecting an increase of 12.3%[59]. - Profit before tax increased to HKD 33,762,000, up 70.7% from HKD 19,774,000 in the prior year[59]. - The company reported a profit of HKD 31,266,000 for the six months ended June 30, 2022, compared to HKD 12,827,000 in the same period of 2021, representing a year-over-year increase of 143.5%[61]. - The company's profit attributable to equity shareholders for the six months ended June 30, 2022, was HKD 31,266,000, compared to HKD 12,827,000 for the same period in 2021, representing a significant increase of 143.5%[100]. Expenses and Costs - The group's direct costs and operating expenses decreased significantly from HKD 563.7 million to HKD 327.6 million for the six months ended June 30, 2022, primarily due to a decline in supply chain business, which accounted for over 91% of total revenue during the period[19]. - Total income tax expense for the six months ended June 30, 2022, was HKD 2,496,000, a decrease of 64.0% from HKD 6,947,000 in 2021[98]. - The total remuneration for key management personnel for the six months ended June 30, 2022, was HKD 2,173,000, a decrease of 20.7% compared to HKD 2,742,000 for the same period in 2021[23]. Assets and Liabilities - As of June 30, 2022, cash and cash equivalents amounted to HKD 62 million, up from HKD 15.4 million at the end of 2021, while interest-bearing borrowings increased to HKD 568.2 million from HKD 527.6 million[25]. - The capital debt ratio increased to 89.4% as of June 30, 2022, from 81.6% at the end of 2021, mainly due to increased lease liabilities from the acquisition of a subsidiary[25]. - Non-current assets increased to HKD 525,424,000 as of June 30, 2022, up from HKD 459,856,000 at the end of 2021, reflecting a growth of 14.2%[64]. - Current assets decreased to HKD 989,704,000 from HKD 1,092,003,000, indicating a decline of 9.4%[64]. - The total liabilities decreased to HKD 767,953,000 from HKD 841,446,000, reflecting a reduction of 8.7%[64]. - The company’s equity attributable to shareholders was HKD 635,775,000, down from HKD 646,416,000, a decrease of 1.0%[67]. Investments and Acquisitions - The group completed the acquisition of all issued shares of Zhuojian Industrial Group for HKD 120,000,000, expanding into hotel management and catering services[11]. - The company acquired 100% of the issued shares of 卓見實業集團 for a total cash consideration of approximately HKD 120,000,000 on April 1, 2022[140]. - The identifiable net assets of 卓見實業集團 at the acquisition date had a fair value of HKD 116,145,000, resulting in goodwill of HKD 3,855,000[142]. - The acquired subsidiary contributed approximately HKD 28,435,000 to the company's revenue, but incurred a loss of about HKD 8,781,000 from the acquisition date to the end of the reporting period[144]. Shareholder Information - Major shareholders include Teng Le Holdings with 1,092,000,000 shares (28.00%) and Yongheng Holdings with 720,000,000 shares (18.46%) as of June 30, 2022[44]. - The total number of shares outstanding as of June 30, 2022, was 3,900,000,000[42]. - The weighted average number of ordinary shares issued increased to 3,900,000 for the six months ended June 30, 2022, from 3,441,436 in 2021, reflecting a growth of 13.3%[100]. Corporate Governance and Compliance - The audit committee reviewed the interim financial statements for the six months ended June 30, 2022, with no objections to the accounting treatment adopted by the group[53]. - The company has complied with the corporate governance code principles during the reporting period, with minor deviations noted[49]. - The company maintained a sufficient public float of at least 25% of its issued shares as required by the listing rules[54]. Financial Reporting and Standards - The interim financial data is prepared in accordance with the Hong Kong Financial Reporting Standards and is unaudited, reviewed by a certified public accountant firm[76]. - The company adopted several revised Hong Kong Financial Reporting Standards during the reporting period, which did not have a significant impact on the financial position and performance[78]. - The company has not reported any significant changes in accounting policies that would materially affect the financial statements during the interim period[78]. Risk Management - The group will continue to adopt prudent risk management policies in its lending business, with no recorded receivables as of June 30, 2022[14]. - The company will maintain a cautious investment strategy in securities, closely monitoring market changes and adjusting its portfolio as necessary[15]. - The management will maintain steady development in the leasing business while adhering to regulatory requirements and strict risk control[39]. Other Information - No interim dividend was declared for the six months ended June 30, 2022, compared to zero HKD for the same period in 2021[36]. - No significant events occurred after the reporting period[38]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2022[47].

Financial Performance - The total revenue for the year ended December 31, 2021, was HKD 2,125,200,000, a decrease of 29.2% compared to HKD 3,003,200,000 for the year ended December 31, 2020[23]. - Supply chain business revenue was HKD 2,114,800,000, down HKD 868,800,000 from HKD 2,983,600,000 in the previous year[24]. - The company recorded a net loss of approximately HKD 5,600,000 for the year, compared to a net profit of approximately HKD 21,300,000 in the previous year[24]. - Revenue from other businesses, including lending, securities investment, leasing, and property investment, was approximately HKD 10,400,000, down from HKD 19,600,000 in the previous year[24]. - Total revenue for the group was HKD 2,125,200,000, down 29.2% from HKD 3,003,200,000 for the year ended December 31, 2020, primarily due to the decline in supply chain business revenue[39]. - The group recorded a net loss of approximately HKD 5,600,000 for the year ended December 31, 2021, compared to a net profit of approximately HKD 21,300,000 for the year ended December 31, 2020[41]. Business Strategy and Outlook - The management plans to continue seeking potential business opportunities to diversify and expand revenue sources in response to economic challenges[27]. - The company aims to create stable income and maintain growth amid an unstable economic environment[27]. - The company anticipates a generally positive outlook for the tourism industry in China, driven by government stimulus measures[27]. - The supply chain business remains the core focus, despite challenges from COVID-19 and the implementation of the "three red lines" policy in China's real estate sector[24]. - The company seeks to diversify its strategy and explore new investment opportunities to enhance profitability and competitiveness[71]. - The outlook for the operating environment remains uncertain due to COVID-19 variants and global political instability, prompting the company to adjust its operational strategies[72]. Financial Position and Assets - The total amount of receivables from financing leases was HKD 26,400,000 as of December 31, 2021, with rental income from leasing business confirmed at HKD 3,300,000 for the year[33]. - The fair value of investment properties was HKD 244,200,000 as of December 31, 2021, with rental income recorded at HKD 4,300,000[34]. - The fair value of financial assets measured at fair value through profit or loss decreased significantly to HKD 84,500,000 as of December 31, 2021, from HKD 274,000,000 in the previous year[44]. - The fair value of financial assets measured at fair value through other comprehensive income decreased to HKD 133,162, down from HKD 221,489 in 2020[55]. - The group’s cash and cash equivalents were HKD 15,400,000 as of December 31, 2021, down from HKD 118,600,000 in the previous year[46]. - The group’s receivables increased by HKD 61,900,000, mainly due to prepayments made to suppliers in the supply chain business[42]. Governance and Management - The company has appointed several experienced directors, including Ms. Qian as CEO, who has over eight years of management experience in financial investment[76]. - The company has a strong board with members having extensive backgrounds in accounting, law, and corporate finance, enhancing governance and strategic oversight[86]. - The company is focused on compliance and has faced scrutiny from regulatory bodies, indicating a commitment to maintaining high standards[84]. - The management team includes professionals with significant experience in mergers and acquisitions, which may support future growth strategies[85]. - The board consists of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2021[155]. - The board is responsible for reviewing and supervising the group's financial and business performance, aiming to provide higher returns to shareholders[157]. Shareholder Information - The company did not recommend any dividend payment for the year ended December 31, 2021[65]. - The company has established a dividend policy to enhance transparency and assist shareholders in making informed investment decisions[194]. - The board will continuously review the dividend policy and does not guarantee the payment of any specific amount of dividends[195]. - Shareholders holding at least 10% of the voting rights can request a special general meeting[197]. - Shareholders with at least 20% of the total voting rights or 100 shareholders can submit written requests for resolutions at the general meeting[198]. Risk Management - The management is taking a cautious approach to reduce credit and business risks due to the ongoing impact of COVID-19 and uncertainties in the global economy[25]. - The group will continue to adopt a prudent approach in managing credit risk and will tighten credit assessments for new customers[33]. - The group actively manages foreign exchange and interest rate risks, with a focus on monitoring and hedging significant currency risks as needed[50]. Corporate Actions - The company entered into an agreement to acquire all issued shares of Zhuojian Industrial Group Limited for a cash consideration of HKD 120 million, focusing on hotel operations and management in China[66]. - The company plans to sell a 14.73% stake in Jinyu Limited for a cash consideration of HKD 110 million, pending shareholder approval[69]. - The company issued 280,000 new shares at a subscription price of HKD 0.20 per share to a major shareholder, representing approximately 28.00% of the issued share capital[114]. Audit and Compliance - The consolidated financial statements for the year ended December 31, 2021, have been audited by Tianji Hong Kong CPA Limited[148]. - The Audit Committee reviewed the audited annual results for the year ended December 31, 2020, and the unaudited interim results for the six months ended June 30, 2021, providing recommendations to the Board for approval[167]. - The Audit Committee held two meetings during the year ended December 31, 2021, fulfilling its requirement to meet at least twice a year[165].