Land and Property Development - The company has a land reserve of approximately 439,632 square meters across 20 property projects as of December 31, 2023, focusing on the Greater Bay Area and first-tier cities like Shenzhen, Shanghai, and Hong Kong [25]. - The Group's land bank, consisting of 20 property projects, was approximately 439,632 sq.m. as of December 31, 2023 [40]. - The Shenzhen Upper Residence project has a total value of approximately RMB 2.5 billion, with registered sales of approximately RMB 1.903 billion as of the end of 2023 [30]. - The Topspring International Mansion and Jianshang Commercial Building in Shenzhen, with a GFA of approximately 101,700 sq.m., are scheduled for sale in the second quarter of 2024 [30]. - The Shanghai Top Spring International Centre has a GFA of approximately 100,000 sq.m. and is actively integrating into the local innovative industrial system [29]. - The Group's projects include significant developments in cities such as Shenzhen, Shanghai, and Nanjing, with a strong emphasis on commercial and residential property investment [146]. Financial Performance - In 2023, the Group's rental income from investment properties was approximately HKD 217.2 million, a decrease of about 2.7% compared to HKD 223.2 million in 2022 [38]. - The Group recorded total pre-sales of properties and car park units of approximately HK$600.4 million in 2023, a decrease of approximately 14.6% compared to 2022 [128]. - Revenue from the sale of properties (excluding car park units) was approximately HK$402.3 million, reflecting a significant decrease of approximately 87.1% compared to the previous year [133]. - The group's consolidated revenue for 2023 was approximately HKD 954.3 million, a decrease of about 74.0% compared to 2022 [199]. - The loss attributable to equity shareholders and holders of perpetual convertible securities for 2023 was approximately HKD 876.9 million, compared to a loss of HKD 185.1 million in 2022 [199]. - Revenue for the year ended December 31, 2023, decreased by approximately 74.0% to about HKD 954,300,000 from approximately HKD 3,667,200,000 for the year ended December 31, 2022 [200]. Occupancy and Rental Income - As of December 31, 2023, the overall occupancy rate of the Group's investment properties was approximately 82.5% [38]. - The occupancy rate of the Group's investment properties decreased from approximately 83.3% as of December 31, 2022, to approximately 82.5% as of December 31, 2023 [164]. - The average monthly rental income for the Group's operational investment properties was approximately HK$69.3 per square meter for the year ended December 31, 2023, down from approximately HK$70.7 per square meter for the previous year [164]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified 15 significant environmental, social, and governance issues that impact its stakeholders, maintaining a consistent focus on these areas [17]. - The Group has identified four key ESG categories: Environmental Protection, Employment Management, Operating Practices, and Community Involvement [95]. - The Group has established a three-tier ESG management structure consisting of the Board, senior management, and the ESG function group to ensure effective governance [110]. - The Group is committed to integrating sustainable development into its business strategy and governance framework, recognizing the importance of environmental, social, and governance (ESG) matters [145]. - The Group has been proactive in corporate social responsibility, supporting education for students from poor families through initiatives like the New Great Wall Scholarship Project [106]. Customer and Supplier Relations - The company maintains a supplier list of 165 suppliers, all located in China, and conducts annual reviews of their background and performance [5]. - The company has a strict complaint handling policy in place to ensure customer feedback is addressed promptly and effectively [8]. - The Group has improved customer complaint handling processes and enhanced customer experience through a mobile application [90]. - The Group has implemented a fair tendering mechanism to enhance long-term partnerships with suppliers and business partners [90]. Employee Development and Safety - The company emphasizes employee development through customized training programs, ensuring staff are equipped with the latest industry knowledge [2]. - The company is committed to ensuring a safe working environment for its employees, certified under ISO 45001 Occupational Health and Safety Management System [16]. - The Group has organized occupational and professional staff training to provide a healthy and safe working environment [89]. Community Engagement and Recognition - The Group received recognition for its contributions to community support, education, and cultural initiatives, enhancing its reputation in the market [57]. - The Group has established the "Laimeng Scholarship Fund" in collaboration with the China Poverty Alleviation Foundation to support impoverished university students from Guangdong, Jiangsu, Jiangxi, and Sichuan since 2010 [86]. - In 2023, the Group received multiple recognitions for charitable works, including aid to minority communities and contributions to education and cultural affairs [87].

Financial Performance - The company's revenue for the year 2023 decreased to HKD 954,319,000 from HKD 3,667,163,000 in 2022, representing a decline of approximately 74%[1]. - The net loss for the year 2023 was HKD 900,330,000, compared to a net loss of HKD 183,641,000 in 2022, indicating a significant increase in losses[3]. - The company's property sales revenue dropped to HKD 405,500,000 in 2023 from HKD 3,139,900,000 in 2022, reflecting a decrease of about 87%[23]. - Revenue from external customers for 2023 was HKD 954,319,000, a decrease of 74% from HKD 3,667,163,000 in 2022[49]. - Reported segment revenue for 2023 was HKD 1,052,637,000, down from HKD 3,773,013,000 in 2022, reflecting a decline of approximately 72%[52]. - Adjusted EBITDA for the reporting segments showed a loss of HKD 455,926,000 in 2023 compared to a profit of HKD 276,674,000 in 2022[52]. - The group reported a fair value loss on financial assets of HKD (102,082,000) in 2023, compared to HKD (12,331,000) in 2022, indicating increased financial strain[36]. - The group recorded total comprehensive loss for the year was approximately HKD 1,143.6 million, compared to HKD 1,146.9 million for the previous year[97]. Assets and Liabilities - The total assets less current liabilities as of December 31, 2023, were HKD 13,418,892,000, down from HKD 15,688,656,000 in 2022[10]. - The company's equity attributable to shareholders and perpetual convertible securities holders decreased to HKD 8,092,201,000 in 2023 from HKD 9,223,880,000 in 2022[10]. - Total assets reported for 2023 were HKD 20,040,867,000, a decrease from HKD 21,832,640,000 in 2022, indicating a reduction of about 8%[52]. - Total liabilities for 2023 were HKD 11,917,705,000, down from HKD 12,550,634,000 in 2022, representing a decline of approximately 5%[52]. - The group’s total segment assets were HKD 19,581,235,000 in 2023, down from HKD 21,315,702,000 in 2022, reflecting a decrease of approximately 8%[52]. Cash and Financing - The company's cash and cash equivalents amounted to HKD 665,200,000 as of December 31, 2023, while the current bank loans and other borrowings were HKD 3,305,900,000[23]. - The financing costs for the year 2023 were HKD 319,999,000, slightly down from HKD 324,257,000 in 2022[21]. - The group has renewed existing bank financing of HKD 635,000,000 for at least 12 months and secured new bank loans of HKD 846,000,000, while repaying existing bank loans of HKD 799,000,000[24]. - The weighted average cost of borrowings as of December 31, 2023, was approximately 6.1%, up from 4.9% in 2022[98]. - The total borrowings of the group amounted to approximately HKD 7,289,300,000, with HKD 3,312,000,000 due within one year[108]. Market Conditions and Future Outlook - The company faces significant uncertainty regarding its ability to continue as a going concern due to the challenging property market and tightening financing environment[23]. - The group plans to accelerate the pre-sale and sale of its development and completed properties, as well as recover outstanding sales proceeds and other receivables[17]. - The group aims to maintain and moderately increase stable rental income properties while focusing on potential investment opportunities to foster new business growth points[194]. - The group plans to continue identifying land with investment potential in both domestic and overseas markets, particularly in the Greater Bay Area and Shanghai[186]. Property and Rental Income - The group's revenue from property management and related services for 2023 was HKD 405,477,000, compared to HKD 3,139,871,000 in 2022, indicating a significant decrease[30]. - Total rental income from investment properties was HKD 954,319,000 in 2023, down from HKD 3,667,163,000 in 2022[34]. - The rental income generated from investment properties for the year ended December 31, 2023, was approximately HKD 217.2 million, a decrease of about 2.7% from HKD 223.2 million for the year ended December 31, 2022[163]. - The average monthly rental income from operating investment properties was approximately HKD 69.3 per square meter, down from HKD 70.7 per square meter for the year ended December 31, 2022[163]. - The occupancy rate of the group's investment properties decreased from approximately 83.3% as of December 31, 2022, to about 82.5% as of December 31, 2023[163]. Shareholder Information - The group has no declared final dividend for the year ended December 31, 2023, compared to a final dividend of HKD 0.01 per share in 2022[74]. - The basic and diluted loss per share for the year ended December 31, 2023, was approximately HKD 0.57, compared to HKD 0.12 for the year ended December 31, 2022[78]. - As of December 31, 2023, the net asset value per share was approximately HKD 5.3, down from HKD 6.0 as of December 31, 2022[78]. - The net debt-to-equity ratio increased to approximately 62.8% as of December 31, 2023, from 54.7% as of December 31, 2022[78]. Governance and Compliance - The company maintained compliance with all corporate governance codes as of December 31, 2023, with a board composition that includes more than half independent non-executive directors[131]. - The company has adopted the standard code for securities trading by directors, ensuring compliance as of December 31, 2023[127]. - The company plans to review its existing governance structure in a timely manner to ensure effective leadership and strategic planning[131]. - The company’s chairman and CEO roles are held by the same individual, which the board believes enhances consistent leadership and effective business planning[131].

Property Development and Projects - As of June 30, 2023, the company has a total of 20 property projects across 10 cities, with an estimated net saleable/leasable area of approximately 445,348 square meters[5]. - Completed projects include 348,002 square meters of net saleable/leasable area, with significant contributions from Shenzhen, Changzhou, and Dongguan[5]. - Projects under development account for an estimated 90,849 square meters, primarily located in Shenzhen and Hong Kong[7]. - The company holds land reserves in major cities, with Shenzhen and surrounding regions accounting for 142,745 square meters of estimated net saleable/leasable area[9]. - The estimated net saleable/leasable area for contracted projects awaiting acquisition or land use change is 6,497 square meters, primarily in Hong Kong[7]. - The company maintains a strong interest in high-speed railway cities, enhancing its strategic positioning in urban development[5]. - The company aims to leverage its experience to identify and acquire land linked to transportation and infrastructure development[9]. - The company is focused on expanding its footprint in regions with significant growth potential, particularly in the context of China's economic landscape[9]. - The Group's urban industrial community business in Shanghai has integrated into the "Knowledge Innovation Community," enhancing industrial concentration and attracting influential enterprises such as Huawei and Henkel[54]. - The Jishengchang Project in Longgang District, Shenzhen, is expected to complete project approval in Q4 2023, focusing on residential land development[54]. - The Group's old factory transformation project in Nansha District, Guangzhou, has 52.5 mu of land included in the 2022 Urban Renewal Projects Annual Plan[54]. Financial Performance - For the six months ended June 30, 2023, the Group's total revenue and property sales revenue were approximately HK$98.7 million and HK$237.9 million, respectively, representing decreases of approximately 82.7% and 90.9% compared to the same period in 2022[13]. - The Group recorded a profit attributable to equity shareholders of approximately HK$23.4 million, an increase from approximately HK$6.3 million in the corresponding period of 2022[13]. - The Group's basic earnings per ordinary share for the six months ended June 30, 2023, was HK1.5 cents, compared to HK0.4 cent in the same period of 2022[13]. - Direct costs decreased to approximately HK$338.1 million for the six months ended June 30, 2023, from approximately HK$2,483.1 million for the same period in 2022, primarily due to a decrease in property sales[19]. - The Group's gross profit decreased by approximately 59.9% to approximately HK$160.6 million for the six months ended June 30, 2023, with a gross profit margin of approximately 32.2%[20]. - Other revenue decreased by approximately HK$33.5 million, or approximately 34.8%, to approximately HK$62.9 million for the six months ended June 30, 2023, primarily due to a decrease in bank and other interest income[21]. - Other net income increased significantly by approximately 720.6% to an income of approximately HK$78.2 million for the six months ended June 30, 2023, mainly due to additional compensation income from the Hong Kong government[22]. - Selling and marketing expenses decreased by approximately 37.3% to approximately HK$41.8 million for the six months ended 30 June 2023 from approximately HK$66.7 million for the same period in 2022[24]. - Administrative expenses decreased by approximately 19.3% to approximately HK$108.0 million for the six months ended 30 June 2023 from approximately HK$133.9 million for the same period in 2022 due to a reduction in staff costs[24]. - Income tax expenses decreased by approximately 64.3% to approximately HK$52.8 million for the six months ended June 30, 2023 from approximately HK$147.9 million for the same period in 2022, consistent with the decrease in property sales[24]. Investment Properties and Rental Income - As of June 30, 2023, the total fair value of the Group's investment properties was approximately HK$7,992.5 million, representing about 38.0% of the Group's total asset value[82]. - The total leasable GFA of the Group's investment property portfolio was approximately 304,789 sq.m. as of June 30, 2023[82]. - The Group generated rental income of approximately HK$105.9 million for the six months ended June 30, 2023, reflecting an increase of approximately 0.2% from HK$105.7 million for the same period in 2022[82]. - The average monthly rental income for the Group's investment properties under operation was approximately HK$70.1 per sq.m. for the six months ended June 30, 2023, down from HK$71.3 per sq.m. for the same period in 2022[82]. - The occupancy rate for the Group's investment properties as of June 30, 2023, was 78.9% for The Spring Land – Shenzhen and 82.0% for Chengdu Fashion Mark[84]. - The fair value gain of the Group's investment properties for the six months ended June 30, 2023, was approximately HK$35.2 million, compared to HK$35.6 million for the same period in 2022[82]. Market and Economic Conditions - The Group is focusing on the Greater Bay Area, particularly core cities like Hong Kong, Shenzhen, and Guangzhou, to leverage development opportunities[71]. - The Group aims to maintain and moderately increase rental properties that generate stable income growth, emphasizing the importance of steady rental income for cash flow[71]. - The Group is actively seeking overseas investment opportunities, particularly in Hong Kong, to capitalize on its role in the Greater Bay Area[72]. - The Group plans to monitor market changes and focus on new economic development opportunities to foster new business growth points[72]. - The Group's strategy includes leveraging its asset management capabilities to enhance rental income and property value appreciation[71]. - The Group is committed to integrating resources and making prudent investments to achieve synergistic development across diversified businesses and real estate[72]. - The Group reported a significant uncertainty regarding its ability to continue as a going concern due to the prolonged property market slowdown[197]. Share Options and Corporate Governance - No share options were granted under the new share option scheme as of June 30, 2023[115]. - The Company has complied with all code provisions under the Corporate Governance Code during the six months ended June 30, 2023[119]. - The audit committee has reviewed the accounting principles and interim results for the six months ended June 30, 2023[120]. - The interim financial report is unaudited but has been reviewed by KPMG, with no audit opinion expressed[120]. - The Company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[123]. - The Company engages with the investment community to strengthen communication and address inquiries regarding its status[121]. - There were no significant changes in the nature of the Group's principal activities during the period under review[123]. Employee and Operational Metrics - The total staff cost for the six months ended June 30, 2023, was approximately HK$111.5 million, compared to HK$110.5 million for the same period in 2022[94]. - The number of employees decreased to 807 as of June 30, 2023, from 883 as of December 31, 2022[94]. Financial Position and Assets - The net assets attributable to equity shareholders decreased to HK$8,920,128,000 as of June 30, 2023, from HK$9,223,880,000 as of December 31, 2022[91]. - The net assets per share attributable to equity shareholders was HK$5.8 as of June 30, 2023, down from HK$6.0 as of December 31, 2022[91]. - Non-current assets totaled HKD 10,007,233,000 as of June 30, 2023, compared to HKD 10,416,839,000 as of December 31, 2022, indicating a decrease[186]. - Investment properties decreased from HKD 8,297,230,000 as of December 31, 2022, to HKD 7,971,579,000 as of June 30, 2023[186]. - Cash and cash equivalents increased from HKD 579,975,000 as of December 31, 2022, to HKD 890,795,000 as of June 30, 2023[186]. - The Group's total current assets were HKD 11,013,781,000 as of June 30, 2023, compared to HKD 11,415,801,000 as of December 31, 2022[186]. - The Group's interest in associates increased from HKD 186,912,000 as of December 31, 2022, to HKD 195,098,000 as of June 30, 2023[186].

[Summary](index=1&type=section&id=Summary) [Major Financial and Operating Highlights](index=1&type=section&id=Major%20Financial%20and%20Operating%20Highlights) The Group's presales and average selling price declined, while recurring rental income remained stable, gross margin improved, and profit attributable to equity shareholders grew significantly Changes in Presales and Average Selling Price | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Presales of Properties and Car Parks | 421,700,000 | 558,100,000 | -24.4% | | Presales of Properties | 419,400,000 | - | - | | Presales of Car Parks | 2,300,000 | - | - | | Presold GFA | 4,962 sq.m. | 5,821 sq.m. | -14.8% | | Average Selling Price of Presold Properties | 84,522.4 HKD/sq.m. | 92,733.2 HKD/sq.m. | -8.9% | Rental Income from Investment Properties | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Recurring Rental Income | 105,900,000 | 105,700,000 | +0.2% | Changes in Gross Profit Margin | Indicator | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Gross Profit Margin | 32.2% | 13.9% | Profit Attributable to Equity Shareholders of the Company | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Shareholders | 23,400,000 | 6,300,000 | +271.4% | Basic and Diluted Earnings Per Share | Indicator | H1 2023 (HK cents) | H1 2022 (HK cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.5 | 0.4 | | Diluted Earnings Per Share | 1.5 | 0.4 | Net Gearing Ratio | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Net Gearing Ratio | 55.7% | 54.7% | - For the six months ended June 30, 2023, the Company **did not declare an interim dividend**, consistent with the same period last year[2](index=2&type=chunk)[84](index=84&type=chunk) [Interim Results](index=3&type=section&id=Interim%20Results) [Consolidated Statement of Profit or Loss](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's revenue decreased by 82.7% to HK$499 million, while gross margin improved significantly, and profit attributable to equity shareholders rose to HK$23.4 million Revenue Change | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 498,669 | 2,883,680 | -82.7% | Changes in Gross Profit and Gross Profit Margin | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 160,559 | 400,598 | -59.9% | | Gross Profit Margin | 32.2% | 13.9% | +18.3pp | Profit Attributable to Equity Shareholders of the Company | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Shareholders of the Company | 23,428 | 6,307 | +271.4% | Valuation Gains on Investment Properties | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | | :--- | :--- | :--- | | Valuation Gains on Investment Properties | 35,218 | 35,649 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's total comprehensive loss for the period narrowed to HK$313 million from HK$567 million in the prior year, mainly due to improved other comprehensive income from associates and joint ventures Total Comprehensive Income for the Period | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Comprehensive Income for the Period | (313,432) | (567,321) | +44.8% (Loss Narrowed) | Share of Other Comprehensive Income of Associates and Joint Ventures | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | | :--- | :--- | :--- | | Share of Other Comprehensive Income of Associates and Joint Ventures | 188 | (11,864) | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets slightly decreased, while net assets declined marginally and the net gearing ratio rose, reflecting financial pressure amid a market slowdown Changes in Total Assets and Net Assets | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets less Current Liabilities | 14,957,240 | 15,688,656 | -4.79% | | Net Assets | 8,953,283 | 9,282,006 | -3.54% | Fair Value of Investment Properties | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--- | :--- | :--- | | Investment Properties | 7,971,579 | 8,297,230 | Current Assets and Liabilities | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--- | :--- | :--- | | Current Assets | 11,013,781 | 11,415,801 | | Current Liabilities | 6,063,774 | 6,143,984 | | Net Current Assets | 4,950,007 | 5,271,817 | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) The interim financial information is prepared in accordance with HKAS 34 Interim Financial Reporting and is expected to reflect changes in accounting policies for the 2023 annual financial statements - The interim financial information is prepared in accordance with **Hong Kong Accounting Standard (HKAS) 34 Interim Financial Reporting**[45](index=45&type=chunk)[63](index=63&type=chunk) - The accounting policies are the same as those for the 2022 annual financial statements but are expected to reflect changes for the 2023 annual financial statements[63](index=63&type=chunk) [Material Uncertainties Related to Going Concern](index=7&type=section&id=Material%20Uncertainties%20Related%20to%20Going%20Concern) The Group faces material uncertainties regarding its going concern status due to a sharp decline in property sales, current bank loans exceeding cash equivalents, and a slowing property market Property Sales Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales | 237,900,000 | 2,622,700,000 | -90.9% | Liquidity Position (June 30, 2023) | Indicator | Amount (HKD) | | :--- | :--- | | Current Bank Loans and Other Borrowings | 2,864,000,000 | | Cash and Cash Equivalents | 890,800,000 | - The Group has implemented several measures to mitigate liquidity pressure, including accelerating property sales, negotiating financing with banks, obtaining financial support letters from major shareholders, and controlling administrative and capital expenditures[48](index=48&type=chunk)[65](index=65&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The Board believes that assuming the successful implementation of these measures, the Group will have sufficient working capital to meet its financial obligations and has prepared the consolidated financial statements on a going concern basis[67](index=67&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=Changes%20in%20Accounting%20Policies) The Group applied new and amended HKFRSs issued by the HKICPA during the period, which had no material impact on its financial position or performance - The Group applied new and amended standards, including amendments to **HKAS 8 and HKAS 12**[68](index=68&type=chunk) - These changes in accounting policies **did not have a material impact** on the preparation or presentation of the Group's interim financial information[50](index=50&type=chunk) [Revenue and Segment Reporting](index=9&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's total revenue decreased by 82.7% year-on-year, primarily driven by a decline in property sales, which accounted for 47.7% of total revenue Revenue Composition and Changes | Revenue Source | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Sale of properties | 237,915 | 2,622,739 | -90.9% | | Property management and related services | 134,029 | 141,649 | -5.4% | | Education related services | 20,859 | 13,554 | +53.9% | | Rental income | 105,866 | 105,738 | +0.1% | | **Total Revenue** | **498,669** | **2,883,680** | **-82.7%** | Revenue from Customers by Geographical Location | Geographical Location | H1 2023 (HK$'000) | H1 2022 (HK$'000) | | :--- | :--- | :--- | | Mainland China | 303,209 | 2,452,868 | | Hong Kong | 195,460 | 430,812 | - The Group uses "Adjusted EBITDA" as the measure for reporting segment profit, which is adjusted for specific non-recurring or unallocated items[72](index=72&type=chunk) [Other Income](index=11&type=section&id=Other%20Income) Other income decreased by 34.8% year-on-year to HK$62.9 million, mainly due to a reduction in bank and other interest income Other Income Composition and Changes | Income Source | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 21,904 | 43,765 | -50.0% | | Other interest income | 23,577 | 32,982 | -28.6% | | Car park service income | 15,748 | 15,562 | +1.2% | | Others | 1,640 | 4,137 | -60.4% | | **Total** | **62,869** | **96,446** | **-34.8%** | [Other Gains / (Losses), Net](index=12&type=section&id=Other%20Gains%20%2F%20(Losses)%2C%20Net) Other net gains turned from a loss in the prior year to a gain of HK$78.2 million, primarily due to additional compensation received from the Hong Kong Government for a land plot in Yuen Long Changes in Other Gains / (Losses), Net | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Other Gains / (Losses), Net | 78,150 | (12,717) | +714.6% (Turned to Profit) | - The main driver was the receipt of **HK$81.981 million in additional compensation** from the Hong Kong Government for the Yuen Long land plot[58](index=58&type=chunk)[185](index=185&type=chunk) [Profit Before Tax](index=12&type=section&id=Profit%20Before%20Tax) The Group's profit before tax decreased by 62.5% year-on-year to HK$57.1 million, mainly impacted by finance costs and losses from associates/joint ventures, while staff costs remained stable Profit Before Tax Change | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Before Tax | 57,118 | 152,122 | -62.5% | Finance Costs | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 119,143 | 158,272 | -24.8% | Staff Costs | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Salaries, wages and other benefits | 106,341 | 104,330 | +1.9% | | Contributions to defined contribution retirement plans | 5,173 | 6,198 | -16.6% | | **Total Staff Costs** | **111,514** | **110,528** | **+0.9%** | [Income Tax](index=13&type=section&id=Income%20Tax) Income tax expense for the period decreased significantly by 64.3% to HK$52.8 million, mainly due to reduced property sales and the reversal of temporary differences Income Tax Expense Change | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 52,821 | 147,930 | -64.3% | - Income tax expense includes corporate income tax, land appreciation tax, and the origination and reversal of temporary differences[98](index=98&type=chunk) - The applicable corporate income tax rate for subsidiaries in Mainland China is **25%**[80](index=80&type=chunk) [Earnings Per Share](index=14&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share for the period both increased to 1.5 HK cents, primarily due to higher profit attributable to equity shareholders of the Company Earnings Per Share Change | Indicator | H1 2023 (HK cents) | H1 2022 (HK cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.5 | 0.4 | | Diluted Earnings Per Share | 1.5 | 0.4 | - Earnings per share is calculated based on the profit attributable to equity shareholders and holders of perpetual convertible securities of **HK$23.428 million** and the weighted average number of **1.529 billion shares** in issue[81](index=81&type=chunk) - Outstanding share options had an anti-dilutive effect on basic earnings per share, thus diluted earnings per share is the same as basic earnings per share[101](index=101&type=chunk) [Dividends](index=15&type=section&id=Dividends) No interim dividend was declared for the reporting period, but the final dividend for the previous financial year of 1 HK cent per share was approved and paid - **No interim dividend** was declared for H1 2023, consistent with H1 2022[84](index=84&type=chunk)[179](index=179&type=chunk) Final Dividend Paid | Indicator | H1 2023 (HK$'000) | H1 2022 (HK$'000) | | :--- | :--- | :--- | | Final dividend for the previous financial year (1 HK cent per share) | 15,291 | 15,322 | [Financial Assets at Fair Value Through Profit or Loss](index=15&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2023, total financial assets at FVTPL amounted to HK$1.289 billion, a decrease from year-end 2022, comprising mainly amounts due from third parties and unlisted securities Composition of Financial Assets at FVTPL | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--- | :--- | :--- | | Unlisted equity securities not held for trading | 36,986 | 36,840 | | Trading securities | 36,175 | 38,344 | | Amounts due from third parties | 1,216,250 | 1,266,330 | | **Total** | **1,289,411** | **1,341,514** | - The fair value gain on these financial assets during the period was **HK$7.152 million**, an increase from the same period last year[87](index=87&type=chunk) [Inventories and Other Contract Costs](index=16&type=section&id=Inventories%20and%20Other%20Contract%20Costs) As of June 30, 2023, the Group's total inventories and other contract costs were HK$6.942 billion, a slight decrease from year-end 2022 Composition of Inventories and Other Contract Costs | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--- | :--- | :--- | | Leasehold land under development for sale | 144,224 | 149,650 | | Properties under development for sale | 4,467,239 | 4,368,771 | | Completed properties for sale | 2,323,756 | 2,621,515 | | Other contract costs | 512 | 548 | | Other businesses (low-value consumables and supplies) | 5,779 | 5,382 | | **Total** | **6,941,510** | **7,145,866** | [Trade and Other Receivables](index=16&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2023, total trade and other receivables amounted to HK$1.359 billion, a decrease from year-end 2022, mainly comprising trade receivables, other receivables, deposits, and prepayments Composition of Trade and Other Receivables | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 74,918 | 69,129 | | Other receivables (net of loss allowance) | 302,764 | 449,255 | | Financial assets at amortised cost | 377,682 | 518,384 | | Deposits and prepayments | 981,611 | 1,059,984 | | **Total** | **1,359,293** | **1,578,368** | - The majority of trade receivables are due within one month[107](index=107&type=chunk) Composition of Deposits and Prepayments | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--- | :--- | :--- | | Prepayments for acquisition of land use rights | 736,663 | 771,349 | | Prepayments for acquisition of properties | 30,000 | 30,000 | | Others | 214,948 | 258,635 | | **Total** | **981,611** | **1,059,984** | [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2023, total trade and other payables amounted to HK$2.739 billion, a decrease from year-end 2022, mainly comprising trade payables, other payables, and accrued expenses Composition of Trade and Other Payables | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 306,320 | 194,065 | | Other payables and accrued expenses | 1,402,668 | 1,793,512 | | Amounts due to non-controlling interests | 1,030,350 | 1,038,430 | | **Financial liabilities at amortised cost** | **2,739,338** | **3,026,007** | | Rental and other deposits | 80,079 | 78,306 | | VAT and other tax payables | 60,975 | 92,016 | | **Total** | **2,880,392** | **3,196,329** | - The majority of trade payables are due within one month[133](index=133&type=chunk) - A portion of the amounts due to non-controlling interests is interest-bearing at an annual rate of **4.35%**, unsecured, and repayable on demand[91](index=91&type=chunk) [Commitments](index=19&type=section&id=Commitments) As of the reporting date, the Group's capital commitments, mainly related to development expenses and project acquisition costs, totaled HK$322.8 million for contracted but not provided for items Total Capital Commitments | Indicator | June 30, 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--- | :--- | :--- | | Contracted for | 141,355 | 334,045 | | Authorised but not contracted for | 181,453 | 187,253 | | **Total** | **322,808** | **521,298** | - Capital commitments are primarily related to development expenses for properties under development and project acquisition costs[135](index=135&type=chunk) [Summary of Review Report](index=20&type=section&id=Summary%20of%20Review%20Report) [Conclusion](index=20&type=section&id=Conclusion) The auditor, KPMG, concluded their review without identifying any material misstatements but emphasized the material uncertainty related to going concern, advising investors to exercise caution - The auditor is not aware of any matter that would cause them to believe the interim financial report is not prepared in all material respects in accordance with **HKAS 34 Interim Financial Reporting**[137](index=137&type=chunk) - The review report highlights that the decline in property sales, the disparity between current bank loans and cash position, and the property market slowdown may cast **significant doubt on the Group's ability to continue as a going concern**[115](index=115&type=chunk) - Investors are advised to **exercise caution** when dealing in the Company's securities and should not place undue reliance on such information[222](index=222&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) [Presales](index=20&type=section&id=Presales) During the period, the Group's total presales of properties and car parks decreased by 24.4% year-on-year to HK$421.7 million, with declines in both presold GFA and average selling price Changes in Total Presales and GFA | Indicator | H1 2023 | H1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Total Presales of Properties and Car Parks | 421,700,000 HKD | 558,100,000 HKD | -24.4% | | Presales of Properties | 419,400,000 HKD | - | - | | Presales of Car Parks | 2,300,000 HKD | - | - | | Total Presold GFA | 4,962 sq.m. | 5,821 sq.m. | -14.8% | | Average Selling Price of Presold Properties | 84,522.4 HKD/sq.m. | 92,733.2 HKD/sq.m. | -8.9% | Distribution of Major Presale Projects | City | Project and Property Type | Presold GFA (sq.m.) | Presale Value (HK$ million) | Average Presale Price (HKD/sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Tianjin | Tianjin Top Spring Town - Residential | 3,081 | 34.6 | 11,230.1 | | Shenzhen | Shenzhen The Upper Hills - Residential | 784 | 48.9 | 62,372.4 | | Hong Kong | Hong Kong 128 WATERLOO - Residential | 1,097 | 335.9 | 306,198.7 | [Delivered and Recognized Projects](index=21&type=section&id=Delivered%20and%20Recognized%20Projects) The Group recognized property sales revenue of HK$236.0 million from a recognized saleable GFA of 3,038 sq.m., with an average selling price of HK$77,682.7/sq.m Details of Recognized Property Sales | City | Project and Property Type | Recognized Saleable GFA (sq.m.) | Recognized Property Sales (HK$ million) | Recognized ASP (HKD/sq.m.) | | :--- | :--- | :--- | :--- | :--- | | Tianjin | Tianjin Top Spring Town - Residential | 1,573 | 15.7 | 9,980.9 | | Shenzhen | Shenzhen The Upper Hills - Residential | 867 | 45.7 | 52,710.5 | | Hong Kong | Hong Kong 128 WATERLOO - Residential | 598 | 174.6 | 291,973.2 | | **Total** | | **3,038** | **236.0** | **77,682.7** | - The Group recognized car park sales of approximately **HK$1.9 million** from the sale of 16 car parks[119](index=119&type=chunk)[142](index=142&type=chunk) [Investment Properties](index=22&type=section&id=Investment%20Properties) As of June 30, 2023, the Group's investment properties had a total fair value of approximately HK$7.99 billion, accounting for about 38.0% of total assets, with an overall occupancy rate of 79.1% Fair Value and Proportion of Investment Properties | Indicator | June 30, 2023 (HKD) | Proportion | | :--- | :--- | :--- | | Total Fair Value of Investment Properties | 7,992,500,000 | 38.0% | Leasable GFA and Occupancy Rate | Indicator | June 30, 2023 | | :--- | :--- | | Total Leasable GFA | 304,789 sq.m. | | Overall Occupancy Rate | 79.1% | Rental Income and Fair Value Gains | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Rental Income | 105,900,000 | 105,700,000 | +0.2% | | Fair Value Gains on Investment Properties | 35,200,000 | 35,600,000 | -1.1% | - The average monthly rental income was approximately **HK$70.1/sq.m.**, a decrease from HK$71.3/sq.m. in the prior year period, mainly due to lower rents from existing investment properties in operation[16](index=16&type=chunk) - The Group has attracted major anchor tenants, whose leased GFA accounts for approximately **29.6%** of the total leasable GFA of investment properties in operation[121](index=121&type=chunk) [Land Bank](index=24&type=section&id=Land%20Bank) As of June 30, 2023, the Group held 20 projects in 10 cities with a total land bank (net saleable/leasable GFA) of approximately 445,348 sq.m., primarily in the Greater Bay Area and first-tier cities Overview of Total Land Bank (June 30, 2023) | Indicator | Quantity | | :--- | :--- | | Number of Projects | 20 | | Number of Cities | 10 | | Estimated Net Saleable/Leasable GFA | 445,348 sq.m. | Composition of Land Bank | Category | Estimated Net Saleable/Leasable GFA (sq.m.) | | :--- | :--- | | Completed projects | 348,002 | | Projects under construction | 90,849 | | Projects contracted for purchase or with land use change in progress | 6,497 | Regional Distribution of Land Bank | Region/City | Estimated Net Saleable/Leasable GFA (sq.m.) | | :--- | :--- | | Shenzhen and surrounding areas (including Dongguan) | 142,745 | | Shanghai | 97,824 | | Nanjing | 717 | | Chengdu | 38,285 | | Hangzhou | 26,182 | | Tianjin | 21,130 | | Changzhou | 82,490 | | Kunming | 1,415 | | Hong Kong | 34,560 | | **Total** | **445,348** | - The Group's land bank strategy focuses on the **Guangdong-Hong Kong-Macao Greater Bay Area** and first-tier cities in China, such as Shenzhen, Shanghai, and Hong Kong[175](index=175&type=chunk) [Business Review](index=27&type=section&id=Business%20Review) The Group's H1 business review shows stable rental income growth and expanding property management area, despite a decline in presales, with a strategic focus on the Greater Bay Area - Presales decreased year-on-year, but rental income from investment properties grew by approximately **0.2% to HK$105.9 million**[152](index=152&type=chunk)[127](index=127&type=chunk) - The total property management area reached approximately **16.012 million sq.m.**, with 11.372 million sq.m. from non-Group developed properties[127](index=127&type=chunk) - The land bank strategy is primarily focused on the **Guangdong-Hong Kong-Macao Greater Bay Area** and first-tier cities like Shenzhen, Shanghai, and Hong Kong[175](index=175&type=chunk) [Future Outlook](index=28&type=section&id=Future%20Outlook) The Group will focus on development opportunities in core Greater Bay Area cities, maintain and moderately increase rental properties to stabilize cash flow, and explore new growth points - The Group will firmly focus on development opportunities in core cities of the **Guangdong-Hong Kong-Macao Greater Bay Area**, especially Hong Kong, Shenzhen, and Guangzhou[128](index=128&type=chunk)[176](index=176&type=chunk) - It plans to maintain and moderately increase rental properties with stable growth to enhance rental income and profit levels, achieving property value preservation and appreciation[154](index=154&type=chunk)[128](index=128&type=chunk) - The Group is optimistic about Hong Kong's role in the Greater Bay Area and will continue to deepen its presence in the Hong Kong market, actively seeking high-quality project opportunities[32](index=32&type=chunk)[177](index=177&type=chunk) - It will focus on potential investment opportunities related to the new economy, integrate resources, invest prudently, and seek business breakthroughs and growth points for synergistic development[155](index=155&type=chunk)[178](index=178&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) [Revenue](index=29&type=section&id=Revenue) The Group's total revenue decreased significantly by 82.7% to HK$498.7 million, primarily due to a reduction in property sales, while rental and property management income also fell slightly Total Revenue Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 498,700,000 | 2,883,700,000 | -82.7% | - Property sales amounted to approximately **HK$237.9 million**, accounting for about 47.7% of revenue; the remaining 52.3% came from rental income, property management, and education services[38](index=38&type=chunk) - Rental income and property management and related services income decreased by approximately **3.0%** year-on-year, mainly due to exchange rate depreciation[158](index=158&type=chunk) [Direct Costs](index=30&type=section&id=Direct%20Costs) The Group's direct costs decreased substantially by 86.4% to HK$338.1 million, in line with the reduction in property sales Direct Costs Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Direct Costs | 338,100,000 | 2,483,100,000 | -86.4% | - Direct costs mainly consist of the cost of completed properties sold, including land premiums, construction costs, capitalized borrowing costs, and costs of rental, property management, and education services[182](index=182&type=chunk) [Gross Profit](index=30&type=section&id=Gross%20Profit) The Group's gross profit decreased by 59.9% to HK$160.6 million, but the gross profit margin significantly improved to 32.2% due to a reduction in lower-margin property sales Changes in Gross Profit and Gross Profit Margin | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 160,600,000 | 400,600,000 | -59.9% | | Gross Profit Margin | 32.2% | 13.9% | +18.3pp | - The increase in gross profit margin was mainly due to the **reduction in sales of properties with lower profit margins**[183](index=183&type=chunk) [Other Income](index=30&type=section&id=Other%20Income_Financial%20Review) Other income decreased by 34.8% to HK$62.9 million, primarily due to a reduction in bank and other interest income Other Income Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 62,900,000 | 96,400,000 | -34.8% | - The decrease was mainly due to a **reduction in bank and other interest income**[184](index=184&type=chunk) [Other Gains / (Losses), Net](index=30&type=section&id=Other%20Gains%20%2F%20(Losses)%2C%20Net_Financial%20Review) Other net gains turned from a loss of HK$12.6 million to a gain of HK$78.2 million, mainly due to additional compensation received from the Hong Kong Government for a land plot in Yuen Long Changes in Other Gains / (Losses), Net | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Other Gains / (Losses), Net | 78,200,000 | (12,600,000) | +720.6% (Turned to Profit) | - The main driver was the receipt of **additional compensation** from the Hong Kong Government for the Yuen Long land plot[185](index=185&type=chunk) [Selling and Marketing Expenses](index=31&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased by 37.3% to HK$41.8 million, consistent with the decline in property sales Selling and Marketing Expenses Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 41,800,000 | 66,700,000 | -37.3% | - The decrease in expenses was **in line with the reduction in property sales**[186](index=186&type=chunk) [Administrative Expenses](index=31&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 19.3% to HK$108.0 million, primarily due to a reduction in staff costs Administrative Expenses Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 108,000,000 | 133,900,000 | -19.3% | - The decrease was mainly due to a **reduction in staff costs**[187](index=187&type=chunk) [Valuation Gains on Investment Properties](index=31&type=section&id=Valuation%20Gains%20on%20Investment%20Properties) Valuation gains on investment properties decreased slightly by 1.1% to HK$35.2 million Valuation Gains on Investment Properties Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Valuation Gains on Investment Properties | 35,200,000 | 35,600,000 | -1.1% | [Finance Costs](index=31&type=section&id=Finance%20Costs) Finance costs decreased by 24.8% to HK$119.1 million, mainly due to the repayment of loans and bonds payable Finance Costs Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 119,100,000 | 158,300,000 | -24.8% | - The decrease was mainly due to the **repayment of loans and bonds payable**[189](index=189&type=chunk) [Income Tax](index=31&type=section&id=Income%20Tax_Financial%20Review) Income tax expense decreased significantly by 64.3% to HK$52.8 million, in line with the reduction in property sales Income Tax Expense Change | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 52,800,000 | 147,900,000 | -64.3% | - The decrease in expense was **in line with the reduction in property sales**[190](index=190&type=chunk) [Non-controlling Interests](index=31&type=section&id=Non-controlling%20Interests) Loss attributable to non-controlling interests increased to HK$19.1 million during the period, compared to a loss of HK$2.1 million in the prior year period Loss Attributable to Non-controlling Interests | Indicator | H1 2023 (HKD) | H1 2022 (HKD) | | :--- | :--- | :--- | | Loss Attributable to Non-controlling Interests | 19,100,000 | 2,100,000 | [Liquidity, Financial and Capital Resources](index=32&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) [Cash Position](index=32&type=section&id=Cash%20Position) As of June 30, 2023, the Group's cash and bank deposits carrying amount increased slightly by 1.1% to HK$2.665 billion Changes in Cash and Bank Deposits | Indicator | June 30, 2023 (HKD) | December 31, 2022 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Carrying Amount of Cash and Bank Deposits | 2,665,400,000 | 2,637,400,000 | +1.1% | - The Group's cash balances are primarily denominated in **RMB**, with small amounts in USD and AUD[212](index=212&type=chunk) [Borrowings and Pledge of Group's Assets](index=32&type=section&id=Borrowings%20and%20Pledge%20of%20Group's%20Assets) As of June 30, 2023, the Group's total borrowings were HK$7.65 billion, with approximately 37.5% repayable within one year, and HK$6.85 billion secured by assets valued at HK$13.42 billion Total Borrowings and Repayment Schedule (June 30, 2023) | Term | Amount (HKD) | Proportion | | :--- | :--- | :--- | | Repayable within one year | 2,871,900,000 | 37.5% | | Repayable after one year but within five years | 4,131,000,000 | 54.0% | | Repayable after five years | 649,100,000 | 8.5% | | **Total Borrowings** | **7,652,000,000** | **100%** | - Approximately **HK$6.8486 billion** of bank loans are secured by investment properties, property, plant and equipment, land under development, properties for sale, pledged deposits, and rental receivables with a total carrying value of approximately **HK$13.4218 billion**[165](index=165&type=chunk) - The majority of bank loans and other borrowings are denominated in **RMB**, with some in HKD and USD[193](index=193&type=chunk) [Cost of Borrowing](index=32&type=section&id=Cost%20of%20Borrowing) The Group's average cost of borrowing for the six months ended June 30, 2023, increased to approximately 6.6% from 5.6% in the same period last year Average Cost of Borrowing Change | Indicator | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Average Cost of Borrowing | 6.6% | 5.6% | [Net Gearing Ratio](index=33&type=section&id=Net%20Gearing%20Ratio) As of June 30, 2023, the Group's net gearing ratio increased to 55.7%, mainly due to exchange rate depreciation Net Gearing Ratio Change | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Net Gearing Ratio | 55.7% | 54.7% | - The increase in the net gearing ratio was mainly due to **exchange rate depreciation** during the six months ended June 30, 2023[195](index=195&type=chunk) [Foreign Exchange Risk](index=33&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from RMB against HKD, USD, or AUD but currently has no hedging policy, which the Board monitors closely - The Group is exposed to foreign exchange risk from **RMB against HKD, USD, or AUD**, as most operations are in China with RMB transactions, while some investments, expenses, and borrowings are in other currencies[196](index=196&type=chunk) - There is currently **no foreign currency hedging policy**, but the Board closely monitors the situation and may consider adopting one in the future[196](index=196&type=chunk) - The **RMB is not freely convertible** into foreign currencies and is subject to PRC government foreign exchange control regulations[196](index=196&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) [Net Asset Value Per Share](index=34&type=section&id=Net%20Asset%20Value%20Per%20Share) As of June 30, 2023, the net asset value per share attributable to equity shareholders and holders of perpetual convertible securities was HK$5.8, down from HK$6.0 at year-end 2022 Net Asset Value Per Share Change | Indicator | June 30, 2023 (HKD) | December 31, 2022 (HKD) | | :--- | :--- | :--- | | Net Asset Value Per Share | 5.8 | 6.0 | - The NAV per share is based on net assets attributable to equity shareholders and holders of perpetual convertible securities of **HK$8.9201 billion** and **1.529286 billion shares** used for the calculation[197](index=197&type=chunk)[214](index=214&type=chunk) [Contingent Liabilities](index=34&type=section&id=Contingent%20Liabilities) As of June 30, 2023, the Group's main contingent liability was providing guarantees for mortgage loans of property buyers, amounting to approximately HK$264.8 million - As of June 30, 2023, the Group provided guarantees of approximately **HK$264.8 million** for mortgage loans of property buyers[170](index=170&type=chunk) - The guarantee liability exists until the completion of the relevant properties and delivery of the property ownership certificates to the buyers; in case of default, the Group may be required to repurchase the property or cover the shortfall[215](index=215&type=chunk) [Employees and Remuneration Policy](index=35&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2023, the Group employed 807 staff with total employee costs of approximately HK$111.5 million, with remuneration based on performance, experience, and market rates - As of June 30, 2023, the Group employed **807 staff**, a decrease from 883 at the end of 2022[199](index=199&type=chunk) - Total employee costs for H1 2023 were approximately **HK$111.5 million**, a slight increase from the same period last year[199](index=199&type=chunk) - The remuneration policy is based on performance, experience, skills, knowledge, and market wage levels, comprising basic salary, cash bonuses, and equity-settled share-based payments[199](index=199&type=chunk) [Share Options](index=35&type=section&id=Share%20Options) The Group's Post-IPO Share Option Scheme expired in February 2021, but outstanding options remain valid; a new scheme has been adopted but no options have been granted yet - The Post-IPO Share Option Scheme **expired on February 27, 2021**, but options granted and outstanding remain valid[216](index=216&type=chunk) Outstanding Share Options (June 30, 2023) | Exercise Price (HKD) | Number of Outstanding Share Options | | :--- | :--- | | 4.14 | 3,950,000 | - A **New Share Option Scheme** has been adopted, but no options have been granted as of the announcement date[202](index=202&type=chunk) [Significant Events After the End of the Interim Reporting Period](index=36&type=section&id=Significant%20Events%20After%20the%20End%20of%20the%20Interim%20Reporting%20Period) There were no significant events affecting the Group after the end of the interim reporting period other than those disclosed in the announcement - There were **no significant events** affecting the Group after the end of the interim reporting period[203](index=203&type=chunk) [Interim Dividend](index=36&type=section&id=Interim%20Dividend_Other%20Information) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2023, consistent with the same period last year - The Board has resolved **not to declare an interim dividend** for the six months ended June 30, 2023, consistent with the same period last year[204](index=204&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2023 - For the six months ended June 30, 2023, neither the Company nor any of its subsidiaries **purchased, sold, or redeemed** any of the Company's listed securities[205](index=205&type=chunk) [Corporate Governance Practices](index=36&type=section&id=Corporate%20Governance%20Practices) The Group complied with all code provisions of the Corporate Governance Code during the reporting period, except for the dual role of Chairman and CEO held by the same individual - The Company has complied with all code provisions of the **Corporate Governance Code** as set out in Appendix 14 to the Listing Rules during the reporting period[206](index=206&type=chunk) - The roles of **Chairman and Chief Executive Officer** are both held by Mr Wong Chun Hong, an arrangement the Board believes ensures consistent leadership and will be reviewed in due course[218](index=218&type=chunk) [Model Code for Securities Transactions by Directors](index=37&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors have confirmed their compliance with the Model Code for Securities Transactions by Directors as set out in Appendix 10 to the Listing Rules throughout the reporting period - All directors have confirmed their compliance with the **Model Code for Securities Transactions by Directors** as set out in Appendix 10 to the Listing Rules during the reporting period[220](index=220&type=chunk) [Audit Committee's Review of Interim Results](index=37&type=section&id=Audit%20Committee's%20Review%20of%20Interim%20Results) The Company's Audit Committee has reviewed the Group's accounting principles and practices and the interim results for the six months ended June 30, 2023 - The Company's Audit Committee consists of **three independent non-executive directors**[221](index=221&type=chunk) - The Audit Committee has reviewed the Group's accounting principles and practices and the **interim results** for the six months ended June 30, 2023[221](index=221&type=chunk) [Publication of Results Announcement and Interim Report](index=37&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) The results announcement is published on the websites of the Stock Exchange and the Company, and the interim report will be sent to shareholders and published in due course - The results announcement is published on the **Stock Exchange's website** (www.hkex.com.hk) and the **Company's website** (www.topspring.com)[223](index=223&type=chunk) - The interim report will be sent to the Company's shareholders and published on the above websites in due course[223](index=223&type=chunk)

Real Estate Development and Projects - Estimated net saleable/leasable GFA as of December 31, 2022, is 20,172 sq.m. for Dongguan Landmark[1] - Total estimated GFA for Tianjin Le Leman City is 97,854 sq.m., with an estimated net saleable/leasable GFA of 97,526 sq.m. as of December 31, 2022[14] - Expected completion date for the Shenzhen project is August 2023, with a total estimated GFA of 107,281 sq.m. and an estimated net saleable/leasable GFA of 58,294 sq.m. as of December 31, 2022[18] - Estimated net saleable/leasable GFA for the Hong Kong Kowloon Tong Rutland Quadrant Project is 20,050 sq.m. as of December 31, 2022[24] - The company has a diverse portfolio that includes residential, retail, industrial parks, property management, education, and investment[29] Sustainability and Environmental Management - The company emphasizes sustainability in its business strategy and governance structure, with the Board overseeing ESG issues and strategies[40] - The company aims to positively impact the communities it invests in and promote high-quality, environmentally friendly lifestyles[38] - The company maintains open communication with stakeholders to align its sustainability strategies with their expectations[39] - The Group identified 15 material ESG issues that are impactful and significant to its stakeholders, with no major changes in principal activities during the year under review[43] - The Group implemented "Six 100%" measures for dust pollution prevention and control at construction sites, in compliance with regulatory requirements[49] - The Group emphasizes the integration of green building concepts throughout the property lifecycle, adhering to the GB/T 50378–2020 standards[47] - The Group has reinforced the management of construction waste disposal and recycling in response to the latest regulations[49] - The Group treats wastewater at construction sites to acceptable limits prior to discharge[49] - The Group maintains regular inspections on environmental, safety, and health measures conducted by construction contractors[49] - The Group's ESG management approach is shaped by stakeholder feedback, ensuring alignment with their concerns and expectations[69] - The Group aims to lead a quality and environmentally-friendly lifestyle, addressing emerging ESG challenges through sustainable development initiatives[68] - The company strictly adheres to national and local laws regarding greenhouse gas emissions, air pollution, and waste management, including the Environmental Protection Law of the PRC[74] - The company has implemented a wide range of environmentally friendly practices in property development and education-related businesses, including integrating green building designs and responsible construction practices[74] - The green building concept is incorporated throughout the lifecycle of buildings, following guidelines such as the Assessment Standard for Green Building (GB/T 50378–2020)[75] - Various monitoring measures are implemented at construction sites to ensure compliance with environmental laws, enhancing environmental friendliness and reducing negative impacts on nearby communities[77] - The company promotes energy efficiency through the adoption of energy-efficient designs and equipment in its properties[74] - The company aims to improve water use efficiency through water-efficient designs and recycling practices at construction sites[74] - The company has implemented measures to treat waste cooking oils from restaurants before discharge, ensuring compliance with environmental regulations[100] - The company aims for zero incidents regarding the use and storage of pesticides and cleansing agents[100] - The company supports local government initiatives for old clothing recycling by providing venues and encouraging donations[89] - The company is focused on promoting environmental friendliness and reducing negative impacts on nearby communities through its construction practices[98] Corporate Governance - The company has adopted the Corporate Governance Code as the basis for its corporate governance practices, ensuring high standards to enhance corporate value and safeguard shareholder interests[197] - The Board consists of three executive directors, two non-executive directors, and three independent non-executive directors, with Mr. WONG Chun Hong serving as the chairman[197] - The company has complied with all Code Provisions of the Corporate Governance Code during the year ended December 31, 2022, except for the separation of the roles of chairman and CEO[197] - The Board is responsible for overseeing major matters, including management strategies, internal controls, financial performance, and monitoring senior management[197] - The company will review its current governance structure when appropriate to ensure effective leadership and accountability[197] - The Board consists of at least one-third independent non-executive Directors, ensuring a balanced composition[198] - All Directors receive regular updates on the Group's performance, position, and prospects to make informed decisions[198] - The Company has mechanisms in place to ensure independent views are available to the Board, reviewed annually[198] - The Board is responsible for developing and reviewing corporate governance policies and practices[198] - All Directors are subject to retirement by rotation and eligible for re-election at least once every three years[200] - Newly appointed Directors receive a comprehensive, tailor-made induction to understand the Company's operations and responsibilities[200] Employee Welfare and Development - As of December 31, 2022, the Group has a total of 883 employees, comprising 882 full-time and 1 part-time employee[117] - Employee distribution by region shows 96% in Hong Kong and 4% in Mainland China[119] - Employee age distribution indicates 20% are under 30, 68% are between 30-50, and 12% are over 50[120] - The Group strictly complies with relevant labor laws and regulations, ensuring occupational health and safety, and prohibits any form of discrimination[116] - All employees are entitled to paid annual leave, sick leave, and other benefits, promoting work-life balance[117] - The Group has a zero-tolerance policy towards child labor and forced labor, requiring valid identification for all employees during recruitment[116] - The Group is committed to providing an inclusive working environment to foster employee diversity and development opportunities[115] - The Group has established grievance channels for employees to report suspected non-compliance or misconduct[115] - The Group emphasizes the importance of employee contributions to overall business success and aims to optimize career development mechanisms[116] - The company encourages employee development through competitive salaries and regular performance reviews to maximize their potential and value[132] - Approximately 10,200 hours of training and development were provided for employees in 2022, enhancing their professional skills and knowledge[175] - The company reported a 100% training rate for middle management, with an average of 9.31 training hours completed per employee in that category[150] - The company actively supports employee well-being and work-life balance through team-building events to enhance cohesion and teamwork[149] Community Engagement and Social Responsibility - The company donated approximately HK$1,463,000 to support various community investment programs during the year[182] - The New Great Wall-Top Spring International Scholarship program has been providing financial support for college students from Guangdong, Jiangsu, Jiangxi, and Sichuan since 2010[182] - The company is dedicated to supporting charitable initiatives and donations to contribute to the development of charity undertakings in China[182] - The Group organized recycling campaigns for second-hand textbooks in 2022, donating them to students in need to alleviate economic burdens[110] Health and Safety - The company achieved a zero-incident goal for major health and safety accidents, ensuring no work-related deaths or lost days due to injuries were recorded during the year[162] - There were no work-related fatalities or lost days due to work-related injuries recorded during the year under review, indicating a strong safety compliance record[144] - The company has set a safety objective of zero major health and safety incidents and conducts regular safety inspections to ensure compliance with health and safety measures[142] - The company adheres to ISO 45001 certification for occupational health and safety management systems, demonstrating commitment to employee safety[161] - Regular safety inspections are conducted to ensure health and safety measures are effectively implemented across properties and construction sites[161] - Employees are provided with personal protective equipment, including surgical masks and disinfectants, to minimize infection risks during the COVID-19 pandemic[161] Financial Performance and Emissions - In 2022, the Group's operations generated 10,281.84 tonnes of carbon dioxide equivalent, with approximately 96% of emissions coming from energy consumption through purchased electricity (Scope 2) [110] - Total GHG emissions in 2022 amounted to 9,731.59 tonnes of carbon dioxide equivalent, reflecting a decrease of 1.49% compared to 2021 [112] - The Group's total energy consumption in 2022 was 18,573,936.23 kWh, showing an increase of 0.88% from the previous year [112] - The Group's water consumption in 2022 was 553,752.60 m³, which is a reduction of 8.74% compared to 2021 [112] - The Group's general waste generated in 2022 was 26,260.66 tonnes, a significant reduction of 20.61% compared to 2021 [112] - The Group is actively implementing various emission reduction measures and energy-efficient initiatives to mitigate environmental impacts [110]

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之內容概不 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之任何損失承擔任何責任。 TOP SPRING INTERNATIONAL HOLDINGS LIMITED 萊 蒙 國 際 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：03688） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 綜 合 年 度 業 績 公 告 摘要 • 截至二零二二年十二月三十一日止年度，本集團錄得物業及停車位預 售額合共約703,000,000港元。物業預售額約663,300,000港元，已預售建築 面積約7,877平方米，而平均售價約每平方米84,207.2港元，較二零二一年 分別下降約61.0%、69.1%及增加約26.3%。 • 截至二零二二年十二月三十一日止年度的收入由截至二零二一年十二 月 三 十 一 日 止 年 度 約639,000,000 港 元 增 加 約473.9%至 約3,667,200,000 港 元。 • 截 至 二 零 二 二 年 十 ...

Sales Performance - In the first half of 2022, Top Spring International Holdings Limited recorded pre-sales of properties and car park units amounting to approximately HK$558.1 million, a decrease of 59.0% compared to HK$1,360.3 million in the same period of 2021[12]. - The presold saleable gross floor area (GFA) was 5,821 sq.m., down 73.0% from 21,610 sq.m. in the corresponding period of 2021[15]. - The average selling price of pre-sales of properties was approximately HK$92,733.2 per sq.m., compared to approximately HK$62,813.5 per sq.m. in the same period of 2021[36]. - For the six months ended June 30, 2022, the Group achieved property sales revenue of approximately HK$2,611.5 million, with a saleable GFA of approximately 32,713 sq.m.[41]. - The average selling price (ASP) of properties sold by the Group was approximately HK$79,830.6 per sq.m. for the same period[41]. - The total pre-sales for the Group during the six months ended June 30, 2022, amounted to HK$539.8 million, with a total pre-sold GFA of 5,821 sq.m.[38]. Financial Performance - For the six months ended June 30, 2022, the Group's total revenue was approximately HK$2,883.7 million, an increase of approximately 881.5% compared to HK$293.8 million for the same period in 2021[87]. - Property sales revenue for the same period was approximately HK$2,622.7 million, representing about 91.0% of total revenue[87]. - Gross profit rose by approximately 142.5% to approximately HK$400.6 million, with a gross profit margin of approximately 13.9%, down from 56.2% in the previous year[89]. - The Group recorded a profit attributable to equity shareholders of approximately HK$6.3 million, a decrease from approximately HK$96.6 million in the same period of 2021[87]. - The Group's net assets per share attributable to equity shareholders were approximately HK$6.4 as of June 30, 2022, down from approximately HK$6.7 as of December 31, 2021[87]. - The total comprehensive income for the period was HKD (567,321,000), a significant drop from HKD 220,705,000 in 2021[182]. Rental Income and Property Management - Rental income from investment properties was approximately HK$105.7 million, representing a decrease of 27.3% from HK$145.4 million in the first half of 2021[16]. - The average monthly rental income for the Group's investment properties under operation was approximately HK$71.3 per sq.m. for the six months ended June 30, 2022, down from HK$92.0 per sq.m. for the same period in 2021[46]. - The Group aims to maintain and appropriately increase rental properties that generate stable income growth[32]. - The management plans to enhance rental income and profit by holding more premium properties and conducting refined asset management[32]. - The Group's property management currently covers a contracted area of 15.93 million square meters, including 93 property projects[29]. Investment and Development Strategy - The land bank of 22 projects was approximately 484,048 sq.m., focusing on the Guangdong-Hong Kong-Macau Greater Bay Area and first-tier cities like Shenzhen, Shanghai, and Hong Kong[17]. - The Group is actively seeking investment opportunities in premium projects to ensure continuous development in the Hong Kong market[22][25]. - The Group plans to continue acquiring land parcels in economically vibrant areas with strong growth potential, particularly in the Greater Bay Area, Shanghai, and Sydney[85]. - The Group's strategy focuses on seeking growth amid prudent development to mitigate industry risks and promote orderly business progress[19]. - The Group's strategic focus remains on urban mixed-use community development in key regions of China, including the Greater Bay Area and the Yangtze River Delta[73]. Challenges and Market Conditions - The macroeconomic environment has posed unprecedented challenges to the national real estate market, with nearly 500 policy relaxations implemented to support demand[14]. - Local governments in China relaxed controlled policies nearly 500 times in the first half of 2022, marking a historic high in support for the real estate industry[18]. - The Group's strategy includes attracting large-scale anchor tenants to enhance project value through long-term lease agreements[46]. Employee and Corporate Governance - The Group employs approximately 890 employees as of June 30, 2022, an increase from approximately 860 employees as of December 31, 2021[102]. - The Company has complied with all code provisions under the Corporate Governance Code during the six months ended June 30, 2022, except for the roles of chairman and CEO being held by the same individual[112]. - The Company is committed to maintaining corporate governance to protect and maximize shareholder interests[112]. Share Options and Shareholder Information - The new share option scheme adopted on May 24, 2022, allows the Company to grant share options for a term of 10 years, but no share options were granted under this scheme for the six months ended June 30, 2022[107]. - The total number of share options granted under the previous post-IPO share option scheme amounted to 15,720,000, 14,000,000, 82,650,000, 3,000,000, 10,000,000, and 31,000,000 across various lots[106]. - Shareholders holding not less than one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting[122]. - The Company encourages shareholders to attend all general meetings to enhance communication between the Board and shareholders[122].

Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 3.5 billion, representing a year-on-year growth of 15%[2] - The Group's consolidated revenue for the year ended December 31, 2021, reached approximately HK$639.0 million, an increase of approximately 11.1% compared to HK$575.1 million in 2020[94] - Profit attributable to equity shareholders for the year ended December 31, 2021, was approximately HK$33.4 million, a significant recovery from a loss of approximately HK$283.3 million in the previous year[94] - Basic and diluted earnings per share for the year ended December 31, 2021, were approximately HK$0.02, compared to a loss of approximately HK$0.19 per share in 2020[94] - The Group recognized property sales of approximately HK$76.0 million, representing about 11.9% of total revenue for the year ended December 31, 2021[95] - Rental income for the year was approximately HK$247.0 million, accounting for approximately 38.7% of total revenue[95] - Income from property management and related services was approximately HK$271.4 million, representing approximately 42.5% of total revenue[95] - The Group's gross profit increased by approximately 22.6% to approximately HK$320.2 million for the year ended 31 December 2021, with a gross profit margin of approximately 50.1% compared to 45.4% in 2020[98] Market Expansion and Strategy - The company is expanding its market presence, targeting new regions in mainland China, aiming for a 25% increase in market share[2] - Strategic acquisitions are planned, with a budget of HKD 500 million allocated for potential mergers and acquisitions in the next year[2] - The Group's strategy emphasizes steady progress amid economic recovery and the construction of a new development layout[12] - The Group plans to actively expand premium projects in core cities such as Hong Kong and Sydney to enhance brand value and image[18] - The Group will continue to monitor market changes and integrate resources to cultivate a "property +" business model, achieving organic integration with diversified businesses[18] Project Development - New product developments include the launch of a premium residential project expected to contribute HKD 1 billion in sales[2] - The land bank of 22 projects was approximately 510,243 sq.m. as of December 31, 2021, focusing on the Greater Bay Area and first-tier cities in China[12] - The Group's ongoing projects include commercial and residential developments, with a significant focus on urban mixed-use communities[73] - The estimated net saleable/leasable GFA for the Shenzhen Upper Residence as of December 31, 2021, is 40,088 sq.m.[164] - The estimated total GFA for the Shenzhen TopSpring International Mansion is 107,281 sq.m., with an estimated net saleable/leasable GFA of 58,294 sq.m. as of December 31, 2021[157] Customer Engagement and Occupancy - User data indicated a rise in customer engagement, with a 20% increase in active users compared to the previous year[2] - As of December 31, 2021, the overall occupancy rate of the Group's investment properties was approximately 82.1%[10] - The occupancy rate of the Group's investment properties decreased from approximately 90.9% as of December 31, 2020, to approximately 82.1% as of December 31, 2021[60] Sustainability and Corporate Social Responsibility - A focus on sustainability has been emphasized, with plans to reduce carbon emissions by 30% over the next five years[2] - Corporate social responsibility initiatives have been expanded, with a commitment to invest HKD 50 million in community projects[2] - The Group has been recognized as a "Top 100 Property Service Company" for seven consecutive years and has received multiple awards for its property management services[16] - In 2021, Top Spring International Holdings Limited made donations exceeding HK$912,000 to various charitable organizations to support youth health, education, and cultural initiatives, as well as to combat the COVID-19 pandemic[32][34] Investment Properties and Rental Income - The total fair value of the Group's investment properties was approximately HK$9,016.6 million, representing about 31.8% of the Group's total asset value[56] - The Group generated rental income of approximately HK$247.0 million for the year ended December 31, 2021, an increase of approximately 6.9% from approximately HK$231.1 million for the year ended December 31, 2020[60] - The average monthly rental income for the Group's investment properties under operation was approximately HK$82.6 per sq.m. for the year ended December 31, 2021, compared to approximately HK$82.3 per sq.m. for the year ended December 31, 2020[60] Financial Position and Borrowings - Total borrowings amounted to approximately HK$10,142.3 million as at December 31, 2021, with approximately HK$6,454.0 million repayable within one year[101] - The net gearing ratio was approximately 59.8% as of December 31, 2021, unchanged from December 31, 2020[102] - The Group's cash and bank deposits decreased by approximately 16.2% to approximately HK$3,939.4 million as at 31 December 2021[101] ESG Strategy and Governance - The report covers the company's environmental, social, and governance (ESG) strategy and performance for the year 2021[189] - The Group is committed to promoting sustainable development and actively managing environmental, social, and governance issues[199] - The Board oversees the management of the overall ESG strategy and reporting of the Group[197] - Stakeholder feedback is valued to shape the overall ESG strategy and improve future performances[198]

Financial Performance - In the first half of 2021, the Group recorded pre-sales of properties and car park units amounting to approximately HK$1,360.3 million, a significant increase from HK$33.6 million in the same period of 2020[13]. - The Group recorded total pre-sales of properties and car park units of approximately HK$1,360.3 million for the six months ended 30 June 2021, representing an increase of approximately 3,948.5% compared to the same period in 2020[30]. - For the six months ended June 30, 2021, the Group's total revenue was approximately HK$293.8 million, an increase of 15.7% compared to HK$254.0 million for the same period in 2020[69]. - The Group recorded a profit attributable to equity shareholders of approximately HK$96.6 million, compared to a loss of approximately HK$211.4 million in the corresponding period of 2020[69]. - Basic earnings per share for the six months ended June 30, 2021, was HK$0.06, compared to a loss of HK$0.14 in the same period of 2020[69]. - The Group recorded a gain of approximately HK$67.7 million in fair value of its investment properties for the six months ended 30 June 2021, compared to a loss of approximately HK$114.5 million for the same period in 2020[39]. - The company reported a profit for the period of HKD 96,647,000, which contributed to a total comprehensive income of HKD 228,359,000[155]. - Total comprehensive income for the period was HK$220,705,000, a turnaround from a loss of HK$436,922,000 in 2020[145]. Property Sales and Development - The pre-sold saleable gross floor area (GFA) reached 21,610 sq.m., compared to 2,176 sq.m. in the corresponding period of 2020[13]. - The average selling price (ASP) of properties for the six months ended 30 June 2021 was approximately HK$62,813.5 per sq.m., compared to approximately HK$14,154.4 per sq.m. for the same period in 2020[31]. - The Shenzhen Upper Residence project has a total value of RMB2.5 billion, with approximately RMB1.6 billion sold by the end of June 2021[17]. - The Yuen Long Shap Pat Heung Road Project in Hong Kong has a GFA of approximately 245,000 sq.ft. and has officially initiated project development[18]. - The Shenzhen Jishengchang urban renewal project is being developed into a "residential + public housing + school" district, with a feasibility study currently being prepared[17]. - The urban renewal project in Dalang, Longhua District, Shenzhen, is expected to be approved for commencement in 2022[17]. - The Group's land bank of 22 projects was approximately 511,413 sq.m. as of June 30, 2021, with a focus on the Guangdong-Hong Kong-Macau Greater Bay Area and first-tier cities in China[13]. - The Group's land bank strategy will primarily focus on first-tier cities such as Shenzhen, Shanghai, and Hong Kong[13]. Rental Income and Investment Properties - Rental income from investment properties was approximately HK$145.4 million, representing a 42.8% increase from HK$101.8 million in the same period of 2020[13]. - The total fair value of the Group's investment properties was approximately HK$7,679.1 million as of 30 June 2021, representing approximately 27.5% of the Group's total asset value[39]. - The average monthly rental income for the Group's investment properties under operation was approximately HK$92.0 per sq.m. for the six months ended 30 June 2021, compared to approximately HK$81.1 per sq.m. for the same period in 2020[44]. - The occupancy rate and rental rate of the Group's existing investment properties under operation increased during the six months ended 30 June 2021, contributing to the rise in average monthly rental income[44]. - The Group aims to maintain steady growth in rental income by expanding its portfolio of self-owned premium properties[25]. Strategic Initiatives and Partnerships - The Group has signed a strategic cooperation agreement with the government of Nansha District, Guangzhou, to promote the "Guangdong-Hong Kong-Macao International Innovative City" project[15]. - The Group has entered into a strategic cooperation agreement with Guangdong Productivity Promotion Center to enhance industrial resource integration for project development[15]. - The Group is actively seeking investment opportunities in premium projects to ensure continuous investment and development in the Hong Kong market[18]. - The Group continues to be optimistic about overseas real estate markets such as Hong Kong and Sydney, actively seeking quality projects[25]. Corporate Governance and Management - The company has complied with the Corporate Governance Code during the six months ended June 30, 2021, with the exception of the roles of chairman and CEO being held by the same individual[94]. - The Board believes that having the same person serve as both chairman and CEO ensures consistent leadership and effective long-term strategy planning[94]. - More than half of the Board members are non-executive or independent non-executive Directors, ensuring a balance of power[94]. - The company is committed to maintaining corporate governance to protect and maximize shareholder interests[94]. Financial Position and Liabilities - Total borrowings as at 30 June 2021 were approximately HK$10,251.3 million, with HK$6,549.7 million repayable within one year[82]. - The net gearing ratio improved to approximately 54.4% as at 30 June 2021, down from 59.8% as at 31 December 2020, primarily due to the repayment of bank loans[83]. - The Group's cash and bank deposits amounted to approximately HK$4,672.2 million as at 30 June 2021, representing a decrease of approximately 0.6% from HK$4,699.8 million as at 31 December 2020[82]. - The annualised average cost of borrowings increased to approximately 6.0% for the six months ended 30 June 2021, compared to approximately 5.8% for the same period in 2020[83]. Employee and Operational Metrics - As of June 30, 2021, the Group employed approximately 881 employees, a slight increase from approximately 879 employees as of December 31, 2020[93]. - Total staff costs for the six months ended June 30, 2021, were approximately HK$112.1 million, compared to approximately HK$92.7 million for the same period in 2020[93]. - Selling and marketing expenses increased by approximately 76.5% to approximately HK$33.0 million for the six months ended 30 June 2021, accounting for approximately 2.4% of total pre-sales[80]. Shareholder Information - The Company declared an interim dividend of HK3 cents per share for the six months ended June 30, 2021, compared to nil for the same period in 2020[100]. - The interim dividend is expected to be payable on October 25, 2021[100]. - The register of members will be closed from October 5, 2021, to October 8, 2021, for determining the entitlement to the interim dividend[101].

Sales Performance - In 2020, the Group recorded pre-sales of properties and car park units amounting to approximately HK$1,125.2 million, a significant increase from HK$104.3 million in 2019[12][16]. - The presold saleable gross floor area (GFA) was 16,839 square metres in 2020, compared to 8,172 square metres in 2019[12][16]. - The average selling price (ASP) of properties in 2020 was approximately HK$66,417.2 per sq.m., a significant increase of approximately 470.1% compared to HK$11,649.5 per sq.m. in 2019[66]. - The total pre-sold gross floor area (GFA) was approximately 16,839 sq.m., an increase of approximately 106.1% from 2019[66]. - The Group recorded total pre-sales of properties and car park units of approximately HK$1,125.2 million in 2020, representing an increase of approximately 1,074.8% compared to 2019[66]. Rental Income and Property Management - Rental income from investment properties decreased to approximately HK$231.1 million in 2020, down from HK$272.0 million in 2019, representing a decline of about 15.0%[13][17]. - The average monthly rental income for the Group's investment properties was approximately HK$82.3 per sq.m. for the year ended December 31, 2020, down from HK$107.9 per sq.m. for the year ended December 31, 2019[82]. - The occupancy rate of the Group's investment properties increased from approximately 87.4% as of December 31, 2019, to approximately 90.9% as of December 31, 2020[82]. - The Group aims to maintain a steadily growing rental income and plans to expand its portfolio of premium properties to achieve greater growth in rental income[40]. - The Group's property management scale has been recognized, ranking 60th in the "Top 100 Property Service Companies in China" for six consecutive years from 2015 to 2020[13][17]. Financial Performance - The Group's consolidated revenue for the year ended December 31, 2020, was approximately HK$575.1 million, a decrease of approximately 20.0% compared to HK$719.2 million in 2019[116][121]. - The loss attributable to equity shareholders for the year was approximately HK$283.3 million, significantly improved from a loss of approximately HK$582.9 million in the previous year[116][118]. - Gross profit decreased by approximately 39.0% to about HK$261.1 million, with a gross profit margin of approximately 45.4%[124]. - Direct costs increased from approximately HK$291.2 million in 2019 to approximately HK$313.9 million in 2020, mainly due to increased construction costs[123]. - Income tax expense decreased by approximately 75.6% to approximately HK$20.9 million for the year ended December 31, 2020, from approximately HK$85.5 million in 2019, due to the reversal of CIT provision[138]. Project Development and Land Bank - As of December 31, 2020, the land bank of the Group consisted of approximately 511,413 sq.m. across 22 projects, focusing on the Greater Bay Area and first-tier cities in China such as Shenzhen, Shanghai, and Hong Kong[19]. - The estimated total leasable GFA of the Group's investment property portfolio is projected to reach approximately 302,572 square metres, considering completed projects not yet in operation[13][17]. - The Group's urban renewal projects in Nansha, Mainland China, include 3 projects with 5 land parcels totaling 348,332 sq.m. (522.5 acres) for which cooperation agreements have been signed[21][23]. - The Group's properties held for future development totaled 30,494 sq.m., indicating ongoing strategic planning for expansion[62]. - The Group intends to continue acquiring land parcels in economically vibrant areas, particularly in the Greater Bay Area, Shanghai, and Sydney[108]. Social Responsibility and Community Contributions - The Group has been actively involved in charitable initiatives, including support for education and cultural activities, as part of its corporate social responsibility[58]. - The Group made donations exceeding HK$2.22 million to various charitable foundations to support youth development, education, and COVID-19 relief efforts[56]. - The Group's commitment to social responsibility includes efforts in poverty alleviation and improving people's livelihoods[55]. - The Group's Chairman emphasized the importance of social responsibility and community contributions during uncertain times[50]. - The Group established the New Great Wall Scholarship Project to support underprivileged college students in Guangdong, Jiangsu, Jiangxi, and Sichuan since 2010[51]. Market Outlook and Strategic Focus - The Group anticipates gradual profit recovery as the economy in Mainland China begins to recover and new project developments progress, particularly in Nansha, Guangzhou[20]. - The Group is focused on opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area, which is expected to be a new growth pole for innovation and development[39]. - The Group's strategy includes the "Guangdong-Hong Kong-Macao International Innovative City" project in Nansha, integrating resources from the Greater Bay Area and Yangtze River Delta[20]. - The Group's strategy includes maintaining and moderately expanding its rental property portfolio to ensure stable growth[40]. - The Group's expansion strategy includes projects in international markets, such as the Sydney St. Leonards Project in Australia, with an estimated GFA of 30,494 sq.m.[99].