Financial Performance - The Group recorded a turnover of approximately RMB 84,976,000 for the six months ended 30 June 2019, representing a decrease of approximately 49.4% compared to RMB 168,014,000 for the corresponding period in 2018[8]. - Profit attributable to owners of the Company for the six months ended 30 June 2019 amounted to approximately RMB 32,493,000, a decrease of approximately 39.6% from RMB 53,773,000 in the same period of 2018[8]. - Basic earnings per share for the six months ended 30 June 2019 was RMB 1.88 cents, down from RMB 3.11 cents in 2018[8]. - Revenue for the three months ended 30 June 2019 was RMB 42,001,000, compared to RMB 91,505,000 for the same period in 2018[10]. - Total comprehensive income for the period ended 30 June 2019 was RMB 35,209,000, compared to RMB 57,155,000 for the same period in 2018[10]. - For the three months ended June 30, 2019, the profit attributable to owners of the Company was RMB 14,114, a decrease of 56% compared to RMB 31,882 in the same period of 2018[11]. - For the six months ended June 30, 2019, the profit attributable to owners of the Company was RMB 32,493, down 40% from RMB 53,773 in the same period of 2018[11]. - Basic and diluted earnings per share for the three months ended June 30, 2019, were both 0.82 RMB cents, a decrease from 1.84 RMB cents in the same period of 2018[11]. - The total comprehensive income for the period was RMB 33,377,000, compared to RMB 60,471,000 in the previous year, indicating a decrease of about 44.8%[20]. - Profit attributable to the owners of the Company decreased by approximately 39.6% to approximately RMB 32.5 million from approximately RMB 53.8 million for the corresponding period last year[116]. Expenses and Costs - Employee benefit expenses for the six months ended 30 June 2019 were RMB 27,032,000, down from RMB 34,415,000 in 2018[10]. - Administrative expenses for the six months ended 30 June 2019 were RMB 32,832,000, compared to RMB 43,256,000 in the same period of 2018[10]. - Interest expenses decreased by approximately 43.8% to RMB 4.9 million from RMB 8.7 million for the corresponding period last year[107]. - Administrative and employee benefit expenses decreased by approximately 23.0% to approximately RMB 59.9 million due to tightened control of relevant expenses[109]. Assets and Liabilities - As of June 30, 2019, total assets less current liabilities amounted to RMB 1,534,355, an increase from RMB 1,496,168 as of December 31, 2018[17]. - Current liabilities decreased to RMB 201,968 as of June 30, 2019, from RMB 246,857 as of December 31, 2018[17]. - Net current assets increased to RMB 92,986 as of June 30, 2019, compared to RMB 31,772 as of December 31, 2018[17]. - The Company’s total equity as of June 30, 2019, was RMB 1,509,867, an increase from RMB 1,473,165 as of December 31, 2018[17]. - The Group's loans and accounts receivables increased to RMB 143,897,000 as of June 30, 2019, compared to RMB 127,297,000 as of December 31, 2018, reflecting a growth of approximately 13%[75]. - The net loans and accounts receivables after loss allowance were RMB 138,464,000 as of June 30, 2019, up from RMB 111,412,000 as of December 31, 2018[75]. - The loss allowance for loans and accounts receivables decreased to RMB 5,433,000 as of June 30, 2019, from RMB 15,885,000 as of December 31, 2018, indicating improved asset quality[75]. Cash Flow - Net cash used in operating activities was RMB 74,380,000, a significant decline from the cash generated of RMB 85,211,000 in the same period of 2018[22]. - Cash and cash equivalents at the end of the period stood at RMB 28,861,000, down from RMB 93,714,000 at the end of June 2018, reflecting a decrease of approximately 69.1%[22]. - The Group's bank balances and cash amounted to approximately RMB 103.4 million, down from approximately RMB 138.8 million at the end of 2018[117]. Business Operations - The company's principal business includes investment in property development projects and operation of a financial services platform primarily in the People's Republic of China[25]. - The Group's investment in property development projects is the main source of revenue, primarily located in Shenzhen and Dongguan, which are expected to experience strong GDP growth[88]. - The Group's strategy focuses on maintaining the security of principal while providing loans and making investments[82]. - The financial management service platform "匯理財" was launched in 2018, enhancing risk control through big data technology[91]. - The Group provides tailored financial products, including short-term and long-term loans, to meet the financing needs of corporate customers[92]. - The Group aims to strengthen risk control to increase average project revenue and expand cooperation with reputable property developers[128][130]. - The Group will develop its financial consultation business by introducing customized financial arrangements to meet customer needs, anticipating growth in the second half of the year[129][131]. Shareholder Information - Mr. Zheng Weijing holds a total of 408,369,769 shares, representing approximately 23.59% of the Company[169]. - Ming Cheng Investments Limited owns 367,739,567 shares, accounting for 21.24% of the total shares[180]. - Ms. Zhang Chushan, spouse of Mr. Zheng Weijing, holds 408,369,769 shares, which is 23.59% of the total shares[180]. - Sino-Africa Resources Holdings Limited has an interest of 255,676,042 shares, representing 14.77%[180]. - Peace Bloom Limited holds 145,429,087 shares, which is 8.40% of the total shares[180]. - Upsoar Limited owns 155,518,650 shares, accounting for 8.98% of the total shares[180]. - As of June 30, 2019, GF Investments (Hong Kong) Company Limited holds 419,649,769 shares, representing 24.24%[181]. Corporate Governance - The Group has implemented measures to strengthen internal control and streamline business operations[93]. - Directors' emoluments are reviewed based on individual experience, responsibility, workload, and the Group's operating results[163]. - The Group adopts a conservative treasury policy to reduce credit risk and closely monitors liquidity to meet funding requirements[156]. - The annual training plan requires each employee to attend at least 12 hours of training every year to enhance professional skills[161]. Share Option Scheme - The company has adopted a Share Option Scheme allowing for the issuance of 173,143,250 shares, which is approximately 10% of the total issued share capital[196]. - Each participant in the Share Option Scheme can be entitled to options not exceeding 1% of the issued share capital in any 12-month period[196]. - A total of 76,000,000 share options were granted on December 17, 2015, with varying exercise periods depending on the option category[200]. - All share options are contingent upon the fulfillment of specific profit targets set by the company[200]. - The Share Option Scheme aims to provide incentives to eligible participants for their contributions to the group[188].

股份代號 First Quarterly Report 第一季度業績報告 2019 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given the compani ...

Financial Performance - Revenue for 2018 was RMB 220,353,000, a decrease of 42.7% compared to RMB 384,604,000 in 2017[16] - Profit attributable to owners for the year was RMB 102,575,000, down 32.9% from RMB 152,762,000 in the previous year[16] - Basic earnings per share decreased to RMB 5.92 cents from RMB 8.82 cents, reflecting a 32.9% decline[16] - For the year ended December 31, 2018, the Group's revenue was approximately RMB220.4 million, with profit before tax at approximately RMB121.3 million and profit attributable to owners at approximately RMB102.6 million, representing year-on-year decreases of 42.7%, 45.8%, and 32.9% respectively[20][37] - The Group's business segments recorded moderate and stable performance during the year, primarily serving existing customers[67] - Profit margin for the year attributable to the owners of the Company increased to 46.6% compared to approximately 39.7% in the previous year, mainly due to fair value changes of investments in property development projects[74] - Revenue from financial consultation services decreased by approximately 46.6% to RMB 54.7 million, while revenue from investment in property development projects decreased by approximately 49.5% to RMB 112.3 million[78] - Profit attributable to the owners of the Company decreased by approximately 32.9% to RMB 102.6 million from RMB 152.8 million in the previous year[87] Asset and Financial Position - Total assets increased by 54.8% to RMB 1,743,025,000 from RMB 1,126,165,000 in 2017[16] - Net assets increased by 63.6% to RMB 1,473,165,000 compared to RMB 900,693,000 in 2017[16] - The Group's cash balance, including cash and cash equivalents and restricted cash, amounted to approximately RMB 138.8 million, an increase of 78.2% compared to the previous year[42] - The net assets of the Group reached RMB 1,473.2 million, reflecting a year-on-year increase of 63.6%[42] - The debt to equity ratio and gearing ratio were 9.7% and 8.0%, showing year-on-year decreases of 3.2% and 1.9% respectively, indicating a healthier financial position[42] - The Group's total borrowings were approximately RMB 139.3 million, up from RMB 111.1 million in 2017, with a debt-to-asset ratio of about 8.0%, down from 9.9% in 2017[97] Investment and Market Strategy - The Group's property investment business combines its solid foundation in financial services with knowledge of the property development market, adopting a "combination of investment and financing" approach[22][35] - The geographical scope of the Group's investment projects has expanded from the Greater Bay Area to core cities in Chongqing, Hubei, and Yunnan, indicating a growth in investment opportunities[26][30] - The Group aims to enhance cash flow and improve the quality of financial services by deepening cooperation with core partners and strictly following government policies[28][31] - The cyclical adjustment of the real estate industry and major economic transformation in China are expected to continue into 2019, prompting the Group to prepare thoroughly for these changes[28][31] - The Group's investment business is expected to offer higher annualized returns and greater security compared to traditional financial products, contributing to sustainable growth[35][36] - The Group plans to launch three investment projects for sale in 2019, which are expected to generate profits[115] - The Group will focus on major tier-1 and tier-2 cities for property investments to secure higher expected returns[115] - The Group is actively seeking investment opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on urban redevelopment projects[145] Operational Efficiency and Risk Management - The company is focused on improving operational efficiency and exploring new market opportunities[19] - The introduction of Tencent Cloud will improve risk identification capabilities, enhancing the Group's risk control measures[28] - The Group seeks to establish long-term business relationships with partners to ensure sustainable income sources and minimize risks associated with property development projects[55] - The Group conducts due diligence on potential development projects to assess their viability and associated risks before investment[59] - The Group will continue to monitor property development projects closely to ensure compliance and smooth progress[127] - The Group plans to enhance internal controls and cost management to improve profitability and operational efficiency[125] - The financial services platform faces increased competition and pricing pressure due to low entry barriers in the market[131] - Cybersecurity risks are a concern as the Group handles significant amounts of personal data, which could impact operations if compromised[132] Human Resources and Management - As of December 31, 2018, the Group had a total of 281 employees, a decrease from 340 in 2017[163] - Total staff costs for the year ended December 31, 2018, were approximately RMB 68.1 million, up from RMB 59.1 million in 2017, representing a 15.9% increase[167] - Employee remuneration is determined based on market conditions and individual performance, qualifications, and experience, with year-end bonuses awarded for individual contributions[167] - The remuneration committee reviews Directors' emoluments considering their experience, responsibility, workload, and the Group's operating results[164] - The Group's operational management is overseen by experienced executive directors, including the Chairman and CEO, who has been with the company since its inception[170] Financial Products and Services - The Group provides tailored financial products, including short-term and long-term loans, to meet the financing needs of its customers[66] - The Group's financial technology service platform "匯聯科技" was recognized as a "Fin-tech Innovative Financial Institution of 2018 in China" and "New Financial Model Innovative Institution with Excellent Competitiveness of 2018"[62] - The fin-tech platform aims to maintain a low bad debt rate while expanding its product portfolio into three segments: housing mortgage, personal loan, and corporate loan[118] - The finance lease business has established a strong market presence, particularly in construction equipment, and plans to introduce new products to increase revenue[119] Dividends and Shareholder Information - No interim dividend was paid, and a proposed final dividend of HK2 cents per share was suggested[16] - The Board does not recommend the payment of a final dividend for the financial year ended December 31, 2018[147] - The register of members will be closed from May 20, 2019, to May 24, 2019, for the purpose of determining shareholders' eligibility to attend and vote at the AGM[165]