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佈之內容概不負責，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佈全部或任何部分內容而產生或因 依賴該等內容而引致之任何損失承擔任何責任。 華億金控集團有限公司 SINOFORTUNE FINANCIAL HOLDINGS LIMITED （於開曼群島註冊成立之有限公司） （股份代號：08123） 主要交易 有關建議出售一間物業控股公司及 建議租回該物業 簽訂正式協議 謹此提述華億金控集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）日期為二零二五 年七月二十二日有關出售事項及租回安排之公佈（「該公佈」）。除另有指明者外，本公佈所用 詞彙與該公佈所界定者具有相同涵義。 董事會欣然宣佈，於二零二五年八月十八日（交易時段後），本公司、目標公司及買方已就出售 事項及租回安排訂立正式協議（「正式協議」，連同初步協議統稱「該等協議」）。 正式協議載列出售事項及租回安排的進一步條款及條件，對初步協議補充如下： 1. 出售事項之先決條件 完成須待以下條件獲達成或豁免（倘適用）後，方可作實： (a) 買方信納目標公司對該物業之業權及對目標公司事務之盡職 ...

[Supplementary Announcement: Regarding the 2024 Annual Report](index=1&type=section&id=supplementary_announcement_2024_annual_report) This announcement provides supplementary information to the 2024 annual report, detailing an impairment loss on prepayments for car resale contracts [Purpose and Background of Announcement](index=1&type=section&id=purpose_and_background_of_announcement) This announcement aims to provide supplementary information for Huayi Financial Holdings Group Limited's 2024 annual report, primarily addressing an impairment loss recognized by a subsidiary for approximately RMB 70.2 million in prepayments to a supplier for car resale contracts - This announcement provides supplementary information to the 2024 annual report of Huayi Financial Holdings Group Limited (the "Company")[4](index=4&type=chunk) - The supplementary information primarily concerns the recognition of an impairment loss of approximately **RMB 70.2 million** (equivalent to approximately **HKD 75.8 million**) on prepayments made by a subsidiary (the "Subsidiary") to an automotive supplier (the "Supplier") under purchase contracts for cars intended for resale[5](index=5&type=chunk) [Overview of Parallel Import Car Sales Business](index=2&type=section&id=overview_of_parallel_import_car_sales_business) The company has engaged in parallel import car sales in China since August 2017, procuring vehicles from suppliers for resale to end customers, with purchase contracts typically requiring a 10% to 45% non-refundable deposit, totaling 134 contracts, 88.8% of which include resale agreements - The Company has been engaged in the parallel import car sales business segment in China since August 2017[6](index=6&type=chunk) - The business model involves sourcing cars from suppliers and reselling them to end customers, with purchase contracts typically requiring a non-refundable deposit ranging from **10% to 45%**[6](index=6&type=chunk) Number of Purchase Contracts and Resale Status | Contract Type | Quantity (units) | Cars Involved (units) | Proportion | | :--- | :--- | :--- | :--- | | Total Purchase Contracts | 134 | 214 | 100% | | With Resale Contracts | 119 | 171 | 88.8% | | Without End Customers | 15 | 43 | 11.2% | [Details and Reasons for Impairment Loss](index=2&type=section&id=details_and_reasons_for_impairment_loss) The impairment loss primarily stems from car customs clearance delays, market price competition, and contractual risks, significantly reducing the likelihood of fund recovery, totaling approximately RMB 70.2 million across three prepayment categories, leading the Board to recognize the loss for accurate financial representation - The impairment loss is primarily due to the combined impact of contractual, market, and legal risks, significantly reducing the likelihood of recovering the funds[10](index=10&type=chunk) - Cars are stranded in bonded ports or warehouses, undeliverable, with customs clearance facing unprecedented delays due to unknown reasons, considered a systemic and industry-wide issue[9](index=9&type=chunk) Impairment Classification of Prepayments | Category | Description | Prepayment (RMB million) | Proportion of Total Impairment (%) | | :--- | :--- | :--- | :--- | | Category 1 | Without resale contracts, total contract price fully settled | 16.4 | 23.3% | | Category 2 | With resale contracts, total contract price fully settled | 24.3 | 34.7% | | Category 3 | With resale contracts, total contract price partially settled | 29.5 | 42.0% | | **Total** | | **70.2** | **100%** | - The Board decided to recognize the impairment loss to present a true and fair view of the Group's financial position and comply with accounting standards[11](index=11&type=chunk) [Analysis of Purchase Contract Payment Status](index=2&type=section&id=analysis_of_purchase_contract_payment_status) This section analyzes the payment status of purchase contracts, categorizing prepayments based on resale agreements and settlement status, highlighting issues like customs clearance delays - Category 1 contracts (without resale agreements) have been fully paid, totaling approximately **RMB 16.4 million**, with cars shipped to bonded ports awaiting resale[7](index=7&type=chunk) - Category 2 contracts (with resale agreements and fully settled) have been paid, totaling approximately **RMB 24.3 million**, with cars shipped to bonded ports awaiting customs clearance, and impairment is due to clearance delays[8](index=8&type=chunk) - Category 3 contracts (with resale agreements but partially settled) have been paid, totaling approximately **RMB 29.5 million**, with end customers also only partially paying, resulting in an outstanding balance of approximately **RMB 61.2 million** in receivables[9](index=9&type=chunk) - Legal ownership transfer of cars requires full payment, customs clearance, National VI emission certification, and payment of customs duties, but relevant cars remain stranded in bonded ports or warehouses due to clearance delays[9](index=9&type=chunk) [Resale Contracts and End Customer Defaults](index=4&type=section&id=resale_contracts_and_end_customer_defaults) This section details the status of resale contracts, highlighting end customer defaults and the company's legal actions to recover outstanding payments - **119** purchase contracts are accompanied by resale agreements, involving **14** independent end customers[12](index=12&type=chunk) - As of December 31, 2024, the Subsidiary had received approximately **RMB 53.5 million** from end customers (as deposits and prepayments for resale contracts)[12](index=12&type=chunk) - **10** end customers have only partially paid the resale price, and the Company has initiated legal action to recover funds, with approximately **RMB 25.9 million** (representing **36.9%** of the total impairment loss) in non-refundable deposits expected to be forfeited[12](index=12&type=chunk) [Company's Remedial Actions and Future Outlook](index=4&type=section&id=companys_remedial_actions_and_future_outlook) The company has implemented various measures to address challenges, including legal actions against defaulting customers, engaging customs brokers to expedite clearance, exploring overseas markets for car disposal, and planning expansion into the EU market and collaborations with Chinese manufacturers to overcome obstacles and enhance business performance - The Company has engaged Chinese law firms to issue **13** lawyer's letters and **29** demand notes to defaulting end customers, initiating formal lawsuits against **two** unresponsive customers in 2025[13](index=13&type=chunk) - Since late 2024, a licensed customs broker has been engaged to handle car customs clearance procedures, with revised clearance policies in April 2025 expected to streamline customs clearance[13](index=13&type=chunk) - The Company is actively disposing of cars through various channels to other regions, such as South Korea and the Middle East; as of June 30, 2025, **50** cars have been resold, recovering approximately **RMB 7.2 million**, and **7** cars delivered to end customers, with deposits of approximately **RMB 10.1 million** treated as partial purchase payments[14](index=14&type=chunk) - The Company plans to explore more overseas markets, particularly the EU market, and new customers, and has begun discussions with some Chinese manufacturers for export cooperation to enhance the revenue, profit, and operational levels of this business segment[14](index=14&type=chunk) [Board Statement and Information](index=5&type=section&id=board_statement_and_information) The Board confirms that the information contained in this announcement is accurate and complete, without misleading or fraudulent content, and the supplementary information does not affect other data in the annual report, which will be published on the Hong Kong Stock Exchange and the company website - The Board confirms that the information contained in this announcement is accurate and complete in all material respects, without any misleading or fraudulent content[16](index=16&type=chunk) - The aforementioned supplementary information does not affect other information contained in the annual report, and all other information in the annual report remains unchanged[14](index=14&type=chunk) - This announcement will be available for viewing on the website of The Stock Exchange of Hong Kong Limited and the Company's website for at least seven days from the date of publication[16](index=16&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈之內容概不負責、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佈全部或任何部分內容而產生或因依賴該等內容而引致之任何損 失承擔任何責任。 華 億金控 集 團 有 限 公 司 SINOFORTUNE FINANCIAL HOLDINGS LIMITED 王嘉偉 香港，二零二五年八月八日 於本公佈日期，執行董事為王嘉偉先生及黎玉梅女士，非執行董事為劉潤桐先生及獨立非執行董 事為張本正教授、李建行先生、陳樹文教授及李冠群先生。 本公佈的資料乃遵照聯交所 GEM 證券上市規則而刊載，旨在提供有關本公司的資料；本公司董 事願就本公佈的資料共同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所知 及所信，本公佈所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分，且並無遺漏任何事 項，足以令致本公佈或其所載任何陳述產生誤導。 華億金控集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會謹訂於二零二五 年八月二十九日（星期五）下午三時三十分於香港中環干諾道中64-66號廠商會大廈16樓舉行董 事會會議，以商討下列事項： ...

致：香港交易及結算所有限公司 公司名稱: 華億金控集團有限公司 呈交日期: 2025年8月1日 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08123 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 10 ...

Financial Performance - The Group recorded a loss of approximately HK$99.0 million for the year ended December 31, 2024, compared to a loss of approximately HK$15.8 million for the year ended December 31, 2023, representing an increase in loss of approximately HK$83.2 million[19]. - Total revenue for the year ended December 31, 2024, was approximately HK$32.3 million, a decrease of approximately HK$117.7 million compared to the previous year[20]. - Revenue from trading of motor vehicles, agency services, and accessories sourcing was approximately HK$32.1 million for the year ended December 31, 2024, down from approximately HK$149.7 million in the previous year, indicating a decrease of approximately 78.8%[20]. - The significant drop in revenue was primarily due to the adverse market conditions affecting the automotive sector[19]. - The Group's financial performance reflects the challenges faced in the current economic environment, impacting both revenue and profitability[21]. - The loss for the year ended December 31, 2024, was mainly attributable to the significant drop in revenue and the recognition of impairment losses[19]. - The significant loss was attributed to a drop in revenue, an impairment loss on advance payments for trading motor vehicles of approximately HK$75.8 million, and an impairment loss on property acquisition of approximately HK$1.5 million[38]. - The Group recorded total revenue of approximately HK$32.3 million for the year ended December 31, 2024, a decrease of approximately 78.5% compared to the previous year[37]. - The Group incurred a loss of approximately HK$99 million for the year, an increase of about 5.3 times compared to a loss of approximately HK$15.8 million in the previous year, driven by significant revenue decline and impairment losses[42]. Impairment Losses - The impairment loss on deposits paid for acquisition of motor vehicles for resale amounted to approximately RMB70.2 million (equivalent to approximately HK$75.8 million), which was recognized due to the inability to complete the purchases[19]. - The Group's management conducted a review of the Purchase Contracts and determined that the recoverability of the Advance Payments could not be assured, leading to the impairment charge[19]. - The impairment loss on advance payments for the purchase of trading motor vehicles amounted to approximately HK$75.8 million, with additional losses on settlement of advance payments of approximately HK$2.1 million[52]. - The impairment loss on deposits for the purchase of trading motor vehicles was recognized due to the ongoing price war in the PRC automotive market, which has made it difficult for the Group to compete[29]. Market Conditions - The Group anticipated a recovery in the PRC economy in 2024; however, domestic demand remained weak due to ongoing geopolitical and trade tensions[21]. - The decline in customer purchasing desire has been attributed to factors such as the COVID-19 pandemic, lockdowns in PRC, and the Sino-US trade war[21]. - The ongoing price war among automakers in the PRC has intensified competition, particularly in the new-energy vehicle sector, affecting the Group's market position[25]. Revenue Sources - The revenue of the Group as of December 31, 2024, primarily came from the trading of motor vehicles, provision of agency services, and accessories sourcing in the PRC[69]. - The Group's trading of motor vehicles revenue as a principal was approximately HK$30.8 million for the year ended December 31, 2024, down from approximately HK$148.3 million in the previous year[30]. - The Group's agency and service fees income from accessories sourcing was approximately HK$1.3 million for the year ended December 31, 2024, compared to approximately HK$1.4 million in the previous year[30]. Corporate Governance - The Company has complied with the corporate governance code provisions, except for the separation of roles between the chairman and chief executive officer[175]. - The current board consists of two executive and five non-executive Directors, with more than one-third being independent non-executive Directors[180]. - The Company is committed to maintaining a high standard of corporate governance, as detailed in the corporate governance report[158]. - The Company has adopted a code of conduct for Directors' securities transactions that meets the standards set out in the GEM Listing Rules[177]. - The Company received annual independence confirmations from all independent non-executive directors, affirming their independence[182]. Staff and Operations - As of December 31, 2024, the Group's total staff costs amounted to approximately HK$12.0 million, a decrease from approximately HK$13.7 million in 2023, with a workforce of 38 employees compared to 46 in the previous year[68]. - The Group plans to introduce more new energy vehicles and promote the trading of petrol vehicles and new energy vehicles to enhance business performance in the motor vehicle trading segment[74]. - Chongqing Sheng Yu Hong Jia International Trading Company Limited increased its customer base to 126, with 44 customers in negotiation, aiming to reduce reliance on a small number of customers[70]. Legal and Financial Matters - The Group did not have any contingent liabilities as of December 31, 2024, maintaining a stable risk profile[58]. - The Company does not plan to transfer any amount to reserves for the year ended December 31, 2024[99]. - The Company was incorporated on May 24, 2001, as an exempted company with limited liability in the Cayman Islands[97]. - The Company has a sufficient prescribed public float of the issued shares under the GEM Listing Rules[160]. Directors and Management - Mr. Wang Jiawei has been the Executive Director and CEO since September 22, 2015, and holds a Bachelor's degree in Mathematics and a Master's degree in Finance[83]. - Ms. Li Yumei has served as an Executive Director since August 1, 2015, and has been with the company since July 14, 2008, holding a degree in Financial Services[83]. - Mr. Liu Runtong, a non-executive director since February 2, 2010, has over 26 years of experience in financial media and services in Mainland China[84]. - Professor Zhang Benzheng has been an independent non-executive director since September 30, 2008, and has held various senior positions in listed companies, contributing significantly to their success[87]. - Mr. Li Jianxing has been an independent non-executive director since March 28, 2011, and has over 30 years of experience in accounting and corporate finance[89].

Financial Performance - For the year ended December 31, 2024, the group recorded revenue from continuing operations of approximately HKD 32,148,000, a decrease of 78.6% compared to HKD 149,684,000 in 2023[3] - The loss for the year ended December 31, 2024, was approximately HKD 99,019,000, compared to a loss of HKD 15,796,000 in 2023, representing a significant increase in losses[3] - The basic loss per share attributable to the owners of the company was HKD 1.27, compared to HKD 0.20 in 2023, indicating a substantial decline in profitability[4] - Total comprehensive loss for the year amounted to HKD 103,449,000, compared to HKD 19,190,000 in 2023, reflecting a worsening financial position[8] - The group reported a net loss from continuing operations of HKD 101,039,000 for the year, compared to HKD 12,124,000 in 2023, showing a deterioration in operational performance[9] - The total revenue for the group from continuing operations was HKD 32,148,000, down from HKD 149,684,000 in the previous year, indicating a decrease of about 78.6%[20] - The company recorded a net loss of approximately HKD 99,019,000 for the year ending December 31, 2024, with current liabilities exceeding current assets by about HKD 50,643,000[16] - The total loss attributable to the company’s owners for 2024 was 98,752,000 HKD, compared to 15,777,000 HKD in 2023[42] - The company recorded a loss of approximately HKD 99,000,000 for the year ending December 31, 2024, an increase of about HKD 83,200,000 compared to a loss of HKD 15,800,000 for the previous year[55] Asset and Equity Position - The group's total assets less current liabilities decreased to HKD 16,787,000 from HKD 120,866,000 in 2023, indicating a significant decline in net asset value[11] - The company's equity attributable to owners decreased to HKD 14,870,000 from HKD 118,052,000 in 2023, highlighting a substantial reduction in shareholder equity[11] - As of December 31, 2024, the group's current assets were approximately HKD 50,300,000, down from HKD 220,300,000 a year earlier, resulting in a current ratio of 0.5 compared to 1.8 in the previous year[59] - The total borrowings of the group amounted to HKD 28,000,000 as of December 31, 2024, down from HKD 30,000,000 in the previous year, with a capital debt ratio of 692.6% compared to 106.8% a year earlier[60] Revenue and Sales Performance - Revenue from the automotive trade segment decreased to HKD 30,803,000 in 2024 from HKD 148,322,000 in 2023, representing a decline of approximately 79.2%[20] - The automotive trading segment recorded revenue of approximately HKD 32,100,000, a decrease of about 78.6% from HKD 149,700,000 in the previous year, with a loss of approximately HKD 82,400,000 attributed to various impairment losses[62] - Major customer A contributed HKD 8,452 thousand to revenue, down from HKD 39,193 thousand in the previous year, indicating a decline of approximately 78%[32] - The company did not report any revenue from major customers exceeding 10% in the current year, indicating a shift in customer dependency[32] Impairment and Losses - The group experienced a significant impairment loss on prepayments for vehicle purchases amounting to HKD 75,805,000, which contributed to the overall losses[7] - The company recorded a significant impairment loss of HKD 75,805 thousand related to prepayments for vehicle purchases[27] Dividends and Shareholder Returns - The board of directors did not recommend the payment of a dividend for the year ended December 31, 2024, consistent with the previous year[5] - The company did not recommend any dividend payment for the year ending December 31, 2024, consistent with the previous year[53] Operational Changes and Future Outlook - The group has terminated its brokerage and securities margin financing services, which were previously a significant part of its operations[22] - The company is implementing various measures to enhance its sales network and effective cost control to improve profit margins and operating cash flow[17] - The group plans to leverage the global automotive industry's green transformation and technological advancements to introduce more new energy vehicles to improve the performance of the automotive trading segment[65] - The group aims to diversify its business by closely monitoring the new drug development market in China, which has seen stable growth due to regulatory reforms in the pharmaceutical industry[66] - The group will continue to seek opportunities to expand its revenue sources and enhance overall performance[67] Cash Flow and Liquidity - The company’s cash and cash equivalents in general accounts decreased to HKD 13,532,000 from HKD 19,554,000 in 2023, indicating a decline in liquidity[10] - The company’s cash inflow from operating activities for the period was 1,732,000 HKD, compared to an outflow of 3,450,000 HKD in 2023[40] - The company’s cash client receivables and Hong Kong settlement amounts are expected to be paid within one or two trading days post-transaction, indicating a short receivable cycle[47] Employee and Operational Costs - As of December 31, 2024, the group employed 38 staff members, down from 46 in 2023, with total employee costs approximately HKD 12,000,000 compared to HKD 13,700,000 in the previous year[72] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ending December 31, 2024, and found them compliant with applicable accounting standards[78] - The company has adopted a code of conduct for directors' securities transactions that meets or exceeds the standards set by GEM Listing Rules[74] - The chairman and CEO roles are held by the same individual, which deviates from the recommended separation of these roles[77] Miscellaneous - The company has no specific plans for any major investments as of the reporting period[71] - The company has no contingent liabilities as of December 31, 2024, consistent with the previous year[69] - The company has not disclosed any other significant acquisitions or disposals that require disclosure under GEM Listing Rules during the review year[71]

Performance Summary [Key Financial Indicators](index=3&type=section&id=%E6%91%98%E8%A6%81) The Group reported revenue of HK$20.5 million and a net loss of HK$12.98 million for the six months ended June 30, 2024 2024 Interim Results Summary | Indicator | Amount (HK$) | | :--- | :--- | | Revenue | Approx 20,500,000 | | Loss for the period | Approx 12,982,000 | | Loss attributable to owners of the Company | Approx 12,973,000 | | Basic loss per share | 0.17 HK cents | | Proposed dividend | Nil | Condensed Consolidated Financial Statements (Unaudited) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E5%85%A5%E5%A0%B1%E8%A1%A8) The Group's revenue fell 75.4% year-on-year to HK$20.5 million, while the net loss remained stable at approximately HK$12.98 million Key Income Statement Data (For the six months ended June 30) | Indicator (HK$'000) | 2024 (Unaudited) | 2023 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 20,500 | 83,380 | -75.4% | | Loss before income tax | (13,011) | (13,604) | -4.4% | | Loss for the period | (12,982) | (13,604) | -4.6% | | Loss attributable to owners of the Company | (12,973) | (13,598) | -4.6% | | Basic loss per share (HK cents) | (0.17) | (0.18) | N/A | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E5%A0%B1%E8%A1%A8) The Group's net assets decreased by 13.6% to HK$102.2 million as of June 30, 2024, due to declining assets and rising liabilities Key Balance Sheet Data | Indicator (HK$'000) | Jun 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | Period Change | | :--- | :--- | :--- | :--- | | Non-current assets | 22,608 | 23,930 | -5.5% | | Current assets | 210,526 | 220,349 | -4.5% | | **Total assets** | **233,134** | **244,279** | **-4.6%** | | Current liabilities | 128,517 | 123,413 | +4.1% | | Non-current liabilities | 2,460 | 2,647 | -7.1% | | **Total liabilities** | **130,977** | **126,060** | **+3.9%** | | **Net assets** | **102,157** | **118,219** | **-13.6%** | | Equity attributable to owners of the Company | 102,003 | 118,052 | -13.6% | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The Group's operating activities generated a net cash inflow of HK$7.73 million, a significant turnaround from the prior year's outflow Key Cash Flow Data (For the six months ended June 30) | Indicator (HK$'000) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash from operating activities | 7,728 | (5,087) | | Net cash used in investing activities | (23) | (79) | | Net cash used in financing activities | (1,713) | (1,206) | | Net increase/(decrease) in cash and cash equivalents | 5,992 | (6,372) | | Cash and cash equivalents at beginning of period | 19,554 | 32,986 | | **Cash and cash equivalents at end of period** | **25,546** | **26,614** | Management Discussion and Analysis [Business and Financial Review](index=25&type=section&id=%E6%A5%AD%E5%8B%99%E8%88%87%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Revenue sharply declined by 75.4% to HK$20.5 million due to the shrinking auto trade, though losses remained stable at HK$13 million - Revenue decreased by **HK$62.88 million (-75.4%)** year-on-year, primarily due to a reduction in the automobile trading and agency services business in China[41](index=41&type=chunk)[43](index=43&type=chunk) - The loss for the period was approximately **HK$13.0 million**, comparable to the prior year's HK$13.6 million, mainly due to decreased sales and increased financing costs[41](index=41&type=chunk) - Given the persistent losses in the securities-related business, the Group **disposed of Sinofortune BVI** and its subsidiaries on July 9, 2024, to reallocate resources[42](index=42&type=chunk) [Segment Performance](index=13&type=section&id=%E5%88%86%E9%83%A8%E8%A1%A8%E7%8F%BE) The auto trading segment's revenue collapse drove the overall decline, while the underperforming securities business was divested post-period Revenue by Business Segment (For the six months ended June 30) | Segment (HK$'000) | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Automobile trading, agency services and procurement of accessories | 20,343 | 83,170 | -75.5% | | Trading of listed securities | 0 | 0 | - | | Brokerage and securities margin financing services | 157 | 210 | -25.2% | | **Total** | **20,500** | **83,380** | **-75.4%** | - The Group has invested in China's new drug development market, co-developing four new drugs, one of which has entered Phase II clinical trials[42](index=42&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's liquidity weakened with a current ratio drop to 1.6, while the gearing ratio rose significantly to 128.4% Key Financial Ratios and Resources | Indicator | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Current ratio | 1.6 times | 1.8 times | | Gearing ratio | 128.4% | 106.8% | | Bank balances and cash | HK$30.69 million | HK$24.83 million | | Total other borrowings | HK$30.00 million | HK$30.00 million | [Prospects](index=27&type=section&id=%E5%89%8D%E6%99%AF) The Group will pivot its core auto business to new energy vehicles and explore new drug development investments for diversification - The strategic focus will be on **new energy vehicles and the Hainan duty-free car business** to counter shrinking demand for gasoline cars[46](index=46&type=chunk) - The Group still needs to resolve environmental certification issues for imported China VI standard vehicles, with six models certified and others pending[45](index=45&type=chunk) - The company will continue to monitor China's new drug development market to **diversify the Group's business**[46](index=46&type=chunk) Significant Notes and Other Disclosures [Events After the Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Post-period, the Group completed the disposal of its loss-making financial services subsidiary, Sinofortune BVI, on July 9, 2024 - On July 9, 2024, the company sold its wholly-owned subsidiary Sinofortune BVI, which engaged in regulated activities, for **HK$4 million in cash plus net asset value**[40](index=40&type=chunk) [Revenue Breakdown](index=12&type=section&id=%E6%94%B6%E7%9B%8A) The Group's revenue is almost entirely derived from its auto trading business in Mainland China, which saw a significant decline Revenue from External Customers by Location (For the six months ended June 30) | Location (HK$'000) | 2024 | 2023 | | :--- | :--- | :--- | | China (excluding Hong Kong) | 20,343 | 83,170 | | Hong Kong | 157 | 210 | | **Total** | **20,500** | **83,380** | [Directors, Shareholders, and Corporate Governance](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E8%A1%8C%E6%94%BF%E7%B8%BD%E8%A3%81%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) The Chairman and CEO, a substantial shareholder with a 27.40% stake, holds dual roles, a deviation from governance codes - Chairman Mr. Wang Jiawei beneficially owns 2,123,395,935 shares, representing an approximate **27.40% stake** in the company[52](index=52&type=chunk) - The company deviates from the Corporate Governance Code by having **Mr. Wang Jiawei serve as both Chairman and CEO**[58](index=58&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the interim financial statements[60](index=60&type=chunk)[61](index=61&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the group recorded revenue of approximately HKD 20,500,000, a decrease from HKD 83,380,000 for the same period in 2023, representing a decline of 75.4%[3] - The group incurred a loss of approximately HKD 12,982,000 for the six months ended June 30, 2024, compared to a loss of HKD 13,604,000 for the same period in 2023, indicating a slight improvement of 4.6%[4] - Basic loss per share for the period was HKD 0.17, compared to HKD 0.18 for the same period in 2023[5] - The group reported a total comprehensive loss of HKD 16,062,000 for the six months ended June 30, 2024, compared to HKD 18,753,000 for the same period in 2023, reflecting a decrease of 9.1%[5] - The group experienced a significant decrease in inventory changes, with a loss of HKD 19,549,000 for the period compared to a loss of HKD 82,372,000 in the previous year[4] - The automotive trading segment generated revenue of HKD 19,715,000, down 76.3% from HKD 82,780,000 in the previous year[15] - For the six months ended June 30, 2024, the group reported external sales of HKD 20,343,000, a decrease of 75.6% compared to HKD 83,170,000 for the same period in 2023[20] - The total segment loss for the automotive division was HKD (3,517,000) for the six months ended June 30, 2024, compared to HKD (5,804,000) for the same period in 2023, indicating an improvement[19] - The group incurred a total loss of HKD (12,982,000) for the six months ended June 30, 2024, slightly better than the loss of HKD (13,598,000) for the same period in 2023[24] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to HKD 22,608,000, a decrease from HKD 23,930,000 as of December 31, 2023[7] - Current assets totaled HKD 210,526,000 as of June 30, 2024, compared to HKD 220,349,000 as of December 31, 2023, showing a decrease of 4.3%[7] - Current liabilities increased to HKD 128,517,000 as of June 30, 2024, from HKD 123,413,000 as of December 31, 2023, representing an increase of 4.1%[8] - The net asset value decreased to HKD 102,157,000 as of June 30, 2024, from HKD 118,219,000 as of December 31, 2023, indicating a decline of 13.6%[8] - The company’s total equity as of June 30, 2024, was HKD 102,157,000, reflecting a decrease from HKD 118,656,000 at the end of the previous period[9] - The group’s total liabilities were approximately HKD 130.98 million, resulting in a debt-to-equity ratio of 128.4% as of June 30, 2024[47] - The company reported contract liabilities of HKD 77,212,000 as of June 30, 2024, compared to HKD 73,393,000 on December 31, 2023, reflecting a 5% increase[37] Cash Flow and Financing - The net cash generated from operating activities was HKD 7,728,000, compared to a net cash outflow of HKD 5,087,000 in the same period last year[10] - The total cash and cash equivalents at the end of the period were HKD 25,546,000, a decrease from HKD 26,614,000 at the end of June 2023[10] - The financing activities resulted in a net cash outflow of HKD 1,713,000, compared to HKD 1,206,000 in the same period last year[10] - The financing costs increased to HKD 1,734,000 for the six months ended June 30, 2024, compared to HKD 1,242,000 for the same period in 2023[22] Investments and Assets Management - The group purchased property, plant, and equipment amounting to approximately HKD 23,000,000 for the six months ended June 30, 2024, down from HKD 79,000,000 for the same period in 2023[27] - The cash flow from investing activities showed a net outflow of HKD 23,000, a slight improvement from HKD 79,000 in the previous year[10] - The group’s fair value of financial assets at fair value through profit or loss was HKD 148,000 as of June 30, 2024, down from HKD 16,821,000 as of December 31, 2023[28] Corporate Governance and Compliance - The board did not recommend the payment of dividends for the six months ended June 30, 2024[4] - The company has not declared any dividends for the six months ending June 30, 2024, consistent with the previous period[40] - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for the six months ending June 30, 2024, ensuring compliance with applicable accounting standards[59] - The company has adhered to all principles and code provisions of the GEM Listing Rules, except for the separation of roles between the chairman and CEO[57] - The company has established a code of conduct for directors' securities transactions, confirming compliance throughout the year[58] - The company will make its public announcements available on the Hong Kong Stock Exchange website for at least seven days from the date of publication[60] Business Development and Strategy - The group is developing four new drugs for lymphoma, sarcoma, colorectal cancer, and drug-resistant tuberculosis, with one drug currently in phase II clinical trials[42] - As of June 30, 2024, the group had six models of imported National VI standard vehicles certified by the Ministry of Ecology and Environment in China[45] - The group plans to expand its offerings of new energy vehicles in response to declining demand for gasoline vehicles[45] - The company completed the sale of its wholly-owned subsidiary Sinofortune BVI for HKD 4,000,000 on July 9, 2024[41] - The group has entered into a conditional sale agreement to sell Sinofortune BVI for HKD 4.00 million plus the net asset value of its subsidiaries, aiming to divest non-profitable businesses[43] Employment and Human Resources - As of June 30, 2024, the group employed 46 staff members, with total employee costs approximately HKD 6.52 million, a decrease from HKD 7.05 million as of June 30, 2023[50]

Financial Performance - The Group recorded a loss of approximately HK$15.8 million for the year ended December 31, 2023, a reduction of approximately HK$14.9 million compared to a loss of approximately HK$30.7 million for the previous year[21]. - Total revenue for the year ended December 31, 2023, was approximately HK$150.0 million, a decrease of approximately HK$30.8 million from the previous year[22]. - Revenue from the trading of motor vehicles segment was approximately HK$148.3 million for the year ended December 31, 2023, down from approximately HK$180.4 million in 2022, representing a decrease of approximately HK$32.1 million[23]. - The Group recorded a gain on the disposal of financial assets at fair value through profit or loss, contributing to the reduction in loss for the year[21]. - The Group's financial performance reflects the challenges faced in the automotive sector and the need for strategic adjustments moving forward[21]. - The Group recorded total revenue of approximately HK$150.0 million for the year ended 31 December 2023, a decrease of approximately HK$30.8 million or 17.0% compared to HK$180.8 million in the previous year[35]. - The Group reported a loss of approximately HK$15.8 million for the year, a decrease of approximately 48.5% from a loss of approximately HK$30.7 million in the previous year[36]. - The trading of motor vehicles segment incurred a loss of approximately HK$5.9 million, compared to a loss of approximately HK$1.7 million in the previous year[52]. - The brokerage and securities margin financing service segment recorded total revenue of approximately HK$0.4 million, with losses increasing to approximately HK$3.7 million from HK$0.8 million last year[53]. Revenue Sources - Agency and service fees income from accessories sourcing was approximately HK$1.4 million for the year ended December 31, 2023, compared to approximately HK$8,000 in the previous year[23]. - Nearly 99.8% of the Group's revenue as of December 31, 2023, was derived from the trading of motor vehicles, agency services, and accessories sourcing in the PRC[72]. - The Group's revenue from trading of motor vehicles where it acts as principal was approximately HK$148.3 million for 2023[23]. - Revenue from the trading of motor vehicles decreased by approximately 17.0% to HK$149.7 million for the year, down from HK$180.4 million in the previous year[52]. Market Conditions - The decrease in revenue was primarily due to the impact of the COVID-19 pandemic, the ongoing Sino-US trade war, and changes in PRC government policy affecting the automotive industry[23]. - The Group's performance in the trading of motor vehicles has been significantly affected by market competition and a shift towards new energy vehicles[23]. - The automotive industry is expected to face intensified competition and a shrinking demand for petrol vehicles in the coming years[23]. Assets and Liabilities - The Group's current assets as of 31 December 2023 were approximately HK$220.3 million, an increase from approximately HK$201.3 million as of 31 December 2022[43]. - The liquidity ratio (current assets over current liabilities) decreased to 1.8 times from 2.2 times in the previous year[43]. - Total other borrowings increased to HK$30 million as of 31 December 2023, up from HK$25 million in the previous year[44]. - The gearing ratio as of 31 December 2023 was 106.8%, compared to 69.5% in the previous year[44]. - Equity attributable to the owners of the Company decreased by approximately HK$19.2 million or 14.0% to approximately HK$118.1 million as of 31 December 2023[45]. - The Group's cash and bank balances as of December 31, 2023, were approximately HK$24.8 million, down from approximately HK$38.9 million in the previous year[48]. - The Group's total borrowings amounted to approximately HK$30 million as of December 31, 2023, compared to HK$25 million in 2022, with a capital debt ratio of 106.8% versus 69.5% last year[49]. Corporate Governance - The company is committed to high standards of corporate governance, with a detailed report provided in the annual report[172]. - The board of directors consists of two executive and five non-executive directors, including four independent non-executive directors, ensuring a majority of independent oversight[197]. - The company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in GEM Listing Rules[170]. - The company has maintained a sufficient prescribed public float of its issued shares under the GEM Listing Rules as of the report date[182]. - The Directors have no other financial, business, family, or other material relationships with one another, ensuring independence[200]. Future Plans - The Company plans to introduce more new energy vehicles and expand its duty-free car business in Hainan province to enhance market performance in the coming year[74]. - The Group aims to expand its revenue sources by developing other businesses and seeking new opportunities[81]. - The Group has no concrete plans for other material investments or acquisitions for the year under review[70]. Shareholder Information - The Directors do not recommend the payment of a dividend for the year ended December 31, 2023, consistent with the previous year[111]. - The Company's reserves available for distribution were HK$Nil as of December 31, 2023[114]. - As of December 31, 2023, the company has a distributable reserve of zero HKD, indicating no available funds for dividend distribution to shareholders[121]. - Wang Jiawei, the Chairman and CEO, holds 2,123,395,935 shares, representing approximately 27.40% of the company's total shareholding[131]. - Lai Yuk Mui and Liu Runtong hold 2,780,127 shares (0.04%) and 2,646,000 shares (0.03%) respectively[131]. Legal Matters - Sinofortune Education applied for compulsory execution against Minqin Quantum for failing to repay refundable earnest money of RMB20,000,000 by 31 December 2020[144]. - Minqin Quantum has failed to pay an approximate sum of RMB49,500,000 in penalties and other fees by 31 December 2023 as adjudicated under the Judgement[160]. - Sinofortune Education has the right to apply for compulsory execution for the sale of 100% equity interest of Minqin Quantum due to non-fulfillment of obligations by the Five Defendants[161]. Management and Staff - As of December 31, 2023, the Group's total staff costs amounted to approximately HK$13.7 million, a slight decrease from HK$13.8 million in 2022, with a workforce of 46 employees[71]. - The newly appointed independent non-executive director, Lee Kwun Kwan, joined on May 8, 2023[199].

Financial Performance - The group recorded revenue of approximately HKD 150,039,000 for the year ended December 31, 2023, a decrease of 17% compared to HKD 180,815,000 in 2022[5] - The loss attributable to the owners of the company for the year was approximately HKD 15,777,000, down from HKD 30,660,000 in the previous year, representing a 48% improvement[5] - Basic loss per share was HKD 0.20, compared to HKD 0.40 in 2022, indicating a reduction in losses per share[5] - The total comprehensive loss for the year amounted to HKD 19,190,000, a significant decrease from HKD 41,215,000 in 2022, reflecting a 53% reduction[9] - The group reported a net loss before tax of HKD 15,950,000, down from HKD 30,854,000 in the previous year, showing a 48% improvement[9] - The group experienced a foreign exchange loss of HKD 3,394,000 related to overseas operations, compared to a loss of HKD 10,543,000 in 2022, marking a 68% improvement[9] - The company reported a loss attributable to owners of the company of HKD 15,777,000 for the year, compared to a loss of HKD 30,660,000 in the previous year[110] - The group reported a loss of approximately HKD 15.8 million for the year, a reduction of about 48.5% from a loss of HKD 30.7 million the previous year, primarily due to decreased revenue and increased financing costs[166] Assets and Liabilities - The group’s cash and cash equivalents in general accounts decreased to HKD 19,554,000 from HKD 32,986,000, a decline of 41%[14] - The group’s trade receivables decreased significantly to HKD 340,000 from HKD 2,509,000, indicating a reduction of 86%[14] - The group’s total liabilities increased to HKD 220,349,000 from HKD 201,288,000, reflecting a rise of 9%[14] - The net current assets decreased to HKD 96,936,000 in 2023 from HKD 109,362,000 in 2022, representing a decline of approximately 11.6%[30] - Total assets minus current liabilities decreased to HKD 120,866,000 in 2023 from HKD 140,878,000 in 2022, a decrease of about 14.3%[30] - The company's equity attributable to owners decreased to HKD 118,052,000 in 2023 from HKD 137,218,000 in 2022, reflecting a decline of approximately 13.9%[30] - The total equity of the company decreased to HKD 118,219,000 in 2023 from HKD 137,409,000 in 2022, a decrease of about 13.9%[30] - The total accounts receivable from automotive trading amounted to HKD 1,892,000 as of December 31, 2023, down from HKD 3,490,000 in 2022, with confirmed impairment losses of HKD 1,672,000 compared to HKD 1,296,000 in the previous year[126] - The company confirmed an impairment loss on trade receivables of approximately HKD 400,000 for the review year, compared to HKD 1,300,000 in the previous year[135] - The group’s total liabilities were approximately HKD 126.1 million, resulting in a capital debt ratio of 106.8%, up from 69.5% the previous year[152] Revenue Segments - The segment revenue from automotive trading was HKD 148,322 thousand, down from HKD 180,391 thousand in the previous year, reflecting a decline of approximately 18%[64] - The automotive trading and agency services segment recorded revenue of approximately HKD 149.7 million, a decrease of about 17.0% from HKD 180.4 million the previous year, with a loss of approximately HKD 5.9 million[155] - The automotive trading segment's revenue from the group's principal activities was approximately HKD 148.3 million, down from HKD 180.4 million the previous year, indicating intensified market competition[167] Investments and Development - The company entered into a sale agreement to sell a 50% investment in a limited partnership for RMB 15,000,000 due to project delays caused by COVID-19 and increased R&D costs[132] - As of December 31, 2023, one new drug has entered the second phase of clinical trials, while other new drugs remain in the research stage[132] - The group recorded a fair value loss of approximately HKD 3.7 million from investments in new drug development projects, an improvement from a loss of HKD 6.2 million the previous year[171] - The group is closely monitoring the new drug development market in China to diversify its business, particularly in the pharmaceutical sector[177] Employee and Operational Costs - The total employee cost for the year ended December 31, 2023, was approximately HKD 13,700,000, a slight decrease from HKD 13,800,000 in 2022[193] - The group has a total of 46 employees as of December 31, 2023, down from 50 in the previous year[193] Corporate Governance - The group has established an audit committee to oversee financial reporting and compliance, consisting of three independent non-executive directors[196] - The group has adopted a code of conduct for directors regarding securities trading, which meets or exceeds the standards set by GEM listing rules[182] Market Position and Risks - The company is listed on the GEM of the Hong Kong Stock Exchange, indicating its status as a growth-oriented enterprise[33] - GEM provides a market for small and medium-sized companies to go public, which carries higher investment risks compared to other companies listed on the exchange[200] - Investors should understand the potential risks associated with investing in these companies and make decisions after careful consideration[200]