CHUA NG'S CHINA INVESTMENTS LIMITED

(Incorporated in Bermuda with limited liability)

Stock Code: 298

INTERIM REPORT

2020

Contents

Corporate Information

2

Management Discussion and Analysis

6

Other Information

24

Condensed Consolidated Income Statement

28

Condensed Consolidated Statement of Comprehensive Income

29

Condensed Consolidated Balance Sheet

30

Condensed Consolidated Cash Flow Statement

32

Condensed Consolidated Statement of Changes in Equity

33

Notes to the Condensed Consolidated Interim Financial Information

34

- 1 -

CORPORATE INFORMATION

Honorary Chairman

Abraham Shek Lai Him, G.B.S., J.P.*

Directors

Albert Chuang Ka Pun, J.P. (Chairman)

Ann Li Mee Sum (Deputy Chairman)

Chong Ka Fung (Managing Director)

Sunny Pang Chun Kit

Geoffrey Chuang Ka Kam

Neville Charles Kotewall

Dominic Lai@

Abraham Shek Lai Him, G.B.S., J.P.*

David Chu Yu Lin, S.B.S., J.P.*

Andrew Fan Chun Wah, J.P.*

Eddy Li Sau Hung, G.B.S., J.P.*

Ng Kit Chong, M.H.*

@Non-Executive Director

*  Independent Non-Executive Directors

Audit Committee

Abraham Shek Lai Him, G.B.S., J.P.#

David Chu Yu Lin, S.B.S., J.P.

Andrew Fan Chun Wah, J.P.

Eddy Li Sau Hung, G.B.S., J.P.

Nomination Committee

Abraham Shek Lai Him, G.B.S., J.P.#

David Chu Yu Lin, S.B.S., J.P.

Andrew Fan Chun Wah, J.P.

Ng Kit Chong, M.H.

Remuneration Committee

Abraham Shek Lai Him, G.B.S., J.P.#

David Chu Yu Lin, S.B.S., J.P.

Andrew Fan Chun Wah, J.P.

Corporate Governance

Albert Chuang Ka Pun, J.P.#

  Committee

Ann Li Mee Sum

Chong Ka Fung

Company Secretary

Lee Wai Ching

Independent Auditor

PricewaterhouseCoopers

22nd Floor, Prince's Building

10 Chater Road

Central, Hong Kong

#Chairman of the relevant committee

- 2 -

CORPORATE INFORMATION (Continued)

Registrars

Bermuda:

MUFG Fund Services (Bermuda) Limited

4th floor North

Cedar House

41 Cedar Avenue

Hamilton HM 12

Bermuda

Hong Kong:

Tricor Progressive Limited

Level 54, Hopewell Centre

183 Queen's Road East

Hong Kong

Principal Bankers

The Hongkong and Shanghai Banking

  Corporation Limited

HSBC Bank (China) Company Limited

Hang Seng Bank Limited

Hang Seng Bank (China) Limited

Bank of China (Hong Kong) Limited

Nanyang Commercial Bank, Limited

Registered Office

Clarendon House, 2 Church Street

Hamilton HM 11, Bermuda

Principal Office

25th Floor, Alexandra House

  in Hong Kong

18 Chater Road, Central, Hong Kong

Telephone: (852) 2522 2013

Facsimile: (852) 2810 6213

Email address: chuangs@chuangs.com.hk

Website: www.chuangs-china.com

- 3 -

CORPORATE INFORMATION (Continued)

Offices in the

Beijing Office

People's Republic

Chuang's (Beijing) Investment Services Limited

of China

Room 105, Building 4

(the "PRC")

Yushuguan Xili, Xicheng District

Beijing, the PRC

Shenzhen Office

Room F, 23rd Floor, Noble Center

No. 1006, 3rd Fuzhong Road

Futian District

Shenzhen, the PRC

Guangzhou Office

Guangzhou Panyu Chuang's Real Estate

  • Development Company Limited No. 126, Liangang Road, Guangzhou Guangdong, the PRC

Dongguan Office

Dongguan Chuang's Investment Limited

1st Floor, Chuang's New City Administration   Building

No. 8 Chuang's Road, Dongguan Guangdong, the PRC

Anshan Office

Anshan Chuang's Property Development

  Company Limited

Anshan Chuang's Real Estate Development

  • Company Limited No. 738 Jian Guo Road Tie Dong Qu, Anshan Liaoning, the PRC

Chengdu Office

Chengdu Chuang's Investment Services Limited

Room 10A, 10th Floor

Tower 2, Block 13, Bi Yun Tian

No. 1 Bi Yun Road

Wu Hou Qu, Chengdu

Sichuan, the PRC

- 4 -

CORPORATE INFORMATION (Continued)

Offices in the PRC

Changsha Office

  (Continued)

Room 2205, Da Hua Building

No. 528 Lao Dong West Road

Yu Hua District, Changsha

Hunan, the PRC

Xiamen Office

Xiamen Mingjia Binhai Resort Company Limited

No. 382 Long Hu Shan Road

Siming District, Xiamen

Fujian, the PRC

Sihui Office

Fortune Wealth Memorial Park (Si Hui) Limited

Jiang Gu, Sihui

Guangdong, the PRC

Office in Malaysia

Suite 16.05, 16th Floor, Wisma Chuang

34 Jalan Sultan Ismail, 50250 Kuala Lumpur

Malaysia

Sales Office

The Esplanade Sales Office

  in Hong Kong

Basement floor

Chuang's London Plaza

No. 219 Nathan Road

Tsim Sha Tsui

Hong Kong

Sales Offices

Chuang's Le Papillon Sales Office

  in the PRC

No. 126, Liangang Road, Guangzhou

Guangdong, the PRC

Chuang's Mid-town Sales Office

No. 738 Jian Guo Road

Tie Dong Qu, Anshan

Liaoning, the PRC

Fortune Wealth Sales Office

Jiang Gu, Sihui

Guangdong, the PRC

Stock Code

298

- 5 -

Management Discussion AND ANALYSIS

The board of Directors (the "Board") of Chuang's China Investments Limited (the "Company") presents the interim report including the condensed consolidated interim financial information of the Company and its subsidiaries (collectively as the "Group") for the six months ended 30 September 2019. The condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated cash flow statement and the condensed consolidated statement of changes in equity for the six months ended 30 September 2019 and the condensed consolidated balance sheet as at 30 September 2019 along with the notes thereon, are set out on pages 28 to 50 of this report.

RESULTS REVIEW

Up to the date hereof, the Group achieved contracted sales of property development in Hong Kong not yet recognized as revenues amounted to about HK$1,617.5 million.

For the six months ended 30 September 2019, revenues of the Group was approximately HK$81.3 million (2018: HK$126.9 million), decreased by approximately 35.9% compared to that of the last corresponding period as a result of the decrease in sales of properties in the People's Republic of China (the "PRC"). During the period, revenues comprised sales of properties of HK$14.8 million (2018: HK$60.9 million), rental and management fee income of HK$32.4 million (2018: HK$36.3 million), sales of cemetery assets of HK$10.5 million (2018: HK$8.4 million), income from sales and trading business of HK$2.2 million (2018: Nil) and revenues from securities investment and trading of HK$21.4 million (2018: HK$21.3 million).

During the period under review, gross profit decreased by 16.8% to HK$63.0 million (2018: HK$75.7 million) mainly as a result of the decrease in revenues. The overall gross profit margin increased from 60% to 77% which was mainly due to the higher profit margin generated from sales of development properties business and the increase in proportion of revenues generated from securities investment and trading business which has a higher profit margin. The gross profit margin for each revenue segment is as follows:

9/2019

9/2018

Sales of development properties in the PRC

55%

32%

Rental and management fee income

83%

84%

Cemetery assets income

60%

54%

Revenues from securities investment and trading

100%

100%

- 6 -

Management Discussion AND ANALYSIS (Continued)

RESULTS REVIEW (Continued)

Other income and net loss was about HK$8.5 million (2018: HK$34.1 million), which mainly comprised interest income, dividend income and the fair value loss of bonds investments. The decrease during the period was principally due to the decrease in unrealized fair value loss of bonds investment as compared to that of the last corresponding period. A breakdown of other income and net loss is shown in note 7 on page 43 of this report.

The Group recorded a gain on change in fair value of investment properties of HK$96.3 million (2018: HK$234.9 million), mainly reflecting the development progress towards completion of the investment properties in Anshan (2018: investment properties in Anshan, Changan and the United Kingdom ("UK")).

During the period under review, the Group's selling and marketing expenses increased to HK$13.6 million (2018: HK$10.6 million) principally due to the marketing of The Esplanade in Tuen Mun, Hong Kong. Administrative and other operating expenses decreased by 39.2% to HK$58.4 million (2018: HK$96.1 million) as a result of general decrease in overhead of the Group as well as decrease in legal costs incurred during the current period. Finance costs increased to HK$38.5 million (2018: HK$20.9 million) as a result of the increase in bank borrowings as well as the higher interest rates prevailing during the period.

Share of loss of associated companies amounted to HK$1.1 million (2018: HK$1.1

million). Share of result of a joint venture was HK$8.4 million (2018: HK$11.6 million) which included a share of profit of the joint venture, whereas last period's result also included the change in fair value of its investment properties. Taxation decreased to HK$25.9 million (2018: HK$65.2 million) mainly due to the decrease in sales of properties in the PRC recognized by the Group as well as the decrease in deferred taxation liabilities arising from the change in fair value of investment properties.

Profit attributable to equity holders of the Company for the six months ended

30 September 2019 amounted to HK$21.3 million (2018: HK$94.3 million). Earnings per share was 0.91 HK cent (2018: 4.01 HK cents).

INTERIM DIVIDEND

In order to maintain a stronger cash position under the current uncertain business environment, the Board has resolved not to declare an interim dividend for the six months ended 30 September 2019 (2018: 1.5 HK cents).

- 7 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW

  1. Investment Properties
    The Group holds the following portfolio of investment properties in the PRC, the UK and Malaysia for steady recurring rental income.
    1. Chuang's Mid-town, Anshan, Liaoning (100% owned)
    Chuang's Mid-town consists of a 6-level commercial podium providing an aggregate gross floor area ("GFA") of about 29,600 sq. m.. Above the podium stands a twin tower (Block AB and C) with 27 and 33-storey respectively, offering a total GFA of about 62,700 sq. m.. Construction works have been completed and occupation will commence. The Group will submit the documentations to relevant authorities to obtain their respective approval.
    The Group had previously entered into an agreement to pre-lease the entire commercial podium to a furniture and home finishing retailer as anchor tenant for a period of 15 years. However, the tenant has recently unilaterally terminated this tenancy agreement. The tenant and its contractor issued legal proceedings against the Group for the refund of the prepaid rent of RMB1 million and compensation of the renovation costs of RMB1.14 million incurred by the contractor, together with interests. Based on the advices of the Group's PRC lawyers, the tenancy agreement is legally enforceable and that the unilateral termination by the tenant is a wrongful act. The Group will take appropriate steps to protect our legal rights. Moreover, the Group will explore more marketing ideas on promotion and leasing of the commercial podium as well as the units of the twin tower.
    As at 30 September 2019, this project was recorded in the Group's financial statements based on valuation of about HK$758.6 million. On a full completion basis, market value of this project amounted to approximately RMB763.3 million (equivalent to approximately HK$838.7 million), comprising RMB294.8 million for the commercial podium and RMB468.5 million for the twin tower. If aggregate rental income reaches RMB25 million per annum, it will generate a rental yield of 3.3% based on market value.

- 8 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Investment Properties (Continued)
    1. Hotel and resort villas in Xiamen, Fujian (59.5% owned)
      This hotel complex is developed by the Group, comprising a 6-storey hotel building with 100 guest-rooms (gross area of 9,780 sq. m.) and 30 villas (aggregate GFA of about 9,376 sq. m.) in Siming District, Xiamen. As at 30 September 2019, the properties were recorded based on valuation of RMB447.8 million (comprising RMB185.7 million for the hotel and RMB262.1 million for the 30 villas). The valuation attributable to the Group was about RMB266.4 million (equivalent to approximately HK$292.8 million), whereas the total investment costs of the Group are about HK$169 million. On the basis of the aggregate rental income of about RMB25.9 million per annum, the rental yield is approximately 5.8% based on valuation.
      The hotel building and 30 villas are fully leased. The hotel building together with 3 villas are leased to 廈門佲家鷺江酒店 and is operated as "鷺江•佲 家酒店" (Mega Lujiang Hotel). The remaining 27 villas are leased to independent third parties, of which 21 villas is operated as "亞朵S酒店" (Atour S Hotel). As affected by decrease in tourists from Taiwan to Xiamen and the tight operating cashflow in the start-up period, the tenant of these 21 villas had recently requested for reduction of rent in order to cope with its operation difficulties. The Group is assessing the tourism business environment in Xiamen and maintaining open communication with this tenant.
    2. 22 villas and commercial properties in Chuang's Le Papillon, Guangzhou, Guangdong (100% owned)
      Within the Group's property development in Guangzhou, the Group holds 22 villas (GFA of approximately 6,987 sq. m.). As at 30 September 2019, the 22 villas were recorded at valuation of RMB244.5 million (equivalent to approximately HK$268.7 million). The Group's strategy is to cash out on this investment and during the period, the Group has sold one villa by tender and will adopt a flexible approach to sell/or lease these villas.

- 9 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Investment Properties (Continued)
    1. 22 villas and commercial properties in Chuang's Le Papillon, Guangzhou, Guangdong (100% owned) (Continued)
      In addition, the Group also holds two commercial properties with total GFA of approximately 1,630 sq. m. in Guangzhou, of which one (with GFA of approximately 809 sq. m.) is leased to an independent third party and generates a steady rental income at rental yield of about 4.3% based on the valuation of RMB7.7 million (equivalent to approximately HK$8.5 million). Another commercial property (with GFA of approximately 821 sq. m.) was recorded at valuation of RMB10.3 million (equivalent to approximately HK$11.3 million) as at 30 September 2019.
    2. Commercial Property in Shatian, Dongguan, Guangdong (100% owned)
      The Group holds a 4-storey commercial building in Shatian, Dongguan, providing a total GFA of about 4,167 sq. m. for commercial, retail and office usage. As at 30 September 2019, valuation of the property was RMB36.4 million (equivalent to approximately HK$40.0 million). During the period under review, one storey unit was leased to an independent third party. Marketing is in progress for leasing of the remaining units of the property.
    3. Office Property in Fenchurch Street, London, UK (100% owned)
      10 Fenchurch Street is a freehold property in the City of London, the UK. It is an 11-storey commercial building providing 77,652 sq. ft. of office and retail usage. As at 30 September 2019, the property was recorded at valuation of GBP104.0 million (equivalent to approximately HK$1,002.6 million), representing an increase of about 31.6% over the Group's original investment cost.
      The property is fully leased to multi tenants with annual rental income of approximately GBP4.1 million (equivalent to approximately HK$39.3 million), representing a rental yield of approximately 4% based on valuation. Despite the overhang of the Brexit, investors are seeking for opportunities in the UK to acquire properties in prime location. The Group will adopt appropriate strategy to consider disposal of this property.

- 10 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Investment Properties (Continued)
    6. Wisma Chuang, Jalan Sultan Ismail, Kuala Lumpur, Malaysia (100% owned)
    Wisma Chuang is located within the prime city centre, situated right next to the landmark shopping complex, Pavilion KL, the heart of central business district and prestigious shopping area of Kuala Lumpur. It is built on a freehold land and is a 29-storey high rise office building having retail and office spaces of approximately 254,000 sq. ft. (on total net lettable area basis is approximately 195,000 sq. ft.) and 298 carparking spaces. As at 30 September 2019, the valuation of this property was MYR185.3 million (equivalent to approximately HK$347.0 million), which represents an average value of approximately MYR950 (equivalent to approximately HK$1,780) per sq. ft. of net lettable retail and office area.
    Wisma Chuang is leased to multi tenants with an occupancy rate of approximately 70%, and annual rental income is approximately MYR7.0 million (equivalent to approximately HK$13.6 million), representing a rental yield of approximately 3.8% based on valuation. During the period under review, the Group had carried out a lobby renovation work and certain building maintenance work with a view to improving the facilities for the tenants. Furthermore, the Group will continue to review the tenant mix of this property in order to further enhance its rental yield and occupancy rate.

Apart from the above investment properties, the Group will identify suitable opportunities to expand on investment properties portfolio to enhance the Group's recurring and steady income.

- 11 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Property Development
    1. The Esplanade, Yip Wong Road, Tuen Mun, New Territories, Hong Kong (100% owned)

This photograph was taken on 3 November 2019 and had been edited and processed with computerized imaging techniques.

The Esplanade has a site area of about 26,135 sq. ft. and has a developable GFA of 117,089 sq. ft. for residential purpose and 25,813 sq. ft. for commercial purpose with 47 carparking spaces. It is located along the riverside recreation park, overlooking Tuen Mun River. Along the promenade right in front of the site, it is within leisure walking distance to the nearby landmark commercial mall. Superstructure work has been substantially completed and interior works have commenced. The Group has recently submitted the application for occupation permit and it is expected that the occupation permit will be obtained within the coming two months. After this, the Group will apply for the certificate of compliance in the first quarter of 2020, and then the handover to end-buyers will be carried out around July 2020.

- 12 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Property Development (Continued)
    1. The Esplanade, Yip Wong Road, Tuen Mun, New Territories, Hong Kong (100% owned) (Continued)
      The Esplanade comprises a two-storey commercial podium, a clubhouse and a 20-storey residential building, totalling 371 residential flats, which provides 233 studio, 97 one-bedroom, 39 two-bedrooms and 2 three- bedrooms. The estimated total sales proceeds of the residential properties will amount to about HK$1,714.3 million.
      Pre-sales of the residential properties were progressing satisfactorily. Up- to-date, a total of 361 units have been presold at aggregate amount of about HK$1,617.5 million. These contracted sales will be recognized as revenues in the Group's financial statements when the properties are handed-over to end-buyers. Up to the date hereof, aggregate deposits amounting to HK$1,504.0 million have been received, and additional deposits of HK$29.5 million are expected to be received before the end of March 2020, whereas the remaining balance of HK$84.0 million will be received between April 2020 and completion of the sales. The Group intends to hold the commercial properties with total GFA of 25,813 sq. ft. for investment purpose.
    2. A Property Development Site, Hong Kong (100% owned)
      During the period under review, the Group had completed the acquisition of a property interests in Aberdeen at a consideration of about HK$455.0 million. The property has a site area of about 4,320 sq. ft. and has a developable GFA of about 39,767 sq. ft.. The Group is in the progress of negotiating with various tenants for the delivery of vacant possession of the property. Demolition plan is under preparation and is expected to be submitted to relevant authorities for approval soon.
    3. Chuang's Le Papillon, Guangzhou, Guangdong (100% owned)
      Chuang's Le Papillon is an integrated residential and commercial community and its development is implemented by phases. The Group has completed the development of Phase I and II, having a total GFA of approximately 260,800 sq. m.. It comprises 34 high-rise residential towers with a total of 2,077 flats and 22 villas, commercial properties, club houses and 1,497 carparking spaces.

- 13 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Property Development (Continued)
    1. Chuang's Le Papillon, Guangzhou, Guangdong (100% owned) (Continued)
      The residential flats of Phase I and II have largely been sold. During the period under review, two residential duplex and 73 carparks were sold, and a further 51 carparks were sold subsequent to 30 September 2019. Currently, there remains 448 carparks of about RMB50 million (equivalent to approximately HK$55 million) available for sale.
      For the remaining development (Phase III), the Group owns a land of over 92,000 sq. m. and its total plot ratio GFA was about 175,011 sq. m.. Land quota for development of about 119,648 sq. m. has been obtained. The Group will closely follow-up with the relevant PRC authorities for the land quota of the remaining 55,363 sq. m.. The Group will commence preparatory works on the development, while other options (including disposal) will be explored to accelerate capital return on investment in this project.
    2. Changan, Dongguan, Guangdong (100% owned)
      The Group owns a site area of about 20,000 sq. m. in city centre of Changan ( 長安), Dongguan, on which an industrial building with GFA of about 39,081 sq. m. was erected. The property is currently leased to an independent third party until 2023, at gross rental income of about RMB6.8 million per annum. As at 30 September 2019, the property was recorded at valuation of RMB223.4 million (equivalent to approximately HK$245.5 million). On the basis of the annual rental income, the rental yield is approximately 3.0% based on valuation.
      This site has been rezoned to "residential usage", and the location of this property in Changan is strategical to benefit from the Guangdong-HongKong-Macao Greater Bay Area. The Group will monitor the requisite procedures and strategize on the optimal timing for usage conversion application of the site. On the basis of 3.5 times plot ratio, the project will have a developable GFA of about 70,000 sq. m. and will be a prime land bank for future development. The Group will also consider disposal of the property when suitable opportunities arise.

- 14 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Property Development (Continued)
    1. Chuang's Plaza, Anshan, Liaoning (100% owned)
      Adjacent to Chuang's Midtown, the Group holds the second site located in the prime city centre of Tie Dong Qu ( 鐵東區). With a developable GFA of 390,000 sq. m., the site will provide a mega integrated development including office towers, retail, food and beverage and entertainment facilities together with residential blocks. The Group will identify suitable options, including disposal, to accelerate capital return on this investment.
    2. Changsha, Hunan (69% owned)
      The Group owns an effective 69% interests in a property development project in Changsha and the total investment costs was about HK$23.7 million (including shareholder's loan of about HK$3.4 million) as at 30 September 2019. The business license of the PRC project subsidiary has expired since 2012, and thus normal operation has halted. The Group has made keen efforts to reactivate the business license but was opposed by the minority shareholders. The Group then obtained a court ruling for the grant of winding up the PRC project company. The minority shareholder has lodged an appeal which has been heard by court. As regards the civil complaint by the minority shareholder of the PRC project company against the Company and an executive director of the Company, the case was dismissed by the court in June 2019 and the appeal by the minority shareholder was heard by the Supreme People's Court in September 2019. Based on the legal advices, the complaint is not supported by sufficient facts and/or legal basis, and that the Company has sufficient grounds to vigorously contest the complaint. Further announcement(s) about the legal proceeding will be made by the Company as and when appropriate.

- 15 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Property Development (Continued)
    1. Chengdu, Sichuan (51% owned)
      The Group holds a 51% development interest in a project in Wuhou District, Chengdu. As at 30 September 2019, the Group's total investment costs in this project was about RMB146.8 million (equivalent to approximately HK$161.3 million). The Group has launched legal proceedings since May 2016, seeking for court ruling to unwind this joint venture project. The court has conducted a number of hearings and it is expected that ruling will be made shortly. Further announcement(s) about the legal proceeding will be made by the Company as and when appropriate.
    2. Fortune Wealth, Sihui, Guangdong (86.0% owned)
      The Fortune Wealth Memorial Park operates a cemetery in Sihui with a site area of approximately 518 mu agreed by the local government authorities. As at 30 September 2019, the book cost of this project (including non- controlling interests) was about RMB920.0 million (equivalent to approximately HK$1,010.4 million).
      As at the date of report, land use rights of approximately 248.2 mu of land had been obtained. Fortune Wealth will liaise with the local authorities for land resumption in respect of the remaining 269.8 mu. For the area encompassing the land resumption, about 150 mu will be designated for road access and greenbelts. As for the balance of 119.8 mu, Fortune Wealth shall intensively follow-up with the local authorities to allocate land quota for the grant of land use rights.
      On the sale aspects, Fortune Wealth has full license for sale not only in the PRC, but also includes overseas Chinese as well as residents of Hong Kong, Macau and Taiwan. As at 30 September 2019, about 3,556 grave plots and 537 niches were available for sale. Fortune Wealth will review its sales and marketing strategy and will take more proactive steps in its brand building and customer services.

- 16 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Securities Investments
    1. Investments in CNT Group Limited ("CNT") and CPM Group Limited ("CPM")
    As at the date hereof, the Group owns about 19.45% interests in CNT and about 0.6% interests in CPM, both of them are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). CNT and its subsidiaries are principally engaged in the property business, and through its 75% owned subsidiary, CPM, is principally engaged in the manufacture and sale of paint products under its own brand names with focus on the PRC market.
    With reference to the respective closing share prices of CNT and CPM as at 30 September 2019 of HK$0.39 (31 March 2019: HK$0.32) and HK$0.455 (31 March 2019: HK$0.50), the aggregate book value of the Group's investments in CNT and CPM increased to about HK$147.3 million (31 March 2019: HK$119.9 million). The gain in book value is accounted for as "Reserve" in the financial statements.
    As announced by the Company on 12 February 2019, the Court has directed for the substantive trial of the derivative action against certain directors of CNT to be re-fixed to 9 November 2020 to 11 December 2020. Further announcement(s) about this derivative action will be made by the Company as and when appropriate.

- 17 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Securities Investments (Continued)
    2. Investments in high yield bonds
    The Group holds the following portfolio of high yield bonds, as at
    30 September 2019 with an annualized average yield of about 7%:

Percentage of

market value

Interest

Fair value

Face value

to the Group's

income for

gain/(loss)

of bonds held

Market value

total assets

the period

for the period

as at

as at

as at

ended

ended

30 September

30 September

30 September

30 September

30 September

Stock code

Bond issuer

2019

2019

2019

2019

2019

US$'000

HK$'000

HK$'000

HK$'000

754

Hopson Development Holdings

3,000

23,989

0.3%

-

236

Limited

(7.5%, due 2022)

1233

Times China Holdings Limited

2,000

15,823

0.2%

-

379

(5.75%, due 2022)

1638

Kaisa Group Holdings Limited

1.2%

(a)

7.25%, due 2020

4,000

31,518

1,136

(334)

(b)

7.875%, due 2021

2,000

15,357

617

(162)

(c)

8.5%, due 2022

4,400

32,134

1,465

(641)

(d)

11.25%, due 2022

3,000

24,345

-

(123)

1813

KWG Group Holdings Limited

0.6%

(a)

6%, due 2022

5,000

39,430

1,175

(149)

(b)

7.4%, due 2024

2,000

15,283

116

(187)

2007

Country Garden Holdings Company

14,000

113,619

1.3%

3,088

2,523

Limited

(5.625%, due 2026)

2777

Easy Tactic Limited,

1,000

7,562

0.1%

225

(207)

  a wholly-owned subsidiary of

Guangzhou R&F Properties

Co., Ltd.

(5.75%, due 2022)

- 18 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Securities Investments (Continued)
    2. Investments in high yield bonds (Continued)

Percentage of

market value

Interest

Fair value

Face value

to the Group's

income for

gain/(loss)

of bonds held

Market value

total assets

the period

for the period

as at

as at

as at

ended

ended

30 September

30 September

30 September

30 September

30 September

Stock code

Bond issuer

2019

2019

2019

2019

2019

US$'000

HK$'000

HK$'000

HK$'000

3333

China Evergrande Group

2.1%

(a)

7.5%, due 2023

10,743

71,574

3,156

(9,729)

(b)

8.25%, due 2022

11,600

81,724

3,753

(7,927)

(c)

8.75%, due 2025

4,714

30,717

1,616

(5,128)

3380

Logan Property Holdings Company

0.5%

Limited

(a)

6.875%, due 2021

4,000

33,015

1,079

244

(b)

8.75%, due 2020

2,000

16,761

686

(66)

3383

Agile Group Holdings Limited

10,000

77,928

0.9%

2,007

534

(5.125%, due 2022)

600606

Greenland Global Investment

4,300

33,905

0.4%

884

270

  Limited, a wholly-owned

  subsidiary of Greenland Holdings

Corporation Limited

(5.25%, due 2021)

Bonds disposed of during the period

-

-

-

411

-

87,757

664,684

7.6%

21,414

(20,467)

- 19 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Securities Investments (Continued)
    2. Investments in high yield bonds (Continued)

Brief description of principal business of the respective bond issuers is as follows:

Name of company

Principal business

Hopson Development

Property development, commercial

  Holdings Limited

properties investment, property

  management and infrastructure business

Times China Holdings

Property development, urban

  Limited

redevelopment business, property

  leasing and property management

Kaisa Group Holdings

Property development, property

  Limited

investment, property management,

  hotel and catering operations and

other businesses

KWG Group Holdings

Property development, property

  Limited

  investment, hotel operation and property

management

Country Garden Holdings

Property development and construction

  Company Limited

Guangzhou R&F Properties

Development and sale of properties,

  Co., Ltd.

  property investment, hotel operations

  and other property development related

services

China Evergrande Group

Property development, property

  investment, property management and

other businesses

- 20 -

Management Discussion AND ANALYSIS (Continued)

BUSINESS REVIEW (Continued)

  1. Securities Investments (Continued)

2. Investments in high yield bonds (Continued)

Name of company

Principal business

Logan Property Holdings

Property development, property

Company Limited

  investment, construction and decoration,

  and primary land development

Agile Group Holdings

Property development, property

Limited

  investment, hotel operation and property

management, and environmental

protection

Greenland Holdings

Property development, property

Corporation Limited

  investment, construction and hotel

operation

Unrealized fair value loss was recorded by the Group principally as a result of the drop in bond prices as at 30 September 2019 when compared to that of 31 March 2019 as the trade war tensions triggered risk-off sentiment that affect the price of high yield and long-dated bonds during the period. In the event that the Group holds the bonds up to their respective maturity dates and the bonds are being redeemed at par, the unrealized fair value loss would almost be unnecessary. In recent months, the uncertain political and economic environment had asserted downward pressure on the prices of the bonds held by the Group. These factors have therefore offset the high interest income generated during the period. The Group will closely monitor the performance of the bond portfolio in light of the monetary environment.

- 21 -

Management Discussion AND ANALYSIS (Continued)

FINANCIAL REVIEW

Net asset value

As at 30 September 2019, the net asset value attributable to equity holders of the Company amounted to HK$4,038.1 million. Net asset value per share amounted to HK$1.72, which is calculated based on the historical cost of the Group's land bank. During the period under review, the net asset value was adversely affected by the depreciation in Renminbi and British Pound Sterling resulting in a reduction of about HK$214.4 million in the exchange reserve.

Financial resources

As at 30 September 2019, the Group's cash, bank balances and investments held for trading amounted to HK$1,828.3 million (31 March 2019: HK$1,599.2 million). As at the same date, bank borrowings of the Group amounted to HK$2,066.2 million (31 March 2019: HK$2,081.3 million). Accordingly, the Group's net debt has decreased to about HK$237.9 million (31 March 2019: HK$482.1 million) and the net debt to equity ratio has decreased to 5.9% (31 March 2019: 11.3%), expressed as a percentage of bank borrowings net of cash, bank balances and investments held for trading over net assets attributable to equity holders of the Company.

Approximately 88.4% of the Group's cash, bank balances and investments held for trading were in Hong Kong dollar and United States dollar, 9.7% were in Renminbi and the balance of 1.9% were in other currencies. Approximately 70.8% of the Group's bank borrowings were in Hong Kong dollar and United States dollar, 22.7% were in British Pound Sterling, and the remaining of 6.5% were in Malaysian Ringgit.

Based on the agreed scheduled repayment dates in the loan agreements and ignoring the effect of any repayment on demand clause, approximately 14.7% of the Group's bank borrowings were repayable within the first year, 15.6% were repayable within the second year and the balance of 69.7% were repayable within the third to fifth years.

- 22 -

Management Discussion AND ANALYSIS (Continued)

FINANCIAL REVIEW (Continued)

Foreign exchange risk

As disclosed in the "Business Review" section of this report, besides Hong Kong, the Group also conducts its businesses in the PRC, Malaysia and the UK, with the income and the major cost items in those places being denominated in their local foreign currencies. Therefore, it is expected that any fluctuation of these foreign currencies' exchange rates would not have material effect on the operations of the Group. However, as the Group's consolidated financial statements are presented in Hong Kong dollar, the Group's financial position is subject to exchange exposure to these foreign currencies. The Group would closely monitor this risk exposure from time to time.

PROSPECTS

The global political and economic uncertainty continue to affect business prospects and confidence of investors. The PRC's economy is facing challenge to maintain its growth whilst Hong Kong is facing its unprecedented internal challenge, all these factors have caused a slow-down on the Group's business initiatives in the short term. However, the Group believes that the fundamental factors underpinning the long-term healthy growth in the PRC will remain intact. Going forward, the Guangdong-HongKong-Macao Greater Bay Area and Belt and Road Initiative will be the growth drivers for the PRC and create business opportunities for Hong Kong. To weather the challenges, the Group will exercise stringent control over its financial position by adhering to the "cash is king" principle, while closely monitoring business opportunities under this strategy.

- 23 -

OTHER INFORMATION

DIRECTORS' INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES

As at 30 September 2019, the interests and short positions of the Directors and chief executive of the Company in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (the "SFO")) which had been notified to the Company and The Stock Exchange of Hong Kong Limited (the "Stock Exchange") pursuant to the provisions of Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which any such Directors and chief executive of the Company would be taken or deemed to have under such provisions of the SFO) or which were required, pursuant to Section 352 of Part XV of the SFO, to be entered in the register referred to therein or which were required, pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code"), to be notified to the Company and the Stock Exchange were as follows:

(a) Interests in the Company

Number

Percentage of

Name of Director

of shares

Capacity

shareholding

Mr. Sunny Pang Chun Kit

930,000

Beneficial owner

0.04

Mr. Neville Charles Kotewall

1,255,004

Note

0.05

Note: Such interests arose by attribution through his spouse, Mrs. Candy Kotewall Chuang Ka Wai.

  1. Interests in Chuang's Consortium International Limited ("CCIL")

Number

Percentage of

Name of Director

of shares

Capacity

shareholding

Mr. Albert Chuang Ka Pun

1,299,678

Beneficial owner

0.08

  ("Mr. Albert Chuang")

Save as disclosed, during the period under review, none of the Directors and chief executive of the Company nor their spouses or children under 18 years of age were granted or had exercised any right to subscribe for any securities of the Company, its specified undertaking or any of its associated corporations.

Other than as disclosed herein, as at 30 September 2019, none of the Directors and chief executive of the Company had any interests or short positions in shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which had to be notified to the Company and the Stock Exchange pursuant to the provisions of Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they were taken or deemed to have under such provisions of the SFO) or which were required, pursuant to Section 352 of Part XV of the SFO, to be entered in the register referred to therein or which were required, pursuant to the Model Code, to be notified to the Company and the Stock Exchange.

- 24 -

OTHER INFORMATION (Continued)

SUBSTANTIAL SHAREHOLDERS

So far as is known to any Directors or chief executive of the Company and save as disclosed in the section headed "Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures" above, as at 30 September 2019, the interests and short positions of person in the shares and underlying shares of the Company which would fall to be disclosed to the Company pursuant to the provisions of Divisions 2 and 3 of Part XV of the SFO or which were required, pursuant to Section 336 of Part XV of the SFO, to be entered in the register referred to therein were as follows:

Number of

shares of

Percentage of

Name of Shareholder

the Company

Capacity

shareholding

Profit Stability Investments

1,426,074,923

Beneficial owner

60.71

  Limited ("PSI")

CCIL

1,426,074,923

Note 1

60.71

Evergain Holdings Limited

1,426,074,923

Note 1

60.71

  ("Evergain")

Mr. Alan Chuang Shaw Swee

1,426,074,923

Note 1

60.71

  ("Mr. Alan Chuang")

Mrs. Chong Ho Pik Yu

1,426,074,923

Note 2

60.71

Note 1: Interests in 1,426,074,923 shares owned by PSI. PSI is a wholly-owned subsidiary of CCIL. Mr. Alan Chuang is entitled to exercise or control the exercise of one third or more of the voting power in general meetings of CCIL through Evergain, a company beneficially owned by Mr. Alan Chuang. Mr. Albert Chuang, Mr. Chong Ka Fung and Mr. Geoffrey Chuang Ka Kam are directors of CCIL and Evergain, and Mr. Albert Chuang is also a director of PSI.

Note 2: Such interests arose by attribution through her spouse, Mr. Alan Chuang.

Save as disclosed above, as at 30 September 2019, there was no other person who was recorded in the register of the Company as having interests and short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO or which was required, pursuant to Section 336 of Part XV of the SFO, to be entered in the register referred to therein.

- 25 -

OTHER INFORMATION (Continued)

CORPORATE GOVERNANCE

Due to other commitments, three Independent Non-Executive Directors had not attended the 2019 annual general meeting of the Company as required by Code A.6.7 of the Corporate Governance Code (the "CG Code") of the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules"). Except as mentioned hereof, the Company has complied throughout the six months ended 30 September 2019 with the code provisions set out in the CG Code.

An audit committee has been established by the Company to review and supervise the Company's financial reporting process, risk management and internal controls and review the relationship with the auditor. The audit committee has held meetings in accordance with the relevant requirements. The Group's condensed consolidated interim financial information for the period ended 30 September 2019 have been reviewed by the audit committee of the Company and by the Company's independent auditor in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants. The current members of the audit committee are Mr. Abraham Shek Lai Him, Mr. David Chu Yu Lin, Mr. Andrew Fan Chun Wah and Dr. Eddy Li Sau Hung, the Independent Non-Executive Directors of the Company.

The Company has also adopted the Model Code contained in Appendix 10 of the Listing Rules. Having made specific enquiries of all Directors of the Company, the Company received confirmations from all Directors that they have complied with the required standard as set out in the Model Code.

UPDATE ON INFORMATION OF DIRECTORS PURSUANT TO RULE 13.51B(1) OF THE LISTING RULES

Changes in the information of Directors since the date of the 2019 annual report of the Company and up to the date of this report which are required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules are set out below:

  1. Mr. Albert Chuang had been appointed as the chairman and managing director of CCIL with effect from 15 October 2019, the shares of which are listed on the Stock Exchange.
  2. Mr. Chong Ka Fung had been re-designated as the deputy managing director of CCIL with effect from 15 October 2019, the shares of which are listed on the Stock Exchange.

- 26 -

OTHER INFORMATION (Continued)

DEALING IN THE COMPANY'S SECURITIES

Neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the listed securities of the Company during the six months ended 30 September 2019 and up to the date of this report.

SHARE OPTION SCHEME

On 31 August 2012, a share option scheme (the "Share Option Scheme") was adopted by the Company. The purpose of the Share Option Scheme is to recognize the contribution of the eligible persons as defined in the scheme including, inter alia, any Directors, employees or business consultants of the Group (the "Eligible Persons"), to the growth of the Group and to further motivate the Eligible Persons to continue to contribute to the Group's long-term prosperity. No options have been granted under the Share Option Scheme since its adoption.

STAFF

The Group puts emphasis on training and cultivating elite talent. We are committed to providing a dynamic and enthusiastic working atmosphere and increase hiring talents of all fields. As at 30 September 2019, the Group employed 157 staff. The Group provides its staff with other benefits including discretionary bonus, contributory provident fund, share options and medical insurance. Staff training is also provided as and when required.

By order of the Board of

Chuang's China Investments Limited

Albert Chuang Ka Pun

Chairman

Hong Kong, 26 November 2019

- 27 -

CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)

For the six months ended 30 September 2019

2019

2018

Note

HK$'000

HK$'000

Revenues

5

81,269

126,864

Cost of sales

(18,303)

(51,134)

Gross profit

62,966

75,730

Other income and net loss

7

(8,540)

(34,129)

Selling and marketing expenses

(13,561)

(10,636)

Administrative and other operating expenses

(58,418)

(96,128)

Change in fair value of investment properties

96,277

234,858

Operating profit

8

78,724

169,695

Finance costs

9

(38,456)

(20,863)

Share of results of associated companies

(1,134)

(1,075)

Share of result of a joint venture

10

8,386

11,555

Profit before taxation

47,520

159,312

Taxation

11

(25,868)

(65,247)

Profit for the period

21,652

94,065

Attributable to:

Equity holders

21,320

94,266

Non-controlling interests

332

(201)

21,652

94,065

HK cent

HK cents

Earnings per share (basic and diluted)

13

0.91

4.01

- 28 -

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

For the six months ended 30 September 2019

2019 2018

HK$'000 HK$'000

Profit for the period

21,652

94,065

Other comprehensive income:

  • Items that may be reclassified subsequently to
  • profit and loss:

Net exchange differences

(202,334)

(262,609)

  Share of exchange reserve of a joint venture

(14,041)

(17,918)

  Total other comprehensive loss that may be

reclassified subsequently to profit and loss

(216,375)

(280,527)

  • Item that may not be reclassified subsequently to
  • profit and loss:
  • Change in fair value of financial assets at

  fair value through other comprehensive

  income

25,291

(16,603)

  Total other comprehensive loss for the period

(191,084)

(297,130)

Total comprehensive loss for the period

(169,432)

(203,065)

Total comprehensive loss attributable to:

Equity holders

(167,788)

(191,203)

Non-controlling interests

(1,644)

(11,862)

(169,432)

(203,065)

- 29 -

CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

As at 30 September 2019

30 September

31 March

2019

2019

Note

HK$'000

HK$'000

Non-current assets

36,426

  Property, plant and equipment

44,681

Investment properties

2,705,757

2,733,601

Right-of-use assets

3,659

-

Land use rights

-

1,721

Properties for/under development

138,250

146,494

Cemetery assets

280,399

299,418

Associated companies

14,635

15,723

Joint venture

341,704

366,587

  Financial assets at fair value through

158,287

other comprehensive income

131,570

  Loans and receivables and other deposits

203,195

207,690

Deferred taxation assets

1,554

-

3,883,866

3,947,485

Current assets

1,981,246

Properties for sale

1,287,349

Cemetery assets

730,044

782,306

Inventories

49,795

51,865

Debtors and prepayments

15

233,588

83,318

  Financial assets at fair value through

736,213

profit or loss

679,694

  Cash and bank balances

1,092,082

919,502

4,822,968

3,804,034

Current liabilities

271,166

Creditors and accruals

16

210,625

Sales deposits received

1,468,785

343,153

Short-term bank borrowings

17

180,786

216,955

  Current portion of long-term bank

398,525

borrowings

17

878,203

Taxation payable

208,430

219,656

2,527,692

1,868,592

Net current assets

2,295,276

1,935,442

Total assets less current liabilities

6,179,142

5,882,927

- 30 -

CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Continued)

As at 30 September 2019

30 September

31 March

2019

2019

Note

HK$'000

HK$'000

Equity

117,442

Share capital

18

117,442

Reserves

3,920,666

4,135,431

Shareholders' funds

4,038,108

4,252,873

Non-controlling interests

112,446

114,090

Total equity

4,150,554

4,366,963

Non-current liabilities

1,486,854

Long-term bank borrowings

17

986,178

Deferred taxation liabilities

464,370

468,181

  Loans and payables with non-controlling

42,771

  interests

24,879

Other non-current liabilities

34,593

36,726

2,028,588

1,515,964

6,179,142

5,882,927

- 31 -

CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

For the six months ended 30 September 2019

2019

2018

HK$'000

HK$'000

Net cash from/(used in) operating activities

158,246

(153,386)

Cash flows from investing activities

(28,158)

  Additions to investment properties

(28,154)

  Decrease in amount due from a joint venture

16,153

-

Interest income received

4,674

1,590

  Dividend income received from financial assets

3,647

  at fair value through other comprehensive income

4,941

  Decrease in bank deposits maturing more than

13

  three months from date of placement

1,951

Others, net

(1,834)

(58)

Net cash used in investing activities

(5,505)

(19,730)

Cash flows from financing activities

645,823

New bank borrowings

786,300

  Repayment of bank borrowings

(628,314)

(255,277)

  Principal elements of lease liabilities

(1,787)

-

  Loans from non-controlling interests

17,892

2,195

Net cash from financing activities

33,614

533,218

Net increase in cash and cash equivalents

186,355

360,102

Cash and cash equivalents at the beginning

919,000

of the period

520,803

Exchange difference on cash and cash equivalents

(13,762)

(16,540)

Cash and cash equivalents at the end of the period

1,091,593

864,365

Analysis of cash and cash equivalents

1,092,082

Cash and bank balances

864,859

Bank deposits maturing more than three months

(489)

  from date of placement

(494)

Cash and cash equivalents

1,091,593

864,365

- 32 -

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

For the six months ended 30 September 2019

At 1 April 2019

Profit for the period

Other comprehensive income: Net exchange differences Share of exchange reserve of

  • a joint venture Change in fair value of
  • financial assets at fair value
  • through other
  • comprehensive income

Total comprehensive (loss)/

  • income for the period Transactions with owners: Dividends

At 30 September 2019

At 1 April 2018

Profit/(loss) for the period Other comprehensive income: Net exchange differences Share of exchange reserve of

  • a joint venture Change in fair value of
  • financial assets at fair value
  • through other
  • comprehensive income

Total comprehensive (loss)/

  • income for the period Transactions with owners: Dividends
    Increase of interest in a
  • subsidiary

At 30 September 2018

Attributable to equity holders of the Company

Non-

Share

Other

Retained

Shareholders'

controlling

capital

reserves

profits

funds

interests

Total

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

117,442

2,345,107

1,790,324

4,252,873

114,090

4,366,963

-

-

21,320

21,320

332

21,652

-

(202,464)

-

(202,464)

130

(202,334)

-

(11,935)

-

(11,935)

(2,106)

(14,041)

-

25,291

-

25,291

-

25,291

-

(189,108)

21,320

(167,788)

(1,644)

(169,432)

-

-

(46,977)

(46,977)

-

(46,977)

117,442

2,155,999

1,764,667

4,038,108

112,446

4,150,554

117,442

2,579,850

1,705,003

4,402,295

121,127

4,523,422

-

-

94,266

94,266

(201)

94,065

-

(253,636)

-

(253,636)

(8,973)

(262,609)

-

(15,230)

-

(15,230)

(2,688)

(17,918)

-

(16,603)

-

(16,603)

-

(16,603)

-

(285,469)

94,266

(191,203)

(11,862)

(203,065)

-

-

(46,977)

(46,977)

-

(46,977)

-

-

(311)

(311)

311

-

117,442

2,294,381

1,751,981

4,163,804

109,576

4,273,380

- 33 -

Notes to the Condensed Consolidated Interim Financial Information

  1. GENERAL INFORMATION
    Chuang's China Investments Limited (the "Company") is a limited liability company incorporated in Bermuda and listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda and its principal place of business in Hong Kong is 25th Floor, Alexandra House, 18 Chater Road, Central.
    As at 30 September 2019, the Company was a 60.7% owned subsidiary of Profit Stability Investments Limited, a company incorporated in the British Virgin Islands and a wholly- owned subsidiary of Chuang's Consortium International Limited ("CCIL"), a limited liability company incorporated in Bermuda and listed on the Main Board of the Stock Exchange. The board of Directors (the "Board") regard CCIL as the ultimate holding company.
    The principal activities of the Company and its subsidiaries (collectively as the "Group") are property development, investment and trading, hotel operation and management, development and operation of cemetery, sales of goods and merchandises (including art pieces), and securities investment and trading.
  2. BASIS OF PREPARATION
    The condensed consolidated interim financial information has been prepared under the historical cost convention, as modified by the revaluation of investment properties, financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss at fair value, and in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants. The condensed consolidated interim financial information should be read in conjunction with the consolidated annual financial statements of the Group for the year ended 31 March 2019 which have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs").
    The accounting policies and methods of computation used in the preparation of the condensed consolidated interim financial information are consistent with those used in the consolidated annual financial statements of the Group for the year ended 31 March 2019, except as stated below.

- 34 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

2. BASIS OF PREPARATION (Continued)

  1. Effect of adopting new standard, amendments to standards and new interpretation

For the six months ended 30 September 2019, the Group adopted the following new standard, amendments to standards and new interpretation that are effective for the accounting periods beginning on or after 1 April 2019 and relevant to the operations of the Group:

HKAS 19 (Amendment)

Employee Benefits - Plan Amendment,

  Curtailment or Settlement

HKAS 28 (Amendment)

Investments in Associates and Joint Ventures

HKFRS 9 (Amendment)

Prepayment Features with Negative Compensation

HKFRS 16

Leases

HKFRSs (Amendments)

Annual Improvements to HKFRSs 2015-2017

  Cycle

HK(IFRIC)-Int 23

Uncertainty over Income Tax Treatments

The impact of the adoption of HKFRS 16 is disclosed in Note 2(iii) below. The other amendments to standards and new interpretation did not have significant impact on the Group's results and financial position nor any substantial changes in the Group's accounting policies and presentation of the condensed consolidated interim financial information.

  1. New standard and amendments to standards that are not yet effective

The following new standard and amendments to standards have been published which are relevant to the Group's operations and are mandatory for the Group's accounting periods beginning on or after 1 April 2020, but have not yet been early adopted by the Group:

HKAS 1 and HKAS 8

Definition of Material

  (Amendments)

  (effective from 1 January 2020)

HKFRS 3 (Amendment)

Definition of a Business

  (effective from 1 January 2020)

HKFRS 10 and HKAS 28

Sale or Contribution of Assets between an

  (Amendments)

  Investor and its Associate or Joint Venture

  (no mandatory effective date)

HKFRS 17

Insurance Contracts

  (effective from 1 January 2021)

Conceptual Framework for

Revised Conceptual Framework for Financial

  Financial Reporting 2018

  Reporting (effective from 1 January 2020)

- 35 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

2. BASIS OF PREPARATION (Continued)

  1. New standard and amendments to standards that are not yet effective (Continued)
    The Group will adopt the above new standard and amendments to standards as and when they become effective. The Group has commenced a preliminary assessment of the likely impact of adopting the above new standard and amendments to standards, and expects the adoption will have no significant impact on the Group's results and financial position or any substantial changes in the Group's accounting policies and presentation of the condensed consolidated interim financial information. The Group will continue to assess the impact in more detail.
  2. Changes in accounting policies
    HKFRS 16 replaces HKAS 17 "Leases" and related interpretations where the distinction between operating and finance leases is removed for lessee accounting, and is replaced by a model where a right-of-use asset and a corresponding liability have to be recognized on the balance sheet for all leases by lessees. The standard does not significantly change the accounting of lessors.
    The Group has adopted HKFRS 16 from 1 April 2019, but has not restated the comparatives for the prior years, as permitted under the specific transitional provisions in the standard. The reclassifications and adjustments arising from the new leasing rules are therefore recognized in the opening condensed consolidated balance sheet on
    1 April 2019 and summarized as follows:

As at 1 April 2019

As previously

Effects of

stated

the adoption

As restated

HK$'000

HK$'000

HK$'000

Right-of-use assets

-

5,566

5,566

Land use rights

1,721

(1,721)

-

Other non-current liabilities

36,726

326

37,052

Creditors and accruals

210,625

3,519

214,144

From 1 April 2019, leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group.

On adoption of HKFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of HKAS 17 'Leases'. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of 1 April 2019, and were included in "Other non-current liabilities" and "Creditors and accruals".

- 36 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

2. BASIS OF PREPARATION (Continued)

  1. Changes in accounting policies (Continued)
    Lease payments include fixed payments less any lease incentives receivable. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to condensed consolidated income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
    As a result, the total obligations under the operating lease commitments of HK$4,460,000 disclosed at 31 March 2019, adjusted by the effect of discounting and exclusion of short-term leases and low-value asset leases, amounted to lease liabilities of HK$3,845,000 recognized on 1 April 2019. The amount was split into current and non-current portions of HK$3,519,000 and HK$326,000 respectively.
    The associated right-of-use assets were measured at the amount equal to the initial measurement of lease liabilities on a present value basis, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the consolidated balance sheet as at 31 March 2019. In addition, land use rights were reclassified to right-of-use assets. Together with this reclassification, right-of-use assets of HK$5,566,000 were recognized in the condensed consolidated balance sheet as of 1 April 2019. The right-of-use assets are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
    Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as lease expenses in the condensed consolidated income statement.
    Cash payments for the settlement of lease liabilities are reclassified from operating activities to financing activities according to HKFRS 16 in the condensed consolidated cash flow statement. In applying HKFRS 16 for the first time, the Group has accounted for operating leases with a remaining lease term of less than 12 months as at 1 April 2019 as short-term leases as permitted under the practical expedients in the standard.
    There is no material impact to the Group's profit or loss due to the adoption of this new accounting standard.

- 37 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

3. FINANCIAL RISK MANAGEMENT

  1. Financial risk factors
    The activities of the Group expose it to a variety of financial risks including credit risk, liquidity risk, cash flow and fair value interest rate risk, foreign exchange risk and price risk. The condensed consolidated interim financial information does not include all financial risk management information and disclosures required in the consolidated annual financial statements and it should be read in conjunction with the consolidated annual financial statements of the Group for the year ended 31 March 2019. There has been no material change in the Group's financial risk management policies since the year ended 31 March 2019.
  2. Liquidity risk
    Compared to the year ended 31 March 2019, there was no material change in the contractual undiscounted cash outflows for financial liabilities.
  3. Fair value estimation
    The fair values of financial instruments traded in active markets are based on quoted market prices at the balance sheet date, whereas the fair values of other financial assets and financial liabilities are determined in accordance with the generally accepted pricing models such as market approach and discounted cash flow analysis.
    The Directors considered that the carrying values of financial assets and financial liabilities recorded at amortized cost in the condensed consolidated interim financial information approximate their fair values.
    During the six months ended 30 September 2019, there was no significant change in the business or economic circumstances that affect the fair values of the Group's financial assets and financial liabilities, no transfers of financial assets or financial liabilities between the levels in the hierarchy, and no reclassifications of financial assets.

- 38 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

  1. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
    Estimates and judgments used in preparing the condensed consolidated interim financial information are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions applied in the preparation of the condensed consolidated interim financial information are consistent with those used in the consolidated annual financial statements of the Group for the year ended 31 March 2019.
  2. REVENUES
    Revenues recognized during the period are as follows:

2019

2018

HK$'000

HK$'000

Sales of properties

14,810

60,961

Rental income and management fees

32,419

36,288

Sales of cemetery assets

10,456

8,355

Sales of goods and merchandises

2,170

-

Interest income from financial assets at fair value

  through profit or loss

21,414

21,260

81,269

126,864

6. SEGMENT INFORMATION

  1. Segment information by business lines
    The chief operating decision maker (the "CODM") has been identified as the Executive Directors and senior management. The CODM reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports.
    The CODM considers the business from a business perspective, including property development, investment and trading, development and operation of cemetery, sales of goods and merchandises, securities investment and trading and others (including hotel operation and management). The CODM assesses the performance of the operating segments based on the measure of segment result.

- 39 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

6. SEGMENT INFORMATION (Continued)

  1. Segment information by business lines (Continued) The segment information by business lines is as follows:

Property

development,

Sales of

Securities

investment

goods and

investment

Others and

and trading

Cemetery

merchandises

and trading

corporate

Total

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

2019

Revenues from contracts with

customers:

14,810

10,456

2,170

-

-

27,436

  - Recognized at a point in time

Revenues from other sources

32,419

-

-

21,414

-

53,833

Revenues

47,229

10,456

2,170

21,414

-

81,269

Other income and net gain/(loss)

3,930

25

-

(20,815)

8,320

(8,540)

Operating profit/(loss)

108,018

3,836

(84)

577

(33,623)

78,724

Finance costs

(37,716)

-

-

(740)

-

(38,456)

Share of results of associated

-

-

-

-

(1,134)

(1,134)

companies

Share of result of a joint venture

8,386

-

-

-

-

8,386

Profit/(loss) before taxation

78,688

3,836

(84)

(163)

(34,757)

47,520

Taxation (charge)/credit

(26,580)

712

-

-

-

(25,868)

Profit/(loss) for the period

52,108

4,548

(84)

(163)

(34,757)

21,652

As at 30 September 2019

5,570,587

1,051,604

50,332

740,565

937,407

8,350,495

Segment assets

Associated companies

-

-

-

-

14,635

14,635

Joint venture

341,704

-

-

-

-

341,704

Total assets

5,912,291

1,051,604

50,332

740,565

952,042

8,706,834

Total liabilities

4,155,608

257,560

50

81,030

62,032

4,556,280

2019

Other segment items are as follows:

750,523

49

-

-

1,468

752,040

Capital expenditure

Depreciation of property, plant and

4,674

386

52

-

4,566

9,678

equipment

Depreciation of right-of-use assets

1,733

47

-

-

-

1,780

Provision for impairment of

610

-

-

-

-

610

trade debtors

Change in fair value of investment

(96,277)

-

-

-

-

(96,277)

properties

Reversal of provision for

(2,813)

-

-

-

-

(2,813)

  impairment of other deposits

- 40 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

6. SEGMENT INFORMATION (Continued)

  1. Segment information by business lines (Continued)

Property

development,

Sales of

Securities

investment

goods and

investment

Others and

and trading

Cemetery

merchandises

and trading

corporate

Total

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

2018

Revenues from contracts with

customers:

  - Recognized at a point in time

60,961

8,355

-

-

-

69,316

Revenues from other sources

36,288

-

-

21,260

-

57,548

Revenues

97,249

8,355

-

21,260

-

126,864

Other income and net gain/(loss)

167

53

60

(40,713)

6,304

(34,129)

Operating profit/(loss)

259,937

(1,901)

85

(19,471)

(68,955)

169,695

Finance costs

(20,863)

-

-

-

-

(20,863)

Share of results of associated

companies

-

-

-

-

(1,075)

(1,075)

Share of result of a joint venture

11,555

-

-

-

-

11,555

Profit/(loss) before taxation

250,629

(1,901)

85

(19,471)

(70,030)

159,312

Taxation (charge)/credit

(65,909)

662

-

-

-

(65,247)

Profit/(loss) for the period

184,720

(1,239)

85

(19,471)

(70,030)

94,065

As at 31 March 2019

Segment assets

4,823,700

1,117,226

52,476

679,987

695,820

7,369,209

Associated companies

-

-

-

-

15,723

15,723

Joint venture

366,587

-

-

-

-

366,587

Total assets

5,190,287

1,117,226

52,476

679,987

711,543

7,751,519

Total liabilities

3,072,899

276,235

50

17,134

18,238

3,384,556

2018

Other segment items are as follows:

Capital expenditure

100,116

16,904

-

-

-

117,020

Depreciation of property, plant and

equipment

234

406

52

-

5,105

5,797

Amortization of land use rights

-

30

-

-

-

30

Change in fair value of

investment properties

(234,858)

-

-

-

-

(234,858)

- 41 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

6. SEGMENT INFORMATION (Continued)

  1. Geographical segment information

The business of the Group operates in different geographical areas. Revenues are presented by the countries where the customers are located. Non-current assets, total assets and capital expenditure are presented by the countries where the assets are located. The segment information by geographical area is as follows:

Revenues

Capital expenditure

2019

2018

2019

2018

HK$'000

HK$'000

HK$'000

HK$'000

Hong Kong

24,520

21,260

688,784

69,292

The People's Republic

  of China (the "PRC")

29,607

74,388

62,622

47,632

United Kingdom

18,075

22,347

-

-

Malaysia

9,067

8,869

634

96

81,269

126,864

752,040

117,020

Non-current assets (Note)

Total assets

30 September

31 March

30 September

31 March

2019

2019

2019

2019

HK$'000

HK$'000

HK$'000

HK$'000

Hong Kong

40,341

46,820

3,541,380

2,428,642

The PRC

2,129,627

2,155,425

3,768,191

3,868,095

United Kingdom

1,002,560

1,063,920

1,012,342

1,075,077

Malaysia

348,302

342,060

351,253

345,173

Other countries

-

-

33,668

34,532

3,520,830

3,608,225

8,706,834

7,751,519

Note: Non-current assets in geographical segment represent non-current assets other than financial assets at fair value through other comprehensive income, loans and receivables and other deposits, and deferred taxation assets.

- 42 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

7. OTHER INCOME AND NET LOSS

2019

2018

HK$'000

HK$'000

Interest income from bank deposits

4,895

1,562

Dividend income from financial assets at fair value through

other comprehensive income

3,647

4,941

Net realized loss of financial assets at fair value through

profit or loss

(487)

(1,556)

Net fair value loss of financial assets at fair value through

profit or loss

(20,605)

(39,157)

Forfeited deposits from sales of properties

1,266

-

Gain on disposal of investment properties

1,309

-

Net gain on disposal of property, plant and equipment

78

3

Net exchange gain/(loss)

329

(18)

Sundries

1,028

96

(8,540)

(34,129)

8. OPERATING PROFIT

2019

2018

HK$'000

HK$'000

Operating profit is stated after crediting:

Reversal of provision for impairment of other deposits

2,813

-

and after charging:

Amortization of land use rights

-

30

Cost of properties sold

6,659

41,284

Cost of cemetery assets sold

4,182

3,868

Cost of inventories sold

2,070

-

Depreciation of property, plant and equipment

9,678

5,797

Depreciation of right-of-use assets

1,780

-

Provision for impairment of trade debtors

610

-

Staff costs, including Directors' emoluments

Wages and salaries

23,995

30,295

Retirement benefit costs

1,293

1,629

- 43 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

9. FINANCE COSTS

2019

2018

HK$'000

HK$'000

Interest expenses of

Bank borrowings

45,625

28,619

Lease liabilities

51

-

45,676

28,619

Amounts capitalized into

Investment properties

-

(2,410)

Properties under development

(7,220)

(5,346)

(7,220)

(7,756)

38,456

20,863

The capitalization rate applied to funds borrowed for the development of properties is 2.38% (2018: ranged from 4.70% to 8.08%) per annum.

10. SHARE OF RESULT OF A JOINT VENTURE

Share of result of a joint venture of HK$8,386,000 (2018: HK$11,555,000) in the condensed consolidated income statement included the share of result of the joint venture for the period ended 30 September 2019 (2018: same, and also included the share of fair value gain of the investment properties (net of the related deferred taxation) of joint venture of HK$3,880,000). Rental income received by the joint venture from the non-wholly-owned subsidiary of the joint venture partner for the period ended 30 September 2019 amounted to approximately HK$6,264,000 (2018: HK$6,345,000) and was included in the "Share of result of a joint venture" in the condensed consolidated income statement.

- 44 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

11. TAXATION

2019

2018

HK$'000

HK$'000

Current taxation

  PRC corporate income tax

1,044

4,178

  PRC land appreciation tax

4,307

16,621

  Overseas profits tax

193

200

Deferred taxation

20,324

44,248

25,868

65,247

No provision for Hong Kong profits tax has been made as the Group has no estimated assessable profits for the period (2018: Nil). PRC corporate income tax and overseas profits tax have been calculated on the estimated assessable profits for the period at the rates of taxation prevailing in the PRC and the countries in which the Group operates respectively. PRC land appreciation tax is levied at progressive rates ranging from 30% to 60% on the appreciation of land value, being the proceeds of sales of properties less deductible expenditures including costs of land and development expenditures.

There is no taxation charge/credit of associated companies for the six months ended 30 September 2019 (2018: Nil). In 2018, share of deferred taxation charge of the joint venture for the six months ended 30 September 2018 of HK$1,293,000 was included in the condensed consolidated income statement as "Share of result of a joint venture".

- 45 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

12. INTERIM DIVIDEND

2019 2018

HK$'000 HK$'000

Interim dividend of 1.5 HK cents per share for 2018

-

35,233

The Board has resolved not to declare an interim dividend for the six months ended

  1. 30 September 2019 (2018: 1.5 HK cents per share amounting to HK$35,233,000).

  2. EARNINGS PER SHARE
    The calculation of the earnings per share is based on the profit attributable to equity holders of HK$21,320,000 (2018: HK$94,266,000) and the weighted average number of 2,348,835,316 (2018: 2,348,835,316) shares in issue during the period.
    The diluted earnings per share is equal to the basic earnings per share since there are no dilutive potential shares in issue during the periods.
  3. CAPITAL EXPENDITURE
    For the six months ended 30 September 2019, the Group incurred acquisition and development costs on property, plant and equipment of HK$2,274,000 (2018: HK$61,000), and property projects, properties, investment properties and cemetery assets of HK$749,766,000 (2018: HK$116,959,000).

- 46 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

15. DEBTORS AND PREPAYMENTS

Receivables from sales of properties and cemetery assets are settled in accordance with the terms of respective contracts. Rental income and management fees are received in advance. Credit terms of sales of goods and merchandises mainly ranged from 30 days to 90 days.

Trade debtors of the Group mainly represent the receivables from sales of properties and cemetery assets as well as rental income and management fees from investment properties. The aging analysis of the trade debtors of the Group is as follows:

30 September

31 March

2019

2019

HK$'000

HK$'000

Below 30 days

3,081

2,863

31 to 60 days

115

121

61 to 90 days

107

143

Over 90 days

8,473

9,014

11,776

12,141

Debtors and prepayments include net deposits of HK$93,974,000 (31 March 2019: HK$10,181,000) for acquisition of property projects, properties and right-of-use assets after the accumulated provision for impairment of HK $ 8,459,000 (31 March 2019: HK$11,272,000) as at 30 September 2019. It also includes sales commissions of HK$82,136,000 (31 March 2019: HK$15,697,000) which represent costs incurred to obtain property sale contracts. The Group has capitalized the amounts which will be amortized when the related revenue is recognized.

- 47 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

16. CREDITORS AND ACCRUALS

The aging analysis of the trade creditors of the Group is as follows:

30 September

31 March

2019

2019

HK$'000

HK$'000

Below 30 days

991

854

31 to 60 days

253

48

Over 60 days

260

52

1,504

954

Creditors and accruals include the construction cost payables and accruals of HK$116,299,000 (31 March 2019: HK$110,455,000) for the property and cemetery projects of the Group, and dividend payable of the Company of HK$46,977,000 (31 March 2019: Nil).

17. BORROWINGS

30 September

31 March

2019

2019

HK$'000

HK$'000

Unsecured bank borrowings

Short-term bank borrowing

100,000

200,000

Long-term bank borrowings

1,100,000

700,000

1,200,000

900,000

Secured bank borrowings

Short-term bank borrowing

80,786

16,955

Long-term bank borrowings

785,379

1,164,381

866,165

1,181,336

Total bank borrowings

2,066,165

2,081,336

- 48 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

17. BORROWINGS (Continued)

The total bank borrowings are analyzed as follows:

30 September

31 March

2019

2019

HK$'000

HK$'000

Short-term bank borrowings

180,786

216,955

Long-term bank borrowings

1,885,379

1,864,381

Total bank borrowings

2,066,165

2,081,336

The long-term bank borrowings are analyzed as follows:

30 September

31 March

2019

2019

HK$'000

HK$'000

Long-term bank borrowings

1,885,379

1,864,381

Current portion included in current liabilities

  Portion due within one year

(122,525)

(590,203)

  Portion due after one year which contains

    a repayment on demand clause

(276,000)

(288,000)

(398,525)

(878,203)

1,486,854

986,178

The bank borrowings are repayable in the following periods based on the agreed scheduled repayment dates set out in the loan agreements:

30 September

31 March

2019

2019

HK$'000

HK$'000

Within the first year

303,311

807,158

Within the second year

321,764

129,029

Within the third to fifth years

1,441,090

1,145,149

2,066,165

2,081,336

- 49 -

Notes to the Condensed Consolidated

Interim Financial Information (Continued)

  1. BORROWINGS (Continued)
    As at 30 September 2019, the Group had pledged certain assets, including investment properties, properties for sale and financial assets at fair value through profit or loss, with an aggregate carrying value of HK$1,923,897,000 (31 March 2019: HK$2,239,845,000), to secure banking facilities granted to the subsidiaries. As at 30 September 2019, bank borrowings of HK$866,165,000 (31 March 2019: HK$1,181,336,000) were guaranteed by the Company, HK$400,000,000 (31 March 2019: HK$500,000,000) were guaranteed by CCIL, and HK$800,000,000 (31 March 2019: HK$400,000,000) were guaranteed by the Company and CCIL, respectively.
  2. SHARE CAPITAL

30 September

31 March

2019

2019

HK$'000

HK$'000

Authorized:

  18,000,000,000 shares of HK$0.05 each

900,000

900,000

Number of

shares

Amount

HK$'000

Issued and fully paid at HK$0.05 each:

  At 31 March 2019 and 30 September 2019

2,348,835,316

117,442

  1. FINANCIAL GUARANTEES
    As at 30 September 2019, the subsidiaries had provided guarantees of HK$39,834,000 (31 March 2019: HK$71,626,000) to banks for mortgage loans made by the banks to the purchasers of properties sold by the subsidiaries in the PRC.
  2. COMMITMENTS
    As at 30 September 2019, the Group had commitments contracted but not provided for in respect of property projects and properties of HK$239,293,000 (31 March 2019: HK$480,019,000).
  3. RELATED PARTY TRANSACTION
    On 7 May 2018, a wholly-owned subsidiary of the Company entered into a tenancy agreement with a wholly-owned subsidiary of CCIL for the lease of one basement floor at its investment property in Hong Kong for a term of two years from 7 May 2018 to 6 May 2020. The premises are used as a sales office and show flat of the property project of the Group. Details of the transaction were announced by the Company on 7 May 2018. Total rental, management fee and license fee for the period ended 30 September 2019 amounted to approximately HK$2,402,000 (2018: HK$1,709,000).

- 50 -

Attachments

  • Original document
  • Permalink

Disclaimer

Chuang's China Investments Ltd. published this content on 10 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 December 2019 08:45:08 UTC