# 9 TAXATION (Continued)

The movement in gross deferredi ncome tax assets andl iabilities during the year, without takingi nto consideration the offsetting of balances within the same taxj urisdiction,i s as follows:

# Deferred tax assets

<table><tr><td rowspan="2"></td><td>Amortization
of operating
lease</td></tr><tr><td>HK$’000</td></tr><tr><td>At 1 January 2017</td><td>2,142</td></tr><tr><td>Credited to the consolidated income statement</td><td>178</td></tr><tr><td>Exchange differences</td><td>156</td></tr><tr><td>At 31 December 2017 and 1 January 2018</td><td>2,476</td></tr><tr><td>Credited to the consolidated income statement</td><td>41</td></tr><tr><td>Disposal of a subsidiary</td><td>(2,573)</td></tr><tr><td>Exchange differences</td><td>56</td></tr><tr><td>At 31 December 2018</td><td>–</td></tr></table>

# Deferred tax liabilities

<table><tr><td rowspan="2"></td><td>Unrealized
earning</td><td>Amortization
of operating
lease</td><td> Total</td></tr><tr><td>HK$’000</td><td> HK$’000</td><td> HK$’000</td></tr><tr><td>At 1 January 2017</td><td>−</td><td>(1,003)</td><td>(1,003)</td></tr><tr><td>Charged to the consolidated income statement</td><td>(241)</td><td>(301)</td><td>(542)</td></tr><tr><td>Exchange differences</td><td>(12)</td><td>(81)</td><td>(93)</td></tr><tr><td>At 31 December 2017 and 1 January 2018</td><td>(253)</td><td>(1,385)</td><td>(1,638)</td></tr><tr><td>Charged to the consolidated income statement</td><td>(42)</td><td>(129)</td><td>(171)</td></tr><tr><td>Disposal of a subsidiary</td><td>–</td><td>1,547</td><td>1,547</td></tr><tr><td>Exchange differences</td><td>13</td><td>(33)</td><td>(20)</td></tr><tr><td>At 31 December 2018</td><td>(282)</td><td>–</td><td>(282)</td></tr></table>

Deferred tax assets are recognized for taxl osses carry-forward to the extent that the realization of the related tax benefit through the future taxable profitsi s probable. As at 31 December 2018, the Group had unrecognized tax losses of approximately HK\$339,020,000 (2017: approximately HK\$344,853,000) to carry forward against future taxablei ncome, subject to agreement by the Inland Revenue Department of Hong Kong andl ocal tax bureau of the PRC. The decrease of unrecognized tax lossesi s mainly attributed to the disposal of Beijing Si Hai Jun Tian Trading Company Limited (“Si Hai Jun Tian”) andl apsed of certain taxl osses of the PRC subsidiaries during the year ended 31 December 2018. No deferred taxation has been recognisedi n respect of the taxl osses due to unpredictability of future profit streams. The taxl osses of the PRC subsidiaries have an expiry period of five years, while the taxl osses of Hong Kong subsidiaries have no expiry date.

# 9 TAXATION (Continued)

# Deferred tax liabilities (Continued)

The Group did not recognize deferredi ncome tax assets of approximately HK\$1,112,000 (2017: approximately HK\$2,571,000) in respect of taxl osses of approximately HK\$4,449,000 (2017: approximately HK\$10,282,000) that will expirei n five years from the yeari ncurred. The remaining tax losses of approximately HK\$334,571,000 (2017: approximately HK\$334,571,000) can be carried forwardi ndefinitely to offset against future taxablei ncome.

Deferredi ncome taxl iabilities of HK\$2,306,000 have not been recognized for the withholding tax and other taxes that would be payable on the unremitted earnings of certain subsidiaries andj oint ventures for the year ended 31 December 2017. Total unremitted earnings amounted to HK\$23,059,000 as at 31 December 2017. The unrecognized deferredi ncome taxl iabilitiesi n relation to the unremitted earnings decrease to nil is attributed to the disposal of Hao You during the year ended 31 December 2018.

# 10 EARNINGS/(LOSS) PER SHARE

Basic earnings/(loss) per sharei s calculated by dividing the profit/(loss) attributable to equity holders of the Company by the weighted average number of ordinary sharesi ni ssue during the year. Diluted earnings/(loss) per sharei s calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Diluted earnings/(loss) per share for the years ended 31 December 2018 and 2017 were the same as basic earnings/(loss) per share as the Company had no potentially dilutive ordinary sharesi ni ssue during these years.

<table><tr><td></td><td>2018</td><td>2017</td></tr><tr><td>Weighted average number of ordinary shares in issue (thousands)</td><td>13,498,107</td><td>13,498,107</td></tr><tr><td>Loss from continuing operations attributable to equity
holders of the Company (HK$’000)</td><td>(67,026)</td><td>(142,528)</td></tr><tr><td>Basic and diluted loss per share from continuing operations
attributable to equity holders of the Company
(HK cents per share)</td><td>(0.49)</td><td>(1.06)</td></tr><tr><td>Profit from discontinued operations attributable to
equity holders of the Company (HK$’000)</td><td>140,763</td><td>38,859</td></tr><tr><td>Basic and diluted earnings per share from discontinued operations
attributable to equity holders of the Company
(HK cents per share)</td><td>1.04</td><td>0.29</td></tr><tr><td>Earnings/(loss) per share attributable to equity holders of the
Company
(HK cents per share)</td><td>0.55</td><td>(0.77)</td></tr></table>