# 4. SEGMENT INFORMATION

The Group has three reportable segments. The segments are managed separately as each business offers different products or provides different services and requires different business strategies.

The following summary describes the operations in each of the Group’s reportable segments:

<table><tr><td>QR code business segment</td><td>— Provision of QR code on product packaging and solutions and advertising 
display services</td></tr><tr><td>Packaging products segment</td><td>— Manufacture and sale of watch boxes, jewellery boxes, eyewear cases, bags 
and pouches and display units</td></tr><tr><td>Treasury investment segment</td><td>— Investments and trading in securities and money lending</td></tr></table>

Management monitors the results of the Group’s operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment performance is evaluated based on reportable segment profit or loss, which is a measure of adjusted profit or loss before tax. The adjusted profit or loss before tax is measured consistently with the Group’s profit or loss before tax except that finance costs, share of results of a joint venture and an associate and head office and corporate income and expenses are excluded from such measurement.

There was no inter-segment sale or transfer during the year (2017: Nil). Central revenue and expenses are not allocated to the operating segments as they are not included in the measure of the segments’ results that is used by the chief operating decision makers for assessment of segment performance.

# 4. SEGMENT INFORMATION (Continued)

<table><tr><td rowspan="3"></td><td colspan="2">QR code business</td><td colspan="2">Packaging products</td><td colspan="2">Treasury investment</td><td colspan="2">Total</td></tr><tr><td>2018</td><td>2017</td><td>2018</td><td>2017</td><td>2018</td><td>2017</td><td>2018</td><td>2017</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Gr’oups revenue</td><td>73,405</td><td>78,791</td><td>276,225</td><td>318,656</td><td>447</td><td>500</td><td>350,077</td><td>397,947</td></tr><tr><td>Fair value losses on financial
assets at fair value through
profit or loss held for trading,
net</td><td>–</td><td>–</td><td>–</td><td>–</td><td>(1,307)</td><td>(80,248)</td><td>(1,307)</td><td>(80,248)</td></tr><tr><td>Segment revenue</td><td>73,405</td><td>78,791</td><td>276,225</td><td>318,656</td><td>(860)</td><td>(79,748)</td><td>348,770</td><td>317,699</td></tr><tr><td>Segment results</td><td>(195,734)</td><td>(157,723)</td><td>8,423</td><td>25,947</td><td>(890)</td><td>(79,874)</td><td>(188,201)</td><td>(211,650)</td></tr><tr><td>Corporate and unallocated 
income, gains and losses</td><td></td><td></td><td></td><td></td><td></td><td></td><td>5,696</td><td>(5,978)</td></tr><tr><td>Corporate and unallocated 
expenses</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(34,957)</td><td>(28,656)</td></tr><tr><td>Share of result of a joint venture</td><td></td><td></td><td></td><td></td><td></td><td></td><td>19</td><td>2,990</td></tr><tr><td>Share of result of an associate</td><td></td><td></td><td></td><td></td><td></td><td></td><td>7,276</td><td>–</td></tr><tr><td>Finance costs</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(41,807)</td><td>(5,693)</td></tr><tr><td>Loss before tax</td><td></td><td></td><td></td><td></td><td></td><td></td><td>(251,974)</td><td>(248,987)</td></tr></table>

<table><tr><td rowspan="3"></td><td colspan="2">QR code business</td><td colspan="2">Packaging products</td><td colspan="2">Treasury investment</td><td colspan="2">Total</td></tr><tr><td>2018</td><td>2017</td><td>2018</td><td>2017</td><td>2018</td><td>2017</td><td>2018</td><td>2017</td></tr><tr><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td><td>HK$’000</td></tr><tr><td>Other segment information:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Capital expenditure</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>– operating segment</td><td>44,935</td><td>51,379</td><td>39</td><td>3,662</td><td>–</td><td>–</td><td>44,974</td><td>55,041</td></tr><tr><td>– unallocated</td><td></td><td></td><td></td><td></td><td></td><td></td><td>13</td><td>25</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>44,987</td><td>55,066</td></tr><tr><td>Interest income</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>– operating segment</td><td>849</td><td>160</td><td>28</td><td>46</td><td>–</td><td>–</td><td>877</td><td>206</td></tr><tr><td>– unallocated</td><td></td><td></td><td></td><td></td><td></td><td></td><td>10,610</td><td>2</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>11,487</td><td>208</td></tr><tr><td>Depreciation</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>– operating segment</td><td>18,941</td><td>7,422</td><td>1,719</td><td>1,518</td><td>–</td><td>–</td><td>20,660</td><td>8,940</td></tr><tr><td>– unallocated</td><td></td><td></td><td></td><td></td><td></td><td></td><td>9</td><td>10</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>20,669</td><td>8,950</td></tr><tr><td>Amortisation</td><td>7,838</td><td>435</td><td>–</td><td>–</td><td>–</td><td>–</td><td>7,838</td><td>435</td></tr><tr><td>Loss/(gain) on disposal of 
property, plant and equipment</td><td>2,385</td><td>1,633</td><td>–</td><td>(190)</td><td>–</td><td>–</td><td>2,385</td><td>1,443</td></tr><tr><td>Impairment of property,
plant and equipment</td><td>40,718</td><td>–</td><td>–</td><td>–</td><td>–</td><td>–</td><td>40,718</td><td>–</td></tr><tr><td>Impairment loss of
trade receivables, net</td><td>2,016</td><td>17</td><td>–</td><td>49</td><td>–</td><td>–</td><td>2,016</td><td>66</td></tr><tr><td>Impairment loss of goodwill</td><td>37,023</td><td>104,664</td><td>–</td><td>–</td><td>–</td><td>–</td><td>37,023</td><td>104,664</td></tr></table>