ChatDOC/OCRFlux-bench-single huggingface dataset:
# 21 AVAILABLE-FOR-SALE INVESTMENTS

2017	2016
HK$’000	HK$’000
Listed equity securities, at fair value	61,501	51,408
Unlisted equity securities, at fair value (note)	5,282,793	4,804,782
5,344,294	4,856,190

Note: In 2016, the Group acquired an indirect equity interest of approximately 24.4% in Shanghai Krupp Stainless Co. Ltd. (“SKS”), which owns a project site in Pudong New Area, Shanghai (the “Project”). As the Group does not have any significant influence over financial and operating policies to Shanghai Krupp, the Group recorded its investments as available-for-sale investments. The investment cost in SKS amounting to HK\$3,425 million as at 31 December 2017 was included in the balance of unlisted equity securities.

The Group’s investment was made based on a public notice issued and approved in May 2016 by the Municipal Government on city planning regarding the conversion of the land usage from industrial to commercial and residential use. However, in August 2017, the Municipal Government issued and approved another development plan of Pudong Expo Cultural Park of which the underlying Project held by SKS fell within the area of park development.

As of the date of this report, there is no verbal or written notice issued by the government to SKS regarding the development of the site area and the rationale of the change in the development plan of the area and its implication to the original development plan of the Project. As of the date of this report, SKS remains as the registered owner of the land with all the rights conferred as per the original land grant.

Based on the above-mentioned situation and after taking into consideration the legal advice from an independent legal counsel, together with the current status of the project site, management considered SKS maintains reasonable grounds to negotiate with the Municipal Government in respect of the latest development plan of the Project including but not limited to explore a mutually acceptable solution and/or to pursue a negotiation for its damages and loss of profits, if any. Management has then engaged independent valuers, Cushman & Wakefield Limited, who hold a recognised relevant professional qualification, to estimate the fair value of the Group’s available-for-sale investments as at 31 December 2017 based on the original development plan of the Project as set out in the public notice issued in May 2016.

Cushman & Wakefield Limited adopted an asset-based valuation approach on the investment, which is a means of estimating the value of a business using methods based on the market value of individual business assets less liabilities and judgement was required to determine the fair value.
# 22 MORTGAGE LOANS RECEIVABLE

2017	2016
HK$’000	HK$’000
Non-current mortgage loans receivable	3,641,905	1,001,386
Current portion of mortgage loans receivable	30,025	13,663
Total mortgage loans receivable	3,671,930	1,015,049

The balance included first mortgage loans of HK\$2,442,536,000 (2016: HK\$611,329,000) offered to buyers of certain properties developed by the Group in Hong Kong. For these first mortgage loans receivable, the fair value was calculated based on cash flows discounted using lending rates from financial institutions and assuming the loans will be repaid according to the contract terms. The valuation process of the Group is set out in note 3(c)(iv) to the consolidated financial statements.

The remaining amounts mostly represented the second mortgage loans receivable which are carried at amortised cost.

Mortgage loans receivable are denominated in Hong Kong dollars.

# 23 ACCOUNTS RECEIVABLE, PREPAYMENTS AND DEPOSITS

2017	2016
HK$’000	HK$’000
Trade receivables (note (a))	4,332,017	347,788
Prepayments	223,230	928,753
Land bidding deposit (note (b))	–	168,652
Others	3,010,964	1,033,423
7,566,211	2,478,616

The carrying amounts of accounts receivable approximate their fair value.

The carrying amounts of the Group’s accounts receivable, prepayments and deposits are denominated in the following currencies:

2017	2016
HK$’000	HK$’000
Hong Kong dollar	6,957,831	1,831,154
Renminbi	507,694	646,858
Other currencies	100,686	604
7,566,211	2,478,616
Our MRP System regulates our supply chain and financial management, collects and combines data in relation to procurement of raw materials, production, product delivery and inventories. Our MES supports production and materials tracking which allows us to trace the use of raw materials in production and check the production status of each purchase order we receive. All of the operational information can be monitored in real time and updated through our MRP System and MES, which allow transparency and control of our production processes. These systems are managed by our information technology team, which comprised 49 staff as at the Latest Practicable Date.

Q P (SZ) is responsible for supporting our websites, including the development of our websites and online personalisation and design features, online ordering management and automatic imposition processes for digital printing. Linking up online ordering and manufacturing management, the websites feature online personalisation and ordering functions and enable automatic imposition processes for digital printing. The websites are integrated with our MRP System so that the online orders are processed with minimal human effort.

In 2019, Q P Printing was awarded the Certificate of Industry 4.0 Maturity Recognition for achieving a maturity level 1i Real Time Information Generation (equivalent to a Maturity Level 3 of the acatech Industry 4.0 Maturity Model) for its achievement in having real-time information in the digital production shop floor for playing card business including web to print operation, production processes including cutting, priming, digital printing, coating and kitting.

During the Track Record Period and up to the Latest Practicable Date, we had not experienced any material malfunction of our IT systems.

As part of our business strategies, we intend to leverage our technological capabilities and upgrade our IT infrastructure. For details, see “– Our business strategies – Leverage our technological capability to capture more business opportunities in Internet retailing and upgrade our IT infrastructure” and “Future Plans and Use of Proceeds”.
Measure”), approximately 66.1% and 77.1% of our revenue derived from the U.S. by destination of delivery will be produced by our subcontractors in Vietnam. We also expect to incur additional costs for subcontracting further production to Vietnam of approximately HK\$4.4 million and HK\$5.1 million in the first year and second year, respectively, upon the implementation of Contingency Measure.

Based on the assumptions that our Group’s revenue derived from the U.S. by destination of delivery by FY2020 upon full implementation of Immediate Measures and in each of the first and second year upon activation of Contingency Measure would be the same as our revenue derived from the U.S. by destination of delivery in FY2018 (“U.S. FY2018 Revenue”), we expect to achieve revenue equal to the full amount of the U.S. FY2018 Revenue without being subject to the U.S. tariffs by the second year of fully implementing the Contingency Measure. The table below sets out the breakdown of the estimated percentage of the U.S. FY2018 Revenue to be achieved under each relevant Immediate Measure and/or Contingency Measure and remain to be subject to the U.S. tariffs upon implementation of such measures.

U.S. FY2018 Revenue to be achieved
By FY2020
upon full
imlipementaton
of Immediate
(NtMoe)easures	By first year
upon full
imlpementation
of Contingency
Measure	By second year
upon full
imlpementation
of Contingency
Measure
%	%	%
1. Immediate Measure 1A
and/or Contingency Measure
– enigagng and further
expanding the engagement of
subcontractors in Vietnam	55.9	66.1	77.1
2. Immediate Measure 1B –
enbgaigng sucontractor in
Hong Kong	15.3	15.3	15.3
3. Immediate Measure 2 –
alifppyng or
De Minimis value exemption
for web sales customers
based in the U.S.	7.5	7.5	7.5
4. Revenue generated from our
laboratory testing services
which are not subject to the
U.S. tariffs	0.1	0.1	0.1
5. Revenue remaining to be
subject to the U.S. tariffs	21.2	11.0	Nil
Total	100.0	100.0	100.0

---

Note: The table aims to show the estimated percentage of U.S. FY2018 Revenue to be achieved by FY2020. As such, the effect of Immediate Measures other than Immediate Measures 1A, 1B and 2 are not taken into account.
We will further negotiate with our customers to further take up the increased U.S. tariffs payable by our customers during the two-year transition period on a case-by-case basis. The following sensitivity analysis illustrates, based on the U.S. FY2018 Revenue, the impact on our revenue and net profit for FY2020 upon full implementation of the Immediate Measures and for the first year and second year upon implementation of the Contingency Measure assuming the Section 301 List 4 Additional Tariff of 25% is imposed and our Group was to bear all such U.S. tariffs:

FY2020
following
imlpementation
of Immediate
Measures	First year
following
imlipementaton
of Contingency
Measure	Second year
following
imlipementaton
of Contingency
Measure
HK$’000	HK$’000	HK$’000
Decrease in revenue	42,672	11,285	3,023
Decrease in net profit	35,999	9,523	2,551

In light of the Contingency Measure our Group have in place, our Directors believe that we will continue to be able to maintain our customer relationships and our business operation and financial performance will not be materially affected by the potential increase of the Section 301 List 4 Additional Tariff to 25% in the imminent future. Our Directors confirm that the implementation costs of the Contingency Measure would be funded by our internal resources and/or bank loan(s). Our Directors undertake that our Group will implement the Contingency Measure in parallel with the Immediate Measures as listed in the above if the Section 301 List 4 Additional Tariff is increased from 15% to 25% or above anytime in the future. In the event that the Contingency Measure has to be activated in the future, our Directors will continue to closely monitor the market and economic environment as well as our business and financial conditions to ensure any material adverse effect on our Group’s business and operations will be minimised as a whole. Our Directors also undertake to keep reviewing the relevant laws and regulations in relation to the U.S. tariffs and will seek legal advice as and when appropriate.

# Relocation of sales upon full implementation of Immediate Measures 1A, 1B and 2 and Contingency Measure to shift our production outside the PRC

We expect that by the end of FY2020, our Group will be able to fully implement Immediate Measures 1A, 1B and 2. The following tables set out the breakdown of revenue and sales volume attributable to our U.S. sales products by production channels in different geographical locations (i) during the Track Record Period; and (ii) upon full implementation of Immediate Measures 1A, 1B and 2 and Contingency Measures (in terms of our sales amount and sales volume attributable to our U.S. sales products by production channels in different geographical locations for FY2018):
# EVENTS AFTER THE REPORTING PERIOD

# Back-to-back Guarantee Agreement

Reference were made to the announcements of the Company dated 30 July 2018, 29 July 2019, 24 July 2020 and 28 July 2021 in relation to the provisional of financial guarantee services. A Renewal Agreement to renew the Back-to-back Guarantee Agreement was entered by Wuhu Feishang Non-metal Material Co., Limited\*（蕪湖飛尚非金屬材料有限公司）, a wholly-owned subsidiary of the Company established in the PRC (the “Wuhu Subsidiary”), pursuant to which the Wuhu Subsidiary has agreed to provide financial guarantee to the Borrower by means of pledging its deposit in the sum of CNY20 million for procuring the Borrower to obtain the loan of CNY19 million provided by the lending bank. In return, the Wuhu Subsidiary shall receive a guarantee fee of 6% of the amount of deposit pledged by the Wuhu Subsidiary. The Board considers that the Group has surplus cash in CNY in excess of the working capital needs for its business operation in the PRC. The provision of Guarantee in favour of the Borrower will better utilize the Group’s surplus cash with reasonable return.

# Proposed (i) share consolidation; and (ii) rights issue

The Company proposed to implement (i) the share consolidation on the basis that every ten (10) issued and unissued existing shares into one (1) consolidated share (“Consolidated Share(s)”) and (ii) the rights issue on the basis of one (1) rights shares for every one (1) Consolidated Shares held on the record date at the subscription price of HK\$0.350 per rights share, to raise gross proceeds of approximately HK\$27.8 million before expenses (assuming no other change in the number of Shares in issue save for the share consolidation on or before the record Date) by issuing 79,557,200 rights shares. Details were set out in the Company’s announcements dated 16 July 2021 and 6 August 2021.

As save as above, there is no material event undertaken by the Company or the Group subsequent to 30 June 2021 and up to the date of this report.
# OUTLOOK

The PRC has generally kept COVID-19 under control, and economic activities and confidence have rapidly recovered. The Chinese government has implemented strong fiscal and monetary stabilizing policies to further boost the PRC ‘s GDP growth by building a strong domestic market and supporting the domestic and international “dual circulation” strategy. Investment in fixed assets, real estate and infrastructure construction is expected to maintain solid growth, which will then support bentonite demand from downstream industries including the iron and steel and the energy sectors. Nevertheless, it would be difficult to gauge the longer term impact of such events as the situation is dynamically revolving. The Group has been proactive in closely monitoring the market conditions and taking appropriate measures to respond to the challenges. The Group will also continue to strengthen its cost control and resources management as well as to actively participate in project tenders, in order to maintain its competitiveness in the market.

Within the bentonite industry, uncertainties due to COVID-19 and international trade conflicts will cause market competition to further intensify and prices to fluctuate. Meanwhile, the new series of real estate market regulation and control policies and the PRC ‘s ambitious target to achieve carbon neutrality by 2060 are expected to adversely affect the iron and steel and the traditional energy industries in the long term, which will negatively impact the Group’s business by imposing pressures on demand for pelletising clay and drilling mud. The Group strives to maintain the sales volume of its bentonite products by improving product quality and adhering to the “selling more with lower margin” strategy, and yet the Group may not be able to maintain the current level of gross profit margin in the coming months. The Group intends to continue expanding its customer base and market share by boosting product awareness of its bentonite products, refining its production technology and developing new products with a view to enhance the Group’s overall competitiveness to cope with the risks and uncertainties of the business environment.

In view of the COVID-19 pandemic situation in Hong Kong, the Group expects that the business environment in financial services, including wealth management and money lending business, would be challenging in the year 2021. However, with the expectation of increasing awareness in wealth management in recent years, as well as the probable easing of travel restrictions between Hong Kong and the PRC, the Group remains cautiously optimistic in the medium and long-term development of this business segment in Hong Kong. Meanwhile, the Group will cautiously monitor market change and impose robust control measures to improve cost efficiency and risk management in order to provide a solid foundation for sustainable growth in the future.
the preceding assignment should behave properly when compiled with any standard C compiler. If you declare d as some other integer type, such as

the assignment might provoke a warning from the compiler, or worse, silently truncate the assigned value at runtime, for example, if ptrdiff\_t were an alias for long long int for that implementation.

The lower and upper limits of ptrdiff\_t are defined by PTRDIFF\_MIN and PTRDIFF\_MAX respectively. The minimum acceptable limits defined by the C Standard are

These limits require that any 16-bit implementation must have at least a 17-bit ptrdiff\_t to represent all possible differences of 16-bit pointers.

Although the standard does not explicitly guarantee that sizeof(ptrdiff\_t) equals sizeof(size\_t), it typically is the case on 32-bit or 64-bit implementa-tions. This may seem somewhat surprising because a signed integer type may not be able to represent the difference between two pointers on such a system.

For example, on a system that supports objects up to \( 2 ^ { 3 2 } \mathrm { ~ - ~ } \) 1 bytes, the sizeof operator can yield values only from 0 to \( 2 ^ { 3 2 } - 1 \), so 32 bits are sufficient. However, pointer subtraction for pointers to elements of an array of \( 2 ^ { 3 2 } \mathrm { ~ - ~ } 1 \) bytes could yield values from −(232 − 1) to +(232 − 1). Consequently, ptrdiff\_t would have to be at least 33 bits to represent all possible differences. How-ever, C allows an implementation in which ptrdiff\_t is 32 bits by making it undefined behavior if the result of subtracting two pointers is not represent-able in an object of type ptrdiff\_t. In most cases, a ptrdiff\_t overflow on a two’s complement machine with quiet wraparound on overflow does not affect the result of the operation. To program securely, however, you should care-fully consider the consequences of your operation when the subtraction of two pointers may result in such large values.

intmax\_t and uintmax\_t. intmax\_t and uintmax\_t are integer types with the greatest width and can represent any value representable by any other inte-ger types of the same signedness. Among other applications, intmax\_t and uintmax\_t can be used for formatted I/O on programmer-defined integer types. For example, given an implementation that supports 128-bit unsigned integers and provides a uint\_fast128\_t type, a programmer may define the following type:
This creates a problem with using these types with formatted output functions, such as printf(), and formatted input functions, such as scanf(). For example, the following code prints the value of x as an unsigned long long, even though the value is of a programmer-defined integer type:

There is no guarantee that this code prints the correct value of x because x may be too large to represent as an unsigned long long.

The intmax\_t and uintmax\_t types are capable of representing any value representable by any other integer types of the same signedness, allowing conversion between programmer-defined integer types (of the same signed-ness) and intmax\_t and uintmax\_t:

Formatted I/O functions can be used to input and output greatest-width integer typed values. The j length modifier in a format string indicates that the following d, i, o, u, x, X, or n conversion specifier will apply to an argument with type intmax\_t or uintmax\_t. The following code guarantees that the cor-rect value of x is printed, regardless of its length, provided that mytypedef\_t is an unsigned type:

In addition to programmer-defined types, there is no requirement that an implementation provide format length modifiers for implementation-defined integer types. For example, a machine with an implementation-defined 48-bit integer type may not provide format length modifiers for the type. Such a machine would still have to have a 64-bit long long, with intmax\_t being at least that large. The CERT C Secure Coding Standard [Seacord 2008], “INT15-C. Use intmax\_t or uintmax\_t for formatted IO on programmer-defined integer types,” provides further examples of this use of the intmax\_t and uintmax\_t types.
# 14 Inventories

2017	2016
HKD’000	HKD’000
Cost:
Raw materials	234,829	167,579
Work-in-progress	80,846	69,469
Finished goods	82,008	52,101
397,683	289,149
Less: provision for write-down of inventories to net realizable values	20,212	(19,370)
377,471	269,779

For the year ended 31 December 2017, the cost of inventories recognized as cost of sales, selling and marketing costs, research and development expenses, administrative expenses and capitalised expenditure of development costs amounted to HKD1,016,100,000 (2016: HKD806,135,000).

For the year ended 31 December 2017, the Group wrote back provision for write-down of inventories of HKD323,000 (2016: the Group made provision for write-down of inventories of HKD11,796,000).

# 15 Trade and Other Receivables

2017	2016
HKD’000	HKD’000
Trade receivables (a)	708,062	461,778
Less: provision for impairment of receivables (b)	(752)	(1,106)
Trade receivables — net	707,310	460,672
Amounts due from related parties (a) (Note 36(d))	379	393
Bills receivable (c)	193,062	148,873
Prepayments	30,425	12,062
Interest receivables	940	1,675
Other receivables (d)	116,145	49,698
1,048,261	673,373
Less non-current portion: other receivables (d)	(73,213)	(26,139)
Current portion	975,048	647,234
# OVERVIEW

Mr LU Yuanfeng, Mr. HUANG Guozhan and Mr. HUANG Deqiang are the Founders of our Group. On June 27, 2017, each of the Founders and Ms. LUO Simin (who is the spouse of Mr. LU), along with their respective wholly-owned companies holding the Shares, entered into a parties acting in concert deed to confirm that they have acted in concert in the management, operation and all major decisions of our Group. As of the Latest Practicable Date, LYF Digital Holdings Limited (a company wholly-owned by Mr. LU Yuanfeng), Angel Age Limited (a company wholly-owned by Ms. LUO Simin), LXT Digital Holdings Limited (a company wholly-owned by Mr. HUANG Guozhan) and HDQ Digital Holdings Limited (a company wholly-owned by Mr. HUANG Deqiang) are entitled to exercise voting rights of approximately 65.95% of the total issued share capital of our Company. Immediately following the completion of the Global Offering (assuming the Over-allotment Option or any options which may be granted under the Post-IPO Share Option Scheme are not exercised), Mr. LU Yuanfeng, Ms. LUO Simin, Mr. HUANG Guozhan and Mr. HUANG Deqiang through LYF Digital Holdings Limited, Angel Age Limited, LXT Digital Holdings Limited and HDQ Digital Holdings Limited, respectively, will beneficially own approximately 49.46% of the issued share capital of our Company. Accordingly, Mr. LU Yuanfeng, Ms. LUO Simin, Mr. HUANG Guozhan, Mr. HUANG Deqiang, LYF Digital Holdings Limited, Angel Age Limited, LXT Digital Holdings Limited and HDQ Digital Holdings Limited are considered as our Controlling Shareholders.

# DELINEATION OF OUR BUSINESS

Neither of our Controlling Shareholders, our Directors nor their respective close associates has any interest in any business, apart from the business operated by members of our Group, that competes or is likely to compete, directly and indirectly, with the business of our Group and would require disclosure pursuant to Rule 8.10 of the Listing Rules.

# DEED OF NON-COMPETITION

On November 24, 2017, each of the Controlling Shareholders entered into the Deed of Non-competition in favor of our Company, pursuant to which each of the Controlling Shareholders irrevocably undertake to our Company that during the Restricted Period (as defined below) he will not and will procure his close associates (except any member of our Group) not to, directly or indirectly (whether in the capacity of principal or agent, whether for its own benefit orj ointly with or on behalf of any person, firm or company, whether within or outside China), commence, engage in, participate in or acquire any business which competes or may compete directly or indirectly with our core business, namely development and publication of online games (“Restricted Business”) or own any rights or interests in such business.