ChatDOC/OCRFlux-bench-single huggingface dataset:
FIG. 8. (Color online) Distribution functions at dierent time points for (a) \( p _ { 1 } \) and (b)\( p _ { 2 } \). Zoomed curves around the side peaks are added for both. 200,000 trajectories are used. \( \gamma _ { s } \, = \, 0 . 1 \), \( \gamma _ { c } \, = \, 0 . 2 \) and \( g \) = 0.01.

FIG. 9. (Color online) Variances of \( p _ { 1 } \) (blue curve) and \( p _ { 2 } \) (red curve). The two curves are almost identical due to the same form of the SDEs for each DOPO. 200,000 trajectories are used. \( \gamma _ { s } = 0 . 1 \),\( \gamma _ { c } = 0 . 2 \) and \( _ { g } \) = 0.01.

# A. Other theoretical schemes

First, we refer to the diculty in the simulation in this study with other theoretical schemes. Regarding a numerical anal-ysis for an open quantum system, direct integration on the master equation with the Fock state basis is the most stan-dard method as investigated in the previous relevant studies[47, 48]. It treats a series of ordinary dierential equations for the components of the density matrix for the system. Single-shot numerical integration for them gives all the information of the solution, thus we do not have to repeat stochastic sim-ulations or take ensemble averages over a number of samples. Also, it is relatively easy to get a good accuracy in numerical integration of an ordinary dierential equation. However, the basis has an infinite number of eigenstates hence we have to truncate some of them. Here, the more photons possible in the system, the more eigenstates needed. In addition, the number of modes crucially aects the complexity of the simulation. When we consider two DOPOs and the injection path with m eigenstates for each, the number of components of the den-sity matrix is \( m ^ { 6 } \). This amounts to unrealistic numbers such as 10 \( \mathsf { n n t } \) and 1000 \( 1 0 ^ { 6 } \) thus the simulation with the parameters here will be too costly.

Solving the Fokker-Planck equation will be useful if we can find a potential solution. However, it supposes a system at
# 15. SHARE BASED PAYMENT TRANSACTIONS

The Company has adopted a share option scheme (“Share Option Scheme”) on 1 March 2018 to enable the Company to grant options to selected participants as incentives or rewards for their contribution to the Group and continuing efforts to promote the interest of the Group. The terms of the Share Option Scheme are in accordance with Chapter 23 of the GEM Listing Rules.

Details of Share Options and their movements during the six months ended 30 September 2020 are as follows:

Date of Grant	Exercise
price per
Share	Number of Shares issuable under the options
as at
01/04/
2020	granted
during the
period	exercised
during the
period	lapsed
during the
period	as at
30/09/
2020	Exercise
period
HK$
Director
Ms. Wong Bik Kwan Bikie
(“Ms. Wong”)	18/04/2019	0.12	7,980,000	–	–	–	7,980,000	Note 1
Emlpofyees o the Group
In aggregate	18/04/2019	0.12	14,480,000	–	–	(1,000,000)	13,480,000	Note 1
22,460,000	–	–	(1,000,000)	21,460,000

# Notes:

1. (i) up to 40% of the Share Options are exercisable on or after 18 April 2019;

(ii) up to 70% of the Share Options are exercisable on or after 18 April 2020;

(iii) all the remaining Share Options are exercisable on or after 18 April 2021;

and in each case, not later than 17 April 2024.

Save as disclosed above, no options were granted, exercised, forfeited, cancelled or lapsed during the six months ended 30 September 2020.
# 16. RELATED PARTY TRANSACTIONS

(a) Save as disclosed elsewhere in these consolidated financial statements, the Group had the following transactions with its related parties during the reporting periods:

For the six months ended
30 September
2020	2019
HK$’000	HK$’000
(Unaudited)	(Unaudited)
Rental expense paid to a related company (note (i))	533	177
Compensation of key management personnel (note (ii))
Salaries, allowances and other benefits	3,006	2,870
Contributions to defined contribution retirement lpan	45	38
Equity-settled share-based payment expenses	101	831
3,152	3,739

Notes:

(i) The Group entered into a lease agreement of warehouse with Solaire International Limited (“Solaire”). Solaire is held by Ms. Wong, Chairman, Chief Executive Officer and Executive Director of the Company. The transaction is conducted on normal commercial terms or better and is a connected transaction. The transaction is a de minimis transaction in accordance with GEM Listing Rules 20.74(1) fully exempt from the reporting, annual review, announcement, circular (including independent financial advice) and shareholders’ approval requirements.

(ii) The compensation represents the remuneration paid and was payable to the directors and other members of key management during the reporting periods.

(b) The amount due to a related company is unsecured, interest-free and repayable on demand.

# 17. CORONAVIRUS DISEASE 2019 OUTBREAK

Due to the outbreak of the COVID-19 epidemic in January 2020, a series of precautionary and control measures have been and continued to be implemented. It has impacted the global business environment. Up to the date of this financial statements, COVID-19 has not resulted in material impact to the Group. Pending the development and spread of COVID-19 subsequent to the date of this financial statements, further changes in economic conditions may have impact on the financial results of the Group, the extent of which could not be estimated as at the date of this financial statements. The Group will continue to monitor the development of COVID-19 and react actively to its impact on the financial position and operating results of the Group.
# Audit Committee (continued)

The Audit Committee shall meet at least twice a year. During the year, three meetings of the Audit Committee were held and attended by the external auditors of the Company. The attendance of the members was set out in the sub-section headed “Board Meetings” of this report.

The primary duties of the Audit Committee include acting as the key representative body for overseeing the relationship with the external auditors; reviewing and monitoring the effectiveness of the audit process; reviewing the Group’s financial information; overseeing the Group’s financial reporting system and risk management and internal control systems. The latest terms of reference of the Audit Committee can be viewed on the websites of the Stock Exchange and the Company at www.hkexnews.hk and www.avicjoyhk.com, respectively.

During the year, the Audit Committee has held three meetings and has reviewed and discussed the financial reporting matters, including:

(i) reviewed and recommended for the Board’s approval the interim and annual results, the interim report and annual report and other financial statements;

(ii) considered and discussed the reports and presentations from the external auditors and the senior management, respectively, with particular focus on the appropriateness of accounting policies and practices, areas of judgment, compliance with the Hong Kong Financial Reporting Standards and other legal requirements in relation to financial reporting;

(iii) recommended to the Board on the re-appointment of the external auditors and the relevant terms of engagement, including their remuneration;

(iv) reviewed the risk management and internal control systems of the Group and the effectiveness of the Group’s internal audit function for the year which covered financial, operational and compliance controls. The process used in such review including discussions with the management of the Company on the risk areas identified and the review of findings and reports from an independent professional advisor. The Audit Committee reviewed and concurred with the management’s confirmation that the Group’s risk management and internal control systems were effective and adequate for the year; and

(v) reviewed and was satisfied with the adequacy of the resources, staff qualification and experience, training programmes and budget of the Company’s accounting, financial reporting and internal audit functions.
# Remuneration Committee

From 1 January 2017 to 1 April 2017, the Remuneration Committee comprised four members, namely Mr. Hu Xiaowen (Chairman of the Remuneration Committee), Mr. Wu Meng, Mr. Gong Changhui and Mr. Zhu Dong. Subsequent to Mr. Wu’s resignation and his cessation to be a member of the Remuneration Committee with effect from 1 April 2017, the Remuneration Committee comprises three members, namely, Mr. Hu Xiaowen, Mr. Gong Changhui and Mr. Zhu’s. Subsequent to Mr. Huang Bo’s appointment as a member of the Remuneration Committee with effect from 30 June 2017, the Remuneration Committee comprises four members, namely, Mr. Hu Xiaowen, Mr. Gong Changhui, Mr. Zhu Dong and Mr. Huang Bo. Subsequent to Mr. Zhu’s resignation and his cessation to be a member of the Remuneration Committee with effect from 5 November 2017, Mr. Huang’s resignation and his cessation to be a member of the Remuneration Committee with effect from 23 November 2017, Mr. Hu’s resignation and his cessation to be the chairman and a member of the Remuneration Committee with effect from 2 December 2017, and Mr. Gong’s resignation and his cessation to be a member of the Remuneration Committee with effect from 4 December 2017 and the appointment of Mr. Jiang Ping as the chairman and a member of the Remuneration Committee, the appointment of Mr. Guo Wei and Ms. Wu Rui as members of the Remuneration Committee, all with effect from 4 December 2017, the Remuneration Committee comprises three members, namely, Mr. Jiang Ping (Chairman of the Remuneration Committee), Mr. Guo Wei and Ms. Wu Rui.

The Remuneration Committee shall meet at least once a year. During the year, three meetings of the Remuneration Committee were held and the attendance of the members was set out in the sub-section headed “Board Meetings” of this report.

Details of the Directors’ emoluments and remuneration payable to members of senior management by band are set out in note 9 to the financial statements. The Remuneration Committee adopted the model “to determine, with delegated responsibility, the remuneration packages of individual executive Directors and senior management”.

The primary duties of the Remuneration Committee include to make recommendations to the Board on the Company’s policy and structure for all Directors’ and senior management’s remuneration, to review and approve the management’s remuneration proposal with reference to the Company’s corporate goals and objectives, to determine the remuneration packages of individual executive Directors and senior management including benefits in kind, pension rights and compensation payment comprising any compensation payable for loss or termination of their office or appointment, to make recommendations to the Board on the remuneration of non-executive Directors. The latest terms of reference of the Remuneration Committee can be viewed on the websites of the Stock Exchange and the Company at www.hkexnews.hk and www.avicjoyhk.com, respectively.
# 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

# Financial assets (Continued)

# Classification of financial assets (Continued)

# Investments in debt securities

An investment in debt securities is classified as follows depending on the instruments’ contractual cash flow characteristics and the Group’s business model for managing the investment:

• Amortised cost when (a) the contractual terms of the asset give rise on specified dates to cash flows that are solely payment of principal and interest on the principal amount outstanding and (b) the financial asset is held within a business model whose objective is achieved by collecting contractual cash flows.

• FVTOCI when (a) the contractual terms of the asset give rise on specified dates to cash flows that are solely payment of principal and interest on the principal amount outstanding and (b) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial asset.

• FVTPL when either (a) the contractual terms of the asset give rise on specified dates to cash flows that are not solely payment of principal and interest on the principal amount outstanding or (b) the financial asset is held within a business whose objective is neither (i) collecting contractual cash flows nor (ii) collecting contractual cash flows and selling the financial asset.

For investments in debt securities subsequently measured at FVTOCI, fair value changes are recognised in other comprehensive income and accumulated in the “FVTOCI (debt investment) reserve” except for impairment loss (see below) and foreign exchange gains or losses. Interest income is calculated using the effective interest method and is recognised in profit or loss. When an investment in debt securities is derecognised, the fair value changes previously recognised in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment.

An investment is debt securities is derecognised when the Group sells the investment or when the contractual rights to the cash flows from the asset expire.
# 5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

# Financial assets (Continued)

# Classification of financial assets (Continued)

# Transaction costs

Transaction costs directly attributable for the acquisition of financial assets (other than those classified or designated as at FVTPL) are included in the initial measurement of the financial assets. For financial assets subsequently measured at amortised cost, such transaction costs are included in the calculation of amortised cost using the effective interest method (i.e. in effect amortised through profit or loss over the lives of the financial assets). For investments in equity securities at FVTOCI, such transaction costs are recognised in other comprehensive income as part of change in fair value at the next remeasurement. For investments in debt securities classified as FVTOCI, such transaction costs are amortised to profit or loss using the effective interest method (i.e. in effect amortised through profit or loss over the lives of the financial assets).

# Impairment on financial assets

The Group has applied the expected credit loss model under HKFRS 9 to the following types of financial assets:

• financial assets that are subsequently measured at amortised cost (including cash and cash equivalents and trade receivables); and

• contract assets as defined in HKFRS 15.

Expected credit loss (ECL) of a financial asset is measured based on an unbiased and probability-weighted amount. It also reflects the time value of money and reasonable and supportable information that is available to the Group without undue cost or effect at the reporting date about past events, current conditions and forecasts of future economic conditions. The maximum period considered when estimating ECL is the maximum contractual period over which the Group is exposed to credit risk.

ECL is measured on either of the following bases:

• 12-month expected credit loss when, at the reporting date, the credit risk on a financial asset has not increased significantly since initial recognition; and

• Lifetime expected credit loss when (a) at the reporting date, the credit risk on a financial asset has increased significantly since initial recognition; or (b) at the reporting date, the financial asset has become credit-impaired.
# (III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued)

# 10. Financial instruments (Continued)

# 10.3 Impairment of financial assets (Continued)

# Impairment of financial assets measured at cost

If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, the carrying amount of the financial asset is reduced to the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. The amount of reduction is recognized as an impairment loss in profit or loss. The impairment loss on such financial asset is not reversed once it is recognized.

# 10.4 Transfer of financial assets

The Group derecognises a financial asset if one of the following conditions is satisfied: (1) the contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.

For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between the carrying amount of the financial asset transferred and the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized in other comprehensive income, is recognized in profit or loss.

# 10.5 Classification, recognition and measurement of financial liabilities

On initial recognition, financial liabilities are classified into financial liabilities at fair value through profit or loss and other financial liabilities.

The Group’s financial liabilities are other financial liabilities, including notes payable, account payable, dividends payable and other payables.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with gain or loss arising from derecognition or amortisation recognized in profit or loss.

# 10.6 Derecognition of financial liabilities

The Group derecognises a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
# (III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (Continued)

# 10. Financial instruments (Continued)

# 10.6 Derecognition of financial liabilities (Continued)

When the Group derecognises a financial liability or a part of it, it recognises the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.

# 10.7O ffsetting financial assets and financial liabilities

Where the Group has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net basis, or to realise the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.

# 10.8 Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The issuance of equity instruments is deemed as changes in equity. The Group does not recognise any changes in the fair value of equity instruments. Transaction fees relevant to equity transactions are deducted from equity.

Distributions made by the Group to holders of equity instruments are treated as profit distributions.

# 11. Receivables

# 11.1 Receivables that are individually significant and for which bad debt provision is individually assessed

Criteria for determining
receivables that are individually
significant	A receivable that exceeds RMB5 million is deemed as an
individually significant receivable by the Group.
Method of determining
provision for receivables that
are individually significant	For receivables that are individually significant, the Group
assesses the receivables individually for impairment. For
a financial asset that is not impaired individually, the
Group includes the asset in a group of financial assets
with similar credit risk characteristics and collectively
assesses them for impairment. Receivables for which
an impairment loss is individually recognized are not
included in a collective assessment of impairment.
Notes	Year ended 31 December
2020	2019
Investing activities
Proceeds from disposal and redemption of investments	2,570,954	1,940,528
Proceeds from disposal of propertly, pant and
equipment, land use rihgts, and other assets	368	399
Cash received from equity investment income	416	373
Payments on acquisition of investments	(2,783,341)	(2,190,629)
Payments on acquisition of propertly, pant and
equipment, land use rihgts and other assets	(4,619)	(4,056)
Net cash paid for acquisition of associates and joint
ventures	24	(2,027)	—
Net cash received from disposal of associates	—	321
Net cash flows used in investing activities	(218,249)	(253,064)
Financing activities
Cash received from debt securities issued	39	807,022	586,270
Cash received from other equity instruments issued	43	—	39,993
Cash paid for redemption of debt securities issued	(720,194)	(486,792)
Interest paid on debt securities issued	(22,319)	(22,829)
Dividends paid	(15,094)	(13,052)
Princilipe and nterest dlpai for easinliliig abites	(3,443)	(3,011)
Net cash flows from financing activities	45,972	100,579
Net decrease in cash and cash equivalents	(15,414)	(35,516)
Cash and cash equivalents as at 1 January	342,449	376,009
Effect of exchange rate changes on cash and cash
equivalents	(7,469)	1,956
Cash and cash equivalents as at 31 December	50	319,566	342,449
Cash flows from operating activities include:
Interest received	306,814	291,967
Interest paid	(117,290)	(119,236)

The accompanying notes form an integral part of these consolidated financial statements.