ChatDOC/OCRFlux-bench-single huggingface dataset:
# 2. APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) (continued)

# HKFRS 9 Financial Instruments (continued)

# Impairment

In general, the Directors anticipate that the application of the expected credit loss model of HKFRS 9 will result in earlier provision of credit losses which are not yet incurred in relation to the Group’s financial assets measured at amortised costs and other items that subject to the impairment provisions upon application of HKFRS 9 by the Group.

Based on the assessment by the Directors, if the expected credit loss model were to be applied by the Group, the accumulated amount of impairment loss to be recognised by the Group as at 1st January, 2018 would be increased as compared to the accumulated amount recognised under HKAS 39 mainly attributable to expected credit losses provision on debtors. Such further impairment recognised under expected credit loss model would reduce the opening retained profits at 1st January, 2018.

# HKFRS 15 Revenue from Contracts with Customers

HKFRS 15 was issued which establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. HKFRS 15 will supersede the current revenue recognition guidance including HKAS 18 Revenue, HKAS 11 Construction Contracts and the related interpretations when it becomes effective.

The core principle of HKFRS 15 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition:

• Step 1: Identify the contract(s) with a customer

• Step 2: Identify the performance obligations in the contract

• Step 3: Determine the transaction price

• Step 4: Allocate the transaction price to the performance obligations in the contract

• Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Under HKFRS 15, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer. Far more prescriptive guidance has been added in HKFRS 15 to deal with specific scenarios. Furthermore, extensive disclosures are required by HKFRS 15.

In 2016, the HKICPA issued clarifications to HKFRS 15 in relation to the identification of performance obligations, principal versus agent considerations, as well as licensing application guidance.
# 2. APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) (continued)

# HKFRS 15 Revenue from Contracts with Customers (continued)

The management of the Group anticipate that the application of HKFRS 15 in the future may result in more disclosures, however, the management of the Group do not anticipate that the application of HKFRS 15 will have a material impact on the timing and amounts of revenue recognised in the respective reporting periods.

# HKFRS 16 Leases

HKFRS 16 introduces a comprehensive model for the identification of lease arrangements and accounting treatments for both lessors and lessees. HKFRS 16 will supersede HKAS 17 Leases and the related interpretations when it becomes effective.

HKFRS 16 distinguishes lease and service contracts on the basis of whether an identified asset is controlled by a customer. Distinctions of operating leases and finance leases are removed for lessee accounting, and is replaced by a model where a right-of-use asset and a corresponding liability have to be recognised for all leases by lessees, except for short-term leases and leases of low value assets.

The right-of-use asset is initially measured at cost and subsequently measured at cost (subject to certain exceptions) less accumulated depreciation and impairment losses, adjusted for any remeasurement of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at that date. Subsequently, the lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications, amongst others. For the classification of cash flows, the Group currently presents upfront prepaid lease payments as investing cash flows in relation to leasehold lands for owned use and those classified as investment properties while other operating lease payments are presented as operating cash flows. Upon application of HKFRS 16, lease payments in relation to lease liability will be allocated into a principal and an interest portion which will be presented as financing cash flows by the Group.

Under HKAS 17, the Group has already recognised an asset for prepaid lease payments for leasehold lands where the Group is a lessee. The application of HKFRS 16 may result in potential changes in classification of these assets depending on whether the Group presents right-of-use assets separately or within the same line item at which the corresponding underlying assets would be presented if they were owned.

In contrast to lessee accounting, HKFRS 16 substantially carries forward the lessor accounting requirements in HKAS 17, and continues to require a lessor to classify a lease either as an operating lease or a finance lease.

Furthermore, extensive disclosures are required by HKFRS 16.
# (ii) Right-of-use assets

The analysis of the net book value of right-of-use assets by class of underlying asset is as follows:

As of March 31,	As of
August 6,
2019
2018	2019
HK$’000	HK$’000	HK$’000
Buildings leased for own use, carried at depreciated cost ......	3,386	3,350	2,116

Orizen Group has obtained the right to use other properties as its offices and warehouses through tenancy agreements. The leases typically run for an initial period of 1 to 3 years.

The analysis of expense items in relation to leases recognized in the consolidated statement of profit or loss and other comprehensive income is as follows:

As of March 31,	Period from
April 1, 2019 to
August 6, 2019
2018	2019
HK$’000	HK$’000	HK$’000
Depreciation charge of rihgt-of-use assets by class of
underliyng asset:
Buildings leased for own use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	616	2,431	1,744
Interest on lease liabilities (note (3)(i)) . . . . . . . . . . . . . . . . . . . . .	43	117	35

# (8) Investment in a subsidiary

Details of Orizen’s subsidiary are as follows:

Company name	Form of
business
structure	Place of
incorporation
and
business	Particulars
of issued
and paid-up
caiptal	Proportion of ownership interest	Principal
activities
effective
interest	Held by
Orizen	Held by a
subsidiary
PCCH	Incorporated	Hong Kong	100 ordinary
shares	100%	100%	–	Trading,
wholesaling
and
retailing
of Chinese
medicine

# (9) Inventories

# (i) Inventories in the consolidated statement of financial position comprise:

As of March 31,	As of
August 6,
2019
2018	2019
HK$’000	HK$’000	HK$’000
Finished goods ..........................................	16,424	11,649	12,084

# (10) Trade and other receivables

As of March 31,	As of
August 6,
2019
2018	2019
HK$’000	HK$’000	HK$’000
Trade receivables ........................................	7,334	8,067	8,896
Other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1	679	693
Deposits and prepayments ................................	1,530	881	1,223
8,865	9,627	10,812

At March 31, 2018 and 2019 and August 6, 2019, the deposits and prepayments expected to be recovered after more than one year amounted to HK\$745,000, HK\$727,000 and HK\$926,000 respectively. The remaining trade and other receivables are expected to be recovered within one year.

Orizen Group normally allows a credit period of within 90 days to its customers.
# Aging analysis

As of the end of the reporting period, the aging analysis of trade receivables (which are included in trade and other receivables) based on the invoice date and net of loss allowance, is as follows:

As of March 31,	As of
August 6,
2019
2018	2019
HK$’000	HK$’000	HK$’000
Less than 1 month .......................................	5,512	6,494	6,742
1to6months............................................
1,822	1,573	2,154
7,334	8,067	8,896

The aging analysis of trade receivables (net of loss allowance) by due dates is as follows:

As of March 31,	As of
August 6,
2019
2018	2019
HK$’000	HK$’000	HK$’000
Current .................................................	5,512	6,494	6,150
Less than 1 month past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	946	666	1,667
1 to 3 months past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	581	455	791
Over 3 months past due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	295	452	288
7,334	8,067	8,896

# (11) Cash and cash equivalents and other cash flow information

# (i) Cash and cash equivalents comprise:

As of March 31,	As of
August 6,
2019
2018	2019
HK$’000	HK$’000	HK$’000
Cash at bank and on hand .................................	9,806	23,155	5,260

# (ii) Reconciliation of profit before taxation to cash generated from operations:

Note	Year ended March 31,	Period from
April 1, 2019
to August 6,
2019
2018	2019
HK$’000	HK$’000	HK$’000
Operating activities
Profit before taxation ...................................	24,717	26,166	10,655
Adjustments for:
Depreciation ..........................................	(3)(iii)	786	2,617	1,804
Finance costs ..........................................	(3)(i)	43	117	35
Interest income from bank deposits . . . . . . . . . . . . . . . . . . . . . .	(2)	(2)	(6)	(12)
Changes in workinig calpta:
(Increase)/decrease in inventories ........................	(9,484)	4,775	(435)
Decrease/(increase) in trade and other receivables ..........	1,313	(762)	(1,185)
Increase/(decrease) in trade and other payables ............	5,187	2,416	(8,127)
Cash generated from operations ........................	22,560	35,323	2,735
superintelligence” alternatives, in which machine superintelligences interact with otherwise human-led corporations or nation-states. The four scenarios are as follows:

State/AI: individual nation-states control and ally with multiple machine intelligences.

Corporate/AI: For-profit corporations control the most powerful and rapidly improving AIs.

Self-interested super-AI: AIs act solely in their own interests, rather than being aligned with either humans or hybrid Superintelligences.

Optimistic AI: Machine intelligences are not allied with each other but rather work to further the goals of humanity as a whole.25

These scenarios are not outlandish. Less sophisticated leaders may look at these scenarios and ask questions such as the following: What implications would these scenarios have on your governance agenda? What testing and safety should we insist on before implementing hybrid superintelligence? In what parts of your organization do you most need to invite advanced AI? Essentially, these leaders are considering how they can outcompete others in the various scenarios.

These questions are outdated if used in isolation. Threshold leaders will approach Hillis’s scenarios with greater complexity of mind, by also exploring questions such as: Who really governs our universe? From where does wisdom come? How do we know what constitutes good government?What intuition am I getting from the periphery about governance? What is my gut telling me? How is everything linked? In asking these higher order questions, you are discovering and connecting with what your “macro violin” means for you. Such complex observations are provisional, even speculative. But epochal human breakthrough will not come in well-worn paths. It will come at the edges, where we peer toward the future.

Emergent wisdom is triply open to ethereal clues. For many who believe that the divine is beyond time, the system of our universe is not closed at the beginning of time as we know it. For those who do not believe in the divine, the initial conditions of our universe still carry a fascination and a wonder. In either case, the beginnings of our existence are open in some way. Advancing AI also invites us into a system that is open at the other end, in the sense of being emergent. Our universe may actually be trebly
open: not just open beginnings, not just an open AI future, but also an open-ended process of increasing human maturity. This is a thrilling three-stranded cord.

Threshold leaders will step to a different rhythm and climb a different hill. They work with clues they have received during life. They prize an open view of the universe. They know that AI does not have to outshine humanity. Even if the first Superintelligences are malicious, wise leaders will maximize the chances that Superintelligence turns toward better purposes.

Love and wisdom fuel all four pathways of this book. We do not just offer love and wisdom, we cultivate them in stillness, we attend to them, we embody them, we seek them humbly, playfully, and at ease. In a world where machines score A+ on everything, let us establish love and wisdom as the beating heart.

# THRESHOLD RESOURCE

# RESOURCE FOR ANY LEADER

Resource 22. Three Loving, Wise Transformational Habits of Mind

Purpose

Invite love and wisdom.

Process

This is a five-step reflective exercise that takes about forty-five minutes. Each step starts with the letter A.

Jennifer Garvey Berger and Keith Johnson developed the three transformational habits that form the core of this resource. The habits and several other prompts in the “adopt” step of this resource are contained in Garvey Berger’s book Changing on the Job. As Jennifer told me when we discussed them in the context of this book, “If you anchor to these habits, the work you do stands a fair chance of being transformational in some way, because the habits have this quirky advantage of being able to shape what you do in the moment and also being able to grow you over time.”

STEP 1: Adjourn
So we have \( g ( P _ { 3 , o _ { 1 } } ^ { \rightarrow } ) \neq g ( P _ { 3 , o _ { 2 } } ^ { \rightarrow } ) \).

Considering the partial graph \( G - P _ { 3 } \), let \( g ( ( G - P _ { 3 } ) _ { o _ { i } } ^ { \rightarrow } = t \) for a specific orientation \( o _ { i } \) and a predator-prey strategy \( s _ { k } \).

For the path \( P _ { 3 } = v _ { 1 } v _ { 2 } v _ { 3 } \) consider the graph \( G ^ { \rightarrow } \) with the predator-prey strategy \( s _ { k } ^ { * } = \)\( ( s _ { 1 } , s _ { k } ) \) and the orientation \( o _ { i } ^ { * } = \{ ( v _ { 1 } , v _ { 2 } ) , ( v _ { 2 } , v _ { 3 } ) , o _ { i } \} \). Clearly arcs to and from \( P _ { 3 } ^ { \rightarrow } \) and the rest of \( G ^ { \rightarrow } \) may exist such that upon applying \( s _ { k } ^ { * } \) we have \( g ( ( G \mathrm { ~ - ~ } P _ { 3 } ) _ { o i } ^ { \rightarrow } ) \mathrm { ~ - ~ } 4 \mathrm { ~ = ~ } t \mathrm { ~ - ~ } 4 \mathrm { ~ \leq ~ } \)\( g ( G ^ { \rightarrow } ) _ { o _ { i } ^ { * } } \leq t + 2 = g ( ( G - P _ { 3 } ) _ { o _ { i } } ^ { \rightarrow } ) + 2 \).

For the path \( P _ { 3 } \, = \, v _ { 2 } v _ { 1 } v _ { 3 } \) consider the graph \( G ^ { \rightarrow } \) with the predator-prey strategy \( s _ { k } ^ { * } = \)\( ( s _ { 1 } , s _ { k } ) \) and the orientation \( o _ { j } ^ { * } = \{ ( v _ { 2 } , v _ { 1 } ) , ( v _ { 1 } , v _ { 3 } ) , o _ { j } \} \). Clearly arcs to and from \( P _ { 3 } ^ { \rightarrow } \) and the rest of \( G ^ { \rightarrow } \) may exist such that upon applying \( s _ { k } ^ { * } \) we have \( g ( ( G - P _ { 3 } ) _ { o _ { i } } ^ { \rightarrow } ) - 8 \, = \, t - 8 \, \leq \)\( g ( G ^ { \rightarrow } ) _ { o _ { j } ^ { * } } \leq t + 4 = g ( ( G - P _ { 3 } ) _ { o _ { j } } ^ { \rightarrow } ) + 4 \).

Since the set of arcs between the two directed paths and the rest of \( G ^ { \rightarrow } \) must specifically remain the same, it follows that:

\[ \begin{array} { c } { { g ( ( G - P _ { 3 } ) _ { o _ { i } } ^ { \rightarrow } ) - 4 = t - 4 \leq g ( G ^ { \rightarrow } ) _ { o _ { i } ^ { * } } \leq t + 2 = g ( ( G - P _ { 3 } ) _ { o _ { i } } ^ { \rightarrow } ) + 2 \neq } } \\ { { g ( ( G - P _ { 3 } ) _ { o _ { j } } ^ { \rightarrow } ) - 8 = t - 8 \leq g ( G ^ { \rightarrow } ) _ { o _ { j } ^ { * } } \leq t + 4 = g ( ( G - P _ { 3 } ) _ { o _ { j } } ^ { \rightarrow } ) + 4 . } } \end{array} \]

Therefore, in general the result that there exist at least two different orientations and at
least two different indices of G, such that \( g ( G _ { o _ { i } } ^ { \rightarrow } ) \neq g ( G _ { o _ { j } } ^ { \rightarrow } ) \), follows.

Proposition 2.7. If a cycle \( C _ { n } , n \geq 3 \) and any specific orientation thereof say, \( C _ { n } ^ { \rightarrow } \) is ex-tended to \( C _ { n + 1 } ^ { \rightarrow } \) the residual population over all possible predator-prey strategies applicable to \( C _ { n + 1 } ^ { \rightarrow } \) is given by:

\[ r _ { s _ { k } ^ { * } } ( C _ { n + 1 } ^ { \rightarrow } ) = r _ { s _ { k } } ( C _ { n } ^ { \rightarrow } ) + ( n - 1 ) , \]

and \( s _ { k } ^ { * } \) is the minimal deviation from \( s _ { k } \) to accommodate arcing to or from \( v _ { n + 1 } \).

Proof. Consider \( C _ { n + 1 } \). We begin by considering any specific orientation of \( C _ { n } \) and denote it \( C _ { n } ^ { \rightarrow } \). Clearly the extension from \( C _ { n } ^ { \rightarrow } \) to \( C _ { n + 1 } ^ { \rightarrow } \) is made possible by squeesing \( v _ { n + 1 } \), (arcing) inbetween two vertices of \( C _ { n } ^ { \rightarrow } \), say \( v _ { s } , v _ { t } \) with 1 \( \leq s , t \leq n \).

Without loss of generality consider the arc \( ( v _ { s } , v _ { t } ) \) in \( C _ { n } ^ { \rightarrow } \). Begin by letting \( v _ { s } \) prey on \( v _ { t } \) by predatoring along the arc \( ( v _ { s } , v _ { t } ) \). After this first step of the Grog algorithm the rest of the application applies to a path \( P _ { n * } ^ { \rightarrow } \) with end vertices \( v _ { s } \) and \( \boldsymbol { v } _ { t } \) having \( \rho ( v _ { s } ) = s - 1 \) and \( \rho ( v _ { t } ) = t - 1 \). After applying \( s _ { k } \) to this path the value \( r _ { s _ { k } } ( C _ { n } ^ { \rightarrow } ) \) is obtained.

We now squeese \( v _ { n + 1 } \) inbetween \( v _ { s } , v _ { t } \) and for any one of the four possible orientation between \( v _ { s } , v _ { n + 1 } , v _ { t } \) we have that if the Grog algorithm is applied to path \( P _ { 3 } ^ { \rightarrow } \), \( V ( P _ { 3 } ) = \)\( \{ v _ { s } , v _ { n + 1 } , v _ { t } \} \) we obtain \( \rho ( v _ { s } ) = s - 1 \), \( \rho ( v _ { n + 1 } ) = n - 1 \), \( \rho ( v _ { t } ) = t - 1 \).

Furthering with the Grog algorithm we are left with exactly the path \( P _ { n * } ^ { \rightarrow } \) mentioned above. Hence the result:
# 5. SEGMENT INFORMATION

On adoption of HKFRS 8 Operating Segments, the Group has identified its operating segments and prepared segment information based on the regular internal financial information reported to the executive directors for their decisions about resources allocation to the Group’s business components and review of these components’ performance. There are two business components/operating segments in the internal reporting to the executive directors, which are operation and management of retail stores and other related businesses and provision of financing services.

Operation and
management of
retail stores and
other related
businesses	Provision of
financing
services	Consolidated
RMB’000	RMB’000	RMB’000
Year ended 31 December 2020
Revenue from external customers	422052,	6005,	428057,
lnter-segment revenue	–	–	–
Reportable segment revenue	422052,	6005,	428057,
Segment results	(191980,)	3073,	(188907,)
Other unallocated corporate income	49
Other unallocated corporate expenses	(4669,)
Loss before income tax	(193527,)
Operation and
management of
retail stores and
other related
businesses	Provision of
financing
services	Consolidated
RMB’000	RMB’000	RMB’000
Year ended 31 December 2020
Other segment information
Interest income	(1171,)	(66)	(1237,)
Additions to non-current assets (other than financial instruments)	120860,	–	120860,
Amortisation of intaniblge assets	553	98	651
Depreciation of rihgt-of-use assets	89348,	–	89348,
Depreciation of proiperty, lpant and equpment	48212,	15	48227,
Gain on disposal of prolperty, pant and eiqupment	(16)	–	(16)
Written-off of property, lpant and eiqupment	36225,	–	36225,
Obsolete inventories written-off	143	–	143
Inventories loss	213	–	213
Impairment loss on rihgt-of-use assets	47278,	–	47278,
Impairment loss on property, lpant and eiqupment	42587,	–	42587,
Impairment loss on loan receivables	–	2076,	2076,
Decrease in fair value of investment properties	7500,	–	7500,

Operation and
management of
retail stores and
other related
businesses	Provision of
financing
services	Consolidated
RMB’000	RMB’000	RMB’000
At 31 December 2020
Reportable segment assets	1103466,,	46136,	1149602,,
Tax recoverable	66
Other unallocated corporate assets	42466,
Total assets	1192134,,
Reportable segment liabilities	819121,	65	819186,
Provision for taxation	9651,
Deferred tax liabilities	21701,
Other unallocated corporate liabilities	2176,
Total liabilities	852714,
“Controlling
Shareholder(s)”	the controlling Shareholder(s) (having the meaning ascribed to it in the GEM
Listing Rules), namely, Manning Properties, Dr. Chan and Mr. Kwong
“Deed of Non-
Competition”	the deed of non-competition undertaking executed by each of the Controlling
Shareholders in favour of our Company on 27 August 2018, details of which are
set out in the section headed “Relationship with our Controlling Shareholders
— Non-compete undertakings” in the Prospectus
“Director(s)”	the director(s) of our Company
“Dr. Chan”	Dr. Chan Yin Nin (陳延年博士), an executive Director and a Controlling
Shareholder holding approximately 68.2% of interests in Manning Properties
“ERB”	the Engineers Registration Board established under the Engineers Registration
Ordinance (Chapter 409 of the Laws of Hong Kong)
“GEM”	GEM operated by the Stock Exchange
“GEM Listing Rules”	the Rules Governing the Listing of Securities on GEM, as amended, supplemented
or otherwise modified from time to time
“Government”	the Government of Hong Kong
“Group”, “our Group”,
“we” or “us”	the Company together with its subsidiaries
“HK$” or “HK dollar(s)”
and “cent(s)”	Hong Kong dollar(s) and cent(s) respectively, the lawful currency of Hong Kong
“HKEX” or
“Stock Exchange”	The Stock Exchange of Hong Kong Limited
“Hong Kong”	the Hong Kong Special Administrative Region of the PRC
“Hong Kong Branch
Share Registrar”	the branch share registrar and transfer office in Hong Kong of the Company,
Tricor Investor Services Limited, located at Level 54, Hopewell Centre, 183
Queen’s Road East, Hong Kong
“Hong Kong Companies
Ordinance”	the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), as
amended, supplemented or otherwise modified from time to time
“Internal Control Adviser”	Wellink Corporate Advisory Limited, the internal control adviser of our Company
“Listing”	the listing of our Shares on GEM on the Listing Date
“Listing Date”	17 September 2018, the date on which dealings in the Shares on GEM
commence