| --- | --- | --- | |-------|-------|--------------------------------------------------------| | | | | | | | | | | | | | | | 弘海GRANDOCEAN | | | | 0065.HK Grand Ocean Advanced Resources Company Limited | 弘 海 高 新 資 源 有 限 公 司 於開曼群島註冊咸立之有限公司 股份代號：65 中期報告 2024 目錄 財務摘要 2 管理層討論及分析 3 簡明綜合損益表 19 簡明綜合其他全面收益表 20 簡明綜合財務狀況表 21 簡明綜合權益變動表 23 簡明綜合現金流量表 24 簡明綜合財務報表附註 25 其他資料 36 公司資料 41 釋義 43 財務摘要 截至六月三十日止六個月 | --- | --- | --- | |--------------|--------------|-------| | | | | | 二零二四年 | 二零二三年 | | | 千港元 | 千港元 | 變動 | | （未經審核） | ...

Financial Performance - For the six months ended June 30, 2024, revenue was approximately HKD 88,602,000, an increase of about 8.4% compared to HKD 81,743,000 for the same period in 2023[1] - Gross profit for the same period was approximately HKD 38,107,000, representing a 21.3% increase from HKD 31,416,000 in the prior year, with a gross margin of approximately 43.0% compared to 38.4% in 2023[1] - The loss for the six months ended June 30, 2024, was approximately HKD 7,188,000, significantly reduced from a loss of HKD 27,764,000 in the same period of 2023[1] - Loss attributable to owners of the company was approximately HKD 9,273,000, down from HKD 18,231,000 in the previous year[1] - The total comprehensive loss for the period was approximately HKD 10,614,000, compared to HKD 33,447,000 in the same period of 2023[3] - The basic and diluted loss per share for the six months ended June 30, 2024, was HKD 0.5, improved from HKD 1.2 in the previous year[2] - For the six months ended June 30, 2024, the company reported a basic loss attributable to owners of approximately HKD 9,273,000, compared to a loss of HKD 18,231,000 for the same period in 2023, representing a 49% improvement in losses[21] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to approximately HKD 208,629,000, an increase from HKD 167,364,000 as of December 31, 2023[4] - Current assets totaled approximately HKD 146,917,000 as of June 30, 2024, compared to HKD 139,861,000 at the end of 2023[4] - The company's net assets attributable to owners increased to approximately HKD 186,466,000 from HKD 138,598,000 as of December 31, 2023[5] - The company has no borrowings as of June 30, 2024, maintaining a zero debt ratio[50] - The current ratio of the group is approximately 1.64, indicating a stable liquidity position[50] - The refundable earnest money balance as of June 30, 2024, is approximately HKD 13,854,000, down from HKD 27,283,000 as of December 31, 2023[51] Revenue Sources - The group reported coal sales revenue of approximately HKD 88,602,000 for the six months ended June 30, 2024, compared to HKD 81,743,000 for the same period in 2023, representing an increase of 10.7%[12] - Revenue from external customers in China (excluding Hong Kong) was HKD 88,602,000 for the six months ended June 30, 2024, up from HKD 81,743,000 in the same period of 2023[14] - The group had five major customers contributing to over 10% of total revenue, with the largest customer generating HKD 22,231,000 in the six months ended June 30, 2024[15] Operational Highlights - The group has only one reportable operating segment, which is the coal mining business, with no other segments to consolidate[13] - The company produced approximately 447,000 tons of coal and sold about 434,000 tons during the six months ended June 30, 2024, compared to 450,000 tons produced and 408,000 tons sold in the same period in 2023[34] - The coal mining segment recorded a post-tax profit of approximately HKD 4,951,000 for the six months ended June 30, 2024, compared to a post-tax loss of HKD 21,514,000 for the same period in 2023[33] Expenses and Costs - Sales and distribution expenses for the six months ending June 30, 2024, amounted to approximately HKD 1,881,000, a slight increase of about HKD 26,000 compared to HKD 1,855,000 for the same period in 2023[39] - Administrative expenses increased to approximately HKD 44,678,000 for the six months ending June 30, 2024, up by about HKD 10,710,000 from HKD 33,968,000 in the prior year[40] - Employee costs, including director remuneration, amounted to approximately HKD 39,240,000 for the six months ended June 30, 2024, compared to HKD 35,331,000 for the same period in 2023, reflecting an increase of about 5.4%[57] Investments and Acquisitions - The company has paid a refundable earnest money of approximately HKD 32,219,000 as part of a memorandum of understanding for an investment in a subsidiary[27] - The company has also paid an earnest money of approximately HKD 21,480,000 related to a purchase agreement for acquiring shares in a subsidiary[28] - The company agreed to acquire 52% of Taishan Jiujiu 520 shares for RMB 24,800,000 (approximately HKD 26,634,000) as part of a revised agreement[32] - A memorandum of understanding was signed for a potential investment in a copper mine in Laos, with a refundable earnest money of RMB 30,000,000 (approximately HKD 32,219,000) paid[45] - The group has completed the acquisition of copper mine equity in Laos, expanding its business scope into Southeast Asia's mining sector[58] Regulatory and Compliance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The company did not recognize any tax provision for Hong Kong profits tax for the six months ended June 30, 2024, as there were no taxable profits generated[8] - The group has no significant contingent liabilities as of June 30, 2024[55] - The group has not engaged in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2024[53] Future Outlook - The company plans to evaluate technical requirements and ongoing capital investments for its coal mining operations in response to new industry policies in the second half of 2024[35] - The company’s coal mining operations face increased operational funding pressure due to new policies aimed at enhancing safety and green mining practices[35] - The company aims to implement cost-saving measures to improve financial performance amid rising administrative expenses[40] - The group is actively seeking business and investment opportunities in the mining and energy sectors in other countries to diversify its business portfolio[58]

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 187,960,000, a decrease of 1.7% compared to HKD 191,180,000 in 2022[145]. - Gross profit decreased by 19.7% to HKD 65,211,000 from HKD 81,166,000 in the previous year[145]. - The company reported a loss attributable to shareholders of HKD 23,734,000, a decline of 331.8% compared to a profit of HKD 10,237,000 in 2022[145]. - Basic loss per share was HKD 1.46, compared to earnings of HKD 0.68 per share in the prior year, representing a decrease of 314.7%[145]. - The loss for the year ended December 31, 2023, was approximately HKD 33,610,000, compared to a profit of approximately HKD 26,100,000 for the year ended December 31, 2022[152]. - The coal mining segment recorded a post-tax loss of approximately HKD 22,170,000 for the year ended December 31, 2023, compared to a post-tax profit of approximately HKD 36,706,000 for the year ended December 31, 2022[153]. - The company produced approximately 904,000 tons of coal and sold approximately 901,000 tons during the year ended December 31, 2023, compared to 909,000 tons produced and 910,000 tons sold in 2022[154]. - The company incurred a one-time expense of approximately HKD 22,188,000 related to a settlement agreement involving its indirect non-wholly owned subsidiary[152]. Assets and Liabilities - Total assets increased slightly by 0.6% to HKD 307,225,000 from HKD 305,350,000 in 2022[145]. - Total liabilities decreased by 2.0% to HKD 109,737,000 from HKD 111,940,000 in the previous year[145]. - Cash and bank balances decreased by 18.8% to HKD 95,359,000 from HKD 117,494,000 in 2022[145]. - Equity attributable to shareholders increased by 12.6% to HKD 138,598,000 from HKD 123,125,000 in the prior year[145]. - Current ratio improved to 1.56 from 1.52 in 2022, reflecting a 2.6% increase[145]. - Total assets as of December 31, 2023, were approximately HKD 307,225,000, with total liabilities of approximately HKD 109,737,000, resulting in a net asset value of approximately HKD 197,488,000[149]. - The group had no borrowings as of December 31, 2023, compared to borrowings of approximately HKD 39,582,000 in 2022[185]. Corporate Governance - The independent auditor received approximately HKD 1,350,000 for audit services for the year ending December 31, 2023, compared to HKD 1,300,000 for 2022[21]. - The audit committee held three meetings during the year ending December 31, 2023, to review financial performance and compliance procedures[13]. - The company has established an audit committee to oversee financial reporting and risk management systems[11]. - The board of directors has complied with the corporate governance code regarding continuous professional development[16]. - The independent non-executive directors' independence was evaluated by the nomination committee during the year[5]. - The company has maintained a 100% attendance rate for key committee meetings by its members[6]. - The audit committee is responsible for reviewing the appropriateness of the group's accounting policies and ensuring compliance with accounting standards[28]. - The company has not established an internal audit department, opting instead to engage external independent professionals for internal audit functions when necessary[30]. Sustainability and Environmental Responsibility - The company is committed to sustainable development in coal mining, focusing on reducing emissions and effective use of energy and water resources[60]. - The coal mining operations are strategically located in Inner Mongolia, which has one of the richest lignite reserves in China[44]. - The company emphasizes the importance of social and environmental responsibility as a core value of its operations[44]. - The environmental, social, and governance (ESG) report covers the period from January 1, 2023, to December 31, 2023[48]. - The company has established a sustainable development project team to manage and monitor sustainability performance and goals[60]. - Stakeholder engagement is crucial for the company's long-term growth and success, with a wide network including employees, customers, suppliers, investors, and local communities[61]. - The company aims to enhance transparency and sustainability in its operations to address industrial pollution and climate change[44]. - The ESG report is prepared according to the guidelines set by the Hong Kong Stock Exchange, ensuring consistency and balance in reporting[45]. - The company has implemented various environmental policies to mitigate potential adverse impacts on the environment[51]. - The governance structure for sustainability matters is overseen by the board of directors, ensuring integration with the company's strategy[60]. - The company has maintained close communication with stakeholders since its listing on the stock exchange, focusing on significant climate-related issues and extreme weather during the reporting period[66]. - The company is committed to sustainable development in its coal mining operations, adhering to all applicable environmental laws and regulations in China[73]. - The company aims to reduce emissions, effectively use energy and water resources, and conserve the ecological environment as part of its environmental commitment[74]. - The management team is responsible for implementing and monitoring the environmental management plan, ensuring compliance with relevant environmental laws[79]. - The company has identified key environmental issues, including greenhouse gas emissions and energy consumption, as high priority for both stakeholders and the business[70]. - The company regularly monitors its coal production activities to ensure compliance with national standards, including noise, water, dust, and ecological restoration[78]. - The company has established a two-dimensional importance matrix to identify high-priority issues based on stakeholder feedback and management perspectives[70]. - The company is focused on enhancing stakeholder communication and improving stakeholder value in its future strategies[75]. - The company is dedicated to providing safe products while protecting the environment and local communities in coal production areas[78]. - The company has committed to a green corporate culture, involving geological and mining experts in decision-making processes to achieve environmental goals[73]. Energy Consumption and Emissions - Total direct energy consumption amounted to 3,258 MWh, with diesel, gasoline, and methanol consumption at 2,265 MWh, 911 MWh, and 82 MWh respectively[90]. - Total indirect energy consumption was 13,548 MWh, leading to a total energy consumption of 16,806 MWh[90]. - Water usage increased to 102,090 cubic meters in 2023 from 99,241 cubic meters in 2022, with a density of 0.113 cubic meters per ton of coal produced[96]. - Greenhouse gas emissions totaled 9,159.3 tons of CO2 equivalent, with an intensity of 20.0 tons per employee[104]. - The company aims to reduce emissions by 15% by 2030 based on 2021 levels, focusing on renewable energy procurement[104]. - The company has implemented noise management plans to mitigate the impact of operations on nearby communities[105]. - The company has established a water conservation management solution to enhance water efficiency and monitor water quality[92]. - The company utilizes mine water to reduce freshwater usage, applying treatment methods for various operational needs[95]. - The company has not reported any significant surface subsidence during the reporting period, maintaining compliance with environmental management principles[97]. - The company prioritizes the use of high-efficiency machinery and equipment to reduce energy consumption[86]. - The company generated approximately 107.4 tons of non-hazardous waste during the reporting period, an increase from 104.4 tons in the previous fiscal year, with a waste density of 0.23 tons per employee[110]. - The total greenhouse gas emissions amounted to 9,159.3 tons, up from 7,956.6 tons in the previous year, with a per employee density of 20.0 tons[123]. - Nitrogen oxides (NOx) emissions increased to 74.9 kg from 66.1 kg year-over-year, while sulfur oxides (SOx) emissions rose to 4.3 kg from 3.8 kg[121]. - The company aims to achieve a 50% reduction in nitrogen oxides emissions by 2050[118]. - The company has implemented measures to reduce energy consumption and greenhouse gas emissions, including upgrading energy sources to methanol instead of liquefied petroleum gas[118]. - The company has established a dust management plan to mitigate coal dust emissions, which pose health risks and potential fire hazards[115]. - The company has adopted resource management plans to ensure effective use of electricity and water resources in coal mining operations[111]. - The company has conducted regular reviews to ensure operational efficiency and compliance with energy-saving policies[114]. - The company has constructed facilities to store non-flammable coal and equipment to reduce air pollution[117]. - The company has implemented a speed limit for heavy machinery and light trucks during coal transportation to control dust emissions[117]. Future Strategies and Investments - The company aims to enhance profitability and geographic diversity while exploring new business and investment opportunities in the mining and energy sectors[139]. - The company expects the annual coal output from its Inner Mongolia coal mine to remain at approximately 900,000 tons[158]. - The average selling price per ton of coal for 2023 is projected to be RMB 178, increasing to RMB 188 in 2024, with inflation rate assumptions of 2.5%[160]. - The group aims to diversify its business portfolio and increase geographical diversity to enhance shareholder value in the future[198]. - The group entered into a memorandum of understanding for a proposed investment in Laos, paying a refundable earnest money of RMB 30,000,000 (approximately HKD 33,000,000)[193]. - The company completed a placement of 322,692,000 new shares at a price of HKD 0.185 per share, raising approximately HKD 59,101,000 net of expenses[197]. - Approximately HKD 14,000,000 of the net proceeds from the share placement will be used to enhance existing coal mining machinery and systems[198].

Financial Performance - For the year ended December 31, 2023, revenue was approximately HKD 187,960,000, a decrease of about HKD 3,220,000 or approximately 1.7% compared to last year's revenue of HKD 191,180,000[4] - Gross profit for the year was approximately HKD 65,211,000, down by about HKD 15,955,000 or approximately 19.7% from last year's gross profit of HKD 81,166,000, resulting in a gross margin of approximately 34.7% compared to 42.5% last year[4] - The company reported a loss of approximately HKD 33,610,000 for the year, compared to a profit of approximately HKD 26,100,000 in the previous year[4] - The loss attributable to the company's owners was approximately HKD 23,734,000, while last year's profit attributable to owners was approximately HKD 10,237,000[4] - The company reported a total comprehensive loss of approximately HKD 37,144,000 for the year, compared to a total comprehensive income of HKD 13,893,000 in the previous year[6] - The basic and diluted loss per share for the year was HKD 1.46, compared to earnings per share of HKD 0.68 in the previous year[5] - The group recorded a loss of approximately HKD 33,610,000 for the year ended December 31, 2023, compared to a profit of approximately HKD 26,100,000 for the year ended December 31, 2022[65] Assets and Liabilities - Total non-current assets as of December 31, 2023, were approximately HKD 167,364,000, slightly up from HKD 166,967,000 in the previous year[8] - Current assets totaled approximately HKD 139,861,000, compared to HKD 138,383,000 in the previous year, with cash and cash equivalents at HKD 95,359,000 down from HKD 117,494,000[8] - Total liabilities decreased to approximately HKD 109,737,000 from HKD 111,940,000 in the previous year, resulting in a net asset value of approximately HKD 197,488,000 compared to HKD 193,410,000 last year[10] - Trade receivables remained stable at HKD 1,216,000 for 2023, compared to HKD 1,243,000 in 2022, with a corresponding impairment loss[40] - As of December 31, 2023, the company reported other receivables of HKD 28,371,000, including a refundable deposit of approximately HKD 27,283,000 paid to a potential coal supplier[41] - The group had no assets pledged as collateral as of December 31, 2023, compared to the previous year when shares of two wholly-owned subsidiaries were pledged[77] Cash Flow and Financing - The group had no borrowings as of December 31, 2023, compared to borrowings of approximately HKD 39,582,000 in 2022[79] - The capital debt ratio was zero as of December 31, 2023, down from approximately 0.20 in 2022[79] - The current ratio was approximately 1.56 as of December 31, 2023, compared to 1.52 in 2022[79] - The total amount raised from the placement of new shares was approximately HKD 59,698,000, with a net amount of approximately HKD 59,101,000 after issuance costs[48] - The company raised approximately HKD 59,101,000 from the placement of 322,692,000 new shares at a price of HKD 0.185 per share[87] - The net proceeds from the placement will be used for potential investments in a copper mine in Laos (approximately HKD 35 million), enhancing existing mining machinery (approximately HKD 14 million), and general working capital (approximately HKD 10.1 million)[88] Operational Highlights - The group's confirmed coal sales for the year amounted to approximately HKD 187,960,000, a decrease from HKD 191,180,000 in the previous year, representing a decline of about 1.14%[21] - The coal mining segment recorded a post-tax loss of approximately HKD 22,170,000 for the year ended December 31, 2023, compared to a post-tax profit of approximately HKD 36,706,000 for the year ended December 31, 2022[51] - The company produced approximately 904,000 tons of coal for the year ended December 31, 2023, slightly down from 909,000 tons in 2022, with sales of approximately 901,000 tons compared to 910,000 tons in 2022[52] - The average selling price per ton of coal is projected to be RMB 178 for 2023 and RMB 188 for 2024, with an inflation rate of 2.5% applied thereafter[56] - The company anticipates maintaining an annual coal output of approximately 900,000 tons from its Inner Mongolia coal mining area[54] Expenses and Costs - The cost of sold inventory increased to HKD 122,749,000 from HKD 110,014,000, representing an increase of about 11.6%[32] - The cost of sold inventory, including employee costs and depreciation, amounted to approximately HKD 50,514,000, an increase from HKD 45,157,000 in the previous year[33] - Employee costs, including directors' remuneration, were approximately HKD 78,716,000 for the year ended December 31, 2023, compared to HKD 83,194,000 in 2022[83] - Administrative expenses for the year ended December 31, 2023, were approximately HKD 72,986,000, an increase of about HKD 826,000 from HKD 72,160,000 for the year ended December 31, 2022[59] - Sales and distribution expenses amounted to approximately HKD 4,548,000 for the year ended December 31, 2023, a slight decrease from approximately HKD 4,561,000 in 2022[58] Regulatory and Compliance - The board of directors did not recommend the payment of any final dividend for the year ended December 31, 2023[4] - The company did not recommend the distribution of any final dividend for the year ending December 31, 2023, consistent with the previous year[36] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the annual performance for the year ending December 31, 2023, confirming compliance with appropriate accounting policies[97] - The independent auditor, Hong Kong Lixin Dehao Certified Public Accountants Limited, confirmed that the financial figures for the year ending December 31, 2023, align with the audited consolidated financial statements[98] Future Outlook - The company aims to diversify its business portfolio and increase geographical diversity to enhance shareholder value amid challenges in the coal mining sector[89] - The management noted that recent fluctuations in the RMB to HKD exchange rate are not expected to have a significant adverse impact on the group's financial position[78]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Grand Ocean Advanced Resources Company Limited 弘海高新資源有限公司 （於開曼群島註冊成立之有限公司） （股份代號：65） 截至二零二三年六月三十日止六個月之 未經審核中期業績公告 財務摘要 (1) 截至二零二三年六月三十日止六個月，收入為約81,743,000港元，較二零二 二年同期減少約22.3%。 (2) 截至二零二三年六月三十日止六個月，毛利為約31,416,000港元，較二零二 二年同期減少約38.0%。截至二零二三年六月三十日止六個月之整體毛利 率為約38.4%，而二零二二年同期則為約48.1%。 (3) 截至二零二三年六月三十日止六個月，虧損為約27,764,000港元，而二零二 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Grand Ocean Advanced Resources Company Limited 弘 海 高 新 資 源 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：65） 有關可換股債券所得款項用途之 最新資料 茲提述(i)弘海高新資源有限公司（「本公司」）日期為二零二二年六月二十一日之公告，內 容有關發行可換股債券，及(ii)本公司截至二零二二年十二月三十一日止年度之年報 （「二零二二年年報」）。除文義另有所指外，本公告所用詞彙與二零二二年年報所定義者 具有相同涵義。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Grand Ocean Advanced Resources Company Limited 弘海高新資源有限公司 （於開曼群島註冊成立之有限公司） （股份代號：65） 截至二零二二年十二月三十一日止年度之 全年業績公告 財務摘要 (1) 截至二零二二年十二月三十一日止年度，收入約為191,180,000港元，較去 年的收入約183,016,000港元增加約8,164,000港元或約4.5%。 (2) 截至二零二二年十二月三十一日止年度，毛利約為81,166,000港元，較去 年的毛利約73,865,000港元增加約7,301,000港元或約9.9%。整體毛利率約為 42.5%，而去年約為40.4%。 (3) 截至二零二二年十二月三十一日止年度，溢利約為26,100,000港元，而去年 的溢利約為31,975,000港元。 ...

Financial Performance - The company reported total revenue of approximately HKD 105,220,000 for the six months ended June 30, 2022, representing an increase of 46.8% compared to HKD 71,675,000 for the same period in 2021[10]. - Gross profit for the same period was HKD 50,657,000, a significant increase of 119.0% from HKD 23,128,000 in the previous year[7]. - The company achieved a profit attributable to owners of approximately HKD 7,569,000, compared to a loss of HKD 4,003,000 in the prior year, marking a turnaround of 289.1%[10]. - The profit for the six months ended June 30, 2022, was approximately HKD 16,685,000, compared to a loss of approximately HKD 5,106,000 in the same period of 2021[29]. - The group reported a pre-tax profit for the six months ended June 30, 2022, of approximately HKD 7,569,000, compared to a loss of HKD 4,003,000 for the same period in 2021[94]. Coal Production and Sales - Coal production reached approximately 499,000 tons for the six months ended June 30, 2022, an increase from 451,000 tons in the same period of 2021[12]. - The company sold approximately 495,000 tons of coal during the same period, up from 446,000 tons in the previous year[12]. - The coal mining segment reported a tax-adjusted profit of approximately HKD 21,135,000 for the six months ended June 30, 2022, compared to a tax-adjusted loss of HKD 2,127,000 in the same period of 2021[11]. - For the six months ended June 30, 2022, the group's revenue from coal mining operations was HKD 105,220,000, an increase of 46.7% compared to HKD 71,675,000 for the same period in 2021[79]. Financial Position - Total assets as of June 30, 2022, were HKD 262,834,000, a slight increase of 1.1% from HKD 259,999,000 at the end of 2021[7]. - Total liabilities decreased by 8.9% to HKD 73,999,000 from HKD 81,224,000 in the previous year[7]. - The current ratio improved to 2.37 from 1.79, indicating better short-term financial health[7]. - The total equity of the company increased to HKD 188,835,000 as of June 30, 2022, up from HKD 178,775,000 at the end of 2021, indicating growth in shareholder value[56]. - The total assets less current liabilities increased to HKD 210,334,000 as of June 30, 2022, compared to HKD 201,199,000 at the end of 2021, reflecting improved financial stability[53]. Cash Flow and Financing - For the six months ended June 30, 2022, the company reported a net cash inflow from operating activities of HKD 22,651,000, compared to a net cash outflow of HKD 11,102,000 for the same period in 2021[64]. - The total cash and cash equivalents as of June 30, 2022, increased to HKD 104,558,000, up from HKD 52,738,000 at the end of June 30, 2021[64]. - The company issued convertible bonds totaling HKD 40,000,000 on June 21, 2022, with a net amount of approximately HKD 39,800,000 raised from the issuance[43]. - The company’s financing activities led to a net cash outflow of HKD 257,000, a decrease from HKD 516,000 in the same period last year[64]. Operational Efficiency and Cost Management - Employee costs for the six months ended June 30, 2022, were approximately HKD 30,615,000, slightly down from HKD 31,004,000 in the same period of 2021[40]. - The sales and distribution expenses for the six months ended June 30, 2022, amounted to approximately HKD 1,889,000, an increase of about HKD 116,000 compared to HKD 1,773,000 in the same period of 2021, primarily due to increased coal sales[24]. - The company aims to reduce operational costs by 5% through efficiency improvements in the next fiscal year[140]. Strategic Outlook - The company anticipates maintaining an annual coal output of approximately 900,000 tons for the Inner Mongolia coal mine area 958 project[16]. - The coal production forecast for the fiscal year until the expiration of the business license is set at 900,000 tons, reflecting a slight decrease of approximately 10.3% from the previous estimate of 1,003,600 tons due to current conditions and the impact of COVID-19[23]. - The company plans to implement further cost-saving and capital management measures to strengthen its capital base and improve financial conditions for future opportunities[44]. - The company aims to expand its business scope to benefit from diversified returns, thereby creating more value for shareholders[44]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial statements for the six months ended June 30, 2022[131]. - The company adhered to the corporate governance code, with the exception of the separation of roles between the chairman and CEO, which is currently being addressed[132].

Financial Performance - Revenue for the fiscal year ended December 31, 2021, was HKD 183,016,000, representing a 37.6% increase from HKD 133,012,000 in 2020[15] - Gross profit increased by 52.8% to HKD 73,865,000 from HKD 48,339,000 in the previous year[15] - The company reported a profit attributable to owners of HKD 14,372,000, a significant turnaround from a loss of HKD 42,505,000 in 2020[15] - Basic earnings per share improved to HKD 0.96 from a loss of HKD 2.83 per share in the prior year[15] - The profit for the year ended December 31, 2021, was approximately HKD 31,975,000, a turnaround from a loss of approximately HKD 62,876,000 for the previous year[26] - The profit attributable to the company's owners for the year ended December 31, 2021, was approximately HKD 14,372,000, compared to a loss of approximately HKD 42,505,000 in the prior year[26] - The coal mining business generated a post-tax profit of approximately HKD 40,351,000 for the year ended December 31, 2021, compared to a post-tax loss of approximately HKD 41,413,000 in 2020[27] - The group reported a profit of approximately HKD 31,975,000 for the year ended December 31, 2021, compared to a loss of approximately HKD 62,876,000 for the year ended December 31, 2020[48] Assets and Liabilities - Total assets decreased slightly by 1.25% to HKD 259,999,000 from HKD 263,299,000[15] - Total liabilities increased by 3.3% to HKD 81,224,000 compared to HKD 78,623,000 in 2020[15] - The total assets of the company as of December 31, 2021, were approximately HKD 259,999,000, a decrease from HKD 263,299,000 in the previous year[23] - The total liabilities of the company as of December 31, 2021, were approximately HKD 81,224,000, compared to HKD 78,623,000 in 2020[23] - The net asset value of the company as of December 31, 2021, was approximately HKD 178,775,000, a decrease from HKD 184,676,000 in the previous year[23] Cash Flow and Financial Position - Cash and bank balances decreased by 7.6% to HKD 86,412,000 from HKD 93,502,000[15] - The current ratio declined by 13.9% to 1.79 from 2.08 in the previous year[15] - The group had cash and bank balances totaling approximately HKD 91,344,000 as of December 31, 2021, down from HKD 98,273,000 as of December 31, 2020[49] - The group maintained a current ratio of approximately 1.79 as of December 31, 2021, compared to 2.08 as of December 31, 2020[49] Operational Performance - The company produced approximately 978,000 tons of coal for the year ended December 31, 2021, an increase from 880,000 tons in the previous year[29] - The company sold approximately 973,000 tons of coal during the year ended December 31, 2021, compared to 880,000 tons in 2020[29] - The annual coal output for the Inner Mongolia mining area is expected to remain at approximately 900,000 tons, reflecting a decrease of about 10.3% from the previous estimate of 1,003,600 tons due to the impact of the COVID-19 pandemic and current operational conditions[42]. Market and Pricing - The average unit selling price of coal is projected to be RMB 176 per ton for the fiscal year ending December 31, 2021, representing a year-on-year increase of approximately 15.8%[42]. - The highest unit selling price recorded in the fourth quarter of 2021 reached RMB 220 per ton, indicating significant price increases in the latter half of the year[42]. Environmental and Sustainability Initiatives - The environmental, social, and governance (ESG) report emphasizes the company's commitment to sustainability and high-quality standards in coal production[129] - The company has committed to improving sustainability and transparency in its operations, recognizing social and environmental responsibilities as core values[129] - The company is committed to sustainable development in coal mining, focusing on reducing emissions, effective use of energy and water resources, and ecological conservation[140] - Key environmental issues identified include greenhouse gas emissions, energy consumption, and water resource consumption, which are of high importance to stakeholders[156] - The company aims to achieve a 50% reduction in nitrogen oxide emissions by 2050[172] - As of December 31, 2021, nitrogen oxide emissions were 62.7 kg, down from 74.4 kg in 2020, representing a reduction of approximately 15.5%[172] - Total greenhouse gas emissions for the year ending December 31, 2021, were 8,082.2 tons, an increase of 4.7% from 7,721.8 tons in 2020[174] Governance and Management - The company has adhered to the corporate governance code as of December 31, 2021, with some deviations noted[81] - The company is currently seeking suitable candidates to fill the vacancies of Chairman and CEO following the passing of the former Chairman and the resignation of the CEO[81] - The company has a strong management team with over 20 years of experience in mining, resource management, and investment[67] - The financial director has over 25 years of financial management experience, contributing to the company's financial oversight[77] - The independent non-executive directors bring extensive experience in accounting, corporate finance, and management, enhancing the board's expertise[70][72] - The company has implemented a dual company secretary system to ensure compliance and effective governance[75][76] - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[82] Compliance and Risk Management - The company has established internal control systems and risk management procedures to comply with statutory regulations[82] - The company believes it can meet its financial obligations in the foreseeable future, with no significant uncertainties identified[119] - The company’s risk management and internal control systems were reviewed and deemed effective and adequate by the board[120] Employee and Operational Costs - Employee costs, including director remuneration, amounted to HKD 80,691,000 for the year ended December 31, 2021, compared to HKD 63,493,000 for the year ended December 31, 2020[59] - Sales and distribution expenses for the year ended December 31, 2021, amounted to approximately HKD 3,779,000, an increase of about 24.4% compared to HKD 3,039,000 for the same period in 2020, driven by increased coal sales and logistics costs[44] Dividends and Shareholder Returns - The company did not declare any dividends for the year ended December 31, 2021, consistent with the previous year[125]

Financial Performance - The company reported total revenue of approximately HKD 71,675,000 for the six months ended June 30, 2021, an increase of 43.2% compared to HKD 50,051,000 for the same period in 2020[9]. - Gross profit for the same period was HKD 23,128,000, representing a 7.1% increase from HKD 21,585,000 in 2020[5]. - Loss attributable to the company's owners decreased to HKD 4,003,000, an 81.5% reduction from HKD 21,673,000 in the previous year[5]. - The group reported a revenue of HKD 71,675,000 for the six months ended June 30, 2021, compared to HKD 50,051,000 for the same period in 2020, representing a year-on-year increase of approximately 43.3%[54]. - The group incurred a loss of HKD 5,106,000 for the six months ended June 30, 2021, significantly improved from a loss of HKD 32,222,000 in the same period of 2020[54]. - For the six months ended June 30, 2021, the company reported a loss attributable to shareholders of approximately HKD 4,003,000, compared to a loss of HKD 21,673,000 for the same period in 2020[92]. Production and Sales - The company produced approximately 451,000 tons of coal during the six months ended June 30, 2021, compared to 343,000 tons in the same period of 2020, reflecting an increase due to the lifting of lockdowns[10]. - The company sold approximately 446,000 tons of coal in the same period, up from 340,000 tons in 2020[10]. - Revenue from external customers for the coal mining segment was HKD 71,675,000 in Hong Kong and HKD 50,051,000 in China (excluding Hong Kong), totaling HKD 121,726,000[82]. Assets and Liabilities - Total assets as of June 30, 2021, were HKD 221,710,000, a decrease of 15.8% from HKD 263,299,000 as of December 31, 2020[6]. - Cash and cash equivalents (excluding restricted bank deposits) were HKD 52,738,000, down 43.6% from HKD 93,502,000[6]. - The company's net asset value decreased to HKD 139,230 million as of June 30, 2021, down from HKD 184,676 million as of December 31, 2020, representing a decline of about 24.5%[63]. - The company’s total liabilities as of June 30, 2021, were HKD 22,099 million, which is an increase from HKD 21,801 million as of December 31, 2020, indicating a growth of approximately 1.36%[63]. Cash Flow and Expenses - Operating cash flow showed a net outflow of HKD 11,102 million for the six months ended June 30, 2021, compared to an inflow of HKD 26,931 million for the same period in 2020[69]. - The financing activities resulted in a cash outflow of HKD 40,121 million for the six months ended June 30, 2021, compared to an inflow of HKD 22,831 million for the same period in 2020[69]. - Employee costs, including director remuneration, amounted to HKD 31,004,000 for the six months ended June 30, 2021, compared to HKD 20,741,000 for the same period in 2020, reflecting an increase of approximately 49.3%[48]. - Administrative expenses for the same period were approximately HKD 28,903,000, up from HKD 23,853,000 in 2020, primarily due to additional employee social insurance costs of RMB 3,000,000 (approximately HKD 3,600,000)[33]. - Sales and distribution expenses for the six months ended June 30, 2021, amounted to approximately HKD 1,773,000, an increase of about 48.4% compared to HKD 1,195,000 in the same period of 2020[32]. Compliance and Governance - The company has been subject to administrative fines totaling approximately HKD 1,100,000 related to past production activities and compliance issues[12]. - The company has complied with the corporate governance code except for the separation of the roles of chairman and CEO, which are currently vacant[134]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the six months ended June 30, 2021[132]. Future Outlook and Strategy - The company anticipates maintaining an annual coal output of approximately 900,000 tons due to operational challenges and compliance reviews[14]. - The board plans to focus on market expansion and the development of new energy projects while ensuring compliance with regulatory changes in the coal industry[50]. - The company is exploring potential acquisitions to enhance its market position, targeting a deal valued at approximately HKD 500 million[149]. - The company provided a future outlook with a revenue guidance of HKD 2.5 billion for the next fiscal year, representing a 20% increase[149]. Investments and Divestments - The company invested $5,100,000 (approximately HKD 39,500,000) for a 51% stake in Qingdao Xinghua Resource Holdings Limited, which was established in November 2019[18]. - The company plans to divest its 51% stake in the tire recycling joint venture for $5,100,000 (approximately HKD 39,700,000), with expected net proceeds of about HKD 2,000,000[20]. - The company completed the sale of its subsidiary, Qingdao Xinghua Resource Holdings Limited, for USD 5,100,000 on April 7, 2021[114]. - The net asset value of the sold subsidiary was approximately HKD 78,568,000, resulting in a cash inflow of HKD 39,660,000 from the sale[117]. Market and User Data - User data showed a growth of 25% in active users, totaling 3 million by the end of the reporting period[149]. - New product launches contributed to 30% of total revenue, indicating strong market demand[149]. - Market expansion efforts have led to a 40% increase in sales in the Southeast Asia region[149].