Financial Performance - Revenue for 2020 decreased by 25.4% to HKD 133,012,000 compared to HKD 178,301,000 in 2019[14] - Gross profit fell by 38.5% to HKD 48,339,000 from HKD 78,657,000 in the previous year[14] - The company reported a significant increase in annual loss attributable to shareholders, reaching HKD 42,505,000, a 299.9% rise from HKD 10,629,000 in 2019[14] - Basic loss per share increased by 298.6% to HKD 2.83 compared to HKD 0.71 in 2019[14] - The loss attributable to the company's owners for the year ended December 31, 2020, was approximately HKD 42,505,000, compared to a loss of HKD 10,629,000 for the same period in 2019[24] - The coal mining business produced approximately 880,000 tons of coal in 2020, down from 1,200,000 tons in 2019, resulting in a segment loss of approximately HKD 42,216,000 compared to a profit of HKD 17,471,000 in 2019[26] - The company experienced a two-month suspension of coal production in the first half of 2020 due to the COVID-19 pandemic, which significantly impacted production and revenue[25] - Total employee cost for the year ended December 31, 2020, was HKD 63,493,000, a decrease from HKD 69,510,000 for the year ended December 31, 2019[59] Assets and Liabilities - Total assets decreased by 17.7% to HKD 263,299,000 from HKD 320,076,000 in the prior year[14] - Total liabilities reduced by 6.2% to HKD 78,623,000 compared to HKD 83,818,000 in 2019[14] - Cash and bank balances decreased by 23.1% to HKD 93,502,000 from HKD 121,644,000 in the previous year[14] - Equity attributable to shareholders declined by 25.6% to HKD 105,497,000 from HKD 141,823,000 in 2019[14] - The current ratio decreased by 15.8% to 2.08 from 2.47 in the previous year[14] - The company's net assets were HKD 184,676,000 as of December 31, 2020, down from HKD 236,258,000 in 2019[21] Impairment and Compliance - Impairment losses for property, plant, and equipment amounted to approximately HKD 27,592,000, while intangible assets and right-of-use assets incurred impairment losses of approximately HKD 7,330,000 and HKD 400,000, respectively[26] - The company paid an administrative fine of RMB 960,000 (approximately HKD 1.1 million) to resolve issues related to overproduction in 2018, which involved the sale of approximately 280,000 tons of waste rock[32] - Total administrative fines related to compliance reviews amount to RMB 7.6 million (approximately HKD 8.5 million), which includes payments for land and property ownership issues[32] - The safety production permit and mining permit for Inner Mongolia have been successfully renewed for three years, expiring on September 24, 2023, and October 26, 2023, respectively[34] Strategic Decisions and Future Plans - The company decided to withdraw from the joint venture investment in the environmentally friendly tire recycling plant in China to improve liquidity and cash flow[12] - The company plans to sell its 51% stake in the tire recycling joint venture for USD 5.1 million (approximately HKD 39.5 million), which is expected to improve liquidity and financial stability[36] - The company anticipates a further decrease in annual coal production capacity due to aging mining infrastructure and machinery[27] - The capital expenditure required to restore annual coal production capacity to 1.2 million tons is expected to be no less than RMB 20 million (approximately HKD 23.8 million) due to aging mining facilities and increased maintenance costs[30] Corporate Governance - The company adheres to corporate governance practices in accordance with the Hong Kong Stock Exchange listing rules[76] - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors as of the date of the annual report[82] - The company has received annual confirmations of independence from all independent non-executive directors, confirming their independence as per the listing rules[83] - The board is responsible for the company's strategy, annual and interim performance, succession planning, risk management, and other significant operational and financial matters[81] - The company has established a board committee to oversee significant transactions and ensure compliance with statutory regulations[81] Environmental and Social Responsibility - The company is committed to establishing an environmentally friendly enterprise while maintaining high-quality standards in coal production and sales[144] - The company emphasizes social and environmental responsibility as a core value of its business operations[144] - The report outlines the company's policies and strategies related to environmental protection, social responsibility, operational practices, and sustainable development capabilities[147] - The company has invested in environmental facilities to reduce air pollution and has implemented a dust management plan to minimize dust emissions during coal transportation[178] - The company is committed to reducing greenhouse gas emissions and has implemented measures to monitor and control dust emissions from coal mining operations[175] Stakeholder Engagement - Stakeholder engagement is considered essential for the company's long-term growth and success, with a broad network including employees, customers, suppliers, investors, government, and local communities[151] - The company has established multiple channels for stakeholders to express their opinions on sustainability performance and future strategies[153] - The company emphasizes the importance of stakeholder communication to enhance stakeholder value and achieve win-win outcomes[171] Emissions and Environmental Impact - Total greenhouse gas emissions for the reporting period were 7,721.8 tons, a decrease from 10,688.3 tons in the previous year, representing a reduction of approximately 27.6%[186] - Nitrogen oxides (NOx) emissions decreased to 74.4 kg from 156.7 kg, a reduction of about 52.6%[180] - Sulfur oxides (SOx) emissions decreased to 4.2 kg from 5.9 kg, a reduction of approximately 28.8%[180] - Particulate matter (PM) emissions decreased to 5.4 kg from 11.3 kg, a reduction of about 52.2%[180] - The waste generated during the reporting period was approximately 112.8 tons, an increase from 108.6 tons in the previous year[191]

Financial Performance - The company reported total revenue of approximately HKD 50,051,000 for the six months ended June 30, 2020, a decrease of about 52.7% compared to HKD 105,882,000 for the same period in 2019[8]. - The company incurred a loss attributable to owners of approximately HKD 21,673,000 for the six months ended June 30, 2020, compared to a profit of HKD 16,206,000 for the same period in 2019, representing a change of 233.7%[6]. - The coal mining segment reported a loss of approximately HKD 25,427,000 for the six months ended June 30, 2020, compared to a profit of HKD 44,012,000 for the same period in 2019[9]. - The group reported a revenue of HKD 50,051,000 for the six months ended June 30, 2020, down from HKD 105,882,000 for the same period in 2019, representing a decrease of approximately 52.8%[53]. - The group incurred a loss of HKD 32,222,000 for the six months ended June 30, 2020, compared to a profit of HKD 35,413,000 for the same period in 2019[53]. - The total comprehensive loss for the six months ended June 30, 2020, was HKD (32,222,000), compared to a profit of HKD 35,413,000 for the same period in 2019[98]. Production and Operations - Coal production for the six months ended June 30, 2020, was approximately 343,000 tons, down from 674,000 tons for the same period in 2019, reflecting a decrease of about 49%[9]. - The coal production forecast for the Inner Mongolia mining area has been adjusted from 1,003,600 tons to 900,000 tons, reflecting a decrease of approximately 10.3% due to current business conditions and potential negative impacts from COVID-19[24]. - The company faced significant disruptions in coal mining operations due to the COVID-19 pandemic, impacting revenue generation[76]. - The company plans to implement cost-saving measures to enhance operational efficiency in its coal production business amid challenging economic conditions[50]. Financial Position - Total assets as of June 30, 2020, were HKD 310,461,000, a decrease of 3.0% from HKD 320,076,000 as of December 31, 2019[7]. - The current ratio decreased by 17.0% to 2.05 as of June 30, 2020, compared to 2.47 as of December 31, 2019[7]. - The company's net asset value decreased to HKD 200,435 million as of June 30, 2020, down from HKD 236,258 million as of December 31, 2019, representing a decline of about 15.2%[62]. - The total equity attributable to owners of the company decreased to HKD 117,907 million as of June 30, 2020, down from HKD 141,823 million as of December 31, 2019, reflecting a decrease of approximately 16.8%[62]. - The group's capital debt ratio remained at zero as of June 30, 2020, consistent with December 31, 2019[37]. Cash Flow and Investments - Operating cash inflow for the six months ended June 30, 2020, was HKD 22,764 million, a significant improvement from a cash outflow of HKD 44,191 million in the same period of 2019[68]. - The company reported a net cash outflow from investing activities of HKD 4,100 million for the six months ended June 30, 2020, compared to a cash inflow of HKD 2,828 million in the same period of 2019[68]. - Cash and cash equivalents increased to HKD 138,860 million as of June 30, 2020, compared to HKD 106,556 million as of June 30, 2019, indicating a growth of approximately 30.2%[68]. Impairment and Expenses - The impairment loss for the coal cash-generating unit for the six months ended June 30, 2020, amounted to approximately HKD 31,456,000, which includes impairment losses of HKD 24,861,000 for property, plant, and equipment, and HKD 6,595,000 for intangible assets[22]. - Administrative expenses for the six months ended June 30, 2020, were approximately HKD 23,853,000, slightly down from HKD 24,671,000 in the same period of 2019, with cost-saving measures being implemented to improve financial performance[29]. - Sales and distribution expenses for the six months ended June 30, 2020, were approximately HKD 1,195,000, a decrease of about 48.2% compared to HKD 2,308,000 for the same period in 2019, aligning with the reduction in coal sales volume[28]. Corporate Governance - The audit committee consists of three independent non-executive directors, responsible for reviewing the financial information and ensuring effective internal controls and risk management[164]. - The company has complied with the corporate governance code except for the separation of the roles of Chairman and CEO, which is currently unfilled[165]. - Following the appointment of Mr. He Min as an independent non-executive director on January 22, 2020, the company now meets the requirement of having at least three independent non-executive directors on the board[169]. - The board currently consists of two executive directors and three independent non-executive directors, ensuring compliance with the relevant corporate governance codes[169]. Shareholder Information - As of June 30, 2020, major shareholders include Liu Changdeng, holding 156,154,315 shares, representing approximately 10.39% of the total issued shares[138]. - Wu Wanjie holds 17,250,000 shares, accounting for 1.15% of the total issued shares[133]. - Ren Hang holds 15,000,000 shares, which is 1.00% of the total issued shares[133]. - Du Weicheng has 225,000 shares, representing 0.01% of the total issued shares[133]. Stock Options - The company has a stock option plan aimed at incentivizing employees and retaining talent, effective for ten years from August 20, 2009[141]. - The stock option plan allows for the issuance of options that cannot exceed 1% of the total issued shares within any twelve-month period without shareholder approval[145]. - The exercise price of any granted stock options is determined by the board and must not be less than the higher of the closing price on the grant date or the average closing price over the preceding five trading days[142].

Financial Performance - Revenue from continuing operations for 2019 was HKD 178,301,000, a decrease of 8.1% compared to HKD 194,109,000 in 2018[15] - Gross profit for 2019 increased to HKD 78,657,000, up 7.0% from HKD 73,533,000 in 2018[15] - The company reported a loss attributable to owners of HKD 10,629,000 for 2019, a significant reduction of 60.7% from HKD 27,018,000 in 2018[15] - Basic loss per share from continuing operations improved to HKD 0.71 cents, down 60.6% from HKD 1.8 cents in 2018[15] - Total assets decreased by 13.1% to HKD 320,076,000 from HKD 368,498,000 in 2018[15] - Total liabilities were reduced by 49.3% to HKD 83,818,000 compared to HKD 165,159,000 in 2018[15] - Cash and bank balances decreased by 21.8% to HKD 121,644,000 from HKD 155,635,000 in 2018[15] - The current ratio improved significantly to 2.47 from 1.32 in 2018, an increase of 87.1%[15] Coal Mining Operations - The coal mining business produced and sold approximately 1,200,000 tons of coal for the year ended December 31, 2019, consistent with the previous year, but down from approximately 1,500,000 tons sold in 2018[26] - The segment profit for the coal mining business for the year ended December 31, 2019, was approximately HKD 17,471,000, a decrease from HKD 32,758,000 in 2018[26] - The company entered into a one-year coal supply contract with a coal wholesale distributor to maintain stable operations, committing to sell at least 50% of total coal output[27] - The company is actively seeking new customers to ensure coal sales in 2020, aiming to establish long-term business relationships with reputable clients[27] - The average selling price of coal for 2019 was RMB 136 per ton, which is projected to decrease to RMB 131 per ton in 2020[32] - The company anticipates a coal output of 1,003,600 tons for the forecasted years until the expiration of the business license[32] - The company plans to start coal production at Inner Mongolia Jinyuanli in Q2 2020, anticipating a potential decline in total coal output due to the COVID-19 pandemic[61] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to environmental, social, and governance (ESG) responsibilities, focusing on sustainable practices in coal production and sales, particularly in Inner Mongolia, which has significant lignite reserves[132] - The company is committed to reducing emissions, with a focus on minimizing dust, wastewater, and noise generated from coal mining activities[157] - The company has implemented a dust management plan to control dust emissions around mining areas and transportation routes[158] - The company aims to achieve sustainable development in coal mining while complying with all applicable environmental laws and regulations in China[151] - The company has established a two-dimensional materiality matrix to identify high-importance issues for stakeholders and the company[147] - The company has established multiple stakeholder channels to gather feedback on its sustainability performance and future strategies, enhancing communication and trust with stakeholders[138] Corporate Governance - The company has not complied with the corporate governance code regarding the separation of roles between the chairman and the CEO, as there is currently no individual holding either position[76] - Following the resignation of an independent non-executive director, the board was reduced to two independent non-executive directors, which did not meet the requirement of having at least three[77] - The company has now complied with the listing rules regarding the composition of the board and committees after appointing a new independent non-executive director[77] - The board is responsible for the company's strategy, annual and interim performance, succession planning, risk management, and major acquisitions[80] - The company has adopted a standard code to regulate securities trading by directors, and all directors confirmed compliance for the year ending December 31, 2019[78] - The company has a clear governance framework to ensure compliance with legal and regulatory requirements[90] Risk Management - The company has established a risk management and internal control system to manage risks associated with achieving business objectives, ensuring compliance with corporate governance codes[123] - The company has reviewed and assessed the effectiveness of its risk management and internal control systems, covering financial, operational, and compliance monitoring[123] Financial Position and Capital Structure - The group has no borrowings as of December 31, 2019, compared to approximately HKD 13.65 million in 2018[51] - The group’s capital debt ratio was zero as of December 31, 2019, compared to 6.7% in 2018[51] - The company received approximately HKD 106.8 million from a share placement, with net proceeds allocated for general working capital in 2020[47] Employee and Management Information - The group employed 463 full-time employees as of December 31, 2019, an increase from 449 in 2018, with employee costs from continuing operations amounting to approximately HKD 69.51 million[60] - The company has a strong management team with over 10 years of experience in corporate finance and investment banking[65] - The company has a diverse board with members possessing extensive experience in finance, law, and corporate governance[67][69][70] Emissions and Resource Consumption - Total greenhouse gas emissions for the year ended December 31, 2019, were 10,688.3 tons, a decrease from 12,632.3 tons in 2018, representing a reduction of approximately 15.4%[165] - Nitrogen oxides (NOx) emissions were recorded at 156.7 kg, sulfur oxides (SOx) at 5.9 kg, and particulate matter (PM) at 11.3 kg for the year ended December 31, 2019[163] - The company consumed 179,985 tons of water during the reporting period, an increase from 154,000 tons in 2018, with a water consumption of 0.15 tons per ton of coal produced, up from 0.13 tons in 2018[194] - The company employs efficient water-saving production methods and tools to improve water usage efficiency and is preparing to install water-saving facilities[194]

Financial Performance - The company reported total revenue from continuing operations of approximately HKD 105,882,000 for the six months ended June 30, 2019, an increase of about 54.3% compared to HKD 68,631,000 for the same period in 2018[10]. - The profit attributable to the company's owners from continuing operations was approximately HKD 16,206,000, a significant turnaround from a loss of HKD 11,289,000 in the same period of 2018[10]. - The group reported a revenue of HKD 105.88 million for the six months ended June 30, 2019, compared to HKD 68.63 million for the same period in 2018, representing a growth of 54.3%[58]. - The gross profit for the same period was HKD 62.52 million, significantly up from HKD 11.55 million in 2018[58]. - The profit attributable to owners of the company was HKD 16.21 million, compared to a loss of HKD 11.29 million in the previous year[60]. - The company reported a consolidated profit from continuing operations of HKD 35,413,000 for the six months ended June 30, 2019, compared to a loss of HKD 14,162,000 in the same period of 2018[127]. - The group reported a profit of approximately HKD 16,206,000 for the first half of 2019, a significant improvement from a loss of HKD 22,019,000 in the same period of 2018[142]. Coal Mining Segment - The coal mining segment produced approximately 674,000 tons of coal and sold about 656,000 tons during the reporting period, compared to 329,000 tons produced and 621,000 tons sold in the same period of 2018[11]. - The coal mining segment reported a profit of approximately HKD 44,012,000 for the six months ended June 30, 2019, compared to a loss of HKD 6,144,000 in the same period of 2018[11]. Assets and Liabilities - Total assets decreased by 11.3% to HKD 326,784,000 from HKD 368,498,000 as of December 31, 2018[7]. - Total liabilities decreased by 46.2% to HKD 88,921,000 from HKD 165,159,000 as of December 31, 2018[7]. - The total assets for the reportable segments as of June 30, 2019, amounted to HKD 268,242,000, while total liabilities were HKD 131,336,000[116]. - Total current liabilities decreased significantly to HKD 68,311,000 as of June 30, 2019, compared to HKD 144,837,000 as of December 31, 2018, a reduction of approximately 52.8%[67]. - Total equity increased to HKD 237,863,000 as of June 30, 2019, up from HKD 203,339,000 as of December 31, 2018, reflecting an increase of approximately 16.9%[73]. Cash Flow and Financing - As of June 30, 2019, the group's cash and bank balances totaled approximately HKD 111.1 million, down from HKD 162.96 million as of December 31, 2018[41]. - Operating cash flow showed a net outflow of HKD 44,191,000 for the six months ended June 30, 2019, compared to a net inflow of HKD 9,118,000 for the same period in 2018[79]. - The company reported a net cash outflow from financing activities of HKD 41,363,000 for the six months ended June 30, 2019, compared to an inflow of HKD 5,147,000 in the previous year[79]. - The total borrowing cost for the first half of 2019 was HKD 580,000, compared to HKD 615,000 in the same period of 2018[131]. Expenses - The group's sales and distribution expenses for the six months ended June 30, 2019, were approximately HKD 2,308,000, a decrease of about HKD 1,028,000 compared to HKD 3,336,000 in the same period of 2018[23]. - Administrative expenses from continuing operations for the same period were approximately HKD 24,671,000, a slight increase of about HKD 2,791,000 compared to HKD 21,880,000 in 2018[24]. - Employee costs for the six months ended June 30, 2019, were HKD 23.48 million, down from HKD 26.04 million in the same period of 2018[51]. Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, responsible for reviewing financial information and overseeing the financial reporting system, risk management, and internal control[199]. - The company has complied with the applicable code provisions of the corporate governance code during the six months ending June 30, 2019, except for the separation of roles between the chairman and CEO[200]. Share Capital and Dividends - The total issued share capital as of June 30, 2019, was HKD 15,035,000, with 1,503,477,166 shares issued[161]. - The group did not recommend any interim dividend for the first half of 2019, consistent with the same period in 2018[139]. - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2019, consistent with no dividend declared for the same period in 2018[164]. New Standards and Accounting Policies - The company has adopted the cumulative effect method for the application of the new Hong Kong Financial Reporting Standard 16, recognizing lease liabilities equivalent to the amount of right-of-use assets[104]. - The transition to HKFRS 16 did not have a significant impact on the company's accounting policies apart from the changes in lease accounting[89]. - The adoption of the new standards is part of the company's commitment to align with updated financial reporting requirements[89]. Stock Options - The 2009 stock option plan allows the company to grant options to employees and other qualified participants, including 14,400,000 shares equivalent to approximately 3.14% of the total issued share capital on April 30, 2015[183]. - A total of 150,000,000 options were granted on July 27, 2018, which accounted for approximately 9.98% of the total issued share capital[186]. - The fair value of stock options granted on the first grant date, including 14,400,000 related shares, is approximately HKD 5,438,000, calculated using a risk-free interest rate of 1.52% and a historical volatility of 78.26% over ten years[194].

Economic Performance - In 2018, China's GDP grew by 6.6%, marking the slowest growth rate in nearly 30 years[12]. - The company reported revenue from continuing operations of approximately HKD 194,109,000, an increase of about 73.6% compared to HKD 111,842,000 in the previous year[27]. - Gross profit surged to HKD 73,533,000, reflecting a significant increase of 367.7% from HKD 15,723,000[27]. - The company recorded a loss attributable to owners of the company of HKD 27,018,000, a decrease of 26.2% from HKD 36,585,000 in the prior year[27]. - Basic loss per share from continuing operations improved to HKD 1.8 cents, down 43.4% from HKD 3.18 cents[27]. - The net loss attributable to the owners of the company decreased from approximately HKD 143,604,000 to HKD 18,933,000 for the year ended December 31, 2018[46]. Financial Position - Total assets decreased by 12.3% to HKD 368,498,000 from HKD 420,409,000[27]. - Total liabilities reduced by 37.1% to HKD 165,159,000 from HKD 262,458,000[27]. - Cash and bank balances increased by 47.8% to HKD 155,635,000 from HKD 105,286,000[27]. - The company's equity attributable to owners rose by 21.4% to HKD 153,568,000 from HKD 126,487,000[27]. - The current ratio improved to 1.32 from 0.80, an increase of 65.0%[27]. - The debt-to-equity ratio significantly decreased to 6.7% from 24.9%, a reduction of 73.1%[27]. Production and Sales - Coal production for the year ended December 31, 2018, was approximately 1.2 million tons, a slight increase from 1.18 million tons in 2017, while sales rose significantly to approximately 1.5 million tons from 0.93 million tons in 2017[29]. - The segment profit from coal mining operations for the year ended December 31, 2018, was approximately HKD 32,758,000, a turnaround from a segment loss of HKD 34,074,000 in 2017, primarily due to increased sales volume and no impairment losses on property, plant, and equipment[29]. Business Strategy - The management acknowledged limited growth potential in existing mining operations due to capacity constraints and industry policy changes[13]. - The company aims to seek new business opportunities in high-growth potential industries globally in the short term[14]. - Following the sale of its brown coal upgrading business, coal mining is now the group's sole business segment, which is highly concentrated and faces risks from policy changes in the Chinese coal industry[69]. - The group plans to explore business opportunities to expand into higher growth sectors such as technology and telecommunications[70]. Governance and Compliance - The company has complied with the corporate governance code, with the exception of the separation of roles between the chairman and CEO, which remains unfilled[89]. - The independent non-executive directors have confirmed their independence as per the listing rules, ensuring protection of shareholder interests[95]. - The company has established committees to oversee various responsibilities, including audit, remuneration, and nomination, to enhance governance practices[92]. - The company has maintained a high level of compliance with the corporate governance code, reflecting its commitment to transparency and accountability[90]. Environmental, Social, and Governance (ESG) Practices - The company is committed to environmental, social, and governance (ESG) responsibilities, focusing on sustainable practices in coal production and sales[142]. - The group focuses on environmental, social, and governance (ESG) issues, particularly in coal mining operations in Inner Mongolia, China, which significantly impact its environmental and social footprint[145]. - Key environmental performance indicators include greenhouse gas emissions, energy consumption, and water resource usage, with a commitment to reducing emissions and improving resource efficiency[164][165]. - The company is dedicated to reducing emissions, effectively using energy and water resources, and conserving the ecological environment as part of its operational commitments[165]. Emission Reductions - The company implemented rigorous dust control policies, resulting in a 99.46% reduction in particulate matter (PM) emissions from 647.64 kg in 2017 to 3.51 kg in 2018[174]. - Sulfur oxides (SOx) emissions decreased by 32.58%, from 4,929.85 kg in 2017 to 3,323.81 kg in 2018[174]. - Nitrogen oxides (NOx) emissions fell by 33.20%, from 998,197.05 kg in 2017 to 666,779.61 kg in 2018[174]. - Total greenhouse gas emissions were reduced by 17.28%, from 15,271.83 tons CO2e in 2017 to 12,632.30 tons CO2e in 2018[175].