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].

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]