Revenue and Financial Performance - The group recorded revenue from continuing operations of approximately HKD 6,300,000, an increase of about 90.1% compared to HKD 3,300,000 in the same period last year[11]. - For the six months ended June 30, 2019, the company reported revenue of HKD 6,288,000, an increase from HKD 3,308,000 in the same period of 2018, representing an increase of 90%[71]. - The total revenue for the six months ended June 30, 2019, was HKD 6,288,000, a decrease of 50.2% from HKD 12,622,000 in 2018[106]. - The group reported a loss from continuing operations of approximately HKD 20,600,000, compared to a loss of HKD 15,900,000 in the same period last year, with the increase attributed to financial costs related to the mining segment's rectification[12]. - The loss from continuing operations for the same period was HKD 20,551,000, compared to a loss of HKD 15,914,000 in 2018, representing a 29.5% increase in losses[105]. - The total comprehensive loss for the period was HKD 20,779,000, slightly higher than HKD 20,252,000 in the same period last year[71]. - The company reported a loss attributable to owners from continuing operations of HKD (18,461) thousand for the six months ended June 30, 2019, compared to a loss of HKD (12,988) thousand for the same period in 2018, representing an increase of 42.7%[73]. - Total comprehensive loss attributable to owners was HKD (18,669) thousand for the six months ended June 30, 2019, compared to HKD (16,368) thousand in the prior year, indicating a year-over-year increase of 14.1%[73]. Segment Performance - The mining products segment contributed approximately HKD 2,100,000 to the group's continuing operations, a decrease of about 20.1% from HKD 2,600,000 in the previous year due to reduced sales of by-products during the rectification process[11]. - The lending business segment saw a significant increase in revenue, contributing approximately HKD 4,200,000, up approximately 490% from HKD 700,000 in the same period last year, primarily due to two loan transactions at the end of 2018[11]. - For the six months ended June 30, 2019, the total revenue from external customers was HKD 6,288,000, with contributions of HKD 2,072,000 from mining products and HKD 4,216,000 from lending services[103]. Operational Changes and Future Plans - The group plans to terminate the cosmetics and skincare products segment's operations starting September 2019 due to recent economic conditions in China and Hong Kong[14]. - The company aims to improve mining capacity and facilities, with capital investment planned based on the needs of the mining rectification project[14]. - The management is exploring opportunities in big data, e-commerce, and blockchain technology, including developing tailored blockchain services for clients[15]. - The group is investigating potential projects related to hazardous waste treatment and construction material trade along the "Belt and Road" initiative[16]. - The group has formed a dedicated team to pursue new business opportunities and potential partnerships or acquisition targets[16]. Financial Position and Capital Structure - As of June 30, 2019, the group's cash and bank balances amounted to approximately HKD 2,700,000, an increase from approximately HKD 1,200,000 as of December 31, 2018[19]. - The group's debt-to-asset ratio was approximately 211.4% as of June 30, 2019, compared to approximately 148.8% as of December 31, 2018[19]. - The group's borrowings and convertible bonds totaled approximately HKD 217,600,000 as of June 30, 2019, up from approximately HKD 173,100,000 as of December 31, 2018[19]. - The group recorded current liabilities of approximately HKD 70,900,000 and HKD 36,600,000 as of June 30, 2019, and December 31, 2018, respectively[19]. - The company plans to explore various fundraising methods, including issuing convertible bonds and new shares, to meet future funding needs[18]. - The company has fully utilized the funds raised from the public offering, totaling approximately HKD 157,100,000[30]. Staffing and Corporate Governance - The group employed 285 staff as of June 30, 2019, a significant increase from 93 employees in 2018[24]. - The board of directors does not recommend the payment of an interim dividend for the reporting period, consistent with 2018[27]. - The company’s management is committed to adhering to the corporate governance code as outlined in the listing rules[164]. - The company recognizes the importance of corporate governance and has established necessary protocols[164]. Share Capital and Equity - As of June 30, 2019, the company had a total of 17,544,977,408 issued shares, with a maximum share option limit of 1,754,497,740 shares, equivalent to 10% of the issued share capital[59]. - The total issued and paid-up share capital remained at HKD 175,449,000 with 17,544,977,408 shares as of June 30, 2019[141]. - The company has a stock option plan approved by shareholders on February 22, 2016[182]. - The company confirmed sufficient public float, with at least 25% of the issued share capital held by the public[69]. Cash Flow and Expenses - The company reported a net cash outflow from operating activities of HKD (30,245) thousand for the six months ended June 30, 2019, compared to a cash inflow of HKD 146 thousand in the same period of 2018[79]. - Cash and cash equivalents at the end of the period were HKD 2,654 thousand, down from HKD 4,903 thousand at the end of the previous year, a decrease of 45.9%[79]. - The company incurred a financing cost of HKD 10,001,000, which increased from HKD 3,941,000 in the previous year, reflecting higher borrowing costs[71]. - Financing costs totaled HKD 10,001,000 for the six months ended June 30, 2019, compared to HKD 3,941,000 in 2018, reflecting a 153.5% increase[111]. Asset Management - Non-current assets increased to HKD 220,166 thousand as of June 30, 2019, from HKD 205,057 thousand as of December 31, 2018, reflecting a growth of 7.3%[75]. - The carrying amount of mining rights as of June 30, 2019, was HKD 155,187,000, a slight decrease from HKD 155,248,000 at the end of 2018[124]. - Trade receivables decreased significantly from HKD 25,125,000 as of December 31, 2018, to HKD 220,000 as of June 30, 2019[127]. - Other receivables increased from HKD 3,834,000 as of December 31, 2018, to HKD 19,158,000 as of June 30, 2019[127]. - Loans receivable (current portion) increased slightly from HKD 107,023,000 as of December 31, 2018, to HKD 107,824,000 as of June 30, 2019[129]. Compliance and Reporting Standards - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards[162]. - The group adopted HKFRS 16 "Leases" effective January 1, 2019, resulting in the recognition of lease liabilities amounting to HKD 2,804,000[90]. - The group did not apply any new or revised HKFRS that had been issued but were not yet effective as of the reporting date[90].

Business Operations and Strategy - The company completed the sale of the Kaijing market on December 28, 2018, and will continue its operations in the cosmetics and skincare products sector, focusing on finding new potential partners or target companies in China[9]. - The company plans to improve mining capacity and facilities to enhance gold production efficiency, requiring further capital investment in various areas including mining site facilities and processing plants[9]. - The existing processing plant's maximum capacity was 150 tons per day, but production has been kept at a minimum due to safety rectification work, with expectations to increase capacity to 500 tons per day after improvements are completed by the end of 2019[15]. - The mining license is set to expire on September 2, 2020, but the company expects to renew it at a relatively low cost, with preparations for renewal documents to be completed in the second quarter of 2019[16]. - Local government support has been received, and the management is confident that mining production and capacity will increase in the coming years, leading to higher revenues and profits for the company[18]. - The company completed the sale of its cosmetics subsidiary, Kaijing, for HKD 7,905,850 on December 28, 2018, as part of a strategy to divest from underperforming segments[19]. - Revenue from continuing operations increased to approximately HKD 27,000,000, up 18.6% from HKD 22,800,000 in the previous year, primarily driven by the mining products segment[24]. - The mining products segment contributed approximately HKD 25,200,000 to the company's continuing operations, reflecting an 18.1% increase from HKD 21,400,000 year-on-year[24]. - The lending business segment reported revenue of approximately HKD 1,800,000, marking a 26.1% increase from HKD 1,400,000 in the previous year[24]. - The cosmetics and skincare segment generated approximately HKD 22,400,000 in revenue from non-continuing operations, a 4.4% increase from HKD 21,400,000 year-on-year, along with a gain of approximately HKD 15,000,000 from the sale of the segment[24]. Financial Performance - The company recorded a significant loss of approximately HKD 94,300,000 from both continuing and non-continuing operations, compared to HKD 24,200,000 in the previous year, primarily due to impairment losses[26]. - The company secured a HKD 100,000,000 unsecured financing arrangement at favorable rates to expand its lending business[23]. - The company plans to raise up to HKD 200 million through convertible bonds to meet funding needs for existing operations and future business development[39]. - Approximately 35% of the net proceeds from the potential convertible bonds will be used to repay existing convertible bonds maturing in May 2019, and about 25% will be allocated for capital investments to enhance mining capacity and facilities[40]. - As of December 31, 2018, the company reported a capital debt ratio of approximately 184.5%, up from 51.3% in 2017, with borrowings and convertible bonds totaling approximately HKD 181.3 million[42]. - The company has no outstanding bank borrowings as of December 31, 2018, indicating a strong liquidity position[46]. - The company reported no reserves available for distribution to shareholders as of December 31, 2018, consistent with the previous year[153]. - The board does not recommend the payment of a final dividend for the reporting period, similar to the previous year[154]. Corporate Governance - The board of directors has approved a dividend policy during a meeting on March 29, 2019, after not having an immediate need to adopt a draft policy earlier[65]. - The board currently has only three independent non-executive directors, which is below the minimum required number according to listing rules[66]. - The company is actively seeking suitable candidates to fill the vacancies of independent non-executive directors within three months from April 24, 2019[66]. - The company has adopted a corporate governance code to enhance shareholder value and is committed to improving its governance practices[65]. - The board has established various committees to monitor compliance with statutory and regulatory requirements[69]. - The company has implemented a board diversity policy to enhance efficiency and ensure a diverse skill set among board members[71]. - The board consists of both executive and non-executive directors, with specific appointments made in 2018[72]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills[83]. - The board can appoint new members at any time, with a requirement for one-third of directors to retire at each annual general meeting[87]. - The company can remove any director through an ordinary resolution at the shareholders' meeting[88]. - The board of directors held 11 meetings during the reporting period, with the attendance record showing that the chairman attended 10 out of 11 meetings[93]. - The company has established a nomination committee to provide recommendations for the appointment or reappointment of directors, which currently consists of six members[99]. - The remuneration committee, formed in June 2008, is responsible for reviewing and approving management's compensation schemes[104]. - The independent non-executive director, Mr. Xie Qiangming, was appointed as the chairman of the remuneration committee following the resignation of Ms. Liu Shuang[100]. - The board is responsible for major decision-making, including approving and monitoring all policy matters and significant transactions[97]. - The company’s senior management, including the CEO and CFO, are responsible for daily management and operations[98]. - The attendance record for the remuneration committee meetings indicates that all members participated actively during the reporting period[104]. - The company has a diversity policy for the board to ensure appropriate candidates are selected based on their strengths and professional backgrounds[99]. - The board has authorized the senior management to handle daily operations, ensuring compliance with applicable laws and regulations[97]. - The company’s governance practices include providing all directors with timely access to relevant information and independent professional advice when necessary[97]. Risk Management and Internal Controls - The audit committee, consisting of four independent non-executive directors, oversees financial reporting, internal controls, and risk management effectiveness[116]. - The company emphasizes the importance of a robust risk management and internal control system to mitigate major risks[124]. - The internal control system includes financial, operational, and compliance monitoring to safeguard assets and ensure adherence to laws and regulations[124]. - The company has implemented a three-line defense model for risk management, continuously assessing risks related to business activities[124]. - An independent review of the risk management and internal control system has been conducted, with reports submitted to the board and audit committee[127]. - The board acknowledges the effectiveness of the risk management and internal control system but recognizes the need for ongoing improvements[127]. - The company is committed to enhancing internal controls and monitoring processes, particularly at the subsidiary level[127]. - The audit committee has reviewed the annual performance and financial statements, ensuring transparency and accountability[123]. Shareholder Relations and Communication - The company emphasizes effective communication with shareholders to enhance investor relations and transparency[138]. - The company has established procedures for handling and disclosing inside information to ensure timely public announcements[133]. - The board is authorized to review and update the dividend policy as deemed appropriate[130]. Employee and Director Compensation - The company has established a competitive compensation policy to attract, retain, and motivate employees, including base salary, bonuses, and stock options[110]. - Employee compensation is determined based on individual responsibilities, qualifications, experience, and performance, with annual reviews conducted[111]. - Mr. Long Xiaobo's monthly salary has been reduced to HKD 23,000, while Mr. Zhang Li's salary is now HKD 20,000, and the salaries of Mr. Zuo Weiqi, Mr. Chen Yizhong, and Mr. Xiao Jie have been reduced to HKD 10,000 each[179]. - The service contracts for executive directors have been renewed for three years, expiring on July 30, 2021, and August 30, 2021, for different directors[180]. - The remuneration policy for directors and the five highest-paid individuals is detailed in the annual report[192]. Major Shareholders and Ownership - Major shareholders include Cheng Kee Investment Limited with 3,044,837,062 shares (17.35%) and Chun Da International Technology Development Limited with 4,097,813,965 shares (23.35%) [199]. - Dong Ying Financial Limited holds a significant mortgage interest with 8,647,536,796 shares, representing 49.29% of the total shares [199]. - The company has not established any arrangements for directors to benefit from acquiring shares or bonds of the company or any other corporation during the year [197].