Financial Performance - For the fiscal year ended December 31, 2023, the company's revenue was approximately HKD 1,497,236,000, an increase of about 20% compared to HKD 1,244,864,000 in 2022[35]. - The company's net profit attributable to shareholders for the fiscal year was approximately HKD 51,454,000, a 2% increase from HKD 50,340,000 in 2022[9]. - The gross profit for the fiscal year was approximately HKD 167,878,000, up about 20% from HKD 139,495,000 in 2022, primarily due to contributions from Hongyong Group[37]. - The average selling price of gold increased from RMB 380 per gram in 2022 to RMB 454 per gram in 2023, contributing to revenue growth[11]. - The company's net other income for the fiscal year was approximately HKD 2,906,000, compared to a net loss of HKD 1,161,000 in 2022[26]. - The net asset value per share increased by 1% from HKD 0.599 in 2022 to HKD 0.605 in 2023[10]. Production and Costs - For the year ended December 31, 2023, the total mining production was 363.30 thousand tons, with an average gold grade of 4.13 grams per ton[38]. - The processing mining production was 376.95 thousand tons, with an average gold grade of 3.86 grams per ton, resulting in a total gold output of 1,359.80 kilograms[38]. - The sales volume of gold bars was approximately 1.95 tons, generating a revenue of about HKD 859,543,000, with a cost of sales of approximately HKD 858,590,000, resulting in a gross profit of HKD 953,000[45]. - The sales cost increased by approximately 76% to HKD 470,768,000, primarily due to a decrease in the average gold grade from 5.15 grams per ton in 2022 to 3.60 grams per ton in 2023[59]. - Exploration and mining expenses totaled HKD 335,045,000, with exploration and development costs at HKD 115,932,000 and mining costs at HKD 219,113,000[7]. Assets and Liabilities - As of December 31, 2023, the total assets and net assets of the group were approximately HKD 4,554,860,000 and HKD 2,461,419,000, respectively[46]. - As of December 31, 2023, the group had cash and cash equivalents of approximately HKD 157,887,000, an increase from HKD 143,105,000 in 2022[63]. - As of December 31, 2023, the group's bank and other borrowings amounted to approximately HKD 563.71 million, a significant increase from HKD 160.91 million in 2022[86]. - The group's debt-to-equity ratio rose to 23.6% in 2023, up from 8.5% in 2022, reflecting increased leverage due to the acquisition of Hongyong Group[86]. Employee and Operational Information - The group employed approximately 420 employees in mainland China and 8 employees in Hong Kong as of December 31, 2023[51]. - The employee costs for the group amounted to approximately HKD 31,699,000, an increase from HKD 23,873,000 in 2022[69]. - The group plans to suspend operations at the Tongguan County mineral processing plant in March 2024 for approximately six months to comply with new government regulations, while mining activities will continue[99]. Corporate Governance - The board of directors will continue to regularly review and supervise the company's corporate governance practices to ensure compliance with relevant listing rules and maintain a high level of corporate governance[118]. - The company has adopted corporate governance policies that comply with established best practices, ensuring the enhancement of group effectiveness and performance[134]. - The board aims to achieve gender equality by actively seeking female candidates for board positions, with a target to appoint at least one female board member by the end of 2024[194]. - The company has adopted a diversity policy to ensure a balanced representation of skills and experiences on the board, enhancing its effectiveness[181][195]. - The company has complied with the principles and code provisions of the corporate governance code as per the Hong Kong Stock Exchange rules for the fiscal year ending December 31, 2023[134]. Risk Management and Compliance - The company maintains a robust risk management and internal control system to safeguard shareholder investments and group assets, with the board responsible for its oversight[198]. - The board has reviewed the effectiveness of the risk management and internal control systems for the year ending December 31, 2023, covering all significant monitoring areas, and deemed them effective and appropriate[199]. - The company has established an insider information policy to ensure timely and equal public disclosure of insider information in compliance with applicable laws[200]. - The company has ensured that all relevant personnel are regularly reminded of the trading restrictions and notified of the "blackout periods"[200]. Strategic Outlook - The group anticipates that overall performance will enter a growth phase in 2024, supported by the operations of the Hongyong Group in gold mining[99]. - The group aims to explore investment opportunities to enhance its gold mining portfolio and expand market share in 2023[74]. - The group continuously monitors commodity price trends and will take necessary actions to mitigate potential risks[76]. - The group faces risks related to fluctuations in gold prices, which may impact production and operations, and will focus on efficiency and cost control to mitigate these risks[94].

Financial Performance - Government subsidies decreased from HKD 290,000 to HKD 238,000, a decline of 17.93%[1] - Bank deposit interest increased significantly from HKD 1,195,000 to HKD 1,788,000, representing a growth of 49.58%[1] - Rental income dropped from HKD 1,506,000 to HKD 821,000, a decrease of 45.54%[1] - Pre-tax profit before deductions was HKD 22,403,000, down from HKD 25,541,000, a decline of 12.56%[3] - The total comprehensive income for the year was HKD 34,823,000, compared to a loss of HKD 139,019,000 in the previous year[28] - For the year ended December 31, 2023, the total revenue was HKD 1,497,236,000, an increase of 20.3% from HKD 1,244,864,000 in 2022[30] - Gross profit for the same period was HKD 167,878,000, up 20.3% from HKD 139,495,000 in the previous year[30] - The net profit for the year was HKD 60,034,000, representing a 5.3% increase compared to HKD 57,006,000 in 2022[32] - Basic and diluted earnings per share were HKD 0.0139, down from HKD 0.0148 in the previous year[32] Assets and Liabilities - Current assets increased significantly, with inventories rising to HKD 87,749,000 from HKD 25,120,000[33] - Non-current assets, including property, plant, and equipment, rose to HKD 1,756,902,000, compared to HKD 1,391,712,000 in 2022[34] - Total liabilities increased to HKD 1,062,515,000 from HKD 874,428,000 in the previous year[36] - The company's net asset value increased to HKD 2,461,419,000, up from HKD 2,033,356,000 in 2022[36] - The group's total liabilities as of December 31, 2023, were approximately HKD 666,856,000, up from HKD 531,687,000 in 2022, indicating a rise of 25.4%[65] - The group's total borrowings increased to approximately HKD 563,710,000 as of December 31, 2023, from HKD 160,905,000 in 2022, primarily due to the acquisition of Hongyong Investment Co., Ltd.[159] - The debt-to-equity ratio as of December 31, 2023, was 24.3%, up from 8.5% in 2022[159] Revenue Sources - Major customer B contributed HKD 326,238,000 in revenue, down from HKD 792,140,000, a decrease of 58.77%[18] - The group's revenue from gold mining operations in China reached HKD 637,693,000 for the year ended December 31, 2023, compared to HKD 406,442,000 in 2022, representing a growth of 56.8%[68] - Revenue from gold recycling was HKD 859,543,000 in 2023, slightly up from HKD 838,422,000 in 2022, indicating a growth of 2.7%[68] - The gross profit from the gold mining segment was HKD 166,925,000, while the gold recycling segment contributed HKD 953,000, leading to a total gross profit of HKD 167,878,000[71] - The average selling price of refined gold increased from RMB 380 per gram in 2022 to RMB 454 per gram in 2023, contributing to a 57% increase in revenue from the gold mining business[135] Acquisitions and Investments - The acquisition of Hongyong Group was completed on July 21, 2023, with a total consideration of HKD 393,240,000 for 100% equity[105] - The acquisition contributed an additional profit of approximately HKD 10,697,000 to the company's earnings for the year[103] - The net cash inflow from the acquisition included cash and cash equivalents of HKD 94,804,000[111] - The goodwill arising from the acquisition was recorded at HKD 176,080,000, reflecting the value of assembled workforce and potential contracts[109] - The group has made strategic acquisitions, including the purchase of Hongyong Investment Limited and its subsidiaries, which have been consolidated into the gold mining business segment[55] Employee and Operational Costs - Total employee costs rose from HKD 23,873,000 to HKD 31,699,000, an increase of 32.73%[7] - The group employed approximately 420 staff in mainland China and 8 in Hong Kong as of December 31, 2023, with total employee costs amounting to approximately HKD 31,699,000, up from HKD 23,873,000 in 2022[152] - The group's administrative and other expenses increased by approximately HKD 14,742,000 to about HKD 61,599,000 for the fiscal year ending December 31, 2023[120] - The financial costs for the group increased by approximately HKD 13,050,000 to about HKD 9,353,000 for the fiscal year ending December 31, 2023[128] Compliance and Governance - The company has adopted corporate governance policies in line with established best practices, ensuring compliance with the Hong Kong Stock Exchange's rules as of December 31, 2023[170] - The company has confirmed full compliance with the standard code of conduct for securities trading by all directors for the year ending December 31, 2023[173] - The audit committee, composed of independent non-executive directors, has reviewed the group's consolidated financial performance for the year ending December 31, 2023[185] Environmental and Community Focus - The company emphasizes environmental sustainability, safety production, and community support as key priorities in its business development strategy[179] - The company will continue to monitor and review waste management and pollution reduction measures to comply with relevant regulations[179] Future Outlook - The management remains optimistic about the group's future operational performance while being vigilant about ongoing uncertainties[157] - The group expects to complete the construction of a new tailings plant in Tongguan County within approximately six months, which will mitigate the impact on operational performance during the suspension of the existing processing plant[168] - The group will continue to explore long-term value-enhancing investment opportunities for shareholders[157]

Financial Performance - The company recorded a profit attributable to owners of approximately HKD 13,930,000 for the six months ended June 30, 2023, a decrease from HKD 26,832,000 for the same period in 2022 [5]. - The overall net profit decreased by about 47% year-on-year, mainly due to a decline in the average gold ore grade mined in 2023 [50]. - Basic and diluted earnings per share for the period were HKD 0.41, compared to HKD 0.79 for the same period in 2022 [58]. - The net profit for the six months ended June 30, 2023, was HKD 16,080 thousand, compared to HKD 30,257 thousand in 2022, reflecting a decline of approximately 46.8% [78]. - For the six months ended June 30, 2023, the company's pre-tax profit was HKD 22,720,000, a decrease of 35.5% compared to HKD 35,331,000 for the same period in 2022 [153]. Revenue and Sales - Revenue for the six months ended June 30, 2023, was HKD 676,548 thousand, significantly up from HKD 179,593 thousand in the same period of 2022, marking an increase of approximately 276.5% [78]. - The group achieved a revenue growth of approximately 277% year-on-year, primarily due to the expansion into gold recycling business since the second half of 2022 [49]. - The total revenue from gold recovery operations for the six months ended June 30, 2023, was HKD 110,844,000, compared to HKD 78,456,000 for the same period in 2022, reflecting a year-on-year increase of 41.3% [148]. - The gold mining business generated revenue of approximately HKD 192,423,000, an increase of about 7.1% compared to HKD 179,593,000 in the same period last year, driven by an increase in the average selling price of gold [122]. - The gold recycling business contributed approximately HKD 484,125,000 in revenue during the interim period, with a sales cost of about HKD 483,541,000, resulting in a minimal gross profit of approximately HKD 584,000 [131]. Costs and Expenses - Sales costs increased by approximately 23.6% to HKD 143,442,000 compared to HKD 116,008,000 in the same period last year [17]. - Gross profit for the same period was HKD 49,565 thousand, down from HKD 63,585 thousand in 2022, indicating a decrease of about 22% [78]. - Administrative and other expenses were approximately HKD 22,669,000, a decrease of about 5.3% compared to HKD 23,950,000 in the same period last year, mainly due to reduced employee costs [122]. - The total comprehensive expenses for the period were HKD 50,373 thousand, down from HKD 72,129 thousand in the previous year, indicating a decrease of approximately 30.2% [78]. - The company reported a decrease in administrative and other expenses to HKD 22,669 thousand from HKD 23,950 thousand, a reduction of about 5.3% [78]. Assets and Liabilities - The total assets and net assets of the group as of June 30, 2023, were approximately HKD 3,508,096,000 and HKD 1,982,983,000, respectively [25]. - The current ratio decreased to approximately 0.17 from 0.28 as of December 31, 2022 [25]. - The total bank and other borrowings amounted to approximately HKD 154,262,000, a decrease from HKD 160,905,000 as of December 31, 2022 [26]. - The debt-to-equity ratio was approximately 8.3% as of June 30, 2023, compared to 8.5% as of December 31, 2022 [26]. - As of June 30, 2023, total assets amounted to HKD 3,402,165 thousand, a slight decrease from HKD 3,439,471 thousand as of December 31, 2022, representing a decline of approximately 1.1% [59]. Cash Flow and Financing - Cash and cash equivalents decreased to HKD 73,792 thousand from HKD 143,105 thousand, a reduction of about 48.3% [59]. - The net cash used in operating activities for the first half of 2023 was HKD (46,241,000), compared to HKD (12,431,000) in the same period of 2022, indicating a worsening cash flow situation [101]. - The company incurred a loss of HKD 4,827,000 from financing activities in the first half of 2023, contrasting with a gain of HKD 27,544,000 in the same period of the previous year [101]. - Interest expenses on unsecured bank and other borrowings decreased to HKD 7,791,000 for the six months ended June 30, 2023, down from HKD 12,007,000 in the same period of 2022, representing a reduction of 35.5% [146]. - The company's cash and cash equivalents decreased to HKD 15,184,000 as of June 30, 2023, from HKD 6,717,000 as of December 31, 2022 [175]. Strategic Initiatives - The company plans to closely monitor commodity price trends and take necessary actions to mitigate potential risks [38]. - The company remains committed to corporate social responsibility, focusing on environmental sustainability and community support [39]. - The group plans to leverage the growing demand for gold recycling to expand market share and enhance its reputation in the gold industry in mainland China [49]. - The company plans to continue seeking opportunities and exploring other investment avenues to enhance its portfolio and provide returns to shareholders in the post-pandemic era [72]. - The company has expanded its operations into gold recycling in China, which is now considered a new reportable segment [111]. Acquisitions and Investments - The group successfully acquired Hong Yong Investment Limited and its subsidiaries on July 21, 2023, which has over 16 tons of gold reserves [50]. - The company completed the acquisition of mining licenses, resulting in an addition of approximately HKD 13,779,000 to other intangible assets [183]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the interim period [46]. - The company has a total of HKD 1,510,989,000 in share premium and reserves as of June 30, 2023, down from HKD 1,555,210,000 at the end of 2022, reflecting a decrease of approximately 2.9% [82]. Employee and Operational Metrics - Employee costs for the interim period amounted to approximately HKD 9,171,000, down from HKD 11,343,000 for the same period in 2022 [47]. - Total employee costs for the six months ended June 30, 2023, were HKD 9,171,000, a decrease of 19.2% from HKD 11,343,000 in the same period of 2022 [178]. - The company engaged in exploration and mining activities, with a total mining output of 88.9 thousand tons and an average gold grade of 3.89 grams per ton during the interim period [127]. - The company has completed approximately 4,353 meters of pit exploration and 2,679 meters of underground drilling during the interim period [130]. - The company’s exploration and evaluation expenses for the first half of 2023 were HKD (3,199,000), a decrease from HKD (7,001,000) in the same period of 2022, indicating a reduction in exploration activities [101].

Financial Performance - The company's profit for the six months ended June 30, 2023, was HKD 16,080,000, compared to HKD 30,257,000 for the same period in 2022, representing a decrease of approximately 46.8%[22] - Revenue for the six months ended June 30, 2023, was HKD 676,548,000, significantly up from HKD 179,593,000 in the same period last year, indicating an increase of approximately 276.5%[19] - The gross profit margin for the period was HKD 49,565,000, down from HKD 63,585,000 in the previous year, reflecting a decline of about 22%[19] - The company reported a basic and diluted earnings per share of HKD 0.41, compared to HKD 0.79 in the previous year, a decrease of approximately 48.2%[6] - The total comprehensive expenses for the period amounted to HKD 50,373,000, down from HKD 72,129,000 in the same period last year, a reduction of about 30.2%[21] - The group's reported segment performance for the six months ended June 30, 2023, was HKD 49,565,000, a decrease from HKD 63,585,000 in the same period of 2022, representing a decline of approximately 22%[39] - The group's pre-tax profit for the six months ended June 30, 2023, was HKD 22,720,000, down from HKD 35,331,000 in 2022, indicating a decrease of about 36%[39] - The net profit for the period was HKD 16,080,000, compared to HKD 30,257,000 in the previous year, reflecting a decline of approximately 47%[39] - For the six months ended June 30, 2023, the company recorded a profit attributable to shareholders of approximately HKD 13,930,000, a decrease from HKD 26,832,000 for the same period in 2022[80] Revenue Sources - The company has initiated a new business segment in gold recycling in China, contributing to its revenue growth[18] - The group reported total revenue from gold recovery operations of HKD 484,125,000 for the six months ended June 30, 2023, compared to HKD 483,541,000 in the previous year, showing a slight increase[57] - Revenue from gold mining operations for the six months ended June 30, 2023, was approximately HKD 192,423,000, an increase of about 7.1% compared to HKD 179,593,000 in the same period of 2022, primarily due to an increase in the average selling price of gold[81] - The company recorded a revenue of approximately HKD 676,548,000 for the six months ended June 30, 2023, compared to HKD 179,593,000 for the same period in 2022, representing a significant increase driven by the expansion into gold recycling business, which contributed approximately HKD 484,125,000 to the revenue[107] Costs and Expenses - The cost of inventory recognized as an expense included mining costs of approximately HKD 110,844,000 for the current period, compared to HKD 78,456,000 for the same period last year, an increase of about 41%[47] - The cost of sales for the gold mining business was approximately HKD 143,442,000, an increase of about 23.6% from HKD 116,008,000 in the same period last year, leading to a gross profit of approximately HKD 48,981,000 with a gross margin of 25.5%[110] - Administrative and other expenses were approximately HKD 22,669,000, a decrease of about 5.3% compared to HKD 23,950,000 in the same period last year, primarily due to reduced employee costs[108] - The financial costs for the period were HKD 5,074,000, slightly down from HKD 5,513,000 in the previous year, indicating a decrease of about 7.9%[19] Assets and Liabilities - The net current liabilities as of June 30, 2023, were approximately HKD 520,250,000[12] - The total assets as of June 30, 2023, were HKD 2,881,915,000, compared to HKD 2,907,784,000 at the end of 2022, showing a slight decrease of about 0.9%[12] - The group’s total assets as of June 30, 2023, included other receivables of HKD 22,819,000, down from HKD 40,785,000 as of December 31, 2022, indicating a decrease of approximately 44%[53] - The company's total bank and other borrowings as of June 30, 2023, were approximately HKD 154,262,000, a decrease from HKD 160,905,000 as of December 31, 2022[84] - The company's asset-liability ratio was approximately 8.3% as of June 30, 2023, slightly down from 8.5% as of December 31, 2022[84] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and compliance with relevant regulations[128] - The audit committee, composed of three independent non-executive directors, is responsible for ensuring the quality and integrity of internal controls and reviewing the group's accounting principles and practices[130] - The interim financial statements for the six months ending June 30, 2023, were reviewed by a certified public accountant in accordance with the relevant standards[132] - The company has complied with the standards set forth in the Appendix 10 of the Listing Rules regarding securities trading by directors as of June 30, 2023[129] Future Outlook - The company plans to expand its market share and enhance its reputation in the gold industry in mainland China, capitalizing on the growing demand for gold recycling[91] - The company anticipates new opportunities in the post-pandemic era to enhance its investment portfolio despite uncertainties in the economic recovery process in 2023[123] - The average gold grade is expected to gradually improve in the second half of 2023, which is anticipated to enhance overall performance[141] - The company successfully acquired Hong Yong Investment Limited and its subsidiaries on July 21, 2023, which is expected to contribute positively to performance for the remainder of the year[141] - Hong Yong Group holds over 16 tons of gold reserves based on existing mining licenses, which will enhance the company's operational capabilities[141] Dividends and Shareholder Equity - The company did not declare or recommend any dividends for the six months ended June 30, 2023, consistent with the same period in 2022[69] - The board of directors does not recommend the distribution of an interim dividend for the six months ending June 30, 2023[133] - The company has issued 3,392,272,221 ordinary shares, with total shareholder equity of approximately HKD 339,227,000 as of June 30, 2023[116] Risk Management - The company's profitability is highly dependent on local and international gold prices, which are influenced by global economic conditions and stability[122] - The company plans to closely monitor commodity price trends and take necessary actions to mitigate potential risks[122] - The company has no collateralized assets for bank and other borrowings as of June 30, 2023[117]

Environmental Sustainability - The company implemented energy-saving measures, including replacing traditional bulbs with more efficient LED lights in offices[1]. - The company plans to reduce greenhouse gas emissions from electricity procurement by 12.5% by 2025[20]. - The company encourages employees to switch to electric vehicles and carpooling to further reduce gasoline consumption[1]. - The company has established a "stop and restart" policy for operations in response to national regulations, ensuring compliance with energy-saving policies[1]. - The company aims to improve its water circulation system and adopt advanced recycled water facilities to enhance water efficiency[10]. - The company is focused on innovation and technology deployment to reduce its carbon footprint, aligning with the Paris Agreement goals[12]. - The board will hold quarterly meetings to discuss potential climate risks and mitigation measures[19]. - The group has established climate-related indicators and goals to assess and manage climate-related risks and opportunities[43]. - The group emphasizes environmental sustainability and community support as key priorities in its operations[152]. Employee Statistics and Management - The group had a total of 205 employees in the fiscal year 2021, which increased to 206 in the fiscal year 2022[47]. - The group has a total of 206 employees, with 165 male and 41 female[23]. - Employee turnover in China was 30, resulting in a turnover rate of 14.9% for the fiscal year 2022[61]. - Employee turnover in Hong Kong was 3, with a turnover rate of 60.0% for the fiscal year 2022[61]. - Total employee turnover for the group was 33, leading to an overall turnover rate of 16.0% for the fiscal year 2022[61]. - The total employee turnover rate was 16.0%, with a significant turnover rate of 63.2% for employees under 30 years old[78]. - The group strictly prohibits any form of unfair or illegal dismissal, adhering to local regulations and internal policies[74]. - The group promotes equal opportunities and anti-discrimination policies, ensuring a fair and respectful workplace[40]. - The group emphasizes transparent recruitment and promotion processes to ensure fairness and competitiveness[64]. - Employee costs for the year amounted to approximately HKD 23.87 million, a slight decrease from HKD 24.35 million in 2021[144]. Financial Performance - The group's sales cost for the year ended December 31, 2022, was approximately HKD 1,105,369,000, an increase of about 148% compared to HKD 444,857,000 in the previous year, primarily due to the new gold recovery business segment[91]. - Revenue from the gold mining business for the year was approximately HKD 406,442,000, a decrease of about 40% from HKD 681,721,000 in the previous year, attributed to strict COVID-19 control measures in China[94]. - The net profit attributable to the company's owners for the year was approximately HKD 50,340,000, a decrease of about 64% from HKD 138,677,000 in the previous year[93]. - The group incurred a net loss of approximately HKD 1,161,000 in other income for the year, compared to a net gain of HKD 6,980,000 in the previous year[85]. - The group’s administrative and other expenses increased by approximately HKD 1,567,000 to HKD 60,032,000, mainly due to one-time expenses such as ineffective exploration costs[92]. - The gross profit from operations was approximately HKD 138,385,000, with a gross margin of 34.0%, down from HKD 236,864,000 and a gross margin of 34.7% in the previous year, reflecting a decrease of about 42%[106]. - The total assets and net assets of the group as of December 31, 2022, were approximately HKD 3,650,157,000 and HKD 2,033,356,000, respectively, compared to HKD 3,897,027,000 and HKD 2,172,375,000 in the previous year[117]. - The group’s cash and bank balances as of December 31, 2022, were approximately HKD 143,105,000, down from HKD 157,700,000 in the previous year[105]. - The total exploration and mining expenses for the year were HKD 207,226,000, which included HKD 44,913,000 for exploration and development and HKD 162,313,000 for mining operations[112]. - The underground mining production for the year ended December 31, 2022, was 192.71 thousand tons, with an average gold grade of 5.15 grams per ton[110]. Corporate Governance - The board of directors is committed to regularly reviewing and monitoring corporate governance practices to ensure compliance with relevant regulations[167]. - The company has adhered to the corporate governance code principles and rules as outlined in the Hong Kong Stock Exchange listing rules for the fiscal year ending December 31, 2022[164]. - The board believes that good corporate governance is crucial for enhancing the group's effectiveness and performance, as well as safeguarding shareholder interests[164]. - The board is responsible for integrating environmental, social, and governance factors into business operations, considering their impact on the group's activities[167]. - The company has received annual independence confirmation from all independent non-executive directors, affirming their independent status[171]. - The company currently does not have a chairman or CEO since the resignations of Dr. Yu Hsien-Sheng and Mr. Wang Hui in January and June 2016, respectively[187][189]. - The board of directors consists of at least three independent non-executive directors, ensuring a balance of power and protection of shareholder interests[195]. - All directors attended 7 out of 7 board meetings during the year, indicating full engagement in governance[198]. - The company secretary reports to the executive directors since there is no chairman or CEO, ensuring proper communication within the board[191]. - Continuous professional development for all directors includes training on regulatory updates and responsibilities related to their roles[200]. Market and Economic Conditions - The company's profitability is highly dependent on local and international gold prices, which are influenced by the global economic environment and stability[173]. - Despite facing strong resistance due to rising interest rates and a strong US dollar in 2022, gold prices remained stable, indicating its role as a safe-haven asset[173]. - According to the World Gold Council, 2022 was the strongest year for gold demand in a decade, highlighting increased interest from investors and global central banks[173]. - The company anticipates that ongoing inflation relief and a weakening dollar, along with rising recession and geopolitical risks, will support gold prices in 2023[173]. - The group faces risks related to fluctuations in gold prices, which may impact production and operations, and will utilize its technological and management advantages to enhance efficiency and monitor costs closely[127]. - The group continued to pursue long-term business growth and sustainable profit growth, successfully expanding its gold-related business in mainland China in the second half of 2022[133]. - The gold recycling business, although having a lower profit margin, helped broaden revenue sources and increase market share in the mainland gold industry[133].

Financial Performance - The company's profit before tax for 2022 was HKD 70,497,000, a decrease of 60.5% from HKD 178,451,000 in 2021[1] - The total comprehensive income for the year was a loss of HKD 196,025,000 in 2022, compared to a gain of HKD 67,937,000 in 2021[23] - The net profit for the year was HKD 57,006,000, a decrease of 63.3% from HKD 155,300,000 in 2021[44] - The group's profit attributable to equity holders for the year was approximately HKD 50,340,000, a decrease of about 64% from approximately HKD 138,677,000 in the corresponding period of 2021[139] - Basic and diluted earnings per share were HKD 0.0148, down from HKD 0.0409 in the previous year[48] Revenue and Sales - The company's revenue from customer contracts in 2022 was HKD 1,244,864,000, significantly up from HKD 681,721,000 in 2021, representing an increase of 82.6%[15] - The total revenue for the year ended December 31, 2022, was HKD 1,244,864,000, a significant increase from HKD 681,721,000 in 2021, representing an increase of approximately 82.5%[44] - The total sales of goods for the year amounted to HKD 934,709,000, a decrease from HKD 1,001,936,000 in 2021, indicating a decline in sales performance[76] - The company's revenue from gold mining operations was approximately HKD 406,442,000, a decrease of about 40% from HKD 681,721,000 in the previous year, primarily due to strict COVID-19 control measures in China[115] - The gold recovery business generated revenue of approximately HKD 838,422,000 with a sales cost of about HKD 837,312,000, resulting in a gross profit of approximately HKD 1,110,000[116] Expenses and Costs - The cost of sales for the year was HKD 1,105,369,000, compared to HKD 444,857,000 in the previous year, resulting in a gross profit of HKD 139,495,000, down from HKD 236,864,000, indicating a decrease of about 41%[44] - The group's sales cost was approximately HKD 1,105,369,000, an increase of about 148% compared to HKD 444,857,000 in the corresponding period of 2021, primarily due to the new gold recovery business[133] - The company's administrative and other expenses increased by approximately HKD 1,567,000 to about HKD 60,032,000, mainly due to one-time expenses such as ineffective exploration costs[111] - The total employee costs decreased slightly to HKD 23,873,000 in 2022 from HKD 24,351,000 in 2021, showing cost management efforts[68] Assets and Liabilities - The total assets minus current liabilities decreased to HKD 2,907,784,000 in 2022 from HKD 3,234,701,000 in 2021, a decline of 10.1%[5] - The total liabilities decreased to HKD 874,428,000 in 2022 from HKD 1,062,326,000 in 2021, a decline of 17.7%[30] - The company's equity attributable to owners decreased to HKD 1,894,437,000 in 2022 from HKD 2,015,405,000 in 2021, a decrease of 6.0%[30] - The company's total assets and net assets as of December 31, 2022, were approximately HKD 3,650,157,000 and HKD 2,033,356,000, respectively, compared to HKD 3,897,027,000 and HKD 2,172,375,000 in the previous year[117] Taxation - The income tax expense for 2022 was HKD 13,491,000, down from HKD 23,151,000 in 2021, reflecting a reduction of 41.5%[1] - The income tax expense for the year was HKD 13,491,000, down from HKD 23,151,000 in 2021, reflecting a lower taxable income[71] Business Operations - The company began gold recycling operations in China in the second half of the year, which is considered a new reportable segment[14] - The group plans to gradually restore normal production and expand exploration and mining activities in 2023 as COVID-19 restrictions ease[150] - The group has successfully expanded its gold-related business in mainland China by purchasing old gold from other supply chain companies and refining it[151] Market Conditions - The group's profitability is highly dependent on local and international gold prices, which are influenced by the global economic environment and stability[176] - Despite challenges in 2022 due to rising interest rates and a strong US dollar, gold prices remained stable, with 2022 being the strongest year for gold demand in a decade according to the World Gold Council[176] - The company anticipates that inflation easing and a weakening dollar, along with increased recession and geopolitical risks, will support gold prices in 2023[176] Corporate Governance - The company has not declared or proposed any dividends for the year ended December 31, 2022, consistent with the previous year[72] - The group has not engaged in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[120] - No repurchase of listed securities occurred during the year, and no purchases or sales of the company's listed securities were made by the company or its subsidiaries[178]

Financial Performance - For the six months ended June 30, 2022, Tongguan Gold Group Limited reported an unaudited profit attributable to owners of approximately HKD 26,832,000, a decrease of about 60% from HKD 67,141,000 for the same period in 2021[5]. - Revenue from gold mining operations was approximately HKD 179,593,000, down about 35.9% from HKD 280,143,000 in the same period of 2021, primarily due to production and sales volume declines caused by enhanced pandemic measures in mainland China[6]. - Gross profit for the same period was HKD 63,585,000, down 36.5% from HKD 100,006,000 year-on-year[39]. - Profit before tax decreased to HKD 35,331,000, a decline of 54.7% from HKD 77,893,000 in the previous year[39]. - Net profit for the period was HKD 30,257,000, down 59.7% from HKD 75,030,000 in the prior year[41]. - Total comprehensive income for the period was a loss of HKD 72,129,000, compared to a gain of HKD 99,672,000 in the same period last year[41]. - Basic and diluted earnings per share for the period were HKD 0.79, down from HKD 1.98 in the previous year[41]. - The company reported a significant foreign exchange loss of HKD 98,130,000 for the period, compared to a gain of HKD 19,604,000 in the same period last year[39]. Assets and Liabilities - As of June 30, 2022, total assets and net assets were approximately HKD 3,760,921,000 and HKD 2,100,246,000, respectively, compared to HKD 3,897,027,000 and HKD 2,172,375,000 as of December 31, 2021[17]. - Current liabilities increased to HKD 707,611,000 from HKD 662,326,000 at the end of December 2021[45]. - The company's net asset value decreased to HKD 2,100,246,000 from HKD 2,172,375,000 at the end of December 2021[45]. - The company had a net current liability of approximately HKD 490,966 thousand as of June 30, 2022[58]. - Total borrowings amounted to approximately HKD 199,635,000 as of June 30, 2022, an increase from HKD 177,019,000 as of December 31, 2021, with a debt-to-equity ratio of 10.2%[18]. Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD (12,431) thousand for the six months ended June 30, 2022, compared to HKD 51,296 thousand in the same period last year[54]. - Cash used in investing activities amounted to HKD (37,207) thousand, a slight decrease from HKD (39,645) thousand in the previous year[54]. - The net decrease in cash and cash equivalents was HKD (22,094) thousand, an improvement from HKD (64,543) thousand in the previous year[54]. - As of June 30, 2022, the company had cash and cash equivalents of HKD 130,285 thousand, up from HKD 68,423 thousand a year earlier[54]. Operational Highlights - Exploration and mining expenses totaled approximately HKD 85,437,000 during the interim period, which includes HKD 15,957,000 for exploration and development projects and HKD 69,480,000 for mining activities[17]. - The average gold grade for the mining operations was 5.05 grams per ton, with a total mining output of 78.17 thousand tons for the six months ended June 30, 2022[11]. - The company anticipates an overall improvement in business performance for the second half of 2022, driven by the easing of pandemic restrictions and increased exploration and mining activities[29]. Corporate Governance - The board of directors is responsible for formulating the group's business strategy and management objectives, while management is authorized to handle the implementation and daily operations[140]. - The audit committee consists of three independent non-executive directors responsible for ensuring the quality and integrity of internal controls and reviewing accounting principles[141]. - The company has confirmed compliance with the standards set out in the Securities Trading Code as of June 30, 2022[138]. - The board will continue to review and monitor corporate governance practices to ensure compliance with listing rules[140]. Shareholder Information - As of June 30, 2022, the company issued 3,392,272,221 ordinary shares, with total shareholder equity amounting to approximately HKD 339,227,000[22]. - Major shareholders include Huang Aitong with 508,334,000 shares (14.99%), Hu Jianzhong with 470,000,000 shares (13.86%), and Lin Changdong with 330,000,000 shares (9.73%)[148]. - The company has adopted a new share option plan approved on June 13, 2022, following the expiration of the old plan on May 24, 2022[155]. - The new share option plan allows the company to grant options to selected participants, rewarding their contributions to the group[159].

Financial Performance - The company reported a profit of HKD 155,300,000 for the fiscal year ending December 31, 2021, compared to a loss of HKD 1,513,000 in 2020, marking an increase of HKD 156,813,000[8]. - Revenue for the gold mining business reached HKD 681,721,000, an increase of approximately 108% from HKD 327,710,000 in 2020, primarily due to increased ore grades and sales volume[13]. - The gross profit margin improved to 35% in 2021 from 22% in 2020, driven by higher ore grades, with the average ore grade rising from 3.23 g/t in 2020 to 4.87 g/t in 2021[10][11]. - The increase in sales cost was consistent with revenue growth, rising to HKD 444,857,000 from HKD 255,198,000 in 2020, an increase of approximately 74%[13]. - For the year ended December 31, 2021, the total exploration, development, and mining expenditures amounted to approximately HKD 269,351,000, with mining expenditures specifically at HKD 231,041,000[25]. - The company’s financial performance and business status for the fiscal year ending December 31, 2021, are detailed in the consolidated financial statements on pages 93 to 167[136]. Assets and Liabilities - As of December 31, 2021, the total assets and net assets of the group were approximately HKD 3,897,027,000 and HKD 2,172,375,000, respectively, compared to HKD 3,777,831,000 and HKD 1,949,138,000 in 2020[34]. - The group’s bank balances and cash as of December 31, 2021, were approximately HKD 157,700,000, an increase from HKD 130,293,000 in 2020[34]. - The group’s total borrowings were approximately HKD 177,019,000 as of December 31, 2021, down from HKD 239,696,000 in 2020, resulting in a debt-to-equity ratio of 8.8%[35]. - The company’s distributable reserves as of December 31, 2021, amounted to approximately HKD 320,239,000, compared to HKD 319,862,000 in 2020[141]. Operational Highlights - The total mining output for the year was 300.15 thousand tons, with a refined gold output of 22.23 thousand tons[22]. - The company completed approximately 5,661 meters of pit exploration and 13,282 meters of underground drilling during the fiscal year[19]. - The average gold grade in the refined product was 63.44 g/t, with a total of 1,410.11 kg of metal in the refined product[22]. - The new selection plant Phase I has been fully operational since 2021, with a maximum daily processing capacity of 1,500 tons[52]. - The company's profitability significantly improved in 2021, driven by increased use of high-grade ore and economies of scale from the new selection plant[52]. Human Resources - The group employed approximately 205 employees as of December 31, 2021, with total employee costs amounting to HKD 24,351,000, up from HKD 21,784,000 in 2020[41]. - The remuneration committee held two meetings during the year to approve discretionary bonus payments for executive directors and senior management[89]. - As of December 31, 2021, the remuneration range for senior management was as follows: 1 individual earned between 0 HKD and 1,000,000 HKD[91]. Corporate Governance - The company has adopted corporate governance policies in line with the best practices, ensuring compliance with the Hong Kong Stock Exchange's corporate governance code[67]. - The board of directors has held a total of seven meetings during the year, with attendance records showing that all members attended six or more meetings[80]. - The company has maintained at least three independent non-executive directors throughout the year, ensuring compliance with independence requirements[77]. - The company has established a written authority framework to clarify the responsibilities of the board and management[78]. - The audit committee held four meetings during the year to review the group's annual and interim financial statements and assess internal control procedures[108]. Risk Management and Compliance - The company has maintained an effective risk management and internal control system to safeguard shareholder investments and group assets, with the board overseeing the system's efficiency[128]. - The board has reviewed the effectiveness of the risk management and internal control systems for the fiscal year ending December 31, 2021, and found them to be effective and appropriate[129]. - The company has a policy for employees and directors regarding compliance and ethical conduct[102]. Sustainability and ESG - The company is committed to sustainable development and responsible gold mining practices, focusing on ethical operations and community cooperation[188]. - The company aims to enhance its sustainable development capabilities and resilience in response to the increasing importance of environmental, social, and governance (ESG) factors globally[189]. - The company conducted an annual survey with key stakeholders to identify significant ESG risks and opportunities for long-term value creation[194]. - The company quantifies its ESG performance through key performance indicators, including greenhouse gas emissions and employee training hours[195]. - The company emphasizes transparency and fairness in reporting its sustainability achievements and potential ESG-related risks[196]. Shareholder Relations - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[115]. - The company has adopted a dividend policy aiming for a target annual dividend payout ratio of approximately 20% of the net profit attributable to shareholders, with a maximum total dividend not exceeding 30% of the net profit for any fiscal year[124]. - The board of directors is responsible for determining the dividend payment rate, considering factors such as the group's actual and projected financial performance, retained earnings, and operational cash flow[125]. Market Outlook - The company remains cautious due to ongoing global market uncertainties and will continue to seek excellent investment opportunities to expand its gold mining portfolio[53]. - The outlook for 2022 indicates that tensions in US-China relations and future US monetary policy will continue to exacerbate market volatility[53]. - The company believes that gold will further enhance its role as a safe-haven and value-preserving asset in the current economic climate[53].

Financial Performance - The company reported an unaudited profit attributable to owners of HKD 67,141,000 for the six months ended June 30, 2021, compared to a loss of HKD 5,804,000 for the same period in 2020, marking a turnaround of approximately HKD 72,945,000[6]. - Revenue from gold mining operations reached approximately HKD 280,143,000, a 223% increase from HKD 86,728,000 in the same period of 2020, driven by increased gold prices and sales volume[7]. - The gross profit from operations was approximately HKD 100,006,000, up 347% from HKD 22,388,000 in the previous year, with an average gross margin of 36%, an increase of 10 percentage points from 26%[7]. - The net profit for the period was HKD 75,030,000, a turnaround from a loss of HKD 4,842,000 in the previous year[33]. - The company reported other comprehensive income of HKD 24,642,000 for the period, compared to a loss of HKD 25,546,000 in the previous year[33]. - The company’s total comprehensive income for the period was HKD 99,672, compared to HKD 88,093 in the previous year, representing an increase of approximately 13.5%[44]. Revenue and Costs - For the six months ended June 30, 2021, the company reported revenue of HKD 280,143,000, a significant increase from HKD 86,728,000 in the same period of 2020, representing a growth of 223%[33]. - The company reported a significant increase in the cost of inventory recognized as an expense, amounting to HKD 141,787,000 for the six months ended June 30, 2021, compared to HKD 49,149,000 in the same period of 2020[76]. - The company’s total employee costs for the six months ended June 30, 2021, amounted to HKD 11,067,000, an increase from HKD 7,354,000 in the same period of 2020, reflecting a rise of 50%[76]. Assets and Liabilities - As of June 30, 2021, the total assets and net assets of the group were HKD 3,764,390,000 and HKD 2,048,810,000, respectively, with a current ratio of 0.22[17]. - The group had bank balances and cash of HKD 68,423,000 as of June 30, 2021, a decrease from HKD 130,293,000 at the end of 2020[17]. - The debt-to-equity ratio was 9.5% as of June 30, 2021, down from 13.2% at the end of 2020, indicating a reduction in total borrowings[18]. - The company’s total liabilities decreased from HKD 1,038,045,000 as of December 31, 2020, to HKD 1,039,044,000 as of June 30, 2021, indicating a slight increase of 0.1%[39]. - The company’s total current liabilities amounted to HKD 83,525,000, a decrease of 31.5% from HKD 121,791,000 as of December 31, 2020[123]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 51,296,000, up from HKD 34,283,000 in the same period of 2020, reflecting a growth of approximately 49.7%[48]. - Cash used in investing activities amounted to HKD 39,645,000, a decrease from HKD 52,692,000 in the previous year, indicating improved cash flow management[48]. - The company reported a net decrease in cash and cash equivalents of HKD 64,543,000 for the six months ended June 30, 2021, compared to an increase of HKD 23,612,000 in the same period of 2020[48]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules[160]. - The company’s audit committee consists of three independent non-executive directors responsible for ensuring the quality and integrity of internal controls[163]. - The remuneration committee is responsible for recommending overall remuneration policies and procedures for directors and senior management[164]. Shareholder Information - Major shareholder Huang Ai-Dong holds 508,334,000 shares, representing 14.99% of the total issued share capital[171]. - Major shareholder Hu Jian-Zhong holds 470,000,000 shares, representing 13.86% of the total issued share capital[171]. - Major shareholder Lin Chang-Tung holds 330,000,000 shares, representing 9.73% of the total issued share capital[171]. Future Plans and Strategies - The company plans to expand its gold mining portfolio and accelerate modern mining and processing efforts in the future[31]. - The company emphasizes the importance of corporate social responsibility and plans to increase investments in safety and environmental initiatives[30]. Stock Options and Dividends - The new stock option plan allows the issuance of a total of 339,227,222 shares, representing approximately 10% of the company's issued ordinary share capital as of August 25, 2021[181]. - The board of directors did not recommend the distribution of an interim dividend for the six months ended June 30, 2021[195].

Financial Performance - The company reported a loss attributable to shareholders of HKD 6,330,000 for the fiscal year ended December 31, 2020, a significant improvement from a loss of HKD 21,071,000 in 2019[9]. - Revenue from gold mining operations increased by approximately 71% to HKD 327,710,000 in 2020, compared to HKD 191,436,000 in 2019, driven by higher gold prices and increased sales volume[13]. - The gross profit margin improved to 22% in 2020, up from 12% in 2019, primarily due to rising gold prices leading to higher average selling prices[10]. - The company achieved a gross profit of approximately HKD 72,512,000 in 2020, a 223% increase from HKD 22,419,000 in 2019[13]. - Administrative and other expenses were approximately HKD 66,761,000, a slight increase of about 0.17% from HKD 66,651,000 in 2019, mainly due to rising employee costs and one-time expenses[11]. - The company faced a mining loss rate of 13.8% and a dilution rate of 5.5% in estimating mineral reserves[29][30]. - The average gold price was reported at USD 1,307.8 per ounce[33]. - The company did not recommend the distribution of dividends for the fiscal year ending December 31, 2020[139]. Assets and Liabilities - The company’s net asset value per share increased from HKD 0.541 in 2019 to HKD 0.575 in 2020, attributed to the acquisition of properties, plants, and equipment[11]. - The total assets and net assets of the company as of December 31, 2020, were approximately HKD 3,777,831,000 and HKD 1,949,138,000, respectively, showing an increase from HKD 3,365,977,000 and HKD 1,835,105,000 in 2019[35]. - The company's bank balances and cash as of December 31, 2020, were approximately HKD 130,293,000, up from HKD 90,277,000 in 2019[35]. - The total borrowings of the company increased to approximately HKD 239,696,000 as of December 31, 2020, compared to HKD 161,339,000 in 2019, with a debt-to-equity ratio of 13.2%[35]. - As of December 31, 2020, the company's distributable reserves amounted to approximately HKD 319,862,000, a decrease from HKD 338,837,000 in 2019[142]. Mining Operations - Total mining output for the year was 269.24 thousand tons, with an average gold grade of 3.23 grams per ton[23]. - The average gold grade in the concentrate produced was 67.85 grams per ton, with a total metal content of 926.83 kilograms[23]. - The company completed approximately 13,667 meters of pit exploration and 16,896 meters of underground drilling during the fiscal year[20]. - Total exploration, development, and mining expenditures for the year ended December 31, 2020, amounted to approximately HKD 219,709,000, with exploration and development costs at HKD 87,965,000 and mining costs at HKD 131,744,000[26]. - As of December 31, 2020, the company's gold mineral resources and reserves included controlled resources of 4,071.5 thousand tons with a gold grade of 7.27 g/t, equating to 1,044 thousand ounces of gold[26]. Corporate Governance - The company has adopted corporate governance policies in line with the best practices, ensuring compliance with the Hong Kong Stock Exchange's corporate governance code[69]. - The board expressed gratitude to shareholders for their support and to all employees for their contributions over the past year[57]. - The company has confirmed that all independent non-executive directors are independent as per the requirements of the Hong Kong Stock Exchange[79]. - The company has a balanced board structure with at least three independent non-executive directors, ensuring diverse expertise[79]. - The company has established a board diversity policy aimed at enhancing performance through a diverse board composition in terms of skills, regions, industry experience, gender, and other qualifications[101]. Risk Management and Compliance - The company has a robust internal control and risk management framework in place to safeguard shareholder interests[69]. - The board of directors is responsible for maintaining an effective risk management and internal control system, which includes financial, operational, and compliance monitoring[130]. - The audit committee is tasked with monitoring the integrity of the company's financial statements and ensuring compliance with applicable laws and regulations[109]. - The company has not established a corporate governance committee, with the board itself responsible for corporate governance functions[103]. Environmental, Social, and Governance (ESG) - The group has adhered to its sustainable development strategy, focusing on environmental and social responsibilities in gold exploration and mining activities[189]. - The environmental, social, and governance (ESG) report outlines the group's commitment to responsible mining practices and community engagement[190]. - The group identified key ESG issues such as solid waste management, occupational health and safety, and supplier communication as critical areas of focus[194]. - The company aims to create long-term value for all stakeholders by integrating environmental, social, and economic considerations into its operations and decision-making[200]. - The board is ultimately responsible for ensuring the effective implementation of the company's ESG policies and reports[200]. Shareholder Information - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital and submit a written request specifying the meeting's purpose[118]. - The company provides multiple channels for shareholders to access information, including annual reports and announcements published on the company website[122]. - The company encourages shareholders to submit proposals for resolutions at special general meetings through the proper procedures[119]. - Major shareholders include Huang Aitong with 508,334,000 shares (14.99%), Hu Jianzhong with 470,000,000 shares (13.86%), and Lin Changdong with 330,000,000 shares (9.73%)[149].