[Clarification Announcement Regarding 2023 Annual Results](index=1&type=section&id=Clarification%20Announcement%20Regarding%20the%20Annual%20Results%20Announcement%20for%20the%20Year%20Ended%20December%2031%2C%202023) [Purpose and Background of the Announcement](index=1&type=section&id=Clarification%20Announcement) This clarification announcement is issued by the Company to correct two textual errors in its 'Consolidated Results for the Year Ended December 31, 2023' announcement published on March 31, 2024 - This announcement aims to clarify inadvertent textual errors in the 2023 annual consolidated results announcement ('the Announcement') published by North Mining Company Limited ('the Company') on March 3, 2024[3](index=3&type=chunk) [Details of Clarification](index=1&type=section&id=Details%20of%20Clarification) The Company clarified two key financial figures: basic and diluted loss per share corrected from (10.14) HK cents to (43.09) HK cents; weighted average number of ordinary shares corrected from 16,103,157,000 shares to 3,788,828,000 shares Corrected Financial Data | Item | Incorrect Data | Corrected Data | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share (HK cents) | (10.14) | (43.09) | | Weighted Average Number of Ordinary Shares (shares) | 16,103,157,000 | 3,788,828,000 | - All other information in the original results announcement remains unchanged, apart from the aforementioned clarifications[5](index=5&type=chunk) [Other Information and Board Members](index=1&type=section&id=Other%20Information) The announcement includes standard HKEX disclaimers, advises shareholders and potential investors to exercise caution when dealing in company securities, and lists the board members as of the announcement date - The Company advises shareholders and potential investors to exercise caution when dealing in the Company's securities[6](index=6&type=chunk) - The announcement discloses the list of Board members as of April 24, 2024, including Executive Directors Mr. Yang Yingmin, Mr. Qian Yidong, Mr. Huang Zhidan, and Mr. Shen Jian; and Independent Non-executive Directors Mr. Shi Wenhao, Mr. Shen Mingjie, and Mr. Feng Jiawei[6](index=6&type=chunk)

Revenue and Profitability - Revenue for the year 2023 was HK$1,533,714 thousand, compared to HK$1,295,666 thousand in 2022, representing an increase of 18.4%[3] - Gross profit for 2023 was HK$92,407 thousand, a significant decrease from HK$187,081 thousand in 2022, reflecting a 50.6% decline[3] - Operating loss for 2023 was HK$1,640,570 thousand, compared to HK$105,864 thousand in 2022, indicating a substantial deterioration[3] - Net loss for the year 2023 was HK$1,759,872 thousand, a significant increase from HK$246,058 thousand in 2022[3] - The company recorded a net loss of HKD 1,759,872,000 for the year ended December 31, 2023, compared to a net loss of HKD 246,058,000 in the previous year[29] - Total comprehensive expenses for the year amounted to HKD 1,753,633,000, up from HKD 237,230,000 in 2022[31] - The company reported a net loss attributable to owners of 1,632,535 thousand HKD in 2023, significantly higher than the 162,643 thousand HKD loss in 2022[50] - The company's revenue for the year ended December 31, 2023, was approximately HKD 1,533,714,000, an increase of 18.37% compared to HKD 1,295,666,000 in the previous year[88] - The company recorded a loss attributable to owners of approximately HKD 1,632,535,000 for the year ended December 31, 2023, a significant increase from the loss of HKD 162,643,000 in the previous year[88] - The company's total loss before tax was 245,894 thousand HKD in 2022, with a tax expense of 164 thousand HKD[59] - The company's total loss for the year 2022 was 246,058 thousand HKD, with a significant portion attributed to financing costs of 140,030 thousand HKD[59] R&D and Operating Costs - R&D costs increased to HK$46,464 thousand in 2023, up from HK$32,048 thousand in 2022, a 44.9% rise[3] - Depreciation and amortization expenses increased to HKD 80,157,000 in 2023 from HKD 67,779,000 in the previous year[44] - Capital expenditures decreased significantly to HKD 12,811,000 in 2023 from HKD 154,490,000 in 2022[44] - The company's cash outflow for 2023 was approximately HKD 6,275,000, compared to HKD 496,000 in 2022, primarily due to increased cash outflows from operating activities[106] Corporate Governance and Board Changes - The company has appointed new independent non-executive directors and restructured its board committees to enhance corporate governance[8] - The company has adopted a board diversity policy and is committed to regularly reviewing and improving its corporate governance practices[14] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements for the year ended December 31, 2023[17] Mining Operations - The company expects its mining operations to resume in 2024, which is anticipated to generate positive cash flow and improve liquidity[11] - The company's mining business did not generate any revenue in 2023, compared to HKD 221,332,000 in 2022, due to the lack of production of molybdenum concentrate[91] - The company's mining license was successfully renewed until February 22, 2034, allowing for the resumption of mining activities once the safety production license is obtained[90] - The company's mining business is expected to fully resume operations in the second half of 2024, pending the issuance of the safety production license[90] - The company's mining business assets, including mining rights and property, plant, and equipment, amounted to approximately HKD 1,279,188,000 as of December 31, 2023[94] - Impairment losses for mining rights and property, plant, and equipment were approximately HKD 51,560,000 and HKD 30,820,000, respectively, due to delayed resumption of operations[96] Chemical Trading Business - Revenue from chemical trading business was HKD 1,533,714,000 for the year ended December 31, 2023[41] - The chemical trading segment reported a loss of HKD 79,898,000 for the year[41] - The company's total revenue from chemical sales reached 1,533,714 thousand HKD in 2023, compared to 1,074,334 thousand HKD in 2022, a 42.8% increase[51] - The chemical trading business generated revenue of approximately HKD 1,533,714,000 in 2023, a significant increase from HKD 1,074,334,000 in 2022[97] - Impairment losses for property, plant, and equipment, and right-of-use assets in the chemical business were approximately HKD 790,000 and HKD 149,000, respectively, due to continued losses and a low gross margin of 6.03%[101] Financial Position and Liabilities - The company's total assets decreased to HKD 1,758,947,000 as of December 31, 2023, from HKD 2,017,000,000 in the previous year[35] - Total liabilities stood at HKD 2,096,113,000 as of December 31, 2023, compared to HKD 3,523,078,000 in 2022[37] - The company's net current liabilities were HKD 1,520,388,000 as of December 31, 2023, an improvement from HKD 2,854,163,000 in the previous year[37] - The company's net debt position was HKD 337,166,000 as of December 31, 2023, an improvement from HKD 1,506,078,000 in the previous year[37] - The company's total assets decreased to 1,758,947 thousand HKD in 2023 from 2,017,000 thousand HKD in 2022, a 12.8% decline[61] - The company's total liabilities decreased to 2,096,113 thousand HKD in 2023 from 3,523,078 thousand HKD in 2022, a 40.5% reduction[61] - The company recognized a debt restructuring loss of approximately 1,343,925 thousand HKD in 2023 due to a debt restructuring agreement with creditors[67] - The company's total liabilities exceeded its total assets by HKD 337,166,000 as of December 31, 2023, raising concerns about its ability to continue as a going concern[87] - The company's total liabilities decreased to approximately HKD 2,096,113,000 in 2023 from HKD 3,523,078,000 in 2022, while equity attributable to owners improved to a deficit of HKD 39,972,000 from a deficit of HKD 1,326,499,000[107] - The company's total liabilities from bank loans and other borrowings decreased from HKD 1,342,265,000 in 2022 to HKD 696,948,000 in 2023[113] Debt and Capital Structure - The company's debt-to-capital ratio increased to 52.44 in 2023 from 2.66 in 2022, mainly due to successful debt restructuring and capital reorganization[107] - The company's current ratio improved to 0.17 in 2023 from 0.12 in 2022, reflecting successful debt restructuring efforts[106] - The company's bank loans and other borrowings decreased to approximately HKD 669,415,000 in 2023 from HKD 1,325,375,000 in 2022, reflecting reduced debt levels[109] - The company's total bank loans and other borrowings amounted to HKD 696,948,000 as of December 31, 2023, with interest rates ranging from 6.09% to 15%[113] - The company successfully converted HKD 250,000,000 of convertible bonds into shares on September 29, 2023, along with accrued interest[110] - The company's restructuring plan was approved by the majority of creditors on August 28, 2023, and subsequently by the High Court on September 15, 2023[121] - The company issued 11,086,710,827 new shares to a plan company, which will hold the shares in trust for the benefit of creditors[123] Accounts Receivable and Payable - The company's accounts receivable and bills decreased to HKD 116,001,000 in 2023 from HKD 9,468,000 in 2022, with a credit loss provision of HKD 2,485,000[74] - The company's expected credit loss rate for accounts receivable was 36.40% in 2023, consistent with the range of 36.40% to 38.00% in 2022[80] - The company's accounts receivable aged 0-30 days increased significantly to HKD 22,883,000 in 2023 from HKD 9,462,000 in 2022[82] - The company's total accounts payable and bills amounted to HKD 373,998,000 in 2023, compared to HKD 286,444,000 in 2022[84] - The company's inventory decreased to approximately HKD 156,176,000 in 2023 from HKD 271,949,000 in 2022, while accounts receivable and bills remained stable at HKD 116,001,000[109] Share Issuance and Equity - The company issued a total of 256,410,256 new shares at a subscription price of HKD 0.156 per share, raising a total of HKD 40,000,000 from investor subscriptions[123] - The company completed the transfer of 51% equity in a target company on March 28, 2024, following a share transfer agreement signed on January 19, 2024[114] Employee and Dividend Information - The company employed 659 full-time employees as of December 31, 2023, a decrease from 708 employees in 2022[116] - The company did not pay any dividends for the year ended December 31, 2023[117] - The company did not engage in any hedging activities or speculative foreign exchange transactions during the year[111] Miscellaneous - The company has applied for the resumption of trading on the Hong Kong Stock Exchange starting from October 3, 2023[6] - Revenue from external customers in China increased to 1,533,714 thousand HKD in 2023, up from 1,295,666 thousand HKD in 2022, representing an 18.4% growth[45] - The company's deferred tax liabilities decreased to (12,891) thousand HKD in 2023 from 164 thousand HKD in 2022[69]

Financial Performance - The company recorded a loss of approximately HKD 156,043,000 for the six months ended June 30, 2023, an increase of about 6.78% compared to a loss of HKD 146,134,000 for the same period in 2022, primarily due to decreased sales in the mining business [10]. - Revenue for the six months ended June 30, 2023, was approximately HKD 746,078,000, representing an increase of about 46.11% from HKD 510,635,000 for the same period in 2022, mainly driven by increased sales in the chemical trading business [15]. - For the six months ended June 30, 2023, the company reported a loss attributable to shareholders of approximately HKD 98,598,000, compared to a loss of approximately HKD 104,144,000 for the same period in 2022, representing a decrease in loss of about 5.3% [76]. - The company reported revenue of HKD 746,078,000 for the six months ended June 30, 2023, an increase of 46% compared to HKD 510,635,000 for the same period in 2022 [166]. - The gross profit for the same period was HKD 55,486,000, with a gross margin reflecting the cost of sales at HKD 690,592,000 [166]. - Operating loss for the six months was HKD 114,854,000, compared to a loss of HKD 48,159,000 in the previous year, indicating a significant increase in operational challenges [166]. Mining Operations - The company did not generate any revenue from its mining operations during the review period due to the need for the renewal of safety licenses, which has delayed production activities [12]. - The mining license for the company's operations was successfully renewed on February 10, 2023, and is valid until February 22, 2034, which is crucial for the company's mining activities [16]. - The company reported no production of silver concentrate during the review period, which contributed to the lack of revenue from mining operations [12]. - The company has been actively working on renewing the necessary mining licenses and has confirmed that all outstanding fees and required information have been submitted to the relevant government departments [13]. - The company’s financial difficulties have significantly impacted the operations of its mining subsidiary, which is currently under liquidation [13]. - The group successfully renewed its aluminum mining license and plans to further invest in and upgrade its mining machinery systems to improve production efficiency, safety, and environmental standards [124]. Financial Position - Total liabilities as of June 30, 2023, amounted to HKD 3,571,128,000, compared to HKD 3,523,078,000 as of December 31, 2022 [24]. - The company’s total assets minus current liabilities stood at HKD (1,389,228,000) as of June 30, 2023, compared to HKD (1,244,215,000) as of December 31, 2022 [24]. - The company’s total liabilities exceeded total assets, indicating potential solvency issues [35]. - The total current liabilities increased to HKD 3,312,276,000 from HKD 3,261,215,000, reflecting a growing financial burden [162]. - The company has a total debt of approximately HKD 1,318,264,000 as of June 30, 2023, down from HKD 1,342,265,000 in 2022 [164]. Shareholder Actions - The company reduced the par value of each issued consolidated share from HKD 0.32 to HKD 0.02, resulting in a credit balance of approximately HKD 350,556,000 based on 1,168,519,314 shares issued [34]. - The company plans to issue 11,086,710,827 new shares to settle debts with creditors, pending court approval [34]. - The average number of shares issued during the period was 23,370,386,286, unchanged from the previous year [76]. - The company plans to issue new shares at a subscription price of HKD 0.156 per share following the capital restructuring [181]. Operational Challenges - The company recorded a significant increase in overdue receivables, with amounts over 180 days reaching HKD 203,872 compared to HKD 155,213 in the previous year [51]. - The company recorded a provision for obsolete inventory of HKD 57,828,000 for the six months ended June 30, 2023, compared to HKD 43,881,000 for the same period in 2022, indicating a year-on-year increase of approximately 31.8% [78]. - The group experienced a net cash outflow of approximately HKD 1,055,000 during the review period, compared to a cash inflow of approximately HKD 26,701,000 for the six months ended June 30, 2022 [127]. - The group aims to enhance resilience by strategically managing and expanding its two core businesses while establishing safeguards in the supply chain to address shortages and rising costs [123]. Governance and Corporate Strategy - The board believes that good corporate governance is key to improving efficiency and performance, as well as protecting shareholder interests [113]. - The company has established a board diversity policy to ensure sustainable and balanced development of its strategic objectives [116]. - The company is considering capital restructuring measures, including share consolidation and capital reduction, to meet the conditions for resumption of trading [111]. - The company is actively seeking to expand its mineral resources and improve operational efficiency to enhance future financial performance [161].

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 746,078,000, representing a 46% increase from HKD 510,635,000 in the same period of 2022[1] - The net loss for the period was HKD (156,043,000), compared to a loss of HKD (146,134,000) in the previous year, indicating a worsening financial position[2] - Total comprehensive income for the period was HKD 14,041,000, up from HKD 4,375,000 in the same period last year, showing improvement in overall financial performance[3] - Basic and diluted loss per share was HKD 0.12, slightly improving from HKD 0.45 in the previous year[5] - The company reported a loss before tax for the first half of 2023, with specific figures not disclosed in the provided content[46] - The company incurred a loss before tax of 156,043 thousand HKD for the current period, compared to a loss of 101,131 thousand HKD in the previous year, reflecting a worsening financial performance[62] - The group recorded a loss of approximately HKD 156,043,000 for the six months ended June 30, 2023, compared to a loss of HKD 146,134,000 for the same period in 2022, representing an increase in loss of about 6.78%[77] - The group’s basic loss per share for the six months ended June 30, 2023, was based on a loss attributable to shareholders of approximately HKD 98,598,000, compared to a loss of HKD 104,144,000 for the same period in 2022[71] Assets and Liabilities - Total assets decreased to HKD 1,923,048,000 from HKD 2,017,000,000, indicating a decline in the company's asset base[8] - Total liabilities increased to HKD 3,571,128,000 from HKD 3,523,078,000, reflecting a rise in the company's debt levels[11] - The total assets of the company as of June 30, 2023, amounted to HKD 2,017,000,000, while total liabilities were HKD 3,523,078,000, indicating a significant leverage situation[45] - The total current liabilities amounted to HKD 3,312,276,000 as of June 30, 2023, compared to HKD 3,261,215,000 in 2022[88] - As of June 30, 2023, the group reported a shareholder deficit of approximately HKD 1,648,080,000 and current liabilities exceeding current assets by about HKD 2,912,261,000[34] Inventory and Costs - Cost of sales increased to HKD (690,592,000) from HKD (445,478,000), reflecting a significant rise in operational costs[1] - The company reported a significant increase in inventory, which rose to HKD 214,658,000 from HKD 271,949,000, indicating changes in stock management[7] - The company recorded a loss of HKD 57,828,000 in obsolete inventory provisions for the first half of 2023, compared to HKD 43,881,000 in the same period of 2022[45] - The group’s employee costs, including salaries and wages, decreased to HKD 25,993,000 for the six months ended June 30, 2023, from HKD 29,585,000 in the same period of 2022[77] - The group’s depreciation of property, plant, and equipment increased to HKD 48,622,000 for the six months ended June 30, 2023, compared to HKD 28,020,000 for the same period in 2022[77] Business Operations and Strategy - The company operates primarily in investment holding, mining, and chemical trading sectors, focusing on resource exploration and development[13] - The company is engaged in restructuring activities, including a capital reduction and potential financing of up to HKD 21,500,000 to address accumulated losses[17] - The company plans to implement a share consolidation, merging every 20 shares with a par value of HKD 0.016 into 1 share with a par value of HKD 0.32[35] - The company aims to issue 11,086,710,827 new shares to creditors as part of a debt restructuring plan, pending court approval[36] - The company is exploring new product development and market expansion strategies to enhance its competitive position in the industry[57] - The group aims to enhance resilience by developing and expanding its two core businesses and establishing protective measures in the supply chain to address shortages and rising business costs[83] - The group plans to continue investing in safety and environmental protection while strictly controlling costs and improving production efficiency to cope with intense market competition[85] - The group plans to further invest and upgrade mining operational machinery to enhance production efficiency and safety[105] Governance and Compliance - The company has adhered to the corporate governance code principles, except for certain provisions related to the composition of the board[116] - The company believes it has taken sufficient measures to comply with governance rules as of June 30, 2023[138] - The company has not been able to comply with listing rules due to the absence of independent non-executive directors and a compensation committee chair[140] - Trading of the company's shares has been suspended since April 1, 2021, and will continue until further notice[148] Legal and Restructuring - The company was ordered to be wound up by the Hong Kong High Court on May 16, 2022, and a provisional liquidator was appointed[113] - The company submitted a resumption proposal to the stock exchange on September 27, 2022, outlining actions to meet resumption conditions, including capital restructuring and funding injection[114] - The resumption proposal has received shareholder approval, and the arrangement plan has been approved by the majority of creditors required by law[115] - The joint and individual liquidators were appointed as of mid-2022, limiting the availability of financial data for the group[145] - The company has been ordered to undergo liquidation by the Hong Kong High Court on July 18, 2022[132] Revenue Generation - The company generated sales of HKD 746,078,000 from chemical products in the first half of 2023, compared to HKD 394,515,000 in the same period of 2022, representing an increase of approximately 89%[41] - The group’s mining business did not contribute any revenue during the review period due to the need for a safety license renewal[101] - The company has not recognized any income from sales of by-products in the current period, which may impact overall revenue generation strategies[59] - The company has recognized other income of 6,745 thousand HKD, which may contribute positively to its financial position[63]

Corporate Governance - As of December 31, 2022, no directors or senior executives were aware of any individuals holding 5% or more of the company's issued share capital[1]. - No rights to acquire shares or debentures were granted to any director or their family members during the year under review[2]. - There were no significant contracts involving directors' material interests at the end of the year under review[4]. - The Board has the authority to determine directors' remuneration, which is subject to review by the Remuneration Committee[5]. - The Company complied with all applicable code provisions of the Corporate Governance Code for the year ended December 31, 2022, except for certain provisions regarding the separation of roles of chairman and CEO[17]. - The Board believes that good corporate governance is crucial for improving efficiency and performance while safeguarding shareholder interests[17]. - The Company has adopted the Model Code for Securities Transactions by directors and confirmed full compliance by all directors for the year ended December 31, 2022[22]. - The Board is responsible for reviewing the Group's strategic development and ensuring effective internal controls and risk management[25]. - The Company will periodically review and improve its corporate governance practices in line with the latest developments in corporate governance requirements[25]. - The Board diversity policy aims to achieve diversity on the Board and is reviewed annually for effectiveness[21]. - Minutes of all Board and committee meetings are kept by the Company Secretary and are available for inspection by any Director[26]. - The company did not purchase, redeem, or sell any of its listed securities during the year ended December 31, 2022[37]. - The company’s independent non-executive directors had no unexpired service contracts that are not determinable within one year without compensation[37]. - The company’s directors' remuneration for the financial year is detailed in Note 12 of the consolidated financial statements[37]. - The company did not report any significant contracts or interests held by directors during the financial year[35]. - The Remuneration Committee held one meeting during the fiscal year ended December 31, 2022, discussing the remuneration policy for Directors and making recommendations for newly appointed Directors[107]. - The company has arranged appropriate liability insurance for Directors to indemnify their liabilities arising from corporate activities[58]. - All non-executive Directors are appointed for specific terms and are subject to retirement by rotation at least once every three years[103]. - The company encourages all Directors to participate in continuous professional development to ensure their contributions to the Board remain informed and relevant[58]. - The company has adopted a remuneration policy consistent with the Listing Rules and the Bye-laws of the Company[110]. - The Remuneration Committee is responsible for determining the remuneration of Directors and ensuring it aligns with the company's policies[110]. - The company has a comprehensive induction program for newly appointed Directors to ensure they understand the company's operations and their responsibilities[58]. - The Audit Committee met no less than twice a year to review business affairs and financial statements before submission to the Board for approval[1]. - The Corporate Governance Committee confirmed compliance with the Code of the Listing Rules throughout the year, with some deviations noted[1]. - The total number of independent non-executive directors accounts for less than one-third of the Board, violating Rule 3.10A of the Listing Rules[1]. - The number of independent non-executive directors and Audit Committee members has fallen below the minimum requirement of three as per Rules 3.10(1) and 3.21[1]. - The Remuneration Committee consists of only one member who is not an independent non-executive director, failing to meet Rule 3.25 requirements[1]. - The company must appoint suitable candidates to fill board vacancies within three months of non-compliance with Listing Rules[1]. - The Audit Committee's terms of reference are aligned with the Code and are available on the company's website[1]. - The auditor's remuneration for the year ended December 31, 2022, was approximately HK$1,320,000, consistent with the previous year[155]. - The company has established a Financial Reporting Committee responsible for overseeing the preparation of financial statements to ensure they provide a true and fair view of the Group's state of affairs[149]. - The Board is committed to maintaining effective risk management and internal control systems to safeguard shareholders' investments and the Group's assets[143]. - The company follows a policy of timely disclosure of relevant information to shareholders, with voting results posted on the company's website on the day of the annual general meeting[163]. - The Board will conduct regular reviews of the internal control and risk management systems, ensuring reliability in financial reporting and compliance with statutory requirements[164]. - There were no non-audit services provided by the auditor during the year, maintaining a focus on audit integrity[155]. - The company secretary has attended relevant professional seminars to update skills and knowledge, complying with professional training requirements[140]. - The Board has adopted a Board Diversity Policy to ensure diversity in its composition, considering various factors such as gender, age, and professional experience[157]. - Shareholders can requisition a special general meeting, which the Board must arrange within two months of receiving the request[138]. - The company maintains a corporate website that provides shareholders with timely access to corporate information, governance practices, and financial reports[163]. - The Board reviewed the internal control and risk management system for the year ended December 31, 2022, and found it effective and adequate, with no significant concerns affecting shareholders identified[166]. Financial Performance and Compliance - The Group's financial results and assets and liabilities summary for the last five financial years are detailed on pages 195 and 196 of the annual report[12]. - Elite Partners CPA Limited has been the auditor since 2012 and will offer themselves for re-appointment at the upcoming annual general meeting[12]. - The company received a letter on November 25, 2022, stating the decision to cancel its listing, but this was overturned on March 8, 2023[11]. - The Listing Review Committee granted an extension of the remedial period to September 30, 2023, with no further extensions expected[11]. - The remaining steps for compliance with the Resumption Guidance were deemed procedural and well underway[11]. - The company was ordered to be wound up on May 16, 2022, which halted the process of appointing suitable candidates to fill board vacancies[58]. - The company reported that Mr. Yang Ying Min and Mr. Shen Jian will retire by rotation at the annual general meeting and are eligible for re-election[37]. - Ms. Guo Xiao Ying and Dato Dr. Cheng Chak Ho resigned as independent non-executive directors effective April 1, 2022[37]. - The total number of shares held by China Huarong Asset Management Company Limited is 4,888,000,000, representing approximately 20.92% of the issued voting shares[41]. - The company’s executive directors include Mr. Yang Ying Min (Chairman and CEO) and Mr. Qian Yi Dong (Deputy Chairman)[37]. - The company had a total of 3,380,408,552 shares held by controlled corporations, representing approximately 14.46% of the issued voting shares[41]. - The company did not receive training records from two Directors who resigned during the year[102]. Environmental and Social Responsibility - The Group emphasizes communication with stakeholders to understand their concerns and needs, which aids in formulating effective corporate social responsibility policies[178]. - The Group has established a safety environment management committee to monitor safety issues and environmental impacts during production processes[179]. - The Group's ISO14001 environmental management system passed the annual review and verification during the Reporting Period, ensuring the validity of certification[183]. - No violations of environmental laws and regulations regarding emissions, discharge, or waste were found during the Reporting Period, and the Group was not subject to governmental penalties[184]. - The Group has implemented measures to monitor mining activities to mitigate negative impacts on the ecological structure of land, in compliance with the "EIA Report" and "Soil and Water Conservation Plan"[184]. - The Group's principal activities include investment holdings, mining operations, and chemical trading, with the trading of mineral resources operation discontinued[190]. - The Group is committed to maintaining stable growth and expanding the product mix of mining operations to achieve consistent revenue and returns[195]. - The Group emphasizes open and transparent communication with local communities regarding safety, environment, and community relationships[195]. - The Group has established guidelines for proper waste classification, recycling, and disposal of general office waste, including electronic products[186]. - The Group actively engages third-party agencies to inspect mining production activities and improve environmental protection measures based on their recommendations[184]. - The Group's environmental management procedures ensure that emissions from chemical trading operations do not exceed national limits[184]. - The Group aims to balance economic benefits, business development, and corporate social responsibility for sustainable development[195]. - The group aims to inform stakeholders about its performance beyond financial results and business operations[199]. - The report encourages stakeholders to share valuable feedback regarding the ESG report content[200].

Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 1,295,666,000, a decrease of 4.1% from HKD 1,350,367,000 in 2021[3] - Gross profit for the year was HKD 187,081,000, compared to HKD 145,936,000 in the previous year, reflecting an increase of 28.1%[3] - The total comprehensive loss for the year was HKD 237,230,000, significantly improved from HKD 455,853,000 in 2021[3] - The company reported a loss from continuing operations of HKD 246,058,000, down from HKD 460,096,000 in the prior year, indicating a reduction of 46.5%[3] - The company reported a loss of approximately HKD 246,058,000 for the year ending December 31, 2022, compared to a loss of HKD 456,757,000 in the previous year, indicating an improvement of about 46%[23] - The company’s loss attributable to shareholders from continuing operations was HKD 162,643,000, an improvement from HKD 359,902,000 in the prior year[23] - The company’s total comprehensive expenses for the year were HKD 237,230,000, down from HKD 455,853,000 in the previous year[23] - The company reported a pre-tax loss of HKD 245,894,000 for the year ended December 31, 2022, compared to a loss of HKD 359,902,000 in 2021, indicating an improvement[53] - For the fiscal year ending December 31, 2022, the company recorded a loss attributable to shareholders of approximately HKD 162,643,000, a decrease of about 54.81% compared to a loss of HKD 359,902,000 in the previous year[89] Debt and Liabilities - The bank loans and other borrowings increased to HKD 16,890,000 in 2022 from HKD 11,012,000 in 2021, representing a rise of 53.0%[9] - The total liabilities increased to HKD 3,523,078,000 in 2022 from HKD 3,386,005,000 in 2021, marking an increase of 4.1%[9] - The company reported a net debt of HKD 1,506,078,000, compared to HKD 1,268,848,000 in the previous year, indicating a rise of 18.7%[9] - The company’s current liabilities and net liabilities as of December 31, 2022, were approximately HKD 2,854,163,000 and HKD 1,506,078,000, respectively, indicating significant financial obligations[87] - The company's total liabilities increased from HKD 1,514,658,000 in 2021 to HKD 1,700,425,000 in 2022, an increase of approximately 12.3%[25] - The company has entered into a conditional restructuring agreement on February 21, 2023, to improve its financial situation and address due liabilities[27] Capital and Shareholder Equity - The company has proposed a capital reorganization to reduce the share premium account by approximately HKD 3,761,932,000 to zero[4] - The company aims to issue 11,086,710,807 new shares to settle debts with creditors, pending court approval[6] - The company’s equity attributable to owners decreased from HKD (1,140,732,000) in 2021 to HKD (1,326,499,000) in 2022, reflecting a decline in shareholder equity[25] - The company's equity deficit was approximately HKD 1,326,499,000, an increase from HKD 1,140,732,000 in 2021[114] Operational Changes and Business Segments - The company has ceased its mining resource trading business as of December 31, 2021, which is not included in the current financial reporting[18] - The mining segment generated revenue of HKD 179,534,000, while the chemical trading segment contributed HKD 1,170,833,000 to the total revenue[56] - The chemical trading business generated revenue of approximately HKD 1,074,334,000, down from HKD 1,170,833,000 in 2021[105] - For the year ended December 31, 2022, the mining business generated revenue of approximately HKD 221,332,000, an increase from HKD 179,534,000 in 2021[101] Cash Flow and Assets - Cash and cash equivalents decreased from HKD 20,733,000 in 2021 to HKD 11,344,000 in 2022, a reduction of approximately 45.3%[25] - Total assets decreased from HKD 2,117,157,000 in 2021 to HKD 2,017,000,000 in 2022, a decline of approximately 4.7%[25] - As of December 31, 2022, the group's current assets were approximately HKD 407,052,000, a decrease from HKD 460,370,000 in 2021[114] - The group recorded a cash outflow of approximately HKD 496,000 for the year ended December 31, 2022, compared to a cash inflow of HKD 3,360,000 in 2021[134] Corporate Governance and Compliance - The company has adhered to the corporate governance code and has complied with all applicable provisions, except for certain exceptions noted[144] - The independent auditor has confirmed that the financial statements align with the group's consolidated financial statements as of December 31, 2022[148] - The company has not established a nomination committee due to the current board composition and size[145] - The company has not appointed suitable candidates to fill the vacancies left by resigning directors within the stipulated timeframe[147] - The company shares have been suspended from trading since April 1, 2021, and will remain suspended until further notice[150] - The company has been ordered to undergo liquidation as of May 16, 2022, impacting its compliance with listing rules[165] Future Outlook and Strategy - The company is facing significant uncertainty regarding its ability to continue as a going concern, dependent on successful debt restructuring and obtaining new financing[15] - The company aims to expand its mineral resources and enhance operational efficiency to improve future financial performance and profitability[111] - The company plans to implement cost control measures, including reducing unnecessary expenses and administrative costs, in the coming years[6] - The company has successfully renewed its molybdenum mining license and plans to invest in upgrading production machinery to improve efficiency, safety, and environmental standards[109] - The domestic demand for molybdenum is expected to continue increasing, driven by the steel industry's transformation and the upgrade of production structures[110]

Revenue and Financial Performance - Revenue from continuing operations for the year ended 31 December 2021 was approximately HK$1,350,367,000, representing a 107.46% increase compared to the previous year's HK$650,915,000[19][32] - The increase in revenue was primarily driven by higher revenue from the company's mining operations and chemical trading operations compared to the previous year[19][32] - The Group recorded a loss attributable to owners of approximately HK$359.90 million for the year ended 31 December 2021, a decrease of 86.17% compared to the previous year, primarily due to no impairment or write-offs of assets and increased revenue[55] - The Group recorded a cash inflow of approximately HK$3,360,000 in 2021, compared to HK$1,935,000 in 2020, primarily due to increased cash inflow from operating activities[68] - The Group's current ratio decreased to approximately 0.15 in 2021 from 0.19 in 2020, mainly due to a provision for environmental and resource tax of approximately HK$105,428,000[68] - The Group's debt to equity ratio improved to a deficit of approximately 2.97 in 2021 from 3.58 in 2020, driven by an increase in loss attributable to the owners of the Company[68] - No dividend was recommended for the year ended 31 December 2021[72] - The Company did not pay any dividends for the year ended 31 December 2021, consistent with 2020[131] Mining Operations - The company has two mineral mines: a Molybdenum Mine and a Potassium Feldspar Mine[20] - The mining license for the Molybdenum Mine has been renewed and is valid until 22 February 2034[7] - Despite the halt in mining activities, the company has been able to process mined ore in stock into molybdenum concentrate for sales to customers[7] - The demand for molybdenum in China is expected to continue increasing due to the transformation of the steel industry and the production of high-quality special steel[3] - The company expects the molybdenum market to continue improving in 2022[3] - Molybdenum concentrate production was halted in 2021 due to expired exploitation licenses, with no production recorded (2020: Nil)[33] - The average selling price of molybdenum concentrate increased to HK$81,977 per tonne in 2021, up from HK$58,431 per tonne in 2020[33] - Mining operations generated revenue of HK$179,534,000 in 2021, with HK$143,471,000 from molybdenum concentrate sales and HK$36,063,000 from sulfuric acid and iron concentrate sales[33] - Gross profit margin for mining operations rose to 32.49% in 2021, a significant increase from 12.38% in 2020, driven by higher molybdenum concentrate prices[33] - The potassium feldspar mine has estimated resources of 63.2 million tonnes (indicated) and 40.5 million tonnes (inferred), but generated no revenue in 2021[36] - Major assets in mining operations as of 31 December 2021 were valued at approximately HK$1,408,810,000, with no impairment recognized[39] - The Group's mining operations were hindered by financial difficulties and the expiry of the molybdenum mine license, but efforts to renew the license were confirmed by the relevant government department in April 2022[60] - The mining license has been successfully renewed and is valid until 22 February 2034, granted by the Ministry of Natural Resources of the PRC on 10 February 2023[160] Chemical Trading Operations - Chemical trading operations contributed HK$1,170,833,000 in revenue and HK$4,669,000 in segment profit for 2021[39] - The Group disposed of a non-fully owned subsidiary engaged in mineral resources trading in April 2021, which was a minor business segment[39] - The Company discontinued its mineral resources trading operations during the year[139][141] Financial Position and Liabilities - Current assets as of 31 December 2021 were approximately HK$460.37 million, with cash and cash equivalents at HK$20.73 million, inventories at HK$236.89 million, and prepayments, deposits, and other receivables at HK$185.36 million[47] - Current liabilities as of 31 December 2021 were approximately HK$3,091.04 million, including bank loans and other borrowings of HK$1,388.38 million, trade and bill payables of HK$273.54 million, and other payables and accruals of HK$891.36 million[47] - The Group entered into a standstill deed to convert a HK$250 million convertible bond into a bond at 100% of its principal amount with Sfund International[47] - As of 31 December 2021, the Group had outstanding bank loans and other borrowings of approximately HK$1,399,387,000, a decrease from HK$1,441,716,000 in 2020[68] - The Group's bank loans and other borrowings were secured by guarantees, pledged property, plant, equipment, and prepaid land leases, with effective interest rates ranging from 6.09% to 30% per annum[72] Corporate Governance and Leadership Changes - Ms. Guo Xiao Ying was appointed as the chairman of the Remuneration Committee effective 9 November 2021 but resigned as an independent non-executive director and committee member effective 1 April 2022[51] - Mr. Zhao Jian resigned as an executive Director and chairman of the Remuneration Committee effective 21 October 2021[102] - Mr. Shen Jian was appointed as an executive Director and member of the Remuneration Committee effective 9 November 2021[102] - Mr. Wong Wai Chun Alex resigned as an independent non-executive Director and chairman of the Audit Committee effective 15 December 2021[102] - Mr. Zhang Jia Kun resigned as an executive Director and member of the corporate governance and financial reporting committees effective 19 January 2022[102] - Dato Dr. Cheng Chak Ho Tony resigned as an independent non-executive Director and member of the Audit, Remuneration, and corporate governance committees effective 1 April 2022[102] - The Audit Committee chairman position is vacant, and the number of independent non-executive directors and Audit Committee members is below the minimum requirement as per Listing Rules 3.10(1) and 3.21[127] - The process of identifying suitable candidates to fill vacancies was halted due to the company being ordered to wind up on 16 May 2022[128] - The company has faced challenges in filling vacancies due to a court-ordered liquidation on 16 May 2022[152] Liquidation and Legal Proceedings - The Company was ordered to undergo liquidation by the Hong Kong Court of First Instance on 18 July 2022, with joint and several liquidators appointed[50] - The Company was ordered to be wound up by the High Court of Hong Kong on 16 May 2022, with the Official Receiver appointed as the Provisional Liquidator[74] - The Company submitted a resumption proposal to the Stock Exchange on 27 September 2022, outlining actions to fulfill resumption conditions, including capital reorganization and fund injection by Huatune Corporation[100] Environmental and Safety Management - The company is continuously improving management rules and strengthening supervision in safety and environmental protection, allocating more funds for technology and equipment upgrades to promote energy saving and emission reduction[124] - The company's mining operations primarily involve the extraction and production of molybdenum concentrate, which poses significant risks to reputation and assets in case of safety or environmental incidents[125] - The Company faces safety and environmental risks in its molybdenum concentrate mining operations, with potential for significant reputational and asset losses in case of accidents[145] - The Company is enhancing safety and environmental management through rule improvements, responsibility allocation, increased supervision, and employee training[147] - The Company is investing in technology and equipment upgrades to improve energy efficiency and emissions reduction[147] - The company has taken initiatives to reduce energy consumption and encourage the recycling of office supplies and other materials, with ongoing reviews and promotions of environmental policies[149] - The company's environmental policies performance includes ongoing efforts to reduce energy consumption and promote recycling[149] Market and Economic Risks - The Group faces economic environment risks due to macro-economic and policy changes in Mainland China and abroad, affecting mining, property management, and chemical trading operations[94] - Market price risks are significant due to sharp fluctuations in molybdenum concentrate and chemical product prices, influenced by supply-demand changes, market uncertainty, and external factors like economic conditions and natural disasters[94] - The Company is strengthening its market price risk control capabilities and continuously improving production cost and expense control[145][146] Shareholder and Subsidiary Information - As of 31 December 2021, the substantial shareholders' interests in the company's shares include: Qian Yong Wei with 14.51%, Xu Zhe Cheng with 14.51%, China Wan Tai Group Limited with 13.46%, and China Huarong Asset Management Company with 20.92%[172] - The company's principal subsidiaries as of 31 December 2021 are detailed in Note 42 to the consolidated financial statements[165] - The company's share capital movements during the year are detailed in Note 26 to the consolidated financial statements[165] - Directors' remuneration for the financial year is set out in Note 12 to the consolidated financial statements[160] - The company's directors' interests in shares as of 31 December 2021 show no interests or short positions in any shares, underlying shares, or debentures of the company or its associated corporations[160] Compliance and Ethical Practices - The company has complied with relevant laws and regulations, except for non-compliances arising from the resignation of Mr. Wong, which led to vacancies in the Board and Audit Committee[150][151] - No incidents of intellectual property violations were reported during the reporting period[178] - The Group conducts marketing campaigns in compliance with advertising laws and regulations to attract customers and improve sales[179] - No significant issues related to corruption, bribery, extortion, fraud, or money laundering were reported during the reporting period[181] - The Group actively engages with communities to build harmonious relationships and integrates stakeholder views into operations[182] - The Group ensures fair and reasonable conditions for suppliers and evaluates their products to meet requirements, replacing suppliers when necessary[176] Financial Reporting and Impairment Assessment - The consolidated financial statements for 2021 were prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) and comply with disclosure requirements[195] - The management determined the recoverable amounts of CGUs based on the present value of expected future cash flows for impairment assessment[200] - Financial risks are detailed in Note 39 of the consolidated financial statements[126] Employee and Operational Efficiency - The Group employed 669 full-time employees as of 31 December 2021, down from 763 in 2020[72] - The Group aims to expand its mineral resources and improve operational efficiency to enhance future financial performance and profitability[42] - The Group is focused on expanding its mineral resources and improving operating efficiency to enhance future financial performance and profitability[67] - The Group's principal activities include investment holdings, mining operations (exploitation and exploration of mineral resources), and chemical trading operations[90]

Financial Performance - For the year ended December 31, 2020, the Group recorded revenue of approximately HK$650,915,000, representing a decrease of approximately 22.47% compared to HK$839,588,000 in the previous year[17]. - The loss attributable to owners of the Company for the year was approximately HK$2,605,251,000, an increase in loss of approximately 288.53% compared to a loss of HK$670,543,000 in 2019[17]. - The increase in loss was mainly due to the write-off of potassium mining rights amounting to approximately HK$1,771,832,000 and an impairment loss under expected credit loss of approximately HK$1,189,730,000[17]. - For the year ended December 31, 2020, the mining operation generated revenue of approximately HK$165,166,000, a decrease from HK$268,021,000 in 2019[25]. - Revenue from chemical trading operations was approximately HK$485,749,000, with a loss before finance costs and taxation of approximately HK$7,588,000[28]. - The Group's current ratio decreased to approximately 0.19 in 2020 from approximately 0.72 in 2019, primarily due to impairment losses of current assets[32]. - Total liabilities were approximately HK$2,867,785,000 in 2020, compared to approximately HK$2,497,071,000 in 2019, while equity attributable to owners of the Company was a deficit of approximately HK$800,347,000[32]. - The Group's cash and cash equivalents decreased to approximately HK$15,763,000 in 2020 from approximately HK$18,446,000 in 2019[56]. - The Group recorded a cash inflow of approximately HK$1,554,000, a significant improvement from an outflow of approximately HK$123,925,000 in 2019[32]. Mining Operations - The Group's principal activities include mining operations and chemical trading operations, with property management operations discontinued during the year[17]. - As of December 31, 2020, the Group has two mineral mines: a Molybdenum Mine and a Potassium Feldspar Mine[17]. - The average selling price of molybdenum concentrate was approximately HK$58,431 per tonne, down from HK$73,261 per tonne in 2019[25]. - Gross profit for the mining operation was approximately HK$20,446,000, with a gross profit margin of 12.38%, down from 22.68% in 2019[25]. - The Group did not produce molybdenum concentrate in 2020 due to the expiration of mining rights, resulting in no amortization of mining rights costs[48]. - The Group's mining operations were impacted by the inability to extract ore, leading to a significant decline in production and revenue[48]. Strategic Goals and Future Outlook - The company aims to expand its mineral resources and enhance operational efficiency to improve future financial performance and profitability[31]. - The Group aims to enhance future financial performance and profitability by proactively identifying investment opportunities and expanding mineral resources[53]. - The Group is committed to improving operating efficiency and is confident in its future prospects[53]. Shareholder and Corporate Governance - No dividend was recommended for the year ended December 31, 2020[58]. - The Group's largest customer accounted for approximately 8% of total operating revenue in 2020, down from 13% in 2019, while the largest supplier accounted for 7%, unchanged from 2019[70]. - The total number of independent non-executive Directors accounts for less than one-third of the Board, violating Rule 3.10A of the Listing Rules[92]. - The number of independent non-executive Directors and Audit Committee members has fallen below the minimum requirement of three, as per Rules 3.10(1) and 3.21 of the Listing Rules[92]. - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for the separation of the roles of chairman and chief executive officer, which are held by Mr. Yang[168]. - The Board believes that good corporate governance is crucial for improving efficiency and performance, safeguarding shareholder interests, and will review its structure periodically[168]. Risk Management - The Company faces economic environment risks due to macroeconomic conditions and policies in Mainland China, impacting mining and chemical trading operations[66]. - Market price risks are significant, with sharp fluctuations in molybdenum concentrate and chemical product prices affecting business and cash flow[66]. - The Company is enhancing its risk control capabilities and production cost management to mitigate market price risks[67]. - Safety and environmental risks are critical, with stringent regulations impacting mining operations, necessitating improved management and training[67]. Employee and Workforce - The Group employed 763 full-time employees as of December 31, 2020, compared to 693 employees in 2019, indicating a growth in workforce[58]. - The Group maintained a good relationship with employees and customers, with no significant disputes reported during the year[94]. Financial Reporting and Compliance - The Financial Reporting Committee confirmed compliance with disclosure requirements under the Listing Rules for both audited and unaudited financial statements[187]. - The Company has received annual confirmations of independence from all independent non-executive directors, affirming their independent status[173]. - The Audit Committee is composed of independent non-executive Directors, ensuring oversight of financial reporting and risk management[145].

Financial Performance - For the year ended December 31, 2020, the company reported total revenue of HKD 650,915,000, a decrease from HKD 839,588,000 in 2019, representing a decline of approximately 22.4%[5] - The gross profit for the year was HKD 71,073,000, down from HKD 91,095,000 in the previous year, indicating a decrease of about 22%[5] - The company incurred a significant loss from continuing operations amounting to HKD 3,502,281,000, compared to a loss of HKD 1,144,370,000 in 2019, reflecting an increase in losses of approximately 66.5%[5] - Total comprehensive loss for the year reached HKD 3,506,800,000, compared to HKD 1,229,904,000 in 2019, marking an increase of around 185%[7] - The company reported a basic and diluted loss per share from continuing and discontinued operations of HKD 11.71, compared to HKD 3.46 in the previous year, indicating a significant increase in loss per share[7] Expenses and Costs - Research and development costs for the year were HKD 15,068,000, a decrease from HKD 38,213,000 in 2019, showing a reduction of approximately 60.7%[5] - Administrative expenses decreased to HKD 133,089,000 from HKD 182,490,000, reflecting a reduction of about 27%[5] - The company incurred depreciation and amortization expenses of HKD 62,304,000 in 2020, compared to HKD 118,489,000 in 2019, indicating reduced asset utilization costs[35] - The company reported a significant reduction in employee costs, with salaries and wages amounting to HKD 40,530,000 in 2020, compared to HKD 31,526,000 in 2019[40] Assets and Liabilities - Total assets decreased from HKD 5,160,877,000 in 2019 to HKD 2,054,790,000 in 2020, representing a decline of approximately 60.2%[9] - The company’s total liabilities increased significantly, leading to a substantial decline in equity attributable to owners of the company, which amounted to HKD 2,605,584,000 in losses for the year[7] - Current liabilities increased significantly from HKD 1,719,951,000 in 2019 to HKD 2,391,163,000 in 2020, an increase of approximately 39.1%[11] - The company reported a shareholder deficit of HKD 812,995,000 as of December 31, 2020, compared to a total equity of HKD 2,663,805,000 in 2019[17] - The total liabilities increased from HKD 2,497,072,000 in 2019 to HKD 2,867,785,000 in 2020, an increase of approximately 14.8%[11] Impairment and Credit Losses - The company recognized an impairment loss of HKD 1,189,370,000 under expected credit loss, a significant increase from HKD 152,428,000 in the previous year[5] - The group has made provisions for expected credit losses totaling approximately HKD 1,109,408,000 due to concerns over the recoverability of receivables, long-term receivables, and loans[62] - The company recognized a credit loss provision of approximately HKD 1,098,000 for the year ended December 31, 2020, compared to HKD 960,000 in 2019, with an expected loss rate between 37.92% and 42.35%[49] Business Segments and Operations - Sales of molybdenum powder amounted to HKD 165,166,000, down from HKD 268,021,000, representing a decline of 38.4%[21] - Sales of chemical products were HKD 485,749,000, compared to HKD 571,567,000 in the previous year, reflecting a decrease of 15.0%[21] - The mining segment reported a loss of HKD 73,262,000 for the year ended December 31, 2020[26] - The chemical products segment incurred a loss of HKD 11,818,000 during the same period[26] - The potassium feldspar mine did not generate any revenue for the year ended December 31, 2020, and the company recognized a full impairment provision of approximately HKD 2,026,654,000 due to the expiration of mining rights[77] Future Outlook and Strategies - The company has indicated plans for future restructuring and potential market expansion strategies to address the ongoing financial challenges[5] - The group aims to enhance operational efficiency and expand its mineral resources to improve future financial performance and profitability[89] - The domestic molybdenum demand is expected to continue increasing, driven by the steel industry's transformation towards high-quality steel production[88] - The group remains confident in the long-term growth and positive outlook for the Chinese economy despite current challenges[87] Corporate Governance and Compliance - The company has taken sufficient measures to ensure compliance with the corporate governance code as of December 31, 2020[117] - The company will periodically review and improve its corporate governance practices in line with the latest trends[117] - The company has not complied with the listing rules regarding the composition of the board of directors, with independent non-executive directors accounting for less than one-third of the board[120] - The audit committee has no members following changes in the board composition, and the annual performance has not been reviewed by the audit committee[122] Shareholder and Market Information - The company did not declare any final dividend for the year ended December 31, 2020[45] - The company has no significant contingent liabilities as of December 31, 2020[103] - Trading of the company's shares has been suspended since April 1, 2021, and will continue until further notice[125]

Financial Performance - The company reported revenue of approximately HKD 125,484,000 for the six months ended June 30, 2020, a decrease of about 78.11% compared to HKD 573,367,000 for the same period in 2019[5]. - The loss from continuing operations was approximately HKD 5,914,000, a reduction of about 92.08% compared to a profit of HKD 74,659,000 in the same period of 2019[5]. - The mining business generated revenue of approximately HKD 86,685,000, down from HKD 163,795,000 in 2019, with aluminum powder production at 1,176 tons compared to 1,977 tons in 2019[6]. - The property management business recorded revenue of approximately HKD 2,753,000, a decrease of about 14.02% from HKD 3,207,000 in the previous year[9]. - The chemical trading business generated revenue of approximately HKD 36,046,000 for the six months ended June 30, 2020[10]. - The group reported a pre-tax loss of HKD 8,951 thousand for the period, compared to a pre-tax loss of HKD 83,280 thousand in the same period last year[100]. - The group reported a pre-tax loss of HKD 90,427,000 for the six months ended June 30, 2020, a significant improvement from a loss of HKD 41,065,000 in the same period of 2019[110]. - The group reported a gain from modification of loans amounting to HKD 112,313,000 for the six months ended June 30, 2020[110]. Cash Flow and Assets - The group recorded a net cash inflow of approximately HKD 10,097,000 for the period, compared to a cash outflow of approximately HKD 95,036,000 for the same period last year[41]. - Total current assets as of June 30, 2020, amounted to HKD 1,345,426,000, an increase from HKD 1,244,874,000 as of December 31, 2019[45]. - Net cash generated from operating activities was HKD 961 thousand for the six months ended June 30, 2020, a significant recovery from a net cash outflow of HKD 182,012 thousand in the same period of 2019[75]. - Cash and cash equivalents increased to HKD 29,343 thousand as of June 30, 2020, compared to HKD 28,474 thousand as of June 30, 2019, showing a growth of 3.0%[75]. - The company’s total assets less current liabilities stood at HKD 3,396,490 thousand as of June 30, 2020, compared to HKD 3,440,926 thousand as of December 31, 2019, reflecting a decrease of 1.3%[70]. Liabilities and Equity - The group had borrowings of approximately HKD 1,344,658,000 as of June 30, 2020, down from HKD 1,381,445,000 as of December 31, 2019[47]. - The debt-to-equity ratio as of June 30, 2020, was approximately 1.46, compared to 1.42 as of December 31, 2019[41]. - Total liabilities increased to HKD 2,570,482 thousand as of June 30, 2020, compared to HKD 2,497,072 thousand as of December 31, 2019, reflecting a growth of 2.9%[70]. - The total equity attributable to the owners of the company was HKD 1,756,083,000 as of June 30, 2020, slightly up from HKD 1,754,125,000 as of December 31, 2019[67]. Shareholder Information - As of June 30, 2020, the company had a total of 21,495,386,286 shares issued[151]. - Major shareholder China Huarong Asset Management Co., Ltd. holds 4,888,000,000 shares, representing 22.74% of the company's issued shares[138]. - The beneficial owner Mr. Qian holds 11,500,000 shares directly and has a 95% interest in China Wantai, which in turn holds 100% of Universal Union[151]. - The company has no knowledge of any other individuals holding 5% or more of the issued share capital as of June 30, 2020[151]. Business Strategy and Outlook - The company remains confident in the long-term growth and positive outlook for the Chinese economy despite challenges posed by the COVID-19 pandemic[16]. - The domestic aluminum demand is expected to continue increasing in the second half of 2020 due to structural upgrades in the steel industry and environmental policies[17]. - The company plans to invest in safety and environmental protection, control costs, and improve production efficiency to navigate the competitive chemical manufacturing market[21]. - The company is actively seeking to enhance operational efficiency and expand its mineral resources to improve future financial performance and profitability[21]. - The company is committed to adjusting its business strategies as necessary to adapt to market conditions and enhance growth opportunities[21]. Corporate Governance - The company has complied with the corporate governance code, with some deviations explained[166]. - The chairman and CEO roles are held by the same individual, which the board believes is beneficial for decision-making[168]. - The company has established a board diversity policy to ensure sustainable and balanced development[169]. - The company is actively seeking suitable candidates to fill the vacancies left by the resignation of Mr. Yang Riqian to comply with listing rules[178]. Stock Options and Subscriptions - The company has a stock option plan adopted on May 25, 2011, valid for ten years, aimed at attracting and retaining talent[154]. - On June 7, 2020, the company agreed to issue 1,875,000,000 shares at a subscription price of HKD 0.016 per share, a premium of approximately 42.86% over the average closing price prior to the agreement[159]. - The total proceeds from the subscription are expected to be approximately HKD 30,000,000, with a net amount of about HKD 29,800,000 after expenses[162]. - The funds from the subscription will be used for settlement payments, debt repayment, and working capital[162].