Financial Performance - For the six months ended September 30, 2022, the group recorded revenue from electric vehicle sales of approximately HKD 800,000, a decrease from HKD 29,700,000 in the same period last year[8]. - Gross profit for the same period was approximately HKD 400,000, with a gross margin of 49.9%, significantly up from 13.7% in the previous year[8]. - The group reported a loss of approximately HKD 41,000,000, an improvement from a loss of HKD 53,900,000 in the prior year[8]. - Basic and diluted loss per share for the period was HKD 0.0042, compared to HKD 0.0058 in the same period last year[9]. - For the six months ended September 30, 2022, the company reported revenue of HKD 781,000, a significant decrease from HKD 29,717,000 in the previous year, representing a decline of approximately 97.37%[94]. - The gross profit for the same period was HKD 390,000, down from HKD 4,078,000, indicating a decline of about 90.43%[94]. - The company recorded a loss before tax of HKD 41,068,000, an improvement compared to a loss of HKD 55,044,000 in the previous year, showing a reduction of about 25.41%[94]. - The net loss for the period was HKD 41,003,000, compared to a net loss of HKD 53,924,000 in the prior year, indicating a decrease of approximately 24.00%[94]. - Total comprehensive loss for the six months ended September 30, 2022, was HKD (225,146) thousand, compared to a loss of HKD (21,944) thousand in the same period of 2021[96]. - The company's loss attributable to owners was HKD (38,270) thousand, an improvement from a loss of HKD (49,608) thousand year-over-year[96]. Operational Developments - The group has launched a fully electric 19-seat low-floor minibus (APEX-MINI), which has received positive recognition from operators across various business segments[17]. - APEX-MINI is designed for the Hong Kong minibus market, which has a total market size exceeding 4,000 vehicles[17]. - The group has been selected as a pre-approved supplier by the Hong Kong government to provide 40 electric public minibuses for a sustainable public transport trial plan in 2023[17]. - The company has developed the "COMET" electric transport vehicle, designed for emerging markets, with plans to deliver at least 500 units to the Philippines within the next 24 months[18]. - The company successfully completed a sale of COMET to India, contributing to the performance during the reporting period[18]. - A new logistics vehicle, the "box chassis," has been developed, with an initial order of 200 units to be delivered to a major baking company in Mexico in Q1 2023[21]. - The company is confident in the growing demand for electric vehicle custom solutions in Latin America, Asia, and Europe[21]. - The company is utilizing its existing production facility in Wulong District, Chongqing, which has sufficient capacity to meet increasing overseas order volumes[25]. - The company is exploring investment opportunities to expand its electric vehicle production capacity when necessary[30]. Cost Management - Administrative expenses were reduced to approximately HKD 32,100,000, down from HKD 54,700,000 in the previous year, primarily due to decreased legal and professional fees and employee costs[8]. - Employee expenses decreased by 14.0% to HKD 11,100,000 for the period, compared to HKD 12,900,000 for the same period last year[58]. - The company reported a 5.0% decrease in other payables and accrued liabilities to HKD 148,800,000, primarily due to an 11.9% depreciation of the RMB against the HKD[48]. - The company did not incur any expenses related to the acquisition of property, plant, and equipment during the current period, compared to HKD (1,623) thousand in the previous year[111]. - The company did not purchase, redeem, or sell any of its listed securities during the six months ended September 30, 2022[86]. Legal and Regulatory Matters - The company has resolved a lawsuit regarding construction costs amounting to approximately RMB 45,477,000, with a settlement reached[29]. - Guangxi Weirich is facing a legal arbitration case with a contractor, with a potential liability of RMB 2,100,000, which has been provisioned in the financial statements[34]. - The company is actively seeking legal advice regarding a lawsuit that could impact its interests, with a court hearing held on October 21, 2021[39]. - The company continues to communicate with local authorities to resolve land issues, as the frozen land has remained idle since 2014[38]. - The company is monitoring the status of the frozen land use rights, which may face the risk of confiscation by local authorities[38]. Shareholder and Capital Structure - The board considers issuing shares as an attractive opportunity to raise funds and expand the shareholder and capital base, with plans to seek external financial resources for operational needs[46]. - The company has entered into subscription agreements for a total of up to HKD 600,000,000 in convertible bonds but terminated these agreements on October 20, 2022[46]. - The company has entered into a new subscription agreement for a total value of up to HKD 200,000,000, structured in 40 equal tranches of HKD 5,000,000 each[59]. - The company will hold a special general meeting on December 8, 2022, for shareholders to consider and approve the proposed convertible bonds[59]. - Major shareholders include Mr. Zhang Ren, holding 762,324,959 shares, which is approximately 8.46% of the company's issued share capital[82]. - Faith Profit Holding Limited, wholly owned by Mr. Zhang Ren, holds 222,586,400 shares, representing about 2.47% of the issued share capital[82]. - Entrust Limited, controlled by several individuals including Mr. Chen Tuo Yu, holds 982,727,510 shares, accounting for approximately 10.91% of the issued share capital[82]. Asset and Liability Management - As of September 30, 2022, the company's net asset value was approximately HKD 1,585,500,000, a decrease from HKD 1,810,700,000 as of March 31, 2022[47]. - The company's capital debt ratio increased to 1.33% as of September 30, 2022, compared to 1.20% as of March 31, 2022[47]. - The company's cash and bank deposits decreased to approximately HKD 1,900,000 as of September 30, 2022, down from HKD 4,700,000 as of March 31, 2022[51]. - Non-current assets decreased to HKD 1,629,679 thousand from HKD 1,830,812 thousand as of March 31, 2022, reflecting a decline of approximately 11%[99]. - Current assets totaled HKD 145,234 thousand, down from HKD 180,903 thousand, indicating a decrease of about 20%[99]. - Total assets decreased to HKD 1,774,913 thousand from HKD 2,011,715 thousand, representing a decline of approximately 12%[99]. - Current liabilities amounted to HKD 109,504 thousand, slightly down from HKD 113,312 thousand[101]. - The net asset value decreased to HKD 35,730 thousand from HKD 67,591 thousand, a decline of approximately 47%[101]. - Total equity attributable to owners decreased to HKD 1,626,112 thousand from HKD 1,853,836 thousand, reflecting a decrease of about 12%[101]. Market Outlook - The group continues to expand its international sales network, indicating a positive trend in sales revenue[8]. - The company is optimistic about the recovery of the tourism industry post-pandemic, which is expected to drive demand for electric buses[15]. - The company believes that the use of zero-emission electric vehicles is increasingly popular globally, which will drive growth in its electric bus and vehicle business[55]. - The company is optimistic about expanding its business into overseas markets, including the Americas, Europe, and Asia[55].

Financial Performance - The company recorded revenue from electric vehicle sales of approximately HKD 49.9 million for the year ended March 31, 2022, compared to HKD 23.8 million in the previous year, representing a year-over-year increase of 109.2%[11]. - Gross profit was approximately HKD 4.8 million, with a gross margin of 9.6%, down from 28.9% in the previous year, attributed to rising material costs that could not be passed on to customers[11]. - The company reported a loss of approximately HKD 415.1 million for the year, a significant reduction from a loss of HKD 787.3 million in the previous year, primarily due to a decrease in non-cash impairment losses related to mineral assets[11]. - Basic and diluted loss per share was HKD 0.05, compared to HKD 0.11 in the previous year[12]. - The company's revenue for the year ended March 31, 2022, was HKD 49,900,000, an increase from HKD 23,800,000 in the previous year, representing a growth of approximately 109.2%[114]. - The loss attributable to the company's owners for the year was HKD (408,300,000), an improvement from HKD (780,500,000) in the prior year[114]. - The group reported a loss before tax of HKD 418,709,000 for 2022, which is an improvement compared to a loss of HKD 788,146,000 in 2021[124]. Sales and Market Expansion - The company has diversified its sales network to multiple overseas markets, including Southeast Asia, Germany, and Spain, contributing to the increase in sales orders[19]. - The company has completed its first sales order for two 12-meter smart electric buses in Hong Kong, marking a positive entry into the non-franchised bus market[21]. - The company anticipates a significant demand shift towards electric buses as the tourism industry recovers post-pandemic, leveraging its strong market position with over 7,000 vehicles[21]. - The company launched a fully electric 19-seat low-floor minibus, with a total market size exceeding 4,000 units in Hong Kong[22]. - The company has developed the "COMET" city bus tailored for emerging markets, with successful sales orders completed in the Philippines, and plans to deliver at least 500 units within the next 24 months[27]. - The company has delivered several batches of 6-meter and 7.5-meter electric vehicles and chassis to Mexico and Spain, indicating a growing trend in overseas market expansion[28]. Cost Management and Efficiency - The company plans to continue optimizing costs to ensure maximum efficiency and enhance product value, aiming to capture a larger market share[11]. - Administrative expenses decreased by 1.0% to HKD 102,000,000, while revenue increased by 110.0%[76]. - Sales and distribution expenses were HKD 800,000, a reduction of 20% compared to the previous year[74]. - The company has implemented a cost optimization plan to ensure maximum efficiency amid its global market growth strategy[98]. Mineral Assets and Impairment - The company’s Guangxi Weiri Mining subsidiary holds significant mineral resources, with a total controlled and inferred resource of 1,346,000 tons of sodium sulfate[36]. - The fair value of mineral assets decreased from approximately HKD 1,826,200,000 to HKD 1,595,000,000, primarily due to reduced estimated excess earnings and increased discount rates[57]. - Impairment loss was approximately HKD 301,800,000, a decrease from HKD 690,000,000 in the previous year, and is a non-cash item that will not affect cash flow[58]. - The impairment loss on mineral assets was RMB 248,100,000 (approximately HKD 301,800,000), down from RMB 690,000,000 in the previous year, due to a decline in fair value of the calcium sulfate mine[78]. Shareholder and Capital Structure - The company raised approximately HKD 38,860,000 from the issuance of 268,000,000 new shares, with funds allocated for operational expenses and procurement of raw materials[91]. - The company also raised approximately HKD 46,800,000 from the issuance of 367,660,000 new shares, with funds similarly allocated for operational expenses and procurement[93]. - The capital debt ratio increased to 1.20% from 0.54% in the previous year[84]. - The group's cash and bank balances were approximately HKD 4,700,000, down from HKD 52,700,000 in the previous year, with a significant decrease in cash held in HKD[88]. - The net asset value per share decreased to HKD 0.20 from HKD 0.25, indicating a reduction in shareholder equity per share[114]. Governance and Management - The company has established related party transactions in accordance with normal commercial terms, as detailed in the financial statements[162]. - The financial report indicates a strong governance structure with independent directors ensuring compliance and oversight[187]. - The independent non-executive director, Mr. Li Guoliang, has over 20 years of experience in asset management and investment due diligence[189]. - The company maintains a strategy to attract suitable talent for its ongoing development through the share incentive plan[153]. Research and Development - R&D expenses for the year amounted to HKD 8,100,000, a significant increase of over 100% compared to HKD 300,000 in the previous year[77].

Financial Performance - The group recorded revenue from electric vehicle sales of approximately HKD 29.7 million, an increase from HKD 21.5 million in the same period last year[10]. - Gross profit was approximately HKD 4.1 million, with a gross margin of 13.7%, down from 32.5% in the previous year[10]. - The group incurred a loss of approximately HKD 53.9 million, compared to a loss of HKD 29.2 million in the same period last year[11]. - The company's revenue for the first half of the year increased to approximately HKD 29,700,000, up from approximately HKD 23,800,000 for the entire previous year[24]. - The gross profit margin decreased to 13.7% from 32.5% due to intense industry competition[24]. - For the six months ended September 30, 2021, the company reported revenue of HKD 29,717,000, an increase from HKD 21,454,000 in the same period last year, representing a growth of approximately 38.5%[80]. - The gross profit for the same period was HKD 4,078,000, down from HKD 6,974,000, indicating a decline of about 41.0%[80]. - The company incurred a loss before tax of HKD 55,044,000, compared to a loss of HKD 29,651,000 in the previous year, reflecting an increase in losses of approximately 85.5%[80]. - The total comprehensive loss for the period was HKD 21,944,000, a significant decrease from a comprehensive income of HKD 76,749,000 in the prior year[80]. - The basic and diluted loss per share was HKD 0.0058, compared to HKD 0.004 in the previous year, indicating a worsening in per-share performance[83]. Expenses and Liabilities - Administrative expenses increased to approximately HKD 54.7 million, primarily due to legal and professional fees related to a proposed secondary listing amounting to HKD 5.2 million[11]. - The company's administrative and other expenses increased to HKD 54,724,000 from HKD 38,031,000, representing a rise of approximately 43.8%[80]. - Current liabilities rose to HKD 109,732 thousand from HKD 91,493 thousand, marking an increase of about 19.9%[88]. - The company reported a net impairment loss on trade receivables of HKD 286,000, down from HKD 1,104,000 in the previous year, showing an improvement in receivables management[80]. - Other payables and accrued liabilities increased by 5% to HKD 149,000,000 as of September 30, 2021, compared to HKD 142,000,000 as of March 31, 2021[37]. Investments and Orders - The group has received a significant order for 12-meter electric chassis and another large order for 12-meter city buses in Latin America, which are expected to positively impact overall financial performance[18]. - The company has developed a customized city bus named COMET, with plans to deliver at least 500 units within the next 24 months, starting with approximately 100 units by the end of 2022[17]. - The company is negotiating new smart electric bus orders through the Hong Kong Productivity Council and plans to sell fully electric 65-seat buses in Hong Kong[20]. - The company has launched a fully electric 19-seat low-floor minibus, with initial small-scale trial orders received, targeting a market demand exceeding 4,000 units in Hong Kong[20]. - The company agreed to invest €2,027,929.91 (approximately HKD 19,062,000) to acquire 2,698 shares of Quantron AG, representing about 4.98% of the expanded share capital[21]. - The company further agreed to invest €5,000,000 (approximately HKD 45,848,191) to acquire 6,459 shares of Quantron, representing about 10.18% of the expanded share capital, resulting in a total holding of 9,157 shares or approximately 14.43%[21]. Production and Facilities - The company is currently utilizing its existing production facility in Wulong District, Chongqing, to meet increasing overseas order volumes[24]. - The new production facility in Qijiang District, Chongqing, has been completed but has not yet begun installing production equipment[24]. - The company has delivered 12-meter fully electric buses and 4.5-ton fully electric micro trucks to Europe, with plans to deliver a hydrogen bus by the end of 2021[21]. Market Outlook - The company is optimistic about the recovery of the tourism industry post-pandemic, which is expected to drive demand for electric buses in Hong Kong[20]. - The electric vehicle sector is expected to grow rapidly, driven by increasing global focus on air pollution reduction and sustainable economic development[46]. - The company anticipates a return to a more favorable business environment in the next fiscal year, despite the ongoing challenges posed by the COVID-19 pandemic[46]. Legal and Compliance - A contractor initiated arbitration against the company's subsidiary Guangxi Weiri, seeking to freeze assets worth up to RMB 2,055,087[27]. - The company is actively seeking legal advice regarding ongoing litigation related to its subsidiary Guangxi Weiri, which involves a claim for unpaid capital of RMB 21,700,000[29]. - The company has adopted the corporate governance code as per the listing rules and has complied with the relevant principles during the reporting period[75]. Assets and Equity - The company's net asset value as of September 30, 2021, was approximately HKD 2,145,000,000, an increase from HKD 2,071,500,000 as of March 31, 2021[36]. - Total assets as of September 30, 2021, amounted to HKD 2,342,044,000, up from HKD 2,243,525,000 as of March 31, 2021[115]. - The company's equity attributable to owners increased to HKD 2,184,760 thousand from HKD 2,107,732 thousand, reflecting a growth of approximately 3.7%[88]. - The total equity increased from HKD 82,902,000 on March 31, 2021, to HKD 90,096,000 on September 30, 2021, due to share issuance[174]. Employee and Shareholder Information - Employee expenses decreased by 3.8% to HKD 15,300,000 compared to HKD 15,900,000 for the same period last year[51]. - The company employs 106 full-time management and technical staff primarily in Hong Kong and China as of September 30, 2021[51]. - As of September 30, 2021, major shareholders included Mr. Zhang Ren with a beneficial interest of 8.04% and Entrust Limited with a beneficial interest of 10.91%[70]. - The company did not recommend any interim dividend for the six months ended September 30, 2021, consistent with the previous year where no dividend was declared[136].

Financial Performance - For the fiscal year ending March 31, 2021, the group recorded revenue of approximately HKD 23.8 million, a significant increase from HKD 5.1 million in the previous year, primarily driven by vehicle sales[14] - Gross profit for the same period was approximately HKD 6.9 million, with a gross margin of 28.9%, compared to 13.4% in the previous year, attributed to increased sales orders and better economies of scale[14] - The group reported a loss of approximately HKD 787.3 million, up from a loss of HKD 162 million in the previous year, mainly due to increased non-cash expenses including impairment losses on mineral assets of HKD 690 million[15] - The loss attributable to owners of the company was approximately HKD 780.5 million, with basic and diluted loss per share of HKD 0.1, compared to HKD 0.02 in the previous year[16] - The company's revenue for the year ended March 31, 2021, was HKD 23,800,000, a significant increase from HKD 5,100,000 in the previous year, representing a growth of approximately 366%[76] - The loss attributable to the company's owners for the year was HKD (780,500,000), compared to a loss of HKD (146,900,000) in the previous year, indicating a deterioration in performance[76] - The current ratio decreased to 1.9 times from 2.3 times in the previous year, reflecting a decline in liquidity[76] - The total assets of the company as of March 31, 2021, were HKD 2,243,525,000, down from HKD 2,755,389,000 in the previous year, a decrease of approximately 18.5%[88] - The total liabilities increased to HKD (172,073,000) from HKD (147,674,000) in the previous year, indicating a rise in financial obligations[88] Business Development - The company has diversified its business into overseas markets, completing sales orders for two smart electric buses in Hong Kong and negotiating additional orders[20] - The company launched a fully electric 19-seat low-floor minibus, with a trial order already secured, targeting a market demand exceeding 4,000 units in Hong Kong[20] - The group has developed a city bus named COMET for emerging markets in Southeast Asia, with initial orders delivered during the review period and further orders expected in the next 24 months[22] - The company is optimistic about the recovery of the tourism industry post-pandemic, which is expected to drive demand for electric buses[20] - The company has developed a 12-meter "power chassis" for the South American market, fulfilling B2B demands from local bus manufacturers lacking technical development capabilities[23] - A significant order for 12-meter electric chassis and another for 12-meter city buses in Latin America have been secured, expected to positively impact overall financial performance[23] - The company has invested in Quantron AG, acquiring a 4.98% stake, which is anticipated to enhance European business expansion opportunities[23] - Strong demand for electric buses in Europe is expected to maintain stable order volumes following the delivery of 12-meter electric and hydrogen-powered buses in Q3 and Q4 of 2021[23] - The company has received trial orders for logistics vehicles in the European market, with expectations for further orders post-trial[27] - The company confirmed several orders from Central and South American countries, with deliveries expected before the end of 2021[28] Cost Management and Financial Strategy - The group is implementing a cost optimization plan to ensure maximum efficiency and value addition to its final products[14] - The company is exploring various fundraising methods, considering subscription and placement of shares as attractive opportunities to raise capital[40] - The company issued 268,000,000 new shares at a subscription price of HKD 0.145 per share, raising approximately HKD 38,860,000 after expenses[47] - The company issued 367,660,000 new shares at a placement price of HKD 0.15, raising approximately HKD 53,500,000 for general operating funds and electric vehicle business development[60] - The company has not entered into any metal ore sales contracts during the year due to a weak market and low gross margins[39] - The company has not entered into any foreign exchange forward contracts for RMB hedging during the year[45] - The construction costs for the Chongqing automotive manufacturing plant increased, contributing to the rise in other payables and accrued expenses[43] - Other payables and accrued expenses increased by 17.2% to HKD 142,000,000 as of March 31, 2021, compared to HKD 121,200,000 in 2020[43] - The company has completed the purchase of land use rights covering 63,118 square meters at a cost of RMB 7.6 million[31] Corporate Governance - The company is in the process of changing its name from China Power (Holdings) Limited to Kexuan Power (Holdings) Limited[63] - The company has adopted the corporate governance code as per the listing rules, with compliance noted except for specific clauses A.2.1, A.4.1, and A.6.7[163] - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced structure with diverse expertise[167] - The company emphasizes the importance of maintaining a balance of power and safeguards within its governance structure[176] - The company has established a share award scheme to incentivize and retain qualified participants, with a maximum of 688,604,680 shares available for the plan[118] - The company has maintained sufficient public float as per listing rules during the reporting period[156] - The company ensures that one-third of the directors retire by rotation at each annual general meeting, with all directors required to retire at least once every three years[179] - The company has a policy that mandates non-executive directors to retire at least every three years, ensuring regular re-election[173] - Continuous professional development for directors is emphasized, with training records provided for the fiscal year ending March 31, 2021[174] - The company is committed to maintaining high standards of corporate governance and has established best practices tailored to its needs[162] Shareholder Information - The company's net asset value as of March 31, 2021, is approximately HKD 2,071,500,000, a decrease from HKD 2,607,700,000 in 2020[40] - The net asset value per share decreased to HKD 0.25 from HKD 0.38 in the previous year, reflecting a decline in shareholder equity[76] - The company reported a retained earnings of HKD 87,109,000 as of March 31, 2021, unchanged from the previous year[96] - The largest customer accounted for 37.3% of total sales, while the top five customers collectively represented 100% of sales[97] - The largest supplier contributed 25.7% to total procurement, with the top five suppliers making up 70.6% of procurement[97] - Zhang Ren holds 724,324,959 shares, representing approximately 8.74% of the total shareholding[127] - Entrust Limited holds 982,727,510 shares, accounting for approximately 11.85% of the total shareholding[137] - Faith Profit Holding Limited owns 222,586,400 shares, which is about 2.68% of the total shareholding[137] - The company has no significant contingent liabilities or asset pledges as of March 31, 2021[53] - The company has no knowledge of any tax relief available to shareholders for holding its securities[104] Risk Management - The company is closely monitoring government policies and subsidies related to its new energy business, which may impact product pricing and receivable amounts[79] - The concentration of credit risk from the company's largest customer was 34%, down from 39% in the previous year, indicating improved diversification[79] - The company reported a foreign exchange gain due to a 7.8% appreciation of the Renminbi against the Hong Kong Dollar during the year, positively impacting financial results[77] - The discount rate used for the mine's valuation increased to 21.96% due to uncertainties and fluctuations in global demand caused by the pandemic[31] - The Audit Committee assessed the effectiveness of the internal control and risk management systems, including financial, operational, and compliance monitoring[194]

Financial Performance - The group recorded vehicle sales revenue of approximately HKD 21,500,000, a significant increase from HKD 2,700,000 in the same period last year, resulting in a gross profit of HKD 7,000,000 with a gross margin of 32.5%[14] - The loss for the period was approximately HKD 29,200,000, reduced from HKD 38,800,000 in the previous year, primarily due to increased gross profit and reduced administrative expenses of about HKD 38,000,000[14] - Revenue from continuing operations for the six months ended September 30, 2020, was HKD 21,454,000, compared to HKD 2,675,000 for the same period in 2019, representing an increase of 694%[78] - Gross profit for the same period was HKD 6,974,000, significantly up from HKD 89,000 in 2019, indicating a substantial improvement in profitability[78] - The total comprehensive income for the period was HKD 76,749,000, compared to a loss of HKD 211,469,000 in the previous year, reflecting a turnaround in financial performance[78] - The company reported a net loss attributable to owners of the company from continuing operations of HKD 27,718,000, an improvement from HKD 37,412,000 in the prior year[80] - The company reported a total comprehensive loss of HKD (29,651) for the six months ended September 30, 2020, compared to HKD (42,664) in the previous year[86] Operational Developments - The subsidiary, Chongqing Suitong New Energy Vehicle Manufacturing Co., Ltd., successfully secured sales orders for 8.5-meter buses during the review period[18] - The group has completed sales orders for two smart electric buses for the Hong Kong Airport Authority and the Hong Kong Anti-Cancer Society, with negotiations ongoing for two additional orders[18] - The group has developed a 7-meter city bus tailored for emerging Southeast Asian markets, with the first batch of orders delivered and expected to gain more orders soon[19] - A large-scale order has been secured in Latin America for a 12-meter "power chassis," with ongoing negotiations for another significant order[19] - The group has received a trial order for logistics vehicles to be exported to Europe, with expectations of more orders following successful trials[19] - Sales orders from Southeast Asia have been completed and recognized in the current year's profit and loss, with additional orders from Central and South America currently in production and expected to be delivered within 2021[21] Corporate Governance and Management - The company did not recommend any interim dividend for the six months ended September 30, 2020, consistent with the previous year[15] - The appointment of a new CEO, Mr. Valldecabres Polop, is expected to enhance the group's internationalization efforts, attracting more attention from international investors[19] - Zhang Ren served as both Chairman and CEO until October 16, 2020, when Miguel Valldecabres Polop was appointed as CEO[69] - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with the principles and provisions[69] Financial Position - As of September 30, 2020, the company's net asset value was approximately HKD 2,687,600,000, an increase from HKD 2,607,700,000 as of March 31, 2020[28] - The company's other payables and accrued expenses increased by 3% to HKD 124,900,000 as of September 30, 2020, primarily due to the appreciation of the RMB against the HKD[29] - The company has no bank borrowings as of September 30, 2020, maintaining a capital debt ratio of zero[28] - The total assets amounted to HKD 2,839,559,000, compared to HKD 2,755,389,000 in the previous period, indicating growth in the asset base[82] - The total equity attributable to owners of the company increased to HKD 2,717,038,000 from HKD 2,634,161,000, indicating a strengthening of the company's financial position[84] Market and Industry Insights - The group aims to diversify its business into overseas export markets, with confidence that the electric bus and vehicle sectors will experience rapid growth, contributing to overall revenue[33] - The demand for calcium sulfate, a key product for the chemical and light manufacturing industries, is expected to continue increasing due to ongoing urbanization in China and economic growth in ASEAN[33] - The group believes that industry consolidation and alliances will lead to a more rational market for calcium sulfate products[33] Shareholder Information - Zhang Ren holds 724,324,959 shares, representing approximately 10.57% of the company's total issued share capital[55] - Faith Profit Holding Limited, wholly owned by Zhang Ren, holds 222,586,400 shares, accounting for 3.25% of the total shares[55] - Entrust Limited holds 982,727,510 shares, which is 14.34% of the total issued shares, controlled by multiple individuals[65] - Zhou Jinkai owns 342,980,000 shares, representing 5.00% of the total shares[55] - The company repurchased 70,000 shares at a total cost of approximately HKD 6,000 during the reporting period[68] Cash Flow and Liquidity - The company’s cash and bank balances decreased to HKD 42,868,000 from HKD 71,673,000, reflecting a reduction in liquidity[82] - The net cash from financing activities was HKD 57,360,000, with a decrease in cash and cash equivalents of HKD 31,170,000[90] - The cash and cash equivalents at the end of the period amounted to HKD 42,868,000, down from HKD 141,516,000 in the previous period[90] Research and Development - Research and development costs for the current period were HKD 638,000, down from HKD 1,006,000 in the previous period, suggesting a potential shift in R&D focus or budget[130] - The company plans to concentrate resources on developing its electric vehicle business, having ceased operations in its mining segment, which reflects a strategic pivot towards growth areas[132] Capital Expenditure - For the six months ended September 30, 2020, the group purchased properties, plants, and equipment amounting to approximately HKD 1,481,000, compared to HKD 899,000 for the same period in 2019[149] - Capital expenditure related to the development of electric vehicles was HKD 16,422,000, up from HKD 15,904,000 as of March 31, 2020[188] - The capital expenditure related to mining operations was HKD 8,519,000, compared to HKD 8,178,000 as of March 31, 2020[188]

| --- | --- | --- | |----------------------------------------------------------------------------------------|-------|------------------------------------------------------------------------------------------------------------------| | | | | | | | | | 中國動力 China Dynamics and and mintar and The Univers BALLERS THE LEADER UNITION DIA | | China Dynamics (Holdings) Limited 中國動力（控股）有限公司 (於百專達註冊成立之有限公司) (股份代號:476) 2020 年報 | | | | | 目錄 目錄 | --- | --- | |----------------|-------| | | 頁次 | | 公司資料 | 2 | | 主席報告 | 3-14 ...

Financial Performance - The group recorded revenue from vehicle and battery sales of approximately HKD 2,700,000, a significant increase from HKD 300,000 in the same period last year[11]. - Gross profit was approximately HKD 100,000, with a gross margin of 3.3%, compared to 3.2% in the previous year[11]. - Loss from continuing operations was approximately HKD 38,800,000, reduced from HKD 53,600,000 in the prior year[11]. - The company’s loss attributable to owners was approximately HKD 37,400,000, compared to HKD 51,600,000 in the same period last year[12]. - The company reported a total comprehensive loss of HKD 211,469,000 for the period, compared to HKD 323,458,000 in the prior year, reflecting a 34.6% reduction in losses[85]. - The company reported a loss attributable to shareholders of HKD 37,412,000 for the six months ended September 30, 2019, compared to a loss of HKD 51,556,000 for the same period in 2018, representing a 27.4% improvement in losses[168]. - The company incurred a loss of HKD 1,675,000 from discontinued operations for the six months ended September 30, 2019, compared to HKD 3,051,000 for the same period in 2018, marking a 45.1% decrease in losses[172]. Revenue and Orders - The group has received orders for two smart electric buses to be delivered to the Hong Kong Productivity Council for trial use[16]. - The group is negotiating trial orders for logistics vehicles and buses for export to Europe, with expectations of securing more orders post-trial[17]. - Reported segment revenue for the six months ended September 30, 2019, was HKD 2,675,000, compared to HKD 317,000 for the same period in 2018, representing a significant increase[142]. - Revenue from external customers in China, including Hong Kong, was HKD 2,675,000 for the six months ended September 30, 2019, compared to HKD 317,000 in the previous year[150]. Assets and Liabilities - As of September 30, 2019, total assets amounted to HKD 2,921,537 thousand, a decrease from HKD 3,075,200 thousand as of March 31, 2019, representing a decline of approximately 5.0%[90]. - Non-current assets totaled HKD 2,659,149 thousand, down from HKD 2,821,604 thousand, indicating a decrease of about 5.8%[90]. - Current assets increased to HKD 262,388 thousand from HKD 253,596 thousand, reflecting a growth of approximately 3.1%[90]. - Total liabilities decreased to HKD 149,348 thousand from HKD 155,214 thousand, showing a reduction of about 3.8%[93]. - The net asset value stood at HKD 2,772,189 thousand, down from HKD 2,919,986 thousand, which is a decline of approximately 5.0%[93]. - The company reported a total equity of HKD 2,772,189 thousand, down from HKD 2,919,986 thousand, indicating a decrease of about 5.0%[93]. Cash Flow and Financing - The company raised approximately HKD 32.3 million from the issuance of 330,000,000 new shares at HKD 0.10 per share, with the funds primarily allocated for general operational expenses and the development of electric vehicle business in China[37]. - A subsequent issuance of 670,000,000 shares at HKD 0.11 per share generated approximately HKD 70.6 million, with HKD 31.3 million used for operational expenses and HKD 9.3 million for electric vehicle development[37]. - The company recorded a net cash inflow from investment activities of HKD 97,360 thousand, a significant turnaround from a cash outflow of HKD (5,402) thousand in the previous year[100]. - The company reported a decrease in trade receivables by HKD 982 thousand, compared to a decrease of HKD 9,114 thousand in the previous year[100]. - The company recognized a loss before tax of HKD (39,874,000) for the six months ended September 30, 2019, compared to HKD (54,694,000) in the prior year[142]. Share Capital and Options - The company has unexercised share options totaling 407,500,000 shares as of September 30, 2019[33]. - The company repurchased 155,320,000 shares at a total cost of approximately HKD 17.3 million, representing about 2.18% of the total issued shares, which have since been canceled[42]. - The company has granted stock options totaling 4,900,000 shares to Zhang Ren, which are included in the total shares held[60]. - The total issued and paid-up share capital increased to 7,108,633,200 shares as of September 30, 2019, from 5,366,046,800 shares as of March 31, 2019[199]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with the principles and provisions[77]. - The company plans to review its governance structure to ensure effective leadership and decision-making processes[77]. - The company has not established any arrangements that would allow directors or their family members to benefit from purchasing shares or bonds of the company or any other entity during the period[57]. Market Outlook - The group remains optimistic about the potential for significant orders from overseas markets in the near future[17]. - The company expects continued growth in the electric bus and vehicle business, driven by global trends towards improving air quality and sustainable economic development[41]. - The demand for calcium sulfate, a key raw material for the chemical and light manufacturing industries, is anticipated to increase due to ongoing urbanization in China and economic growth in ASEAN countries[41].

Financial Performance - The group recorded revenue of approximately HKD 3,000,000 for the year ended March 31, 2019, a decrease from HKD 59,600,000 in 2018, primarily due to a reduction in vehicle and battery sales orders[21] - Gross profit decreased to approximately HKD 200,000, with a gross profit margin of 8.3%, compared to 1.4% in the previous year[21] - The group reported a loss of approximately HKD 177,100,000 for the year, an improvement from a loss of HKD 399,600,000 in the previous year[21] - Administrative and other expenses were reduced to approximately HKD 134,700,000, down from HKD 151,300,000 in 2018[21] - The company's revenue for the fiscal year 2019 was HKD 3,003,000, a significant decrease of 94.9% compared to HKD 59,568,000 in 2018[87] - The pre-tax loss for the year was HKD 179,369,000, an improvement from a loss of HKD 401,838,000 in the previous year, indicating a reduction of 55.4%[87] - The loss attributable to the company's owners for the year was HKD (156,600,000), compared to a loss of HKD (321,900,000) in the previous year, indicating an improvement of about 51%[77] - The total assets as of March 31, 2019, were HKD 3,075,200,000, down from HKD 3,352,073,000 in 2018, reflecting a decrease of 8.2%[88] - The total liabilities increased slightly to HKD 155,214,000 in 2019 from HKD 148,780,000 in 2018, marking an increase of 4.3%[88] - The company reported a loss attributable to owners of the company of HKD 156,625,000 for 2019, compared to HKD 321,861,000 in 2018, a reduction of 51.3%[87] Shareholder Information - As of March 31, 2019, Zhang Ren held 1,175,524,959 shares, accounting for 21.91% of the company's total shares[132] - Major shareholder Zhang Ren holds 1,175,524,959 shares, representing approximately 21.91% of the company's issued share capital[140] - Entrust Limited, controlled by Chen Tuoyu and Xiao Qun, holds 1,382,727,510 shares, accounting for approximately 25.77% of the company's issued share capital[140] - Major shareholder Zhou Jinkai owns 996,980,000 shares, which is about 18.58% of the company's issued share capital[142] - Yicko Finance Limited and its affiliates hold 640,000,000 shares, representing approximately 11.93% of the company's issued share capital[142] - Hong Kong Guoxin Industrial Investment Group Limited, owned by Li Fengmao, holds 740,000,000 shares, which is about 13.79% of the company's issued share capital[149] - Beijing Automotive City Investment Management Limited holds 203,860,000 shares, accounting for approximately 4.59% of the company's issued share capital[153] - The total number of shares held by major shareholders indicates a significant concentration of ownership within the company[140][142][149] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, although it has not fully complied with certain provisions[174] - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced structure with diverse knowledge and experience relevant to the group's business[178] - The independent non-executive directors confirmed no transactions were established based on the total agreement during the reporting period[128] - The company has confirmed the independence of its independent non-executive directors as per the listing rules[164] - The board is responsible for leading and monitoring the company, overseeing the group's business, strategic direction, and financial performance[177] - The company has arranged appropriate insurance for all directors[179] - The chairman and CEO positions are held by the same individual, Zhang Ren, which the board believes does not lead to excessive power concentration[174] - The board consists of more than one-third independent non-executive directors, with one possessing appropriate professional qualifications in accounting or related financial management[182] Operational Developments - The group is focusing on developing its proprietary powertrain system, with progress in optimizing control hubs and power efficiency[30] - A strategic cooperation framework agreement was signed with a leading hydrogen fuel cell supplier to develop fuel cell new energy vehicles[30] - The construction of a new production facility with an annual output of 5,000 new energy vehicles and buses is underway, with the first phase expected to be completed within two years[29] - The group aims to leverage its competitive advantages in the evolving smart city landscape, which is anticipated to be a significant global trend[30] - The group believes that the electrification of transportation vehicles or new energy vehicles is an inevitable global trend, with significant growth opportunities in the electric vehicle market[33] Mining Operations - Guangxi Weiri Mining Co., Ltd. holds one of the largest mirabilite mines in China, with an expected increase in demand for sodium sulfate due to ongoing urbanization in China[34] - The cumulative expenditure for land acquisition for factory and road access is approximately RMB 18.5 million, with no significant exploration or production activities conducted at the mirabilite mine during the reporting period[36] - The total mineral resources at the mirabilite mine as of March 31, 2019, amount to 1,346,000 tons, with a controlled resource of 1,248,000 tons and an inferred resource of 98,000 tons[40] - The average sodium sulfate content in the controlled resources is 17.53%, with a total metal tonnage of 236,000 tons[40] - The group has not recognized any impairment losses for the mining assets as the recoverable amount exceeds the carrying value, compared to an impairment loss of approximately HKD 104 million in the previous year[37] - The group is closely monitoring the development of the mirabilite mine and regularly assessing its resources, financial feasibility, and overall status[37] - The group plans to adjust the project timeline to assess the feasibility of certain supporting construction projects before proceeding with any construction activities[36] - The group remains confident in the unique and valuable asset of the mirabilite mine due to its substantial resources, strategic location, and market potential[37] Cash Flow and Financing - The group raised approximately HKD 70,600,000 through the issuance of 670,000,000 new shares at a price of HKD 0.11 per share, with a discount of about 18.88%[53] - The group's cash and bank balances as of March 31, 2019, were approximately HKD 21,700,000, a significant decrease from HKD 92,900,000 in 2018, reflecting a decline of about 76.7%[57] - The group has no bank borrowings as of March 31, 2019, compared to HKD 6,200,000 in borrowings in 2018, resulting in a capital debt ratio of zero[57] - The group is considering various fundraising methods, with share placements seen as an attractive opportunity to enhance liquidity and support future development[50] - The group will closely monitor currency risks and take necessary actions to hedge these risks when deemed appropriate[57] Customer and Supplier Concentration - The group’s major customer and five largest customers accounted for 39% and 85% of trade-related receivables and contract assets, respectively, indicating increased credit risk concentration compared to 30% and 79% in the previous year[80] - The largest customer accounted for 34.0% of total sales, while the top five customers combined represented 88.7% of sales[101] - The largest supplier contributed to 22.1% of total purchases, with the top five suppliers accounting for 53.7% of total purchases[101] Employee and Charitable Contributions - The group employed 154 full-time management and technical staff as of March 31, 2019, down from 239 in the previous year, reflecting a reduction in workforce[64] - Charitable donations made by the company during the year amounted to approximately HKD 41,000, a significant increase from HKD 1,000 in 2018[93]