Financial Performance - For the six months ended June 30, 2020, the company reported revenue of HKD 10,375,000, a decrease of 31.5% compared to HKD 15,073,000 for the same period in 2019[11]. - The gross profit for the same period was HKD 8,048,000, representing a gross margin of approximately 77.5%[11]. - The company incurred a loss before tax of HKD 27,916,000, compared to a loss of HKD 9,513,000 in the prior year, indicating a significant increase in losses[11]. - Total comprehensive loss for the period was HKD 30,278,000, compared to HKD 9,088,000 in the same period last year[14]. - The company’s basic and diluted loss per share was HKD 0.31, compared to earnings of HKD 0.07 per share in the previous year[14]. - The company reported a loss of HKD 30,278 million for the period, compared to a profit of HKD 4,730 million in the same period last year, indicating a significant downturn[21]. - The company reported a pre-tax loss of HKD 19,123 million, compared to HKD 25,613 million in the previous period[85]. - Employee benefits expenses totaled HKD 9,931 million, down from HKD 12,085 million in the previous year[86]. - The company reported a total of HKD 6,344 million in other income and gains, compared to HKD 2,933 million in the previous year[82]. Assets and Liabilities - As of June 30, 2020, total non-current assets amounted to HKD 357,645 million, an increase from HKD 335,388 million as of December 31, 2019, representing a growth of approximately 6.5%[16]. - Current assets totaled HKD 308,160 million, slightly up from HKD 306,099 million as of December 31, 2019, indicating a marginal increase of about 0.3%[16]. - The company's total liabilities increased to HKD 318,681 million from HKD 291,937 million, reflecting a rise of approximately 9.1%[16]. - The net asset value decreased to HKD 343,773 million as of June 30, 2020, down from HKD 347,345 million at the end of 2019, a decline of about 1.6%[19]. - Cash and cash equivalents decreased to HKD 106,385 million from HKD 139,478 million, a decline of approximately 23.7%[16]. - Trade payables increased to HKD 1,258 million from HKD 817 million, representing a growth of about 54%[16]. - The company’s goodwill stood at HKD 20,543 million as of June 30, 2020, with no goodwill reported in the previous period[16]. - The total equity attributable to shareholders decreased to HKD 2,728,501 million from HKD 2,703,301 million, reflecting a slight increase of about 0.9%[21]. - The company’s lease liabilities rose to HKD 2,030 million from HKD 1,998 million, marking an increase of approximately 1.6%[16]. Cash Flow - Operating cash flow for the period was a net outflow of HKD 31,311 million, compared to an inflow of HKD 29,571 million in the previous period[27]. - Cash flow from investing activities showed a net outflow of HKD 464 million, a significant decrease from an inflow of HKD 2,467 million in the prior period[27]. - Cash flow from financing activities resulted in a net inflow of HKD 2,093 million, compared to a net outflow of HKD 32,038 million previously[27]. - The company reported a cash and cash equivalents balance of HKD 106,385 million at the end of the period, down from HKD 219,881 million at the end of the previous period[27]. Operational Activities - The company is currently in the process of renewing exploration licenses for its mining operations[4]. - The confirmed reserves as of June 30, 2020, were 11,380.68 million cubic feet for natural gas and 282.47 thousand barrels for oil[8]. - The company is engaged in silver mining and sales in mainland China, and oil and gas exploration and production in the United States[29]. - The company is also involved in providing asset financing services and trading liquefied natural gas in China[29]. - The company has six operating segments, including "Silver Mining," "Oil and Gas," "Asset Financing," "LNG," "Travel," and "Photovoltaic," which are monitored separately for performance evaluation[46]. - The group has completed drilling two operational wells in East Texas, which began production in July 2014 and March 2015, respectively[141]. - The group holds over 400 lease agreements covering approximately 1,845 acres for oil and gas exploration in East Texas[141]. - The group plans to commence infrastructure construction at the East Mine by the end of 2020, pending the acquisition of mining permits[148]. Market and Customer Insights - Revenue from external customers in mainland China was HKD 9,537 million, down from HKD 13,197 million in the same period last year[65]. - Major customer A contributed HKD 2,505 million to total revenue, down from HKD 3,381 million[68]. - The group recorded no revenue from silver mining operations during the period, compared to HKD 500,000 in sales costs in the previous period[162]. - The group generated revenue of approximately HKD 6,700,000 from asset financing services, an increase from HKD 6,100,000 in the previous period[162]. - The photovoltaic power generation segment produced and sold approximately 2,394 megawatts of electricity, generating revenue of approximately HKD 2,200,000[162]. Governance and Compliance - The company has adhered to the corporate governance code, except for the deviation mentioned in code provision A.4.1 regarding the appointment of non-executive directors[196]. - All independent non-executive directors are not appointed for a specified term but must retire at the annual general meeting, with one-third of directors required to retire by rotation[196]. - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited interim financial statements for 2020[198]. - The audit committee is responsible for overseeing the financial reporting process, internal controls, and risk management systems[198].

Financial Performance - Total revenue for the year was approximately HKD 18,100,000, a decrease of 23% compared to HKD 23,600,000 in the previous year[42]. - Oil and gas production amounted to approximately 1,568 barrels and 115,000,000 cubic feet of natural gas, with average selling prices of USD 52.62 per barrel and USD 2.39 per thousand cubic feet[42]. - Revenue from asset financing services was approximately HKD 9,700,000, down from HKD 12,800,000 in the previous year[43]. - LNG trade generated revenue of approximately HKD 5,400,000, an increase from HKD 3,600,000 in the previous year[43]. - The company recorded a gross loss margin of 8% in oil and gas exploration and production, compared to a gross profit margin of 23% in the previous year[43]. - Other income and net gains were approximately HKD 7,000,000, down from HKD 17,400,000 in the previous year[44]. - Administrative expenses were approximately HKD 50,200,000, reduced from HKD 59,200,000 in the previous year due to cost-saving measures[45]. - The total loss attributable to shareholders for the year was approximately HKD 88.4 million, a reduction from HKD 143.3 million in the previous year[57]. Capital Expenditure and Reserves - The company reported a capital expenditure of approximately HKD 2,500,000 for development and mining production activities, consistent with the previous year[15]. - The confirmed reserves as of December 31, 2019, were 11,432.68 million cubic feet of natural gas, 284.92 thousand barrels of oil, and 127.32 thousand barrels of liquefied natural gas[20]. - The company has a total of 19,621.22 million cubic feet of probable reserves and 31,342.41 million cubic feet of possible reserves[20]. - The approximate ore reserves for the western and eastern mines as of December 31, 2019, were 0.69 million tons and 6.07 million tons, respectively[13]. Mining Operations - The company is primarily engaged in natural gas and oil exploration and drilling in the United States, and silver ore mining in China[23]. - The design capacity of the Fuan silver mine is 198,000 tons per year, while the Zherong silver mine has a design capacity of 660,000 tons per year[11][12]. - The group operates upstream oil and gas exploration and production projects in East Texas, USA, with over 400 lease agreements covering approximately 1,845 acres[24]. - The operational wells have been producing since July 2014 and March 2015, with each well having an extraction period of over 10 years[24]. - The group plans to drill six additional wells within the operational area, with estimated costs for drilling and related infrastructure ranging from $4.5 million to $5 million[25]. - The West Mine has an annual production capacity of 100,000 tons, with mining activities resuming in Q4 of the current year[28]. - The East Mine is designed for an annual production capacity of 330,000 tons, with a projected lifespan of 19 years, and the group is preparing to apply for a mining permit[29]. - The East Mine's exploration permit has expired, and the group has submitted an application for renewal, which is currently in progress[29]. Financial Position and Assets - The company's capital as of December 31, 2019, was HKD 1,724,472,000, which can be distributed in the form of bonus shares[154]. - The total carrying amount of silver mining assets is HKD 101,000,000, while the carrying amount of oil and gas assets is HKD 13,000,000[187]. - The company has been experiencing losses in both the silver mining and oil and gas segments, indicating potential impairment signs for these assets[190]. - The company’s total equity as of December 31, 2019, reflects its financial position accurately according to the Hong Kong Financial Reporting Standards[182]. Governance and Compliance - The board of directors is responsible for overseeing the group's business, strategic direction, and financial performance, holding regular meetings to set overall strategy and monitor business development[94]. - The company has established a remuneration committee to review and determine the remuneration of individual executive directors and senior management, with one meeting held during the year to assess the existing remuneration policy[106][107]. - The audit committee held two meetings during the year to review the accounting principles adopted by the group and discuss internal controls and risk management[104]. - The company has adopted a standard code for securities trading by directors, with all directors confirming compliance throughout the year[93]. - The company has established a governance framework to ensure compliance with legal and regulatory requirements, including regular training and professional development for directors and senior management[95]. - The company confirmed compliance with relevant laws and regulations, with no significant violations reported for the year ending December 31, 2019[145]. Environmental and Regulatory Matters - The company is subject to various environmental laws and regulations in China and the United States, which may significantly impact its financial condition and operational performance[142]. - The company has not faced any environmental claims, lawsuits, or penalties during the year, demonstrating its commitment to environmental protection compliance[142]. Strategic Initiatives and Future Plans - The company is exploring additional investment opportunities to further diversify its business, with announcements to be made upon the realization of any such opportunities[78]. - The company commenced its solar power generation business by acquiring 89% of Beijing Jiezhong in January 2020, focusing on a 5 MW rooftop distributed solar power project in Chengde, Hebei Province, China[78]. - The company is actively developing and implementing tire low-temperature pyrolysis and modified asphalt projects in various regions of China, indicating ongoing diversification efforts[78]. - The group is closely monitoring the commodity market environment and is preparing strategies to expand production if necessary[77]. Shareholder Engagement - The company encourages shareholder participation in annual general meetings and maintains communication with shareholders[125]. - The company has no predetermined dividend payout ratio, and dividend declarations are at the discretion of the board based on various factors[130].

Financial Performance - The company reported revenue of HKD 15,073,000 for the six months ended June 30, 2019, representing a 50.8% increase from HKD 10,032,000 in the same period of 2018[17]. - The cost of sales increased to HKD 9,537,000, up from HKD 3,824,000, leading to a gross profit of HKD 5,536,000 compared to HKD 6,208,000 in 2018[17]. - Other income and gains decreased significantly to HKD 2,933,000 from HKD 15,826,000 year-on-year[17]. - The company recorded a loss before tax of HKD 9,513,000, an improvement from a loss of HKD 45,992,000 in the previous year[17]. - The net loss for the period was HKD 9,793,000, compared to a net loss of HKD 46,259,000 in the same period of 2018[17]. - The company reported a foreign exchange gain of HKD 1,101,000, contrasting with a loss of HKD 3,167,000 in the previous year[17]. - The company reported a total revenue of HKD 386,142 million for the six months ended June 30, 2019, compared to HKD 380,604 million for the same period in 2018, representing a growth of approximately 1.4%[73]. - The adjusted loss before tax for the reporting segments was HKD 9,513 million for the first half of 2019, compared to a loss of HKD 45,992 million in the same period of 2018, indicating a significant improvement[70]. - For the six months ended June 30, 2019, the company reported an unaudited profit attributable to shareholders of HKD 4,730,000, compared to a loss of HKD 31,684,000 for the same period in 2018[95]. Expenses and Costs - Administrative expenses were reduced to HKD 23,917,000 from HKD 33,916,000, indicating a cost-cutting strategy[17]. - Selling and administrative expenses were approximately HKD 24,000,000, down from HKD 33,900,000 in the same period last year, attributed to cost-saving measures[138]. - The group’s financing costs totaled HKD 25,613 million for the six months ended June 30, 2019, down from HKD 27,731 million in the same period of 2018, indicating a reduction of 7.6%[89]. - The total remuneration paid to key management personnel for the six months ended June 30, 2019, was HKD 4,680,000, a slight decrease from HKD 4,865,000 in the same period of 2018, reflecting a reduction of about 3.8%[112][114]. Assets and Liabilities - As of June 30, 2019, total assets minus current liabilities amounted to HKD 485,965,000, a decrease from HKD 494,958,000 as of December 31, 2018[25]. - Non-current assets totaled HKD 341,243,000, slightly down from HKD 341,545,000 year-over-year[22]. - Current liabilities rose to HKD 275,263,000, compared to HKD 259,692,000, indicating an increase of about 6%[22]. - The net asset value decreased to HKD 482,898,000 from HKD 491,986,000, representing a decline of approximately 1.8%[25]. - The company reported a total equity of HKD 482,898,000, down from HKD 491,986,000, reflecting a decrease of about 1.8%[25]. - The total liabilities increased to HKD 3,067,000 from HKD 2,972,000, indicating a rise of approximately 3.2%[25]. - The company’s total liabilities increased to HKD 278,330 million as of June 30, 2019, compared to HKD 262,664 million as of December 31, 2018, indicating a rise in financial obligations[73]. - The company’s segment liabilities amounted to HKD 254,864 million as of June 30, 2019, up from HKD 230,339 million as of December 31, 2018, indicating increased financial commitments[73]. Cash Flow - Operating cash flow for the six months ended June 30, 2019, was HKD 31,028 thousand, a significant improvement from a cash outflow of HKD 97,140 thousand in the same period of 2018[34]. - Net cash flow from operating activities amounted to HKD 29,571 thousand, compared to a net cash outflow of HKD 98,325 thousand in the previous year[34]. - Cash and cash equivalents increased to HKD 219,881,000 from HKD 188,435,000, reflecting a growth of approximately 16.7%[22]. - The total cash and cash equivalents at the end of the period stood at HKD 219,881 thousand, compared to HKD 264,233 thousand at the end of the previous year[34]. - The company reported a cash outflow of HKD 569 thousand for the acquisition of a business, down from HKD 5,758 thousand in the same period last year[34]. Mining and Exploration - The confirmed reserves as of June 30, 2019, were 11,512.39 million cubic feet of natural gas and 287.48 thousand barrels of oil[15]. - The company is in the process of renewing exploration licenses for its mining operations[11]. - The company is engaged in silver mining and sales in mainland China, and oil and gas exploration and production in the United States[36]. - The company has completed drilling two operational wells in East Texas, which began production in July 2014 and March 2015, respectively, with each well having a production life of over ten years[118]. - The company has signed over 400 lease agreements for approximately 1,845 acres in East Texas for oil and gas exploration and production[118]. - The inferred ore reserves at the West Mine are estimated at 690,000 tons, while the East Mine has inferred reserves of approximately 6,070,000 tons[122]. - The overall annual production capacity of the West Mine is 100,000 tons, or 300 tons per day, with safety production permits renewed during the reporting period[123]. - The Eastern Mine is designed for an annual production capacity of 330,000 tons, with an expected lifespan of 19 years[125]. - The company has submitted an application for the renewal of exploration permits for the Eastern Mine, which is currently in progress[125]. - The first phase of comprehensive exploration work at the Eastern Mine has been completed, and the company is preparing to apply for a mining permit, which typically takes 12 to 18 months to obtain[125]. - Infrastructure construction at the Eastern Mine is expected to commence in the second half of 2020, with mining production anticipated to start in 2023[125]. Corporate Governance and Compliance - The company has adhered to the corporate governance code, with a deviation noted in the appointment of non-executive directors not being for a specified term[167]. - All directors confirmed compliance with the standard code for securities trading during the period[168]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial statements[169]. Future Outlook - The company remains cautiously optimistic about the commodity and oil and gas markets for the second half of the year, while closely monitoring market conditions[159].

Operations and Production - The group has completed drilling the first and second operational wells in East Texas, which began production in July 2014 and March 2015 respectively[24]. - The group has signed over 400 lease agreements, granting rights to explore and produce oil and gas over approximately 1,845 acres in East Texas[25]. - The group operates silver mining in China, with a designed capacity of 198,000 tons per year for the Fuan silver mine and 660,000 tons per year for the Zherong silver mine[12][13]. - The group’s operational wells typically have a production period exceeding ten years[25]. - The group is in the process of updating exploration permits for its mining operations[17]. - The group’s actual production in 2018 was recorded at 186.17 thousand barrels of oil and 7.93 thousand barrels of natural gas[22]. - The operational well has a coverage area of approximately 1,628.1 acres, with lease agreements expiring between 2015 and 2019, while about 329.6 acres belong to leases expiring after 2018[26]. - The estimated cost to drill an additional well and construct related infrastructure is approximately $4.5 million to $5 million, equivalent to about HKD 35.1 million to HKD 39 million[26]. - The company has initiated preliminary preparations for resuming production at the Western Mine, including equipment maintenance and safety assessments[30]. - The company has no current plans to renew certain lease agreements due to low oil and gas prices, making it more economically viable to let them expire[26]. Financial Performance - The group recorded total revenue of approximately HKD 23,600,000 for the year, representing a 26% increase from HKD 18,800,000 in the previous year, primarily due to the commencement of liquefied natural gas trading by Shaanxi Wanxi Logistics[40]. - Revenue from asset financing services amounted to approximately HKD 12,800,000, an increase from HKD 12,300,000 in the previous year, while liquefied natural gas trading generated revenue of approximately HKD 3,600,000[42]. - The sales cost for oil and gas exploration and production was approximately HKD 4,000,000, down from HKD 5,300,000 in the previous year, while the sales cost for liquefied natural gas trading was approximately HKD 3,900,000[42]. - Other income and gains for the year were approximately HKD 17,400,000, a decrease from HKD 40,200,000 in the previous year, primarily due to the absence of foreign exchange gains from intercompany transactions[43]. - Administrative expenses for the year were approximately HKD 59,200,000, slightly down from HKD 60,100,000 in the previous year, with no significant fluctuations noted[44]. - The group recorded a profit margin of 23% for oil and gas exploration and production, up from 19% in the previous year, while the liquefied natural gas trading recorded a gross loss margin of 8%[42]. - Other expenses for the year amounted to approximately HKD 143,800,000, significantly higher than HKD 46,300,000 in the previous year, mainly due to impairment losses on property, plant, and equipment[45]. - The company's attributable loss for the year was approximately HKD 143,300,000, up from HKD 60,200,000 in 2017, primarily due to increased impairment losses[54]. Asset Management and Impairment - The impairment loss for silver mining assets totaled HKD 81,800,000, an increase from HKD 34,700,000 in 2017, with HKD 73,600,000 allocated to intangible assets[48]. - The impairment loss for oil and gas assets was HKD 4,400,000, down from HKD 6,200,000 in 2017, with HKD 4,000,000 allocated to property, plant, and equipment[48]. - The expected discount rates used for assessing the fair value of mining assets ranged from 10% to 14%, reflecting the current market conditions and specific business risks[47]. - The impairment assessment for silver and oil and gas assets involves subjective estimates related to future cash flows and management assumptions[191]. Corporate Governance - The board of directors is responsible for overseeing the group's business, strategic direction, financial performance, and management performance[96]. - The company has adopted the standard code for securities trading by directors, confirming compliance throughout the year[95]. - The audit committee held two meetings during the year to review accounting principles, internal controls, and compliance with governance policies[108]. - The remuneration committee reviewed the existing remuneration policies and structures during the year[111]. - The company maintains a high level of corporate governance, adhering to the corporate governance code as per the listing rules[94]. - All independent non-executive directors confirmed their independence in accordance with the listing rules[97]. - The chairman and CEO roles are separated, with the current chairman being Ms. Zhang and the CEO Mr. Zong[105]. - The company has established a clear framework for the appointment and re-election of non-executive directors[106]. - The audit committee serves as a bridge between the board and the external auditor, ensuring the auditor's independence and objectivity[107]. - The company has implemented policies to ensure all business transactions comply with relevant laws and regulations[97]. Risk Management - The Board believes that the internal control and risk management systems are effective and adequate as of December 31, 2018[126]. - The company has engaged a consultant for annual reviews of its risk management and internal control systems, with findings reported to the Audit Committee and management[124]. - The company has established policies to assess the impact of unforeseen significant events on stock prices and trading volumes[124]. - The company acknowledges various risks, including commodity price fluctuations and regulatory changes in China, which may significantly impact its operations and financial performance[143]. Future Outlook and Strategic Initiatives - The company maintains a cautious but optimistic outlook on the commodity and oil and gas markets, expecting mining operations to resume by Q2 2019[78]. - The company is exploring various investment opportunities, including projects in Inner Mongolia, Japan, and North America, to diversify its business and broaden revenue sources[78]. - The company plans to enhance its logistics capabilities, investing $H million in infrastructure improvements[91]. - A new strategic partnership has been established, expected to generate an additional $I million in revenue over the next two years[91]. - The company is committed to sustainability initiatives, with a budget of $J million dedicated to environmentally friendly practices[91]. Shareholder Communication and Dividends - The company emphasizes the importance of regular communication with shareholders to ensure they understand its business operations[137]. - The company encourages shareholders to participate in annual general meetings and has established a communication channel for inquiries[129]. - The company has no predetermined dividend payout ratio, and dividend declarations are at the discretion of the board based on various financial considerations[134]. - The company reported a total loss for the year ended December 31, 2018, with no dividends recommended for the same period[151]. Acquisitions and Investments - The company has allocated approximately HKD 101,800,000 and HKD 36,200,000 for potential acquisitions in China and Japan, respectively[57]. - The company proposed to acquire 100% of the issued share capital of Nanlang Investment Limited for a cash consideration of RMB 70,000,000 and up to RMB 30,000,000 for operational and/or capital expenditures[67]. - The company entered into a non-binding memorandum to acquire 98,000 shares of Kumi Umi Energy Co. Ltd. for a cash consideration of JPY 980,000,000 (approximately HKD 70,000,000)[68]. - The company completed the acquisition of 51% equity interest in Shanxi Wanxi for a cash consideration of RMB 3,000,000 (approximately HKD 3,400,000)[69]. - The registered capital of Hainan Deep Ocean Development Co., Ltd. is RMB 200,000,000 (approximately HKD 228,000,000), with the company contributing RMB 39,000,000 (approximately HKD 44,400,000) for a 19.5% stake[71]. - The company invested RMB 1,500,000 (approximately HKD 1,700,000) in a capital commitment related to the acquisition of a 30% equity interest in a former subsidiary[74]. Financial Position and Assets - The total assets of the group as of December 31, 2018, amounted to HKD 151,000,000 for silver mining assets and HKD 19,000,000 for oil and gas assets[189]. - The group has been experiencing losses for an extended period, indicating potential impairment of silver and oil and gas assets[191]. - The independent auditor, Ernst & Young, has confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2018[183]. - The group’s total equity as of the reporting date is at least 25% held by the public[180]. - There are no significant events after the reporting period that could impact the financial statements[179]. - The company will present a resolution for the reappointment of Ernst & Young as auditors at the upcoming annual general meeting[181]. - The company has complied with the Hong Kong Financial Reporting Standards in preparing its financial statements[183]. - The independent auditor's report highlights key audit matters, including the assessment of impairment for mining and oil and gas assets[189]. Receivables and Credit Losses - As of December 31, 2018, the total book value of receivables, net of any impairment losses, was HKD 194,000,000, which accounted for 38% of the group's total assets[194]. - The group assessed the recoverability of lease, factoring, and trade receivables, including the evaluation of expected credit loss provisions[194]. - The mortgage receivable was valued at HKD 97,000,000, and the loan receivable was valued at HKD 68,000,000[194]. - The assessment of expected credit losses involved management's significant judgments and estimates regarding the recoverability of receivables[195].