Production Capacity and Operations - The company shut down two coking furnaces with an annual production capacity of 600,000 tons of coke due to national environmental policy requirements, resulting in no coke production during the reporting period[13]. - The company has engaged Shanxi Jinyan Energy Technology Company Limited to construct a new coking furnace with a capacity of 600,000 tons, leading to an overall annual production capacity of 1,200,000 tons after the completion of new assets[20]. - The new coking furnace assets will enhance the company's competitive advantages in output, quality, and pricing, significantly improving overall productivity and operating performance[21]. - The company has increased its annual coke production capacity to 1,200,000 tons, more than doubling the original production scale[21]. - The Group's new coking furnace assets have a designed annual capacity of at least 1,200,000 tons of coke, 65,000 tons of coal tar, 15,000 tons of crude benzene, and 15,000 tons of ammonium sulfate[117]. - The company aims for full operation of new coking furnace assets with an annual capacity of at least 1,200,000 tons of coke, 65,000 tons of coal tar, 15,000 tons of crude benzene, and 15,000 tons of ammonium sulfate[162]. Financial Performance - The Group's total revenue for the fifteen months ended March 31, 2023, was approximately HK$34,726,000, a significant decrease from approximately HK$866,602,000 in the previous reporting period[26]. - The gross loss for this reporting period amounted to approximately HK$90,912,000, resulting in a gross loss margin of approximately 261.8%, compared to a gross profit margin of approximately 13.00% in the previous reporting period[26]. - Profit after tax for this reporting period was approximately HK$1,248,861,000, a turnaround from a loss after tax of approximately HK$31,182,000 in the previous reporting period[26]. - The Group's profit before tax for this reporting period was approximately HK$1,636,678,000, a significant improvement from a loss before tax of approximately HK$21,513,000 in the previous reporting period[42]. - The Group reported a profit before tax of approximately HK$1,636,678,000 for the reporting period, compared to a loss of approximately HK$21,513,000 in the previous period, primarily due to significant transactions and asset disposals[45]. Share Trading and Corporate Actions - Trading of the company's shares resumed on April 14, 2023, after satisfying all resumption guidance from the Stock Exchange[22]. - The company completed the VST and VSD processes on January 18, 2023, and March 30, 2023, respectively, marking a significant step in resuming operations[21]. - The company entered into a Disposal Agreement on July 26, 2022, to dispose of entities involved in the Incident, streamlining its operations[20]. - The Group completed a very substantial transaction involving the transfer of 90% equity interests in Energy Jiarun, which holds target assets with an expected annual production capacity of 1,200,000 tons of coke, to Shanxi Huscoke International Energy Co., Ltd[48]. - The Group disposed of Joy Wisdom International Limited and its subsidiaries for a cash consideration of HK$1, with the loan owed by the Disposal Company amounting to HK$643,185,000 as of June 30, 2022[51]. Liquidity and Financial Position - As of 31 March 2023, the Group's equity attributable to owners amounted to approximately HK$1,011,367,000, a significant recovery from a deficit of approximately HK$144,233,000 as of 31 December 2021[66]. - The net assets per share as of 31 March 2023 was HK$4.14, compared to net liabilities per share of HK$0.55 as of 31 December 2021[70]. - The Group's gearing ratio improved to 42% as of 31 March 2023, down from 107% as of 31 December 2021[65]. - As of 31 March 2023, the Group's net current liabilities were approximately HK$226,939,000, significantly reduced from approximately HK$1,699,654,000 as of 31 December 2021[67]. - The current ratio improved to 0.36 as of 31 March 2023, compared to 0.28 as of 31 December 2021[67]. Management and Governance - The board of directors includes Mr. Zhao Xu Guang as Chairman and CEO, and Mr. Wang Yijun as an Executive Director[197]. - The board of directors will retire by rotation at the forthcoming AGM, with eligible members offering themselves for re-election[197]. - The Audit Committee supports Management's action plans to address the disclaimer of opinion and the Group's ability to continue as a going concern[80]. - Management has made provisions for bad debts based on the degree of default of the receivables[79]. Market Conditions and Future Outlook - The Chinese government is expected to introduce various growth stabilizing measures in 2023, which may support economic recovery[112]. - Domestic coke inventory is currently low, and market demand is expected to rebound, indicating a potential recovery in the coke market[112]. - The past few years' supply-side reforms have effectively controlled the supply of the coke market, improving coke price stability[112]. - Significant increases in domestic production and import of coking coal are expected to enhance the bargaining power of coke enterprises, maintaining stable profitability[112]. - The Group expects stable income and profit generation from its coke production business in the future[117]. Environmental and Safety Considerations - The management prioritizes environmental protection and may invest in upgrading equipment to meet domestic environmental standards[156]. - The Group's operations involve handling hazardous materials, which poses safety risks including potential fires and explosions[157]. - Stringent safety management policies and training programs are being implemented to enhance safety awareness among employees[158]. - The group is committed to improving production equipment and auxiliary facilities to meet higher environmental standards in response to government policies[163]. Employee Relations and Corporate Social Responsibility - The company is focused on enhancing employee satisfaction through competitive remuneration and career development opportunities[171]. - The group maintains harmonious relationships with stakeholders, including customers, suppliers, and employees[168]. Dividend Policy and Shareholder Returns - The company does not recommend the payment of a final dividend for the fifteen months ended March 31, 2023, consistent with the previous year[191]. - The company has not declared any dividends since 2021, indicating a focus on retaining earnings for growth[194]. - The company’s dividend policy aims to maintain an equitable balance between returns to shareholders and sustaining growth investments[192].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不會就本公告全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HUSCOKE HOLDINGS LIMITED 和嘉控股有限公司 （於百慕達註冊成立之有限公司） （股份代號：704） 業績公告 截至二零二三年三月三十一日止十五個月 業績摘要 • 截至二零二三年三月三十一日止十五個月的溢利為1,248,861千港元。 • 本公司擁有人應佔溢利為1,250,165千港元。 • 每股基本盈利為4.35港元。 • 於二零二三年三月三十一日，資產淨額達1,188,982千港元。 • 每股淨資產為4.14港元。 ...

Financial Performance - Total revenue for the year ended December 31, 2021, was HKD 866,602,000, a decrease of 26.4% from HKD 1,176,982,000 in 2020[3]. - Gross profit for the year was HKD 112,734,000, down 11.2% from HKD 126,890,000 in the previous year[3]. - The company reported a loss before tax of HKD 21,513,000, significantly improved from a loss of HKD 527,533,000 in 2020[3]. - Net loss for the year was HKD 31,182,000, compared to a net loss of HKD 532,532,000 in the prior year, indicating a reduction in losses[3]. - Basic and diluted loss per share was HKD 0.109, an improvement from HKD 1.688 in 2020[5]. - The group reported a loss attributable to shareholders of HKD 31,259,000 for the year ended December 31, 2021, compared to a loss of HKD 484,675,000 for the previous year[13]. - The group recorded a net cash outflow from operating activities of approximately HKD 8,753,000 as of December 31, 2021[13]. - The company reported a total comprehensive loss of HKD 33,191,000 for the year, compared to HKD 537,999,000 in 2020, reflecting a substantial reduction in overall losses[5]. Assets and Liabilities - Total assets as of December 31, 2021, amounted to HKD 1,560,835,000, an increase from HKD 1,504,567,000 in 2020[7]. - Current liabilities totaled HKD 2,360,223,000, up from HKD 2,076,901,000 in the previous year[7]. - Non-current liabilities decreased significantly to HKD 19,273,000 from HKD 112,344,000 in 2020[8]. - The company’s total liabilities as of December 31, 2021, were HKD 2,379,496,000, compared to HKD 2,189,245,000 in 2020, reflecting an increase of approximately 8.7%[21][23]. - Current liabilities and total liabilities as of December 31, 2021, were HKD 1,699,654,000 and HKD 158,092,000, respectively[13]. - As of December 31, 2021, the company's asset-liability ratio was 107%, compared to 106% on December 31, 2020[77]. Cash Flow and Financial Position - The company’s cash and bank balances decreased to HKD 7,903,000 from HKD 21,119,000 in 2020[7]. - The company incurred financial expenses of HKD 113,936,000 in 2021, up from HKD 73,351,000 in 2020, representing an increase of approximately 55.5%[31]. - The net cash outflow from operations for the year ended December 31, 2021, was approximately HKD 8,753,000[108]. - The company had no significant investments or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2021[73]. Business Segments - The group operates in three business segments: coke trading, coal-related ancillary business, and coke production[20]. - Revenue from the coking trade segment was zero, down from HKD 3,042,000 in the previous year, due to the cessation of coking trade operations[64]. - Revenue from coal-related subsidiaries was approximately HKD 81,517,000, an increase from HKD 65,600,000 in the previous year, reflecting an improvement in performance[65]. - Revenue from the coking production segment was approximately HKD 785,085,000, down from HKD 1,108,340,000 in the previous year, primarily due to reduced production capacity[66]. Employee and Operational Costs - The total employee benefits expenses decreased to HKD 53,882,000 in 2021 from HKD 64,152,000 in 2020, reflecting a reduction of about 16%[36]. - The group’s selling and distribution costs were approximately HKD 1,417,000, a significant decrease from HKD 10,953,000 in the previous year, mainly due to changes in transportation models[68]. - Management expenses for the year were approximately HKD 99,920,000, slightly higher than HKD 93,595,000 in the previous year, with differences attributed to exchange rates[69]. Governance and Compliance - The company is committed to complying with corporate governance codes and has acknowledged deviations in its governance structure, which it plans to review[96]. - The independent auditor's report indicated a significant uncertainty regarding the company's ability to continue as a going concern due to substantial losses and cash flow issues[107]. - The audit committee consists of three independent non-executive directors and one non-executive director, overseeing the financial performance for the year ended December 31, 2021[105]. Future Plans and Investments - The company intends to acquire and subscribe to the equity of Energy Technology, aiming to hold over 50% of the expanded share capital[45]. - A new coke oven with an annual capacity of at least 600,000 tons is to be constructed with a total investment of approximately RMB 600,000,000[48]. - The company plans to submit a resumption proposal to the stock exchange within 2022, aiming to restore trading of its shares[93]. - The company is considering the sale of certain assets and the issuance of convertible bonds to strengthen its financial position and reduce debt levels[93]. Shareholder Information - The board of directors does not recommend the payment of a final dividend for the year ended December 31, 2021, compared to no dividend in 2020[116]. - The company’s shares have been suspended from trading since March 29, 2021, and will continue to be suspended until further notice[126]. - Shareholders and potential investors are advised to exercise caution when trading the company's securities[127].

Financial Performance - In 2019, the total revenue of the Group was approximately HK$1,605,356,000, an increase from HK$1,478,049,000 in 2018[29]. - The gross profit for 2019 was HK$175,857,000, resulting in a gross profit margin of approximately 11.0%, down from 16.6% in 2018[29]. - Profit after tax for the year was approximately HK$14,703,000, significantly lower than HK$146,708,000 in 2018[29]. - Basic earnings per share for the year were 0.35 Hong Kong cents, down from 4.95 Hong Kong cents in 2018[29]. - The Group's revenue from coke production for the year was approximately HK$1,434,311,000, an increase of 6.2% compared to approximately HK$1,351,046,000 in the previous year, primarily due to increased sales volume of coke[37]. - The segment results from coke production decreased to approximately HK$97,849,000 from approximately HK$504,755,000, a decline of 80.7%, attributed to lower coke prices and rising coal prices[37]. - Profit before tax dropped to approximately HK$26,250,000 from approximately HK$176,659,000, a decline of 85.2%, mainly due to the absence of impairment reversal this year[41]. - The Group's profit for the year was approximately HK$14,703,000, down from approximately HK$146,708,000, a decrease of 90.0%, due to the full utilization of tax losses from the previous year[47]. Market Conditions and Future Outlook - In 2019, the domestic coke market was generally weak, with coke prices dropping from high levels at the beginning of the year, leading to a substantial depression of the Group's gross margin[9]. - The Group expects the coke market environment to improve in 2020 due to government policies and economic stimulus measures, which are anticipated to stimulate coke demand[15]. - The Group anticipates that the PRC government will launch further economic incentive measures to stimulate production demand in the steel industry, positively impacting the coke industry[84]. - The execution of environmental output-limitation and capacity elimination is expected to intensify, with a goal to eradicate production capacity of up to 50 million tons in 2020[84]. - The Group anticipates limited impact on overall production and operations due to the COVID-19 pandemic, with expectations of further economic stimulus measures from the Chinese government to boost steel industry demand[87]. Strategic Initiatives - The Group entered into Shareholders Agreements to establish Shanxi Golden Rock Rich Hydrogen Energy Co., Ltd., which will engage in producing LNG, synthetic ammonia, urea, and related products, diversifying revenue sources[10]. - A Framework Agreement was signed with Shanxi Jinyan Energy Technology Company Limited to acquire a coke production project with a capacity of over 5 million tons per year, enhancing production scale and technology[10]. - The Group plans to actively facilitate the acquisition and merger of the coke production project in Xiaoyi, Shanxi, to integrate coke production business and propel industry transformation[16]. - The Group plans to invest in a hydrogen energy coke oven gas project, which is expected to produce 250,000 tons of liquefied natural gas, 800,000 tons of synthetic ammonia, and 1.4 million tons of urea annually[18]. - The Group aims to acquire a 5 million ton per year coke production project in Shanxi Province to enhance its production capabilities and drive industry transformation[18]. - The Group intends to expand its international trading business for coke products to increase cash flow and improve overall profitability[90]. - A joint venture, Rich Hydrogen Energy, has been established in Shanxi Province to develop liquefied natural gas, synthetic ammonia, and hydrogen energy projects, which is expected to enhance future profitability[90]. Cost Management and Efficiency - Selling and distribution costs decreased to approximately HK$123,024,000 from approximately HK$137,637,000, a reduction of 10.6%, mainly due to lower transportation costs[38]. - Administrative expenses were approximately HK$88,018,000, down from approximately HK$103,301,000, a decrease of 14.8%, due to salary control and reduced maintenance costs[39]. - The Group aims to implement stringent cost controls and reduce expenses to enhance profitability in the upcoming year[84]. Human Resources and Management - The Group's staff costs for the year ended December 31, 2019, amounted to approximately HK$54,905,000, down from approximately HK$95,317,000 in the previous year, reflecting a significant reduction in employee expenses[76]. - The Group had approximately 530 employees as of December 31, 2019, a decrease from approximately 1,400 employees in 2018[76]. - The Group's human resource management focuses on competitive remuneration and career development opportunities for employees[153]. Environmental and Regulatory Compliance - The Group is committed to complying with national environmental standards and upgrading production equipment to reduce emissions and resource consumption[91]. - The Group's operations in Shanxi Province complied with environmental regulations, providing 31% of local heating demand and reducing air emissions from crude coal burning[160]. - The Group is committed to environmental protection and may invest in upgrading equipment to meet domestic environmental standards[134]. - Environmental regulations in China are becoming stricter, impacting production capacity and operational costs for the Group[133]. - The Group has complied with all applicable laws and regulations in the PRC and Hong Kong during the reporting period[161]. Risk Management - The Group's interest rate risk is managed by maintaining borrowings at a fixed interest rate to minimize fair value interest rate risk[72]. - The Group's monetary assets and liabilities are primarily denominated in RMB, USD, and HK$, exposing it to foreign currency risk[73]. - The Group's risk management framework includes a three-tier approach to identify, assess, and manage risks effectively[68]. - The management is closely monitoring the economic environment and will adjust production plans and enhance cost monitoring in response to market risks[126]. - The Group faces risks associated with fluctuating prices of coke and coal, which may adversely affect its business and financial condition[130]. Corporate Governance - The Board does not recommend the payment of a final dividend for the year ended December 31, 2019, consistent with the previous year[170]. - The Company has maintained compliance with all applicable laws and regulations in China and Hong Kong as of December 31, 2019[164]. - All independent non-executive Directors confirmed their independence for the year ended 31 December 2019[187]. - The Company maintained permitted indemnity provisions in its Directors' and officers' liability insurance during the year ended 31 December 2019[188].

Financial Performance - The Group recorded total revenue of approximately HK$1,478,049,000 for FY2018, representing a growth of approximately 11.1% compared to HK$1,330,791,000 for FY2017[14] - Operating profit before interest and tax was approximately HK$178,132,000 in FY2018, reflecting a growth of approximately 32.3% from HK$134,674,000 in FY2017[14] - Profit attributable to owners of the Company amounted to approximately HK$128,391,000 in FY2018, an increase of approximately 8.9% from HK$117,898,000 in FY2017[14] - Basic earnings per share was 4.92 Hong Kong cents in FY2018, compared to 4.54 Hong Kong cents in FY2017[14] - The gross profit margin for the year was approximately 16.6%, up from approximately 16.0% in 2017[32] - Profit for the year amounted to HK$145,981,000, compared to HK$131,913,000 in 2017, while profit attributable to owners of the Company was HK$128,391,000, up from HK$117,898,000[32] Market Conditions - The PRC's GDP exceeded RMB90 trillion in 2018, with a year-on-year increase of 6.6%[9] - The coke production capacity demonstrated an overall downward trend due to environmental protection policies, leading to a rise in coke prices[9] - The overall coke supply situation remained tight, driving coke prices upwards due to low capacity utilization in the industry[26] - The gradual release of new capacity in the coke industry may lead to a phased mismatch of supply, while downstream steel industry demand is expected to support coke prices[83] - For 2019, the demand for coke in the steel industry is expected to remain stable, with the Group planning to adjust its business strategy to navigate market challenges and opportunities[141] Strategic Initiatives - The Group aims to upgrade existing equipment and facilities to achieve cleaner emissions in response to stricter environmental standards[16] - The Group plans to gradually acquire interests and control of Energy Technology to expand its business scale and enhance production technology[20] - The management is actively exploring investment opportunities to expand production scale, upgrade technology, and enhance environmental standards to ensure sustainable growth[90] - The management will seek new business development opportunities to enhance profitability and ensure long-term returns for shareholders[144] Environmental and Regulatory Challenges - The Group anticipates that environmental protection policies will continue to impact the coke industry, leading to low capacity utilization and potential mismatches in coke supply[83] - The Group is facing increased regulatory challenges due to stricter environmental policies from the Chinese government, which may affect production operations[89] - The Chinese government's environmental policies are tightening, which may affect production capacity and operational costs, necessitating potential investments in equipment upgrades to meet standards[134] - The Group plans to upgrade production facilities to meet environmental standards and reduce emissions, aligning with government policies aimed at combating air pollution[145] Financial Position and Management - Administrative expenses increased by 23.3% from approximately HK$83,804,000 in 2017 to approximately HK$103,301,000 in 2018, mainly due to higher professional fees and staff costs[42] - Finance costs decreased from approximately HK$8,015,000 in 2017 to approximately HK$2,200,000 in 2018, attributed to the restructuring of convertible bonds issued in November 2016[47] - The gearing ratio as of 31 December 2018 was 64%, up from 62% in 2017[57] - The Group's cash and bank balances decreased to HK$18,894,000 in 2018 from HK$69,655,000 in 2017[59] - The Group's current ratio as of December 31, 2018, was 0.92, slightly down from 0.96 in 2017[63] Human Resources and Governance - As of December 31, 2018, the Group had approximately 1,400 employees, a decrease from approximately 1,500 employees in 2017, with staff costs amounting to approximately HK$95,317,000, up from HK$73,999,000 in 2017[81] - The Group's human resource management aims to reward and recognize employees through competitive remuneration and career development opportunities[151] - The company has a strong board with members holding advanced degrees in finance, management, and law, enhancing its governance and strategic direction[114] - The company’s board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[173] Investment and Acquisitions - The joint venture subsidiary, GRG Huscoke, is involved in a coke project with an annual capacity of 5 million tons in Shanxi Province[20] - The company has not yet settled the outstanding consideration of RMB40 million related to the acquisition of EDB Holding, pending the receipt of audited financial statements[96] - The company has urged EDB Holding to complete its audit works, with expectations that the audited financial statements will be completed around May 2019[100] Shareholder Returns - The Board does not recommend the payment of a final dividend for the year ended December 31, 2018, maintaining a focus on sustainable returns to shareholders[166][167] - The company aims to provide stable and sustainable returns to shareholders through a consistent dividend policy, balancing shareholder returns with investment in sustainable development[171]