Group 1 - The Hang Seng Index rose by 2.98% to close at 23,549.46 points on May 12 [1] - China Environmental Energy (00986.HK) closed at HKD 0.079 per share, up 27.42%, with a trading volume of 18.81 million shares and a turnover of HKD 1.5532 million, showing a volatility of 46.77% [1] - Over the past month, China Environmental Energy has seen a cumulative decline of 11.43%, while year-to-date it has increased by 5.08%, underperforming the Hang Seng Index by 14% [1] Group 2 - As of September 30, 2024, China Environmental Energy reported total revenue of HKD 24.6748 million, a year-on-year decrease of 15.38%, and a net profit attributable to shareholders of HKD 9.8827 million, a year-on-year increase of 2096.19% [1] - The gross profit margin for China Environmental Energy stands at 60.64%, with a debt-to-asset ratio of 15.78% [1] - Currently, there are no institutional investment ratings for China Environmental Energy [2] Group 3 - The textile and apparel industry has an average price-to-earnings (P/E) ratio (TTM) of -6.67 times, with a median of -0.29 times [2] - China Environmental Energy has a P/E ratio of -9.97 times, ranking 82nd in the industry [2] - Other companies in the industry include FAST RETAIL-DRS (06288.HK) with a P/E of 0.36 times, Zhejiang Yong'an (08211.HK) at 1.34 times, and others with higher P/E ratios [2]

每经记者｜温梦华 每经编辑｜彭水萍 丨2025年5月12日 星期一丨 据媒体报道，5月10日，第七届印象·衡水老白干酒文化节暨荣膺1915巴拿马万国博览会甲等金奖110周 年庆典举行，河北衡水老白干酿酒（集团）党委书记王占刚出席活动并致辞。上述消息显示，王占刚已 任河北衡水老白干酿酒（集团）党委书记。另据公司官微，王占刚此前任河北衡水老白干酿酒（集团） 有限公司总经理、河北衡水老白干酒业股份有限公司党委书记。 点评：王占刚担任集团党委书记，进一步强化了公司领导层的稳定性。此举有助于公司更好地发挥党建 引领作用，凝聚团队力量，推动企业高质量发展。同时，这也有利于提升品牌影响力，增强消费者对品 牌的认同感，为公司在竞争激烈的白酒市场中赢得更多份额奠定基础。 NO.3 港股中国环保能源更名为"杜甫酒业集团" 5月9日，香港上市公司中国环保能源（00986.HK）宣布，公司名称已由"中国环保能源投资有限公 司"更改为"杜甫酒业集团有限公司"，其中文第二名称亦由"中国环保能源投资有限公司"更改为"杜甫酒 业集团有限公司"。同时，2025年5月13日起，其普通股的证券简称也将更改为"杜甫酒业集团"，公司于 联交所的现有股 ...

Core Viewpoint - The announcement by China Environmental Energy regarding its sales agency agreement with Sichuan Dufu Liquor Group is seen as a strategic move to diversify revenue sources and enhance profitability by entering the liquor industry, marking a significant shift from its core jewelry business [1][2][3]. Group 1: Company Strategy - China Environmental Energy aims to diversify its revenue streams by transitioning from jewelry to the liquor industry, specifically through a sales agency agreement with Dufu Liquor [1][2]. - The company plans to change its name to "Dufu Liquor Group Limited" to better reflect its new business direction [1][3]. - The board believes that the liquor industry presents more frequent consumption opportunities compared to the jewelry sector, which has been affected by economic uncertainties [3]. Group 2: Financial Performance - China Environmental Energy has struggled financially, with revenues around 0.66 million HKD and a loss of approximately 0.19 million HKD for the fiscal year ending March 31, 2024 [2]. - The company has reported losses in 7 out of the last 10 fiscal years, indicating a need for strategic change [2]. Group 3: Market Opportunities - The sales agency agreement grants China Environmental Energy exclusive sales rights in 14 markets, including Japan and Southeast Asia, and non-exclusive rights in China, with projected sales of at least 1.5 billion RMB over three years [3]. - The collaboration is viewed as a critical step for Dufu Liquor in expanding its overseas business and enhancing its presence in the capital market [1][3]. Group 4: Industry Context - Dufu Liquor, established in 1983, is recognized for its cultural branding and has a production capacity of 5,000 tons of raw liquor and 10,000 tons of finished liquor annually [4]. - The company has previously engaged in capital market activities, including a knowledge property asset listing in Hong Kong, and aims to leverage its brand for further growth [5].

Revenue Performance - The company's revenue for the six months ended September 30, 2024, was approximately HKD 27,360,000, a decrease of about HKD 4,970,000 or 15.37% compared to HKD 32,330,000 in the same period of 2023[16] - Revenue from jewelry design and marketing was approximately HKD 11,320,000, down from HKD 18,530,000 in the previous year[16] - Revenue from lending business increased to approximately HKD 16,040,000 from HKD 13,800,000 in the previous year[16] - Revenue for the six months ended September 30, 2024, was HKD 27,362,000, a decrease of 15.4% compared to HKD 32,334,000 for the same period in 2023[98] - Revenue from jewelry sales for the six months ended September 30, 2024, was HKD 11,320 thousand, down 38.8% from HKD 18,530 thousand in the same period of 2023[122] - Interest income from lending for the same period increased to HKD 16,042 thousand, up 16.0% from HKD 13,804 thousand in 2023[122] Profitability - Gross profit for the period was approximately HKD 16,590,000, an increase of about HKD 1,790,000 or 12.09% compared to HKD 14,800,000 in the previous year[16] - The gross profit margin improved from approximately 45.77% to 60.64% due to higher demand in the lending business[16] - Profit before tax for the period was approximately HKD 11,310,000, an increase of about HKD 10,000,000 compared to HKD 1,310,000 in the previous year[18] - The company's net profit for the period was approximately HKD 10,960,000, compared to HKD 500,000 in the same period of 2023[18] - Total comprehensive income for the period was HKD 13,196,000, compared to a loss of HKD 9,725,000 in the previous year[104] - The net profit for the period was HKD 10,959,000, compared to HKD 499,000 in the same period of 2023, showing a substantial increase in profitability[128] Expenses and Financial Costs - Selling, distribution, and administrative expenses were approximately HKD 7,830,000, a slight decrease of about HKD 50,000 or 0.63% from HKD 7,880,000 in the previous year[18] - Financial costs increased to approximately HKD 1,120,000 from about HKD 770,000 in the previous year, an increase of approximately HKD 350,000[19] - The company reported a total financial cost of HKD (1,117) thousand for the period, compared to HKD (773) thousand in the previous year, indicating increased financial expenses[128] Assets and Liabilities - As of September 30, 2024, the total loan amount was approximately HKD 312,110,000, with an average interest rate of 10.49%[23] - The net current assets of the group as of September 30, 2024, were approximately HKD 158,890,000, compared to HKD 114,860,000 as of March 31, 2024, indicating an increase in liquidity[51] - The total interest-bearing borrowings amounted to approximately HKD 30,220,000 as of September 30, 2024, up from HKD 26,270,000 as of March 31, 2024, resulting in an increase in the debt level[51] - The debt-to-equity ratio as of September 30, 2024, was 8.75%, compared to 7.24% as of March 31, 2024, indicating a slight increase in financial leverage[51] - Total liabilities increased to HKD 49,518,000 from HKD 43,181,000 as of March 31, 2024[108] - The total liabilities reached HKD 64,696,000, including HKD 25,173,000 in convertible bonds and HKD 5,049,000 in loans and interest payable[137] Credit and Risk Management - The expected credit loss provision for receivables was approximately HKD 59,560,000, a decrease from HKD 63,100,000 as of March 31, 2024[32] - The default provision rate was 18.09%, down from 20.24% as of March 31, 2024[32] - The company has implemented a credit assessment and due diligence process to evaluate potential borrowers[26] - The company has established a loan monitoring mechanism to continuously assess the loan portfolio and identify potential issues[29] - The company will continue to strengthen risk management to navigate external risks and seize opportunities[22] Shareholder and Corporate Governance - The company has a total of 124,927,550 ordinary shares, representing 10% of the issued share capital available for the new share option plan as of the report date[71] - The new share option plan allows for the issuance of options that, if granted to eligible participants, could exceed 1% of the total issued shares within a twelve-month period, requiring shareholder approval[73] - The company did not declare an interim dividend for the six months ended September 30, 2024, consistent with the previous year[150] - The company has complied with the corporate governance code throughout the reporting period[88] Employee and Workforce - The employee count decreased to 23 as of September 30, 2024, from 25 as of March 31, 2024, reflecting a reduction in workforce[57] - The short-term employee benefits for key management personnel amounted to HKD 683,000 for the six months ended September 30, 2024, a decrease of 3.1% from HKD 705,000 in the same period of 2023[188] Cash Flow and Financing Activities - For the six months ended September 30, 2024, the net cash used in operating activities was HKD (3,869) thousand, compared to HKD 3,788 thousand in the same period of 2023, indicating a significant decline in operational cash flow[112] - The financing activities generated a net cash inflow of HKD 2,366 thousand, down 48.7% from HKD 4,589 thousand in the previous year[112] - Cash and cash equivalents at the end of the period decreased to HKD 334 thousand from HKD 9,729 thousand at the end of the previous period, reflecting a significant cash outflow[112] Inventory and Receivables - The inventory held for sale is valued at HKD 94,217,000, with a provision for inventory of approximately HKD 37,000 as of September 30, 2024[165] - Accounts receivable amount to HKD 9,962,000 after deducting expected credit loss provisions, with a credit period of 90 days for trade customers[167] - The total amount of other receivables and deposits is HKD 21,086,000, with trade deposits related to jewelry design and marketing business at approximately HKD 20,769,000[171]

Financial Performance - The group's revenue for the year ended March 31, 2024, was approximately HKD 66,050,000, a decrease of about HKD 2,420,000 or 3.53% compared to HKD 68,470,000 for the previous year[5]. - Revenue from the jewelry design and marketing business was approximately HKD 37,900,000, down from HKD 41,800,000 in the previous year[23]. - The group's loss for the year was approximately HKD 18,510,000, an increase of about HKD 4,050,000 compared to a loss of HKD 14,460,000 in the previous year[21]. - Financial costs increased to approximately HKD 1,650,000 from HKD 1,050,000, reflecting a rise of about HKD 600,000[22]. - The group recorded a fair value loss of approximately HKD 16,140,000 on listed equity securities during the review period, compared to a fair value gain of HKD 1,270,000 in the previous year[49]. - The total principal amount for individual borrowers is approximately HKD 310,140,000, an increase from HKD 276,570,000 last year, with an average interest rate of 10.58% compared to 9.70% last year[44]. - The company reported an audit service fee of HKD 730,000 and a non-audit service fee of HKD 75,000, totaling HKD 805,000 for the fiscal year ending March 31, 2024[157]. Credit Risk and Loan Management - The group experienced an expected credit loss of approximately HKD 30,720,000 for receivables, compared to HKD 21,820,000 in the previous year[6]. - The expected credit loss provision for receivables is approximately HKD 63,100,000, an increase from HKD 31,040,000 in the previous year, with a default provision rate of 20.34% compared to 11.22% last year[48]. - The largest loan amount from a single borrower was HKD 9,000,000, accounting for approximately 2.90% of the total receivables[27]. - The five largest borrowers accounted for a total loan amount of HKD 43,000,000, representing approximately 13.86% of total receivables[27]. - The group aims to monitor loan recoverability quarterly to ensure timely repayments and manage overdue accounts effectively[14]. - The group has established a loan monitoring mechanism to assess credit risk and borrower financial conditions regularly[13]. - The group has not recorded any bad debts or receivable write-offs for the fiscal year ending March 31, 2024[48]. Market Conditions and Business Strategy - The group continues to face uncertainties in the market due to geopolitical tensions and global economic weaknesses[25]. - The group will continue to review its existing business portfolio to enhance operations and seek suitable investment opportunities for revenue diversification[38]. - The company’s operations cover two main segments: jewelry design and marketing, and lending services, with a focus on Hong Kong and mainland China[143]. Corporate Governance - The board of directors has maintained compliance with the corporate governance code throughout the fiscal year ending March 31, 2024[64]. - The company has adopted the corporate governance principles outlined in the Hong Kong Stock Exchange Listing Rules[63]. - The board consists of a diverse group of members, considering measurable goals related to gender, age, culture, and professional experience[69]. - The company has established a written guideline for employees regarding securities trading to prevent insider trading[76]. - The board has reviewed and developed the company's corporate governance policies and practices during the fiscal year[77]. - The company has a total of four board committees: Executive Committee, Remuneration Committee, Audit Committee, and Nomination Committee[79]. - The board is responsible for overseeing the company's business strategies and performance to enhance shareholder value[65]. - The board has the authority to approve and monitor all policy matters, overall strategy, and significant transactions[66]. - The board of directors has confirmed compliance with the corporate governance code throughout the fiscal year ending March 31, 2024[87]. Employee and Diversity Initiatives - As of March 31, 2024, the company had 25 employees, a decrease from 47 employees in 2023[61]. - The company has implemented employee development and training programs to improve employee quality[61]. - Approximately 83% of the board members and 60% of the company's employees are male, indicating a focus on employee diversity[94]. Risk Management and Internal Controls - The board is responsible for risk management and internal control systems to protect the company's assets and stakeholders' interests[110]. - The company has adopted a risk management framework that combines top-down and bottom-up processes to assess overall strategic risks and operational risks[111]. - The company will conduct an annual independent assessment of its risk management and internal control systems to enhance their effectiveness[132]. - The internal control system is deemed effective and complete, with sufficient resources, staff qualifications, training programs, and budget for accounting, internal audit, and financial reporting functions[151]. - The company emphasizes the importance of risk management and internal controls as part of its core responsibilities at all management levels[129]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to reduce greenhouse gas emissions intensity by 3% over three years from the baseline year of 2022, with a revised target to maintain or reduce emissions intensity by the end of fiscal year 2025[169]. - The company plans to maintain or reduce the total harmless waste generation density by the end of fiscal year 2025, with a baseline year revised to 2023[169]. - The company has reported a decrease in total greenhouse gas emissions density in 2024 compared to 2023 due to the sale of one vehicle[172]. - The company integrates environmental, social, and governance considerations into its core business strategy to ensure long-term success[162]. - The company has established a framework for assessing key performance indicators related to environmental, social, and governance issues[164]. - The company has established an Environmental, Social, and Governance (ESG) working group to systematically manage ESG matters, which includes collecting and analyzing relevant data[178]. - The board of directors is responsible for overseeing the company's ESG strategy and performance, meeting at least once a year to discuss related issues[178]. - The company has identified significant ESG issues based on internal assessments, which will guide the focus of its ESG reporting and strategy[184]. - The company aims to reduce emissions by exploring environmentally friendly business operations as part of its commitment to sustainable development[188]. - The company has implemented an Environmental Protection Policy to enhance environmental protection measures and comply with local laws and regulations[188]. - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's listing rules and guidelines, ensuring consistency with previous reports[180]. - The company will continue to conduct materiality assessments to analyze business risks and respond to stakeholder expectations[184]. - The total greenhouse gas emissions for the company in 2024 amounted to 13.58 tons of CO2 equivalent, a decrease of 42.5% from 23.59 tons in 2023[194]. - Direct greenhouse gas emissions from unleaded gasoline combustion (Scope 1) decreased to 8.74 tons of CO2 equivalent in 2024, down from 19.92 tons in 2023, representing a reduction of 56.2%[194]. - The total energy consumption in 2024 was 38.78 MWh, a significant decrease of 50% compared to 77.43 MWh in 2023[200]. - The density of total greenhouse gas emissions per million HKD revenue improved to 0.21 tons of CO2 equivalent in 2024 from 0.34 tons in 2023, indicating a 38.2% enhancement in efficiency[194]. - The total amount of harmless waste generated in 2024 was 387.28 kg, a slight decrease from 390.29 kg in 2023[197]. - The company reported a direct energy consumption of 31.75 MWh in 2024, down from 72.59 MWh in 2023, reflecting a reduction of 56.3%[200]. - The indirect energy consumption increased to 7.03 MWh in 2024 from 4.84 MWh in 2023, marking a rise of 45.3%[200]. - The total amount of office paper used in 2024 was 31.28 kg, an increase from 30.29 kg in 2023, indicating a 3.3% rise[197]. - The company has implemented measures to reduce paper usage and improve resource management as part of its environmental policy[196].

Corporate Governance - The company reported its audited financial results for the fiscal year ending March 31, 2024, with a focus on corporate governance and transparency [1] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring adherence to governance principles [12] - The company emphasizes the importance of corporate governance for maintaining transparency and accountability [2] - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure [9] - The company is committed to implementing appropriate policies and corporate governance practices based on its business needs [2] Financial Compliance - The audit committee reviewed the financial statements for compliance with applicable accounting standards, confirming full disclosure [14] - The financial results have been verified by the company's auditor, Long Green (Hong Kong) CPA Limited, ensuring consistency with the audited consolidated financial statements [14] - All directors confirmed compliance with the standards of conduct for securities trading throughout the fiscal year [14] Shareholder Communication - The preliminary announcement of the financial results has been made available to shareholders and on the company's website [10] - There were no purchases, redemptions, or sales of the company's listed securities during the fiscal year ending March 31, 2024 [4]

[Financial Performance Summary](index=1&type=section&id=Financial_Performance_Summary) In FY2024, total revenue slightly decreased, but gross profit increased; however, significant impairment losses on expected credit expanded the annual loss to HKD 18.51 million [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Consolidated_Statement_of_Profit_or_Loss_and_Other_Comprehensive_Income) In FY2024, total revenue slightly decreased, while gross profit increased; however, significant impairment losses on expected credit expanded the annual loss to HKD 18.51 million | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | **Revenue** | **66,052** | **68,472** | | Cost of sales | (36,178) | (40,440) | | **Gross Profit** | **29,874** | **28,032** | | Other income | 2 | 304 | | Net other gains and losses | (23) | (1,574) | | Impairment losses on expected credit losses | (30,723) | (21,826) | | Administrative expenses | (11,030) | (10,501) | | Finance costs | (1,655) | (1,054) | | **Loss before tax** | **(18,587)** | **(13,506)** | | **Loss for the year** | **(18,513)** | **(14,461)** | | Other comprehensive expense for the year | (16,047) | 1,378 | | **Total comprehensive expense for the year** | **(34,560)** | **(13,083)** | - Basic loss per share was **1.43 HK cents**, compared to **1.12 HK cents** in the prior year. Diluted loss per share was not presented as the Company had no potential dilutive ordinary shares[12](index=12&type=chunk)[52](index=52&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated_Statement_of_Financial_Position) As of March 31, 2024, total assets decreased to HKD 387.4 million, total liabilities increased, and net assets declined to HKD 332.0 million, notably reducing net current assets | Assets | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | **Non-current assets** | **229,381** | **115,953** | | Of which: Loans receivable | 216,586 | 85,002 | | Of which: Financial assets at fair value through other comprehensive income | 12,279 | 28,419 | | **Current assets** | **158,037** | **298,090** | | Of which: Inventories | 98,202 | 83,227 | | Of which: Loans and interest receivables | 32,020 | 168,558 | | **Total Assets** | **387,418** | **414,043** | | Liabilities and Equity | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | **Current liabilities** | **43,181** | **38,449** | | **Non-current liabilities** | **12,233** | **9,030** | | **Total Liabilities** | **55,414** | **47,479** | | **Net Assets** | **332,004** | **366,564** | | **Total Equity** | **332,004** | **366,564** | [Notes to Consolidated Financial Statements](index=5&type=section&id=Notes_to_Consolidated_Financial_Statements) [General Information and Basis of Preparation](index=5&type=section&id=Note_1_2_General_Information_and_Basis_of_Preparation) The Company, listed on HKEX, primarily engages in jewellery design and money lending, with consolidated financial statements prepared under HKFRS - The Company is an investment holding company, and the Group primarily engages in two main businesses: jewellery design and marketing, and money lending[2](index=2&type=chunk) - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) issued by the Hong Kong Institute of Certified Public Accountants, and comply with the disclosure requirements of the Hong Kong Listing Rules and the Companies Ordinance[3](index=3&type=chunk) [Changes in Accounting Policies](index=5&type=section&id=Note_3_Adoption_of_New_and_Amended_HKFRSs) The Group adopted new and amended HKFRSs this year, including HKFRS 17, with no significant impact on financial statements, and has not yet applied certain future standard amendments - Several new and amended Hong Kong Financial Reporting Standards were first applied this year, including amendments to accounting policy disclosures, the definition of accounting estimates, and deferred tax[4](index=4&type=chunk)[25](index=25&type=chunk) - The application of new and amended standards had no significant impact on the Group's consolidated financial position and results for the current and prior years[4](index=4&type=chunk) - The Group has not yet applied several issued but not yet effective standard amendments, and the Directors do not expect these amendments to have a significant impact on the financial statements in the foreseeable future[6](index=6&type=chunk)[7](index=7&type=chunk) [Revenue Analysis](index=6&type=section&id=Note_4_Revenue) Total revenue for FY2024 was HKD 66.05 million, a decrease from the prior year, with jewellery sales and money lending interest income as primary contributors | Revenue Source | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Sales of jewellery | 37,900 | 41,806 | | Interest income from money lending | 28,152 | 26,666 | | **Total** | **66,052** | **68,472** | [Segment Information](index=7&type=section&id=Note_5_Segment_Information) The Group's jewellery segment turned profitable despite revenue decline, while money lending recorded a loss due to increased credit loss provisions; operations are primarily in Hong Kong with two major customers [By Business Segment](index=7&type=section&id=Note_5a_By_Business_Segment) In FY2024, the jewellery business segment turned profitable, while money lending shifted to a loss of HKD 5.13 million, primarily due to a significant increase in expected credit loss impairment for loans receivable | By Business Segment | Jewellery Design and Marketing (HKD thousands) | Money Lending (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | | **2024 Segment Revenue** | **37,900** | **28,152** | **66,052** | | **2024 Segment Results** | **278** | **(5,127)** | **(4,849)** | | 2023 Segment Revenue | 41,806 | 26,666 | 68,472 | | 2023 Segment Results | (4,493) | 2,740 | (1,753) | | Segment Assets and Liabilities (March 31, 2024) | Jewellery Design and Marketing (HKD thousands) | Money Lending (HKD thousands) | Total (HKD thousands) | | :--- | :--- | :--- | :--- | | **Segment Assets** | **125,585** | **215,251** | **340,836** | | **Segment Liabilities** | **9,460** | **316** | **9,776** | - The money lending business segment recognized a goodwill impairment loss of **HKD 1 million**, and impairment losses on expected credit losses for loans and interest receivables of **HKD 32.07 million**[42](index=42&type=chunk) [By Geographical Area](index=10&type=section&id=Note_5b_By_Geographical_Area) The Group's primary operations and revenue generation are located in Hong Kong - The Group's operating businesses are primarily located in Hong Kong[42](index=42&type=chunk) - The geographical market for the Group's revenue is determined by the location where services are provided or goods are delivered, primarily in Hong Kong[39](index=39&type=chunk) [Major Customer Information](index=10&type=section&id=Note_5c_Major_Customer_Information) In the jewellery business, Customer A and Customer B each contributed over 10% of the Group's total revenue, with HKD 18.12 million and HKD 7.44 million respectively | Customer | Business Segment | 2024 Revenue (HKD thousands) | 2023 Revenue (HKD thousands) | | :--- | :--- | :--- | :--- | | Customer A | Jewellery Design and Marketing | 18,117 | 19,720 | | Customer B | Jewellery Design and Marketing | 7,442 | N/A | [Analysis of Key Profit or Loss and Tax Items](index=11&type=section&id=Note_6_to_11_Analysis_of_Key_Financial_Items) This fiscal year, other income decreased and net other gains turned positive; however, a substantial increase in expected credit loss impairment was the primary driver of the expanded overall loss, with finance costs also rising - Other income decreased from **HKD 0.304 million** to **HKD 0.002 million**, primarily due to **HKD 0.206 million** in government subsidies last year[46](index=46&type=chunk) - Total impairment losses on expected credit losses for trade receivables and loans and interest receivables amounted to **HKD 30.72 million**, a significant increase from **HKD 21.83 million** last year[47](index=47&type=chunk) - Finance costs increased from **HKD 1.05 million** to **HKD 1.66 million**, primarily due to increased estimated interest on non-convertible bonds[49](index=49&type=chunk) - An income tax credit of **HKD 0.074 million** was recorded for the year, compared to an income tax expense of **HKD 0.955 million** last year[49](index=49&type=chunk)[77](index=77&type=chunk) [Analysis of Key Balance Sheet Items](index=14&type=section&id=Note_14_to_18_Analysis_of_Key_Balance_Sheet_Items) At period-end, listed equity securities' market value significantly decreased; total loans receivable increased but with substantial credit loss provisions; trade receivables and payables balances also significantly reduced [Financial Assets at Fair Value Through Other Comprehensive Income (FVOCI)](index=14&type=section&id=Note_14_Financial_Assets_at_FVOCI) The Group's listed equity securities, held for long-term strategic purposes, saw their market value significantly decline from HKD 28.42 million to HKD 12.28 million | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Listed equity securities | 12,279 | 28,419 | - These investments are not held for trading but for long-term strategic purposes[79](index=79&type=chunk) [Trade Receivables](index=14&type=section&id=Note_15_Trade_Receivables) Net trade receivables significantly decreased from HKD 26.01 million to HKD 8.25 million, with an improved aging structure and a 90-day credit period | Aging | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Within 3 months | 6,898 | 10,467 | | 4 to 6 months | 876 | 6,179 | | Over 6 months | 475 | 9,362 | | **Total** | **8,249** | **26,008** | [Loans and Interest Receivables](index=15&type=section&id=Note_16_Loans_and_Interest_Receivables) Total loans and interest receivables increased to HKD 312 million, but expected credit loss provisions significantly rose to HKD 63.10 million, reducing net book value, with annual interest rates from 8% to 11% | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Loans and interest receivables | 311,606 | 284,600 | | Less: Provision for expected credit losses | (63,100) | (31,040) | | **Net book value** | **248,506** | **253,560** | | Less: Non-current portion | (216,586) | (85,002) | | **Current portion** | **32,020** | **168,558** | - The fixed annual interest rate for loans receivable ranges from **8% to 11%**, with an effective annual interest rate ranging from **9% to 11%**[59](index=59&type=chunk) [Trade Payables](index=16&type=section&id=Note_18_Trade_Payables) Trade payables balance significantly decreased from HKD 3.50 million to HKD 0.50 million, with a credit period ranging from 30 to 180 days | Aging | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Within 90 days | 141 | – | | 91 to 180 days | 22 | 3,270 | | Over 180 days | 338 | 228 | | **Total** | **501** | **3,498** | [Loss Per Share and Dividends](index=13&type=section&id=Note_12_13_Loss_Per_Share_and_Dividends) In FY2024, the loss attributable to owners was HKD 18.51 million, resulting in a basic loss per share of 1.43 HK cents, and no dividends were recommended | Item | 2024 | 2023 | | :--- | :--- | :--- | | Loss for the year attributable to owners of the Company (HKD thousands) | (18,513) | (14,461) | | Weighted average number of ordinary shares (thousands) | 1,294,706 | 1,289,492 | | **Basic loss per share (HK cents)** | **(1.43)** | **(1.12)** | - No dividends were paid or proposed for the year ended March 31, 2024[77](index=77&type=chunk)[112](index=112&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management_Discussion_and_Analysis) [Financial Review](index=17&type=section&id=Financial_Review) In FY2024, revenue slightly decreased, but gross profit margin improved; however, increased expected credit loss provisions expanded the annual loss to HKD 18.51 million, despite cost control measures - Revenue decreased by **3.53%** year-on-year to approximately **HKD 66.05 million**[89](index=89&type=chunk) - Gross profit increased by **6.56%** to **HKD 29.87 million**, with gross profit margin improving to **45.22%**, primarily due to higher demand for money lending[64](index=64&type=chunk) - Loss for the year increased to **HKD 18.51 million**, mainly due to an increase in expected credit loss provisions for loans and interest receivables from **HKD 21.82 million** to **HKD 30.72 million**[65](index=65&type=chunk)[90](index=90&type=chunk) - Selling, distribution, and administrative expenses decreased by **7.59%**, reflecting the Group's proactive cost control measures[91](index=91&type=chunk) [Business Review and Outlook](index=17&type=section&id=Business_Review_and_Outlook) The Group operates in an uncertain macroeconomic environment; jewellery business turned profitable despite revenue decline, while money lending increased income but raised credit loss provisions, with future focus on risk management - Management believes that geopolitical conflicts, global inflation, and rising interest rates add uncertainty to the market, and revenue expectations will continue to face significant pressure[69](index=69&type=chunk)[117](index=117&type=chunk) - Looking ahead, the Group will continue to strengthen risk management to address external risks and seize opportunities[70](index=70&type=chunk) [Jewellery Design and Marketing Business](index=17&type=section&id=Jewellery_Design_and_Marketing_Business) This fiscal year, jewellery business revenue decreased to HKD 37.90 million but successfully turned profitable, recording a pre-tax operating profit of HKD 0.27 million, primarily due to conservative consumer spending | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 37,900 | 41,800 | | Operating profit/(loss) before tax | 270 | (4,490) | - Despite the lifting of pandemic restrictions in mainland China, economic uncertainty continues to affect consumption, especially for non-essential items like jewellery, preventing the business from recovering[95](index=95&type=chunk) [Money Lending Business](index=18&type=section&id=Money_Lending_Business) The money lending business grew, with interest income increasing to HKD 28.15 million and total loan principal to HKD 310 million; however, significant expected credit loss provisions were made due to increased global economic risks | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Interest income | Approx. HKD 28,150,000 | Approx. HKD 26,660,000 | | Number of borrowers | 122 | 87 | | Total loan principal | Approx. HKD 310,140,000 | Approx. HKD 276,570,000 | | Average annual interest rate | 10.58% | 9.70% | - The Group has established comprehensive credit assessment, due diligence, and loan monitoring mechanisms to manage credit risk[73](index=73&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - Due to increased global economic risk factors, expected credit losses for loans and interest receivables of approximately **HKD 30.72 million** were recognized this year. Despite this accounting provision, the Group incurred no actual bad debts this year[100](index=100&type=chunk) - Total expected credit loss provisions for loans receivable increased to **HKD 63.10 million**, with the default provision rate rising from **11.22%** to **20.34%**[101](index=101&type=chunk) [Material Investments](index=21&type=section&id=Material_Investments) The market value of listed equity investments significantly shrank to HKD 12.28 million, recording a fair value loss of HKD 16.14 million this year, and the Group will continue a diversified investment strategy | Investment Name (Stock Code) | Principal Business | Market Value as of March 31, 2024 (HKD millions) | Net Change in Fair Value During the Period (HKD millions) | | :--- | :--- | :--- | :--- | | Wellong Holdings Limited (8021) | Scaffolding, decoration, money lending, etc. | 8.62 | (15.07) | | Other listed equity securities | - | 3.66 | (1.07) | | **Total** | | **12.28** | **(16.14)** | - The Group will continue to adopt a diversified investment strategy and refer to professional advice to monitor investment performance to achieve better shareholder returns[127](index=127&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=Liquidity_and_Financial_Resources) As of March 31, 2024, the Group's liquidity tightened, with net current assets significantly decreasing to HKD 115 million and cash and cash equivalents at HKD 0.35 million, while the gearing ratio increased | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net current assets | Approx. HKD 114,850,000 | Approx. HKD 259,640,000 | | Cash and cash equivalents | Approx. HKD 350,000 | Approx. HKD 1,350,000 | | Total interest-bearing borrowings | Approx. HKD 26,260,000 | Approx. HKD 20,130,000 | | Gearing ratio | 6.77% | 4.87% | [Risk Management](index=22&type=section&id=Risk_Management) The Group primarily operates in Hong Kong and mainland China, facing foreign exchange risks, but management considers USD exchange rate risk low due to HKD peg, and no derivative instruments were used for hedging this year - The Group's principal operations are in Hong Kong and mainland China, with transactions, assets, and liabilities primarily denominated in HKD, USD, and RMB[131](index=131&type=chunk) - Management considers the USD exchange rate risk not significant, and no derivative contracts were entered into to hedge foreign exchange risk[131](index=131&type=chunk) [Other Information](index=22&type=section&id=Other_Information) [Dividend Policy](index=23&type=section&id=Dividend_Policy) The Board of Directors did not recommend any dividend distribution for the fiscal year ended March 31, 2024, consistent with the previous year - The Board of Directors did not recommend the declaration of any dividend for the year ended March 31, 2024[77](index=77&type=chunk)[112](index=112&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=Employment_and_Remuneration_Policy) As of March 31, 2024, the Group's employee count nearly halved to 25, with remuneration determined by work nature, experience, and market conditions - As of March 31, 2024, the Group had **25** employees, compared to **47** in 2023[114](index=114&type=chunk) [Significant Acquisitions and Future Plans](index=22&type=section&id=Significant_Acquisitions_and_Future_Plans) The Group had no significant acquisitions or disposals this fiscal year and currently has no other major investment or capital asset future plans, but will continue to seek suitable investment opportunities - For the year ended March 31, 2024, the Company had no significant acquisitions or disposals[128](index=128&type=chunk) - As of March 31, 2024, the Group had no other major investment or capital asset future plans[129](index=129&type=chunk) - The Directors will continue to seek suitable investment opportunities to continuously broaden the Group's revenue sources and diversify its business portfolio[130](index=130&type=chunk)

Revenue Performance - The group's revenue for the six months ended September 30, 2023, was approximately HKD 32,330,000, a decrease of about HKD 4,970,000 or 13.32% compared to HKD 37,300,000 in the same period of 2022[9]. - Revenue from jewelry design and marketing was approximately HKD 18,530,000, down from HKD 23,910,000 in 2022, while lending business revenue was approximately HKD 13,800,000, slightly up from HKD 13,390,000 in 2022[9]. - Revenue for the six months ended September 30, 2023, was HKD 32,334,000, a decrease of 13.3% compared to HKD 37,303,000 for the same period in 2022[76]. - Revenue from jewelry sales was HKD 18,530,000, down 22.5% from HKD 23,916,000 in the previous year[98]. - Revenue from external customers for jewelry design and marketing was HKD 23,916,000, and for lending was HKD 13,397,000, totaling HKD 37,303,000 for the six months ended September 30, 2023[105]. Profitability - The gross profit for the period was approximately HKD 14,800,000, an increase of about HKD 680,000 or 4.82% from HKD 14,120,000 in 2022, with a gross margin rising from approximately 37.86% to 45.77%[9]. - The group's profit before tax for the period was approximately HKD 1,310,000, a decrease of about HKD 1,380,000 from HKD 2,690,000 in 2022, primarily due to expected credit losses of approximately HKD 4,840,000[11]. - The net profit for the period was approximately HKD 500,000, down from HKD 1,350,000 in 2022[11]. - The company reported a profit of HKD 499,000 for the period, compared to a loss in the previous year[103]. - The total comprehensive income for the period was a loss of HKD 9,725,000, compared to a gain of HKD 15,361,000 in the previous year[78]. Credit Losses and Provisions - The expected credit loss provision for loans and receivables is approximately HKD 5.99 million, primarily due to increased global economic risk factors[23]. - As of September 30, 2023, the expected credit loss provision for outstanding loans is HKD 37.03 million, up from HKD 30.04 million in the previous year, with a default provision rate of 12.75%[24]. - The company reported a loss of HKD 4,838,000 in expected credit losses, which is an increase of 29.6% from HKD 3,733,000 in the previous year[76]. - The expected credit loss for accounts receivable was HKD 1,148,000, while for loans and receivables it was HKD (5,986,000), resulting in a total expected credit loss of HKD (4,838,000)[114]. Financial Position - The total assets as of September 30, 2023, were HKD 419,036,000, a decrease from HKD 414,043,000 as of March 31, 2023[80]. - The group's net current assets were approximately HKD 183.48 million, down from HKD 259.64 million as of March 31, 2023[36]. - Total liabilities as of September 30, 2023, were HKD 63,197,000, with HKD 19,193,000 from Hong Kong[107]. - The total principal amount of interest-bearing borrowings was approximately HKD 26 million as of September 30, 2023, up from HKD 23.25 million as of March 31, 2023[36]. - The debt-to-equity ratio as of September 30, 2023, was 7.23%, an increase from 4.87% as of March 31, 2023[36]. Cash Flow and Liquidity - Cash and cash equivalents amounted to approximately HKD 9.73 million as of September 30, 2023, compared to HKD 1.35 million as of March 31, 2023[36]. - The net cash generated from operating activities for the six months ended September 30, 2023, was HKD 3,788,000, compared to a net cash used of HKD 2,552,000 in the same period of 2022[86]. - The net increase in cash and cash equivalents for the six months was HKD 8,378,000, compared to a decrease of HKD 6,085,000 in the same period of 2022[86]. Business Environment and Strategy - The company anticipates continued pressure on revenue expectations due to a challenging operating environment and external uncertainties[15]. - The company plans to strengthen risk management to navigate external risks and seize opportunities as the pandemic situation improves[15]. - The jewelry design and marketing business faced challenges due to the impact of COVID-19 and geopolitical tensions affecting consumer sentiment and spending[13]. - The company plans to actively expand its business and enhance public awareness through advertising, aiming to provide stable interest income[26]. Employee and Governance - The number of employees decreased to 24 as of September 30, 2023, from 47 as of March 31, 2023[42]. - The audit committee, consisting of four independent non-executive directors, reviewed the financial statements for the period ending September 30, 2023[72]. - The company has complied with the corporate governance code during the six months ending September 30, 2023[67]. Share Options and Capital - The new share option scheme allows for the issuance of up to 124,927,550 shares, representing 10% of the issued share capital as of the report date[53]. - The company reported a total of 64,909,122 stock options granted, with 45,430,000 options exercised and 19,479,122 options expired as of September 30, 2023[61]. - The company did not recommend the declaration of an interim dividend for the six months ended September 30, 2023[120].

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，概不對因本公告全部或任 何部份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。 China Environmental Energy Investment Limited 中 國 環 保 能 源 投 資 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：986） 截至二零二三年九月三十日止六個月 中期業績公告 中國環保能源投資有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本 公司及其附屬公司截至二零二三年九月三十日止六個月的簡明綜合中期業績（「中 期業績」）。本公告載有本公司二零二三年中期報告（「中期報告」）全文，並符合香 港聯合交易所有限公司證券上市規則中有關中期業績初步公告附載資料的相關規定。 承董事會命 中國環保能源投資有限公司 主席 周雅穎 香港，二零二三年十一月三十日 於本公告日期，董事會包括三名執行董事，即周雅穎女士、韋亮先生及劉俊先生； ...

Financial Performance - The group's revenue for the year ended March 31, 2023, was approximately HKD 68,470,000, a decrease of about HKD 40,440,000 or 37.13% compared to HKD 108,910,000 for the previous year[8]. - Revenue from jewelry design and marketing was approximately HKD 41,800,000, down from HKD 85,150,000, while lending business revenue was approximately HKD 26,670,000, up from HKD 23,760,000[8]. - The group reported a loss of approximately HKD 14,460,000 for the year, compared to a profit of HKD 600,000 in the previous year, an increase in loss of about HKD 6,600,000[9]. - The group reported a loss before tax of HKD 13,506,000 for the year, compared to a profit of HKD 1,478,000 in the previous year[195]. - The group's gross profit was approximately HKD 28,030,000, slightly down by HKD 150,000 or 0.53%, with a gross profit margin increasing from approximately 25.88% to 40.94% due to higher demand in the lending business[8]. Credit and Lending Business - Expected credit losses for loans and receivables were approximately HKD 21,830,000, up from HKD 7,510,000 in the previous year[9]. - The lending business had 87 individual borrowers with a total principal amount of approximately HKD 276,570,000, with an average interest rate of 9.70%[14]. - The expected credit loss provision for loans and receivables is approximately HKD 21.83 million, attributed to increased global economic risk factors[20]. - As of March 31, 2023, the expected credit loss provision was HKD 30.28 million, up from HKD 9.2 million in 2022, resulting in a default provision rate of 10.95%[21]. - The company has implemented a loan monitoring mechanism to continuously assess loan portfolios and identify potential issues[19]. Operational Efficiency and Cost Management - Selling, distribution, and administrative expenses were approximately HKD 17,390,000, a decrease of about HKD 830,000 or 4.56% compared to HKD 18,220,000 for the previous year[9]. - The group has implemented cost control measures to improve operational efficiency, resulting in a slight decrease in financial costs to approximately HKD 1,050,000 from HKD 1,250,000[9]. - The jewelry design and marketing business faced a pre-tax operating loss of approximately HKD 6,330,000, compared to a loss of HKD 5,450,000 in the previous year[11]. Market Conditions and Risks - The geopolitical tensions and the impact of the COVID-19 pandemic have created uncertainties affecting the group's sales and profitability, particularly in the mainland China market[13]. - The group faced significant risks and uncertainties, particularly highlighted in the financial statements notes[192]. Corporate Governance - The board of directors consists of 4 executive directors and 4 independent non-executive directors, ensuring compliance with listing rules requiring at least one-third of the board to be independent[47][51]. - The company has maintained a 100% attendance rate for board meetings by all executive directors, with 14 out of 14 meetings attended[56]. - The board has adopted a customized code of conduct for securities trading, confirming compliance by all directors throughout the fiscal year ending March 31, 2023[57]. - The company provides ongoing training and updates to all directors to ensure compliance with corporate governance and regulatory requirements[55]. - The board is responsible for the preparation of the financial statements for the year ending March 31, 2023, ensuring clarity and compliance with regulations[76]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and integrates environmental, social, and governance (ESG) matters into its core business strategy[97]. - The ESG report outlines the company's activities, challenges, and measures taken during the fiscal year ending March 31, 2023[101]. - The company aims to reduce greenhouse gas emissions density by 3% over the next three years, using 2022 as the baseline year[112]. - The company has implemented various energy-saving measures, including adjusting air conditioning to 25.5 degrees Celsius and using energy-efficient equipment[124]. - The company has established policies for effective resource usage, including energy, water, and other raw materials[178]. Employee Management and Development - As of March 31, 2023, the company employed a total of 47 full-time employees, a decrease from 50 employees as of March 31, 2022[141]. - The overall employee turnover rate increased to 6% in 2023 from 5% in 2022[145]. - The company maintained zero recorded work-related fatalities for three consecutive years, including 2023[150]. - The percentage of trained employees increased to 57% in 2023 from 38% in 2022[155]. - The company has established a structured grievance mechanism to address any discrimination or harassment incidents, with no reports of such incidents in 2023[148]. Community Engagement and Social Responsibility - The company is exploring ways to safely resume community activities post-pandemic, indicating a commitment to social responsibility[173]. - Community investment efforts focus on areas such as education, health, and environmental issues, with resources allocated accordingly[194]. - The company has established a community investment policy to understand and address the needs of the communities in which it operates[173]. Compliance and Risk Management - The company has implemented anti-corruption policies and training for directors and employees to mitigate risks associated with bribery and fraud[194]. - The risk management and internal control systems are designed to manage and mitigate risks rather than eliminate them, with a focus on financial, operational, and compliance monitoring[79]. - The company will conduct an annual independent assessment of its risk management and internal control systems, confirming their effectiveness and completeness for the year ending March 31, 2023[85].