Trading Suspension and Legal Issues - The company's shares were suspended from trading on October 4, 2021, due to the auditor needing additional time to complete the audit procedures for the fiscal year 2021[6]. - A petition for winding up the company was filed in the High Court of Hong Kong regarding an unpaid bond principal and accrued interest totaling HKD 10,158,794.52[7]. - The company received a joint application to withdraw the winding-up petition on October 4, 2021, but the winding-up petition in the Cayman Islands remains valid[10]. - The company must comply with the listing rules by April 3, 2023, or risk delisting after 18 months of continuous suspension[12]. - The company’s shares have been suspended from trading since October 4, 2021, pending resolution of compliance issues with the stock exchange[91]. - The company’s bondholders have submitted a winding-up petition due to the inability to repay the outstanding principal and accrued interest[45]. - The company faced a court petition for liquidation due to an unpaid bond principal and accrued interest of approximately HKD 10,159,000[174]. Restructuring and Financial Position - The company has appointed joint provisional liquidators for restructuring purposes, with the order allowing no legal actions against the company without court permission[8]. - The company is focused on debt restructuring to improve its financial position and restore trading of its shares[7]. - A proposed restructuring framework agreement was established on December 30, 2022, to restructure the company's debt, capital structure, and equity[15]. - The restructuring plan aims to ensure compliance with listing requirements and support ongoing business operations[14]. - The company is working towards a comprehensive debt and equity restructuring to stabilize its financial position[15]. - The company has initiated a debt restructuring process, with joint provisional liquidators appointed for restructuring purposes[178]. - The proposed restructuring includes a capital reorganization and a change in the trading board lot size, with China Hong Kong International agreeing to subscribe for new shares at a total subscription price of HKD 60 million[181]. Financial Performance - During the reporting period, the company recorded revenue of approximately RMB 3,800,000, a significant increase from RMB 300,000 in the previous period[27]. - The company reported a gross loss of approximately RMB 87,000, compared to a gross profit of RMB 300,000 in the previous period, primarily due to the lack of revenue from forestry operations[29]. - Administrative expenses decreased by approximately 89.5% to RMB 4,900,000 from RMB 46,500,000 in the previous period, mainly due to reductions in director salaries and depreciation of right-of-use assets[31]. - The company recorded other income of approximately RMB 6,592,000, a significant improvement from other losses of RMB 89,500,000 in the previous period[32]. - Financing costs decreased by approximately 67.8% to RMB 6,700,000 from RMB 20,800,000 in the previous period[34]. - The company reported a loss of approximately RMB 5,500,000 during the reporting period, compared to a loss of RMB 158,500,000 in the previous period[35]. - The company reported a net loss of RMB 5,458,000 for the six months ended December 31, 2021, compared to a net loss of RMB 158,452,000 for the twelve months ended December 31, 2020[123]. Share Capital and Equity - The proposed capital reorganization includes a share consolidation where every 100 existing shares of HKD 0.002 will be consolidated into one share of HKD 0.20[19]. - Following the share consolidation, the company's issued share capital will be reduced to HKD 0.01 per share, with a total of 9,889,757,796 new shares created[19]. - An agreement was made to issue 466,000,000 new shares at an issue price of HKD 0.1288 per share, which will represent approximately 80.87% of the enlarged issued share capital post-transaction[22]. - The total issued ordinary shares as of December 31, 2021, remained at 11,024,220,415 shares, unchanged from June 30, 2021[53]. - The total equity deficit attributable to the owners of the company was approximately RMB 276,200,000 as of December 31, 2021, compared to RMB 277,300,000 on June 30, 2021[53]. Assets and Liabilities - As of December 31, 2021, the group had total assets valued at approximately RMB 86,600,000 and net liabilities of about RMB 276,200,000, with cash and bank balances around RMB 300,000[39]. - The company has outstanding bonds totaling approximately HKD 279,889,000 as of December 31, 2021, which have matured and remain unredeemed[43]. - Current liabilities exceeded current assets by approximately RMB 303,844,000 as of December 31, 2021, with significant components including accounts payable and bonds payable[106]. - The total liabilities as of December 31, 2021, were RMB 362,843,000, down from RMB 364,225,000 as of June 30, 2021[122]. Operational Developments - The company has begun planting ginseng on its existing forest land to diversify its revenue sources and expand its income base[26]. - The company obtained logging permits for a total of 22,651.3 cubic meters, which is expected to stabilize revenue from forestry management operations[26]. - The company is focusing on the container house business, which includes management, leasing, sales, and installation services[116]. - The company has classified its lending business as discontinued operations as of June 30, 2021[115]. Corporate Governance - The company has adopted all corporate governance code provisions as per the listing rules[82]. - The board believes it has taken sufficient measures to ensure compliance with corporate governance code provisions[83]. - The audit committee consists of four independent non-executive directors, ensuring oversight of financial reporting and compliance[87]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance during the reporting period[86]. Risk Management - The company is monitoring credit risk, with the highest credit risk associated with receivables, trade and other receivables, and bank deposits[66]. - The group has implemented extensive measures to monitor and mitigate risks related to climate change and natural disasters affecting timber harvesting capabilities[154]. - Management conducts regular industry trend analyses to ensure pricing structures align with market conditions and expected demand[154].

Financial Performance - The Group's forestry management business recorded no revenue for the twelve months ending December 31, 2020, compared to approximately RMB 36.8 million for the year ending December 31, 2019, due to the impact of the COVID-19 pandemic[16]. - Total revenue for the company was RMB 6.7 million for the year ended December 31, 2020, a decline of 87.7% compared to RMB 54.3 million for the year ended December 31, 2019[20]. - Revenue from the container house business was RMB 0.3 million for the year ended December 31, 2020, a significant decrease from RMB 11.1 million in the previous year, representing about 5.0% of total revenue[18]. - The company reported a loss of approximately RMB 95.8 million for the year ended December 31, 2020, compared to a loss of RMB 330.5 million in the previous year[28]. - The net loss for the year was RMB 158,452,000, compared to a net loss of RMB 340,484,000 in 2019, showing an improvement of approximately 53.5%[90]. - The gross profit for the year ended December 31, 2020, was approximately RMB 6.7 million, with a gross profit margin increase attributed to the higher margin from the lending business[20]. - The company reported a foreign exchange gain of RMB 28,273,000 for the year, compared to a loss of RMB 7,899,000 in 2019[90]. - The company did not declare any dividends for the year ended December 31, 2020, consistent with the previous year[119]. Assets and Liabilities - The company had total assets valued at approximately RMB 491.5 million and net assets of about RMB 122.1 million as of December 31, 2020[34]. - Total assets decreased from RMB 570,969,000 in 2019 to RMB 479,485,000 in 2020, a reduction of about 16.06%[91]. - Current liabilities increased from RMB 176,966,000 in 2019 to RMB 245,563,000 in 2020, an increase of approximately 38.73%[91]. - The total liabilities increased to RMB 369,478,000 as of December 31, 2020, compared to RMB 336,269,000 in the previous year[113]. - The company’s net equity decreased from RMB 252,237,000 in 2019 to RMB 122,058,000 in 2020, a decline of approximately 51.6%[91]. - The company had no pledged assets as of December 31, 2020, and 2019[158]. Debt and Financing - The company agreed to acquire Garden Glaze for a total consideration of HKD 170 million, to be settled through the issuance of convertible notes (Note A) at an annual interest rate of 5%[35]. - The principal amount of HKD 34.1 million of Note B, issued on August 15, 2018, remains outstanding as of December 31, 2020, with an interest rate of 5%[37]. - The company issued bonds totaling HKD 32.9 million at interest rates ranging from 5% to 10%, with a maturity of 1 to 1.5 years, and as of December 31, 2020, HKD 276 million of these bonds remain unpaid[38]. - The company reported a total of RMB 275,742,000 in unsecured corporate bonds as of December 31, 2020, compared to RMB 253,583,000 in 2019[151]. - The company received a winding-up petition from a bondholder due to an inability to repay outstanding principal and accrued interest totaling HKD 10,158,794[162]. - The chairman submitted a winding-up petition to the Cayman Islands court as part of the company's debt restructuring efforts[163]. - Joint provisional liquidators were appointed to assist in the restructuring process, with specific orders limiting legal actions against the company[163]. Operational Challenges - The group faced unprecedented pressure and challenges due to the COVID-19 pandemic, impacting business performance significantly[66]. - The group is undergoing a debt restructuring plan to ensure continued operations despite the financial challenges faced[100]. - The group has not generated any revenue from the sale of goods or installation of container houses during the current reporting period[104]. - The company has implemented measures to minimize environmental impact, including energy-saving initiatives and waste reduction strategies[57]. - The group has established environmental policies and procedures to comply with local regulations in China, addressing regulatory and environmental risks[137]. Governance and Compliance - The company has adopted all provisions of the Corporate Governance Code as of December 31, 2020, and has taken measures to ensure compliance with the relevant provisions[81]. - The company failed to meet the minimum number of independent non-executive directors required by listing rules until December 8, 2020, when Dr. Xie Guosheng was appointed, restoring compliance[84]. - The board of directors includes four executive directors and three independent non-executive directors as of the report date, ensuring a balanced governance structure[86]. - The audit committee, consisting of three independent non-executive directors, has reviewed the company's interim and annual reports, focusing on compliance with accounting standards and regulations[88]. - The company is committed to regularly reviewing its corporate governance practices to ensure ongoing compliance with the Corporate Governance Code[83]. Employee and Management - The company employed 34 staff members as of December 31, 2020, an increase from 27 staff members in the previous year[32]. - The total remuneration for directors and key management personnel increased to RMB 5,004,000 for the year ended December 31, 2020, compared to RMB 3,932,000 in 2019[160]. - Administrative expenses increased by approximately 105.1% to RMB 48.8 million for the year ended December 31, 2020, primarily due to consulting fees related to negotiations with creditors[27]. Environmental and Market Risks - The group faces risks related to timber price fluctuations and sales volume, necessitating regular market trend analysis to align pricing structures with market conditions[139]. - The group has implemented extensive measures to mitigate risks from climate change, pests, and natural disasters affecting timber growth and harvesting capabilities[138]. - The group has no foreign currency hedging policy but monitors foreign exchange risks and may consider hedging measures as needed[63].