Revenue Generation - The group generated revenue of approximately RMB 5,400,000 from timber sales during the reporting period, with a total harvesting volume of 12,044.0 cubic meters approved for the year 2023[11]. - The ginseng business reported revenue of approximately RMB 13,600,000, sourced from purchasing ginseng from suppliers[13]. - The group’s revenue for the six months ended December 31, 2023, was RMB 19,020,000, a decrease of 17.3% compared to RMB 23,021,000 for the same period in 2022[77]. - Forestry business revenue was RMB 5,440,000, while ginseng business revenue was RMB 13,580,000, contributing to the total revenue[99]. - Total revenue for the six months ended December 31, 2023, was RMB 19,020,000, a decrease of 17.3% from RMB 23,021,000 for the same period in 2022[96]. Ginseng Business Development - The group has initiated a ginseng planting program on 59 acres of land, with an expected phased sale of approximately 6 million ginseng plants over five years[13]. - The group aims to reduce reliance on suppliers by cultivating its own aged ginseng stock, ensuring quality through self-seeding methods[16]. - The group has established long-term supply agreements with suppliers to ensure a stable supply of aged ginseng[13]. - The group is actively working on increasing its inventory of aged ginseng to capture market share in the Chinese ginseng industry[16]. - The group has successfully completed the first phase of its ginseng planting plan, which began in December 2022[13]. Financial Performance - The company recorded revenue of approximately RMB 19,000,000 during the reporting period, a decrease of 17.4% compared to RMB 23,000,000 in the previous period[30]. - Gross profit for the reporting period was approximately RMB 3,800,000, down from RMB 5,100,000 in the previous period[31]. - The company recorded a profit of approximately RMB 201,400,000 during the reporting period, compared to a loss of approximately RMB 1,200,000 in the previous period[39]. - The total comprehensive income attributable to the company during the reporting period was approximately RMB 207,900,000, while the previous period recorded a total comprehensive expense of approximately RMB 14,600,000[39]. - The group reported a total profit of RMB 201,421,000 for the six months ended December 31, 2023, compared to a loss of RMB 1,244,000 for the same period in 2022[99][101]. Debt Restructuring and Capital Management - The company recorded a debt restructuring gain of approximately RMB 202,020,000 during the reporting period[35]. - The company completed a capital restructuring on July 14, 2023, with the trading unit changing from 40,000 shares to 16,000 new shares[23]. - The company issued 140,000,000 new shares at an issue price of HKD 0.55 per share as part of the creditor plan[25]. - The total amount raised from the subscription was HKD 466,000,000, with HKD 30,000,000 allocated to the plan company for distribution to creditors[24]. - The creditor plan was approved by the necessary statutory majority of creditors on May 18, 2023, and was sanctioned by the Hong Kong court on June 9, 2023[21]. Shareholder and Corporate Governance - Major shareholders include Zhonggang International Holdings Group Limited with 24.40% and China Bozza Scheme Limited with 19.55% of the issued share capital[58]. - The company has adopted all provisions of the Corporate Governance Code as per the listing rules[68]. - The board believes the company has complied with the Corporate Governance Code during the reporting period[68]. - No significant contracts were entered into by the company or its subsidiaries that involve directors' interests during the reporting period[63]. - The company has not purchased any directors' and officers' liability insurance as of December 31, 2023[68]. Asset and Liability Management - As of December 31, 2023, the company had total assets valued at approximately RMB 141,400,000 and net assets of approximately RMB 16,800,000[40]. - The company's total liabilities decreased significantly to RMB 110,034,000 from RMB 442,894,000, indicating improved financial stability[79]. - Total liabilities decreased from RMB 457,351,000 as of June 30, 2023, to RMB 124,616,000 as of December 31, 2023, representing a reduction of approximately 72.7%[102]. - The company’s capital debt ratio as of December 31, 2023, was approximately 88.1%, a significant improvement from 325.2% on June 30, 2023[45]. - The company recorded a fair value change of RMB 38,113,000 in artificial forest assets during the reporting period[120]. Operational Highlights - The company logged approximately 5,620 cubic meters of timber from the Kunlin forest, with a fair value of RMB 5,027,000 during the reporting period[123]. - The company has not logged any timber from the Hengchang forest during the review period, maintaining a total area of approximately 1,389 hectares[122]. - The total leased land for Ruixiang Forest is approximately 30,653 acres (about 2,044 hectares) as of December 31, 2023[126]. - No timber was harvested from Ruixiang Forest during the review period, with a total of 2,167 cubic meters reported for the six months ending December 31, 2022, and a fair value of zero for the harvested timber[126]. - The total leased land for Wantai Forest is approximately 42,814 acres (about 2,854 hectares) as of December 31, 2023[128]. Employee and Administrative Costs - The total employee cost during the reporting period was approximately RMB 1,900,000, compared to RMB 2,200,000 in the previous period[55]. - Administrative expenses increased by 55.6% to approximately RMB 8,400,000, up from approximately RMB 5,400,000 in the previous period, primarily due to legal and professional fees as well as depreciation[33]. - The company’s employee costs decreased from RMB 2,168,000 in the first half of 2022 to RMB 1,884,000 in the first half of 2023, a reduction of approximately 13.1%[110]. Changes in Management - Changes in the board include the appointment of Mr. Chen Weilong as CEO effective November 21, 2023[69]. - The management does not provide monthly updates to the board but ensures that necessary information is shared for performance assessment[70].

Financial Performance - For the six months ended December 31, 2023, the company's revenue was RMB 19,020,000, a decrease of 17.3% compared to RMB 23,021,000 for the same period in 2022[4] - Gross profit for the same period was RMB 3,758,000, down 26.0% from RMB 5,069,000 in the previous year[4] - The company reported a significant debt restructuring gain of RMB 202,024,000, leading to a pre-tax profit of RMB 201,423,000 compared to a loss of RMB 1,244,000 in the prior period[4] - The net profit for the period was RMB 201,421,000, a substantial recovery from a loss of RMB 1,244,000 in the previous year[4] - The total comprehensive income for the period was RMB 207,869,000, compared to a loss of RMB 14,634,000 in the same period last year[4] - The total profit for the six months ended December 31, 2023, was RMB 5,233,000, compared to RMB 10,833,000 for the same period in 2022, reflecting a decline of 51.7%[21] - The company recorded a pre-tax profit of RMB 201,423,000 for the six months ended December 31, 2023, compared to a pre-tax loss of RMB 1,244,000 for the same period in 2022[21] - The company achieved a profit of approximately RMB 201,400,000 during the reporting period, a significant turnaround from a loss of approximately RMB 1,200,000 in the previous period[51] Assets and Liabilities - The company's current assets decreased to RMB 19,160,000 from RMB 22,621,000 as of June 30, 2023[5] - Current liabilities significantly decreased to RMB 14,582,000 from RMB 442,894,000, indicating improved liquidity[5] - The company's total assets less current liabilities stood at RMB 126,856,000, a recovery from a negative position of RMB 302,251,000[5] - Total assets as of December 31, 2023, amounted to RMB 141,438,000, an increase from RMB 140,643,000 as of June 30, 2023[22] - Total liabilities decreased to RMB 124,616,000 as of December 31, 2023, from RMB 457,351,000 as of June 30, 2023, indicating a significant reduction in debt[22] - As of December 31, 2023, the company had total assets valued at approximately RMB 141,400,000 and net assets of approximately RMB 16,800,000[52] - The capital debt ratio as of December 31, 2023, was approximately 88.1%, a significant improvement from 325.2% on June 30, 2023[56] Business Operations - Forestry business revenue was RMB 5,440,000, down 36.5% from RMB 8,580,000 in the same period last year, while ginseng business revenue was RMB 13,580,000, a decrease of 6.0% from RMB 14,441,000[21] - The company successfully obtained a logging permit for 12,044.0 cubic meters in December 2023, with sales of approximately 5,620 cubic meters generating revenue of about RMB 5,400,000 during the reporting period[39] - The ginseng business generated revenue of approximately RMB 13,600,000 during the reporting period, sourced from the purchase of ginseng from suppliers[40] - The company has initiated ginseng cultivation in its existing forests, with a first phase planting of approximately 6 million ginseng seeds on 59 acres[40] - The company owns a total of 117,424 acres (approximately 7,829 hectares) of forest land in Sichuan Province, China, primarily consisting of cypress trees[38] - The company has established a long-term supply framework agreement with suppliers to ensure a stable supply of ginseng[40] Employee and Governance - As of December 31, 2023, the group had 27 employees, an increase from 16 employees as of December 31, 2022[65] - Total employee costs during the reporting period amounted to approximately RMB 1,900,000, down from RMB 2,200,000 in the previous period[65] - The board did not recommend the payment of an interim dividend for the reporting period, consistent with the previous period[66] - The company has adopted all code provisions of the Corporate Governance Code and has been compliant, with some exceptions noted[70] - The Audit Committee, consisting of three independent non-executive directors, reviewed the company's interim and annual reports[72] - The company's interim financial statements for the reporting period were reviewed by the Audit Committee[73] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[76] Corporate Changes - The company has undergone a restructuring process, with shares resuming trading on July 28, 2023, after fulfilling the listing rules[8] - The company completed a capital and debt restructuring on July 28, 2023, and its shares resumed trading on the same day[34][35] - The company changed its name from "China Bozza Development Holdings Limited" to "China Health Technology Group Holding Company Limited" effective November 27, 2023[64] - There were no significant events after the reporting period that could materially impact the company's operations and financial performance[63] - The company agreed to acquire a 52% stake in a target company for RMB 7,128,670, which will become a non-wholly owned subsidiary[59] Financial Management - The company incurred financing costs of RMB 51,000 for the six months ended December 31, 2023, down from RMB 8,967,000 in the previous year[23] - The company’s bank interest income was RMB 2,000 for the six months ended December 31, 2023, compared to RMB 3,000 for the same period in 2022[22] - Administrative expenses increased by 55.6% to approximately RMB 8,400,000 from about RMB 5,400,000 in the previous period, primarily due to legal and professional fees as well as depreciation[46] - The company recorded a debt restructuring gain of approximately RMB 202,020,000, resulting from the difference between the settled debt's book value of approximately RMB 410,170,000 and the amounts issued to creditors[48] - The company reported a net loss attributable to shareholders of RMB 201,421 thousand for the six months ended December 31, 2023, compared to a loss of RMB 1,244 thousand for the same period in 2022[31] - Trade receivables decreased from RMB 6,933 thousand as of June 30, 2023, to RMB 4,212 thousand as of December 31, 2023[14] - Trade payables decreased from RMB 99,008 thousand as of June 30, 2023, to RMB 10,840 thousand as of December 31, 2023[15] - The company recorded revenue of approximately RMB 19,000,000 during the reporting period, a decrease of 17.4% compared to RMB 23,000,000 in the previous period[43] - Gross profit for the reporting period was approximately RMB 3,800,000, down from RMB 5,100,000 in the previous period, reflecting a decline of 25.5%[44]

Financial Performance - For the fiscal year ending June 30, 2023, the revenue from continuing operations was approximately RMB 58.7 million[7]. - The loss attributable to owners for the fiscal year was approximately RMB 10.8 million, a decrease from a loss of RMB 18.9 million in the previous fiscal year[7]. - The total comprehensive expenses for the fiscal year were approximately RMB 10.1 million, down from RMB 29.3 million in the previous fiscal year[7]. - For the fiscal year 2023, the company recorded revenue from continuing operations of approximately RMB 58,700,000, a significant increase from RMB 6,800,000 in the fiscal year 2022[29]. - The gross profit for fiscal year 2023 was approximately RMB 11,500,000, with a gross profit margin of 19.6%, attributed to satisfactory revenue from ginseng business[30]. - The company incurred a loss of approximately RMB 10,800,000 in fiscal year 2023, compared to a loss of RMB 18,900,000 in fiscal year 2022[36]. - The company reported a pre-tax loss of RMB 9,374,000 for the fiscal year ending June 30, 2023, an improvement from a loss of RMB 20,383,000 in the previous fiscal year[63]. - The total comprehensive loss for the year was RMB 10,073 thousand, down from RMB 29,316 thousand in the previous year, showing a decrease of approximately 66%[200]. Assets and Liabilities - As of June 30, 2023, the company's total assets were approximately RMB 140,600,000 and net liabilities were approximately RMB 316,700,000[37]. - As of June 30, 2023, the group's net current liabilities and net liabilities were approximately RMB 420,273,000 and RMB 316,708,000, respectively[21]. - Current liabilities exceeded current assets by approximately RMB 420,273,000 on June 30, 2023[164]. - The group reported a net debt of approximately RMB 316,708,000 as of June 30, 2023[164]. - As of June 30, 2023, the company's trade and other receivables amounted to RMB 10,399,000[188]. Capital Structure and Financing - As of June 30, 2023, the capital debt ratio was approximately 325.2%, a reduction of 24.0% from 427.9% in the previous year[7]. - The company completed a restructuring agreement on July 28, 2023, issuing 466,000,000 shares at HKD 0.1288 per share, raising approximately HKD 60,000,000[28]. - The company issued 140,000,000 shares at HKD 0.55 per share to creditors, raising approximately HKD 77,000,000 as part of the creditor scheme[28]. - The company issued HKD 120,000,000 in promissory notes to creditors with varying interest rates from 0% to 6% over five years[164]. - The company reported a financing cost of approximately RMB 11,700,000 for fiscal year 2023, a decrease of about 44.9% from RMB 21,200,000 in fiscal year 2022[34]. Ginseng and Forestry Business - The company completed the approved logging volume of approximately 26,953 cubic meters, generating logging revenue of approximately RMB 25.6 million during the fiscal year[12]. - The group's ginseng business generated revenue of approximately RMB 33,100,000 in the fiscal year 2023[15]. - The company has initiated ginseng cultivation in its existing forests, completing the first phase of planting approximately 6 million ginseng plants on 59 acres[14]. - In the fiscal year 2023, the group generated revenue of approximately RMB 25.6 million from forestry management and RMB 33.1 million from ginseng business[83]. Governance and Management - The company has over 18 years of experience in banking, insurance, fund management, and securities management[69]. - The executive team includes individuals with extensive backgrounds in business planning, financial management, and auditing, with over 42 years of experience in accounting and auditing collectively[73][74]. - The company is committed to maintaining high standards of compliance and governance, as evidenced by the qualifications of its board members and executives[74]. - The board consists of ten directors, including two female directors, achieving gender diversity with a target to maintain at least one female director[135]. - The board has adopted a diversity policy, considering various factors such as gender, age, cultural background, and professional experience for board member appointments[134]. Audit and Compliance - The independent auditor's report highlighted significant uncertainty regarding the group's ability to continue as a going concern[21]. - The audit committee acknowledged the independent auditor's report and the potential impact of adjustments on the financial statements[24]. - The Audit Committee, consisting of four independent non-executive directors, oversees the financial reporting process and internal control systems as of June 30, 2023[151]. - The internal control system has been reviewed and deemed effective for the fiscal year 2023, ensuring reasonable assurance against significant misstatements and fraud[160]. Shareholder Communication - The company has implemented measures to ensure effective communication with shareholders and investors[167]. - The company has reviewed its shareholder communication policy and found it to be effective[172]. - The board believes that the group will have sufficient cash resources to meet its operational funding and financial obligations for the next twelve months[165].

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].