Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of HKD 531,504,000, representing a 97.5% increase from HKD 269,577,000 in 2022[2] - The gross profit for the same period was HKD 41,245,000, up from HKD 16,742,000, indicating a significant improvement in profitability[2] - The company incurred a total annual loss of HKD 24,286,000, a reduction from the previous year's loss of HKD 252,404,000, reflecting a 90.4% decrease in losses[3] - Basic and diluted loss per share improved to HKD 6.59 from HKD 47.39 in the prior year, showing a substantial recovery in earnings per share[3] - The total comprehensive loss for the year was HKD 23,713,000, significantly lower than HKD 261,289,000 in 2022, indicating a positive trend in overall financial health[5] - The operating loss for the year was HKD 2,764,000, compared to a loss of HKD 238,010,000 in the previous year, indicating a significant improvement of about 98.8%[22] - The net loss for the year was HKD 24,286,000, a decrease from HKD 252,404,000 in the prior year, representing an improvement of approximately 90.4%[20] Assets and Liabilities - As of December 31, 2023, the total assets of the company amounted to HKD 304,604,000, a decrease from HKD 394,125,000 in 2022, representing a decline of approximately 22.7%[11] - The company reported a total liability of HKD 368,488,000 in 2023, down from HKD 434,296,000 in 2022, indicating a reduction of about 15.1%[9] - Current liabilities were reported at HKD 364,539,000, while cash and cash equivalents stood at HKD 28,027,000, indicating a liquidity shortfall[13] - The company’s non-current assets, specifically investment properties, decreased from HKD 126,434,000 in 2022 to HKD 94,118,000 in 2023, a decline of approximately 25.5%[7] - The total equity attributable to equity holders was reported at HKD 27,120,000, unchanged from the previous year, while reserves showed a significant decrease from HKD (71,799,000) to HKD (106,800,000)[7] - The company’s total liabilities to total assets ratio improved from 1.10 in 2022 to 1.21 in 2023, indicating a higher leverage position[9] Cash Flow and Financing - The company reported a financing cost of HKD 12,001,000, which increased from HKD 10,709,000 in 2022, indicating rising financing expenses[3] - The company has acknowledged significant uncertainty regarding its ability to continue as a going concern due to its financial position and liquidity issues[13] - The company plans to negotiate debt restructuring agreements with creditors, potentially capitalizing approximately HKD 44.9 million of debt[14] - The company is currently facing challenges in seeking debt or equity financing due to high interest rates in the current debt market[96] Revenue Sources - For the fiscal year ending December 31, 2023, external customer revenue reached HKD 531,504,000, an increase from HKD 269,577,000 in the previous year, representing a growth of approximately 97.5%[20] - The revenue from the sales of materials was HKD 530,328,000 in 2023, compared to HKD 268,692,000 in 2022, indicating a growth of about 97.5%[28] - The group’s total revenue from rental income was HKD 1,176,000 in 2023, compared to HKD 885,000 in 2022, reflecting an increase of approximately 32.8%[28] Operational Efficiency - The company aims to enhance operational efficiency and reduce administrative expenses, which were HKD 16,804,000 for the year, up from HKD 10,007,000 in 2022[2] - The group reported a segment performance with materials business generating a profit of HKD 37,859,000, while property investment incurred a loss of HKD 29,667,000, leading to a total segment profit of HKD 8,192,000[20] - Administrative and operating expenses rose by 67.9% to HKD 16.8 million, primarily due to a foreign exchange loss of HKD 0.7 million and increased employee costs[61] Future Plans and Strategies - The company plans to focus on market expansion and new product development to drive future growth, although specific figures were not disclosed[2] - The company plans to leverage its existing business network and experience to provide more value-added services and transform into a comprehensive supplier of aluminum-related products and building materials[53] - The board remains confident in the future business development and will continue to seek opportunities for diversification to maximize shareholder value[56] Challenges and Risks - The company has acknowledged significant uncertainty regarding its ability to continue as a going concern due to its financial position and liquidity issues[13] - The group faced significant challenges in early 2022 due to COVID-19 and the Russia-Ukraine war, leading to a temporary halt in major business operations[54] - The company has faced challenges in obtaining adequate documentation for the financial records of certain subsidiaries, impacting the audit process[111] Compliance and Governance - The independent auditor confirmed that the financial statements reflect the group's financial position as of December 31, 2023, in accordance with Hong Kong Financial Reporting Standards[105] - The group has not yet adopted the newly issued and revised Hong Kong Financial Reporting Standards that are effective from January 1, 2023, and is currently assessing their impact[17]

Revenue and Profitability - During the six months ended 30 June 2023, the sales of materials contributed a revenue of approximately HK$242.3 million, compared to HK$0 in the previous period[18]. - The Group recorded revenue of HK$242.4 million and gross profit of HK$20.3 million for the six months ended June 30, 2023, compared to nil in the previous period[32][36]. - The gross profit for the same period was HK$20.3 million, with a gross profit margin of approximately 8.4%[90]. - Operating profit for the period was HK$13.2 million, a significant improvement from an operating loss of HK$7.2 million in the prior year[90]. - The profit before income tax was HK$8.2 million, compared to a loss of HK$7.6 million in the previous year[90]. - The net profit for the period was HK$3.4 million, a turnaround from a loss of HK$7.4 million in the same period of 2022[90]. - For the six months ended June 30, 2023, the Group reported a loss attributable to the owners of the Company of HK$2,500,000, compared to a loss of HK$7,350,000 for the same period in 2022, representing a 66% improvement[164]. Business Operations and Developments - The Group established warehouses in the PRC in early 2021 to enhance inventory management and improve response times to customer orders[10]. - In October 2022, the Group established Hangzhou Junheng Building Materials Company Limited, which has improved the financial results of the Group through customer introductions for downstream expansion[17]. - The Group's sales of materials business faced a downturn in 2022 due to significant price fluctuations in aluminum-related products caused by various external factors[12]. - The Group temporarily ceased the supply of aluminum and related products to overseas customers in 2022 while exploring other business opportunities[12]. - The establishment of Hangzhou Junheng in October 2022 significantly improved the Group's financial performance by enhancing its sales network and customer base in the construction industry in the PRC[26][33]. Financial Position and Ratios - As of June 30, 2023, the Group's gearing ratio was 121.0%, a slight increase from 120.9% at the end of 2022[44][45]. - As of June 30, 2023, the total deficit attributable to the owners of the Company was approximately HK$47.1 million, an increase from HK$44.7 million as of December 31, 2022, primarily due to operating profit during the period[47][52]. - The Group's current assets and current liabilities were approximately HK$223.5 million and HK$381.4 million respectively, compared to HK$267.7 million and HK$434.3 million as of December 31, 2022[47][52]. - The current ratio remained stable at 0.6 as of June 30, 2023, consistent with the ratio as of December 31, 2022[48][52]. - The Group's total assets amounted to HK$344.4 million, down from HK$394.1 million as of December 31, 2022[95]. - Total liabilities decreased to HK$381.4 million from HK$434.3 million at the end of 2022[97]. Cash Flow and Liquidity - The company reported a net cash generated from operating activities of HK$9,856 thousand for the six months ended June 30, 2023, compared to a net cash used in operating activities of HK$(12,752) thousand for the same period in 2022[103]. - The company’s cash and bank balances increased to HK$23.1 million from HK$8.1 million at the end of 2022[95]. - As of June 30, 2023, the Group's bank and cash balances were approximately HK$23.1 million, insufficient to cover current liabilities of approximately HK$381.4 million, indicating significant uncertainty regarding the Group's ability to continue as a going concern[115]. - The Group's financial information has been prepared on a going concern basis, relying on the financial support of the Controlling Shareholder to meet financial obligations within the next twelve months[116]. Investments and Assets - The Group's investment properties include commercial units and lands in Yingkou city, Liaoning province, PRC[19]. - The investment properties of the Group, with a carrying amount of approximately HK$120.8 million, were pledged to secure certain borrowings as of June 30, 2023[50][54]. - The company’s investment properties were valued at HK$120.8 million, down from HK$126.4 million at the end of 2022[95]. - Consideration receivable from the disposal of investment properties was HK$83,106,000 as of June 30, 2023, down from HK$86,959,000, indicating a decrease of approximately 4.4%[179]. Debt and Liabilities - The total outstanding loans and interests amounted to approximately RMB241.6 million (equivalent to approximately HK$275.1 million), reflecting the Group's obligation under a civil judgement[84]. - The maximum obligation to the Bank under a civil judgment was approximately RMB241.6 million (equivalent to HK$275.1 million) as of June 30, 2023, up from RMB233.2 million (equivalent to HK$266.8 million) at the end of 2022, marking an increase of about 3.5%[185]. - The Group does not need to make additional provisions regarding the civil judgment as it is not certain about the repayment capability of the defendants[188]. Management and Governance - The Company fulfilled the Resumption Guideline imposed by The Stock Exchange, and trading in its shares resumed on May 5, 2023[73]. - The Company is committed to working towards the resumption of trading in its shares and has been in discussions with professional advisers to formulate a viable resumption proposal[72]. - The Company must demonstrate compliance with Rule 13.24 of the Listing Rules and announce all material information for shareholders and investors[76]. Staff and Administrative Expenses - The Group's administrative and operating expenses decreased slightly from HK$7.3 million in the previous period to HK$7.1 million in the current period[34][38]. - Staff costs for the period amounted to approximately HK$2.9 million, an increase from HK$2.2 million in the previous period[59][63]. - The total staff costs, including directors' emoluments, increased to HK$2,659,000 for the six months ended June 30, 2023, compared to HK$2,141,000 in 2022, reflecting a 24% increase[152].

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佈之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公佈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。 Enviro Energy International Holdings Limited 環 能 國 際 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1102） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 環能國際控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其 附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經審 核簡明綜合業績，連同比較數字載列如下： 簡明綜合損益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 收入 5 242,428 – 銷售成本 (222,158) – ...

Financial Performance - The Group's revenue decreased by approximately 16.2% to approximately HK$269.6 million from approximately HK$321.8 million in the previous year[11]. - The loss attributable to the owners of the Company was approximately HK$257.0 million, a reduction from HK$357.8 million in the previous year, primarily due to an impairment loss on loan and interest receivables of HK$215.3 million and a fair value loss on investment properties of HK$35.8 million[12]. - For the year ended December 31, 2022, the sales of materials contributed approximately HK$268.7 million, representing 99.7% of the total revenue of the Group[29]. - The Group recorded a revenue of approximately HK$269.6 million for the Year, a decrease of 16.2% compared to HK$321.8 million in the Previous Year, primarily due to the temporary cessation of aluminum supply caused by COVID-19 and the Russian-Ukrainian War[51][55]. - The gross profit increased by HK$0.8 million to approximately HK$16.7 million, with the overall gross profit margin rising from 4.9% to 6.2%, attributed to higher margins from sales of aluminum-related products and scrap copper[53][56]. - Administrative and operating expenses decreased significantly by HK$4.9 million or 32.9%, from HK$14.9 million in the Previous Year to HK$10.0 million, mainly due to reduced staff costs and legal fees[61][65]. - The Group's rental income from properties investment amounted to approximately HK$0.9 million during the year, an increase from HK$0.8 million in the previous year[36]. Business Strategy and Operations - The Group is exploring opportunities to expand its supply of building materials in the PRC due to significant fluctuations in aluminum product prices since late 2021[13]. - In October 2022, the Group established a joint company with Hangzhou Zhongji to supply building materials for construction and renovation projects in the PRC[18]. - The Group aims to transform into a comprehensive supplier of aluminum-related products and building materials, including value-added services[43]. - The Group established warehouses in the PRC in early 2021 to enhance inventory management and respond quickly to customer demands[37]. - The management identified significant demand for building materials in Hangzhou, leveraging existing supply networks[45]. - The Group has shifted its focus to recurring domestic customers to maintain sustainable business amidst uncertainties in global aluminum prices[51][55]. - The joint venture is expected to expand the Group's sales channels and customer base in the Chinese construction industry, presenting a positive outlook[49]. Risk Management - The Group will continue to monitor risks related to COVID-19 and the political environment, implementing stringent cost and risk management measures[20]. - The Group has maintained relationships with customers and suppliers to explore collaboration opportunities for future business resumption[44]. - The Group has temporarily ceased the supply of aluminum and related products to overseas customers due to price instability, while exploring other business opportunities[34]. Financial Position and Liabilities - As of December 31, 2022, the Group reported a total deficit attributable to the owners of approximately HK$44.7 million, a significant decline from total equity of HK$221.1 million as of December 31, 2021, primarily due to operating losses during the year[95]. - The Group's net debts amounted to HK$232.3 million as of December 31, 2022, compared to HK$237.8 million in the previous year, while total capital decreased from HK$458.9 million to HK$159.5 million[95]. - The gearing ratio increased to 128.0% as of December 31, 2022, up from 51.8% in 2021, indicating a higher level of financial leverage[95]. - The current ratio fell to 0.6 as of December 31, 2022, down from 3.3 in the previous year, reflecting a decline in liquidity[99]. - The Group's bank and cash balances were approximately HK$8.1 million as of December 31, 2022, a slight decrease from HK$8.9 million in 2021, with 95% of these balances denominated in Renminbi[98]. - Total current assets and current liabilities were approximately HK$267.7 million and HK$434.3 million, respectively, as of December 31, 2022[96]. Legal and Compliance Issues - The auditor issued a qualified opinion on the recoverability of loan receivables and interest receivables, indicating potential issues with collection[74]. - The Group filed a court application to seize properties from Shenzhen Aquatic to recover loan and interest receivables, but the court ruled against the Group due to insufficient evidence[78]. - The Company has faced challenges regarding its listing status, with the Stock Exchange indicating insufficient operational levels to warrant continued listing[128][129]. - The Company received a letter from the Stock Exchange on 19 October 2021 regarding its trading suspension and the need to demonstrate compliance with Rule 13.24 of the Listing Rules[130]. - Trading in the Shares has been suspended since 9:00 a.m. on 15 September 2021, pending fulfillment of the Resumption Guidance[133]. - The Company must remedy issues causing its trading suspension and fully comply with the Listing Rules before trading can resume[132]. Impairment and Receivables - The Group recognized a fair value loss on investment properties amounting to HK$35.8 million for the Year, compared to HK$13.9 million in the Previous Year[62][66]. - The Group recognized a loss allowance of HK$0.5 million for trade receivables during the Year, reflecting management's assessment of expected credit losses[63][67]. - The Group recognized an impairment loss of HK$316.6 million on prepayments and HK$19.7 million on trade receivables during the previous year due to uncertainty in recovering outstanding balances[73]. - The Group's management expressed a lack of optimism regarding the recovery of outstanding balances from certain parties[73]. - The financial situation of Shenzhen Aquatic may have deteriorated due to its association with a former director facing criminal charges[82]. - The Group's ability to recover loan and interest receivables remains uncertain, impacting financial stability[85]. - The Group's proactive actions to recover outstanding balances have not yielded positive results, leading to significant impairment losses[73]. Employee and Operational Changes - Staff costs for the year amounted to approximately HK$5.1 million, a decrease from HK$5.9 million in the previous year, with an increase in total employees from 19 to 27[108]. - As of December 31, 2022, the Group employed a total of 27 employees in Hong Kong and China, an increase from 19 employees in the previous year[112]. - The employee costs for the year amounted to approximately HK$5.1 million, down from HK$5.9 million in the previous year[112]. Disposals and Joint Ventures - On October 31, 2022, the Company entered into agreements to sell its wholly-owned subsidiaries Sincere Venture Limited and Heryd International Trade Co., Limited for a consideration of HK$1 each[114][117]. - The Group is entitled to receive contingent consideration equivalent to 40% of the recovered balances of various receivables from the disposed subsidiaries within three years[115][118]. - A joint venture was established on October 20, 2022, with Hangzhou Zhongji, where the Group holds a 60% interest, focusing on the supply of building materials[120][125]. - The joint venture commenced operations in October 2022 and has secured multiple sales contracts for construction and renovation projects in China[121]. - The Company aims to enhance its sales networks and customer base in the construction industry in China through the joint venture[122]. - The Disposals were completed in December 2022, and the relevant subsidiaries have ceased to be part of the Company[187].

Revenue and Profitability - During the six months ended June 30, 2022, the Group did not generate any revenue from sales of materials, compared to HK$226.5 million in the previous period[13]. - The Group did not record any revenue or gross profit during the Period, compared to HK$226.5 million and HK$8.0 million in the previous period[38]. - Revenue for the six months ended June 30, 2022, was HK$0, compared to HK$226,516,000 in the same period of 2021, representing a decline of 100%[100]. - Gross profit for the period was HK$0, down from HK$7,978,000 in the previous year, indicating a significant decrease[100]. - The loss for the Period attributable to the owners of the Company was approximately HK$7.4 million, compared to a profit of HK$4.0 million in the previous period[47]. - The company reported a loss attributable to owners of approximately HK$7.4 million for the period, compared to a profit of HK$4 million in the same period last year[52]. - Total comprehensive loss for the period attributable to owners was HK$13,437,000, down from a comprehensive income of HK$8,109,000 in 2021[103]. - The operating loss for the period was HK$7,247,000, compared to an operating profit of HK$4,938,000 in 2021, reflecting a negative shift in operational performance[100]. Financial Position - As of June 30, 2022, the Group's equity attributable to owners decreased to approximately HK$207.7 million from HK$222.1 million as of December 31, 2021, primarily due to operating losses during the period[57]. - The Group's current assets and current liabilities were approximately HK$361.5 million and HK$111.8 million respectively, compared to HK$381.9 million and HK$117.4 million as of December 31, 2021[59]. - The Group's gearing ratio was 116.9% as of June 30, 2022, up from 107.6% as of December 31, 2021[55]. - The debt to equity ratio and net debt to equity ratio were 117.4% and 116.9% respectively as of June 30, 2022, compared to 111.6% and 107.6% as of December 31, 2021[56]. - The Group had bank and cash balances of approximately HK$1.1 million as of June 30, 2022, down from HK$8.9 million as of December 31, 2021[61]. - The current ratio, calculated as current assets over current liabilities, was 3.2 as of June 30, 2022, compared to 3.3 as of December 31, 2021[61]. - As of June 30, 2022, the Group's bank and cash balance was approximately HK$1.1 million, insufficient to cover current liabilities of approximately HK$111.8 million, raising significant doubts about the group's ability to continue as a going concern[129]. Operational Challenges - The Group experienced significant price fluctuations in aluminum-related products, nearly 100%, due to factors such as COVID-19 and the Russian-Ukrainian War[14]. - The Group temporarily ceased the supply of aluminum and related products while exploring other business opportunities[18]. - Due to COVID-19 and the Russian-Ukrainian War, the Group faced significant price fluctuations in aluminum and related products, leading to a temporary suspension of supply[29]. - The Group's sales of materials business faced a downturn in 2019 and 2020, prompting a strategic refinement of operations[12]. - The Group has been negotiating with customers to resume supplying aluminum-related products as prices appear to be stabilizing[19]. - The Group has resumed negotiations with customers to supply building materials and aluminum-related products as aluminum prices stabilized in the second half of 2022[30]. Strategic Initiatives - The establishment of warehouses in the PRC in early 2021 enhanced the Group's capability to respond to customer demand and act as a one-stop supplier[21]. - The Group aims to leverage its experience in the aluminum industry to attract international manufacturers interested in competitive pricing from the PRC[22]. - The Group aims to transform into a comprehensive supplier of aluminum-related products and building materials, enhancing its value-added services[28]. - The Group continues to explore other business opportunities based on its existing supply network in building materials[31]. - In June 2022, the Group entered into a sale and purchase agreement to acquire Hangzhou Zhongji, which provides construction and renovation services in China[31]. - The Proposed Acquisition of Hangzhou Zhongji is expected to improve the profitability of both Hangzhou Zhongji and the Group as a whole[36]. Compliance and Governance - The company has been notified by the Stock Exchange that it failed to maintain a sufficient level of operations as required under Rule 13.24, which jeopardizes its continued listing[81]. - The company is required to demonstrate compliance with Rule 13.24 and announce all material information for shareholders and investors to assess its position[84]. - The company is actively working on a resumption plan to address the issues causing its trading suspension and is in discussions with professional advisers[85]. - The recoverability of outstanding receivables is under investigation, with measures being taken to explore legal actions and debt restructuring proposals[90]. - The company is committed to addressing the outstanding receivables and is evaluating the feasibility of litigation against counterparties[90]. Taxation and Regulatory Matters - The applicable Hong Kong Profits Tax rate for the qualifying group entity is 8.25% on the first HK$2.0 million of assessable profits and 16.5% on profits above that threshold[165]. - The Corporate Income Tax (CIT) rate applicable to entities in Mainland China is 25% for the six months ended June 30, 2022, consistent with the previous year[166]. - There were no material unrecognized deferred tax assets and liabilities as of June 30, 2022, remaining consistent with December 31, 2021[167]. Staff and Management - Administrative and operating expenses increased by HK$3.2 million from HK$4.1 million in the previous period to HK$7.3 million in the current period, primarily due to a rise in legal and professional fees[46]. - The total staff costs for the period amounted to approximately HK$2.2 million, down from HK$3.2 million in the previous period[71]. - Key management personnel compensation for the six months ended June 30, 2022, was approximately HK$1,710,000, slightly up from HK$1,687,000 for the same period in 2021, indicating an increase of about 1.4%[197]. Asset Management - The Group's trade receivables as of June 30, 2022, amounted to HK$22,665,000, down from HK$24,099,000 as of December 31, 2021, indicating a decrease of approximately 5.93%[183]. - The net trade receivables after impairment provisions were HK$2,418,000 as of June 30, 2022, compared to HK$3,179,000 as of December 31, 2021, reflecting a decline of about 24.05%[183]. - The provision for impairment of trade receivables was HK$20,247,000 as of June 30, 2022, slightly down from HK$20,920,000 as of December 31, 2021[183]. - The company's deposits for the purchase of building materials amounted to HK$311,079,000 as of June 30, 2022, down from HK$321,208,000 as of December 31, 2021, reflecting a decrease of about 3.5%[187]. - Total trade payables decreased to HK$73,761,000 as of June 30, 2022, from HK$83,313,000 as of December 31, 2021, representing a decline of approximately 11.5%[190]. - The non-current other borrowings secured by the company's investment properties were HK$209,164,000 as of June 30, 2022, compared to HK$216,324,000 as of December 31, 2021, showing a reduction of about 3.3%[195].

Financial Performance - The Group's revenue increased by approximately 495.4% to approximately HK$321.8 million from approximately HK$54.1 million for the year ended 31 December 2020[10]. - For the year ended December 31, 2021, the Group recorded a revenue of approximately HK$321.8 million, representing a significant increase of 495.4% compared to HK$54.1 million in the previous year[42]. - Sales of materials contributed approximately HK$321.1 million to total revenue, accounting for 99.8% of total revenue, up from 99.1% in the previous year[26]. - The Group's gross profit increased to approximately HK$15.9 million, with a gross profit margin rising from 1.1% in the previous year to 4.9%[43]. - Gross profit rose to approximately HK$15.9 million, an increase of HK$15.3 million from HK$0.6 million in the Previous Year, with an overall gross margin improvement from 1.1% to 4.9%[49]. - The loss attributable to the owners of the Company was approximately HK$357.8 million, primarily due to impairment losses of receivables amounting to HK$340.3 million during the Year[11]. - The loss attributable to the owners of the Company for the Year was approximately HK$357.8 million, compared to HK$25.8 million in the Previous Year[62]. - Fair value loss on investment properties was recorded at HK$13.9 million for the Year, compared to HK$2.0 million in the Previous Year[52]. Operational Strategy - The Company aims to diversify its business and broaden income sources through efficient resource allocation[18]. - The Group plans to transform into a comprehensive supplier of aluminum-related products and building materials, offering more value-added services[35]. - The Company is focused on formulating business plans and strategies for future development to capture new business opportunities[18]. - The Group established warehouses in the PRC in early 2021 to enhance inventory management and respond quickly to customer demands[33]. - The Group received recurring orders for the supply of copper materials in the PRC, contributing to revenue growth[10]. Market Conditions - Strong demand and tight capacity in freight markets are expected to persist, with shipping and logistics prices facing inflationary pressure in 2022[12]. - Price volatility on industrial metals and other commodities adds uncertainty due to geopolitical tensions, particularly from Russia's invasion of Ukraine[12]. - The Group is closely monitoring the impact of COVID-19 and global shipping cost increases on its operations and financial position[36]. - The Group faces significant economic risks due to its dependence on global economic conditions, particularly in the United States, Mainland China, and Hong Kong, which can impact financial performance[109]. - The Group's existing businesses operate in a competitive environment, putting pressure on revenue and profitability, necessitating efforts to enlarge market share and enhance competitiveness[110]. Risk Management - The Group will continue to monitor risks related to COVID-19 and the political environment, implementing stringent cost and risk management measures[13]. - The Group is exposed to financial risks including foreign currency, interest rate, equity price, liquidity, and credit risk in its ordinary course of business[113]. - The Group is exposed to environmental risks such as pollution and mechanical breakdowns, which can disrupt operations and adversely affect financial performance[111]. - The Group relies on a small number of customers, limiting its bargaining power and potentially affecting financial performance if customer base expansion does not occur[112]. - The Group's proactive measures to recover outstanding balances from counterparties have not yielded optimistic results, leading to significant impairment recognition[61]. Corporate Governance - The Board comprises six directors, including three executive directors and three independent non-executive directors, ensuring a strong element of independence[129]. - The Board meets regularly, at least four times a year, to approve and monitor the Group's business strategies and policies[140]. - The Company Secretary ensures compliance with corporate governance developments and the Group's obligations under the Listing Rules[141]. - The Company has received annual written confirmations of independence from all independent non-executive directors, meeting the independence guidelines[142]. - The Audit Committee, comprising three independent non-executive directors, met three times during the year to review the consolidated financial statements and interim reports[165]. Financial Position - As of December 31, 2021, the Group's gearing ratio was 107.6%, significantly up from 36.2% as of December 31, 2020[68]. - The debt-to-equity ratio increased to 111.6% as of December 31, 2021, compared to 36.9% in the previous year[70]. - Equity attributable to the owners of the Company decreased to approximately HK$221.1 million from HK$569.7 million due to operating losses during the year[71]. - Current assets and current liabilities as of December 31, 2021, were approximately HK$381.9 million and HK$117.4 million, respectively, compared to HK$696.7 million and HK$99.0 million in the previous year[71]. - The Group's current ratio was 3.3 as of December 31, 2021, down from 7.0 in the previous year[76]. Compliance and Regulations - The Group has complied with all applicable laws and regulations, with no material breaches reported during the year ended December 31, 2021[119]. - The Company received a letter from the Stock Exchange on 19 October 2021, outlining the resumption guidance that requires the Company to remedy issues causing its trading suspension and comply with Listing Rules before trading can resume[93]. - The Company was informed on 18 December 2020 that it failed to meet the requirements of Listing Rule 13.24, which necessitates sufficient business operations to ensure continued listing[94]. Human Resources - Staff costs for the year amounted to approximately HK$5.9 million, down from HK$8.5 million in the previous year[82]. - Administrative and operating expenses decreased by HK$3.1 million or 17.2% to HK$14.9 million, mainly due to the absence of depreciation of right-of-use assets[46]. - Administrative and operating expenses decreased by 17.2% to HK$14.9 million from HK$18.0 million in the Previous Year, primarily due to the absence of depreciation on right-of-use assets and reduced employee costs[51].

Revenue and Sales Performance - During the six months ended June 30, 2021, the sales of materials generated revenue of approximately HK$226.5 million, a significant increase from HK$5.8 million in the previous period, representing 100.0% of total revenue (previous period: 95.6%) [12] - The significant increase in sales was attributed to recurring orders for copper materials from reputable metal companies in the PRC [13] - Revenue for the six months ended June 30, 2021, was HK$226,516,000, a significant increase from HK$6,093,000 in the same period of 2020, representing a growth of approximately 3,617% [90] - For the six months ended June 30, 2021, total revenue from contracts with customers was HK$226,516,000, a significant increase from HK$6,093,000 in the same period of 2020 [144] - Segment revenue from materials sales was HK$226,516,000, while rental income was HK$0, compared to HK$270,000 in the previous year [144] Profitability and Financial Performance - Profit attributable to the owners of the Company was approximately HK$4.0 million, a turnaround from a loss of HK$8.4 million in the previous Period [39][44] - The company reported a profit of HK$4,001,000 for the six months ended June 30, 2021, compared to a loss of HK$8,372,000 in the same period of 2020, indicating a significant turnaround in performance [92] - Gross profit for the same period was HK$7,978,000, compared to HK$321,000 in 2020, indicating a substantial improvement [90] - Operating profit increased to HK$4,938,000 in 2021 from HK$166,000 in 2020, showcasing a positive trend in operational efficiency [90] - Other comprehensive income for the period was HK$4,108,000, a recovery from a loss of HK$10,308,000 in the previous year, contributing to total comprehensive income of HK$8,109,000 [92] Expenses and Cost Management - Selling and distribution expenses amounted to approximately HK$3.1 million, primarily due to freight and transportation costs for sales of aluminum-related products and scrap copper [36][42] - Administrative and operating expenses decreased by HK$3.7 million or 47.2% to HK$4.1 million, mainly due to the absence of depreciation of right-of-use assets and a reduction in staff costs [38][43] - Staff costs for the period amounted to approximately HK$3.2 million, a decrease from HK$4.0 million in the previous period [66] Assets and Liabilities - Total assets increased to HK$1,009,688,000 as of June 30, 2021, up from HK$879,226,000 at the end of 2020, reflecting a growth of approximately 14.8% [95] - Current assets rose to HK$825,199,000, compared to HK$696,674,000 at the end of 2020, marking an increase of about 18.4% [95] - Total liabilities as of June 30, 2021, were HK$431,867,000, with unallocated liabilities of HK$355,229,000 [4] - The Group's gearing ratio was 50.7%, up from 36.2% as of December 31, 2020 [48] - The debt to equity ratio was 39.1% and the net debt to equity ratio was 49.1% as of June 30, 2021, compared to 36.9% and 36.2% respectively at the end of 2020 [49] Trade Receivables and Cash Flow - Trade receivables surged to HK$112,647,000 from HK$22,150,000, indicating a substantial increase of approximately 408% [95] - The ageing analysis shows that trade receivables aged 0-30 days rose to HK$44,281,000 from HK$2,785,000, a substantial increase of 1495% [176] - The net cash used in operating activities for the same period was HK$85,309,000, compared to a net cash generated of HK$9,000,000 in the previous year [105] - The company generated HK$96,402,000 from financing activities, significantly improving from a net cash used of HK$10,579,000 in the prior year [105] Corporate Developments and Future Plans - The Group plans to transform into a comprehensive supplier of aluminum-related products and building materials, leveraging its experience and business networks [22] - The Group established warehouses in the PRC in early 2021 to enhance inventory management, allowing for timely responses to customer orders and providing inventory management services [11] - The Group began supplying aluminum-related products, including copper, magnesium, and silicon, which are essential for aluminum alloy production [21] - The Group's focus on international aluminum products manufacturers is driven by competitive pricing from the PRC [21] Legal and Compliance Matters - The outcome of the Second Review regarding the Company's listing status remains uncertain as of the date of the report [73] - The Company is currently assessing the feasibility of commencing litigation to recover outstanding receivables, which are contingent upon the completion of a recent legal nullification process [85] - The Company has regained legal ownership and company chop of Qianhai Shitong after the completion of the nullification process in July 2021 [79] - The shareholding in Qianhai Shitong was diluted from 100% to 25% due to unauthorized issuance of new shares, which has been reported and addressed legally [78] Shareholder and Equity Information - The equity attributable to owners of the Company increased to approximately HK$577.8 million, primarily due to operating profits during the Period [50] - The total equity attributable to owners increased to approximately HK$577.8 million as of June 30, 2021, compared to HK$569.7 million on December 31, 2020 [53] - Basic and diluted earnings per share improved to HK$0.75 from a loss of HK$1.85 per share in 2020 [90] - The Group did not declare any interim dividend for the six months ended June 30, 2021, consistent with the decision for the same period in 2020 [159]

Financial Performance - For the year ended December 31, 2020, the Group recorded consolidated revenue of approximately HK$54,054,000, a decrease of 5.0% from HK$56,883,000 in 2019[11] - Loss attributable to owners of the Company was approximately HK$25,776,000, compared to HK$25,086,000 in 2019, with a basic loss per share of HK5.40 cent[11] - The sale of materials business generated revenue of approximately HK$53,591,000 for the year ended December 31, 2020, a decrease of 5.3% from approximately HK$56,582,000 in 2019, representing 99.1% of total revenue[39] - The gross profit from the sale of materials business was approximately HK$136,000 for the year ended December 31, 2020, down from approximately HK$196,000 in 2019, contributing 22.7% of total gross profit[39] - The Group's gross profit for the year ended December 31, 2020, was approximately HK$599,000, with a gross profit margin of 1.1%, an increase of approximately 20.5% from HK$497,000 in 2019[56] - The net loss attributable to owners of the Company for the year ended December 31, 2020, was approximately HK$25,776,000, an increase of approximately HK$690,000 compared to HK$25,086,000 in 2019[61] Property Investment - The Group's rental income from properties investment amounted to approximately HK$463,000, an increase from HK$301,000 in 2019[23] - The properties investment segment recorded a valuation loss of approximately HK$2,023,000, with an overall loss of approximately HK$3,286,000 for the year[23] - The Group's property investment segment recorded a valuation loss of approximately HK$2,023,000 for the year ended December 31, 2020, compared to a loss of HK$2,270,000 in 2019, indicating an improvement in valuation loss by 10.9%[26] - The Group's property investment segment reported an overall loss of approximately HK$3,286,000 for the year ended December 31, 2020, compared to a loss of HK$3,215,000 in 2019[26] COVID-19 Impact - The COVID-19 pandemic has created a highly uncertain outlook for the upcoming financial year[12] - The COVID-19 outbreak significantly impacted the Group's operations, particularly in the first half of 2020, leading to a contraction in the sale of materials business due to temporary closures and transportation restrictions[42] - To mitigate the impact of COVID-19, the Group diversified its product offerings in the sale of materials business starting in the second half of 2020[42] - The financial performance and revenue from the sale of materials business are expected to improve in the future as the COVID-19 situation stabilizes[48] Management Strategy - The management intends to improve financial performance and explore investment opportunities in property investment and other segments with good prospects[12] - The Group will take a prudent approach to face challenges and aims for sustainable growth to maximize shareholder benefits[12] - The Board is confident in future business development and will seek investment opportunities to diversify revenue streams and strengthen financial position[52] - The Group will continue to implement cost-cutting measures to improve operating performance amid challenging business conditions[47] Current Assets and Liabilities - The Group's current assets as of December 31, 2020, were approximately HK$696,674,000, with a current ratio of about 7.04, significantly up from 2.33 in 2019[62] - Current liabilities decreased by 63.7% to approximately HK$98,989,000 as of December 31, 2020, primarily due to the reclassification of borrowings[63] - As of December 31, 2020, the group's current assets amounted to approximately HK$696,674,000, an increase from approximately HK$634,034,000 as of December 31, 2019[66] - The current liabilities decreased by 63.7% to approximately HK$98,989,000 as of December 31, 2020, down from approximately HK$272,344,000 in the previous year[67] Corporate Governance - The Company complied with all applicable Corporate Governance Code provisions for the year ended December 31, 2020[137] - The Board of Directors consisted of six members, including three Executive Directors and three Independent Non-executive Directors, ensuring a strong element of independence[139] - The Company has ensured compliance with the Code Provision A.2.1, separating the roles of Chairman and Chief Executive Officer[158] - The Company emphasizes integrity, transparency, and accountability in its corporate governance practices, which are fundamental to enhancing shareholder value[136] Legal and Compliance Issues - The company discovered unauthorized execution of a corporate guarantee by its subsidiaries for a loan amounting to approximately RMB 18,000,000, which was granted without proper authorization[87] - A PRC court granted a judgment on July 8, 2020, stating that the enforcement of the arbitration award against the subsidiaries has ceased to have effect, resolving a significant legal issue[89] - The Market Supervision Administration is currently investigating the suspected forgeries, and the company has taken steps to nullify the unauthorized shareholders' resolution[95] - The company aims to restore its 100% shareholding in the affected subsidiary following the invalidation of the suspected forgeries[95] Employee and Operational Information - The Group had 16 employees as of December 31, 2020, a decrease from 18 employees in 2019[110] - The Group maintained good relationships with employees, customers, and suppliers, with no significant disputes reported during the year ended December 31, 2020[133] Risk Management - The Group is facing economic risks due to global economic conditions and the impact of COVID-19 on business operations[118] - The Group is exposed to financial risks related to foreign currency, interest rates, equity prices, liquidity, and credit risk[127] - The management policy to mitigate market risk includes efforts to enlarge market share and enhance competitiveness[119]

Financial Performance - For the six months ended June 30, 2020, the Group's rental income was approximately HK$270,000, a decrease of 87% compared to HK$2,070,000 for the same period in 2019[16]. - The profit from the properties investment segment for the six months ended June 30, 2020, was approximately HK$178,000, down 87% from HK$1,401,000 in the previous year[16]. - The Group has not recorded any revenue or profit from investment holding for the six months ended June 30, 2020, consistent with the same period in 2019[17]. - During the six months ended June 30, 2020, the building materials trading segment generated revenue of approximately HK$5,823,000, a decrease of 86.8% compared to approximately HK$44,153,000 for the same period in 2019, representing 95.6% of total revenue[27][31][33]. - For the six months ended June 30, 2020, the Group recorded a consolidated revenue of approximately HK$6,093,000, representing a decrease of 86.8% compared to HK$46,223,000 for the same period in 2019[42]. - The Group's gross profit for the same period was approximately HK$321,000, with a gross profit margin of 5.3%, resulting in a decrease of approximately 85.3% from HK$2,182,000 in the previous year[43]. - The net loss for the six months ended June 30, 2020, was approximately HK$8,372,000, a reduction of about 24.2% from HK$11,049,000 for the same period in 2019[44]. - The total comprehensive loss for the period attributable to owners was HK$18,680,000, compared to HK$11,591,000 in the previous year[87]. - The company reported a comprehensive loss of HK$18,680,000 for the six months ended June 30, 2020, compared to a loss of HK$8,621,000 for the same period in 2019[96]. Business Segments - The Group's overall business segments are facing challenges due to the economic conditions in the region[16]. - The building materials trading business commenced in the second half of 2017, sourcing materials from suppliers in the PRC[18]. - The Group's building materials include aluminum, steel products, timber logs, and tiles, primarily used in construction projects[19]. - The Group's strategy includes pursuing quality suppliers and expanding marketing channels to boost business and profit growth[32]. - For the six months ended June 30, 2020, segment revenue totaled HK$6,093,000, with properties investment contributing HK$270,000 and trading business contributing HK$5,823,000[110]. - The gross profit for the same period was HK$321,000, with properties investment generating HK$270,000 and trading business generating HK$51,000[110]. Economic Impact - The economic development in Liaoning Province did not meet expectations, adversely affecting the Group's investment properties business[16]. - The persistent depressed state in the property market in Liaoning Province has negatively impacted property demand in the region[16]. - The significant decline in sales revenue was primarily due to the COVID-19 outbreak, which led to temporary closures of suppliers' production facilities and transportation restrictions[31][33]. - The Group anticipates that the financial performance and revenue from the building materials trading business will improve in the second half of 2020 as the COVID-19 situation in the PRC comes under control[35]. - The market for building material trading in the Southeast Region of the PRC is expected to grow due to increased demand for properties in the Greater Bay Area[36]. Financial Position - The Group's current assets as of June 30, 2020, were approximately HK$628,986,000, with a current ratio of about 2.23[48]. - Current liabilities increased by 3.4% to approximately HK$281,554,000, primarily due to an increase in former shareholders' loans[49]. - As of June 30, 2020, the equity attributable to owners of the Company amounted to approximately HK$519,593,000, down from approximately HK$538,273,000 at the end of 2019[50]. - The debt to equity ratio was approximately 35% as of June 30, 2020, compared to 36% at the end of 2019[51]. - The Group plans to explore new financing channels, including bank loans and share placements, to support business expansion and improve financial stability[40]. - The company had bank borrowings of HK$177,319,000 as of June 30, 2020, slightly down from HK$180,526,000 at the end of 2019[90]. - The company’s gearing ratio was 35%, slightly down from 36% as of December 31, 2019[72]. Management and Governance - The Board is actively looking for investment opportunities in new businesses to diversify revenue streams and strengthen the Group's financial position[38]. - The company discovered suspected forgeries related to unauthorized use of company chops and signatures after the reporting period[58]. - The company has initiated actions to nullify the unauthorized shareholder resolution and is cooperating with the Market Supervision Administration for investigation[60]. - The management believes the group has sufficient financial resources to meet its ongoing operational needs[55]. - The company is considering engaging a PRC legal adviser to handle the suspected forgery matter if necessary[182]. Employee and Administrative Expenses - The Group's administrative expenses included staff costs of approximately HK$4,047,000, showing a slight decrease from HK$4,331,000 in the previous year[44]. - Key management compensation, including accrued bonuses, amounted to approximately HK$2,466,000 for the six months ended June 30, 2020, compared to HK$2,659,000 for the same period in 2019, reflecting a decrease of about 7.3%[171]. - The company had approximately 28 employees as of June 30, 2020, unchanged from the previous year[77]. Legal and Compliance Issues - A corporate guarantee for a loan of approximately RMB 18,000,000 was executed without authorization, leading to arbitration proceedings against the subsidiaries[66]. - The PRC Court granted a judgment on July 8, 2020, stating that the enforcement of the arbitration award against the subsidiaries has ceased to have effect[68]. - The company has not adopted any new standards or interpretations that are not yet effective for the current accounting period, indicating stability in accounting practices[100]. - The company has reclassified certain comparative figures to conform to the current period presentation[176]. Shareholding and Corporate Structure - Li Gang holds 85,704,866 shares, representing approximately 18.94% of the total shareholding[194]. - Pan Lihui holds 33,112,281 shares, representing approximately 7.32% of the total shareholding[194]. - As of June 30, 2020, no other directors or chief executives had registered interests in the company's shares or debentures[197]. - The 2003 and 2011 Share Option Schemes aim to motivate participants by providing them with a personal interest in the company's share capital[198].

Financial Performance - For the year ended December 31, 2019, the Group recorded a consolidated revenue of approximately HK$56,883,000, a decrease of 94% from the previous year (2018: approximately HK$885,871,000) [14] - Loss attributable to owners of the Company was approximately HK$25,086,000, compared to a loss of approximately HK$14,531,000 in 2018, resulting in a basic loss per share of HK5.55 cent (2018: HK3.21 cent) [14] - The decrease in loss was mainly due to a reduction in other gains, including a one-off gain on disposal of subsidiaries of approximately HK$9,203,000 and a decrease in interest income from approximately HK$21,755,000 in 2018 to approximately HK$15,735,000 in 2019 [14] - For the year ended 31 December 2019, the Group's rental income decreased to approximately HK$301,000 from approximately HK$4,270,000 in 2018, representing a decline of about 92.9% [25] - The trading of building materials segment generated revenue of approximately HK$56,582,000, a significant decrease of approximately 93.6% from approximately HK$881,601,000 in 2018, contributing 99.5% of total revenue [29][35] - The gross profit from the trading of building materials was approximately HK$196,000, down from approximately HK$4,890,000 in 2018, representing 39.4% of total gross profit [29] - The Group's gross profit for the year was approximately HK$497,000, with a gross profit margin of 0.9%, reflecting a decrease of approximately 94.6% from HK$9,160,000 in 2018 [52] - The net loss attributable to owners of the Company was approximately HK$25,086,000 for the year, an increase of approximately HK$10,555,000 compared to a net loss of HK$14,531,000 in 2018 [54] Business Strategy and Future Plans - Management intends to improve the financial performance of existing businesses and explore investment opportunities in property investment, investment holding, and trading of building materials [15] - The Group aims to bring substantial value to shareholders through new segments with good prospects [15] - The Group plans to explore new bank borrowings and fundraising options, including rights issues and placements, to support the expansion of the building materials trading business [37] - The Group aims to seize new property investment opportunities in Shenzhen City and the Greater Bay Area, leveraging the Chairman's extensive business network [38] - The Group plans to continue exploring strategic investment opportunities to diversify revenue sources and strengthen financial conditions [48] Market Conditions and Risks - The Group has not acquired any investment properties in Northeast China since 2017 due to the depressed property market in Liaoning Province [38] - The Board remains cautiously optimistic about steady growth in the property investment and building materials trading markets in the Southeast Region of the PRC [45] - The Group will implement cost-cutting measures to improve operating performance amid challenges such as the US-China trade tension and the coronavirus outbreak [44] - The Group is exposed to economic risks from global financial conditions, particularly in the US, Mainland China, and Hong Kong [100] - The trading business of building materials operates in a competitive environment, impacting revenue and profitability [101] - The Group faces environmental risks such as pollution and adverse weather conditions that could disrupt operations [109] - The reliance on a small number of customers limits the Group's bargaining power and may affect financial performance [110] - Financial risks related to foreign currency, interest rates, and liquidity are present in the Group's ordinary course of business [111] - The Group faced inherent risks such as pollution and equipment failure, which could adversely affect financial performance [113] Corporate Governance - The Company maintained a high standard of corporate governance, ensuring integrity, transparency, and accountability [123] - The Board of Directors met regularly, with attendance records indicating active participation in governance [132] - The Company adopted a code of conduct for directors' securities transactions, confirming compliance during the year [125] - The Board comprises six directors, including three executive directors and three independent non-executive directors [126] - The Board met the requirements of the Listing Rules by appointing at least three Independent Non-executive Directors (INEDs), with more than one-third of the Board's composition being INEDs [138] - The Company Secretary ensured compliance with the continuing obligations of listed issuers under various regulations, including the Listing Rules and the Companies Ordinance [137] - The roles of Chairman and Chief Executive Officer are separated, with Mr. Li Sen as Chairman and Mr. Wei Junqing as CEO, complying with corporate governance standards [140] - Independent Non-executive Directors are appointed for a term of twelve months and are subject to retirement by rotation and re-election [145] - The Company provided relevant training and updates to Directors to keep them informed of market developments and regulatory changes [150] Audit and Compliance - The independent auditor provided audit and non-audit services to the Company during the year ended 31 December 2019, with remuneration details specified [153] - The Company has implemented appropriate insurance coverage for Directors' liability [139] - The Audit Committee met three times during the year to review the consolidated financial statements for the year ended December 31, 2018, and the unaudited condensed consolidated financial information for the six months ended June 30, 2019 [161] - The Remuneration Committee held one meeting during the year to review and approve the remuneration packages of Directors, ensuring no individual director participated in decisions regarding their own remuneration [166] - The Nomination Committee reviewed the diversity of the Board during the year and will continue to assess the Board Diversity Policy to ensure effective implementation [172] Employee and Operational Information - The Group had 18 employees as of December 31, 2019, down from 21 in 2018 [98] - There were no significant disputes with employees, customers, or suppliers during the year ended December 31, 2019 [118] - The Company acknowledges its responsibility for preparing consolidated financial statements in compliance with Hong Kong Financial Reporting Standards [192]