Financial Performance - For the six months ended December 31, 2024, the company reported revenue of HKD 29,799,000, a decrease of 26.8% compared to HKD 40,558,000 in the same period of 2023[4] - The gross profit for the same period was HKD 6,411,000, down 30.4% from HKD 9,203,000 year-on-year[4] - The operating loss narrowed to HKD 15,712,000, significantly improved from a loss of HKD 50,090,000 in the previous year, indicating a reduction of 68.6%[4] - The net loss for the period was HKD 16,554,000, compared to a net loss of HKD 45,292,000 in the prior year, reflecting a 63.5% improvement[4] - The total comprehensive loss for the period was HKD 19,000,000, compared to HKD 40,301,000 in the previous year, indicating a reduction of 52.8%[4] - The total segment loss for the six months ended December 31, 2024, was HKD (3,902,000), significantly improved from HKD (41,003,000) in the previous year[31] - The company reported a basic and diluted loss per share of HKD 0.03, improved from HKD 0.11 in the same period last year[5] - The group’s net asset value decreased to approximately HKD 400,022,000 as of December 31, 2024, from HKD 491,022,000 as of June 30, 2024[94] Cash Flow and Liquidity - For the six months ended December 31, 2024, the company reported a net cash outflow from operating activities of HKD 1,213,000, a significant improvement from HKD 12,672,000 in the same period of 2023[12] - The company has implemented cost-saving measures to improve liquidity and cash flow, ensuring sufficient cash resources for future operational needs[18] - The cash flow forecast indicates that the company will have adequate cash resources to meet its operational funding and financing needs for at least the next twelve months[18] - The company’s cash and cash equivalents at the end of the period were HKD 16,626,000, compared to a negative balance of HKD 2,303,000 in the previous year[12] - The company raised borrowings amounting to HKD 21,080,000, compared to HKD 6,200,000 in the previous year, while repayments of borrowings were HKD 21,407,000, up from HKD 1,363,000[12] - The cash and cash equivalents decreased by HKD 3,647,000, an improvement from a decrease of HKD 7,958,000 in the prior year[12] Assets and Liabilities - The company's total assets decreased to HKD 507,696,000 from HKD 530,631,000, a decline of 4.3%[9] - Current liabilities increased to HKD 134,961,000 from HKD 130,767,000, representing a rise of 3.4%[9] - The group’s total assets as of December 31, 2024, were approximately HKD 642,657,000, down from HKD 661,398,000 as of June 30, 2024[94] - The total liabilities for the segments as of June 30, 2024, were HKD 71,544,000, compared to HKD 69,307,000 as of December 31, 2023[30] - Accounts payable as of December 31, 2024, were HKD 5,174,000, a decrease from HKD 6,448,000 as of June 30, 2024[60] - Other payables and accrued expenses increased to HKD 11,871,000 as of December 31, 2024, from HKD 8,683,000 as of June 30, 2024[60] Revenue Sources - The revenue from external customers for the six months ended December 31, 2024, was HKD 29,799,000, a decrease from HKD 40,558,000 for the same period in 2023[30] - The revenue from the sale of recycled metals was HKD 2,831,000 for the six months ended December 31, 2024[32] - The automotive and automotive parts business generated revenues of approximately HKD 22,507,000 for the six months ended December 31, 2024, down from HKD 30,418,000 in the previous year[73] - Rental income from parking spaces decreased to approximately HKD 1,767,000 for the six months ended December 31, 2024, compared to HKD 1,976,000 in 2023[77] - Loan interest income from lending operations was approximately HKD 191,000 for the six months ended December 31, 2024, up from HKD 109,000 in the same period of 2023[78] Fair Value Measurements - The fair value gain from investment properties was HKD 1,335,000, a recovery from a loss of HKD 11,400,000 in the previous year[4] - The fair value of biological assets was reported at HKD 182,620,000, with total recurring fair value measurements amounting to HKD 375,759,000[22] - The fair value of biological assets increased from HKD 182,620,000 on December 31, 2023, to HKD 190,958,000 on June 30, 2024[27] - The fair value of investment properties in Hong Kong decreased from HKD 192,855,000 to HKD 190,000,000 during the same period[27] - The fair value of industrial land and buildings in Dongguan was approximately HKD 48,528,000 as of December 31, 2024, down from HKD 50,498,000 as of June 30, 2024[70] Corporate Governance and Compliance - The company complied with the corporate governance code, with the exception of the separation of roles between the chairman and CEO[106] - The audit committee reviewed the interim report for the six months ended December 31, 2024, which included unaudited financial performance[109] Strategic Initiatives - The company continues to focus on its core business areas, including the trading of recycled metals and financial services, to enhance its market position[13] - The company plans to exit the Hong Kong metal recycling market and explore opportunities in other countries due to increasing procurement difficulties and rising costs[72] - The group has identified a business development opportunity related to rare earth projects in China and signed a memorandum of understanding for potential collaboration[88] Employment and Staffing - As of December 31, 2024, the group employed 52 staff, an increase from 44 staff as of June 30, 2024[100]

Financial Performance - For the fiscal year ending June 30, 2024, the company reported total revenue of HKD 82,817,000, a decrease from HKD 84,414,000 in the previous year, representing a decline of approximately 1.8%[2] - The gross profit for the year was HKD 17,724,000, an increase from HKD 15,061,000, reflecting a growth of about 17.7%[2] - The company incurred a total loss for the year of HKD 72,084,000, compared to a loss of HKD 35,200,000 in the previous year, indicating a significant increase in losses of approximately 104.5%[2] - The company reported a basic loss per share of HKD 0.16, compared to a restated loss of HKD 0.09 in the previous year[3] - The company reported a loss attributable to shareholders of approximately HKD 67.66 million and an operating cash outflow of about HKD 23.01 million for the year ending June 30, 2024[7] - The total loss for the reporting segments increased significantly to HKD (52,047,000) in 2024 compared to HKD (22,576,000) in 2023, indicating a deterioration in performance[16] - The company reported a net loss of HKD (72,084,000) for the year 2024, compared to a net loss of HKD (35,200,000) in 2023, reflecting a worsening financial position[16] - The company reported other income of HKD 1,925,000 in 2024, significantly lower than HKD 11,538,000 in 2023, indicating a decrease of approximately 83.3%[20] - The company recorded a pre-tax loss of HKD 82,678,000 for the fiscal year 2024, compared to a loss of HKD 40,134,000 in 2023, representing an increase of 106% in losses year-over-year[25] - Basic loss per share for the company was approximately HKD 67,660,000 for 2024, compared to HKD 35,065,000 for 2023, reflecting an increase of 93% in losses per share[27] Revenue Breakdown - Revenue from the sale of recycled metals was HKD 9.82 million, down 43.5% from HKD 17.42 million in the previous year[9] - Revenue from the sale of automobiles and related parts increased to HKD 63.73 million, up 5.9% from HKD 60.28 million in the previous year[9] - Customer contract revenue for the year ending June 30, 2024, was HKD 73.79 million, compared to HKD 79.49 million in the previous year[9] - Rental income for the year was HKD 3.93 million, a slight decrease from HKD 4.24 million in the previous year[9] - Revenue from the automotive and related parts segment was HKD 63,726,000 in 2024, a slight increase from HKD 60,279,000 in 2023[15] - Revenue from the sale of recycled metals was HKD 9,822,000 in 2024, down from HKD 17,417,000 in 2023, indicating a decline of approximately 43.5%[15] - The hotel leasing business generated revenue of approximately HKD 4,784,000, significantly up from HKD 2,184,000 in 2023, reflecting growth in operations since opening in July 2022[58] Assets and Liabilities - The company's total assets decreased to HKD 530,631,000 from HKD 599,802,000, a decline of about 11.5%[5] - Non-current assets decreased to HKD 491,056,000 from HKD 556,785,000, a reduction of about 11.8%[4] - The total equity attributable to the owners of the company decreased to HKD 409,944,000 from HKD 462,980,000, a decline of approximately 11.4%[5] - The company’s current liabilities increased to HKD 119,726,000 from HKD 108,695,000, reflecting an increase of about 10.4%[4] - The total assets for the reporting segments decreased to HKD 637,014,000 in 2024 from HKD 693,096,000 in 2023, a decline of about 8.1%[16] - The total liabilities for the reporting segments slightly decreased to HKD 71,544,000 in 2024 from HKD 71,888,000 in 2023[16] - The company's accounts receivable increased to HKD 28,874,000 in 2024 from HKD 25,339,000 in 2023, marking an increase of 10%[33] - The total assets under biological assets were valued at HKD 190,958,000 as of June 30, 2024, down from HKD 230,481,000 in 2023, representing a decrease of 17%[29] - The group had bank loans amounting to approximately HKD 84.05 million secured against parking spaces valued at approximately HKD 190 million[70] Cash Flow and Financing - Cash and cash equivalents increased significantly to HKD 22,631,000 from HKD 5,531,000, marking a growth of approximately 309.5%[4] - The financing costs rose to HKD (6,801,000) in 2024 from HKD (4,133,000) in 2023, reflecting an increase of approximately 64.7%[16] - The group successfully placed 407,307,622 shares at HKD 0.04 per share to raise funds for debt repayment and improve financial performance[66] - The total amount raised from the placement was approximately HKD 16.3 million, with a net amount of HKD 16.0 million fully utilized by June 30, 2024[68] - The net proceeds were allocated as follows: HKD 5.2 million for repayment of loans, HKD 3.5 million for existing operations in the automotive and metal recycling businesses, HKD 3.0 million for settling accounts payable, and HKD 4.3 million for general working capital[68] Market Conditions and Strategic Outlook - The Hong Kong economy showed moderate growth with real GDP increasing by 2.7% year-on-year in Q1 2024 and 3.3% in Q2 2024, with a forecasted annual growth between 2.5% and 3.5%[59] - Retail sales values continued to decline, and property prices are expected to drop further by 5% in 2024, with unsold residential units reaching a new high in 2023[59] - The company anticipates positive impacts from favorable policies from the Chinese government, including the designation of Hong Kong as one of two financial service cities in China[59] - The company maintains a cautious investment approach, with some investments performing positively and others negatively, reflecting a balanced strategy in a volatile market[56] Corporate Governance and Compliance - The company has complied with corporate governance codes, except for a temporary non-compliance regarding the number of independent non-executive directors, which was rectified by appointing a new director[75] - The audit committee consists of three independent non-executive directors, ensuring compliance with relevant financial management expertise requirements[78] - The group did not purchase, sell, or redeem any of its listed securities during the year[80]

Financial Performance - For the six months ending December 31, 2023, the company reported revenue of HKD 40,558,000, a decrease of 5.1% compared to HKD 42,787,000 in the same period of 2022[13]. - The gross profit for the same period was HKD 9,203,000, representing a significant increase of 31.5% from HKD 6,991,000 in the prior year[13]. - The company incurred a loss attributable to owners of the company of HKD 46,091,000, compared to a loss of HKD 2,849,000 in the previous year, indicating a substantial decline in performance[14]. - The total comprehensive loss for the period amounted to HKD 40,301,000, compared to HKD 13,367,000 in the same period of 2022[14]. - The total segment loss for the six months ended December 31, 2023, was HKD (41,003,000), compared to a loss of HKD (1,091,000) for the same period in 2022, indicating a significant increase in losses[38]. - Loss for the six months ended December 31, 2023, increased to approximately HKD 45,292,000, compared to HKD 2,237,000 in the same period of 2022[87]. - Basic and diluted loss per share was HKD 0.0226 for the six months ended December 31, 2023, compared to HKD 0.0014 in 2022[88]. Cash Flow and Liquidity - Operating cash outflow for the period was approximately HKD 12,672,000, highlighting ongoing liquidity challenges[10]. - The net cash used in operating activities for the six months ended December 31, 2023, was HKD (12,672,000), compared to HKD (2,170,000) for the same period in 2022, indicating a significant increase in cash outflow[20]. - The company is facing significant uncertainties regarding its ability to continue as a going concern due to the reported losses and cash outflows[10]. - The board believes that the preparation of financial statements on a going concern basis is appropriate, contingent on the commitment of an executive director to provide sufficient funds to meet the group's financial obligations[25]. - The group plans to implement cost-saving measures to improve liquidity and cash flow, ensuring sufficient cash flow for operations[25]. Assets and Liabilities - As of December 31, 2023, total assets amounted to HKD 519,273,000, a decrease from HKD 556,785,000 as of June 30, 2023, representing a decline of approximately 6.7%[16]. - Current liabilities increased to HKD 115,850,000 from HKD 108,695,000, reflecting an increase of about 6.5%[17]. - The total equity attributable to owners decreased to HKD 421,554,000 from HKD 462,980,000, a decline of approximately 8.9%[19]. - Cash and cash equivalents decreased to HKD 2,273,000 from HKD 5,531,000, a reduction of about 58.9%[16]. - Total liabilities related to assets classified as held for sale increased to HKD 10,410,000 from HKD 10,195,000, an increase of about 2.1%[17]. - The company's non-current liabilities decreased to HKD 117,373,000 from HKD 123,482,000, a decrease of approximately 5%[17]. Revenue Breakdown - Revenue from the sale of recovered metals was HKD 5,659,000, while revenue from the sale of automotive and related parts was HKD 30,418,000 for the six months ended December 31, 2023[36]. - Revenue from external customers in Hong Kong was HKD 33,770,000 for the six months ended December 31, 2023, while revenue from Macau and Taiwan was HKD 47,000 and HKD 101,000, respectively[39]. - Automotive and automotive parts business revenue for the six months ended December 31, 2023, was approximately HKD 30,418,000, a decrease from HKD 31,136,000 in 2022[73]. - Revenue from hotel and related businesses was approximately HKD 2,396,000 for the six months ended December 31, 2023, significantly up from HKD 577,000 in 2022[81]. - Revenue from the metal recycling business for the six months ended December 31, 2023, is approximately HKD 5,659,000, compared to HKD 8,667,000 for the same period in 2022, indicating a significant decline[71]. Fair Value Measurements - The company reported a fair value loss on investment properties of HKD 11,400,000, compared to a loss of HKD 787,000 in the same period last year[13]. - Fair value measurements as of December 31, 2023, include biological assets valued at HKD 203,821,000 and investment properties in Hong Kong valued at HKD 180,500,000[30]. - The fair value of biological assets decreased from HKD 230,481,000 to HKD 203,821,000 during the reporting period[33]. - The fair value of industrial land and buildings in Dongguan is estimated at HKD 67,336,000 as of December 31, 2023, compared to HKD 66,119,000 as of June 30, 2023[69]. - The fair value of parking spaces in Kennedy Town is approximately HKD 180,500,000 as of December 31, 2023, down from HKD 191,900,000 as of June 30, 2023, reflecting a decline in the overall real estate market in Hong Kong[70]. Corporate Governance and Compliance - The financial statements are unaudited but have been reviewed by the audit committee and auditors, ensuring compliance with relevant accounting standards[4]. - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO, which is held by the same individual[108]. - Following the resignation of independent non-executive director Wang Zijing, the company did not comply with certain listing rules regarding the number of independent directors until the appointment of Li Zhihao on December 5, 2023[109]. - The company aims to appoint suitable candidates to meet gender diversity requirements on the board by December 31, 2024[109]. - The company has established an audit committee in accordance with Listing Rule 3.21 to review and monitor the financial reporting process, internal controls, and risk management systems[111].

Financial Performance - For the six months ended December 31, 2023, the company reported revenue of HKD 40,558,000, a decrease of 5.1% compared to HKD 42,787,000 in the same period of 2022[4]. - The gross profit for the same period was HKD 9,203,000, representing an increase of 31.5% from HKD 6,991,000 year-on-year[4]. - The operating loss for the period was HKD 50,090,000, compared to an operating loss of HKD 127,000 in the previous year[4]. - The net loss attributable to the owners of the company was HKD 46,091,000, significantly higher than the loss of HKD 2,849,000 in the prior year[5]. - The company reported a basic and diluted loss per share of HKD 2.26, compared to HKD 0.14 in the previous year[5]. - The company reported a total loss of HKD 45,292,000 for the six months ended December 31, 2023, compared to a loss of HKD 2,237,000 in the same period of 2022[34]. - Basic loss per share for the six months ended December 31, 2023, was HKD 46,091,000, compared to HKD 2,849,000 for the same period in 2022[42]. Cash Flow and Liquidity - For the six months ended December 31, 2023, the company reported a net cash outflow from operating activities of HKD 12,672,000, compared to HKD 2,170,000 in the same period of 2022, indicating a significant increase in cash burn[12]. - The company generated a net cash inflow from investing activities of HKD 1,030,000, a recovery from a net cash outflow of HKD 1,071,000 in the previous year, primarily due to financing lease interest income of HKD 960,000[12]. - The company has committed to ensuring sufficient funding to meet its financial obligations and operational needs for at least the next twelve months[18]. - The company’s cash flow forecast has been reviewed in detail, and the board believes there will be adequate cash resources to meet future operational and financing needs[18]. - The company raised borrowings of HKD 6,200,000 during the period, slightly down from HKD 6,772,000 in the previous year, while net cash from financing activities was HKD 3,684,000[12]. Assets and Liabilities - Total assets decreased to HKD 553,392,000 from HKD 599,802,000 as of June 30, 2023[9]. - The company's cash and cash equivalents decreased to HKD 2,273,000 from HKD 5,531,000 as of June 30, 2023[7]. - The total equity attributable to the owners of the company was HKD 421,554,000, down from HKD 462,980,000 as of June 30, 2023[9]. - The group has classified assets and liabilities related to a sale group, with total assets of HKD 67,477,000 and total liabilities of HKD 10,410,000 as of December 31, 2023[56]. - The net asset value of the sale group was HKD 57,067,000 as of December 31, 2023, up from HKD 56,033,000 as of June 30, 2023[56]. Investment Properties and Fair Value - The company recorded a fair value loss on investment properties of HKD 11,400,000, compared to a loss of HKD 787,000 in the previous period[4]. - The fair value of biological assets was reported at HKD 203,821,000, with total recurring fair value measurements amounting to HKD 404,199,000 as of December 31, 2023[22]. - The fair value loss on investment properties was recorded at HKD 11,400,000 during the reporting period[32]. - The company reported a non-recurring fair value measurement total of HKD 66,119,000 for non-current assets held for sale, specifically related to Chinese investment properties[24]. - The fair value of biological assets was determined using the market approach, with the value of poplar trees increasing from HKD 203,821,000 to HKD 230,481,000[28]. Revenue Breakdown - The revenue from external customers for the six months ended December 31, 2023, totaled HKD 40,558,000, with significant contributions from metal recycling and automotive-related sales[32]. - The segment loss for the metal recycling business was HKD 421,000, while the automotive-related segment reported a profit of HKD 3,537,000[32]. - Revenue from the automotive and automotive parts business was approximately HKD 30,418,000 for the six months ended December 31, 2023, a slight decrease of 2.3% from HKD 31,136,000 in the previous year[75]. - The company recorded revenue of approximately HKD 5,659,000 from its metal recycling business for the six months ended December 31, 2023, down 34.6% from HKD 8,667,000 in the same period of 2022[74]. - Rental income from investment properties decreased to approximately HKD 1,976,000 for the six months ended December 31, 2023, compared to HKD 2,225,000 in the same period of 2022[77]. Economic Environment - The Hong Kong economy is facing challenges, with a projected GDP growth rate revised down from 4.5% to 3.2%[88]. - The Hang Seng Index declined over 15% in 2023, indicating a disconnect from global economic trends[87]. - The government is expected to face structural deficits in the medium term due to declining property prices and low transaction volumes[89]. Corporate Governance - The audit committee has been established in accordance with Listing Rule 3.21 to review and monitor the group's financial reporting procedures, internal controls, and risk management systems[115]. - The interim report for the six months ending December 31, 2023, has been reviewed by the audit committee, which consists of three independent non-executive directors[115].

Financial Performance - For the year ended June 30, 2023, rental income from car parking spaces was approximately HK$4,236,000, a slight decrease from HK$4,329,000 in 2022[20]. - Revenue from metal recycling decreased marginally to approximately HK$17,417,000 from HK$17,514,000 in 2022[40]. - The motor and motor accessories business revenue declined to approximately HK$60,279,000, down from approximately HK$71,016,000 in 2022[48]. - Loan interest income from the money lending business was approximately HK$298,000, compared to approximately HK$329,000 in 2022, indicating a downward trend[52]. - For the year ended June 30, 2023, the Group's revenue decreased by 9.4% to approximately HK$84,414,000 compared to HK$93,188,000 in 2022[130]. - Gross profit for the same period decreased by 28.8% to approximately HK$15,061,000, down from HK$21,153,000 in 2022[130]. - The loss for the year increased to approximately HK$35,200,000, compared to a loss of approximately HK$14,828,000 in the previous year[130]. - Basic and diluted loss per share for the year was HK2 cent, compared to HK1 cent in 2022[131]. - The Group recorded a net loss on fair value changes in investments at fair value through profit or loss of approximately HK$236,000 for the year ended June 30, 2023, compared to approximately HK$167,000 in 2022[117]. - Revenue from the hotel and related business amounted to approximately HK$2,184,000 for the year ended June 30, 2023, compared to nil in 2022[119]. Investment Properties - The Group holds 80% interest in an investment property in PRC, with a total gross floor area of approximately 28,814.66 sq.m (or about 310,161.00 sq.ft.)[11]. - A resolution was passed on June 8, 2023, for the disposal of the 80% interest in the PRC investment property, with a deposit of HK$11,800,000 received and a balance of HK$47,200,000 to be received upon completion[12]. - The Hong Kong investment property comprises 95 car parking spaces, leased out under a government lease for a term of 999 years[19]. - The Group's investment properties are located in both PRC and Hong Kong, contributing to stable revenue streams[16]. Business Segments - The Group is engaged in various businesses including metal recycling, motor accessories, car parking rental, money lending, and securities trading[8]. - The Group has a hotel business in Nepal, expanding its portfolio beyond environmental resources[8]. - The Group's principal activities include metal recycling, motor and motor accessories, car parking rental, money lending, trading of golden flower tea products, and securities trading[180]. - The Group's operations include five segments: Securities Brokerage, Money Lending, Corporate Finance, Asset Management, and Consultancy[1]. Environmental Commitment - The fair value of biological assets is estimated using a market-based approach, reflecting the Group's commitment to sustainable practices[21]. - The Group maintains green businesses focused on research, development, and application of technologies for environmental markets[8]. - The Group emphasizes environmental protection and sustainable development, implementing measures to promote awareness and compliance with environmental legislation[190]. - The Group's commitment to environmental policies includes the conscientious use of resources and the adoption of best practices across its businesses[190]. - The Group encourages energy-saving practices among employees, such as turning off air-conditioning and using energy-saving light bulbs[196]. - Recycling initiatives have been implemented, including the placement of recycle bins next to printers[196]. - The Group has canceled the distribution of plastic bags in the office to reduce the use of disposable products[196]. Loan Management - The Group maintains a loan register to track repayment schedules and statuses, ensuring proactive management of loan collections[64]. - Key terms of loans are determined based on factors such as borrower credibility, security value, and assessed risk, with corporate borrowers generally considered lower risk than private companies[65]. - The Group conducts internal monitoring procedures for loan extensions, including reviewing the latest financial statements of borrowers and assessing their repayment capabilities[66]. - The management discussion highlights the importance of reassessing credit risk and loan recoverability whenever irregularities are identified[67]. - The Group's approach to loan management emphasizes a structured and risk-aware methodology to ensure financial stability and minimize potential losses[68]. - The Group conducted due diligence and credit risk assessments for each loan, including reviewing financial statements and business developments of borrowers[74]. - The Group's internal control procedures for ongoing monitoring of loan recoverability were deemed effective in identifying significant changes in borrowers' creditworthiness[112]. Employee Relations - The Group offers competitive remuneration packages and various fringe benefits, including medical benefits and bonuses, to enhance employee retention[199]. - Employee relations have been positively impacted by management policies and career prospects, contributing to good employee retention[198]. - The Group had 39 employees as of June 30, 2023, down from 60 in 2022[1]. Financial Position - Total assets of the Group as of June 30, 2023, were approximately HK$718,692,000, down from approximately HK$780,508,000 in 2022[133]. - Cash and bank balances as of June 30, 2023, were approximately HK$5,640,000, compared to approximately HK$6,295,000 in 2022[133]. - The Group's net assets amounted to approximately HK$476,320,000 as of June 30, 2023, down from approximately HK$536,469,000 in 2022[138]. - The Group's total borrowings were approximately HK$74,148,000, an increase from approximately HK$68,215,000 in 2022[138]. - The Group's gearing ratio as of June 30, 2023, was approximately 15.6%, up from approximately 12.7% in 2022[138]. Impairment and Losses - An impairment loss was recognized for the entire outstanding loan receivables associated with Borrower 4 due to bankruptcy proceedings[115]. - The Group recognized the possibility of loan recoverability for Borrower 5 to be remote, leading to an impairment loss for the entire outstanding loan receivables[115]. - The Group assessed various factors for impairment assessment, including significant changes in creditworthiness and financial conditions of borrowers[111]. - The Group determined no impairment was necessary for Borrower 1 and Borrower 3 based on their strong financial positions and lack of adverse changes[115]. Market Conditions - Sourcing metal scrap in Hong Kong is becoming increasingly difficult due to rising competition and limited supply[42]. - The global metal recycling market is expected to grow at a compound annual growth rate of 5.85% to reach about USD384 billion by 2030[41]. - The construction sector in Hong Kong saw a 17.9% increase in total value in the private sector during Q1 2023, indicating potential growth for the metal recycling business[46].

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，概不對因本公佈全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA ENVIRONMENTAL RESOURCES GROUP LIMITED 中 國 環 境 資 源 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1130） 截至二零二三年六月三十日止年度 之全年業績公佈 中國環境資源集團有限公司（「本公司」）董事會（「董事會」）公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年度之年度經審核綜合業績，連同截至二零 二二年六月三十日止年度之比較數據。 ...

Financial Performance - The company reported revenue of HKD 42,787,000 for the six months ended December 31, 2022, an increase of 8.4% compared to HKD 39,460,000 in the same period last year[14]. - Gross profit decreased to HKD 6,991,000, down 29.3% from HKD 9,861,000 year-on-year[14]. - The company incurred a loss attributable to owners of HKD 2,849,000, an improvement from a loss of HKD 7,809,000 in the previous year[15]. - The total comprehensive loss for the period was HKD 13,367,000, compared to a gain of HKD 453,000 in the same period last year[15]. - Basic and diluted loss per share was HKD 0.14, unchanged from the previous year[15]. - The company recorded a net loss of HKD 2,031,000 before tax, significantly reduced from HKD 5,796,000 in the prior year[14]. - The group reported a total segment loss of HKD 1,091,000 for the six months ended December 31, 2022, compared to a profit of HKD 3,130,000 in the same period of 2021[38]. - The group incurred a total comprehensive loss of HKD 2,237,000 for the six months ended December 31, 2022, compared to a loss of HKD 6,414,000 in the same period of 2021[38]. - The total income tax expense for the six months ended December 31, 2022, was HKD 206,000, a decrease of 66.7% from HKD 618,000 in the previous year[7]. - The company did not declare an interim dividend for the six months ended December 31, 2022, consistent with the previous year[44]. Cash Flow and Liquidity - The company reported a net cash outflow from operating activities, indicating potential liquidity challenges[11]. - The net cash used in operating activities for the six months ended December 31, 2022, was HKD (2,170,000), an improvement from HKD (10,541,000) in the same period of the previous year[21]. - The company raised borrowings of HKD 6,772,000 during the financing activities in the six months ended December 31, 2022[21]. - The board has implemented measures to improve the group's liquidity and financial condition, ensuring the preparation of financial statements on a going concern basis[25]. - An executive director has committed to providing sufficient funds to ensure the group can meet its financial obligations and continue operations without significant reduction for the next 12 months from December 31, 2022[26]. - The group is continuing to implement measures aimed at improving operational cash flow, including cost-saving initiatives to maintain adequate cash flow[26]. Assets and Liabilities - The total liabilities as of December 31, 2022, were approximately HKD 3,184,000, raising concerns about the company's ability to continue as a going concern[11]. - As of December 31, 2022, total assets minus current liabilities amounted to HKD 651,768,000, a decrease from HKD 671,566,000 as of June 30, 2022[17]. - The company's total equity as of December 31, 2022, was HKD 523,102,000, down from HKD 536,469,000 as of June 30, 2022[18]. - Total non-current assets decreased to HKD 654,952,000 as of December 31, 2022, from HKD 673,988,000 as of June 30, 2022[17]. - The total liabilities decreased to HKD 128,666,000 as of December 31, 2022, from HKD 135,097,000 as of June 30, 2022[18]. - The total assets of the reporting segments as of December 31, 2022, amounted to HKD 729,773,000, compared to HKD 761,388,000 as of June 30, 2022[38]. Revenue Breakdown - Revenue from the sale of recycled metals was HKD 8,667,000, while the sale of automobiles and related parts generated HKD 31,136,000[37]. - The group recognized HKD 1,935,000 in revenue from biological assets during the reporting period[37]. - Revenue from hotel operations and food and beverage sales was HKD 577,000 for the reporting period[39]. - The group’s revenue from external customers in Hong Kong was HKD 36,162,000, while revenue from Macau and Taiwan was HKD 266,000 and HKD 71,000, respectively[39]. - The group recorded metal recycling business revenue of approximately HKD 8,667,000 for the six months ended December 31, 2022, compared to HKD 9,092,000 in the previous year, reflecting a decline[68]. - The automotive and automotive parts business generated revenue of approximately HKD 31,136,000 for the six months ended December 31, 2022, an increase from HKD 27,365,000 in the previous year, indicating stable growth[71]. - The group generated revenue of approximately HKD 577,000 from its hotel business for the six months ended December 31, 2022, compared to zero revenue in the same period of 2021[80]. Fair Value Measurements - As of December 31, 2022, the fair value measurement of biological assets was reported at HKD 259,760,000, while the fair value of investment properties in Hong Kong was HKD 191,900,000[31]. - The total fair value measurement for the group as of December 31, 2022, was HKD 541,356,000, compared to HKD 551,778,000 as of June 30, 2022[31]. - The fair value of the major personnel insurance contract increased from HKD 18,160,000 as of June 30, 2022, to HKD 18,468,000 as of December 31, 2022[32]. - The fair value of investment properties in China was reported at HKD 70,330,000 as of December 31, 2022, down from HKD 73,678,000 as of June 30, 2022[34]. - The valuation techniques and inputs used for fair value measurement have remained unchanged during the reporting periods[35]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules, except for the separation of roles between the Chairman and CEO[108]. - The company has established an audit committee to review and monitor its financial reporting procedures and internal controls[111]. - The company plans to hold its annual general meeting on April 3, 2023, at the Empire Hotel in Kowloon, Hong Kong[108]. - The company’s audit committee consists of three independent non-executive directors, ensuring compliance with the relevant regulations[111]. Market Conditions and Future Outlook - Hong Kong's GDP contracted by 3.5% in 2022, with significant year-on-year declines of 4.6% and 4.2% in the third and fourth quarters, respectively[83]. - The group anticipates partial economic recovery in Hong Kong in 2023, with China's economy expected to grow by approximately 5% due to the lifting of lockdown policies[83]. - The U.S. Federal Reserve raised the federal funds rate target range to 4.5% to 4.75% in February 2023, with expectations of further increases by the end of the year[83]. - The group is exploring new business opportunities and focusing on sustainable development in existing operations, including hotel business expansion in Nepal[65]. - The group is reallocating resources in the Chinese market to meet the demand for high-performance tires, which has been identified as a growth area[71]. - The group is facing challenges in sourcing scrap metal in Hong Kong due to increasing competition and the impact of COVID-19 on logistics and supply chains[68]. - The group is actively collecting data and assessing risks related to its operations in Xinjiang, particularly in light of the COVID-19 situation and government policies[65].

Financial Performance - The company reported total revenue of HKD 93,188,000 for the year ended June 30, 2022, an increase from HKD 77,878,000 in the previous year, representing a growth of approximately 19.6%[3] - Gross profit for the year was HKD 21,153,000, compared to HKD 19,867,000 in the prior year, indicating a year-on-year increase of about 6.5%[3] - The company incurred a net loss of HKD 19,527,000 for the year, a significant improvement from a net loss of HKD 48,942,000 in the previous year, reflecting a reduction of approximately 60%[3] - Total comprehensive loss for the year amounted to HKD 27,782,000, compared to HKD 18,029,000 in the previous year, indicating a decline in overall performance[3] - The company reported a basic loss per share of HKD 10 cents for the year, compared to HKD 46.1 cents in the previous year, showing an improvement in loss per share[5] - The company reported a loss of HKD 2,531,000 from the sale of camellia products, indicating challenges in this segment[33] - The company recognized a gain of HKD 3,754,000 from the fair value change of biological assets, contributing positively to the financial results[33] - The company reported a loss before tax for 2022 of HKD 19,486,000, a significant improvement from a loss of HKD 50,056,000 in 2021, representing a reduction of approximately 61%[47] - The income tax expense for 2022 was HKD 41,000, compared to a tax credit of HKD 1,114,000 in 2021, indicating a shift from a tax benefit to a tax expense[47] Revenue Breakdown - Revenue from metal trading was HKD 17,514,000, up from HKD 13,117,000, representing a growth of 33.5%[21] - Revenue from automotive and related parts trading increased to HKD 71,016,000 from HKD 58,495,000, reflecting a growth of 21.4%[21] - Customer contract revenue totaled HKD 88,530,000, compared to HKD 71,612,000 in the prior year, marking a growth of 23.5%[21] - Revenue from major customer A in the automotive segment was HKD 38,959,000, accounting for over 10% of the group's total revenue[38] Assets and Liabilities - Non-current assets totaled HKD 667,922,000 as of June 30, 2022, slightly down from HKD 669,382,000 in the previous year[7] - Current assets decreased to HKD 106,520,000 from HKD 130,268,000 year-on-year, representing a decline of approximately 18.2%[7] - The company's cash and cash equivalents significantly dropped to HKD 6,295,000 from HKD 19,005,000, a decrease of about 66.9%[7] - The total liabilities decreased to HKD 108,942,000 from HKD 125,289,000, indicating a reduction of approximately 13.0%[7] - The total assets as of June 30, 2022, amounted to HKD 755,321,000, slightly down from HKD 779,381,000 in the previous year[35] - Total liabilities increased to HKD 75,055,000 from HKD 66,686,000 year-over-year, reflecting a rise of 12.8%[35] - The total borrowings of the group as of June 30, 2022, were approximately HKD 68,215,000, a decrease from HKD 71,787,000 in 2021, maintaining an asset-liability ratio of approximately 12.8%[92] - The net asset value of the group as of June 30, 2022, was approximately HKD 531,919,000, down from HKD 559,701,000 in 2021[94] Cash Flow and Financing - The group has implemented measures to improve liquidity and cash flow, including cost-saving initiatives to maintain sufficient cash flow for operations[18] - An executive director has committed to providing sufficient funds to ensure the group can meet its financial obligations over the next 12 months[18] - The group anticipates sufficient cash resources to meet future operational funding and financing needs over the next 12 months[18] - The financing costs for the year were HKD 3,608,000, up from HKD 2,469,000 in the previous year, indicating increased borrowing costs[43] - The interest income from loans granted to corporate and individual clients was approximately HKD 329,000 for the year, a significant decrease from HKD 2,230,000 in the previous year[78] Operational Insights - The group operates seven reportable segments, including metal trading and automotive parts trading, each requiring different marketing strategies[31] - The company is exploring new business opportunities and focusing on sustainable development of existing operations[65] - The company is developing hotel operations in Nepal as part of its expansion strategy[64] - The company is closely monitoring the impact of new government plans in Dongguan on its industrial properties[68] Audit and Compliance - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated annual results for the year ended June 30, 2022[112] - Due to COVID-19 restrictions, the audit process for the financial statements for the year ended June 30, 2022, has been hindered, particularly affecting the valuation of biological assets[115] - The company is unable to complete the audit by September 30, 2022, and the financial data presented is uncertain and subject to adjustment[117] - The financial information disclosed is unaudited and has not been agreed upon by the auditors, thus investors should exercise caution when trading the company's securities[118] - The company has adopted the standards set out in Appendix 10 of the Listing Rules for directors' securities transactions, confirming compliance by all directors for the year ended June 30, 2022[110] Employee and Operational Costs - Employee costs, including directors' remuneration, totaled HKD 13,289,000 in 2022, a decrease from HKD 13,596,000 in 2021, reflecting a reduction of about 2%[48] - Operating administrative expenses rose to approximately HKD 41,408,000, compared to HKD 41,210,000 in 2021, with significant items including intangible asset amortization of HKD 5,151,000 and salaries and director remuneration of HKD 13,289,000[91] Dividends and Shareholder Returns - The company did not declare any dividends for the years ended June 30, 2022, and June 30, 2021[52] - No dividends were declared for the year ended June 30, 2022, consistent with 2021[103]

Financial Performance - For the six months ended December 31, 2021, the company reported revenue of HKD 39,460,000, an increase of 15.5% compared to HKD 34,151,000 for the same period in 2020[12] - Gross profit for the same period was HKD 9,861,000, reflecting a slight increase from HKD 9,408,000 year-over-year[12] - The company experienced a significant operating loss of HKD 4,017,000, an improvement from a loss of HKD 12,043,000 in the previous year[12] - The net loss for the period was HKD 6,414,000, compared to a net loss of HKD 12,913,000 in the prior year, indicating a reduction in losses[12] - Basic loss per share was HKD 0.38, an improvement from HKD 0.67 in the previous year[13] - Total comprehensive income for the period amounted to HKD 453,000, a significant decrease from HKD 13,849,000 in the prior year[12] - The company reported a consolidated loss of HKD 6,414,000 for the six months ended December 31, 2021, improving from a loss of HKD 12,913,000 in the previous year[35] - Other income increased to approximately HKD 4.2 million, primarily due to rent payment waivers related to COVID-19[84] - Loss for the period decreased to approximately HKD 6,414,000, compared to a loss of HKD 12,913,000 in the same period last year[84] Assets and Liabilities - As of December 31, 2021, the total assets amounted to HKD 699,255,000, an increase from HKD 674,361,000 as of June 30, 2021, reflecting a growth of approximately 3.5%[14] - The company's non-current liabilities increased to HKD 139,101,000 from HKD 114,660,000, representing a rise of about 21.3%[15] - The total liabilities as of December 31, 2021, were HKD 139,101,000, which includes lease liabilities of HKD 47,766,000[15] - The total equity as of December 31, 2021, was HKD 560,154,000, slightly up from HKD 559,701,000 as of June 30, 2021[15] - The group's total assets as of December 31, 2021, were approximately HKD 812,652,000, up from HKD 799,650,000 as of June 30, 2021[88] - Total borrowings amounted to approximately HKD 69,734,000, a decrease from HKD 71,787,000 as of June 30, 2021[88] - The asset-to-equity ratio was 12.4% as of December 31, 2021, compared to 12.8% as of June 30, 2021[88] Cash Flow - The net cash flow from operating activities for the six months ended December 31, 2021, was a negative HKD 10,541,000, compared to a positive HKD 5,005,000 in the same period of the previous year[18] - The cash and cash equivalents at the end of the period were HKD 3,763,000, an increase from HKD 3,130,000 at the end of the previous period[18] - The company reported a net cash outflow from financing activities of HKD 5,712,000 for the six months ended December 31, 2021, compared to HKD 921,000 in the previous year[18] Revenue Segments - The total revenue for the six months ended December 31, 2021, was HKD 29,715,000 from the sale of automotive and related parts, with HKD 9,092,000 from metal trading[37] - The reported segment profit for the six months ended December 31, 2021, was HKD 3,130,000, compared to a loss of HKD 6,665,000 in the same period of the previous year[35] - The automotive and automotive parts business generated revenue of approximately HKD 27,365,000 for the six months ended December 31, 2021, up from HKD 25,109,000 in 2020, indicating a growth of 8.9%[68] - The group recorded metal recycling business revenue of approximately HKD 9,092,000 for the six months ended December 31, 2021, compared to HKD 5,802,000 in 2020, representing a growth of 56.8%[66] - Parking space rental income increased to approximately HKD 2,080,000 for the six months ended December 31, 2021, compared to HKD 2,001,000 in 2020, reflecting a growth of 3.9%[69] Investments and Fair Value - The company reported a fair value loss on investment properties of HKD 19,091,000, compared to HKD 20,457,000 in the previous year[12] - The fair value of investment properties in Hong Kong was reported at HKD 191,900,000 as of December 31, 2021[26] - The company’s investment properties in China had a fair value of HKD 73,862,000 as of December 31, 2021[26] - The total fair value of biological assets was reported at HKD 273,399,000 as of December 31, 2021[26] - The fair value change of biological assets generated a profit of approximately HKD 3,756,000, compared to a loss of HKD 334,000 in the previous year[85] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of roles between the chairman and the CEO, which are held by the same individual[108] - The company has adopted a standard code of conduct for securities trading by its directors, confirming compliance for the six months ending December 31, 2021[110] - An audit committee has been established in accordance with Listing Rule 3.21 to review and monitor the group's financial reporting procedures, internal controls, and risk management systems[111] - The audit committee consists of three independent non-executive directors, with Mr. Wang Zijing serving as the chairman[111] Future Outlook and Strategy - The company anticipates a significant economic downturn in Hong Kong during the first quarter of 2022 due to the impact of COVID-19[81] - The company plans to develop a detailed business plan for its hotel operations in Kathmandu, Nepal, expecting the tourism sector to recover in the second half of the year[82] - The company is adopting a wait-and-see approach regarding the expansion of its automotive parts sales business into China due to ongoing travel restrictions and supply chain issues[83] - The company will continue to implement cost control measures to reduce operating costs and recurring expenses amid the current crisis in Hong Kong[83] - The group is exploring new business opportunities and is committed to developing sustainable existing businesses[63]

China Environmental Resources Group Limited 中 國 環 境 資 源 集 團 有 限 公 司 (於開曼群島註冊成立之有限公司) 股份代號: 1130 2021 ¥ nound HITITI IIIIII HIIII Contents 目錄 2 Corporate Information 公司資料 4 Management Discussion and Analysis 管理層討論及分析 17 Biographical Details of Directors 董事簡歷 20 Report of the Directors 董事會報告書 36 Corporate Governance Report 企業管治報告 55 Independent Auditor's Report 獨立核數師報告 60 Consolidated Statement of Profit or Loss and Other Comprehensive Income 綜合損益及其他全面收益表 62 Consolidated Statement of Financial Position 綜合財務狀況 ...