Group 1 - The company has been actively repurchasing shares, demonstrating confidence in its future development. In 2024, the company repurchased a total of 3.525 million shares, accounting for 1.52% of its total share capital. In February 2025, the company announced plans to repurchase between RMB 50 million and RMB 100 million worth of shares. As of the end of March 2025, the cumulative repurchased shares reached 1.168 million, representing 0.50% of the total share capital, with a transaction amount of RMB 18.75 million [1][2] - The company's borosilicate molded bottle business is progressing steadily, with expectations for a breakthrough in 2025. The borosilicate molded injection bottles passed technical review by the National Medical Products Administration in April 2024, allowing for mass production. In February 2025, a new energy-efficient glass melting furnace was successfully ignited, which is expected to produce over 10,000 tons of Class I pharmaceutical molded glass bottles annually once fully operational. Currently, there is a supply shortage in the domestic market for borosilicate molded bottles, indicating good profitability and potential for new performance growth [1] Group 2 - The company launched a restricted stock incentive plan in August 2024, granting 3.525 million shares, approximately 1.52% of the total share capital. The performance targets include a 30% increase in revenue for 2024 and 60% for 2025 compared to 2023, with similar growth targets for total profit. The incentive plan is based on the current business expansion and aims to motivate employees while fostering high-quality development [2] - The company's EPS forecasts for 2024-2026 have been adjusted to 0.44, 0.62, and 0.78 RMB, down from previous estimates of 0.70 and 0.92 RMB for 2024-2025. This adjustment is primarily due to lower-than-expected production volume of borosilicate molded bottles and a downward revision of the gross margin for pharmaceutical glass revenue, alongside an increase in operating expenses due to new business expansion. The average PE ratio for comparable companies in 2025 is projected at 30X, leading to a target price of RMB 18.60, maintaining a "buy" rating [2]

Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of HK$33,000, compared to HK$8,000 in the same period of 2023, indicating a significant increase[5]. - The gross profit for the period was HK$5,887, showing an improvement from a gross loss of HK$9,586 in the previous year[5]. - The loss from operations decreased to HK$5,854, down from HK$9,578 in the prior year, reflecting better operational efficiency[5]. - The total comprehensive loss for the period was HK$4,491, compared to HK$8,104 in the same period of 2023, indicating a reduction in overall losses[5]. - The loss per share improved to HK$0.03, compared to HK$0.05 in the previous year, demonstrating a positive trend in financial performance[5]. - The company experienced a loss before tax of HK$5,868, which is an improvement from HK$9,610 in the same period of 2023[5]. - The company recorded other comprehensive income of HK$1,377 for the period, compared to HK$1,506 in the same period of 2023[5]. - The company reported a total comprehensive loss of HK$4,432,000 for the six months ended June 30, 2024, compared to a loss of HK$8,002,000 in the same period last year, indicating an improvement of about 44.5%[7]. - The loss for the Period decreased to approximately HK$5.9 million, compared to HK$9.6 million for the six months ended 30 June 2023[38]. - The Group's loss attributable to shareholders for the Period amounted to approximately HK$5.8 million, compared to HK$9.6 million for the six months ended 30 June 2023[38]. Assets and Liabilities - As of June 30, 2024, the company's non-current assets decreased to HK$261,000 from HK$315,000 as of December 31, 2023, representing a decline of approximately 17.1%[6]. - Current assets, including prepayments and other receivables, decreased to HK$2,523,000 from HK$3,512,000, a reduction of about 28.2%[6]. - The company's net current liabilities increased to HK$205,570, compared to HK$201,133 as of December 31, 2023, indicating a rise of approximately 2.2%[6]. - Total equity attributable to owners of the company decreased to HK$206,619, down from HK$202,187, reflecting a decline of about 2.1%[7]. - The total assets decreased to HK$2,784,000 from HK$3,827,000, while total liabilities increased slightly to HK$208,093,000 from HK$204,645,000[5]. - The total deficiency in equity of the Group amounted to approximately HK$205.3 million, compared to HK$200.8 million as of December 31, 2023[82]. - The net current liabilities of the Group were approximately HK$205.6 million as of June 30, 2024, an increase from HK$201.1 million as of December 31, 2023[84]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was HK$119,000, a significant improvement compared to a net cash used of HK$2,635,000 in the same period last year[9]. - Cash and cash equivalents at the end of the period were HK$365,000, down from HK$4,220,000 at the beginning of the period, representing a decrease of approximately 91.4%[9]. - Cash and cash equivalents as of June 30, 2024, were HK$0.4 million, down from HK$0.8 million as of December 31, 2023[84]. Operational Efficiency - The finance costs for the period were HK$14, down from HK$32 in the previous year, indicating reduced borrowing costs[5]. - Lease liabilities decreased to HK$213,000 from HK$843,000, a reduction of approximately 74.7%[6]. - Staff costs, including directors' emoluments, decreased to HK$2,836,000 from HK$7,412,000[20]. - Distribution costs and general operating expenses for the Period decreased to approximately HK$5.9 million, down from HK$9.6 million for the six months ended 30 June 2023[37]. - The Group's employee benefit expenses for the Period were approximately HK$2.8 million, down from HK$7.4 million for the six months ended 30 June 2023[37]. - The Group had a total of approximately 40 employees as of June 30, 2024, down from 55 employees as of December 31, 2023[90]. Strategic Initiatives - The company aims to enhance operational strategies and explore market expansion opportunities in the upcoming periods[4]. - The Company is exploring opportunities for industrialisation, including renovation of existing facilities and procurement of production equipment[45]. - The Group is identifying potential collaboration or acquisition opportunities to enhance electric vehicle manufacturing capabilities[46]. - The Company is confident that the acquisition and financing opportunities will secure a stable revenue stream for the development of electric vehicles[49]. - The Company plans to optimize its manufacturing processes and obtain relevant permits for mass production of electric vehicles in China[48]. - The acquisition aims to enhance the manufacturing capability for electric vehicles and expand sales channels to leading automobile manufacturers in China[49]. Shareholder Information - As of June 30, 2024, Sun East LLC holds 2,673,071,189 shares, representing 13.13% of the issued share capital of the Company[63]. - Dr. Yeung Yung has a total interest of 2,741,211,189 shares, which is approximately 13.47% of the total shareholding[66]. - Liu Stephen Quan holds 291,760,000 shares, accounting for 1.43% of the total shareholding[66]. - Chen Xiao holds 25,000,000 shares, representing 0.12% of the total shareholding[66]. - The total number of shares in issue as of June 30, 2024, is 20,352,872,747[68]. Corporate Governance - The Company is committed to maintaining high standards of corporate governance and has complied with all code provisions set out in the Corporate Governance Code[88]. - The Group did not hold any significant investments during the reporting period and has no plans for material investments or capital assets for the year ending December 31, 2024[62]. Future Outlook - The uncertain macroeconomic environment adversely affected the Group's development of electric vehicles and negotiations with potential partners[37]. - The Company is confident that the Group will gradually catch up as the global economy improves in the future[39].

Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of 33 thousand HKD, compared to 8 thousand HKD in the same period of 2023, representing a 312.5% increase[1]. - The operating loss for the period was 5,854 thousand HKD, a decrease of 38.5% from the operating loss of 9,578 thousand HKD in the prior year[2]. - The loss before tax was 5,868 thousand HKD, down from 9,610 thousand HKD, indicating a 38.5% improvement year-over-year[2]. - The total comprehensive loss for the period was 4,491 thousand HKD, compared to 8,104 thousand HKD in the previous year, reflecting a 44.3% reduction[2]. - For the six months ended June 30, 2024, the company reported a total loss of HKD 5,868,000, compared to a loss of HKD 9,610,000 for the same period in 2023, indicating an improvement in performance[10]. - The company recorded segment losses of HKD 2,253,000 for the six months ended June 30, 2024, compared to HKD 2,120,000 for the same period in 2023, reflecting ongoing challenges in its operations[10]. - Basic loss per share for the six months ended June 30, 2024, was approximately HKD 5,842,000, compared to HKD 9,580,000 for the same period in 2023, reflecting a reduction in losses per share[16]. - The company reported a loss of approximately HKD 5,900,000 for the period, a decrease from HKD 9,600,000 in the same period last year, with a loss attributable to shareholders of about HKD 5,800,000[27]. - Distribution costs and general operating expenses were reduced to approximately HKD 5,900,000, down from HKD 9,600,000 in the previous year, including employee benefits of about HKD 2,800,000[27]. Cash Flow and Liquidity - The company reported a net cash inflow from operating activities of 119 thousand HKD, a significant improvement from a cash outflow of 2,635 thousand HKD in the same period last year[5]. - The company's cash and cash equivalents decreased to 365 thousand HKD from 4,220 thousand HKD at the end of the previous period, a decline of 91.4%[5]. - As of June 30, 2024, the net current liabilities were approximately HKD 205,570,000, with cash and cash equivalents of HKD 365,000[39]. - The group had no outstanding borrowings as of June 30, 2024, and maintained a conservative treasury policy[39]. Assets and Liabilities - As of June 30, 2024, the company had current liabilities of 208,093 thousand HKD, slightly up from 204,645 thousand HKD at the end of 2023[3]. - Total assets as of June 30, 2024, amounted to HKD 2,784,000, compared to HKD 3,827,000 as of December 31, 2023, showing a decrease in asset value[11]. - Total liabilities increased to HKD 208,093,000 as of June 30, 2024, from HKD 204,645,000 as of December 31, 2023, indicating a rise in financial obligations[11]. - As of June 30, 2024, the total equity deficit of the group was approximately HKD 205,309,000, compared to HKD 200,818,000 as of December 31, 2023[38]. - The capital debt ratio as of June 30, 2024, was approximately 101.4%, slightly down from 101.9% as of December 31, 2023[38]. Employee Costs - The company reported a decrease in employee costs, with salaries, bonuses, and allowances totaling HKD 2,616,000 for the six months ended June 30, 2024, down from HKD 7,235,000 in 2023[14]. - Employee costs for the period were approximately HKD 2,836,000, down from HKD 7,400,000 for the same period last year[42]. Business Development and Strategy - The company is focused on developing high-tech electric vehicles and advanced battery materials, indicating ongoing investment in technology and market expansion[6]. - The company has been engaged in electric vehicle development for over ten years and has established technical capabilities in all major areas of electric vehicle production[28]. - The company is exploring industrialization development plans, including upgrading existing assembly facilities and optimizing manufacturing processes, contingent on financing opportunities[28]. - The company is actively seeking potential collaboration or acquisition opportunities to enhance electric vehicle component manufacturing capabilities[29]. - The company has entered into a sale agreement for the proposed acquisition of Best Knob International Limited, which specializes in automotive parts manufacturing[29]. - The company is confident that the acquisition will create synergies, expanding manufacturing capacity and integrating supply chains[29]. - The board is exploring various financing options, including equity financing and bank loans, to support business development[30]. - The company believes that successful financing will enable the implementation of its business development plans in the electric vehicle sector[31]. Accounting and Reporting - The company has not applied any new or revised Hong Kong Financial Reporting Standards that would significantly impact its financial performance or position[4]. - The company has assessed the impact of new accounting standards but has not determined if they will have a significant effect on its operating results and financial condition[4]. Macroeconomic Impact - The macroeconomic environment has negatively impacted the company's electric vehicle development pace, with no revenue or gross profit recorded during the period[26].

R&D and Operational Challenges - The Group's research and development progress was significantly affected by remote working due to COVID-19, impacting operational efficiency [15]. - The uncertain macroeconomic environment and cautious market sentiment significantly hindered the Group's business development, leading to stagnant growth and difficulties in raising capital [79]. - The Group has faced operational challenges due to COVID-19, impacting its transition to industrialization [91][92]. - The Company plans to transition into the production stage and is exploring opportunities for product and manufacturing process development, although progress has been stalled due to COVID-19 [87]. Financial Performance - The Group did not record any revenue or gross profit for the year ended December 31, 2023, maintaining the same status as 2022 [72][77]. - The loss for the year decreased to approximately HK$22.0 million, a significant reduction from HK$620.3 million in 2022, while the loss attributable to shareholders was approximately HK$21.2 million compared to HK$644.3 million in the previous year [73][75]. - Operating expenses decreased to approximately HK$22.4 million from HK$33.9 million in 2022, primarily due to a reduction in employee benefit expenses from approximately HK$18.4 million to HK$13.2 million [72][78]. - The Group reported a loss of HK$21.97 million and an operating cash outflow of HK$4.92 million for the year [155]. Strategic Plans and Future Outlook - The Company is confident in gradually catching up as the global economy recovers, aiming for new milestones in the automotive industry [16]. - The Group plans to double efforts in exploring new capital-raising strategies and expanding development space in 2024 [22]. - The Company aims to recover lost time from 2022 and 2023 during the upcoming year [22]. - The Group is confident that successful implementation of its development plan will secure a stable revenue stream and improve profitability in the future [95][99]. Collaborations and Acquisitions - The Management is committed to seeking collaborations and investment opportunities to improve liquidity and operational performance in the long run [18]. - The Group is actively exploring potential collaboration or acquisition opportunities to enhance electric vehicle manufacturing capabilities [89][92]. - The proposed acquisition of Best Knob International Limited, primarily engaged in manufacturing automobile parts, is valued at HK$392 million, to be settled by promissory notes [113]. - The acquisition is expected to create synergies by expanding manufacturing capabilities and sales channels to leading automobile manufacturers in China [94][98]. Governance and Management - Mr. Feng Rui served as the executive director and CEO of the Group from January 1, 2020, until his resignation on March 5, 2024 [28]. - Mr. Liu Stephen Quan has been an executive director since October 2007, bringing over 15 years of experience in investment management and supply chain business [29]. - Dr. Yeung Yung, aged 66, has been an executive director since November 1998 and is a major shareholder of the Company [31]. - Mr. Li Zhengshan, appointed in June 2010, is responsible for corporate coordination and business development in China [34]. Financial Position and Liquidity - As of December 31, 2023, the total deficiency in equity of the group amounted to approximately HK$200.8 million, compared to HK$179.5 million as of December 31, 2022 [136]. - The gearing ratio as of December 31, 2023, was approximately 101.9%, down from 116.4% in the previous year [136]. - The net current liabilities of the group were approximately HK$201.1 million as of December 31, 2023, compared to HK$179.1 million in the previous year [137]. - The Group has been exploring various fundraising opportunities, including equity financing and debt financing, amid a cautious investment sentiment [163]. Investments and Impairments - The company recognized a net loss of approximately HK$143.6 million from the disposal of its equity interests in associates, specifically in Ningbo Joint Venture and Shenzhen SUSTC [179]. - The Company has provided full impairment on the carrying amounts of the Meilai Investment and Compensation Payable during the year ended December 31, 2022, due to the unlikelihood of recovery [200]. - The Group's investment in Meilai Group was made at a cost of RMB 60 million for a 5% equity stake [191].

智通财经APP讯，正道集团(01188)发布2023年全年业绩，该集团期内未取得收入，股东应占亏损2190.9万港元，同比收窄96.47%;每股基本亏损0.11港仙。 公告称，宏观经济环境不明朗及普遍审慎保守的市场情绪大大窒碍集团业务发展。此外，集团在为业务发展集资方面遭遇前所未见的困难。因此，本年度的业务发展停滞，且集团本年度的收入及毛利或财务表现并无大幅提高。 ...

Financial Performance - For the fiscal year ending December 31, 2023, the company reported a total loss of HKD 21,970,000, a significant improvement compared to a loss of HKD 620,309,000 in the previous year, representing a reduction of approximately 96.5%[4] - The company generated other income of HKD 885,000 in 2023, up from HKD 448,000 in 2022, indicating an increase of approximately 97.5%[4] - The company's operating loss decreased to HKD 21,896,000 in 2023 from HKD 620,155,000 in 2022, reflecting a reduction of about 96.5%[4] - The total comprehensive loss for the year was HKD 21,300,000, significantly lower than HKD 644,521,000 in the previous year, marking a decrease of approximately 96.7%[5] - The group reported a total comprehensive loss of HKD 21,970,000 for the year ending December 31, 2023, compared to a loss of HKD 620,309,000 in 2022, indicating a significant improvement[20] - The reportable segment losses totaled HKD 4,426,000 in 2023, a substantial reduction from HKD 420,859,000 in the previous year[20] - The company reported a basic loss attributable to shareholders of approximately HKD 21,909,000 for the year, compared to a loss of HKD 620,248,000 in the previous year[30] - The company recorded a loss of approximately HKD 22,000,000 for the year, a significant reduction from the previous year's loss of HKD 620,300,000[92] Financial Position - The company's current liabilities net worth was HKD (201,133,000) as of December 31, 2023, compared to HKD (179,098,000) in 2022, indicating a deterioration in financial position[7] - The company had cash and bank balances of HKD 874,000 at the end of 2023, down from HKD 7,541,000 in 2022, representing a decline of approximately 88.4%[7] - The company’s total equity attributable to owners was HKD (202,187,000) in 2023, compared to HKD (180,997,000) in 2022, indicating a worsening equity position[7] - As of December 31, 2023, the company's total equity deficit was approximately HKD 200,800,000, an increase from HKD 179,500,000 on December 31, 2022[114] - The company's capital debt ratio as of December 31, 2023, was approximately 101.9%, down from 116.4% a year earlier[114] - The group’s total liabilities slightly increased to HKD 204,645,000 in 2023 from HKD 208,932,000 in 2022[20] Revenue Generation - The company has not reported any revenue from battery management systems and spare parts sales for both 2023 and 2022, indicating a lack of operational income from its primary business[12] - The group had no revenue from reportable segments for both 2023 and 2022, indicating a need for strategic focus on revenue generation[18] - The company did not generate any revenue or gross profit for the year, consistent with the previous year[96] Going Concern and Financial Support - The company is facing significant uncertainty regarding its ability to continue as a going concern, with reliance on financial support from major shareholders to meet its obligations[9] - The independent auditor expressed significant uncertainty regarding the company's ability to continue as a going concern due to financial instability[42] - The audit committee and board believe that the financial statements for the year ended December 31, 2023, have been prepared on a going concern basis, contingent on continued support from the major shareholder[59] - The company’s major shareholder is expected to continue providing financial support, enhancing the company's financial flexibility and strength[56] Impairment and Asset Recovery - The company has not been able to obtain sufficient audit evidence regarding the recoverability of prepayments to a supplier, resulting in a potential impairment loss of approximately HKD 332,641,000[49] - The company has other receivables with a reported impairment loss of approximately HKD 37,195,000, which raises concerns about asset recoverability[48] - The impairment loss related to supplier prepayments was approximately HKD 332,641,000, with the auditors unable to express an opinion on its recoverability[85] - The company has classified overdue receivables as fully impaired due to the long-term overdue status and low likelihood of recovery[80] Legal and Governance Matters - The company is seeking legal advice regarding a dispute with XALT and is preparing to initiate arbitration while also exploring potential mediation[122] - The board has decided not to pursue further legal action at this stage, considering the group's financial situation and available resources[123] - The company emphasizes its commitment to high levels of corporate governance to enhance transparency and accountability[126] - All directors confirmed compliance with the standard code of conduct for securities trading during the year[127] Strategic Initiatives and Future Plans - The company aims to enhance collaboration with business partners and explore new opportunities to regain growth momentum[95] - The company is actively exploring various financing options, including equity financing, debt financing, and public offerings, amidst a cautious investment environment[57] - The company aims to initiate its industrialization development plan post-COVID-19, contingent on financing opportunities[99] - The company has signed an agreement on August 28, 2022, to acquire Best Knob International Limited for HKD 392,000,000, aimed at enhancing electric vehicle component manufacturing capabilities[101] - The acquisition price was revised to HKD 228,000,000, with payments structured through promissory notes[105] Audit and Compliance - The group faced no significant foreign exchange risk and did not use any financial instruments for hedging purposes[119] - The auditors could not verify the impairment loss for overdue receivables as of December 31, 2022, but confirmed that the balances for trade receivables and other receivables as of December 31, 2022, and December 31, 2023, were fairly presented[80] - The group's auditor confirmed that the preliminary financial statements are consistent with the audited financial statements for the year[128] Employee and Operational Costs - The total employee cost for the year was approximately HKD 13,200,000, a decrease from HKD 18,400,000 in the previous year[120] - Administrative expenses decreased to approximately HKD 22,400,000 from HKD 33,900,000 in the previous year, primarily due to reduced depreciation and employee benefits expenses[96]

Financial Performance - For the six months ended June 30, 2023, the company reported a revenue of HK$0, compared to HK$0 in the same period of 2022[9] - The loss from operations for the period was HK$9,578,000, a decrease of 35% from HK$14,784,000 in the previous year[9] - The total comprehensive loss for the period was HK$8,104,000, down from HK$22,385,000 in the same period of 2022, representing a 64% improvement[9] - For the six months ended June 30, 2023, the Group incurred a total comprehensive loss of approximately HK$9,610,000[20] - The consolidated loss for the period was HK$9,610,000, compared to HK$14,871,000 for the same period in 2022, reflecting a reduction of about 35%[33] - For the six months ended June 30, 2023, the total loss of reportable segments was HK$2,120,000, a decrease from HK$3,267,000 in the same period of 2022, indicating an improvement of approximately 35%[30] - The Group reported a loss of approximately HK$9.6 million for the period, a decrease from HK$14.8 million in the same period last year[74] Assets and Liabilities - The company had current assets of HK$19,757,000 as of June 30, 2023, down from HK$28,991,000 at the end of 2022[11] - Current liabilities were reported at HK$207,535,000, slightly decreased from HK$208,089,000 at the end of 2022[11] - The net current liabilities increased to HK$187,778,000 from HK$179,098,000 at the end of 2022[11] - The company’s total equity was reported as negative HK$187,622,000, compared to negative HK$179,518,000 at the end of 2022[11] - Cash and cash equivalents at the end of the period were HK$4,220,000, down from HK$15,701,000 at the end of the previous year[15] - The Group's total equity attributable to owners decreased to HK$442,618,000 as of June 30, 2023, from HK$465,003,000 at the beginning of the year[13] - The Group's accumulated losses increased to approximately HK$4,477,588,000 as of June 30, 2023, compared to HK$4,468,008,000 at the beginning of the year[13] - As of June 30, 2023, the Group had net current liabilities of approximately HK$187,778,000, indicating significant financial uncertainty[20] Cash Flow and Financing - The net cash used in operating activities for the same period was HK$2,635,000, an improvement from HK$7,256,000 in the previous year[15] - The Group's cash flows from financing activities resulted in a net cash outflow of HK$872,000 for the six months ended June 30, 2023[15] - The Group is exploring various financing alternatives, including equity financing and bank borrowings, to support business development[88] - The company has entered into a subscription agreement for a 2-year, 5% convertible bond in the principal amount of HK$100 million, which may be converted into 1 billion new ordinary shares at an initial conversion price of HK$0.10 per share[100] - The net proceeds from the subscription are expected to amount to approximately HK$99.5 million, with 50% allocated for settling promissory notes related to the acquisition[100] Shareholding and Options - As of June 30, 2023, Sun East LLC holds 2,673,071,189 shares, representing 13.13% of the company's issued share capital[111] - As of June 30, 2023, the total number of shares issued by the company is 20,352,872,747[120] - Dr. Yeung Yung holds an interest in 2,673,071,189 shares through Sun East LLC, representing approximately 13.47% of the total shareholding[117] - The company has granted share options totaling 70,000,000 shares, which represents approximately 0.34% of the total shareholding[121] - The exercise price for share options ranges from HK$0.108 to HK$0.201[121] - The total number of options exercised during the period was zero, indicating no share options were exercised[128] Operational Highlights - The Group's principal activities include the development of high-tech electric motor vehicles and advanced battery materials[17] - The Group has been engaged in electric vehicle development for over a decade, with positive feedback received from prototypes launched since 2017[79] - The Group plans to transition into the production stage, with potential mass production expected by the end of 2024 if development plans are realized by the end of 2023[81] - The Group is actively identifying potential collaboration or acquisition opportunities to enhance electric vehicle manufacturing capabilities[84] - A proposed acquisition of Best Knob International Limited aims to expand manufacturing capabilities and sales channels for electric vehicle components[85] Challenges and Market Conditions - The Group's management highlighted challenges in the electric vehicle development due to a sluggish economic recovery and uncertain macroeconomic environment[67] - The macroeconomic environment and cautious market sentiment have negatively impacted the Group's business development and sales activities[73] Accounting and Compliance - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, with no significant changes to accounting policies or financial statement presentation[26] - The interim results for the period are unaudited but have been reviewed by the auditor, with no disagreements noted during the audit committee's review[150]

Business Development and Strategy - The Company is optimistic about gradually catching up as the global economy recovers, aiming for new milestones in the automotive industry [15]. - The Management is committed to seeking collaborations and investment opportunities to enhance liquidity and operational performance [17]. - The Group plans to identify and secure quality manufacturers and suppliers with high-level engineering capabilities for automotive innovations [17]. - The Group aims to double its efforts in 2023 to compensate for the challenges faced in 2022 [21]. - The Group's strategic direction includes potential mergers and acquisitions to enhance its market position and operational capabilities [35]. - The Group is exploring acquisition opportunities to enhance manufacturing capabilities for electric vehicle components [81]. - The Group believes demand for high-tech, clean, and sustainable transportation will continue to grow due to urbanization and environmental regulations [65]. - The company is focused on the development of its electric vehicle business, with plans to accelerate growth through acquisitions [165][167]. Financial Performance - The Group recorded nil revenue and gross profit for the Year, compared to HK$2.6 million and HK$1.0 million for the year ended 31 December 2021 [62]. - Loss attributable to shareholders for the Year amounted to approximately HK$620.3 million, significantly higher than the loss of HK$55.3 million in 2021 [70]. - The prolonged COVID-19 pandemic has severely hindered business development, leading to stagnant revenue and financial performance [72]. - The Group incurred a loss of HK$620.3 million and an operating cash outflow of HK$17.0 million for the year, indicating material uncertainty regarding its ability to continue as a going concern [149]. - The Group recorded a loss of approximately HK$143.6 million from the sale of its joint ventures as of December 31, 2022 [182]. Governance and Management - The Company has a diverse board with members holding advanced degrees in economics, law, and finance, enhancing its governance and strategic direction [31][42]. - The Group's management team has extensive experience in finance, corporate management, and investment, with over 30 years of combined experience in the industry [30][35]. - The Company emphasizes the importance of corporate governance and compliance, as evidenced by the qualifications of its board members [39][40]. - The Audit Committee believes the company will have sufficient working capital for at least twelve months from the end of the reporting period, ensuring ongoing operations and development [165][167]. Investment and Financing - The Group is actively seeking various financing options, including equity financing, debt financing, and bank borrowings, to support its business development [88]. - A subscription agreement was entered into in September 2022, with potential subscriptions of new shares totaling HK$300 million [89]. - The major shareholder has demonstrated continued support, entering into a shareholder's loan agreement, which contributes to the company's financial stability [166][167]. - The company is exploring various financial alternatives, including equity financing and debt financing, to enhance its financial flexibility [158]. Challenges and Risks - The COVID-19 pandemic has significantly challenged the Group's research and development progress, impacting negotiations with potential partners [59]. - The Group has faced unprecedented adversities in the first half of 2022 due to stringent social distancing measures and a cautious market environment [59]. - The Group's capital debt ratio was approximately 116.4% as of December 31, 2022, compared to 45.1% a year earlier [133]. - The Group has recognized full impairment on the carrying amounts of the Meilai Investment and Compensation Payable for the year ended December 31, 2022, due to the Guarantors' inability to settle [195]. Operational Updates - The Group's flexible battery pack design allows for unique vehicle models in its product portfolio [67]. - The Group is committed to the development of electric vehicles and has been engaged in this sector for over a decade, optimizing prototypes to enhance competitiveness [75]. - The Group plans to transition into the production stage, with potential mass production expected by the end of 2024 if financing opportunities materialize [80]. - The company signed a purchase agreement on August 28, 2022, to acquire Best Knob International Limited, which specializes in automotive parts manufacturing, including transmissions and systems [84].

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的內容概不負責， 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 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。 HYBRID KINETIC GROUP LIMITED 正 道 集 團 有 限 公司 （於百慕達註冊成立之有限公司） 1188 （股份代號： ） 二零二二年全年業績公佈 正道集團有限公司（「本公司」）董事會（「董事會」或「董事」）謹此宣佈，本公司及其附 屬公司（「本集團」）截至二零二二年十二月三十一日止年度（「本年度」）之經審核綜合 財務業績如下： ...

Financial Performance - For the six months ended June 30, 2022, the company reported a revenue of HK$0, compared to HK$1,070,000 in the same period of 2021, indicating a significant decline[9]. - The gross profit for the period was HK$94,000, down from HK$323,000 in the previous year, reflecting a decrease of approximately 71.0%[9]. - The loss from operations was HK$14,784,000, an improvement from a loss of HK$20,941,000 in the prior year, showing a reduction of about 29.0%[9]. - The loss before tax was HK$14,871,000, compared to HK$21,136,000 in the same period last year, indicating a decrease of approximately 29.9%[9]. - The total comprehensive loss for the period was HK$7,514,000, compared to HK$4,551,000 in the previous year, representing an increase of about 65.0%[9]. - The loss attributable to owners of the company was HK$22,385,000, a slight improvement from HK$25,687,000 in the same period of 2021, reflecting a decrease of approximately 12.0%[9]. - Basic and diluted loss per share was HK$0.07, compared to HK$0.10 in the previous year, indicating a reduction of 30.0%[9]. - The company reported a total comprehensive loss of HK$22,330,000 for the six months ended June 30, 2022, compared to a loss of HK$25,685,000 for the same period in 2021, reflecting an improvement of about 13.8%[13]. - The Group reported a loss for the period of approximately HK$14,854,000, compared to a loss of approximately HK$21,120,000 in the same period of 2021, representing a decrease in loss of about 29%[50]. Cash Flow and Assets - The company reported a net cash used in operating activities of HK$7,256,000 for the six months ended June 30, 2022, compared to HK$10,156,000 for the same period in 2021, showing an improvement of approximately 28.5%[16]. - Cash and cash equivalents at the end of the period were HK$15,701,000, a decrease from HK$17,059,000 at the end of June 30, 2021, reflecting a decline of about 8.0%[16]. - As of June 30, 2022, the company's net assets decreased to HK$442,618,000 from HK$465,003,000 as of December 31, 2021, representing a decline of approximately 4.8%[11]. - The total equity attributable to owners of the company was HK$440,977,000 at June 30, 2022, down from HK$463,307,000 at December 31, 2021, indicating a decrease of about 4.8%[11]. - The Group's total liabilities were HK$217,395,000 as of June 30, 2022, compared to HK$209,751,000 at the end of 2021[35]. - The Group had an outstanding shareholder's loan of HK$122.2 million as of June 30, 2022, compared to HK$114.5 million as of December 31, 2021[109]. - The Group had no borrowings as of June 30, 2022[109]. - The Group's gearing ratio as of June 30, 2022, was approximately 49.12%, an increase from 45.11% as of December 31, 2021[109]. Strategic Initiatives - The company is focusing on enhancing its operational efficiency and exploring new market opportunities to drive future growth[7]. - The management is committed to ongoing research and development of new products and technologies to strengthen its market position[7]. - The company is evaluating potential strategic partnerships and acquisitions to expand its market presence and capabilities[7]. - The Group aims to improve battery quality and technology to capture the electric vehicle market[73]. - The Group is exploring strategic alliances and partnerships to enhance technology in high-performance electrical systems and battery technologies[73]. - The Group remains confident in the automotive market, particularly in the PRC, which is the world's largest automotive market[79]. - The Group's expertise in advanced battery technology may drive business growth and generate new revenue streams[79]. - The Board believes that collaboration opportunities in advanced battery technology will be beneficial for the Group's business development[79]. Employee and Operational Metrics - Staff costs, including directors' emoluments, decreased to HK$7,913,000 in 2022 from HK$9,848,000 in 2021, reflecting a reduction of approximately 20%[47]. - The Group had a total of approximately 50 employees as of June 30, 2022, down from 60 employees as of December 31, 2021[113]. - Total staff costs, including Director's remuneration, were approximately HK$7.9 million during the Period, down from approximately HK$9.8 million in the same period of 2021[113]. - The Group's lease interests decreased from HK$195,000 in 2021 to HK$87,000 in 2022, reflecting a decline of approximately 55%[39]. Shareholding and Corporate Governance - Sun East LLC holds 2,673,071,189 shares, representing 13.13% of the issued share capital as of June 30, 2022[87]. - The company has outstanding share options, with Feng Rui holding options for 10,000,000 shares at an exercise price of HK$0.108, expiring on September 5, 2023[95]. - The share option scheme currently in force was adopted on June 13, 2013, and allows for options to be granted to directors and employees[101]. - The percentage of shareholding is calculated based on the total shares issued and does not account for any shares that may be allotted upon the exercise of options[92]. - The company continues to monitor its share options and director holdings as part of its corporate governance strategy[95]. - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors during the period[118]. Regulatory and Compliance Issues - The Company has been suspended from trading since April 1, 2021, and will remain suspended until further notice[133]. - The Company is required to remedy the issues causing its trading suspension and comply with the Listing Rules to the satisfaction of the Stock Exchange[129]. - The Stock Exchange has set a deadline of September 30, 2022, for the Company to address the issues or face potential delisting[126]. - The Company is consulting professional advisers to address the Stock Exchange's concerns and fulfill the requirements under the Resumption Guidance[131]. - The interim results for the Group for the period are unaudited and have been reviewed by the auditor[123].