Financial Performance - For the year ended December 31, 2020, the profit for the year was HK$39,482,000, a recovery from a loss of HK$125,762,000 in 2019[11]. - Total equity increased to HK$1,240,390,000 in 2020, up from HK$1,105,276,000 in 2019[15]. - The Group's net assets attributable to owners of the Company were HK$1,049,978,000 as of December 31, 2020[16]. - Basic and diluted loss per share for 2020 was HK2.11 cents, compared to HK8.77 cents in 2019, with no final dividend recommended due to anticipated funding needs for the Lithium Ion Motive Battery Business[59][64]. - The Group maintained net current assets of approximately HK$531,286,000 as of December 31, 2020, an increase from HK$469,648,000 in 2019, with a gearing ratio of 20.24%[60][65]. - Other income decreased to approximately HK$5,331,000 in 2020 from HK$12,343,000 in 2019, primarily due to a drop in government grants[57][62]. - Finance costs decreased to approximately HK$12,951,000 in 2020 from HK$17,036,000 in 2019, attributed to a reduction in general loan balances[58][63]. Revenue Sources - Revenue from sales of battery products increased by approximately HK$95,733,000 compared to 2019, driven by a market rebound in the new energy vehicle sector[20]. - The Group's main revenue source comes from the property development business, particularly from the handover of units in the Rongzhou Gangjiucheng project in Nanchang, Jiangxi[24]. - The Group's property business generated revenue of approximately HK$603,833,000 from the delivery of phase II property units, a decrease from HK$839,225,000 in 2019, attributed to reduced unit deliveries[50][53]. - Cultural business revenue fell to approximately HK$9,887,000 in 2020 from HK$19,683,000 in 2019, due to fewer events and exhibitions caused by COVID-19[51][53]. - Revenue from the Lithium Ion Motive Battery Business increased to approximately HK$149,171,000 in the first half of 2020, up from HK$53,438,000 in 2019, driven by growth in customer base and product quality enhancement[48][49]. Business Operations - The Group's core business includes manufacturing and sale of lithium-ion motive batteries and related products, which showed improvement despite challenges from COVID-19 and trade frictions[20]. - The Group's operations in the PRC were temporarily closed during the first half of 2020 due to COVID-19, but resumed to normal scale in the second half[19]. - The Group plans to deliver remaining property units in Nanning throughout 2021 and 2022[21]. - The Group will continue construction on the remaining units in Rongzhou Gangjiucheng and the Fengxiang Terrace project, with handover expected to start by the end of 2020 or early 2021[40]. - The Group plans to continue developing existing projects and explore new business opportunities, including medical equipment sales and educational park development, to create synergies with current operations[45]. Strategic Plans - The Group plans to diversify its battery products for wider applications, including home appliances and electrical tools, to enhance product quality and market share[28]. - The Group expects that by 2025, new energy vehicles will account for 20% of total vehicle sales in China, with a 20% decline in subsidies for 2021 compared to 2020[35]. - The Group aims to optimize resource allocation and enhance product quality following the resumption of normal operations post-COVID-19[41]. - The Group is focused on building an international research team to develop diversified battery products and will construct a new production base in Weinan, Shaanxi[41]. - The Group will explore new industries that create synergy with existing businesses to maximize returns for shareholders[28]. Human Resources - As of December 31, 2020, the Group had approximately 504 employees, an increase from 493 employees in 2019[72]. - Total employee costs for the year were approximately HK$68,191,000, down from HK$76,385,000 in 2019, indicating a decrease of about 10.5%[72]. - The Group has developed human resources policies based on performance and merit, with discretionary bonuses linked to both Group and individual performance[72]. - The Group has implemented training programs to promote career advancement for its management and employees[72]. Share Capital and Ownership - As of December 31, 2020, the Company's issued share capital is HK$119,648,570, with a total of 1,196,485,700 ordinary shares issued at HK$0.10 each[116]. - As of December 31, 2020, Cheng Hung Mui holds 775,894,533 shares, representing 64.85% of the total issued share capital of the Company[131]. - Sheng Siguang, an executive Director, has an interest in 13,994,253 shares, accounting for 1.17% of the total issued share capital[146]. - The entire issued share capital of Double Key International Limited is wholly owned by Cheng Hung Mui, linking her interest to the shares held by this corporation[137]. - The Company has a share option scheme adopted on June 13, 2012, under which certain Directors and chief executives hold underlying shares[161]. Financial Management - The Group's financial management, accounting, and treasury functions are overseen by Ms. Cheng Li Zhen, who has over 18 years of experience in the field[109]. - Mr. Zhao Qi Rong, with over 18 years of experience in lithium battery design and production, managed the Lithium Ion Motive Battery Business operations[111]. - Mr. Niu Wen Tao is responsible for product design and development of battery packs, with over 13 years of relevant experience[108]. - The Group's financial statements are audited and presented for the year ended December 31, 2020[116]. Market Outlook - The Group remains cautiously optimistic about the lithium-ion battery market and property market in China despite challenges from the Sino-US trade conflicts and COVID-19[42]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to $1.32 billion[106]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[106]. - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase market penetration[106].

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$422,562,000, a significant increase from HK$891,033,000 in the same period of 2019[9] - Gross profit for the period was HK$171,830,000, compared to HK$111,737,000 in 2019, reflecting a gross profit margin improvement[9] - Profit for the period was HK$48,961,000, a substantial increase from HK$3,979,000 in the previous year[9] - Total comprehensive income for the period was HK$23,697,000, compared to a loss of HK$380,000 in 2019[9] - Basic and diluted earnings per share for the six months ended June 30, 2020, were both 2.23 cents, compared to a loss of 1.82 cents per share in 2019[13] - The company reported a profit from operations of HK$103,016,000, up from HK$35,849,000 in the same period last year[9] - The company reported a total comprehensive income of HK$23,697,000 for the period ended June 30, 2020, compared to a loss of HK$9,216,000 in the same period of 2019[24] - The total profit for the period was HK$48,961,000, significantly higher than HK$3,979,000 in the same period of 2019, indicating a growth of approximately 1,129%[46] Expenses and Cost Management - Distribution and selling expenses decreased to HK$6,313,000 from HK$6,746,000 in 2019, indicating improved cost management[9] - Administrative expenses were reduced to HK$65,181,000 from HK$75,071,000, contributing to the overall profit increase[9] - Cost of sales decreased to HK$250,732,000 from HK$779,296,000, representing a reduction of approximately 67.8% year-over-year[57] - Research and development expenses totaled HK$11,596,000, down from HK$15,421,000, indicating a decrease of about 24.0%[57] - Depreciation expenses for property, plant, and equipment amounted to HK$37,536,000 for the period, compared to HK$26,786,000 in the same period of 2019, an increase of approximately 40%[43] Assets and Liabilities - As of June 30, 2020, non-current assets totaled HK$797,176,000, a decrease from HK$840,035,000 as of December 31, 2019, representing a decline of approximately 5.1%[16] - Current assets amounted to HK$2,238,183,000, down from HK$2,335,477,000, indicating a decrease of about 4.2%[16] - Total liabilities were reported at HK$1,722,239,000, a reduction from HK$1,865,829,000, reflecting a decrease of approximately 7.7%[19] - Net current assets increased to HK$515,944,000 from HK$469,648,000, showing an improvement of around 9.8%[19] - The company's net assets rose to HK$1,128,973,000, compared to HK$1,105,276,000, marking an increase of about 2.1%[19] - Trade and other payables significantly increased to HK$358,876,000 from HK$330,978,000, representing an increase of approximately 8.4%[19] - Borrowings surged to HK$260,360,000, up from HK$263,784,000, indicating a rise of about 1.5%[19] Cash Flow and Financing Activities - For the six months ended June 30, 2020, net cash generated from operating activities was HK$62,679,000, compared to a cash used of HK$51,999,000 in the same period of 2019[25] - Net cash used in investing activities amounted to HK$42,099,000, an increase from HK$19,310,000 in the prior year[25] - The repayment of borrowings was nil in the current period, compared to HK$67,181,000 in the previous period[25] - The company’s cash flows from financing activities generated HK$4,323,000, a decrease from HK$74,435,000 in the prior year[25] - Cash and bank balances improved to HK$58,770,000 from HK$35,389,000, indicating an increase of approximately 66.0%[16] Business Segments and Revenue Sources - The lithium-ion motive battery business generated revenue of HK$58,852,000, compared to HK$20,096,000 in the same period of 2019, indicating a growth of approximately 192%[38] - The property and cultural business reported revenue of HK$363,710,000, down from HK$870,937,000, reflecting a decrease of about 58%[43] - The total profit for reportable segments increased to HK$63,808,000 for the six months ended June 30, 2020, compared to HK$17,295,000 in the same period of 2019, marking a growth of approximately 269%[46] - The segment loss for the lithium-ion motive battery business was HK$52,415,000, while the property and cultural business achieved a profit of HK$116,223,000[43] Market and Strategic Outlook - The company is engaged in the manufacturing and sale of lithium-ion motive batteries and related equipment, indicating a focus on the renewable energy sector[28] - The company has plans for market expansion in the lithium-ion battery sector, aligning with global trends towards renewable energy solutions[28] - The Group expects to increase sales revenue in the second half of 2020 by expanding its market share in electric motorcycles and developing automobile battery products[122][124] - Despite challenges from the Sino-US trade conflicts and COVID-19, the Group remains cautiously optimistic about the lithium-ion motive battery market in China[127] - The Group aims to continue diversifying its battery product portfolio and enhance product quality while constructing a new production base in Weinan, Shaanxi[127] Share Capital and Governance - The issued and fully paid share capital as of June 30, 2020, was 1,196,485,700 shares, totaling HK$119,649,000[102] - The Company has a share option scheme adopted on June 13, 2012, which granted options to relevant Directors and chief executives[171] - The total number of underlying Shares held by Directors and chief executives is recorded in the register as per the SFO requirements[170] - The Company’s substantial shareholders and their interests are documented in compliance with the SFO regulations[184] - The company adheres to the Corporate Governance Code and Report as outlined in Appendix 14 of the Listing Rules, ensuring compliance with governance practices[199]

Financial Performance - The company reported a loss of HKD 125,762,000 for the fiscal year ending December 31, 2019, compared to a profit of HKD 59,163,000 in 2018, indicating a significant decline in performance[8]. - Revenue from the lithium-ion battery business decreased from approximately HKD 83,516,000 in 2018 to about HKD 53,438,000 in 2019, reflecting a challenging market environment[25]. - For the year ended December 31, 2019, the company reported revenue of HKD 912,346,000, an increase from HKD 362,208,000 in 2018, representing a growth of 152%[186]. - The gross profit for 2019 was HKD 103,466,000, compared to HKD 26,067,000 in 2018, indicating a significant improvement in profitability[186]. - The operating loss decreased to HKD 76,077,000 in 2019 from HKD 203,971,000 in 2018, reflecting a reduction of approximately 63%[186]. - The loss attributable to owners of the company from continuing operations was HKD 104,331,000 in 2019, down from HKD 182,155,000 in 2018, a decrease of about 43%[188]. - The total comprehensive expense for the year was HKD 153,521,000, compared to HKD 145,281,000 in 2018, showing a slight increase of 5%[188]. - Basic loss per share from continuing operations was HKD 8.77 in 2019, an improvement from HKD 15.93 in 2018[188]. Assets and Liabilities - Non-current assets amounted to HKD 840,035,000 as of December 31, 2019, a decrease from HKD 779,896,000 in 2018[8]. - The total equity attributable to owners of the company was HKD 976,740,000 in 2019, down from HKD 1,047,318,000 in 2018[8]. - The company's inventory dropped significantly from HKD 59,667,000 in 2018 to HKD 36,163,000 in 2019, a decrease of approximately 39.4%[191]. - The total liabilities decreased from HKD 2,518,951,000 in 2018 to HKD 1,865,829,000 in 2019, a reduction of approximately 26%[191]. - The net asset value decreased to HKD 1,105,276,000 in 2019 from HKD 1,224,405,000 in 2018, reflecting a decline of about 9.7%[193]. Operational Challenges - The company faced challenges due to the tightening of subsidies for new energy vehicles in China, which negatively impacted revenue and gross profit from its core lithium-ion battery business[11]. - The lithium-ion battery business experienced a significant decline in sales, dropping approximately 56% year-on-year due to the impact of the US-China trade tensions and changes in government subsidy policies for new energy vehicles[18]. - The company anticipates that 2020 will be another challenging year due to uncertainties in the global economic environment caused by the COVID-19 pandemic[12]. - The company plans to continue developing existing property projects in Nanning and Nanjing while addressing delays caused by the COVID-19 pandemic[11]. Cost Management and Efficiency - The company is focused on optimizing cost control and improving production and operational efficiency to maximize shareholder returns[12]. - Administrative expenses decreased from approximately HKD 248,675,000 in 2018 to about HKD 174,470,000 in 2019, attributed to reduced impairment losses on older battery products and lower R&D expenses[27]. - Distribution and selling expenses increased to approximately HKD 14,420,000 in 2019 from HKD 10,085,000 in 2018, mainly due to pre-sale activities for the Nanning property project[29]. Future Plans and Strategies - The company aims to improve product quality and establish joint R&D projects to meet higher standards in the coming year[11]. - The company plans to enhance the diversity of its lithium-ion battery product portfolio to improve gross margins and continue the construction of production bases in Shaanxi and Jiangsu[22]. - The company aims to balance sales and credit risks by strictly adhering to its credit policies and implementing effective sales strategies[19]. - The management believes that the long-term market prospects for new energy vehicles remain positive, despite short-term challenges[25]. Shareholder and Capital Management - The board does not recommend the payment of a final dividend for the year due to the anticipated funding requirements for the development of the lithium-ion battery business[33]. - The company raised approximately HKD 5,100,000 from the placement of 10,170,000 shares at a price of HKD 0.5 per share, with net proceeds of about HKD 5,000,000 intended for general working capital[65]. - The company has no distributable reserves as of December 31, 2019, indicating a focus on reinvestment or operational funding[67]. Governance and Compliance - The board consists of four executive directors and three independent non-executive directors, ensuring compliance with the listing rules regarding board composition[117]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the year ending December 31, 2019[115]. - The audit committee consists of three independent non-executive directors, ensuring compliance with listing rules[133]. - The company has established a board diversity policy, considering various factors such as gender, age, and professional experience in board appointments[141]. Risk Management - The company’s financial position and operating performance are subject to various risks, including market risk, foreign exchange risk, credit risk, and liquidity risk[99]. - The internal control committee has sought external professional consultation to review the adequacy and effectiveness of risk management and internal control systems[138]. Employee Management - The company has established a comprehensive employee performance evaluation system to promote career advancement and opportunities[101]. - The remuneration policy for employees is based on individual performance and is reviewed regularly, with discretionary bonuses potentially awarded depending on the company's profitability[144].

(Incorporated in Bermuda with limited liability) Stock Code 股份代號 : 1201 (於百慕達註冊成立之有限 公司) | --- | --- | --- | |-------|-----------------------------------|-------| | | | | | | | | | | | | | | | | | | INFINITE INFINITE ENERGY ENERGY | | | | | | | | | | Annual Report 2018 年報 目錄 企業資料 2 財務概要 3 主席報告 4 管理層之討論與分析 6 董事及高級管理人員簡介 13 董事會報告書 17 企業管治報告 27 獨立核數師報告 41 綜合損益及其他全面收益表 45 | --- | --- | |------------------|-------| | | | | | | | 綜合財務狀況表 | | | 綜合權益變動表 | | | 綜合現金流量表 | | | 綜合財務賬目附註 | | | 物業概要 | | 47 49 50 52 136 天臣 ...