Financial Performance - The company reported a revenue of HKD 178,204,000 for the six months ending September 30, 2024, compared to HKD 54,100,000 in the same period of 2023, representing a significant increase of 229%[2]. - Gross profit for the same period was HKD 96,171,000, up from HKD 7,752,000 year-on-year, indicating a substantial growth in profitability[3]. - The net profit attributable to the owners of the company was HKD 47,143,000, compared to HKD 17,371,000 in the previous year, reflecting a year-on-year increase of 171%[4]. - Basic earnings per share increased to HKD 6.18 from HKD 2.38, marking a growth of 159%[4]. - The company reported a profit before tax of HKD 66,141,000, reflecting a decrease compared to the previous period[23]. - The net profit for the period was HKD 47,143,000, with a significant impact from foreign exchange gains of HKD 14,538,000[23]. - The total income tax expense for the six months ended September 30, 2024, was HKD 18,998,000, compared to an income tax credit of HKD 2,565,000 in the same period of 2023[45]. - The company's profit attributable to owners for the six months ended September 30, 2024, was HKD 47,334,000, compared to HKD 18,176,000 for the same period in 2023, representing a significant increase[52]. Assets and Liabilities - The company's total assets as of September 30, 2024, were HKD 505,580,000, up from HKD 448,471,000 as of March 31, 2024, showing a growth of 13%[6]. - The company’s total liabilities increased to HKD 310,565,000 from HKD 276,697,000, reflecting a rise of 12%[8]. - The total liabilities increased to HKD 429,515 thousand as of September 30, 2024, from HKD 353,218 thousand as of March 31, 2024, indicating a rise of 21.6%[28]. - Non-current liabilities were approximately HKD 310,565,000, up from HKD 276,697,000 as of March 31, 2024, including convertible bonds of approximately HKD 232,799,000[119]. - The company's debt-to-equity ratio was approximately 1.56 as of September 30, 2024, compared to 1.61 as of March 31, 2024[121]. Revenue Breakdown - Total revenue for the six months ended September 30, 2024, was HKD 178,204,000, with contributions from coal mining (HKD 173,906,000), renewable energy (HKD 1,814,000), and IT services (HKD 2,484,000)[23]. - Coal sales contributed HKD 173,906 thousand to the total revenue, compared to HKD 42,744 thousand in the previous year, marking an increase of 307%[34]. - Revenue from coal sales increased significantly to HKD 173,906,000 for the six months ended September 30, 2024, compared to HKD 42,744,000 in the same period of 2023, representing a growth of 307%[36]. - Revenue from IT hardware sales decreased to HKD 248,000 from HKD 2,597,000, a decline of 90%[36]. - The renewable energy business generated service revenue of approximately HKD 1,814,000 for the reporting period, slightly up from HKD 1,759,000 in the previous year[95]. Operational Highlights - The company is engaged in coal mining, renewable energy solutions, and IT services, indicating a diversified business model[11]. - The coal mining segment generated a profit of HKD 79,434,000, while the renewable energy and IT services segments reported losses of HKD 2,886,000 and HKD 2,886,000 respectively[23]. - The company continues to focus on its core operations in coal mining, renewable energy, and IT services across various regions including Hong Kong, Malaysia, Singapore, and the UK[17]. - The company aims to increase coal production capacity to 900,000 tons per year, which is ten times the original design capacity of 90,000 tons per year[109]. Future Outlook and Strategic Plans - The company has not disclosed specific future outlook or guidance in the provided documents[10]. - The company plans to expand its renewable energy solutions, which generated HKD 1,814 thousand in revenue, up from HKD 1,759 thousand in the previous year, indicating a growth of 3.1%[34]. - The board is evaluating strategic options, which may include divesting the information technology services business due to a challenging business environment[117]. - Future capital expenditures are expected to focus on environmental remediation projects and new facilities, funded primarily through coal sales revenue and external bank financing[117]. Compliance and Governance - The company has adopted the "Standards for Directors Conducting Securities Transactions" as per Appendix C3 of the Listing Rules, ensuring compliance throughout the reporting period[133]. - The Audit Committee consists of three independent non-executive directors, who have reviewed the accounting principles and interim financial data during the reporting period[134]. - The interim results announcement and report will be published on the Hong Kong Stock Exchange and the company's website, with distribution to shareholders at an appropriate time[136].

Financial Performance - For the fiscal year ending March 31, 2024, the company reported total revenue of HKD 116,069,000, a decrease of 51.6% compared to HKD 239,886,000 in the previous year[2] - Gross profit for the same period was HKD 43,138,000, down 67.7% from HKD 133,829,000 year-on-year[2] - The company achieved a net profit of HKD 37,697,000, a significant recovery from a net loss of HKD 59,038,000 in the previous year[2] - The company reported a basic earnings per share of HKD 5.11, compared to a loss per share of HKD 7.62 in the previous year[3] - The group reported a profit before tax of HKD 38,484,000 for the year ending March 31, 2024, compared to a loss of HKD 32,417,000 in 2023[42] - The group reported a profit of approximately HKD 37,697,000 for the year, a turnaround from a loss of approximately HKD 59,038,000 last year, representing an increase of about HKD 96,735,000[87] Revenue Breakdown - For the fiscal year ending March 31, 2024, total revenue from external customers was HKD 116,069,000, with contributions from coal mining (HKD 98,060,000), renewable energy (HKD 3,487,000), and IT services (HKD 14,522,000) [23] - The gross profit for the same period was HKD 43,138,000, with coal mining contributing HKD 39,975,000, renewable energy HKD 1,633,000, and IT services HKD 1,530,000 [23] - Coal sales revenue decreased to HKD 98,060,000 in 2024 from HKD 199,198,000 in 2023, reflecting a decline of 50.7%[33] - The revenue from IT services decreased to HKD 14,522,000 in 2024 from HKD 37,094,000 in 2023, a decline of approximately 60.8%[33] - The renewable energy business recorded revenue of approximately HKD 3,487,000, a decrease of about HKD 107,000 or 2.98% due to adverse currency effects[76] Assets and Liabilities - The company's total assets decreased to HKD 448,471,000 from HKD 501,214,000, reflecting a decline of 10.5%[5] - The total liabilities as of March 31, 2024, were HKD 353,218,000, compared to HKD 456,298,000 as of March 31, 2023, indicating a reduction of approximately 22.6%[26] - The total estimated coal reserves as of March 31, 2024, were approximately 63.28 million tons, a slight decrease from 63.91 million tons last year[96] - The group had non-current liabilities of approximately HKD 276,697,000, a decrease from HKD 373,898,000 last year, including convertible bonds and mining rights payables[99] - The asset-to-liability ratio improved to approximately 1.61 from 2.98 last year, indicating better financial stability[99] Cash Flow and Financing - Cash and cash equivalents decreased to HKD 189,307,000 from HKD 234,113,000, a reduction of 19.1%[5] - The company’s financing costs decreased to HKD 3,762,000 from HKD 7,214,000, a reduction of 47.7%[2] - The company reported a total financing cost of HKD 6,015,000 for 2024, down from HKD 7,214,000 in 2023, a decrease of approximately 16.6%[34] - The company has confirmed that it will not incur additional costs related to the original Kaiyuan coal mine, aside from the resource fee already paid[65] Operational Highlights - The company plans to continue expanding its renewable energy solutions in Malaysia and IT services in Hong Kong, Malaysia, Singapore, and the UK [20] - The company achieved a significant milestone by obtaining safety production permits, which is crucial for compliance and future development[61] - The company plans to increase coal production capacity to 900,000 tons per year, with approvals for the expansion plan obtained after several years of regulatory processes[66] - The company successfully expanded its mining area from approximately 1.1596 square kilometers to 4.1123 square kilometers, with a designed capacity of 900,000 tons per year, ten times that of the original capacity[67] Tax and Compliance - The company recognized a tax expense of HKD 787,000 for 2024, significantly lower than HKD 26,621,000 in 2023, indicating a substantial decrease[38] - The effective tax rate for the group in Malaysia is calculated at 24%, with certain entities benefiting from reduced rates of 15% and 17% on specified income brackets[40] - The group’s entities in Singapore benefit from a 75% tax exemption on the first SGD 10,000 of taxable income and an additional 50% exemption on the next SGD 190,000[41] - The company has implemented targeted disclosure regulations to help investors understand tax risks associated with international tax reforms [18] Employee and Administrative Costs - Employee costs (excluding directors' remuneration) decreased to HKD 33,715,000 in 2024 from HKD 40,558,000 in 2023, a reduction of about 16.9%[35] - Administrative and other operating expenses increased by approximately HKD 12,692,000 or about 25.96%, totaling approximately HKD 61,588,000, mainly due to increased environmental-related costs and depreciation[85] Dividends and Shareholder Information - The group has not declared or recommended any dividends for the year ending March 31, 2024, consistent with 2023[42] - The group had 765,373,584 issued ordinary shares as of March 31, 2024[102]

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 54,100,000, a decrease of 51% compared to HKD 110,712,000 for the same period in 2022[14]. - Gross profit for the period was HKD 7,752,000, down 87% from HKD 60,716,000 year-on-year[14]. - The company reported a net profit of HKD 17,371,000 for the period, a significant recovery from a net loss of HKD 241,725,000 in the previous year[14]. - Basic earnings per share for the period was HKD 2.38, compared to a loss per share of HKD 31.53 in the same period last year[14]. - The total comprehensive loss for the period was HKD 1,046,000, significantly improved from a total comprehensive loss of HKD 280,923,000 in the previous year[19]. - The company reported a net profit of HKD 18,176,000 for the six months ended September 30, 2023, compared to a loss of HKD 241,353,000 in the same period last year[19]. - The group recorded a profit of approximately HKD 17,371,000, compared to a loss of approximately HKD 241,725,000 in the same period last year[127]. Assets and Liabilities - Total assets as of September 30, 2023, were HKD 455,795,000, down from HKD 501,214,000 as of March 31, 2023[15]. - The company’s non-current assets totaled HKD 320,881,000, a slight decrease from HKD 332,702,000 at the end of the previous fiscal year[15]. - The company’s total assets include property, plant and equipment, intangible assets, and cash equivalents[34]. - The total liabilities as of September 30, 2023, were HKD 388,156,000, compared to HKD 456,298,000 as of March 31, 2023, indicating a reduction of 14.9%[42]. - The company’s non-current liabilities were approximately HKD 330,239,000, down from HKD 373,898,000 as of March 31, 2023, including convertible bonds of about HKD 257,079,000[157]. - The asset-to-liability ratio improved to approximately 2.65 from 2.98 as of March 31, 2023, indicating a reduction in total debt relative to total equity[157]. Cash Flow and Expenditures - Cash and cash equivalents decreased to HKD 181,023,000 from HKD 234,113,000 over the same period[15]. - Operating cash flow for the period was a net outflow of HKD 16,712,000, a decline from a net inflow of HKD 26,553,000 in the previous year[26]. - The company incurred a total of HKD 8,578,000 in capital expenditures for property, plant, and equipment during the six months, up from HKD 4,067,000 in the prior year[26]. - Capital expenditures for property, plant, and equipment during the six months ended September 30, 2023, were HKD 10,775,000, compared to HKD 10,533,000 in the previous year[40]. - The company recognized an additional environmental-related cost of HKD 7,043,000 due to new regulations in Xinjiang, China[51]. Revenue Breakdown - Revenue from the coal mining business for the six months ended September 30, 2023, was HKD 42,744,000, a significant decrease from HKD 94,376,000 in the same period of 2022, reflecting a decline of 54.8%[45]. - IT consulting and technical services revenue increased to HKD 4,445,000, up 36% from HKD 3,276,000 in the previous year[49]. - The company reported a significant decline in revenue from IT hardware sales, which fell to HKD 2,597,000 from HKD 6,107,000[49]. - The revenue recognized over time from renewable energy solutions was HKD 1,759,000, slightly down from HKD 1,804,000 in the previous year[49]. - Coal sales revenue was HKD 42,744,000, down 55% from HKD 94,376,000 year-over-year[49]. Foreign Exchange and Financial Instruments - The company incurred a net foreign exchange loss of HKD 3,170,000, compared to a loss of HKD 7,442,000 in the previous year[14]. - The company experienced a foreign exchange loss of HKD 17,759,000 related to convertible bonds during the reporting period[65]. - The fair value of convertible bonds classified as financial liabilities measured at fair value through profit or loss was HKD 257,079,000 as of September 30, 2023, down from HKD 299,372,000 as of March 31, 2023[104]. Corporate Strategy and Future Outlook - The company has not provided specific guidance for future performance but indicated ongoing efforts in market expansion and product development[14]. - The company aims to diversify its business portfolio into higher growth sectors, particularly in technology and renewable energy, following acquisitions in 2018 and 2019[153]. - The company continues to evaluate its IT service business model and strategy in response to adverse economic conditions affecting operations in Hong Kong[153]. - The company aims to become a diversified business entity in the long term[114]. Shareholder Information - The weighted average number of ordinary shares used for calculating basic earnings per share was 763,373,584 for the six months ended September 30, 2023, slightly down from 765,373,584 in 2022[61]. - The company has a total of 765,373,584 ordinary shares issued and fully paid as of September 30, 2023, with a par value of HKD 0.10 per share[90]. - The convertible bonds could potentially issue an additional 1,000,000,000 shares, which would increase the total to approximately 205.08% of the company's issued shares[177]. Governance and Compliance - The board of directors has confirmed compliance with the trading code throughout the reporting period[178]. - The audit committee consists of three independent non-executive directors, ensuring oversight of accounting principles and financial reporting[179].

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告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 NAN NAN RESOURCES ENTERPRISE LIMITED 南南資源實業有限公司 （於百慕達註冊成立之有限公司） （股份代號：1229） 截至二零二三年九月三十日止六個月之 中期業績公告 南南資源實業有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其附屬 公司（統稱「本集團」）截至二零二三年九月三十日止六個月（「報告期間」）之未經審核簡明 綜合中期業績，連同二零二二年同期之比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 收益 4 54,100 110,712 ...

Financial Performance - For the year ended March 31, 2023, the Group recorded a revenue of approximately HK$239,886,000, a decrease of 20.1% from HK$300,241,000 in 2022[14] - Gross profit for the year was approximately HK$133,829,000, down 17.8% from HK$162,596,000 in the previous year[14] - The Group reported a net loss of approximately HK$59,038,000, compared to a net profit of approximately HK$66,000,000 in 2022, representing a downturn of approximately HK$125,038,000[16] - The downturn in performance was primarily attributed to the net effects of various factors, including decreased gross profit and increased expenses[16] - Revenue from the coal mining business decreased by approximately HK$76,265,000 or approximately 27.69%, totaling approximately HK$199,198,000, primarily due to the COVID-19 outbreak and lockdown in Xinjiang[39] - The Group sold approximately 1,059,859 tonnes of coal during the Year, a decrease of approximately 46.69% compared to approximately 1,988,282 tonnes in the previous year, although the average selling price increased by approximately HK$49.41 per tonne or approximately 35.66%[39] - The gross profit for the Year decreased to approximately HK$133,829,000, a decrease of approximately HK$28,767,000 or approximately 17.69%, while the gross profit margin increased by approximately 1.63% to approximately 55.79%[51] - The IT Services business revenue increased by approximately HK$16,097,000 or approximately 76.66%, totaling approximately HK$37,094,000, due to recovery from COVID-19[41] - Other revenue for the Year was approximately HK$4,147,000, representing an increase of approximately HK$2,842,000 or approximately 217.78% compared to the previous year, mainly due to interest income and government grants[52] Expenses and Losses - Administrative and other operating expenses increased by approximately HK$6,812,000, from HK$42,084,000 in 2022 to HK$48,896,000 in 2023[17] - Loss on fair value and loss arising from modification of convertible bonds was approximately HK$116,835,000, significantly higher than the loss of approximately HK$11,254,000 in 2022[17] - Finance costs decreased by approximately HK$3,128,000, from HK$10,342,000 in 2022 to HK$7,214,000 in 2023[17] - Income tax expenses increased by approximately HK$3,681,000, from HK$22,940,000 in 2022 to HK$26,621,000 in 2023[17] - The loss was influenced by a fair value loss on convertible bonds of approximately HK$116,835,000, compared to a loss of approximately HK$11,254,000 in 2022, reflecting a significant increase in fair value[59] Business Segments and Operations - The Group operates in three business segments: coal mining, renewable energy, and IT services, with a primary focus on coal mining in Xinjiang, China[19] - The Group aims to diversify its business in the long run while continuing to develop its existing operations[19] - The coal produced in Xinjiang is primarily consumed locally due to high logistics and transportation costs[19] - The Group's strategy includes optimizing and upgrading the Kaiyuan Mine to increase its mining area and efficiency[20] - The Group completed the acquisition of NEFIN Group in October 2018, focusing on renewable energy solutions in Malaysia, and has since allocated resources to solar energy projects[19] - The acquisition of Harbour Group Holdings in April 2019 expanded the Group's IT services business into the UK, Malaysia, and Singapore[19] Mining Rights and Resources - The acquisition of the new mining right for the Enlarged Kaiyuan Mine includes an expanded mining area of 4.1123 km², with an estimated coal resource of 41.6433 million tonnes over a mining life of 30 years[26] - The total consideration for the new mining right acquisition is RMB 160,978,000, to be paid in fifteen installments, with the first installment of RMB 32,200,000 already paid[26] - The new mining permit for the Enlarged Kaiyuan Mine has been renewed for ten years, extending the mining term to October 2031[26] - The estimated remaining coal reserve in the Xinjiang mine as of March 31, 2023, was approximately 63.91 million tonnes, a decrease from approximately 65.22 million tonnes in the previous year[84] - As of March 31, 2023, the estimated remaining coal reserves of the Group's Kaiyuan Mine are approximately 5.11 million tons, while the total estimated reserves in Xinjiang are approximately 63.91 million tons[88] - The current mining right is set to expire in August 2049, and the Group is eligible for renewal without significant incremental costs[98] Financial Position and Borrowings - As of March 31, 2023, the Group's total interest-bearing borrowings amounted to approximately HK$3,477,000, a significant decrease from approximately HK$37,254,000 in 2022[118] - The average effective interest rates on the interest-bearing borrowings ranged from 3.3% to 6.0% per annum, compared to 3.9% to 9.7% in 2022[118] - Non-current liabilities increased to approximately HK$373,898,000 in 2023 from approximately HK$85,091,000 in 2022, primarily due to the non-current portion of Convertible Bonds[118] - The Group's gearing ratio rose to approximately 2.98 in 2023 from approximately 1.37 in 2022, indicating a higher level of debt relative to equity[118] - Net current assets increased to approximately HK$168,512,000 in 2023 from net current liabilities of approximately HK$32,068,000 in 2022[120] - Cash and cash equivalents decreased to approximately HK$234,113,000 in 2023 from approximately HK$260,753,000 in 2022, contributing to total current assets of approximately HK$250,912,000[120] - Current liabilities significantly reduced to approximately HK$82,400,000 in 2023 from approximately HK$306,990,000 in 2022, mainly due to a decrease in interest-bearing borrowings[120] Corporate Governance - The company is committed to maintaining statutory and regulatory standards and adherence to corporate governance principles emphasizing transparency, independence, accountability, responsibility, and fairness[151] - The Board is collectively responsible for promoting the success of the company by directing and supervising its affairs[153] - The executive Directors and senior management are responsible for the day-to-day operations of the company, while independent non-executive Directors ensure high standards of financial and management reporting[154] - The Company has complied with the code provisions set out in the Corporate Governance Code throughout the year, with a noted deviation from code provision C.2.1[152] - The Board consists of three executive directors and three independent non-executive directors, ensuring a balance of skills and diversity[158] - The Company held four regular board meetings and one ad-hoc meeting during the year, with all directors attending 100% of the meetings[168] - The independent non-executive directors represent half of the Board, with two holding appropriate professional qualifications in accounting or related financial management expertise[175] - The Board Diversity Policy was adopted on January 1, 2022, focusing on gender, age, cultural background, and professional experience for board appointments[159] - The Nomination Committee is responsible for implementing and monitoring the Board Diversity Policy, with annual reviews to ensure effectiveness[163] - The Company complies with Listing Rules requiring at least three independent non-executive directors, constituting one-third of the Board[167] - Directors are subject to retirement by rotation at least once every three years during the annual general meeting[174] - The minutes of Board meetings are maintained by the company secretary and are available for inspection by any director[173] - The Company has extended service agreements for two independent non-executive directors for one year starting March 25, 2023[176] - The Board ensures that all members receive timely and necessary information to fulfill their duties effectively[170] - The Company has received annual confirmations of independence from all independent non-executive directors, and the Nomination Committee has assessed their independence as of June 27, 2023[177] - The Board comprises three independent non-executive directors, representing 50% of the Board, with two having appropriate professional qualifications in accounting or related financial management[180] - The Independent View Policy requires at least three independent non-executive directors, with at least one serving less than nine years on the Board[186] - All directors have confirmed compliance with the Model Code for Securities Transactions throughout the year[196] - The Company provides appropriate insurance cover for directors and officers against potential legal actions[182] - The Board is satisfied with the implementation and effectiveness of the Independent View Policy for the year[195] - The Company has adopted a code of conduct regarding securities transactions by directors as per the Listing Rules[199] - The Board committees are required to comprise a majority of independent non-executive directors[187] - The Company conducts internal Board evaluations led by an independent non-executive director to assess performance[193] - The roles of chairman and chief executive are separated as per the Code provision C.2.1[200]

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告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 NAN NAN RESOURCES ENTERPRISE LIMITED 南南資源實業有限公司 （於百慕達註冊成立之有限公司） （股份代號：1229） 截至二零二三年三月三十一日止年度之 年度業績公告 南南資源實業有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及 其附屬公司（統稱「本集團」）截至二零二三年三月三十一日止年度（「本年度」）之綜 合業績，連同過往年度之比較數字載列如下： 綜合損益及其他全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 4 239,886 300,241 已售服務及貨品成本 (106,057) (137,645) 毛利 133,829 162,596 其他收益 4,147 1,305 銷售及分銷費用 (1,394) (1,376) ...

Financial Performance - For the six months ended September 30, 2022, the company reported revenue of HKD 110,712,000, a decrease of 6.4% from HKD 117,995,000 in the same period last year[13]. - Gross profit for the same period was HKD 60,716,000, representing an increase of 40.5% compared to HKD 43,262,000 in the previous year[13]. - The company recorded a loss before tax of HKD 232,532,000, compared to a loss of HKD 29,873,000 in the prior year, indicating a significant decline in performance[13]. - The net loss for the period was HKD 241,725,000, a substantial increase from the net loss of HKD 29,900,000 reported in the previous year[13]. - The total comprehensive loss for the period amounted to HKD 281,355,000, compared to HKD 24,406,000 in the same period last year[13]. - Basic and diluted loss per share was HKD 31.53, a significant increase from HKD 3.87 in the prior year[13]. - The company experienced a foreign exchange loss of HKD 44,352,000, compared to a gain of HKD 3,986,000 in the previous year, impacting overall financial results[13]. - The company reported other comprehensive losses totaling HKD 39,630,000 for the period, compared to a gain of HKD 5,494,000 in the previous year[13]. - The company’s administrative and other operating expenses were HKD 18,984,000, up from HKD 17,199,000 in the previous year, reflecting increased operational costs[13]. Assets and Liabilities - As of September 30, 2022, non-current assets totaled HKD 321,512,000, a decrease from HKD 341,348,000 as of March 31, 2022, representing a decline of approximately 5.4%[15]. - Current assets amounted to HKD 222,272,000, down from HKD 274,922,000, indicating a decrease of about 19.2%[15]. - The company's total liabilities increased to HKD 522,182,000 from HKD 306,990,000, reflecting a rise of approximately 70.5%[15]. - Cash and cash equivalents decreased to HKD 203,124,000 from HKD 260,753,000, a reduction of about 22%[15]. - Inventory levels rose sharply to HKD 7,032,000 from HKD 2,930,000, marking an increase of approximately 139%[15]. - The company reported a net current liability of HKD 299,910,000, compared to HKD 32,068,000 in the previous period, indicating a significant deterioration in liquidity[15]. - Total liabilities exceeded total assets by approximately HKD 57,166,000 as of September 30, 2022[35]. - The group’s current liabilities exceeded current assets by approximately HKD 299,910,000[35]. Convertible Bonds - Convertible bonds, classified at fair value, amounted to approximately HKD 446,076,000, raising significant uncertainty regarding the group's ability to continue as a going concern[35]. - The maturity and conversion period of the convertible bonds were extended by 36 months to March 13, 2026, pending approval from independent shareholders[36]. - The fair value of the fourth convertible bond as of September 30, 2022, is approximately HKD 446,076,000, an increase from HKD 182,537,000 as of March 31, 2022[101]. - The fair value change recognized in profit or loss for the fourth convertible bond during the reporting period is HKD 263,539,000, compared to HKD 11,254,000 for the previous period[101]. - The company has extended the maturity of the fourth convertible bond by an additional 36 months, now due on March 13, 2026[102]. Revenue Breakdown - Total revenue for the six months ended September 30, 2022, was HKD 110,712,000, with contributions from coal business (HKD 94,376,000), renewable energy (HKD 1,804,000), and IT services (HKD 14,532,000)[43]. - Revenue from coal sales was HKD 94,376, down 10.2% from HKD 105,030 in the previous year[55]. - Revenue from renewable energy solutions was HKD 1,804, slightly down from HKD 1,893 in the prior year[55]. - Revenue from IT services totaled HKD 14,532, an increase of 31.5% compared to HKD 11,072 in the previous year[55]. Operational Insights - The company is focusing on improving its financial performance and exploring new strategies for market expansion and product development in the future[13]. - The company continues to focus on developing its existing businesses while aiming to diversify into multiple business sectors in the long term[119]. - The company has committed capital expenditures of approximately HKD 10,885,000 as of September 30, 2022, compared to HKD 8,274,000 as of March 31, 2022[117]. - The company has made prepayments for property, plant, and equipment amounting to HKD 14,575,000, up from HKD 5,306,000, reflecting an increase of approximately 175%[15]. Taxation - The total income tax expense for the six months ended September 30, 2022, was HKD 9,193,000, a decrease of 66% compared to HKD 27,000,000 for the same period in 2021[62]. - The effective tax rate for the company's subsidiaries in mainland China was 25% for the periods ended September 30, 2022, and 2021[60]. - The company reported no tax losses or taxable profits from Hong Kong, Malaysia, Singapore, and the UK during the six months ended September 30, 2022[62]. Employee and Governance - The total employee cost (excluding directors' remuneration) during the reporting period was approximately HKD 17,023,000, a decrease from HKD 38,954,000 in the previous period[175]. - The company has 145 employees as of September 30, 2022, an increase from 140 employees as of March 31, 2022[175]. - The company has complied with the Corporate Governance Code during the reporting period, except for the deviation regarding the separation of the roles of Chairman and CEO[188]. - The audit committee consists of three independent non-executive directors, who reviewed the accounting principles and interim financial information during the reporting period[192].

Financial Performance - For the year ended March 31, 2022, the Group recorded revenue of approximately HK$300,241,000, representing an increase of 130% compared to HK$130,521,000 in 2021[14] - Gross profit for the year was approximately HK$162,596,000, up from HK$54,607,000 in the previous year, indicating a significant improvement in profitability[14] - The Group achieved a net profit of approximately HK$66,000,000 for the year, a turnaround of approximately HK$68,208,000 compared to a net loss of HK$2,208,000 in 2021[15] - The Group's profit before tax was approximately HK$88,940,000, compared to a loss of HK$16,534,000 in the previous year, showcasing a strong operational recovery[14] - The gross profit margin increased by approximately 12.32% to approximately 54.16% for the Year compared with the previous year[62] - The Group reported a profit for the year of approximately HK$66,000,000, a turnaround from a loss of approximately HK$2,208,000 in the previous year, representing an improvement of approximately HK$68,208,000[70] Revenue Breakdown - The coal mining business generated revenue of approximately HK$275,463,000, an increase of approximately HK$174,775,000 or approximately 173.58% compared to approximately HK$100,688,000 in the previous year[49] - The Group sold approximately 1,988,282 tonnes of coal during the Year, which is an increase of approximately 38.23% in volume compared to the previous year[49] - The renewable energy business recorded a turnover of approximately HK$3,781,000, an increase of approximately HK$2,496,000 compared to approximately HK$1,285,000 in the previous year[50] - The IT Services business contributed a revenue of approximately HK$20,997,000, representing a decrease of approximately HK$7,551,000 or approximately 26.45% due to the ongoing COVID-19 situation[51] Expenses and Costs - Administrative and other operating expenses increased to HK$42,084,000 from HK$34,505,000 in 2021, reflecting higher operational costs[14] - Selling and distribution expenses rose to HK$1,376,000, compared to HK$642,000 in the previous year, indicating increased marketing efforts[14] - The total cost of services and goods sold was HK$137,645,000, up from HK$75,914,000 in the previous year, reflecting increased sales volume[14] - The cost of sales for the coal mining business was approximately HK$117,557,000, which increased in line with the increase in sales volume and selling price during the Year[52] Acquisitions and Business Segments - The Group is engaged in three business segments: coal mining, renewable energy, and IT services[19] - The acquisition of NEFIN Group focused on renewable energy solutions in Malaysia[19] - The acquisition of Harbour Group Holdings expanded IT services into the UK, Malaysia, and Singapore[19] - The acquisition of the New Mining Right for the Enlarged Kaiyuan Mine was completed for a consideration of RMB 160,978,000, covering an enlarged mining area of 4.1123 km² for a term of 30 years from August 2019 to August 2049[22] - The Group's coal resources were expanded through the acquisition, aligning with its strategy to enhance coal mining operations[43] Financial Position and Liabilities - As of March 31, 2022, the Group had net current liabilities of approximately HK$32,068,000, a decrease from net current assets of approximately HK$87,610,000 in 2021[121] - Cash and cash equivalents amounted to approximately HK$260,753,000, up from approximately HK$204,079,000 in 2021, contributing to total current assets of approximately HK$274,922,000[121] - Current liabilities increased to approximately HK$306,990,000 from approximately HK$152,732,000 in 2021, primarily due to trade and other payables and the current portion of Convertible Bonds[121] - The Group's gearing ratio improved to approximately 1.37 from 2.16 in 2021, indicating a stronger financial position[121] - The Group's interest-bearing borrowings were approximately HK$37,254,000, down from approximately HK$60,636,000 in 2021, indicating a reduction in debt[125] Governance and Corporate Structure - The Company is committed to maintaining statutory and regulatory standards and adherence to corporate governance principles emphasizing transparency, independence, accountability, responsibility, and fairness[147] - The Board currently comprises three executive directors and three independent non-executive directors, ensuring a balance of skills, knowledge, and experience[156] - The Company has complied with the Corporate Governance Code throughout the Year, with a noted deviation from code provision A.2.1[148] - The independent non-executive directors are responsible for ensuring high standards of financial and management reporting to the Board and shareholders[150] - The company provides appropriate insurance coverage for directors and officers against potential legal actions[175] Risk Management and Internal Controls - The Audit Committee reviewed the effectiveness of risk management and internal control systems during the year[194] - Each member of the Audit Committee has unrestricted access to the auditor and all senior management of the Group[194] - The Audit Committee considered major internal audit issues for the year ended March 31, 2021[194] - The Audit Committee reviewed significant issues on operational and compliance controls[191] Future Outlook and Strategy - The Group aims to grow into a diversified business in the long run[19] - Future capital expenditures are anticipated for new plants and machines for environmental protection and safety improvements[44] - Funding for future expenditures is expected to primarily come from coal sales revenue and external banking facilities[44] - The Group expects existing customers in the IT and communication industry to gradually recover post-pandemic, supported by government measures in Hong Kong[94]

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 117,995,000, compared to HKD 25,082,000 for the same period in 2020, representing a significant increase[12]. - Gross profit for the period was HKD 43,262,000, compared to a gross loss of HKD 4,130,000 in the previous year[12]. - The company reported a net loss of HKD 29,900,000 for the six months ended September 30, 2021, compared to a net loss of HKD 20,781,000 in the same period of 2020[12]. - Basic and diluted loss per share was HKD 3.87, compared to HKD 2.76 for the same period in the previous year[12]. - Total comprehensive loss for the period was HKD 24,406,000, compared to HKD 10,240,000 in the same period of 2020[12]. - The company reported a basic loss attributable to owners of HKD 29,641,000 for the six months ended September 30, 2021, compared to a loss of HKD 21,141,000 for the same period in 2020, representing an increase in loss of approximately 40%[61]. Cash Flow and Investments - For the six months ended September 30, 2021, the net cash generated from operating activities was HKD 38,619 thousand, compared to a net cash used of HKD 21,821 thousand in the same period of 2020, representing a significant improvement[27]. - The net cash used in investing activities was HKD 26,475 thousand for the six months ended September 30, 2021, compared to a net cash generated of HKD 1,819 thousand in the same period of 2020, indicating a shift towards increased investment[27]. - The total cash and cash equivalents increased to HKD 216,417 thousand as of September 30, 2021, up from HKD 155,967 thousand at the end of the same period in 2020, showing a positive cash flow trend[27]. - The company reported a cash balance of HKD 189,768 thousand in bank deposits and cash, compared to HKD 101,905 thousand in the previous year, indicating improved liquidity[27]. Assets and Liabilities - As of September 30, 2021, non-current assets increased to HKD 342,806 thousand from HKD 319,846 thousand as of March 31, 2021, representing a growth of approximately 7.5%[14]. - Current assets decreased to HKD 232,119 thousand from HKD 240,342 thousand, a decline of about 3.4%[14]. - Total liabilities increased to HKD 308,044 thousand from HKD 257,873 thousand, marking an increase of approximately 19.4%[16]. - The company's equity attributable to owners decreased to HKD 122,183 thousand from HKD 146,307 thousand, a decrease of around 16.5%[16]. - The company's total assets less current liabilities increased to HKD 433,221 thousand from HKD 407,456 thousand, reflecting a growth of about 6.3%[16]. Segment Performance - The company operates in three main segments: coal mining, renewable energy solutions, and IT services, with a focus on resource allocation and performance evaluation[36]. - The coal mining business generated revenue of HKD 105,030,000, while renewable energy and IT services contributed HKD 1,893,000 and HKD 11,072,000, respectively[40]. - Revenue from coal sales reached HKD 105,030,000 for the six months ended September 30, 2021, compared to HKD 11,531,000 in the same period of 2020, representing a significant increase of 810.5%[51]. - Renewable energy solutions service revenue was HKD 1,893,000 for the six months ended September 30, 2021, up from HKD 384,000 in 2020, marking an increase of 394.3%[51]. - The IT services business generated service revenue of approximately HKD 11,072,000, a decrease of about 15.9% compared to HKD 13,167,000 in the previous year, attributed to intense competition and the ongoing impact of COVID-19[130]. Operational Changes and Strategies - The company aims to enhance its market presence and explore new strategies for growth in the upcoming periods[12]. - The company plans to continue focusing on the development of existing businesses while aiming to diversify its operations in the long term[126]. - The group continues to seek market expansion and development in technology and renewable energy sectors, aiming for diversification into higher growth industries[166]. Employee and Management Costs - Employee costs (excluding directors' remuneration) increased to HKD 19,034,000 in 2021 from HKD 16,612,000 in 2020, reflecting a rise of 14.4%[54]. - The total compensation for key management personnel for the six months ended September 30, 2021, was HKD 3,633,000, a slight decrease from HKD 3,685,000 in the previous year[123]. Shareholder Information - The company has issued a total of 765,373,584 ordinary shares with a par value of HKD 0.10, amounting to HKD 76,537 million as of September 30, 2021[91]. - The direct interest held by Jinbiao Investment Limited is 569,616,589 shares, with an additional potential issuance of 1,000,000,000 shares from convertible bonds, which could further increase their stake[196][197]. Convertible Bonds and Financing - The fair value of the convertible bonds as of September 30, 2021, was approximately HKD 216,573,000, an increase of about HKD 45,290,000 from HKD 171,283,000 as of March 31, 2021[142]. - The company has extended the maturity date of the convertible bonds multiple times, with the latest extension pushing the maturity to March 13, 2023[98]. - The discount rate used for the valuation of the convertible bonds was 13.13% as of September 30, 2021[119]. Regulatory and Compliance - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that would have a significant impact on its financial performance or position during the reporting period[33]. - The financial data presented is unaudited but has been reviewed by the company's audit committee and external auditors in accordance with the relevant standards[31].

Financial Performance - For the year ended March 31, 2021, the Group recorded revenue of approximately HK$130,521,000, representing an increase of 1.2% compared to HK$127,989,000 in 2020[12]. - Gross profit for the year was approximately HK$54,607,000, up from HK$52,214,000 in the previous year, indicating a growth of 4.6%[12]. - The net loss for the year was approximately HK$2,208,000, a significant improvement of approximately HK$22,396,000 compared to a loss of HK$24,604,000 in 2020[12]. - The Group achieved an exchange gain of approximately HK$7,979,000 in 2021, compared to an exchange loss of approximately HK$4,672,000 in 2020[12]. - The overall performance improvement is attributed to effective cost management and favorable exchange rate movements[12]. - Gross profit increased by approximately HK$2,393,000[14]. - Other revenue increased by approximately HK$2,828,000[14]. - The Group recorded a revenue of approximately HK$130,521,000 for the Year, representing an increase of approximately HK$2,532,000 or approximately 1.98% compared to the previous year[29]. - The coal mining business generated revenue of approximately HK$100,688,000, an increase of approximately HK$26,778,000 or approximately 36.23% compared to approximately HK$73,910,000 last year, with coal sales volume increasing by approximately 38.64%[30]. - The renewable energy business recorded a turnover of approximately HK$1,285,000, up from approximately HK$775,000 in the previous year, primarily due to enhanced production capacity[31]. - The IT Services business revenue decreased to approximately HK$28,548,000, a decline of approximately HK$24,756,000 or approximately 46.44% compared to the previous year, mainly due to prolonged social unrest and COVID-19 impacts[30]. Cost Management and Expenses - The Group's administrative and other operating expenses were approximately HK$34,505,000 for the year, compared to HK$49,411,000 in the previous year, reflecting a decrease of 30.1%[12]. - The reduction in loss was primarily due to savings on supplemental resources fees, which were approximately HK$85,688,000 in 2020[12]. - Administrative and other operating expenses decreased by approximately HK$14,906,000[14]. - The cost of services and goods sold in the IT services business for the year was approximately HK$21,484,000, a decrease from HK$43,704,000 in 2020[40]. - The Group's total staff costs (excluding directors' emoluments) for the year were approximately HK$33,406,000, down from approximately HK$50,609,000 in 2020, indicating a significant reduction in manpower[86]. Acquisitions and Business Segments - The Group is engaged in three business segments: coal mining, renewable energy, and IT services[16]. - The acquisition of NEFIN Group focused on renewable energy solutions in Malaysia[16]. - The Group aims to grow into a diversified business enterprise[16]. - The acquisition of the New Mining Right for the Enlarged Kaiyuan Mine was completed for a consideration of RMB 160,978,000, covering an area of 4.1123 km² for a mining life of 30 years[18]. - The Group's subsidiaries are primarily engaged in coal mining and sales, renewable energy solutions, and IT outsourcing services[175]. Impairment and Financial Adjustments - The impairment loss on goodwill for the year was approximately HK$24,857,000, compared to HK$71,443,000 in 2020, indicating a reduction of 65.2%[12]. - Impairment loss on goodwill was approximately HK$14,503,000, compared to approximately HK$3,831,000 in the previous year[45]. - The recoverable amount of the IT Services cash-generating unit was approximately HK$18,772,000, which fell below its carrying amount, leading to an impairment of approximately HK$14,503,000[63]. Shareholder and Governance Matters - The Board does not recommend the payment of any dividend for the year, consistent with the previous year[12]. - The Company aims to maintain a balance between meeting shareholders' expectations and prudent capital management with a sustainable dividend policy[169]. - The Company has complied with the Corporate Governance Code throughout the year, with a noted deviation from code provision A.2.1[103]. - The independent non-executive directors are responsible for ensuring high standards of financial and management reporting[105]. - The Company has adopted a board diversity policy since June 2014, revised in January 2019, to align with its business model and specific needs[113]. Risk Management and Compliance - The Group has established appropriate and effective risk management and internal control systems, complying with code provision C.2 of the Code[158]. - The risk management system includes phases of identification, evaluation, and management of risks associated with business operations[158]. - The Company has reviewed and monitored its policies and practices on compliance with legal and regulatory requirements during the year[153]. - The internal audit function is independent and consists of professional staff, conducting semi-annual reviews of risk management and internal control systems[163]. Future Outlook and Strategic Plans - The Group plans to invest in capital assets for environmental protection and safety improvements, funded primarily by coal sales revenue and external banking facilities[26]. - The Group aims to diversify its business portfolio into sectors with higher growth momentum, including renewable energy, following acquisitions in recent years[26]. - The Group expects that the measures taken by the HKSAR government to promote the IT industry will aid in the recovery once COVID-19 is contained[64].