Financial Performance - The company recorded revenue of HKD 341.9 million in 2023, an increase of 18.7% compared to HKD 288.1 million in 2022, primarily due to the expansion of distribution business in Southwest China[7]. - The net loss for 2023 was HKD 5.0 million, a 44.0% improvement from a loss of HKD 8.9 million in 2022, attributed to reduced sales expenses and no impairment losses on financial assets recorded in the previous year[7]. - The company's total revenue for fiscal year 2023 was HKD 341.9 million, reflecting an increase of 18.7% from HKD 288.1 million in fiscal year 2022[31]. - The supply chain business generated revenue of HKD 284.6 million in fiscal year 2023, an increase of 1.6% from HKD 280.2 million in fiscal year 2022[27]. - The gross profit for the supply chain business was HKD 9.1 million, with an overall gross margin of approximately 3.2%[25]. - The gross profit decreased to HKD 10.1 million in fiscal year 2023, down 25.7% from HKD 13.6 million in fiscal year 2022, resulting in a gross margin of 3.0%[33]. - Other income and net gains fell to HKD 2.7 million in fiscal year 2023, a decrease of 22.9% from HKD 3.5 million in fiscal year 2022, primarily due to the absence of government subsidies[34]. - The cost of sales for fiscal year 2023 rose to HKD 331.8 million, a 20.9% increase from HKD 274.5 million in fiscal year 2022[32]. Business Strategy and Expansion - The company plans to expand its distribution business across China, particularly in Southwest China, leveraging the resources and marketing networks of its major shareholders[10]. - The company aims to focus on energy infrastructure supply chain development in Laos and Myanmar to enhance brand recognition and service reputation in those regions[10]. - The overall business strategy includes diversifying operations to increase the company's influence in South Asia and Southeast Asia[10]. - The company plans to expand its supply chain operations in South Asia and Southeast Asia in 2024, leveraging its major shareholder's overseas network and expertise[58]. - The company aims to sign long-term supply agreements in coal and mineral products in 2024, while also actively exploring new customers in the renewable energy sector[52]. Operational Efficiency and Cost Management - Sales and distribution expenses for the fiscal year 2023 decreased by 83.6% to HKD 0.9 million from HKD 5.5 million in 2022, primarily due to reduced sales activities in Asia and other regions[35]. - Administrative expenses increased by 7.9% to HKD 13.7 million in fiscal year 2023 from HKD 12.7 million in 2022, mainly due to rising employee costs[36]. - The net other expenses decreased by 89.0% to HKD 16,000 in fiscal year 2023 from HKD 0.1 million in 2022, attributed to the absence of inventory write-offs and logistics service costs[37]. - Financing costs increased by 70.8% to HKD 4.1 million in fiscal year 2023 from HKD 2.4 million in 2022, primarily due to a higher average principal of outstanding loans[38]. Corporate Governance - The board of directors includes experienced professionals with over 20 years in the energy development industry, enhancing strategic decision-making capabilities[62]. - The board has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, to assist in fulfilling its responsibilities[86]. - The board's composition meets the requirement of at least one-third being independent non-executive directors and at least one director with appropriate professional qualifications in accounting or related financial management[85]. - The independent non-executive directors have confirmed their independence according to the standards set out in the listing rules[83]. - The board has adopted a diversity policy, outlining measurable objectives and progress towards achieving these goals[109]. Risk Management and Internal Controls - The company has established a risk management framework to identify and mitigate significant business risks, including financial, operational, compliance, and IT risks[130]. - The internal auditor has been appointed to assist management in reviewing the group's risk management and internal control systems[132]. - The audit committee is responsible for reviewing the scope and results of audits, ensuring the independence and objectivity of the external auditor, and recommending the appointment and remuneration of the external auditor[140]. - The company has a whistleblowing framework allowing employees to report concerns regarding financial reporting or other matters confidentially[141]. Shareholder Relations and Dividends - The company maintains effective communication with shareholders through various channels, enhancing investor relations[151]. - The group did not declare any interim dividends for the fiscal year ending December 31, 2023, consistent with the previous year[163]. - The board has not proposed any final dividends for the fiscal year ending December 31, 2023, mirroring the decision made in 2022[165]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders since March 4, 2019[155]. Employee and Management Structure - The total employee cost for the fiscal year 2023 was approximately HKD 6.0 million, with the workforce increasing from 21 to 28 employees[60]. - The management team is expected to continue expanding in response to increasing business activities and market demand over the next 12 months[53]. - The company has established a dedicated business team to enhance its competitive advantage in the supply chain sector and promote sustainable development[58]. Audit and Financial Reporting - The external auditor did not find any significant violations or internal control deficiencies during the statutory audit process[132]. - The audit committee held four meetings during the year ended December 31, 2023, and reviewed the group's consolidated annual performance, concluding that the performance was appropriately disclosed according to applicable accounting standards[138]. - The company paid approximately HKD 2,300,000 for audit services provided by the external auditor during the year[139]. - The board received assurances from the CEO and CFO regarding the maintenance of good financial records and the effectiveness of the risk management and internal control systems[132].

Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 341,863,000, representing an increase of 18.7% compared to HKD 288,089,000 in 2022[4] - The gross profit for the same period was HKD 10,083,000, down 25.5% from HKD 13,565,000 in the previous year[4] - The net loss attributable to equity holders of the parent for 2023 was HKD 4,970,000, a significant improvement from a loss of HKD 8,877,000 in 2022, indicating a reduction in losses by 44.5%[4] - The company reported a basic and diluted loss per share of HKD 0.018, an improvement from HKD 0.032 in the previous year[4] - The company reported a pre-tax loss of 4,628 thousand HKD in 2023, an improvement from a loss of 8,877 thousand HKD in 2022[26] - The company reported a loss of HKD 5.0 million for fiscal year 2023, a 43.8% reduction from a loss of HKD 8.9 million in 2022, attributed to the reversal of impairment losses on financial assets[58] Revenue Breakdown - Distribution business revenue increased to 57,257 thousand HKD in 2023 from 7,860 thousand HKD in 2022, marking a significant growth[22] - Supply chain business revenue rose to 284,606 thousand HKD in 2023, compared to 280,229 thousand HKD in 2022, indicating a 1.4% increase[22] - For the fiscal year ending December 31, 2023, the distribution business generated revenue of approximately HKD 57.3 million, a significant increase of 625.3% from HKD 7.9 million in the previous fiscal year[42] - The supply chain business achieved revenue of HKD 284.6 million in the fiscal year 2023, a slight increase of 1.6% from HKD 280.2 million in the previous fiscal year[46] - The international trade segment generated revenue of HKD 64.7 million with a gross profit of HKD 2.5 million, achieving a gross margin of approximately 3.9%[45] - Domestic trade revenue was approximately HKD 219.9 million with a gross profit of HKD 6.6 million, resulting in a gross margin of about 3.0%[46] Assets and Liabilities - The total current assets increased to HKD 318,631,000 in 2023, up 43.7% from HKD 221,719,000 in 2022[6] - The total liabilities increased to HKD 153,428,000, up from HKD 50,462,000 in 2022, reflecting a rise of 203.5%[6] - Trade receivables rose sharply to HKD 93,102,000, a 108.7% increase from HKD 44,555,000 in the previous year[6] - Cash and bank balances significantly improved to HKD 120,618,000, compared to HKD 43,090,000 in 2022, marking an increase of 179.5%[6] - Inventory as of December 31, 2023, increased by 17.1 million to HKD 40.6 million, up from HKD 23.5 million in 2022, due to expanded coverage in the supply chain business[59] Costs and Expenses - Sales cost rose by 20.9% to HKD 331.8 million in fiscal year 2023, compared to HKD 274.5 million in 2022, aligning with revenue growth[50] - Gross profit decreased by 25.7% to HKD 10.1 million in fiscal year 2023, with a gross margin of 3.0%, down from 4.7% in 2022, mainly due to lower gross margin in the distribution business[51] - Other income and net gains fell by 22.9% to HKD 2.7 million in fiscal year 2023, down from HKD 3.5 million in 2022, primarily due to the absence of government subsidies[52] - The company’s financing costs increased by 70.8% to HKD 4.1 million in fiscal year 2023, up from HKD 2.4 million in 2022, due to higher average principal of outstanding loans[57] - Interest expenses surged to 4,059 thousand HKD in 2023, up from 2,334 thousand HKD in 2022, reflecting increased financing costs[24] Business Operations - The company is engaged in the distribution of laboratory instruments and life sciences equipment, as well as trading and supply chain operations for various industrial and consumer products[11] - The company plans to expand its distribution business in Southwest China, targeting new sales contracts and participating in public tenders for medical equipment in major hospitals[68] - The company plans to continue expanding its supply chain business in 2024, aiming to sign long-term supply agreements in coal and mineral products to achieve stable large-scale trade[69] - The supply chain business is managed by an experienced team of 11, led by Mr. Ma, who has over 20 years of international trade experience, focusing on various commodities including coal and machinery[69] - The company aims to enhance its green energy project investments in Yunnan Province and Southeast Asia, leveraging local government relationships to increase revenue and profit contributions[70] Corporate Governance - The company did not recommend a final dividend for the year ending December 31, 2023, consistent with 2022[28] - The board of directors has not declared a final dividend for the fiscal year 2023[75] - The company has not engaged in any buybacks or redemption of its listed securities during the fiscal year 2023[78] - The audit committee has reviewed the company's financial performance and has no objections to the accounting principles adopted[79] - The board of directors consists of five executive directors and three independent non-executive directors as of the announcement date[88] Future Outlook - In 2024, the company will intensify investments in quality green energy projects to improve profitability and create long-term value for shareholders[70] - The company plans to expand its supply chain operations in South Asia and Southeast Asia, utilizing its major shareholder's overseas network resources[71] - The company will establish a dedicated team to explore business resources and strengthen relationships with potential customers and suppliers in the energy sector[71]

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，概不對因本公告全部或任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 新加坡證券交易所有限公司概不對本公告內作出的任何陳述、載列的任何報告或 發表的任何意見的準確性承擔任何責任。 Yunnan Energy International Co. Limited 雲 能 國 際 股 份 有 限 公 司 * （於百慕達註冊成立之有限公司） （香港股份代號：1298） （新加坡股份代號：T43） 有關截至2022年12月31日止年度年報的補充公告 謹此提述雲能國際股份有限公司（「本公司」，連同其附屬公司，「本集團」）於2023 年4月28日刊發的截至2022年12月31日止年度之年報（「2022年年報」）。除非另有指 明，本公告所用詞彙與2022年年報所界定者具有相同涵義。 本公司董事會（「董事會」）謹此就財務報表附註24所載的「股份獎勵計劃」提供進一 步資料。 於2017年1月11日，本公司採納一項股份獎勵計劃（「股份獎勵計劃」）。根據股份獎 ...

Financial Performance - In the first half of 2023, the company signed distribution sales orders totaling HKD 98.7 million, achieving revenue of HKD 16.4 million, a significant increase compared to HKD 2.3 million in the first half of 2022, representing a growth of 612.2%[8] - The company's total revenue for the first half of 2023 was HKD 106.8 million, a decrease of 5.2% from HKD 112.6 million in the first half of 2022, mainly due to the decline in supply chain business contributions[10] - The gross profit for the first half of 2023 was HKD 1.8 million, a decrease of 65.4% from HKD 5.2 million in the first half of 2022, with a gross margin of 1.7% compared to 4.6% in the previous year[10] - The group reported a total comprehensive loss of HKD 7.966 million for the first half of 2023, compared to a loss of HKD 3.375 million in the same period of 2022[43] - The company reported a loss before tax of HKD 5,525 thousand for the first half of 2023, compared to a negligible loss of HKD 3 thousand in the prior year[126] - The total loss for the period was HKD 5,874 thousand, compared to a loss of HKD 3 thousand in the same period last year[126] Revenue Breakdown - Distribution business revenue was HKD 16,367 thousand, while supply chain business revenue was HKD 90,412 thousand, contributing to the total revenue of HKD 106,779 thousand[134] - The geographical revenue breakdown shows that revenue from China (including Hong Kong and Macau) was HKD 79,838 thousand, compared to HKD 36,322 thousand in the previous year, reflecting a substantial increase[142] - Major customers contributed significantly to revenue, with the largest customer in the supply chain business generating HKD 24,206 thousand in revenue[144] Supply Chain Business - The supply chain business revenue decreased by HKD 19.9 million or 18.0% to HKD 90.4 million in the first half of 2023, down from HKD 110.3 million in the same period of 2022, primarily due to reduced orders from steel and coffee powder industry clients[9] - The supply chain business primarily serves state-owned companies and industrial sectors, including those involved in stainless steel pipe production and construction materials[77] - The company plans to expand its international supply chain business, focusing on construction materials, medical devices, and energy within the next 12 months[22] - The company will enhance its supply chain business expansion in South Asia and Southeast Asia, focusing on energy infrastructure projects in Laos and Myanmar[117] Distribution Business - The distribution business achieved substantial breakthroughs by winning multiple contracts for laboratory analysis instruments and medical devices, including automatic potentiometric titrators and high-resolution inductively coupled plasma mass spectrometers[8] - The group has signed sales contracts totaling approximately HKD 106.6 million in the distribution business, with an expected total contract value of about HKD 113.4 million for the year 2023[30] - The company plans to expand its distribution business in various regions of China, particularly in Southwest China, leveraging resources from Yunnan Energy Investment Group[105] Financial Position - The company's current assets net value as of June 30, 2023, was HKD 163.3 million, with cash and bank balances amounting to HKD 46.4 million[13] - The company's capital debt ratio increased to 98.4% as of June 30, 2023, compared to 17.2% on December 31, 2022, indicating a significant rise in leverage[18] - As of June 30, 2023, total assets amounted to HKD 367,101,000, a significant increase from HKD 221,719,000 as of December 31, 2022, representing a growth of approximately 65.5%[45] - The company's current liabilities surged to HKD 203,846,000 from HKD 50,462,000, indicating a substantial increase of 304.5%[45] - The company raised new loans from indirect holding companies amounting to HKD 158,766,000 during the first half of 2023, compared to HKD 58,486,000 in the same period of 2022, indicating increased reliance on financing[61] Cash Flow and Expenses - The net cash flow from operating activities for the first half of 2023 was negative HKD 116,668,000, compared to negative HKD 40,547,000 in the same period of 2022, reflecting a worsening cash flow situation[61] - Administrative expenses for the first half of 2023 rose by 29.8% to HKD 6.3 million from HKD 4.8 million in the first half of 2022, driven by higher employee benefits and legal and professional fees[99] - Financing costs decreased by 3.9% to HKD 1.4 million in the first half of 2023 from HKD 1.5 million in the first half of 2022, mainly due to lower average outstanding loan principal[100] Inventory and Receivables - The inventory level increased significantly to HKD 48,160,000 as of June 30, 2023, from HKD 23,472,000 at the end of 2022, representing a growth of 105.5%[45] - Trade receivables rose to HKD 77,074,000 from HKD 44,555,000, marking an increase of 73.0%[45] - Trade receivables, net of impairment, were 77,074 HKD as of June 30, 2023, compared to 44,555 HKD at the end of 2022[173] Corporate Governance and Compliance - The company has adopted the standards set out in Appendix 10 of the Listing Rules as its own code of conduct for securities transactions by directors, ensuring compliance and governance[50] - The company has maintained compliance with the applicable corporate governance codes as of the first half of 2023[124] Future Plans and Strategies - The company plans to continue focusing on both distribution and supply chain businesses to broaden its customer base and increase revenue contributions[30] - The group aims to explore international green energy project investments, particularly in Myanmar and Laos, to increase revenue and profit contributions[23] - The company is committed to improving operational efficiency and creating shareholder value through its established business plans and resource advantages[108] - The company continues to explore new potential projects to increase revenue sources and improve profitability in both domestic and international markets[116]

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，概不對因本公告全部或任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 新加坡證券交易所有限公司概不對本公告內作出的任何陳述、載列的任何報告或 發表的任何意見的準確性承擔任何責任。 Yunnan Energy International Co. Limited 雲 能 國 際 股 份 有 限 公 司 * （於百慕達註冊成立之有限公司） （香港股份代號：1298） （新加坡股份代號：T43） 截至2023年6月30日止六個月 未經審核中期業績公佈 雲能國際股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（統稱為「本集團」）截至2023年6月30日止六個月（「2023年上半年」） 的未經審核簡明綜合中期業績連同截至2022年6月30日止六個月（「2022年上半年」） 比較數字如下： ...

Financial Performance - In 2022, Yunnan Energy International recorded revenue of HKD 288.1 million, a 242.6% increase from HKD 84.1 million in 2021, primarily due to rapid growth in supply chain business[6] - The company reported a loss of HKD 8.9 million in 2022, narrowing from a loss of HKD 27.0 million in 2021, attributed to significant revenue growth and an increase in gross margin from 3.7% to 4.7%[6] - International trade revenue increased by 450% and domestic trade revenue grew by 330% in 2022, indicating strong business momentum[5] - The overall GDP growth in China for 2022 was 3%, below the expected 5.5%, due to the impact of COVID-19 and the zero-COVID policy[7] - The gross margin improvement and absence of inventory provisions contributed to the narrowing of losses in 2022[6] - The company's loss for the fiscal year 2022 decreased by 67.0% to HKD 8.9 million, compared to a loss of HKD 27.0 million in 2021, due to increased supply chain revenue and reduced logistics costs[25] - The gross profit increased by 338.7% to HKD 13.6 million in 2022, with a gross margin improvement from 3.7% in 2021 to 4.7% in 2022[30] - Other income and net gains increased by 775.0% to HKD 3.5 million in 2022, driven by higher bank interest income and government subsidies[31] Business Expansion Plans - In 2023, the company plans to expand its distribution business in southwestern China, leveraging the resources and marketing networks of its major shareholder[9] - The company aims to capture potential opportunities in the supply chain business, focusing on energy infrastructure projects in Laos and Myanmar to enhance regional brand recognition[9] - The company plans to explore international green energy project investments, particularly in Laos and Myanmar, leveraging strong local relationships to enhance revenue and profit contributions[53] - The company intends to increase supply chain business expansion in South Asia and Southeast Asia, utilizing its major shareholder's overseas network resources[53] - The group plans to achieve sales of approximately HKD 73.45 million in distribution business during Q2 to Q3 of 2023, following contracts worth HKD 52.9 million signed in Q1 2023[49] Distribution Business Performance - The distribution business primarily serves over 90% of customers in China, including hospitals, universities, and government agencies[16] - The distribution business's revenue decreased by HKD 4.6 million or 36.8% to HKD 7.9 million in 2022, impacted by COVID-19 restrictions and delayed equipment procurement[17] - The company established contracts totaling HKD 25.8 million in the distribution business, generating revenue of HKD 7.9 million in 2022[17] Supply Chain Business Performance - The supply chain business achieved revenue of HKD 280.2 million in 2022, up 291.3% from HKD 71.6 million in 2021, driven by increased sales of various products[22] - The gross profit for the supply chain business was HKD 13.2 million in 2022, with an overall gross margin of approximately 4.7%[21] - The company signed over 70 export contracts in 2022, resulting in an export revenue of approximately HKD 56.8 million, with notable growth in stainless steel exports to Vietnam amounting to HKD 101.3 million[21] Corporate Governance - The company reported a commitment to high corporate governance standards, aligning with the Hong Kong Stock Exchange's corporate governance code[71] - The board is responsible for major investments, corporate restructuring, mergers, and significant asset acquisitions or disposals, requiring board approval[73] - The company has established a remuneration committee and audit committee, with independent directors leading these committees[66] - The board consists of eight directors, including five executive directors and three independent non-executive directors[75] - The board's composition meets the listing rules, requiring at least one-third of directors to be independent non-executive directors[76] - The company has implemented a training program for directors to ensure they are informed and relevant in their contributions[82] Risk Management - The company has established a corporate risk management framework to identify and mitigate significant business risks, including financial, operational, compliance, and IT risks[116] - The board believes that the risk management and internal control systems are reasonable but do not provide absolute assurance against significant errors or fraud[120] - The company has a risk management framework in place to identify and manage key risks[125] Shareholder Communication - The company is committed to regular and fair communication with shareholders, including providing annual and interim reports through the stock exchange and its website[133] - The board is committed to providing a balanced and understandable assessment of the company's overall performance and outlook in its financial statements[114] Employee and Workforce Management - As of December 31, 2022, the company had 21 employees, with total employee costs approximately HKD 5.6 million for the year[56] - The company maintains a balanced workforce and promotes diversity and equal opportunities in recruitment and promotion processes[102] Financial Stability - The capital debt ratio as of December 31, 2022, was 17.2%, a decrease from 39.1% in 2021, indicating improved financial stability[47] - The company has not made any charitable or other donations during the year ended December 31, 2022, consistent with 2021[196] Audit and Compliance - The external auditor found no significant violations or internal control deficiencies during the statutory audit process[116] - The audit committee is responsible for reviewing the scope and results of audits and ensuring the independence and objectivity of the external auditor[125] - The company has established a whistleblowing framework supported by the audit committee, allowing employees to report concerns regarding financial reporting or misconduct[126]

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，概不對因本公告全部或任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 新加坡證券交易所有限公司概不對本公告內作出的任何陳述、載列的任何報告或 發表的任何意見的準確性承擔任何責任。 Yunnan Energy International Co. Limited 雲 能 國 際 股 份 有 限 公 司 * （於百慕達註冊成立之有限公司） （香港股份代號：1298） （新加坡股份代號：T43） 截至2022年12月31日止年度 全年業績公告 雲能國際股份有限公司（「本公司」）之董事（「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2022年12月31日止年度之綜合業績及截至 2021年12月31日止年度之比較數字如下： ...

Revenue Growth - For the first half of 2022, the total revenue of Yunnan Energy International Co. Limited increased by HKD 93.3 million or 483.1% to HKD 112.6 million, primarily driven by the growth in the supply chain business[11]. - Revenue for the first half of 2022 increased by 483.1% to HKD 112.6 million compared to HKD 19.3 million in the first half of 2021, primarily due to increased contributions from the supply chain business[14]. - Total revenue for the company reached HKD 112,608,000, significantly up from HKD 19,314,000 year-over-year[98]. - The revenue from the supply chain business segment reached HKD 110,310,000, accounting for 98% of the total revenue, while the distribution business contributed HKD 2,298,000[102]. Supply Chain Business Performance - The supply chain business revenue surged by HKD 92.9 million or 533.7% to HKD 110.3 million, with approximately 7,500 tons of stainless steel pipes and structural steel sold, along with 60 tons of coffee powder supply agreements[11]. - The company aims to expand its supply chain business to include not only construction materials and medical devices but also consumer products and agricultural goods[11]. - The company signed a supply chain contract to procure 3,450 tons of rubber in August 2022, enhancing its supply chain business in the region[44]. - Major customer A from the supply chain business contributed HKD 58,070,000 to the total revenue in 2022, compared to HKD 17,407,000 in 2021, indicating a growth of 234%[99]. - Major customer B from the supply chain business generated HKD 24,974,000 in revenue in 2022, which was not applicable in 2021 due to not meeting the 10% revenue contribution threshold[99]. Distribution Business Performance - The distribution business revenue rose by HKD 0.4 million or 20.5% to HKD 2.3 million, despite challenges posed by the COVID-19 pandemic affecting sales activities[7]. - Over 90% of the distribution business's customers are located in China, including universities, research institutes, and government agencies[7]. - Revenue from the distribution business increased to HKD 2,298,000, up from HKD 1,907,000 year-over-year[95]. Financial Performance - The company's loss for the first half of 2022 decreased by 99.9% to HKD 3,000, attributed to increased revenue and reduced operating expenses[11]. - The company reported a loss of HKD 3,000 in the first half of 2022, a 99.9% decrease from a loss of HKD 29.5 million in the same period of 2021[24]. - The company reported a pre-tax loss of HKD (3,000) for the current period, an improvement from HKD (29,532,000) in the previous period[95]. - Total comprehensive loss for the first half of 2022 was HKD 3,375,000, compared to HKD 29,214,000 in the same period of 2021[69]. Cost and Expenses - Cost of sales rose by 560.8% to HKD 107.4 million in the first half of 2022, up from HKD 16.3 million in the same period of 2021, consistent with revenue growth[15]. - Gross profit increased by 69.9% to HKD 5.2 million in the first half of 2022, with a gross margin of 4.6%, down from 15.8% in the first half of 2021, mainly due to a higher contribution from lower-margin supply chain operations[16]. - Selling and distribution expenses increased by 43.7% to HKD 1.3 million in the first half of 2022, up from HKD 0.9 million in the first half of 2021, due to increased sales activities in overseas markets[19]. - Administrative expenses decreased by 16.7% to HKD 4.8 million in the first half of 2022, down from HKD 5.8 million in the same period of 2021, mainly due to reduced depreciation of property, plant, and equipment[20]. - Financing costs increased by 133.8% to HKD 1.5 million in the first half of 2022, compared to HKD 0.6 million in the first half of 2021, primarily due to a higher average outstanding loan principal[23]. Assets and Liabilities - Inventory as of June 30, 2022, was HKD 45.2 million, an increase of HKD 38.8 million from HKD 6.4 million as of December 31, 2021, mainly due to expanded supply chain operations[25]. - Trade receivables as of June 30, 2022, were HKD 64.7 million, up from HKD 64.1 million as of December 31, 2021, primarily due to an increase in trade receivables under 90 days as revenue grew[26]. - Current assets increased to HKD 285,726,000 as of June 30, 2022, compared to HKD 266,451,000 at the end of 2021[71]. - Non-current assets decreased to HKD 1,385,000, compared to HKD 1,678,000 at the end of 2021, indicating a decline in long-term asset value[71]. - The company's total equity as of June 30, 2022, was HKD 184,650,000, down from HKD 188,025,000 at the end of 2021[76]. Corporate Governance - The audit committee reviewed the unaudited interim results for the first half of 2022 and found no objections to the accounting principles adopted by the company[58]. - The company is committed to good corporate governance and will continue to review its governance structure to comply with applicable codes[59]. - The company has adopted the standard code of conduct for securities trading, confirming compliance by all board members in the first half of 2022[66]. Future Plans and Strategies - The company plans to expand its distribution business in Southwest China, particularly leveraging the resources and marketing network of Yunnan Energy Investment Group[37]. - The company is actively exploring new potential projects to improve revenue sources and profitability in its supply chain business[40]. - The company continues to strengthen cooperation with highway companies and explore long-term collaboration models for road construction projects[41]. - The company is focusing on sustainable development opportunities in the supply chain business, particularly in green energy and health-related sectors[44]. - The company aims to leverage its overseas network to enhance relationships with potential customers and suppliers, thereby improving competitive advantages in the supply chain business[47]. Shareholder Information - The company has a significant shareholder, Baodi International Investment, holding approximately 73.05% of the issued share capital[54]. - The company did not declare any interim dividends for the six months ended June 30, 2022, consistent with the previous year[116]. - The company aims to retain and attract suitable personnel through its share award plan, which was adopted on January 11, 2017[150].

Financial Performance - The company recorded revenue of HKD 84.1 million for 2021, a 37.9% increase from HKD 61.0 million in 2020, primarily due to the rapid development of the supply chain business[7]. - The company reported a loss of HKD 27.0 million in 2021, narrowing the loss by 56.7% compared to HKD 62.2 million in 2020, attributed to significant revenue growth and improved gross margin from 2.2% to 3.7%[7]. - The total revenue for fiscal year 2021 rose by 37.9% to HKD 84.1 million from HKD 61.0 million in fiscal year 2020, driven mainly by the supply chain business[23]. - The gross profit for fiscal year 2021 increased by 127.0% to HKD 3.1 million from HKD 1.4 million in fiscal year 2020, with a gross margin of 3.7% compared to 2.2% in the previous year[25]. - The operating loss for fiscal year 2021 decreased by 56.7% to HKD 27.0 million from HKD 62.2 million in fiscal year 2020, attributed to increased supply chain revenue and reduced operating expenses[31]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[62]. - The company reported a net profit margin of 12%, which is an improvement from 10% in the previous year[62]. Cost Management - The company reduced sales costs and other operating costs by 52.2% and 27.3% respectively, while administrative expenses decreased by 16.5%[7]. - Sales and distribution expenses decreased by 52.2% to HKD 2.0 million from HKD 4.3 million in fiscal year 2020, mainly due to a reduction in sales personnel[27]. - Administrative expenses decreased by 16.5% to HKD 12.5 million from HKD 14.9 million in fiscal year 2020, resulting from cost control measures[28]. - Financing costs decreased by 58.9% to HKD 1.4 million from HKD 3.3 million in fiscal year 2020, due to lower average loan principal[30]. - Other income and gains decreased by 47.3% to HKD 0.4 million from HKD 0.8 million in fiscal year 2020, primarily due to reduced bank interest income[26]. Business Strategy and Development - The company plans to shift its distribution business focus to the southwestern region of China, which has a higher economic growth rate and synergistic advantages with the controlling shareholder[8]. - The company aims to leverage the Regional Comprehensive Economic Partnership (RCEP) to enhance its supply chain business and capitalize on international trade opportunities[8]. - The company is committed to diversifying its business model to ensure overall revenue growth and improve profitability[8]. - The company plans to leverage its extensive customer base and management experience to explore new potential clients in the supply chain business[19]. - The group is actively exploring new potential projects to enhance revenue sources and improve profitability in both domestic and international markets[46]. - The company has established a new branch in Yunnan to capture new customer demands for distribution business products[45]. - The group plans to expand its distribution business in Southwest China, leveraging resources from Yunnan Energy Investment Group, and aims to increase sales activities and hire more staff[43]. Supply Chain and Operations - The distribution business primarily serves over 90% of customers in China, including universities, research institutes, industrial enterprises, and government agencies[15]. - The supply chain business revenue increased by 1,233.3% to HKD 71.6 million from HKD 5.4 million in fiscal year 2020, significantly contributing to the overall revenue growth[19]. - For the fiscal year 2021, the distribution business revenue decreased by 77.5% to HKD 12.5 million from HKD 55.6 million in fiscal year 2020, primarily due to the impact of COVID-19[16]. - As of December 31, 2021, inventory decreased to HKD 6.4 million from HKD 21.4 million in 2020, a reduction of HKD 15.0 million, primarily due to improved logistics efficiency in the supply chain business[32]. - Trade receivables increased to HKD 64.1 million as of December 31, 2021, up HKD 27.6 million from HKD 36.5 million in 2020, attributed to an increase in receivables less than 90 days due to revenue growth[33]. - Trade payables decreased to HKD 2.0 million as of December 31, 2021, down HKD 4.1 million from HKD 6.1 million in 2020, mainly due to a reduction in trade payables turnover days[34]. Corporate Governance - The board consists of eight directors, including five executive directors and three independent non-executive directors[74]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations for the year ending December 31, 2021[69]. - The board's main responsibilities include setting strategic goals and ensuring the company has the necessary financial and human resources to achieve these goals[71]. - The company held a total of 17 board meetings, with all executive directors attending at least 9 meetings[83]. - The independent non-executive directors have confirmed their independence according to the standards set by the Hong Kong Stock Exchange[77]. - The company has a risk management framework in place to protect shareholder interests and company assets[71]. - The board has authorized various committees, including the audit, remuneration, and nomination committees, to assist in fulfilling its responsibilities[78]. Risk Management and Internal Control - The company has established a risk management framework to identify major risks, including financial, operational, compliance, and IT risks, which is reviewed at least annually by the audit committee and the board[143]. - The external auditor found no significant violations or internal control deficiencies during the statutory audit process, indicating the effectiveness of the internal control system[144]. - The audit committee is tasked with ensuring the protection of company assets and maintaining effective risk management and internal control systems[149]. - The company has appointed an external professional service firm as an internal auditor to assist in reviewing the risk management and internal control systems[143]. - The board believes that the risk management and internal control systems are reasonable but cannot guarantee absolute assurance against significant errors or fraud[146]. Shareholder Communication and Dividends - The company will communicate regularly and effectively with shareholders, ensuring fair and reasonable disclosure of internal information[156]. - The company did not declare any interim dividends for the year ended December 31, 2021, and the board recommended no final dividend for the same period[168][170]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders since March 4, 2019[161]. Employee and Board Diversity - The company has a board diversity policy, with female employees making up 35% of the workforce, indicating a commitment to diversity in hiring and promotion practices[108]. - The board diversity policy includes measurable targets related to gender, race, age, and tenure, reflecting the company's focus on enhancing board performance through diversity[109]. - The company emphasizes a talent-based approach in board appointments, considering various factors such as gender, age, and professional experience[108]. - The company adheres to fair employment practices, promoting diversity and equal opportunities in recruitment and advancement[108]. Stock Options and Share Capital - The maximum limit for any participant under the 2004 stock option plan is capped at 20% of the total shares issued and potentially to be issued by the company under this plan[198]. - The total number of shares that can be subscribed by controlling shareholders and their associates under the 2011 stock option plan is limited to 25% of the total unexercised options granted under the plan[200]. - Each controlling shareholder or their associate can subscribe for a maximum of 10% of the total unexercised options granted under the 2011 stock option plan[200]. - The company has issued 1% of its total share capital within any 12-month period up to the offer date[199].

Financial Performance - Distribution business revenue decreased by 95.1% to HKD 1.9 million from HKD 38.4 million in the same period last year due to the impact of COVID-19[7]. - Supply chain business generated revenue of HKD 17.4 million in the first half of 2021, contributing to total revenue of HKD 19.3 million, a decrease of 49.7% from HKD 38.4 million in the previous year[10]. - Revenue for the first half of 2021 decreased by 49.7% to HKD 19.3 million from HKD 38.4 million in the same period of 2020, primarily due to a decline in orders from the distribution business[15]. - Gross profit for the first half of 2021 decreased by 39.0% to HKD 3.1 million from HKD 5.0 million in the same period of 2020, with a gross margin of 15.8% compared to 13.1% in the previous year[17]. - The company's loss increased by 317.5% to HKD 29.5 million in the first half of 2021, compared to a loss of HKD 7.1 million in the same period last year, primarily due to prolonged economic impacts of COVID-19 and increased inventory impairment losses[10]. - The net loss for the first half of 2021 increased by 317.5% to HKD 29.5 million from HKD 7.1 million in the same period of 2020[24]. - Total comprehensive loss for the first half of 2021 was HKD 29,214,000, compared to HKD 11,747,000 in the first half of 2020, reflecting a rise of 148.5%[68]. - The company reported a loss before tax of HKD 29,532,000 for the first half of 2021, compared to a loss of HKD 7,073,000 in the same period of 2020, indicating a significant increase in losses[68]. - The basic and diluted loss per share for the first half of 2021 was HKD (10.72 cents), compared to HKD (2.57 cents) in the same period of 2020, indicating a worsening loss per share[68]. Revenue Breakdown - The distribution business segment generated revenue of HKD 1,907,000, while the supply chain business segment contributed HKD 17,407,000, with the latter accounting for 90.2% of total revenue[93]. - One major customer in the supply chain business accounted for over 10% of the group's revenue, with sales to this customer amounting to HKD 17,407,000[97]. - The group’s revenue from customers in China (including Hong Kong and Macau) was HKD 1,907,000, while revenue from other Asian markets was HKD 17,407,000, showing a shift in market focus[95]. Cost and Expenses - Sales cost for the first half of 2021 decreased by 51.3% to HKD 16.3 million from HKD 33.4 million in the same period of 2020, attributed to the drop in revenue from the distribution business and lower material costs[16]. - Other income for the first half of 2021 decreased by 44.1% to HKD 0.2 million from HKD 0.4 million in the same period of 2020, mainly due to the absence of gains from revised lease agreements[18]. - Selling and distribution expenses for the first half of 2021 decreased by 58.0% to HKD 0.9 million from HKD 2.2 million in the same period of 2020, due to a reduction in sales personnel and decreased sales activities[19]. - Administrative expenses for the first half of 2021 decreased by 37.6% to HKD 5.8 million from HKD 9.3 million in the same period of 2020, primarily due to cost control measures[20]. - The cost of goods sold for the six months ended June 30, 2021, was HKD 16,254,000, down from HKD 33,357,000 in the same period of 2020, showing a reduction of approximately 51%[106]. Assets and Liabilities - Inventory decreased by 86.5% to HKD 2.9 million as of June 30, 2021, from HKD 21.4 million as of December 31, 2020, due to a reduction in overall inventory levels[25]. - Trade receivables decreased by 47.5% to HKD 19.4 million as of June 30, 2021, from HKD 36.5 million as of December 31, 2020, primarily due to a decline in revenue from the distribution business[26]. - The company's net assets decreased to HKD 187,277,000 as of June 30, 2021, from HKD 216,491,000 at the end of 2020, a decline of 13.5%[73]. - The company's total assets less current liabilities as of June 30, 2021, were HKD 188,163,000, down from HKD 217,498,000 at the end of 2020[74]. - The total trade receivables as of June 30, 2021, amounted to HKD 19,364,000, down from HKD 36,460,000 as of December 31, 2020, indicating a reduction of about 46.8%[121]. Corporate Governance and Compliance - The audit committee has reviewed the company's unaudited interim results for the first half of 2021, confirming no objections to the accounting principles adopted[58]. - The company has adhered to the applicable provisions of the Hong Kong Corporate Governance Code during the first half of 2021[60]. - The company will continue to review its corporate governance structure to comply with the principles and guidelines of the Corporate Governance Code[59]. Future Plans and Strategies - The company plans to expand its distribution business in Southwest China, leveraging the resources and marketing network of Yunnan Energy Investment Group[38]. - The company aims to increase sales activities in Southwest China, particularly in Yunnan Province, by hiring additional sales and technical support staff[38]. - The company is focusing on developing international supply chain opportunities, particularly in construction materials, medical devices, and energy[42]. - The company plans to utilize Yunnan Energy Investment Group's overseas network to build a global supply chain network[43]. - Despite a decline in financial performance, the company expects to improve operational efficiency and create value for shareholders through the implementation of its business plan[45]. Shareholder Information - As of June 30, 2021, Baodi International Investment Limited holds 201,196,995 shares, representing approximately 73.05% of the company's issued share capital[54]. - The company did not grant, exercise, expire, or cancel any share options under its share option plans during the first half of 2021[49]. - No share rewards were granted under the share reward plan during the first half of 2021[50]. - The average number of ordinary shares issued during the period was 275,437,000, unchanged from the same period in 2020[112]. Cash Flow and Financing - The company's cash and cash equivalents at the end of June 2021 were HKD 87,425,000, a decrease from HKD 115,736,000 at the beginning of the period[81]. - The net cash flow used in operating activities for the first half of 2021 was HKD (29,804,000), compared to HKD (23,487,000) in the same period of 2020, indicating worsening cash flow[81]. - The group did not declare any interim dividends for the six months ended June 30, 2021, consistent with the same period in 2020[111]. - The company had a loan financing total of HKD 936,000,000 from the immediate holding company, which was fully repaid by December 30, 2020[145].