Financial Performance - The group sold Hami Jiatai for RMB 18 million, recording a gain of approximately RMB 1.04 million from the sale[1]. - Administrative expenses for the year amounted to RMB 41.4 million, an increase of 80.5% from RMB 22.9 million in the previous year, primarily due to legal fees from acquisition activities and increased office rental costs[2]. - Financial income for the year was approximately RMB 5.4 million, up from RMB 1.5 million in the previous year, mainly from interest earned on bank cash[3]. - Income tax expenses for the year were approximately RMB 31.0 million, a decrease from RMB 35.0 million in the previous year, with the main tax provision in China being RMB 30.5 million[5]. - The company recorded a gross profit of approximately RMB 211.4 million, remaining relatively stable compared to the previous year[55]. - The coal business generated revenue of RMB 2.851 billion with an operating profit of RMB 211.9 million, resulting in an operating profit margin of 7.4%[58]. - The company recorded other operating losses of approximately RMB 2.4 million this year, compared to other operating income of approximately RMB 4.7 million in the previous year, primarily due to expected credit losses on financial assets[69]. - The company did not recommend any final dividend for the year, consistent with the previous year[104]. - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[157]. Acquisitions and Investments - The group acquired 100% of Margaux Investment Limited, which includes coal storage of 250,000 tons and related machinery[6][23]. - The company completed the acquisition of Margaux HK and CC Bong Logistics to enhance its coal business value chain, providing additional storage and blending services[55]. - The acquisition of Margaux HK was completed in September 2023 for a total consideration of approximately RMB 50.6 million, enhancing the company's coal business value chain through additional storage and blending services[80]. - The company agreed to acquire 100% of CC Bong Logistics for a total consideration of HKD 100 million, with part of the payment made through the issuance of new shares[83]. - The acquisition of Shanxi Fanpo Clean Energy Technology Co., Ltd. was completed in January 2022 for approximately RMB 9.6 million, with an additional 5% stake acquired in February 2023 for RMB 500,000[78]. - The company has allocated more resources to develop its coal business since 2021, resulting in significant progress and achievements over the past two years[65]. - The company is expanding its business scope into international supply chain trade to leverage emerging opportunities in the coal supply chain industry[145]. Coal Business Performance - The coal business segment contributed approximately RMB 2.85 billion to the group's revenue in 2023, compared to RMB 2.01 billion in 2022[38]. - The average price of coal, measured by the China Coal Index 5500K, decreased from RMB 1,210 per ton at the beginning of the year to RMB 928 per ton by December 29, 2023[46]. - The cumulative raw coal production for the year was approximately 4.66 billion tons, representing a year-on-year increase of about 2.9%[105]. - The coal mining and washing industry's operational revenue was approximately RMB 3,167.19 billion, a year-on-year decrease of 12.9%[46]. - The company’s coal business revenue increased from approximately RMB 860 million in 2019 to RMB 2.01 billion in 2022, achieving a remarkable growth rate of about 41.5% to approximately RMB 2.85 billion in the current year[65]. - The company aims to enhance its vertical integration capabilities through expanded supply chain management, positioning itself to capitalize on the growth opportunities in the coal industry[142]. Operational Efficiency and Strategy - The company aims to enhance the green development of its mining division through the sale of Hami Jiatai and the introduction of business partners for the management of the Baiguan Lake mine[1]. - The group continues to improve the competitiveness and operational efficiency of its coal supply chain platform[32]. - The company plans to continue seeking opportunities to develop its coal business through value-accretive acquisitions or strategic resource reallocation[50]. - The company aims to balance resource development with ecological protection through partnerships in the mining sector[53]. - The company has implemented strict controls over its outstanding receivables and regularly reviews overdue balances[100]. - The company aims to explore and develop other promising projects to diversify its business segments and regions, enhancing its operational efforts[146]. Market Outlook and Economic Context - In 2023, China's GDP grew approximately 5.2% year-on-year, with industrial enterprises achieving operational revenue of about RMB 1,200,363 billion, a year-on-year increase of approximately 1%[33]. - China's raw coal production reached approximately 414 million tons in December 2023, a year-on-year increase of about 1.9%, with total annual production of approximately 4.66 billion tons, up 2.9% year-on-year[33]. - The long-term outlook for the coal industry remains optimistic, supported by increasing electricity demand and coal-fired generation capacity despite environmental regulations[138]. - The coal market is anticipated to experience stable demand growth in 2024, while supply flexibility may remain limited, posing challenges for safe coal production[141]. - The company is committed to environmental management and has initiated photovoltaic project development to promote low-carbon integration with coal-based energy[145]. Financial Position and Assets - As of December 31, 2023, total assets increased by 81.7% to RMB 1.58 billion, compared to RMB 868.4 million the previous year[90]. - The company's equity attributable to owners rose to RMB 788 million, reflecting a 37.6% increase from RMB 572.5 million as of December 31, 2022[90]. - The company maintained a strong cash position with bank and cash balances of approximately RMB 508.6 million as of December 31, 2023, up from RMB 369.3 million the previous year[94]. - The asset-liability ratio remained at 0% as of December 31, 2023, consistent with the previous year[96]. - The total employee cost for the year was approximately RMB 858 million, an increase from RMB 595 million in the previous year, with the number of employees rising to 820 from 743[104]. Risk Management and Compliance - The management believes that the costs associated with hedging arrangements for foreign exchange risks will outweigh the benefits, and thus no hedging activities are currently in place[99]. - The company continues to monitor foreign exchange risks and may take prudent measures if necessary[99]. - The company acknowledges that past performance is not indicative of future results, highlighting inherent risks and uncertainties in forward-looking statements[147]. - The company may face potential liabilities from new environmental laws and regulations in the future[131].

Revenue and Growth - The coal trading revenue from external customers in China for the year ended December 31, 2023, was RMB 2,850,951 thousand, an increase from RMB 2,014,276 thousand in 2022, representing a growth of approximately 41.3%[7] - The total revenue from coal sales was RMB 2,763,320 thousand, while coal processing services generated RMB 25,022 thousand and coal supply chain services contributed RMB 62,609 thousand[4] - The total coal production for the year is approximately 4.66 billion tons, representing a year-on-year growth of about 2.9%[66] - The company reported a significant increase in coal imports, which totaled approximately 474 million tons for the year, reflecting a year-on-year growth of 61.8%[23] - The total revenue from coal services, including processing and supply chain, amounted to RMB 2,850,951,000 in 2023, up from RMB 2,009,246,000 in 2022, representing a growth of around 42%[149] Financial Performance - The company's net foreign exchange income for the year was RMB 3,432 thousand, a decrease from RMB 11,435 thousand in the previous year, indicating a decline of approximately 70%[8] - The company reported a net profit for the year 2023 of RMB 173,224 thousand, a decrease from RMB 180,678 thousand in 2022[128] - The company's profit before tax for 2023 was RMB 204,258 thousand, compared to RMB 215,641 thousand in 2022[128] - The total comprehensive income for the year was RMB 170,377 thousand, down from RMB 178,768 thousand in the previous year[135] - The company's basic and diluted earnings per share for 2023 were RMB 9, compared to RMB 10.1 in 2022[135] Expenses and Costs - The cost of inventory recognized as an expense was RMB 2,311,038 thousand, up from RMB 1,760,641 thousand in 2022, reflecting an increase of about 31.2%[12] - Administrative expenses for the year amounted to approximately RMB 41.4 million, an increase from RMB 22.9 million in the previous year, primarily due to legal fees from acquisitions and increased office rental costs[31] - The average sales cost increased due to the temporary reliance on external resources to meet the growing demand for coal products, resulting in a gross profit of approximately RMB 2.114 billion, remaining relatively stable compared to the previous year[55] Acquisitions and Investments - The company acquired 100% of the issued share capital of Margaux Investment Limited and CC Bong Logistics Limited during the year, enhancing its operational capabilities[21] - The acquisition of Margaux Investment Limited was completed on September 2023 for a total consideration of approximately RMB 50.6 million[121] - The acquisition of CC Bong Logistics is set for December 29, 2023, with a total consideration of HKD 100,000,000[124] - The acquisition of CC Bong Logistics is expected to enhance the company's coal business value chain by providing additional storage and coal distribution services, with a final purchase price of RMB 84.3 million[96] Market and Economic Conditions - The GDP growth in China for the year was approximately 5.2%, with the fourth quarter showing a similar growth rate, indicating a positive economic environment for coal demand[22] - The coal production and import volume in China have steadily increased, leading to a rise in domestic coal supply, while the demand for coal storage has eased compared to the previous year[24] - The National Development and Reform Commission has issued guidelines for the signing and performance of medium- and long-term coal contracts for 2024, enhancing flexibility in contract signing and ensuring energy supply stability[40] Compliance and Governance - The company aims to maintain high levels of corporate governance and has adopted appropriate measures to comply with the listing rules of the Hong Kong Stock Exchange[46] - The company emphasizes the importance of compliance with regulatory requirements in its operations in China and Hong Kong[89] - The company has adopted a standard code for securities trading by directors, confirming compliance throughout the year[75] Future Outlook - The company anticipates stable growth in coal demand in 2024, with supply challenges potentially impacting safe production, while coal prices are expected to continue fluctuating within a narrower range[36] - The company plans to strategically expand into international supply chain trading in 2024, aiming to diversify revenue sources and reduce reliance on any single market or product[86] - The company is actively exploring ways to broaden its coal business scope to enhance operational conditions and optimize business structure[86] Assets and Liabilities - As of December 31, 2023, the company's equity attributable to owners increased by 37.6% to RMB 788 million, while total assets rose by 81.7% to RMB 1.58 billion[103] - Total liabilities increased significantly to RMB 785,714,000 in 2023 from RMB 296,650,000 in 2022, representing a growth of approximately 164%[140] - The company's total current assets increased to RMB 1,278,258 thousand in 2023 from RMB 605,278 thousand in 2022[129] Employee and Operational Metrics - The total employee cost for the year was approximately RMB 85.8 million, up from RMB 59.5 million in the previous year, reflecting an increase in the number of employees from 743 to 820[110] - The group has a strong cash flow generated from operations, primarily used to cover operating expenses during the year[107] - The group anticipates sufficient resources to meet operational funding needs moving forward[107]

Revenue Growth - The coal trading segment generated revenue of RMB 1,279,197,000 for the six months ended June 30, 2023, compared to RMB 712,176,000 for the same period in 2022, representing an increase of approximately 79.5%[32] - Total revenue for the group reached RMB 1,334,580,000 for the six months ended June 30, 2023, up from RMB 780,204,000 in the previous year, marking a growth of about 71.1%[32] - The coal business contributed revenue of RMB 1.33 billion in the current period, compared to RMB 780 million in the previous year, reflecting a significant increase[95] - Revenue for the period increased by approximately 71.1% to about RMB 1.33 billion from approximately RMB 780 million in the previous period, mainly driven by a revenue increase of about RMB 560 million from the coal business[119] - The coal business segment reported a revenue growth of approximately 71.7% compared to the same period last year, indicating successful capitalizing on market opportunities[171] Financial Performance - The net foreign exchange gain amounted to RMB 6,787,000 for the first half of 2023, compared to RMB 6,169,000 in the same period of 2022, reflecting an increase of approximately 10%[34] - The group reported a total of RMB 15,401,000 in other income for the first half of 2023, compared to RMB 130,000 in the same period of 2022[34] - The group’s basic earnings per share remained unchanged as there were no dilutive potential ordinary shares in issue during the reporting period[43] - The group reported a net other income of approximately RMB 154 million, up from RMB 76 million in the previous period, mainly from unrealized exchange gains and government subsidies[122] - The income tax expense for the period was approximately RMB 13.9 million, compared to RMB 5.2 million in the previous period[148] Capital Expenditures and Investments - The group incurred capital expenditures of approximately RMB 4,388,000 for property, plant, and equipment during the six months ended June 30, 2023, down from RMB 11,645,000 in the previous year[45] - The company has capital commitments of RMB 9,269 thousand for property and equipment as of June 30, 2023, compared to RMB 9,910 thousand as of December 31, 2022[65] - The company completed the acquisition of 95% of Shanxi Fanpo for RMB 9.6 million in January 2022 and acquired the remaining 5% for RMB 500,000 in February 2023, making it a wholly-owned subsidiary[115] - The acquisition of Margaux Investment Limited for HKD 41.847 million aims to vertically integrate and expand the coal business, enhancing existing coal trading and supply chain management services[92] - The acquisition of the remaining 5% equity in Shanxi Fanpo was completed for RMB 500,000, making it a wholly-owned subsidiary[126] Assets and Liabilities - As of June 30, 2023, total other receivables and prepayments, net amount to RMB 93,184 thousand, a significant increase from RMB 31,947 thousand as of December 31, 2022, representing a growth of 191.5%[50] - Trade receivables and notes amounted to RMB 370,563 thousand as of June 30, 2023, compared to RMB 183,893 thousand as of December 31, 2022, indicating an increase of 101.5%[69] - Other payables and accrued expenses totaled RMB 88,505 thousand as of June 30, 2023, up from RMB 57,187 thousand as of December 31, 2022, reflecting a rise of 54.6%[74] - The company reported trade payables of RMB 596,451 thousand as of June 30, 2023, compared to RMB 167,354 thousand as of December 31, 2022, showing a substantial increase of 256.5%[73] - As of June 30, 2023, the equity attributable to the owners of the company increased to RMB 654.6 million, a rise of approximately 14.3% from RMB 572.5 million on December 31, 2022[156] Market Conditions and Outlook - Domestic raw coal production for the first half of 2023 was approximately 2.3 billion tons, a year-on-year growth of about 4.4%, while raw coal imports surged to approximately 220 million tons, marking a year-on-year increase of about 93%[87] - The national coal price index for 5500K coal decreased from RMB 791 per ton at the beginning of the period to RMB 731 per ton by the end of June 2023, indicating downward pressure on coal prices due to lower domestic demand[88] - The demand for coal is expected to remain strong, supported by the anticipated growth in electricity consumption, projected at around 6% for 2023[89] - The long-term outlook for the coal industry in China remains optimistic, with projected annual electricity consumption growth of 4.4% from 2021 to 2025[175] - The company remains optimistic about the prospects of its core business, particularly in the coal sector, for the second half of 2023[197] Strategic Initiatives - The company plans to continue seeking opportunities to develop its coal business through value-accretive acquisitions or strategic resource reallocations[94] - The company is actively exploring the feasibility of resuming mining operations to capitalize on future growth opportunities in the Chinese economy[193] - The company is reallocating more resources to its coal business to seize opportunities in the thriving coal industry[194] - The company aims to diversify its revenue sources and reduce reliance on a single market or product through the expansion of its coal business[195] - The company has adopted a cautious strategic approach to manage potential risks while seizing opportunities in the market[193]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Huili Resources (Group) Limited 滙 力 資 源（ 集 團 ）有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1303） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 的 中 期 業 績 滙力資源（集團）有限公司（「本公司」）董事（「董事」）會（「董事會」）謹宣佈本公司及 其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月（「本期間」）的 未經審核中期簡明合併業績，連同二零二二年同期（「先前期間」）的比較數字如 下： ...

Coal Business Expansion - The group expanded its coal business into Hainan, China, and diversified into coal processing and supply chain services, marking a significant milestone [19]. - The acquisition of 95% equity in Shanxi Fanpo Clean Energy Technology Co., Ltd. was completed through a wholly-owned subsidiary [19]. - The company completed the acquisition of Shanxi Fanpo in January 2022, expanding its upstream operations in the coal industry and diversifying its revenue sources [28]. - The company is actively seeking opportunities to develop its coal business through value-accretive acquisitions or strategic resource reallocation [29]. - The company is focusing on its coal business as a strategic segment, reallocating resources accordingly [121]. - The company is expanding its coal business scope to diversify revenue streams and mitigate adverse market conditions, aiming to improve operational status and optimize business structure [93]. - The company is focused on expanding its coal trading business, leveraging the expertise of its management team in this sector [108]. Financial Performance - The revenue from the coal mining and washing industry grew by approximately 16.9% year-on-year, reaching RMB 6.8 trillion in 2022 [19]. - In 2022, the company's coal trading business generated revenue of approximately RMB 2.01 billion, an increase of about 37.5% compared to RMB 1.46 billion in 2021 [30]. - The company's revenue increased by approximately 37.0% to about RMB 2.02 billion from RMB 1.47 billion in the previous year, primarily due to a RMB 540 million increase in coal business revenue [44]. - Gross profit surged nearly 19 times to approximately RMB 2.12 billion from RMB 107 million in the previous year, driven by higher average selling prices and sales volume of coal products [44]. - Operating profit for the coal business reached RMB 2.01 billion with an operating profit margin of 10.5%, compared to RMB 1.46 billion and a margin of 0.27% in the previous year [48]. Resource Management - As of December 31, 2022, the total controlled nickel resources amounted to 9,430 tons with a grade of 0.71% [9]. - The total controlled copper resources were 3,150 tons with a grade of 0.24% as of December 31, 2022 [9]. - The total zinc resources at the Baiganhu project were 251,450 tons with a grade of 6.49% [9]. - The total lead resources at the Baiganhu project were 156,580 tons with a grade of 4.03% [9]. - The company holds two mining licenses and two exploration licenses in Xinjiang, China, and is evaluating the feasibility of production and seeking potential partners for development [35]. Market Conditions - National coal production recorded a year-on-year increase of approximately 9% in 2022, driven by stable power generation demand and reduced coal imports [19]. - The coal import volume is projected to decrease by about 9.2% year-on-year to approximately 29 million tons in 2022 due to various geopolitical factors [20]. - The long-term contract fulfillment rate for coal is expected to reach 100% in 2023, up from 90% in 2022, which may tighten supply in the short term [24]. - The company anticipates that electricity demand will continue to grow, with an expected annual growth rate of 4.4% from 2021 to 2025, supporting long-term coal market health [27]. - In 2023, the coal supply-demand structural imbalance is expected to worsen, potentially driving up coal prices due to stricter supply regulations requiring a minimum supply guarantee rate of 75% for thermal coal [94]. Corporate Governance - The company has appointed independent directors with extensive experience in finance and investment, strengthening its governance structure [110]. - The management team includes professionals with significant experience in public offerings and financial management, which may benefit future fundraising efforts [113]. - The company is committed to maintaining high standards of corporate governance and financial transparency [112]. - The board consists of eight directors, including four executive directors and three independent non-executive directors [185]. - The company has established mechanisms to ensure the board receives independent opinions and advice [189]. Employee Management - The group employed 743 employees as of December 31, 2022, a significant increase from 46 employees in the previous year [85]. - Total employee costs for the year were approximately RMB 59.5 million, up from RMB 9.0 million in the prior year [85]. Environmental and Social Responsibility - The company has complied with all relevant environmental laws and regulations in China, with no environmental claims or penalties reported during the year [132]. - The company is focusing on green development in its mining operations to balance resource development and ecological protection [46]. Debt and Financial Management - The company has fully repaid a loan of RMB 65 million that was extended for a total of 36 months [38]. - A loan agreement for HKD 22.6 million (approximately RMB 18.5 million) was established, which was fully repaid by December 2022 [41]. - The group maintained a debt-to-equity ratio of 0% as of December 31, 2022, consistent with the previous year [72]. Strategic Outlook - The group acknowledges a cautious outlook due to ongoing global inflation and geopolitical tensions, impacting market predictability [86]. - The board maintains a cautiously optimistic outlook for the core coal business, focusing on sustainable development and exploring cooperative mining opportunities to maximize resource value [96]. - The company plans to actively pursue potential acquisition opportunities to capture market opportunities in China and diversify its revenue base [96].

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。 Huili Resources (Group) Limited 滙 力 資 源（ 集 團 ）有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1303） 有 關 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 全 年 業 績 公 告 之 補 充 公 告 茲 提 述 滙 力 資 源（集 團）有 限 公 司（連 同 其 附 屬 公 司 統 稱「本 集 團」）日 期 為 二 零 二三年三月二十八日的公告（「公告」），內容有關本集團截至二零二二年十二月 三十一日（「本年度」）止年度的年度業績。除另有界定者外，本公告所用詞彙與 公告所界定者具相同涵義。 除該等公告所提供的資料外，董事會謹此澄清，董事不建議就本年度派付任何 未期股息（先前年度：無）。 承董事會命 滙力資源（集團）有限公司 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Huili Resources (Group) Limited 滙 力 資 源（ 集 團 ）有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1303） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 度 業 績 公 佈 滙力資源（集團）有限公司（「本公司」）董事（「董事」）會（「董事會」）謹宣佈本公司及 其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度的合併業 績，連同過往財政年度的比較數字。 合併全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 收益 3 2,015,009 1,470,396 ...

Financial Performance - The company reported revenue of RMB 780,204,000 for the six months ended June 30, 2022, representing a 70.4% increase from RMB 457,893,000 in the same period of 2021[9]. - Gross profit for the same period was RMB 29,558,000, compared to RMB 5,507,000 in 2021, indicating a significant improvement in profitability[9]. - The operating profit for the six months ended June 30, 2022, was RMB 25,614,000, recovering from an operating loss of RMB 5,896,000 in the previous year[9]. - The net profit for the period was RMB 20,683,000, a turnaround from a net loss of RMB 7,182,000 in the same period of 2021[9]. - The company reported a total comprehensive income of RMB 17,760,000 for the six months ended June 30, 2022, compared to a loss of RMB 6,719,000 in the previous year[11]. - The company recorded other income of RMB 7,627,000 for the period, significantly up from RMB 560,000 in the previous year[9]. - The group reported a profit attributable to equity holders of RMB 20,955,000 for the six months ended June 30, 2022, compared to a loss of RMB 7,152,000 in the same period of 2021[60]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were RMB 1.29, compared to a loss per share of RMB 0.44 in the same period of 2021[60]. - The group’s total tax expense for the six months ended June 30, 2022, was RMB 5,231,000, compared to RMB 1,338,000 in the same period of 2021, representing a significant increase[54]. Assets and Liabilities - As of June 30, 2022, total assets amounted to RMB 628,904,000, an increase of 12.5% from RMB 558,586,000 as of December 31, 2021[12][14]. - Non-current assets increased to RMB 262,904,000, up 21.3% from RMB 216,821,000 in the previous year[12][14]. - Current assets totaled RMB 366,000,000, reflecting a rise of 7.1% compared to RMB 341,765,000 as of December 31, 2021[12][14]. - Total liabilities reached RMB 218,165,000, representing a 31.2% increase from RMB 166,274,000 in the prior year[14]. - The company reported a cumulative loss of RMB (381,502,000) as of June 30, 2022, compared to RMB (402,223,000) at the end of the previous year[14]. - The company’s total equity increased to RMB 410,739,000, up from RMB 392,312,000, marking a growth of 4.4%[14]. Business Operations - The company is engaged in coal trading and processing, as well as mining and sales of nickel, copper, lead, and zinc products in China[20]. - The company has not conducted any mining production or capital expenditures related to development and mining activities during the reporting period[7][8]. - The company continues to focus on expanding its coal trading and processing capabilities within China, leveraging its established supply chain management[35]. - The financial services segment is expected to grow as the company enhances its service offerings in the energy sector[35]. - The company is actively seeking opportunities to develop its coal business through value-accretive acquisitions or strategic resource reallocation[99]. Coal Business Performance - For the six months ended June 30, 2022, the coal business segment generated revenue of RMB 777,160,000, a significant increase from RMB 455,104,000 for the same period in 2021, representing a growth of approximately 70.8%[43][46]. - The revenue from coal trading was RMB 712,176,000, while coal processing services contributed RMB 28,829,000 and coal supply chain services added RMB 36,155,000[47]. - The operating profit for the coal business segment was RMB 28,180,000, while the financial services segment reported an operating profit of RMB 2,560,000[39]. - The coal business segment experienced a revenue growth of approximately 70.8% compared to the previous period, demonstrating successful diversification and risk management strategies by the company[141]. Acquisitions and Investments - The acquisition of 95% equity in Shanxi Fanpo was completed on January 5, 2022, for a total consideration of RMB 9,599,000[79]. - Shanxi Fanpo contributed approximately RMB 150,087,000 in revenue and RMB 3,841,000 in profit to the group from the acquisition date to the reporting period end[82]. - The group plans to diversify its revenue sources and expand its business portfolio through the acquisition of Shanxi Fanpo, which operates in the coal sales and washing industry[79]. - The group recognized a bargain purchase gain of approximately RMB 3,081,000 from the acquisition of Shanxi Fanpo[82]. Financial Risks and Management - The company’s business is exposed to various financial risks, including market risk, credit risk, and liquidity risk, with no use of derivatives for hedging or trading purposes[28]. - The group’s expected credit loss for trade receivables was RMB 6,500,000, indicating a focus on managing credit risk[39]. - The group is committed to strict control over outstanding receivables, with management regularly reviewing overdue balances[64]. - The group has not recognized any impairment on trade receivables as of June 30, 2022, indicating effective credit risk management[134]. Market Conditions - The coal mining industry in China saw a revenue increase of 60.8% year-on-year, reaching RMB 16,570.6 billion from January to May 2022[91]. - The daily production of raw coal reached a historical high of 12.77 million tons in March 2022, following the implementation of coal supply guarantee policies[92]. - The total coal imports in China decreased by 13.6% year-on-year, amounting to 95.95 million tons due to export bans and geopolitical tensions[92]. - The price index for NCEI 5500K coal rose from RMB 750 per ton in January 2022 to RMB 807 per ton in February 2022, before stabilizing at RMB 770 per ton from March to June 2022[96]. Corporate Governance - The company has revised its articles of association to comply with the updated listing rules effective from January 1, 2022[164]. - The company has adopted corporate governance practices in line with the updated code effective from January 1, 2022[166]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim results[170]. - The interim results have not been audited but have been reviewed by the audit committee[170]. Shareholder Information - Affinitiv Mobile Ventures Ltd. and China Huarong Overseas Investment Holdings Co., Limited each hold 320,000,000 shares, representing 19.75% of the company's issued share capital[151]. - The total number of shares available for issuance under the share option scheme is 162,000,000, which is approximately 10% of the total issued shares as of June 30, 2022[157]. - The new share option scheme adopted on May 28, 2021, will remain effective for 10 years until May 27, 2031[154]. - The share option plan aims to incentivize and reward participants for their contributions to the group and to attract and retain talent[155].

Exploration and Mining Activities - The company reported exploration expenses of approximately RMB 189,000 for the year ended December 31, 2021, compared to none in 2020[22]. - As of December 31, 2021, the controlled resources for Project No. 20 included 1,330,000 tons of nickel metal with a grade of 0.71% and 3,150 tons of copper metal with a grade of 0.24%[17]. - The total estimated resources for Project No. 20 amounted to 2,590,000 tons of nickel metal with a total of 18,090 tons and an average grade of 0.70%[17]. - The company holds mining licenses for Project No. 20 and the Baiganhu Project, with areas of 0.22 square kilometers and 0.96 square kilometers respectively[19]. - The Baiganhu Project has a controlled resource of 1,730,000 tons of zinc metal with a grade of 6.57% and 71,440 tons of lead metal with a grade of 4.13%[17]. - The company did not incur any capital expenditures related to mining activities for the years ended December 31, 2020, and December 31, 2021[21]. - The company has not conducted any ore production during the years ended December 31, 2020, and December 31, 2021[20]. - The company is evaluating the feasibility of production for two mining licenses, focusing on copper, nickel, lead, and zinc extraction[37]. - The company plans to seek potential partners for joint development of mining sites to maximize economic value[47]. - The company is committed to green development in the mining sector, ensuring compliance with stricter safety and environmental regulations implemented by the government[47]. Financial Performance - The company’s gross profit increased by approximately 154.8% to about RMB 107 million for the year, compared to RMB 4.2 million in the previous year[47]. - The total sales cost for the year was approximately RMB 1.46 billion, up from RMB 137 million in the previous year, reflecting a 9.7-fold increase primarily due to higher coal product sales[47]. - Administrative expenses for the year were approximately RMB 210 million, a decrease from RMB 244 million in the previous year[51]. - The financial services segment generated revenue of approximately RMB 57 million for the year, slightly up from RMB 56 million in the previous year[46]. - Total revenue for the year was approximately RMB 1,470.4 million, with an operating profit of RMB 2.43 million, resulting in an operating profit margin of 0.2%[58]. - Other income for the year was approximately RMB 0.2 million, primarily from rental income and interest income from financial assets measured at fair value through other comprehensive income[52]. - Other operating losses for the year amounted to approximately RMB 4.2 million, compared to other operating income of approximately RMB 12.4 million in the previous year[53]. - Financial income for the year was approximately RMB 0.3 million, down from RMB 0.8 million in the previous year[55]. - Income tax expense for the year was approximately RMB 2.7 million, compared to RMB 3.6 million in the previous year[56]. Coal Business Development - The coal business segment contributed approximately RMB 1.46 billion in revenue for the year, a significant increase from RMB 135.6 million in the previous year[36]. - The company acquired 95% of Shanxi Fanpo Clean Energy Technology Co., Ltd. in January 2022, expanding its upstream coal business and diversifying revenue sources[31][32]. - The company decided to terminate its engineering services division and sell one of its exploration permits to reallocate financial and management resources towards coal business opportunities[34]. - The company has established three indirect subsidiaries for coal trading, primarily serving local coal traders and energy companies[34]. - The company aims to enhance resource utilization efficiency and reduce coal pollution emissions through the construction of a coal washing plant by Shanxi Fanpo[32]. - The designed maximum processing capacity of the new coal washing plant under construction by Shanxi Fanpo is approximately 20,000 tons per day, aimed at improving coal utilization efficiency and reducing emissions[86]. - The implementation of the new pricing scheme is expected to benefit the company's coal business significantly[87]. - The company is focusing on expanding its coal business scope to mitigate adverse market conditions and improve overall operational performance[87]. Corporate Governance and Management - The company has a strong management team with diverse backgrounds in finance, investment, and engineering, enhancing its operational capabilities[102][100]. - The board includes independent directors with extensive experience in investment and financial consulting, contributing to strategic decision-making[105]. - The company is committed to maintaining high standards of corporate governance and transparency in its operations[105]. - The company has implemented sufficient internal controls as reviewed by the Audit Committee, ensuring compliance with financial reporting standards[192]. - The company’s governance practices are aligned with the code, ensuring that all directors commit sufficient time to board matters[190]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[174]. - The company has established an Audit Committee, which held 4 meetings during the year to review the effectiveness of audit procedures and financial reporting[191]. - The Remuneration Committee held 3 meetings during the year to review the compensation policies and structures for directors and senior management[196]. - The company’s independent non-executive directors serve a term of three years, with the possibility of renewal, while independent non-executive directors are limited to a maximum term of nine years[190]. Market Conditions and Economic Outlook - For the year ended December 31, 2021, China's GDP was approximately RMB 114,367 billion, representing a year-on-year growth of 8.1%[26]. - In 2021, the production of raw coal in China reached approximately 4.07 billion tons, an increase of 4.7% year-on-year, while coal imports rose by 6.6% to about 320 million tons[27]. - The CCI5500 coal price index recorded a year-on-year increase of 7.9%, peaking at RMB 2,350 per ton in October 2021, before declining to RMB 907 per ton by the end of the year[27]. - The National Development and Reform Commission announced a 31% increase in the benchmark price of coal from RMB 535 per ton to RMB 700 per ton, indicating a balanced supply-demand outlook for the coal market[87]. - Despite a record high GDP growth rate in the first quarter of 2021, signs of economic slowdown were observed in the second half of 2021[84]. - The impact of the COVID-19 pandemic on the global economy and the group's business remains uncertain and difficult to predict[83]. - The company is exploring the feasibility of resuming operations at its mines to capitalize on future economic growth opportunities in China[84]. Risks and Challenges - The company continues to face various risks, including commodity price volatility and regulatory changes in China, which could significantly impact its operations and financial performance[122][123]. - The company’s operations are significantly influenced by the political, economic, and legal developments in China, which pose inherent risks to its mining operations[122]. - The group recognized an expected credit loss of RMB 2.8 million for receivables, an increase from RMB 0.7 million in 2020[75]. - Total provision for trade receivables was approximately RMB 5.6 million, up from RMB 3.7 million in 2020[76]. Shareholder Information - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 209.9 million, with a share premium of about RMB 668.8 million and accumulated losses of approximately RMB 458.0 million[134]. - Sales to the top five customers accounted for 29.8% of total sales for the year, down from 78.2% in 2020, while sales to the largest customer represented 12.2% of total sales, down from 27.9% in 2020[138]. - Purchases from the top five suppliers constituted 96.5% of total purchases, an increase from 94.5% in 2020, with the largest supplier accounting for 64.2% of total purchases, up from 27.1% in 2020[138]. - The total number of shares available for issuance under the stock option plan is 162,000,000, which represents approximately 10% of the total issued shares as of the date of the annual general meeting approval[153]. - Tian Yuan International Limited holds 412,592,702 shares, representing 25.47% of the issued share capital[158]. - Guo Jianzhong holds 454,958,702 shares through controlled entities, representing 28.08% of the issued share capital[162]. - Affinitiv Mobile Ventures Ltd. holds 320,000,000 shares, accounting for 19.75% of the issued share capital[162]. - Legend Vantage Limited holds 147,000,000 shares, representing 9.07% of the issued share capital[164].

Financial Performance - The company reported revenue of RMB 457.893 million for the six months ended June 30, 2021, a significant increase from RMB 17.499 million in the same period of 2020, representing a growth of approximately 2,615%[11]. - Gross profit for the same period was RMB 5.507 million, compared to RMB 1.801 million in 2020, indicating a substantial improvement in profitability[11]. - The company incurred an operating loss of RMB 5.896 million for the six months ended June 30, 2021, an improvement from an operating loss of RMB 11.563 million in the prior year[11]. - The company reported a net loss of RMB 7.182 million for the period, compared to a net loss of RMB 11.185 million in the same period of 2020, showing a reduction in losses[11]. - The total comprehensive loss for the six months ended June 30, 2021, was RMB 6,719,000, a decrease from RMB 11,185,000 in the same period of 2020, representing a 40.5% improvement[12]. - The basic and diluted loss per share attributable to equity holders of the company was RMB (0.44), compared to RMB (0.69) in the previous year, indicating a 36.2% reduction in loss per share[12]. - The company reported a net loss attributable to equity holders of RMB 7,152,000 for the six months ended June 30, 2021, an improvement from a net loss of RMB 11,208,000 in the same period of 2020[63]. Revenue Sources - The group’s total revenue for the six months ended June 30, 2021, was RMB 457,893,000[44]. - Coal trading revenue accounted for RMB 455,104,000, compared to RMB 14,611,000 in the previous year, indicating a growth of approximately 3,109%[52]. - For the six months ended June 30, 2021, the Mining segment generated revenue of RMB 2,789,000, while the Trading segment generated RMB 455,104,000[44]. - The financial services segment generated interest income of RMB 2,789,000, slightly down from RMB 2,888,000 in the previous year[52]. Assets and Liabilities - Non-current assets increased to RMB 278,931,000 as of June 30, 2021, from RMB 258,994,000 as of December 31, 2020, reflecting a growth of 7.7%[13]. - Current assets decreased to RMB 196,973,000 from RMB 209,786,000, a decline of 6.1%[13]. - Total liabilities rose to RMB 73,006,000 from RMB 59,163,000, marking an increase of 23.3%[15]. - Cash and cash equivalents decreased to RMB 135,592,000 from RMB 169,139,000, a reduction of 19.8%[21]. - The total equity attributable to equity holders of the company decreased to RMB 402,898,000 from RMB 409,617,000, a decline of 1.8%[15]. Operational Activities - The company has not engaged in any mineral production activities during the reporting period, focusing instead on exploration and resource assessment[9]. - The company is in the process of renewing mining licenses for the 20th project and Baikan Lake project, with applications submitted to relevant government departments[8]. - The processing capacity of the two mineral processing plants is 1,500 tons per day, but no mining or processing activities were conducted during the reporting period[90]. Financial Risks and Governance - The group faces various financial risks, including market risk (foreign exchange, interest rate, and price risks), credit risk, and liquidity risk, with no use of derivatives for hedging or trading purposes[31]. - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and the relevant disclosure requirements of the Hong Kong Stock Exchange[23]. - The company has established an Audit Committee to review and monitor financial reporting processes, internal controls, and risk management systems, consisting of three independent non-executive directors[139]. Share Capital and Management - The company has a total share capital of RMB 137,361,000 with a share premium of RMB 668,768,000 as of June 30, 2021[76]. - The total remuneration for key management personnel decreased from RMB 1,898,000 in 2020 to RMB 1,507,000 in 2021, reflecting a reduction of approximately 20.6%[80]. - The company appointed Mr. Ye Xin as an executive director on July 12, 2021, holding 35,000,000 shares, approximately 2.16% of the issued share capital[134]. Future Outlook and Strategy - The group anticipates 2021 to be a challenging year due to ongoing global pandemic impacts and economic uncertainties, particularly in the second half of the year[116]. - The board maintains a cautiously optimistic outlook for core businesses, including mining, financial services, and coal trading, while seeking collaboration opportunities for exploration permits[118]. - The company is exploring opportunities for cooperation in mining exploration to maximize the economic value of its resources[86]. - The group aims to explore potential acquisitions to capture market opportunities in China and diversify its revenue base[118].