Financial Performance - Consolidated revenue for the six months ended September 30, 2022, was HK$289.5 million, a decrease of 7.64% from HK$313.5 million in the corresponding period of 2021[19] - Gross profit for the same period was HK$25.8 million, down 10.65% from HK$28.9 million in 1H2021[19] - Loss attributable to the owners of the Company was HK$13.3 million, compared to a loss of HK$4.5 million in 1H2021, representing an increase of 194.0%[19] - Losses per share increased to HK(1.13) cents from HK(0.48) cents, a rise of 135.42%[19] - The Group's revenue decreased by approximately 7.6% to approximately HK$289.5 million compared to HK$313.5 million in the corresponding period[83] - Loss attributable to owners of the Company amounted to approximately HK$13.3 million, compared to a loss of approximately HK$4.5 million in the previous period[84] - Basic loss per share was HK1.13 cents, an increase from HK0.48 cents in the corresponding period[88] - Loss before tax for the period was HK$9,411,000, compared to a loss of HK$6,775,000 in the prior year, indicating a worsening of 38.4%[194] - The net loss for the period attributable to the owners of the Company was HK$13,319,000, compared to a loss of HK$4,531,000 in the previous year, representing an increase in loss of 194.5%[194] - Total comprehensive income for the period was HK$(35,395,000), significantly lower than HK$(3,299,000) in the same period last year[197] Revenue Breakdown - Revenue from the construction business was approximately HK$229.8 million, a decrease of 17.7% compared to HK$279.2 million in 1H2021[23] - Revenue from the Environmental Protection Business increased by approximately 74.6% to approximately HK$59.7 million, up from HK$34.2 million in the first half of 2021[33] - Revenue from kitchen waste treatment amounted to HK$59.7 million, with a decrease in overall treatment volume offset by construction revenue from Xuancheng Plant[34] Project Updates - As of September 30, 2022, the Group had 5 projects in progress with an aggregate contract value of approximately HK$957.9 million, all on schedule without increasing contingent liabilities[29] - The Xuancheng Plant's Phase 1 construction has been completed and is currently applying for trial commercial operation[48] - The Dunhua Plant has been granted an exclusive concession right to operate a kitchen waste plant with a capacity of 200 tons per day for a term of 30 years[46] - The Guoyang Plant has a planned capacity of 126 tons per day, with a service concession agreement entered in March 2022, but construction has not commenced as of September 30, 2022[50] Financial Position - Total assets decreased by approximately 2.9% to approximately HK$789.1 million from HK$812.6 million[95] - The gearing ratio improved to approximately 35.7% from 42.3% as a result of decreased borrowings[100] - The Group had bank balances and cash of approximately HK$70.7 million, down from approximately HK$117.5 million[95] - Total non-current assets decreased from 416,773 to 388,215, a decline of approximately 6.8%[200] - Current assets increased from 395,831 to 400,846, reflecting a growth of about 1.3%[200] - Cash and cash equivalents decreased significantly from 117,458 to 70,695, a drop of approximately 40%[200] Administrative and Other Expenses - Administrative expenses rose from approximately HK$45.3 million to HK$56.6 million, largely due to an exchange loss of approximately HK$19.8 million[93] - Other income and gains increased from approximately HK$23.2 million to HK$27.1 million, primarily due to compensation for guaranteed revenue from the Hefei Plant[91] - Finance costs decreased by approximately 57.7% from HK$13.7 million to HK$5.8 million due to a reduction in overall borrowing levels[94] Share Capital and Options - The Company completed a subscription agreement on October 28, 2022, issuing 129,624,000 shares at a price of HKD 0.27 each, raising gross proceeds of approximately HKD 34.99 million[73] - A placing agreement was entered into on November 16, 2022, for the placement of up to 98,330,026 new shares at a price of HKD 0.385 per share, with 98,000,000 shares allotted and issued by December 2, 2022[78] - The total number of shares that may be issued upon exercise of all options under the Share Option Scheme is 572,900,134 shares[125] - The total outstanding share options as of September 30, 2022, amount to 33,648,000[138] Corporate Governance - The Company has complied with the corporate governance code provisions during the period[189] - The Audit Committee reviewed the interim financial information and confirmed compliance with applicable accounting principles and legal requirements[191] - The Company did not purchase, sell, or redeem any of its listed securities during the period[185] - All directors confirmed compliance with the required standards regarding their securities transactions during the reporting period[182] Strategic Focus - The Group's strategic focus aligns with China's increased efforts in environmental protection during the 14th Five-Year Plan, particularly in the niche of harmless and resource utilization sectors[80] - The Group is actively seeking to become an integrated organic waste solutions provider to capture opportunities in kitchen-related organic waste[81]

Financial Performance - The Group reported a profit of approximately HK$17.1 million for FY2022, a significant improvement from a loss of HK$63.6 million in FY2021[15]. - The Group's revenue increased by approximately 10.7% to approximately HK$654.9 million for the year, compared to HK$591.5 million in FY2021, driven by growth in the Environmental Protection Business[93]. - Profit attributable to owners of the Company was approximately HK$5.5 million, a significant recovery from a loss of approximately HK$55.0 million in the prior year[94]. - Basic and diluted earnings per share improved to HK0.53 cents, compared to a loss per share of HK7.24 cents for the prior year[97]. - Other income and gains increased from approximately HK$56.8 million to HK$65.3 million, primarily due to gains from the disposal of assets and reversal of impairment[95]. - Administrative expenses decreased by 15.9% from approximately HK$113.0 million in FY2021 to HK$95.0 million in FY2022[98]. - Finance costs decreased by approximately 45.4% from approximately HK$38.3 million to approximately HK$20.9 million, attributed to a reduction in overall borrowing levels[100]. - The audit opinion for FY2022 indicated that the material uncertainty regarding going concern is no longer applicable due to measures taken to strengthen the financial position[109]. Construction Segment - Revenue from the construction segment was approximately HK$453.1 million, representing a decrease of 10.3% from approximately HK$504.9 million in FY2021[23]. - The overall gross profit margin for the construction business was approximately 10.8%, consistent with the previous year's margin of 10.4%[24]. - Approximately 75.1% of the construction segment revenue was contributed by public sector foundation projects[25]. - Key contributors to the construction revenue included a foundation project in Wang Chiu Road contributing approximately HK$294.3 million and another project in Tuen Mun Hin Fat Lane contributing approximately HK$45.5 million[25]. - The construction segment generated revenue of approximately HK$453.1 million in FY2022, a decrease of 10.3% from HK$504.9 million in FY2021, primarily due to a reduction in the number of large projects undertaken[28]. - The Group completed a total of 6 projects in FY2022, down from 9 projects in FY2021, and secured 6 new projects with an aggregated contract value of approximately HK$118.9 million, significantly lower than HK$523.7 million in FY2021[31]. Environmental Protection Business - Revenue from the Environmental Protection Business increased by approximately 133% to approximately HK$201.8 million in FY2022, compared to approximately HK$86.6 million in FY2021[34]. - Revenue generated from kitchen waste treatment amounted to approximately HK$201.8 million in FY2022, up from approximately HK$61.8 million in FY2021, mainly due to construction revenue from Xuancheng Plant[37]. - The Taiyuan Plant contributed revenue of approximately HK$20.2 million to the Group prior to its disposal, compared to approximately HK$36.3 million in FY2021[38]. - The Hefei Plant's treatment volume decreased to around 160 tons per day since June 2021 due to competition from other plants, but it resumed normal operations after a temporary decline caused by COVID-19[43]. - Hefei Plant recognized a partial reversal of impairment of approximately HK$24,083,000 due to increased demand and selling prices for used cooking oil, a by-product of the plant[44]. - The Xuancheng Plant generated revenue of approximately RMB118,169,000 (approximately HK$144,109,000) from construction activities, with profit of RMB17,725,000 (approximately HK$21,616,000) during the year[52]. Strategic Initiatives and Future Plans - The Company is actively seeking business opportunities in the environmental protection sector, particularly in kitchen waste treatment, driven by new policies under the "14th Five-Year Plan"[17]. - The Group plans to leverage its technical processes in kitchen waste treatment and actively seek partnerships to develop new technologies and business opportunities[89]. - The Group entered into a cooperation agreement for a production and R&D project in Yixing, Jiangsu, with a total investment of approximately US$160 million, of which phase 1 is approximately US$40 million[81]. - The Group established a joint venture, Yisheng Zhihui, with a registered capital of US$10 million, holding a 62.5% stake[72]. - The principal activities of Yisheng Zhihui include sales, manufacturing, and R&D of environmental protection equipment, with plans to bid for a land parcel in Xi'an National Hi-tech Industries Development Zone[69]. Corporate Governance and Compliance - The Company has adopted a compliance manual for corporate governance, ensuring adherence to the CG Code during the year[141]. - The effectiveness of the Company's risk management and internal control systems was reviewed by the Audit Committee[150]. - The Group emphasizes corporate governance and compliance through its independent non-executive directors[169]. - The annual report is accompanied by audited consolidated financial statements, ensuring transparency and accuracy in financial reporting[179]. Market Conditions and Challenges - The overall market is expected to remain volatile due to high commodity prices and rising interest rates[16]. - The construction market in Hong Kong is expected to benefit from government public expenditure commitments, despite challenges from rising material and labor costs[90]. - The resurgence of COVID-19 did not significantly impact the business performance or disrupt construction operations[26]. Financial Position and Capital Management - As of March 31, 2022, the Group had bank balances and cash of approximately HK$117.5 million, up from approximately HK$66.7 million a year earlier[102]. - Total interest-bearing loans decreased to approximately HK$80.8 million from approximately HK$150.9 million as of March 31, 2021[103]. - The gearing ratio improved to approximately 42.3% as of March 31, 2022, compared to approximately 150.2% as of March 31, 2021, primarily due to a decrease in overall borrowings[110]. - The group pledged assets, including property, plant, and equipment with carrying values of approximately HK$45.3 million as of March 31, 2022, down from approximately HK$84.4 million as of March 31, 2021[111].

NUT 創業集團(控股)有限公司 NEW CONCEPTS HOLDINGS LIMITED (Incorporated in the Cayman Islands with Iimited liability) ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) Stock Code 股份代號：2221 202 " 中期報告 INTERIM REPORT 43 IIIIIIIII IIIIII HIHHHHHHHHHHHHHHHHH l CONTENTS 目錄 Corporate Information 公司資料 2 Management Discussion and Analysis 管理層討論及分析 5 Unaudited Condensed Consolidated Statement of Profit or Loss 未經審核簡明綜合損益表 39 Unaudited Condensed Consolidated Statement of Other Comprehensive Income 未經審核簡明綜合其他全面收益表 40 Unaudited Condensed Consolida ...

創業集團(控股)有限公司 NEW CONCEPTS HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） Stock Code 股份代號：2221 ANNUAL REPORT 年報 202 CONTENTS 101 102 105 107 | --- | --- | --- | |--------------------------------------------------------|-------|-----------------------------------------------| | | | | | | | | | | | | | Corporate Information | | Consolidated Statement of | | 公司資料 Chairman's Statement | 2 4 | Comprehensive Income 綜合全面收益表 | | 主席報告 Management Discussion ...

2020 Interim Report 0ff 中 期 報 → 88 t 4 0 0 創業集團(控股)有限公司 NEW CONCEPTS HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) Stock Code 股份代號：2221 CONTENTS 目錄 | --- | --- | |-----------------------------------------------------------------------------------------------------------|-------| | | | | Corporate Information 公司資料 | 2 | | Management Discussion and Analysis 管理層討論及分析 | 5 | | Unaudited Condensed Consolidated Statement of Profit or Loss 未經審核簡明綜合損益表 | ...

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides essential company information, including key management, registered office, and principal place of business [Corporate Information](index=3&type=section&id=Corporate%20Information) This chapter provides essential company information, including executive and non-executive directors, committee members, company secretary, registered office, Hong Kong principal place of business, independent auditor, legal counsel, and principal bankers - Key management includes Mr. Zhu Yongjun, Chairman of the Board, and Ms. Qin Shulan, Chief Executive Officer. Audit, Nomination, and Remuneration Committees are chaired by Dr. Tang Jiale, Mr. Luo Junchao, and Mr. Cai Weishi, respectively[5](index=5&type=chunk) - The company's registered office is in the Cayman Islands, with its Hong Kong headquarters and principal place of business located at Goldin Financial Global Centre, 19 Hung Yip Road, Kowloon Bay[8](index=8&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the Group's financial performance, business operations, and future outlook, highlighting key drivers and challenges [Financial Highlights](index=6&type=section&id=Financial%20Highlights) For the six months ended September 30, 2019, group revenue slightly decreased by 1.65% to HKD 502.6 million, but gross profit significantly increased by 29.61% to HKD 117.1 million; loss attributable to owners of the company narrowed substantially by 68.84% to HKD 5.476 million, with basic loss per share also decreasing to HKD 0.96 cents Financial Performance Summary (HKD thousands) | Indicator | H1 2019 (HKD thousands) | H1 2018 (HKD thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | **Consolidated Revenue** | 502,552 | 510,986 | (1.65)% | | **Gross Profit** | 117,138 | 90,375 | 29.61% | | **Loss Attributable to Owners of the Company** | (5,476) | (17,576) | (68.84)% | | **Basic Loss Per Share (HK cents)** | (0.96) | (3.15) | (69.52)% | [Business Review](index=6&type=section&id=Business%20Review) The Group's core businesses, including construction, environmental protection, and industrial fluid systems, experienced varied performance, complemented by a strategic investment disposal - The Group primarily engages in three core businesses: (i) construction business in Hong Kong (foundation, civil engineering, building construction); (ii) environmental protection business (kitchen waste treatment, industrial wastewater treatment, etc.); and (iii) industrial fluid systems services[19](index=19&type=chunk)[20](index=20&type=chunk) [I Construction Business](index=6&type=section&id=I%20Construction%20Business) Construction business revenue remained stable at HKD 348.7 million, with gross margin significantly improving to 10.99% due to high-margin projects and effective cost control - Construction business revenue was approximately **HKD 348.7 million**, largely consistent with **HKD 342.1 million** in the same period of 2018[21](index=21&type=chunk)[22](index=22&type=chunk) - The overall gross margin for the construction business significantly increased from approximately **6.35%** in H1 2018 to **10.99%** in the current period, primarily due to an increase in high-margin projects and no unexpected cost overruns[27](index=27&type=chunk) - As of September 30, 2019, the Group had **11 projects under construction** with a total contract value of approximately **HKD 775.1 million**[58](index=58&type=chunk) [II Environmental Protection Business](index=10&type=section&id=II%20Environmental%20Protection%20Business) Environmental protection business revenue declined by 27.91% to HKD 43.9 million as kitchen waste projects shifted to operation, while EPC profit commitments are under negotiation - Environmental protection business revenue decreased by approximately **27.91%** to **HKD 43.9 million**, primarily due to reduced construction revenue related to kitchen waste treatment[63](index=63&type=chunk)[66](index=66&type=chunk) - Kitchen waste treatment business revenue was **HKD 36.8 million** (HKD 54.4 million in the prior period), with the decrease mainly due to Taiyuan and Hefei projects entering the operational phase[64](index=64&type=chunk)[67](index=67&type=chunk) - The profit commitment for Clear EPC Group (Suzhou Commitment) is expected to be unachievable, and the company anticipates receiving approximately **RMB 87.975 million** in compensation, currently under negotiation with the counterparty[94](index=94&type=chunk) [III Industrial Fluid Systems Services](index=17&type=section&id=III%20Industrial%20fluids%20systems%20services) The newly acquired Vimab Group contributed SEK 134.9 million (HKD 110 million) in revenue, though issues regarding employee share subscription payments from the acquisition remain unresolved - Vimab Group, acquired in May 2018, contributed approximately **SEK 134.9 million** (about **HKD 110 million**) in revenue during this period, higher than **SEK 85.4 million** in the prior period (May 31 to September 30, 2018)[115](index=115&type=chunk)[118](index=118&type=chunk) - Regarding the misappropriation of **HKD 17.066 million** for 12 employee share subscriptions in the Vimab acquisition, the relevant deed of repayment expired in **June 2019**, and parties are still negotiating a solution[108](index=108&type=chunk)[109](index=109&type=chunk)[115](index=115&type=chunk) [IV Strategic Investments](index=20&type=section&id=IV%20Strategic%20investments) The Group completed the disposal of its Indonesian hydropower project, generating an unaudited gain of approximately HKD 32.6 million from impairment reversal and interest income - The Group completed the Stand Ascent Disposal, divesting its interests in Indonesian hydropower projects (DSE Company and SPM Company)[119](index=119&type=chunk)[121](index=121&type=chunk) - This disposal resulted in an unaudited gain of approximately **HKD 32.6 million** for the Group, including a reversal of prior impairment of approximately **HKD 15.9 million** and recognition of interest income of approximately **HKD 16.8 million**[129](index=129&type=chunk) [Outlook](index=24&type=section&id=Outlook) Management expresses optimism for the Hong Kong construction market and sees significant opportunities in China's waste treatment sector, with plans to expand industrial fluid systems services into the Chinese market - Despite political uncertainties, the company maintains a positive outlook on the Hong Kong construction market given government's large-scale infrastructure projects and land supply policies[132](index=132&type=chunk) - Waste sorting regulations implemented in Shanghai and other major Chinese cities are expected to bring significant opportunities for China's kitchen waste treatment industry[133](index=133&type=chunk) - The Group is discussing with Chinese partners to introduce its expertise in industrial fluid systems businesses, such as valve services, into the Chinese market[134](index=134&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) Group revenue slightly decreased to HKD 502.6 million, but net loss significantly narrowed to HKD 5.5 million, primarily driven by strategic investment disposal gains offsetting increased administrative and finance costs - Net other income and gains increased from **HKD 22.2 million** to **HKD 47.3 million**, primarily from a **HKD 15.9 million** impairment reversal and **HKD 16.8 million** interest income from the Stand Ascent Disposal completion[143](index=143&type=chunk) - Administrative expenses increased by **22.73%** year-on-year to **HKD 140.7 million**, mainly due to amortization and depreciation from the Vimab acquisition (approx. **HKD 9 million**) and share option expenses (approx. **HKD 3.5 million**)[143](index=143&type=chunk) - Finance costs increased by **46.10%** year-on-year to **HKD 22.5 million**, primarily due to an increase in the Group's overall borrowing scale[143](index=143&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20financial%20resources) Total assets stood at HKD 1.67 billion, with bank balances at HKD 57.7 million, while increased interest-bearing loans raised the gearing ratio to 116.99%, and negotiations continue for a USD 6 million convertible bond repayment Financial Position Summary (HKD millions) | Indicator | September 30, 2019 | March 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | Approx. 1,669.7 million HKD | Approx. 1,817.0 million HKD | | **Bank Balances and Cash** | Approx. 57.7 million HKD | Approx. 38.7 million HKD | | **Total Interest-Bearing Loans** | Approx. 448.9 million HKD | Approx. 417.9 million HKD | | **Current Ratio** | Approx. 1.04 | Approx. 1.13 | | **Gearing Ratio** | Approx. 116.99% | Approx. 99.88% | - The increase in gearing ratio was primarily due to an increase in the Group's overall borrowings during the period[151](index=151&type=chunk)[154](index=154&type=chunk) - Approximately **USD 6 million** in principal and interest remains outstanding under the company's issued convertible bonds (now classified as other payables), with the company negotiating a settlement arrangement with creditor Sanlinshui[149](index=149&type=chunk)[150](index=150&type=chunk)[153](index=153&type=chunk) [Other Disclosures](index=28&type=section&id=Other%20Disclosures) This section details human resources, significant investments, contingent liabilities, and governance, including the decision not to declare an interim dividend, share option scheme, and compliance with corporate governance codes [Human Resources, Investments, and Liabilities](index=28&type=section&id=Human%20Resources%2C%20Investments%2C%20and%20Liabilities) The Group had 613 employees with HKD 98.1 million in staff costs, holds a 9.10% significant investment in Josab Water Solutions AB, and has HKD 47 million in contingent liabilities for performance bonds - As of September 30, 2019, the Group had **613 employees**, with total staff costs for the period approximately **HKD 98.1 million**[168](index=168&type=chunk) - The Group holds a significant investment of approximately **9.10%** of the issued share capital of Josab Water Solutions AB, a Swedish listed company[170](index=170&type=chunk) - The Group's contingent liabilities include approximately **HKD 47 million** in unfulfilled performance bonds provided for construction contracts[171](index=171&type=chunk) [Interim Dividend](index=29&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of any interim dividend for the period - The Directors do not recommend the payment of an interim dividend for the six months ended September 30, 2019[180](index=180&type=chunk) [Shareholder and Governance Information](index=29&type=section&id=Shareholder%20and%20Governance%20Information) This section details the share option scheme with 69.48 million unexercised options, discloses directors' and major shareholders' holdings including Chairman Zhu Yongjun's 14.36% interest, and confirms compliance with governance codes - As of September 30, 2019, a total of **69,484,000 share options** remained unexercised under the company's share option scheme[198](index=198&type=chunk) - Mr. Zhu Yongjun, Chairman of the Board, collectively holds **14.36%** interest in the company. Other major shareholders include Changwei Group holding **13.35%** and Simple Gain International Limited holding **6.98%**[207](index=207&type=chunk)[208](index=208&type=chunk)[226](index=226&type=chunk) - The company has adopted the standard code for securities transactions by directors and confirms all directors complied with it during the period. Additionally, the company believes it has complied with the provisions of the Corporate Governance Code[239](index=239&type=chunk)[249](index=249&type=chunk)[254](index=254&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=41&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss, financial position, cash flows, and their accompanying notes [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=41&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended September 30, 2019, the company recorded revenue of HKD 502.6 million and gross profit of HKD 117.1 million; total loss for the period was HKD 11.893 million, with loss attributable to owners of the company at HKD 5.476 million; basic and diluted loss per share were both HKD 0.96 cents Statement of Profit or Loss and Other Comprehensive Income (HKD thousands) | Item (HKD thousands) | H1 2019 | H1 2018 | | :--- | :--- | :--- | | **Revenue** | 502,552 | 510,986 | | **Gross Profit** | 117,138 | 90,375 | | **Net Other Income and Gains** | 47,348 | 22,203 | | **Administrative Expenses** | (140,665) | (114,370) | | **Finance Costs** | (22,491) | (15,448) | | **Loss Before Tax** | (17,967) | (23,242) | | **Loss for the Period** | (11,893) | (19,890) | | **Loss Attributable to Owners of the Company** | (5,476) | (17,576) | | **Loss Per Share (HK cents)** | (0.96) | (3.15) | [Unaudited Condensed Consolidated Statement of Financial Position](index=42&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of September 30, 2019, the Group's total assets were HKD 1.67 billion, and total liabilities were HKD 1.231 billion; net assets were HKD 438.3 million, a decrease from HKD 482.4 million as of March 31, 2019; non-current assets constituted a significant portion at HKD 1.104 billion Statement of Financial Position (HKD thousands) | Item (HKD thousands) | September 30, 2019 | March 31, 2019 | | :--- | :--- | :--- | | **Non-current Assets** | 1,104,407 | 1,189,844 | | **Current Assets** | 565,313 | 627,184 | | **Total Assets** | **1,669,720** | **1,817,028** | | **Current Liabilities** | 544,640 | 554,758 | | **Non-current Liabilities** | 686,758 | 779,861 | | **Total Liabilities** | **1,231,398** | **1,334,619** | | **Net Assets** | **438,322** | **482,409** | | **Equity Attributable to Owners of the Company** | 383,712 | 418,399 | | **Non-controlling Interests** | 54,610 | 64,010 | | **Total Equity** | **438,322** | **482,409** | [Unaudited Condensed Consolidated Statement of Cash Flows](index=45&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended September 30, 2019, the Group generated net cash of HKD 80.456 million from operating activities, compared to a net outflow in the prior period; investing and financing activities recorded net cash outflows of HKD 3.681 million and HKD 55.697 million, respectively; cash and cash equivalents at period-end were HKD 57.67 million Statement of Cash Flows (HKD thousands) | Item (HKD thousands) | H1 2019 | H1 2018 | | :--- | :--- | :--- | | **Net Cash Generated From Operating Activities** | 80,456 | (43,989) | | **Net Cash (Used In)/Generated From Investing Activities** | (3,681) | 82,216 | | **Net Cash Used In Financing Activities** | (55,697) | (23,953) | | **Net Increase in Cash and Cash Equivalents** | 21,078 | 14,274 | | **Cash and Cash Equivalents at Beginning of Period** | 38,745 | 61,726 | | **Cash and Cash Equivalents at End of Period** | 57,670 | 74,452 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=46&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, including HKFRS 16 adoption, and provide breakdowns of revenue, segment information, and significant items like disposal gains and reclassified convertible bonds [3. Principal Accounting Policies](index=47&type=section&id=3.%20Principal%20Accounting%20Policies) This period's financial statements adopted several new and revised Hong Kong Financial Reporting Standards, with HKFRS 16 'Leases' having the most significant impact; the Group applied the modified retrospective approach from April 1, 2019, recognizing right-of-use assets and lease liabilities, but not restating comparative period data; this directly impacted the statement of financial position structure - The Group first adopted HKFRS 16 'Leases' from **April 1, 2019**, applying the modified retrospective approach without restating 2018 comparative information[280](index=280&type=chunk)[287](index=287&type=chunk) - Adoption of HKFRS 16 resulted in the recognition of **HKD 14.387 million** in right-of-use assets (included in property, plant and equipment) and **HKD 21.675 million** in lease liabilities as of April 1, 2019, with an adjustment of **HKD 1.095 million** to opening equity[302](index=302&type=chunk)[304](index=304&type=chunk)[308](index=308&type=chunk) [4. Revenue and Segment Information](index=54&type=section&id=4.%20Revenue%20and%20Segmental%20Information) Group total revenue was HKD 502.6 million, with construction engineering contributing HKD 348.6 million, industrial fluid systems services HKD 110.0 million, and environmental protection HKD 43.9 million; segment results show construction engineering and industrial fluid systems were profitable, while environmental business incurred a loss Revenue and Segment Results (HKD thousands) | Segment | Revenue (HKD thousands) | Segment Results (HKD thousands) | | :--- | :--- | :--- | | **Construction Engineering** | 348,649 | 13,720 | | **Environmental Protection** | 43,921 | (28,153) | | **Industrial Fluid Systems Services** | 109,982 | 525 | | **Total** | **502,552** | **(13,908)** | [Key Financial Statement Items](index=57&type=section&id=Key%20Financial%20Statement%20Items) The notes detail key financial items, including a significant HKD 32.65 million gain from the Stand Ascent disposal, an increase in trade receivables over 90 days, and the reclassification of a USD 6 million convertible bond to other payables due to share suspension - The 'Other' category under 'Other income and gains' includes a significant gain of approximately **HKD 32.648 million** from the Stand Ascent Disposal[356](index=356&type=chunk)[357](index=357&type=chunk) - Due to the suspension of the company's shares for over 30 business days, the originally issued convertible bonds were reclassified as 'other payables', with outstanding principal, interest, and related fees of approximately **USD 6 million** (approx. **HKD 49.1 million**) at period-end[395](index=395&type=chunk)[396](index=396&type=chunk)

NIT 創業集團(控股)有限公司 NEW CONCEPTS HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) Stock Code 股份代號：2221 ANNUAL REPORT # 2019 CONTENTS 目錄 | --- | --- | --- | |-------------------------------------------------------------------------------------------|-------|------------------------------------------------------| | | | | | Corporate Information 公司資料 | 2 | Consolidated Statement of Financial Position | | Chairman's Statement 主席報告 | 4 | 綜合財務狀況表 Consolidat ...