Share Option Scheme - As of June 30, 2023, the total number of shares available for grant under the 2013 Share Option Scheme was 48,916,830 shares, which has now been reduced to nil shares following the expiration of the scheme[20]. - The Group currently has no plans to adopt any new Share Option Scheme following the termination of the 2013 Share Option Scheme[20]. - No share options were granted under the 2013 Share Option Scheme since its adoption[21]. - The Group had no other share scheme in force at the end of the reporting period[20]. Financial Performance - For the six months ended June 30, 2023, the Group recorded revenue of approximately HKD 76,144,000, a decrease of about 87% compared to HKD 573,831,000 for the same period in 2022[58]. - Gross profit for the same period was approximately HKD 673,000, down 96% from HKD 17,624,000 in 2022[58]. - Net profit for the period was approximately HKD 8,330,000, down from HKD 18,079,000 in 2022[58]. - The Group's profit for the Period was approximately HK$8,330,000, a decrease of approximately 54% compared to HK$18,079,000 in the 2022 Period[115]. - Profit before taxation was HK$8,330,000, a decrease of 63.24% from HK$22,602,000 in the previous year[168]. - Profit attributable to owners of the Company for the period was HK$8,330,000, compared to HK$18,079,000 in 2022, indicating a decline of 54.00%[168]. - Basic and diluted earnings per share were HK1.70 cents, down from HK3.70 cents in the same period last year[168]. Sales and Production - The Group completed sales of approximately 200,000 pounds of natural uranium products, significantly lower than approximately 1,600,000 pounds in the previous year[58]. - Sales volume of natural uranium products decreased to approximately 0.2 million pounds in the current period from approximately 1.6 million pounds in the 2022 Period[82]. - The Group has contracted approximately 0.8 million pounds of natural uranium products, expected to generate approximately 2% commission income upon completion in the second half of 2023[90]. - The Group has a pending contract for approximately 800,000 pounds of natural uranium products, expected to generate about 2% commission income upon completion in the second half of 2023[122]. Financial Position - Current assets decreased by approximately 5% to HK$197,993,000, primarily due to reduced cash and cash equivalents[95]. - Non-current assets increased by approximately 1% to HK$441,172,000, attributed to the share of results from an associate[95]. - Total shareholders' funds decreased from approximately HK$391,608,000 to HK$378,923,000, with a gearing ratio increase to approximately 0.41[96]. - Current liabilities as of June 30, 2023, amounted to approximately HK$78,242,000, representing a 7% increase from approximately HK$73,318,000 as of December 31, 2022[126]. - The Group's net cash outflow was approximately HK$53,993,000 during the period, compared to HK$21,005,000 in the previous period[95]. - The Group's total comprehensive expense for the Period was approximately HK$12,685,000, compared to an income of approximately HK$9,830,000 in the 2022 Period[116]. Market Conditions - The spot price of natural uranium fluctuated between USD 48 and USD 57.75 per pound during the review period, with a closing price of approximately USD 56 per pound[59]. - Long-term natural uranium contract prices increased from USD 51 per pound to approximately USD 56 per pound by the end of the period[59]. Corporate Governance - The Company has established a Remuneration Committee to review the remuneration policy and structure for directors and senior management[165]. - The Nomination Committee has been formed to assess the structure, size, and composition of the Board, and to recommend changes as necessary[165]. - The Audit Committee consists of three independent non-executive Directors and one non-executive Director, ensuring independent communication with management and external auditors[146]. - The Company has complied with all relevant codes and standards regarding securities transactions by directors[145]. Investments and Acquisitions - The Group has not made any material acquisitions or disposals of subsidiaries during the period[97]. - The Group's significant investment in Somina, holding 37.2% of its equity, has been pledged to a bank for financing purposes[159]. - The Group has no significant investments or capital asset plans as of June 30, 2023[143]. - As of June 30, 2023, the Group did not have plans for material investments and capital assets[161]. Shareholder Matters - The Group did not recommend the payment of an interim dividend for the Period, consistent with the 2022 Period[107]. - The Board expresses appreciation to shareholders, management, and staff for their dedication and support[149].

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 76,144,000, a decrease from HKD 573,831,000 in the same period of 2022[4] - Gross profit for the period was HKD 673,000, significantly down from HKD 17,624,000 year-on-year[4] - Net profit attributable to owners for the period was HKD 8,330,000, compared to HKD 18,079,000 in the previous year, reflecting a decline of 54%[4] - The company reported a total comprehensive loss of HKD 12,685,000 for the period, compared to a comprehensive income of HKD 9,830,000 in the previous year[4] - The company's basic and diluted earnings per share for the period were HKD 1.70 cents, down from HKD 3.70 cents in the same period last year[4] - The group achieved sales of approximately 200,000 pounds of natural uranium products, a significant decrease from approximately 1,600,000 pounds in the same period of 2022[47] - Revenue from uranium trading was approximately HKD 76,144,000, down about 87% compared to HKD 573,831,000 in 2022[48][49] - The gross profit for the period was approximately HKD 673,000, a decrease of about 96% from HKD 17,624,000 in the previous year[49] - Other income and gains amounted to approximately HKD 2,738,000, up about 109% from HKD 1,306,000 in the same period of 2022, primarily due to interest income[74] - Financial expenses increased by approximately 124% to HKD 6,429,000 from HKD 2,871,000 in the same period of 2022, mainly due to rising market interest rates[76] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 560,923,000, a decrease from HKD 573,608,000 at the end of 2022[6] - Cash and cash equivalents decreased to HKD 74,362,000 from HKD 130,732,000 at the end of 2022[6] - The company’s net asset value as of June 30, 2023, was HKD 378,923,000, down from HKD 391,608,000 at the end of 2022[7] - The total liabilities as of June 30, 2023, were HKD 260,242,000, compared to HKD 255,318,000 as of December 31, 2022[36] - Current liabilities increased by approximately 7% to HKD 78,242,000 from HKD 73,318,000 at the end of 2022, primarily due to rising interest expenses[60] - Current assets decreased by about 5% to approximately HKD 197,993,000 from HKD 208,309,000 as of December 31, 2022[85] - The total shareholder equity decreased from approximately HKD 391.61 million as of December 31, 2022, to approximately HKD 378.92 million as of June 30, 2023, primarily due to total comprehensive expenses during the review period[113] - The debt-to-asset ratio increased to approximately 0.41 as of June 30, 2023, compared to approximately 0.40 as of December 31, 2022[113] Corporate Actions and Governance - The company did not declare or propose any dividends for the interim period[23] - The board of directors did not declare an interim dividend during the review period[117] - The audit committee reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2023, and found them to be prepared in accordance with applicable accounting standards[120] - The company has established a nomination committee to review the board's structure and composition at least annually[110] Strategic Initiatives - The company is evaluating the impact of a capital injection in its associate, China Nuclear Finance Leasing Co., Ltd., which will reduce its stake from approximately 11.36% to about 7.55%[44] - CNNC Leasing's registered capital will increase from approximately RMB 3.24 billion to approximately RMB 4.88 billion through a capital injection by existing shareholders, with the company opting not to participate in this capital injection[116] - The company's equity interest in CNNC Leasing is expected to decrease from approximately 11.36% to approximately 7.55% following the capital injection[102] - The group aims to leverage its position within the China Uranium Group to expand and diversify its business, focusing on projects with reasonable returns[88] - The group continues to actively seek quality uranium resources and trade opportunities to enhance its uranium trading business[80] Operational Updates - The company reported a net exchange gain of HKD 1,239,000, up from HKD 624,000 in the prior period[4] - The company reported an increase in exploration and sales mineral properties to HKD 6,937,000 for the six months ended June 30, 2023, from HKD 4,456,000 in the same period of 2022[44] - Unallocated corporate assets decreased to HKD 58,055,000 as of June 30, 2023, from HKD 69,526,000 as of December 31, 2022[44] - The company’s unallocated corporate liabilities increased to HKD 231,322,000 as of June 30, 2023, from HKD 228,410,000 as of December 31, 2022[36] - The group will act as a preferred supplier for short-term natural uranium product needs and as the exclusive regional supplier for medium to long-term needs for China Uranium Corporation[54] - The group is in discussions with Mongolian authorities regarding the exploration license expiration for its uranium resource projects, with no severe adverse effects reported[56] - The spot price of natural uranium fluctuated between USD 48 and USD 57.75 per pound during the period, with a closing price of approximately USD 56 per pound[47] - The cash outflow for the period was approximately HKD 53,993,000, compared to HKD 21,005,000 in the same period of 2022[58] - Non-current assets as of June 30, 2023, were approximately HKD 441,172,000, an increase of about 1% from HKD 438,617,000 at the end of 2022[59] - The basic earnings per share remained consistent at 489,168,308 shares for both periods[24] - There were no significant acquisitions or disposals of subsidiaries and associates during the review period[114] - The capital structure has not undergone significant changes since December 31, 2022[104] - The company does not currently have a foreign currency hedging policy but will continue to monitor foreign exchange risks and consider hedging when necessary[103] - The group employed 23 full-time staff as of June 30, 2023, down from 26 as of June 30, 2022[88]

Environmental Performance - Total greenhouse gas emissions for 2022 were approximately 11.05 tonnes of CO2 equivalent, down from 11.78 tonnes in 2021, representing a reduction of about 6.2%[6] - Electricity consumption decreased to approximately 14,068 kWh in 2022 from 15,580 kWh in 2021, resulting in a reduction of indirect emissions from 10.94 tonnes to 9.88 tonnes of CO2 equivalent, a decrease of about 9.7%[6] - The emission intensity remained stable at approximately 0.03 tCO2e/sq.m for both 2022 and 2021, indicating consistent operational efficiency[6] - The Group's emissions were primarily from electricity and paper consumption, with no involvement in production-related air, water, and land pollution[26] - The Group is committed to environmental sustainability and aims to adopt best practices to minimize resource consumption and improve environmental performance[188] Operational Expansion - The total floor area coverage increased to 355 sq.m in 2022 from 333 sq.m in 2021, reflecting an expansion in operational space[27] - There were no significant acquisitions or disposals of subsidiaries during the year, maintaining the current capital structure[20] - The Group's operations are primarily based in Hong Kong, mainland China, and Mongolia, with no foreign currency hedging policy in place to manage exchange rate risks[19] Financial Performance - The Group generated revenue from uranium trading of approximately HK$891,506,000 for the Year, a significant increase of about 217% compared to approximately HK$280,639,000 in 2021, corresponding to sales of approximately 2.53 million pounds of natural uranium[54] - The gross profit for the Year was approximately HK$102,792,000, representing a 399% increase from approximately HK$20,610,000 in 2021[54] - The net profit for the Year was approximately HK$80,843,000, a substantial increase from approximately HK$2,389,000 in 2021, driven by improved trading operations and reduced finance costs[54] - The total comprehensive income attributable to owners of the Company increased to approximately HK$56,953,000, compared to approximately HK$25,588,000 in 2021[54] - The Group's finance costs decreased to approximately HK$8,602,000 from approximately HK$9,834,000 in 2021, contributing to the improved profit position[54] - The Group reported a revenue increase of approximately 223% to approximately HK$905,730,000 for the Year, compared to approximately HK$280,639,000 in 2021[59] - Cost of sales also increased by approximately 209% to approximately HK$802,938,000, resulting in a gross profit of approximately HK$102,792,000, up 399% from approximately HK$20,610,000 in 2021[59][79] - The Group recorded a net income of approximately HK$80,843,000, significantly up from HK$2,389,000 in 2021[126] - Total comprehensive income for the year amounted to approximately HK$56,953,000, compared to HK$25,588,000 in 2021[129] Trading Activities - The Group facilitated trades of 1.80 million pounds of natural uranium for Rössing uranium mine, generating commission income of approximately HK$14,224,000 in the four-month period after the approval of the framework agreement[54] - The uranium spot market experienced a bull market, with prices rising to historical highs of over USD 63 per pound, before settling at approximately USD 48 per pound at the end of the Year[54] - The Group plans to continue focusing on the development of uranium trading and actively seek high-quality uranium resource projects, particularly in-production projects[46] - The Group aims to enhance its strategic position as the procurement arm of CNUC Group in the international uranium market and will participate in international market bidding to expand its business scale[47] - The Group's trading volume saw substantial increases during the Year, reflecting the overall improvement in the natural uranium market performance[57] Administrative and Financial Management - Administrative expenses increased by approximately 19% to approximately HK$31,190,000 due to additional professional fees and increased staff costs[63] - The Group's cash on hand and bank balances increased from approximately HK$120,625,000 as of December 31, 2021, to approximately HK$130,732,000 as of December 31, 2022[139] - The Group's net current assets were approximately HK$134,991,000 as of December 31, 2022, compared to approximately HK$96,234,000 in 2021[139] - Total shareholders' funds increased from approximately HK$334,655,000 as at 31st December, 2021 to approximately HK$391,608,000 as at 31st December, 2022, representing an increase of about 17%[140] - The gearing ratio decreased to 0.40 as at 31st December, 2022, down from 0.44 as at 31st December, 2021, indicating improved financial stability[140] Corporate Governance - The Audit Committee held three meetings during the Year and reviewed the Group's interim and annual reports, ensuring compliance with accounting principles[159] - The Remuneration Committee is responsible for making recommendations on the remuneration policy for directors and senior management, considering market conditions and Group performance[161] - The Nomination Committee consists of three independent non-executive directors and is chaired by the Chairman of the Board[200] - The Company has continued to fulfill its disclosure obligations as per Rule 13.18 of the Listing Rules[1] Shareholder Information - As of December 31, 2022, CNNC Overseas Limited and its subsidiaries hold a corporate interest of 326,372,273 shares, representing 66.72% of the issued share capital of the Company[172] - The largest supplier and customer each accounted for approximately 38% of the Group's purchases and sales, respectively[185] - The five largest suppliers and customers collectively accounted for approximately 100% of the Group's purchases and sales[186] - As of December 31, 2022, no other person had an interest or short position in the shares of the Company that required disclosure[175] Compliance and Risk Management - The Company complies with relevant laws and regulations in the Cayman Islands, Hong Kong, Mongolia, and the PRC[189] - The Group did not hold any significant investment in equity interest in any other company during the Year[154] - The Company has taken out and maintained directors' liability insurance throughout the year[1] - The Trade Loan interest rate is set at LIBOR + 1.60% per annum, which is consistent with similar bank facilities obtained in recent years[149] - The Trade Loan is intended to support the Group's uranium trading business and is fully exempt from all disclosure and approval requirements under Chapter 14A of the Listing Rules[151]

Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 905,730,000, a significant increase from HKD 280,639,000 in 2021, representing a growth of approximately 223%[11] - The gross profit for the same period was HKD 102,792,000, compared to HKD 20,610,000 in the previous year, indicating a substantial increase in profitability[11] - The net profit from continuing operations for the year was HKD 80,843,000, a dramatic rise from HKD 622,000 in 2021[11] - The company reported a total comprehensive income attributable to owners of the company of HKD 56,953,000, compared to HKD 25,588,000 in 2021[5] - The revenue from uranium trading of approximately HKD 891,506,000, equivalent to sales of about 2,530,000 pounds of uranium, marking a significant increase compared to the previous year's revenue of HKD 280,639,000[28] - The revenue and cost of sales from continuing operations in uranium trading were approximately HKD 905,730,000 and HKD 802,938,000 respectively, representing an increase of about 223% and 209% compared to the previous year[31] - The net income for the year was approximately HKD 80,843,000, compared to HKD 2,389,000 in the previous year, indicating a significant improvement in profitability[42] Assets and Liabilities - The total assets less current liabilities as of December 31, 2022, amounted to HKD 573,608,000, up from HKD 552,655,000 in 2021[3] - The company's cash and cash equivalents increased to HKD 130,732,000 from HKD 120,625,000 year-over-year[2] - The company's non-current liabilities decreased to HKD 182,000,000 from HKD 218,000,000, reflecting improved financial stability[3] - The group's net current assets were approximately HKD 134,991,000 as of December 31, 2022, compared to HKD 96,234,000 in 2021, while current liabilities rose to HKD 73,318,000 from HKD 40,016,000[46] - Total shareholder equity increased from approximately HKD 334,655,000 on December 31, 2021, to approximately HKD 391,608,000 on December 31, 2022, primarily due to total comprehensive income for the year[64] - The debt-to-asset ratio decreased to 0.40 as of December 31, 2022, down from 0.44 in the previous year[64] Operational Highlights - The company facilitated a transaction of 1,800,000 pounds of uranium for Rössing, generating commission income of approximately HKD 14,224,000[31] - The company suspended its supply chain business in 2021, with the last sale transaction completed at the end of 2020[108] - The company has entered into a framework agreement with China Uranium Industry Group to become its preferred supplier for short-term uranium product needs and exclusive regional distributor for long-term needs[143] - The framework agreement is expected to enhance the company's uranium trading business and expand its market coverage in China and globally[144] - The group aims to expand its business scale by actively participating in international market tenders and exploring various financing channels to support uranium trade expansion[147] - The group is exploring trade opportunities with new business partners to broaden its partnership base and strengthen its uranium trading business[147] Employee and Operational Costs - As of December 31, 2022, the group employed 23 full-time staff, an increase from 22 in 2021, with total employee costs amounting to HKD 18,691,000, up from HKD 16,260,000 in 2021[44] - The total employee costs for the year ended December 31, 2022, were HKD 18,691,000, up from HKD 16,260,000 in 2021, reflecting an increase in labor expenses[98] - Administrative expenses amounted to approximately HKD 31,190,000, a 19% increase from HKD 26,255,000 in 2021, due to additional professional fees and increased employee costs[145] Market and Trading Conditions - The spot price of uranium fluctuated between USD 45 and USD 55 per pound during the second half of the year, closing at approximately USD 48 per pound[27] - The long-term uranium contract price increased from approximately USD 40 per pound at the beginning of the year to USD 51 per pound by year-end[27] - The overall uranium trading activities increased, with sales and distribution expenses rising approximately 149% to about HKD 1,593,000 compared to HKD 639,000 in 2021[145] Taxation and Financial Management - The total tax expense for the year included HKD 4,624,000 in Hong Kong profits tax and HKD 232,000 in China corporate income tax[103] - The tax rate for the company's Chinese subsidiaries is set at 25% as per the Corporate Income Tax Law of the People's Republic of China[106] - The company incurred an income tax expense of approximately HKD 7,247,000, an increase from HKD 2,457,000 in the previous year, due to taxable profits and withholding tax on dividends received[141] - The company generated bank interest income of HKD 1,541,000 in 2022, compared to HKD 825,000 in 2021, indicating improved financial management[98] Foreign Exchange and Risks - The company faced a net foreign exchange loss of approximately HKD 2,339,000 due to the depreciation of the RMB against the HKD[32] - The company reported a net foreign exchange loss of HKD 2,339,000 in 2022, compared to no loss in 2021, highlighting potential currency risk exposure[98] Future Outlook - The group plans to continue investing resources in uranium product trading and actively seek quality uranium resource projects, focusing on production projects to leverage the parent company's strengths in the nuclear energy sector[49] - The group will continue discussions with Mongolian authorities regarding the exploration license expiration for its uranium resource projects in Mongolia, despite slow project progress due to low natural uranium market prices[50] - The group will continue to explore potential investment opportunities in uranium resources, considering its financial health and global supply-demand dynamics[148]

Financial Performance - For the six months ended June 30, 2022, the Group recorded a revenue of approximately HK$573,831,000, representing a significant increase of approximately 507% compared to HK$94,591,000 in the same period of 2021[7]. - Gross profit for the same period was approximately HK$17,624,000, reflecting a substantial increase of approximately 978% from HK$1,635,000 in the prior year[7]. - The Group achieved a net profit of approximately HK$18,079,000, compared to a net loss of approximately HK$157,000 in the same period of 2021[7]. - Profit before taxation for the six months ended June 30, 2022, was HK$22,602,000, a notable rise from HK$1,338,000 in the previous year[87]. - Total comprehensive income for the period was approximately HK$9,830,000, compared to approximately HK$7,970,000 in the same period of 2021, reflecting an increase of about 23%[33]. - Basic and diluted earnings per share for the period were HK3.70 cents, a recovery from a loss of HK(0.03) cent in the previous year[87]. Cost Management - Finance costs decreased to approximately HK$2,871,000, down from approximately HK$5,361,000 in the same period of 2021[7]. - Selling and distributing expenses decreased by approximately 36% to approximately HK$544,000, primarily due to the reallocation of costs from the discontinued supply chain business[19]. - "Sales and distribution expenses" decreased by approximately 36% to about HK$544,000, compared to approximately HK$850,000 in the same period of 2021[23]. - "Administrative expenses" increased by approximately 18% to about HK$12,883,000, up from approximately HK$10,901,000 in the same period of 2021, due to additional professional fees incurred[26]. - "Finance costs" decreased by approximately 46% to about HK$2,871,000, compared to approximately HK$5,361,000 in the same period of 2021, due to repayments of bank borrowings[28]. Business Strategy - The Group has ceased its electronic products business since March 2020 to focus on uranium trading, following the evaluation of financial and inventory risks[8]. - The Group is actively seeking high-quality uranium resource projects to complement the development of its parent group[8]. - The Group plans to focus on the development of uranium products trading and actively seek high-quality uranium resources projects to complement its parent group's development[33]. - The Group has entered into a framework agreement to act as the prioritized supplier of natural uranium products for China National Uranium Corporation, enhancing its market position[33]. Cash Flow and Assets - The Group recorded a net cash inflow of approximately HK$21,005,000 during the Period, compared to a net cash outflow of approximately HK$28,358,000 in the 2021 Period[44]. - The Group's cash on hand and bank balances increased from approximately HK$120,646,000 as at 31st December, 2021 to approximately HK$137,704,000 as at 30th June, 2022[44]. - Total shareholders' funds increased from approximately HK$311,798,000 as at 31st December, 2021 to approximately HK$345,249,000 as at 30th June, 2022[44]. - The Group's financial position remained healthy despite the challenges faced by its associate[44]. Taxation and Liabilities - "Income tax expense" increased to approximately HK$4,523,000 from approximately HK$1,495,000 in the same period of 2021, primarily due to provisions for PRC withholding tax[29]. - The income tax payable surged to HK$5,620,000 from HK$884,000, representing a significant increase of approximately 535.5%[90]. - Contract liabilities increased dramatically to HK$200,304,000 from HK$14,186,000, reflecting a growth of approximately 1,313.5%[90]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the period, despite being unable to issue audited results for 2020 and 2021[58]. - An Audit Committee has been established to oversee the financial reporting process and internal controls, comprising three Independent Non-executive Directors and one Non-executive Director[64]. - The company has established a Remuneration Committee to determine the remuneration of Directors, consisting of three Independent Non-executive Directors and one Executive Director[67]. - A Nomination Committee has been formed to review the Board structure and identify qualified individuals for Board membership[67]. Trading and Reporting - The company is in the process of resuming trading in its shares, with a review substantially completed as of July 28, 2022[70]. - The interim report for the six months ended June 30, 2022, will be published on the Stock Exchange's website and sent to shareholders[72]. - The Company plans to publish audited results and annual reports for 2020 and 2021 as soon as practicable, with the timeframe subject to further assessment by the Board[80]. - The Company will provide quarterly updates on its development in accordance with Rule 13.24A of the Listing Rules[81].

Financial Performance - The Group reported a significant impairment loss of approximately HK$52,409,000 due to defects in certain electronics components inventory in the supply chain business[14]. - The Group focused on trading mineral properties during the year and reported the discontinuation of its supply chain business, with all trade receivables received in full[16]. - The auditor issued a qualified opinion on the Group's consolidated financial statements for the year, unable to determine the accuracy of profit from discontinued operations[22]. - The Group's financial performance for the year ended December 31, 2021, was presented in the annual results, reflecting the challenges faced in the previous year[10]. - The last transactions of the discontinued supply chain business were completed in 2020, with no further operations reported in 2021[19]. - The Group recorded revenue from trading of natural uranium of approximately HK$280,639,000 for the Year, a decrease of approximately 58% compared to HK$662,994,000 in 2020[29]. - Gross profit increased by 58% to approximately HK$20,610,000, up from approximately HK$13,013,000 in 2020[37]. - The decrease in revenue was attributed to a depressed uranium market and negative impacts from share trading suspension affecting external financial resources[29]. - The share of results from associates increased to approximately HK$15,065,000, compared to a loss of approximately HK$4,140,000 in 2020[37]. - Finance costs were reduced to approximately HK$9,834,000 from approximately HK$14,896,000 in 2020[37]. - The Group reported a net profit from continuing operations of approximately HK$622,000, recovering from a net loss of approximately HK$9,591,000 in 2020[37]. - The discontinued operation of the supply chain business recorded a segment profit of HK$1,767,000, compared to a net loss of HK$36,506,000 in 2020[37]. - The Group achieved a net profit of approximately HK$2,389,000, reversing a net loss of approximately HK$46,097,000 in the previous year[48]. - The share of profit from an associate was approximately HK$15,065,000, a significant increase of approximately 464% from a loss of HK$4,140,000 in the previous year[51]. - Other income and gains increased to approximately HK$3,240,000, up from approximately HK$2,120,000 in the previous year[49]. - Selling and distribution expenses decreased by approximately 56% to approximately HK$639,000, compared to HK$1,459,000 in the previous year[50]. - Administrative expenses rose by approximately 70% to approximately HK$26,255,000, up from approximately HK$15,463,000 in the previous year[50]. - The Group's total comprehensive income for the year amounted to approximately HK$25,588,000, a significant recovery from a total expense of approximately HK$25,855,000 in the previous year, marking a turnaround of over 200%[59][63]. - Net income for the year was approximately HK$2,389,000, compared to a net loss of approximately HK$46,097,000 in the previous year, indicating a substantial improvement in financial performance[59][63]. Business Strategy and Operations - The Group's interests in CNNC Leasing were reduced from approximately 18.45% to approximately 11.36% following a merger with China Nuclear E&C Financial Leasing Co., Ltd[21]. - The Company aims to diversify its business through the merger, leveraging the public utilities projects of CNECFL[21]. - The Group plans to continue developing its natural uranium trading business and seek high-quality uranium resource projects[30]. - The Group will communicate with the Mongolian Government to establish a joint venture for mining licenses related to its Mongolian Mining Project[31]. - The uranium market showed signs of recovery in the fourth quarter of 2021, which is expected to facilitate the Group's uranium trading business[30]. - A framework agreement was established with China National Uranium Corporation, designating the Group as the prioritized supplier for short-term and exclusive regional supplier for medium-to-long-term natural uranium products[61][65]. - The Group completed a delivery of approximately 533,000 pounds of uranium products to the CNUC Group under the framework agreement on July 1, 2022[68]. - The Group is engaged in discussions with the Mongolian Authority regarding the expiry issue of exploration licenses for its uranium resources project, which has not been materially affected by slow progress due to low market prices[69]. - The Group aims to leverage the strengths of its parent company in nuclear energy to explore investment opportunities in uranium resources, considering the overall market dynamics[70]. - The company delivered approximately 533,000 pounds of uranium products to China National Uranium Corporation on July 1, 2022[71]. Cash Flow and Financial Position - The group recorded a net cash outflow of approximately HK$23,847,000 for the year, compared to a net cash inflow of approximately HK$41,628,000 in the previous year[79]. - As of December 31, 2021, the group's cash on hand and bank balances decreased to approximately HK$120,625,000 from approximately HK$144,333,000 as of December 31, 2020[79]. - Total shareholders' funds increased from approximately HK$309,067,000 as of December 31, 2020, to approximately HK$334,655,000 as of December 31, 2021[85]. - The gearing ratio decreased to 0.44 as of December 31, 2021, down from 0.50 in the previous year due to the repayment of bank borrowings[85]. - The group had net current assets of approximately HK$96,234,000 as of December 31, 2021, compared to net current liabilities of approximately HK$124,700,000 as of December 31, 2020[84]. - The company entered into a loan agreement for a revolving loan of up to US$50,000,000 to support its uranium trading business[86]. - The interest rate for the Trade Loan is set at LIBOR + 1.60% per annum, similar to previous bank facilities obtained by the group[87]. - The total equity increased from approximately HKD 309,067,000 as of December 31, 2020, to approximately HKD 334,655,000 as of December 31, 2021, primarily due to total comprehensive income during the year[89]. - The debt-to-asset ratio decreased to 0.44 as of December 31, 2021, compared to 0.50 as of December 31, 2020, due to the repayment of bank loans during the year[89]. - As of December 31, 2021, the group had no trade receivables and trade payables, compared to approximately HKD 29,305,000 and zero, respectively, as of December 31, 2020[88]. - The group’s net current assets were approximately HKD 96,234,000 as of December 31, 2021, compared to net current liabilities of approximately HKD 124,700,000 as of December 31, 2020[88]. Environmental and Social Responsibility - Total greenhouse gas emissions for the Group were approximately 11.78 tonnes of CO2 equivalent in 2021, an increase from 10.85 tonnes in 2020[121]. - The Group's electricity consumption was approximately 15,580 kWh in 2021, contributing to about 10.94 tonnes of CO2 equivalent emissions, up from 10.09 tonnes in 2020[126]. - Paper usage for daily operations was approximately 0.2 tonnes in 2021, resulting in about 0.84 tonnes of CO2 equivalent emissions, compared to 0.76 tonnes in 2020[130]. - The Group aims to reduce energy consumption intensity by 2% by the year 2027, with the baseline year set as 2021[135]. - The total floor area coverage for the Group was 333 sq.m in 2021, consistent with 2020[118]. - The emission intensity for the Group was approximately 0.03 tCO2e/sq.m in both 2021 and 2020[125]. - The Group's operations did not significantly impact the environment and natural resources during the reporting period[136]. - Stakeholder engagement efforts included shareholders, employees, customers, suppliers, and the community to achieve sustainable development[116]. - The Group encourages a paperless office environment and promotes double-sided printing to reduce paper usage[130]. - Climate change awareness is increasing, and the Group regularly reviews policies and market trends to identify potential climate-related risks[137]. Human Resources and Employee Engagement - The Group had a total of 22 full-time employees as of December 31, 2021, a decrease from 23 in 2020[151]. - Employee distribution: 23% in Hong Kong, 59% in Mainland China, and 18% in Mongolia[152]. - Gender distribution: 41% male and 59% female employees in 2021, compared to 48% male and 52% female in 2020[152]. - Age distribution: 41% of employees are aged 26-35, while 27% are aged 36-45 in 2021[152]. - The Group has no significant climate-related risks impacting its operations during the year[143]. - The Group adheres to local labor laws and provides competitive remuneration packages, conducting annual reviews based on market standards[146]. - The Group contributes to various social insurance schemes for employees in Mainland China and the Mandatory Provident Fund for employees in Hong Kong[152]. - The Group emphasizes equal opportunity employment, ensuring no discrimination based on nationality, gender, age, race, religion, or disability[146]. - The employee turnover rate for the year is documented, indicating the Group's focus on employee retention[152]. - The employee turnover rate for males is 33%, while for females it is not specified[153]. - The turnover rate for employees under 35 years old is 11%, for those aged 35-50 years is 25%, and for those over 50 years old it is not specified[153]. - The turnover rate in Hong Kong is 20%, while in the PRC it is 15%[153]. - 55% of employees received training during the year, with 50% of both male and female employees trained[160]. - Senior management had a training rate of 42%, middle management 25%, and general staff 33%[160]. - The average training hours completed per employee is 31 hours, with males averaging 37 hours and females 26 hours[160]. - Senior management completed an average of 73 training hours, middle management 22 hours, and general staff 16 hours[160]. - The Group reported no work-related fatalities or lost days due to work injury during the year[157]. - The Group emphasizes compliance with relevant employment laws and reported no significant fines for non-compliance[155]. - The Group implemented various health and safety measures in response to the COVID-19 pandemic, including flexible working hours and remote access to systems[157]. Corporate Governance - The Company complied with the Code on Corporate Governance Practices throughout the Year[180]. - The Board of Directors consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[182]. - The Group's day-to-day management is delegated to senior management, with periodic reviews by the Board[181]. - The Group emphasizes the importance of employee communication and motivation through weekly meetings and group functions[164]. - The Board of Directors held four regular meetings during the year to discuss strategies and financial performance[188]. - The roles of the Chairman and the Chief Executive Officer are clearly segregated to enhance independence and accountability[189]. - The Company has received annual confirmations of independence from all Independent Non-Executive Directors, confirming their status[190]. - Directors are responsible for preparing the financial statements in accordance with statutory requirements and applicable accounting standards[195]. - The Company ensures timely publication of the Group's accounts, adhering to regulatory requirements[199]. - Each newly appointed Director undergoes comprehensive induction training to understand the Group's operations and governance obligations[197]. - Continuous professional development for Directors is arranged to keep them updated on statutory and regulatory developments[198]. - The Company has adopted a code of conduct for securities transactions by directors, ensuring compliance with the Model Code[191]. - The Board is composed of six members, including one Executive Director, two Non-Executive Directors, and three Independent Non-Executive Directors[185]. - The Company has established a robust internal control and risk management system overseen by the Board[185]. Compliance and Ethics - The Group has implemented a whistle-blowing policy for employees to report suspected bribery or corruption, ensuring integrity in business operations[173]. - There were no violations of anti-corruption laws during the Reporting Period, and the Group adheres to the Anti-Unfair Competition Law of the People's Republic of China[175]. - The Group actively participates in community charity, supporting the local community of Bayandun, Mongolia through donations and visits[177].

Financial Performance - The Group recorded revenue of approximately HK$1,662,470,000 for the Year, a decrease of approximately 48% compared to HK$3,176,849,000 in 2019[35]. - A net loss of approximately HK$46,097,000 was reported, significantly improved from a net loss of approximately HK$219,323,000 in the previous year[35]. - The gross loss for the year was approximately HK$13,722,000, a significant decrease of approximately 142% compared to a gross profit of approximately HK$32,641,000 in 2019[61]. - Other income and gains were approximately HK$4,665,000, down from approximately HK$7,656,000 in 2019, primarily from interest income related to overdue charges[63]. - The total comprehensive expense for the year amounted to approximately HK$25,855,000, significantly lower than the previous year's expense of approximately HK$231,772,000[69]. - The Group recorded a net cash inflow from operating activities of approximately HK$277.96 million for the year, compared to a net cash outflow of approximately HK$155.27 million in 2019[109]. - Cash and bank balances increased from approximately HK$100.54 million as of December 31, 2019, to approximately HK$144.33 million as of December 31, 2020[109]. - Total shareholders' funds decreased from approximately HK$334.92 million as of December 31, 2019, to approximately HK$309.07 million as of December 31, 2020, primarily due to comprehensive expenses during the year[110]. Business Operations - The Company resolved to cease the Electronic Products Business and wind down the Dispersed Metals Business by the end of 2020[16]. - The Electronic Products Business has completely ceased operations, with outstanding accounts receivable collected in the subsequent year of 2021[28]. - The Group focused on trading mineral properties during the year, with limited activities in the supply chain business[16]. - The Group plans to continue focusing on the development of its natural uranium trading business and actively seek high-quality uranium resource projects[36]. - The Group has ceased its Electronic Products Business and is winding down the Dispersed Metals Business due to financial and inventory risks[49]. - The Group plans to cease its Electronic Products Business and focus on uranium products trading, leveraging its competitive advantages in this area[75]. Impairment and Internal Controls - The Company reported an impairment loss of approximately HK$52,409,000 due to defects in certain electronic components inventory[13]. - The impairment loss was related to seven problematic purchases under the electronic products trading business, which was discontinued in 2020[16]. - Significant internal control weaknesses were identified in the Electronic Products Business, contributing to problematic purchases and impairment losses[19]. - The Company engaged independent experts to conduct a comprehensive review of impairment losses and internal controls[18]. - The findings indicated a lack of due care and skills in the Operation Team, leading to failures in risk management[19]. - The Company has rectified internal control deficiencies identified in the review and implemented measures to improve the internal control environment[28]. - The impairment loss from the problematic purchases was one-off in nature and did not materially affect the Company's financial position[29]. Governance and Compliance - The Company has complied with the Code on Corporate Governance Practices throughout the Year, adhering to the Listing Rules[188]. - The Board consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors, ensuring diverse professional backgrounds[191]. - The roles of the Chairman and the Chief Executive Officer are segregated to enhance independence and accountability within the Company[195]. - All independent non-executive directors have confirmed their independence in accordance with the Listing Rules, and the Company considers them all independent[196]. - The Company has adopted a code of conduct for securities transactions by directors that meets or exceeds the standards set out in the Model Code[197]. Environmental and Social Responsibility - The Group aims to reduce energy consumption intensity by 2% by the year 2027, with the target currently in progress[130]. - The Group encourages recycling activities and aims to minimize the use of natural resources, with no significant environmental impact reported[131]. - The Group actively participates in community charity, supporting the local community of Bayandun, Mongolia through donations and courtesy visits during the reporting period[187]. - The Group has made efforts to engage stakeholders, including shareholders, employees, and the community, to achieve sustainable development[115]. - The ESG Report highlights the Group's performance in environmental, social, and governance aspects, prepared in accordance with the Hong Kong Stock Exchange guidelines[115]. Employee and Training - The Group had a total of 23 full-time employees as of December 31, 2020, an increase from 22 in 2019[144]. - Employee distribution: 22% in Hong Kong, 61% in PRC, and 17% in Mongolia for 2020[145]. - Gender distribution: 48% male and 52% female employees in 2020, compared to 45% male and 55% female in 2019[145]. - A total of 888 hours of training courses were conducted in 2020, up from 575 hours in 2019[148]. - 70% of employees received training during the reporting period[151]. - Average training hours completed per employee: 43 hours[154]. - The Group strictly complies with labor protection laws and has implemented various health and safety measures due to the COVID-19 pandemic[148].

Financial Performance - The company reported unaudited revenue of HKD 280,639,000 for the year ended December 31, 2021, a decrease of 83.0% compared to HKD 1,648,233,000 in 2020[4] - Gross profit for the year was HKD 20,610,000, down 15.0% from HKD 24,450,000 in the previous year[4] - The company recorded a net profit of HKD 1,163,000 for the year, a significant improvement from a net loss of HKD 88,324,000 in 2020[4] - For the year ended December 31, 2021, total revenue was HKD 280,639,000, a significant decrease from HKD 1,648,233,000 in 2020, representing an 83% decline[15] - The company reported a basic and diluted earnings per share of HKD 0.24, compared to a loss per share of HKD 18.1 in the previous year[4] - The total comprehensive income for the year was approximately HKD 26,067,000, compared to a loss of HKD 61,331,000 in the previous year[45] Assets and Liabilities - Total assets minus current liabilities increased to HKD 529,798,000 from HKD 273,591,000 in the previous year, reflecting a growth of 93.8%[8] - The total liabilities decreased from HKD 322,031,000 in 2020 to HKD 272,450,000 in 2021, reflecting a reduction of about 15%[19] - The asset-liability ratio decreased to 0.47 from 0.54 due to a reduction in bank loans[55] - The company’s equity attributable to owners rose to HKD 311,798,000, up from HKD 273,591,000 in 2020, indicating a growth of 13.9%[8] Expenses - The company’s financial costs decreased to HKD 9,834,000 from HKD 16,691,000, a reduction of 41.5%[4] - The company’s administrative expenses increased to HKD 26,775,000 from HKD 21,644,000, reflecting a rise of 23.5%[4] - The total employee costs increased to HKD 16,423,000 in 2021 from HKD 11,456,000 in 2020, marking a rise of about 43%[24] - The income tax expense for the year was approximately HKD 2,368,000, down from HKD 3,860,000 in the previous year[44] - The company reported a significant decrease in "sales and distribution expenses," which fell by about 73% to approximately HKD 1,128,000 from HKD 4,221,000 in the previous year[42] Business Operations - The company ceased its supply chain business during the year due to adverse impacts from the pandemic, focusing instead on uranium products[37] - The group plans to focus on uranium product trading and actively seek quality uranium resource projects to align with the parent company's development in the nuclear energy sector[46] - The company is actively seeking high-quality uranium resource projects to supplement its development following the cessation of its supply chain business[37] - A framework agreement was established with China Uranium Corporation, making the group the preferred supplier for short-term uranium product needs and the exclusive regional supplier for medium to long-term needs[46] - The group aims to strengthen its uranium trading business and expand its market coverage in China and globally, enhancing long-term profitability[48] Cash Flow - The group recorded a net cash outflow of approximately HKD 25,451,000, primarily used for repaying bank loans, compared to HKD 273,943,000 in the previous year[54] Corporate Governance - The company has established a remuneration committee to determine the remuneration of directors, ensuring compliance with governance standards[70] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited annual performance along with accounting standards and treatment methods[69] Future Outlook - The company emphasizes that the unaudited consolidated performance for the year may change due to factors such as fair market valuation of non-current assets and potential adjustments based on the auditor's findings[64] - The company anticipates releasing the audited annual results around mid-May 2022, despite potential impacts from the ongoing pandemic[65] - The company will issue further announcements regarding significant differences between the audited and unaudited annual results once the audit process is completed[74] Other Information - The company did not declare any dividends for the year ending December 31, 2021, consistent with the previous year[29][36] - The company incurred a loss before tax of HKD 84,464,000 for the year ended December 31, 2020, compared to a profit before tax of HKD 3,531,000 in 2021[15] - The group employed 22 full-time employees as of December 31, 2021, with total employee costs amounting to approximately HKD 16,423,000[51] - The group has no significant foreign exchange risk as the currencies used for revenue and expenses remained stable during the year[58] - There were no major acquisitions or disposals of subsidiaries or associates during the year[56] - The company reported bank interest income of HKD 825,000 for the year ended December 31, 2021[15] - The exploration and sales segment's assets decreased slightly from HKD 14,729,000 in 2020 to HKD 13,830,000 in 2021[18] - The company’s inventory impairment loss was nil for the year, compared to HKD 52,409,000 in 2020, indicating a significant recovery[4] - The company’s unallocated corporate assets increased from HKD 31,708,000 in 2020 to HKD 76,281,000 in 2021, an increase of approximately 140%[18] - The segment profit for the mineral trading division was HKD 14,223,000, while the exploration and sales segment reported a loss of HKD 2,846,000[15] - Revenue from China (including Hong Kong) was HKD 53,580,000 in 2021, down from HKD 1,016,795,000 in 2020, indicating a substantial drop of approximately 95%[23] - The total assets of the mineral trading segment decreased from HKD 69,262,000 in 2020 to HKD 56,584,000 in 2021, a decline of approximately 18%[18] - The company’s share of profits from associates was approximately HKD 16,543,000, an increase of about 190% compared to a loss of HKD 18,446,000 in the previous year[42]

Financial Performance - For the six months ended June 30, 2021, the Group recorded a revenue of approximately HK$94,591,000, a significant decrease of approximately 92% compared to HK$1,224,963,000 in the corresponding period of 2020[7] - Gross profit for the same period was approximately HK$1,635,000, representing a decrease of approximately 88% from HK$13,250,000 in the 2020 period[7] - The net loss for the period decreased to approximately HK$157,000, compared to a loss of approximately HK$3,758,000 in the 2020 period, mainly due to an increase in the share of results of an associate by approximately HK$6,031,000[7] - Revenue for the six months ended June 30, 2021, was HK$94,591,000, a decrease of 92.3% compared to HK$1,224,963,000 for the same period in 2020[84] - Gross profit for the period was HK$1,635,000, down from HK$13,250,000, reflecting a significant decline in profitability[84] - Loss attributable to owners of the Company for the period was HK$157,000, compared to a loss of HK$3,758,000 in the previous year[84] - Total comprehensive income for the period attributable to owners of the Company was HK$7,970,000, a recovery from a comprehensive loss of HK$16,163,000 in the prior year[84] - Basic and diluted loss per share was HK(0.03) cent, compared to HK(0.77) cent for the same period last year[84] Expenses and Costs - Selling and distribution expenses decreased by approximately 60% to approximately HK$850,000 due to reduced revenue and transportation costs[17] - Administrative expenses increased by approximately 20% to approximately HK$10,901,000, attributed to additional professional fees related to inventory impairment reviews[18] - The cost of sales was approximately HK$92,956,000, also down about 92% from HK$1,211,713,000 in the same period of 2020[19] - Other income and gains increased by approximately 28% to approximately HK$1,591,000, primarily from interest income[16] Business Strategy and Operations - The Group has ceased all supply chain business activities and focused on uranium products trading, which was impacted by market fluctuations during the period[13] - The Group is actively seeking high-quality uranium resource projects to complement its parent group's development in the nuclear energy sector[8] - Discussions with the Mongolian Authority are ongoing to resolve issues related to the expiration of exploration licenses for uranium resources[8] - The Group plans to cease the supply chain business and focus on uranium products trading, seeking high-quality uranium resources projects[25] - The Group will continue discussions with the Mongolian Authority regarding the exploration licenses for its uranium resources project in Mongolia[25] Financial Position and Cash Flow - The Group recorded a net cash outflow of approximately HK$28,358,000 during the period, compared to approximately HK$31,337,000 in the same period of 2020, primarily due to the repayment of bank borrowings[29] - Cash on hand and bank balances decreased from approximately HK$144,354,000 as of December 31, 2020, to approximately HK$115,915,000 as of June 30, 2021[29] - Total shareholders' funds increased from approximately HK$273,591,000 as of December 31, 2020, to approximately HK$281,653,000 as of June 30, 2021, mainly due to total comprehensive income during the period[29] - The gearing ratio decreased to 0.50 as of June 30, 2021, down from 0.54 as of December 31, 2020, due to a decrease in bank borrowings[29] - The Group's financial position remained healthy despite the net cash outflow during the period[29] - The decrease in bank borrowings contributed to the improvement in the gearing ratio, indicating a stronger balance sheet[29] Corporate Governance and Compliance - The Company complied with the Corporate Governance Code throughout the Period, with some exceptions regarding the timing of audited results and annual report[40] - The Audit Committee has reviewed the Group's interim results and accounting principles for the Period[48] - The Board of Directors does not recommend the payment of an interim dividend for the Period, consistent with the previous year[38] Trading and Market Conditions - The trading of the company's shares has been suspended since April 30, 2021, due to failure to publish periodic financial information, and will remain suspended until further notice[74] - The company is taking steps to resolve issues causing the trading suspension and aims to comply with the Listing Rules to resume trading as soon as practicable[69] - The company will publish further announcements to keep shareholders and potential investors informed of its status and developments[75] Legal and Investigative Matters - The company reported approximately HK$17 million of impaired inventory related to suspected fraud involving a supplier[73] - The company will cooperate with the police in the investigation of the suspected fraud case[73] - The company is in discussions with the lender regarding a waiver for the loan covenant breach due to the reorganization[72] Shareholding and Ownership - As of the date of the report, the Company was owned approximately 66.72% by CNNC Overseas Uranium Holding Limited, a direct wholly owned subsidiary of CNNC[31] - The controlling shareholder, China National Uranium Co., Ltd, has reduced its shareholding in the company from 100% to approximately 79.46% following a recent reorganization[72]

Financial Performance - The Group recorded a slight increase in revenue of approximately 3%, amounting to HK$1,224,963,000 for the six months ended June 30, 2020, compared to HK$1,187,537,000 in the same period of 2019[7]. - A net loss of approximately HK$3,758,000 was reported for the Period, contrasting with a profit of approximately HK$2,283,000 in the 2019 Period[7]. - The Group's gross profit from trading of uranium and electronics decreased by approximately HK$1,822,000 compared to the previous year[7]. - The total comprehensive loss for the period was approximately HK$16,163,000, compared to a profit of approximately HK$19,949,000 in the previous period[17]. - Revenue for the six months ended June 30, 2020, was HK$1,224,963, an increase of 1.1% compared to HK$1,187,537 for the same period in 2019[78]. - Gross profit decreased to HK$13,250, down 12.1% from HK$15,072 in the previous year[78]. - The company reported a loss attributable to owners of HK$3,758 for the period, compared to a profit of HK$2,283 in the same period last year[78]. - Total comprehensive expense for the period was HK$16,163, a significant decline from a comprehensive income of HK$19,949 in the prior year[78]. Operational Developments - Despite the challenges posed by the COVID-19 pandemic, the Group managed to achieve a slight increase in turnover through its trading of mineral properties and supply chain management services[8]. - The Group is in discussions with the Mongolian Government to establish a joint venture for mining licenses related to its Mongolian Mining Project[9]. - The Appellate Court confirmed the Group's rights to reapply to the Court with new evidence regarding its mining project[9]. - The Group plans to gradually reduce the scale of its supply chain management business and focus more on uranium products trading, where it has established competitive advantages[18]. - The associate Société des Mines d'Azelik S.A. is facing severe cash flow problems and will not resume production in the short term[19]. - The Group aims to negotiate with the Mongolian Government for a joint venture, despite the slow progress not materially affecting the project due to low market prices of natural uranium[20]. Financial Position - The Group recorded a net cash outflow of approximately HK$31,337,000 during the period, compared to approximately HK$118,598,000 in the same period of 2019, primarily due to the repayment of bank borrowings[31]. - The Group's cash on hand and bank balances decreased from approximately HK$100,543,000 as of December 31, 2019, to approximately HK$67,991,000 as of June 30, 2020, after repayment of bank borrowings[31]. - Total shareholders' funds decreased from approximately HK$334,922,000 as of December 31, 2019, to approximately HK$318,759,000 as of June 30, 2020, mainly due to total comprehensive expenses during the period[34]. - The gearing ratio decreased to 0.61 as of June 30, 2020, down from 0.71 as of December 31, 2019, due to a reduction in bank borrowings[34]. - The Group had net current assets amounting to approximately HK$178,427,000 as of June 30, 2020, compared to net current liabilities of approximately HK$100,080,000 as of December 31, 2019[34]. - The Group's outstanding bank borrowings were approximately HK$266,099,000 as of June 30, 2020, reclassified as non-current liabilities[34]. Corporate Governance - The Board of Directors does not recommend the payment of an interim dividend for the period, consistent with the previous year[57]. - The Company did not purchase, sell, or redeem any of the Company's listed securities during the period[58]. - The Company had only two Independent Non-executive Directors as of December 31, 2019, which was below the minimum required under Rule 3.10(1) of the Listing Rules[61]. - Following the appointment of Mr. Chan Yee Hoi as an Independent Non-executive Director on March 9, 2020, the Company complied with the requirements under Rules 3.10(1), 3.10(2), 3.21, and 3.25 of the Listing Rules[61]. - The Audit Committee comprises three Independent Non-executive Directors and one Non-executive Director, with Mr. Chan Yee Hoi as the Chairman[65]. - The Remuneration Committee consists of three Independent Non-executive Directors, one Executive Director, and one Non-executive Director, with Mr. Cui Liguo as the Chairman[66]. - The Nomination Committee is made up of three Independent Non-executive Directors, one Executive Director, and one Non-executive Director, with Mr. Zhong Jie as the Chairman[67]. Taxation and Compliance - Hong Kong profits tax for the qualifying group entity is calculated at 8.25% on the first HK$2 million of estimated assessable profits and at 16.5% on profits above HK$2 million[4]. - The PRC Enterprise Income Tax rate for a PRC subsidiary is 25%, but a subsidiary qualified as operating in encouraged industries in Shenzhen is subject to a reduced rate of 15%[4]. - Income tax expenses for the six months ended June 30, 2020, included HK$414,000 for Hong Kong profits tax and HK$429,000 for PRC EIT, compared to HK$37,000 for PRC EIT in the same period of 2019[128]. Employee and Management - As of June 30, 2020, the Group employed 23 full-time employees, with remuneration packages based on individual performance and qualifications[26]. - The remuneration of directors and key management during the period was HK$2,189,000, an increase from HK$1,725,000 in the same period of 2019, reflecting a growth of approximately 27%[185]. - Short-term benefits for directors and key management were HK$2,102,000, up from HK$1,698,000 in the previous year, indicating a rise of about 24%[185]. - Post-employment benefits for directors and key management increased to HK$87,000 from HK$27,000, representing a significant increase of approximately 222%[185]. Legal and Regulatory Matters - The Group's subsidiary, Emeelt Mines LLC, filed an administrative lawsuit in January 2020 to confirm the non-performance of the Mongolian authorities regarding the granting of mining licenses[147]. - The Mongolian authorities suggested the Group apply for a court order to resume the application for mining licenses, as the relevant exploration licenses had expired[144]. - The establishment of the joint venture in Mongolia has been delayed multiple times due to changes in government officials, with the latest postponement noted in June 2019[142]. Market and Economic Environment - The Group operates in an economic environment predominantly influenced by entities controlled by the PRC government, which impacts its operations[187]. - The Group's transactions with PRC government-related entities are not considered significant to its operations, aside from those disclosed[188].