Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 93,742,000, a decrease of 38.0% compared to HKD 151,274,000 in the same period of 2023[2] - Graphene product revenue decreased by 36.7% to HKD 61,489,000 from HKD 97,103,000 year-on-year[2] - Adjusted segment EBITDA fell by 75.7% to HKD 4,682,000 from HKD 19,269,000 in the previous year[2] - The loss attributable to equity holders of the parent increased by 23.0% to HKD 54,096,000 compared to HKD 43,968,000 in the prior period[2] - Basic loss per share was HKD (6.00), a slight improvement of 1.0% from HKD (6.06) in the previous year[2] - The company reported a net loss of HKD 54,046,000 for the six months ended June 30, 2024, compared to a net loss of HKD 41,775,000 in the prior year, representing a 29.4% increase in losses[5] - The pre-tax loss for the six months ended June 30, 2024, was HKD 57,303,000, compared to a pre-tax loss of HKD 46,780,000 in 2023, indicating a worsening of 22.5%[23] - The company reported a pre-tax loss of HKD 7,374,000 for graphene products, compared to a loss of HKD 16,012,000 in the previous year, reflecting a 53.9% improvement[2] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 839,316,000, a decrease of 0.9% from HKD 847,343,000 at the end of December 2023[2] - Net assets decreased by 10.9% to HKD 329,247,000 from HKD 369,638,000[2] - Cash and bank balances decreased by 61.8% to HKD 10,391,000 from HKD 27,190,000[2] - The company's total liabilities increased to HKD 367,829,000 from HKD 320,168,000, an increase of 14.9%[6] - As of June 30, 2024, total assets amounted to HKD 839,316,000, with total liabilities at HKD 510,069,000[19] - The current ratio as of June 30, 2024, was approximately 0.73, down from 0.77 as of December 31, 2023[59] - The debt ratio was approximately 65.9% as of June 30, 2024, compared to 57.8% as of December 31, 2023[59] Revenue Breakdown - For the six months ended June 30, 2024, the total revenue from graphene products was HKD 61,489,000, while landscape design generated HKD 32,253,000, resulting in a combined revenue of HKD 93,742,000[17] - Revenue from landscape design services was HKD 32,253,000, a decline of 40.5% compared to HKD 54,171,000 in the previous year[15] - Revenue from the landscape design segment decreased to approximately HKD 32.2 million, a reduction of about 41% compared to HKD 54.2 million in the previous year, primarily due to a slowdown in the Chinese real estate market[48] Operational Focus and Strategy - The company continues to focus on enhancing its product offerings and exploring market expansion opportunities[3] - The company continues to focus on the development and processing of graphene products, particularly for electric vehicles and energy storage systems[9] - The company is exploring cost control measures to reduce operating costs[12] - The company plans to establish a deep processing production facility for graphite in Jixi, aiming for an annual output of 30,000 tons of high-purity spherical graphite and 10,000 tons of battery anode materials[65] - The company believes that electrification is a viable path for sustainable development, with an increasing demand for lithium-ion batteries, which will continue to use Stone Ink negative electrode materials[70] - A five-year plan has been established to invest in capacity expansion, research and development, and new battery systems[70] Employee and Management Information - As of June 30, 2024, the company had 249 employees, with compensation based on job nature, market trends, and individual performance, and provided various employee benefits including mandatory provident fund and medical insurance[68] - The company’s employee benefits expenses, including director and key management personnel remuneration, totaled HKD 41,289,000, down from HKD 47,451,000 in 2023, a decrease of 13.8%[28] Governance and Compliance - The company has complied with the corporate governance code as of June 30, 2024, and regularly reviews its governance practices[72] - The board of directors does not recommend the payment of an interim dividend for the six months ending June 30, 2024[77] Future Outlook and Risks - The company emphasizes that forward-looking statements may involve various risks and uncertainties that could significantly affect actual performance compared to expectations[80] - The company warns that reliance on forecasts based on various assumptions may not accurately reflect future market conditions[81] - The company recognizes the potential impact of government policies and regulations on its operations, particularly in relation to the U.S. and China[80] - There is an expectation of increased demand for the company's products and services, although market acceptance remains uncertain[80]

Share Award Plan - A total of 68,349,307 shares were granted under the 2023 Share Award Plan, with 15,094,797 shares awarded to directors and senior management[4]. - Of the shares awarded to directors and senior management, 10,554,797 shares were granted to 2 senior management members, with a vesting period not exceeding 12 months from the grant date[4]. - The 2023 Share Award Plan aims to attract and retain talent, providing shares as part of compensation to promote business development and growth[5]. - The share awards are designed to align with the company's goals of business growth and to enhance loyalty among key participants[5]. - The plan considers factors such as industry experience, tenure, and the potential contributions of participants to the company's business development[12]. - The total number of shares awarded reflects the company's commitment to incentivizing key personnel for sustained operational engagement and growth[5]. - The share awards are part of a broader strategy to ensure competitive compensation compared to industry peers[12]. - The 2023 share award plan details remain unchanged and should be read in conjunction with the annual report[14]. Compensation and Motivation - The compensation committee believes that the awarded shares will motivate recipients to contribute to the company's future development, despite the absence of performance targets and limited clawback mechanisms[7]. - The company emphasizes that the share awards do not carry performance targets but are subject to general clawback provisions in cases of misconduct[11]. - The compensation committee believes that granting share awards with a vesting period of less than twelve months is appropriate and necessary to attract and retain valuable talent[13]. - The company aims to provide competitive employment packages to enhance employee loyalty and commitment, thereby promoting business development and growth[13]. Strategic Focus - The company is focused on enhancing its operational capabilities through strategic talent acquisition and retention initiatives[5].

Financial Performance - Revenue for the year ended December 31, 2023, decreased by 14% to HKD 291.9 million compared to HKD 341.2 million in 2022[3] - Adjusted EBITDA fell by 55% to HKD 33.2 million, with a significant drop in the landscape design segment's EBITDA, which turned negative at HKD 6.8 million[3] - The company reported a pre-tax loss of HKD 114.3 million, a 59% increase from the previous year's loss of HKD 72.0 million[3] - The landscape design segment contributed approximately HKD 97 million in revenue, accounting for 33% of the group's total revenue, with a decline of 21% from HKD 122.9 million in the previous year[24] - The graphene segment generated revenue of approximately HKD 194.9 million, a decrease of about 9.2% compared to HKD 214.6 million in the previous year, leading to a total group revenue of approximately HKD 291.9 million, down 14.4% from HKD 341.2 million[28] - Gross profit decreased to approximately HKD 96.8 million, a decline of about 19.3% from approximately HKD 120.0 million in the previous year, with a gross margin of about 33.2%, down 2 percentage points from 35.2%[30] - The company reported a net loss attributable to shareholders of approximately HKD 113.2 million for the year, compared to a loss of HKD 69.7 million in the previous year[41] Assets and Liabilities - Total assets decreased by 5% to HKD 847.3 million, while cash and bank balances fell by 14% to HKD 27.2 million[3] - The total debt, including lease liabilities, decreased by 24% to HKD 233.2 million[3] - As of December 31, 2023, the company's current ratio is approximately 0.77, down from 0.82 on December 31, 2022[43] - The cash and bank balance as of December 31, 2023, is approximately 27.2 million HKD, compared to 31.5 million HKD as of December 31, 2022[43] - The company's capital debt ratio is approximately 63.08% as of December 31, 2023, a decrease from 76.9% on December 31, 2022[43] - The company has outstanding bonds of approximately 115.4 million HKD and issued bills of approximately 61.0 million HKD as of December 31, 2023[46] Business Operations and Strategy - The company plans to expand its lithium-ion battery anode material production capacity from 10,000 tons to 30,000 tons by 2024[14] - The company is focusing on producing anode materials using non-Chinese raw materials, validated by potential U.S. customers[14] - The landscape design business faced unprecedented challenges due to the deteriorating real estate market in China, but the company remains cautiously optimistic about recovery efforts[14] - The company plans to invest at least 200 million RMB in the first phase of a graphite deep processing production facility, with an annual output of 20,000 tons of high-purity spherical graphite[49] - The total estimated investment for the first phase of the lithium-ion battery anode material project in Laixi City is approximately 1 billion RMB, expected to be completed by September 2024[51] - The company anticipates increased demand for lithium-ion batteries, focusing on producing graphite anode materials to meet various battery chemistry needs, supported by a five-year plan for capacity expansion and R&D[67] Governance and Management - The company has a strong management team with diverse backgrounds in finance, law, and landscape architecture[84] - The board consists of eight members, including three executive directors, one non-executive director, and four independent non-executive directors, ensuring a diverse and qualified leadership team[131] - The board is responsible for developing the group's strategy and overseeing operational and financial performance, ensuring effective governance and risk management systems[132] - The company emphasizes the importance of training and continuous professional development for directors and senior management[137] - The company has established specific committees, including the audit committee, remuneration committee, and nomination committee, to enhance governance effectiveness[148] Risk Management - The company faces significant risks including market risks from COVID-19, which has severely impacted the global economy, and business risks related to innovation and product development[160] - The company has implemented various proactive measures and contingency plans to maintain business operations amid the ongoing COVID-19 pandemic[160] - Credit risk is a concern if customers fail to settle progress payments on time, potentially increasing the company's credit and liquidity risks[163] - The company closely monitors its liquidity and cash flow to meet all debt obligations[163] - The company has established internal procedures to monitor compliance with local and international laws and regulations, adapting to changing government policies[163] Shareholder Relations and Dividends - The board does not recommend the payment of a final dividend for the fiscal year ending December 31, 2023[189] - The company has adopted a dividend policy allowing shareholders to share in profits while retaining sufficient reserves for future development[112] - The board will consider various factors, including financial performance and capital expenditure requirements, when deciding on dividend distributions[114] Compliance and Internal Controls - The company has established a risk management and internal control system in compliance with the corporate governance code, with management responsible for its design and implementation[158] - The company has not identified any significant control deficiencies during the internal control review conducted in 2023[166] - The company emphasizes compliance with regulatory requirements and has adhered to relevant laws and regulations throughout the fiscal year ending December 31, 2023[183]

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 291,929 thousand, a decrease of 14% compared to HKD 341,241 thousand in 2022[31] - Adjusted EBITDA for 2023 was HKD 33,240 thousand, down 55% from HKD 74,463 thousand in the previous year[31] - The company reported a pre-tax loss of HKD 114,281 thousand, an increase of 59% from a loss of HKD 71,971 thousand in 2022[33] - The basic loss per share attributable to ordinary equity holders was HKD (14.8 cents), compared to HKD (12.2 cents) in the prior year, reflecting a 22% increase in loss per share[33] - Total assets decreased by 5% to HKD 847,343 thousand from HKD 894,676 thousand in 2022[31] - Cash and bank balances decreased by 14% to HKD 27,190 thousand from HKD 31,470 thousand in the previous year[31] - The company’s debt reduced by 25% to HKD 213,564 thousand from HKD 285,007 thousand in 2022[31] - The gross profit for 2023 was HKD 96,821 thousand, down from HKD 119,962 thousand in 2022[33] - The landscape design segment reported a significant decline in revenue, down 21% to HKD 97,000 thousand from HKD 122,856 thousand[31] - The graphene product segment also saw a revenue decrease of 9%, totaling HKD 194,929 thousand compared to HKD 214,614 thousand in the previous year[31] - The company recorded a loss attributable to equity holders of HKD 113,168,000 for the year ended December 31, 2023[71] - Current liabilities totaled HKD 320,168,000 as of December 31, 2023, compared to HKD 288,194,000 in 2022[68] - The company has a negative net current liabilities position of HKD 73,669,000 as of December 31, 2023[68] - For the fiscal year ending December 31, 2023, the loss attributable to ordinary equity holders of the parent was approximately HKD 113.2 million, compared to a loss of HKD 69.7 million for the fiscal year ending December 31, 2022, representing an increase in loss of about 62.5%[106] - Trade receivables and notes receivable amounted to HKD 220.7 million as of December 31, 2023, up from HKD 162.5 million as of December 31, 2022, reflecting an increase of approximately 35.7%[93] - Selling, marketing, and administrative expenses increased to approximately HKD 166.6 million, up about 3.5% from HKD 160.9 million for the same period in 2022[105] Investments and Expansion Plans - The company plans to invest in expanding production capacity and R&D for new battery systems as part of a five-year plan[2] - The company has established a strategic investment cooperation agreement with the Jixi City government to set up a deep processing production facility for graphite, targeting an annual production of 30,000 tons of high-purity spherical graphite and 10,000 tons of battery anode materials[14] - The first phase of the graphite deep processing project is estimated to require an investment of no less than RMB 200 million, with funding sourced from internal resources, bank loans, or future fundraising activities[14] - The company has signed a cooperation agreement with the government of Nanshu Town to develop a lithium-ion battery negative material project in Laixi City, Shandong Province, with an estimated total investment of RMB 1 billion[15] - The company plans to expand its negative electrode material production capacity to meet the growing demand for lithium-ion batteries, particularly in the electric vehicle and energy storage markets[98] - The group plans to expedite the expansion project in Laixi City, Shandong Province, China, to enhance production capabilities[124] Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules and regularly reviews its governance practices[4] - The independent auditor's report confirms that the consolidated financial statements fairly reflect the company's financial position as of December 31, 2023[10] - The company has confirmed compliance with the standard code of conduct for securities trading by all directors as of December 31, 2023[21] - The company has been granted high-tech enterprise status, allowing it to enjoy a preferential corporate income tax rate of 15% until December 31, 2025[113] Employee and Talent Management - The group employed approximately 287 employees as of December 31, 2023, with compensation determined based on job nature, market trends, and individual performance[18] - Employee benefits include mandatory provident fund contributions, retirement plans, medical coverage, insurance, and training programs[28] - The company has implemented a series of share plans to reward contributions from directors, senior personnel, employees, and service providers, aimed at attracting suitable talent[19] Financial Position and Liabilities - The group’s current ratio as of December 31, 2023, was approximately 0.77, down from 0.82 as of December 31, 2022[134] - The group’s capital debt ratio was approximately 58% as of December 31, 2023, compared to 77% as of December 31, 2022[135] - The impairment loss on trade receivables was HKD 72.7 million for the fiscal year ending December 31, 2023, compared to HKD 59.5 million for the fiscal year ending December 31, 2022, indicating an increase of approximately 22.1%[93] - The impairment losses on financial and contract assets increased to approximately HKD 22.3 million, a rise of about 17% compared to HKD 19.0 million in the same period of 2022[132] - The group reported a net loss from joint ventures of HKD 582, compared to a profit of HKD 249 in the previous year[86] - The group reported a net loss of approximately HKD 7.5 million from the sale of subsidiaries, including Yummy Food Holdings Limited and Thai Lang Hong Kong Limited[138] - The company has no significant or contingent liabilities as of December 31, 2023[148] Revenue Breakdown - Total revenue for the current year reached HKD 291.93 million, with graphene product sales contributing HKD 194.93 million and landscape design services contributing HKD 97 million[77] - Revenue from the Chinese mainland accounted for HKD 265.56 million, while revenue from Hong Kong was HKD 25.32 million[77] - The total revenue of the group decreased to approximately HKD 291.9 million, a year-on-year decrease of about 14.4% from HKD 341.2 million in 2022[139] - Revenue from the graphene products segment decreased by 9% year-on-year to approximately HKD 194.9 million, accounting for 67% of the group's total revenue, with a maintained gross profit margin of 28% compared to 25% in 2022[124] - The landscape design segment contributed revenue of approximately HKD 97 million, accounting for about 33% of total group revenue, which decreased by HKD 25.9 million or 21% compared to HKD 122.9 million for the fiscal year ending December 31, 2022[99] Leasing and Capital Commitments - The company has entered into a 10-year lease agreement for a factory in Laixi, Shandong Province, China, with a total rental payment of approximately RMB 58,871,806.82 (about HKD 65,936,423.64) over the lease term[1] - A leasing agreement for a factory has been established with a total duration of 10 years and a total rental amount of RMB 58,871,860.82 (approximately HKD 65,936,423.64)[15] - As of December 31, 2023, the company has capital commitments of HKD 5,760,000 for the purchase of properties, plants, and equipment, down from HKD 7,523,000 in 2022[14] Future Outlook and Funding - The company expects to have sufficient operating funds to meet its financial obligations for at least the next twelve months[71] - The board is in discussions with potential investors regarding raising new funds through the issuance of new shares and/or debt securities[54] - The group secured a short-term loan of HKD 20 million for operational funding[72] - The project company received a letter of intent from a major Chinese bank for a proposed loan of RMB 400 million[73] - The company plans to apply for relevant policy subsidies under the "Laixi City Investment Promotion Certain Preferential Measures (Trial)" after obtaining all necessary government approvals[15]

EXHIBIT 99.1 Graphex Group Limited Announces Unaudited Financial Results For The First Half of 2023 HONG KONG, October 4, 2023 — Graphex Group Limited ("Graphex" the "Company" or the "Group") (NYSE American: GRFX and HKEX: 6128), a global leader in mid-stream processing of specialized natural graphite used for electric vehicle (EV) lithium-ion (Li-ion) batteries, today announced its unaudited interim financial results for the six months ended June 30, 2023. Financial Highlights for the Six Months Ended June ...

Financial Performance - The company reported a loss of HKD 41,775,000 for the six months ended June 30, 2023, compared to a loss of HKD 59,858,000 for the same period in 2022, representing a 30.2% improvement in performance[16]. - The company reported a pre-tax loss of HKD 46,780,000, an improvement from a loss of HKD 65,302,000 in the previous year[9]. - The net loss for the period was approximately HKD 41.8 million, compared to a net loss of HKD 59.9 million in the same period of 2022[39]. - Loss attributable to equity holders of the parent was HKD 43,968,000, a 26.3% reduction from HKD 59,633,000 in the prior year[33]. - The basic loss per share attributable to ordinary equity holders was HKD 6.06, a 47.6% improvement from HKD 11.56 in the previous year[33]. - The company reported a significant increase in restaurant revenue, which was HKD 1,745,000 compared to HKD 460,000 in the previous year, marking a 279.3% increase[33]. Revenue and Sales - Revenue for the six months ended June 30, 2023, was HKD 151,274,000, a decrease of 7.3% compared to HKD 163,133,000 in 2022[33]. - The company's graphene product revenue was HKD 97,103,000, down 6.1% from HKD 103,438,000 in 2022[33]. - Landscape design revenue decreased by 6.2% to HKD 54,171,000 from HKD 57,738,000[33]. - Total revenue for the six months ended June 30, 2023, was HKD 151,274,000, a decrease of 7.4% from HKD 163,133,000 in the same period of 2022[73]. - Revenue from graphene products was HKD 97,103,000, down from HKD 103,438,000, representing a decline of 6.5% year-over-year[73]. Assets and Liabilities - Total assets as of June 30, 2023, increased by 0.9% to HKD 903,143,000 compared to HKD 894,676,000 as of December 31, 2022[3]. - Total liabilities as of June 30, 2023, were HKD 537,668,000, with HKD 114,516,000 in graphene products, HKD 59,827,000 in landscape design, and HKD 5,067,000 in dining[103]. - The company’s total liabilities decreased from HKD 288,194,000 to HKD 257,000,000, a reduction of 10.8%[21]. - The total equity attributable to equity holders of the parent decreased slightly to HKD 365,475,000 from HKD 369,842,000[23]. - The debt ratio as of June 30, 2023, was approximately 66.4%, down from 76.9% as of December 31, 2022[46]. Cash Flow and Financial Costs - The company reported an operating cash flow loss of HKD 8,332,000 for the six months ended June 30, 2023, compared to a positive cash flow of HKD 820,000 in the same period of 2022[9]. - Cash and bank balances decreased significantly by 44.5% to HKD 17,459,000 from HKD 31,470,000[3]. - The company received interest income of HKD 771,000, significantly up from HKD 115,000 in the previous year, marking a 572.2% increase[21]. - Financial costs decreased significantly to approximately HKD 12.7 million from HKD 28.9 million year-on-year[39]. - Interest expenses for the six months ended June 30, 2023, were HKD 12,744,000, a decrease from HKD 28,888,000 in the same period of 2022[114]. Inventory and Trade Receivables - The company recorded a decrease in inventory by HKD 7,429,000, compared to a decrease of HKD 32,735,000 in the same period last year[9]. - Trade receivables increased significantly by HKD 88,232,000, compared to an increase of HKD 64,863,000 in the previous year[9]. - The company’s trade receivables and notes receivable, net of impairment provisions, increased to HKD 181,572,000 as of June 30, 2023, compared to HKD 103,019,000 at the end of 2022, reflecting a growth of 76.2%[150]. Strategic Focus and Future Outlook - The company is focusing on developing new products and technologies to enhance market competitiveness[10]. - Future outlook includes potential market expansion and strategic acquisitions to drive growth[10]. - The company aims to expand its market presence, particularly in mainland China, where revenue was HKD 138,178,000, down from HKD 151,064,000 in the previous year[73]. Government Support and Subsidies - The company has received government subsidies to promote its business in the region, with no conditions or contingencies attached[92]. - The company received government subsidies totaling HKD 914,000 during the reporting period, compared to HKD 301,000 in the previous year, representing an increase of 203.0%[139].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 本公佈僅供說明用途，並不構成在香港、美國或任何其他地方認購任何證券的任何邀請，本公佈（或 其任何部分）或分發本公佈之事實亦不會構成任何認購證券合約或邀請的基準或有關依據，且僅供說 明用途。分發本公佈可能在若干司法管轄區受到法律限制，而獲得本公佈內容提述資料的人士應自 行了解及遵守任何該等限制。任何未能遵守此等限制之情況可能構成任何有關司法管轄區的違法行 為。本公佈提述的證券尚未根據任何證券法律及規例發行、登記或獲准在香港、美國或任何其他地 方向公眾發售或流通。概無作出任何該等證券將會在香港、美國或任何其他地方發行或就此登記或 獲准向公眾發售或流通之表述。除非已根據一九三三年美國證券法（經修訂）（「證券法」）項下進行登 記或已在證券法項下獲豁免登記，否則證券不得在美國境內發售或出售。在美國的任何證券公開發 售將以招股章程進行，並可向發行人取得有關招股章程，當中載有有關發行人及其管理層的詳細資 料及財務報表 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 本公佈僅供說明用途，並不構成在香港、美國或任何其他地方認購任何證券的任何邀請，本公佈（或 其任何部分）或分發本公佈之事實亦不會構成任何認購證券合約或邀請的基準或有關依據，且僅供說 明用途。分發本公佈可能在若干司法管轄區受到法律限制，而獲得本公佈內容提述資料的人士應自 行了解及遵守任何該等限制。任何未能遵守此等限制之情況可能構成任何有關司法管轄區的違法行 為。本公佈提述的證券尚未根據任何證券法律及規例發行、登記或獲准在香港、美國或任何其他地 方向公眾發售或流通。概無作出任何該等證券將會在香港、美國或任何其他地方發行或就此登記或 獲准向公眾發售或流通之表述。除非已根據一九三三年美國證券法（經修訂）（「證券法」）項下進行登 記或已在證券法項下獲豁免登記，否則證券不得在美國境內發售或出售。在美國的任何證券公開發 售將以招股書進行，並可向發行人取得有關招股說明書，當中載有有關發行人及其管理層的詳細資 料及財務報表 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 GRFX NYSE American LLC FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 341,241,000, a decrease of 13% compared to HKD 391,035,000 in 2021[4] - Graphene product revenue decreased by 12% to HKD 214,614,000 from HKD 242,921,000[4] - Adjusted segment EBITDA was HKD 74,463,000, down 3% from HKD 76,557,000 in the previous year[4] - The company reported a pre-tax loss of HKD 71,971,000, an increase of 45% from HKD 49,774,000 in 2021[4] - Total assets decreased by 18% to HKD 894,676,000 from HKD 1,096,905,000[4] - Cash and bank balances increased by 4% to HKD 31,470,000 from HKD 30,240,000[4] - The company reported a net loss attributable to equity holders of approximately HKD 69.7 million for the year ended December 31, 2022, compared to a net loss of approximately HKD 53.5 million for the year ended December 31, 2021[56] - Gross profit decreased to approximately HKD 120.0 million, a decline of about 19.1% from HKD 148.3 million for the year ended December 31, 2021[45] - Gross margin decreased by approximately 2.7 percentage points to about 35.2% from approximately 37.9% for the year ended December 31, 2021[45] - Selling, marketing, and administrative expenses decreased to approximately HKD 160.9 million, down about 18.5% from HKD 197.5 million for the same period last year[46] Business Operations and Strategy - The company plans to expand its production capacity in China to meet increasing battery demand and enhance profitability[15] - Graphex Technologies LLC is expected to become a leading player in the North American market for battery anode materials[15] - The company aims to explore synergies between its new energy initiatives and landscape design business[16] - The company produced slightly over 10,000 tons of spherical graphite in 2022, with all products manufactured and sold in China, and plans to expand production in China and the U.S. in the coming months[31] - The company is exploring the feasibility of establishing additional anode material production facilities in Detroit and Canada[27] - The company anticipates that the energy storage vertical will stimulate the next wave of major growth, further driving the battery industry[26] - The company’s strategy includes selling all of its China-manufactured anode materials in the rapidly growing Asia-Pacific market[26] - The company plans to invest at least RMB 200 million in a graphite deep processing production facility, with an annual output of 30,000 tons of high-purity spherical graphite and 10,000 tons of battery anode materials[63] - The first phase of the project is expected to be completed by Q2 2023, with an annual output of 20,000 tons of high-purity spherical graphite[63] - The company is developing various graphite mining operations worldwide to ensure upstream supply commitments for battery super factories[83] Market and Industry Insights - The landscape design segment faced challenges due to COVID-19 and the downturn in the real estate market, leading to a focus on cost control[16] - The restaurant segment generated approximately HKD 3.8 million in revenue, accounting for about 1.1% of total revenue, primarily impacted by COVID-19-related restaurant closures[35] - According to TD Cowen, the annual battery manufacturing capacity in the USA is expected to reach approximately 920 GW by 2031, sufficient to produce 15 million electric vehicles annually[83] - Each electric vehicle requires 70 kg of graphite, indicating that the 920 GW capacity will necessitate 1 million tons of graphite anode material in the USA[83] - The global graphite production in 2022 was 1.3 million tons, highlighting the significant demand for graphite in the upcoming years[83] Corporate Governance and Compliance - The company emphasizes high standards of corporate governance to ensure shareholder rights and enhance corporate value and accountability[124] - The company has adopted the revised corporate governance code effective from January 1, 2022, which includes new requirements for core shareholder protection standards and board diversity[124] - The company confirms compliance with the standard code for securities trading by all directors for the year ending December 31, 2022[125] - The company has a strong focus on corporate governance with independent non-executive directors[106] - The board currently consists of nine members, including three executive directors, one non-executive director, and five independent non-executive directors, ensuring a diverse and qualified composition[145] - The independent non-executive directors have confirmed their compliance with independence standards as per listing rules[145] - The company has established specific committees, including the audit committee, remuneration committee, and nomination committee, to enhance governance effectiveness[163] - The board is responsible for executing corporate governance functions and reviews the governance policies annually[171] Risk Management and Internal Controls - The company has a robust internal control and risk management system in place[151] - The risk management system includes identifying risks, assessing their likelihood and impact, and managing responses to ensure effective communication with the board[175] - The internal audit function operates independently and assesses the risk management and internal control systems through interviews and operational efficiency tests[185] - The company has sufficient resources and training programs in place to support its risk management and internal control systems[184] Shareholder Engagement and Financial Policies - The company emphasizes effective communication with shareholders and stakeholders, encouraging attendance at the upcoming annual general meeting[194] - The company adopted a dividend policy on January 8, 2019, allowing shareholders to share in profits while retaining sufficient reserves for future development[127] - The board will consider various factors, including actual and expected financial performance, retained earnings, and capital expenditure requirements, when deciding on dividend distributions[130] - There is no preset dividend payout ratio, and past dividend distribution records cannot be used as a reference for future dividends[131] - The board has the discretion to review and amend the dividend policy as necessary[132] Future Outlook and Development - The company has not provided any future outlook or performance guidance in the provided content[1] - The company is committed to research and development to keep pace with significant technological changes in the industry, ensuring competitiveness in the graphite business[177] - The company continues to monitor the overall impact of COVID-19 on its operations and has implemented various proactive measures and contingency plans to maintain business continuity[177]