Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was HKD 126,112,000, a decrease of 44.6% compared to HKD 226,961,000 in 2023[6]. - The gross profit for the year was HKD 34,392,000, down 32.1% from HKD 50,660,000 in the previous year[6]. - The net loss attributable to the company’s owners for continuing operations was HKD 412,879,000, compared to a loss of HKD 98,210,000 in 2023, representing a significant increase in losses[7]. - The total comprehensive loss for the year amounted to HKD 1,481,049,000, compared to a gain of HKD 236,555,000 in the previous year, indicating a substantial decline in overall performance[7]. - The company reported a loss attributable to owners of HKD 1,449,914,000 for the year 2024, compared to a profit of HKD 293,857,000 in 2023[8]. - Basic and diluted loss per share for continuing and discontinued operations was HKD (4.23) for 2024, compared to HKD (1.09) for 2023[8]. - The company reported a net loss before tax for continuing operations increased to HKD 412,879,000 in 2024 compared to HKD 106,519,000 in 2023, indicating a significant increase in losses[38]. - The company recorded a net loss of approximately HKD 441,300,000 for the year, compared to a loss of HKD 158,800,000 in the previous year[94]. Revenue Breakdown - Revenue from lithium battery sales decreased to HKD 74,591 thousand in 2024 from HKD 158,045 thousand in 2023, representing a decline of approximately 52.8%[24]. - Battery testing service revenue fell to HKD 2,953 thousand in 2024 from HKD 15,870 thousand in 2023, a decrease of about 81.4%[24]. - Total customer contract revenue for continuing operations was HKD 108,406 thousand in 2024, down from HKD 215,412 thousand in 2023, reflecting a decline of approximately 49.7%[24]. - The reported segment revenue for lithium battery production was HKD 77,544 thousand, while the ride-hailing and related services segment generated HKD 48,568 thousand in 2024[29]. - The lithium battery division recorded revenue of approximately HKD 77,500,000 for the year ended December 31, 2024, a decrease of about 55.4% compared to the previous year's revenue of HKD 173,900,000[62]. - Caocao contributed approximately HKD 48,600,000 in revenue for the year ended December 31, 2024, down from HKD 53,000,000 in 2023[64]. Expenses and Costs - Administrative expenses decreased to HKD 76,644,000 from HKD 106,143,000, reflecting a reduction of 27.8%[6]. - Financial costs increased slightly to HKD 10,065,000 from HKD 9,447,000, indicating a rise of 6.5%[6]. - Research and development costs for continuing operations decreased to HKD 8,032,000 in 2024 from HKD 20,126,000 in 2023, a reduction of approximately 60%[32]. - Employee benefits costs for the year ended 2024 decreased to HKD 58.1 million from HKD 82 million for the year ended 2023, primarily due to a reduction in employee numbers in China and France[107]. Asset and Liability Changes - Non-current assets decreased from HKD 7,600,756,000 in 2023 to HKD 5,465,255,000 in 2024, a decline of approximately 28.1%[9]. - Current assets also decreased from HKD 355,326,000 in 2023 to HKD 222,166,000 in 2024, representing a decrease of about 37.4%[9]. - Total liabilities decreased from HKD 2,672,308,000 in 2023 to HKD 2,018,843,000 in 2024, a reduction of approximately 24.4%[10]. - The company's net asset value decreased from HKD 4,973,979,000 in 2023 to HKD 3,513,948,000 in 2024, reflecting a decline of about 29.4%[10]. - Cash and cash equivalents decreased significantly from HKD 166,953,000 in 2023 to HKD 65,784,000 in 2024, a drop of approximately 60.7%[9]. - The company's equity attributable to owners decreased from HKD 4,988,185,000 in 2023 to HKD 3,559,289,000 in 2024, a decline of approximately 28.7%[10]. - The company reported a significant increase in accounts payable from HKD 72,044,000 in 2023 to HKD 38,500,000 in 2024, indicating a decrease of about 46.5%[9]. - The provision for impairment losses on accounts receivable increased to HKD 794,000 in 2024 from HKD 373,000 in 2023, indicating a rise in expected credit losses[45]. Impairment and Losses - The company reported an impairment loss on exploration and evaluation assets of HKD 534,169,000, which was not present in the previous fiscal year[6]. - The company recognized impairment losses of HKD 534,169 thousand for exploration and evaluation assets in 2024[29]. - The impairment loss for the year included a total of HKD 534.2 million, net of deferred tax assets of HKD 181.6 million[99]. - The company recognized impairment losses of HKD 23,851,000 on investments in associates, reflecting a significant increase from HKD 896,000 in the previous year[47]. - The carrying value of exploration and evaluation assets decreased to HKD 5,367,781,000 in 2024 from HKD 7,467,157,000 in 2023, reflecting a significant impairment loss of HKD 534,169,000[42]. Strategic Initiatives and Future Plans - The company plans to focus on market expansion and new product development as part of its future strategy[6]. - The company is actively pursuing environmental assessments for its Brazilian iron ore project and exploring new sustainable business opportunities[113]. - The company aims to strengthen its internal management and improve operational efficiency and risk management capabilities[112]. - The company is committed to becoming a trusted green mineral resource supplier, contributing to sustainable development[113]. - The company is collaborating closely with its indirect controlling shareholder, Geely Technology Group, to explore new development opportunities[114]. - The company is focusing on divesting projects that do not align with its vision and establishing a clearer business model[113]. Compliance and Governance - The audit committee has reviewed the group's performance announcement for the year ending 2024 and confirmed compliance with applicable accounting standards[119]. - The company emphasizes high standards of corporate governance, focusing on accountability and transparency[115]. - The company has adopted the GEM listing rules regarding directors' trading standards and confirmed compliance for the year ending 2024[117]. - The group has been focusing on reducing scale and simplifying operations at Shandong Hengyuan New Energy since 2023[60].

Financial Performance - The company reported revenue of HKD 71,447,000 for the six months ended June 30, 2024, a decrease of 47% compared to HKD 135,921,000 in the same period of 2023[5]. - Gross profit for the same period was HKD 21,305,000, slightly down from HKD 21,473,000 year-on-year[5]. - The company incurred a loss before tax of HKD 53,123,000, compared to a loss of HKD 47,356,000 in the previous year, indicating a worsening financial performance[5]. - Total comprehensive loss for the period amounted to HKD 710,140,000, a significant increase from a comprehensive income of HKD 407,686,000 in the prior year[5]. - Basic and diluted loss per share was HKD 0.44, compared to HKD 0.40 in the same period last year[5]. - The company reported a loss of HKD 42,484 thousand for the period, compared to a loss of HKD 38,759 thousand in the same period last year, indicating a worsening financial performance[7]. - The net loss for the six months ended June 30, 2024, was HKD 53,123,000, compared to a loss of HKD 47,356,000 in the same period of 2023[20]. Operating Expenses - The company reported other operating expenses of HKD 13,993,000, a substantial increase from HKD 1,346,000 in the previous year[5]. - Administrative expenses decreased to HKD 42,521,000 from HKD 59,005,000, reflecting cost-cutting measures[5]. - Operating expenses for the period were approximately HKD 14 million, significantly up from HKD 1.3 million in the same period last year, primarily due to impairment losses on receivables from a joint venture[70]. Assets and Liabilities - As of June 30, 2024, total assets decreased to HKD 6,598,439 thousand from HKD 7,600,756 thousand as of December 31, 2023, representing a decline of approximately 13.2%[6]. - Total liabilities decreased to HKD 2,442,549 thousand as of June 30, 2024, from HKD 2,672,308 thousand as of December 31, 2023, a reduction of about 8.6%[6]. - The company's cash and cash equivalents at the end of the period were HKD 151,282 thousand, down from HKD 166,953 thousand at the beginning of the period, reflecting a decrease of approximately 9.4%[9]. - The total equity attributable to owners of the company decreased to HKD 4,264,140 thousand as of June 30, 2024, from HKD 4,973,979 thousand as of December 31, 2023, a decline of approximately 14.3%[6]. Revenue Breakdown - Lithium battery sales amounted to HKD 44,666,000, down 55.9% from HKD 101,333,000 in the previous year[13]. - Battery testing service revenue decreased to HKD 1,388,000 from HKD 4,831,000, representing a decline of 71.2%[13]. - The lithium-ion battery segment recorded revenue of approximately HKD 46.1 million for the first half of 2024, a decrease of about 56.6% compared to HKD 106.2 million in the same period last year[52]. - Caocao contributed approximately HKD 25.4 million in revenue for the first half of 2024, down from HKD 27.3 million in the same period last year[54]. Cash Flow - The company's net cash used in operating activities for the six months ended June 30, 2024, was HKD (18,382) thousand, compared to HKD (1,922) thousand for the same period in 2023, indicating a significant increase in cash outflow[9]. - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately HKD 151.3 million, down from HKD 167 million at the end of 2023[71]. Market Outlook - Future outlook remains cautious due to market volatility and ongoing operational challenges, with no specific guidance provided for the upcoming periods[4]. - The lithium-ion battery business faces challenges due to low production capacity, leading to higher average costs compared to competitors[49]. - The company is in discussions with potential new customers in the energy storage sector and manufacturers transitioning from lead-acid to lithium batteries[49]. Investments and Projects - The company has invested a total of approximately USD 160.22 million in the SAM project, which includes USD 81.8 million in funding and USD 78.42 million in acquisition costs[57]. - The total investment for the SAM project is expected to be USD 3.25 billion, excluding pipeline and port projects led by other entities[58]. - The environmental permit process for the SAM project has faced significant delays due to incidents at other mining operations in Brazil[59]. Employee and Shareholder Information - Employee compensation for the first half of 2024 amounted to HKD 28,800,000, a decrease from HKD 45,000,000 in the first half of 2023[75]. - The company had 193 employees as of June 30, 2024, down from 242 employees on June 30, 2023[75]. - Major shareholders include Li Shufu with 61.61% ownership, Geely Group with 41.28%, and Hongqiao Capital with 41.25%[88]. Agreements and Frameworks - The company has entered into a purchase framework agreement with Zhejiang Yaoning Technology Group for lithium-ion batteries and modules, effective from September 11, 2023, to September 10, 2026[95]. - The sales framework agreement with Zhejiang Geely has an annual sales cap of 50,000, 235,000, 155,000, and 97,000 for the respective years[93]. - The pricing for products under the purchase framework agreement will be based on current market prices and fair negotiation[95].

Financial Performance - The company reported a total comprehensive loss of HKD 710,140,000 for the six months ended June 30, 2024, compared to a comprehensive income of HKD 407,686,000 for the same period in 2023[4]. - Revenue for the six months ended June 30, 2024, was HKD 71,447,000, a decrease from HKD 135,921,000 in the same period of 2023, representing a decline of approximately 47%[5]. - The company incurred a loss of HKD 53,123,000 for the period, compared to a loss of HKD 47,356,000 in the prior year, indicating a year-over-year increase in loss of about 12%[6]. - The company reported a basic and diluted loss per share of HKD 0.44 for the six months ended June 30, 2024, compared to HKD 0.40 for the same period in 2023[8]. - The total comprehensive income for the six months ended June 30, 2024, was HKD (710,140,000), compared to HKD 407,686,000 for the same period in 2023[12]. - The company reported a loss for the period of HKD (53,123,000) for the six months ended June 30, 2024, compared to a loss of HKD (47,356,000) in 2023[12]. - The company reported a loss attributable to shareholders of approximately HKD 42.5 million in the first half of 2024, compared to HKD 38.8 million in the first half of 2023[68]. Assets and Liabilities - Non-current assets decreased from HKD 7,600,756,000 as of December 31, 2023, to HKD 6,598,439,000 as of June 30, 2024, reflecting a reduction of approximately 13%[9]. - Current assets totaled HKD 300,314,000 as of June 30, 2024, down from HKD 355,326,000 at the end of 2023, marking a decrease of about 15.5%[9]. - The company's total liabilities decreased from HKD 2,672,308,000 to HKD 2,442,549,000, a reduction of approximately 8.6%[10]. - The equity attributable to the owners of the company decreased from HKD 4,973,979,000 to HKD 4,264,140,000, representing a decline of about 14.2%[11]. - The company's total liabilities as of June 30, 2024, were HKD 73,196,000, slightly up from HKD 72,044,000 as of December 31, 2023[41]. - The total receivables net amount as of June 30, 2024, was HKD 46,947 million, an increase from HKD 36,801 million as of December 31, 2023[37]. - The company’s total liabilities increased to HKD 6,284,720,000 as of June 30, 2024, compared to HKD 5,577,626,000 as of June 30, 2023[12]. Cash Flow - The net cash used in operating activities for the six months ended June 30, 2024, was HKD (18,382,000), compared to HKD (1,922,000) for the same period in 2023[13]. - The net cash used in investing activities was HKD (2,061,000) for the six months ended June 30, 2024, compared to HKD (2,915,000) in 2023[13]. - The net cash from financing activities was HKD 18,505,000 for the six months ended June 30, 2024, compared to HKD (8,241,000) in 2023[13]. - The company’s cash and cash equivalents decreased from HKD 166,953,000 to HKD 151,282,000, a decline of approximately 9.4%[9]. - The cash and cash equivalents at the end of the period were HKD 151,282,000, an increase from HKD 144,706,000 at the end of June 2023[13]. Revenue Breakdown - The lithium battery sales segment generated revenue of HKD 44,666,000, down from HKD 106,164,000 in the previous year, reflecting a decline of 57.9%[19][20]. - The revenue from battery testing services was HKD 1,388,000, while battery replacement services contributed HKD 25,393,000[21]. - Major customer A1 contributed HKD 38,836,000 to total revenue for the six months ended June 30, 2024, compared to HKD 100,000,000 in the same period of 2023[25]. - Revenue from external customers in China was HKD 9,868,000, while revenue from the UK was HKD 36,186,000, both showing significant declines compared to the previous year[23]. - The lithium-ion battery division recorded revenue of approximately HKD 46,100,000 for the first half of 2024, a decrease of about 56.6% compared to HKD 106,200,000 in the same period last year[51]. - Caocao contributed approximately HKD 25,400,000 in revenue for the first half of 2024, down from HKD 27,300,000 in the same period last year[53]. Operational Highlights - The company identified significant operational segments including lithium battery production and ride-hailing services, with total reported segment assets of HKD 6,842,991,000[22]. - The company is actively seeking potential buyers or new investors for its joint venture Shandong Hengyuan New Energy, which has been inactive for several years[52]. - The company is focusing on optimizing operations and reducing costs in the Caocao ride-hailing business while maintaining high service levels[53]. - The company is in discussions with potential new customers in the energy storage sector and manufacturers transitioning from lead-acid to lithium batteries[49]. - The company launched a new heavy-duty truck parking battery in 2023 to meet the increasing demand for air conditioning during summer parking[50]. Investments and Acquisitions - The company completed the acquisition of a controlling stake in Jihang International Technology Co., which operates the Caocao ride-hailing service in France[53]. - The total consideration for the acquisition of SAM is $390 million, payable in five installments[77]. - The company entered into a letter of intent to invest approximately USD 350 million to acquire a 38.75% stake in Xizang Zhufeng Resources[63]. - The company has decided to terminate further discussions regarding the potential investment in the lithium salt lake project due to significant price volatility of lithium carbonate[63]. Employee and Shareholder Information - The employee count decreased to 193 as of June 30, 2024, down from 242 on June 30, 2023, and 201 on December 31, 2023[76]. - Employee compensation for the first half of 2024 was HKD 28.8 million, compared to HKD 45 million in the first half of 2023[76]. - Major shareholders include Li Shufu with 6,071,568,675 shares, representing 61.61% ownership[91]. - The board of directors and key executives hold various interests in the company's shares, with the largest shareholder holding approximately 0.82%[81]. Compliance and Governance - The company has complied with all GEM listing rules during the six-month period ending June 30, 2024[79]. - The audit committee has reviewed the unaudited performance for the first half of 2024, confirming compliance with applicable accounting standards[115]. - There were no significant contracts involving directors with substantial interests during the review period[113].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue of HKD 227 million, a 73.9% increase from HKD 130.5 million in the previous year[8]. - The company reported a loss attributable to owners of approximately HKD 106.5 million, significantly reduced from a loss of HKD 199.2 million in the previous year[9]. - Gross profit improved from HKD 31.6 million in the previous year to HKD 50.7 million, reflecting successful revenue enhancement[9]. - The group recorded a gross profit of approximately HKD 50,700,000 for the year ended December 31, 2023, with a gross margin of 22.3%, down from 24.3% in the previous year[73]. - The financial costs for the year were approximately HKD 9,400,000, up from HKD 8,700,000 in the previous year, primarily due to interest expenses related to bank loans[74]. - The group’s operating expenses for the year were approximately HKD 13,100,000, a decrease from HKD 33,700,000 in the previous year, mainly due to reduced investment losses[74]. - The group confirmed a share placement and subscription that raised a net amount of HKD 1,336,000,000, with significant allocations for lithium-ion battery capacity expansion and potential investments in the new energy vehicle sector[77]. - The company did not recommend the payment of a final dividend for the year ending December 31, 2023, consistent with the previous year[102]. Revenue Sources - The lithium-ion battery factory in Zhejiang contributed approximately HKD 173.9 million in revenue, with sales of lithium batteries rising by about 59.4% from HKD 109.1 million[8]. - The acquisition of a controlling stake in Jihang International Technology Co., Ltd. contributed approximately HKD 53 million in revenue for the full year, compared to HKD 21.4 million from August to December 2022[8]. - The company sold its battery-sharing business "GETI" for a total consideration of RMB 20 million, as the business was not meeting profitability expectations[8]. - The company recognized revenue of approximately HKD 1.9 million from GETI, down from HKD 7.2 million in the previous year[8]. - Caocao completed over 120,000 B2C orders and 3,600 B2B orders, contributing approximately HKD 53 million to the group's revenue for the year[20]. Market Trends and Strategic Focus - The company anticipates a global shift from internal combustion engine vehicles to low and zero-emission electric vehicles, with various regions implementing timelines for phasing out sales of internal combustion engine vehicles[10]. - China's new energy vehicle sales increased by 37.9% to 9,500,000 units, accounting for approximately 31.6% of total new car sales as of the fiscal year ending 2023[11]. - The company has shifted focus to the electric bicycle and commercial vehicle sectors, recognizing the inevitable transition from lead-acid batteries to lithium batteries[11]. - The company anticipates continued high growth in the new energy vehicle industry in the coming years due to ongoing government support in China[11]. Acquisitions and Investments - The company completed the acquisition of a controlling stake in Jihang International Technology Co., which provides ride-hailing services in Paris, in August 2022[12]. - The company is exploring investment opportunities in two lithium salt lake projects in Argentina and is conducting due diligence on potential partnerships in Africa and Brazil[14]. - The company plans to invest approximately $350 million to acquire a 38.75% stake in Tibet Summit Resources, which holds significant lithium resources in Argentina[47]. - The lithium project at the Anghelas salt lake is projected to produce 50,000 tons of battery-grade lithium carbonate equivalent annually, with a total investment of around $700 million[49]. Operational Challenges - The company is facing challenges in securing large orders from major automakers due to lower production capacity and higher average costs compared to competitors[15]. - The company is actively negotiating with potential new customers in the energy storage sector and manufacturers transitioning from lead-acid to lithium batteries[15]. - The company is facing risks related to the regulatory environment and policies affecting the new energy vehicle industry in China, which could negatively impact its lithium-ion battery business[85]. - The company is managing risks associated with rising raw material costs for lithium-ion batteries, particularly cobalt and lithium, which could adversely affect profitability[87]. Environmental and Social Governance (ESG) - The company has a commitment to environmental, social, and governance (ESG) practices, as outlined in its annual report[102]. - The group has established appropriate management policies and internal control systems regarding ESG issues, ensuring compliance with ESG reporting guidelines[176]. - The company has established an ESG governance framework to integrate ESG practices into business operations[180]. - The company has identified key ESG issues, with anti-corruption being prioritized due to stakeholder expectations[186]. Corporate Governance - The company has a strong management team with extensive experience in finance, engineering, and corporate governance, including members with over 10 years in mergers and acquisitions[98][99]. - The board consists of seven directors, including three independent non-executive directors, ensuring over one-third of the board members are independent[141]. - The chairman and CEO positions are held by different individuals to enhance independence and accountability[142]. - The company has adopted a formal procedure and policy for the appointment of new directors, ensuring they understand the business and their responsibilities under applicable laws and regulations[148]. Employee Management - The total number of employees decreased to 201 as of December 31, 2023, from 328 in the previous year, reflecting cost-cutting measures in China and France[80]. - Employee benefit costs increased to HKD 82,000,000 for the year ended December 31, 2023, compared to HKD 76,200,000 for the previous year, mainly due to full-year employee expenses related to ride-hailing services[80]. - The employee turnover rate for 2023 is 36.29%, slightly down from 37.26% in 2022[197]. - The group is committed to creating and maintaining an inclusive workplace culture free from discrimination and harassment[200].

Financial Performance - The company's total revenue for the year ended December 31, 2023, was HKD 226,961,000, compared to HKD 176,301,000 in 2022, representing a year-over-year increase of approximately 28.6%[4]. - The net loss for the year was HKD 167,120,000, a decrease from a loss of HKD 301,861,000 in the previous year, indicating an improvement of about 44.6%[6]. - The gross profit for the year was HKD 50,660,000, up from HKD 31,666,000 in 2022, reflecting a growth of approximately 59.9%[5]. - The company's total comprehensive income for the year was HKD 236,555,000, compared to a loss of HKD 82,246,000 in 2022, marking a significant turnaround[6]. - The company reported a loss attributable to owners of the company for the year 2023 of HKD 106,519,000, compared to a loss of HKD 199,156,000 in 2022, indicating a significant improvement[38]. - The basic loss per share from continuing operations for 2023 was HKD 98,210, while in 2022 it was HKD 160,054, reflecting a reduction in losses[39]. Assets and Liabilities - The total assets as of December 31, 2023, were HKD 7,600,756,000, an increase from HKD 7,089,984,000 in 2022, showing a growth of about 8.6%[8]. - The total liabilities increased to HKD 309,795,000 from HKD 184,132,000, indicating a rise of approximately 68.2%[8]. - The company's total equity increased to HKD 4,973,979,000 in 2023 from HKD 4,707,007,000 in 2022, representing a growth of approximately 5.66%[10]. - The net asset value of the company increased by approximately 5.66% from HKD 4,707,007,000 in 2022 to HKD 4,973,979,000 in 2023[9]. - The company's cash and cash equivalents stood at HKD 166,953,000, slightly up from HKD 165,452,000 in the previous year[8]. Operational Highlights - The company plans to focus on market expansion and new product development to drive future growth[4]. - The group reported a loss of approximately HKD 158,811,000 for the year ending December 31, 2023, with cash and cash equivalents of about HKD 166,953,000[22]. - Lithium battery sales revenue increased to HKD 158,045,000 in 2023 from HKD 95,727,000 in 2022, representing a growth of 65%[26]. - Total customer contract revenue for 2023 was HKD 215,412,000, up from HKD 128,548,000 in 2022, indicating a year-over-year increase of 67.5%[26]. - The company has made significant progress in reducing its loss from discontinued operations, which was HKD 8,309,000 compared to HKD 39,102,000 in 2022, a reduction of about 78.8%[6]. Segment Performance - For the fiscal year ending December 31, 2023, the reportable segment revenue from lithium battery production was HKD 173,915,000, while the ride-hailing and related services segment generated HKD 53,046,000, totaling HKD 226,961,000 in reportable segment revenue[29]. - The reportable segment loss for lithium battery production was HKD 20,530,000, while the ride-hailing and related services segment reported a significant loss of HKD 107,922,000, leading to an overall reportable segment loss of HKD 95,617,000[29]. - The lithium-ion battery division recorded revenue of approximately HKD 173.9 million for the year ended December 31, 2023, an increase of about 59.4% compared to HKD 109.1 million in the previous year[65]. - The lithium-ion battery division achieved a profit of approximately HKD 20.5 million for the year ended December 31, 2023, compared to a loss of HKD 174.1 million in the previous year[66]. Cash Flow and Financing - The group has taken measures to alleviate cash flow pressure, including a commitment from a shareholder to provide financial assistance of up to HKD 147,690,000[23]. - The group anticipates sufficient operating funds to meet its financial obligations based on cash flow forecasts[24]. - The company raised a total of HKD 1,336 million from the placement and subscription of shares, with HKD 950 million allocated to enhance lithium-ion battery production capacity and potential investments in the electric vehicle sector[101]. - The company is exploring various financing options to support potential projects in lithium extraction and new energy vehicle sectors[108]. Impairment and Provisions - The company reported a significant impairment loss of HKD 62,621,000 related to property, plant, and equipment, primarily from the ride-hailing segment[29]. - The total impairment loss for property, plant, and equipment, and right-of-use assets was HKD 62,621,000 and HKD 4,213,000 respectively for the year ended December 31, 2023[41]. - The company confirmed a provision of HKD 11,401,000 related to litigation for its subsidiary, reflecting ongoing legal challenges[58]. - The company has reassessed its provisions and determined that no further provisions are necessary as of December 31, 2023[56]. Strategic Initiatives - The company is actively developing strategies to optimize operations and reduce costs in its ride-hailing business, particularly in administrative and technology expenses[67]. - The company has established a partnership with Uber to explore collaborative development and enhance service offerings in the ride-hailing market[67]. - The company is considering strategic partnerships for the SAM project to advance development and potential joint ventures[107]. Corporate Governance - The company is committed to high standards of corporate governance and has adhered to GEM listing rules, except for the internal audit requirement[111]. - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[115].

Financial Performance - The company reported a total revenue of HKD 226,961,000 for the year ending December 31, 2023, compared to HKD 176,301,000 in 2022, representing a year-over-year increase of approximately 28.6%[4]. - The gross profit for the year was HKD 50,660,000, up from HKD 31,666,000 in the previous year, indicating a growth of about 59.9%[5]. - The net loss for the year was HKD 167,120,000, a decrease from a loss of HKD 301,861,000 in 2022, showing an improvement of approximately 44.6%[6]. - The total comprehensive income for the year was HKD 236,555,000, compared to a loss of HKD 82,246,000 in the previous year, marking a significant turnaround[6]. - The company reported a loss attributable to owners of the company of HKD 106,519,000 for the year 2023, compared to a loss of HKD 199,156,000 in 2022, indicating a significant improvement[38]. - The basic loss per share for continuing operations was HKD (1.00), an improvement from HKD (1.65) in the previous year[7]. - The basic loss per share from continuing operations was HKD 98,210 for 2023, down from HKD 160,054 in 2022, reflecting a reduction in losses[39]. Assets and Liabilities - The company's non-current assets decreased to HKD 7,600,756,000 from HKD 7,089,984,000, reflecting a decline of about 7.2%[8]. - Current assets totaled HKD 355,326,000, a slight increase from HKD 440,765,000 in 2022, indicating a decrease of approximately 19.4%[8]. - The company's total liabilities increased to HKD 309,795,000 from HKD 184,132,000, representing a rise of about 68.2%[8]. - Total equity increased to HKD 4,973,979 thousand in 2023, up from HKD 4,707,007 thousand in 2022, representing a growth of approximately 5.66%[10]. - The company’s total liabilities decreased from HKD 213,985,000 in 2022 to HKD 151,778,000 in 2023, indicating a reduction in financial obligations[54]. - The company’s total borrowings decreased from HKD 132,519 thousand in 2022 to HKD 108,926 thousand in 2023, reflecting a decline of approximately 17.8%[9]. Revenue Segments - Lithium battery sales revenue increased to HKD 158,045,000 in 2023 from HKD 95,727,000 in 2022, representing a growth of 65%[26]. - Total customer contract revenue for continuing operations was HKD 215,412,000 in 2023, up from HKD 128,548,000 in 2022, marking a 67% increase[26]. - The reported revenue from the lithium battery production segment was HKD 173,915,000, while the ride-hailing and related services segment generated HKD 53,046,000, leading to a total revenue of HKD 226,961,000 for the year ended December 31, 2023[29]. - Revenue from battery testing services rose to HKD 15,870,000 in 2023, compared to HKD 13,370,000 in 2022, an increase of 18.7%[26]. Operational Changes - The company has ceased the battery replacement service business as of December 31, 2023[11]. - The group is focusing on completing and delivering lithium battery product orders and implementing accelerated sales measures[23]. - The group is currently in constructive discussions with banks and other potential financial institutions to explore possible borrowing or credit facilities[23]. - The company is exploring strategic partnerships and cost optimization strategies to enhance profitability in its ride-hailing business[67]. Impairment and Provisions - The company reported a significant impairment loss of HKD 62,621,000 related to property, plant, and equipment, primarily from the ride-hailing segment[29]. - The total impairment assessment for cash-generating units related to ride-hailing and related services was HKD 128,044,000 as of December 31, 2023[41]. - The company recorded a net impairment loss of HKD 66,834,000 allocated proportionally to asset categories to offset the carrying amount[41]. - The company confirmed a provision of HKD 11,401,000 related to litigation for its subsidiary, reflecting ongoing legal challenges[58]. Strategic Initiatives - The company aims to enhance its market presence and explore new strategies for growth in the upcoming fiscal year[4]. - The company is actively seeking various financing options to support potential projects in lithium extraction and related businesses[108]. - The company is considering strategic partnerships for joint development or overall sale of the SAM iron ore project if suitable opportunities arise[107]. Market Trends and Future Outlook - The company anticipates continued high growth in the electric vehicle industry in the coming years, supported by government initiatives in China[106]. - The sales volume of electric vehicles in China increased by 37.9% to 9.5 million units for the year ending December 31, 2023, representing about 31.6% of total new car sales[106]. - The company has shifted its focus to the electric bicycle and commercial vehicle sectors, recognizing the trend of transitioning from lead-acid batteries to lithium batteries[106]. Corporate Governance - The audit committee held four meetings during the year to review the company's performance and internal control systems, all recorded with full attendance[113]. - The company has adhered to the GEM listing rules regarding corporate governance, except for the internal audit function, which is under review[111]. - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[115].

Financial Performance - For the three months ended September 30, 2023, the company reported revenue of HKD 51,600 thousand, a decrease from HKD 60,065 thousand in the same period of 2022, representing a decline of approximately 12.2%[4] - The gross profit for the nine months ended September 30, 2023, was HKD 30,305 thousand, compared to HKD 29,026 thousand for the same period in 2022, indicating an increase of about 4.4%[4] - Lithium battery sales for the nine months ended September 30, 2023, reached HKD 138,435 thousand, up from HKD 83,791 thousand in 2022, reflecting a growth of approximately 65.4%[6] - The company incurred a loss before tax of HKD 70,017 thousand for the nine months ended September 30, 2023, compared to a loss of HKD 76,177 thousand in the same period of 2022, showing an improvement of about 8.5%[4] - The company reported a net loss attributable to owners of HKD 57,671 thousand for the nine months ended September 30, 2023, compared to a loss of HKD 71,017 thousand in the same period of 2022, indicating a reduction of about 18.7%[4] - The comprehensive income for the nine months ended September 30, 2023, was HKD 169,586,000, compared to HKD 61,683,000 for the same period in 2022[12] - The company reported a total comprehensive loss of HKD 238,100 thousand for the three months ended September 30, 2023, compared to a loss of HKD 154,463 thousand in the same period of 2022[4] Expenses and Costs - The financial costs for the nine months ended September 30, 2023, totaled HKD 7,273 thousand, an increase from HKD 5,888 thousand in 2022, representing a rise of approximately 23.5%[8] - The administrative expenses for the three months ended September 30, 2023, were HKD 20,507 thousand, a decrease from HKD 29,876 thousand in the same period of 2022, reflecting a reduction of approximately 31.4%[4] - Operating expenses for the period were approximately HKD 7.8 million, a significant decrease from HKD 50.8 million in the same period last year[35] - Financial costs for the period were approximately HKD 7.3 million, up from HKD 5.9 million in the previous year, primarily due to interest expenses on bank loans[36] Shareholder Information - As of September 30, 2023, the major shareholders include Li Shufu with a stake of 61.61% and Geely Group Limited holding 41.28%[50] - The company’s major shareholders include Zhejiang Geely Holding Group Limited, which holds 100% of Geely International (Hong Kong) Limited[51] - Geely Group Limited acquired a total of 68.86% equity in Hongqiao Capital Limited, gaining statutory control of the company[49] - The unconditional mandatory general offer was made at HKD 0.08 per share, which ended on March 16, 2023[49] Business Operations and Strategy - The lithium-ion battery business has been supplying batteries to several high-end vehicle models since 2018, including models from Volvo and Lynk[13] - The company is actively engaging with potential new customers in the energy storage sector and manufacturers transitioning from lead-acid to lithium batteries[13] - The company has initiated discussions with manufacturers of electric vehicles and commercial vehicles to promote product matching and collaboration[13] - The company aims to develop products for the market transition from lead-acid batteries to lithium batteries, recognizing this trend as inevitable[38] - The company is exploring lithium mica and lithium spodumene projects in Africa and Brazil, considering contracting or cooperative mining opportunities[38] - The company has identified two investment opportunities related to lithium salt lake projects in Argentina and is finalizing legal due diligence[38] Investments and Projects - The total investment for the SAM project in Brazil is projected to be $3.01 billion, with an annual production capacity of 27.5 million tons of iron concentrate[20] - The environmental permit process for the SAM project has seen positive progress, with over 1,150 attendees at two public hearings expressing support for the project[22] - The company plans to invest approximately $350 million to acquire a 38.75% stake in Tibet Zhufeng Resources Co., Ltd. through existing shares and/or new share subscriptions[23] - The total investment for the Anghelis lithium salt lake project is approximately $700 million, with a cost of around $5,000 per ton of lithium carbonate equivalent[25] - The company is preparing to implement detailed exploration for the Arizaro lithium salt lake project, which may have resources exceeding 10 million tons of lithium carbonate equivalent[26] Corporate Governance - The audit committee reviewed the unaudited results for the nine months ending September 30, 2023, confirming compliance with applicable accounting standards[55] - The company has adhered to all code provisions under the GEM Listing Rules during the nine months ending September 30, 2023[39] - The company has not disclosed any interests or positions held by directors or key executives in the company or its affiliates as of September 30, 2023[41] - The company has a stock option plan in place, adopted on May 26, 2022, with details outlined in a circular issued on May 3, 2023[44] - The board of directors includes key executives such as He Xuechu (Chairman) and Liu Jian (Vice Chairman and Co-CEO)[57] Market Trends - In 2022, China's new energy vehicle sales reached 6.9 million units, accounting for approximately 25.6% of total new car sales[37] - The Chinese government has extended tax incentives for purchasing new energy vehicles until the end of 2027, supporting continued growth in the sector[37]

Financial Performance - For the nine months ended September 30, 2023, the company reported revenue of HKD 187,521,000, a significant increase of 92.8% compared to HKD 97,297,000 in the same period of 2022[4] - The gross profit for the nine months ended September 30, 2023, was HKD 30,305,000, compared to HKD 29,026,000 in the previous year, reflecting a slight increase of 4.4%[4] - The company incurred a loss before tax of HKD 70,017,000 for the nine months ended September 30, 2023, compared to a loss of HKD 76,177,000 in the same period of 2022, indicating an improvement of 8.5%[4] - The company reported a net loss attributable to owners of HKD 57,671,000 for the nine months ended September 30, 2023, compared to a loss of HKD 71,017,000 in the same period of 2022, showing a reduction of 18.7%[4] - The company reported a total comprehensive income of HKD 169,586,000 for the nine months ended September 30, 2023, compared to HKD 61,683,000 in the previous year, indicating a substantial increase of 174.5%[4] - The company’s basic and diluted loss per share for the nine months ended September 30, 2023, was HKD 0.59, compared to HKD 0.73 in the same period of 2022, showing an improvement of 19.2%[4] - The company’s financial position as of September 30, 2023, shows total equity of HKD 4,877,036,000, an increase from HKD 4,685,791,000 a year earlier[12] Sales and Revenue Sources - Lithium battery sales reached HKD 138,435,000 for the nine months ended September 30, 2023, up 65.4% from HKD 83,791,000 in the previous year[6] - The lithium-ion battery factory contributed approximately 78.5% of the total revenue, while the ride-hailing service acquired in France accounted for 20.2%[33] - The ride-hailing service, Caocao, generated revenue of approximately HKD 37.8 million, with around 500,000 app downloads and 150,000 registered users as of September 2023[34] Expenses and Costs - The financial costs for the nine months ended September 30, 2023, totaled HKD 7,273,000, an increase of 23.5% from HKD 5,888,000 in the previous year[8] - The company’s administrative expenses decreased to HKD 79,512,000 for the nine months ended September 30, 2023, from HKD 72,730,000 in the previous year, reflecting a rise of 9.8%[4] - Operating expenses for the period were approximately HKD 7.8 million, a significant decrease from HKD 50.8 million in the same period last year[35] Business Operations and Challenges - The company is facing challenges in securing large orders from major automakers due to low production capacity, which affects utilization rates and average costs[13] - The company is actively negotiating with potential new customers in the energy storage sector and manufacturers transitioning from lead-acid to lithium batteries[13] - The company has decided to sell its battery-sharing business related to the GETI electric bicycle brand, as further capital allocation to this business is no longer in the best interest of the group[38] Investments and Projects - The total investment for the SAM project in Brazil is estimated at USD 3.01 billion, with an annual production capacity of 27,500,000 tons of iron concentrate[20] - The Anghelas lithium salt lake project aims to produce 50,000 tons of battery-grade lithium carbonate equivalent annually, with a total investment of about $700 million and a production cost of approximately $5,000 per ton[25] - The company has identified two investment opportunities related to lithium salt lake projects in Argentina and is finalizing legal due diligence[39] - The company is reviewing several lithium mica and spodumene projects in Africa and Brazil, exploring potential partnerships for extraction[39] Corporate Governance and Shareholding - As of September 30, 2023, the company has complied with all code provisions set out in the GEM Listing Rules Appendix 15[39] - As of September 30, 2023, the major shareholders include Li Shufu with 6,071,568,675 shares, representing 61.61% ownership[48] - Geely Group Limited holds 4,067,829,000 shares, accounting for 41.28% of the total shares[48] - The acquisition agreement completed on January 16, 2023, resulted in Geely Group obtaining legal control of the target company with a total ownership of approximately 62.40%[46] Regulatory Compliance - The audit committee reviewed the unaudited performance for the nine months ending September 30, 2023, confirming compliance with applicable accounting standards[53] - The company’s articles of association were amended to comply with the latest regulations and were approved by shareholders on June 2, 2023[50] - There were no competitive business interests held by directors or major shareholders as of September 30, 2023[51]

Financial Performance - The company reported a revenue of HKD 57,765,000 for the first half of 2023, compared to HKD 48,325,000 in the same period of 2022, representing a year-over-year increase of approximately 19.1%[6] - The gross profit for the first half of 2023 was HKD 9,440,000, up from HKD 7,700,000 in the previous year, indicating a growth of about 22.6%[6] - The company incurred a loss before tax of HKD 27,931,000 for the first half of 2023, an improvement from a loss of HKD 34,758,000 in the same period of 2022, reflecting a reduction of approximately 19.5%[6] - The total comprehensive income for the first half of 2023 was HKD 210,643,000, compared to a loss of HKD 513,983,000 in the same period of 2022, marking a significant turnaround[6] - The company reported a basic loss per share of HKD 0.25 for the first half of 2023, an improvement from HKD 0.34 in the same period of 2022[6] - The company reported a net loss of HKD 38,759,000 for the six months ended June 30, 2023[9] - The company recorded a loss attributable to owners of HKD 38.8 million for the six months ended June 30, 2023, a significant decrease from a loss of HKD 89.6 million in the same period last year[68] - The gross profit for the six months ended June 30, 2023, was approximately HKD 21.5 million, with a gross margin of 15.8%, down from a gross profit of HKD 13.5 million and a gross margin of 36.3% in the previous year[66] Assets and Liabilities - The company’s total assets as of June 30, 2023, were reported at HKD 135,921,000, compared to HKD 114,448,000 as of December 31, 2022, indicating an increase of approximately 18.7%[6] - The company’s total liabilities were HKD 2,710,394,000, with non-current liabilities at HKD 2,450,733,000[8] - The company’s total assets of the company as of June 30, 2023, were HKD 8,153,862,000, up from HKD 7,530,749,000 as of December 31, 2022[18] - The total equity attributable to owners of the company was HKD 4,707,007,000 as of June 30, 2023[9] - The company’s borrowings as of June 30, 2023, amounted to HKD 120,677,000[8] Cash Flow and Investments - Cash and cash equivalents decreased by HKD 22,244,000, ending at HKD 144,706,000[11] - The company incurred a net cash outflow from operating activities of HKD 1,922,000 for the first half of 2023[11] - The company reported a decrease in cash flow from investing activities, totaling HKD 8,241,000[11] - The total net proceeds from the placement and subscription of shares amounted to HKD 1,336 million, fully utilized by June 30, 2023[73] Market and Business Strategy - The company aims to expand its market presence and enhance its product offerings in the renewable energy sector, aligning with industry trends[5] - The company is actively pursuing new technology developments to improve operational efficiency and product innovation[5] - The company has been facing challenges in securing large orders due to low production capacity, which has resulted in higher average costs compared to competitors[49] - The company is actively engaging with potential new customers in the energy storage sector and manufacturers transitioning from lead-acid to lithium batteries[49] Production and Capacity - The company has a production capacity of 2,000,000 kWh for lithium-ion batteries at its subsidiary Zhejiang Jianyuan New Energy, which occupies approximately 130,000 square meters[50] - The company’s joint venture Shandong Jianyuan New Energy has an annual production capacity of 150,000 kWh for lithium iron phosphate batteries and 225,000 kWh for ternary lithium batteries[51] Acquisitions and Projects - The company plans to acquire approximately 38.75% equity in Tibet Summit Resources Co., Ltd. for about $350 million, focusing on lithium salt lake projects in Argentina[60] - The company has completed the acquisition of a controlling stake in Jihang International Technology Co., which provides ride-hailing services in Paris, with plans for service expansion[70] - The total contingent consideration for the acquisition of SAM is USD 390 million, with approximately USD 14.5 million in contingent liabilities as of June 30, 2023[75] Regulatory and Compliance - The company has complied with all code provisions set out in Appendix 15 of the GEM Listing Rules for the six months ended June 30, 2023[76] - The audit committee has reviewed the unaudited results for the six months ending June 30, 2023, and found them to be prepared in accordance with applicable accounting standards[108] - The company has amended its articles of association to comply with the latest laws and regulations, which was approved by shareholders[105] Shareholder Information - As of June 30, 2023, the major shareholder, Li Shufu, holds 61.61% of the company's shares, while Geely Group Limited holds 41.28%[92] - The total number of shares held by directors and key executives amounts to 80,399,189 shares, representing approximately 0.82% of the total shareholding[77] - The total number of share options that may be granted under the current share option scheme is 985,453,360 shares, which accounts for 10% of the issued share capital as of May 26, 2022[82]

Financial Performance - For the six months ended June 30, 2023, the company reported a total revenue of HKD 135,921,000, an increase of 18.9% compared to HKD 114,448,000 for the same period in 2022[5] - The gross profit for the six months ended June 30, 2023, was HKD 21,473,000, representing a 58.5% increase from HKD 13,531,000 in the previous year[5] - The net loss attributable to the company's owners for the six months ended June 30, 2023, was HKD 38,759,000, a decrease of 56.7% compared to HKD 89,621,000 for the same period in 2022[6] - The total comprehensive income for the six months ended June 30, 2023, was HKD 407,686,000, compared to HKD 216,146,000 in the same period of 2022, indicating a significant recovery[6] - The company reported a significant increase in other comprehensive income, totaling HKD 455,042,000 for the six months ended June 30, 2023, compared to HKD 307,282,000 in the previous year[5] - The company incurred a total comprehensive loss of HKD (38,759) thousand during the period, compared to a loss of HKD (89,621) thousand in the previous year[11] - The company reported a net cash outflow from operating activities of HKD (1,922) thousand, a decline from HKD 7,256 thousand in the previous year[12] - The company reported administrative expenses of HKD (6,941,000) for the six months ended June 30, 2023, slightly lower than HKD (7,424,000) in the same period of 2022, indicating cost control efforts[18] - The company reported a loss attributable to shareholders of approximately HKD 38.8 million, significantly reduced from HKD 89.6 million in the same period last year[70] Assets and Liabilities - The company's non-current assets as of June 30, 2023, amounted to HKD 7,764,728,000, an increase from HKD 7,089,984,000 as of December 31, 2022[7] - Current assets decreased to HKD 389,134,000 as of June 30, 2023, down from HKD 440,765,000 at the end of 2022[7] - The company’s total assets less current liabilities stood at HKD 7,825,087,000 as of June 30, 2023, compared to HKD 7,346,617,000 at the end of 2022[7] - The company’s total liabilities amounted to HKD 2,710,394 thousand, up from HKD 2,639,610 thousand, indicating a rise of 2.68%[10] - The company’s deferred tax liabilities increased to HKD 2,450,733 thousand from HKD 2,215,014 thousand, marking an increase of 10.63%[10] - The company’s financial liabilities, including borrowings, were HKD 15,773,000 as of June 30, 2023, slightly down from HKD 16,508,000 at the end of 2022[7] - The total liabilities for the reportable segments decreased to HKD 581,383,000 as of June 30, 2023, from HKD 600,965,000 as of December 31, 2022, showing a reduction of about 3.2%[18] Revenue Sources - Revenue from lithium battery sales reached HKD 101,333 thousand, a significant increase from HKD 34,614 thousand in the previous year, representing a growth of 192%[14] - Total revenue for the period was HKD 135,921 thousand, compared to HKD 37,232 thousand in the previous year, indicating a year-over-year increase of 265%[14] - The lithium-ion battery factory in Zhejiang contributed approximately 78.1% of the total revenue, while the ride-hailing service acquired in France accounted for 20.1%[67] - Revenue from external customers in China for the six months ended June 30, 2023, was HKD 9,780,000, down from HKD 13,265,000 in 2022, indicating a decline of approximately 26.5%[19] Investments and Projects - The group has invested approximately $159.27 million in the SAM project in Brazil, including $80.85 million for preliminary work and $78.42 million for acquisition costs[55] - The SAM project has proven and probable reserves of 3.58 billion tons (16.63%) and 1.56 billion tons (16.05%) respectively[56] - The company is developing a lithium project at the Anhelas lithium salt lake with a resource estimate of 2.05 million tons of lithium carbonate equivalent[65] - The company is preparing to implement detailed exploration for the Alizaro lithium salt lake project, which may have a resource potential of over 10 million tons of lithium equivalent[66] - The company plans to provide up to $600 million in project financing specifically for the construction and operation of the Angelis lithium salt lake project[62] Strategic Developments - The company completed the acquisition of a controlling stake in Jihang International Technology, which operates ride-hailing services under the Caocao brand in France[53] - As of June 2023, the Caocao brand has approximately 500,000 app downloads and 150,000 registered users[53] - The GETI brand operates battery-sharing services for electric bicycles in China, with 448 battery swap stations and 286 package users as of June 2023[54] - The company has established a long-term agreement with Ningbo Geely for battery testing services and support[102] Financial Management - The company’s financial risk management aims to minimize financial market risks to maintain short to medium-term cash flow[46] - The company has no active foreign currency hedging policy, indicating low exposure to foreign exchange risk[47] - The company raised a total of HKD 1,336 million from the placement and subscription of shares, with HKD 950 million intended for lithium-ion battery capacity expansion and potential investments in the electric vehicle sector[76] Compliance and Governance - The company has complied with all GEM listing rules during the six-month period ending June 30, 2023[80] - The audit committee has reviewed the unaudited performance for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards[111] - The company has adopted the GEM listing rules regarding directors' trading standards and confirmed compliance within the last six months[110]