Financial Performance - The company reported revenue of HKD 78,156 thousand for Q1 2023, a significant increase from HKD 11,865 thousand in Q1 2022, representing a growth of 558%[10] - The gross profit for Q1 2023 was HKD 12,033 thousand, compared to HKD 7,428 thousand in the same period last year, indicating a year-over-year increase of 62%[7] - The company incurred a loss before tax of HKD 19,425 thousand in Q1 2023, an improvement from a loss of HKD 56,378 thousand in Q1 2022[7] - The company reported a total comprehensive income of HKD 197,043 thousand for Q1 2023, compared to HKD 730,129 thousand in Q1 2022[7] - The loss attributable to owners of the company for Q1 2023 was HKD 14,278 thousand, an improvement from HKD 56,806 thousand in Q1 2022[7] - The company’s basic loss per share for Q1 2023 was HKD 0.15, compared to HKD 0.58 in Q1 2022[7] - The total comprehensive income for the three months ended March 31, 2023, was HKD 197,043,000, compared to a total comprehensive loss of HKD 56,378,000 for the same period in 2022[16] Revenue Sources - Lithium-ion battery sales contributed HKD 59,731 thousand to revenue in Q1 2023, up from HKD 10,575 thousand in Q1 2022, marking a growth of 465%[10] - The company generated HKD 14,176 thousand from ride-hailing services and related income in Q1 2023, which was not reported in the previous year[10] - Other income, including bank interest and government grants, totaled HKD 6,354 thousand in Q1 2023, compared to a loss of HKD 42,939 thousand in Q1 2022[11] - The lithium-ion battery factory in Zhejiang contributed approximately 79.5% of the group's revenue, while the ride-hailing service acquired in France accounted for 18.1%[30] - The ride-hailing service, Caocao, generated revenue of approximately HKD 14.2 million but incurred losses due to the impact of the European war and strikes in France[30] - The battery-sharing business GETI in Jiangsu, China, reported revenue of approximately HKD 1.9 million, up from HKD 1.3 million year-on-year[31] Investments and Projects - As of March 31, 2023, the company has invested approximately $159.1 million in the SAM project, with a cumulative funding of $80.7 million allocated for the Brazilian iron ore project[21] - The SAM project aims to produce 27.5 million tons of iron concentrate annually, with an average grade of 66.2% over the first 18 years of operation[21] - The total investment for the SAM project is projected to be $3.01 billion, with operating costs expected to be approximately $18.9 per ton for the first 18 years, rising to about $24.4 per ton thereafter[22] - The company has signed a letter of intent to acquire approximately 38.75% equity in Tibet Summit Resources Co., Ltd. for about $350 million, focusing on lithium brine projects in Argentina[24] - The Anghelas lithium brine project is expected to produce 50,000 tons of battery-grade lithium carbonate equivalent annually, with a total investment of around $700 million[26] - The lithium resource at the Anghelas project is estimated at 2.05 million tons of lithium carbonate equivalent, with an average lithium concentration of approximately 490 mg/L[26] - The company plans to provide up to $600 million in project financing specifically for the development and operation of the Anghelas lithium brine project[24] - The Arizaro lithium brine project covers an area of 1,970 square kilometers and is located in the lithium-rich "Lithium Triangle" of South America, with potential resources exceeding 10 million tons of lithium equivalent[27] Corporate Strategy and Market Position - The company plans to continue expanding its market presence and developing new technologies in the renewable energy sector[6] - The company expects the new energy vehicle industry to continue its high growth trend, with new energy vehicle sales projected to reach 5 million units by 2025[33] - The group plans to focus on expanding its battery-sharing business and exploring opportunities in the electric bicycle and commercial vehicle sectors[35] - The overall business strategy focuses on dual-track development in the new energy vehicle sector and resource field to create value for shareholders[36] Shareholder Information - As of March 31, 2023, the major shareholders include Li Shufu with approximately 61.61% ownership and Geely Group Holdings with approximately 41.28% ownership[45] - The company has a total of 8,750,000 stock options granted under the current stock option plan, with no options exercised during the period[41] - The unconditional mandatory general offer was made at HKD 0.08 per share, which ended on March 16, 2023, after the acquisition of 62.40% of the company's shares[42] Compliance and Governance - The company complied with all code provisions set out in the GEM Listing Rules Appendix 15 during the three months ended March 31, 2023[36] - The audit committee has reviewed the unaudited performance for the three months ended March 31, 2023, and confirmed compliance with applicable accounting standards[49] - No significant contracts were found where directors had a direct or indirect substantial interest during the review period[48] - There were no competitive business interests held by directors or major shareholders as of March 31, 2023[47] - The company has adopted the standards for securities trading by directors as per GEM Listing Rules 5.48 to 5.67[49] Operational Challenges - The company is actively pursuing environmental permits for the SAM project, despite delays caused by regulatory challenges[23] - Administrative expenses increased by approximately HKD 17.4 million or 112.6% due to rising employee and R&D costs[31] - The company's interest expenses on bank borrowings decreased to HKD 1,860,000 in Q1 2023 from HKD 2,009,000 in Q1 2022, reflecting a reduction of approximately 7.4%[12] - The group’s cash and cash equivalents balance was approximately HKD 176.1 million as of March 31, 2023, compared to HKD 165.5 million at the end of December 2022[31] - The capital debt ratio was 3.4% as of March 31, 2023, slightly up from 3.2% at the end of December 2022[32]

Financial Performance - The company reported revenue of HKD 78,156,000 for the three months ended March 31, 2023, compared to HKD 11,865,000 for the same period in 2022, representing a significant increase of 558%[4] - The gross profit for the first quarter of 2023 was HKD 12,033,000, up from HKD 7,428,000 in the previous year, indicating a growth of 62%[4] - The company incurred a loss before tax of HKD 19,425,000 for the three months ended March 31, 2023, a reduction in loss compared to HKD 56,378,000 for the same period in 2022, reflecting an improvement of 65%[4] - The company reported a total comprehensive income of HKD 197,043,000 for the three months ended March 31, 2023, compared to HKD 730,129,000 for the same period in 2022, showing a decrease of 73%[4] - Basic loss per share for the first quarter of 2023 was HKD 0.15, an improvement from HKD 0.58 in the same quarter of 2022[11] - The company reported other operating income of HKD 6,354,000 for Q1 2023, compared to a loss of HKD 42,939,000 in Q1 2022, indicating a turnaround[7] - The company recorded a gross profit of approximately HKD 12 million for the period, with a gross margin of 15.4%, a decrease from 62.6% in the previous year[25] - The company reported a loss attributable to owners of approximately HKD 14,300,000, significantly reduced from a loss of HKD 56,800,000 in the previous period[27] Revenue Sources - Lithium-ion battery sales reached HKD 59,731,000 in Q1 2023, a substantial increase from HKD 10,575,000 in Q1 2022, marking a growth of 465%[6] - The lithium-ion battery factory in Zhejiang contributed approximately 79.5% of the total revenue, while the ride-hailing service acquired in France accounted for 18.1%[25] - As of March 31, 2023, the company has confirmed revenue of approximately HKD 14.2 million from its ride-hailing service, Caocao, which has around 150,000 registered users[16] - The ride-hailing service, Caocao, generated revenue of approximately HKD 14.2 million but faced losses due to economic impacts from the European war and strikes in France[25] Investments and Projects - The company has invested approximately $159.1 million in the SAM project, which aims to produce 27.5 million tons of iron concentrate annually with an average grade of 66.2% over the first 18 years[18] - The total investment for the SAM project is projected to be $3.01 billion, with operational costs expected to be approximately $18.9 per ton for the first 18 years, rising to $24.4 per ton thereafter[19] - The company plans to invest approximately USD 350 million to acquire a 38.75% stake in Tibet Summit Resources, which holds 100% interests in lithium brine projects in Argentina[21] - The total investment for the Anghelas lithium project is estimated at around USD 700 million, with a production cost of approximately USD 5,000 per ton of lithium carbonate[23] - The Anghelas lithium brine project has a lithium resource of 2.05 million tons of lithium carbonate equivalent, with an average lithium concentration of 490 mg/L[23] - The company is exploring investment opportunities in two lithium salt lake projects in Argentina, with due diligence and formal agreement discussions ongoing[31] - The company is considering strategic partnerships or overall sales for its iron ore project in Brazil, which is still progressing towards self-development[30] Operational Metrics - Financial costs for the first quarter of 2023 were HKD 2,487,000, an increase from HKD 2,091,000 in the same period of 2022[8] - The company has not recognized any income tax expense for the three months ended March 31, 2023, due to no taxable profits generated in Hong Kong[9] - Cash and cash equivalents as of March 31, 2023, amounted to approximately HKD 176,100,000, up from HKD 165,500,000 as of December 31, 2022[27] - The capital debt ratio was 3.4% as of March 31, 2023, compared to 3.2% as of December 31, 2022[28] Shareholder Information - The controlling shareholder, Geely Group Limited, acquired a total of 68.86% of the issued share capital of the target company, resulting in a legal control of approximately 62.40% of the company[38] - As of March 31, 2023, Li Shufu holds a total of 6,071,568,675 shares, representing approximately 61.61% of the company[41] - Geely Group Limited holds 41.28% of the company’s shares, while Hongqiao Capital Limited holds 41.25%[41] Corporate Governance - The audit committee reviewed the unaudited results for the three months ended March 31, 2023, confirming compliance with applicable accounting standards[45] - No significant contracts were reported where directors had a direct or indirect interest during the review period[44] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the three-month period[45] - The company has adopted the GEM Listing Rules regarding the standards of conduct for directors' securities transactions[45] - No competitive business interests were reported by directors or controlling shareholders during the three-month period[43]

Financial Performance - The company reported a revenue of HKD 137.7 million for the year ended December 31, 2022, a decrease of 71.3% compared to HKD 478.9 million in the previous year[21]. - The loss attributable to owners of the company was approximately HKD 199.2 million, compared to a profit of HKD 88.5 million for the year ended December 31, 2021[22]. - The gross profit decreased to HKD 24.9 million from HKD 115.1 million in the previous year[22]. - The company recognized a provision related to government subsidies amounting to HKD 151.8 million and a net loss of HKD 63 million from financial assets measured at fair value[22]. - The impairment of property, plant, and equipment was approximately HKD 30 million, compared to HKD 18.2 million in the previous year[22]. - The lithium-ion battery segment reported revenue of approximately HKD 109.1 million for the year ended December 31, 2022, a decrease of about 76.9% from HKD 473.1 million in the previous year[31]. - The lithium-ion battery segment incurred a loss of approximately HKD 174.1 million, compared to a profit of HKD 17.2 million in the previous year, primarily due to reduced revenue and a provision of approximately HKD 151.8 million for government repayments[31]. - The battery-sharing business under the "GETI" brand had revenue of approximately HKD 7.2 million, up from HKD 5.8 million in the previous year, but incurred a loss of approximately HKD 39.1 million, an increase from HKD 15.3 million in the previous year[32]. - The company's cash and cash equivalents were approximately HKD 165.5 million, down from HKD 396.4 million in the previous year, mainly due to loan repayments[94]. - The company's debt-to-equity ratio improved to 3.2% as of December 31, 2022, compared to 6.1% in the previous year, due to the repayment of approximately HKD 123.8 million in loans[94]. Business Operations - The lithium-ion battery factory in Zhejiang contributed approximately 79.3% of the total revenue, while the recently acquired ride-hailing service in France accounted for 15.5%[21]. - The ride-hailing service, Caocao, had approximately 500,000 app downloads and 147,000 registered users as of December 2022, generating revenue of about HKD 21.4 million since the acquisition[21]. - The GETI battery-sharing business in Jiangsu had 448 battery swap stations and 960 subscription users as of December 2022, a significant decrease from 676 stations and 2,242 users in December 2021[22]. - The company plans to reverse the declining trend of GETI by utilizing a franchise model in 2023[22]. - The company completed the acquisition of a controlling stake in Jihang International Technology Co., Ltd. on August 10, 2022, which owns around 300 zero-emission LEVC TX range-extended electric vehicles[25]. - The company aims to expand its ride-hailing services to other countries and major cities in Europe, positioning it as a significant revenue source[25]. - The company is actively pursuing the SAM iron ore project in Brazil, which has received broad support from local communities and businesses despite facing regulatory challenges[26]. - The company is reviewing several independent third-party projects in the lithium battery supply chain, with one currently in the due diligence stage[26]. - The company plans to explore the electric bicycle and commercial vehicle sectors, achieving positive progress in customer acquisition[24]. Market Trends and Projections - The sales volume of new energy vehicles in China reached 6.9 million units for the year ended December 31, 2022, accounting for approximately 25.6% of total new car sales[24]. - The company anticipates that the electric vehicle industry in China will continue to grow, with new energy vehicle sales expected to reach approximately 5 million units by 2025, representing about 20% of total new car sales[101]. - The five-year forecast anticipates revenue growth in 2023 compared to 2022, peaking in 2024, followed by a significant decline in 2025 due to the end of a major product cycle[64]. - The expected revenue growth rate beyond the five-year budget plan is projected at 0%[64]. Strategic Initiatives - The company is actively exploring potential projects in the new energy and mining sectors for mergers, investments, and collaborations to create shareholder value[103]. - The overall business strategy focuses on dual-track development in electric vehicle-related businesses and resource sectors to enhance shareholder value[103]. - The company aims to explore new cooperation opportunities with New Geely and other companies[79]. - The company is implementing a cautious strategy by outsourcing parts of the production process to mitigate risks associated with technological advancements and production line obsolescence[108]. Environmental, Social, and Governance (ESG) - The company emphasizes environmental protection, resource conservation, and sustainable development as core values[198]. - The company integrates Environmental, Social, and Governance (ESG) principles into its risk management system[198]. - The board presented the group's ESG report, reviewing measures, plans, and performance related to environmental, labor practices, and sustainable development[199]. - The ESG governance framework consists of the board and an ESG working group, ensuring alignment with strategic growth[199]. - The working group is composed of representatives from various departments, assisting the board in monitoring ESG issues and ensuring compliance with relevant laws[199]. - The board conducts annual assessments to verify the effectiveness of risk management and internal controls related to ESG[199]. Corporate Governance - The board of directors includes executive directors and independent non-executive directors, with specific roles outlined in the report[126][127]. - The company has established service contracts with executive directors, which will continue unless terminated with a three-month written notice[128]. - The board consists of seven members, with more than one-third being independent non-executive directors, ensuring a balance of power and independence[163]. - The company has established a risk management framework to identify and mitigate significant risks, including ESG risks, with annual reviews conducted[177]. - The company has adopted a whistleblowing policy and an anti-corruption policy, which are disclosed on the company's website[184]. Shareholder Information - The company’s distributable reserves as of December 31, 2022, amounted to approximately HKD 1,177,581,000, a decrease from HKD 1,282,318,000 in 2021[156]. - The top five customers accounted for 71.6% of the total revenue, while the top five suppliers represented 69.7% of total procurement during the fiscal year ending December 31, 2022[160]. - Major shareholder Hongqiao Capital Limited holds 4,065,000,000 shares, representing 41.25% of the total shares[148]. - The company has entered into a conditional sale agreement to transfer 38.09% and 30.77% of its controlling interest to Geely Group Limited and Li Xingxing, respectively[150]. - Following the completion of the sale agreement, the offeror gained statutory control of the company with approximately 62.40% ownership[150].

Financial Performance - The company's total revenue for the year ended December 31, 2022, was HKD 137,656,000, a decrease from HKD 478,917,000 in the previous year, representing a decline of approximately 71.2%[5] - Gross profit for the year was HKD 24,935,000, down from HKD 115,126,000 in the previous year, indicating a decrease of about 78.3%[5] - The company reported a net loss of HKD 301,861,000 for the year, compared to a profit of HKD 88,653,000 in the previous year, marking a significant shift in performance[5] - Total comprehensive loss for the year was HKD 301,861,000, compared to a comprehensive income of HKD 88,653,000 in the previous year[6] - The company reported a basic loss per share of HKD 2.05, compared to earnings of HKD 0.91 per share in the previous year[6] - The company reported a profit for the year of HKD 88,500,000 in 2022[10] - The company reported a loss before tax of HKD 199,156,000 for the year 2022, compared to a profit of HKD 88,500,000 in 2021[32] - The group reported a revenue of HKD 137.7 million for the year ended December 31, 2022, a decrease of 71.3% compared to HKD 478.9 million in the previous year[96] - The loss attributable to the owners of the company was approximately HKD 199.2 million, compared to a profit of HKD 88.5 million for the year ended December 31, 2021[96] Assets and Liabilities - Non-current assets increased to HKD 7,089,984,000 from HKD 6,621,889,000, reflecting a growth of approximately 7.1%[7] - Current assets decreased to HKD 440,765,000 from HKD 686,759,000, a decline of about 35.8%[7] - The company's cash and cash equivalents dropped significantly to HKD 165,452,000 from HKD 396,387,000, a decrease of approximately 58.3%[7] - The total liabilities decreased to HKD 184,132,000 from HKD 264,697,000, indicating a reduction of about 30.4%[7] - Non-current liabilities increased to HKD 2,639,610,000 in 2022 from HKD 2,358,160,000 in 2021, representing an increase of approximately 11.9%[8] - Deferred tax liabilities rose to HKD 2,215,014,000 in 2022, up from HKD 2,090,628,000 in 2021, marking an increase of about 6.0%[8] - Total equity increased to HKD 4,707,007,000 in 2022 from HKD 4,685,791,000 in 2021, reflecting a growth of approximately 0.5%[9] - The company's total liabilities and equity amounted to HKD 7,562,937,000 as of December 31, 2022[10] Revenue Streams - In 2022, lithium-ion battery sales generated revenue of HKD 95,727,000, a significant decrease of 79.8% compared to HKD 473,087,000 in 2021[16] - Battery testing service revenue amounted to HKD 13,370,000 in 2022, with no revenue reported in 2021[16] - Revenue from battery replacement services was HKD 4,124,000 in 2022, compared to HKD 5,830,000 in 2021[16] - Platform and ride-hailing service revenue reached HKD 19,079,000 in 2022, with no prior year revenue reported[16] - Advertising and related revenue was HKD 372,000 in 2022, also with no prior year revenue reported[16] - Revenue from major customer A1 contributed 98,557 thousand HKD in 2022, down from 462,375 thousand HKD in 2021, representing a decline of approximately 78.7%[25] Operational Changes - The company is engaged in investment holding, with subsidiaries involved in mineral resource trading and lithium-ion battery production[11] - The company has acknowledged the high investment risk associated with its listing on the GEM market, emphasizing the need for careful consideration by potential investors[3] - The company began providing ride-hailing and related services after acquiring Jihang International Technology Limited, marking a new operational segment[18] - The company has identified its operating segments based on product and service nature, including lithium battery production and ride-hailing services[18] Impairment and Losses - The company incurred impairment losses on property, plant, and equipment amounting to 18,244 thousand HKD in 2022, reflecting challenges in asset valuation[21] - The company recognized an impairment loss of HKD 20,725,000 related to cash-generating units associated with lithium-ion battery production, compared to HKD 18,244,000 in 2021[34] - The company incurred a loss of HKD 30,022,000 from the impairment of property, plant, and equipment in 2022, compared to HKD 18,244,000 in 2021, representing a rise of approximately 64.5%[27] - The group recognized a loss attributable to shareholders of approximately HKD 199,200,000 for the year ended December 31, 2022, compared to a profit of HKD 88,500,000 in the previous year, mainly due to provisions related to government subsidies and financial asset losses[100] Investments and Acquisitions - The company acquired an additional 15.56% stake in Jihang International, making it a subsidiary[30] - The cash consideration for the step acquisition was HKD 29,877,000, completed on August 10, 2022, resulting in a 35.56% ownership stake in Ji Xing International[58] - The identifiable net assets acquired had a total fair value of HKD 160,556,000, with non-controlling interests amounting to HKD 103,462,000[59] - The company completed the acquisition of a controlling stake in Jihang International Technology Limited on August 10, 2022, which operates the Caocao ride-hailing service in France[96] Future Outlook and Strategy - The company expects that the adoption of new or revised Hong Kong Financial Reporting Standards will not have a significant impact on future consolidated financial statements[14] - The group plans to focus on reducing scale and simplifying operations in 2023 due to ongoing challenges and uncertainties in the economic environment[101] - The company anticipates continued high growth in the new energy vehicle industry in the coming years[109] - The group is actively identifying and reviewing potential projects in the new energy and mining sectors to create value for shareholders through mergers, investments, and collaborations[112] Corporate Governance and Compliance - The group emphasizes high standards of corporate governance and has complied with GEM listing rules, except for the internal audit function[120] - The Audit Committee held four meetings during the year to review the company's 2021 full-year performance, 2022 interim performance, quarterly performance, and internal control procedures and risk management systems[122] - The Audit Committee confirmed that the performance results were prepared in accordance with applicable accounting standards and regulations, with sufficient disclosure[122]

Financial Performance - For the three months ended September 30, 2022, the company reported a revenue of HKD 60,065,000, a decrease of 50.7% compared to HKD 121,868,000 in the same period of 2021[5] - The gross profit for the same period was HKD 15,495,000, down 57.2% from HKD 36,183,000 year-over-year[5] - The company recorded a profit before tax of HKD 14,959,000, compared to a loss of HKD 6,449,000 in the previous year[5] - Lithium battery sales for the nine months ended September 30, 2022, were HKD 85,854,000, a decline of 73.4% from HKD 322,644,000 in the same period of 2021[10] - The company reported a net profit attributable to owners of HKD 18,604,000 for the third quarter, compared to a loss of HKD 16,237,000 in the same quarter of the previous year[5] - The total comprehensive income for the period was a loss of HKD 154,463,000, compared to a loss of HKD 400,629,000 in the same period last year[5] - The company reported a loss attributable to owners of HKD 71,017,000 for the nine months ended September 30, 2022, compared to a profit of HKD 108,736,000 in the same period of 2021[21] - For the third quarter of 2022, the company reported revenue of HKD 97.3 million, a decrease of 70.3% compared to HKD 327.1 million in the same period last year[54] - The loss attributable to the company's owners for the period was approximately HKD 71 million, compared to a profit of HKD 108.7 million in the previous year[54] - Gross profit for the period was approximately HKD 29,000,000, with a gross margin of 29.8%, an increase from 28.7% in the previous year[56] - The company recorded a net loss attributable to shareholders of approximately HKD 71,000,000 for the period, compared to a profit of HKD 108,700,000 in the same period last year[60] Expenses and Costs - The administrative expenses for the nine months ended September 30, 2022, were HKD 72,730,000, an increase of 23.4% from HKD 58,946,000 in the same period of 2021[5] - Financial costs for the nine months ended September 30, 2022, were HKD 5,888,000, a decrease of 21.2% from HKD 7,474,000 in the same period of 2021[13] - Financial costs decreased to approximately HKD 5,900,000, down from HKD 7,500,000 in the previous year, due to reduced borrowings[59] Investments and Acquisitions - The company acquired additional equity in Jihang International Technology Co., Ltd. for approximately HKD 30,000,000, leading to a gain of HKD 30,877,000 recognized in the financial statements[12] - The company completed the acquisition of 32% of the target company for RMB 25.6 million (approximately HKD 30 million) on June 10, 2022[43] - Following the completion of the acquisition and capital increase agreements, the company will hold a 35.56% stake in the target company[45] - The company completed the acquisition of a controlling stake in Caocao International on August 10, 2022, which operates ride-hailing services in Paris, generating approximately HKD 6,900,000 in revenue from August 10 to September 30, 2022[55] - The company has invested a total of approximately $157.5 million in the SAM project, including $79.9 million in funding and $78.4 million in acquisition costs[31] Business Operations - The lithium-ion battery business has been supplying batteries to multiple high-end vehicle models since 2018, including models from Volvo and Lynk[24] - Zhejiang Hengyuan New Energy, a subsidiary, has a maximum annual production capacity of approximately 2,000,000 kWh of ternary lithium-ion batteries[25] - Shandong Hengyuan New Energy, an associate company, currently has an annual production capacity of 150,000 kWh for lithium iron phosphate batteries and 225,000 kWh for ternary lithium-ion batteries[26] - The company is actively negotiating with potential new customers in the automotive and energy storage sectors despite challenges in customer acquisition[24] - The average cost of batteries produced by the company is higher than that of competitors due to insufficient production capacity and low utilization rates[24] - The company has maintained stable business relationships with major suppliers and customers in the industry, which poses challenges for diversifying its customer base[24] - As of September 30, 2022, GETI operates 676 battery swapping stations and has 1,562 package users in China[28] - The GETI battery-sharing business in China reported revenue of approximately HKD 4,500,000 for the period ending September 30, 2022, with no growth compared to the same period last year[55] Project Developments - The total investment for the SAM project in Brazil is projected to be $2.78 billion, with an average operating cost of $27.6 per ton of iron concentrate for the first 18 years[34] - The project is expected to create approximately 6,200 direct jobs during the construction phase and around 1,100 direct jobs during the operational phase, along with 5,600 indirect jobs[32] - The average iron concentrate grade produced in the first 18 years of the SAM project is estimated to be 66.2%[31] - The environmental permit process for the SAM project has seen positive progress, with the project being designated as a priority by the Brazilian federal government[35] - Approximately 1,150 attendees participated in two public hearings regarding the environmental permit for the SAM project, showing strong local support[37] - The updated comprehensive economic feasibility analysis (PIAE) for the SAM project was approved by the Brazilian National Mining Agency (ANM) on May 22, 2022[39] - The expected FOB offshore cost for the first 18 years of the SAM project is approximately $40.9 per ton, increasing to $47.1 per ton thereafter[34] - The SAM project plans to incorporate 5G technology in mining operations and aims to utilize renewable energy for project power supply[41] - The company is actively advancing the SAM iron ore project despite challenges, with broad support from local communities and businesses in Brazil and China[66] Shareholder Information - As of September 30, 2022, the total number of shares held by major shareholders includes 4,065,000,000 shares held by Hongqiao Capital, representing 41.25% of the total shares[78] - The company’s chairman, He Xuechu, holds a total of 4,145,399,189 shares, accounting for 42.07% of the total shares[78] - The company has complied with all code provisions set out in the GEM Listing Rules Appendix 15 during the nine months ended September 30, 2022[70] - The company’s current share option plan was adopted on May 26, 2022, following the expiration of the previous plan on May 20, 2022[75] - As of September 30, 2022, there are 8,750,000 share options granted under the old share option plan that remain unexercised[77] Future Outlook - The company anticipates continued high growth in the new energy vehicle industry, with new vehicle sales expected to reach around 20% of total car sales by 2025[64] - Following the acquisition of Caocao International, the company plans to expand its services to other cities in France and Europe, positioning ride-hailing as a significant revenue source[65] - The sales framework agreement with Zhejiang Geely Holdings Group has an annual cap of RMB 300 million for the year ending December 31, 2022[84] - Sales under the sales framework agreement amounted to approximately HKD 77 million for the nine months ended September 30, 2022[86] - The annual cap for the year ending December 31, 2023, is set at RMB 350 million[84]

Financial Performance - For the six months ended June 30, 2022, the company reported total revenue of HKD 37,232,000, a decrease of 81.9% compared to HKD 205,286,000 for the same period in 2021[7] - The gross profit for the same period was HKD 13,531,000, down 76.6% from HKD 57,673,000 in 2021[7] - The company incurred a loss before tax of HKD 91,136,000, compared to a profit of HKD 139,227,000 in the previous year, representing a significant decline[7] - The net loss attributable to owners of the company for the six months was HKD 89,621,000, compared to a profit of HKD 124,973,000 in 2021[7] - The total comprehensive income for the six months ended June 30, 2022, was HKD 219,179,000, compared to HKD 322,975,000 for the same period in 2021, reflecting a decrease of approximately 32%[10] - The group incurred a segment loss of HKD 14,869,000 for the first half of 2022, compared to a profit of HKD 26,729,000 in the same period of 2021[26] - Revenue from external customers in China dropped to HKD 13,265,000 in 2022 from HKD 123,740,000 in 2021, reflecting a decline of 89.3%[27] - The company reported a decrease in battery replacement service revenue to HKD 2,618,000, down from HKD 3,108,000 in the previous year, representing a decline of approximately 16%[18] Assets and Liabilities - As of June 30, 2022, total assets amounted to HKD 7,088,846,000, an increase from HKD 6,621,889,000 at the end of 2021[8] - The company reported a total equity of HKD 4,901,937,000, up from HKD 4,685,791,000 at the end of 2021[8] - The total assets for the reportable segments as of June 30, 2022, were HKD 7,466,053,000, a decrease from HKD 7,800,520,000 as of June 30, 2021[22] - The company’s total liabilities for the reportable segments as of June 30, 2022, were HKD 482,930,000, compared to HKD 552,058,000 as of June 30, 2021, reflecting a decrease of approximately 12.5%[22] - The total liabilities from borrowings as of June 30, 2022, were RMB 271,519,000, a decrease of 4.5% from RMB 284,404,000 as of December 31, 2021[49] Cash Flow and Financial Management - The net cash generated from operating activities for the first half of 2022 was HKD 7,256,000, a significant improvement from a net cash used of HKD 28,798,000 in the first half of 2021[12] - The company’s net cash used in financing activities for the first half of 2022 was HKD 5,311,000, a significant improvement from HKD 69,401,000 in the same period of 2021[12] - The company’s cash flow management aims to minimize financial market risks while generating long-term returns through managing long-term financial investments[57] - The company does not currently have a foreign currency hedging policy, as it holds most financial assets/liabilities in its functional currency, resulting in low foreign exchange risk[58] - The company faces minimal cash flow interest rate risk, as it does not have significant floating-rate financial assets or liabilities[59] Strategic Focus and Future Plans - The company plans to focus on new energy and diversified businesses as part of its future strategy[3] - The company is exploring market expansion opportunities and potential mergers and acquisitions to enhance growth[3] - The company anticipates continued high growth in the new energy vehicle industry, with new energy vehicle sales expected to reach about 20% of total new car sales by 2025, equating to 5 million vehicles[107] - The company is actively pursuing mergers, investments, and collaborations in areas such as smart vehicle cockpits, automotive chips, electric control, and autonomous driving[109] Project Developments - The total investment for the SAM project in Brazil is expected to be $2.78 billion, with an operational cost of approximately $27.6 per ton of iron concentrate for the first 18 years[73] - The SAM project aims for an annual dry basis iron concentrate production of 27,500,000 tons, with an average grade of 66.2% over the first 18 years[70] - The environmental permit process for the SAM project has seen positive progress, with the project being designated as a priority by the Brazilian federal government[74] - The SAM iron ore project in Brazil has made recent positive progress, including the completion of public hearings and approval of the comprehensive economic feasibility analysis by the Brazilian National Mining Agency[110] Employee and Shareholder Information - The company had 183 employees as of June 30, 2022, down from 241 employees a year earlier[117] - The total number of shares held by major shareholders includes 4,065,000,000 shares owned by Hongqiao Capital, representing 41.25% of the total shares[128] - The company’s major shareholder, Li Shufu, holds a total of 1,953,739,675 shares, representing 19.83% of the total shares[128] - The total shareholding percentage of the company's chairman, He Xuechu, is 42.07%[128] Compliance and Governance - The company has complied with all code provisions set out in the GEM Listing Rules during the six-month period ending June 30, 2022[119] - The Audit Committee has reviewed the unaudited performance for the six months ended June 30, 2022, and believes it has been prepared in accordance with applicable accounting standards and regulations[141] - The company has adopted the GEM Listing Rules regarding the standards for directors' securities transactions, confirming compliance during the six months ended June 30, 2022[140]

Financial Performance - The company reported revenue of HKD 478.9 million for the year ended December 31, 2021, a 61% increase from HKD 297.1 million in the previous year[8]. - Profit attributable to owners of the company was approximately HKD 88.5 million, a significant decrease from HKD 1,156.6 million in 2020, primarily due to the absence of asset impairment reversals related to the SAM iron ore project[9]. - The gross profit for the year was approximately HKD 115.1 million, with a gross profit margin of 24.0%, down from 31.3% in the previous year[67]. - Other operating income for the year was approximately HKD 114.6 million, compared to an expense of HKD 47.8 million in the previous year[67]. - Financial costs for the year were approximately HKD 8.8 million, a decrease from HKD 16.8 million in the previous year, primarily due to the repayment of loans from Zhejiang Geely[68]. - The group recorded a net gain of HKD 119.8 million from financial assets measured at fair value through profit or loss, compared to a loss of HKD 50 million in the previous year[70]. - The group's cash and cash equivalents balance as of December 31, 2021, was approximately HKD 396.4 million, an increase from HKD 372.7 million as of December 31, 2020[71]. - The capital debt ratio of the group as of December 31, 2021, was 6.1%, improved from 8.9% as of December 31, 2020, due to a reduction in total loans and borrowings[71]. - The total net proceeds from the placement and subscription of new shares amounted to HKD 1,336 million, with HKD 950 million allocated for enhancing lithium-ion battery capacity and potential investments in the electric vehicle sector[73]. - The company confirmed a financial cost of approximately HKD 800,000 related to short-term loans provided to Zhejiang Hengyuan New Energy during the fiscal year ending December 31, 2021[128]. Lithium-Ion Battery Business - The lithium-ion battery business contributed approximately HKD 473.1 million in revenue, with strong export sales to Europe increasing by about HKD 116.7 million, accounting for 24.4% of total lithium battery sales[8]. - The lithium-ion battery division recorded revenue of approximately HKD 473.1 million (around RMB 392.7 million) for the year ended December 31, 2021, representing an increase of about 62.7% compared to the previous year's revenue of HKD 290.8 million (around RMB 259 million)[20]. - The profit for the lithium-ion battery division was approximately HKD 17.2 million, a turnaround from a loss of HKD 130.5 million in 2020, primarily due to reduced impairment of property, plant, and equipment and increased gross profit[20]. - The company has a production capacity of approximately 2 million kWh for lithium-ion batteries at its subsidiary Zhejiang Hengyuan New Energy, with the first production line for soft-pack batteries having started mass production in 2018[18]. - The company’s lithium-ion battery products include 12V and 48V batteries, in addition to those used for PHEVs[15]. GETI Battery-Sharing Business - The GETI battery-sharing business in China had approximately 666 battery swap stations and 2,242 package users by December 2021, with revenue of about HKD 5.8 million[8]. - The battery sharing business, branded as "GETI," has established around 666 battery swap stations and served over 1 million battery swap services since its launch in mid-2019[21]. - The company plans to expand the GETI service to other regions in China and enhance battery quality and specifications to improve user experience[8]. Market Trends and Industry Outlook - The global shift from traditional gasoline vehicles to low-emission electric vehicles is expected to continue, with new energy vehicle sales projected to reach about 20% of total new car sales by 2025[10]. - The company anticipates continued high growth in the new energy vehicle industry in the coming years due to recent policy developments in China[10]. - The group anticipates that new energy vehicle sales will reach approximately 20% of total new car sales by 2025, with an expected growth trend in the industry[78]. Strategic Initiatives and Investments - The company is actively pursuing potential acquisitions in the smart vehicle driving seat, automotive chips, and components sectors, as well as in electric control and autonomous driving technologies[13]. - The company has invested a total of approximately USD 157 million in the Brazilian iron ore project, with an expected annual production of 27.5 million tons of dry iron concentrate at an average grade of 66.2% over the first eighteen years of operation[25]. - The company is exploring strategic partnerships and investments in the electric vehicle battery sector to mitigate sales concentration risks[83]. - The company is focused on dual-track development in the new energy vehicle sector and resource areas to create shareholder value[80]. Challenges and Risks - The company is facing challenges due to increased competition and new industry benchmarks, which are expected to lead to a significant decline in revenue in the first half of 2022[12]. - The lithium-ion battery division faces risks from reliance on a few major customers, which could significantly impact financial performance if orders decrease[83]. - Rising raw material costs for lithium-ion batteries, particularly cobalt and lithium, could adversely affect profitability and financial performance[84]. Governance and Compliance - The company did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[1]. - The board of directors consists of seven members, with more than one-third being independent non-executive directors, ensuring appropriate professional qualifications and financial management expertise[139]. - The company has adopted a board diversity policy to enhance efficiency, considering factors such as gender, age, cultural background, and professional experience[149]. - The internal control system is designed to provide reasonable assurance against significant misstatements or losses, with risk management procedures established to identify, assess, and mitigate risks[153]. - The company has established a dividend policy that considers financial condition, capital levels, future cash requirements, and market conditions before declaring dividends[161]. Employee and Workplace Policies - The total number of employees as of December 31, 2021, was 198, down from 261 in 2020, indicating a reduction of approximately 24%[187]. - The overall average monthly employee turnover rate during the reporting period was approximately 29.28%[191]. - The company maintains a zero-tolerance policy towards discrimination and harassment in the workplace[195]. - The group has achieved ISO 45001:2018 certification for its occupational health and safety management system, emphasizing a "safety first" approach[200]. - The group conducts regular occupational health education training and safety drills to enhance employee awareness of safety practices[200]. Environmental, Social, and Governance (ESG) Commitment - The company emphasizes the importance of integrating Environmental, Social, and Governance (ESG) principles into its risk management system[172]. - The ESG report for the year ending December 31, 2021, highlights the company's commitment to sustainable development and transparency in its ESG measures and performance[172]. - The board of directors is responsible for overseeing the company's ESG strategy and ensuring the accuracy of the ESG report[174]. - The company maintains regular communication with shareholders and potential investors through meetings and announcements[169].

Financial Performance - For the nine months ended September 30, 2021, the total revenue was HKD 327,154,000, a significant increase of 84.4% compared to HKD 177,435,000 for the same period in 2020[8] - Lithium battery sales contributed HKD 322,644,000 to the revenue, up from HKD 172,997,000 in the previous year, reflecting a growth of 86.5%[8] - The gross profit for the nine months ended September 30, 2021, was HKD 93,856,000, compared to HKD 37,597,000 in 2020, marking an increase of 149.5%[5] - The company reported a profit before tax of HKD 132,778,000 for the nine months ended September 30, 2021, compared to a loss of HKD 168,167,000 in the same period of 2020[5] - The net profit attributable to the owners of the company for the nine months was HKD 108,736,000, a turnaround from a loss of HKD 163,021,000 in the previous year[5] - The company reported a basic and diluted earnings per share of HKD 1.12 for the nine months ended September 30, 2021, compared to a loss per share of HKD 1.67 in the previous year[5] - Profit attributable to owners for the same period was approximately HKD 108.7 million, a significant turnaround from a loss of HKD 163 million in the previous year[36] - Gross profit for the nine months was approximately HKD 93.9 million, with a gross margin of 28.7%, up from HKD 37.6 million and a gross margin of 21.2% in the previous year[33] Foreign Exchange and Financial Costs - The company incurred a foreign exchange loss of HKD 372,671,000 for the nine months, compared to a loss of HKD 1,230,772,000 in the same period of 2020[5] - The financial costs decreased to HKD 7,474,000 from HKD 13,578,000, representing a reduction of 45.0%[10] - Financial costs decreased to approximately HKD 7.5 million from HKD 13.6 million in the previous year, attributed to loan repayments[36] Market Presence and Business Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[4] - The company has been negotiating with potential new customers in the automotive and energy storage sectors to expand its market presence[17] - The company anticipates continued high growth in the electric vehicle industry over the coming years, driven by the global shift from traditional gasoline vehicles to low and zero-emission electric vehicles[40] - The company is pursuing a cautious yet proactive approach in its business operations and development, considering mergers and acquisitions in areas such as automotive chips, electric control, and autonomous driving[40] - The company’s overall business strategy focuses on dual-track development in the electric vehicle sector and resource areas to create shareholder value[41] Investments and Projects - The total investment for the SAM project is expected to be $2.24 billion, excluding pipeline and port projects led by Lotus Brasil and the Brazilian government[26] - As of September 30, 2021, the company has invested a total of approximately $156.4 million in the SAM project, including $78 million in funding for preliminary work[23] - The company aims to obtain environmental permits (LP) by Q4 2021 to Q1 2022, with the possibility of installation permits (LI) by Q2 2023 and trial production by Q2 2026[25] - The company has not yet obtained preliminary environmental feasibility approval for the SAM iron ore project, but recent positive developments in Minas Gerais have prompted continued project advancement[40] Shareholder Information - As of September 30, 2021, the company’s major shareholder, He Xuechu, holds approximately 42.07% of the shares[44] - The total shares held by Hongqiao Capital amount to 4,065,000,000, representing 41.25% of the company[50] - Zhejiang Geely Holding Group owns 100% of Geely International (Hong Kong) Limited, which holds 18.78% of the company's issued shares[51] Compliance and Governance - The company has complied with all code provisions of the GEM Listing Rules during the nine months ending September 30, 2021[41] - The board of directors confirmed compliance with the trading standards for securities transactions during the nine months ending September 30, 2021[59] - The audit committee reviewed the unaudited performance for the nine months ending September 30, 2021, ensuring compliance with applicable accounting standards[60] - The company has established an audit committee in accordance with GEM listing rules and corporate governance codes[60]