Financial Performance - The company reported revenue of HKD 205,286,000 for the six months ended June 30, 2021, compared to HKD 91,833,000 for the same period in 2020, representing a growth of 123.5%[5] - The gross profit for the six months ended June 30, 2021, was HKD 57,673,000, compared to HKD 28,495,000 in the previous year, indicating an increase of 102.5%[5] - The net loss for the six months ended June 30, 2021, was HKD 22,577,000, a significant improvement from a loss of HKD 62,693,000 in the same period of 2020[5] - The company achieved a basic and diluted loss per share of HKD 0.31 for the six months ended June 30, 2021, compared to a loss of HKD 0.53 per share in the previous year[6] - The total comprehensive income for the six months ended June 30, 2021, was HKD 337,824,000, compared to a loss of HKD 242,695,000 in the same period of 2020[6] - The company reported a profit of HKD 26,729,000 for the six months ended June 30, 2021, compared to a loss of HKD 7,557,000 in the same period of 2020[17] - The company’s total comprehensive income for the period was HKD 337,824 thousand, compared to HKD 139,227 thousand in the previous year, representing a significant increase[9] Assets and Liabilities - Total assets increased to HKD 7,345,699 thousand, up from HKD 7,056,524 thousand, representing a growth of approximately 4.1% year-over-year[8] - Current assets rose to HKD 764,083 thousand, compared to HKD 746,681 thousand, reflecting an increase of about 2.3%[8] - Current liabilities decreased significantly to HKD 293,154 thousand from HKD 457,309 thousand, a reduction of approximately 35.9%[8] - Total equity increased to HKD 5,225,949 thousand from HKD 4,799,022 thousand, marking an increase of approximately 8.9%[9] - The company’s borrowings decreased to HKD 136,597 thousand from HKD 182,421 thousand, a decline of approximately 25.2%[8] - The company’s borrowings amounted to HKD 278,726,000 as of June 30, 2021, a decrease from HKD 425,411,000 as of December 31, 2020[39] Cash Flow and Investments - Net cash and cash equivalents at the end of the period were HKD 270,102 thousand, down from HKD 372,651 thousand, indicating a decrease of about 27.5%[10] - The company reported a net cash outflow from operating activities of HKD (28,798) thousand, compared to an inflow of HKD 31,769 thousand in the previous year[10] - The company made a capital injection of HKD 89,103 thousand into a non-wholly owned subsidiary during the period[11] - The company plans to invest HKD 200,000,000 in the Brazilian iron ore project and HKD 186,000,000 for general operating expenses[76] Market and Strategic Initiatives - The company plans to continue expanding its market presence and developing new products and technologies to drive future growth[4] - The company has identified potential acquisition targets to enhance its business portfolio and market reach[4] - The management expressed optimism about future performance, citing improved operational efficiencies and market conditions[4] - The company aims to explore strategic investments in smart vehicle technologies, including autonomous driving and vehicle lightweighting, in response to trends in electrification and shared mobility[75] Operational Developments - The company has established around 400 battery swap stations and 1,800 subscription users for its battery-sharing business under the "GETI" brand as of June 2021[52] - The production capacity of the subsidiary Zhejiang Hengyuan New Energy is approximately 2,000,000 kWh of ternary lithium batteries annually, with the first production line having started mass production in 2018[50] - The company is currently negotiating with potential new customers in the automotive and energy storage sectors to expand its market presence despite challenges in customer acquisition[49] Environmental and Regulatory Matters - The company aims to obtain environmental permits for the SAM project by Q4 2021, with installation permits expected by Q2 2023 and trial production by Q2 2026, subject to uncertainties[57] - SAM has faced significant delays in obtaining environmental permits due to regulatory changes and incidents, including a dam collapse in 2015 that halted approvals for all tailings dams in Brazil[59] - In March 2021, SAM restarted its environmental assessment process after signing a technical cooperation agreement with IBAMA and SEMAD, allowing for the continuation of the preliminary environmental permit application[61] Shareholder and Corporate Governance - The major shareholder, Hongqiao Capital, holds approximately 4,065,000,000 shares, representing about 41.25% of the total shares[94] - The total number of shares held by the director and major executives as of June 30, 2021, includes 4,145,399,189 shares, accounting for approximately 42.07%[87] - The company has complied with all code provisions set out in the GEM Listing Rules Appendix 15 during the six-month period ending June 30, 2021[86] - The company has established an audit committee in compliance with GEM listing rules and corporate governance codes[104]

Financial Performance - The company reported a revenue of HKD 94,346,000 for the three months ended March 31, 2021, compared to HKD 35,172,000 for the same period in 2020, representing a growth of 168%[8] - Lithium-ion battery sales accounted for HKD 92,714,000, significantly increasing from HKD 34,258,000 year-over-year[8] - The company achieved a gross profit of HKD 161,804,000 for the quarter, with a net profit attributable to owners of HKD 154,992,000[6] - Other operating income totaled HKD 115,800,000, up from HKD 17,793,000 in the previous year, driven by various income streams including bank interest and government grants[9] - The financial costs for the quarter were HKD 3,325,000, a decrease from HKD 5,998,000 in the same period last year[10] - The total comprehensive income for the period was a loss of HKD 197,723,000, primarily due to foreign exchange losses[6] - The basic and diluted earnings per share for the period were both HKD 1.59[6] - The company reported a basic earnings of approximately HKD 154,992,000 for the three months ended March 31, 2021, compared to a loss of HKD 67,983,000 for the same period in 2020[13] - The total equity of the company as of March 31, 2021, was HKD 4,799,022,000, an increase from HKD 4,766,595,000 as of March 31, 2020[14] - The gross profit for the period was about HKD 29.2 million, with a gross margin of 30.9%, an improvement from a gross margin of 27.8% in the previous year[36] - Other operating income for the period was approximately HKD 115.8 million, a substantial increase from HKD 17.8 million in the previous year, mainly due to the rise in the stock price of a subsidiary[36] - Financial costs decreased to approximately HKD 3.3 million from HKD 6 million in the previous year, primarily due to reduced borrowings[36] - The company has improved operational efficiency and reduced indirect costs, contributing to the enhanced gross margin[36] Market Expansion and Strategy - The company plans to continue expanding its market presence and developing new technologies in the lithium battery sector[5] - The company is committed to enhancing its operational efficiency and exploring potential mergers and acquisitions to drive growth[5] - The company is negotiating with automotive manufacturers and potential new customers in the energy storage sector to promote product matching[15] - The company plans to expand its battery swapping service under the "GETI" brand, which currently has about 229 battery swapping stations and 2,100 active users[35] - The company aims to provide safe, convenient, and reliable battery swapping services across China, leveraging the transition from lead-acid to lithium batteries in electric bicycles[35] - The company anticipates significant growth in the new energy vehicle market, projecting a competitive increase in the sector by 2025, with an expected total of 5 million vehicles[39] - The company is exploring mergers, investments, and partnerships in areas such as smart vehicle technology, automotive chips, and autonomous driving[40] - The company is committed to a dual-track development strategy focusing on new energy vehicles and resource sectors to create shareholder value[40] Production and Capacity - The subsidiary Zhejiang Hengyuan New Energy has a designed annual production capacity of approximately 2,000,000 kWh of ternary lithium-ion batteries[17] - The current annual production capacity of the joint venture Shandong Hengyuan New Energy is 150,000 kWh for lithium iron phosphate batteries and 225,000 kWh for ternary lithium-ion batteries[18] - Approximately 98.3% of the total revenue was contributed by the lithium-ion battery factory in Zhejiang, with the remaining revenue primarily from battery replacement services for electric bicycles in China[35] Environmental and Regulatory Matters - The environmental permit application process has faced significant delays due to regulatory changes and past mining disasters, impacting the timeline for project approvals[26] - If the preliminary environmental permit (LP) is obtained in Q4 2021, the installation permit (LI) could be granted by Q2 2023, with trial production expected in Q2 2026[24] - The company has completed a new environmental impact study in compliance with updated regulations, submitted in early 2019[27] - The project is interdependent with the pipeline project by Lotus Brasil, which should be submitted for environmental approval together[27] - The company has been actively communicating with environmental authorities to optimize the project and address regulatory requirements[26] Investment and Financial Position - 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[25] - The annual production capacity of the SAM project is projected to reach 27.5 million tons of iron concentrate, with an average grade of 66.2% over the first 18 years of operation[22] - The estimated operating cost (Opex) for the first 18 years is approximately $20.4 per ton of iron concentrate, increasing to about $25.7 per ton thereafter[25] - The expected FOB (Free on Board) cost for the first 18 years is around $33.7 per ton, rising to $39.0 per ton thereafter[25] - The company has cumulatively invested approximately $155.22 million in the SAM project, including $76.8 million in funding and $78.42 million in acquisition costs[22] - The company is actively seeking to recover investments in Shandong Hengyuan New Energy through negotiations or legal actions due to unpaid capital contributions[39] Shareholder Information - 洪桥资本持有4,065,000,000股股份，占总股份的41.25%[59] - 貿学初及其配偶FOO Yatyan合计持有4,145,399,189股股份，占总股份的42.07%[59] - 吉利国际(香港)有限公司持有1,850,675,675股股份，占总股份的18.78%[59] - 李书福通过浙江吉利控股集团有限公司持有1,953,739,675股股份，占总股份的19.83%[59] Compliance and Governance - 本公司在截至2021年3月31日的期间内未有任何与业务构成竞争的权益[62] - 本公司已成立审核委员会，确保业绩按适用会计准则编制并充分披露[65] - 截至2021年3月31日，董事会确认所有董事遵守交易必守标准[63] - 本公司在截至2021年3月31日的三个月内未进行任何上市证券的购买、出售或赎回[65]

Financial Performance - The company reported a revenue of HKD 85,602,000 for the three months ended September 30, 2020, compared to HKD 70,564,000 for the same period in 2019, representing a 21.3% increase[4]. - Gross profit for the three months ended September 30, 2020, was HKD 20,574,000, a significant recovery from a gross loss of HKD 515,000 in the same period last year[4]. - The company incurred a loss of HKD 40,639,000 for the three months ended September 30, 2020, compared to a profit of HKD 12,108,000 in the same period in 2019, indicating a shift in performance[4]. - The company reported a total comprehensive loss of HKD 110,561,000 for the three months ended September 30, 2020, compared to a loss of HKD 267,669,000 in the same period last year[4]. - The company’s total revenue for the nine months ended September 30, 2020, was HKD 177,435,000, down from HKD 196,082,000 in the previous year, indicating a decline of 9.5%[8]. - The company reported a loss attributable to owners of approximately HKD 163,021,000 for the nine months ended September 30, 2020, compared to a loss of HKD 18,874,000 for the same period in 2019[16]. - The gross profit for the nine months ended September 30, 2020, was approximately HKD 37.6 million, with a gross margin of 21.2%, an improvement attributed to higher profit margins from upgraded products[33]. - The company recorded revenue of approximately HKD 177.4 million for the nine months ended September 30, 2020, a decrease of 9.5% compared to HKD 196.1 million in the same period last year[33]. Expenses and Costs - The company’s administrative expenses increased to HKD 12,307,000 for the three months ended September 30, 2020, compared to HKD 10,563,000 in the same period in 2019[4]. - The company’s financial costs decreased to HKD 3,672,000 for the three months ended September 30, 2020, from HKD 4,468,000 in the same period in 2019, showing a reduction of 17.8%[4]. - The financial cost for bank and other loans interest was HKD 13,338,000 for the nine months ended September 30, 2020, an increase from HKD 12,634,000 in 2019[13]. - The sales and distribution costs for the period were approximately HKD 15 million, an increase attributed to higher product maintenance costs[34]. - The financial cost for the nine months ending September 30, 2020, was approximately HKD 13,600,000, compared to HKD 13,000,000 for the same period in 2019[36]. Assets and Liabilities - The total liabilities, including borrowings, amounted to HKD 67,155,000[10]. - The company’s total assets were reported at HKD 293,303,000[10]. - The company reported a total equity of HKD 3,255,270,000 as of September 30, 2020, compared to HKD 4,766,595,000 as of January 1, 2020, indicating a decrease of approximately 31.7%[17]. - The cash and cash equivalents balance as of September 30, 2020, was approximately HKD 277,000,000, with a focus on prudent cost control amid economic challenges[37]. Business Operations - Lithium-ion battery sales amounted to HKD 172,997,000 for the nine months ended September 30, 2020, down from HKD 195,875,000 in the previous year, reflecting a decline of 11.6%[8]. - The revenue from the battery sharing business under the "GETI" brand was approximately HKD 4,400,000 for the period ending September 30, 2020[23]. - As of September 2020, the "GETI" battery swapping stations numbered around 229, serving approximately 2,600 subscription users[23]. - The company has successfully entered the Chinese Ministry of Industry and Information Technology's catalog for new energy vehicles with its battery packs, including models from Volvo and Lynk & Co[18]. - The production capacity of Zhejiang Hengyuan New Energy is approximately 2,000,000 kWh of ternary lithium batteries annually, with the first production line capable of producing 500,000 kWh having started operation in mid-2018[19]. - The company is actively negotiating with major and new automotive manufacturers in the energy storage sector to explore new customer opportunities[18]. - The company has developed standardized battery modules with over 10,000 plug-in cycles and multiple safety features for its battery sharing business[26]. - The company has been involved in the production and supply of battery modules for various plug-in hybrid electric vehicles (PHEVs) including models from Volvo and Lynk & Co[18]. Losses and Financial Challenges - The company recognized a loss of HKD 4,558,000 from an associate for the three months ended September 30, 2020, compared to a minimal loss of HKD 7,000 in the same period last year[4]. - The company’s basic loss per share for the three months ended September 30, 2020, was HKD 0.44, compared to a loss of HKD 0.06 in the same period last year[4]. - The company incurred a loss of HKD 163,021,000 during the third quarter of 2020, compared to a loss of HKD 18,874,000 in the same period of 2019, representing an increase in losses of approximately 764.5%[17]. - The loss attributable to the owners for the nine months ending September 30, 2020, was approximately HKD 163,000,000, an increase from HKD 18,900,000 in 2019, primarily due to losses from joint ventures and non-cash losses from the sale of subsidiaries[36]. - The company recognized a loss of approximately HKD 38,800,000 due to uncertainties regarding capital contributions from Jiangsu Tiankai related to Shandong Hengyuan New Energy[36]. Shareholder Information - The total number of shares held by Hongqiao Capital Limited is 4,065,000,000, representing approximately 41.25% of the total shares[55]. - Mr. He Xuechu holds 57,939,189 shares directly and has a total stake of 4,145,399,189 shares, which is about 42.07%[55]. - The major shareholder, Geely International (Hong Kong) Limited, holds 1,850,675,675 shares, accounting for 18.78% of the total shares[55]. - The total number of shares outstanding is approximately 9,902,000,000, based on the holdings of major shareholders[55]. - The company has granted stock options totaling 8,750,000 shares, with an exercise price of HKD 2.61, set to expire in 2023[52]. - The stock options granted in 2012 have a total of 5,000,000 shares that have expired, leaving no unexercised options from that grant[52]. - Mr. Li Shufu, a major shareholder, holds 103,064,000 shares directly, contributing to a total of 1,953,739,675 shares when including his controlled entities[55]. - The company has not reported any new strategies or market expansions in the latest earnings call[58]. Loans and Financial Support - Zhejiang Geely provided a loan of RMB 100,000,000 (approximately HKD 114,000,000) to Zhejiang Hengyuan New Energy at a fixed annual interest rate of 4.75%, which was fully repaid by September 30, 2020[59]. - In 2019, Zhejiang Geely issued two loans to Zhejiang Hengyuan New Energy totaling RMB 152,800,000 (approximately HKD 174,100,000) at a fixed annual interest rate of 4.35%, both of which were fully repaid by September 30, 2020[59]. - Shanghai Huapu Automobile Co., Ltd. provided a loan of RMB 33,600,000 (approximately HKD 36,850,000) to Zhejiang Hengyuan New Energy, with a repayment period extended to March 20, 2021[59]. - As of September 30, 2020, the company recognized financial costs of HKD 5,600,000 related to the aforementioned short-term loans[59]. Environmental and Community Engagement - The environmental permit application process for the SAM project is ongoing, with the company taking legal measures to expedite the process and resolve the public civil lawsuit[41]. - The company is actively monitoring the environmental permit approval process and has received interim rulings allowing continued environmental studies[41]. - SAM received support letters from 5 municipal mayors and 15 local organizations/associations after the environmental permit process was suspended[42]. - SAM donated 70,000 medical surgical masks to six municipalities in northern Minas Gerais during the early stages of the COVID-19 pandemic[42]. - SAM signed a non-binding MOU with Huawei Brazil to collaborate on the development of unmanned mining technology and the application of 5G technology in mining operations[42].

Financial Performance - For the six months ended June 30, 2020, the company reported total revenue of HKD 91,833,000, a decrease of 26.8% compared to HKD 125,518,000 for the same period in 2019[5] - The gross profit for the same period was HKD 17,023,000, compared to HKD 501,000 in 2019, indicating a significant improvement in gross margin[5] - The company incurred a loss before tax of HKD 127,528,000, which is a substantial increase from the loss of HKD 49,007,000 in the previous year[5] - The total comprehensive loss for the period was HKD 1,274,208,000, compared to a gain of HKD 12,352,000 in 2019, reflecting a significant downturn[5] - Basic loss per share for the six months was HKD 1.23, compared to HKD 0.13 in the same period last year[5] - The company reported a significant foreign exchange loss of HKD 1,163,522,000, compared to a gain of HKD 22,265,000 in the previous year[5] - The company reported a loss of HKD 119,295 thousand during the period, compared to a profit in the previous year[7] - The company recorded a total segment loss of HKD 7,557 thousand for the six months ended June 30, 2020, significantly improved from a loss of HKD 77,856 thousand in the same period of 2019[17] - The group recorded revenue of approximately HKD 91.8 million for the six months ended June 30, 2020, a decrease of 26.8% compared to HKD 125.5 million for the same period last year[63] - The group reported a loss attributable to owners of approximately HKD 119.3 million for the six months ended June 30, 2020, compared to a loss of HKD 12.7 million for the same period in 2019[63] Assets and Liabilities - Total assets decreased from HKD 6,972,344 thousand as of December 31, 2019, to HKD 4,865,729 thousand as of June 30, 2020, representing a decline of approximately 30.2%[6] - Non-current assets, particularly exploration and evaluation assets, saw a significant drop from HKD 6,316,882 thousand to HKD 4,590,705 thousand, a decrease of about 27.4%[6] - Current liabilities reduced sharply from HKD 686,136 thousand to HKD 282,581 thousand, a reduction of approximately 58.8%[6] - The company's cash and cash equivalents decreased from HKD 351,714 thousand to HKD 219,717 thousand, a decline of about 37.5%[6] - The net asset value decreased from HKD 4,766,595 thousand to HKD 3,365,831 thousand, reflecting a decrease of approximately 29.4%[6] - The total equity attributable to owners of the company decreased from HKD 4,690,975 thousand to HKD 3,365,806 thousand, a decline of about 28.1%[7] - The company’s inventory decreased from HKD 235,237 thousand to HKD 184,637 thousand, a reduction of approximately 21.5%[6] - The company’s receivables also saw a decline from HKD 133,945 thousand to HKD 58,071 thousand, a decrease of about 56.6%[6] - The total borrowings as of June 30, 2020, were HKD 402,933,000, a decrease of 37.5% from HKD 644,772,000 as of December 31, 2019[47] - The total accounts payable as of June 30, 2020, was HKD 13,627,000, down 84.4% from HKD 87,116,000 as of December 31, 2019[45] Operational Efficiency - Administrative expenses decreased to HKD 39,249,000 from HKD 89,073,000, showing a reduction in operational costs[5] - The company recognized an impairment loss of HKD 58,767,000 related to assets classified as held for sale[5] - The company’s financial costs for the period were HKD 9,906,000, compared to HKD 8,501,000 in the previous year, indicating an increase in financing expenses[5] - The company’s management is focused on restructuring and cost-cutting measures to improve future performance amid challenging market conditions[5] - The company reported a significant reduction in cash used in investing activities, totaling HKD (11,740) thousand compared to HKD (78,987) thousand in 2019[8] - Administrative expenses significantly decreased, mainly due to a reduction in R&D expenses related to new battery product testing, which decreased by approximately HKD 50.2 million[65] Strategic Initiatives - The company plans to focus on market expansion and new product development to improve future performance[7] - The company plans to continue exploring new strategies for market expansion and product development in the upcoming periods[13] - The group is focusing on expanding its battery-sharing services in Jiangsu and Zhejiang provinces, with plans to extend to other regions in China[64] - The company expects the overall business strategy to focus on dual-track development in the new energy vehicle sector and resource areas to create value for shareholders[75] Shareholder Information - As of June 30, 2020, the total number of shares held by major shareholders is 4,145,399,189, representing approximately 42.07% of the total shares[84] - The largest shareholder, 洪橋資本, holds 4,065,000,000 shares, accounting for 41.25% of the total shares[90] - The total number of shares held by 李書福 is 1,953,739,675, representing approximately 19.83% of the total shares[90] - The company has granted stock options totaling 8,750,000 shares, with an exercise price of HKD 2.61, which are set to expire in 2023[87] - The company’s major shareholders include 吉利國際 and 江蘇沙鋼, holding 18.78% and 4.53% of the total shares, respectively[90] Legal and Regulatory Matters - The company has faced legal challenges regarding environmental permits for the SAM project, but a recent ruling allowed the continuation of environmental studies and analyses[70] - The company has been actively communicating with government and environmental agencies to support the SAM project and has received letters of support from local mayors and associations[70] - The company has complied with all code provisions set out in the GEM Listing Rules during the six-month period ending June 30, 2020[82]

Financial Performance - Revenue for the first quarter of 2020 was HKD 35,172,000, a decrease of 64.3% compared to HKD 98,528,000 in the same period of 2019[4] - Gross profit for the first quarter was HKD 9,790,000, compared to a gross loss of HKD 3,938,000 in Q1 2019[4] - The company reported a net loss of HKD 64,835,000 for the first quarter, significantly higher than the loss of HKD 23,213,000 in Q1 2019[4] - Lithium-ion battery sales amounted to HKD 34,258,000, down from HKD 98,528,000 in the previous year[7] - The total comprehensive loss for the three months ended March 31, 2020, was HKD 1,031,513,000, compared to a total comprehensive loss of HKD 37,149,000 for the same period in 2019[12] - The loss attributable to the company's owners was approximately HKD 68,000,000, compared to a loss of HKD 10,300,000 for the same period last year[23] Operating Income and Expenses - Other operating income increased to HKD 17,793,000 from HKD 14,833,000 in the same quarter of 2019[8] - Financial costs rose to HKD 5,998,000, compared to HKD 2,651,000 in Q1 2019, reflecting increased interest expenses[9] - Other operating income for the period was approximately HKD 17,800,000, an increase from HKD 14,800,000 in the previous year, primarily due to government subsidies of HKD 12,500,000[22] - Administrative expenses decreased significantly by approximately HKD 9,000,000 compared to the previous year, mainly due to reduced R&D expenses related to new battery products[23] Shareholder Information - Basic loss per share for the period was HKD 0.70, compared to HKD 0.11 in the previous year[4] - The company has not declared any dividends for the three months ended March 31, 2020, consistent with the previous year[10] - The company’s reserve changes included a loss of HKD 67,983,000 for the period, impacting retained earnings[12] - As of March 31, 2020, the major shareholder holds approximately 42.07% of the company's shares[33] Government Grants and Support - The company received government grants totaling HKD 12,470,000, a significant increase from HKD 1,162,000 in Q1 2019[8] Production and Capacity - Zhejiang Hengyuan New Energy, a subsidiary, has a maximum designed capacity of 2,000,000 kWh of lithium-ion batteries per year, with the first production line having started mass production in Q2 2018[13] - The lithium-ion battery factory in Zhejiang contributed over 97% of the group's revenue, with the global economic activity severely impacted by the COVID-19 pandemic, leading to a 60.2% and 56.4% decrease in production and sales of new energy vehicles in China, respectively[20] Strategic Initiatives - The company is focused on expanding its battery service offerings, with battery replacement service revenue reported at HKD 914,000[7] - The group launched the "GETI" brand battery-sharing business in Jiangsu and Zhejiang provinces, focusing on electric motorcycle services, with approximately 230 battery swap stations and 1,500 active users as of March 2020[22] - The company aims for dual-track development in the new energy vehicle sector and resource field to create value for shareholders[29] Project Developments - The group provided approximately USD 74,000,000 in funding for the SAM project in Brazil, with total project investment reaching approximately USD 154,000,000[25] - The SAM project aims for an annual production capacity of 27,500,000 tons of iron concentrate, with an average grade of 66.2% over the first eighteen years of operation[25] - The company will continue to push forward the SAM iron ore project despite delays in obtaining preliminary environmental feasibility approval[29] Compliance and Governance - The company has complied with all code provisions set out in the GEM Listing Rules during the three months ended March 31, 2020[31] - All directors complied with the trading requirements during the three months ended March 31, 2020[44] Stock Options and Shareholdings - The company has granted stock options totaling 5,000,000 and 8,750,000, with exercise prices of HKD 0.95 and HKD 2.61 respectively[35] - 洪桥资本持有4,065,000,000股股份，占总股份的41.25%[38] - 吉利国际（香港）有限公司持有1,850,675,675股股份，占总股份的18.78%[38] - 李书福通过浙江吉利控股集团有限公司持有19.83%的股份[38]

Financial Performance - The company recorded revenue of HKD 341.3 million for the year ended December 31, 2019, an increase of 43% compared to HKD 238.6 million in the previous year[9]. - The profit attributable to owners of the company was approximately HKD 415.6 million, a decrease of 57% from HKD 974.5 million for the year ended December 31, 2018[10]. - The company achieved a gross profit of approximately HKD 4.3 million with a gross margin of 1.3%, a significant improvement from a gross loss of HKD 47.6 million (gross margin: -19.9%) in the previous year[10]. - The lithium-ion battery segment recorded revenue of approximately HKD 340,000,000, an increase of about 42.3% compared to last year's revenue of HKD 239,000,000[27]. - The segment's loss before non-cash items was approximately HKD 12,600,000, significantly reduced from HKD 109,500,000 in the previous year, due to cost control measures and improved gross margins[29]. - Other operating income for the year was approximately HKD 196.6 million, significantly up from HKD 38.3 million in 2018, primarily due to increased government subsidies[71]. - The company’s cash and cash equivalents balance was approximately HKD 351.7 million, with a current ratio of 1.38, up from 1.19 in the previous year[75]. - The group recorded revenue of HKD 341.3 million for the year ended December 31, 2019, an increase of 43% compared to HKD 238.6 million in the previous year[70]. - The gross profit for the year was approximately HKD 4.3 million, with a gross margin of 1.3%, compared to a gross loss of HKD 47.6 million and a gross margin of -19.9% in the previous year[70]. Operational Developments - The lithium-ion battery factory in Zhejiang contributed over 98% of the group's revenue, driven by increased demand from customers such as Volvo and Lynk & Co[10]. - Production efficiency for battery cells and packs improved by approximately 38% and 42%, respectively, following operational upgrades at the Zhejiang factory[10]. - The workforce at the Zhejiang battery factory was reduced by over 40% to approximately 240 employees, optimizing human resource structure without compromising battery quality[10]. - The company launched a battery-sharing business under the "GETI" brand in Jiangsu and Zhejiang provinces, focusing on electric motorcycle services, generating revenue of approximately HKD 1 million by the end of 2019[10]. - The company plans to expand its battery-sharing services across China, aiming to provide safe and reliable battery swapping services to customers nationwide[10]. - The battery-sharing business "GETI" launched in mid-2019, with approximately 230 battery swap stations and 1,500 active users by March 2020, generating revenue of about HKD 1,000,000 and a loss of HKD 2,800,000 for the year[30]. Strategic Initiatives - The company is actively seeking acquisition, investment, and collaboration opportunities in areas such as charging and battery replacement, electric motors, and autonomous driving[14]. - A joint venture has been established with Hangzhou Youxing Technology and Hangzhou Hexijiao Technology to provide ride-hailing services, initially launched in Paris in January 2020[13]. - The company plans to continue developing its lithium battery business while exploring opportunities in electric vehicle electrification and smart mobility[14]. - The company is focused on expanding its market presence through innovative business models and technology advancements in the battery-sharing sector[30]. - The company is considering strategic partnerships in battery charging, electric motors, and vehicle lightweighting as part of its growth strategy[92]. Challenges and Risks - The company’s revenue for the first quarter of 2020 is expected to decline by over 50% compared to the same period last year due to global economic challenges and COVID-19 impact[13]. - The decrease in profit was primarily due to a reduction in non-cash impairment reversals related to exploration and evaluation assets associated with the SAM iron ore project[10]. - The company faces risks from regulatory changes in China's new energy vehicle industry, which could negatively impact financial performance if unfavorable policies are enacted[83]. - Rising raw material costs for lithium-ion batteries, particularly cobalt and lithium, could adversely affect profitability, despite efforts to control costs through improved production efficiency[85]. Environmental and Regulatory Matters - The implementation of new national standards for electric bicycles in China is expected to accelerate the transition from lead-acid to lithium batteries, presenting growth opportunities for the company[10]. - The environmental impact assessment (EIA) for the SAM project was submitted on January 7, 2019, and the project has undergone various regulatory updates due to safety concerns following mining incidents in Brazil[41]. - The SAM project has faced delays in environmental permit analysis due to the need for updated safety regulations, with the last extension request made on June 25, 2019[41]. - The company has complied with new state laws and regulations regarding dam safety, ensuring that the SAM project meets stringent technical and environmental standards[41]. - The company has engaged with government agencies and various stakeholders to introduce its new tailings treatment technology following the Brumadinho dam disaster[47]. Shareholder and Governance Matters - The company has confirmed that all related party transactions were conducted in the ordinary course of business and on fair terms[66]. - The independent non-executive directors have reviewed the related party transactions and confirmed their fairness and reasonableness[66]. - The company has a structured approach to assess the independence of its independent non-executive directors[182]. - The company has established a risk management framework to identify, assess, and mitigate significant risks affecting its objectives[168]. - The audit committee reviewed the internal control system and found it effective and sufficient for the year ended December 31, 2019[171]. Human Resources and Talent Management - The total employee count decreased to 481 as of December 31, 2019, with employee benefits costs amounting to HKD 61,600,000, down from HKD 78,700,000 in the previous year[89]. - The remuneration policy for employees is based on their expertise, qualifications, and performance, aligned with the company's objectives[183]. - The company emphasizes the importance of talent as a key asset for sustainable development[193]. - The company aims to provide competitive salaries and development opportunities for employees[193].

Financial Performance - The company reported revenue of HKD 70,564 thousand for the three months ended September 30, 2019, compared to HKD 51,111 thousand in the same period of 2018, representing a year-over-year increase of 38%[6] - For the nine months ended September 30, 2019, the company achieved revenue of HKD 196,082 thousand, significantly up from HKD 85,495 thousand in the prior year, marking an increase of 129%[6] - The company recorded other operating income of HKD 28,522 thousand for the three months ended September 30, 2019, compared to HKD 19,278 thousand in the same period of 2018, reflecting a growth of 48%[6] - Lithium-ion battery sales reached HKD 195,875 thousand for the nine months ended September 30, 2019, compared to HKD 85,495 thousand in the same period of 2018, indicating a growth of 129%[10] - The company reported a net profit of HKD 12,108 thousand for the three months ended September 30, 2019, a significant recovery from a net loss of HKD 106,246 thousand in the same period of 2018[6] - The company’s total comprehensive loss for the nine months ending September 30, 2019, was HKD 273,082,000, compared to HKD 292,466,000 in the same period of 2018[18] Expenses and Costs - The gross loss for the three months ended September 30, 2019, was HKD 515 thousand, a notable improvement from a gross loss of HKD 14,914 thousand in the same period of 2018[6] - The company’s administrative expenses decreased to HKD 10,563 thousand for the three months ended September 30, 2019, down from HKD 18,808 thousand in the same period of 2018, showing a reduction of 44%[6] - The cost of goods sold recognized as an expense was HKD 196,096,000 for the nine months ending September 30, 2019, up from HKD 111,665,000 in 2018, indicating a year-over-year increase of 75.7%[13] - The company reported a total interest expense of HKD 12,634,000 for bank and other loans within the nine months ending September 30, 2019, compared to HKD 7,440,000 in the same period of 2018, representing an increase of 70.5%[12] - The depreciation and amortization expenses amounted to HKD 33,475,000 for the nine months ending September 30, 2019, compared to HKD 18,074,000 in 2018, marking an increase of 85.1%[13] Strategic Initiatives - The company plans to continue expanding its market presence and developing new products, particularly in the lithium-ion battery sector, to drive future growth[8] - The company is actively exploring new customers in the energy storage sector, including major automotive and new energy vehicle manufacturers[22] - The company is negotiating to introduce new investors to enhance the competitiveness of Shandong Hengyuan New Energy[23] - The company has entered into a securities subscription agreement with LKCO to purchase 2 million shares for a total consideration of USD 12 million, aiming for collaboration in autonomous driving and smart mobility[29] - The company is exploring mergers, investments, and collaborations in areas such as battery charging, electric motors, and autonomous driving to align with trends in electrification and shared mobility[38] Projects and Developments - The SAM project in Brazil has received approximately $73.4 million in funding, aiming for an annual production capacity of 27.5 million tons of iron concentrate with an average grade of 66.2% over the first 18 years of operation[31] - The project is set to utilize 100% renewable energy for operations five years after commencement, leveraging Brazil's rich solar, wind, and biomass energy potential[33] - A memorandum of understanding was signed with the Minas Gerais state government to expedite environmental permit analysis and support for the SAM project[34] - The environmental impact assessment (EIA) for the SAM project consists of 13 volumes and 2,953 pages, prepared by a multidisciplinary team of 39 professionals[31] - The joint venture, Jixing International Technology Co., Ltd., was established with a registered capital of RMB 80 million, with the company contributing RMB 16 million for a 20% stake[30] Shareholder Information - The company reported a total of 4,065,000,000 shares held by Hongqiao Capital, with a beneficial ownership percentage of 41.25%[47] - The major shareholder, He Xuechu, holds 57,939,189 shares directly and has a total beneficial ownership of 4,145,399,189 shares, representing approximately 42.07%[47] - The company’s major shareholders include Geely International (Hong Kong) Limited, holding 1,850,675,675 shares, representing 18.78%[47] - Li Shufu, a major shareholder, holds a total of 1,953,739,675 shares, which is approximately 19.83% of the total shares[47] Compliance and Governance - The company has complied with all code provisions under the GEM Listing Rules as of September 30, 2019[39] - The audit committee reviewed the unaudited results for the nine months ending September 30, 2019, confirming compliance with applicable accounting standards[53] - All directors confirmed adherence to the trading code of conduct during the nine months ending September 30, 2019[53] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending September 30, 2019[53] Sales and Agreements - The company sold lithium-ion batteries worth approximately HKD 116,100,000 to Volvo Cars and HKD 75,500,000 to Geely Parts during the reporting period[50] - The sales agreements involve the sale of high-performance ternary lithium-ion battery packs[51][52] - The payment terms for transactions under the sales agreements are cash payments with a credit period of 75 days post-delivery[51][52] - The annual cap for 2019 under the sales agreement with Zhejiang Geely Parts is RMB 739,000,000[52] - For the period from January 1, 2020, to October 25, 2020, the annual cap is RMB 951,000,000[52]

Financial Performance - For the six months ended June 30, 2019, the company reported total revenue of HKD 125,518 thousand, compared to HKD 34,384 thousand for the same period in 2018, indicating a significant increase[6]. - The gross profit for the first half of 2019 was HKD 501 thousand, a recovery from a gross loss of HKD 11,256 thousand in the same period of 2018[6]. - The company recorded a net loss of HKD 49,007 thousand for the six months ended June 30, 2019, compared to a net loss of HKD 327,504 thousand in the same period of 2018, showing an improvement[6]. - Other operating income increased to HKD 29,326 thousand in the first half of 2019, up from HKD 22,725 thousand in the same period of 2018[6]. - The total comprehensive income for the first half of 2019 was HKD 12,352 thousand, a significant recovery from a loss of HKD 716,964 thousand in the same period of 2018[7]. - Basic loss per share for the first half of 2019 was HKD 0.02, compared to HKD 2.94 for the same period in 2018, indicating a reduction in loss per share[7]. - The company reported a foreign exchange gain of HKD 47,482 thousand for the first half of 2019, compared to a loss of HKD 416,083 thousand in the same period of 2018[7]. Assets and Liabilities - Total assets as of June 30, 2019, amounted to HKD 6,730,690, an increase from HKD 6,613,204 as of December 31, 2018[8]. - Non-current assets, particularly exploration and evaluation assets, rose to HKD 5,721,554, up from HKD 5,684,855 year-over-year[8]. - Current liabilities totaled HKD 923,865, slightly higher than HKD 907,955 in the previous year[8]. - The total equity attributable to owners of the company decreased to HKD 4,511,816 from HKD 4,515,430[9]. - The group’s total liabilities increased to HKD 1,294,893,000 as of June 30, 2019, compared to HKD 1,176,050,000 as of December 31, 2018[19]. - The total liabilities from borrowings increased to HKD 845,513,000 as of June 30, 2019, compared to HKD 569,208,000 at the end of 2018, reflecting a rise of 48.5%[39]. Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD (292,439) for the six months ended June 30, 2019, compared to HKD (71,602) in the same period of 2018[11]. - Cash and cash equivalents decreased to HKD 472,663 from HKD 577,259 year-over-year[11]. - The company raised HKD 390,106 through borrowings, a significant increase from HKD 118,220 in the previous year[11]. - The company’s cash flow from investing activities showed a net outflow of HKD (78,987), an improvement from HKD (109,595) in the previous year[11]. - The company has invested HKD 1,600,000 in a joint venture for ride-hailing services in Paris, controlling 20% of the equity[34]. - The company plans to invest RMB 60 million in the shared power battery business, which is expected to launch in the coming months[61]. Research and Development - Research and development costs for the six months ended June 30, 2019, amounted to HKD 54,398,000, significantly up from HKD 21,871,000 in the same period of 2018[25]. - R&D expenses increased to approximately HKD 54,400,000, up from HKD 21,900,000 in the previous year, due to intensive testing of new battery products[50]. Strategic Focus and Future Plans - The company plans to focus on market expansion and new product development to drive future growth[5]. - The company is exploring potential mergers and acquisitions to enhance its market position and diversify its business operations[5]. - The company is actively negotiating with major automotive manufacturers and potential new clients in the energy storage sector, indicating a strategic focus on market expansion[44]. - The company is considering proposals to enhance the competitiveness of Shandong Hengyuan New Energy, including the introduction of new investors[47]. - The company is actively seeking mergers and acquisitions in the fields of electric vehicle technology and smart transportation[64]. Market and Regulatory Environment - The new national standard for electric bicycles, effective April 15, 2019, is anticipated to accelerate the transition from lead-acid to lithium batteries[61]. - The Chinese government mandates that by 2019, traditional car manufacturers must produce at least 10% of their vehicles as new energy vehicles, increasing to 12% in 2020[62]. - The market potential for location-based travel data services is estimated to exceed $40 billion globally[64]. Shareholder Information - The company’s major shareholder, He Xuechu, holds a total of 4,145,399,189 shares, representing approximately 42.07% of the total shareholding[71]. - The company has granted a total of 13,750,000 share options, with 5,000,000 options granted in 2012 and 8,750,000 options granted in 2015[74]. - The exercise price for the share options granted in 2015 is HKD 2.61, with a closing price of HKD 2.55 on the trading day before the grant[74]. Compliance and Governance - The board of directors confirmed that the financial information presented is accurate and complete, with no misleading elements[4]. - The audit committee reviewed the unaudited performance for the six months ending June 30, 2019, confirming compliance with applicable accounting standards[83]. - No competitive business interests were held by directors or controlling shareholders as of June 30, 2019[83]. - No purchase, sale, or redemption of the company's listed securities occurred during the six months ending June 30, 2019[83].

Revenue and Sales Performance - Revenue for the first quarter of 2019 reached HKD 98,528,000, a significant increase from HKD 4,035,000 in the same period of 2018, representing a growth of 2,343%[6] - Lithium-ion battery sales accounted for HKD 98,528,000, a substantial rise from HKD 4,035,000 in the previous year, indicating a strong market demand[8] - The company recorded revenue of HKD 98,500,000 for the period ending March 31, 2019, a significant increase of 2,300% compared to HKD 4,000,000 in the same period last year[18] - The company has secured two sales agreements with Volvo and Geely, with total revenue caps of RMB 1,017,000,000 and RMB 1,202,000,000 for 2019 and 2020, respectively[18] - Sales of lithium-ion batteries to Volvo Cars amounted to RMB 35,250,000 (approximately HKD 40,970,000) for the period ending March 31, 2019[45] - Sales of lithium-ion batteries to Zhejiang Geely Components reached RMB 47,110,000 (approximately HKD 54,760,000) for the period ending March 31, 2019[46] - The annual sales cap for the agreement with Volvo Cars is set at RMB 278,000,000[45] - The annual sales cap for the agreement with Zhejiang Geely Components is set at RMB 739,000,000[46] Financial Performance - The cost of sales for the first quarter was HKD 102,466,000, leading to a gross loss of HKD 3,938,000 compared to a gross loss of HKD 356,000 in Q1 2018[6] - Other operating income amounted to HKD 14,833,000, up from HKD 10,520,000 in the previous year, marking an increase of 41.9%[9] - The operating loss for the quarter was HKD 20,562,000, an improvement from a loss of HKD 24,734,000 in Q1 2018[6] - The total comprehensive loss for the period was HKD 37,149,000, compared to a comprehensive income of HKD 2,789,000 in the same quarter of 2018[6] - The company reported a basic loss per share of HKD 0.11, compared to a loss of HKD 0.15 per share in the same quarter of the previous year[6] - The loss attributable to the company's owners was approximately HKD 10,300,000, reduced from HKD 14,500,000 in the previous year, primarily due to increased other operating income and reduced administrative expenses[20] - The gross loss for the period was approximately HKD 3,900,000, with a gross margin of -4.0%, compared to a gross loss of HKD 400,000 and a gross margin of -8.8% in the previous year[18] - Financial costs increased to HKD 2,651,000 from HKD 1,889,000 in Q1 2018, reflecting higher borrowing costs[10] Corporate Structure and Investments - The group acquired a 3% stake in Zhejiang Hengyuan New Energy for approximately HKD 10,600,000, increasing its control to 52%[16] - The company has established a holding company to oversee the shared battery business, with an initial investment estimated at RMB 60 million[27] - The company entered into a purchase agreement with LKCO for 2,000,000 shares at a total cost of USD 12,000,000, indicating potential collaboration in autonomous driving and smart mobility[20] - The company has extended loan agreements with Zhejiang Geely for operational funding, with amounts of RMB 100,000,000 at fixed interest rates of 4.35% and 4.75%[44] Research and Development - Research and development expenses for the period were approximately HKD 8,600,000, an increase from HKD 4,700,000 in the previous year[19] - The company has developed a unique spatiotemporal cloud indexing technology, enabling TB-level data processing and transmission capabilities that exceed competitors by over 1000 times[30] Environmental and Regulatory Matters - SAM submitted the EIA/RIMA for Block 8 on January 7, 2019, and received the new FOB from SUPPRI on January 8, 2019, formalizing the environmental assessment process[22] - Following the Brumadinho dam collapse on January 25, 2019, SAM suspended the environmental assessment for Block 8 for at least three months to await updates on national dam safety regulations[22] - The Minas Gerais State Assembly passed a law on February 22, 2019, prohibiting upstream tailings dams, which SAM believes will not affect its environmental assessment process due to its use of the centerline method[23] - SAM has received all necessary environmental permits for the South Port project in Bahia, which will be used for exporting mineral products[24] - The company is actively engaging with government and environmental agencies to introduce new tailings treatment technologies and plans to restart the environmental assessment process in mid-2019 if regulations do not significantly impact the project[24] Shareholder Information - The total equity of the group as of March 31, 2019, was approximately HKD 4,648,039,000[13] - The group did not declare any dividends for the three months ended March 31, 2019, consistent with the same period in 2018[13] - As of March 31, 2019, 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[42] - The beneficial ownership of the director He Xuechu includes 57,939,189 shares and 22,460,000 shares held by his spouse, totaling 4,145,399,189 shares, which is approximately 42.07%[42] - The company has a total of 4,145,399,189 shares held by its directors and major executives, representing a significant portion of the total shareholding[42] Compliance and Governance - The financial report was prepared in accordance with the Hong Kong Financial Reporting Standards and has not been audited by external auditors[7] - The audit committee reviewed the unaudited results for the three months ending March 31, 2019, confirming compliance with applicable accounting standards[48] - The company has complied with all code provisions set out in Appendix 15 of the GEM Listing Rules during the three months ended March 31, 2019[34] - The board of directors includes key executives such as Mr. He Xuechu (Chairman) and Mr. Liu Jian (Vice Chairman and Co-CEO)[48] Future Outlook - The company has not provided specific guidance for future performance but indicated ongoing efforts in product development and market expansion[6] - The company aims to create value for shareholders through dual-track development in new energy vehicle-related businesses and resource sectors[32] - The shared battery business is expected to launch in the coming months, with further details to be disclosed[27] - The company plans to invest approximately HKD 249.7 million from the remaining funds into electric vehicle-related businesses[33]