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

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

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

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

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

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

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]