Financial Performance - Revenue for the three months ended June 30, 2021, was HKD 5,393,000, an increase of 38.9% compared to HKD 3,880,000 for the same period in 2020[4] - Gross profit for the six months ended June 30, 2021, was HKD 1,077,000, a decrease of 32.7% from HKD 1,605,000 in the same period of 2020[4] - The company reported a loss of HKD 2,180,000 for the three months ended June 30, 2021, compared to a loss of HKD 1,706,000 for the same period in 2020, representing a 27.8% increase in loss[7] - The net loss attributable to owners of the company for the six months ended June 30, 2021, was HKD 3,684,000, compared to HKD 5,909,000 for the same period in 2020, showing a 37.0% improvement[5] - The total comprehensive loss for the six months ended June 30, 2021, was HKD 4,067,000, compared to HKD 6,394,000 for the same period in 2020, reflecting a 36.3% reduction in losses[7] - The company reported a significant increase in inventory, which rose to HKD 2,111 million as of June 30, 2021, compared to HKD 1,002 million as of December 31, 2020, marking an increase of approximately 110.8%[10] - The company reported a loss attributable to owners of the company for the six months ended June 30, 2021, amounting to HKD 8,617,000, compared to a loss of HKD 3,684,000 for the same period in 2020[41] - The consolidated loss attributable to the company's owners decreased by 36% to HKD 4,100,000, compared to HKD 6,400,000 in the same period of 2020[60] Liabilities and Assets - Total current liabilities increased to HKD 65,021,000 from HKD 50,818,000, indicating a rise of 28.0%[9] - The company’s current liabilities net of current assets amounted to HKD (53,063,000), compared to HKD (37,949,000) in the previous year, indicating a worsening liquidity position[9] - Total liabilities amounted to HKD 46,108 million as of June 30, 2021, compared to HKD 42,041 million as of December 31, 2020, indicating an increase of approximately 9.8%[11] - The company recorded a total loss of HKD 46,108 million for the six months ended June 30, 2021, compared to a loss of HKD 42,041 million for the same period in 2020, reflecting a deterioration of about 9.9%[11] - The company’s equity attributable to owners decreased to HKD (45,416) million as of June 30, 2021, from HKD (42,041) million as of December 31, 2020, indicating a decline of about 8.5%[11] - Total liabilities exceeded total assets, with total assets of HKD 19,100,000 and total liabilities of HKD 65,300,000 as of June 30, 2021[64] Cash Flow - The company reported a net cash outflow from operating activities of HKD 3,554 million for the six months ended June 30, 2021, compared to a cash inflow of HKD 20,138 million for the same period in 2020[15] - The net cash outflow from operating activities was HKD 3,500,000, compared to a cash inflow of HKD 20,100,000 in 2020[62] - Cash and cash equivalents decreased to HKD 829 million as of June 30, 2021, from HKD 1,555 million at the beginning of the period, a decline of about 46.8%[15] Segment Performance - Revenue from customer contracts for the six months ended June 30, 2021, was HKD 10,329 million, slightly up from HKD 10,203 million for the same period in 2020, showing an increase of approximately 1.2%[19] - The group reported segment revenue of HKD 10,329 thousand for the home products business, with a loss of HKD 809 thousand from continuing operations[23] - For the six months ended June 30, 2021, total segment revenue was HKD 10,411 thousand, with a loss of HKD 8,617 thousand from continuing operations[25] - The financial services segment generated revenue of HKD 208 thousand, resulting in a loss of HKD 372 thousand from continuing operations[25] Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring the integrity of the financial statements and compliance with applicable accounting standards[86] - The company has complied with the corporate governance code as per GEM Listing Rules, except for the removal of the CEO's position[85] - The audit committee reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2021, confirming compliance with applicable accounting standards[87] Future Outlook - The company plans to focus on expanding its market presence and developing new products and technologies in the upcoming quarters[19] - The ongoing challenges from the COVID-19 pandemic and geopolitical tensions are expected to impact the group's operations negatively[71] Shareholder Information - Major shareholders include Mega Trillion International Corporation with a 16.7% stake, Landmass Investments Limited with 9.7%, and Jade Metro Limited with 6.6%[79] - The company reported a total of 15,585,331 shares issued as of June 30, 2021[79] Miscellaneous - The company did not recommend an interim dividend for the six months ended June 30, 2021, consistent with no dividend in 2020[42] - The company did not purchase, redeem, or sell any of its listed securities during the six months ended June 30, 2021, except for the cancellation of shares under its share award scheme[81] - There were no business activities conducted by directors or major shareholders that could compete with the company's business as of June 30, 2021[84] - The company has adopted a code of conduct regarding securities trading by directors, which complies with GEM Listing Rules[82] - The group incurred unallocated corporate expenses of HKD 7,831 thousand and unallocated financial costs of HKD 346 thousand during the reporting period[25] - The group recognized a reversal of impairment provisions for other receivables amounting to HKD 218 thousand for the six months ended June 30, 2021[33]

（於百慕達註冊成立之有限公司） （股份代號：08186） 2021 第一季度業績報告 1 脈資資源集團有限公司 二零二一年第一季度業績報告 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為較其他在聯交所上市之公司帶有較高投資風險之中小型公司提供一個上市之市場。有意 投資之人士應了解投資於該等公司之潛在風險，並應經過審慎周詳之考慮後方作出投資決定。 由於GEM上市之公司一般為中小型公司，在GEM買賣之證券可能會較於主板買賣之證券承受較大之市場波 動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發表任何聲明， 並明確表示概不就因本報告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責 任。 本報告乃遵照GEM證券上市規則（「GEM上巿規則」）之規定提供有關脈資資源集團有限公司（「本公司」）之 資料，本公司董事（「董事」）會（「董事會」）願就本報告所載內容共同及個別承擔全部責任。各董事在作出一 切合理查詢後確認，就彼等所知及所信，本報告所載資料在各主要方面均為準確及完整，無誤導或欺詐成 分， ...

Financial Performance - The company reported a total revenue of HKD 21,200,000 for the year ended December 31, 2020, down from HKD 30,600,000 in 2019, representing a decrease of approximately 30.5%[9] - The consolidated loss attributable to the company's owners for the year was HKD 7,700,000, a significant reduction from HKD 17,600,000 in 2019, indicating an improvement of about 56.3%[10] - The company reported a net cash outflow of HKD 2,700,000 for the year ended December 31, 2020, compared to a net outflow of HKD 24,000,000 in 2019[21] - The group reported a reduction in indirect greenhouse gas emissions (Scope 2) to 17.4 tons (CO2 equivalent), a decrease of 31.3% from 24.3 tons in 2019[111] - The group recorded a net loss attributable to the owners of approximately HKD 29,918,000 for the year ended December 31, 2020[131] - The total comprehensive loss for the year was HKD 19,019,000, compared to HKD 13,764,000 in 2019, showing an increase in overall losses[146] - The company reported a basic and diluted loss per share of HKD 0.192 for continuing operations, compared to HKD 0.1323 in 2019[142] - The company reported a loss from discontinued operations of HKD 22,241,000 in 2020, compared to HKD 1,984,000 in 2019, reflecting challenges in its business segments[140] Business Restructuring - The company undertook a business restructuring in 2020, terminating several loss-making business units and expanding its product portfolio and customer base[6] - The company sold its subsidiary engaged in forestry operations in Cambodia, which was classified as discontinued operations, reflecting a strategic shift in focus[13] - The company plans to concentrate resources on developing its planting and household products business as well as its financial services business moving forward[13] - The company has sold non-core subsidiaries, including the Cambodia sub-group and securities sub-group, as part of its business restructuring[19] - The company has terminated its forestry and agricultural business operations during the year[169] - The company’s main business focus has shifted to selling planting products and financial services, following the cessation of its forestry and agricultural operations[169] Debt and Financial Stability - The company is actively pursuing debt restructuring plans with the support of most creditors to stabilize its financial situation[6] - The company has received support from creditors representing at least 75% in value and 50% in number to participate in the debt restructuring plan[16] - The company plans to submit the restructuring plan to the Hong Kong High Court in the first quarter of 2022 for creditor meeting approval[16] - The company believes that the support from creditors indicates confidence in its future prospects despite ongoing challenges from the US-China disputes and the pandemic[18] - The group’s current liabilities exceeded its current assets by approximately HKD 37,949,000 as of December 31, 2020[131] - The company is focusing on restructuring its financial obligations to improve its balance sheet in the upcoming fiscal periods[153] Governance and Compliance - The board of directors includes experienced members with over 30 years in manufacturing and finance, enhancing strategic oversight[38] - The company has complied with the corporate governance code as per GEM Listing Rules[81] - The audit committee reviewed the financial statements and internal control procedures for the year ended December 31, 2020[79] - The company confirmed that there were no related party transactions that constituted any connected or continuing connected transactions under GEM Listing Rules[75] - The company has complied with GEM listing rules regarding the appointment and re-election of directors, ensuring governance standards are met[90] - The company emphasizes board diversity based on various factors such as gender, age, cultural background, and professional experience when selecting candidates for directorship[88] Environmental and Social Responsibility - The group is committed to environmental protection and resource conservation[116] - The group has implemented measures to promote a paperless culture and digital community[111] - The group has not generated any hazardous waste during its operations[112] - The group has adhered to various employment regulations and has not employed any child or forced labor[117] - The group encourages employee development through continuous learning and training opportunities[119] Cash Flow and Liquidity - The company reported a cash flow from operating activities of HKD 4,032 thousand for the year ended December 31, 2020, compared to a cash outflow of HKD 29,256 thousand in 2019[163] - The company’s cash and cash equivalents decreased to HKD 1,555,000 in 2020 from HKD 4,212,000 in 2019, indicating a decline in liquidity[150] - Cash flow from investment activities showed a net outflow of HKD 106,000, with a significant decrease from HKD 3,481,000 in the previous period[166] - Cash flow from financing activities resulted in a net outflow of HKD 6,613,000, contrasting with an inflow of HKD 8,749,000 in the prior period[166] Accounting Standards and Financial Reporting - The company has adopted new or revised Hong Kong Financial Reporting Standards effective from January 1, 2020, with no significant impact on its financial performance[170] - The company is currently evaluating the impact of the revised accounting standards on the consolidated financial statements[189] - The company anticipates that the application of these amendments will not have an impact on its financial statements[199]

Financial Performance - For the nine months ended September 30, 2020, the company's revenue was HKD 18,200,000, a decrease of 11.9% from HKD 20,500,000 in the same period of 2019[5] - The consolidated loss for the nine months was HKD 10,300,000, improved from a loss of HKD 15,000,000 in the previous year, representing a 31.3% reduction[5] - The revenue for the three months ended September 30, 2020, was HKD 7,757,000, compared to HKD 6,879,000 for the same period in 2019, indicating a growth of 12.7%[6] - The gross profit for the nine months was HKD 2,629,000, down from HKD 2,998,000 in 2019, reflecting a decrease of 12.3%[6] - The loss attributable to equity holders of the company for the nine months was HKD 9,992,000, compared to HKD 14,138,000 in 2019, showing a 29.8% improvement[6] - The basic loss per share for the nine months was HKD 8.01, down from HKD 12.20 in the previous year, a decrease of 34.9%[6] - The comprehensive loss for Q3 2020 was HKD 3,900,000, significantly reduced from HKD 6,300,000 in Q3 2019, and the total loss for the reporting period was HKD 10,300,000, down from HKD 15,000,000 in 2019[31] Expenses and Income - Administrative expenses for the nine months decreased to HKD 15,151,000 from HKD 17,855,000, a reduction of 15.1%[6] - Other income and gains for the nine months increased significantly to HKD 5,010,000 from HKD 1,521,000, representing a growth of 229.5%[6] - Financial expenses for the three months ended September 30, 2020, totaled HKD 459,000, compared to HKD 358,000 for the same period in 2019, representing a 28.2% increase[13] - The total interest expense for the nine months ended September 30, 2020, was HKD 1,196,000, compared to HKD 1,067,000 for the same period in 2019, marking a 12.1% increase[13] Shareholder Information - As of September 30, 2020, the company had 204,440,151 shares issued, with a subscription agreement for 59,000,000 new shares at HKD 0.07 per share pending completion[34][39] - Major shareholders include Mega Trillion International Corporation with 14.28% and Bank of Communications Trustee Limited with 14.27% of shares[44] Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring the accuracy and fairness of the company's financial statements[52] - The company has adopted a code of conduct for securities trading by directors, confirming compliance during the reporting period[50] - The company has not engaged in any significant contracts or agreements during the reporting period that would involve any of its directors or executives[46] Market and Operational Strategy - The company continues to focus on expanding its market presence and improving operational efficiency to enhance future performance[10] - The company is expanding its production facilities to deepen and broaden its product offerings and customer base in various market segments and geographical areas[31] - The company anticipates that the negative impacts from trade policy uncertainty and geopolitical tensions will continue to affect the economies of China, Southeast Asia, and globally[33] - The company has no foreign currency hedging policy but will continue to monitor foreign exchange risks and take appropriate measures as needed[32] Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue increase of 12%[54] - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[54] - The company is investing in new technology development, allocating $20 million towards R&D initiatives[54] - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[54] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $100 million for potential deals[54] - Customer satisfaction ratings improved to 85%, reflecting a 5% increase from the last quarter[54] - The company aims to reduce operational costs by 8% through efficiency improvements in the supply chain[54] - Future guidance indicates a focus on sustainability initiatives, with a target of reducing carbon emissions by 20% over the next three years[54]

Financial Performance - For the three months ended June 30, 2020, the company reported revenue of HKD 3,880,000, a decrease of 49.7% compared to HKD 7,704,000 in the same period of 2019[4] - The gross profit for the six months ended June 30, 2020, was HKD 1,605,000, down 18.4% from HKD 1,968,000 in the same period of 2019[4] - The net loss attributable to the company for the six months ended June 30, 2020, was HKD 6,409,000, an improvement from a loss of HKD 8,689,000 in the same period of 2019[4] - Total revenue for the six months ended June 30, 2020, was HKD 10,411,000, a decrease of 23.5% compared to HKD 13,627,000 for the same period in 2019[18] - Revenue from customer contracts, primarily from the sale of timber, home, and agricultural products, was HKD 10,203, down 24.3% from HKD 13,541 in the previous year[20] - The company reported a total comprehensive loss of HKD 1,717,000 for the three months ended June 30, 2020, compared to HKD 3,312,000 in the same period of 2019, showing a reduction in losses[5] - The company reported a total loss of HKD 6,409,000 for the period, which includes unallocated corporate expenses of HKD 7,689,000 and share of losses from associates amounting to HKD 1,246,000[22] - The net loss attributable to ordinary equity holders was HKD 5,900,000, a reduction of 31% from 2019, with basic and diluted loss per share at HKD 0.0474[61] Assets and Liabilities - The total assets as of June 30, 2020, amounted to HKD 47,513,000, significantly up from HKD 18,410,000 as of December 31, 2019[7] - Non-current assets increased to HKD 47,513,000 as of June 30, 2020, compared to HKD 18,410,000 as of December 31, 2019, indicating significant investment growth[7] - The total equity as of June 30, 2020, was HKD 20,999, a decrease from HKD 22,999 in the previous period[11] - The company's equity attributable to ordinary shareholders decreased to HKD 6,643,000 from HKD 8,615,000 as of December 31, 2019, reflecting a decline in shareholder value[8] - The total liabilities were HKD 58,709,000, with segment liabilities for forestry and agriculture at HKD (35,885,000) and financial services at HKD (1,934,000)[26] - The group's total liabilities were HKD 58,700,000, a decrease from HKD 60,300,000 as of December 31, 2019, resulting in a debt ratio of 88.1%[63] Cash Flow - Cash flow from operating activities for the six months ended June 30, 2020, was HKD 20,138, compared to a cash outflow of HKD 15,891 in the same period of 2019[14] - The cash and cash equivalents at the end of the period were HKD 2,769, a decrease from HKD 40,925 at the end of the previous year[14] - Cash inflow from operating activities was HKD 20,100,000, compared to an outflow of HKD 15,900,000 in 2019[63] Operational Highlights - The company is focused on maintaining its operational continuity amid challenging market conditions[16] - The company aims to enhance its market presence and explore new strategies for growth in the upcoming periods[22] - The company has secured loans related to forestry and agriculture amounting to HKD 28,380,000 as of June 30, 2020, an increase from HKD 22,763,000 at the end of 2019[50] Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring the integrity of the financial statements and compliance with applicable accounting standards[81] - The audit committee reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2020, and confirmed compliance with applicable accounting standards and GEM Listing Rules[81] - The company has complied with the corporate governance code as per GEM Listing Rules, except for the removal of the CEO position[80] - The company has adopted a code of conduct regarding securities trading by directors, which meets or exceeds the standards set out in GEM Listing Rules[78] Market Conditions - The group anticipates ongoing negative impacts from geopolitical tensions and the COVID-19 pandemic on the economy in China and Southeast Asia[70] - The company believes it has sufficient financial resources to meet its liabilities despite current liabilities exceeding current assets[16] Shareholder Information - The total number of shares issued as of June 30, 2020, was 145,440,151[78] - Mega Trillion International Corporation holds 20,775,000 shares, representing 14.28% of the total shares issued as of June 30, 2020[78] - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[40] - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[78] Investment Activities - The group acquired property, plant, and equipment amounting to HKD 18,433,000 during the six months ended June 30, 2020, a significant increase from HKD 1,282,000 in 2019[41] - The group has not made any significant investments or acquisitions during the reporting period[66]

Financial Performance - The company's revenue for the three months ended March 31, 2020, was HKD 6,500,000, compared to HKD 5,900,000 for the same period in 2019, representing an increase of approximately 10.17%[4] - The loss attributable to ordinary equity holders for the reporting period was HKD 3,400,000, compared to HKD 5,200,000 in 2019, indicating a reduction in loss of approximately 34.62%[4] - Basic and diluted loss per share for the reporting period was HKD 2.71, compared to HKD 5.02 in 2019, reflecting an improvement of approximately 46.06%[4] - The total revenue from sales of timber and agricultural products was HKD 6,323,000, an increase from HKD 5,838,000 in 2019, marking a growth of approximately 8.31%[11] - The group recorded a net loss of HKD 4,703,000 for the period, compared to HKD 5,379,000 in 2019, showing a decrease in loss of approximately 12.52%[7] - The group's revenue for the reporting period was HKD 6,500,000, an increase from HKD 5,900,000 in the previous year, primarily driven by forestry, agriculture, and financial services[29] - The loss attributable to ordinary equity holders narrowed to HKD 3,400,000 from HKD 5,200,000 in the previous year, mainly due to cost reduction measures[29] - Basic and diluted loss per share for the reporting period was HKD 0.0271, compared to HKD 0.0502 in the previous year (restated)[29] Dividends and Financial Management - The company did not recommend any dividend distribution for the reporting period, consistent with the previous year[4] - The financial expenses for the reporting period totaled HKD 373,000, compared to HKD 344,000 in 2019, reflecting an increase of approximately 8.45%[16] - The estimated profit tax for Hong Kong is calculated at a rate of 16.5% on profits generated in Hong Kong[18] - The company did not recommend any dividend distribution for the reporting period, consistent with the previous year[25] Share Capital and Ownership - The average number of ordinary shares issued during the reporting period was 124,683,000, compared to 103,908,000 in the previous year[23] - Major shareholders include Mega Trillion International Corporation with 14.28% ownership, Bank of Communications Trustee Limited with 14.27%, and Million Pacific Holdings Corporation with 14.02% ownership as of March 31, 2020[35] - The company has entered into a subscription agreement to issue 59,000,000 new shares at a subscription price of HKD 0.07 per share[30] Corporate Governance and Compliance - The company has adopted a code of conduct regarding securities trading by directors, which complies with GEM Listing Rules[42] - The audit committee consists of four independent non-executive directors, ensuring the financial statements are prepared in accordance with applicable accounting standards and GEM Listing Rules[44] - The company has maintained compliance with corporate governance practices as per GEM Listing Rules, except for the vacancy in the CEO position[43] - The audit committee has reviewed the performance and confirmed compliance with applicable accounting standards and GEM Listing Rules[45] Risks and Uncertainties - The company faces significant uncertainties due to trade policy, geopolitical tensions, and the impact of the COVID-19 pandemic on global supply chains[30] - The group operates primarily in Hong Kong, Cambodia, and China, and is exposed to foreign exchange risks, although it does not have significant foreign currency hedging policies[30] Other Information - The group has no significant commitments during the reporting period[26] - The group has no major deferred tax provisions due to the absence of significant deductible or taxable temporary differences during the reporting period[21] - The company has not granted any stock options under the stock option plan during the reporting period, and there are no unexercised stock options as of March 31, 2020[37] - There were no purchases, redemptions, or sales of the company's listed securities during the reporting period[39] - No significant contracts or agreements were entered into by any director during the reporting period that would constitute a conflict of interest[40] - The company has not engaged in any competitive business activities that may conflict with its operations during the reporting period[40] - The company will continue to review its board structure and appoint suitable candidates as necessary[43]

Financial Performance - The group's total revenue increased by 7.8% to HKD 30,600,000 for the year ended December 31, 2019, compared to HKD 28,400,000 in 2018[11]. - The gross profit decreased to HKD 4,400,000, with a gross margin of 14.5%, down from HKD 5,600,000 and 19.7% in 2018[12]. - The net loss attributable to ordinary equity holders narrowed to HKD 15,100,000 from HKD 44,900,000 in the previous year, with a basic and diluted loss per share of HKD 0.176[15]. - The company reported a loss of HKD 15,076,000 for the year ended December 31, 2019, compared to a loss of HKD 44,899,000 in 2018, indicating a significant improvement[174]. - Revenue for the year was HKD 30,629,000, up from HKD 28,390,000 in 2018, representing an increase of approximately 8.7%[174]. - Gross profit decreased to HKD 4,433,000 from HKD 5,582,000, reflecting a decline of about 20.5%[174]. - The company reported a total comprehensive loss of HKD 20,786,000 for the year, compared to a loss of HKD 15,044,000 in the previous year, indicating a worsening financial performance[183]. - The accumulated losses increased to HKD 276,331,000, reflecting a significant financial strain on the company[183]. Segment Performance - The forestry and agriculture segment recorded a revenue growth of 13.4% to HKD 30,200,000, despite challenges from illegal logging and adverse weather conditions[22]. - The financial services segment's revenue fell to HKD 500,000 from HKD 1,800,000, with segment losses reduced from HKD 10,700,000 to HKD 3,000,000[23]. - The cultural business segment recorded a loss of HKD 200,000 for the year ended December 31, 2019, an improvement from a loss of HKD 1,800,000 in 2018[24]. - The logistics business segment also reported no revenue, with a loss of HKD 3,000 for the year, compared to a loss of HKD 5,000 in 2018[25]. Capital and Financing Activities - The company completed the sale of a 17.5% stake in a solar group for HKD 24,000,000 in January 2019[16]. - In April 2019, the company completed a subscription of 166,200,000 new shares, raising net proceeds of HKD 8,100,000[17]. - The company executed a share consolidation in May 2019, merging every 8 existing shares into 1 new share[18]. - The company undertook a capital reorganization in July 2019, reducing the par value of shares to HKD 0.01[19]. - The company raised HKD 8,310,000 from issuing new shares in 2019, compared to no such income in 2018[190]. Assets and Liabilities - Total assets as of December 31, 2019, were HKD 74,500,000, down from HKD 105,500,000 in 2018, while total liabilities decreased to HKD 60,300,000 from HKD 84,500,000[29]. - The debt-to-asset ratio increased to 80.9% in 2019 from 80.1% in 2018[29]. - As of December 31, 2019, the company had a total borrowing of HKD 25,600,000, up from HKD 24,900,000 in 2018[29]. - The company’s total liabilities decreased, with a notable reduction in trade payables by HKD 4,200,000 in 2019 compared to an increase of HKD 3,960,000 in 2018[189]. Cash Flow - Cash flow from operating activities was HKD 27,500,000, an increase from HKD 25,800,000 in 2018, while cash outflow from investing activities was HKD 3,500,000 compared to an inflow of HKD 24,200,000 in 2018[27]. - The net cash used in operating activities was HKD 27,458,000 in 2019, an improvement from HKD 37,773,000 in 2018, showing a 27.5% reduction in cash outflow[189]. - The net cash from financing activities was HKD 6,951,000 in 2019, a significant recovery from a net outflow of HKD 15,181,000 in 2018[190]. Governance and Compliance - The board of directors includes experienced individuals with backgrounds in various sectors, enhancing the company's governance[65]. - The audit committee, consisting of three independent non-executive directors, reviewed the audited annual report for the year ended December 31, 2019, ensuring compliance with applicable accounting standards[89]. - The board is committed to ensuring effective communication with shareholders and adhering to corporate governance best practices[100]. - The company has adopted the GEM listing rules as its own code for securities trading by directors[113]. Environmental and Social Responsibility - The total greenhouse gas emissions for the year ended December 31, 2019, were approximately 24.3 tons, a decrease from 25.9 tons in 2018[122]. - The group has implemented energy-saving measures, including maintaining office temperature at 25 degrees Celsius and using LED lights[123]. - The company has not employed any child or forced labor during the year ending December 31, 2019, in compliance with relevant laws and regulations[135]. - The company encourages employees to participate in social services and charitable donations, reflecting its commitment to being a good corporate citizen[141]. Risk Management - The board is aware of several risks that could impact the group's operations and has established risk management policies to monitor and mitigate these risks[53]. - The company anticipates challenges due to the impact of the US-China conflict, the COVID-19 pandemic, and ongoing social movements in Hong Kong[26].

Financial Performance - The company's revenue for the nine months ended September 30, 2019, was HKD 20,500,000, compared to HKD 20,200,000 for the same period in 2018, representing a growth of 1.48%[5] - The consolidated loss attributable to ordinary equity holders for the nine months was HKD 14,100,000, a significant reduction from HKD 27,600,000 in 2018, indicating an improvement of approximately 48.96%[5] - The basic and diluted loss per share for ordinary equity holders was HKD 11.94, down from HKD 26.58 in the previous year, reflecting a decrease of 55.14%[5] - Total comprehensive loss for the nine months was HKD 14,762,000, compared to HKD 33,027,000 in the same period last year, marking a reduction of 55.38%[10] - The company reported a loss before tax of HKD 14,545,000 for the nine months, compared to HKD 29,025,000 in the previous year, reflecting an improvement of 50.14%[7] - Basic and diluted loss per share for the nine months ended September 30, 2019, was HKD 14,100,000, compared to HKD 27,600,000 for the same period in 2018, indicating a significant decrease of approximately 48.9%[24] Revenue Breakdown - Revenue from customer contracts for timber and agricultural products was HKD 20,296,000 for the nine months, an increase from HKD 18,595,000 in 2018, representing a growth of 9.12%[13] - Total revenue from customer contracts for the three months ended September 30, 2019, was HKD 6,879,000, compared to HKD 7,756,000 for the same period in 2018, representing a decrease of approximately 11.3%[16] - Total revenue from customer contracts for the nine months ended September 30, 2019, was HKD 20,506,000, compared to HKD 20,175,000 for the same period in 2018, showing an increase of approximately 1.6%[16] Expenses and Costs - The gross profit for the nine months was HKD 2,998,000, compared to HKD 4,158,000 in 2018, showing a decline of 27.86%[7] - Administrative expenses for the nine months were HKD 17,855,000, down from HKD 28,062,000 in 2018, indicating a reduction of 36.56%[7] - Financial expenses for the three months ended September 30, 2019, totaled HKD 358,000, compared to HKD 909,000 for the same period in 2018, indicating a decrease of approximately 60.7%[17] - The estimated loss from equity investments measured at fair value was HKD 297,000 for the reporting period, compared to HKD 1,134,000 in 2018, reflecting a reduction of approximately 73.8%[18] Dividends and Share Capital - The company did not recommend any dividend distribution for the reporting period, consistent with the previous year[5] - The company underwent a capital reorganization approved on July 2, 2019, reducing the par value of shares from HKD 0.40 to HKD 0.01, and adjusting the authorized share capital accordingly[29] - As of September 30, 2019, the total number of issued shares was 145,440,151[66] Corporate Governance and Compliance - The company has adopted a code of conduct regarding securities trading by directors, which complies with the GEM Listing Rules[85] - The company has adhered to the corporate governance code as per GEM Listing Rules, except for the absence of a CEO position during the reporting period[86] - The audit committee, composed of three independent non-executive directors, has reviewed the quarterly report and confirmed its compliance with applicable accounting standards and GEM Listing Rules[89] Market Outlook and Challenges - The company anticipates ongoing adverse effects from the escalating US-China trade war and current social events in Hong Kong on the financial market atmosphere[61] - The forestry and agriculture business is expected to remain in difficulty, impacted by strict administrative policies from the Cambodian government and environmental protection issues[61] - The company will cautiously monitor the operational environment of its business segments and look for suitable investment opportunities with growth potential[61] Shareholder Information - Major shareholders include Mega Trillion International Corporation with 14.28% and Bank of Communications Trustee Limited with 14.27% of shares[72] Other Information - The company has not engaged in any significant commitments or major events after the reporting period[62][63] - The company did not engage in any significant contracts or agreements during the reporting period that would involve any director or major shareholder having a substantial interest[81] - There were no purchases, redemptions, or sales of the company's listed securities by the company or its subsidiaries during the reporting period[83]

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 13,627,000, an increase of 9.0% compared to HKD 12,419,000 for the same period in 2018[8] - Gross profit for the six months ended June 30, 2019, was HKD 1,968,000, down 30.7% from HKD 2,845,000 in the previous year[8] - The net loss for the six months ended June 30, 2019, was HKD 8,689,000, a significant improvement from a loss of HKD 24,074,000 in the same period of 2018[8] - The company reported a basic loss per share of HKD 2.81 for the six months ended June 30, 2019, compared to HKD 21.25 for the same period in 2018[8] - The company’s total comprehensive income for the period was (3,647) thousand HKD, compared to a loss of (276,331) thousand HKD in the previous year[12] - The company’s earnings per share for the period was reported at (0.131) HKD[12] - The overall loss for the six months ended June 30, 2019, was HKD 8,689,000, compared to a loss of HKD 24,074,000 for the same period in 2018, showing an improvement[25] - For the six months ended June 30, 2019, the loss was HKD 8,600,000, down from HKD 22,100,000 in 2018, indicating a reduction of about 60.0%[38] Assets and Liabilities - The company's total assets as of June 30, 2019, amounted to HKD 65,622,000, a decrease from HKD 87,669,000 as of December 31, 2018[11] - Current liabilities decreased to HKD 47,808,000 as of June 30, 2019, from HKD 67,605,000 at the end of 2018, indicating improved liquidity[11] - The total equity as of June 30, 2019, was HKD 20,844,000, slightly down from HKD 20,999,000 at the end of 2018[11] - The total assets as of June 30, 2019, amounted to HKD 85,907,000, while total liabilities were HKD 65,063,000, resulting in a net asset position[28] - Total liabilities decreased to HKD 65,100,000 as of June 30, 2019, from HKD 84,500,000 as of December 31, 2018[68] - The debt ratio as of June 30, 2019, was 76%, down from 80.1% as of December 31, 2018[68] - The company's net asset value was HKD 20,800,000 as of June 30, 2019, slightly down from HKD 21,000,000 as of December 31, 2018[71] Cash Flow - The company reported a net cash flow from operating activities of (15,891) thousand HKD for the six months ended June 30, 2019, compared to (28,605) thousand HKD for the same period in 2018[17] - Cash and cash equivalents increased to 40,925 thousand HKD as of June 30, 2019, up from 31,093 thousand HKD in the previous year[17] - The company generated a net cash inflow from investment activities of 20,626 thousand HKD, significantly higher than 1,039 thousand HKD in the prior year[17] - The company’s cash flow from financing activities was 7,973 thousand HKD, an increase from 1,866 thousand HKD in the same period last year[17] - The net cash inflow for the period was HKD 12,700,000, a significant improvement from a cash outflow of HKD 25,700,000 in 2018[68] Revenue Segments - Revenue from timber and agricultural products for the six months ended June 30, 2019, was HKD 13,541,000, an increase of 21.4% compared to HKD 11,160,000 for the same period in 2018[21] - The financial services segment reported a revenue of HKD 86,000 for the six months ended June 30, 2019, compared to HKD 1,259,000 for the same period in 2018, indicating a significant decline[25] - The company’s total revenue from external sales for the six months ended June 30, 2019, was HKD 13,627,000, with no revenue reported from cultural and logistics businesses during this period[25] - The company’s external sales from the Chinese market for the six months ended June 30, 2019, were HKD 13,541,000, compared to HKD 11,160,000 for the same period in 2018, reflecting a growth of 21.4%[30] Employee and Operational Metrics - Employee costs (excluding directors' remuneration) for the six months ended June 30, 2019, totaled HKD 4,513,000, a decrease of 57.7% from HKD 10,660,000 in 2018[38] - The company had 55 employees as of June 30, 2019, an increase from 53 employees as of December 31, 2018[78] Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM Listing Rules, except for the removal of the CEO position[96] - The audit committee consists of three independent non-executive directors, ensuring the accuracy and fairness of the group's financial statements[98] - The audit committee reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2019, confirming compliance with applicable accounting standards[98] Market Outlook and Risks - The company anticipates that the escalating US-China trade disputes will continue to create significant uncertainties for the Chinese and global economies, adversely affecting market sentiment[77]

Financial Performance - Revenue for the first quarter of 2019 was HKD 5,900,000, a decrease of 3.28% from HKD 6,100,000 in 2018[5] - The net loss attributable to ordinary equity holders for the period was HKD 5,200,000, compared to a loss of HKD 8,200,000 in the same period of 2018, representing a 36.59% improvement[5] - Basic and diluted loss per share for the period was HKD 0.63, down from HKD 0.98 in 2018, indicating a 35.71% reduction in loss per share[5] - Gross profit for the first quarter was HKD 912,000, down from HKD 1,374,000 in 2018, reflecting a decline of 33.67%[6] - The total comprehensive loss for the period was HKD 5,153,000, compared to HKD 9,821,000 in 2018, marking a 47.60% improvement[8] Expenses and Losses - Total administrative expenses decreased to HKD 6,161,000 from HKD 10,654,000, a reduction of 42.56%[6] - The company reported a pre-tax loss of HKD 5,243,000, an improvement from a pre-tax loss of HKD 9,698,000 in the previous year[6] - The estimated interest expense for other borrowings was HKD 176,000, slightly up from HKD 170,000 in the previous year[5] - The estimated interest expense for convertible bonds was HKD 344,000, down from HKD 910,000 in the previous year[5] Revenue Sources - Revenue from customer contracts for timber and agricultural products was HKD 5,838,000, an increase from HKD 5,516,000 in 2018[13] Dividends and Shareholder Actions - The company did not declare any dividends for the reporting period, consistent with the previous year[5] - The company does not plan to declare any dividends for the reporting period[21] - The company completed the subscription of 166,200,000 new shares at a price of HKD 0.05 per share, raising approximately HKD 8,100,000[27] - The company announced a share consolidation, where every eight existing shares will be consolidated into one share, pending shareholder approval[27] Corporate Governance and Compliance - The company’s directors and major shareholders had no competing businesses or conflicts of interest during the reporting period[53] - The company’s board of directors confirmed compliance with the trading standards and the code of conduct for securities transactions during the reporting period[54] - The company’s audit committee reviewed the quarterly report and confirmed that the performance was prepared in accordance with applicable accounting standards[56] - The company has adopted a corporate governance code and will continue to review its board structure for suitable candidates[55] Operational Environment and Strategy - The company operates primarily in Hong Kong, Cambodia, and China, facing various risks including foreign exchange risk and environmental factors[26] - The company is closely monitoring its operational environment and is looking for investment opportunities with growth potential[30] Stock Options and Securities - The company granted stock options under its stock option plan, with a total of 10,806,395 options granted at an exercise price of HKD 0.099[45] - The fair value of stock options granted on November 10 and 13, 2017, was determined to be HKD 0.0593 and HKD 0.0596 respectively[46] - The company reported no purchases, redemptions, or sales of its listed securities during the reporting period[48] - The company’s major shareholders held interests of 5% or more in the company’s shares, excluding directors and executives[39] - As of March 31, 2019, the company had a total of 831,261,212 shares issued[41] - The company did not engage in any arrangements allowing directors or executives to benefit from purchasing shares or bonds during the reporting period[38]