Financial Performance - Revenue for the six months ended December 31, 2024, was HKD 2,304,951, a decrease of 18.7% compared to HKD 2,835,216 for the same period in 2023[5] - Gross profit increased to HKD 15,484, up 15.8% from HKD 13,367 in the previous year[5] - The company reported a profit attributable to owners of the company from continuing operations of HKD 981, compared to HKD 403 in the previous year[7] - Total comprehensive income attributable to owners was HKD 1,071, a significant recovery from a loss of HKD 8,125 in the same period last year[7] - The company reported a profit of HKD 981 for the period, compared to a loss of HKD 6,405 in the previous year[10] - The total comprehensive income for the period was HKD 1,071, compared to a total comprehensive loss of HKD 8,125 in the same period last year[10] - The group reported a loss from continuing operations of HKD 981,000 for the six months ended December 31, 2024, compared to a profit of HKD 403,000 in the same period of 2023[27] Assets and Liabilities - Non-current assets increased to HKD 19,064 from HKD 12,878, reflecting a growth in property, plant, and equipment[9] - Inventory rose to HKD 20,834, up from HKD 11,885, indicating potential market expansion or increased production[9] - Current liabilities increased to HKD 28,490 from HKD 26,109, suggesting a rise in operational costs[9] - The company’s total equity increased to HKD 338,769 from HKD 336,432, indicating stability in financial position[9] - The company’s total equity attributable to owners decreased to HKD 331,093 from HKD 337,960, a decline of 2.6%[10] - Trade receivables increased to HKD 153,998,000 as of December 31, 2024, compared to HKD 151,165,000 as of June 30, 2024[31] - Total trade payables decreased to HKD 2,985,000 as of December 31, 2024, from HKD 6,427,000 as of June 30, 2024[36] - The net current assets were approximately HKD 319,738,000, slightly decreased from HKD 323,749,000 as of June 30, 2024[52] Operational Changes - The company has ceased operations in coal mining and construction services as of February 2024[12] - The group has not recorded any revenue from heating services during the period due to the cessation of operations in Tianjin[44] - The company plans to focus on expanding its fresh and agricultural products trade and meat processing segments moving forward[12] - The group plans to establish food processing plants for fresh agricultural products in cities like Huizhou and Baoan to penetrate the market[48] Income and Expenses - Interest income from lending business was HKD 2,338, slightly up from HKD 2,302 in the previous year[15] - The company’s administrative expenses amounted to HKD 5,131, contributing to the overall loss before tax of HKD 5[18] - The group recorded a loss of approximately HKD 1,978,000 in the lending business, compared to a profit of HKD 1,050,000 in the previous year, mainly due to increased expected credit loss provisions[41] - Other income decreased to approximately HKD 808,000 from HKD 3,184,000, primarily due to the absence of government grants and property sales in the current period[39] Shareholder Information - Major shareholders included Hsu Kung Ming with a beneficial ownership of 600,000 shares (0.16%) and 102,719,000 shares (28.17%) held through a holding entity[59] - The company did not recommend an interim dividend for the six months ended December 31, 2024, consistent with the previous year[25] Compliance and Governance - The audit committee reviewed the unaudited condensed consolidated financial statements, ensuring compliance with applicable accounting standards and GEM listing rules[71] - The board of directors includes three executive directors and three independent non-executive directors[72] - The announcement complies with GEM listing rules and aims to provide accurate information about the company[72] - The board confirms that the information in the announcement is complete and not misleading[72]

Revenue and Financial Performance - Revenue for the year ended 30 June 2024 was approximately HK$5,847.76 million, representing a 16.15% increase compared to 2023, primarily driven by increased cattle sales[15] - Revenue increased by 16.15% to HK$5,847.76 million, driven by higher cattle sales[19][22] - The company recorded a loss of HK$6.2 million for the year, compared to a profit of HK$8.85 million in 2023, mainly due to loan receivable recoverability issues and fair value losses on financial assets[15] - The Group recorded a loss of HK$18.91 million, up from HK$4.68 million in 2023, primarily due to recoverability issues with loan receivables and fair value losses[22] - Gross profit rose to HK$32.52 million with a gross profit margin of 0.56%, up from 0.20% in 2023[22] - The Group recorded a revenue of approximately HK$5,711.43 million from the trading of fresh produce and agricultural products, accounting for 97.67% of total revenue[23] - The meat processing segment saw a dramatic increase in revenue to approximately HK$132.33 million, contributing 2.26% to total revenue with a gross profit margin of 1.80%[23] - Revenue from loan interest income decreased to approximately HK$4.01 million, accounting for 0.07% of total revenue, with a loss of approximately HK$9.99 million[23] - The Group's heating supply services segment generated a profit of approximately HK$1.66 million in 2024, compared to a loss of HK$3.65 million in 2023, due to a subsidy of HK$1.92 million from the PRC local government[49] - The coal mining and construction services segment recorded a revenue of HK$75.63 million in 2024, down from HK$127.07 million in 2023, and recorded a loss of HK$12.26 million, leading to the discontinuation of the segment[51] - The Group's financial results for the Year are detailed in the consolidated statement of profit or loss and other comprehensive income on pages 81 to 82 of the annual report[174] - A summary of the Group's results, assets, and liabilities for the last five financial years is provided on page 176 of the annual report[174] Loan Receivables and Credit Risk - Impairment losses on loan receivables under the ECL model amounted to approximately HK$8.07 million, while fair value losses on financial assets at FVTPL were approximately HK$10.81 million[15] - Impairment losses under ECL model for loan receivables were HK$8.07 million, reversing from a HK$8.06 million reversal in 2023[19][22] - As of 30 June 2024, the Group had 13 outstanding loans, with balances ranging from HK$1,000,000 to HK$7,000,000 and interest rates from 6.00% to 18.00%[25][26] - The top five borrowers constituted approximately 59.04% of the total principal amount and 59.54% of the Group's loan receivables[27] - The Group's loan portfolio includes 9 individual borrowers and 4 corporate borrowers, with only one loan secured by a second charge on a property in Hong Kong[25] - The senior management conducts face-to-face interviews and preliminary assessments of applicants' repayment ability and creditworthiness[32] - The loan approval process includes document collection, assessment of repayment ability, senior management discussion, and signing of loan agreements[30][31][32] - The senior management conducts credit risk assessments on loan applicants, including client identification, financial and legal due diligence, repayment ability assessment, and creditworthiness assessment[34][37] - Loan terms are determined based on factors such as borrower creditworthiness, loan principal, predicted recoverability, prevailing market interest rates, and pledged asset security[35][38] - The senior management monitors loan repayment status through monthly credit checks, litigation searches, and accounting records, ensuring timely repayments[36][39] - In cases of delinquent loans, the senior management reviews repayment schedules and may initiate legal proceedings to recover outstanding loan principal and interest[41][43] - Global high interest rates have adversely affected the financial positions and repayment abilities of the company's customers, increasing credit risks[42][43] - The company periodically reports overdue loan figures to the Board, which assesses impairment indications and determines impairment loss amounts[44][46] - Expected Credit Loss (ECL) for loan receivables is determined using historical data adjusted for current and forward-looking macroeconomic factors[45][46] - An independent firm of professional valuers conducts valuations on the allowance for ECL on loan receivables, which is cross-examined by independent auditors[45][46] - The Group's loan receivables are classified into three stages: Stage 1 (performing) with ECL of HK$0.04 million, Stage 2 (doubtful) with ECL of HK$0.62 million, and Stage 3 (default) with ECL of HK$21.94 million as of 30 June 2024[47] - Aggregate ECL impairment of the Group as of 30 June 2024 was approximately HK$22.60 million, resulting in an ECL impairment loss of HK$8.07 million after exchange alignment adjustment[47] Business Operations and Strategy - Core business operations included trading of fresh produce, agricultural products, meat production, processing, packaging, delivery, money lending, and heating supply services[16] - The company discontinued its coal mining and construction services during the year[16] - Meat processing is expected to be the major growth driver for the company moving forward[16] - The Group expects meat processing to be a major growth driver in the future[19] - The Group plans to maintain diversified business operations and scale to create more value for shareholders[20] - The Group's meat processing factory began operations in April 2024, focusing on cutting, processing, packing, cooling, and distribution[23] - The Group commenced factory operations in China for cutting, processing, packing, cooling, and distribution, enabling faster response to market demands and enriching the product portfolio with new ready-to-cook and low-temperature processed meat products[53] - The Group plans to continue promoting branded products, developing valuable customers, broadening the customer base, and improving factory operation efficiency to create value for shareholders[54] - The company disposed of its indirect wholly-owned subsidiary, Ordos City Taipu Mining Construction Limited, in March 2024[61] - The company's coal mining and construction services revenue is concentrated among fewer than five customers, with significant risks if key customers face adverse business conditions or terminate relationships[73][76] - The company's coal mining and construction services are provided under management contracts with terms of one to two years, posing risks if contracts are not renewed or new customers are not secured[74][77] - Mining and construction operations face risks such as technical problems, natural disasters, accidents, and equipment failures, which could disrupt operations and damage business reputation[75][78] - The company faces increasing competition from other mining service providers, particularly in Inner Mongolia, which may lead to lower service fees and reduced profit margins[79] - The coal mining and construction services business segment has been disposed of, eliminating related risks[81][83] - The company faces intensified competition from other mining service providers, particularly in the unfavorable coal mining market conditions[82] - The company may need to reduce fees for mining-related services to enhance competitiveness, potentially lowering profit margins[82] - The company will strengthen corporate management and improve service quality to maintain competitiveness and customer relationships[82] - The company is closely monitoring national regulatory policies for the coal industry and changes in mineral resources management policies to ensure normal operations[80][82] - The company's operations are subject to a wide range of PRC laws and regulations, which could increase compliance efforts and operating costs if changed[80][82] - The company will liaise with mine owners to respond to regulatory changes in a timely manner[80][82] Financial Position and Liquidity - The company maintained a strong financial position with bank and cash balances of approximately HK$81.76 million at the end of the year[16] - Bank and cash balances stood at HK$81.76 million at the end of the year[19] - The Group held cash and cash equivalents of approximately HK$81.76 million as of 30 June 2024, with net current assets of HK$323.75 million and a current ratio of 13.40[55] - Cash and cash equivalents held by the company amounted to HK$81.76 million as of June 30, 2024, compared to HK$105.08 million in 2023[60] - The company's net current assets were HK$323.75 million as of June 30, 2024, slightly down from HK$332.45 million in 2023[60] - The current ratio improved significantly to 13.40x as of June 30, 2024, compared to 3.62x in 2023[60] - The company had no bank borrowings as of June 30, 2024, maintaining the same position as 2023[60] - The company had no significant capital commitments as of June 30, 2024, consistent with 2023[62] - No dividends were paid or proposed during the year, maintaining the same position as 2023[67] - The company had no significant contingent liabilities as of June 30, 2024[67] - The company had no pledged or restricted bank deposits as of June 30, 2024, compared to RMB5.00 million pledged and RMB0.50 million restricted in 2023[63] - As of 30 June 2024, the company's distributable reserves amounted to approximately HK$202.45 million, a decrease from HK$275.43 million in 2023[177] Corporate Governance and Board Activities - The Board currently consists of six Directors, including three executive Directors and three independent non-executive Directors, each bringing diverse professional and industry experience to the Group's business development[101] - The Board held nine meetings during the year, with all Directors attending all meetings except for Mr. Luk Chi Shing, who was appointed on 30 August 2024 and attended 0/9 meetings[107] - Mr. Luk Chi Shing, aged 55, joined the Company as an independent non-executive Director on 30 August 2024, bringing over 25 years of experience in auditing, financial management, and corporate mergers and acquisitions[94][95] - The Company has adopted the required standard of dealings as set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for securities transactions by Directors, with all Directors complying throughout the year[99][104] - The Board is committed to maintaining good corporate governance standards, which provide a framework for business strategy formulation, risk management, and enhancing transparency and accountability to shareholders and creditors[97][102] - The company has three independent non-executive directors, representing more than one-third of the Board, with one having appropriate professional qualifications or accounting expertise[113] - The Audit Committee held five meetings during the year, with two attended by the company's independent auditors to exchange views and concerns[119] - The Audit Committee reviewed the Group's quarterly report for the three months ended 30 September 2023, interim report for the six months ended 31 December 2023, and audited annual results for the year ended 30 June 2024[120] - The company has not yet appointed a new chief executive officer following the resignation in January 2021, with duties currently undertaken by executive directors collectively[112] - The company secretary, Mr. Choi Wai Yip, completed not less than 15 hours of relevant professional training during the year[117] - The Board established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, each with defined written terms of reference[118] - All directors participated in continuous professional development, including training courses and internal briefings on corporate governance and regulations[111] - The company maintains an appropriate system to protect shareholders' interests, as ensured by the independent non-executive directors[113] - The company provides independent professional advice to directors at its expense to assist them in fulfilling their duties[109] - The company's Audit Committee made recommendations to the Board and management regarding financial reporting and internal control procedures[120] - The remuneration of the Independent Auditor for audit services for the year ended 30 June 2024 amounted to HK$800,000, a decrease from HK$1,430,000 in 2023[142] - The Remuneration Committee held two meetings during the year to review the company's remuneration policy and recommend specific remuneration packages for Directors and senior management[133] - The Nomination Committee held one meeting during the year to review the structure, size, and composition of the Board and make recommendations on the appointment of Directors[130] - The Remuneration Committee comprises two independent non-executive Directors and one executive Director, responsible for recommending remuneration policies and packages for Directors and senior management[131][132] - The Nomination Committee comprises two independent non-executive Directors and one executive Director, responsible for formulating nomination policies and reviewing Board diversity[127][128] - The company's independent auditor, Confucius International CPA Limited, issued a statement regarding their reporting responsibilities, detailed in the "Independent Auditor's Report" section of the annual report[140] - The Audit Committee is responsible for recommending the appointment, re-appointment, and removal of the independent auditor, as well as approving their remuneration and terms of engagement[141] - Directors are subject to retirement by rotation at least once every three years and are eligible for re-election at the AGM[135] - The company has established a Remuneration Committee with written terms of reference in compliance with the CG Code[131] - The company has established a Nomination Committee with written terms of reference in compliance with the CG Code[126] - Independent auditor's remuneration for audit services for the year ending June 30, 2024, was HKD 800,000, a decrease from HKD 1,430,000 in 2023[145] - The Board is responsible for maintaining sound risk management and internal control systems to safeguard assets and shareholders' interests[146] - A risk management policy has been established to ensure the Group operates in a safe and steady environment[147] - The risk management process includes periodic risk identification, analysis, and annual risk management meetings[148] - The Group engages an independent professional adviser to review the effectiveness of risk management and internal control systems annually[156] - The Board has adopted a Board Diversity Policy to achieve diversity, including increasing the number of female Directors in the coming years[161] - The Nomination Committee reviews the Board Diversity Policy to ensure its continued effectiveness[161] - The Board has adopted a nomination policy for selecting and recommending candidates for directorship[162] - The Nomination Committee recommends candidates based on skills, knowledge, experience, and other relevant criteria[162] - The Board comprises six Directors, including three independent non-executive Directors, promoting critical review and control of the management process[161] - The Board adopted a dividend policy on 8 May 2019, aiming to maintain adequate cash reserves for working capital, future growth, and shareholder value without a pre-determined dividend payout ratio[165][166] - The Board considers factors such as financial condition, liquidity, working capital requirements, debt levels, and market conditions when declaring dividends[167] - The Group has established disclosure procedures for price-sensitive information to ensure timely, fair, and accurate disclosure of inside information[168] - The Company provides shareholders with high standards of financial transparency through quarterly, interim, and annual reports, as well as announcements and circulars on the Stock Exchange website[169] - The Company did not recommend the payment of a dividend for the Year (2023: nil)[174] Shareholding and Corporate Structure - Mr. Xu Gongming is deemed to be interested in 102,719,000 shares held by Redwood Bay Investment Group International Company Limited, representing 27.42% of the company's shareholding[186][188] - Ms. Yan Weiwei is deemed to be interested in 74,474,000 shares held by Star Link Technology Limited, representing 19.88% of the company's shareholding[188] - The company acquired 10,000,000 shares on the Stock Exchange in May 2024 at a total consideration of approximately HK$1,985,000, which were subsequently cancelled in July 2024[72] - The company has a share option scheme allowing the issuance of up to 26,662,511 shares, representing approximately 7.12% of issued shares[192] - No options have been granted under the share option scheme since its adoption[192] - The company's independent auditor changed to Confucius on 20 June 2024, replacing Shinewing (HK) CPA Limited[193] - The company's emolument policy for senior management is based on merit, qualifications, and competence, with director remuneration tied to operating results and individual performance[193] - The company maintains sufficient public float as required by GEM Listing Rules[193] Environmental, Social, and Governance (ESG) - The ESG report scope includes money lending in Hong Kong, fresh agricultural products trading, and food processing in Shenzhen, excluding live cattle trading but including Du Du Fresh Meat Industry[197][199] - The company follows four reporting principles and the latest disclosure requirements of the ESG Reporting Guide under Appendix C2 of the GEM Listing Rules to ensure the ESG report clearly presents the environmental, social, and governance issues of concern to stakeholders[200] - The corporate governance section will be separately presented in the "Corporate Governance Report" section of the annual report[200] - The ESG report includes an index based on the ESG Reporting Guide for reference[200] Risk Factors and Market Conditions - Fluctuations in fresh produce prices could materially and adversely affect the company's profitability, with fresh produce costs expected to account for substantially all of its cost of sales[72] - The company relies on third-party logistics providers for importing fruits and delivering fresh produce, with potential disruptions due to events like COVID-19, which could increase loss rates and affect timely supply[72] - The company's money lending business is exposed to credit risks, with most loans being unsecured, potentially leading to unrecoverable loans if customer financial positions deteriorate[72] - The company's coal mining and construction services revenue is concentrated among fewer than five customers, with significant risks if key customers face adverse business conditions or terminate relationships[73][76] - The company's coal mining and construction services are provided under management contracts with terms of one to two years, posing risks if contracts are not renewed or new customers are not secured[74][77] - Mining and construction operations face risks such as technical problems, natural disasters, accidents, and equipment failures, which could disrupt operations and damage business reputation[75][78] - The company faces increasing competition from other mining service providers, particularly in Inner Mongolia, which may lead to lower service fees and reduced profit margins[79] - The coal mining and construction services business segment has been disposed of, eliminating related

Financial Performance - For the three months ended December 31, 2023, the company reported revenue of HKD 1,478,998,000, a 2.5% increase from HKD 1,437,847,000 in the same period of 2022[8] - For the six months ended December 31, 2023, the company achieved revenue of HKD 2,908,186,000, representing a 20% increase compared to HKD 2,426,138,000 in the prior year[8] - The gross profit for the three months ended December 31, 2023, was HKD 7,618,000, compared to HKD 758,000 in the same period of 2022, indicating a significant improvement[8] - The company reported a loss before tax of HKD 2,327,000 for the three months ended December 31, 2023, a reduction from a loss of HKD 3,055,000 in the previous year[8] - The total comprehensive loss for the six months ended December 31, 2023, was HKD 6,550,000, down from HKD 17,298,000 in the same period of 2022, showing a positive trend[9] - For the six months ended December 31, 2023, the company reported total revenue of HKD 2,908,186 thousand, an increase of 19.8% compared to HKD 2,426,138 thousand for the same period in 2022[23] - The company incurred a loss of HKD 6,405 thousand during the period, compared to a loss of HKD 16,202 thousand in the same period last year, representing a 60.5% improvement[14] - The company reported a loss before tax of HKD 5,377 for the six months ended December 31, 2023, compared to a loss of HKD 15,465 for the same period in 2022, representing a 65.2% improvement[27] - The group recorded revenue of approximately HKD 2,908,190,000 for the six months ending December 31, 2023, representing a 20% increase compared to HKD 2,426,140,000 in the same period of 2022[44] - Gross profit increased from HKD 4,480,000 in 2022 to HKD 15,860,000 in 2023, with the overall gross margin rising from 0.18% to 0.54%[44] - The group recorded a net loss attributable to owners of approximately HKD 6,400,000, a reduction from HKD 16,200,000 in the previous year[47] Assets and Liabilities - As of December 31, 2023, the company's non-current assets totaled HKD 18,415,000, a decrease from HKD 21,145,000 as of June 30, 2023[11] - The company's cash and cash equivalents stood at HKD 84,436,000 as of December 31, 2023, down from HKD 105,081,000 at the end of June 2023[11] - As of December 31, 2023, the total assets less current liabilities amounted to HKD 344,454 thousand, a decrease from HKD 353,591 thousand as of June 30, 2023[12] - The company's cash and cash equivalents decreased to HKD 84,436 thousand from HKD 146,974 thousand year-on-year, reflecting a decline of 42.5%[18] - The company’s equity attributable to owners was HKD 337,960 thousand, down from HKD 346,085 thousand as of June 30, 2023[14] - Trade payables amounted to HKD 37,101,000 as of December 31, 2023, down from HKD 68,148,000 as of June 30, 2023[43] Operational Highlights - The revenue from fresh agricultural products trade was HKD 2,832,914 thousand, up 19.9% from HKD 2,361,693 thousand year-on-year[23] - Fresh agricultural products segment generated revenue of HKD 2,832,914, accounting for 97.4% of total revenue[27] - The group recorded revenue of approximately HKD 2,832,910,000 for the period, an increase from HKD 2,361,690,000 in 2022, representing a growth of 19.9%[55] - The gross profit for the trading segment increased to HKD 7,620,000, up from HKD 2,520,000 in 2022, indicating significant operational maturity[55] - The group has suspended heating services since May 2023 due to fluctuations in international commodity and energy prices, resulting in no revenue from this segment[54] - The group continues to monitor market conditions to assess the feasibility of resuming operations in the heating services segment[54] Cash Flow and Financing - The net cash used in operating activities was HKD 30,711 thousand, compared to a net cash inflow of HKD 24,365 thousand in the previous year[18] - The company’s financing activities generated a net cash inflow of HKD 1,470 thousand, compared to a net cash outflow of HKD 10,817 thousand in the previous year[18] - The company incurred financing costs of HKD 573 for the six months ended December 31, 2023, down from HKD 736 in the same period of 2022[30] - The group has no bank borrowings as of December 31, 2023[74] Corporate Governance and Shareholder Information - The company has confirmed compliance with the corporate governance code and has not appointed a new CEO since the resignation in January 2021[93] - Major shareholders include Hsu Kung Ming with 110,069,000 shares (29.38%) and Yan Weiwei with 74,474,000 shares (19.88%) as of December 31, 2023[85] - The company has adopted a share option scheme allowing the issuance of a total of 26,662,511 shares, representing approximately 7.12% of the issued shares as of the report date[87] - No options have been granted under the share option scheme since its adoption[87] - There are no interests held by directors or major shareholders in any competing businesses[88] - The company has maintained a high level of corporate governance to enhance shareholder value[93] Future Outlook - Future outlook and performance guidance were not explicitly provided in the report[8] - The company continues to focus on expanding its fresh agricultural products trade and mining services as key growth areas moving forward[26] - The group is actively seeking new strategic opportunities in line with China's modernization tasks and carbon neutrality goals[66] - The group plans to continue investing in water resource management, property investment and development, and infrastructure categories in the second half of 2023[66] - The group aims to enhance its risk management capabilities while maintaining stable growth in core businesses[66]

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 2,908,186, an increase of 20% compared to HKD 2,426,138 for the same period in 2022[5] - Gross profit for the six months ended December 31, 2023, was HKD 15,855, compared to HKD 4,484 for the same period in 2022, representing a significant improvement[5] - The net loss for the six months ended December 31, 2023, was HKD 6,550, a reduction from HKD 17,298 in the same period of 2022, indicating a 62% improvement in loss[5] - The total comprehensive loss for the six months ended December 31, 2023, was HKD 8,308, a significant improvement from HKD 31,162 in the same period of 2022[7] - The company reported a loss attributable to owners of approximately HKD 6,400,000, a decrease from HKD 16,200,000 in the previous year, mainly due to improved gross profit[40] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 419,229, down from HKD 459,147 as of June 30, 2023[9] - Current liabilities decreased to HKD 93,190 as of December 31, 2023, from HKD 126,701 as of June 30, 2023, reflecting improved liquidity management[9] - The company’s non-current assets decreased to HKD 18,415 as of December 31, 2023, from HKD 21,145 as of June 30, 2023, indicating a reduction in long-term investments[9] - The company’s total equity attributable to owners decreased to HKD 337,960 thousand as of December 31, 2023, from HKD 346,085 thousand at the beginning of the period[10] - Trade receivables decreased to HKD 110,911,000 as of December 31, 2023, down from HKD 138,959,000 as of June 30, 2023, reflecting a decline of 20.2%[33] Cash Flow and Financing - Cash and cash equivalents decreased to HKD 84,436 as of December 31, 2023, from HKD 105,081 as of June 30, 2023, indicating a need for cash flow management[9] - Operating cash flow for the six months ended December 31, 2023, was a net outflow of HKD 30,711 thousand, compared to a net inflow of HKD 24,365 thousand in the same period of 2022[13] - Cash and cash equivalents amounted to approximately HKD 84,440,000 as of December 31, 2023, down from HKD 105,080,000 on June 30, 2023[57] - The group has no bank borrowings as of December 31, 2023, maintaining a strong liquidity position[57] Revenue Sources - The revenue from fresh agricultural product trading was HKD 2,832,914 thousand, representing a 19.9% increase from HKD 2,361,693 thousand in the previous year[21] - Revenue from coal mining and construction services was approximately HKD 72,970,000, accounting for 2.51% of total revenue, with a loss of about HKD 6,810,000[41] - The company recorded no revenue from heating services during the period, down from HKD 2,350,000 in 2022, but received a subsidy of approximately HKD 1,930,000 from the Chinese government[46] - Revenue from fresh agricultural products trade was approximately HKD 2,832,910,000, accounting for 97.41% of total revenue, with a profit of HKD 7,620,000[49] Government Support and Grants - Government grants received rose significantly to HKD 1,925,000 in the first half of 2023 compared to HKD 1,345,000 in the same period of 2022, marking a growth of 43%[24] Corporate Governance and Compliance - The audit committee, consisting of four independent non-executive directors, reviewed the unaudited condensed consolidated financial statements and confirmed compliance with applicable accounting standards and GEM listing rules[76] - The company is committed to maintaining high levels of corporate governance to enhance shareholder value, with a clear separation of roles between the chairman and the CEO[74] - The board of directors has confirmed compliance with the trading standards and the company's code of conduct during the period[72] Future Plans and Market Position - The group plans to expand its fresh agricultural products trade by establishing processing plants in cities like Huizhou and Baoan, targeting supermarkets and online shopping platforms[53] - The group anticipates a decrease in revenue from coal mining and construction services due to increased production costs and market competition[52] - The group has temporarily ceased heating services but may resume if good investment opportunities arise in the industry[53] Employment and Staff - The group employed 149 staff members as of December 31, 2023, with compensation based on industry standards and individual performance[60]

Financial Performance - For the three months ended September 30, 2023, the company reported revenue of HKD 1,429,188,000, an increase of 44.7% compared to HKD 988,291,000 for the same period in 2022[4] - The cost of services provided was HKD 1,420,951,000, resulting in a gross profit of HKD 8,237,000, compared to a gross profit of HKD 3,726,000 in the previous year[4] - The company incurred a loss before tax of HKD 3,050,000, significantly improved from a loss of HKD 12,410,000 in the same quarter of 2022[4] - The net loss for the period was HKD 3,191,000, compared to a net loss of HKD 13,907,000 in the prior year, indicating a reduction in losses[4] - Basic and diluted loss per share was HKD 0.82, improved from HKD 3.53 in the same quarter of 2022[6] - The total comprehensive loss for the period was HKD 13,218,000, compared to HKD 32,775,000 in the previous year, reflecting a significant decrease[6] - The company recorded revenue of approximately HKD 1,429,190,000 for the three months ended September 30, 2023, representing an increase of about 44.61% compared to HKD 988,290,000 in the same period of 2022[23] - Gross profit increased from HKD 3,730,000 in 2022 to HKD 8,240,000 in 2023, with the overall gross margin rising from 0.38% to 0.58%[23] - Other income for the period was approximately HKD 980,000, up from HKD 780,000 in 2022, primarily from interest income and gains from the sale of fixed assets[23] - The company reported a loss attributable to owners of approximately HKD 3,070,000 for the period, a decrease from HKD 13,240,000 in the same period of 2022[24] Revenue Sources - Revenue from fresh produce and agricultural products trading was HKD 1,387,328,000, compared to HKD 977,522,000 in 2022[12] - Revenue from mining and construction services was HKD 40,577,000, a significant increase from HKD 9,006,000 in the previous year[12] - Revenue from fresh agricultural product trading reached approximately HKD 1,387,330,000, an increase from HKD 977,520,000 in the previous year, accounting for 97.07% of total revenue[31] Expenses and Costs - The company incurred administrative and other operating expenses of HKD 9,540,000, down from HKD 11,480,000 in 2022[23] - Financing costs decreased to HKD 320,000 from HKD 470,000 in the previous year[23] - The company recorded a tax expense of HKD 140,000, significantly lower than HKD 1,500,000 in 2022[23] Strategic Direction - The company continues to focus on its core business areas, including fresh product trading and coal mining services, as part of its strategic direction[9] - The group plans to expand its trading business to include other products, aiming to diversify revenue sources and enhance its business portfolio[38] - The board anticipates stable revenue from coal mining and construction services despite challenges such as rising production costs and intense market competition[36] Corporate Governance - The company has established an Audit Committee consisting of four independent non-executive directors to oversee financial reporting and internal controls[51] - The company is committed to maintaining high levels of corporate governance to enhance shareholder value[49] - The board includes three executive directors and four independent non-executive directors as of the report date[51] Management and Leadership - The company has not appointed a new CEO since the previous CEO resigned in January 2021, with responsibilities currently shared among executive directors[49] - The company is reviewing its board structure to determine the need for a suitable candidate to fill the CEO position[49] Financial Position - As of September 30, 2023, total equity attributable to the owners of the company was HKD 333,182,000, down from HKD 346,085,000 at the beginning of the quarter[7] - The group recorded a fair value loss of approximately HKD 2,400,000 on financial assets measured at fair value through profit or loss during the period[33] - The outstanding balance of loans granted ranges from approximately HKD 300,000 to HKD 7,000,000, with annual interest rates between 6.0% and 18.0%[29] - The group has approximately RMB 12,000,000 in unsecured loans at a fixed annual interest rate of 5.5% provided by an independent third party to support its operations[35] - As of September 30, 2023, the top five borrowers accounted for 46.77% of the total principal amount of the group's loan portfolio and 50.86% of accounts receivable[29] - The group will continue to monitor the creditworthiness of borrowers and take necessary actions to minimize credit risk associated with its lending business[36] Other Information - The company did not recommend the distribution of dividends for the period, consistent with the previous year[20] - The financial results are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with relevant regulations[10] - The unaudited condensed consolidated financial statements for the period have been reviewed by the Audit Committee, ensuring compliance with applicable accounting standards and GEM listing rules[51] - The group has temporarily suspended heating services in Tianjin due to fluctuations in international commodity and energy prices, with no revenue recorded from this segment during the period[30] - The board remains optimistic about the demand for imported fruits and quality agricultural products in China, driven by increasing purchasing power and living standards[38] - The company recorded a foreign exchange loss of HKD 10,027,000 related to the translation of overseas operations, compared to a loss of HKD 18,868,000 in the same period last year[6]

Financial Performance - The Group recorded a revenue of approximately HK$5,161.84 million, representing an increase of 632% compared to the previous year[16]. - The audited consolidated profit for the year attributable to owners of the Company amounted to HK$1.46 million, a turnaround from a loss of HK$8.96 million in 2022[16]. - The increase in revenue was primarily due to the operational maturity of the new business in trading of fresh produce and agricultural products[16]. - The Group recorded a revenue of approximately HK$5,161.84 million for the year ended June 30, 2023, representing a 632% increase compared to HK$705.04 million in 2022[23]. - The Group's gross profit decreased to HK$11.13 million with a gross profit margin of 0.22%, down from HK$13.19 million and 1.87% in the previous year[23]. - Other income for the year was approximately HK$6.66 million, a decrease from HK$8.33 million in 2022, primarily due to a significant drop in handling income for packing coal[24]. - The Group recorded a loss of approximately HK$4.68 million for the year, a reduction from a loss of HK$12.52 million in 2022[31]. - The Group's profit attributable to owners for the year was approximately HK$1.46 million, compared to a loss of HK$8.96 million in 2022[31]. Business Segments - The core business includes coal mining and construction services, trading of fresh produce and agricultural products, and general trading and money lending[17]. - The trading business is expected to be the main driver of the Group's growth moving forward[17]. - The Group aims to maintain healthy development across different business segments to diversify its income sources[18]. - Revenue from the provision of coal mining and construction services was approximately HK$127.07 million, accounting for 2.46% of total revenue, with a slight gross profit of HK$1.06 million[32]. - The trading of fresh produce and agricultural products generated revenue of approximately HK$5,016.38 million, accounting for 97.18% of total revenue, despite a low gross profit margin due to high competition and food loss rates[94][96]. - General trading revenue was approximately HK$6.25 million, representing 0.12% of the Group's total revenue[94][96]. Loan Portfolio and Credit Management - The Group achieved a reversal of impairment loss in respect of loan receivables amounting to HK$8.06 million, reflecting improved financial positions of borrowers[33]. - As of June 30, 2023, the Group had 22 borrowers, consisting of 18 individual borrowers and 4 corporate borrowers, with a total of 22 outstanding loans[38]. - The outstanding balance of each loan ranged from approximately HK$100,000 to HK$7,000,000, with interest rates between 6.0% and 18.0% per annum[40]. - The top five borrowers constituted 35.26% of the total principal amount of the Group's loan portfolio and 37.15% of the Group's loan receivables, including interest receivables[41]. - The Group's loan portfolio is primarily focused on short-term loans, with all outstanding loans originally having a term of no more than one year[38]. - The Group's money lending business is exposed to credit risks, particularly as most loans are unsecured, which may affect the ability to recover outstanding payments[188]. - The Group applies the general approach under HKFRS 9 for expected credit loss (ECL) assessment, utilizing a three-stage model based on credit quality changes[82]. - The allowance for ECL on loan receivables is derived from gross credit exposure, recovery rate, and probability of default[82]. Operational Challenges and Market Conditions - The adverse financial conditions due to the COVID-19 pandemic have impacted the repayment ability of borrowers, increasing credit risks[76]. - The heating supply business has been temporarily suspended due to high volatility in gas prices and uncertainty regarding future government subsidies[122][126]. - The Group faces increasing competition from PRC-based mining service providers, particularly in Inner Mongolia, which may lead to reduced service fees and profit margins[183]. - Fluctuations in the prices of fresh produce products are expected to significantly impact the Group's profitability, with costs of fresh produce projected to account for a substantial portion of sales costs[194]. - The Group relies on third-party logistics for importing fruits, which may face disruptions due to unforeseen events, potentially increasing loss rates from product decay[192]. Strategic Initiatives and Future Outlook - The Group continues to monitor market conditions to evaluate the potential resumption of heating supply services in the future[93][95]. - Plans to expand the trading business to include other commodities to broaden revenue sources and business portfolio[125][128]. - The Group's strategic deployment will continue to focus on developing core capabilities for value creation and delivering rewards to shareholders[105]. - The Group is optimistic about the trading of fresh produce and agricultural products, driven by rising purchasing power in the PRC[124][127]. Corporate Governance and Management - The Group has established internal control procedures tailored for the HK Subsidiary and SZ Subsidiary according to their business needs and regulatory requirements[47]. - The risk management manager conducts preliminary assessments and creditworthiness evaluations for each loan application, ensuring compliance with internal procedures[46]. - The management provides quarterly reports on the money lending business to the Board, summarizing overdue unsecured loans[64]. - The Group's management continuously monitors loan repayment status and borrower creditworthiness through monthly credit checks and litigation searches[68]. Shareholder and Investment Information - The Group held 2,130,000 shares of UTS, representing approximately 0.53% of total issued shares as of June 30, 2023[107]. - The Group disposed of 1,746,000 shares of Binhai at an average price of approximately HK$1.67 per share, totaling approximately HK$2.92 million[106]. - The Group's investment in listed securities amounted to approximately HK$34.33 million, an increase from HK$30.52 million in 2022, reflecting a growth of 5.9%[98]. - The Group recorded a fair value gain on financial assets at FVTPL of approximately HK$6.31 million for the year, compared to HK$1.32 million in 2022, representing a significant increase of 377.3%[98]. Employee and Operational Metrics - The Group employed 546 staff members as of June 30, 2023, an increase from 321 in the previous year[156]. - The Group's operations are primarily based on project contracts, which are typically one to two years in duration, posing risks if clients do not renew contracts or if new clients are not acquired[180].

Financial Performance - For the three months ended March 31, 2023, the company reported revenue of HKD 1,515,547,000, a significant increase from HKD 79,998,000 in the same period last year, representing a growth of approximately 1,788%[4] - The gross profit for the same period was HKD 5,305,000, compared to HKD 1,886,000 in the previous year, indicating a substantial increase of 180%[4] - The company recorded a profit before tax of HKD 5,502,000 for the three months ended March 31, 2023, compared to a loss of HKD 6,165,000 in the same period last year[4] - The net profit attributable to the owners of the company for the three months was HKD 4,948,000, a turnaround from a loss of HKD 4,955,000 in the previous year[5] - For the nine months ended March 31, 2023, the total revenue reached HKD 3,941,685,000, up from HKD 131,111,000 in the same period last year, marking an increase of approximately 2,908%[4] - The company reported a net loss attributable to the owners of HKD 11,254,000 for the nine months, an improvement from a loss of HKD 16,091,000 in the previous year[5] - The basic and diluted earnings per share for the three months ended March 31, 2023, was HKD 0.07, compared to a loss per share of HKD 0.07 in the same period last year[5] - The total comprehensive income for the three months ended March 31, 2023, was HKD 5,736,000, compared to HKD 1,898,000 in the same period last year[5] Revenue Sources - The group recorded revenue of approximately HKD 3,941,690,000 for the nine months ended March 31, 2023, an increase of about 30 times compared to HKD 131,110,000 for the same period in 2022[23] - The group recorded revenue of approximately HKD 87,850,000 from coal mining and construction services, representing an increase from HKD 56,280,000 in 2022, accounting for 2.23% of total revenue[27] - Revenue from fresh agricultural products trade was approximately HKD 3,757,990,000, accounting for 95.34% of total revenue, with a pre-tax profit of HKD 4,300,000 compared to a loss of HKD 3,540,000 in 2022[36] - The group expanded its trade business to include marine sand supply, generating revenue of approximately HKD 84,890,000, which accounted for 2.15% of total revenue[37] Expenses and Losses - Other income for the period was approximately HKD 6,590,000, down from HKD 7,550,000 in the previous year, primarily due to a decrease in coal packaging service fees[23] - Administrative and other operating expenses were HKD 31,970,000, compared to HKD 31,370,000 in 2022[24] - Financing costs amounted to HKD 850,000, down from HKD 1,180,000 in the previous year[24] - Income tax expense for the period was HKD 2,250,000, compared to HKD 1,660,000 in 2022[24] - The group recorded a loss attributable to owners of approximately HKD 11,250,000 for the nine months ended March 31, 2023, compared to a loss of HKD 16,090,000 in the previous year[26] - The group experienced a loss of HKD 780,000 from investments in listed securities during the period, compared to a gain of HKD 480,000 in the previous year[23] Cash and Liquidity - As of March 31, 2023, the company held cash and cash equivalents of approximately HKD 79.05 million, down from HKD 156.49 million as of June 30, 2022[52] - The current ratio as of March 31, 2023, is approximately 3.64, compared to 4.33 as of June 30, 2022, indicating a decrease in liquidity[52] - The company has no bank borrowings as of March 31, 2023, maintaining a debt ratio of approximately 0.26[52] Corporate Governance - The company has adopted a share option scheme allowing for the issuance of up to 533,250,233 shares, representing 10% of the total shares issued as of the 2014 annual general meeting[62] - The audit committee, consisting of four independent non-executive directors, is responsible for reviewing the company's annual and quarterly reports[68] - The company has confirmed compliance with the GEM Listing Rules regarding securities trading by directors during the reporting period[65] - The company is committed to maintaining high standards of corporate governance to enhance shareholder value[67] - As of the report date, the board consists of three executive directors and four independent non-executive directors[70] - The chairman and CEO roles are currently separated, with the chairman leading the board's effectiveness[67] Strategic Outlook - The group anticipates stable revenue from coal mining and construction services despite challenges from COVID-19 and increased production costs, emphasizing the need for continuous new project orders[39] - The group will maintain strict control over new loan approvals to mitigate credit risk amid the economic impact of COVID-19[41] - The group expects continued demand for heating services due to urbanization and environmental regulations, although rising gas prices may impact profitability[41] - The company maintains an optimistic outlook on the fresh agricultural product trade business, driven by the expected growth in purchasing power and living standards in China[42] - A strategic partnership has been established with China Grain Reserves Corporation (Guangdong) to enhance product quality and customer relationships, focusing on the trade of bulk agricultural products such as sugar, live pigs, and rice[42] - The company plans to expand its trade business to include the supply and sale of sea sand and other products, broadening its revenue sources[44] Human Resources - The company employs 565 staff members, with compensation based on industry standards and individual performance[54] Shareholder Information - Major shareholders include Hsu Kung Ming with 2,054,380,000 shares (27.42%) and Wei Kai with 884,820,000 shares (11.81%) as of March 31, 2023[60] - The company has not disclosed any interests or potential conflicts of interest from directors or major shareholders in competing businesses[63] - No purchases, sales, or redemptions of the company's listed securities occurred during the reporting period[64] - The company has not granted any share options under the share option scheme since its adoption[62] - The company has no significant contingent liabilities or major lawsuits during the reporting period[55][56]

Financial Performance - For the three months ended December 31, 2022, the company reported revenue of HKD 1,437,847,000, a significant increase from HKD 27,861,000 in the same period last year, representing a growth of approximately 5,151%[9] - For the six months ended December 31, 2022, the company achieved revenue of HKD 2,426,138,000, compared to HKD 51,113,000 in the previous year, marking an increase of around 4,646%[9] - The gross profit for the three months ended December 31, 2022, was HKD 758,000, down from HKD 3,757,000 year-on-year, indicating a decline of approximately 80%[9] - The net loss for the six months ended December 31, 2022, was HKD 17,298,000, compared to a loss of HKD 11,421,000 in the same period last year, reflecting an increase in losses of about 51%[11] - The basic and diluted loss per share for the six months ended December 31, 2022, was HKD 0.22, compared to HKD 0.15 in the previous year, indicating a deterioration in per-share performance[11] - The total comprehensive loss for the six months ended December 31, 2022, was HKD 31,162,000, compared to a loss of HKD 5,006,000 in the previous year, representing a significant increase in total losses[11] - The company reported a loss before tax of HKD 15,465,000 for the six months ended December 31, 2022, compared to a loss of HKD 10,358,000 for the same period in 2021, indicating a deterioration in performance[29] - Basic and diluted loss per share for the six months ended December 31, 2022, was HKD 2.16, compared to HKD 1.48 for the same period in 2021, representing an increase in loss per share of 46%[38] Revenue Breakdown - The fresh agricultural products trading segment generated revenue of HKD 2,361,693,000, accounting for 97.3% of total revenue, while the coal mining and construction services segment contributed HKD 58,771,000[29] - Revenue from coal mining and construction services was approximately HKD 58,770,000, accounting for 2.42% of total revenue[47] - The fresh agricultural products trading business generated revenue of approximately HKD 2,361,690,000, accounting for 97.34% of the total revenue, with a gross profit of HKD 7,340,000 and classified profit of HKD 2,520,000[54] Expenses and Costs - Administrative and other operating expenses for the six months ended December 31, 2022, totaled HKD 24,517,000, an increase from HKD 22,788,000 in the previous year, reflecting a rise of approximately 7%[9] - The company incurred financing costs of HKD 736,000 for the six months ended December 31, 2022, a decrease from HKD 845,000 in the same period of the previous year, showing a reduction of 12.9%[33] - The company reported other income of HKD 2,195,000 for the six months ended December 31, 2022, down from HKD 3,118,000 in the previous year, reflecting a decline of 29.6%[30] - The company incurred an administrative and operating expense of HKD 24,520,000, compared to HKD 22,790,000 in the previous year[44] Assets and Liabilities - As of December 31, 2022, the total assets amounted to HKD 428,218,000, a slight decrease from HKD 440,282,000 as of June 30, 2022[13] - The total liabilities increased to HKD 125,311,000 as of December 31, 2022, from HKD 101,689,000 as of June 30, 2022, representing a rise of approximately 23%[15] - The company's equity attributable to owners decreased to HKD 323,548,000 from HKD 356,657,000, reflecting a decline of about 9.3%[16] - The company has no bank borrowings as of December 31, 2022, maintaining a debt-to-asset ratio of approximately 0.28[88] Cash Flow and Investments - The company's cash and cash equivalents decreased to HKD 146,974,000 from HKD 156,490,000, reflecting a net decrease of HKD 9,516,000[20] - The net cash generated from operating activities for the six months ended December 31, 2022, was HKD 24,365,000, significantly higher than HKD 5,746,000 for the same period in 2021[20] - The cash flow from investing activities showed a net outflow of HKD 16,130,000, contrasting with a net inflow of HKD 32,872,000 in the previous year[20] Strategic Initiatives and Market Outlook - The company has established a strategic partnership with China Storage (Guangdong) Grain Trade Co., Ltd. to enhance product quality and customer relationships in the fresh agricultural products trade[71] - The fresh agricultural products trade is viewed as a key growth driver, with plans to expand trade operations to include other commodities[72] - The group plans to continue focusing on the development of its trading business and explore new market opportunities in the agricultural sector[54] - The company anticipates that the ongoing COVID-19 pandemic may impact loan repayments and increase credit risk[50] Corporate Governance and Compliance - The company has established an audit committee consisting of four independent non-executive directors to oversee financial reporting and internal controls[107] - The company has maintained compliance with corporate governance codes and standards throughout the reporting period[106] - There were no significant contingent liabilities reported as of December 31, 2022[91] - No major litigation occurred during the reporting period[92] Employee and Operational Information - The company employed a total of 538 employees as of December 31, 2022, with compensation based on industry practices and individual performance[90] - The company has not adopted any new accounting standards that would have a significant impact on its financial performance and position[23]

Financial Performance - The company reported revenue of HKD 988,291,000 for the three months ended September 30, 2022, compared to HKD 23,252,000 in the same period of 2021, representing a significant increase[4]. - The cost of services provided was HKD 984,565,000, resulting in a gross profit of HKD 3,726,000, up from HKD 2,359,000 in the previous year[4]. - The company incurred a loss before tax of HKD 12,410,000, compared to a loss of HKD 5,909,000 in the same period last year[4]. - The net loss for the period was HKD 13,907,000, which includes a loss attributable to owners of the company of HKD 13,238,000[6]. - Basic and diluted loss per share was HKD 0.18, compared to HKD 0.08 in the same period of the previous year[6]. - Total comprehensive loss for the period was HKD 32,775,000, compared to a total comprehensive loss of HKD 5,337,000 in the same period last year[6]. - The company recorded a loss attributable to shareholders of approximately HKD 13.24 million, compared to HKD 6.20 million in the previous year, with the increase mainly due to fair value changes in financial assets[25]. - The company recorded a loss of approximately HKD 30,000 in its lending business, down from a profit of HKD 1.33 million in the previous year, attributed to a more cautious approach in lending[31]. - The company experienced a loss of HKD 4.97 million from investments in listed securities, compared to a profit of HKD 2.2 million in the previous year[24]. Revenue Breakdown - Revenue from fresh produce and agricultural products trading was HKD 977,522,000, while revenue from excavation and construction services was HKD 9,006,000[13]. - Revenue from coal mining and construction services was approximately HKD 9 million, a decrease from HKD 20.17 million in the previous year, representing 0.91% of total revenue[27]. - The fresh agricultural products trading business generated revenue of approximately HKD 977,520,000, accounting for 98.91% of the total revenue of the group, with a classified profit of HKD 4,690,000[33]. Costs and Expenses - Interest income from lending business was HKD 1,763,000, down from HKD 3,080,000 in the previous year[13]. - Financing costs for the period were HKD 470,000, slightly down from HKD 480,000 in the previous year[25]. - Tax expenses for the period amounted to HKD 1.5 million, up from HKD 370,000 in the previous year, primarily due to tax expenses from the new fresh product trading business[25]. - Gross profit increased from approximately HKD 2.36 million to approximately HKD 3.73 million, but the overall gross margin decreased from 10.15% to 0.38% due to reduced revenue from excavation and construction services, decreased interest income from lending, and low margins in fresh agricultural product trading[24]. Strategic Focus and Future Outlook - The company continues to focus on expanding its service offerings in fresh produce trading and construction services[10]. - The board anticipates continued challenges in the coal mining and construction services due to COVID-19, rising production costs, and intense market competition, which may lead to lower-than-expected revenues if new project orders are not secured[37]. - The board is optimistic about the demand for imported fruits and quality agricultural products in China due to rising purchasing power and living standards[40]. - The group plans to allocate more resources to the fresh agricultural products trading segment, which is expected to be a major growth driver[40]. - The group has established a strategic partnership with China National Grain and Oils Information Center (Guangdong) Co., Ltd to enhance product quality and customer relationships in the fresh agricultural products trade[40]. Corporate Governance - The company is committed to maintaining high levels of corporate governance to enhance shareholder value, with clear separation of roles between the chairman and CEO[55]. - The audit committee, consisting of four independent non-executive directors, reviewed the unaudited condensed consolidated financial statements, ensuring compliance with applicable accounting standards and GEM listing rules[57]. - The company has adopted the GEM listing rules regarding securities trading conduct, ensuring all directors complied with these standards during the reporting period[54]. - No directors or major shareholders had any interests in businesses that compete or may compete with the company during the reporting period[51]. - The company has not established any arrangements for directors to benefit from purchasing shares or debt securities of the company or any other corporation[49]. - The board of directors includes four executive directors and four independent non-executive directors, with ongoing reviews of the board structure[58]. Shareholder Information - As of September 30, 2022, major shareholders include Hsu Kung Ming with a 27.42% stake (2,054,380,000 shares) and Red Tree Bay Investment Group International Limited with a 27.58% stake (2,066,380,000 shares)[50]. - Hsu Kung Ming is recognized as the beneficial owner of 12,000,000 shares, representing 0.16% of the company's ordinary shares[50]. Dividend and Proceeds - The company did not recommend any dividend distribution for the three months ended September 30, 2022[20]. - As of September 30, 2022, the remaining unutilized proceeds from the 2016 placement amounted to approximately HKD 80,000,000, which has not been used for any investments yet[45]. - The board may consider reallocating part of the unutilized proceeds to the fresh agricultural products trading business due to its positive outlook[45]. Other Income and Losses - Other income for the period was approximately HKD 780,000, compared to HKD 750,000 in the previous year, primarily from government subsidies and interest income[24]. - The group recorded a fair value loss of approximately HKD 4,970,000 on financial assets measured at fair value through profit or loss during the period, compared to a gain of HKD 2,200,000 in the previous year[35]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the reporting period[53]. - The company has not disclosed any new product developments, market expansions, or mergers during the reporting period[56].

Loan Portfolio - As of June 30, 2022, the group had 25 borrowers, including 21 individuals and 4 corporate borrowers, with a total of 25 outstanding loans[7]. - The outstanding balance of loans ranged from approximately HKD 300,000 to HKD 6,800,000, with annual interest rates between 5.0% and 18.0%[7]. - The top five borrowers accounted for 30.47% of the total principal amount of the group's loan portfolio and 30.90% of the accounts receivable, including interest[10]. - A total of 23 outstanding loans were issued by Dahui City to 20 individual borrowers and 3 corporate borrowers, with 13 of these loans secured by personal guarantees from independent third parties[9]. Loan Approval Process - The group does not have a specific target loan size but evaluates applications based on their merits, determining the need for collateral on a case-by-case basis[5]. - The loan approval process includes collecting documentation, assessing repayment ability and creditworthiness, and board discussions for final approval[14]. - The group’s lending services are primarily short-term loans with a maturity of less than one year[5]. Risk Management - The management team possesses significant experience in financial management and corporate financing, providing a competitive advantage in the lending business[10]. - The group employs external legal advisors to ensure compliance with regulations and to provide training on risk management and appropriate conduct in lending operations[11]. - 达慧城认为其违约风险极低，基于多项信贷风险评估程序[18]. - 长城对贷款申请人进行信贷风险评估，包括客户识别和还款能力评估[17]. - 长城财务部负责监测贷款还款情况，并定期与借款人沟通以了解其还款能力[22]. - 达慧城的风险管理经理通过每月信用检查持续监测借款人的信用状况[23]. - 若借款人未按协议还款，长城董事会将审阅还款时间表并决定必要行动[24]. - 达慧城在借款人未还款的情况下，会向董事会报告并讨论收回贷款的必要措施[26]. Compliance and Regulations - 长城根据借款人的信用和市场利率等因素，确保贷款协议条款公平合理[19]. - 达慧城的贷款协议条款符合中国人民银行的贷款政策，且不超过一年期贷款优惠利率的400%[20]. - 本公告的资料遵循GEM上市规则，确保信息的准确性和完整性[27].