Financial Performance - The Group recorded a revenue of approximately HK$705.04 million, representing an increase of 438.46% compared to the previous year[16] - The audited consolidated loss for the year attributable to owners of the Company was HK$8.96 million, a decrease of approximately 69.99% compared to last year[16] - The Group maintained a cash balance of HK$156.49 million, indicating a healthy financial position despite the loss[17] - The Group recorded a revenue of approximately HK$705.04 million for the year ended June 30, 2022, representing an increase of 438.46% compared to HK$130.94 million in 2021[24] - The gross profit decreased from HK$35.47 million and a gross profit margin of 27.09% in 2021 to HK$13.19 million and 1.87% in 2022, primarily due to a decline in excavation and construction revenue and low margins from fresh produce trading[24] - The Group's loss attributable to owners decreased to approximately HK$8.96 million in 2022 from HK$29.87 million in 2021, mainly due to the reversal of impairment loss[31] - The Group's other income was approximately HK$8.33 million, a slight decrease from HK$8.85 million in 2021, primarily due to the absence of machinery leasing income[25] - Administrative and other operating expenses decreased to HK$38.96 million from HK$42.70 million in 2021, attributed to effective cost control measures[26] - The Group's cash balance stood at HK$156.49 million, indicating a strong financial position despite the recorded loss[24] Business Operations - The Group engaged in coal mining, construction services, money lending, heating supply services, and trading of fresh produce products during the year[17] - A strategic partnership was formed with China Reserve (Guangdong) Grain Trading Limited to extend the trading business to agricultural products[17] - The trading of fresh produce and agricultural products is expected to be the main driver of the Group's growth moving forward[17] - Revenue from coal mining and construction services was approximately HK$77.83 million, accounting for 11.04% of total revenue, a decrease from HK$111.55 million in 2021[32] - The Group anticipates that trading in fresh produce and agricultural products will become a major growth driver following a strategic partnership established on June 24, 2022[24] - The Group's fresh produce trading business generated revenue of approximately HK$610.59 million, accounting for 86.6% of total revenue, but incurred a loss of HK$1.52 million due to high food loss rates[45] - The Group's impairment loss is mainly related to expected credit loss (ECL) allowances for loan receivables, adjusted based on macroeconomic factors[39] - The Group has adopted a more cautious approach in granting loans due to the adverse financial conditions caused by the COVID-19 pandemic, affecting repayment ability and increasing credit risks[37] Market Conditions and Challenges - The Group expects stable revenue from coal mining and construction services, but may face lower-than-expected revenue if new projects are not secured[66] - Demand for heating systems is expected to grow due to rapid urbanization and environmental regulations, despite rising international commodity and energy prices impacting profit margins[67] - The Group's mining services revenue is concentrated from fewer than 5 customers, with significant reliance on one major client, posing risks to profitability and financial stability if the relationship is disrupted[114] - 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[118] - The Group's operations are subject to various operating risks, including unexpected maintenance issues and natural disasters, which could disrupt operations and damage reputation[117] - Changes in PRC laws and regulations regarding the mining industry could increase operational costs and adversely affect the Group's business[122] Corporate Governance - The Board is committed to maintaining high corporate governance standards to enhance transparency and accountability to shareholders and creditors[146] - The Company has complied with all applicable code provisions and recommended best practices of the Corporate Governance Practices Code throughout the year ended June 30, 2022[147] - The Board consists of eight Directors, with four being executive Directors and four independent non-executive Directors, ensuring diverse professional backgrounds[150] - The Board held a total of 8 meetings during the Year, with all Directors attending all meetings[156] - The Company has adopted the required standards of dealings for securities transactions by Directors, and all Directors have complied throughout the Year[153] - The roles of the chairman and chief executive are separated, with Mr. Cai Da and Mr. Li Xianghong serving as co-chairmen, while executive Directors have taken on the CEO responsibilities since December 31, 2020[161] - The Company has established three board committees: Remuneration Committee, Nomination Committee, and Audit Committee, each with defined written terms of reference[172][178][185] Future Outlook - The Group aims to consolidate its business portfolio and diversify its income sources to create greater value for shareholders[18] - The Group plans to allocate more resources to the trading of fresh produce and agricultural products, which is expected to be a key growth driver[72] - The Group is optimistic about the prospects of trading fresh produce and may propose reallocating part of the unutilized proceeds to this business segment[81] - Wantian anticipates that its Mainland China business will gradually become the main driver of profit growth, especially in the post-pandemic recovery phase[58] - Wantian expects steady development in its business in Hong Kong following the easing of social distancing measures and the introduction of the Consumption Voucher Scheme[58]

[Important Notice and Disclaimer](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E5%8F%8A%E5%85%8D%E8%B2%AC%E8%81%B2%E6%98%8E) [GEM Market Characteristics and Investment Risks](index=2&type=section&id=GEM%E5%B8%82%E5%A0%B4%E7%89%B9%E8%89%B2%E5%8F%8A%E6%8A%95%E8%B3%87%E9%A2%A8%E9%9A%AA) This report highlights the GEM market's positioning for companies with higher investment risks, urging investors to prudently assess potential market volatility and liquidity limitations - GEM market is positioned for high-investment-risk companies, securities may face significant market volatility, and high liquidity cannot be guaranteed[1](index=1&type=chunk) [Directors' Responsibility Statement](index=2&type=section&id=%E8%91%A3%E4%BA%8B%E8%B2%AC%E4%BB%BB%E8%81%B2%E6%98%8E) The company's directors jointly and severally assume full responsibility for the report's information, confirming its accuracy, completeness, and absence of misleading content, based on fair and reasonable assumptions - Directors confirm that the information in this report is accurate and complete in all material respects, free from misleading or fraudulent content, and assume full responsibility for its contents[2](index=2&type=chunk) [Unaudited Condensed Consolidated Financial Results](index=3&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the nine months ended March 31, 2022, the Group's revenue increased by **18.69%** to **HK$131.1 million**, but gross profit significantly decreased by **68.86%** to **HK$8 million**, expanding the loss for the period to **HK$18.176 million** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the nine months ended March 31) | Indicator | 2022 (HK$ thousand) | 2021 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 131,111 | 110,469 | 18.69% | | Cost of services provided | (123,109) | (84,771) | 45.22% | | Gross profit | 8,002 | 25,698 | -68.86% | | Other income | 7,552 | 6,244 | 20.95% | | Fair value changes of financial assets at fair value through profit or loss | 475 | 2,170 | -78.11% | | Administrative and other operating expenses | (31,372) | (33,018) | -4.98% | | Finance costs | (1,180) | (2,175) | -45.75% | | (Loss) Profit before tax | (16,523) | (1,081) | -1428.58% | | Income tax (expense) credit | (1,653) | (2,610) | -36.74% | | (Loss) Profit for the period | (18,176) | (3,691) | -392.44% | | (Loss) Profit for the period attributable to owners of the Company | (16,091) | (3,423) | -370.09% | | Basic and diluted (loss) per share (HK cents) | (0.21) | (0.05) | -320.00% | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the nine months ended March 31, 2022, total equity attributable to owners of the company slightly decreased from **HK$365.8 million** to **HK$364.7 million**, primarily due to period loss, partially offset by increased foreign currency translation reserve Condensed Consolidated Statement of Changes in Equity (For the nine months ended March 31) | Indicator | March 31, 2022 (HK$ thousand) | July 1, 2021 (HK$ thousand) | | :--- | :--- | :--- | | Total equity attributable to owners of the Company | 364,711 | 365,765 | | Non-controlling interests | 3,995 | 66 | | Total equity | 368,706 | 365,831 | | Loss for the period (attributable to owners of the Company) | (16,091) | (3,423) | | Exchange differences on translation of overseas operations | 15,037 | 26,120 | | Capital injection from non-controlling interests | 5,983 | - | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. General Information](index=6&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Company is an investment holding company incorporated in the Cayman Islands, with subsidiaries primarily engaged in coal mining, construction, heating, money lending, and fresh produce trading - The Company is an investment holding company, with subsidiaries primarily engaged in coal mining and construction, heating, money lending, and fresh produce trading[7](index=7&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and GEM Listing Rules, using the historical cost convention, with some financial instruments measured at fair value - Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and GEM Listing Rules, using the historical cost convention, with some financial instruments measured at fair value[8](index=8&type=chunk) [3. Revenue](index=7&type=section&id=3.%20%E6%94%B6%E7%9B%8A) For the nine months ended March 31, 2022, the Group's total revenue was **HK$131.1 million**, with fresh produce trading contributing **HK$58.931 million** as the largest source, while coal production, excavation, and construction engineering revenue significantly decreased Revenue Analysis (For the nine months ended March 31) | Revenue Source | 2022 (HK$ thousand) | 2021 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Provision of coal production, excavation and construction engineering | 56,283 | 94,494 | -40.43% | | Provision of heating services | 6,440 | 6,518 | -1.20% | | Fresh produce trading | 58,931 | - | New Business | | Interest income from money lending services | 9,457 | 9,457 | 0.00% | | **Total Revenue** | **131,111** | **110,469** | **18.69%** | [4. Other Income](index=7&type=section&id=4.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the nine months ended March 31, 2022, other income increased by **20.95%** to **HK$7.552 million**, primarily due to a significant increase in handling fee income and government grants Other Income Analysis (For the nine months ended March 31) | Other Income Source | 2022 (HK$ thousand) | 2021 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 222 | 725 | -69.38% | | Handling fee income | 3,425 | 1,895 | 80.74% | | Government grants | 3,826 | 1,302 | 193.86% | | Dividend income from equity securities | 79 | - | New | | **Total Other Income** | **7,552** | **6,244** | **20.95%** | [5. (Loss) Profit for the Period](index=8&type=section&id=5.%20%E6%9C%9F%E5%85%A7%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E6%BA%A2%E5%88%A9) The Group's loss for the period was primarily influenced by factors such as depreciation of property, plant and equipment, and right-of-use assets Major Expense Items (For the nine months ended March 31) | Expense Item | 2022 (HK$ thousand) | 2021 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,288 | 1,924 | 18.92% | | Depreciation of right-of-use assets | 388 | 930 | -58.28% | [6. Finance Costs](index=8&type=section&id=6.%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the nine months ended March 31, 2022, finance costs significantly decreased by **45.75%** to **HK$1.18 million**, mainly due to reduced interest on amounts payable to a former noteholder and the absence of imputed interest on acceptance bills Finance Costs Analysis (For the nine months ended March 31) | Finance Cost Item | 2022 (HK$ thousand) | 2021 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Interest on amounts payable to a former noteholder | 1,015 | 1,594 | -36.32% | | Interest expense on discounted bills | 14 | 175 | -92.00% | | Imputed interest on lease liabilities | 151 | 30 | 403.33% | | Imputed interest on acceptance bills | - | 376 | -100.00% | | **Total Finance Costs** | **1,180** | **2,175** | **-45.75%** | [7. Income Tax Expense (Credit)](index=9&type=section&id=7.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89) For the nine months ended March 31, 2022, income tax expense decreased by **36.74%** to **HK$1.653 million**, primarily due to reduced tax expenses of PRC subsidiaries, consistent with declining operating profit Income Tax Expense (Credit) Analysis (For the nine months ended March 31) | Tax Source | 2022 (HK$ thousand) | 2021 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong profits tax | 67 | 135 | -50.37% | | PRC enterprise income tax | 1,586 | 2,475 | -35.92% | | **Total Income Tax Expense (Credit)** | **1,653** | **2,610** | **-36.74%** | - Hong Kong profits tax adopts a two-tiered system, with the first **HK$2 million** of assessable profits taxed at **8.25%**, and the remainder at **16.5%**[14](index=14&type=chunk) - PRC subsidiaries are subject to enterprise income tax at a rate of **25%**[15](index=15&type=chunk) [8. Dividends](index=9&type=section&id=8.%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of a dividend for the nine months ended March 31, 2022, consistent with the prior year - The Board does not recommend the payment of a dividend for the nine months ended March 31, 2022[16](index=16&type=chunk) [9. (Loss) Earnings Per Share](index=10&type=section&id=9.%20%E6%AF%8F%E8%82%A1%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E7%9B%88%E5%88%A9) For the nine months ended March 31, 2022, basic and diluted loss per share was **HK$0.21 cents**, a significant increase from **HK$0.05 cents** last year, primarily due to increased loss for the period (Loss) Earnings Per Share (For the nine months ended March 31) | Indicator | 2022 (HK cents) | 2021 (HK cents) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Basic and diluted (loss) earnings per share | (0.21) | (0.05) | -320.00% | | (Loss) earnings used in calculation (HK$ thousand) | (16,091) | (3,423) | -370.09% | - Basic and diluted (loss) earnings per share are the same as there are no potential dilutive ordinary shares outstanding during the period[20](index=20&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business and Financial Review](index=11&type=section&id=%E6%A5%AD%E5%8B%99%E5%8F%8A%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) For the nine months ended March 31, 2022, the Group's revenue increased by **18.69%** to **HK$131.1 million**, driven by fresh produce trading, but gross profit and margin significantly decreased, expanding the loss attributable to owners to **HK$16.09 million** Key Financial Indicators (For the nine months ended March 31) | Indicator | 2022 (HK$) | 2021 (HK$) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 131,110,000 | 110,470,000 | 18.69% | | Gross profit | 8,000,000 | 25,700,000 | -68.87% | | Gross margin | 6.10% | 23.26% | -17.16 percentage points | | Loss attributable to owners of the Company | 16,090,000 | 3,420,000 | -370.47% | - Revenue increase was primarily due to the commencement of the new fresh produce trading business[22](index=22&type=chunk) - Decrease in gross profit and gross margin was mainly due to reduced revenue from excavation and construction engineering, gross loss from fresh produce trading, and increased gas costs[22](index=22&type=chunk) [Segment Performance Overview](index=11&type=section&id=%E5%88%86%E9%83%A8%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%BD) The Group's business segments showed mixed performance, with coal mining and construction services revenue significantly decreasing, money lending revenue flat, heating services revenue slightly down but losses mitigated by government grants, fresh produce trading contributing significant revenue but incurring a gross loss, and investment in listed securities seeing reduced gains [Provision of Coal Mining and Construction Services](index=11&type=section&id=%E6%8F%90%E4%BE%9B%E7%85%A4%E7%A4%A6%E9%96%8B%E6%8E%A1%E5%8F%8A%E5%BB%BA%E7%AF%89%E6%9C%8D%E5%8B%99) For the nine months ended March 31, 2022, this segment's revenue significantly decreased by **40.43%** to **HK$56.28 million**, accounting for **42.93%** of total revenue, resulting in a **HK$9.17 million** loss due to project completion Coal Mining and Construction Services Segment Performance (For the nine months ended March 31) | Indicator | 2022 (HK$) | 2021 (HK$) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 56,280,000 | 94,490,000 | -40.43% | | Percentage of total revenue | 42.93% | - | - | | Segment loss | 9,170,000 | - | - | - Revenue decrease was mainly due to a coal mining and construction service project completion, with no revenue recorded during the period[24](index=24&type=chunk) [Money Lending Business](index=12&type=section&id=%E6%94%BE%E5%82%B5%E6%A5%AD%E5%8B%99) For the nine months ended March 31, 2022, money lending business revenue remained at **HK$9.46 million**, accounting for **7.21%** of total revenue, and recorded a profit of **HK$3.61 million** Money Lending Business Segment Performance (For the nine months ended March 31) | Indicator | 2022 (HK$) | 2021 (HK$) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue (Interest income) | 9,460,000 | 9,460,000 | 0.00% | | Percentage of total revenue | 7.21% | - | - | | Segment profit | 3,610,000 | - | - | - All loans provided by the Group are unsecured, except for one loan of **HK$3 million** secured by a second mortgage on property[26](index=26&type=chunk) [Provision of Heating Services](index=12&type=section&id=%E6%8F%90%E4%BE%9B%E4%BE%9B%E6%9A%96) For the nine months ended March 31, 2022, heating services revenue slightly decreased to **HK$6.44 million**, accounting for **4.91%** of total revenue, resulting in a **HK$2.20 million** loss despite government grants, due to high gas prices Heating Services Segment Performance (For the nine months ended March 31) | Indicator | 2022 (HK$) | 2021 (HK$) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,440,000 | 6,520,000 | -1.23% | | Percentage of total revenue | 4.91% | - | - | | Gross loss | 2,920,000 | 120,000 | 2333.33% | | Government grants | 3,830,000 | - | - | | Segment loss | 2,200,000 | - | - | - Increase in gross loss was mainly due to high gas prices[27](index=27&type=chunk) [Fresh Produce Trading](index=12&type=section&id=%E7%94%9F%E9%AE%AE%E7%94%A2%E5%93%81%E8%B2%BF%E6%98%93) The Group's new fresh produce trading business generated **HK$58.93 million** in revenue but recorded a gross loss of **HK$1.92 million** and a loss of **HK$3.55 million** due to COVID-19's impact on the supply chain and fruit spoilage Fresh Produce Trading Segment Performance (For the nine months ended March 31) | Indicator | 2022 (HK$) | | :--- | :--- | | Revenue | 58,930,000 | | Gross loss | 1,920,000 | | Segment loss | 3,550,000 | - Gross loss was due to the impact of the novel coronavirus pandemic on the fruit supply chain, leading to fruit spoilage[29](index=29&type=chunk) [Investment in Listed Securities](index=13&type=section&id=%E6%96%BC%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8%E4%B9%8B%E6%8A%95%E8%B3%87) As of March 31, 2022, the Group's investment in listed securities was approximately **HK$30.31 million**, with a significant decrease in fair value changes of financial assets at fair value through profit or loss to **HK$0.48 million** Listed Securities Investment (For the nine months ended March 31) | Indicator | 2022 (HK$) | 2021 (HK$) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 30,310,000 | 27,330,000 (June 30, 2021) | 10.90% | | Gain from fair value changes | 480,000 | 2,170,000 | -77.88% | [Future Prospects](index=13&type=section&id=%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) The company anticipates coal mining and construction services will remain a primary revenue source, while actively seeking new clients and exploring opportunities in environmental heating, strictly controlling credit risks in money lending, and investing more in the promising fresh produce trading business for diversification and profit growth - Coal mining and construction services remain a primary revenue source, but the company will actively seek new clients to maintain project continuity[31](index=31&type=chunk) - Environmental heating business will align with China's urbanization process and environmental regulatory trends, seeking further development in Tianjin and Beijing[31](index=31&type=chunk) - Money lending business will continue to strictly control credit risks and monitor outstanding loans[31](index=31&type=chunk) - Fresh produce trading business has optimistic prospects, with growing Chinese purchasing power expected to drive demand for imported fruits and high-quality agricultural products; the company will allocate more resources to achieve business diversification and profit improvement[32](index=32&type=chunk) [Use of Proceeds from 2016 Placing](index=14&type=section&id=%E4%BA%8C%E9%9B%B6%E4%B8%80%E5%85%AD%E5%B9%B4%E9%85%8D%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The 2016 placing raised **HK$201.2 million** net, with **HK$121 million** utilized as of March 31, 2022, and the remaining **HK$80 million** held in banks, under consideration for natural gas heating service investments Use of Proceeds from 2016 Placing (As of March 31, 2022) | Use | Actual Net Proceeds (HK$ million) | Cumulative Usage (HK$ million) | Usage During Period (HK$ million) | Unutilized (HK$ million) | | :--- | :--- | :--- | :--- | :--- | | Provision of clean energy heating services | 160 | 80 | 0 | 80 | | General working capital | 41 | 41 | 0 | 0 | | **Total** | **201** | **121** | **0** | **80** | - Unutilized proceeds of approximately **HK$80 million** are held in banks, and the company is considering using them for potential investments in natural gas heating services, consistent with the intended use[35](index=35&type=chunk) [Financial Position, Liquidity and Others](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E3%80%81%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E5%85%B6%E4%BB%96) The Group maintains a robust financial position with ample cash, healthy liquidity and gearing ratios, no bank borrowings or significant contingent liabilities, and completed a material acquisition and disposal during the period [Foreign Exchange Risk](index=15&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group primarily transacts in HKD, RMB, or USD, mitigating currency risk by allowing operating entities to function in their respective local currencies - The Group's primary transaction currencies are HKD, RMB, or USD, and it mitigates currency risk by allowing operating entities to operate in their respective local currencies[36](index=36&type=chunk) [Material Acquisitions and Disposals](index=15&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the period, the Group acquired a **51%** equity interest in Zhongtai Hongzhi Technology (Shenzhen) Co., Ltd. and disposed of a **30%** equity interest in Asset Management International Limited, expecting a book gain of approximately **HK$1 million** - On November 23, 2021, Dahui City, an indirect wholly-owned subsidiary of the Company, acquired a **51% equity interest** in Zhongtai Hongzhi Technology (Shenzhen) Co., Ltd[37](index=37&type=chunk) - On April 12, 2022, the Group disposed of a **30% equity interest** in Asset Management International Limited and its subsidiaries for a cash consideration of **HK$1 million**, expecting to record a book gain of approximately **HK$1 million**[39](index=39&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of March 31, 2022, the Group demonstrated strong liquidity with cash and cash equivalents of approximately **HK$155.14 million**, net current assets of **HK$351.33 million**, a current ratio of **4.82 times**, and no bank borrowings Liquidity and Financial Resources (As of March 31) | Indicator | March 31, 2022 (HK$) | June 30, 2021 (HK$) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 155,140,000 | 167,150,000 | -7.21% | | Net current assets | 351,330,000 | 348,890,000 | 0.70% | | Current ratio | 4.82 times | 3.67 times | 31.34% | | Gearing ratio | 0.20 | 0.27 | -25.93% | | Bank borrowings | None | None | - | [Pledges of Assets](index=16&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of March 31, 2022, the Group had no assets pledged as collateral for any bank credit - As of March 31, 2022, the Group had no assets pledged as collateral for any bank credit[41](index=41&type=chunk) [Employees Information](index=16&type=section&id=%E5%83%B1%E5%93%A1%E8%B3%87%E6%96%99) As of March 31, 2022, the Group employed **349 staff**, with remuneration based on industry practice, educational background, experience, and performance, supplemented by various benefits - As of March 31, 2022, the Group employed a total of **349 staff**[42](index=42&type=chunk) - Employee remuneration is determined based on industry practice, educational background, experience, and performance, with share options, Mandatory Provident Fund, medical allowances, and other benefits provided[42](index=42&type=chunk) [Contingent Liabilities](index=16&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of March 31, 2022, the Group had no significant contingent liabilities - As of March 31, 2022, the Group had no significant contingent liabilities[43](index=43&type=chunk) [Litigation](index=16&type=section&id=%E8%A8%B4%E8%A8%9F) There was no significant litigation during the reporting period - There was no significant litigation during the reporting period[44](index=44&type=chunk) [Other Information](index=17&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Directors' and Chief Executive's Interests](index=17&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%AC%8A%E7%9B%8A) As of March 31, 2022, no directors or chief executives held disclosable interests or short positions in the Company's shares, underlying shares, or debentures, nor were there any arrangements for them to benefit from purchasing such securities [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=17&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of March 31, 2022, no directors or chief executives held disclosable interests or short positions in the Company's shares, underlying shares, or debentures - As of March 31, 2022, no directors or chief executives had interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations that were required to be notified to the Company and the Stock Exchange[46](index=46&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=17&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%BC%E8%B2%B7%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E5%88%A9) During the period, neither the Company nor any of its subsidiaries entered into any arrangements enabling directors to benefit from purchasing shares or debentures of the Company or any other corporation - During the period, neither the Company nor any of its subsidiaries entered into any arrangements enabling directors to benefit from purchasing shares or debentures of the Company or any other corporation[47](index=47&type=chunk) [Substantial Shareholders' Interests](index=18&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) As of March 31, 2022, Mr. Xu Gongming and Redwood Bay Investment Group International Company Limited collectively held **21.05%** of shares, and Mr. Wei Kai and Starlink Technology Co., Limited collectively held **11.81%** of shares, making them the Company's substantial shareholders Substantial Shareholders' Long Positions in Ordinary Shares of the Company (As of March 31, 2022) | Shareholder Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Xu Gongming | Beneficial owner | 12,000,000 | 0.16% | | Xu Gongming | Held by controlled entity (Redwood Bay Investment Group International Company Limited) | 1,577,380,000 | 21.05% | | Redwood Bay Investment Group International Company Limited | Beneficial owner | 1,577,380,000 | 21.05% | | Wei Kai | Beneficial owner | 232,900,000 | 3.11% | | Wei Kai | Held by controlled entity (Starlink Technology Co., Limited) | 884,820,000 | 11.81% | | Starlink Technology Co., Limited | Beneficial owner | 884,820,000 | 11.81% | [Share Option Scheme](index=19&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a share option scheme in 2014 to reward contributors, allowing for the grant of options for up to **533,250,233 shares**, with no options granted since its adoption - The Company adopted a share option scheme in 2014, allowing for the grant of share options for up to **533,250,233 shares**[52](index=52&type=chunk) - No share options have been granted under the share option scheme since its adoption date[52](index=52&type=chunk) [Competing Interests](index=19&type=section&id=%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) During the period, no directors, substantial shareholders, or their associates had any interests in competing businesses or conflicts of interest with the Group - During the period, no directors, substantial shareholders, or their respective associates had any interests in businesses that competed or might compete with the Group's business[53](index=53&type=chunk) [Company's Listed Securities Transactions](index=19&type=section&id=%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[54](index=54&type=chunk) [Corporate Governance](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company is committed to high corporate governance standards, adhering to the directors' securities transaction code and Corporate Governance Code, with co-chairmen in place and an Audit Committee overseeing financial reporting and internal controls [Compliance with the Model Code for Securities Transactions by Directors](index=20&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E8%A1%8C%E7%82%BA%E5%AE%88%E5%89%87) The Company has adopted the GEM Listing Rules' required standard of dealings as the code of conduct for directors' securities transactions, confirming full compliance by all directors during the period - The Company has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for directors' securities transactions[56](index=56&type=chunk) - Directors have complied with the required standard of dealings and the Company's code of conduct for directors' securities transactions during the period[56](index=56&type=chunk) [Corporate Governance Code](index=20&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%89%87) The Company maintains high corporate governance standards, applying the Corporate Governance Code principles and complying with applicable provisions, despite the CEO position being vacant and temporarily filled by an executive director since January 1, 2021 - The Company has co-chairmen, Mr. Cai Da responsible for leading and overseeing Board management, and Mr. Li Xianghong responsible for the Group's business strategic development[57](index=57&type=chunk) - The CEO's duties have been performed by an executive director since January 1, 2021, and the Board has not yet appointed a new CEO[57](index=57&type=chunk) - Except for the vacant CEO position, the Company has complied with all applicable Corporate Governance Code provisions during the period[57](index=57&type=chunk) [Audit Committee](index=21&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising four independent non-executive directors, reviews financial statements and advises the Board on financial reporting, internal controls, and risk management systems - The Audit Committee is composed of **four independent non-executive directors**, responsible for reviewing financial statements, internal control procedures, and risk management systems[59](index=59&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the period and considers them to have been prepared in compliance with applicable accounting standards and the GEM Listing Rules[59](index=59&type=chunk)

Financial Performance - For the three months ended December 31, 2021, the company reported revenue of HKD 27,861,000, a decrease of 50.7% compared to HKD 56,494,000 for the same period in 2020[13]. - The gross profit for the six months ended December 31, 2021, was HKD 6,116,000, down 69.7% from HKD 20,172,000 in the previous year[13]. - The company incurred a loss of HKD 5,143,000 for the three months ended December 31, 2021, compared to a profit of HKD 1,905,000 in the same period of 2020[15]. - The basic and diluted loss per share for the six months ended December 31, 2021, was HKD 0.15, compared to a loss of HKD 0.12 for the same period in 2020[15]. - The total comprehensive income for the three months ended December 31, 2021, was HKD 331,000, a significant decrease from HKD 16,497,000 in the previous year[15]. - The company reported a loss before tax of HKD 10,358,000 for the six months ended December 31, 2021, compared to a loss of HKD 6,245,000 for the same period in 2020, indicating a worsening of 65.4%[34]. - The company reported a loss attributable to owners of approximately HKD 11,140,000, compared to a loss of HKD 8,660,000 in the previous year, indicating an increase in losses due to reduced gross profit[56]. Revenue Breakdown - The company's revenue for the six months ended December 31, 2021, was HKD 51,113,000, a decrease of 38.3% compared to HKD 82,781,000 for the same period in 2020[30]. - Revenue from mining and construction services was HKD 40,343,000 for the six months ended December 31, 2021, down 45.1% from HKD 73,979,000 in the previous year[30]. - Revenue from coal mining and construction services was approximately HKD 40,340,000, accounting for 78.93% of total revenue, with a loss of HKD 9,530,000 in this segment[58]. - Loan interest income was approximately HKD 6,340,000, representing 12.40% of total revenue, with a profit of HKD 2,620,000 from the lending business[59]. - Revenue from heating services was approximately HKD 2,500,000, with a loss of HKD 2,290,000 in this segment due to high gas prices[60]. - The company is engaged in fruit trading, importing fruits from Thailand to China, which contributed HKD 1,932,000 to its revenue for the six months ended December 31, 2021[35]. Expenses and Liabilities - Administrative and other operating expenses for the six months ended December 31, 2021, totaled HKD 22,788,000, an increase from HKD 21,782,000 in the previous year[13]. - The company reported a net cash outflow from financing activities of HKD 36,074,000 for the six months ended December 31, 2021, compared to an outflow of HKD 46,855,000 in the previous year[25]. - The group’s income tax expense for the six months ended December 31, 2021, was HKD 1,063,000, compared to HKD 2,689,000 for the same period in 2020, a decrease of 60%[41]. - The total interest expense for financing costs for the three months ended December 31, 2021, was HKD 368,000, down from HKD 550,000 in 2020, a reduction of 33%[41]. Assets and Equity - As of December 31, 2021, total non-current assets decreased to HKD 18,039,000 from HKD 19,127,000 as of June 30, 2021, representing a decline of approximately 5.7%[17]. - Current assets decreased to HKD 459,725,000 from HKD 479,792,000, a reduction of about 4.2%[17]. - Total equity attributable to owners of the company as of December 31, 2021, was HKD 361,055,000, a slight decrease from HKD 365,765,000 as of June 30, 2021[19]. - The company’s total liabilities decreased to HKD 110,858,000 from HKD 130,898,000, indicating a reduction of approximately 15.3%[17]. - The company’s total assets less current liabilities stood at HKD 366,906,000 as of December 31, 2021, slightly down from HKD 368,021,000[19]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended December 31, 2021, was HKD 5,746,000, a significant decrease from HKD 77,531,000 in the same period of 2020[25]. - Cash and cash equivalents at the end of the period increased to HKD 168,131,000 from HKD 167,149,000, reflecting a marginal increase[25]. - The current ratio as of December 31, 2021, is approximately 4.15, up from 3.67 as of June 30, 2021, indicating improved liquidity[86]. - The debt-to-asset ratio is approximately 0.23 as of December 31, 2021, down from 0.27 as of June 30, 2021, reflecting a stronger balance sheet[86]. - The company has no bank borrowings as of December 31, 2021, consistent with the previous reporting period[86]. Corporate Governance and Structure - The company has maintained high levels of corporate governance, adhering to all applicable code provisions and best practices[105]. - The board of directors consists of four executive directors and four independent non-executive directors[109]. - The company has not appointed a new CEO since the resignation of the previous CEO on January 1, 2021, and the board is reviewing the current structure[105]. - Major shareholders include Hsu Kung Ming with 1,224,800,000 shares (16.35%) and Wei Kai with 884,820,000 shares (11.81%)[95]. Future Plans and Strategies - The company aims to enhance its market presence and explore new strategies for growth in the upcoming periods[13]. - The company is committed to ongoing research and development of new products and technologies to improve service offerings[13]. - The company continues to focus on expanding its mining and construction services, as well as its lending services in Hong Kong and China[35]. - The company aims to enhance its operational and digital capabilities to capitalize on growth opportunities in the restaurant sector[67]. - The company is actively seeking potential investment opportunities in clean energy heating services, with plans to start operations in the next heating season (November 2022)[82].

Financial Performance - Revenue for the first quarter ended September 30, 2021, was HKD 23,252,000, a decrease of 11.6% compared to HKD 26,287,000 in the same period of 2020[5] - Gross profit for the first quarter was HKD 2,359,000, down 66.6% from HKD 7,062,000 year-on-year[5] - The company reported a loss before tax of HKD 5,909,000, an improvement from a loss of HKD 9,988,000 in the previous year[5] - The net loss for the period was HKD 6,278,000, compared to a net loss of HKD 10,839,000 in the same quarter of 2020, indicating a 42.5% reduction in losses[5] - Basic and diluted loss per share was HKD 0.08, improved from HKD 0.14 in the previous year[6] - Other income for the quarter was HKD 751,000, significantly lower than HKD 3,550,000 in the same period last year[5] - Total comprehensive loss for the period was HKD 5,337,000, compared to a comprehensive income of HKD 2,311,000 in the same quarter of 2020[6] - Administrative and other operating expenses were HKD 10,742,000, slightly higher than HKD 10,205,000 in the previous year[5] Revenue Sources - Revenue from mining and construction services was approximately HKD 20,170,000, accounting for 86.75% of total revenue, down from HKD 22,520,000 in the previous year[27] - Interest income from lending activities was approximately HKD 3,080,000, representing 18.30% of total revenue, a decrease from HKD 3,770,000 in the previous year[28] Strategic Focus and Future Plans - The company continues to focus on its core services, including coal mining and construction services, as well as heating and lending services[9] - The company anticipates that coal mining and construction services will remain a primary source of revenue despite increasing production costs and market competition[32] - There is an ongoing effort to identify new clients to expand the customer base, as current revenue from coal mining and construction services is project-based and non-recurring[32] - The demand for heating systems in China is expected to grow in the coming years due to urbanization and environmental regulations, prompting the company to seek further business development in Tianjin and Beijing[32] - The company plans to diversify its revenue sources by entering the fruit trading business through a joint venture with an experienced partner, recognizing significant potential in importing fruit to China[34] - The company is considering potential investments in natural gas heating services, aligning with its strategic objectives for clean energy[39] Financial Position and Capital Management - The net proceeds from a recent placement of 1,046,260,000 new shares amounted to approximately HKD 201.2 million, with 80% allocated for clean energy services and 20% for working capital[35] - As of September 30, 2021, the company has utilized HKD 121 million of the placement proceeds, leaving approximately HKD 80 million unutilized and currently held in the bank[37] 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[49] - The board of directors includes four executive directors and four independent non-executive directors, ensuring a balanced governance structure[54] - The audit committee consists of four independent non-executive directors, responsible for reviewing annual reports, interim reports, and quarterly reports[50] - The audit committee has reviewed the unaudited condensed consolidated financial statements, confirming compliance with applicable accounting standards and GEM listing rules[52] Shareholder Information - Major shareholders include Hsu Kung Ming with a beneficial ownership of 12 million shares (0.16%) and 1,037,980,000 shares (13.85%) held by a controlling entity[43] - The company has not granted any stock options under its stock option plan since its adoption in December 2014, which allows for the issuance of up to 533,250,233 shares[45] - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the period[47] - The company did not recommend any dividend distribution for the period[17]

Financial Performance - The Group recorded a revenue of approximately HK$130.94 million, representing a decrease of 50.65% compared to the previous year[19] - The audited consolidated loss for the year attributable to owners of the Company amounted to HK$29.87 million, a decrease of approximately 70.48% compared to last year[19] - The decrease in revenue was mainly due to the termination of coal mining services agreements to comply with regulatory measures[19] - The Group's gross profit increased to approximately HK$35.47 million, with a gross profit margin rising from 11.66% in 2020 to 27.09% in 2021[27] - The loss attributable to owners of the Company for the year was approximately HK$29.87 million, a decrease from HK$101.20 million in 2020[34] Revenue Sources - Revenue from coal mining and construction services was approximately HK$111.55 million, accounting for 85.19% of total revenue, with a loss of HK$12.52 million in this segment[35] - The money lending business generated revenue of approximately HK$12.82 million, representing 9.79% of total revenue, with interest rates ranging from 5% to 18% per annum[39] - Revenue from heating supply services was approximately HK$6.58 million, accounting for 5.02% of total revenue, with a loss of approximately HK$1.15 million in this segment[40] - The Group recorded other income of approximately HK$8.85 million, primarily from handling income for coal packing services, government grants, and leasing income[28] Financial Position - The Group maintained a healthy financial position with a cash balance of HK$167.15 million[20] - The Group's cash and cash equivalents as of June 30, 2021, were approximately HK$167.15 million, an increase from HK$122.08 million as of June 30, 2020[64] - The net current assets amounted to approximately HK$348.89 million as of June 30, 2021, compared to HK$343.26 million as of June 30, 2020[64] - The current ratio improved to approximately 3.67 as of June 30, 2021, up from 2.95 times as of June 30, 2020[64] - The gearing ratio decreased to approximately 0.27 as of June 30, 2021, from 0.33 as of June 30, 2020[64] Business Strategy and Future Plans - The Group plans to diversify its income sources and consider venturing into new business areas such as fruit trading[21] - The Group aims to consolidate its business portfolio and create greater value for shareholders[21] - The Group intends to use 80% (approximately HK$160 million) of the proceeds from the 2016 Placing for the development of clean energy services, with the remaining 20% (approximately HK$41 million) for working capital[65] - The Group is actively seeking new investment opportunities in clean energy heat supply services, including potential projects in Tianjin[75] - The Group plans to expand its environmentally friendly heating business in Tianjin and Beijing due to increasing demand for heating systems[60] Risk Management - The Group's operations are subject to various operating risks, including unexpected maintenance issues and natural disasters, which could disrupt operations and damage reputation[110] - The Group's money lending business is exposed to credit risks, particularly as most loans are unsecured, potentially leading to unrecoverable loans[116] - Changes in PRC laws and regulations regarding the mining industry could increase operating costs and adversely affect the Group's financial condition[115] - The Group has adopted a disaster recovery policy to minimize the impact of unexpected disruptions on its mining and construction services[110] - The Group conducts due diligence and implements credit control measures to maintain the quality of its loan portfolio[116] Corporate Governance - The company has a total of eight directors, with four being executive directors and four independent non-executive directors[140] - The board is committed to maintaining high standards of corporate governance to enhance shareholder value and ensure effective risk management[136] - The company has complied with all applicable code provisions of the Corporate Governance Practices throughout the year ended June 30, 2021[137] - The independent non-executive directors bring diverse professional experiences, contributing valuable insights for business development[140] - The Company has established three committees: Remuneration Committee, Nomination Committee, and Audit Committee, to oversee specific areas of corporate governance[160] Audit and Financial Reporting - The statutory audit fee for the Group amounted to HK$1,280,000 for the year[192] - The total fee paid for non-audit services, including tax review, was approximately HK$57,300[192] - The Audit Committee held 4 meetings during the Year, reviewing the Group's quarterly reports and making recommendations regarding financial reporting and internal control procedures[178] - The Audit Committee's meetings included attendance by external auditors to facilitate discussions on financial concerns[178] - The Directors have prepared the consolidated financial statements on a going concern basis, ensuring appropriate accounting policies are applied consistently[188]

Financial Performance - Revenue for the three months ended March 31, 2021, was HKD 27,688,000, a decrease of 5.98% compared to HKD 29,448,000 for the same period in 2020[5] - Gross profit for the nine months ended March 31, 2021, was HKD 25,698,000, down 30.73% from HKD 37,104,000 in the same period of 2020[5] - The company reported a profit before tax of HKD 5,164,000 for the three months ended March 31, 2021, compared to a loss of HKD 11,343,000 in the same period of 2020[5] - The net profit attributable to owners of the company for the three months ended March 31, 2021, was HKD 5,237,000, a significant improvement from a loss of HKD 11,305,000 in the same period of 2020[6] - Basic and diluted earnings per share for the three months ended March 31, 2021, was HKD 0.07, compared to a loss per share of HKD 0.15 for the same period in 2020[6] - The total comprehensive income for the nine months ended March 31, 2021, was HKD 22,689,000, compared to a loss of HKD 65,532,000 in the same period of 2020[6] - The company reported a loss attributable to owners of the company of HKD 3,423,000 for the nine months ended March 31, 2021, compared to a loss of HKD 47,361,000 in 2020[21] - The group reported a loss attributable to shareholders of approximately HKD 3,420,000, significantly reduced from HKD 47,360,000 in 2020, mainly due to the absence of impairment losses on customer contracts and property, plant, and equipment[26] Revenue Breakdown - Revenue for the nine months ended March 31, 2021, was approximately HKD 110,470,000, a decrease of 45.65% compared to HKD 203,260,000 for the same period in 2020[23] - Revenue from coal production, excavation, and construction services was HKD 94,494,000 for the nine months ended March 31, 2021, compared to HKD 181,363,000 in 2020[11] - Revenue from coal mining and construction services was approximately HKD 94,490,000, accounting for 85.54% of total revenue, down from HKD 181,360,000 in 2020[27] - Revenue from heating services in Tianjin was HKD 6,520,000, an increase from HKD 5,840,000 in 2020, accounting for 5.90% of total revenue[29] Cost and Expenses - Gross profit for the same period was approximately HKD 25,700,000, down 30.74% from HKD 37,100,000 in 2020, with an overall gross margin increase from 18.25% to 23.26%[23] - Interest income from lending services decreased to HKD 9,457,000 for the nine months ended March 31, 2021, down from HKD 16,053,000 in 2020[11] - Financing costs for the nine months ended March 31, 2021, totaled HKD 2,175,000, compared to HKD 5,486,000 in 2020[15] - The tax expense for the nine months ended March 31, 2021, included a current tax expense of HKD 2,610,000, compared to a tax credit of HKD 7,520,000 in 2020[17] Operational Highlights - The company continues to focus on its core businesses, including coal mining, construction services, heating services, and lending services[8] - The company experienced a significant reduction in revenue due to the termination of coal mining service agreements by clients[23] - The company streamlined its operations and reduced costs, contributing to the increase in gross margin despite the decline in revenue[23] - The group aims to expand its customer base for coal mining and construction services, which are non-recurring in nature, to maintain revenue continuity[33] - The group plans to develop environmentally friendly heating services in more profitable regions, such as Beijing, in response to increasing demand due to urbanization and environmental regulations[33] Financial Position - The total equity attributable to owners of the company as of March 31, 2021, was HKD 389,039,000, an increase from HKD 366,342,000 as of July 1, 2020[7] - As of March 31, 2021, the group held cash and cash equivalents of approximately HKD 130,030,000, an increase from HKD 122,080,000 as of June 30, 2020, with a current ratio of 3.76[40] - The group has no bank borrowings as of March 31, 2021, maintaining a debt-to-asset ratio of approximately 0.26, down from 0.33 as of June 30, 2020[40] Corporate Governance - The company has established an audit committee consisting of four independent non-executive directors to oversee financial reporting and internal controls[58] - The company is committed to maintaining high standards of corporate governance to enhance shareholder value[56] - There were no interests or potential conflicts of interest reported by directors or major shareholders in competing businesses during the reporting period[52] - The company has not established any arrangements for directors to benefit from purchasing shares or debt securities of the company or any other corporation during the period[48] Shareholder Information - Major shareholders include Chen Chao-hui with 437,480,000 shares (5.84%) and Xu Gongming with 1,037,980,000 shares (13.85%) held through Redwood Bay Investment Group International[50] - The company has not granted any share options under the new share option scheme during the reporting period, and there are no unexercised share options as of the report date[51] Legal and Compliance - No significant contingent liabilities were reported as of March 31, 2021[44] - There were no major litigations during the reporting period[45] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[53]

Financial Performance - For the three months ended December 31, 2020, the company reported revenue of HKD 56,494,000, a decrease of 37.6% compared to HKD 90,561,000 for the same period in 2019[10]. - The gross profit for the six months ended December 31, 2020, was HKD 20,172,000, down 34.5% from HKD 30,823,000 in the previous year[10]. - The company recorded a net profit of HKD 1,905,000 for the three months ended December 31, 2020, compared to a net loss of HKD 46,404,000 in the same period of 2019[10]. - Basic and diluted earnings per share for the three months ended December 31, 2020, were HKD 0.03, compared to a loss per share of HKD 0.62 in the previous year[11]. - The total comprehensive income for the six months ended December 31, 2020, was HKD 18,808,000, compared to a loss of HKD 44,383,000 in the same period of 2019[11]. - Revenue for the six months ended December 31, 2020, was HKD 82,781,000, a decrease of 52.4% from HKD 173,807,000 in the same period of 2019[24]. - The group reported a loss before tax of HKD 6,245,000 for the six months ended December 31, 2020, compared to a loss of HKD 43,726,000 for the same period in 2019, indicating an improvement in performance[27]. - The company incurred a loss of HKD 8,660,000 during the period, contributing to a cumulative loss of HKD 620,416,000 as of December 31, 2020[15]. Assets and Liabilities - As of December 31, 2020, the company's non-current assets increased to HKD 28,828,000 from HKD 26,399,000 as of June 30, 2020, representing a growth of approximately 9.2%[12]. - The company's current assets net value rose to HKD 359,970,000, up from HKD 343,257,000, indicating an increase of about 4.9%[13]. - Total assets less current liabilities reached HKD 388,798,000, compared to HKD 369,656,000, reflecting a growth of approximately 5.2%[13]. - The company’s total liabilities decreased from HKD 175,778,000 as of June 30, 2020, to HKD 143,559,000 as of December 31, 2020, indicating a reduction of about 18.3%[12]. - The company’s equity attributable to owners increased to HKD 385,159,000 from HKD 366,342,000, reflecting a growth of approximately 5.5%[13]. - Cash and cash equivalents increased to HKD 158,198,000 from HKD 122,081,000, marking a rise of approximately 29.6%[19]. - The current ratio as of December 31, 2020, was approximately 3.51 times, up from 2.95 times as of June 30, 2020[68]. - The debt-to-asset ratio as of December 31, 2020, was approximately 0.28, down from 0.33 as of June 30, 2020[68]. - The group has no bank borrowings as of December 31, 2020[68]. Operational Efficiency - Administrative and other operating expenses decreased to HKD 11,577,000 for the three months ended December 31, 2020, from HKD 15,504,000 in the same period of 2019, reflecting a reduction of 25.5%[10]. - The financing costs for the three months ended December 31, 2020, were HKD 550,000, a decrease of 71.6% from HKD 1,934,000 in the previous year[10]. - The group’s financing costs for the six months ended December 31, 2020, were HKD 1,533,000, a decrease from HKD 3,700,000 for the same period in 2019[31]. - The group has implemented efficiency measures to streamline operations and reduce costs amid increasing production costs and market competition[61]. Future Plans and Strategies - The company aims to enhance its market presence and explore new strategies for growth in the upcoming periods[10]. - The company plans to continue expanding its coal mining and construction services, as well as its heating services, to enhance revenue streams in the future[21]. - 日赢将继续发掘合适的商机及投资机会，以推动其业务增长[55]. Shareholder Information and Corporate Governance - The group holds 972,000 shares of China Fufeng, representing approximately 0.10% of the total issued shares as of December 31, 2020[5]. - The company has not established any arrangements allowing directors to benefit from purchasing shares or debentures of the company or any other corporation during the year[75]. - The company has not purchased, sold, or redeemed any of its listed securities during the period[83]. - The company has adopted the GEM Listing Rules as the code of conduct for directors' securities transactions, ensuring compliance throughout the period[85]. - The company has established an audit committee consisting of four independent non-executive directors to review financial reports and internal control procedures[89]. - The company is committed to maintaining high standards of corporate governance to enhance shareholder value[87]. - There are no changes in the information of directors since the last annual report date[86]. - The company has no other individuals or corporations holding 5% or more of the voting rights in any class of share capital as of December 31, 2020[80].

Financial Performance - For the first quarter ended September 30, 2020, the company reported revenue of HKD 26,287,000, a decrease of 68.4% compared to HKD 83,246,000 in the same period last year[7] - The cost of services provided was HKD 19,225,000, resulting in a gross profit of HKD 7,062,000, down 55.0% from HKD 15,722,000 year-on-year[7] - The company incurred a loss before tax of HKD 9,988,000, compared to a profit of HKD 12,255,000 in the previous year[7] - The net loss attributable to the owners of the company was HKD 10,767,000, compared to a profit of HKD 10,232,000 in the same quarter of the previous year[8] - Basic and diluted loss per share was HKD 0.14, compared to earnings per share of HKD 0.14 in the prior year[8] - Total comprehensive income for the period was HKD 2,311,000, compared to a loss of HKD 5,048,000 in the same quarter last year[8] - The company recorded revenue of approximately HKD 26,290,000 for the three months ended September 30, 2020, a decrease of 68.42% compared to HKD 83,250,000 in the same period of 2019[23] - The gross profit for the period was approximately HKD 7,060,000, down 55.09% from HKD 15,720,000 in the previous year, with a gross margin increase from 18.89% to 26.86%[23] - The company reported a loss attributable to owners of approximately HKD 10,770,000 for the period, compared to a profit of HKD 10,230,000 in the same period last year[24] Revenue Sources - Revenue from coal mining and construction services amounted to approximately HKD 22,520,000, representing 85.66% of total revenue, compared to HKD 77,480,000 in the prior year[26] - Interest income from lending activities was approximately HKD 3,770,000, a decrease from HKD 5,770,000 in the previous year, accounting for 14.34% of total revenue[27] Costs and Expenses - Financing costs for the period were HKD 980,000, down from HKD 1,770,000 in the previous year[24] - Tax expenses for the period were HKD 850,000, a decrease from HKD 2,080,000 in the prior year[24] Business Strategy and Operations - The company continues to focus on its core services, including coal mining and construction services, heating services, and lending services[11] - The company aims to expand its customer base actively and has implemented efficiency measures to streamline operations and reduce costs amid increasing production costs and market competition[31] - The company anticipates that the demand for heating systems will continue to grow in the coming years due to accelerated urbanization and environmental regulations in China[31] - The company is considering entering new business areas to diversify its revenue sources and create greater value for shareholders[31] Investments and Commitments - The company plans to allocate approximately HKD 160,000,000 (80% of the net proceeds) from a share placement to develop clean energy-related services, with the remaining HKD 40,000,000 (20%) for working capital[33] - The company has utilized approximately HKD 81,000,000 for clean energy-related services, including investments in joint ventures for heating services and capital expenditures for purchasing heating equipment[33] - The company’s capital commitment as of September 30, 2020, was HKD 20,498,000, compared to HKD 19,728,000 as of June 30, 2020[22] Governance and Compliance - The company has complied with all applicable corporate governance codes and standards during the period[44] - The audit committee has been established to review the company's annual reports, interim reports, and quarterly reports, ensuring compliance with applicable accounting standards and GEM listing rules[45] - The audit committee consists of four independent non-executive directors, including Ms. Wang Nana as the chairperson[45] - As of the report date, the board includes five executive directors and four independent non-executive directors[47] Foreign Exchange and Fair Value - The company reported a foreign exchange gain of HKD 13,150,000 from the translation of overseas operations, compared to a loss of HKD 15,220,000 in the previous year[8] - The company experienced a fair value loss of approximately HKD 9,410,000 on financial assets, compared to a gain of HKD 8,120,000 in the previous year[24] - The company recorded a fair value loss of approximately HKD 9,410,000 on financial assets measured at fair value through profit or loss during the period, compared to a gain of HKD 8,120,000 in the previous year[30] Dividend Policy - The company did not recommend any dividend distribution for the three months ended September 30, 2020[19] Seasonal Impact - The company has not recorded any significant revenue during the heating season from November to March, resulting in a minor loss for the period[28]

Financial Performance - The Group recorded a revenue of approximately HK$265.35 million, representing a decrease of 16.23% compared to the previous year[18]. - The audited consolidated loss for the year attributable to owners of the Company amounted to HK$101.20 million, an increase of approximately 2.37 times compared to last year[18]. - The decrease in revenue was primarily due to the termination of coal mining services agreements to comply with regulations issued by the State Administration of Coal Mine Safety[18]. - Gross profit decreased by 51.47% to approximately HK$30.94 million, with a gross profit margin dropping from 20.13% in 2019 to 11.66% in 2020[26]. - Other income decreased to approximately HK$10.55 million, primarily due to reduced government subsidies for heating supply services[27]. - Loss attributable to owners of the Company amounted to approximately HK$101.20 million, an increase from HK$29.99 million in 2019[35]. - The Group's revenue from loan interest income was approximately HK$20.46 million, representing a 21.3% increase from HK$16.87 million in 2019, accounting for 7.71% of total revenue[45][47]. - Revenue from heating supply services was approximately HK$5.84 million, a slight increase from HK$5.64 million in 2019, but the segment recorded a loss of approximately HK$1.66 million due to high gas prices, compared to a profit of HK$6.06 million in 2019[46][48]. Financial Position - The Group maintains a healthy financial position with a cash balance of HK$122.08 million[19]. - As of June 30, 2020, the financial assets at fair value through profit or loss (FVTPL) amounted to approximately HK$27.04 million, down from HK$28.66 million in 2019, with a fair value gain of approximately HK$4.12 million compared to a loss of HK$9.13 million in the previous year[50][51]. - As of June 30, 2020, the Group held cash and cash equivalents of approximately HK$122.08 million, a decrease from HK$151.11 million in 2019[71]. - The net current assets amounted to approximately HK$343.26 million, down from HK$497.27 million in 2019, with a current ratio of approximately 2.95 times compared to 8.21 times in 2019[71]. - The gearing ratio was approximately 0.33 as of June 30, 2020, compared to 0.30 in 2019, indicating a slight increase in leverage[71]. Business Operations - The Group provided coal mining and construction services, generating approximately HK$239.06 million in revenue, accounting for 90.09% of total revenue[36]. - The Group has entered into a coal mine infrastructure construction agreement with a new customer to focus on pre-extraction stage services[41]. - The Group has entered into a new agreement for coal mine infrastructure construction, reallocating resources to focus on pre-extraction services following the termination of agreements with major clients due to regulatory compliance[42]. - The Group is actively pursuing new customers to enlarge its customer base and has implemented efficiency initiatives to streamline operations and achieve savings[64]. - The demand for heating supply systems in the PRC is expected to grow due to rapid urbanization and environmental regulations, with plans to expand heating supply business in profitable areas like Beijing[65]. Regulatory and Compliance Risks - The Group's operations are heavily regulated by PRC laws and any changes in these regulations could increase operating costs and adversely affect financial performance[107]. - The Group will closely monitor regulatory changes in the coal industry to ensure compliance and adapt operations accordingly[109]. - The Group's mining operations are subject to various operating risks, including unexpected maintenance issues and natural disasters, which could disrupt operations and damage reputation[102]. Corporate Governance - The Company has adopted a code of conduct for securities transactions by Directors, ensuring compliance throughout the year[134]. - The Board is responsible for maintaining effective risk management and internal control systems to safeguard assets and shareholders' interests[190]. - A Risk Management Policy has been established to ensure the Group operates in a safe and steady environment[191]. - The Audit Committee provides advice and comments on the Company's financial reporting and internal control procedures[175]. - The Company complied with all applicable code provisions of the CG Code throughout the year ended June 30, 2020[133]. Strategic Initiatives - The Group aims to consolidate its business portfolio and diversify its income sources to create greater value for shareholders in the future[20]. - The Group's focus on infrastructure development aligns with its strategy to adapt to regulatory changes and market demands in the coal mining sector[42]. - The management emphasized a strategic shift towards digital transformation, which is expected to streamline operations and reduce costs by I%[117]. - The company is investing $H million in R&D for new technologies aimed at improving service delivery and customer satisfaction[117].

Financial Performance - Revenue for the three months ended March 31, 2020, was HKD 29,448,000, a decrease of 53% compared to HKD 62,786,000 for the same period in 2019[5] - Gross profit for the nine months ended March 31, 2020, was HKD 37,104,000, down 32.5% from HKD 54,909,000 in the previous year[5] - The company reported a loss before tax of HKD 55,069,000 for the nine months ended March 31, 2020, compared to a profit of HKD 3,329,000 in the same period of 2019[5] - The loss attributable to owners of the company for the three months ended March 31, 2020, was HKD 11,305,000, compared to a loss of HKD 959,000 in the same period of 2019[6] - Total comprehensive loss for the nine months ended March 31, 2020, was HKD 65,532,000, compared to a loss of HKD 6,764,000 in the same period of 2019[6] - The group recorded revenue of approximately HKD 203,260,000 for the nine months ended March 31, 2020, a decrease of 13.2% compared to HKD 234,190,000 for the same period in 2019[26] - The group reported a loss attributable to owners of the company of HKD 47,361,000 for the nine months ended March 31, 2020, compared to a loss of HKD 1,969,000 in 2019[23] - The group recorded a loss attributable to shareholders of approximately HKD 47,360,000, compared to a loss of HKD 1,970,000 in the previous year, primarily due to impairment losses on customer contracts and property, plant, and equipment[29] Operational Challenges - The group faced operational disruptions due to the COVID-19 outbreak, which affected coal mining services from February to late March 2020[26] - Future outlook remains cautious due to market volatility and operational challenges faced during the reporting period[10] Equity and Dividends - The company’s total equity as of March 31, 2020, was HKD 416,389,000, a decrease from HKD 481,731,000 as of July 1, 2019[8] - The company has not declared any dividends for the period due to the ongoing losses[10] - The group did not recommend any dividend distribution for the nine months ended March 31, 2020, consistent with the previous year[20] Revenue Sources - Revenue from coal production and technical services was HKD 181,363,000 for the nine months ended March 31, 2020, compared to HKD 215,677,000 in 2019, indicating a decrease of 16%[13] - Revenue from coal mining services was approximately HKD 181,360,000, accounting for 89.23% of total revenue, down from HKD 215,680,000 in the previous year[30] - Interest income from lending services increased to HKD 16,053,000 for the nine months ended March 31, 2020, up from HKD 12,587,000 in 2019, representing a growth of 27.5%[13] Expenses and Costs - Depreciation and amortization expenses for the nine months ended March 31, 2020, were HKD 12,100,000, down from HKD 17,316,000 in 2019, a decrease of 30.2%[15] - The group incurred financing costs of HKD 5,486,000 for the nine months ended March 31, 2020, compared to HKD 5,140,000 in 2019, reflecting an increase of 6.7%[15] Impairment and Losses - The group confirmed impairment losses on customer contracts and property, plant, and equipment of approximately HKD 43,580,000 and HKD 12,110,000, respectively, due to a major customer not renewing a coal mining service agreement[27] Cash and Assets - As of March 31, 2020, the group held cash and cash equivalents of approximately HKD 107,540,000, a decrease from HKD 151,110,000 as of June 30, 2019[42] - The net current assets were approximately HKD 367,310,000, down from HKD 497,270,000 as of June 30, 2019[42] - The current ratio was approximately 3.27 times, a decrease from 8.21 times as of June 30, 2019, primarily due to the reclassification of HKD 121,640,000 of bills payable from non-current to current liabilities[42] - The debt-to-asset ratio was approximately 0.29, slightly down from 0.30 as of June 30, 2019[43] - As of March 31, 2020, the group had no bank borrowings[43] Staffing and Employment - The group employed 1,330 staff, with an expected 600 to 700 employees potentially being hired by new contractors after the non-renewal of coal mining service agreements[45] Other Information - The group reported other income of approximately HKD 7,950,000, a decrease from HKD 11,170,000 in the previous year, mainly due to reduced government subsidies[27] - Financial assets at fair value through profit or loss generated a gain of HKD 750,000, compared to a loss of HKD 1,710,000 in the previous year[34] - Loan interest income was approximately HKD 16,050,000, representing 7.90% of total revenue, an increase from HKD 12,590,000 in the previous year due to higher loan balances[32] - The group plans to expand its heating services in regions with higher profitability, such as Beijing, and is in discussions with a new customer for heating services[36] - The group intends to maintain healthy development across different business segments to diversify its revenue sources and strengthen its business portfolio[36] - Approximately HKD 81,000,000 of the proceeds from a share placement has been utilized for clean energy-related services, including capital expenditures and operational expenses[40] - The group has not engaged in any significant acquisitions or disposals of subsidiaries or associates during the period[41] - There were no significant contingent liabilities as of March 31, 2020[46] - No major litigation occurred during the reporting period[47] - The company has not granted any share options under the new share option scheme as of the report date[56] - The audit committee reviewed the unaudited condensed consolidated financial statements, ensuring compliance with applicable accounting standards and GEM listing rules[63]