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].

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)