Financial Performance - Revenue for the six months ended September 30, 2021, increased to HK$51,749,000, up 12% from HK$45,926,000 in the same period last year[14]. - Gross profit for the six months ended September 30, 2021, was HK$15,109,000, representing a 13% increase compared to HK$13,323,000 in the previous year[14]. - Loss for the period attributable to equity holders of the Company was HK$5,244,000 for the six months ended September 30, 2021, compared to a loss of HK$8,955,000 in the same period last year, indicating a 41% improvement[17]. - Operating results for the three months ended September 30, 2021, showed a profit of HK$3,023,000, a significant recovery from a loss of HK$6,001,000 in the previous year[14]. - Loss before tax for the six months ended September 30, 2021, was HK$3,449,000, an improvement from a loss of HK$8,430,000 in the same period last year[14]. - The Company reported a basic loss per share of HK$0.35 for the six months ended September 30, 2021, compared to HK$0.60 in the same period last year[17]. - The total cost of sales for the six months ended September 30, 2021, was HK$36,640,000, an increase from HK$32,603,000 in the previous year[14]. - The company reported a loss of HK$4,143,000 for the six months ended 30 September 2021, compared to a loss of HK$9,252,000 in the same period of 2020, representing a 55.2% improvement[20]. - Total comprehensive profit for the period was HK$160,000, a significant decrease from HK$3,575,000 in the previous year[20]. - The net loss for the period was HK$5,244,000, compared to a loss of HK$8,956,000 in the same period last year, indicating an improvement of approximately 41%[30]. - The unaudited consolidated loss for the Reporting Period was approximately HK$4.1 million, a decrease of approximately 59.1% from approximately HK$9.3 million in the corresponding period last year[147]. - Loss attributable to equity holders of the Company was approximately HK$5.2 million, compared to approximately HK$9.0 million for the six months ended 30 September 2020[150]. Expenses and Cost Management - Selling and distribution expenses decreased to HK$1,610,000 for the six months ended September 30, 2021, down from HK$2,619,000 in the previous year, reflecting a 39% reduction[14]. - Administrative expenses for the six months ended September 30, 2021, were HK$9,519,000, down from HK$12,396,000 in the previous year, marking a 23% decrease[14]. - Operating expenses totaled HK$11,128,000, with the Gold Mining Division incurring HK$6,407,000 and the Corporate Division incurring HK$4,721,000[75]. - Staff costs for the six months ended September 30, 2021 totaled HK$4,762,000, down 18.6% from HK$5,856,000 in 2020[100]. - Administrative and other expenses were approximately HK$9.5 million, a decrease of approximately 23.2% from approximately HK$12.4 million in the same period last year, mainly due to reduced staff costs[146]. Assets and Liabilities - The company's non-current assets increased to HK$859,964,000 as of 30 September 2021, up from HK$828,972,000 as of 31 March 2021, reflecting a growth of 3.7%[23]. - Current assets rose to HK$30,848,000, compared to HK$26,746,000 at the end of March 2021, indicating a 7.8% increase[23]. - Trade and other payables increased to HK$112,048,000 from HK$103,281,000, marking an increase of 8.3%[23]. - The company reported net current liabilities of HK$189,995,000, compared to HK$169,120,000 in the previous period, indicating a deterioration in current financial position[26]. - The equity attributable to equity holders of the company was HK$213,998,000, slightly up from HK$213,872,000, showing a marginal increase of 0.1%[26]. - The Group's net current liabilities were approximately HK$190.0 million as of 30 September 2021, compared to approximately HK$169.1 million as of 31 March 2021[153]. - The current ratio as of 30 September 2021 was approximately 0.14, down from approximately 0.19 as of 31 March 2021[153]. - The Group's gearing ratio was approximately 0.51 as of 30 September 2021, slightly decreased from approximately 0.52 as of 31 March 2021[153]. Cash Flow and Financing - Net cash generated from operating activities was HK$34,782,000, a significant increase from HK$11,935,000 in the previous year, representing a growth of about 191%[46]. - Cash and cash equivalents improved to HK$10,078,000 from HK$5,916,000, representing a 70.5% increase[23]. - Cash and cash equivalents at the end of the period increased to HK$10,078,000 from HK$9,230,000, reflecting a growth of approximately 9%[46]. - The net cash used in investing activities was HK$(35,366,000), an increase from HK$(20,253,000) in the previous year, indicating higher investment outflows[46]. - The financing activities generated a net cash inflow of HK$4,683,000, down from HK$14,789,000 in the previous year, reflecting a decrease of approximately 68%[46]. - The Group's interest-bearing borrowings as of 30 September 2021 amounted to HK$418.5 million, with interest rates ranging from 5% to 30%[130]. Future Outlook and Strategy - The Company aims to enhance its market presence and improve operational efficiency in the upcoming quarters[12]. - Management plans to control operating costs and increase revenue to improve operating cash flows[63]. - The Company aims to improve asset scale and quality, as well as financial performance, through organic growth and potential mergers and acquisitions[181]. - The Group anticipates facing several challenges for the remainder of 2021 due to economic uncertainties from the COVID-19 pandemic and tightening mining regulations[180]. Corporate Governance and Structure - The role of the chairman is performed by Dr. Li Dahong, while the position of chief executive officer is currently vacant[192]. - The maximum number of shares subject to the share options under the Share Option Scheme is capped at 149,678,216 shares, representing 10% of the total shares in issue as of September 27, 2021[198]. - The overall limit on the number of shares that may be issued upon exercise of all outstanding options under the Share Option Scheme shall not exceed 30% of the shares in issue at any time[199]. - The Share Option Scheme aims to provide incentives to participants for their contributions to the Group and to attract high-caliber employees[198].

Financial Performance - Revenue for the three months ended June 30, 2021, was HK$22,992,000, a decrease of 17.5% compared to HK$27,850,000 in the same period of 2020[13]. - Gross profit for the same period was HK$6,288,000, down 40.6% from HK$10,555,000 year-on-year[13]. - The operating results showed a profit of HK$957,000, a significant decline from HK$4,696,000 in the previous year[13]. - The loss before tax for the period was HK$2,987,000, compared to a profit of HK$1,448,000 in the same period last year[13]. - The loss attributable to equity holders of the Company was HK$3,297,000, compared to a loss of HK$162,000 in the previous year[16]. - Basic loss per share for the period was HK$0.22, compared to HK$0.01 in the same period of 2020[16]. - Total comprehensive loss for the period was HK$1,290,000, compared to a comprehensive loss of HK$2,148,000 in the previous year[19]. - The net profit for the period was a loss of HK$3,297,000, compared to a profit of HK$1,086,000 in the previous period[22]. - The total comprehensive income for the period was HK$1,290,000, which includes an exchange difference gain of HK$4,065,000 from the translation of financial statements of overseas subsidiaries[22]. - The company experienced an increase in non-controlling interest to HK$35,795,000, up from HK$35,273,000[22]. Expenses and Costs - The Company reported finance costs of HK$3,944,000, an increase from HK$3,248,000 in the previous year[13]. - Administrative expenses were HK$4,590,000, slightly down from HK$4,883,000 in the same period last year[13]. - Cost of inventories sold for the same period was HK$16,704,000, down from HK$17,295,000, reflecting a reduction of 3.4%[48]. - Staff costs, including directors' emoluments, decreased to HK$2,429,000 from HK$3,201,000, a reduction of 24.1%[48]. - Selling and distribution expenses were approximately HK$0.7 million, a decrease of approximately 44.4% from HK$1.3 million in the same period last year[72]. - Administrative and other expenses were approximately HK$4.6 million, representing a decrease of approximately 6.0% from HK$4.9 million compared to the same period last year[84]. - Depreciation expenses for the period were HK$7,992,000, compared to HK$7,405,000 in 2020, marking an increase of 7.9%[48]. - Total finance costs for the three months ended June 30, 2021, amounted to HK$3,944,000, an increase from HK$3,248,000 in 2020[65]. - Interest on borrowings increased to HK$2,566,000 from HK$2,034,000, reflecting a rise of 26.2%[65]. Equity and Share Capital - As of June 30, 2021, the company reported a total equity of HK$250,435,000, with a retained loss of HK$1,725,427,000[22]. - The issued share capital remained at HK$89,807,000, and the share premium was HK$1,842,983,000 as of June 30, 2021[22]. - The weighted average number of ordinary shares in issue remained constant at 1,496,782,160 for both periods[58]. - As of June 30, 2021, Mr. Ma Qianzhou holds 200,730,224 shares, representing approximately 13.41% of the issued shares[116]. - Mr. Zhao Yuebing has a beneficial ownership of 22,508,800 shares, which is about 1.50% of the issued shares[116]. - Lee Shing has an interest in a controlled corporation holding 106,893,333 shares, accounting for 7.14% of the issued shares[116]. - Wang Dong has an interest in a controlled corporation with 86,244,800 shares, representing 5.76% of the issued shares[116]. - The company has maintained a sufficient public float as of the report date[126]. Challenges and Future Outlook - The Group anticipates facing numerous challenges in 2021 due to the China-US trade dispute, ongoing COVID-19 impacts, and tightening environmental regulations in China[85][87]. - The Company aims to improve asset scale and quality, as well as financial performance over time[85][87]. - In addition to organic growth, the Group will diligently seek new growth opportunities through mergers and acquisitions, business integration, and expansion to enhance profitability and shareholder returns[85][87]. Compliance and Reporting - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable regulations[32]. - The company’s shares are listed on the GEM of the Stock Exchange of Hong Kong Limited, reflecting its commitment to transparency and regulatory compliance[32]. - No provision for Hong Kong profits tax was made as the Group had no assessable profit for the period[52]. - The report indicates that the interests of Mr. Ma and Ms. Zhao are deemed to be beneficially owned by each other under the SFO[120]. - The company has not established any arrangements for directors to benefit from purchasing shares during the reporting period[112]. - The report includes a detailed breakdown of substantial shareholders and their respective holdings[115]. - No significant events occurred after June 30, 2021, up to the report date[127]. - The company has not been notified of any other person with an interest or short position in shares as required under Section 336 of the SFO[124].

Financial Performance - The Group's revenue for the year ended March 31, 2021, was approximately HK$99.8 million, representing an increase of approximately 43.3% from HK$69.6 million in the previous year[39]. - The Group's gross profit for the year was approximately HK$24.8 million, an increase of approximately 38.7% from HK$17.9 million last year, with a gross profit margin of approximately 24.8%[40]. - The consolidated loss for the year amounted to approximately HK$16.6 million, a significant reduction from approximately HK$38.8 million in the previous year[52]. - The net loss attributable to equity holders of the Company was approximately HK$18.0 million, compared to a loss of approximately HK$35.2 million last year, mainly due to increased revenue and tightened operational expenses[53]. - Selling and distribution expenses increased to approximately HK$4.5 million, up approximately 33.9% from HK$3.4 million last year[41]. - Administrative expenses decreased to approximately HK$25.1 million, down approximately 32.3% from HK$37.0 million last year[42]. - As of March 31, 2021, the Group had cash and cash equivalents of approximately HK$5.9 million, compared to approximately HK$2.1 million in the previous year[55]. - The current ratio as of March 31, 2021, was approximately 0.19, slightly improved from 0.17 in the previous year[55]. - The Group's gearing ratio was approximately 0.52, unchanged from the previous year, calculated based on total borrowings over total assets[55]. Challenges and Risks - The year ended March 31, 2021, was marked by significant challenges due to the COVID-19 pandemic, which disrupted production and business operations[24]. - The Group faced increased operating pressure and production costs due to enhanced environmental protection measures at mine sites, including relocating worker facilities[24]. - The ongoing trade war between China and the US created a high level of uncertainty for business operations throughout the year[24]. - The outbreak of COVID-19 in early 2020 halted all business activities in the PRC and Hong Kong, affecting the Group's ability to raise funds and complete investment plans[66]. - The Group anticipates facing challenges in 2021 due to economic uncertainties, including the China-US trade dispute and the ongoing effects of the COVID-19 pandemic[92][94]. - The COVID-19 pandemic has introduced uncertainties that may lead to labor shortages and operational interruptions, affecting the Group's financial performance[149][150]. - Labor shortages and increased wages due to health risks from the pandemic may delay the Group's mining operations[152]. - The Group faces regulatory challenges, including lengthy and costly processes for mining permit reviews, which could affect operations[141]. - Environmental protection regulations are becoming increasingly stringent, potentially raising operating costs and impacting production activities[145]. Strategic Plans and Investments - The Company expects to face ongoing challenges in the fiscal year 2021 but remains committed to improving asset scale, quality, and financial performance to generate better returns for shareholders[34]. - The Company is focusing on developing its existing business and exploring investment opportunities to enhance profitability and shareholder returns[80]. - The Group aims to enhance its asset scale and quality as well as financial performance over time, while exploring new growth opportunities through mergers and acquisitions[92][94]. - The Group is actively fundraising and negotiating with several interested investors to alleviate current liability risks[151]. - A financial support commitment has been received from a major shareholder to cover essential financial obligations[151]. - The Group plans to boost mineral products throughput and revenue by completing a new processing plant[151]. - Investment opportunities for acquiring quality mining assets are included in the Group's updated plan[151]. - The successful implementation of the plan is expected to fundamentally improve the Group's financial position[151]. Production and Operations - The company reported a significant increase in gold production, achieving a total output of 150,000 ounces, representing a 20% increase year-over-year[121]. - The Group's total expenditure for mine development and mineral exploration was approximately HK$40.7 million, while the expenditure on ore mining operations was approximately HK$27.1 million[99][101]. - The indicated resource and inferred resource of the Group were 1,740 kilotonnes at a grade of 7.88 grams per tonne, containing 13,711 kilograms of gold, and 1,555 kilotonnes at a grade of 6.60 grams per tonne, containing 10,260 kilograms of gold, respectively[102]. - The estimated probable reserves of the Group were 1,494 kilotonnes at a grade of 5.83 grams per tonne, containing 8,709 kilograms of gold[103]. - New technology in ore processing is expected to improve efficiency by 30%, leading to cost savings of approximately $10 million annually[121]. - The Group maintains long-term relationships with suppliers to ensure stable supply and aims to deepen collaborative relationships with strategic suppliers[90][91]. Market and Sales - Revenue for the fiscal year reached $200 million, reflecting a 15% growth compared to the previous year[121]. - User data indicates a growing demand for gold products, with a 40% increase in online sales over the past year[121]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[121]. - The company has set a performance guidance of $250 million in revenue for the next fiscal year, projecting a 25% increase[121]. Governance and Compliance - The Group has complied with all relevant laws and regulations in Hong Kong during the year[156]. - There were no environmental claims, lawsuits, or penalties against the Group during the year[158]. - The Company had no distributable reserves available for shareholders as of March 31, 2021[182]. - No management contracts for the administration of the business were entered into or existed during the year[196]. - The Company maintained permitted indemnity provisions for potential liabilities and costs associated with legal proceedings against Directors[199].

Financial Performance - Revenue for the three months ended December 31, 2020, was HK$6,127,000, a decrease of 75.2% compared to HK$24,737,000 in the same period of 2019[13] - Gross profit for the nine months ended December 31, 2020, was HK$9,304,000, down 78.5% from HK$43,369,000 in the previous year[13] - Loss for the period attributable to equity holders of the Company for the three months ended December 31, 2020, was HK$11,715,000, compared to a loss of HK$4,771,000 in the same period of 2019[16] - Loss before tax for the nine months ended December 31, 2020, was HK$23,573,000, significantly higher than a loss of HK$5,121,000 in the previous year[13] - The Company reported a gross loss of HK$4,019,000 for the three months ended December 31, 2020[13] - The net loss for the three months ended December 31, 2020, was HK$14,321,000, compared to a loss of HK$4,936,000 in the same period of 2019, indicating a significant increase in losses[19] - The total comprehensive loss for the period was HK$21,032,000, compared to HK$2,160,000 in the previous year, reflecting a substantial decline in performance[19] - The Company reported a net loss of HK$20,670,000 for the nine months ended December 31, 2020, compared to a loss of HK$9,525,000 for the same period in 2019, indicating a worsening financial situation[22] - The total comprehensive loss for the nine months ended December 31, 2020, was HK$15,309,000, compared to HK$22,773,000 for the same period in 2019, showing a 33% improvement[19] Expenses and Costs - Administrative expenses for the three months ended December 31, 2020, were HK$5,159,000, a decrease of 13.7% from HK$5,982,000 in the same period of 2019[13] - Finance costs for the nine months ended December 31, 2020, were HK$12,215,000, down from HK$21,421,000 in the previous year[13] - Selling and distribution expenses were approximately HK$3.7 million, a decrease of approximately 8.5% from approximately HK$4.0 million in the same period last year[82] - Administrative and other expenses were approximately HK$17.6 million, representing a decrease of approximately 23.9% from approximately HK$23.1 million in the corresponding period last year[85] - The cost of inventories sold for the nine months ended 31 December 2020 was HK$42.749 million, slightly down from HK$43.369 million in the previous year[58] - Depreciation for the nine months ended 31 December 2020 was HK$22.746 million, a slight decrease from HK$22.971 million in the same period last year[58] Equity and Share Capital - As of December 31, 2020, the total equity attributable to equity holders of the Company was HK$191,986,000, down from HK$204,871,000 at the beginning of the period[22] - The Company’s issued share capital remained unchanged at HK$89,807,000 as of December 31, 2020[22] - The issued share capital of the Company as of December 31, 2020, was HK$89,806,929.624, divided into 1,496,782,160 shares of HK$0.06 each[97] - The Company does not recommend the payment of any dividend for the nine months ended December 31, 2020, consistent with the previous year[90] Cash Flow and Current Liabilities - As of December 31, 2020, the Group had cash and cash equivalents amounting to approximately HK$18.4 million, compared to approximately HK$2.1 million as of March 31, 2020[94] - The Group's net current liabilities amounted to approximately HK$135.3 million as of December 31, 2020, down from approximately HK$148.9 million as of March 31, 2020[94] - The current ratio as of December 31, 2020, was approximately 0.27, an increase from approximately 0.15 as of March 31, 2020[94] Risks and Uncertainties - The Company has acknowledged the potential risks associated with investing in small and mid-sized companies listed on the GEM[2] - The legal proceedings regarding the repayment of HK$30,095,357 in convertible bonds are ongoing, creating uncertainty about the Group's ability to continue as a going concern[49] - The Group anticipates facing a number of challenges for the remaining of 2021 due to economic uncertainties from the Novel Coronavirus outbreak and the China-US trade dispute[104] Corporate Governance and Compliance - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the nine months ended December 31, 2020, and found them compliant with applicable accounting standards[109] - The Company has adopted a code of conduct regarding securities transactions by Directors, with no reported non-compliance during the reporting period[112] - The Company has complied with all Code Provisions set out in the Corporate Governance Code during the reporting period, except for the separation of the roles of chairman and chief executive[118] Shareholding Structure - As of December 31, 2020, Mr. Ma holds 200,730,224 shares, representing approximately 13.41% of the issued shares[132] - Mr. Ma's spouse has an interest in 22,508,800 shares, accounting for about 1.50% of the issued shares[132] - Zhao Yuebing holds 22,508,800 shares, also representing approximately 1.50% of the issued shares[132] - Lee Shing has an interest in a controlled corporation with 106,893,333 shares, which is about 7.14% of the issued shares[132] - Wang Dong has an interest in a controlled corporation with 86,244,800 shares, equating to approximately 5.76% of the issued shares[135] - Midway International Holdings is a beneficial owner of 86,244,800 shares, representing about 5.76% of the issued shares[135] - Zhou Yong holds 116,666,666 shares, which is approximately 7.79% of the issued shares[135] - Leung Heung Ying has an interest in a controlled corporation with 13,333,333 shares, accounting for about 0.89% of the issued shares[135] - J. Thomson Asset Investment Limited holds 13,333,333 shares, also representing approximately 0.89% of the issued shares[135] - Leung Heung Ying has an interest in 100,317,856 underlying shares, which is about 6.70% of the issued shares[135] Future Outlook and Strategy - The Company is focusing on developing its existing business and exploring investment opportunities to broaden its income stream and enhance profitability[103] - The Company aims to improve its asset scale and quality as well as financial performance over time through organic growth and potential mergers and acquisitions[104] - The Group did not have any significant investment, material acquisition, or disposal of subsidiaries and affiliated companies throughout the Reporting Period[102] - During the reporting period, the Group did not engage in any major investments, significant acquisitions, or sales of subsidiaries[105] - The Company is focused on developing and enhancing its existing business while exploring investment opportunities to expand revenue sources and improve profitability[105] Other Information - The Group's financial statements were prepared on a going concern basis, assuming sufficient working capital for at least the next twelve months from December 31, 2020[49] - The Group's financial risk management policies have not changed significantly for the nine months ended December 31, 2020[37] - The Group did not have any material contingent liabilities as of March 31, 2020, and December 31, 2020[104] - The company maintained a sufficient public float as of the report date[141] - No significant events occurred after December 31, 2020, up to the report date[142]

Financial Performance - Revenue for the six months ended September 30, 2020, was HK$45,926,000, a decrease of 35.0% compared to HK$70,753,000 for the same period in 2019[14] - Gross profit for the six months ended September 30, 2020, was HK$13,323,000, down 61.0% from HK$34,179,000 in the previous year[14] - Loss for the period attributable to equity holders of the Company was HK$8,955,000, compared to a loss of HK$4,753,000 for the same period in 2019, representing an increase of 88.5%[17] - Basic loss per share for the six months ended September 30, 2020, was HK$0.60, compared to HK$0.32 for the same period in 2019[17] - Operating results for the six months ended September 30, 2020, showed a loss of HK$1,305,000, a significant decline from a profit of HK$14,191,000 in the previous year[14] - The Company reported a loss before tax of HK$8,430,000 for the six months ended September 30, 2020, compared to a loss of HK$191,000 in the previous year[14] - Total comprehensive loss for the period was HK$22,617,000, reflecting the impact of exchange differences[34] - The Group recorded an unaudited net loss attributable to equity holders of approximately HK$9.0 million for the six months ended 30 September 2020, compared to a loss of approximately HK$4.8 million for the same period last year, representing an increase of approximately 87.5%[129] Cost and Expenses - Total cost of sales for the six months ended September 30, 2020, was HK$32,603,000, a decrease of 10.9% from HK$36,574,000 in 2019[14] - Administrative expenses for the six months ended September 30, 2020, were HK$12,396,000, down 27.4% from HK$17,089,000 in 2019[14] - Staff costs for the six months ended 30 September 2020 amounted to HK$5,856,000, down 27.5% from HK$8,093,000 in the same period of 2019[81] - Selling and distribution expenses were approximately HK$2.6 million, a decrease of approximately 9.7% from HK$2.9 million in the corresponding period last year[122] - Operating expenses totaled HK$15,015,000, reflecting a focus on cost control measures[56] Assets and Liabilities - Non-current assets increased to HK$790,626 as of 30 September 2020, up from HK$753,667 as of 31 March 2020, reflecting a growth of approximately 4.9%[23] - Current assets rose to HK$36,275, compared to HK$26,436 at the end of March 2020, marking an increase of about 37%[23] - Total liabilities increased to HK$638,045 as of 30 September 2020, up from HK$604,803, indicating a rise of about 5.5%[26] - Net current liabilities stood at HK$152,581, slightly higher than HK$148,864 at the end of March 2020, reflecting a marginal increase[26] - The Group's interest-bearing borrowings as of September 30, 2020, amounted to HK$395.8 million, with amounts due within one year being HK$2.5 million[108] Cash Flow - Cash generated from operating activities was HK$11,935,000, a decrease from HK$35,109,000 in the previous year[38] - The total cash and cash equivalents at the end of the period increased to HK$9,230,000 from HK$867,000 in the previous year[38] - The company’s cash and cash equivalents improved significantly to HK$9,230 from HK$2,141, showing a growth of approximately 331%[23] - The Group experienced a net cash outflow from investing activities of HK$20,253,000[38] - The net cash generated from financing activities was HK$14,789,000, compared to HK$13,075,000 in the previous year[38] Corporate Governance - The Company has established an Audit Committee comprising three independent non-executive Directors to oversee financial reporting and risk management[1] - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended 30 September 2020, confirming compliance with applicable accounting standards and GEM Listing Rules[1] - The Company aims to maintain high standards of corporate governance to enhance corporate value and safeguard shareholder interests[6] - The roles of the chairman and chief executive officer are currently not separated, with the chairman's role performed by Dr. Li Dahong and the chief executive officer position vacant[7] Market and Operational Challenges - The decrease in revenue was primarily due to the closure of mining operations caused by the Novel Coronavirus and the slowdown of gold mining operations due to epidemic prevention measures[115] - The Group is expected to face challenges due to economic uncertainties from the COVID-19 outbreak and the China-US trade dispute, along with tightening mine operation regulations[149] Shareholder Information - The Company did not recommend the payment of an interim dividend for the six months ended 30 September 2020, consistent with the previous year[131] - As of September 30, 2020, Mr. Ma Qianzhou holds 200,730,224 shares, representing approximately 13.41% of the issued shares[180] - The company has maintained a sufficient public float as of the report date[190]

Financial Performance - Revenue for the three months ended June 30, 2020, was HK$27,850,000, a decrease of 32.9% compared to HK$41,470,000 in the same period of 2019[14] - Gross profit for the same period was HK$10,555,000, down 45.0% from HK$19,207,000 year-on-year[14] - Operating results showed a profit of HK$4,696,000, a decline of 55.1% from HK$8,524,000 in the previous year[14] - Profit before tax increased to HK$1,448,000, up 35.2% from HK$1,070,000 in the same period last year[14] - Profit for the period attributable to equity holders of the Company was a loss of HK$162,000, compared to a loss of HK$1,240,000 in 2019[17] - Total comprehensive income for the period was HK$2,148,000, compared to a comprehensive loss of HK$13,901,000 in the previous year[20] - Non-controlling interest contributed HK$1,309,000 to the total comprehensive income, an increase from HK$816,000 in the same period of 2019[20] - The basic loss per share for the period was HK$0.01, compared to HK$0.08 in the previous year[17] - The company reported other income of HK$356,000, which was not present in the previous year[14] - Administrative expenses decreased to HK$4,883,000, down 45.0% from HK$8,875,000 in the same period of 2019[14] Equity and Liabilities - As of June 30, 2020, the issued share capital was HK$89,807,000 and the share premium was HK$1,842,983,000[23] - The total comprehensive income for the period ended June 30, 2020, was a loss of HK$839,000, compared to a total comprehensive income of HK$2,148,000 for the same period in 2019[23] - The retained losses increased to HK$1,704,318,000 as of June 30, 2020, from HK$1,704,156,000 as of April 1, 2020[23] - The net profit for the period was a loss of HK$162,000, with a non-controlling interest of HK$1,248,000 contributing to the total[23] - The company reported a total equity of HK$239,768,000 as of June 30, 2020, which includes non-controlling interests of HK$34,058,000[23] Financial Position - The Group's net current liabilities increased to approximately HK$157.5 million as of June 30, 2020, compared to HK$148.9 million as of March 31, 2020[71] - The current ratio as of June 30, 2020, was approximately 0.11, down from 0.17 as of March 31, 2020[71] - The gearing ratio was approximately 0.51 as of June 30, 2020, slightly down from 0.52 as of March 31, 2020[71] - As of June 30, 2020, the Group had cash and cash equivalents amounting to approximately HK$3.4 million, up from HK$2.1 million as of March 31, 2020[71] Operational Insights - The decrease in revenue was attributed to the slowdown of gold mining operations due to environmental inspections and the impact of the COVID-19 pandemic[69] - Profit before tax for the three months ended June 30, 2020, was impacted by a cost of inventories sold of HK$17,295,000, down from HK$22,263,000 in 2019, reflecting a reduction of 22.4%[48] - Staff costs, including directors' emoluments, decreased to HK$3,201,000 for the three months ended June 30, 2020, down from HK$5,266,000 in 2019, a reduction of 39.2%[48] - Depreciation expenses for the three months ended June 30, 2020, were HK$7,405,000, slightly down from HK$7,774,000 in 2019, a decrease of 4.7%[48] Corporate Governance - The Company is committed to maintaining high standards of corporate governance to enhance corporate value and safeguard shareholder interests[79] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2020, and found that the results complied with applicable accounting standards and GEM Listing Rules[84] - The Company has adopted a code of conduct regarding securities transactions by Directors that meets the required standards set out in GEM Listing Rules[79] - The Company has complied with all Code Provisions set out in the Corporate Governance Code during the Reporting Period, with some deviations noted[79] Management and Board Structure - The role of the chairman is currently performed by Dr. Li Dahong, while the position of chief executive remains vacant[82] - The Company will continue to review the Board's structure and will appoint a suitable candidate for the chief executive position when identified[82] - The Board comprises of Dr. Li Dahong, Ms. Ma Xiaona, Mr. Guo Wei, Mr. Lam Albert Man Sum, and Mr. Cheng Wai Hung[111] Shareholding and Interests - Mr. Ma holds 200,730,224 shares, representing approximately 13.41% of the issued shares[93] - Zhao Yuebing has an interest in 22,508,800 shares, accounting for 1.50% of the issued shares[93] - Lee Shing has an interest in a controlled corporation with 106,893,333 shares, which is 7.14% of the issued shares[93] - Yong Li Investments Limited, beneficially owned by Lee Shing, holds 106,893,333 shares, representing 7.14% of the issued shares[96] - Wang Dong has an interest in 86,244,800 shares, which is 5.76% of the issued shares[96] - Zhou Yong holds 116,666,666 shares, accounting for 7.79% of the issued shares[96] - J. Thomson Asset Investment Limited has a subscription obligation for 100,317,856 shares, representing 6.70% of the issued shares[96] Legal and Compliance - The Company has made adequate disclosures in accordance with legal requirements and GEM Listing Rules[84] - The Group's financial statements have been prepared under the historical cost convention, with no material effects from recent amendments to HKFRSs[40] - The Group's financial risk management policies have not undergone significant changes during the three months ended June 30, 2020[40] Events and Changes - Ms. Wang Hongyin resigned as an executive director effective August 10, 2020, to focus on other business commitments[111] - There are no significant events occurred from June 30, 2020, to the date of this report[111]

Economic Challenges - The year 2019 was challenging due to the China-US trade dispute, environmental inspections affecting gold mining operations, and the outbreak of Novel Coronavirus, which forced operations to shut down [24]. - The adverse impacts of the Novel Coronavirus on the business environment are expected to last for several months [24]. - The Group is expected to face numerous challenges in 2020 due to ongoing economic uncertainties from the China-US trade dispute and the Novel Coronavirus epidemic [26]. - The Group anticipates facing challenges in 2020 due to economic uncertainties from the China-US trade dispute and the ongoing impact of the Novel Coronavirus epidemic [66]. - The occurrence of the Novel Coronavirus epidemic has introduced uncertainties to the economy, potentially impacting the Group's operations and sales [126]. Financial Performance - For the year ended March 31, 2020, the Group's revenue was approximately HK$69.6 million, representing a decrease of approximately 57.5% from HK$163.8 million in the previous year [32]. - The gross profit for the year was approximately HK$17.9 million, a decrease of approximately 77.0% from HK$77.5 million, with a gross profit margin of approximately 25.7% compared to 47.3% in the previous year [41]. - The consolidated loss for the year amounted to approximately HK$38.8 million, compared to a profit of approximately HK$7.8 million in the previous year, primarily due to the temporary closure of mining operations and adverse impacts from the Novel Coronavirus epidemic [41]. - Administrative expenses increased by approximately 13.3% to HK$37.0 million from HK$32.7 million in the previous year [41]. - Loss per share for the year was approximately HK cents 2.35, compared to earnings of approximately HK cents 0.0 in 2019 [44]. - The Group's cash and cash equivalents amounted to approximately HK$2.1 million as of March 31, 2020, down from approximately HK$2.2 million in 2019 [44]. - Net current liabilities were approximately HK$127.5 million as of March 31, 2020, compared to approximately HK$96.9 million in 2019 [44]. - The current ratio as of March 31, 2020, was approximately 0.17, a decrease from approximately 0.24 in 2019 [44]. - The Group's gearing ratio was approximately 52.0% as of March 31, 2020, up from approximately 49.3% in 2019 [44]. - Total staff costs for the year amounted to approximately HK$20.6 million, an increase from approximately HK$12.4 million in 2019 [55]. - The Group currently faces limited financial resources with net current liabilities in the red, necessitating sufficient funding for working capital and planned acquisitions [130]. Operational Challenges - The decrease in revenue was attributed to the slowdown of gold mining operations due to environmental inspections and the impact of the Novel Coronavirus on customers [33]. - The sales and respective cost of sales were derecognized due to the cancellation of sales orders by a long-time customer amid the Novel Coronavirus outbreak [34]. - Health safety risks during the pandemic may lead to labor shortages and increased operational costs, affecting the progress of gold mining operations [126]. - The Group's operations are significantly influenced by fluctuations in gold prices, which are affected by global economic conditions and the USD/CNY exchange rate [113]. - Significant capital expenditures are required for new mineral exploration and sustained mine development, with results not always meeting expectations [116]. - Government regulations and policies can impact mining operations, with lengthy and costly processes for permit reviews and approvals [118]. - The nationwide campaign for environmental protection in China has intensified, affecting mining operations and requiring compliance with stricter standards [123]. Strategic Goals - The Company aims to become a high-standard mining company with improved efficiency and competitiveness through organic growth and acquisitions [24]. - The Group aims to improve asset scale and quality as well as financial performance over time despite the challenges faced [28]. - The Group will seek new growth opportunities through mergers and acquisitions, business integration, and expansion to improve profitability and shareholder returns [27]. - The Company plans to seek new growth opportunities through mergers and acquisitions, business integration, and expansion [66]. - The Group aims to explore investment opportunities to broaden its income stream and enhance profitability [53]. - The Group is committed to conducting proper risk assessments and utilizing third-party professionals to mitigate investment risks in mining [116]. - The Group has established policies to ensure compliance with environmental standards and is taking proactive measures to mitigate risks associated with regulatory changes [123]. Shareholder and Governance - The Board is committed to achieving the Company's growth and development objectives with the support of shareholders and stakeholders [24]. - A financial support commitment has been received from a major shareholder to cover essential financial obligations [130]. - The Board does not recommend the payment of any dividend for the Year (2019: Nil) [142]. - The Group has complied with all relevant laws and regulations in Hong Kong during the Year [135]. - There were no environmental claims, lawsuits, penalties, or disciplinary actions against the Group during the Year [135]. - The Company has complied with the requirements of Chapter 20 of the GEM Listing Rules regarding related party transactions [198]. Resource and Development - The Group's total expenditure for mine development and mineral exploration amounted to approximately HK$61.0 million and HK$0 respectively [72]. - The aggregate expenditure on ore mining operations was approximately HK$11.9 million during the year [73]. - As of March 31, 2020, the indicated resource was 1,806 kilotonnes with a grade of 7.82 grams per tonne, containing 13,967 kilograms of gold [76]. - The inferred resource was 1,555 kilotonnes with a grade of 6.6 grams per tonne, containing 10,260 kilograms of gold [76]. - The estimated probable reserves were 1,554 kilotonnes with a grade of 5.74 grams per tonne, containing 8,919 kilograms of gold as of March 31, 2020 [77]. Shareholding Structure - Mr. Ma holds 200,730,224 shares, representing approximately 13.41% of the issued shares [174]. - Ms. Zhao holds 22,508,800 shares, representing approximately 1.50% of the issued shares [174]. - Lee Shing has an interest in a controlled corporation with 106,893,333 shares, accounting for 7.14% of the issued shares [174]. - Wang Dong has an interest in a controlled corporation with 86,244,800 shares, representing 5.76% of the issued shares [177]. - Zhou Yong is a beneficial owner of 116,666,666 shares, which is approximately 7.79% of the issued shares [177]. - The share option scheme was adopted on March 4, 2009, and lapsed on November 19, 2019 [186]. - A total of 67,789,450 share options were granted under the scheme, which have now lapsed [188]. - The subscription obligation of J. Thomson Asset Investment Limited is related to a shares subscription agreement dated June 8, 2017 [180]. - The company has not been notified of any other person with an interest in shares as of March 31, 2020 [180]. - The company plans to review the Share Option Scheme in due course [186]. - Adjustments to exercise prices and the number of shares to be issued upon exercise of outstanding share options are required due to the Open Offer of the Company [195]. - The loans from directors Mr. Ma and Ms. Zhao Yuebing to Taizhou Mining were fully exempt connected transactions as they were conducted on normal commercial terms [195].

Financial Performance - Revenue for the three months ended December 31, 2019, was HK$24,737,000, a decrease of 41.6% compared to HK$42,286,000 in the same period of 2018[12]. - Gross profit for the nine months ended December 31, 2019, was HK$43,369,000, down 43.3% from HK$76,322,000 in the previous year[12]. - The operating results for the three months ended December 31, 2019, were HK$2,109,000, a significant decline from HK$17,290,000 in the same period of 2018[12]. - The profit/(loss) for the period attributable to equity holders of the Company for the three months ended December 31, 2019, was a loss of HK$4,771,000 compared to a profit of HK$4,351,000 in 2018[14]. - Basic earnings per share for the three months ended December 31, 2019, was a loss of HK$0.3187, compared to earnings of HK$0.2908 in the same period of 2018[14]. - Total cost of sales for the nine months ended December 31, 2019, was HK$52,121,000, down 18.9% from HK$64,313,000 in the previous year[12]. - The Company reported a profit/(loss) before tax of HK$4,930,000 for the three months ended December 31, 2019, compared to a profit of HK$10,356,000 in 2018[12]. - For the nine months ended December 31, 2019, the company reported a loss of HK$6,891,000 compared to a profit of HK$901,000 in the same period of 2018, representing a significant decline[16]. - The total comprehensive loss for the period was HK$22,773,000, compared to a loss of HK$12,922,000 in the previous year, indicating a worsening financial position[16]. - The equity attributable to equity holders of the company decreased to HK$238,335,000 as of December 31, 2019, down from HK$266,215,000 at the end of 2018[19]. - The company's retained losses increased to HK$1,705,122,000 as of December 31, 2019, compared to HK$1,704,944,000 at the end of 2018[19]. - The company reported a net loss of HK$9,525,000 for the period, which contributed to the overall comprehensive loss[19]. - The foreign currency translation reserve showed a negative balance of HK$28,579,000 as of December 31, 2019, reflecting adverse currency fluctuations[19]. - The Group's gross profit was approximately HK$43.4 million, representing a decrease of approximately 43.2% from approximately HK$76.3 million compared to the same period last year, with a gross profit margin of approximately 45.4%[89]. - The unaudited consolidated loss for the Reporting Period amounted to approximately HK$6.9 million, compared to a profit of approximately HK$0.9 million for the corresponding period last year[93]. - The loss attributable to equity holders of the Company was approximately HK$9.5 million, compared to approximately HK$9.3 million for the nine months ended December 31, 2018[93]. - Basic loss per share was approximately HK cents 0.64 for the Reporting Period, compared to basic earnings per share of approximately HK cents 0.04 for the same period last year[93]. Operational Challenges - The decrease in revenue was mainly due to the slowdown of gold mining operations resulting from environmental inspections and government demands for environmental improvements[83]. - The Group's profit before tax for the nine months ended 31 December 2019 was impacted by increased operational costs, including staff costs of HK$11.2 million, up from HK$8.6 million in the same period of 2018[64]. - The Group has been served a writ of summons claiming repayment of the principal sum of HK$30,095,357 under a series of convertible bonds, which poses a material uncertainty on the Group's ability to continue as a going concern[40]. - The company continues to face challenges in its financial performance, as indicated by the significant losses and declining equity[16]. - Looking ahead, the Group anticipates challenges due to economic uncertainties from the China-US trade dispute and tightening mine operation regulations[104]. Financial Management and Support - Management is actively controlling operating costs and increasing revenue to improve operating cash flows[40]. - The Company is engaged in active fundraising efforts to meet its operating and financing obligations[40]. - The Group has obtained continuous financial support from a substantial shareholder to enable it to meet its obligations as they fall due[40]. - The Group's policies on financial risk management remain unchanged for the nine months ended December 31, 2019[34]. Corporate Governance - The company emphasizes maintaining high standards of corporate governance to enhance corporate value and safeguard shareholder interests[113]. - The company has complied with all code provisions set out in the Corporate Governance Code during the reporting period, with minor deviations noted[113]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended 31 December 2019, ensuring compliance with applicable accounting standards and GEM Listing Rules[110]. - The role of the chairman is currently performed by Dr. Li Dahong, while the position of chief executive remains vacant[116]. - The company will continue to review its board structure and make appointments as suitable candidates are identified[116]. Share Capital and Options - The issued share capital remained unchanged at HK$89,807,000 as of December 31, 2019[19]. - The share options granted under the Share Option Scheme have an exercise price of at least HK$1.71, with a total balance of 4,519,296 options as of December 31, 2019[122]. - The share options were set to expire on 19 November 2019, with no options exercised during the reporting period[123]. - As of December 31, 2019, Mr. Ma held 200,730,224 shares, representing approximately 13.41% of the issued shares[136]. - Mr. Zhao Yuebing had an interest in 22,508,800 shares, which is about 1.50% of the issued shares[136]. - Lee Shing had an interest in 106,893,333 shares, accounting for approximately 7.14% of the issued shares[136]. - Yong Li Investments Limited, wholly owned by Mr. Lee Shing, held 106,893,333 shares, representing 7.14% of the issued shares[138]. - Wang Dong had an interest in 86,244,800 shares, which is about 5.76% of the issued shares[138]. - Zhou Yong held 116,666,666 shares, representing approximately 7.79% of the issued shares[138]. - J. Thomson Asset Investment Limited had an interest in 13,333,333 shares, accounting for about 0.89% of the issued shares[138]. - The company maintained a sufficient public float as of the report date[146]. Legal and Compliance - During the Reporting Period, the Company faced a legal action related to the repayment of the principal sum of HK$30,095,357 under the Convertible Bonds, which is still ongoing[100]. - The financial statements have not been audited but have been reviewed by the audit committee of the Company[44]. - The Group did not have any significant investments, material acquisitions, or disposals of subsidiaries and affiliated companies throughout the Reporting Period[104]. - The company has adopted a code of conduct for securities transactions by directors, complying with the required standards set out in the GEM Listing Rules[113]. - As of 31 December 2019, none of the directors or chief executives had any interests or short positions in the shares or debentures of the company[125]. Cash and Liquidity - As of December 31, 2019, the Group had cash and cash equivalents of approximately HK$1.1 million, down from approximately HK$2.2 million as of March 31, 2019[93]. - The current ratio as of December 31, 2019, was approximately 0.23, unchanged from March 31, 2019[93]. - The Group's gearing ratio was approximately 0.49 as of December 31, 2019, consistent with the ratio as of March 31, 2018[93].

Financial Performance - Revenue for the six months ended September 30, 2019, was HK$70,753,000, a decrease of 28.1% from HK$98,349,000 in the same period of 2018[11]. - Gross profit for the six months ended September 30, 2019, was HK$34,179,000, down 34.6% from HK$52,178,000 in the previous year[11]. - Loss for the period attributable to equity holders of the Company was HK$3,513,000, compared to a loss of HK$22,039,000 in the same period of 2018[13]. - Basic loss per share for the six months ended September 30, 2019, was HK$0.23, compared to HK$1.47 in the previous year[13]. - Operating results for the six months ended September 30, 2019, showed a profit of HK$14,191,000, a significant increase from HK$9,972,000 in the same period of 2018[11]. - Other income and expenses for the six months ended September 30, 2019, were net zero, compared to a loss of HK$19,157,000 in the same period of 2018[11]. - Total comprehensive loss for the period was HK$6,712,000, down from HK$14,880,000 in the previous year, reflecting a reduction of approximately 55%[15]. - The company reported a loss for the period of HK$2,132,000 for the six months ended September 30, 2019, compared to a loss of HK$21,403,000 for the same period in 2018, indicating a significant improvement[15]. - For the six months ended September 30, 2019, the company reported a net loss of HK$4,754,000[22]. - Total comprehensive loss for the period amounted to HK$20,613,000, including an exchange loss of HK$17,863,000 from overseas subsidiaries[22]. Assets and Liabilities - Non-current assets amounted to HK$771,694,000 as of September 30, 2019, slightly decreasing from HK$777,029,000 as of March 31, 2019[18]. - Current liabilities increased to HK$152,584,000 from HK$134,644,000, indicating a rise of about 13%[18]. - The net current liabilities stood at HK$123,128,000, compared to HK$103,735,000 in the previous period, showing an increase of approximately 18%[20]. - The company's cash and cash equivalents decreased to HK$867,000 from HK$2,196,000, a decline of about 60%[18]. - The equity attributable to equity holders of the company decreased to HK$240,451,000 from HK$263,068,000, a reduction of approximately 9%[20]. - The company reported inventories of HK$6,307,000, down from HK$8,158,000, indicating a decrease of about 23%[18]. - The Group's interest-bearing borrowings amounted to HK$356.6 million as of 30 September 2019, with interest rates ranging from 5% to 30%[108]. - The Group's net current liabilities amounted to approximately HK$123.1 million as of 30 September 2019, compared to approximately HK$103.7 million as of 31 March 2019[131]. - The current ratio as of 30 September 2019 was approximately 0.19, a decrease from approximately 0.23 as of 31 March 2019[131]. Operational Highlights - The company is primarily engaged in gold exploration, mining, and mineral processing in the PRC and Hong Kong[36]. - The Group incurred a loss after tax of approximately HK$2.0 million for the six months ended 30 September 2019, compared to a loss of approximately HK$7.1 million for the same period in 2018[48]. - The Group had two operating segments for the six months ended 30 September 2019: Gold Mining Division and Corporate Division[51]. - Segment revenue from external customers for the six months ended September 30, 2019, was HK$70,753,000, a decrease of 28.0% compared to HK$98,349,000 for the same period in 2018[55]. - Operating expenses totaled HK$19,990,000, with HK$10,297,000 attributed to gold mining and HK$9,693,000 to corporate expenses[55]. - During the Reporting Period, the Group's total expenditure for mine development and mineral exploration amounted to approximately HK$48.5 million[155]. - The aggregate expenditure on the ore mining operation of the Group was approximately HK$11.2 million during the Reporting Period[156]. Governance and Management - The Company confirmed that the information in the report is accurate and complete in all material respects[5]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2019, confirming compliance with applicable accounting standards[166]. - The role of the chief executive officer remains vacant, with the chairman currently performing the role, pending the appointment of a suitable candidate[173]. - The Group emphasizes a quality board and sound internal control as part of its corporate governance practices[173]. Shareholder Information - The issued share capital remained at HK$89,807,000, with a share premium of HK$1,837,947,000[22]. - The substantial shareholder Mr. Ma Qianzhou holds 2,369,340 share options, all of which remain unexercised as of the reporting date[179]. - As of September 30, 2019, no substantial shareholders other than directors and chief executives had recorded interests in shares or underlying shares[192]. - The total shares held by beneficial owners and their interests indicate significant ownership concentration within the company[197][200].

Financial Performance - Revenue for the three months ended June 30, 2019, was HK$41,470,000, a decrease of 35% compared to HK$63,755,000 in the same period of 2018[10] - Gross profit for the same period was HK$19,207,000, down from HK$35,016,000, reflecting a gross margin decline[10] - Operating results showed a profit of HK$8,524,000, significantly lower than HK$24,167,000 in the previous year, indicating a decrease of 64.7%[10] - Profit before tax was HK$1,070,000, down 93.9% from HK$17,634,000 in the prior year[10] - The profit for the period attributable to equity holders of the Company was a loss of HK$1,240,000, compared to a profit of HK$8,374,000 in 2018[12] - Total comprehensive loss for the period was HK$13,901,000, compared to a loss of HK$5,450,000 in the same period last year[14] - The basic and diluted loss per share for the period was HK$0.08, compared to earnings of HK$0.56 per share in the previous year[12] - Non-controlling interest contributed a profit of HK$1,417,000 for the period, down from HK$5,902,000 in 2018[12] - The company reported finance costs of HK$7,454,000, an increase from HK$6,533,000 in the previous year[10] - The report indicates that the company is facing significant challenges in maintaining profitability and managing costs effectively[10] Comprehensive Loss and Equity - As of June 30, 2019, the company reported a total comprehensive loss of HK$14,717,000, which includes a net loss of HK$1,240,000 for the period[17] - The retained losses increased to HK$1,696,837,000 as of June 30, 2019, compared to HK$1,695,630,000 at the beginning of the period[20] - The total equity attributable to equity holders of the company was HK$24,351,000 as of June 30, 2019, down from HK$263,068,000 at the beginning of the period[17] - The foreign currency translation reserve showed a loss of HK$26,848,000 as of June 30, 2019, indicating a significant impact from exchange rate fluctuations[17] - The company recorded an exchange difference loss of HK$13,477,000 from the translation of financial statements of overseas subsidiaries[17] - The total comprehensive income for the period was reported as a loss of HK$13,901,000, reflecting ongoing challenges in the market[17] Operational Overview - The company is primarily engaged in gold exploration, mining, and mineral processing, with operations in the PRC and Hong Kong[26] - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[27] Cost Management - Cost of inventories sold for the same period was HK$22,263,000, down from HK$28,739,000 in 2018, reflecting a 22.5% reduction[44] - Staff costs, including directors' emoluments, increased to HK$5,266,000 from HK$2,145,000, representing a 145% increase year-over-year[50] - Administrative and other expenses increased to approximately HK$8.9 million, an increase of approximately 20.8% from approximately HK$7.3 million in the same period last year[76] - Selling and distribution expenses were approximately HK$1.8 million, representing a decrease of approximately 48.3% from approximately HK$3.5 million in the corresponding period last year[75] Taxation and Provisions - Current tax provision for overseas operations was HK$893,000, significantly lower than HK$3,358,000 in 2018, indicating a 73% decrease[56] - The Group has not made any provision for Hong Kong profits tax as there were no assessable profits for the period[56] Share Capital and Gearing - The company's issued share capital remained at HK$89,807,000, with a share premium of HK$1,837,947,000 as of June 30, 2019[20] - The Group had cash and cash equivalents amounting to approximately HK$2.9 million as of 30 June 2019, an increase from approximately HK$2.2 million as of 31 March 2019[83] - Net current liabilities increased to approximately HK$121.1 million as of 30 June 2019, up from approximately HK$103.7 million as of 31 March 2019[83] - The current ratio as of 30 June 2019 was approximately 0.22, slightly down from approximately 0.23 as of 31 March 2019[83] - The Group's gearing ratio was approximately 0.51 as of 30 June 2019, compared to approximately 0.49 as of 31 March 2019[83] Future Outlook and Strategy - The Group anticipates facing challenges in 2019 due to economic uncertainties from the China-US trade dispute and other macroeconomic factors[86] - The Company aims to improve asset scale and quality, as well as financial performance, while exploring new growth opportunities through mergers and acquisitions[86] - The Group's treasury policy focuses on minimizing foreign exchange risk by maintaining most bank deposits in HK$ or RMB[83] Corporate Governance - The Company has established an audit committee consisting of three independent non-executive directors, with Mr. Lin Wenshen as the chairman[94] - The Company has complied with all Code Provisions set out in the Corporate Governance Code during the reporting period, with some deviations noted[99] - The Company emphasizes the importance of effective corporate governance practices to enhance corporate value and safeguard shareholder interests[99] - The Company will continue to review its board structure and appoint a suitable candidate for the chief executive position as necessary[103] Shareholder Information - As of June 30, 2019, Mr. Ma Qianzhou held 200,730,224 shares, representing approximately 13.41% of the issued shares[114] - Zhao Yuebing holds 22,508,800 shares, representing approximately 1.50% of the issued shares[117] - The spouse of Zhao Yuebing has an interest in 200,730,224 shares, accounting for 13.41% of the issued shares[117] - Lee Shing has an interest in a controlled corporation with 106,893,333 shares, which is 7.14% of the issued shares[117] - Wang Dong holds 86,244,800 shares, representing 5.76% of the issued shares[117] - Zhou Yong is a beneficial owner of 116,666,666 shares, which is approximately 7.79% of the issued shares[117] - Leung Heung Ying has an interest in a controlled corporation with 13,333,333 shares, accounting for 0.89% of the issued shares[119] - J. Thomson Asset Investment Limited is a beneficial owner of 13,333,333 shares, representing 0.89% of the issued shares[119] - The company has maintained a sufficient public float as of the report date[122] Miscellaneous - The Company did not repurchase or sell any of its listed securities during the reporting period[95] - There have been no significant changes in the financial risk management policies during the reporting period[34] - The accounting policies used in the preparation of the financial statements remain consistent with those applied in the previous year[34] - No significant events occurred after June 30, 2019, up to the date of the report[122] - The board comprises of multiple executive and independent directors as of the report date[122]