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]

Economic Challenges and Strategic Focus - The company faced significant challenges in 2018 due to the China-US trade dispute, international political instability, and a slowing global economy, which impacted its operational plans[24]. - In 2019, the company anticipates continued challenges, particularly from legal disputes, and will prioritize executing its business development plan[25]. - The company is committed to improving its asset scale and quality, as well as its financial performance over time[25]. - The Group is exploring various business opportunities to improve ore production and processing capacity[36]. - The Group aims to explore investment opportunities to broaden its income stream and enhance profitability[65]. - The Group is committed to fending off legal challenges and minimizing disturbances to execute its business development plan[82]. Financial Performance - For the year ended 31 March 2019, the Group's revenue was approximately HK$163.8 million, representing a decrease of approximately 24.0% from approximately HK$215.4 million in the previous year[33][35]. - The Group's gross profit was approximately HK$77.5 million, a decrease of approximately 20.7% from approximately HK$97.7 million in the previous year, with an overall gross profit margin of approximately 47.3%[36][39]. - The consolidated profit for the year amounted to approximately HK$7.8 million, down from approximately HK$34.2 million in the previous year[39]. - The current ratio as of 31 March 2019 was approximately 0.23, down from approximately 0.33 in the previous year[41]. - The Group's gearing ratio was approximately 49.3% as of 31 March 2019, compared to approximately 42.2% in the previous year[42][45]. - Cash and cash equivalents amounted to approximately HK$2.2 million, a significant decrease from approximately HK$22.4 million in the previous year[39]. - Net current liabilities were approximately HK$103.7 million, down from approximately HK$135.7 million in the previous year[39]. - The Group's net current liabilities are currently in the red, indicating limited financial resources, which may adversely affect operations if additional funding is not secured in a timely manner[137]. - The Group is actively engaged in fundraising discussions with several interested investors to alleviate current liability risks and improve financial stability[137]. Operational Developments - The Group completed the excavation of approximately 16,114 meters of various tunnels during the year[84]. - A new processing plant is being finalized and implemented to boost mineral products throughput, revenue, and net profits, which is expected to fundamentally improve the Group's financial position[137]. - The Group's total expenditure for mine development and mineral exploration amounted to approximately HK$113.2 million, while the expenditure on ore mining operations was approximately HK$34.0 million[86][87]. Market and Growth Strategies - The company aims to enhance its competitiveness and financial performance through organic growth and acquisitions, focusing on becoming a high-standard mining company[24]. - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[105]. - A strategic acquisition of a smaller mining company is under consideration, which could enhance the company's resource base and operational capabilities[105]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% driven by new product launches and market expansion strategies[105]. Environmental and Regulatory Compliance - Environmental protection initiatives have been enhanced, requiring compliance with strict pollution control standards and permitting at specific elevations[134]. - The company has policies in place to ensure compliance with environmental standards and to protect natural and social environments[134]. - Recent inspections by the Central Government resulted in temporary shutdowns of mining operations, highlighting the need for adherence to environmental policies[134]. - The enforcement of environmental policies may lead to increased operating costs and potential interruptions in normal production activities[134]. - The company is actively monitoring policy developments to prepare for anticipated changes in regulations[131]. Shareholder and Management Information - The Board does not recommend the payment of any dividend for the Year, consistent with the previous year[148]. - The Company maintained permitted indemnity provisions for potential liabilities and costs associated with legal proceedings against Directors[166]. - As of March 31, 2019, none of the Directors or chief executives had any interests or short positions in the shares or debentures of the Company[171]. - The Directors' remuneration details are provided in note 11 to the consolidated financial statements[168]. - The Company had no unexpired service agreements with Directors that were not determinable within one year without compensation[161]. Employee and Operational Costs - Total staff costs for the year were approximately HK$12.8 million, a decrease from approximately HK$18.1 million in 2018[66]. - The Group had 59 employees as of March 31, 2019, compared to 61 in 2018[66]. - Selling and distribution expenses increased to approximately HK$4.9 million, representing an increase of approximately 41.4% from approximately HK$3.4 million in the previous year[36][39]. - Administrative expenses decreased to approximately HK$32.7 million, a reduction of approximately 20.0% from approximately HK$40.8 million in the previous year[39]. Risks and Challenges - The company faces significant risks related to fluctuations in gold prices, which are influenced by international market conditions and USD to RMB exchange rates[124]. - Investment in mineral exploration and mining involves inherent risks, requiring significant capital expenditures and proper risk assessment[128]. - The company is subject to various government regulations that can impact operations, including lengthy and costly permit processes[129].

Financial Performance - Revenue for the three months ended December 31, 2018, was HK$42,286,000, a decrease of 25.1% compared to HK$56,434,000 for the same period in 2017[14] - Gross profit for the three months ended December 31, 2018, was HK$24,144,000, down 34.2% from HK$36,625,000 in the previous year[16] - Profit before tax for the three months ended December 31, 2018, was HK$10,356,000, a decrease of 11.0% compared to HK$11,635,000 in the same period of 2017[23] - Profit for the period attributable to equity holders of the Company was HK$4,351,000 for the three months ended December 31, 2018, compared to HK$3,219,000 in the previous year, representing an increase of 35.1%[26] - Total comprehensive income for the three months ended December 31, 2018, was HK$7,408,000, down 50.9% from HK$15,080,000 in the same period of 2017[35] - For the nine months ended December 31, 2018, revenue was HK$140,635,000, a decrease of 19.5% from HK$174,630,000 in the previous year[14] - Profit for the nine months ended December 31, 2018, was HK$901,000, a significant decrease from HK$18,889,000 in the same period of 2017[25] - Basic earnings per share for the three months ended December 31, 2018, was HK$0.0194, an increase from HK$0.0160 in the previous year[26] - The Company reported a total comprehensive income of HK$20,702,000 for the previous period, with a net profit of HK$4,297,000[67] Expenses and Costs - The Company reported finance costs of HK$6,934,000 for the three months ended December 31, 2018, an increase of 31.9% compared to HK$5,255,000 in the same period of 2017[22] - Administrative expenses for the three months ended December 31, 2018, were HK$6,609,000, a decrease of 64.0% from HK$18,386,000 in the previous year[20] - Selling and distribution expenses were approximately HK$3.6 million, a decrease of approximately 22.2% compared to HK$4.6 million in the same period last year[112] - Administrative and other expenses were approximately HK$26.2 million, representing a decrease of approximately 36.9% from HK$41.4 million in the corresponding period last year[113] Financial Position - The net loss for the period was HK$9,314,000, with accumulated losses reaching HK$1,695,630,000[45] - As of December 31, 2018, the issued share capital was HK$89,807,000 and the share premium was HK$1,837,947,000[43] - The total equity attributable to equity holders of the Company was HK$303,641,000 as of December 31, 2018[43] - As of December 31, 2018, the Group had cash and cash equivalents of approximately HK$6.2 million, down from approximately HK$22.4 million as of March 31, 2018[122] - The Group's net current liabilities amounted to approximately HK$155.8 million as of December 31, 2018, compared to approximately HK$135.7 million as of March 31, 2018[122] - The current ratio as of December 31, 2018, was approximately 0.16, down from approximately 0.33 as of March 31, 2018[122] - The gearing ratio as of December 31, 2018, was approximately 0.44, compared to approximately 0.42 as of March 31, 2018[122] Exchange and Other Income - The company reported a net exchange loss of HK$19,784,000 for the nine months ended December 31, 2018, compared to no exchange gain or loss in the same period of 2017[86] - The Group's exchange loss from foreign currency balances was approximately HK$19.7 million, primarily due to the depreciation of the Renminbi during the Reporting Period[114] - Other income for the three months ended December 31, 2018, was HK$187,000, compared to HK$139,000 in the same period of 2017[86] Corporate Governance - The Company has established an audit committee consisting of three independent non-executive directors to review financial materials and monitor the financial reporting process[141] - The Company is committed to maintaining the highest standards of corporate governance to enhance corporate value and safeguard shareholder interests[144] - The Company complied with all Code Provisions as set out in the Corporate Governance Code during the reporting period, except for a deviation regarding the separation of roles of chairman and chief executive[144] - The role of the chairman is currently performed by Dr. Li Dahong, while the position of chief executive remains vacant since September 12, 2017[144] Shareholder Information - Ma Qianzhou holds 3,010,953,361 shares, representing approximately 13.41% of the issued shares[156] - Zhao Yuebing holds 337,632,000 shares, representing approximately 1.50% of the issued shares[156] - Lee Shing has an interest in a controlled corporation with 1,603,400,000 shares, representing approximately 7.14% of the issued shares[158] - Wang Dong has an interest in a controlled corporation with 1,293,672,000 shares, representing approximately 5.76% of the issued shares[158] - Zhou Yong is a beneficial owner of 1,750,000,000 shares, representing approximately 7.79% of the issued shares[158] - The company maintained sufficient public float as of the report date[160] Future Outlook and Strategy - The Company aims to explore opportunities to increase ore processing capacity and expand income sources to improve business performance and shareholder returns[131] - The Company will adopt a cautious approach to evaluate potential projects and investments while continuously reviewing its strategies and operations[133] - The company is actively engaged in fundraising efforts to support its operations and financing obligations[78] - Management is focused on controlling operating costs and increasing revenue to improve operating cash flows[78] - The Company has received continuous financial support from a substantial shareholder to meet its operational and financing needs[79] - A legal proceeding is ongoing regarding the repayment of HK$30,095,357 related to convertible bonds, which poses a material uncertainty on the company's ability to continue as a going concern[77] - The financial statements have been prepared on a going concern basis, assuming the company can meet its future working capital and financing requirements for at least the next twelve months[79] Share Consolidation - A share consolidation was announced, where every fifteen issued and unissued shares of HK$0.004 each were consolidated into one share of HK$0.06[169] - The board lot size for trading was changed to 24,000 consolidated shares upon the share consolidation becoming effective[169] - The company announced a share consolidation of every 15 shares with a par value of HKD 0.004 into 1 share with a par value of HKD 0.06, effective February 4, 2019[170] - There were no other material subsequent events reported after the reporting period up to the date of this report[171]