绿色能源科技集团(00979) - 2020 - 中期财报

Corporate Information The report outlines the company's basic information, including board members, registered office, principal place of business, share registrar, auditor, and principal bankers - The report provides an overview of the company's fundamental details, such as its board of directors, registered office, principal place of business, share registrar, auditor, and principal bankers[4][5] Financial Statements This section presents the company's condensed consolidated financial statements, including comprehensive income, financial position, and cash flows Condensed Consolidated Statement of Comprehensive Income For the six months ended December 31, 2019, turnover significantly increased by 108.3% to HKD 74.6 million, but loss for the period expanded to HKD 12.09 million due to increased operating expenses Summary of Consolidated Statement of Comprehensive Income (For the six months ended December 31) | Indicator | 2019 (HKD Thousands) | 2018 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Turnover (Continuing Operations) | 74,597 | 35,809 | +108.3% | | Changes in inventories of finished goods | (69,026) | (31,140) | - | | Staff costs | (8,005) | (5,420) | +47.7% | | Other operating expenses | (9,290) | (8,302) | +11.9% | | Loss before income tax | (12,085) | (9,782) | +23.5% | | Loss for the period | (12,090) | (9,668) | +25.1% | | Loss attributable to owners of the Company | (11,833) | (9,004) | +31.4% | | Basic loss per share (HK cents) | (1.06) | 0.95 | - | Condensed Consolidated Statement of Financial Position As of December 31, 2019, total assets increased to HKD 119.8 million, and net assets to HKD 116.7 million, with a strong current ratio indicating good short-term solvency Summary of Statement of Financial Position | Indicator | As at December 31, 2019 (HKD Thousands) | As at June 30, 2019 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Total assets | 119,781 | 110,482 | +8.4% | | Non-current assets | 27,884 | 34,635 | -19.5% | | Current assets | 91,897 | 75,847 | +21.2% | | Total liabilities | 3,127 | 4,919 | -36.4% | | Current liabilities | 2,790 | 4,919 | -43.3% | | Net assets | 116,654 | 105,563 | +10.5% | | Equity attributable to owners of the Company | 115,066 | 103,721 | +10.9% | Condensed Consolidated Statement of Cash Flows Net cash outflow from operating activities was HKD 13 million, while net cash inflow from investing activities was HKD 3.1 million and from financing activities was HKD 21.74 million, increasing period-end cash to HKD 43.57 million Summary of Cash Flow Statement (For the six months ended December 31) | Indicator | 2019 (HKD Thousands) | 2018 (HKD Thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (13,004) | (35,264) | | Net cash from/(used in) investing activities | 3,100 | (350) | | Net cash from financing activities | 21,741 | 5,245 | | Net increase/(decrease) in cash and cash equivalents | 11,837 | (30,369) | | Cash and cash equivalents at beginning of period | 31,563 | 52,537 | | Cash and cash equivalents at end of period | 43,571 | 20,732 | Notes to the Condensed Consolidated Financial Statements This section details the accounting policies adopted, revenue and segment information, dividends, loss per share, and the impact of subsidiary disposals Accounting Policies The Group adopted HKFRS 16 "Leases" from July 1, 2019, recognizing right-of-use assets and lease liabilities of approximately HKD 2.54 million, with other accounting policies remaining consistent - Effective July 1, 2019, the Group first applied HKFRS 16 "Leases," recognizing leases previously classified as "operating leases" as right-of-use assets and lease liabilities[16][17] Impact of Adopting HKFRS 16 (July 1, 2019) | Item | Impact Amount (HKD Thousands) | | :--- | :--- | | Increase in non-current assets - right-of-use assets | 2,536 | | Increase in liabilities - lease liabilities | 2,536 | Revenue and Segment Information Total revenue increased by 108.3% to HKD 74.6 million, driven by renewable energy, while plastic/metal waste recycling revenue significantly declined, resulting in an overall operating loss Revenue by Business Segment (For the six months ended December 31) | Business Segment | 2019 (HKD Thousands) | 2018 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Recyclable oil/biodiesel trading | 67,806 | 27,077 | +150.4% | | Construction waste trading and waste treatment services | 2,585 | 1,993 | +29.7% | | Plastic/metal waste recycling business | 2,706 | 5,239 | -48.4% | | Money lending services | 1,500 | 1,500 | 0% | | Total | 74,597 | 35,809 | +108.3% | Segment Results by Business Segment (For the six months ended December 31) | Business Segment | 2019 (HKD Thousands) | 2018 (HKD Thousands) | | :--- | :--- | :--- | | Renewable energy | 917 | 409 | | Construction waste and waste treatment services | 295 | 283 | | Money lending services | 215 | 214 | | Plastic/metal waste recycling business | (2,909) | (3,215) | | Total segment results | (1,482) | (2,309) | - Due to unsatisfactory performance, the biological clean materials trading business was discontinued as of June 30, 2019[21] Dividends and Loss Per Share The Board did not recommend an interim dividend, and the loss attributable to owners was HKD 11.83 million, resulting in a basic loss per share of 1.06 HK cents - The Board did not recommend an interim dividend for the period[27] Loss Per Share Calculation | Indicator | For the six months ended December 31, 2019 | | :--- | :--- | | Loss attributable to owners of the Company (HKD Thousands) | (11,833) | | Weighted average number of ordinary shares in issue (shares) | 1,112,506,318 | | Basic and diluted loss per share (HK cents) | (1.06) | Disposal of Subsidiaries The Group disposed of its interests in Upframe Limited and Almoray Limited, generating a gain of HKD 0.438 million and a net cash inflow of HKD 3.055 million - The Group disposed of its entire interests in Upframe Limited and Almoray Limited, whose principal businesses were holding freehold land in Germany and investment holding[39] Financial Impact of Subsidiary Disposal | Item | Amount (HKD Thousands) | | :--- | :--- | | Consideration received | 3,780 | | Net assets disposed of | (3,379) | | Release of exchange reserve | 37 | | Gain on disposal of subsidiaries | 438 | | Net cash inflow from disposal of subsidiaries | 3,055 | Management Discussion and Analysis This section provides an overview of the Group's business performance, segment analysis, financial review, and future strategic outlook Business Review and Operating Results During the period, turnover increased by 108.3% to HKD 74.6 million, but net loss attributable to owners expanded by 31.1% to HKD 11.83 million due to product mix and operational inefficiencies Half-Yearly Performance Comparison | Indicator | First Half of FY2019/20 | First Half of FY2018/19 | | :--- | :--- | :--- | | Turnover | Approx. HKD 74,597,000 | Approx. HKD 35,809,000 | | Net loss attributable to owners of the Company | Approx. HKD 11,833,000 | Approx. HKD 9,000,000 | - The primary reasons for the expanded loss include: (i) an unfavorable product mix with a higher proportion of low-margin products; (ii) low utilization of the German recycled plastic production facility due to scheduled maintenance; and (iii) a HKD 2.6 million increase in staff costs and related bonuses to support business growth[43] Segment Performance Analysis Renewable energy drove significant growth, while plastic/metal waste recycling declined due to China's import policies, prompting strategic shifts towards Japan and cautious expansion in money lending - Renewable energy revenue reached HKD 67.81 million (compared to HKD 27.08 million in the prior period), benefiting from joint ventures, with plans to explore new markets like Malaysia and Taiwan[45] - Construction waste and waste treatment revenue increased by 29.7% to HKD 2.585 million, supported by solid relationships with local construction companies and government agencies[45] - Plastic/metal waste recycling revenue decreased by 48.18% to HKD 2.706 million due to China's "Ban on Foreign Waste Imports" policy; in response, the Group established a joint venture in Japan for advanced plastic waste recycling, expected to commence operations in Q1 2020[47][48] - Money lending services revenue remained stable at HKD 1.5 million, with management adopting a cautious approach while considering steady business expansion[49] Financial Review As of December 31, 2019, the Group maintained a strong financial position with a current ratio of approximately 32.8 and no external borrowings, having raised HKD 22.5 million from new share placements Liquidity Indicators (As at December 31, 2019) | Indicator | Amount (HKD Thousands) | | :--- | :--- | | Total current assets | 91,897 | | Total current liabilities | 2,790 | | Current Ratio | Approx. 32.8 | - In July 2019, the company raised HKD 22.5 million net from a new share placement, with approximately HKD 10.5 million allocated to plastic recycling business development and general working capital, while some funds remain unutilized[52] - The Group faces risks from USD and EUR exchange rate fluctuations but has not used any derivative financial instruments for hedging[53] Future Outlook The Group plans to allocate more resources to its money lending business in Hong Kong and upgrade German facilities while focusing on the Japanese plastic recycling joint venture to address new waste import regulations and seek acquisition opportunities - Given increased lending demand, the Group plans to allocate more resources to its money lending business to generate stable profits and diversify risks[57] - To comply with stricter waste import standards in China, the Group plans to upgrade existing equipment to produce high-end products and views the new joint venture in Japan as a significant growth driver[58] - The Group will continue to review costs, manage cash resources, and seek acquisition opportunities in new business areas and geographical markets[59] Other Information This section covers major shareholders' interests and the company's corporate governance practices, including deviations from code provisions Major Shareholders and Interests As of December 31, 2019, major shareholders included New Glory Business Corporation with 23.57% and Rich Bay Global Limited with 12.96%, with Leyou Technologies Holdings Limited holding approximately 5.28% Major Shareholder Holdings (As at December 31, 2019) | Shareholder Name | Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | | New Glory Business Corporation | 267,829,436 | 23.57% | | Rich Bay Global Limited | 147,244,000 | 12.96% | | Leyou Technologies Holdings Limited | 60,000,000 | 5.28% | Corporate Governance The company largely complied with corporate governance codes, but deviated on the separation of Chairman and CEO roles and temporary non-compliance with independent non-executive director requirements - There was a deviation from Corporate Governance Code Provision A.2.1, where the roles of Chairman and Chief Executive Officer were held by the same individual, Mr. Wong Sai Hung[68] - Between December 1, 2019, and February 26, 2020, the company did not meet the Listing Rules' requirements for the number of independent non-executive directors (at least three) and Audit Committee members (at least three), but this issue was subsequently resolved[71]