绿色能源科技集团(00979) - 2021 - 中期财报

Cover and Table of Contents The report is the 2020 interim report published by Green Energy Group Limited (Stock Code: 979) - The report is the 2020 interim report published by Green Energy Group Limited (Stock Code: 979)[2] Company Information Key Company Information This section provides basic company information, including board members, committee structures, registered office, principal place of business, share registrar, and principal bankers - Executive Directors include Mr. Wong Sai Hung (Chairman), Mr. Lo Yin Ping, and Mr. Ho Wai Hung[6] - The company's auditor is Cheng & Cheng Limited[5][6] Financial Statements Condensed Consolidated Statement of Comprehensive Income For the six months ended December 31, 2020, the company's revenue decreased by 46.1% year-on-year to HKD 40.16 million, while loss attributable to owners narrowed by 31.4% to HKD 8.14 million due to exchange gains Summary of Consolidated Statement of Comprehensive Income (For the six months ended December 31) | Indicator | 2020 (HKD thousands) | 2019 (HKD thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 40,159 | 74,597 | -46.1% | | Loss before income tax | (9,114) | (12,085) | -24.6% | | Loss for the period | (9,119) | (12,090) | -24.6% | | Loss attributable to owners of the Company | (8,136) | (11,833) | -31.2% | | Basic loss per share (HK cents) | 0.72 | 1.06 | -32.1% | Condensed Consolidated Statement of Financial Position As of December 31, 2020, total assets were HKD 104.4 million and net assets were HKD 93.65 million, both slightly decreased from June 30, 2020, with cash and cash equivalents reducing to HKD 62.08 million Summary of Statement of Financial Position | Indicator | December 31, 2020 (HKD thousands) | June 30, 2020 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 35,560 | 30,543 | +16.4% | | Current assets | 68,843 | 78,749 | -12.6% | | Total assets | 104,403 | 109,292 | -4.5% | | Current liabilities | 10,755 | 8,162 | +31.8% | | Net assets | 93,648 | 101,130 | -7.4% | | Cash and cash equivalents | 62,079 | 70,133 | -11.5% | Condensed Consolidated Statement of Changes in Equity For the six months ended December 31, 2020, total equity decreased due to the loss for the period, with no share issuance activities unlike the prior year's HKD 22.4 million share placement - During the period, the company's total equity decreased from HKD 101 million at the beginning of the period to HKD 93.65 million at the end, primarily due to a total comprehensive loss of HKD 7.49 million for the period[11][13] - Unlike the prior period's HKD 22.4 million raised through share placement, no share issuance activities occurred in this reporting period[13] Condensed Consolidated Statement of Cash Flows Net cash outflow from operating activities improved to HKD 5.82 million, and with no financing activities, cash and cash equivalents decreased by HKD 9.95 million to HKD 62.08 million at period-end Summary of Cash Flow Statement (For the six months ended December 31) | Indicator | 2020 (HKD thousands) | 2019 (HKD thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (5,815) | (13,004) | | Net cash (used in)/from investing activities | (3,501) | 3,100 | | Net cash (used in)/from financing activities | (632) | 21,741 | | Net (decrease)/increase in cash and cash equivalents | (9,948) | 11,837 | | Cash and cash equivalents at end of period | 62,079 | 43,571 | Notes to the Condensed Consolidated Financial Statements Revenue and Segment Information Group revenue primarily from five business segments, with renewable energy (recycled oil/biodiesel trading) being the largest but experiencing a 50.4% year-on-year decline, while a new healthcare business was launched for diversification Revenue by Business Segment (For the six months ended December 31) | Business Segment | 2020 (HKD thousands) | 2019 (HKD thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Recycled oil/biodiesel trading | 33,649 | 67,806 | -50.4% | | Construction waste trading and processing services | 2,418 | 2,585 | -6.5% | | Plastic recycling/metal scrap | 3,681 | 2,706 | +36.0% | | Money lending services | – | 1,500 | -100.0% | | Healthcare services | 411 | – | N/A | | Total | 40,159 | 74,597 | -46.1% | - The Group newly launched healthcare business, including laboratory diagnostic services and clinical health services, during the reporting period, disclosed as a separate business segment[21] Interim Dividend The Board of Directors does not recommend an interim dividend for the six months ended December 31, 2020 - The company's directors do not recommend an interim dividend for the six months ended December 31, 2020 (2019 corresponding period: nil)[32] Share Capital As of December 31, 2020, the company's total issued ordinary shares were 1,136,308,176, with no changes during the reporting period, unlike a share placement in the prior year - As of December 31, 2020, the company's issued and fully paid share capital was 1,136,308 thousand shares, with a total par value of HKD 113,631 thousand, unchanged during this reporting period[37] - The note mentions that the company placed 189,380,000 new shares at HKD 0.12 per share in July 2019, raising net proceeds of approximately HKD 22.5 million[38] Management Discussion and Analysis Business Review During the reporting period, total group revenue decreased by 46.1% year-on-year, but net loss narrowed by 31.4% mainly due to exchange gains from USD depreciation, with varied performance across segments and a new healthcare business launched Operating Results For the six months ended December 31, 2020, group revenue was approximately HKD 40.2 million, a 46.1% year-on-year decrease, with net loss attributable to owners of approximately HKD 8.1 million, a 31.4% decrease, primarily due to HKD 2.4 million exchange gains - The reduction in loss was primarily due to approximately HKD 2.4 million exchange gains from the depreciation of the US dollar, compared to an exchange loss of HKD 1.9 million in the prior period[41] - The reduction in loss was partially offset by increased losses in the plastic recycling segment due to plummeting crude oil prices, market stagnation, and raw material shortages[41] Segment Information Business segments were significantly impacted by macroeconomic conditions, with renewable energy revenue halved, plastic recycling losses expanding, construction waste stable, money lending paused, and new healthcare business showing initial results - Renewable Energy: Revenue decreased by approximately 50% year-on-year to HKD 33.6 million, mainly due to reduced demand for transport fuel from the pandemic, lower crude oil prices weakening competitiveness, and surging freight costs due to international container shortages[42] - Plastic Recycling/Metal Scrap: Revenue increased to HKD 3.7 million, but segment loss expanded to HKD 4.4 million, primarily affected by global oil price declines, recycled plastic price wars, European pandemic lockdowns, and raw material shortages in Japan[46][47] - Money Lending Business: Due to deteriorating economic conditions and rising delinquency rates, the Group adopted a cautious approach, with no new transactions and zero revenue during the period[47] - Healthcare Business: As part of business diversification, the Group commenced this new business in December 2020, providing laboratory diagnostic services, generating approximately HKD 0.4 million in revenue during the period[47] Financial Review The Group maintains a healthy financial position with a current ratio of 6.4 and no external borrowings, with HKD 8 million of the HKD 22.5 million raised from the July 2019 share placement still unused, earmarked for renewable energy business expansion - As of December 31, 2020, the Group's current ratio was approximately 6.4 (June 30, 2020: 9.6), with no external borrowings and sufficient capital[48] Use of Proceeds from Share Placement (As of December 31, 2020) | Planned Use | Planned Amount (HKD millions) | Actual Use (HKD millions) | Unused Amount (HKD millions) | | :--- | :--- | :--- | :--- | | Development of plastic recycling business | 10.0 | 10.0 | 0.0 | | Expansion of renewable energy business and future opportunities | 8.0 | 0.0 | 8.0 | | Additional general working capital | 4.5 | 4.5 | 0.0 | | Total | 22.5 | 14.5 | 8.0 | Business Outlook and Future Prospects Looking ahead, the Group anticipates continued macroeconomic pressure in H1 2021 but remains cautiously optimistic about economic recovery, focusing on strict cost control, prudent development of existing businesses, and leveraging high-grade plastic recycling in Japan and new healthcare ventures for growth - The Group will continue to strictly control expenses, optimize liquidity, and prudently develop existing and new businesses to broaden revenue streams[59] - The Japanese subsidiary will focus on improving the quality and technology of high-grade plastic waste recycling to meet increasingly stringent import requirements[59] - The Group is optimistic about the demand in the healthcare and diagnostic testing industry, believing the new business launched in Q4 2020 can capture market share[59] Other Information Major Shareholders' Interests As of December 31, 2020, New Glory Business Corporation and Rich Bay Global Limited were the company's major shareholders, holding 23.57% and 12.96% of the issued ordinary shares, respectively Major Shareholders' Shareholdings (As of December 31, 2020) | Shareholder Name | Number of Shares Held | Approximate Percentage | | :--- | :--- | :--- | | New Glory Business Corporation | 267,829,436 | 23.57% | | Rich Bay Global Limited | 147,244,000 | 12.96% | Corporate Governance The company complied with most corporate governance code provisions during the reporting period, with one deviation: the roles of Chairman and Chief Executive are not separate, both held by Mr. Wong Sai Hung, which the Board believes enhances leadership and efficiency - The company deviated from Corporate Governance Code provision A.2.1, which states that the roles of chairman and chief executive should be separate, as Mr. Wong Sai Hung, the company's chairman, also performs the duties of chief executive[72][73] - The Board believes that combining the two roles in one person strengthens and unifies leadership, and allows for more effective planning and implementation of business decisions[73]