中国环境资源(01130) - 2021 - 中期财报

Company Information Board of Directors and Committees This section lists the members of the Board of Directors (including executive and independent non-executive directors) and the composition of key committees for China Environmental Resources Group Limited - Executive Directors include Mr. Yeung Chi Hang (Chairman and Chief Executive Officer), Mr. Leung Kwong Choi, Mr. Wong Po Keung, Mr. Chung Siu Wa, and Mr. Chik To Bun[2] - Independent Non-executive Directors include Mr. Wong Kwai Sang, Mr. Wong Tze King, and Mr. Heung Chi Hang[2] - Mr. Wong Tze King chairs the Audit, Remuneration, and Nomination Committees; Mr. Leung Kwong Choi chairs the Investment Committee[2] Registration and Contact Information This section provides the company's basic contact and registration information, including its registered office, Hong Kong head office, share registrars, principal bankers, stock codes, and website - The company's registered office is located in the Cayman Islands[2] - The Hong Kong head office and principal place of business is Unit 2608, 26/F, South Tower, Concordia Plaza, 1 Science Museum Road, Tsim Sha Tsui East, Kowloon[2] - The Hong Kong stock code is 1130, and the Singapore trading code is CHENV400:SP[4] Independent Review Report Independent Review Report ZHONGHUI ANDA CPA Limited reviewed China Environmental Resources Group Limited's unaudited condensed consolidated interim financial statements for the six months ended December 31, 2020, concluding no material non-compliance with HKAS 34 - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[7] - The auditor found no matters leading them to believe that the interim financial statements were not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[8] - The independent auditor is ZHONGHUI ANDA CPA Limited[9] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended December 31, 2020, group revenue decreased by 13.2% and gross profit by 7.1%, but loss for the period significantly narrowed by 43.4% due to reduced fair value losses and impairment provisions, with total comprehensive income turning positive Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | Six Months Ended December 31, 2020 (HK$ thousand) | Six Months Ended December 31, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 34,151 | 39,363 | | Gross Profit | 9,408 | 10,128 | | Operating Loss | (12,043) | (21,999) | | Loss for the Period | (12,913) | (22,833) | | Total Comprehensive Income/(Loss) for the Period | 13,849 | (28,694) | | Loss for the Period Attributable to Owners of the Company | (13,626) | (23,333) | | Basic Loss Per Share (HK cents) | (0.67) | (1.15) | - Exchange differences on translation of overseas operations turned from a HK$5,861 thousand loss in 2019 to a HK$26,762 thousand gain in 2020[12] Condensed Consolidated Statement of Financial Position As of December 31, 2020, the Group's total assets and net assets increased, driven by higher fair values of biological assets and investment properties, while net current assets slightly decreased Condensed Consolidated Statement of Financial Position Key Data | Metric | December 31, 2020 (HK$ thousand) | June 30, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Non-current Assets | 669,338 | 641,280 | | Current Assets | 125,275 | 121,118 | | Current Liabilities | 82,424 | 73,436 | | Net Current Assets | 42,851 | 47,682 | | Net Assets | 591,581 | 577,732 | - Fair value of biological assets increased from HK$248,759 thousand as of June 30, 2020, to HK$268,962 thousand as of December 31, 2020[16] - Fair value of investment properties increased from HK$259,002 thousand as of June 30, 2020, to HK$263,633 thousand as of December 31, 2020[16] Condensed Consolidated Statement of Changes in Equity This section details changes in the Group's equity components for the six months ended December 31, 2020, including share capital, reserves, and accumulated losses, reflecting the impact of comprehensive income/loss on equity - This section primarily presents changes in equity components, including share capital, share premium account, statutory reserve, capital reserve, share-based payment reserve, exchange fluctuation reserve, accumulated losses, equity attributable to owners of the Company, and non-controlling interests[20] - Total comprehensive income for the period was HK$13,849 thousand, with HK$12,395 thousand attributable to owners of the Company and HK$1,454 thousand to non-controlling interests[13] Condensed Consolidated Statement of Cash Flows For the six months ended December 31, 2020, operating cash flow shifted from net outflow to inflow, net cash used in investing activities decreased, and financing cash flow moved from net inflow to outflow, resulting in a positive cash and cash equivalents balance at period-end, indicating improved liquidity Condensed Consolidated Statement of Cash Flows Key Data | Metric | Six Months Ended December 31, 2020 (HK$ thousand) | Six Months Ended December 31, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 5,005 | (8,087) | | Net Cash Used In Investing Activities | (598) | (3,553) | | Net Cash (Used In)/From Financing Activities | (921) | 4,033 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 3,486 | (7,607) | | Cash and Cash Equivalents at End of Period | 3,130 | (2,031) | - Cash and bank balances at period-end were HK$7,851 thousand, a significant increase from HK$2,955 thousand in the prior period[22] Notes to the Condensed Financial Statements General Information This section outlines China Environmental Resources Group Limited's registration, listing, diverse principal activities including metal recycling, automotive, financial services, property leasing, Camellia Chrysantha products, securities investment, and green businesses, and the presentation currency of its financial statements - The Company is incorporated in the Cayman Islands, with shares listed on the Main Board of the Hong Kong Stock Exchange and the Singapore Exchange[24] - The Group's principal activities include trading of recycled metals, motor vehicles and related parts, parking space leasing, financial services, trading of Camellia Chrysantha products, securities trading and investment, and sales and distribution of plantation products, environmental systems, and planting materials[24] - The interim financial statements are presented in Hong Kong Dollars (HK$), which is the Group's presentation currency and the functional currency of the Company and its principal operating subsidiaries[24] Accounting Policies and Basis of Preparation This section details the Group's adoption of new and revised HKFRSs and the basis of interim financial statement preparation, emphasizing consistency with annual consolidated financial statements and the application of management judgments and estimates Adoption of New and Revised Hong Kong Financial Reporting Standards - The Group has adopted all new and revised Hong Kong Financial Reporting Standards, which did not result in significant changes to accounting policies, financial statement presentation, or reported amounts for the current and prior periods[25] Basis of Preparation - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of Appendix 16 to the Listing Rules[26] - The accounting policies and methods of computation used in preparing the interim financial statements are consistent with those used in the 2020 annual report[27] Fair Value Measurement This section discloses the Group's fair value measurement methods for assets and liabilities, categorized by fair value hierarchy (Level 1, 2, 3), with biological assets and investment properties primarily measured using Level 2 inputs Fair Value Hierarchy Disclosure (Recurring Fair Value Measurements) | Metric | December 31, 2020 (HK$ thousand) | June 30, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Level 1: | | | | Investments at Fair Value Through Profit or Loss | 1,590 | 1,696 | | Level 2: | | | | Biological Assets | 268,962 | 248,759 | | Hong Kong Investment Properties | 190,000 | 190,000 | | China Investment Properties | 73,633 | 69,002 | | Total (Recurring Fair Value Measurements) | 534,185 | 509,457 | - Management is responsible for fair value measurements of assets and liabilities required for financial reporting, reporting valuation processes and results to the Board at least twice annually[32] Revenue and Segment Information This section details the Group's revenue by business segment and geographical market, with primary revenue from metal recycling, motor vehicle and parts sales, loan interest, and parking space rentals, noting a significant narrowing of total reportable segment loss for the period - The Group's revenue primarily comprises sales of recycled metals, motor vehicles and related parts, loan interest income, parking space rental income, and sales of Camellia Chrysantha products[37] Total Reportable Segment Loss | Metric | Six Months Ended December 31, 2020 (HK$ thousand) | Six Months Ended December 31, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Total Reportable Segment Loss | (6,665) | (16,115) | Disaggregation of Revenue from Contracts with Customers (by Geographical Market) | Geographical Market | Six Months Ended December 31, 2020 (HK$ thousand) | Six Months Ended December 31, 2019 (HK$ thousand) | | :--- | :--- | :--- | | China | 1,342 | 507 | | Hong Kong | 29,186 | 34,732 | | Macau and Others | 383 | 452 | | Total | 30,911 | 35,691 | Finance Costs and Income Tax This section discloses the Group's finance costs, primarily lease interest and bank loan/overdraft interest, and details income tax credit, with Hong Kong profits tax provided at 16.5% and no overseas tax provision for the period Finance Costs Finance Costs Details | Metric | Six Months Ended December 31, 2020 (HK$ thousand) | Six Months Ended December 31, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Lease Interest | 541 | 431 | | Bank Loans and Overdraft Interest | 515 | 517 | | Total | 1,056 | 948 | Income Tax Credit Income Tax Credit Details | Metric | Six Months Ended December 31, 2020 (HK$ thousand) | Six Months Ended December 31, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Current Tax - Hong Kong Profits Tax | 499 | 752 | | Deferred Tax | (685) | (866) | | Income Tax Credit | (186) | (114) | - Hong Kong profits tax is provided at 16.5%, with no overseas tax provision for the period[50] Loss Per Share and Dividends This section provides details on the Group's basic and diluted loss per share calculation, showing a significant year-on-year reduction in loss, and confirms the Board's decision not to declare an interim dividend Loss Per Share Loss Per Share | Metric | Six Months Ended December 31, 2020 (HK cents) | Six Months Ended December 31, 2019 (HK cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (0.67) | (1.15) | | Diluted Loss Per Share | (0.67) | (1.15) | - Basic loss per share is calculated based on the loss attributable to owners of the Company of approximately HK$13,626,000 and the weighted average of 2,036,538,114 ordinary shares outstanding during the period[52] - All potential ordinary share effects for the six months ended December 31, 2020, and 2019 were anti-dilutive[52] Interim Dividend - The Board resolved not to declare an interim dividend for the six months ended December 31, 2020[52] Notes to the Statement of Financial Position This section provides detailed notes on property, plant and equipment, trade and other receivables, loans receivable, refundable pledged deposits, and trade and other payables, including changes, aging analysis, and impairment status Property, Plant and Equipment - For the six months ended December 31, 2020, the Group purchased property, plant, and equipment of approximately HK$598,000, a significant decrease from HK$4,071,000 in the prior period[52] Trade and Other Receivables Trade and Other Receivables | Metric | December 31, 2020 (HK$ thousand) | June 30, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Trade Receivables (net of provision) | 27,244 | 38,738 | | Prepayments, Deposits and Other Receivables (net of provision) | 29,709 | 28,121 | | Total | 56,953 | 66,859 | - The Group primarily transacts with customers on credit, with credit terms generally ranging from 30 to 90 days[56] - Impairment provision for trade receivables remained unchanged at HK$8,062 thousand at period-end[55] Loans Receivable Loans Receivable Details | Metric | December 31, 2020 (HK$ thousand) | June 30, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total Loans Receivable | 18,520 | 18,188 | | Analyzed as: Current Assets | 18,261 | 14,808 | | Non-current Assets | 259 | 3,380 | - Loans granted bear interest at annual rates ranging from 2% to 30%, with loan periods typically between 6 and 39 months[61] - Approximately HK$1,000,000 of loans receivable are secured by watches owned by the borrowers[61] Refundable Pledged Deposits - As of December 31, 2020, HK$12,000,000 in deposits were overdue, stemming from a terminated hotel business acquisition in 2013[64][62] - The Directors believe no impairment loss provision is required for this balance, as the collateral obtained from the vendor is sufficient to cover the outstanding amount[64] Trade and Other Payables Trade and Other Payables | Metric | December 31, 2020 (HK$ thousand) | June 30, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Trade Payables | 7,714 | 4,480 | | Other Payables and Accruals | 27,347 | 27,243 | | Total | 35,061 | 31,723 | - Trade payables (0 to 90 days) increased from HK$4,371 thousand as of June 30, 2020, to HK$7,218 thousand as of December 31, 2020[67] Share-based Payments This section details the 2015 Share Option Scheme's purpose, exercise price determination, grant limits, and validity period, noting no options were granted, exercised, cancelled, or lapsed for the six months ended December 31, 2020 - The Share Option Scheme aims to provide incentives, rewards, remuneration, and/or benefits to participants, fostering shared goals to improve business and enhance shareholder value[69] - The option exercise price is the highest of the closing price on the offer date, the average closing price for the five preceding trading days, and the nominal value of the shares[69] - The total number of shares that may be granted under the Share Option Scheme shall not exceed 10% of the total issued shares on the date the scheme was approved[70] - For the six months ended December 31, 2020, no share options were granted, exercised, cancelled, or lapsed[119] - As of December 31, 2020, unexercised share options to subscribe for a total of 105,114,085 shares of the Company represented 5.16% of the Company's issued shares[119] Related Party Transactions This section discloses significant related party transactions during the period, including rent paid to a company indirectly owned by the Chairman and CEO's mother, and goods sold to a company where a subsidiary director's spouse is a director Related Party Transactions | Transaction Type | Six Months Ended December 31, 2020 (HK$ thousand) | Six Months Ended December 31, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Rent Paid | 176 | 1,058 | | Sales to a Related Company | 15 | 5 | - Key management personnel remuneration (directors' emoluments) was HK$2,421 thousand (2019: HK$2,376 thousand)[74] Management Discussion and Analysis Interim Dividend The Board decided not to declare an interim dividend for the six months ended December 31, 2020 - The Board resolved not to declare an interim dividend for the six months ended December 31, 2020[77] Business and Operations Review This section reviews the Group's business operations, including metal recycling, motor vehicles and parts, investment properties, money lending, securities trading and investment, green technology, Camellia Chrysantha products, and plantation sales, noting varying impacts from market conditions and the COVID-19 pandemic Overall Business Overview - The Group currently engages in metal recycling, motor vehicle and parts, parking space leasing, money lending, Camellia Chrysantha product trading, and securities trading and investment businesses[78] - The Group is developing a hotel business in Nepal and holds logging rights for 30,000 mu of plantation land in Xinjiang, with biological assets having a fair value of approximately HK$268,962,000[78] - Industrial land and buildings in Dongguan are valued at approximately HK$73,633,000 at fair value, subject to new town planning and ongoing government negotiations[79] - Parking spaces in Kennedy Town, Hong Kong, maintained a value of approximately HK$190,000,000, contributing stable income[79] Metal Recycling Business - China's relaxation of import restrictions on high-grade scrap metal led to an increase in prices for quality scrap steel in Hong Kong[80] - The business faces challenges from reduced supply (fewer construction projects) and rising costs (Waste Electrical and Electronic Equipment Producer Responsibility Scheme)[80] - For the six months ended December 31, 2020, revenue from metal recycling business was approximately HK$5,802,000 (2019: approximately HK$6,617,000)[80] Motor Vehicle and Parts Business - Motor vehicle/motorcycle sales were severely impacted by social unrest in Hong Kong, the COVID-19 pandemic, and economic downturn, leading to slowdown and increased focus on inventory disposal[81] - Motor vehicle parts sales remained relatively stable, especially for 'Pirelli' tires, with Taiwan as a key market experiencing minor pandemic impact[81] - For the six months ended December 31, 2020, revenue from motor vehicle and parts business was approximately HK$25,109,000 (2019: approximately HK$28,930,000)[81] Investment Properties - Industrial buildings in China are not engaged in business activities[82] - Parking spaces in Hong Kong continue to provide stable revenue and cash flow for the Group[82] - For the six months ended December 31, 2020, rental income was approximately HK$2,001,000 (2019: approximately HK$1,902,000)[82] Money Lending Business - For the six months ended December 31, 2020, loan interest income was approximately HK$1,239,000 (2019: approximately HK$1,742,000)[83] - As of December 31, 2020, the principal amount of outstanding loans receivable was approximately HK$15,097,000[83] - The Group recognized an impairment loss of approximately HK$119,000 due to a borrower's default[83] Securities Trading and Investment Business - With extreme market volatility and unrecovered stock market momentum, management adopted a more cautious investment approach[84] - For the six months ended December 31, 2020, a net fair value loss of approximately HK$106,000 (2019: approximately HK$244,000) was recognized on investments at fair value through profit or loss[84] Major Investment Portfolio (December 31, 2020) | Share Name | Stock Code | Net Unrealized Loss (HK$ thousand) | Market Value (HK$ thousand) | Approx. % of Equity Investment | Approx. % of Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | China Fortunes Financial Group Limited | 290 | (80.5) | 575 | 36.2 | 0.10 | | Ding Yi Group Investment Limited | 508 | 147.2 | 208 | 13.1 | 0.04 | | Wai Chun Group Holdings Limited | 1013 | (53.9) | 575 | 36.1 | 0.10 | | HANG SANG (SIU PO) | 3626 | (118.9) | 232 | 14.6 | 0.04 | | Total | | (106.1) | 1,590 | 100.0 | 0.28 | Green Technology - For the six months ended December 31, 2020, no revenue was recorded from green technology[90] Camellia Chrysantha Products - For the six months ended December 31, 2020, no revenue was generated from the sale of Camellia Chrysantha products (2019: approximately HK$144,000)[90] Plantation Sales Business - The Group holds logging rights for trees on its plantation land, cautiously seeking the most appropriate use and awaiting felling quota information to assess economic returns[91] - For the six months ended December 31, 2020, no revenue was generated from the plantation sales business[91] Prospects This section outlines the Group's future plans and macroeconomic outlook, noting slow progress for the Nepal hotel business due to the pandemic and policy, termination of the China agricultural e-commerce platform due to underperformance and COVID-19, a global economy in post-pandemic stagnation with Hong Kong facing challenges but hopeful for recovery with vaccines, and the Group's commitment to cost control and conservative investment - The hotel development plan in Kathmandu, Nepal, remains incomplete and pending, affected by the COVID-19 pandemic and Nepal government's entry policies[92] - The Group's agricultural e-commerce platform business (VIE) in China has been terminated due to pandemic-related management access issues and significantly underperforming expectations[93] - The global economy remains in a stagnant phase due to the COVID-19 pandemic, with a challenging transition towards a 'new normal' expected by mid-next year[95] - Hong Kong's economy contracted by 6.1% in 2020, the largest annual decline on record, but COVID-19 vaccine availability is expected to drive growth in 2021[97] - The Group will continue to implement cost control measures, reduce costs and recurring expenses, remain conservative on new investments, and focus more on improving existing businesses[97] Financial Review This section reviews the Group's financial performance for the six months ended December 31, 2020, noting decreased turnover and gross profit primarily due to reduced motor vehicle and parts sales, but a significantly narrowed loss for the period, driven by reduced fair value losses, impairment provisions, and foreign exchange gains from overseas operations Financial Performance Key Data | Metric | Six Months Ended December 31, 2020 (HK$ thousand) | Six Months Ended December 31, 2019 (HK$ thousand) | | :--- | :--- | :--- | | Turnover | 34,151 | 39,363 | | Gross Profit | 9,408 | 10,128 | | Loss for the Period | 12,913 | 22,833 | | Basic and Diluted Loss Per Share (HK cents) | 0.67 | 1.15 | - The reduction in loss for the period was primarily due to decreased fair value losses on investment properties, lower impairment provisions for loans and receivables, and reduced losses from fair value changes of biological assets less costs to sell[98] - Exchange gains on translation of overseas operations amounted to approximately HK$26,762,000 (2019: loss of approximately HK$5,861,000)[101] - Administrative expenses from operations decreased to approximately HK$20,457,000 (2019: approximately HK$21,829,000)[100] Liquidity and Financial Resources This section outlines the Group's liquidity and financial resources, noting increased total assets and net assets, significantly higher cash and bank balances, and a stable gearing ratio as of December 31, 2020, with the Board confident in sufficient working capital Liquidity and Financial Resources Key Data | Metric | December 31, 2020 (HK$ thousand) | June 30, 2020 (HK$ thousand) | | :--- | :--- | :--- | | Total Assets | 794,613 | 762,398 | | Cash and Bank Balances | 7,851 | 2,951 | | Total Borrowings | 32,221 | 31,179 | | Gearing Ratio (%) | 5.4% | 5.4% | | Net Assets | 591,581 | 577,732 | - The Company's Directors believe the Group has sufficient working capital to fund its operations and the ability to meet its financial obligations as they fall due in the foreseeable future[102] Capital Commitments and Fundraising This section confirms the Group had no significant capital commitments or fundraising activities during the reporting period Capital Commitments - As of December 31, 2020, there were no significant capital commitments[102] Fundraising and Capital Expenditure - For the six months ended December 31, 2020, the Group had no fundraising activities[102] Share Capital and Major Acquisitions/Disposals This section confirms the company's total issued share capital remained unchanged and no significant acquisitions or disposals of subsidiaries or associates occurred during the reporting period Share Capital - As of December 31, 2020, the Company's total issued share capital comprised 2,036,538,114 ordinary shares of HK$0.02 each[103] Major Acquisitions and Disposals - For the six months ended December 31, 2020, the Company did not undertake any major acquisitions or disposals of its subsidiaries or associates[104] Employment and Remuneration Policy This section details the Group's employee count and remuneration policy, emphasizing performance-linked compensation, bonuses, and share option schemes for incentives - As of December 31, 2020, the Group employed 62 employees (June 30, 2020: 46 employees)[105] - The Group implements remuneration policies, bonus schemes, and share option plans to ensure employee compensation is performance-based[105] Pledge of Assets and Risks This section discloses the Group's asset pledges, specifically parking spaces as collateral for bank loans, and discusses foreign exchange fluctuation risks and contingent liabilities Pledge of the Group's Assets - Parking spaces with a total carrying amount of HK$190,000,000 have been pledged to banks as collateral for bank loans granted to the Company[106] - An assignment of parking space rental income in favor of the bank has been executed[106] Foreign Exchange Fluctuation Risk - The Group conducts most of its business in GBP, EUR, RMB, USD, NPR, and HKD, exposing it to transactional currency risk[107] - The Group has minimal foreign currency risk as most business transactions are denominated in the respective functional currencies of the relevant group entities[107] - The Group does not have a foreign currency hedging policy but closely monitors its foreign currency risk and considers hedging instruments when appropriate[107] Contingent Liabilities - As of December 31, 2020, the Company's Directors were not aware of any significant contingent liabilities[108] Directors' and Major Shareholders' Interests This section details the interests of the company's directors, chief executive, their associates, and major shareholders (non-directors or chief executive) in the company's shares, underlying shares, and debentures as of December 31, 2020 Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures Directors' and Chief Executive's Long Positions in Shares and Underlying Shares (December 31, 2020) | Director Name | Share Interest (shares) | Interest from Equity Derivatives (shares) | Total Interest (shares) | % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Yeung Chi Hang | 511,236,000 | 16,942,817 | 528,178,817 | 25.94% | | Mr. Chung Siu Wa | — | 16,942,817 | 16,942,817 | 0.83% | | Mr. Wong Po Keung | — | 16,942,817 | 16,942,817 | 0.83% | | Mr. Chik To Bun | — | 16,942,817 | 16,942,817 | 0.83% | | Mr. Leung Kwong Choi | — | 1,500,000 | 1,500,000 | 0.07% | | Mr. Wong Tze King | — | 1,000,000 | 1,000,000 | 0.05% | | Mr. Wong Kwai Sang | — | 1,000,000 | 1,000,000 | 0.05% | | Mr. Heung Chi Hang | — | 1,000,000 | 1,000,000 | 0.05% | Major Shareholders' Interests in Shares, Underlying Shares and Debentures Major Shareholders' Long Positions in Shares and Underlying Shares (December 31, 2020) | Shareholder Name | Share Interest (shares) | Interest from Equity Derivatives (shares) | Total Interest (shares) | % of Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Mr. Chu Ying Man | 135,000,000 | — | 135,000,000 | 6.63% | Share Option Scheme This section provides an update on the 2015 Share Option Scheme, including the refreshed scheme mandate limit, noting no options were granted, exercised, cancelled, or lapsed for the six months ended December 31, 2020, but a significant number remain unexercised - The Annual General Meeting on December 11, 2020, approved updating the scheme mandate limit under the 2015 Share Option Scheme, allowing subscription for up to 203,653,811 shares, representing 10% of the issued shares[117] - For the six months ended December 31, 2020, no share options were granted, exercised, cancelled, or lapsed[119] - As of December 31, 2020, unexercised share options to subscribe for a total of 105,114,085 shares of the Company represented 5.16% of the Company's issued shares as of the report date[119] Purchase, Sale or Redemption of the Company's Listed Securities This section confirms that neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - For the six months ended December 31, 2020, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange[120] Corporate Governance This section outlines the company's corporate governance compliance, including adherence to the Corporate Governance Code (except for the combined Chairman and CEO roles), directors' securities transaction compliance, and the Audit Committee's composition and responsibilities Corporate Governance - The Company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules for the six months ended December 31, 2020[121] - The roles of Chairman and Chief Executive Officer are held by the same individual (Mr. Yeung Chi Hang), an arrangement the Board believes provides strong and consistent leadership for the Group[121] Directors' Securities Transactions - All Directors of the Company confirmed compliance with the standards set out in the Model Code for securities transactions by directors of listed issuers for the six months ended December 31, 2020[122] Audit Committee - The Audit Committee comprises three independent non-executive Directors: Mr. Wong Tze King (Chairman), Mr. Wong Kwai Sang, and Mr. Heung Chi Hang[123] - The Audit Committee's responsibilities include reviewing and monitoring the Group's financial reporting process, internal controls, and risk management systems[123]