Financial Performance - For the six months ending December 31, 2023, the company reported revenue of HKD 40,558,000, a decrease of 5.1% compared to HKD 42,787,000 in the same period of 2022[13]. - The gross profit for the same period was HKD 9,203,000, representing a significant increase of 31.5% from HKD 6,991,000 in the prior year[13]. - The company incurred a loss attributable to owners of the company of HKD 46,091,000, compared to a loss of HKD 2,849,000 in the previous year, indicating a substantial decline in performance[14]. - The total comprehensive loss for the period amounted to HKD 40,301,000, compared to HKD 13,367,000 in the same period of 2022[14]. - The total segment loss for the six months ended December 31, 2023, was HKD (41,003,000), compared to a loss of HKD (1,091,000) for the same period in 2022, indicating a significant increase in losses[38]. - Loss for the six months ended December 31, 2023, increased to approximately HKD 45,292,000, compared to HKD 2,237,000 in the same period of 2022[87]. - Basic and diluted loss per share was HKD 0.0226 for the six months ended December 31, 2023, compared to HKD 0.0014 in 2022[88]. Cash Flow and Liquidity - Operating cash outflow for the period was approximately HKD 12,672,000, highlighting ongoing liquidity challenges[10]. - The net cash used in operating activities for the six months ended December 31, 2023, was HKD (12,672,000), compared to HKD (2,170,000) for the same period in 2022, indicating a significant increase in cash outflow[20]. - The company is facing significant uncertainties regarding its ability to continue as a going concern due to the reported losses and cash outflows[10]. - The board believes that the preparation of financial statements on a going concern basis is appropriate, contingent on the commitment of an executive director to provide sufficient funds to meet the group's financial obligations[25]. - The group plans to implement cost-saving measures to improve liquidity and cash flow, ensuring sufficient cash flow for operations[25]. Assets and Liabilities - As of December 31, 2023, total assets amounted to HKD 519,273,000, a decrease from HKD 556,785,000 as of June 30, 2023, representing a decline of approximately 6.7%[16]. - Current liabilities increased to HKD 115,850,000 from HKD 108,695,000, reflecting an increase of about 6.5%[17]. - The total equity attributable to owners decreased to HKD 421,554,000 from HKD 462,980,000, a decline of approximately 8.9%[19]. - Cash and cash equivalents decreased to HKD 2,273,000 from HKD 5,531,000, a reduction of about 58.9%[16]. - Total liabilities related to assets classified as held for sale increased to HKD 10,410,000 from HKD 10,195,000, an increase of about 2.1%[17]. - The company's non-current liabilities decreased to HKD 117,373,000 from HKD 123,482,000, a decrease of approximately 5%[17]. Revenue Breakdown - Revenue from the sale of recovered metals was HKD 5,659,000, while revenue from the sale of automotive and related parts was HKD 30,418,000 for the six months ended December 31, 2023[36]. - Revenue from external customers in Hong Kong was HKD 33,770,000 for the six months ended December 31, 2023, while revenue from Macau and Taiwan was HKD 47,000 and HKD 101,000, respectively[39]. - Automotive and automotive parts business revenue for the six months ended December 31, 2023, was approximately HKD 30,418,000, a decrease from HKD 31,136,000 in 2022[73]. - Revenue from hotel and related businesses was approximately HKD 2,396,000 for the six months ended December 31, 2023, significantly up from HKD 577,000 in 2022[81]. - Revenue from the metal recycling business for the six months ended December 31, 2023, is approximately HKD 5,659,000, compared to HKD 8,667,000 for the same period in 2022, indicating a significant decline[71]. Fair Value Measurements - The company reported a fair value loss on investment properties of HKD 11,400,000, compared to a loss of HKD 787,000 in the same period last year[13]. - Fair value measurements as of December 31, 2023, include biological assets valued at HKD 203,821,000 and investment properties in Hong Kong valued at HKD 180,500,000[30]. - The fair value of biological assets decreased from HKD 230,481,000 to HKD 203,821,000 during the reporting period[33]. - The fair value of industrial land and buildings in Dongguan is estimated at HKD 67,336,000 as of December 31, 2023, compared to HKD 66,119,000 as of June 30, 2023[69]. - The fair value of parking spaces in Kennedy Town is approximately HKD 180,500,000 as of December 31, 2023, down from HKD 191,900,000 as of June 30, 2023, reflecting a decline in the overall real estate market in Hong Kong[70]. Corporate Governance and Compliance - The financial statements are unaudited but have been reviewed by the audit committee and auditors, ensuring compliance with relevant accounting standards[4]. - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO, which is held by the same individual[108]. - Following the resignation of independent non-executive director Wang Zijing, the company did not comply with certain listing rules regarding the number of independent directors until the appointment of Li Zhihao on December 5, 2023[109]. - The company aims to appoint suitable candidates to meet gender diversity requirements on the board by December 31, 2024[109]. - The company has established an audit committee in accordance with Listing Rule 3.21 to review and monitor the financial reporting process, internal controls, and risk management systems[111].
中国环境资源(01130) - 2024 - 中期财报