Financial Performance - The company reported a total asset value of 446,482 thousand HKD for the year ending December 31, 2023, an increase of 59% from 281,024 thousand HKD in the previous year[11]. - The net current asset value increased to 174,331 thousand HKD, up from 124,116 thousand HKD, reflecting a growth of 40%[11]. - The company experienced a comprehensive loss of 17,168 thousand HKD for the year, a significant improvement compared to a loss of 210,859 thousand HKD in the previous year[22]. - The basic and diluted loss per share improved to 2.1 HKD cents from 63.0 HKD cents year-over-year[22]. - Total revenue for the twelve months ending December 31, 2023, was HKD 632,874,000, compared to HKD 709,306,000 for the previous year, reflecting a decrease of approximately 10.8%[44]. - The gross profit for the same period was HKD 35,721,000, down from HKD 42,506,000 year-over-year, indicating a decline of about 16.5%[44]. - The company recorded a net loss of approximately HKD 11,309,000 for the twelve months ending December 31, 2023, with net assets of about HKD 123,186,000[31]. - The operating loss for the twelve months was HKD 11,346,000, a significant improvement compared to HKD 129,667,000 in the previous year[44]. - The group reported a loss attributable to shareholders of approximately HKD 8.8 million, a significant reduction of about HKD 188.7 million or 95.6% compared to the previous year[156]. Asset and Liability Management - Non-current liabilities decreased significantly to 96,929 thousand HKD from 207,399 thousand HKD, indicating improved financial stability[12]. - The company reported cash and cash equivalents of 106,225 thousand HKD, an increase from 76,117 thousand HKD in the previous year, representing a growth of 39%[11]. - The total liabilities of the company slightly increased to HKD 369,080,000 in 2023 from HKD 364,307,000 in 2022[97]. - The outstanding principal of convertible bonds as of December 31, 2023, was HKD 93 million, with a maximum issuance of 46,500,000 shares upon conversion[69]. - The company recorded a significant decrease in interest expenses on convertible bonds, from HKD 46,552,000 in 2022 to HKD 30,461,000 in 2023[87]. - The company’s interest expenses on bank and other borrowings decreased significantly from HKD 2,511,000 in 2022 to HKD 172,000 in 2023[87]. Business Development and Strategy - The company acquired Green Credit Technology (Shenzhen) Co., Ltd., enhancing its blockchain technology capabilities and driving business growth[14]. - The company is focused on carbon credit asset trading and carbon neutrality-related business, positioning itself in a growing market[7]. - The company plans to continue developing existing carbon projects and seek new carbon projects to ensure a steady supply of carbon credit assets[32]. - The group aims to reduce China's CO2 emissions by 2% through its carbon-negative business, targeting a direct reduction contribution of 100 million tons from afforestation and another 100 million tons from commercial carbon capture, utilization, and storage projects[149]. - The group plans to collaborate with TUS Holdings and its subsidiaries to develop "zero-carbon" and "low-carbon" industrial parks, leveraging its dual-carbon digital control platform[162]. - The group is actively expanding its carbon asset development, operation, and management business, focusing on carbon credit asset development and management, carbon consulting, and carbon neutrality planning[157]. Employee and Operational Insights - As of December 31, 2023, the group had approximately 302 employees, with total employee costs amounting to HKD 88.4 million[58]. - Total employee benefits expenses (excluding directors and highest executive remuneration) amounted to HKD 94,865,000, a slight decrease from HKD 96,561,000 in the previous year[88]. - Administrative and selling expenses decreased to HKD 64,688,000 from HKD 86,014,000, showing a reduction of about 24.8%[44]. - The group has established a professional team and organizational structure for its carbon neutrality business, including the Industrial Carbon Negative Department and the Natural Carbon Negative Department[149]. Market and Revenue Trends - The global carbon neutrality business segment generated revenue of approximately HKD 152.6 million during the period, down from approximately HKD 209.2 million in the previous year, mainly due to decreased sales of carbon credit assets in Singapore[125]. - The ecological governance segment reported revenue of approximately HKD 480.3 million, a slight decrease of about HKD 19.8 million or 4% compared to the previous year[183]. - The group recorded a gross profit of approximately HKD 35.7 million for the year, a decrease of about HKD 6.8 million or 16.0% compared to the previous year[155]. Future Outlook and Plans - The financial year-end date has been changed from December 31 to June 30, with the next audited financial statements covering an 18-month period from January 1, 2023, to June 30, 2024[61]. - The company aims to expand its emerging carbon neutrality business segment, focusing on carbon credit asset development, management, investment, and carbon consulting, in line with national commitments to achieve carbon neutrality by 2060[141]. - The group has 11 major ongoing projects as of December 31, 2023, including two construction and maintenance projects and several civil engineering projects[152]. - The group launched the "Green Finance Open Platform" in collaboration with partners to reduce the barriers for users in accessing green financial tools[148]. Shareholder and Capital Management - The group issued and allocated 40,000,000 new shares on May 5, 2023, as part of the conversion of convertible bonds amounting to HKD 160,000,000[178]. - On April 26, 2023, the company issued and allotted 80,000,000 new shares at a conversion price of HKD 2.00 per share, following the partial conversion of convertible bonds with a principal amount of HKD 160,000,000[196]. - On October 11, 2023, the company approved a resolution to increase its authorized share capital from HKD 5,000,000 to HKD 100,000,000 by creating an additional 9,500,000,000 shares[199]. - On October 27, 2023, a total of 89,300,000 placement shares were successfully issued and allotted to no less than six independent third-party subscribers, with no subscribers becoming major shareholders of the company[200].
中国碳中和(01372) - 2023 - 中期业绩