ChatDOC/OCRFlux-bench-single huggingface dataset:
# 55. Balance sheet and statement of changes in equity (continued)

# (b) Statement of changes in equity

Reserves
Share capital	Reserve for
fair value
changes/
Reserve for fair
value changes of
available-for-sale
securities	Retained
earnings	Total equity
HK$’m	HK$’m	HK$’m	HK$’m
At 1 January 2017	52,864	1,276	7,201	61,341
Profit for the year	–	–	15,515	15,515
Other comprehensive income:
Available-for-sale securities	–	354	–	354
Total comprehensive income	–	354	15,515	15,869
Dividends	–	–	(13,375)	(13,375)
At 31 December 2017	52,864	1,630	9,341	63,835
At 1 January 2018,
as previously reported	52,864	1,630	9,341	63,835
Effect of adoption of HKFRS 9	–	(2,730)	2,730	–
At 1 January 2018, after adoption
of HKFRS 9	52,864	(1,100)	12,071	63,835
Profit for the year	–	–	16,035	16,035
Other comprehensive income:
Equity instruments at fair value
through other comprehensive
income	–	(763)	–	(763)
Total comprehensive income	–	(763)	16,035	15,272
Dividends	–	–	(13,776)	(13,776)
At 31 December 2018	52,864	(1,863)	14,330	65,331
# 56. Principal subsidiaries

The particulars of all direct and indirect subsidiaries of the Company are set out in “Appendix – Subsidiaries of the Company”. The following is a list of principal subsidiaries as at 31 December 2018:

Name	Place of
incorporation
and operation	Issued share capital	Interest held	Principal activities
Bank of China (Hong Kong) Limited	Hong Kong	HK$43,042,840,858	*100%	Banking business
BOC Group Life Assurance Company Limited	Hong Kong	HK$3,538,000,000	*51%	Life insurance
business
BOC Credit Card (International) Limited	Hong Kong	HK$480,000,000	100%	Credit card services
Bank of China (Malaysia) Berhad	Malaysia	RM760,518,480	100%	Banking business
Bank of China (Thai) Public Company Limited	Thailand	Baht10,000,000,000	100%	Banking business
Po Sang Securities and Futures Limited	Hong Kong	HK$335,000,000	100%	Securities and futures
brokerage

\* Shares held directly by the Company

The particulars of a subsidiary with significant non-controlling interests are as follows:

# BOC Group Life Assurance Company Limited

2018	2017
Proportion of ownership interests and voting rights held by
non-controlling interests	49%	49%

2018	2017
HK$’m	HK$’m
Profit attributable to non-controlling interests	420	586
Accumulated non-controlling interests	4,083	4,334
Summarised financial information:
– total assets	132,417	130,597
– total liabilities	124,085	121,752
– profit for the year	857	1,196
– total comprehensive income for the year	(182)	1,492
2017
二零一七年	2016
二零一六年
HK$’000
千港元	HK$’000
千港元
CASH FLOWS FROM OPERATING 經營業務的現金流量
ACTIVITIES
Loss before tax 除稅前虧損	(193,533)	(327,092)
Adjustments for: 就下列各項作出調整：
Finance costs 融資成本	165,563	119,356
Bank interest income 銀行利息收入	(13)	(6)
Amortisation of film products 電影產品攤銷	1,210	10,745
Amortisation of land lease prepayments 預付土地租賃攤銷	13,757	13,703
Depreciation of property, plant and 物業、廠房及設備折舊
equipment	58,957	59,578
Expenses recognised in respect of 就權益結付股份付款
equity-settled share-based payments 確認的開支	31,422	—
Loss on fair value changes of 可換股債券公允值變動虧損
convertible bonds	4,902	22,200
Net losses on early redemption of 提早贖回可換股債券的
convertible bonds 虧損淨額	—	193
Waiver of interest of convertible bond 豁免可換股債券利息	—	(12,513)
Gain on fair value changes of investment 投資物業公允值變動的
properties 收益	(1,080)	(1,500)
Impairment losses of interest receivables 應收利息的減值虧損	5,239	—
Impairment losses of investments in 電影╱戲劇製作的減值虧損
films/drama production	5,775	—
Loss on disposal of an intangible asset 出售一項無形資產的虧損	79	—
Loss on disposal of an associate 出售一間聯營公司的虧損	110	—
Loss on capitalisation of loan interest 資本化應付貸款利息的虧損
payables	1,570	—
Loss on capitalisation of other payables 資本化其他應付款項的虧損	5,431	—
Impairment loss on available-for-sales 可供出售投資的減值虧損
investment	5,250	—
Impairment losses on trade and other 貿易及其他應收款項的
receivables 減值虧損	13	—
Share of loss of an associate 分佔一間聯營公司虧損	3	143
Share of loss of a joint venture 分佔一間合營企業虧損	620	904
105,275	(114,289)
Operating cash flows before movements in 營運資金變動前的經營
working capital 現金流量
Increase in inventories 存貨增加	(567)	(34)
Increase in film products and film 電影產品及在製電影產品
production in progress 增加	—	(3,630)
Increase in trade receivables 應收貿易款項增加	(114,468)	(3,253)
Increase in prepayments, deposits and 預付款項、按金及其他應收
other receivables 款項增加	(30,144)	(6,462)
Increase in trade payables 應付貿易款項增加	22,929	667
(Decrease)/increase in other payables and 其他應付款項及應計費用
accruals （減少）╱增加	(423)	18,764
NET CASH USED IN OPERATING 經營業務所用現金淨額
ACTIVITIES	(17,398)	(108,237)
2017
二零一七年	2016
二零一六年
HK$’000
千港元	HK$’000
千港元
CASH FLOWS FROM INVESTING 投資活動的現金流量
ACTIVITIES
Increase in films/dramas production 電影╱戲劇製作增加	(300)	(6,461)
Interest received 利息收入	13	6
Payments for property, plant and equipment 物業、廠房及設備付款	(102,274)	(88,377)
Payments for land lease prepayments 支付土地租賃預付款	—	(11,419)
Proceeds from disposal of an intangible 出售一項無形資產的所得款項
asset	1,000	—
Purchases of available-for-sale investments 購買可供出售投資	—	(125)
NET CASH USED IN INVESTING 投資活動所用淨現金
ACTIVITIES	(101,561)	(106,376)
CASH FLOWS FROM FINANCING 融資活動的現金流量
ACTIVITIES
Interest paid 已付利息	(155,199)	(83,051)
Proceeds from shareholders loans 股東貸款所得款項	98,593	286,234
Repayments of shareholders loans 償還股東貸款	(61,876)	(13,788)
Proceeds from short-term borrowing 短期借貸所得款項	118,733	61,494
Repayments of short-term borrowing 償還短期借貸	(77,661)	(265,996)
Repayments of loan from a related company 償還一間關聯公司的貸款	—	(12,400)
Proceeds from issuance of bonds 發行債券所得款項	412,457	242,678
Transaction costs of issuance of bonds 發行債券的交易成本	(87,557)	(18,045)
Repayments of bonds 償還債券	(73,819)	(3,000)
Repayments of finance leases obligation 償還財務租賃承擔	(2,573)	(98)
Proceeds from issue of share 發行股份的所得款項	3,851	—
NET CASH GENERATED BY FINANCING 融資活動所得現金淨額
ACTIVITIES	174,949	194,028
NET INCREASE/(DECREASE) IN CASH 現金及現金等值項目
AND CASH EQUIVALENTS 增加╱（減少）淨額	55,990	(20,585)
CASH AND CASH EQUIVALENTS AT 年初現金及現金等值項目
THE BEGINNING OF YEAR	(4,218)	4,360
EFFECTS OF EXCHANGE RATE 匯率變動對所持外幣現金
CHANGES ON THE BALANCE OF 結餘的影響
CASH HELD IN FOREIGN
CURRENCIES	(40,244)	12,007
CASH AND CASH EQUIVALENTS AT 年末現金及現金等值項目
THE END OF YEAR	11,528	(4,218)
ANALYSIS OF THE BALANCES OF 現金及現金等值項目結餘分析
CASH AND CASH EQUIVALENTS
Cash and bank balances 現金及銀行結餘	19,944	4,283
Bank overdrafts 銀行透支	(8,416)	(8,501)
11,528	(4,218)
# 7. LOSS/PROFIT FROM OPERATIONS

For the three months ended
30 September	For the six months ended
30 September
2021	2020	2021	2020
HK$’000	HK$’000	HK$’000	HK$’000
(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
The Gr’oups (loss)/profit
from operations is arrived
at after charging/(crediting):
Cost of sales	6,205	2,516	8,651	208,107
Depreciation charge
– property, plant and
equipment	57	66	111	171
– right-of-use assets	–	1,359	–	2,704
Net foreign exchange
(loss)/gain	1	18	1	19
Staff costs (including
director’s remuneration)	5,940	6,415	12,398	11,395

# 8. FINANCE COSTS

For the three months ended
30 September	For the six months ended
30 September
2021	2020	2021	2020
HK$’000	HK$’000	HK$’000	HK$’000
(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Interest on other borrowing	10,280	14,625	26,496	28,748
Interest on lease liabilities	–	319	–	319
Total	10,280	14,944	26,496	29,067
# 9. INCOME TAX EXPENSE

For the three months ended
30 September	For the six months ended
30 September
2021	2020	2021	2020
HK$’000	HK$’000	HK$’000	HK$’000
(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Current tax charged:
PRC Enterprise Income Tax	13	67	1,532	5,659
Total tax charged	13	67	1,532	5,659

Under the Law of the PRC on Enterprise Income Tax (the “EIT Law”) and Implementation Regulation of the EIT Law, the tax rate of the PRC subsidiaries is 25% from 1 January 2008 onwards.

No provision for Hong Kong Profits Tax has been made as the Group has no assessable profits in Hong Kong or the estimated assessable profit was wholly absorbed by tax losses brought forward for the six months ended 30 September 2021 (2020: Nil).

The Group had no significant unprovided deferred tax assets and liabilities at 30 September 2021 (2020: Nil).

# 10. LOSS PER SHARE

# Basic loss per share

The calculation of the basic loss per share is based on the loss attributable to owners of the Company for the three months ended 30 September 2021 of approximately HK\$11,253,000 (2020: loss attributable to owners of the Company of approximately HK\$27,994,000) and loss attributable to owners of the Company for the six months ended 30 September 2021 of approximately HK\$26,499,000 (2020: loss attributable to owners of the Company of approximately HK\$27,524,000) and the weighted average of 3,640,627,457 shares in issue during the three months ended 30 September 2021 (2020: 3,564,945,946 shares) and the weighted average of 3,640,627,457 shares in issue during the six months ended 30 September 2021 (2020: 3,564,945,946 shares).

# Diluted loss per share

No diluted loss per share were presented as there were no potential ordinary shares in issue for the three months and six months ended 30 September 2021.
– We require significant capital investments and a high level of working capital to sustain our operations and overall growth

– We manufacture our products in a single location, and any material disruption of our operations could adversely affect our business

– Our expansion plans may not be successful

– Our production capacity might not be able to meet with growing market demand or changing market conditions

– We manufacture and sell only “high-end” steel flow control products

– We may not be able to develop new products or expand into new markets

– We may be subject to product liability claims

– We may be subject to liability in connection with industrial accidents at our production facilities

– Lack of business insurance coverage may incur substantial costs for our Group

– We are subject to foreign exchange exposure

– The interests of our Controlling Shareholders may differ from those of our other Shareholders

# Risks relating to the industry

– Our business depends very much on the continuous casting method in the steel manufacturing industry. Industry-wide adoption of other existing or new technologies that do not require steel flow control products in the future might seriously affect our business

– We cannot assure that we will be able to renew all necessary licences, certificates, approvals and permits for our production. Changes in licensing requirements applicable to our industry may adversely affect us

– The PRC Government may adopt measures to slow down growth in the steel manufacturing industry and other steel consuming industries, thereby adversely affecting the demand for our products

– Our industry is subject to global economic and market conditions

– We operate in a highly competitive industry

# Risks relating to conducting business in the PRC

– Political and economic policies of the PRC government and social conditions and legal developments of the PRC could affect our business
– The government control of currency conversion could affect our business operations

– Uncertainties regarding interpretation and enforcement of the PRC laws and regulations may impose adverse impact on our business, operations and profitability

– The implementation of the new labour contract law and increase in labour costs in the PRC may adversely affect our business and financial conditions

– Under the Enterprise Income Tax Law (中華人民共和國企業所得稅法) and the related implementation regulations, which became effective on 1 January 2008, dividends from our subsidiary in the PRC may be subject to withholding tax or we may be subject to PRC tax on our worldwide income

– Dividends payable by us to our foreign investors and gain on the sale of our Shares may be subject to the PRC tax

– We cannot assure that we will continue to enjoy preferential tax treatments or financial incentives in the future

– PRC regulations on loans to and direct investment by offshore holding companies in PRC entities may delay or prevent us from using the proceeds of this offering to make loans or additional capital contributions to our PRC subsidiary

– We are a holding company and rely on dividend payments from our operating subsidiary

– Uncertainties on the PRC withholding tax rate on dividends payable by our subsidiary in the PRC

– PRC regulations relating to acquisitions of the PRC companies by foreign entities may limit our ability to acquire the PRC companies and adversely affect the implementation of our strategy as well as our business and prospects

– PRC regulations relating to the establishment of offshore special purpose companies by the PRC residents may subject our PRC resident shareholders or our PRC subsidiary to liability or penalties, limit our ability to inject capital into our PRC subsidiary, limit our PRC subsidiary’s ability to increase their registered capital or distribute profit to us, or may otherwise adversely affect us

– A shortage of electricity and water supply in the PRC would affect our production and affect our business and financial performance

# Risks relating to the Global Offering

– Shareholders’ interests in the share capital of our Company may be diluted in the future

– Lack of liquidity of our Shares and volatility of the market price may be resulted

– Fluctuation of RMB may affect value of our dividends (if any) and our financial condition

– Investors may experience difficulties in effecting service of legal process and enforcing judgments against our Company and our management

– We cannot guarantee the accuracy of facts and other statistics with respect to the global steel industry, the PRC economy, the PRC steel industry and the PRC steel flow control products industry in the continuous casting process contained in this prospectus

– Forward-looking statements contained in this prospectus are subject to risks and uncertainties

– We strongly caution you not to place any reliance on any information contained in press articles or media regarding us or the Global Offering
which can be taken as smoking-gun signals of DM scattering, can further increase an exper-iment’s constraining power. For DM–nucleon interactions, although the elastic scattering is the best channel, however, for light DM particles which can not deposit observable energies in detectors, one has to rely on the high energy part of ionization processes.

The energy and momentum transfers involved in sub-GeV DM scattering overlap typ-ical atomic scales, so studies of issues such as binding effects and electron/nuclear recoil mechanism, which play important roles in interpreting experimental data, require detailed many-body calculations. This case study of hydrogen, where both binding and recoil can be taken into account most simply, therefore provides useful qualitative understanding of what to be anticipated in sub-GeV DM scattering off practical detector materials such as germanium and xenon.

# ACKNOWLEDGMENTS

We acknowledge the support from the Ministry of Science and Technology of Republic of China under Grants No. 102-2112-M-002-013-MY3 (J.-W. C., C.-L. W., and C.-P. W.) and No. 103-2112-M-259-003 (H.-C. C. and C.-P. L.); the Center for Theoretical Sciences and Center of Advanced Study in Theoretical Sciences of National Taiwan University (J.-W. C., C.-L. W., and C.-P. W.); and the National Center for Theoretical Sciences. J.-W. C. was also supported in part by the Deutsche Forschungsgemeinschaft and National Natural Science Foundation of China (CRC 110).

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[11] M. Pospelov, A. Ritz, and M. B. Voloshin, Phys. Rev. D 78, 115012 (2008), arXiv:0807.3279[h .ep-ph]

[12] K. Rajagopal, M. S. Turner, and F. Wilczek, Nucl. Phys. B 358, 447 (1991).

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# OUTLOOK

Notwithstanding the rapid recovery in coal price in Guizhou province in late 2016, the fundamentals of coal demand have not changed significantly. As the coal demand shortage and overcapacity are still prominent, the Group believes that the government will continue adhering to the supply-side reform policy to resolve excess coal production capacity. The Group will continue adopting the existing business strategy through the expansion of existing shipping port, transport belts and coal beneficiation plant, and strengthening the effective coal quality management through coal washing and coal blending in order to meet different requirements of various customers and penetrate the surrounding coal market.

The status of coal as the primary energy in China is expected to remain unchanged for a considerable length of time in the future. Therefore the Company is cautiously positive about the coal industry in the longer term. The Company will also consider other potential business projects that can provide the Shareholders with promising returns and benefit the Group as a whole as and when suitable opportunities arise.

# APPRECIATION

On behalf of the Board, I would like to take this opportunity to express my appreciation to the staff and management team of the Group for their hard work and dedication during the year. I would also like to express my sincere gratitude to the Shareholders for their continuous support.

HAN Weibing

Chairman and Chief Executive Officer

Hong Kong, 31 March 2017
# BUSINESS REVIEW

In early 2016, the Group re-formulated its business strategy to enhance the Group’s overall competitiveness in the downturn of the coal industry by adopting the following measures.

First of all, in addition to the existing coal beneficiation plant, the Group managed to complete the construction of another simple coal washing facility within three months as well as putting two high sieving systems into operation. Coal washing and efficient coal blending could be performed with the Group’s own coal beneficiation plant, coal washing facility and high sieving systems. To meet the demands of power plants and other customers with lower coal specification, the Group blended raw coal, lignite (the by-product of coal washing), middling coal and coal residue stone. The sales of blended coal not only met customers’ specific requirements but also generated additional revenue for the Group and reduced the treatment cost of lignite and coal residue stone. Therefore the Group was in a better position to segment the coal market by providing customised coal products of different specifications and stable quality to various customers.

Secondly, the Group improved the logistics and transportation so that its coal products could be transported to the downstream chemical plants, cement plants and other customers waterway at a lower cost and a shorter time through the Group’s own shipping port.

Thirdly, the Group adhered to establish a strategic customer-oriented management system, which not only provided customers with a variety of customised specifications of coal products but also enhanced the quality of customer service. As a result, longer term customer relationship has been built up.

Fourthly, the Group adopted optimised mining plan, took advantage of water transport, stringent cost control and other means to reduce production and logistics costs. The Group also closely adhered to the stringent cash flow management by securing alternative financing for mine tunnel construction. Furthermore, the Group managed to negotiate “payment before delivery” term for non-power plant customers to minimise potential credit risk and reduce working capital cycle.

As a result of the effective implementation of the above strategies and the surge of coal price in the fourth quarter of 2016, the Group’s loss attributable to owners of the parent from continuing operations substantially declined from approximately CNY488.4 million in 2015 to approximately CNY205.7 million in 2016.
# 13. INVESTMENT IN ASSOCIATED COMPANY

The Group	The Company
2016	2015	2016	2015
$’000	$’000	$’000	$’000
Investment in associated company	4,313	3,859	2,895	2,895

The Group’s investment in an associated company (Note 29) is not material to the Group. There are no contingent liabilities relating to the Group’s interest in the associated company.

In 2015, the Group’s equity accounting/gains on associated companies recognised in the income statement included a gain of \$47,570,000 arising from the partial disposal and reclassification of an associated company to available-for-sale financial assets.

# 14. FINANCIAL ASSETS (FVOCI) / AVAILABLE-FOR-SALE FINANCIAL ASSETS

As disclosed in Note 2(a), the Group has early adopted FRS 109 effective 1 January 2016 and elected, at initial adoption, to present in other comprehensive income changes in the fair value of all its equity investments previously classified as available-for-sale financial assets. In accordance with the transitional provisions in FRS 109, comparative figures have not been restated.

# (a) For 2016, equity investments at fair value through other comprehensive income (FVOCI) mainly comprise the following:

Group
2016
$’000
Shares of a financial institution	1,467,127
Shares of two real estate companies	460,203

These investments comprise mainly quoted investments and were previously classified as available-for-sale financial assets in 2015.

# (b) During the financial year, the Group elected to receive \$33,246,000 (2015: \$22,398,000) of dividend income as non-cash financial assets (FVOCI) / available-for-sale financial assets in lieu of cash dividends.

(c) Certain financial assets (FVOCI) / available-for-sale financial assets valued at \$169,307,000 (2015: \$175,441,000) are pledged as security for bank credit facilities (Note 20).

(d) There are no material investments held by the Company in 2016 and 2015.