| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
| Dec. 31, 2022 |
| Basis of preparation | 2.1
Basis of preparation The
consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”)
as issued by the International Accounting Standards Board (“IASB”), which collective term includes all applicable individual
International Financial Reporting Standards, International Accounting Standards and Interpretations issued by the IASB. The
significant accounting policies that have been used in the preparation of these consolidated financial statements are summarized below.
These policies have been consistently applied to all the years presented unless otherwise stated. The adoption of new or amended IFRSs
and the impacts on the Company’s financial statements, if any, are disclosed in Note 3. The
COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further
business slowdowns or shutdowns, depress demand for the Company’s business, and adversely impact its results of operations. During
the years ended December 31, 2022 and 2021, the Company faced increasing uncertainties around its estimates of revenue collectability,
accounts receivable credit losses, impairment of inventory and long-lived assets. The Company expects uncertainties around its key accounting
estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Its estimates may
change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial
statements. Judgments made by management in the application of IFRSs that have significant effect on the financial statements and major
sources of estimation uncertainty are discussed in Note 4. However, Since January 2023, China has dropped all COVID restrictions. The
consolidated financial statements have been prepared on the historical cost basis, except for derivative financial instruments that have
been measured at fair value. The
preparation of financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect
the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions
are based on historical experience and various other factors believed to be reasonable under the circumstances, the results of which
form the basis of making the judgements about carrying amounts of assets and liabilities not readily apparent from other sources. Actual
results may differ from these estimates. The
estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period
in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods. Judgments
made by management in the application of IFRSs that have significant effect on the financial statements and major sources of estimation
uncertainty are discussed in Note 4. The
consolidated financial statements were approved and authorized for issue by the Board of Directors on April 28, 2023. |
| Basis of consolidation | 2.2
Basis of consolidation (i)
100% owned Subsidiaries The
Success Winner Acquisition on November 22, 2009 has been accounted for as a reverse recapitalization. The acquisition agreement resulted
in the former owner of Success Winner obtaining effective operating and financial control of the combined entity. Prior to the acquisition,
Antelope Enterprise had no operating business. Accordingly, the acquisition does not constitute a business combination for accounting
purposes and is accounted for as a capital transaction. That is, the transaction is in substance a reverse recapitalization, equivalent
to the issuance of equity interests by Success Winner for the net monetary assets of Antelope Enterprise accompanied by a recapitalization.
The consolidated financial statements are a continuation of the financial statements of Success Winner. The assets and liabilities of
Antelope Enterprise are recognized at their carrying amounts at the date of acquisition with a corresponding credit to the consolidated
equity and no goodwill or other intangible assets are recognized. The equity of the combined entity recognized at the date of acquisition
represents the equity balances of Success Winner together with the deemed proceeds from the reverse recapitalization determined as described
above. However, the equity structure presented in the consolidated financial statements (number and values of equity instruments issued)
reflects the equity structure of the legal parent, Antelope Enterprise. Costs directly attributable to the transaction have been debited
to equity to the extent of net monetary assets received. Success
Winner and its subsidiaries as a group is regarded as a continuing entity resulting from the Hengda Reorganization since the management
of all the entities which took part in the Reorganization were controlled by the same director and shareholder before and immediately
after the Reorganization. Immediately after the Reorganization, there was a continuation of the control over the entities’ financial
and operating policy decision and risk and benefits to the ultimate shareholders that existed prior to the Reorganization. Accordingly,
the reorganization has been accounted for as a reorganization under common control and the financial statements of Success Winner, Stand
Best and Hengda have been combined on the basis of merger accounting for all periods presented. The
assets and liabilities of the combining entities or businesses are combined using the existing book values from the controlling party’s
perspective. No amount is recognized as consideration for goodwill or excess of the acquirer’s interest in the net fair values
of the acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of the common control combination.
The consolidated statement of comprehensive income includes the results of each of the combining entities or businesses from the earliest
date presented or the date of their incorporation/establishment or since the date when the combining entities or businesses first came
under common control, where this is a shorter period, regardless of the date of the common control combination. The
Hengdali Acquisition on January 8, 2010 has been accounted for as a business combination using the acquisition method. Hengdali is a
subsidiary of the Company, and the Company has the power to govern the financial and operating policies which accompanies its shareholding
of 100% of the voting rights in Hengdali. Therefore, Hengdali as a subsidiary is fully consolidated from January 8, 2010, the date on
which control was transferred to the Company. The
accounting for the Hengdali Acquisition under the acquisition method, treats the consideration transferred for the acquisition of Hengdali
as the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Company. The consideration
transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related
costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in this business combination
are measured initially at their fair values at the acquisition date. The
excess of the consideration transferred over the fair value of the identifiable net assets acquired is recorded as goodwill. The
Company’s financial statements consolidate those of the Company and all of its subsidiaries as of December 31, 2022. Subsidiaries
are entities controlled by the Company. The Company controls an entity when it is exposed, or has rights, to variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. When assessing whether the
Company has power, only substantive rights (held by the Company and other parties) are considered. All subsidiaries have a reporting
date of December 31. An
investment in a subsidiary is consolidated into the consolidated financial statements form the date that control commences until the
date that control ceases. Inter-company transactions, balances and unrealized gains or losses on transactions between group companies
are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Company. (ii)
Non-controlling interests Antelope
Ruicheng owns 51% of Hainan Kylin, while non-controlling interest owns 49% of Hainan Kylin. Hainan Kylin 100% owns Hangzhou Kylin and
Anhui Kylin. Non-controlling interests in the financial results and equity of subsidiaries are shown separately in the Consolidated Statements
of Comprehensive Income (Loss), Consolidated Statements of Financial Position and Consolidated Statements of Changes in Equity respectively. |
| Foreign currency translation | 2.3
Foreign currency translation The
financial statements are presented in RMB (to the nearest thousand), being the currency that best reflects the economic substance of
the underlying events and circumstances relevant to the Company. The Company’s operations are conducted through the subsidiaries
in the People’s Republic of China (“PRC”). The functional currency of these subsidiaries in China is Renminbi (“RMB”).
The functional currency of Antelope Enterprise and Antelope HK is the United State dollars (US$). The functional currency of Vast Elite
is Hong Kong dollar. In
the individual financial statements of the consolidated entities, foreign currency transactions are translated into the functional currency
of the individual entity using the exchange rates prevailing at the dates of the transactions. At the reporting date, monetary assets
and liabilities denominated in foreign currencies are translated at the foreign exchange rates ruling at that date. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the reporting date retranslation of monetary assets and
liabilities are recognized in profit or loss. Non-monetary
items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the
fair value was determined and are reported as part of the fair value gain or loss. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated. In
the consolidated financial statements, all individual financial statements of foreign operations, originally presented in a currency
different from the Company’s presentation currency, have been converted into Renminbi. Assets and liabilities have been translated
into Renminbi at the closing rates at the reporting date. Income and expenses have been converted into Renminbi at the exchange rates
ruling at the transaction dates, or at the average rates over the reporting period provided that the exchange rates do not fluctuate
significantly. Any differences arising from this procedure have been recognized in other comprehensive income and accumulated separately
in the currency translation reserve in equity. When
a foreign operation is sold, such exchange differences are reclassified from equity to profit or loss as part of the gain or loss on
sale. The
translation of certain RMB amounts as of and for the year ended December 31, 2022 into US$ is included in these financial statements
solely for the convenience of readers and was made at the rate of RMB 6.90 to US$1.00, which was based on the noon buying rate on December
31, 2022 in the City of New York cable transfers of RMB as certified for customers purposes by the Federal Reserve Bank of New York.
Such translation should be construed as representation that RMB amounts could be converted, realized or settled into US$ at the rate
stated above or at any other rate. |
| Property, plant and equipment | 2.4
Property, plant and equipment Leasehold
land and buildings for own use When
a lease includes both land and building elements, the Company assesses the classification of each element as a finance or an operating
lease separately based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element
have been transferred to the Company, unless it is clear that both elements are operating leases in which case the entire lease is classified
as an operating lease. Specifically, the minimum lease payments (including any lump sum upfront payments) are allocated between the land
and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element
of the lease at the inception of the lease. To
the extent the allocation of the lease payments can be made reliably, interest in leasehold land that is accounted for as an operating
lease is presented as “land use rights” in the consolidated statements of financial position and is amortized over the lease
term on a straight-line basis. All
buildings are depreciated over their expected useful lives of 40 years Other
property, plant and equipment Property,
plant and equipment are stated in the consolidated statements of financial position at cost less any accumulated depreciation and any
accumulated impairment losses. Depreciation
is provided to write off the cost less their residual values over their estimated useful lives as follows, using the straight-line method: SCHEDULE OF DEPRECIATION USING STRAIGHT-LINE METHOD
Plant
and machinery 10
years
Motor
vehicles 10
years
Office
equipment 5
years The
assets’ residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis. Historical
cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s
carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is
derecognized. All other costs, such as repairs and maintenance, are charged to profit or loss during the financial period in which they
are incurred. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount. The
gain or loss arising on retirement or disposal is determined as the difference between the sales proceeds and the carrying amount of
the asset and is recognized in profit or loss. |
| Investment property | 2.5
Investment property Investment
properties are properties held to earn rentals or for capital appreciation. Investment
properties are initially measured at historical cost, including any directly attributable expenditure. Subsequent to initial recognition,
investment properties are measured at their historical cost less any accumulated depreciation and any accumulated impairment losses. Historical
cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s
carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is
derecognized. All other costs, such as repairs and maintenance, are charged to profit or loss during the financial period in which they
are incurred. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount. The
gain or loss arising on retirement or disposal is determined as the difference between the sales proceeds and the carrying amount of
the asset and is recognized in profit or loss. An
investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use or no future economic
benefits are expected from its disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between
the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the item is derecognized. |
| Land use rights | 2.6
Land use rights Upfront
payments made to acquire land held under an operating lease are stated at cost less accumulated amortization and any accumulated impairment
losses. Amortization is calculated on a straight line basis over the leasing period of 50 years |
| Goodwill | 2.7
Goodwill Goodwill
arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated
impairment losses, if any. For
the purposes of impairment testing, goodwill is allocated to each of the Company’s cash-generating units, or groups of cash-generating
units, that is expected to benefit from the synergies of the combination. A
cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently whenever there is indication
that the unit may be impaired. If some or all of the goodwill allocated to a cash-generating unit was acquired in a business combination
during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable
amount of the cash-generating unit is less than the carrying amount, the impairment loss is allocated first to reduce the carrying amount
of any goodwill allocated to the unit and then to the other assets of the unit on a pro – rata basis based on the carrying amount
of each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for
goodwill is not reversed in subsequent periods. On
disposal of the relevant cash generating unit, the attributable amount of goodwill is included in the determination of the profit or
loss on disposal. |
| Inventories | 2.8
Inventories Inventories
are carried at the lower of cost and net realizable value. Cost is determined using the weighted average basis, and in the case of work
in progress and finished goods, comprises direct materials, direct labor and an appropriate proportion of overhead. Net
realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and applicable
selling expenses. When
inventories are sold, the carrying amount of those inventories is recognized as an expense in the period in which the related revenue
is recognized. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an
expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories is recognized as a reduction
in the amount of inventories recognized as an expense in the period in which the reversal occurs. |
| Cash and cash equivalents | 2.9
Cash and cash equivalents Cash
and cash equivalents include cash at bank and in hand, demand deposits with banks and short term highly liquid investments with original
maturities of three months or less that are readily convertible into known amounts of cash and which are subject to an insignificant
risk of changes in value. For the purpose of the statement of cash flows presentation, cash and cash equivalents include bank overdrafts
which are repayable on demand and form an integral part of the Company’s cash management. |
| Financial instruments | 2.10
Financial instruments Financial
assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instrument. Financial
assets and financial liabilities are initially measured at fair value except for trade debtors arising from contracts with customers
which are initially measured in accordance with HKFRS 15 since 1 January 2019. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets or liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognized immediately in profit or loss. The
effective interest method is a method of calculating the amortized cost of a financial asset or financial liability and of allocating
interest income and interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts and payments (including all fees and points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) through the expected life of the financial asset or financial liability, or,
where appropriate, a shorter period, to the net carrying amount on initial recognition. Interest
income which are derived from the Company’s ordinary course of business are presented as revenue. Financial
assets Classification
and subsequent measurement of financial assets (upon application of IFRS 9) Financial
assets that meet the following conditions are subsequently measured at amortized cost:
● the
financial asset is held within a business model whose objective is to collect contractual cash flows; and
● the
contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. All
other financial assets are subsequently measured at fair value through profit or loss (“FVTPL”). A
financial asset is classified as held for trading if:
● it
has been acquired principally for the purpose of selling in the near term; or
● on
initial recognition it is a part of a portfolio of identified financial instruments that the Company manages together and has a recent
actual pattern of short-term profit-taking; or
● it
is a derivative that is not designated and effective as a hedging instrument. In
addition, the Company may irrevocably designate a financial asset that are required to be measured at the amortized cost as measured
at FVTPL if doing so eliminates or significantly reduces an accounting mismatch. (i)
Amortized cost and interest income Interest
income is recognized using the effective interest method for financial assets measured subsequently at amortized cost. Interest income
is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for financial assets
that have subsequently become credit-impaired. For financial assets that have subsequently become credit-impaired, interest income is
recognized by applying the effective interest rate to the amortized cost of the financial asset from the next reporting period. If the
credit risk on the credit-impaired financial instrument improves so that the financial asset is no longer credit-impaired, interest income
is recognized by applying the effective interest rate to the gross carrying amount of the financial asset from the beginning of the reporting
period following the determination that the asset is no longer credit impaired. (ii)
Financial assets at FVTPL Financial
assets that do not meet the criteria for being measured at amortized cost are measured at FVTPL. Financial
assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit
or loss. The net gain or loss recognized in profit or loss includes any dividend or interest earned on the financial asset and is included
in the “other gains and losses” line item. Impairment
of financial assets (upon application IFRS 9) The
Company recognizes a loss allowance for expected credit loss (“ECL”) on financial assets which are subject to impairment
under IFRS 9 (including trade and other receivables, bank deposits and bank balances). ECLs are based on the difference between the contractual
cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation
of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms. The amount of ECL is updated at each reporting date to reflect changes in credit
risk since initial recognition. General
approach ECLs
are recognized in two measurement bases. For credit exposures for which there has not been a significant increase in credit risk since
initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months
(a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition,
a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default
(a lifetime ECL). At
each reporting date, the Company assesses whether the credit risk on a financial instrument has increased significantly since initial
recognition. When making the assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting
date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable
and supportable information that is available without undue cost or effort, including historical and forward looking information. The
Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company
may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to
receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial
asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Financial
assets at amortized cost are subject to impairment under the general approach and they are classified within the following stages for
measurement of ECLs except for trade receivables which apply the simplified approach as detailed below. Stage
1 — Financial instruments for which credit risk has not increased significantly since initial recognition and for which the loss
allowance is measured at an amount equal to 12-month ECLs Stage
2 — Financial instruments for which credit risk has increased significantly since initial recognition but that are not credit-impaired
financial assets and for which the loss allowance is measured at an amount equal to lifetime ECLs Stage
3 — Financial assets that are credit-impaired at the reporting date (but that are not purchased or originated credit-impaired)
and for which the loss allowance is measured at an amount equal to lifetime ECLs Simplified
approach For
trade receivables that do not contain a significant financing component or when the Company applies the practical expedient of not adjusting
the effect of a significant financing component, the Company applies the simplified approach in calculating ECLs. Under the simplified
approach, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting
date. The
Company assesses at the end of each reporting period whether there is any objective evidence that a financial asset or a group of financial
assets is impaired. An impairment exists if one or more events that occurred after the initial recognition of the asset have an impact
on the estimated future cash flows of the financial asset or the Company of financial assets that can be reliably estimated. Evidence
of impairment may include indications that a debtor or a group of debtors is experiencing significant financial difficulty, default or
delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and
observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic
conditions that correlate with defaults. Financial
assets carried at amortized cost For
financial assets carried at amortized cost, the Company first assesses whether impairment exists individually for financial assets that
are individually significant, or collectively for financial assets that are not individually significant. If the Company determines that
no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the
asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that
are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective
assessment of impairment. The
amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value
of estimated future cash flows (excluding future credit losses that have not been incurred). The present value of the estimated future
cash flows is discounted at the financial asset’s original effective interest rate (i.e., the effective interest rate computed
at initial recognition). The
carrying amount of the asset is reduced through the use of an allowance account and the loss is recognized in profit or loss. Interest
income continues to be accrued on the reduced carrying amount using the rate of interest used to discount the future cash flows for the
purpose of measuring the impairment loss. Loans and receivables together with any associated allowance are written off when there is
no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Company. If,
in a subsequent period, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment
was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off
is later recovered, the recovery is credited to other expenses in the statement of profit or loss. Classification
and subsequent measurement of financial assets (before application of IFRS 9 on January 1, 2018) The
Company’s financial assets are loans and receivables. The classification depends on the nature and purpose of the financial assets
and is determined at the time of initial recognition. Loans
and receivables Loans
and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They
are initially recognized at fair value. Subsequent to initial recognition, loans and receivables (including trade and other receivables,
pledged bank deposits, fixed bank deposits with maturity periods over three months and bank balances) are measured at amortized cost
using the effective interest method, less any identified impairment losses). Impairment
of financial assets Financial
assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired
when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial
asset, the estimated future cash flows of the financial assets have been affected. Objective
evidence of impairment could include:
● significant
financial difficulty of the issuer or counterparty; or
● breach
of contract, such as a default or delinquency in interest or principal payments; or
● it
becoming probable that the borrower will enter bankruptcy or financial re-organization; or disappearance of an active market for
that financial asset because of financial difficulties. If
any such evidence exists, the impairment loss on trade receivables and other current receivables and other financial assets carried at
amortized cost is measured as the difference between the asset’s carrying amount and the present value of the estimated future
cash flows discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial
recognition of these assets), where the effect of discounting is material. This assessment is made collectively where these financial
assets share similar risk characteristics, such as similar past due status, and have not been individually assessed as impaired. Future
cash flows for financial assets which are assessed for impairment collectively are based on historical loss experience for assets with
credit risk characteristics similar to the collective group. If
in a subsequent period the amount of an impairment loss decreases and the decrease can be linked objectively to an event occurring after
the impairment loss was recognized, the impairment loss is reversed through profit or loss. A reversal of an impairment loss shall not
result in the asset’s carrying amount exceeding that which would have been determined had no impairment loss been recognized in
prior years. Impairment
losses are written off against the corresponding assets directly, except for impairment losses recognized in respect of trade receivables
included within trade and other receivables and prepayments, whose recovery is considered doubtful but not remote. In this case, the
impairment losses for doubtful debts are recorded using an allowance account. When the Company is satisfied that recovery is remote,
the amount considered irrecoverable is written off against trade debtors directly and any amounts held in the allowance account relating
to that debt are reversed. Subsequent recoveries of amounts previously charged to the allowance account are reversed against the allowance
account. Other changes in the allowance account and subsequent recoveries of amounts previously written off directly are recognized in
profit or loss. Derecognition
of financial assets The
Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers
the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers
nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes
its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all
the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and recognizes
a collateralized borrowing for the proceeds received. On
derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount and the sum of
the consideration received and receivable is recognized in profit or loss. Financial
liabilities and equity instruments Debt
and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance
of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity
instruments An
equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Effective
interest method The
effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial
recognition. Interest
expense is recognized on an effective interest basis. Financial
liabilities Interest-bearing
borrowings are recognized initially at fair value less attributable transaction costs. They are subsequently stated at amortized cost
with any difference between the amount initially recognized and redemption value being recognized in profit or loss over the period of
the borrowings, together with any interest and fees payable, using the effective interest method. Trade
and other payables are initially recognized at fair value. They are subsequently stated at amortized cost unless the effect of discounting
would be immaterial, in which case they are stated at cost. Derecognition The
Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire. On
derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration
received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity
is recognized in profit or loss. The
Company derecognizes a financial liability when, and only when, the Company’s obligations are discharged, cancelled or expire.
The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized
in profit or loss. |
| Derivative financial instruments | 2.11
Derivative financial instruments Initial
recognition and subsequent measurement The
Company uses derivative financial instruments, such as forward currency contracts, for investment purposes. Such derivative financial
instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured
at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair
value is negative. Any
gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss. |
| Leases | 2.12
Leases Finance
leases refers to the situation that the economic ownership of a leased asset is transferred to the lessee if the lessee bears substantially
all the risks and rewards of ownership of the leased asset. All
other leases are treated as operating leases. Where the Company has the use of assets under operating leases, payments made under the
leases are charged to profit or loss on a straight line basis over the lease terms except where an alternative basis is more representative
of the time pattern of benefits to be derived from the leased assets. Lease incentives received are recognized in profit or loss as an
integral part of the aggregate net lease payments made. Contingent rental are charged to profit or loss in the accounting period in which
they are incurred. Operating leases were treated in accordance to IFRS 16 commencing January 1, 2019. All
the leases of the Company are operating leases for the years ended December 31, 2022, 2021 and 2020. |
| Provisions and contingencies | 2.13
Provisions and contingencies Provisions
for product warranties, legal disputes, onerous contracts or other claims are recognized when the Company has a present obligation (legal
or constructive) as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the
obligation and a reliable estimate of the amount of the obligation can be made. Where the time value of money is material, provisions
are stated at the present value of the expenditure expected to settle the obligation. All
provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Where
it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation
is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose
existence will only be confirmed by the occurrence or non-occurrence of one or more future uncertain events not wholly within the control
of the Company are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. |
| Share capital | 2.14
Share capital Ordinary
shares are classified as equity. Share capital is determined using the nominal value of shares that have been issued. Any
transaction costs associated with the issuing of shares are deducted from share premium (net of any related income tax benefit) to the
extent they are incremental costs directly attributable to the equity transaction. |
| Revenue recognition | 2.15
Revenue recognition Revenue
comprises the fair value of the consideration received or receivable for the sale of goods, net of rebates and discounts. No such rebates
were paid to distributors since year 2013. Provided it is probable that the economic benefits will flow to the Company and the revenue
and costs, if applicable, can be measured reliably, revenue is recognized as follows: Sales
of goods are recognized upon transfer of the significant risks and rewards of ownership to the customer. This is usually taken as the
time when the goods are delivered and the customer has accepted the goods. Once goods are accepted by a customer, there is no continuing
management involvement with the goods and the Company does not have the obligation to accept the return of the goods to the Company from
the customer. Consulting service and livestreaming
ecommerce service are recognized upon service is provided to customers. Rental
income is recognized based upon our annual rental over the life of the lease under operating lease, using the straight-line method. Interest
income is recognized on a time-proportion basis using the effective interest method. |
| Impairment of non-financial assets | 2.16
Impairment of non-financial assets Impairment
testing is made on the Company’s goodwill at each reporting date. Property, plant and equipment and land use rights are tested
for impairment if there is any indication that the assets may be impaired at the balance sheet date. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable
amount. Calculation
of recoverable amount An
asset’s recoverable amount is the greater of an asset’s or cash-generating unit’s fair value less costs of disposal
and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where an asset
does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the smallest
group of assets that generates cash inflows independently (i.e. a cash-generating unit). Recognition
of impairment losses An
impairment loss is recognized in profit or loss whenever the carrying amount of an asset, or the cash-generating unit to which it belongs,
exceeds its recoverable amount. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying
amount of any goodwill allocated to that cash-generating unit (or group of units), and then, to reduce on a pro rata basis the carrying
amount of the other assets in the unit (or group of units), except that the carrying amount of an asset will not be reduced below its
individual fair value less costs of disposal (if measurable) or value in use (if determinable). Reversal
of impairment losses In
respect of assets other than goodwill, an impairment loss is reversed if there has been a favorable change in the estimates used to determine
the recoverable amount. An impairment loss in respect of goodwill is not reversed. A
reversal of an impairment loss is limited to the asset’s carrying amount that would have been determined had no impairment loss
been recognized in prior years. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are
recognized. |
| Employee benefits | 2.17
Employee benefits Retirement
benefits The
employees of the Company’s PRC subsidiaries are required to participate in a central pension scheme operated by the local municipal
government. Contributions are recognized as an expense in profit or loss as employees render services during the year. The Company’s
obligation under these plans is limited to the fixed percentage contributions payable. Share-based
employee remuneration The
Company operates equity-settled share-based remuneration plans for its employees. None of the Company’s plans feature any options
for a cash settlement. The
fair value of share options granted to employees is recognized as an employee cost with a corresponding increase in the share-based payment
reserve within equity. The fair value is measured at the grant date using the Black Scholes Option Pricing Model, taking into account
the terms and conditions upon which the options were granted. Where the employees have to meet vesting conditions before becoming unconditionally
entitled to the share options, the total estimated fair value of the share options is spread over the vesting period, taking into account
the probability that the options will vest. During
the vesting period, the number of share options expected to vest is reviewed. Any resulting adjustment to the cumulative fair value recognized
in prior years is charged/credited to the profit or loss for the year under review, unless the original employee expenses qualify for
recognition as an asset, with a corresponding adjustment to the share-based payment reserve. On the vesting date, the amount recognized
as an expense is adjusted to reflect the actual number of share options that vest (with a corresponding adjustment to the share-based
payment reserve) except where forfeiture is only due to not achieving vesting conditions that relate to the market price of the Company’s
shares. The equity amount is recognized in the share-based payment reserve until either the option is exercised (when it is transferred
to the share premium account) or the option expires (when it is released directly to retained earnings). |
| Borrowing costs | 2.18
Borrowing costs Borrowing
costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing costs directly attributable to
the acquisition, construction or production of qualifying asset which necessarily takes a substantial period of time to get ready for
its intended use or sale are capitalized as part of the cost of that asset until such time as the assets are substantially ready for
their intended use or sale. Other borrowing costs are expensed when incurred. |
| Accounting for income taxes | 2.19
Accounting for income taxes Income
tax comprises current tax and deferred tax. Current
tax and movements in deferred tax assets and liabilities are recognized in profit or loss except to the extent that they relate to items
recognized in other comprehensive income or directly in equity, in which case the relevant amounts of tax are recognized in other comprehensive
income or directly in equity, respectively. Current
tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the
reporting period, and any adjustment to tax payable in respect of previous years. Deferred
tax is calculated using the liability method on temporary differences at the reporting date between the carrying amounts of assets and
liabilities in the financial statements and their respective tax bases. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are recognized for all deductible temporary differences, tax losses available to be carried
forward as well as other unused tax credits, to the extent that it is probable that taxable profit, including existing taxable temporary
differences, will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilized. Deferred
tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from initial recognition (other than
in a business combination) of assets and liabilities in a transaction that affects neither taxable nor accounting profit or loss. Deferred
tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries, associates and joint ventures,
except where the Company is able to control the reversal of the temporary differences and it is probable that the temporary differences
will not reverse in the foreseeable future. Deferred
tax is calculated, without discounting, at the tax rates that are expected to apply in the period the liability is settled or the asset
realized, based on tax rate (and tax laws) that have been enacted or substantively enacted at the reporting date. The
carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow the related tax benefit to be utilized. Any such reduction is reversed
to the extent that it becomes probable that sufficient taxable profits will be available. Additional
income taxes that arise from the distribution of dividends are recognized when the liability to pay the related dividends is recognized. Current
tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset. Current tax
assets are offset against current tax liabilities, and deferred tax assets are offset against deferred tax liabilities, if the Company
has the legally enforceable right to set off the recognized amounts and the following additional conditions are met:
(a) in
the case of current tax assets and liabilities, the Company intends either to settle on a net basis, or to realize the asset and
settle the liability simultaneously; or
(b) in
the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either:
(i) the
same taxable entity; or
(ii) different
taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be
settled or recovered, intend either to settle current tax liabilities and realize the current tax assets on a net basis, or to settle
the liabilities and realize the assets simultaneously. |
| Research and development activities | 2.20
Research and development activities Costs
associated with research activities are expensed in profit or loss as they incur. Costs that are directly attributable to development
activities are recognized as intangible assets if, and only if, all of the following have been demonstrated:
(i) the
technical feasibility of completing the intangible asset so that the asset will be available for use or sale;
(ii) the
intention to complete the intangible asset and use or sell it;
(iii) the
ability to use or sell the intangible asset;
(iv) how
the intangible asset will generate probable future economic benefits;
(v) the
availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset;
and
(vi) the
ability to measure reliably the expenditure attributable to the intangible asset during its development. The
amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the
intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognized,
development expenditure is recognized in profit or loss in the period in which it is incurred. Subsequent
to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortization and accumulated impairment
losses, on the same basis as intangible assets that are acquired separately. Gains
and losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying
amount of the asset, are recognized in profit or loss when the asset is derecognized. |
| Segment reporting | 2.21
Segment reporting The
Company identifies operating segments and prepares segment information based on the regular internal financial information reported to
the Chief Executive Officer and executive directors, who are the Company’s chief operating decision maker, for their decisions
about the allocation of resources to the Company’s business components and for their review of the performance of those components. Business
segment The
Company operates principally in the 1) manufacturing and sale of medium to high-end ceramic tiles and 2) providing business management
consulting, information system technology consulting services including the sales of software use rights for digital data deposit platforms
and asset management systems, and online social media platform development and consulting. The Chief Executive Officer and executive
directors regularly review the Company’s business as two business segments. Geographical
segment The
business of the Company is engaged entirely in the PRC. The Chief Executive Officer and executive directors regularly review the Company’s
business as one geographical segment. |
| Related parties | 2.22
Related parties
(a) A
person, or a close member of that person’s family, is related to the Company if that person:
(i) has
control or joint control over the Company;
(ii) has
significant influence over the Company; or
(iii) is
a member of the key management personnel of the Company.
(b) An
entity is related to the Company if any of the following conditions applies:
(iv) The
entity and the Company are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to
the others).
(v) One
entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the
other entity is a member).
(vi) Both
entities are joint ventures of the same third party.
(vii) One
entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(viii) The
entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Company.
(ix) The
entity is controlled or jointly controlled by a person identified in (a).
(x) A
person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity
(or of a parent of the entity). Close
members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their
dealings with the entity. |
