| SEGMENT INFORMATION | 3. SEGMENT INFORMATION Operating segments are identified on the
basis of internal reports about components of the Group that are regularly reviewed by the Group’s management and the Company’s
Board of Directors for the purpose of resource allocation and performance assessment. Management assesses the performance of operating
segments based on profit or loss before income tax in related periods. The manner of assessment is consistent with that applied in these
financial statements. As of June 30, 2023, the Group’s two
reportable operating segments are summarized below: - Wastewater treatment segment, which consists
of sales of assembled equipment, provision of construction services and participating in PPP projects as operator; - Exploration and mining segment, which consists
of the exploration for lead, silver , Deferred tax assets, income tax payable and
deferred tax liabilities are excluded from segment assets and segment liabilities. The Group had neither sale of products nor provisions
of services between the operating segments. For the six months ended June 30, 2022, the
segment results were as follows:
Schedule of segment results
Wastewater
treatment Exploration
and mining Corporate
activities Total
CNY CNY CNY CNY
Six months ended June 30, 2022 (Unaudited)
Revenues from external customers 16,072 — — 16,072
Segment profit before income tax 3,784 245 1 4,030
Income tax expenses (357 )
Profit for the period 3,673
Other items
Depreciation of property, plant and equipment (114 ) (26 ) (1 ) (141 )
Depreciation of right of use assets (347 ) — (360 ) (707 )
Amortization of intangible assets (404 ) — — (404 )
Impairment (losses)/reversal on financial assets
- Trade receivables (1,936 ) — — (1,936 )
- Contract assets 41 — — 41
- Other receivables — — (1,077 ) (1,077 )
Other income 30 700 1 731
Fair value gain on financial instruments — — 559 559
Finance costs (1,799 ) (1 ) (22 ) (1,822 )
Finance income 7,857 — 1,519 9,376 For the six months ended June 30, 2023,
the segment results were as follows:
Wastewater
treatment Exploration
and mining Corporate
activities Total
CNY CNY CNY CNY
Six months ended June 30, 2023 (Unaudited)
Revenues from external customers 12,216 — — 12,216
Segment profit (loss) before income tax 353 (73 ) (7,914 ) (7,634 )
Income tax expenses (1,827 )
Loss for the period (9,461 )
Other items
Depreciation of property, plant and equipment (103 ) (2 ) (1 ) (106 )
Depreciation of right of use assets (359 ) — (354 ) (713 )
Amortization of intangible assets (395 ) — — (395 )
Impairment (losses)/reversal on financial assets
- Trade receivables (388 ) — — (388 )
- Contract assets (3,546 ) — — (3,546 )
- Other receivables — — (6,829 ) (6,829 )
Other income 142 500 — 642
Fair value loss on financial instruments — — (86 ) (86 )
Finance costs (1,884 ) (1 ) (45 ) (1,930 )
Finance income 4,702 — 3,399 8,101 For the six months ended June 30, 2023,
the segment results were as follows (continued):
Wastewater
treatment Exploration
and mining Corporate
activities Total
US$ US$ US$ US$
Six months ended June 30, 2023 (Unaudited)
Revenues from external customers 1,684 — — 1,684
Segment profit(loss) before income tax 49 (10 ) (1,091 ) (1,052 )
Income tax expenses (252 )
Loss for the period (1,304 )
Other items
Depreciation of property, plant and equipment (14 ) — — (14 )
Depreciation of right of use assets (49 ) — (49 ) (98 )
Amortization of intangible assets (54 ) — — (54 )
Impairment (losses)/reversal on financial assets
- Trade receivables (53 ) — — (53 )
- Contract assets (489 ) — — (489 )
- Other receivables — — (942 ) (942 )
Other income 20 69 — 89
Fair value loss on financial instruments — — (12 ) (12 )
Finance costs (260 ) — (6 ) (266 )
Finance income 648 — 469 1,117 The following table presents the asset and liability information
of the Group’s operating segments as of December 31, 2022, and June 30, 2023:
Schedule of operating segment
Wastewater
treatment Exploration
and mining Corporate
activities Total
CNY CNY CNY CNY
As of December 31, 2022 (Audited)
Segment assets 312,229 286 87,476 399,991
Reconciliation:
Elimination of inter-segment receivables (80,000 )
Total assets 319,991
Segment liabilities 107,096 3,298 96,140 206,534
Reconciliation:
Elimination of inter-segment payables (80,000 )
Unallocated liabilities:
Deferred tax liabilities 5,276
Income tax payable 10,732
Total liabilities 142,542
Wastewater
treatment Exploration
and mining Corporate
activities Total
CNY CNY CNY CNY
As of June 30, 2023 (Unaudited)
Segment assets 313,098 255,233 80,522 648,853
Reconciliation:
Elimination of inter-segment receivables (80,000 )
Total assets 568,853
Segment liabilities 113,448 258,436 92,368 464,252
Reconciliation:
Elimination of inter-segment payables (80,000 )
Unallocated liabilities:
Deferred tax liabilities 5,266
Income tax payable 11,729
Total liabilities 401,247 The following table presents the asset and liability information
of the Group’s operating segments as of December 31, 2022, and June 30, 2023(continued):
Wastewater
treatment Exploration
and mining Corporate
activities Total
US$ US$ US$ US$
As of June 30, 2023 (Unaudited)
Segment assets 43,165 35,188 11,101 89,454
Reconciliation:
Elimination of inter-segment receivables (11,029 )
Total assets 78,425
Segment liabilities 15,640 35,633 12,734 64,007
Reconciliation:
Elimination of inter-segment payables (11,029 )
Unallocated liabilities:
Deferred tax liabilities 726
Income tax payable 1,617
Total liabilities 55,321 | 3. SEGMENT
INFORMATION Operating
segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group’s
management and the Company’s Board of Directors for the purpose of resource allocation and performance assessment. Management
assesses the performance of operating segments based on profit or loss before income tax in related periods. The manner of assessment
is consistent with that applied in these financial statements. As
of December 31, 2022, the Group’s two reportable operating segments are summarized below: - Wastewater treatment
segment, which consists of sales of assembled equipment, provision of construction service and participating in PPP projects as operator; - Exploration and
mining segment, which consists of the exploration of lead, silver and other metals in the Inner Mongolia Autonomous Region of the PRC
and the trading of copper ores products; Deferred
tax assets, income tax payable and deferred tax liabilities are excluded from segment assets and segment liabilities. The Group had neither
sales of products nor provisions of services between the operating segments. For
the year ended December 31, 2020, the segment results were as follows:
Schedule of segment results
Year
Ended December 31, 2020
Wastewater
treatment Exploration
and mining Corporate
activities Total
CNY CNY CNY CNY
Revenues from external customers 35,631 6,867 — 42,498
Segment (loss)/profit
before income tax (112 ) (682 ) 24,973 24,179
Income tax expense (1,258 )
Profit for the year 22,921
Other items
Depreciation of property, plant and equipment (500 ) (62 ) (3 ) (565 )
Depreciation of right-of-use assets (687 ) — (976 ) (1,663 )
Amortization of intangible assets (156 ) — — (156 )
Impairment (losses)/reversal on financial assets
- Trade receivables (4,544 ) — — (4,544 )
- Contract assets (172 ) — — (172 )
- Amounts due from related companies 334 — 220 554
Fair value gain on financial instrument — — 31,334 31,334
Other income 1,415 200 1 1,616
Finance costs (3,687 ) (1 ) (61 ) (3,749 )
Finance income 15,449 1 18 15,468
As of December 31, 2020
Segment assets 337,050 39 190,047 527,136
Unallocated assets:
Deferred tax assets 2,920
Total assets 530,056
Segment liabilities 116,140 3,013 90,066 209,219
Unallocated liabilities:
Deferred tax liabilities 10,426
Income tax payable 18,612
Total liabilities 238,257 For
the year ended December 31, 2021, the segment results were as follows:
Year
Ended December 31, 2021
Wastewater
treatment Exploration
and mining Corporate
activities Total
CNY CNY CNY CNY
Revenues from external customers 18,735 — — 18,735
Segment
(loss) before income tax (7,216 ) (161 ) (45,459 ) (52,836 )
Income tax expense (2,135 )
(Loss) for the year (54,971 )
Other items
Depreciation of property, plant and equipment (445 ) (62 ) (3 ) (510 )
Depreciation of right-of-use assets (647 ) — (719 ) (1,366 )
Amortization of intangible assets (884 ) — — (884 )
Impairment (losses)/reversal on financial assets
- Trade receivables (3,840 ) — — (3,840 )
- Contract assets (357 ) — — (357 )
- Other receivables — — (239 ) (239 )
- Amounts due from related companies 775 — 331 1,106
Fair value loss on financial instrument — — (38,349 ) (38,349 )
Other income (782 ) 600 (1 ) (183 )
Finance costs (4,192 ) (1 ) (166 ) (4,359 )
Finance income 13,537 1 3,397 16,935
As of December 31,
2021
Segment assets 390,895 321 22,166 413,382
Reconciliation:
Elimination of inter-segment receivables (80,000 )
Unallocated assets:
Deferred tax assets 66
Total assets 333,448
Segment liabilities 113,124 3,294 103,195 219,613
Reconciliation:
Elimination of inter-segment payables (80,000 )
Unallocated liabilities:
Deferred tax liabilities 2,544
Income tax payable 9,254
Total liabilities 151,411 For the
year ended December 31, 2022, the segment results were as follows:
Year
Ended December 31, 2022
Wastewater
treatment Exploration
and mining Corporate
activities Total
CNY CNY CNY CNY
Revenues from external customers 20,306 — — 20,306
Segment
profit/(loss) before income tax 9,758 (39 ) (26,151 ) (16,432 )
Income tax expense (5,864 )
(Loss) for the year (22,296 )
Other items
Depreciation of property, plant and equipment (275 ) (28 ) (1 ) (304 )
Depreciation of right-of-use assets (713 ) — (700 ) (1,413 )
Amortization of intangible assets (813 ) — — (813 )
Impairment (losses)/reversal on financial assets
- Trade receivables 3,989 — — 3,989
- Contract assets (171 ) — — (171 )
- Other receivables — — (2,745 ) (2,745 )
Fair value gain on financial instrument — — 1,007 1,007
Consultants shares option expense — — (16,152 ) (16,152 )
Other income 206 697 1 904
Finance costs (3,582 ) (1 ) 188 (3,395 )
Finance income 15,594 — 13 15,607
As of December 31,
2022
Segment assets 312,229 286 87,476 399,991
Reconciliation:
Elimination of inter-segment
receivables (80,000 )
Total assets 319,991
Segment liabilities 107,096 3,298 96,140 206,534
Reconciliation:
Elimination of inter-segment payables (80,000 )
Unallocated liabilities:
Deferred tax liabilities 5,276
Income tax payable 10,732
Total liabilities 142,542
Year
Ended December 31, 2022
Wastewater
treatment Exploration
and mining Corporate
activities Total
US$ US$ US$ US$
Revenues from external customers 2,944 — — 2,944
Segment
profit/(loss) before income tax 1,414 (6 ) (3,791 ) (2,383 )
Income tax expense (850 )
(Loss)/Profit for the
year (3,233 )
Other items
Depreciation of property, plant and equipment (40 ) (4 ) — (44 )
Depreciation of right-of-use assets (104 ) — (101 ) (205 )
Amortization of intangible assets (118 ) — — (118 )
Impairment (losses)/reversal on financial assets
- Trade receivables 578 — — 578
- Contract assets (25 ) — — (25 )
- Other receivables — — (397 ) (397 )
Fair value gain on financial instrument — — 146 146
Consultants shares option expense — — (2,342 ) (2,342 )
Other income 30 101 — 131
Finance costs (519 ) — 27 (492 )
Finance income 2,261 — 2 2,263
As of December 31,
2022
Segment assets 45,264 41 12,682 57,987
Reconciliation:
Elimination of inter-segment
receivables (11,599 )
Total assets 46,388
Segment liabilities 15,526 478 13,938 29,942
Reconciliation:
Elimination of inter-segment payables (11,599 )
Unallocated liabilities:
Deferred tax liabilities 765
Income tax payable 1,556
Total liabilities 20,664 Geographical information (a) Non-current assets
Schedule of non-current assets
December
31,
2021 2022 2022
CNY CNY US$
Mainland China 22,905 21,790 3,159
Hong Kong 360 1,012 147
Total 23,265 22,802 3,306 The non-current assets information above
is based on the locations of the assets and excludes financial instruments and deferred tax assets. Information about major customers For the year ended December 31, 2020, revenue
of approximately CNY 24,405
6,867
For the year ended December 31, 2021, revenue
of approximately CNY 6,439
5,915
For the year ended December 31, 2022, revenue
of approximately CNY 5,512
799 3,842
557 |
