SEGMENT INFORMATION

6 Months Ended

12 Months Ended

Jun. 30, 2024

Dec. 31, 2023

Segment Information

SEGMENT INFORMATION

4. 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.

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.

As of December 31, 2023 and June 30, 2024, after the disposal of PSTT in July 2023, the Group only operates in one operating segment: exploration and mining, which consists of the exploration for lead, silver, lithium and other metals. The segment results for the six months ended June 30, 2023 were retroactively restated to exclude discontinued operations (Note 3). Segment performance is evaluated based on reportable segment profit / (loss), which is a measure of adjusted profit / (loss) before tax from continuing operations. The segment analysis below is provided for the Group's continuing operations and does not include any amount from a discontinued operation, namely the wastewater treatment (see Note 3 for information on discontinued operations).

For the six months ended June 30, 2023, the segment results were as follows:

	Exploration and mining			Corporate activities			Total
		CNY			CNY			CNY
Other items
Depreciation of property, plant and equipment		(2	)		(1	)		(3	)
Depreciation of right of use assets		—			(354	)		(354	)
Other income		500			—			500
Fair value loss on financial instruments		—			(86	)		(86	)
Finance costs		(1	)		(43	)		(44	)
Finance income		—			3			3
Loss for the period from continuing operations		(73	)		(4,433	)		(4,506	)

For the six months ended June 30, 2024, the segment results were as follows:

	Exploration and mining			Corporate activities			Total
		CNY			CNY			CNY
Other items
Depreciation of property, plant and equipment		(2	)		—			(2	)
Depreciation of right of use assets		—			(356	)		(356	)
Fair value gain on financial instruments		—			3,862			3,862
Finance costs		(1	)		(29	)		(30	)
Finance income		2			40			42
Loss for the period from continuing operations		(548	)		426			(122	)

	Exploration and mining			Corporate activities			Total
		US$			US$			US$
Other items
Depreciation of property, plant and equipment		—			—			—
Depreciation of right of use assets		—			(49	)		(49	)
Fair value loss on financial instruments		—			531			531
Finance costs		—			(4	)		(4	)
Finance income		—			6			6
Loss for the period from continuing operations		(75	)		58			(17	)

The reconciliation of segment assets to total assets is as follows:

	December 31,		June 30,
	2023		2024		2024
	CNY		CNY		US$
Segment assets:
Exploration and mining		252,133		258,295		35,542
Corporate activities		1,674		5,864		807
Total assets		253,807		264,159		36,349

The reconciliation of segment liabilities to total liabilities is as follows:

	December 31,		June 30,
	2023		2024		2024
	CNY		CNY		US$
Segment liabilities:
Exploration and mining		159,285		154,240		21,224
Corporate activities		18,527		13,598		1,871
Total liabilities		177,812		167,838		23,095

The reconciliation from loss for the period from continuing operations to net loss is as follows:

	June 30,
	2023			2024			2024
	CNY			CNY			US$
Loss for the period from continuing operations		(4,506	)		(122	)		(17	)
Loss for the period from discontinued operations		(4,955	)		—			—
Net loss (including non-controlling interests)		(9,461	)		(122	)		(17	)

4. 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.

Prior to July 28, 2023, 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.

After the disposal of PSTT in July 2023, the Group only operates in one operating segment: exploration and mining. Segment performance is evaluated based on reportable segment profit / (loss), which is a measure of adjusted profit / (loss) before tax from continuing operations. The segment analysis below is provided for the Group's continuing operations and does not include any amount from a discontinued operation, namely the wastewater treatment (see Note 3 for information on discontinued operations).

As of and for the year ended December 31, 2023, the segment results were as follows:

	CNY
	Exploration and mining			Corporate activities			Total
Depreciation and amortization		(4	)		(692	)		(696	)
Interest income		1			4			5
Finance costs		(1	)		(47	)		(48	)
Fair value gain on financial instruments, net		—			847			847
Profit/(loss) before income tax		1,263			(9,600	)		(8,337	)
Other income*		3,742	*		—			3,742
Profit/(loss) for the year from continuing operations		1,263			(9,600	)		(8,337	)
Total assets		252,133			1,674			253,807
Total liabilities		159,285			18,527			177,812

*In 2023, the Company received RMB3,742 from government of Dengkou County, Inner Mongolia Autonomous Region as reimbursement payments for discontinuing the exploration and development activities in certain nature reserve areas. The amount is recognized in other income as the expenditure on the exploration and development have been fully expensed before 2023.

	US$
	Exploration and mining		Corporate activities			Total
Depreciation and amortization		—		(99	)		(99	)
Interest income		—		1			1
Finance costs		—		(7	)		(7	)
Fair value gain on financial instruments, net		—		120			120
Profit/(loss) before income tax		178		(1,355	)		(1,177	)
Other income		529		—			529
Profit/(loss) for the year from continuing operations		178		(1,355	)		(1,177	)
Total assets		35,619		236			35,855
Total liabilities		22,502		2,616			25,118

As of and for the year ended December 31, 2022, the segment results were as follows:

	CNY
	Exploration and mining			Corporate activities			Total
Depreciation and amortization		(28	)		(701	)		(729	)
Interest income		—			13			13
Finance costs		(1	)		192			191
Fair value gain on financial instruments, net		—			1,007			1,007
Loss before income tax		(39	)		(23,299	)		(23,338	)
Other income		698			1			699
Loss for the year from continuing operations		(39	)		(23,299	)		(23,338	)
Total assets		36,015			213,891			249,906
Total liabilities		38,306			59,296			97,602

As of and for the year ended December 31, 2021, the segment results were as follows:

	CNY
	Exploration and mining			Corporate activities			Total
Depreciation and amortization		(64	)		(717	)		(781	)
Interest income		1			12			13
Finance costs		(1	)		(165	)		(166	)
Fair value loss on financial instruments, net		—			(38,349	)		(38,349	)
Loss before income tax		(161	)		(48,818	)		(48,979	)
Other income/(losses)		600			(1	)		599
Income tax benefit		—			5,095			5,095
Loss for the year from continuing operations		(161	)		(43,723	)		(43,884	)
Total assets		39,018			179,024			218,042
Total liabilities		41,251			60,417			101,668

The reconciliation of segment assets to total assets is as follows:

	2022			2023		2023
		CNY			CNY		US$
Segment assets		249,906			253,807		35,855
Assets of segment – Wastewater treatment		315,000			—		—
Net off		(244,915	)		—		—
Total assets		319,991			253,807		35,855

The reconciliation of segment liabilities to total liabilities is as follows:

	2022			2023		2023
		CNY			CNY		US$
Segment liabilities		97,602			177,812		25,118
Liabilities of segment - Wastewater treatment		254,396			—		—
Net off		(209,456	)		—		—
Total liabilities		142,542			177,812		25,118

The reconciliation from loss for the year from continuing operations to net loss is as follows:

	2021			2022			2023			2023
		CNY			CNY			CNY			US$
Loss for the year from continuing operations		(43,884	)		(23,338	)		(8,337	)		(1,177	)
Loss for the year from discontinued operations		(11,087	)		1,042			(4,106	)		(580	)
Net loss (including non-controlling interests)		(54,971	)		(22,296	)		(12,443	)		(1,757	)

Geographical information

(a) Non-current assets

	December 31,
	2022		2023		2023
	CNY		CNY		US$
Mainland China		122,023		162		23
Hong Kong		1,012		247,767		35,002
Total		123,035		247,929		35,025

The non-current assets information above is based on the locations of the assets and excludes financial instruments and deferred tax assets.