LOSS BEFORE INCOME TAX

6 Months Ended

12 Months Ended

Jun. 30, 2024

Dec. 31, 2023

Loss Before Income Tax

LOSS BEFORE INCOME TAX

5. LOSS BEFORE INCOME TAX

The Group’s loss before tax from continuing operations is arrived at after (crediting)/charging:

	Six months ended June 30,
	2023			2024			2024
	CNY			CNY			US$
	(Unaudited)			(Unaudited)			(Unaudited)
Crediting:
Finance income		(3	)		(42	)		(6	)
Other income		(500	)		—			—
Depreciation:
- Property, plant and equipment		3			2			—
- Right-of-use assets		354			356			49
Expense relating to short-term leases		97			97			13
Fair value loss/(gain) on financial instruments:
- Derivative financial liabilities		86			(3,862	)		(531	)
Finance costs		44			30			4

The Group’s loss before tax from discontinuing operations is arrived at after (crediting)/charging:

	Six months ended June 30,
	2023			2024		2024
	CNY			CNY		US$
	(Unaudited)			(Unaudited)		(Unaudited)
Crediting:
Finance income (Note 3)		(8,098	)		—		—
Other income		(142	)		—		—
Charging:
Cost of sales:
- Construction service		2,423			—		—
- Operation and maintenance services		256			—		—
- Operation services related to service concession arrangement		2,697			—		—
Total		5,376			—		—
Depreciation:
- Property, plant and equipment		103			—		—
- Right-of-use assets		359			—		—
Amortization of intangible assets		395			—		—
Expense relating to short-term leases		112			—		—
Impairment losses on financial assets:
- Trade receivables		388			—		—
- Contract assets		3,546			—		—
- Other receivables		6,829			—		—
Finance costs (Note 3)		1,886			—		—

5. LOSS BEFORE INCOME TAX

The Group’s loss before tax from continuing operations is arrived at after (crediting)/charging:

	Year Ended December 31,
	2021			2022			2023			2023
	CNY			CNY			CNY			US$
Crediting:
Finance income		(13	)		(13	)		(5	)		(1	)
Depreciation
- Property, plant and equipment (Note 9)		62			29			5			1
- Right-of-use assets (Note 11)		719			700			691			98
Expense relating to short-term leases (Note 11)		601			353			194			28
Fair value (gain)/loss on financial instruments:
- Financial assets at fair value through profit or loss		45,816			—			—			—
- Derivative financial liabilities		(7,467	)		(1,007	)		(847	)		(120	)
Expenses related to share-based payment		—			—			3,074			435
Consultants share option expense		—			16,152			—			—
Issuance expense related to placement		1,579			—			—			—
Other income		(599	)		(699	)		(3,742	)		(529	)
Finance costs		166			(191	)		48			7
Employee benefit expenses** (Note 6)		1,517			1,171			1,192			168

The Group’s loss before tax from discontinuing operations is arrived at after (crediting)/charging:

	Year Ended December 31,
	2021			2022			2023			2023
	CNY			CNY			CNY			US$
Crediting:
Finance income		(16,922	)		(15,594	)		(8,785	)		(1,241	)
Charging:
Cost of sales
- Sales of water treatment equipment		—			94			—			—
- Construction service		12,876			8,580			2,435			345
- Operation and maintenance services		162			—			307			43
- Operation services related to service concession arrangement		5,067			5,811			3,130			442
- Construction services related to service concession arrangement		389			—			—			—
Cost of sales		18,494			14,485			5,872			830
Depreciation
- Property, plant and equipment (Note 9)		448			275			95			14
- Right-of-use assets (Note 11)		647			713			359			50
Amortization of intangible assets* (Note 10)		884			813			460			65
Expense relating to short-term leases (Note 11)		—			137			129			18
Impairment losses/(reversal) on financial assets:
- Trade receivables		3,840			(3,989	)		383			54
- Contract assets		357			171			3,545			501
- Other receivables		239			2,745			6,003			848
- Amounts due from related companies		(1,106	)		—			—			—
Other losses / (income)		782			(205	)		142			20
Finance costs		4,193			3,586			1,906			270
Employee benefit expenses**		9,979			9,416			4,960			701

* The amortization of intangible assets allocated to cost of sales amounted to CNY730, CNY730 and CNY425 (US$60) and administrative expenses amounted to CNY154, CNY83 and CNY35 (US$5) on the consolidated statements of profit or loss for the years ended December 31, 2021, 2022 and 2023.

** The employee benefit expenses allocated to cost of sales amounted to CNY2,772, CNY1,418 and CNY870 (US$123), selling and distribution expenses amounted to CNY159, CNY111, CNY70 (US$10) and administrative expenses amounted to CNY8,565, CNY9,058 and CNY5,212 (US$736) on the consolidated statements of profit or loss for the years ended December 31, 2021, 2022 and 2023.