SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2023

Segment Information

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, lithium and other metals;

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:

	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:

	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