香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴 該等內容而引致之任何損失承擔任何責任。 MONGOLIA ENERGY CORPORATION LIMITED * 276 截至二零二三年三月三十一日止年度 全年業績公告 蒙古能源有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬公司 （「本集團」）截至二零二三年三月三十一日止年度（「財政年度」）之經審核綜合業績， 連同去年之比較數字如下： 綜合損益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收入 4 2,905,309 1,562,718 銷售成本 (1,820,213) (947,966) 毛利 1,085,096 614,752 其他收入 5 16,518 11,658 其他收益及虧損 6 31,441 6,134 ...

Financial Performance - The company reported a record revenue of HKD 1,866,200,000 for the six months ending September 30, 2022, compared to HKD 941,000,000 in the same period last year, representing a significant increase of approximately 98.3%[6]. - The company reported revenue of HKD 1,866,241,000 for the six months ended September 30, 2022, compared to HKD 941,003,000 for the same period in 2021, representing an increase of 98.1%[87]. - Gross profit for the same period was HKD 792,276,000, up from HKD 429,982,000 in 2021, indicating an increase of 84.4%[87]. - The company incurred a loss attributable to owners of HKD 745,949,000 for the six months ended September 30, 2022, compared to a profit of HKD 48,322,000 in 2021[87]. - The basic and diluted loss per share was HKD 3.97 for the period, compared to earnings of HKD 0.26 and HKD 0.13 in the previous year[87]. - The company reported a total comprehensive income of HKD 52,567,000 for the six months ended September 30, 2022, compared to HKD 48,322,000 in the previous year, reflecting a growth of 8.5%[96]. - The company reported a loss of approximately HKD 745,900,000 for the six months ended September 30, 2022, compared to a loss of HKD 776,461,000 in the same period of the previous year, showing a reduction in losses[96]. - The company’s financial performance reflects challenges in the coal mining sector, impacting revenue and profitability metrics[124]. Production and Sales - Coal production reached approximately 1,894,300 tons during the fiscal period, a substantial increase from 954,600 tons in the previous year, marking an increase of about 98.3%[5]. - The company sold approximately 968,800 tons of coal, including 826,000 tons of coking coal, 111,900 tons of thermal coal, and 30,900 tons of raw coal, compared to 674,000 tons sold in the previous year[6]. - The production of raw coking coal was approximately 1,429,000 tons, up from 882,200 tons in the previous year, reflecting a significant increase in output[23]. - The average selling price for coking coal increased to approximately HKD 2,224.3 per ton, up from HKD 1,637.0 per ton in the previous year, reflecting an increase of about 36%[6]. - The average recovery rate for raw coking coal processed was 84.6%, with approximately 597,400 tons of raw coking coal produced[25]. - The group sold 968,800 tons of coal during the fiscal period, an increase of 43.7% compared to the same period last year[56]. Costs and Expenses - The sales cost for the fiscal period was HKD 1,074,000,000, up from HKD 511,000,000 in the previous year, indicating an increase of approximately 109%[8]. - The gross profit margin for the fiscal period was approximately 42.5%, down from 45.7% in the previous year, due to rising sales costs outpacing the benefits of increased average selling prices[9]. - The company incurred impairment losses of HKD 493,700,000 on property, plant, and equipment during the reporting period[40]. - Financial costs for the six months ended September 30, 2022, totaled HKD 293,491,000, an increase from HKD 265,568,000 in the previous year[129]. - The income tax expense for the six months ended September 30, 2022, was HKD 181,273,000, significantly higher than HKD 48,285,000 in 2021[130]. Debt and Financing - The company reported a net debt of HKD 3,488,900,000 and net current liabilities of approximately HKD 751,600,000 as of September 30, 2022[38]. - The company received a financing commitment of HKD 1,900,000,000 from a major shareholder, with an unused financing balance of HKD 931,600,000 valid until March 29, 2024[38]. - The company's total borrowings amounted to HKD 6,041,000,000 as of September 30, 2022, compared to HKD 5,663,400,000 as of March 31, 2022[38]. - The group’s debt-to-asset ratio as of September 30, 2022, was 1.7, up from 1.6 as of March 31, 2022[47]. - The total debt and derivative components of convertible bonds increased to HKD 4,105,191,000 as of September 30, 2022, from HKD 3,501,682,000, indicating a growth of 17.2%[174]. Assets and Liabilities - Non-current assets decreased to HKD 1,843,890,000 as of September 30, 2022, from HKD 2,365,812,000 as of March 31, 2022, a decline of 22.0%[92]. - Current assets increased to HKD 1,636,091,000 as of September 30, 2022, compared to HKD 1,254,745,000 as of March 31, 2022, an increase of 30.4%[92]. - The company's total liabilities were HKD 2,387,724,000 as of September 30, 2022, slightly down from HKD 2,395,155,000 as of March 31, 2022[92]. - The company has a total equity deficit of HKD 3,488,853,000 as of September 30, 2022, compared to HKD 2,712,392,000 as of March 31, 2022[94]. - Trade receivables and accrued income amounted to HKD 1,037,289,000 as of September 30, 2022, compared to HKD 666,971,000 on March 31, 2022[158]. Corporate Governance - The board of directors established a nomination committee on December 30, 2021, in compliance with corporate governance code B.3.1, which was previously managed collectively by the board[75]. - The company emphasizes the importance of maintaining high levels of corporate governance to protect and enhance shareholder interests[75]. - The company has adopted a custom code for directors' securities trading, which is stricter than the standard code outlined in the listing rules[76]. - The company has implemented written guidelines for employees regarding securities trading to ensure compliance with insider trading regulations[78]. - The company has committed to transparency by publishing its governance codes and employee guidelines on its website[79]. Market and Economic Conditions - Global economic growth is projected to slow to 3.2% in 2022 and further to 2.7% in 2023 according to the International Monetary Fund[51]. - China's GDP growth for the third quarter of 2022 was 3.9%, exceeding market expectations of 3.4%[53]. - The World Steel Association forecasts a 2.3% decline in global steel demand to 1,796.7 million tons in 2022[54]. - Mongolia's GDP is expected to grow by 1.7% in 2022 and 4.9% in 2023, despite economic challenges[54]. Shareholder Information - As of September 30, 2022, the company has a total of 2,698,101,424 shares held by major shareholders, representing 1,434.20% of the issued share capital[63]. - The company has no other shareholders holding 5% or more of the issued share capital as of September 30, 2022, apart from those disclosed[70]. - The company’s major shareholders include Cheng Yu Tung Family (Holdings) Limited and Chow Tai Fook Capital Limited, each holding 2,698,101,424 shares[63]. - The company has a total of 1,800,000 stock options granted to various directors, with Mr. Lu holding the largest portion[60]. - The company granted a total of 30,200,000 share options during the fiscal period, with 13,900,000 options expired or unexercised, resulting in 16,300,000 options available as of September 30, 2022[72].

Financial Performance - The company reported revenue of HKD 1,562,718 thousand for the year ended March 31, 2022, an increase of 82% compared to HKD 858,417 thousand in the previous year[4]. - Gross profit for the year was HKD 614,752 thousand, up from HKD 308,841 thousand, reflecting a gross margin improvement[4]. - The company incurred a loss attributable to shareholders of HKD 408,963 thousand, compared to a loss of HKD 286,905 thousand in the prior year, representing a 42.5% increase in losses[6]. - The company’s basic and diluted loss per share was HKD (2.17), compared to HKD (1.53) in the previous year, indicating a worsening of loss per share[4]. - The company reported a pre-tax loss of HKD 329,113,000 for the year ended March 31, 2022, compared to a pre-tax loss of HKD 236,242,000 for the previous year[27]. - The company reported a pre-tax loss of HKD 408,963 thousand in 2022 compared to a loss of HKD 286,905 thousand in 2021, indicating a worsening of 42%[53]. Assets and Liabilities - The total assets decreased to HKD 2,326,057 thousand from HKD 2,689,849 thousand year-over-year, indicating a decline of approximately 13.5%[8]. - Current assets increased significantly to HKD 1,253,656 thousand from HKD 748,380 thousand, a growth of 67.5%[8]. - The company's non-current liabilities decreased slightly to HKD 3,960,994 thousand from HKD 3,915,029 thousand, showing a marginal reduction[10]. - The net current liabilities improved to HKD (1,141,499) thousand from HKD (1,383,257) thousand, indicating a positive change in liquidity[8]. - The total liabilities of the company as of March 31, 2022, were HKD 6,356,149,000, compared to HKD 6,046,666,000 for the previous year[31]. - The company confirmed a net debt of approximately HKD 2,776,400,000 and a net current liability of about HKD 1,141,500,000 as of March 31, 2022, resulting in a loss of approximately HKD 409,000,000 for the year[14]. Revenue Sources - The coal mining segment generated revenue of HKD 1,562,718,000 for the year ended March 31, 2022, compared to HKD 858,417,000 for the previous year, representing an increase of 82%[27]. - Revenue from external customers in China increased to HKD 1,548,733 thousand in 2022 from HKD 855,906 thousand in 2021, representing an increase of 81%[38]. - Customer A contributed HKD 829,132 thousand to total revenue in 2022, up from HKD 528,915 thousand in 2021, marking a growth of 57%[39]. - The company reported a revenue of HKD 1,562,700,000 from the sale of coking coal and thermal coal to customers in China and Mongolia, representing an increase of 82.0% compared to the previous fiscal year[80]. Impairment and Valuation - The recoverable amount of assets related to the Hu Shuo Tu mining business was determined to be lower than their carrying amount, resulting in an impairment loss of HKD 438,882,000 for the year[23]. - Impairment losses recognized in the profit and loss statement for the year ended March 31, 2022, totaled HKD 438,882,000, primarily due to changes in discount rates and projected coal prices[24]. - The company recorded an impairment loss of HKD 438,900,000 for the fiscal year, compared to a reversal of impairment loss of HKD 1,123,800,000 in the previous year[74]. Financing and Capital Expenditures - The company received financing of HKD 1,900,000,000 from a major shareholder, which includes a loan of HKD 1,707,700,000 as of March 31, 2022, consisting of principal and accrued interest[13]. - Capital expenditures for the coal mining segment increased to HKD 124,307,000 in the year ended March 31, 2022, up from HKD 59,767,000 in the previous year[35]. - The company incurred a capital expenditure of approximately HKD 128,700,000 during the fiscal year, up from HKD 57,700,000 in the previous year[89]. Corporate Governance - The board emphasizes the importance of maintaining high corporate governance standards to protect and enhance shareholder interests[106]. - The company has complied with the corporate governance code, with some deviations noted regarding the appointment of non-executive directors[108]. - A nomination committee was established on December 30, 2021, to review the board's structure and composition annually[108]. Market Conditions and Future Outlook - The International Monetary Fund (IMF) forecasts a global growth slowdown to 3.6% in 2022 due to geopolitical tensions and the impact of the Omicron variant[100]. - The World Steel Association has revised the global steel demand growth forecast for 2022 down to 0.4%, compared to 2.7% in the previous year[101]. - The company anticipates that coal supply in China will continue to rely on Mongolia and other countries, with potential price adjustments if Mongolia significantly increases its coal exports[101]. - Mongolia's economic growth is projected to increase from 2.3% in 2022 to 5.6% in 2023, largely dependent on the reopening of trade with China and control over COVID-19 impacts[104]. Audit and Compliance - The company is in the process of appointing a new independent valuer to facilitate the audit process, particularly concerning the valuation of assets related to its mining operations[114][116]. - The annual results are subject to adjustments pending final verification by the auditors, influenced by various uncertainties[114]. - The new auditor was appointed on March 21, 2022, and requires additional time to familiarize with the group's operations and complete the audit procedures for the year ending March 31, 2022[117].

Financial Performance - For the six months ending September 30, 2021, the company reported revenue of HKD 941 million, a significant increase from HKD 268.9 million in the same period last year, primarily due to improved coal export efficiency[6]. - The company achieved a profit attributable to owners of HKD 752,708,000, a turnaround from a loss of HKD 1,007,693,000 in the previous year[94]. - Basic and diluted earnings per share for the period were HKD 4.00, compared to a loss per share of HKD 5.36 in the prior year[92]. - The company reported a total comprehensive income of HKD 756,422,000 for the period, compared to a loss of HKD 1,006,919,000 in 2020[94]. - The group achieved a profit before tax of HKD 775,906,000 for the six months ended September 30, 2021, compared to a loss before tax of HKD 1,003,090,000 in the same period of the previous year[118]. Production and Sales - The company produced approximately 954,600 tons of raw coal during the period, compared to 336,100 tons in the previous year, and sold about 674,000 tons of coal, up from 238,700 tons[5]. - The total coal production for the fiscal period was approximately 882,200 tons, a significant increase from 279,100 tons in the previous year[28]. - The company reported a coal sales increase of approximately HKD 672.1 million compared to the previous year[27]. - The average selling price for premium coking coal was approximately HKD 1,637 per ton, an increase from HKD 1,194 per ton in the previous year, contributing to a gross profit margin rise to 45.7% from 37.0%[6][9]. - The company sold 288,600 tons of washed coking coal, accounting for approximately 51.2% of total revenue for the fiscal period[30]. Financial Position - The group reported a net debt of HKD 1,852,000,000 and a net current liability of approximately HKD 1,131,000,000 as of September 30, 2021[42]. - The group’s cash and bank balance was HKD 53,100,000 as of September 30, 2021, compared to HKD 57,600,000 as of March 31, 2021, with a current ratio of 0.44[42]. - The company's total equity as of September 30, 2021, was HKD (1,852,015,000), an improvement from HKD (2,608,437,000) at the end of the previous period[98]. - The total assets for coal mining operations increased to HKD 3,715,979,000 as of September 30, 2021, up from HKD 3,355,777,000 as of March 31, 2021[123]. - The group incurred capital expenditures of approximately HKD 47,300,000 during the financial period, significantly higher than HKD 2,100,000 in the previous year[43]. Market Conditions - The company expects a decline in average annual growth rate for coking coal prices of -4.13% over the next four years, a shift from a previous estimate of 3.93%[15]. - Mongolia's coal exports to China decreased by 35.8% to 10.58 million tons in the first nine months of 2021 due to pandemic-related restrictions[25]. - The International Monetary Fund (IMF) forecasts global economic growth of 5.9% for 2021 and 4.9% for 2022, while the OECD revised its 2021 growth forecast down to 5.7%[54]. - China's GDP growth for Q3 2021 was only 4.9%, below the expected 5.2%, primarily due to soaring coal prices and power shortages[55]. - The company anticipates that coal exports to China will reach 36.5 million tons in 2022, as the government aims to recover from the pandemic's impact[58]. Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting[88]. - The company has adopted a custom code for securities trading, which is not less stringent than the standard code outlined in the listing rules[82]. - The board of directors collectively reviews and approves the structure and composition of the board, ensuring compliance with governance standards[79]. - The company has implemented measures to enhance corporate governance transparency, including guidelines for securities trading by directors and employees[83]. - The company did not recommend a mid-term dividend for this fiscal period, consistent with the previous year[63]. Challenges and Risks - The company continues to navigate challenges posed by the COVID-19 pandemic, impacting operations and coal export efficiency[5]. - The company is facing challenges due to strict border controls affecting coal transportation to China, which has been temporarily halted since October 2021[58]. - The company has no foreign exchange hedging policy but will monitor foreign exchange risks and consider hedging when necessary[51]. - The group anticipates potential adjustments to asset values if it cannot secure financing to meet financial obligations[106]. - The company has a provision of HKD 50,000,000 for a legal dispute with a former mining contractor, with the total claim amounting to approximately HKD 105,600,000[190].

Production and Sales Performance - For the fiscal year ending March 31, 2021, the company's coal production decreased by 37.5% to approximately 1,229,300 tons compared to 1,967,400 tons in the previous fiscal year[15]. - The total coal sales volume for the fiscal year was approximately 753,591 tons, a decline of 27.8% from 1,043,205 tons in the previous fiscal year[15]. - The company reported that approximately 675,800 tons of coking coal and 77,700 tons of thermal coal were sold during the fiscal year[15]. - The total coal production for the fiscal year was approximately 1,229,300 tons, down from 1,967,400 tons in the previous year, while the total coal sold was about 753,591 tons, compared to 1,043,205 tons previously[25]. - The company produced approximately 905,200 tons of coking coal and 324,100 tons of thermal coal during the fiscal year, down from 1,617,800 tons and 349,600 tons respectively in the previous year[50]. - Approximately 796,500 tons of raw coal were processed, resulting in about 782,300 tons of raw coking coal, with an average recovery rate of 98.2%[51]. - The company transported approximately 935,400 tons of raw coking coal from Mongolia to Xinjiang during the fiscal year[53]. Economic and Market Outlook - The World Bank forecasts a global economic growth of 5.6% in 2021, up from an earlier estimate of 4.1%[16]. - China's GDP growth for 2021 is projected to be above 6%, with a strong recovery expected in the steel demand driven by infrastructure investments[16]. - The company anticipates strong demand for domestic and imported coking coal in 2021, supported by China's economic growth policies[16]. - The company noted that the global steel demand is expected to grow by 4.1% in 2021, driven by China's economic recovery[16]. - The company expects a structural shortage of high-quality coking coal, indicating a favorable market outlook for the future[20]. - The company anticipates a market recovery in the second half of 2021, contingent on the effectiveness of domestic pandemic control measures[20]. Financial Performance - The company reported a revenue of HKD 858.4 million for the fiscal year, a significant decrease from HKD 1,125 million in the previous year, primarily due to the ongoing impact of the COVID-19 pandemic[26]. - The gross profit margin decreased to 36.0% from 42.6% in the previous year, attributed to increased production costs[28]. - The sales cost for the fiscal year was HKD 549.6 million, down from HKD 645.8 million, with cash costs at HKD 526.6 million and non-cash costs at HKD 23 million[27]. - The company recorded other income of HKD 39 million from the cancellation of a previously acquired iron ore exploration right, and HKD 34.2 million from a settlement agreement with a former contractor[29]. - The company recorded an impairment reversal of HKD 1,123,800,000 for the fiscal year, compared to HKD 592,300,000 in 2020[37]. - The company's revenue from coal sales to China and Mongolia was HKD 858.4 million, a decrease of 23.7% year-on-year[47]. Operational Challenges - The company faced strict border controls and health measures due to the COVID-19 pandemic, impacting coal production and export efficiency[13]. - The Mongolian government has implemented various economic stimulus measures to mitigate the impact of the COVID-19 pandemic, including tax exemptions[57]. - Mongolia's overall exports to China decreased by 19% in value due to the pandemic, with future export prospects dependent on effective pandemic control measures[46]. - The company’s coal transportation relies on a 311-kilometer road from Mongolia to the Xinjiang customs port, with potential disruptions affecting coal exports[100]. Governance and Corporate Structure - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[129]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience[131]. - The board is responsible for overseeing the overall business operations of the company[129]. - The company emphasizes the importance of high corporate governance standards to protect and enhance shareholder interests[117]. - The board has established a remuneration committee and an audit committee to enhance its functions and improve professional standards[148]. - The company maintains a website that provides comprehensive and accessible information regarding its operations and governance practices[169]. Risk Management - The company faces risks related to government regulations and policies that may encourage or hinder investment in the mining industry[84]. - The company may need substantial and ongoing capital investment for mining operations, and planned projects may not proceed as expected or achieve anticipated economic benefits[85]. - The company is sensitive to changes in Mongolian tax policies, which could impact profitability and operational sustainability[105]. - The company is subject to Mongolian corporate income tax rates of 10% on the first 6 billion Mongolian Tugrik and 25% on any income exceeding that threshold[102]. - Environmental regulations in Mongolia are stringent, and non-compliance could lead to fines or suspension of operations[97]. - Future environmental regulations in China are expected to become stricter, potentially increasing operational costs for the company[97]. Financial Position - As of March 31, 2021, the company reported a net debt of HKD 2,608,400,000 and a net current liability of approximately HKD 1,383,300,000[68]. - The company has a cash and bank balance of HKD 57,600,000 as of March 31, 2021, compared to HKD 61,800,000 in 2020, with a current ratio of 0.35[68]. - The company incurred capital expenditures of approximately HKD 57,700,000 during the fiscal year, down from HKD 81,800,000 in 2020[69]. - The company has a receivable of HKD 129,800,000 from the Mongolian government for refundable VAT as of March 31, 2021[71]. - The company has no pledged assets as of March 31, 2021, consistent with the previous year[76]. - The company's debt-to-asset ratio as of March 31, 2021, was 1.7, down from 1.9 in 2020[77]. Shareholder Engagement - The company has a structured process for shareholders to propose resolutions at the annual general meeting, requiring a written request from shareholders holding at least 20% of the voting rights[179]. - The company ensures that shareholders are notified of any proposed resolutions well in advance, adhering to a minimum notice period of 20 business days[178]. - The company has a dedicated communication channel for shareholders to submit inquiries, ensuring transparency and engagement[181]. - All shares of the company have the same voting rights and entitlement to any declared dividends[174]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a general meeting within two months of the request[175].

Financial Performance - For the six months ended September 30, 2020, the company reported a revenue of HKD 268.9 million, a significant decrease from HKD 800.1 million in the same period of 2019, primarily due to the impact of the COVID-19 pandemic[5]. - The company recognized a net loss of HKD 714.7 million due to fair value changes in the convertible bonds issued in the previous fiscal year[11]. - The gross profit for the same period was HKD 99,496 thousand, a decrease from HKD 365,312 thousand in 2019, indicating a decline of 73%[98]. - The loss attributable to owners of the company for the six months ended September 30, 2020, was HKD 1,007,693 thousand, compared to a loss of HKD 487,066 thousand in 2019, reflecting a 106% increase in losses[100]. - The total comprehensive loss for the period was HKD 1,006,919 thousand, compared to HKD 503,747 thousand in 2019, indicating a 99% increase in comprehensive losses[100]. Production and Sales - The company produced approximately 336,100 tons of raw coal during the period, down from 1,012,700 tons in 2019, and sold about 238,700 tons of coal compared to 696,100 tons in the previous year[4]. - The average selling price for coking coal was approximately HKD 1,194.0 per ton, down from HKD 1,288.1 per ton in 2019[5]. - The company sold 169,900 tons of washed coking coal during the fiscal period, accounting for approximately 76.0% of total revenue[28]. - The average recovery rate for raw coking coal processed was 92.1%, with approximately 272,100 tons produced during the fiscal period, down from 713,300 tons in the previous year[27]. Financial Position - As of September 30, 2020, the company reported a net debt of HKD 3,360,900,000 and a net current liability of approximately HKD 1,434,200,000[40]. - The company's total borrowings amounted to HKD 5,103,200,000 as of September 30, 2020, compared to HKD 4,136,300,000 on March 31, 2020[40]. - The company's cash and bank balances were HKD 51,700,000 as of September 30, 2020, down from HKD 61,800,000 on March 31, 2020[40]. - The company's debt-to-asset ratio was 2.4 as of September 30, 2020, compared to 1.9 on March 31, 2020[50]. - The company reported a net current liability of HKD 1,434,155 thousand, slightly up from HKD 1,432,654 thousand in the previous period[102]. Market Conditions - In the first nine months of 2020, China's coal production slightly increased by 0.6% to 1.81 billion tons, while coal mining and washing industry revenue decreased by 11.8% year-on-year[20]. - Mongolia's coal production in the first nine months of 2020 was 22.9 million tons, a decrease of 40.7% compared to the previous year, with exports dropping by 30.9% to approximately 19.9 million tons[22]. - The global crude steel production in the first nine months of 2020 was 1,347 million tons, a reduction of 3.2%, with China producing 782 million tons, accounting for 58% of the total[19]. - The company experienced a 66.4% decline in performance compared to the previous year due to the impact of COVID-19, with coal exports to China halted from February until late May[56]. Corporate Governance - The company has complied with the corporate governance code, with some deviations noted regarding the appointment of non-executive directors[76]. - The audit committee consists of three independent non-executive directors, ensuring appropriate professional qualifications and financial management expertise[86]. - The company has adopted a customized code for securities trading by directors, which is not less stringent than the standard code outlined in the listing rules[80]. - The board of directors is collectively responsible for reviewing and approving the structure, size, and composition of the board, as well as appointing directors[77]. Future Outlook - The average price of coking coal is projected to increase by 3.06% annually over the next four years, compared to a previous estimate of 0.18%[14]. - The company has established a dedicated team to explore new business opportunities to diversify its revenue base amid the pandemic's unpredictability[58]. - The company anticipates that strict preventive measures during transportation will continue to impact coal export processes[58]. - The Mongolian government is expected to actively promote mineral exports in the coming year to revitalize the economy, as the country is a major supplier of coking coal to China[23].

Production and Sales - The company's coal production increased by 10.9% to approximately 1,967,400 tons for the fiscal year, compared to 1,773,300 tons in the previous fiscal year[11] - Coal sales reached approximately 1,043,205 tons, including about 887,200 tons of coking coal, 155,900 tons of thermal coal, and 105 tons of raw coal, up from 676,666 tons in the previous fiscal year[11] - The company sold approximately 887,200 tons of premium coking coal and 155,900 tons of thermal coal during the fiscal year, compared to 597,500 tons and 79,000 tons respectively in the previous year[19] - Coking coal and thermal coal production reached approximately 1,617,800 tons and 349,600 tons respectively, compared to 918,400 tons and 854,900 tons in the previous year[45] - Approximately 1,567,300 tons of raw coal were processed, resulting in about 1,263,300 tons of raw coking coal, with an average recovery rate of 80.6%[46] Financial Performance - In the fiscal year, the company achieved revenue of HKD 1,125,000,000, an increase of approximately 44.8% compared to HKD 776,700,000 in the previous year, primarily due to increased sales volume[19] - The total sales cost for the fiscal year was HKD 645,800,000, up from HKD 440,900,000 in the previous year, aligning with the increase in sales volume[20] - The gross profit margin for the fiscal year decreased to 42.6% from 43.2% in the previous year, attributed to a decline in average selling prices[21] - The company faced a net loss primarily due to a fair value loss of HKD 33,000,000 from investments in a Hong Kong listed company, compared to HKD 30,500,000 in the previous year[22] - The group recorded revenue of HKD 1,125,000,000 from the sale of coking coal and thermal coal to customers in China and Mongolia, representing a significant increase of 44.8% compared to the previous year[44] Market Conditions and Economic Impact - The global economy is projected to contract by 5.2% in 2020 according to the World Bank, marking the most severe recession since World War II[12] - China's GDP growth for 2019 was recorded at 6%, the lowest in 29 years, but still within the government's target range of 6% to 6.5%[7] - Due to the COVID-19 pandemic, China's coal production in the first two months of 2020 decreased by approximately 6%, with raw coal output dropping by 6.3% year-on-year[12] - The company anticipates that the economic landscape will remain uncertain due to ongoing tensions between the US and China, alongside the effects of the pandemic[12] Operational Challenges - The company suspended coal exports to China due to border closures in response to the pandemic, which affected production and operations[9] - The company halted mining operations at major mines to mitigate financial impacts from the export suspension and maintain operational liquidity[9] - The company plans to continue a cautious and closely monitored strategy regarding its operations and production planning in response to changing market conditions[19] - The company is committed to maintaining strong performance in the new fiscal year despite challenges posed by the COVID-19 pandemic and ongoing uncertainties in the market[19] Regulatory and Environmental Factors - The company faces risks related to government regulations and policies that may affect mining industry investments[86] - Environmental regulations in Mongolia are stringent, and non-compliance could lead to fines or suspension of operations, impacting financial performance[96] - Future environmental regulations in China are expected to become increasingly stringent, potentially increasing operational costs for the group[96] Corporate Governance - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of skills and experience[123] - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member appointments[124] - The company has established a nomination policy to ensure a transparent process for appointing board members, allowing shareholders to nominate candidates[124] - The board has collectively reviewed and approved its structure, size, and composition, ensuring alignment with the company's corporate strategy[116] - The company has maintained high standards of corporate governance to protect and enhance shareholder interests[114] Financial Position and Debt - The group reported a net debt of HKD 2,354,000,000 and net current liabilities of approximately HKD 1,432,700,000 as of March 31, 2020[66] - The group’s cash and bank balance was HKD 61,800,000 as of March 31, 2020, compared to HKD 65,400,000 in 2019[66] - The group’s borrowings totaled HKD 4,136,300,000 as of March 31, 2020, down from HKD 5,358,100,000 in 2019[66] - As of March 31, 2020, the company's debt-to-asset ratio was 1.9, a decrease from 3.5 in 2019[75] Shareholder Engagement - The company held two shareholder meetings during the fiscal year, including the annual general meeting, where resolutions were presented for shareholder voting[161] - All shares of the company have the same voting rights and entitlement to any declared dividends[163] - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special meeting within two months of the request[164] Future Outlook - The company plans to gradually increase the supply of high-quality coking coal to customers in Xinjiang, contingent on the recovery from the pandemic[9] - The forecast for coal imports in 2020 is expected to decline by 6% compared to 2019, estimated at 282 million tons, with 72 million tons being coking coal[43] - The forecasted average annual growth rate for coking coal prices over the next four years is projected at 0.18%, a significant improvement from -3.88% in the previous year[32]

Financial Performance - The company reported revenue of HKD 800,100,000 for the six months ended September 30, 2019, representing a 222.0% increase compared to HKD 360,400,000 in the same period last year[8]. - The gross profit increased to HKD 365,300,000, with a gross profit margin of 45.7%, up from 42.4% in 2018, attributed to lower mining costs per ton[11]. - The company incurred a loss attributable to owners of HKD 487,066,000, compared to a loss of HKD 236,145,000 in the previous year, reflecting a 106% increase in losses[96]. - The total comprehensive loss for the period was HKD 503,747,000, compared to HKD 255,246,000 in the prior year, marking a 97% increase[96]. - The company recorded a net cash inflow from operating activities of 221.6 million HKD for the financial period, compared to 113 million HKD for the same period in the previous year[47]. - The company reported a pre-tax loss of HKD 424,237,000 for the six months ended September 30, 2019[146]. Production and Sales - The total coal production during the period was approximately 1,012,700 tons, an increase from 863,700 tons in 2018, with sales of approximately 696,100 tons compared to 288,200 tons in the previous year[7]. - The company benefited from increasing demand for coking coal in China, with sales from Xinjiang customers surging by approximately HKD 437.2 million compared to the previous year[27]. - The group sold 403,400 tons of washed coking coal, accounting for about 50.4% of the group's revenue during the fiscal period[31]. - The average selling price for premium coal was approximately HKD 1,288.1 per ton, compared to HKD 1,274.0 per ton in the previous year[8]. Financial Position - As of September 30, 2019, the company reported net liabilities of approximately 4.62 billion HKD and net current liabilities of about 5.19 billion HKD, but believes it can meet its financial obligations due to support from major shareholders[47]. - The company's total liabilities amounted to HKD 5,970,449,000, compared to HKD 5,620,370,000, indicating a rise in financial obligations[100]. - The company has a total borrowing of 5.63 billion HKD as of September 30, 2019, which includes convertible bonds and loans from a major shareholder[47]. - The debt-to-asset ratio increased to 4.0 as of September 30, 2019, compared to 3.5 as of March 31, 2019[55]. Legal and Regulatory Matters - The company has ongoing legal disputes with Thiess Mongolia LLC regarding a claim of $13.5 million, with no substantial progress reported since 2013[39]. - The Mongolian Parliament revised the Mineral Law, which previously required only mining license holders to pay usage fees based on sales prices, now includes all parties involved in the sale, transport, or use of minerals, but this change was deemed unconstitutional by the Constitutional Court, leading to ongoing debates[37]. Corporate Governance - The company has not purchased, sold, or redeemed any of its listed securities during the financial period[76]. - The board acknowledges the importance of maintaining high standards of corporate governance to protect and enhance shareholder interests[78]. - The company did not establish a nomination committee as required by the corporate governance code, but believes that the collective review by the board is sufficient[79]. - All directors confirmed compliance with the standard code regarding securities trading during the financial period[86]. Market Conditions - The overall demand for coal in China is expected to decline due to a weak external economic environment and government regulations on the real estate market[60]. - The global trade growth forecast for 2019 and 2020 has been significantly downgraded to 1.2% and 2.7%, respectively, due to trade disputes and slowing economic growth[58]. - In the first nine months of 2019, China's crude steel production reached 748 million tons, accounting for 53.8% of global production, with an 8.4% increase compared to the same period in 2018[23]. Investments and Assets - The company has received a financing commitment of HKD 1,900,000,000 from a major shareholder, which is expected to support liquidity for at least the next 12 months[107]. - The company recognized an impairment loss of HKD 307,200,000 during the period, compared to no impairment in 2018[19]. - Non-current assets decreased to HKD 616,545,000 as of September 30, 2019, down from HKD 903,748,000 as of March 31, 2019[100]. - The exploration and evaluation assets increased to HKD 2,811,000 as of September 30, 2019, from HKD 270,000 at the end of March 2019, reflecting a significant rise[177]. Employee and Operational Matters - The company employed a total of 775 full-time employees across Hong Kong, Mongolia, and China as of September 30, 2019[87]. - The company’s administrative expenses increased to HKD 74,532,000 from HKD 64,356,000, reflecting a 16% rise[93]. - The company has ongoing legal disputes with Thiess Mongolia LLC regarding a claim of $13.5 million, with no substantial progress reported since 2013[39].

Production and Sales Performance - The company reported a coal production increase of 33.5% to approximately 1,773,300 tons for the fiscal year, compared to 1,328,500 tons in the previous year[9]. - Total coal sales rose to approximately 676,625 tons, up from 594,700 tons year-on-year, including coking coal, raw coal, and thermal coal[9]. - The total sales volume included approximately 597,483 tons of coking coal, 78,976 tons of thermal coal, and 166 tons of raw coal, with average prices per ton of HKD 1,293.8, HKD 45.3, and HKD 693.1 respectively[18]. - The group processed approximately 999,000 tons of raw coal in the fiscal year, generating about 776,100 tons of raw coking coal, with an average recovery rate of 77.7%[39]. - The group sold 364,074 tons of washed coking coal to a major customer in Xinjiang, accounting for approximately 61.3% of the group's revenue for the fiscal year[42]. Financial Performance - The company reported a significant profit growth of 60% in the building materials sector during 2018, despite broader economic challenges[6]. - The company's revenue for the fiscal year reached HKD 776.7 million, a 21.9% increase from HKD 637.4 million in 2018, driven by higher sales volume and average prices of coking coal[18]. - Sales costs increased to HKD 440.9 million from HKD 322.1 million in 2018, attributed to higher sales volume and increased transportation costs[19]. - Gross profit slightly increased to HKD 335.8 million, with a gross margin decline to 43.2% from 49.5% in 2018[20]. - The company recognized a fair value loss of HKD 30.5 million from investments in Hong Kong listed companies, down from HKD 40.6 million in 2018[21]. Economic and Market Conditions - The global steel demand is projected to reach 1,735 million tons in 2019, reflecting a 1.3% increase from 2018, despite ongoing trade tensions[11]. - The coking coal market in China remains stable, but uncertainties exist regarding potential government import restrictions[11]. - The company acknowledges the impact of external economic conditions, including trade tensions between the US and China, on investment sentiment and overall performance[11]. - China's GDP growth slowed to 6.6% in 2018, the lowest in 28 years, impacting the demand for coking coal[32]. Debt and Financing - The company is in preliminary discussions for potential refinancing of convertible bonds amounting to HKD 3,467,015,000, which are set to mature in November[9]. - The company aims to reach a preliminary agreement with bondholders before the maturity of the convertible bonds, focusing on the best interests of shareholders[9]. - As of March 31, 2019, the company reported net current liabilities of approximately HKD 5,009 million and total net debt of HKD 4,112.6 million[57]. - The company has a financing commitment of HKD 1.9 billion from a major shareholder, which remains available until March 31, 2021[57]. Operational Risks and Challenges - The company faces risks related to the development of mining projects, which require significant time and capital investment, and may not achieve expected economic benefits[75][77]. - The company’s operations are dependent on the fuel supply situation in Mongolia, which poses a risk to operational continuity[88]. - The company’s coal transportation relies on a 311-kilometer road connecting its mine to the border, and any damage to this road could halt coal transport[88]. - The company is sensitive to changes in Mongolia's tax policies, which could affect profitability and business sustainability[95]. Corporate Governance - The company has implemented corporate governance practices in compliance with the listing rules, although it deviated from certain provisions regarding the establishment of a nomination committee[107]. - The board of directors collectively reviews and approves the structure and composition of the board, ensuring shareholder interests are maintained[108]. - The company has adopted a custom code for securities trading that is not less stringent than the standard code outlined in the listing rules[114]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors, responsible for overseeing the company's overall business operations[118]. Stakeholder Relationships and Community Engagement - The company maintains good relationships with stakeholders, including various government agencies and local communities[54]. - The company is actively participating in a UN-funded project aimed at reducing land degradation and introducing protective measures in western Mongolia[53]. - Key relationships with stakeholders and human resource management policies are discussed, along with community engagement and contributions related to environmental and social responsibilities[197].