Financial Performance - For the six months ended September 30, 2024, the company reported revenue of HKD 1,699,926, an increase of 9.1% from HKD 1,557,257 in the same period last year[1] - Gross profit for the same period was HKD 640,711, representing a 10.7% increase compared to HKD 578,732 in the previous year[1] - The company recorded a loss attributable to equity holders of HKD 442,906, an improvement from a loss of HKD 546,838 in the prior year[3] - The net loss for the period was HKD 442,906, with a basic and diluted loss per share of HKD 2.35, compared to HKD 2.91 in the previous year[1] - The company reported a loss attributable to ordinary equity holders of HKD 442,906,000 for the six months ended September 30, 2024, compared to a loss of HKD 546,838,000 for the same period in 2023, indicating a decrease in losses[35] Assets and Liabilities - The total assets decreased to HKD 2,409,021 from HKD 2,305,481 as of March 31, 2024, indicating a decline in asset value[5] - The company’s non-current assets decreased significantly from HKD 2,053,437 to HKD 1,505,047, reflecting a reduction in property, plant, and equipment[5] - The company’s total liabilities increased to HKD 7,160,847 from HKD 6,834,139, indicating a rise in financial obligations[5] - The group reported a net loss of approximately HKD 442,900,000 for the period ending September 30, 2024, with net liabilities of about HKD 3,121,200,000 and net current liabilities of approximately HKD 4,751,800,000[11] - Trade receivables as of September 30, 2024, amounted to HKD 386,937,000, a decrease from HKD 511,398,000 as of March 31, 2024[43] - The company reported a significant increase in trade payables, with amounts due within 30 days totaling HKD 150,539,000 as of September 30, 2024, compared to HKD 164,312,000 as of March 31, 2024[46] - The total debt portion of the convertible bonds increased to HKD 3,733,129,000 as of September 30, 2024, from HKD 3,491,687,000 as of March 31, 2024[47] - The company reported net liabilities of HKD 3.12 billion and net current liabilities of approximately HKD 4.75 billion as of September 30, 2024[92] Cash Flow and Financing - The company has prepared cash flow forecasts covering at least 12 months from September 30, 2024, indicating a focus on future liquidity management[9] - As of September 30, 2024, the group has convertible bonds and loan notes maturing within one year amounting to HKD 3,740,700,000 and HKD 642,400,000, respectively, along with cash and cash equivalents of HKD 75,500,000[10] - The group has committed to refinancing discussions with bondholders before the maturity dates of the convertible bonds and loan notes[10] - The group’s financial statements are prepared on a going concern basis, contingent on successful refinancing[11] - The company has a total borrowing of HKD 5.22 billion as of September 30, 2024, which includes convertible bonds, loan notes, and advances from a major shareholder[92] Operational Performance - Revenue from coal mining operations for the six months ending September 30, 2024, was HKD 1,699,926,000, with a segment loss of HKD 76,440,000[16] - The average selling price of coking coal decreased to HKD 1,685.7 per ton in the current fiscal period, down from HKD 1,714.2 per ton in the previous year, reflecting a cautious market sentiment due to oversupply in China[58] - The average selling price of thermal coal rose to HKD 44.0 per ton, up from HKD 19.3 per ton in the previous year, indicating a positive trend in this segment[58] - The company sold approximately 1,006,900 tons of coking coal, 24,300 tons of thermal coal, and 28 tons of raw coal during the fiscal period, compared to 906,700 tons, 141,800 tons, and 98 tons respectively in the previous year[58] - The production of coking coal and thermal coal reached approximately 2,035,600 tons and 2,208,700 tons respectively, compared to 1,582,200 tons and 1,098,400 tons in 2023[74] Impairment and Taxation - The company recognized an impairment loss of HKD 598,493,000 related to its Huoshotou mining assets for the six months ended September 30, 2024, compared to an impairment loss of HKD 660,943,000 in 2023, showing a slight improvement[40] - The total tax expense for the six months ended September 30, 2024, was HKD 155,956,000, a decrease from HKD 275,965,000 in 2023, primarily due to lower taxable profits[29] - The company has made a provision of HKD 29,900,000 for uncertain tax positions as of September 30, 2024, reflecting ongoing tax disputes[33] - An additional tax provision of HKD 132,100,000 was made due to a change in tax rate from 15% to 25% for a subsidiary, impacting the fiscal year 2023[87] - MoEnCo LLC received a revised tax demand from the Mongolian tax authority totaling approximately HKD 929.8 million due to alleged underreporting of sales revenue[88] Market and Economic Conditions - In the first half of 2024, China's GDP grew by 5%, reaching RMB 61.68 trillion (USD 8.49 trillion), with retail sales increasing by 3.7%[69] - In the first nine months of 2024, global crude steel production was 1,394 million tons, a decrease of 1.9% year-on-year, with China's production at 768.5 million tons, down 3.6%[71] - Global economic growth is projected to stabilize at 3.2% in 2024 and 2025, driven by declining inflation and looser monetary policies across various economies[106] - China's steel demand is forecasted to decline by 3% in 2024 and by an additional 1% in 2025 due to the current real estate market conditions[107] - Mongolia's coal exports reached 59.1 million tons in the first nine months of 2024, a 26.3% increase year-on-year, with a target of 78.1 million tons for the full year[109] Corporate Governance - The board emphasizes the importance of maintaining high corporate governance standards to protect and enhance shareholder interests[114] - The audit committee consists of three independent non-executive directors, ensuring appropriate professional qualifications and financial management expertise[118] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2024, with no objections to the accounting policies adopted by the company[118]

Financial Performance - In the fiscal year ending March 31, 2024, the company achieved a coal export volume of 2,707,100 tons, marking a new milestone despite a decrease in average selling price from HKD 2,123.4 per ton to HKD 1,796.5 per ton[11]. - The company's raw coal production surged by 164.95% to approximately 7,112,200 tons, compared to 2,864,400 tons in the previous fiscal year[11]. - The total coal sales volume for the fiscal year was approximately 1,873,600 tons, representing a 14.94% increase from 1,630,000 tons sold in the previous fiscal year[11]. - The average selling price of coking coal decreased, impacting the company's revenue despite increased export volumes[11]. - The total sales cost for the fiscal year was HKD 1,986,300,000, an increase from HKD 1,820,200,000 in the previous year[21]. - The gross profit margin remained stable at approximately 37.4%, compared to 37.3% in the previous year[22]. - Revenue from coal sales to customers in China and Mongolia rose by 9.22% to HKD 3,173,200,000 for the fiscal year[36]. - The company recorded a capital expenditure of approximately HKD 122.4 million during the fiscal year, down from HKD 227.2 million in the previous year[64]. - The company reported net liabilities of HKD 2,685.3 million and net current liabilities of approximately HKD 4,924.3 million as of March 31, 2024[62]. - The company has cash and bank balances of HKD 97.8 million as of March 31, 2024, compared to HKD 60.3 million in the previous year[63]. Market and Economic Conditions - Mongolia's GDP growth rate for 2023 was 7.1%, with a projected growth rate of 4.8% for 2024, driven by strong coal exports and a rebound in private consumption[8]. - Mongolia's coal production in 2023 reached approximately 81 million tons, a year-on-year increase of 118%, with exports to China amounting to 66.38 million tons, up 123% from the previous year[9]. - China's GDP growth for 2023 was 5.2%, exceeding the government's target, supported by a recovery in industrial and service sectors[7]. - The total trade volume between Mongolia and China reached approximately USD 17.6 billion in 2023, accounting for 72% of Mongolia's total trade, reflecting a 29% increase from 2022[8]. - The company anticipates that global economic growth will be 3.2% in 2024 and 2025, with Asia contributing approximately 60% of this growth[12]. Production and Operations - The company is focused on expanding coal production and exports to meet market demand, while navigating geopolitical risks and economic uncertainties[12]. - The company achieved record sales performance, selling about 1,742,900 tons of premium coking coal, up from 1,351,600 tons in the previous year[20]. - The production of coking coal and thermal coal reached approximately 3,101,400 tons and 4,010,800 tons, respectively, compared to 2,481,900 tons and 382,500 tons in 2023[37]. - Approximately 1,900,600 tons of raw coal were processed, resulting in about 1,536,500 tons of raw coking coal, with an average recovery rate of 80.84%[38]. - The first quarter of 2024 saw a 28.14% increase in coal exports from Mongolia to 17.66 million tons compared to the same period last year[35]. Regulatory and Compliance - The new Environmental Impact Assessment Regulation requires project implementers to assess both environmental and social impacts, enhancing the standards for environmental assessments[51]. - The company is committed to sustainable development and environmental protection, focusing on compliance with local laws and regulations[52]. - Environmental regulations in Mongolia are stringent, with potential fines or suspension of operations for non-compliance, which could significantly impact the group's business and financial performance[86]. - The group must comply with environmental laws, and failure to do so could lead to significant operational and financial repercussions[86]. Governance and Corporate Structure - The company has a comprehensive governance structure in place to enhance shareholder value and ensure compliance with corporate governance codes[101]. - The board of directors consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[110]. - The company has implemented a custom trading code for directors that is stricter than the standard code outlined in the listing rules[106]. - The company has established a continuous operation procedure to identify, assess, and manage significant risks faced by the group[153]. - The independent auditor, Ernst & Young, was appointed at the 2023 annual general meeting, responsible for providing an independent opinion on the financial statements[146]. Risks and Challenges - The group faces risks related to coal market cyclicality and price volatility, which could impact future business performance[76]. - The group is sensitive to Mongolia's tax policies and incentives, with potential impacts on profitability if tax rates are increased or policies tightened[94]. - Changes in China's coal import policies could adversely affect the group's operations, as all coal customers are located in Xinjiang[89]. - The group faces operational risks due to reliance on contractors for mining activities and the potential for disruptions in fuel supply or transportation routes, particularly through the 311 km Huoshot Road to Xinjiang[88]. Future Outlook - The company plans to construct a new coal processing plant with an annual capacity of 5 million tons to enhance production efficiency and reduce costs[15]. - The company anticipates that China's coking coal imports will remain high due to ongoing domestic supply issues[15]. - The company plans to closely monitor market conditions and adjust operational plans accordingly to optimize coal production and transportation[42].

Financial Performance - Revenue for the fiscal year ending March 31, 2024, was HKD 3,173,215,000, representing a 9.2% increase from HKD 2,905,309,000 in the previous year[3] - Gross profit increased to HKD 1,186,888,000, up 9.4% from HKD 1,085,096,000 year-over-year[3] - The company reported a profit attributable to shareholders of HKD 1,677,921,000, compared to a loss of HKD 1,603,099,000 in the previous year[3] - Basic and diluted earnings per share for the year were HKD 8.92, a significant improvement from a loss of HKD 8.52 per share in the prior year[3] - The segment profit for coal mining was HKD 2,018,216,000 for the year ending March 31, 2024, a significant recovery from a segment loss of HKD 358,250,000 in the previous year[26] - The company reported a total revenue of HKD 3,173,215,000 for the year ending March 31, 2024, compared to HKD 2,905,309,000 for the previous year, representing an increase of approximately 9.2%[26] Assets and Liabilities - Non-current assets increased to HKD 2,305,481,000, up from HKD 1,161,834,000 in the previous year, indicating a growth of 98.2%[6] - Current assets rose to HKD 1,909,880,000, compared to HKD 1,638,993,000, reflecting a 16.5% increase[6] - The company reported a net current liability of HKD 4,924,259,000, worsening from HKD 784,950,000 in the previous year[6] - Total liabilities increased significantly to HKD 6,834,139,000 from HKD 2,423,943,000, marking a 182.5% rise[6] - Total assets increased to HKD 4,215,361,000 as of March 31, 2024, up from HKD 2,800,827,000 a year earlier, indicating a growth of approximately 50.7%[28][29] - The total liabilities decreased slightly to HKD 6,900,614,000 as of March 31, 2024, compared to HKD 7,137,673,000 in the previous year[28][29] Cash Flow and Financing - The company is actively seeking to refinance its convertible bonds and loan notes due in 2025 and 2024, respectively, to manage its debt obligations[10] - Future cash flow estimates are based on the assumption of successful negotiations with bondholders before the maturity dates[11] - The company received financing of HKD 1,900,000,000 from Mr. Lu, with an outstanding balance of HKD 1,006,700,000 as of March 31, 2024, including principal of HKD 968,400,000 and accrued interest of HKD 38,300,000[12] - The company has committed to not requesting repayment of the loan principal and accrued interest until it has sufficient cash available, ensuring liquidity is not affected[12] - The company plans to negotiate refinancing with holders of convertible bonds and loan notes totaling HKD 4,244,700,000, which are due within one year[69] Tax and Regulatory Matters - The company plans to appeal against the revised tax assessment from the Mongolian tax authority, which adjusted the total tax payable to approximately HKD 929,800 thousand[40] - The company has recognized an additional tax provision of HKD 273,000 thousand as of March 31, 2024, due to uncertain tax positions[40] - MoEnCo received a tax demand letter from the Mongolian tax authority for approximately HKD 406,400,000 (USD 52,100,000) related to tax audits from 2017 to 2020, which includes additional taxes and penalties[111] - Following an appeal, MoEnCo received a revised tax demand letter adjusting the total tax owed to approximately HKD 929,800,000, primarily due to claims of underreported sales revenue[112] Operational Highlights - Mongolian Energy achieved record sales of approximately 1,742,900 tons of coking coal in the fiscal year, up from 1,351,600 tons in 2023[75] - The average selling price for coking coal decreased to approximately HKD 1,796.5 per ton from HKD 2,123.4 per ton in 2023[75] - The company completed approximately 17,570,900 cubic meters of stripping works, with coking coal and thermal coal production of approximately 3,101,400 tons and 4,010,800 tons, respectively, compared to 2,481,900 tons and 382,500 tons in the previous year[92] - The company transported approximately 2,707,100 tons of raw coking coal from Mongolia to Xinjiang during the fiscal year[94] - The company sold approximately 945,500 tons of washed coking coal to its largest customer, accounting for about 54.04% of the company's revenue for the fiscal year[96] Governance and Compliance - The company has adhered to the corporate governance code, with the board recognizing the importance of maintaining high governance standards to protect shareholder interests[132] - The audit committee consists of three independent non-executive directors, ensuring appropriate professional qualifications and financial management expertise[136] - The company has not engaged in the purchase, sale, or redemption of its listed securities during the fiscal year[130] Market and Economic Outlook - The global economic growth forecast for 2024 and 2025 is projected at 3.2%, with approximately 60% of this growth expected to come from Asia[124] - China's GDP growth target for 2024 is set at 5%, but challenges remain, particularly in the real estate sector, which continues to exert pressure[124] - Global steel demand is expected to increase by 1.7% in 2024, with stainless steel consumption projected to grow by 3.6%[125] - China's coal imports reached a historical high last year, driven by price advantages and slow domestic production, with imports expected to continue increasing in 2024[127]

Production and Sales - For the six months ending September 30, 2023, Mongolia Energy Corporation produced approximately 2,680,600 tons of raw coal, an increase of 41.5% compared to 1,894,300 tons in the same period of 2022[9]. - The company sold approximately 1,048,598 tons of coal during this period, up from 968,800 tons in 2022, representing a 8.3% increase[9]. - The total production of coking coal and thermal coal was approximately 1,582,200 tons and 1,098,400 tons, respectively, compared to 1,429,000 tons and 465,300 tons in the previous year[33]. - The average recovery rate for processed raw coal was 82.6%, with approximately 784,400 tons of raw coking coal produced from 950,100 tons of raw coal processed[36]. - The company completed approximately 8,927,100 cubic meters of stripping work during the fiscal period, compared to 8,814,200 cubic meters in the previous year[33]. Financial Performance - Revenue decreased by 16.6% to HKD 1,557,300,000, down from HKD 1,866,200,000 in the previous year due to a decline in average coal prices[10]. - The gross profit margin for the period was approximately 37.2%, down from 42.5% in the previous year, primarily due to lower average selling prices[13]. - The company reported a revenue of HKD 1,557.3 million from the sale of coking coal, thermal coal, and raw coal, representing a 16.6% decrease compared to the previous fiscal period[32]. - Gross profit for the same period was HKD 578,732, down 27.0% from HKD 792,276 in the previous year[91]. - The company reported a loss attributable to equity holders of HKD 546,838, an improvement of 26.7% from a loss of HKD 745,949 in 2022[93]. Costs and Expenses - The cost of sales for the period was HKD 978,500,000, a decrease from HKD 1,074,000,000 in 2022, with cash costs at HKD 947,000,000[12]. - Administrative expenses increased significantly due to provisions for tax penalties following a tax audit by the Mongolian tax authority[14]. - The total finance costs increased to HKD 339,164,000 in 2023 from HKD 293,491,000 in 2022, primarily due to higher interest expenses on convertible bonds[119]. - Employee benefits expenses decreased to HKD 66,897,000 in 2023 from HKD 72,703,000 in 2022, showing a reduction in overall personnel costs[120]. Impairment and Fair Value Changes - The impairment loss for the fiscal period was HKD 660.9 million, an increase from HKD 548.6 million in the previous year, primarily due to a 25% drop in the average price of coking coal[21]. - The company recognized a gain of HKD 326,300,000 from the fair value change of convertible bonds, compared to a loss of HKD 418,600,000 in the previous year[15]. - The company recognized an impairment loss of HKD 660,943,000 on its Huoshotuo related assets, which is an increase from the impairment loss of HKD 548,597,000 in 2022[134]. Assets and Liabilities - As of September 30, 2023, the company reported net liabilities of HKD 4,915,000,000 and net current liabilities of approximately HKD 747,900,000[49]. - The company has cash and bank balances of HKD 75,600,000 as of September 30, 2023, compared to HKD 60,300,000 as of March 31, 2023, with a current ratio of 0.76[49]. - The total current assets increased to HKD 2,339,201 from HKD 1,638,993, reflecting a growth of 42.7%[95]. - Current liabilities rose to HKD 3,087,123, up from HKD 2,423,943, indicating a 27.4% increase[95]. - The total liabilities as of September 30, 2023, included net debt of approximately HKD 4,915,000,000, indicating a challenging financial position[105]. Shareholder Information - As of September 30, 2023, Mr. Lu holds a total of 634,324,270 shares, representing 337.18% of the issued share capital[69]. - Cheng Yu Tung Family (Holdings) Limited and its affiliates collectively hold 2,698,101,424 shares, accounting for 1,434.20% of the issued share capital[72]. - The total equity held by major shareholders exceeds 5% of the issued share capital, indicating significant ownership concentration[72]. - The company has not granted any stock options under the 2022 Share Option Scheme during the financial period[75]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2023[89]. - The company has adhered to the corporate governance code principles and provisions, with a noted exception regarding the attendance of the chairman at the annual general meeting[79]. - The company emphasizes the importance of high-level corporate governance practices to protect and enhance shareholder interests[79]. Market and Economic Conditions - The average selling price for premium coal was approximately HKD 1,714.2 per ton, down from HKD 2,224.3 per ton in 2022, reflecting a significant price drop[10]. - The expected average annual growth rate for coking coal prices over the next four years is projected to be -6.63%[25]. - The comprehensive profit of China's coal mining and washing industry decreased by 26.5% year-on-year to RMB 578.3 billion in the first nine months of 2023[31]. - The global economic growth is expected to slow down, with China's GDP growth forecast revised down from 5.5% to 5.1% for 2023[60].

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 蒙古能源有限公司* （於百慕達註冊成立之有限公司） （股份代號：276） 截至二零二三年九月三十日止六個月 中期業績 蒙古能源有限公司（「本公司」）之董事會（「董事會」）謹此宣佈本公司及其附屬公司（「本集 團」）截至二零二三年九月三十日止六個月（「本財政期間」）之簡明綜合業績連同去年同期 之比較數字如下： 簡明綜合損益表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 收入 3 1,557,257 1,866,241 ...

Production and Sales Performance - For the fiscal year ending March 31, 2023, the company's coal production increased by 56.9% to approximately 2,864,400 tons compared to 1,825,300 tons in the previous fiscal year[10]. - The company's coal sales volume reached approximately 1,630,000 tons, representing a 62.7% increase from 1,001,800 tons in the previous fiscal year[10]. - The company produced approximately 2,864,400 tons of raw coal in the fiscal year, an increase from 1,825,300 tons in 2022, and sold about 1,630,000 tons of coal, up from 1,001,800 tons in the previous year[18]. - The production of coking coal and thermal coal was approximately 2,481,900 tons and 382,500 tons, respectively, compared to 1,390,500 tons and 434,800 tons in 2022[36]. - The company sold approximately 710,000 tons of premium coking coal to its largest customer, accounting for about 53.6% of the company's revenue for the fiscal year[39]. Financial Performance - The company's revenue reached HKD 2,905,300,000 in the fiscal year, a significant increase from HKD 1,562,700,000 in 2022, driven by improved cross-border policies and increased coal sales[19]. - The average selling price for premium coal was approximately HKD 2,123.4 per ton, compared to HKD 1,918.4 per ton in 2022, while the average price for thermal coal was HKD 55.4 per ton, up from HKD 52.3 per ton[19]. - The sales cost for the fiscal year was HKD 1,820,200,000, an increase from HKD 948,000,000 in 2022, primarily due to increased sales volume and inflationary pressures[20]. - The gross profit margin for the fiscal year was approximately 37.3%, down from 39.3% in 2022, influenced by rising sales costs and impairment losses on outdated thermal coal[21]. - Revenue from coal sales to customers in China and Mongolia reached HKD 2,905,300,000, an increase of 85.9% compared to the previous fiscal year[35]. Economic Outlook - The company anticipates a global economic growth slowdown to 2.8% in 2023, with a rebound expected to 3.0% in 2024[11]. - The company aims for a GDP growth target of approximately 5% in China as the country implements post-COVID reopening policies[11]. - Mongolia's GDP is projected to grow from 2.5% in 2022 to 5% in 2023, supported by increased coal exports to China following the easing of COVID-19 restrictions[13]. - The global GDP growth rate for 2022 was reported at 3.4%, with China's GDP growth at 3%, the lowest in nearly half a century[6]. - The company noted that the geopolitical tensions and banking crises in the US and Europe pose risks to global economic stability in 2023[11]. Market Dynamics - The global steel demand growth rate is projected to be 2.3% for 2023 and 1.7% for 2024, with China's steel demand expected to grow by 2% this year[12]. - The company operates in a cyclical coal market, heavily influenced by global supply and demand, particularly in China[70]. - The company faces risks from potential changes in coal import policies in Xinjiang, which could adversely affect operations[83]. - The company is exploring alternative measures to secure additional washing capacity due to delays in a coal washing plant project in Xinjiang[28]. - The company plans to continue increasing its focus on coal exports to China to mitigate potential unforeseen challenges in the global market[13]. Regulatory and Compliance Issues - The company’s mining operations are subject to extensive government regulations, which may change and impact operations[73]. - The company’s coal mining licenses are valid for an initial period of 30 years, with options for two additional 20-year renewals[74]. - The company is sensitive to changes in Mongolia's tax policies, which could affect profitability and operational sustainability[88]. - Environmental regulations in Mongolia are stringent, and non-compliance could lead to fines or suspension of operations, impacting financial performance[80]. - The company has established an environmental management team to ensure compliance with Mongolian environmental laws and regulations[53]. Corporate Governance - The company has adopted a board diversity policy to enhance the composition of the board, considering factors such as gender, age, and professional experience[107]. - The board currently consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[106]. - The company has implemented a custom code for securities trading that is stricter than the standard code outlined in the listing rules[101]. - The company has established mechanisms to maintain the independence of the board and ensure informed decision-making[111]. - The board is responsible for maintaining an effective risk management and internal control system to protect shareholder investments and group assets[148]. Risk Management - The company faces risks related to capital investment in mining, which may exceed original budgets and not achieve expected economic viability[72]. - The company relies on multiple contractors for mining activities, and any unforeseen issues could severely impact operations, particularly if fuel supply from Mongolia is disrupted[82]. - The company’s operations are subject to the risk of license revocation if it fails to comply with mining regulations or environmental laws[81]. - The internal auditor employed a risk-based approach to evaluate the adequacy, effectiveness, and compliance of control measures, with results reported to the audit committee[149]. - The company does not have a foreign exchange hedging policy but will monitor foreign exchange risks and consider hedging when necessary[64]. Shareholder Relations - The company ensures that all shares have equal voting rights and entitlement to dividends, as outlined in its articles of association and Bermuda company law[153]. - 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[154]. - The company amended its articles of association to comply with core shareholder protection standards and allow hybrid or electronic meetings[160]. - The company has a commitment to transparency, allowing shareholders to submit written inquiries to the company secretary[159]. - The company has not revised its dividend policy during the fiscal year, considering various financial factors[118].

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].