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].