SHOUGANG RES(00639)

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首钢资源(00639) - 2022 - 年度财报

2023-04-27 09:09
Financial Performance - For the year ended December 31, 2022, the Group reported revenue of HK$8,214,719,000, representing a 16% increase from the previous year[16] - Gross profit for the same period was HK$5,289,594,000, with a gross profit margin of 64%, up 3% from 2021[16] - Profit attributable to owners of the Company reached HK$2,715,374,000, reflecting a 7% increase year-over-year[16] - EBITDA for 2022 was HK$5,414,715,000, marking a 14% growth compared to 2021[16] - Basic earnings per share increased to 53.75 HK cents, a 7% rise from the previous year[16] - The Group recorded a historical high profit for the year ended December 31, 2022[17] - The Group's net profit hit HK$3.3 billion, an increase of 8% YoY, with net profit attributable to Shareholders amounting to HK$2.7 billion, an increase of 7% YoY[52] - The net profit for the year was approximately HK$3,308 million, representing an increase of approximately 8% YoY, while profit attributable to the owners was approximately HK$2,715 million, up 7% YoY[75] Dividends - The Group declared a total dividend per share of 43.0 HK cents, an 8% increase from 2021[16] - The interim dividend increased significantly by 88% to 15.0 HK cents, while the proposed final dividend decreased by 13% to 28.0 HK cents[16] - The Board of Directors recommended a final dividend of 28 Hong Kong cents per ordinary share for 2022, reflecting the Group's strong operating results[58] Production and Sales - The Group operates three premium coking coal mines and three coal preparation plants in Shanxi Province, China[3] - In 2022, the Group produced 5.25 million tonnes of raw coking coal, a YoY increase of 2%, reaching its annual approved production capacity[52] - The sales volume of clean coking coal reached 3.32 million tonnes, an increase of 1% YoY, with self-produced clean coking coal sales volume increasing approximately 4% YoY[52] - The average selling price of clean coking coal reached RMB2,402/tonne, representing a 19% YoY increase[52] - The production of clean coking coal was approximately 3.23 million tonnes in 2022, a 1% increase from 3.20 million tonnes in 2021[63] - Sales volume of self-produced clean coking coal increased by 4% year-on-year after excluding external purchases, with clean coking coal sales accounting for 100% of the Group's revenue[65] Financial Position - Total assets decreased by 5% from HK$24,779,977,000 in 2021 to HK$23,463,484,000 in 2022[19] - Cash and cash equivalents decreased by 6% from HK$6,425,886,000 in 2021 to HK$6,013,623,000 in 2022[19] - Total liabilities decreased by 15% from HK$5,631,759,000 in 2021 to HK$4,786,265,000 in 2022[19] - Total equity decreased by 2% from HK$19,148,218,000 in 2021 to HK$18,677,219,000 in 2022[19] - Current ratio improved by 20% from 2.69 times in 2021 to 3.23 times in 2022[19] - The Group maintained a healthy financial position with free bank balances and cash of approximately HK$6,014 million as of December 31, 2022[82] - As of December 31, 2022, the Group had no borrowings, resulting in a gearing ratio of 0%[128] Market and Economic Conditions - China imported nearly 64 million tonnes of coking coal in 2022, an increase of 16.7% YoY, with Mongolia and Russia accounting for over 70% of the total import volume[49] - Crude steel output in China was approximately 1.01 billion tonnes in 2022, a decrease of 2.1% YoY[49] - The overall price of clean coking coal in 2022 increased by more than 10% YoY due to a low base effect in the first half of 2021[49] - The overall economic recovery in China is expected to be relatively strong, but the steel output may see a slight decline due to the "Dual Carbon" goal[59] - The government set a GDP growth target of 5% for 2023, with the International Monetary Fund forecasting a growth rate of 5.2%[171] Strategic Initiatives - The Company aims to continue expanding its market presence and enhance production capabilities in the coming years[3] - The Group's strategy continues to focus on clean coking coal sales, aligning with long-term market trends[65] - The Group plans to transition production from the upper coal seam to the lower coal seam in 2023, prioritizing safe production during this process[176] - The Group aims to achieve carbon neutrality by 2060 and will accelerate its comprehensive intelligence transformation[176] Corporate Governance and ESG - The Group is committed to enhancing sustainable business practices and establishing a comprehensive ESG work mechanism to create long-term stable social, environmental, and enterprise value[189] - The Audit Committee is responsible for formulating ESG management policies and assessing material ESG-related issues and their risks to the Group's business[190] - The ESG report details the progress and effectiveness of the Group's ESG efforts in 2022, approved by the Board on March 23, 2023[191] - The Group actively improves its corporate governance structure and adheres to integrity management and compliance operations[195]
首钢资源(00639) - 2022 - 年度业绩

2023-03-23 12:28
Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 8,215 million, representing a 16% increase from HKD 7,076 million in 2021[2] - Gross profit increased by 20% to HKD 5,290 million, with a gross margin of 64%, up from 62% in the previous year[2] - Net profit attributable to shareholders reached a record high of HKD 2,715 million, an increase of 7% compared to HKD 2,538 million in 2021[2] - EBITDA for the year was HKD 5,415 million, reflecting a 14% growth from HKD 4,755 million in the prior year[2] - The company reported a total comprehensive income of HKD 2,300 million, down from HKD 2,876 million in 2021[6] - The group generated revenue of HKD 3,798,695,000 from its coal mining segment, representing 46% of total revenue, an increase from 40% in the previous year[19] - The group reported a profit attributable to shareholders of HKD 2,715,374,000, an increase from HKD 2,538,495,000 in the previous year, resulting in basic earnings per share of HKD 0.5375[27] - Net profit for the year was approximately HKD 3.308 billion, representing an 8% year-on-year growth, while profit attributable to owners increased by about 7% to HKD 2.715 billion[44] - The EBITDA for the year was approximately HKD 5.415 billion, up from about HKD 4.755 billion in the previous year[45] Dividends - The company declared a final dividend of HKD 0.43 per share, an increase of 8% from HKD 0.40 per share in 2021[2] - The total dividend declared for the year was HKD 2,374,364,000, significantly higher than HKD 858,812,000 in the previous year[25] - The group plans to distribute a final dividend of HKD 1,414,515,000 for the year ending December 31, 2022, pending shareholder approval[26] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.28 per share, compared to HKD 0.32 for the previous year, resulting in a total dividend of HKD 0.43 per share for the year, up from HKD 0.40 in the prior year[39] - The group plans to distribute the proposed final dividend on July 18, 2023, pending shareholder approval at the annual general meeting on May 31, 2023[39] Assets and Liabilities - Current ratio improved by 20% to 3.23 from 2.69 in the previous year, indicating better liquidity[2] - Total assets decreased to HKD 23,463 million from HKD 24,780 million, a decline of approximately 5%[7] - Net asset value per share decreased by 3% to HKD 3.32 from HKD 3.42 in the previous year[2] - Trade receivables increased to HKD 1,504,189,000 in 2022 from HKD 1,087,425,000 in 2021, representing a growth of 38.4%[29] - The total amount of notes receivable decreased to HKD 1,575,256,000 in 2022 from HKD 2,260,302,000 in 2021, a decline of 30.3%[31] - Trade payables amounted to HKD 236,931,000 in 2022, down from HKD 270,017,000 in 2021, a decrease of 12.2%[33] - The total amount of notes payable increased to HKD 377,806,000 in 2022 from HKD 337,230,000 in 2021, an increase of 12.0%[36] - The total trade receivables and notes receivable amounted to HKD 2,889,765,000 in 2022, compared to HKD 3,144,251,000 in 2021, a decrease of 8.1%[29] Operational Highlights - The group produced approximately 5.25 million tons of raw coking coal in the year ended December 31, 2022, an increase of 2% from 5.17 million tons in the previous year[42] - The production of premium coking coal was approximately 3.23 million tons, reflecting a 1% increase from 3.20 million tons in the previous year[42] - The sales volume of premium coking coal increased by 4% when excluding external purchases, with total sales volume reaching 3.32 million tons, up from 3.30 million tons in the previous year[42] - The group continues to focus on premium coking coal sales as part of its long-term strategy, with premium coking coal sales contributing 100% to the group's revenue[43] Market and Economic Conditions - The GDP growth in China for 2022 was stabilized at 3%, despite various economic challenges[67] - The government set a GDP growth target of 5% for 2023, with international organizations adjusting their growth forecasts for China upwards[68] - The group will continue to monitor economic conditions and adjust operational strategies accordingly[68] Financial Reporting and Compliance - The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards and have received an unqualified audit opinion[10] - The company has adopted the Standard Code as the guideline for directors' securities trading, ensuring compliance for the fiscal year ending December 31, 2022[72] - The annual report for 2022 will be sent to shareholders and made available on the company's website and the Hong Kong Stock Exchange website[73] Employee and Corporate Governance - The group employed 4,446 employees as of December 31, 2022, with annual salary reviews conducted[66] - The chairman expressed gratitude to customers, suppliers, and shareholders for their continued support, highlighting the management and employees' efforts over the past year[74]
首钢资源(00639) - 2022 - 中期财报

2022-09-15 08:33
Financial Performance - Revenue for the six months ended June 30, 2022, was HK$4,662,983,000, representing a 91% increase compared to HK$2,444,193,000 in 2021[7]. - Gross profit for the same period was HK$3,006,836,000, up 147% from HK$1,217,762,000, with a gross profit margin of 64% compared to 50% in 2021[7]. - Profit for the period increased by 150% to HK$1,936,269,000 from HK$773,609,000[8]. - Profit attributable to owners of the Company rose by 139% to HK$1,606,697,000 from HK$673,389,000[9]. - EBITDA for the period was HK$3,267,024,000, a 140% increase from HK$1,363,222,000[9]. - Basic earnings per share increased by 139% to HK$31.80 from HK$13.33[9]. - The interim dividend per share was HK$15.00, an 88% increase from HK$8.00 in the previous year[9]. - The Company reported total comprehensive income for the period of HK$1,646,154,000, compared to HK$1,161,770,000 in 2021, representing an increase of 41.7%[22]. - Profit for the period was HK$1,606,697, compared to HK$673,389 in the previous period, indicating a significant increase of 138.8%[38]. Assets and Liabilities - Total assets as of June 30, 2022, were HK$25,702,678,000, a 4% increase from HK$24,779,977,000 at the end of 2021[11]. - Total liabilities increased by 22% to HK$6,886,518,000 from HK$5,631,759,000[11]. - Total equity attributable to owners decreased by 2% to HK$18,816,160,000 from HK$19,148,218,000[11]. - Current assets increased to HK$11,995,491,000 from HK$10,573,734,000, indicating a growth of 13.4%[28]. - Cash and cash equivalents as of June 30, 2022, were HK$5,865,117,000, compared to HK$4,410,209,000 at the end of 2021, reflecting a growth of 32.9%[27]. - Total current liabilities increased to HK$5,267,313, up from HK$3,926,321, representing a 34.2% increase year-over-year[31]. - Total non-current liabilities decreased to HK$1,619,205 from HK$1,705,438, a decline of 5.1%[33]. - The net assets of the Company decreased to HK$18,816,160 from HK$19,148,218, a decline of 1.7%[36]. Cash Flow and Investments - Cash generated from operations was HK$3,022,592, with income tax paid amounting to HK$1,143,058, resulting in a net cash inflow from operating activities of HK$1,879,534, compared to HK$1,049,661 in 2021[42]. - Net cash outflow from investing activities was HK$142,546, a substantial decrease from HK$2,036,949 in the previous year, indicating improved cash management[44]. - The company reported a net increase in cash and cash equivalents of HK$1,630,619, compared to a decrease of HK$1,034,034 in the same period of 2021[46]. - Payments to acquire property, plant, and equipment amounted to HK$283,026, slightly higher than HK$277,396 in 2021, reflecting ongoing investment in infrastructure[44]. Production and Sales - The production volume of clean coking coal reached approximately 1.74 million tonnes, representing a year-on-year increase of 20% from 1.45 million tonnes in the same period of 2021[158]. - The average realized selling price of clean coking coal was RMB 2,521 per tonne, a significant increase of 78% compared to RMB 1,415 per tonne in the same period of 2021[157]. - The sales volume of self-produced clean coking coal increased by 16% year-on-year, with clean coking coal sales accounting for 100% of the Group's revenue for the period[159]. - Revenue from sales of clean coking coal for the six months ended June 30, 2022, was HK$4,662,983,000, compared to HK$2,444,193,000 for the same period in 2021, representing an increase of approximately 90.3%[63]. Costs and Expenses - The cost of inventories sold rose to HK$1,656,147,000 in 2022, up from HK$1,226,431,000 in 2021, indicating an increase of 35%[73]. - Staff costs, including directors' emoluments, increased to HK$431,011,000 in 2022, compared to HK$375,437,000 in 2021, reflecting a rise of 14.8%[73]. - Selling and distribution expenses were approximately HK$168 million, an increase of approximately HK$22 million or 15% YoY compared to approximately HK$146 million for the last period[177]. - General and administrative expenses were approximately HK$89 million, a decrease of approximately HK$4 million or 4% YoY compared to approximately HK$93 million for the last period[178]. Taxation - Current tax expense for PRC income tax was HK$872,058,000 for the period, a significant increase from HK$277,004,000 in the previous year[75]. - Income tax expense amounted to approximately HK$813 million, significantly up from approximately HK$283 million in the last period[184]. Dividends - The Group declared an interim dividend of HK 15 cents per ordinary share for the six months ended June 30, 2022, compared to HK 8 cents per share in the same period of 2021[153]. - The total amount of interim dividend for the six months ended June 30, 2022, was HK$757,776,000, based on 5,051,837,842 issued ordinary shares[80]. - The final dividend for the year ended December 31, 2021, was HK$1,616,588,000, compared to HK$454,665,000 for 2020, reflecting a significant increase of 255%[83][84]. Market Conditions - In the first half of 2022, China's GDP growth was 2.5% year-on-year, with a significant decline from 4.8% in Q1 to 0.4% in Q2 due to various economic pressures[200]. - The Group's coal mines operated smoothly during the review period, maintaining stable coal production[191].
首钢资源(00639) - 2021 - 年度财报

2022-04-29 08:33
Financial Performance - The Group's revenue for the year ended December 31, 2021, was HK$7,075,818, representing a 77% increase compared to HK$3,996,951 in 2020[13] - Gross profit increased to HK$4,394,574, a 135% rise from HK$1,869,207 in the previous year, with a gross profit margin of 62%[13] - Profit for the year reached HK$3,060,831, marking a 158% increase from HK$1,187,283 in 2020[13] - EBITDA for 2021 was HK$4,735,627, up 117% from HK$2,178,672 in 2020[13] - Basic earnings per share rose to 50.25 HK cents, a 144% increase from 20.62 HK cents in 2020[13] - The Group achieved a record profit for the year 2021, with profit attributable to owners reaching HK$2,538,495, representing a 135% increase YoY[21] - The Group recorded a net profit of approximately HK$3,061 million, representing a significant increase of 158% YoY, with profit attributable to the owners of approximately HK$2,538 million, up 135% YoY[67][68] - Gross profit surged by approximately HK$2,526 million or 135% YoY, leading to a gross profit margin of 62%, compared to 47% in the previous year[68][82] Assets and Liabilities - Total assets as of December 31, 2021, were HK$24,779,977, reflecting a 16% increase from HK$21,433,646 in 2020[14] - Total liabilities increased to HK$5,631,759, a 36% rise from HK$4,142,576 in 2020[14] - Total equity attributable to owners was HK$17,300,083, up 9% from HK$15,837,166 in 2020[14] - The Group's current ratio improved to 3.42 times, while the gearing ratio remained stable at 0[14] - As of 31 December 2021, the Group had no borrowings, resulting in a gearing ratio of 0%[106] - The Group maintained free bank balances and cash of approximately HK$6,426 million, a significant increase from approximately HK$4,062 million in the previous year[70] Production and Sales - Raw coking coal production for 2021 was 5.17 million tonnes, an increase of 4% YoY, while sales volume of clean coking coal reached 3.3 million tonnes, up 1% YoY[41] - The average selling price of the Group's main clean coking coal product was RMB2,019 per tonne, reflecting a significant increase of 66% YoY[41] - The production volume of clean coking coal was approximately 3.20 million tonnes, showing a slight decrease of 1% year-on-year[55] - The average realized selling price of clean coking coal increased by 66% year-on-year to RMB 2,019 per tonne, compared to RMB 1,218 per tonne in the previous year[59] - The Group produced approximately 5.17 million tons of raw coking coal in 2021, representing a year-on-year increase of 4%[125] Market Conditions - The average market price for thermal and coking coal in 2021 was 70% to 80% higher YoY due to tight supply and increased demand[40] - The overall average price of coal increased by approximately 70-80% year-on-year, despite a significant drop in prices following government intervention in October 2021[42] - Domestic coking coal prices reached historical highs in 2021, with a significant year-on-year increase, despite a subsequent price drop due to government supply stabilization policies[149] - Coking coal imports fell by 25% YoY due to the impact of the pandemic and geopolitics[148] Dividends and Shareholder Returns - The Board of Directors recommended a final dividend of 32 Hong Kong cents per ordinary share for 2021[47] - Basic earnings per share increased to HK50.25 cents, a significant rise of 144% YoY, due to the increase in profit attributable to the owners and a 4% reduction in the weighted average number of issued shares[68] ESG and Sustainability - The Group is committed to enhancing sustainable business practices and establishing a comprehensive ESG work mechanism to create long-term stable social, environmental, and enterprise value[164] - The Board of Directors is responsible for the Group's ESG strategy and reporting, with the Audit Committee overseeing ESG management policies and strategies[166] - The Group aims to create harmony between society and the environment while promoting sustainable development for all stakeholders[171] - The Group conducted online questionnaire surveys in 2021 to prioritize selected ESG issues based on stakeholder importance[195] - The Group regularly reviews the material issues matrix to ensure its timeliness and appropriateness, adjusting the importance of certain issues as needed[196] Operational Efficiency - The Group plans to continue improving production safety and efficiency while closely monitoring market trends in 2022[46] - The Group aims to enhance production management and cost control to improve profitability and create better value for shareholders[144] - The Group plans to enhance production safety and introduce cutting-edge mining technology to improve efficiency and contribute to sustainable development[155]
首钢资源(00639) - 2021 - 中期财报

2021-09-14 08:30
[Corporate Information](index=3&type=section&id=CORPORATE%20INFORMATION) This section details the company's board of directors, committee members, and other essential corporate information - The report provides a list of members for the company's board of directors and various committees (executive, audit, nomination, remuneration), along with key corporate information such as the company secretary, auditor, share registrar, and registered office[4](index=4&type=chunk)[5](index=5&type=chunk) [Financial Highlights](index=5&type=section&id=FINANCIAL%20HIGHLIGHTS) The company reported strong revenue and profit growth for the first half of 2021, maintaining a robust financial position Operating Summary for the Six Months Ended June 30, 2021 | Indicator | H1 2021 | H1 2020 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue (HKD million)** | 2,444 | 1,820 | +34% | | **Gross Profit (HKD million)** | 1,218 | 948 | +28% | | **Gross Margin (%)** | 50% | 52% | -2pp | | **Adjusted Gross Margin¹ (%)** | 54% | 52% | +2pp | | **Profit for the Period (HKD million)** | 774 | 585 | +32% | | **Profit Attributable to Owners (HKD million)** | 673 | 549 | +23% | | **EBITDA² (HKD million)** | 1,358 | 1,027 | +32% | | **Basic Earnings Per Share (HK cents)** | 13.33 | 10.35 | +29% | | **Interim Dividend Per Share (HK cents)** | 8.00 | 7.50 | +7% | Financial Position Summary as of June 30, 2021 | Indicator | As of June 30, 2021 | As of December 31, 2020 | Period Change | | :--- | :--- | :--- | :--- | | **Total Assets (HKD million)** | 22,752 | 21,434 | +6% | | Of which: Cash and Deposits (HKD million) | 4,784 | 4,062 | +18% | | **Total Liabilities (HKD million)** | 4,754 | 4,143 | +15% | | **Total Equity (HKD million)** | 17,998 | 17,291 | +4% | | **Equity Attributable to Owners (HKD million)** | 16,408 | 15,387 | +7% | | **Current Ratio (times)** | 2.58 | 2.77 | -7% | | **Gearing Ratio (%)** | 0.03% | – | N/A | [Report on Review of Interim Financial Information](index=7&type=section&id=REPORT%20ON%20REVIEW%20OF%20INTERIM%20FINANCIAL%20INFORMATION) The interim financial information has been reviewed by PwC, concluding that it is prepared in accordance with HKAS 34 - PricewaterhouseCoopers, the auditor, has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[13](index=13&type=chunk) - The review concluded that the auditor found no matters to suggest the interim financial information was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[14](index=14&type=chunk)[16](index=16&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including profit or loss, financial position, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) During the period, revenue increased by **34%** year-on-year to **HKD 2.44 billion**, driven by higher sales volume and prices, with profit attributable to owners growing by **23%** to **HKD 673 million** Key Profit or Loss Statement Data | Item | H1 2021 (HKD thousand) | H1 2020 (HKD thousand) | | :--- | :--- | :--- | | Revenue | 2,444,193 | 1,819,727 | | Gross Profit | 1,217,762 | 948,433 | | Profit Before Income Tax | 1,056,369 | 802,617 | | Profit for the Period | 773,609 | 584,935 | | Profit Attributable to Owners | 673,389 | 548,699 | [Condensed Consolidated Statement of Financial Position](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2021, total assets increased to **HKD 22.75 billion**, with total liabilities at **HKD 4.75 billion** and net assets at **HKD 17.99 billion**, demonstrating a robust financial position Key Financial Position Statement Data | Item | As of June 30, 2021 (HKD thousand) | As of December 31, 2020 (HKD thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 14,889,914 | 14,532,147 | | Total Current Assets | 7,861,809 | 6,901,499 | | **Total Assets** | **22,751,723** | **21,433,646** | | Total Current Liabilities | 3,050,742 | 2,488,195 | | Total Non-current Liabilities | 1,702,806 | 1,654,381 | | **Net Assets** | **17,998,175** | **17,291,070** | [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) As of June 30, 2021, total equity attributable to owners increased to **HKD 16.41 billion**, driven by profit for the period and other comprehensive income, partially offset by dividends - Total comprehensive income for the period was **HKD 1.16 billion**, with **HKD 1.03 billion** attributable to owners[26](index=26&type=chunk) - The company approved and recognized a **final dividend of approximately HKD 455 million** for 2020 during the period, deducted from retained earnings[26](index=26&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=15&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) Net cash inflow from operating activities significantly increased to **HKD 1.05 billion**, while investing activities resulted in a net outflow of **HKD 2.03 billion**, and financing activities a net outflow of **HKD 46.75 million** Key Cash Flow Statement Data | Item | H1 2021 (HKD thousand) | H1 2020 (HKD thousand) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 1,045,603 | 517,285 | | Net Cash Outflow from Investing Activities | (2,032,891) | (1,724,132) | | Net Cash Outflow from Financing Activities | (46,746) | (85,575) | | Net Decrease in Cash and Cash Equivalents | (1,034,034) | (1,292,422) | | Cash and Cash Equivalents at End of Period | 2,411,136 | 2,416,613 | [Notes to the Interim Financial Information](index=18&type=section&id=NOTES%20TO%20THE%20INTERIM%20FINANCIAL%20INFORMATION) This section provides detailed notes to the interim financial information, covering revenue, segment information, dividends, and related party transactions [Note 4: Revenue from Contracts with Customers and Segment Information](index=22&type=section&id=Note%204.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS%20AND%20SEGMENT%20INFORMATION) All revenue is derived from the single operating segment of coking coal mining in China, with refined coking coal sales reaching **HKD 2.44 billion** in H1 2021, a **34%** year-on-year increase - The Group considers its business as a single operating segment: coking coal mining, exploration, production, and sales in China[52](index=52&type=chunk)[55](index=55&type=chunk) Revenue Composition | Item | H1 2021 (HKD thousand) | H1 2020 (HKD thousand) | | :--- | :--- | :--- | | Sales of Refined Coking Coal | 2,444,193 | 1,818,861 | | Sales of Raw Coking Coal | – | 866 | | **Total** | **2,444,193** | **1,819,727** | [Note 10: Dividends](index=27&type=section&id=Note%2010.%20DIVIDENDS) The Board declared an interim dividend of **8 HK cents** per share for 2021, totaling approximately **HKD 404 million**, following the **HKD 455 million** final dividend for 2020 - An interim dividend of **8 HK cents** per ordinary share was declared for 2021, higher than **7.5 HK cents** for the same period in 2020[69](index=69&type=chunk) - The 2020 final dividend of **9 HK cents** per share, totaling **HKD 455 million**, was approved during the period and paid on July 29, 2021[72](index=72&type=chunk)[73](index=73&type=chunk) [Note 22: Related Party Transactions](index=43&type=section&id=Note%2022.%20RELATED%20PARTY%20TRANSACTIONS) Significant related party transactions occurred with Shougang Group, the ultimate controlling shareholder of Shoucheng Holdings, including **HKD 1.12 billion** in refined coking coal sales, representing approximately **46%** of total revenue - Sales of refined coking coal to related party Shougang Group amounted to **HKD 1.12 billion**, a significant increase from **HKD 666 million** in the prior year period[124](index=124&type=chunk) - The company paid **HKD 1.8 million** for office rent and **HKD 1.5 million** for management consultancy fees to Shougang Holdings[127](index=127&type=chunk) [Interim Dividend](index=46&type=section&id=INTERIM%20DIVIDEND) The Board declared an interim dividend of **8 HK cents** per ordinary share for the six months ended June 30, 2021 - The Board declared an interim dividend of **8 HK cents** per ordinary share for the six months ended June 30, 2021[132](index=132&type=chunk) - The interim dividend will be paid on October 28, 2021, to shareholders registered on September 30, 2021[132](index=132&type=chunk)[133](index=133&type=chunk) [Management Discussion and Analysis](index=47&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section provides a comprehensive review of the company's business and financial performance, along with its future outlook [Business Review](index=47&type=section&id=Business%20Review) Raw coking coal production increased by **16%** year-on-year due to higher output from Jinjiazhuang Coal Mine, while refined coking coal sales grew by **11%** despite a slight production decrease Key Operating Data for H1 2021 | Item | Unit | H1 2021 | H1 2020 | Change | | :--- | :--- | :--- | :--- | :--- | | **Production** | | | | | | Raw Coking Coal | million tonnes | 2.61 | 2.25 | +16% | | Refined Coking Coal | million tonnes | 1.45 | 1.50 | -3% | | **Sales Volume** | | | | | | Refined Coking Coal | million tonnes | 1.63 | 1.47 | +11% | | **Average Realized Selling Price (incl. tax)** | | | | | | Refined Coking Coal | RMB/tonne | 1,415 | 1,267 | +12% | - Raw coking coal production growth was primarily due to an **89%** year-on-year increase from Jinjiazhuang Coal Mine after its lower seam operations normalized[139](index=139&type=chunk)[140](index=140&type=chunk) - Refined coking coal sales growth was supported by external purchases of approximately **130,000 tonnes** and sales from inventory of approximately **70,000 tonnes** to meet market demand[141](index=141&type=chunk) [Financial Review](index=50&type=section&id=Financial%20Review) The company achieved strong financial performance in H1 2021, with **34%** revenue growth and **23%** profit growth, maintaining a robust financial position and ample cash flow [Turnover](index=50&type=section&id=Turnover) Turnover significantly increased by **34%** year-on-year to **HKD 2.44 billion**, driven by a **12%** rise in average selling price, **11%** sales volume growth, and a **9.09%** appreciation of RMB against HKD - The strong turnover growth resulted from the combined positive effects of sales volume, price, and exchange rate[144](index=144&type=chunk) - The top five customers accounted for **86%** of total turnover, with the largest customer representing **46%**, indicating high customer concentration[145](index=145&type=chunk) [Cost of Sales](index=52&type=section&id=Cost%20of%20Sales) Cost of sales rose by **41%** year-on-year to **HKD 1.23 billion**, primarily due to external purchases of refined coking coal, increased raw coking coal for sales, and RMB appreciation - External purchases of approximately **130,000 tonnes** of refined coking coal led to an increase in cost of sales of approximately **HKD 181 million**[154](index=154&type=chunk) - The unit production cost of raw coking coal in RMB was **RMB 325/tonne**, a marginal **1%** year-on-year increase, demonstrating effective cost control[156](index=156&type=chunk) [Gross Profit and Gross Profit Margin](index=55&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased by **28%** to **HKD 1.22 billion**, while gross margin slightly decreased to **50%** due to lower-margin external coal purchases; adjusted gross margin, however, improved to **54%** - Excluding the impact of external refined coking coal purchases, the adjusted gross margin was approximately **54%**, higher than **52%** in the prior year period, reflecting improved core business profitability[145](index=145&type=chunk)[160](index=160&type=chunk) [Net Profit and EPS](index=51&type=section&id=Net%20Profit%20and%20EPS) Profit attributable to owners grew by **23%** to **HKD 673 million**, and basic earnings per share increased by **29%** to **13.33 HK cents**, outperforming profit growth due to share repurchases - Net profit growth was primarily driven by a significant increase in gross profit and a net foreign exchange gain of approximately **HKD 66 million**[147](index=147&type=chunk) - Earnings per share increased by **29%**, outpacing profit growth, as the number of issued shares decreased by approximately **5%** year-on-year due to the company's share repurchase in September 2020[148](index=148&type=chunk) [Liquidity and Financial Resources](index=60&type=section&id=Liquidity%20and%20Financial%20Resources) The company maintains a very robust financial position with a current ratio of **2.58 times**, cash and bank deposits totaling **HKD 5.15 billion**, and total free cash resources of approximately **HKD 6.17 billion** as of June 30, 2021 - As of the period end, cash and bank deposits totaled approximately **HKD 5.15 billion**, with a current ratio of **2.58 times**[188](index=188&type=chunk) - Including approximately **HKD 1.39 billion** in available bills receivable, the Group's total free cash resources amounted to approximately **HKD 6.17 billion**[189](index=189&type=chunk) [Future Prospects](index=61&type=section&id=Future%20Prospects) Despite macroeconomic uncertainties and potential steel production controls, coking coal prices are expected to remain high due to tight domestic supply, with the company focusing on safety, efficiency, and smart mining initiatives - Macroeconomically, steel production is expected to decline in the second half of the year, potentially reducing demand for coking coal[200](index=200&type=chunk)[201](index=201&type=chunk) - On the supply side, domestic coking coal supply is unlikely to ease in the short term due to environmental and safety constraints, with prices expected to fluctuate at high levels[201](index=201&type=chunk) - The company's strategic focus is to strengthen safety awareness, introduce advanced mining technologies, and promote smart mining to enhance efficiency, ensure safety, and reduce costs[202](index=202&type=chunk)[203](index=203&type=chunk) [Disclosure of Interests](index=65&type=section&id=DISCLOSURE%20OF%20INTERESTS) This section details the interests of the company's directors, chief executives, and substantial shareholders [Directors' and Chief Executives' Interests](index=65&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests) As of June 30, 2021, certain directors held beneficial interests in a small number of company shares, including Mr. Ji Huashi with **700,000 shares** and Mr. Cai Weixian with **220,000 shares** Directors' Shareholdings | Director's Name | Number of Shares Held | Percentage of Issued Shares | | :--- | :--- | :--- | | Ji Huashi | 700,000 | 0.013% | | Cai Weixian | 220,000 | 0.004% | | Ding Rucai | 120,000 | 0.002% | [Substantial Shareholders' Interests](index=67&type=section&id=Substantial%20Shareholders%27%20Interests) As of June 30, 2021, major shareholders included Shougang Group (**33.09%**), Fude Life Insurance (**31.47%**), and Mr. Jiang Jinzhi (**5.60%**), collectively holding approximately **70%** of the company's shares Substantial Shareholders' Shareholdings | Shareholder Name | Number of Shares Held | Percentage of Issued Shares | | :--- | :--- | :--- | | Shougang Group | 1,671,726,490 | 33.09% | | Fude Life Insurance | 1,590,100,000 | 31.47% | | Mr. Jiang Jinzhi | 282,702,904 | 5.60% | [Corporate Governance and Other Information](index=70&type=section&id=CORPORATE%20GOVERNANCE%20AND%20OTHER%20INFORMATION) This section covers the company's compliance with corporate governance codes and the audit committee's review of interim results [Compliance with Corporate Governance Code](index=70&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with most provisions of the Corporate Governance Code during the period, with a minor deviation regarding non-executive directors' fixed terms, addressed by rotational retirement - The company complied with the code provisions of Appendix 14 of the Listing Rules, 'Corporate Governance Code,' except for code provision A.4.1[221](index=221&type=chunk) - The deviation is that non-executive directors are not appointed for specific terms, but the company's articles of association require all directors to retire by rotation at least once every three years[221](index=221&type=chunk)[222](index=222&type=chunk) [Audit Committee Review](index=74&type=section&id=Audit%20Committee%20Review) The Audit Committee reviewed the unaudited interim results and this interim report, which were also reviewed by the independent auditor, PricewaterhouseCoopers - The Audit Committee has reviewed this interim report and the unaudited interim results[233](index=233&type=chunk)
首钢资源(00639) - 2020 - 中期财报

2020-09-16 08:39
Financial Performance - Revenue for the six months ended June 30, 2020, was HK$1,819,727,000, a decrease of 7% compared to HK$1,959,940,000 for the same period in 2019[7]. - Gross profit for the period was HK$948,433,000, down 11% from HK$1,064,516,000 year-on-year, resulting in a gross profit margin of 52%[7]. - Profit attributable to owners of the Company decreased by 14% to HK$548,699,000 from HK$640,388,000 in the previous year[7]. - Adjusted EBITDA for the six months ended June 30, 2020, was HK$1,033,994,000, reflecting a 13% decline from HK$1,184,698,000 in the same period of 2019[7]. - Basic earnings per share for the period were HK$10.35, down 14% from HK$12.08 in the previous year[7]. - Total comprehensive income for the period was HK$214,283,000, significantly lower than HK$1,053,648,000 in the previous year[22]. - The profit for the period was HK$640,388,000, with total comprehensive income amounting to HK$1,034,467,000 for the six months ended June 30, 2020[28]. - The Group reported a profit before income tax of HK$871,294,000 for the six months ended June 30, 2020, compared to HK$895,424,000 for the same period in 2019, reflecting a decrease of approximately 2%[65]. - For the six months ended June 30, 2020, the Group recorded a net profit of approximately HK$585 million, a decrease of 11% YoY[165]. - Profit attributable to the Owners decreased by approximately HK$91 million or 14% YoY to approximately HK$549 million[188]. Assets and Liabilities - Total assets as of June 30, 2020, were HK$21,321,316,000, a decrease of 1% from HK$21,472,710,000 as of December 31, 2019[10]. - Total liabilities rose by 2% to HK$4,521,981,000 from HK$4,426,398,000[10]. - Total equity decreased by 1% to HK$16,799,335,000 from HK$17,046,312,000[10]. - Total current liabilities increased to HK$2,930,042,000 from HK$2,845,954,000 as of December 31, 2019, reflecting a rise of approximately 2.97%[26]. - Non-current liabilities totaled HK$1,591,939,000, slightly up from HK$1,580,444,000, marking an increase of about 0.73%[26]. - The equity attributable to owners of the Company decreased to HK$15,398,367,000 from HK$15,681,580,000, a reduction of approximately 1.80%[26]. - Total cash and cash equivalents decreased to HK$2,416,613,000 as of June 30, 2020, from HK$3,712,383,000 as of December 31, 2019[103]. Cash Flow - Cash generated from operations was HK$814,386,000, with income tax paid amounting to HK$297,101,000, leading to a net cash inflow from operating activities of HK$517,285,000[32]. - The company reported a net cash outflow from investing activities of HK$1,724,132,000, compared to HK$740,751,000 in the previous year[34]. - The net cash outflow from financing activities was HK$85,575,000, a significant increase from HK$5,767,000 in the prior year[36]. - The Group generated a positive cash flow of approximately HK$517 million from operating activities, down from approximately HK$786 million in the same period of 2019[169]. Dividends - Interim dividend per share was HK$7.50, a decrease of 12% compared to HK$8.50 in the same period last year[7]. - The final dividend for the year ended December 31, 2019, was HK$461,260,000, an increase from HK$450,656,000 for 2018, reflecting a dividend of HK8.7 cents per ordinary share compared to HK8.5 cents in 2018[75]. Production and Sales - For the six months ended June 30, 2020, the Group's revenue from clean coking coal sales was HK$1,818,861,000, a decrease of 5.7% compared to HK$1,928,522,000 in the same period of 2019[54]. - Sales of raw coking coal significantly dropped to HK$866,000 from HK$31,418,000 in the previous year, indicating a decline of approximately 97.2%[54]. - The Group's turnover for the six months ended June 30, 2020, was approximately HK$1,820 million, a decrease of approximately HK$140 million or 7% year-on-year[161]. - The production volume of raw coking coal increased by 0.4% YoY, while the production volume of clean coking coal rose by 9% YoY due to optimized washing process techniques[168]. Expenses - Selling and distribution expenses increased by approximately HK$13 million or 10% YoY to approximately HK$137 million, driven by a net increase in sales volume of clean coking coal[181]. - General and administrative expenses remained stable at approximately HK$81 million, including additional costs for anti-epidemic materials[182]. - Other operating expenses significantly decreased by approximately HK$104 million or 95% YoY to approximately HK$6 million, due to the absence of one-off non-cash write-offs from the previous year[183]. Market Conditions - The average realised selling price of clean coking coal decreased by 11% year-on-year to RMB 1,267 per tonne[160]. - The average market prices of clean coking coal dropped by 10% to 17% year-on-year in the first half of 2020[160]. - The decrease in turnover was primarily driven by the drop in average realised selling prices and the depreciation of RMB to HK$ exchange rate by approximately 5% year-on-year[161]. Compliance and Operations - The Group complied with environmental protection regulations and focused on energy saving and emission reduction during the review period[192]. - The Group's coal mines resumed production in mid-February 2020 after passing inspections post-COVID-19 lockdown[192]. - The Group assessed COVID-19 risks and found no material impact on financial performance or position as of June 30, 2020[170].
首钢资源(00639) - 2019 - 年度财报

2020-04-15 08:37
[Corporate Information](index=4&type=section&id=CORPORATE%20INFORMATION) [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) Outlines the company's basic governance structure and key contact information, including board members, committee compositions, company secretary, auditor, share registrar, and registered address - The Board of Directors comprises **5 executive directors, 2 non-executive directors, and 4 independent non-executive directors**[7](index=7&type=chunk) - Key committees (Executive, Audit, Nomination, Remuneration), their chairpersons, and member lists are specified[7](index=7&type=chunk)[8](index=8&type=chunk) - The company's auditor is **PricewaterhouseCoopers**, and the share registrar is **Tricor Tengis Limited**[8](index=8&type=chunk) [Main Operational Structure](index=6&type=section&id=MAIN%20OPERATIONAL%20STRUCTURE) [Group Operational Structure](index=6&type=section&id=Group%20Operational%20Structure) Briefly describes the Group's main operational structure as of December 31, 2019 - The Group's main operational structure is as of **December 31, 2019**[9](index=9&type=chunk) [Financial Highlights](index=7&type=section&id=FINANCIAL%20HIGHLIGHTS) [Key Financial Data Overview](index=7&type=section&id=Key%20Financial%20Data%20Overview) Provides an overview of the company's key financial data from 2017 to 2019, showing growth in revenue, profit, EPS, and dividends, alongside a robust balance sheet Key Financial Data for FY2019 (Consolidated Statements) | Metric | 2019 (Thousand HKD) | 2018 (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,869,308 | 3,686,176 | +5% | | Gross Profit | 1,988,743 | 1,900,542 | +5% | | Profit for the Year | 1,176,141 | 1,151,928 | +2% | | Profit Attributable to Owners | 1,140,413 | 1,100,488 | +4% | | Adjusted EBITDA | 2,220,589 | 2,028,196 | +9% | | Basic Earnings Per Share (HK cents) | 21.51 | 20.76 | +4% | | Dividend Per Share (HK cents) | 17.2 | 16.8 | - | | Total Assets | 21,472,710 | 21,251,042 | +1% | | Total Liabilities | (4,426,398) | (4,475,236) | -1% | | Total Equity | 17,046,312 | 16,775,806 | +2% | | Current Ratio (times) | 2.61 | 2.58 | +1% | | Gearing Ratio | 0% | 0% | - | - **Gross profit margin was 51% in 2019**, compared to 52% in 2018[13](index=13&type=chunk) - As of December 31, 2019, cash and cash equivalents and fixed deposits with original maturity over three months totaled **HKD 4,761,884 thousand**, an **11% increase** from 2018[14](index=14&type=chunk) [Operating Mines](index=9&type=section&id=OPERATING%20MINES) [Mine Operations Overview](index=9&type=section&id=Mine%20Operations%20Overview) Details the geographical location, operational history, approved capacity, coal washing plant status, and main coal characteristics of the Group's three key coking coal mines (Xingwu, Jinjiazhuang, Zhaiyaodi) - Xingwu Coal Mine is located **6 kilometers south of Liulin County**, commenced operations in **1968**, has an approved annual raw coking coal production capacity of **1.75 million tonnes**, and primarily produces **hard coking coal**[19](index=19&type=chunk)[20](index=20&type=chunk) - Jinjiazhuang Coal Mine is located **14 kilometers south of Liulin County**, ceased production in **H2 2017** due to engineering works, officially resumed production in **H2 2019**, has an approved annual raw coking coal production capacity of **1.75 million tonnes**, and primarily produces **semi-hard coking coal**[22](index=22&type=chunk)[23](index=23&type=chunk) - Zhaiyaodi Coal Mine is located **16 kilometers southwest of Liulin County**, commenced operations in **1988**, has an approved annual raw coking coal production capacity of **1.75 million tonnes**, and primarily produces **semi-hard coking coal**[24](index=24&type=chunk)[25](index=25&type=chunk) [Coal Characteristics and Reserves](index=12&type=section&id=Coal%20Characteristics%20and%20Reserves) Introduces the Group's high-quality coking coal and updates resource and reserve data as of December 31, 2019 - The Group's coking coal is located in the **Liliu mining area of Hedong Coalfield**, one of China's main high-quality hard coking coal reserve areas, known as "Panda Coal" for its superior quality, suitable for producing coke and steel[27](index=27&type=chunk)[28](index=28&type=chunk) Resources and Reserves (As of December 31, 2019) | Metric | Xingwu (Million tonnes) | Jinjiazhuang (Million tonnes) | Zhaiyaodi (Million tonnes) | Total (Million tonnes) | | :--- | :--- | :--- | :--- | :--- | | In-situ Resources | 42.56 | 48.49 | 51.84 | 142.89 | | Recoverable Reserves | 25.67 | 28.11 | 25.71 | 79.49 | [Chairman's Statement](index=14&type=section&id=CHAIRMAN%27S%20STATEMENT) [2019 Economic and Industry Review](index=14&type=section&id=2019%20Economic%20and%20Industry%20Review) The Chairman's statement reviews the challenges in the global and Chinese economies in 2019, including trade frictions and slowing economic growth, as well as supply and demand in the steel and coking coal industries - Global economic growth in 2019 was the **lowest since the 2008 financial crisis**, with the spread of populism and protectionism, and escalating trade frictions and geopolitical tensions[35](index=35&type=chunk)[36](index=36&type=chunk) - China's economic growth slowed to **6.1%**, but real estate investment exceeded expectations, steel production hit a new high, coking coal supply and demand were largely balanced, and prices showed a trend of higher in the first half and lower in the second half of the year[37](index=37&type=chunk)[38](index=38&type=chunk) - The **RMB exchange rate against HKD depreciated year-on-year**, negatively impacting the Group's 2019 performance[37](index=37&type=chunk)[38](index=38&type=chunk) [Group Performance and Operational Highlights](index=15&type=section&id=Group%20Performance%20and%20Operational%20Highlights) Reports the Group's performance growth in a challenging market, including significant increases in raw and clean coking coal production and sales, as well as the resumption of Jinjiazhuang Coal Mine and optimized operational efficiency - In 2019, the Group's raw coking coal production was **4.41 million tonnes**, a **year-on-year increase of 8%**; clean coking coal production was **2.75 million tonnes**, and sales volume was **2.70 million tonnes**, representing year-on-year increases of **30% and 29%**, respectively[39](index=39&type=chunk) - The average selling price of clean coking coal (including VAT) was **RMB 1,396 per tonne**, a **4% year-on-year decrease**[39](index=39&type=chunk) - Group sales revenue was **HKD 3.87 billion**, a **5% year-on-year increase**; full-year gross profit margin reached **51%**; profit attributable to shareholders was **HKD 1.14 billion**, maintaining growth momentum[39](index=39&type=chunk) - Jinjiazhuang Coal Mine obtained its safety production license in **August 2019**, gradually resuming normal production, and enhanced production efficiency through optimized labor organization, coal blending, and automated centralized control of conveyor belts[40](index=40&type=chunk) [2020 Outlook and Strategic Focus](index=15&type=section&id=2020%20Outlook%20and%20Strategic%20Focus) Looking ahead to 2020, despite COVID-19 uncertainties, China's economic stimulus policies are expected to support the steel and coking coal industries; the Group will continue to strengthen safety, innovation, and cost control, leveraging its robust financial position to seek business opportunities - The **COVID-19 pandemic in 2020** cast a shadow over the Chinese and global economies, but the Chinese government will gradually introduce economic stimulus measures, emphasizing proactive fiscal policies, with expected increases in infrastructure investment and domestic demand[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - China's steel industry is expected to experience an initial downturn followed by an upturn in 2020, with the coking coal industry remaining relatively stable, though overseas pandemic developments still pose uncertainties[43](index=43&type=chunk) - The Group's **three Liulin mines resumed production in mid-February 2020**, fully implementing epidemic prevention measures, adjusting production plans, and aiming to further increase annual output[44](index=44&type=chunk)[45](index=45&type=chunk) - The Group will leverage its **robust financial position and strong cash flow** to overcome difficulties, seek business opportunities, advance towards smart mining, and continue its journey towards safe, environmentally friendly, and sustainable development[44](index=44&type=chunk)[45](index=45&type=chunk) - The Board recommends a **final dividend of 8.7 HK cents per ordinary share**[46](index=46&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [Business Review](index=17&type=section&id=BUSINESS%20REVIEW) Provides a detailed review of the Group's coal production and sales in 2019, with raw coking coal output up 8% year-on-year, and clean coking coal production and sales significantly increasing by 30% and 29% respectively, aligning with the company's long-term strategy of focusing on clean coking coal sales; the average selling price of clean coking coal decreased due to market factors, but an increased proportion of hard raw coking coal sales boosted the average selling price of raw coking coal Key Operating Data for 2019 | Metric | 2019 | 2018 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Raw Coking Coal Production (Million tonnes) | 4.41 | 4.07 | +0.34 | +8% | | Clean Coking Coal Production (Million tonnes) | 2.75 | 2.12 | +0.63 | +30% | | Raw Coking Coal Sales (Million tonnes) | 0.12 | 0.74 | -0.62 | -84% | | Clean Coking Coal Sales (Million tonnes) | 2.70 | 2.10 | +0.60 | +29% | | Average Selling Price of Raw Coking Coal (RMB/tonne) | 864 | 786 | +78 | +10% | | Average Selling Price of Clean Coking Coal (RMB/tonne) | 1,396 | 1,451 | -55 | -4% | - The significant increase in clean coking coal production and sales was primarily due to **increased raw coking coal output**, a **substantial reduction in raw coking coal sales**, enhanced mining technology, and the resumption of Jinjiazhuang Coal Mine[52](index=52&type=chunk) - In 2019, raw coking coal and clean coking coal sales accounted for **3% and 97%** of the Group's turnover, respectively, compared to 16% and 84% in 2018, indicating a greater focus on clean coking coal sales[53](index=53&type=chunk) - The average selling price of clean coking coal decreased by **4% year-on-year**, slightly above the market decline, mainly due to a reduced proportion of higher-priced No. 1 clean coking coal sales[55](index=55&type=chunk)[56](index=56&type=chunk) [Financial Review](index=20&type=section&id=FINANCIAL%20REVIEW) The financial review shows the Group's turnover increased by 5% to HKD 3.869 billion in 2019, with growth in gross profit and net profit; despite negative impacts from RMB depreciation and a one-off non-cash write-off of Jinjiazhuang Coal Mine's upper seam underground mine buildings, the Group maintained a robust financial position and strong cash flow through effective cost control, fund management, and increased byproduct sales - Turnover in 2019 was approximately **HKD 3.869 billion**, a **5% year-on-year increase**, primarily driven by overall sales volume growth of coal products[58](index=58&type=chunk) - The top five customers accounted for **74% of the Group's total turnover** (2018: 72%), with the largest customer, **Shougang Group, accounting for 31%** (2018: 24%)[58](index=58&type=chunk) - **Gross profit margin was 51% in 2019** (2018: 52%), with gross profit increasing by **5% year-on-year to HKD 1.989 billion**[59](index=59&type=chunk)[75](index=75&type=chunk) - Net profit in 2019 was approximately **HKD 1.176 billion**, and profit attributable to owners was approximately **HKD 1.140 billion**; the average RMB exchange rate depreciated by approximately **4% year-on-year**, negatively impacting net profit and profit attributable to owners by approximately **HKD 45 million and HKD 44 million**, respectively[60](index=60&type=chunk) - A one-off non-cash write-off of the net book value of Jinjiazhuang Coal Mine's upper seam underground mine buildings amounted to approximately **HKD 129 million**[60](index=60&type=chunk)[85](index=85&type=chunk) - Excluding the impact of exchange rates and the one-off write-off, net profit and profit attributable to owners increased by approximately **HKD 166 million and HKD 147 million**, respectively[61](index=61&type=chunk) - Interest income increased by **10% year-on-year to HKD 137 million**, primarily due to effective cash management[78](index=78&type=chunk) - Other income and net gains significantly increased by **178% to HKD 100 million**, mainly due to a **107% increase in byproduct sales revenue** and a **51% increase in dividend income from financial assets**[79](index=79&type=chunk)[81](index=81&type=chunk) - Cost of sales increased by **5% year-on-year to HKD 1.881 billion**, primarily due to an increase in the actual quantity of raw coking coal used for sales and a rise in per-tonne raw coking coal production costs, partially offset by the depreciation of the average RMB exchange rate[69](index=69&type=chunk) - Unit production cost of raw coking coal increased by **4% year-on-year**, mainly because Jinjiazhuang Coal Mine only resumed production in **August 2019**, resulting in lower output and temporarily higher per-tonne production costs than usual[73](index=73&type=chunk) - Clean coking coal processing fees also decreased by **13% year-on-year**, primarily due to effective cost control and a **30% year-on-year increase in clean coking coal production**[74](index=74&type=chunk) - Adjusted EBITDA in 2019 was approximately **HKD 2.221 billion**, with positive cash flow from operating activities of approximately **HKD 1.922 billion**[66](index=66&type=chunk) - As of December 31, 2019, bank balances and cash were approximately **HKD 4.762 billion**, and free funds were approximately **HKD 5.760 billion**, maintaining a robust financial position[67](index=67&type=chunk)[98](index=98&type=chunk) - As of December 31, 2019, the Group had **no borrowings**, and the **gearing ratio was 0%**[94](index=94&type=chunk)[102](index=102&type=chunk) - RMB depreciation resulted in an exchange loss of approximately **HKD 330 million** from the translation of net assets of overseas operations, recognized in other comprehensive income[96](index=96&type=chunk) [Employees](index=29&type=section&id=EMPLOYEES) As of December 31, 2019, the Group had 4,902 employees (20 in Hong Kong, 4,882 in mainland China), providing competitive remuneration, benefits, training, and development opportunities, while strictly adhering to labor laws to ensure equal opportunities and anti-discrimination - As of December 31, 2019, the Group employed **20 Hong Kong employees and 4,882 mainland Chinese employees**[103](index=103&type=chunk) - Employee remuneration is reviewed annually, with mandatory and voluntary provident fund schemes for Hong Kong employees, and local government-managed defined contribution retirement schemes for mainland Chinese employees[103](index=103&type=chunk)[106](index=106&type=chunk) - The Group has a share option scheme, but **no share options were granted or exercised** during the review period[103](index=103&type=chunk) [Safety Production and Environmental Protection](index=29&type=section&id=SAFETY%20PRODUCTION%20AND%20ENVIRONMENTAL%20PROTECTION) The Group highly prioritizes safety production and environmental protection, strictly adhering to relevant regulations, and is committed to building a safe and environmentally friendly enterprise through measures such as optimizing production processes, eliminating waste emissions, and protecting vegetation; in 2019, Jinjiazhuang Coal Mine's lower seam infrastructure and engineering passed inspection, resuming normal production in August, with all coal mines operating well - The Group has always highly valued production safety and environmental protection, striving to promote safety standard management and strengthen environmental protection measures, aiming to become a safety-oriented and environmentally conscious enterprise[104](index=104&type=chunk)[107](index=107&type=chunk) - The Group strictly complies with relevant environmental laws and regulations, implementing energy saving, emission reduction, and environmental protection through strict control of production processes, elimination of wastewater and exhaust gas emissions, and protection of mine vegetation[104](index=104&type=chunk)[107](index=107&type=chunk) - All of the Group's coal mines have obtained the necessary licenses and approvals from relevant Chinese regulatory authorities[107](index=107&type=chunk) - Jinjiazhuang Coal Mine's lower seam infrastructure and engineering were undergoing acceptance in **H1 2019**, and gradually resumed normal production in **August 2019**, with all Group coal mines operating well[105](index=105&type=chunk) [Compliance with Laws and Regulations](index=30&type=section&id=COMPLIANCE%20WITH%20LAWS%20AND%20REGULATIONS) The Group and its subsidiaries strictly comply with relevant laws and regulations in Hong Kong and mainland China, with no non-compliance identified as of the report date - The Group's business is primarily conducted by its mainland subsidiaries, and as the Company is listed on the Main Board of the Stock Exchange, it must comply with relevant mainland Chinese and Hong Kong laws and regulations[110](index=110&type=chunk) - For the year ended December 31, 2019, and up to the date of this report, the Group has complied with relevant mainland Chinese and Hong Kong laws and regulations[110](index=110&type=chunk) [Principal Risks and Uncertainties](index=30&type=section&id=PRINCIPAL%20RISKS%20AND%20UNCERTAINTIES) The Group primarily faces financial risks (market, credit, liquidity), market price risks, and operational risks; coking coal prices fluctuate with downstream steel demand and supply, while operational risks include coal reserve estimation, mining right renewals, and potential increases in future mining costs - The Group faces various principal risks, including **financial risks** (market risk, credit risk, and liquidity risk), **market price risk**, and **operational risk**[111](index=111&type=chunk) - Coking coal market prices are based on demand from the downstream steel industry and coking coal supply; if coal prices are under pressure, the Group's performance will be directly affected[112](index=112&type=chunk) - Operational risks include assessing remaining coal reserves, renewing mining rights, and mining operations; mine life is based on reserve estimates and the likelihood of mining right renewals, while future mining difficulties and environmental requirements may increase, leading to higher mining costs[114](index=114&type=chunk) [Relationships with Key Stakeholders](index=31&type=section&id=RELATIONSHIPS%20WITH%20KEY%20STAKEHOLDERS) The Group's success relies on close communication and cooperation with key stakeholders, including employees, customers, suppliers, and shareholders; the Group is committed to protecting employee rights, providing quality products and services, optimizing procurement processes, and maximizing shareholder value - The Group's success depends on the support of key stakeholders, including **employees, customers, suppliers, and shareholders**[115](index=115&type=chunk) - Major customers are steel manufacturers; for the year ended December 31, 2019, the **top five customers accounted for 74% of the Group's total turnover**, with the largest customer, **Shougang Group, accounting for 31%**[116](index=116&type=chunk)[117](index=117&type=chunk) - Key suppliers are material suppliers and contractors; the Group achieves cost-effectiveness through bidding, negotiation, improving procurement systems, and developing new suppliers[118](index=118&type=chunk)[119](index=119&type=chunk) - Maximizing shareholder value is one of the Group's corporate objectives; the Group will continue to strengthen production management, cost control, and strive to increase production capacity, resources, and reserves through acquisitions to enhance profitability[120](index=120&type=chunk)[122](index=122&type=chunk) [Future Prospects](index=32&type=section&id=FUTURE%20PROSPECTS) Looking ahead to 2020, despite global economic uncertainties from COVID-19, China's proactive fiscal policies and infrastructure investment will support steel and coking coal demand; the Group's Jinjiazhuang Coal Mine has resumed production, with overall raw coking coal output expected to increase; the Group will continue to enhance safety, introduce advanced technology, improve environmental standards, and seek investment opportunities to create greater value - In 2019, China's GDP growth was **6.1%**, and real estate development investment increased by **9.9%**, but a significant surge in coking coal imports led to a noticeable price decline in the second half of the year[121](index=121&type=chunk)[123](index=123&type=chunk) - Looking ahead to 2020, the **COVID-19 outbreak and global spread** increased uncertainty, but the Chinese government will accelerate investment and adopt more proactive fiscal measures to boost economic growth, which will benefit demand for steel and coking coal products[125](index=125&type=chunk)[126](index=126&type=chunk) - Coking coal product prices are expected to remain stable, but factors such as the pandemic, progress in US-China trade negotiations, and the US election still bring uncertainty and significant pressure[127](index=127&type=chunk)[128](index=128&type=chunk) - Jinjiazhuang Coal Mine officially commenced production in **August 2019**, and all three of the Group's coking coal mines passed inspection and resumed production in **mid-February 2020**, with overall raw coking coal output expected to further increase this year[129](index=129&type=chunk)[130](index=130&type=chunk) - The Group will continue to strengthen production safety, introduce advanced technology, improve environmental standards, and leverage its robust financial position and cash flow advantages to timely adjust operating strategies and identify potential investment opportunities[130](index=130&type=chunk)[131](index=131&type=chunk) [Environmental, Social and Governance Report](index=35&type=section&id=ENVIRONMENTAL%2C%20SOCIAL%20AND%20GOVERNANCE%20REPORT) [Scope of the Report](index=35&type=section&id=SCOPE%20OF%20THE%20REPORT) This report aims to comprehensively present the Group's environmental, social, and governance (ESG) efforts to shareholders, investors, and the public, covering the period from January 1 to December 31, 2019, primarily focusing on the operations of coking coal mines and washing plants in Liulin County, Shanxi Province - The report covers the Group's coking coal mining, production, and sales operations of its main subsidiaries in **Liulin County, Shanxi Province**[136](index=136&type=chunk) - The reporting period is from **January 1, 2019, to December 31, 2019**[136](index=136&type=chunk) - The report is prepared in accordance with **Appendix 27 "Environmental, Social and Governance Reporting Guide" of the Listing Rules**[137](index=137&type=chunk) [Management Objective and Actions](index=36&type=section&id=MANAGEMENT%20OBJECTIVE%20AND%20ACTIONS) The Group believes an effective ESG system contributes to sustainable development, integrating sustainability goals into daily operations through measures like enhancing resource efficiency, reducing pollution, and strengthening safety production, while actively participating in public welfare activities to give back to society; the Group identified 15 material social responsibility issues through a four-stage approach - The Group firmly believes that maintaining an effective environmental, social, and governance system will help achieve its sustainable development goals and enable sharing of sustainable value with stakeholders across economic, environmental, and social domains[140](index=140&type=chunk) - The Group has integrated sustainable development goals into daily operational management, adopting enhanced resource utilization, reduced pollution emissions, resource conservation, and strengthened safety production as fundamental corporate operating principles[140](index=140&type=chunk) - While pursuing economic benefits, the Group actively participates in public welfare activities to give back to society, striving to drive regional economic development and build harmonious community relationships[141](index=141&type=chunk) - The Group identified **15 material social responsibility issues** through a four-stage approach: identification and analysis, assessment and prioritization, verification and review, and rectification and retrospective[145](index=145&type=chunk)[147](index=147&type=chunk) [Stakeholders Engagement](index=38&type=section&id=STAKEHOLDERS%20ENGAGEMENT) The Group maintains close communication and cooperation with key stakeholders, including investors, employees, government, customers, suppliers, and community organizations, through various channels, focusing on and actively responding to issues such as operational status, risks, corporate governance, remuneration, occupational health and safety, legal compliance, product quality, procurement procedures, environmental protection, and community contributions - The Group's success relies on close communication and collaboration with various stakeholders[151](index=151&type=chunk) - Key stakeholders include **investors, employees, government, customers, suppliers, and community organizations**, with their respective communication channels and areas of concern outlined[152](index=152&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - In 2019, the Group's raw coking coal and clean coking coal production were **4.41 million tonnes and 2.75 million tonnes**, respectively, with sales revenue of approximately **HKD 3,869 million**[159](index=159&type=chunk) - In 2019, the Group distributed approximately **HKD 901 million in dividends to shareholders**, incurred approximately **HKD 712 million in employee costs**, and paid approximately **HKD 440 million in income tax to the government**[160](index=160&type=chunk) [Product Liability](index=40&type=section&id=PRODUCT%20LIABILITY) The Group is committed to maintaining continuous supply, stable quality, and customer privacy for its coking coal products; by establishing a safety and quality standardization system, a quality technology center, and a sales confidentiality system, it ensures product safety, controllable quality, and customer information protection; no product recalls or major customer complaints occurred during the reporting period - The Group is committed to **continuous supply, stable quality, and customer privacy**[163](index=163&type=chunk) - Through the construction of coal mine safety and quality standardization, high-quality coking coal mines in continuous production have obtained **Level 1 or Level 2 safety and quality standardization certifications**[163](index=163&type=chunk)[165](index=165&type=chunk) - The Group established a **Quality Technology Center** to strengthen coal quality and blending management, and formulated a **"Sales Confidentiality System"** to regulate business personnel from lending out sales-related information[165](index=165&type=chunk)[166](index=166&type=chunk) - During the reporting period, the Group had **no product recalls due to safety and health reasons**, nor did it receive any major complaints regarding products and services[166](index=166&type=chunk) [Supply Chain Management](index=40&type=section&id=SUPPLY%20CHAIN%20MANAGEMENT) The Group ensures the rationality, transparency, and quality of product and service selection, while striving to reduce costs, by formulating a "Procurement Management System" and utilizing tender processes - The Group's basic criteria for selecting qualified suppliers include **reasonable procurement prices, stable and timely supply, high-quality products and services, and a strong sense of social responsibility**[167](index=167&type=chunk) - The Group primarily conducts procurement activities through **bidding and tendering**, with the entire process supervised by the Bidding and Tendering Committee to ensure transparency and enhance fairness, openness, and impartiality[167](index=167&type=chunk)[169](index=169&type=chunk) [Anti-Corruption](index=41&type=section&id=ANTI-CORRUPTION) The Group highly values employee professional conduct and ethical integrity, promoting anti-corruption through the "Employee Handbook" and "Measures for Preventing Occupational Crimes," strengthening power supervision, and requiring managers at or above department level to sign a "Pledge of Integrity in Performance of Duties" - The Group promotes anti-corruption education, strengthens power supervision and checks, and builds a corruption prevention system through its **"Employee Handbook"** and **"Measures for Preventing Occupational Crimes"**[171](index=171&type=chunk) - During the reporting period, all managers at or above department level within the Group signed the **"Pledge of Integrity in Performance of Duties for Leading Cadres"**[171](index=171&type=chunk) [Health and Safety](index=41&type=section&id=HEALTH%20AND%20SAFETY) The Group prioritizes safety production, enhancing standardization through establishing safety production entities, standardizing management systems, strengthening safety training, and conducting special rectifications; it strictly enforces the "Work Safety Law" and "Coal Mine Safety Regulations," and has established occupational disease prevention and control agencies; no work-related fatalities occurred during the reporting period - The Group places **safety production as its top priority**, establishing and operating safety production entities, standardizing its safety management system, and improving its management, technical management, and assessment and evaluation systems[172](index=172&type=chunk) - The Group strengthens special rectifications in safety supervision, gas, water prevention and control, electromechanical transportation, and roof management, enhancing comprehensive safety training and skill competitions for all employees, making safety management more standardized and systematic[172](index=172&type=chunk) - The Group strictly adheres to the **"Work Safety Law of the People's Republic of China"** and **"Coal Mine Safety Regulations"** regarding occupational disease prevention and control, establishing dedicated agencies responsible for managing occupational disease prevention and control in coal mines[173](index=173&type=chunk)[176](index=176&type=chunk) - During the reporting period, the National Coal Mine Safety Administration rated the Group's continuously producing high-quality coking coal mines as **Level 1 or Level 2 safety and quality standardization certified**[178](index=178&type=chunk) - During the reporting period, the Group had **no work-related fatalities**[178](index=178&type=chunk) [Environmental Responsibility](index=42&type=section&id=ENVIRONMENTAL%20RESPONSIBILITY) The Group adopts environmental protection as a key operating principle, formulating an "Environmental Management System" and strictly complying with national environmental laws and regulations; through measures such as optimizing mining efficiency, gas utilization, boiler upgrades, wastewater treatment, and solid waste prevention, it continuously reduces air pollutants and carbon emissions, and improves water and coal resource utilization - The Group formulated an **"Environmental Management System"**, clarifying responsibilities of various levels of organizations and personnel regarding coal resources, pollutants, and resource use, and referenced multiple national environmental laws and regulations[179](index=179&type=chunk) - The Group's pollutant discharge outlets have been equipped with **online monitoring equipment** as per national environmental protection authorities, enabling real-time supervision of environmental protection policy implementation[179](index=179&type=chunk) - During the reporting period, the Group had **no significant violations of national environmental protection laws and regulations**[180](index=180&type=chunk) - The Group strives to improve resource recovery and utilization rates by optimizing labor organization and coal blending, and has introduced a **centralized control unmanned conveyor belt system** in all production mines[183](index=183&type=chunk) - The Group has fully implemented **flue gas desulfurization, dust prevention, and boiler technological upgrades** to reduce atmospheric pollutant emissions, and is constructing a **gas oxidation heating device project at Xingwu Coal Mine** to achieve "green mining" and "zero" gas emissions[184](index=184&type=chunk)[188](index=188&type=chunk)[191](index=191&type=chunk) Environmental Responsibility Performance (2019 vs 2018) | Metric | Unit | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Total Sulfur Dioxide Emissions | Kilograms | 2,257 | 27,291 | | Total Soot Emissions | Kilograms | 12,401 | 12,137 | | Total Gas Emissions | Ten thousand cubic meters | 3,482 | 3,787 | | Mine Water Discharge | Ten thousand tonnes | 176 | 164 | | Gangue Discharge | Ten thousand tonnes | 140 | 76 | | Coal Recovery Rate | % | 87% | 86% | | Comprehensive Energy Consumption for Raw Coking Coal Production | kg standard coal equivalent/tonne | 4 | 4 | | Electricity Consumption | Ten thousand kWh | 21,129 | 17,824 | | Fresh Water Consumption | Ten thousand tonnes | 54 | 60 | | Gas Utilization Rate | % | 53% | 55% | | Mine Water Utilization Rate | % | 40% | 35% | [Employee Responsibility](index=48&type=section&id=EMPLOYEE%20RESPONSIBILITY) The Group upholds a people-oriented employee responsibility philosophy, strictly complies with mainland Chinese labor laws and regulations, provides competitive remuneration and benefits, and a comprehensive training and development system, while striving to create a fair, open, and trusting work environment, prohibiting discrimination and illegal employment - The Group highly values a people-oriented employee responsibility philosophy, resolutely safeguarding employees' legitimate rights and interests, caring for their physical and mental well-being, and actively cultivating talent[213](index=213&type=chunk)[214](index=214&type=chunk) - The Group strictly complies with relevant mainland Chinese employment laws and regulations, including the **"Labor Law of the People's Republic of China," "Labor Contract Law," and "Social Insurance Law"**[214](index=214&type=chunk)[215](index=215&type=chunk) - The Group implements an **equal, fair, and open recruitment system**, prohibiting any discrimination and illegal or irregular employment, with no instances of child labor or forced labor[224](index=224&type=chunk)[227](index=227&type=chunk) - The Group comprehensively assesses employee remuneration based on job responsibilities, performance, skills, seniority, working environment, and human resource market indicators, and provides various incentive reward systems[217](index=217&type=chunk)[218](index=218&type=chunk) - Employees enjoy benefits such as **pension insurance, medical insurance, unemployment insurance, work injury insurance, maternity insurance, housing provident fund** (collectively known as "five insurances and one fund"), and paid leave[219](index=219&type=chunk) - As of December 31, 2019, the Group had **4,882 mainland Chinese employees**, comprising **4,222 males and 660 females** (females do not engage in underground coal mining work)[225](index=225&type=chunk)[228](index=228&type=chunk)[232](index=232&type=chunk) - The Group has established a **three-tier training system**, organized **2,170 person-times of safety training in 2019**, and increased education and professional title subsidies, enhancing employees' learning enthusiasm and initiative[233](index=233&type=chunk)[234](index=234&type=chunk) [Social Responsibilities of the Group](index=52&type=section&id=SOCIAL%20RESPONSIBILITIES%20OF%20THE%20GROUP) The Group actively maintains harmonious community relations, conducts environmental impact assessments before project initiation, and implements measures to mitigate impacts on communities and residents; through ongoing subsidence area relocation projects, it builds new homes for residents, improves living quality, and continuously provides employment opportunities - When conducting business, the Group commissions **independent third parties to conduct environmental impact assessments** and takes all feasible measures to minimize the impact of its operations on nearby communities and local residents[235](index=235&type=chunk)[236](index=236&type=chunk) - The Group continuously implements a **mining subsidence area relocation project**, building new homes for community residents, improving their quality of life, and continuously providing employment opportunities in the region[236](index=236&type=chunk) [Directors' Biographies](index=53&type=section&id=DIRECTORS%27%20BIOGRAPHIES) [Executive Directors](index=53&type=section&id=Executive%20Directors) Introduces the educational background, professional qualifications, past and current positions, and extensive experience of the company's executive directors within the company and relevant industries - Mr. Ding Rucai (55), Professor-level Senior Engineer, holds a Ph.D. from the School of Metallurgical and Ecological Engineering, University of Science and Technology Beijing, with extensive experience in managing listed companies, mergers and acquisitions, production management of steel and coal enterprises, project engineering construction, iron ore and coking coal resource trading, and shipping management; currently serves as **Chairman of the Board**[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) - Mr. Fan Wenli (40), Senior Mining Engineer and Registered Safety Engineer, holds a Bachelor's degree from Wuhan University of Technology and a Master's degree from the University of Science and Technology Beijing, with extensive experience in both open-pit and underground mine management; appointed as **Executive Director and Managing Director on November 1, 2019**[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk) - Mr. Su Guohao (66), Executive Director and Deputy Managing Director, has extensive experience in the coal market, iron ore and coking coal resource trading, sales and marketing of electronic chemical products, and property investment[242](index=242&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk) - Mr. Chan Siu Keung (52), Executive Director and Deputy Managing Director, has extensive experience in coal mining enterprises, including safety production management, procurement and logistics management, mining resource development, and coal trading[243](index=243&type=chunk)[244](index=244&type=chunk) - Mr. Liu Qingshan (61), Executive Director and Deputy Managing Director, has extensive experience in accounting and finance within China's mining industry[245](index=245&type=chunk) [Non-executive Directors](index=55&type=section&id=Non-executive%20Directors) Introduces the educational background, professional qualifications, past and current positions, and extensive experience of the company's non-executive directors in relevant industries - Ms. Chang Cun (41), Chinese Certified Public Accountant and Certified Internal Auditor, holds a Bachelor of Economics from Beijing Business School and a Master of Management from Beijing Technology and Business University, with extensive experience in accounting, auditing, finance, and insurance industries[246](index=246&type=chunk)[247](index=247&type=chunk) - Mr. Shi Yubao (65), Senior Economist and Senior Political Engineer, graduated from Chongqing University with an MBA, possessing extensive experience in corporate management, strategic decision-making, and economics; appointed as **Non-executive Director on September 1, 2019**[248](index=248&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk) [Independent Non-executive Directors](index=56&type=section&id=Independent%20Non-executive%20Directors) Introduces the educational background, professional qualifications, past and current positions, and extensive experience of the company's independent non-executive directors in legal, financial, banking, and academic fields - Mr. Kee Wah Sze (72), Hong Kong International Notary Public and China Appointed Attesting Officer, holds a Master of Laws in Chinese and Comparative Law from City University of Hong Kong and a Master of Laws from Renmin University of China, with many years of practice in Hong Kong, specializing in commercial and property conveyance legal business[250](index=250&type=chunk)[251](index=251&type=chunk) - Mr. Choi Wai Yin (61), holds a Master of Finance from City University of Hong Kong, a Bachelor of Business Administration from The Chinese University of Hong Kong, and a Bachelor of Laws from Peking University, with extensive experience in finance and fund management[252](index=252&type=chunk) - Mr. Chan Pak Lam (71), has extensive experience in international banking in Hong Kong, Macau, and the United States[253](index=253&type=chunk)[254](index=254&type=chunk) - Mr. Lo Man Yue (68), obtained a Ph.D. in Mechanical/Industrial Engineering from the University of Texas at Austin in **1976**, formerly a professor at The Chinese University of Hong Kong, and a consultant to various institutions in Hong Kong and overseas[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) [Corporate Governance Report](index=59&type=section&id=CORPORATE%20GOVERNANCE%20REPORT) [Compliance with Corporate Governance Code](index=59&type=section&id=COMPLIANCE%20WITH%20CORPORATE%20GOVERNANCE%20CODE) The company complied with the Corporate Governance Code in FY2019, except that non-executive directors do not have a specific term of office but are subject to retirement by rotation at least once every three years under the company's articles of association, which the Board deems sufficient to achieve the Code's objectives - The Company complied with the code provisions of the Corporate Governance Code for the financial year ended December 31, 2019, except for a deviation from code provision A.4.1 regarding the specified term of office for non-executive directors[259](index=259&type=chunk) - All Directors (including non-executive and independent non-executive Directors) are subject to retirement by rotation and re-election by shareholders at the annual general meeting, at least once every **three years**, in accordance with the articles of association[259](index=259&type=chunk)[261](index=261&type=chunk) [Model Code for Securities Transactions](index=59&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers under the Listing Rules as its code of conduct, which all directors complied with in 2019, and prohibits employees who may possess inside information from trading company shares during blackout periods - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers** under the Listing Rules for Directors' securities transactions[262](index=262&type=chunk) - All Directors complied with the standards set out in the Model Code and the Company's code of conduct for Directors' securities transactions for the year ended December 31, 2019[262](index=262&type=chunk) - Any employee who may possess inside information regarding the Company or its shares is **prohibited from trading company shares during blackout periods**[262](index=262&type=chunk) [Board of Directors](index=60&type=section&id=BOARD%20OF%20DIRECTORS) The Board of Directors, comprising 11 members, exhibits significant diversity and is responsible for overall strategy formulation and performance monitoring; the Board holds regular meetings, ensures adequate information, and has procedures for directors to seek independent professional advice; Board members are subject to periodic retirement by rotation and re-election, with the number of independent non-executive directors meeting Listing Rules requirements and actively participating in corporate governance - The Board currently comprises **11 Directors**, consisting of **5 executive Directors, 2 non-executive Directors, and 4 independent non-executive Directors**[265](index=265&type=chunk) - The Company has adopted a **Board Diversity Policy**, considering factors such as gender, age, cultural and educational background, professional experience, skills, knowledge, and length of service[272](index=272&type=chunk) - The Company has adopted a **Director Nomination Policy**, outlining criteria and procedures for nominating and appointing Directors to ensure the Board possesses the necessary skills, experience, and diverse perspectives relevant to the Company's business[273](index=273&type=chunk)[275](index=275&type=chunk) - The Board holds at least **4 meetings annually** and endeavors to circulate agendas and relevant meeting materials to all Directors at least **3 days** before the scheduled Board meeting date[279](index=279&type=chunk)[282](index=282&type=chunk) - The Board has established procedures for Directors to seek independent professional advice when appropriate, with the costs borne by the Company[283](index=283&type=chunk) 2019 Board Meeting Attendance Record | Director | Board Meeting Attendance/Eligible Attendance | | :--- | :--- | | Ding Rucai (Chairman) | 6/6 | | Fan Wenli | 1/1 | | Su Guohao | 6/6 | | Chan Siu Keung | 5/6 | | Liu Qingshan | 6/6 | | Chang Cun | 6/6 | | Shi Yubao | 2/2 | | Kee Wah Sze | 6/6 | | Choi Wai Yin | 6/6 | | Chan Pak Lam | 6/6 | | Lo Man Yue | 6/6 | - Each Director must retire by rotation at least once every **three years** and is eligible for re-election at the general meeting[299](index=299&type=chunk) - The Company has appointed **4 independent non-executive Directors**, comprising **over one-third of the Board**, with at least **one possessing expertise in accounting or related financial management**, all considered independent by the Company[301](index=301&type=chunk)[304](index=304&type=chunk) - All Directors have provided the Company with records of their training received during FY2019, covering areas such as legal, financial, management, and Group business[311](index=311&type=chunk)[312](index=312&type=chunk) [Chairman and Managing Director](index=70&type=section&id=CHAIRMAN%20AND%20MANAGING%20DIRECTOR) The roles of Chairman and Managing Director are separated and held by different individuals to enhance independence and accountability; the Chairman leads the Board, ensuring good corporate governance and effective communication, while the Managing Director is responsible for the Group's business development and daily management - The roles of Chairman and Managing Director are separated and held by different individuals to enhance their independence and accountability[314](index=314&type=chunk) - Chairman Mr. Ding Rucai is responsible for leading the Board, ensuring good corporate governance, adequate information, encouraging discussion, and effective communication[314](index=314&type=chunk)[315](index=315&type=chunk) - Mr. Fan Wenli, the Company's Managing Director (succeeding Mr. Li Shaofeng on **November 1, 2019**), assumes the overall duties of Chief Executive Officer, responsible for the Group's overall business development and daily management[314](index=314&type=chunk) - During the year, the Chairman held meetings with independent non-executive Directors without the presence of other Directors[316](index=316&type=chunk) [Board Committees](index=72&type=section&id=BOARD%20COMMITTEES) The Board has established an Executive Committee, Audit Committee, Nomination Committee, and Remuneration Committee, each with clear written terms of reference, to assist the Board in fulfilling its responsibilities and report resolutions to the Board - The Board has established an **Executive Committee, Audit Committee, Nomination Committee, and Remuneration Committee** to oversee specific areas of the Company's affairs and assist the Board in performing its duties[319](index=319&type=chunk) - The Executive Committee comprises **all executive Directors**, with the Chairman serving as its chairman, responsible for managing and supervising the Group's operations and fulfilling corporate governance responsibilities[320](index=320&type=chunk)[322](index=322&type=chunk)[323](index=323&type=chunk)[325](index=325&type=chunk) - The Audit Committee is chaired by an **independent non-executive Director** and comprises **all independent non-executive Directors**, responsible for overseeing the relationship with the company's auditor, reviewing financial reports, and examining risk management and internal control systems[327](index=327&type=chunk)[331](index=331&type=chunk) - The Nomination Committee is chaired by the Chairman, with independent non-executive Directors forming the majority; its main responsibilities include reviewing the Board structure, identifying suitable candidates for directorships, making recommendations on Director appointments or re-appointments, and assessing the independence of independent non-executive Directors[335](index=335&type=chunk)[339](index=339&type=chunk) - The Remuneration Committee is chaired by an **independent non-executive Director**, with independent non-executive Directors forming the majority; its main responsibilities include recommending the Company's overall remuneration policy and structure for the Group's Directors and senior management, and determining the remuneration packages for individual executive Directors and senior management[343](index=343&type=chunk)[348](index=348&type=chunk) [Company Secretary](index=79&type=section&id=COMPANY%20SECRETARY) The Company Secretary ensures smooth internal information flow within the Board, adherence to policies and procedures, and advises the Board on corporate governance and the implementation of the Corporate Governance Code; the Company Secretary reports to the Chairman and Managing Director and must undergo at least 15 hours of professional training - The Company Secretary supports the Board, ensuring good information flow among Board members and adherence to Board policies and procedures[351](index=351&type=chunk) - The Company Secretary reports to the Chairman and the Company's Managing Director, and all Directors have access to the Company Secretary's advice and services[352](index=352&type=chunk) - The Company Secretary confirmed having received at least **15 hours of relevant professional training** during the year[352](index=352&type=chunk) [Risk Management and Internal Control](index=80&type=section&id=RISK%20MANAGEMENT%20AND%20INTERNAL%20CONTROL) The Group established internal control and risk management systems referencing the COSO framework, with the Board responsible for assessing and defining risk appetite, and implementing risk governance through a "three lines of defense" model; the internal audit department independently assesses system effectiveness, and management continuously monitors risk management procedures - The Group established and implemented an internal control system suitable for its operations, referencing the **COSO Integrated Internal Control Framework**, covering a series of internal control elements including control environment, risk assessment, control activities, information and communication, and monitoring activities[354](index=354&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk) - The Board is responsible for the internal control system and for reviewing its suitability and effectiveness; the Audit Committee is authorized to assist the Board in conducting such reviews[357](index=357&type=chunk) - The Group has an **Internal Audit Department** that reports directly to the Audit Committee, independently reviewing all of the Group's operations, risk management, and internal control systems[362](index=362&type=chunk) - The Group's risk management system is based on the **"three lines of defense" model**, with continuous Board oversight, and the Audit Committee's review findings reported to the Board on the effectiveness of the risk management system[368](index=368&type=chunk)[369](index=369&type=chunk) - The Group established and implemented risk management policies and procedures suitable for its operations, referencing the **COSO Enterprise Risk Management Framework**, and developed both top-down and bottom-up risk management procedures[370](index=370&type=chunk)[372](index=372&type=chunk)[373](index=373&type=chunk)[375](index=375&type=chunk)[376](index=376&type=chunk) [Inside Information Disclosure Policy](index=85&type=section&id=INSIDE%20INFORMATION%20DISCLOSURE%20POLICY) The company adopted an Inside Information Disclosure Policy on December 21, 2015, aiming to prevent uneven, inadvertent, or selective disclosure of inside information and ensure shareholders and the public receive comprehensive, accurate, and timely information; the policy covers procedures for identifying, assessing, and reporting inside information, as well as confidentiality responsibilities for relevant personnel - The Company adopted an **Inside Information Disclosure Policy on December 21, 2015**, aiming to prevent uneven, inadvertent, or selective disclosure of inside information and ensure shareholders and the public receive comprehensive, accurate, and timely information or data regarding the Group's business and financial condition[378](index=378&type=chunk) - The policy covers procedures for identifying, assessing, and submitting potential inside information to the Board, as well as the responsibility of senior officers to maintain confidentiality of inside information[378](index=378&type=chunk) - The Company has communicated the implementation of the Inside Information Disclosure Policy to all relevant employees[379](index=379&type=chunk) [Auditor's Remuneration](index=86&type=section&id=AUDITOR%27S%20REMUNERATION) In 2019, the company paid a total remuneration of HKD 2,014,000 to its auditor, PricewaterhouseCoopers, for statutory audit services and non-statutory audit services 2019 Auditor's Remuneration | Service Type | Amount (Thousand HKD) | | :--- | :--- | | Statutory Audit Services | 1,600 | | Non-statutory Audit Services (Review of interim financial report) | 350 | | Other Services | 64 | | **Total** | **2,014** | [Directors' Responsibility for the Financial Statements](index=86&type=section&id=DIRECTORS%27%20RESPONSIBILITY%20FOR%20THE%20FINANCIAL%20STATEMENTS) The Board acknowledges its responsibility to prepare true and fair financial statements in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, and to provide a balanced
首钢资源(00639) - 2019 - 中期财报

2019-09-12 08:49
Revenue and Profitability - Revenue for the six months ended June 30, 2019, was HK$1,978,168,000, a decrease of 1% compared to HK$1,959,940,000 in the same period of 2018[11] - Profit for the period decreased by 2% to HK$660,027,000, compared to HK$671,510,000 in the previous year[12] - Profit attributable to owners of the Company increased by 0.4% to HK$640,388,000, from HK$638,045,000[13] - Total comprehensive income for the period was HK$1,053,648,000, an increase of 79.0% from HK$587,709,000 in 2018[29] - Profit for the six months ended June 30, 2019, was HK$640,388,000, slightly up from HK$638,045,000 in 2018, indicating a growth of approximately 0.4%[98] - The Group's turnover for the six months ended 30 June 2019 was approximately HK$1,960 million, a decrease of 1% year-on-year from HK$1,978 million in the same period of 2018[178] - The net profit for the same period was approximately HK$660 million, with profit attributable to the owners of approximately HK$640 million, reflecting a decrease of approximately HK$41 million and HK$35 million YoY due to exchange rate impacts[181] Gross Profit and Margins - Gross profit increased by 1% to HK$1,064,516,000, with a gross profit margin of 54%, up from 53%[12] - Gross profit for the six months ended June 30, 2019, was approximately HK$1.065 billion, an increase of approximately HK$11 million or 1% YoY, with a gross profit margin of 54% compared to 53% in the prior year[195] - The cost of sales decreased by approximately HK$29 million or 3% YoY to approximately HK$895 million, influenced by exchange rate changes[185] Assets and Liabilities - Total assets as of June 30, 2019, were HK$22,148,515,000, representing a 4% increase from HK$21,251,042,000 at the end of 2018[16] - Total liabilities increased by 7% to HK$4,769,717,000, compared to HK$4,475,236,000 in the previous year[16] - Total equity attributable to owners increased by 4% to HK$15,967,927,000, from HK$15,384,116,000[16] - Total current assets rose to HK$7,711,050, compared to HK$7,395,292, reflecting an increase of about 4.26%[31] - Total non-current assets reached HK$14,437,465, an increase from HK$13,855,750, marking a growth of around 4.19%[31] - Total current liabilities decreased to HK$2,386,374 from HK$1,893,007, indicating a reduction of approximately 25.9%[138] Cash Flow and Cash Management - Cash and cash equivalents increased by 8% to HK$4,649,913,000, up from HK$4,307,335,000[16] - Cash generated from operations was HK$1,124,343,000, resulting in a net cash inflow from operating activities of HK$785,709,000[39] - The Group maintained a healthy financial position with free bank balances and cash of approximately HK$4.65 billion as of June 30, 2019, up from approximately HK$4.31 billion at the end of 2018[184] - Interest income for the period was approximately HK$71 million, an increase of approximately HK$12 million or 20% YoY compared to HK$59 million in the same period of 2018[196] Production and Sales - For the six months ended 30 June 2019, the Group produced approximately 2.24 million tonnes of raw coking coal, a year-on-year decrease of 5% from 2.35 million tonnes in the same period of 2018[173] - Clean coking coal production increased by 18% year-on-year to approximately 1.38 million tonnes, up from 1.17 million tonnes in the same period of 2018[173] - Sales volume of clean coking coal rose by 22% year-on-year, while sales volume of raw coking coal dropped significantly by 94% year-on-year[174] - The average realised selling price of raw coking coal increased by 30% year-on-year to RMB 955/tonne, compared to RMB 733/tonne in the same period of 2018[176] - The average realised selling price of clean coking coal rose by 4% year-on-year to RMB 1,424/tonne, up from RMB 1,366/tonne in the same period of 2018[176] Expenses and Costs - Staff costs, including directors' emoluments, increased to HK$316,112,000 for the six months ended June 30, 2019, compared to HK$274,986,000 in 2018[87] - Selling and distribution expenses were approximately HK$124 million, an increase of approximately HK$18 million or 17% YoY compared to HK$106 million in the same period of 2018, primarily due to an increase in sales volume of clean coking coal by approximately 202,000 tonnes[199] - The production cost of raw coking coal increased by 6% YoY, while cash production costs rose by 4% YoY, attributed to a 5% decrease in production volume and inflation[194] Financial Reporting and Compliance - The interim financial information was prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with applicable disclosure provisions[44] - The auditor's report on the financial statements was unqualified, indicating no significant issues were raised during the audit process[167] - The Group's financial statements for the year ended December 31, 2018, have been delivered to the Registrar of Companies as required, ensuring compliance with statutory obligations[166] Changes in Accounting Policies - The Group adopted HKFRS 16 retrospectively from January 1, 2019, recognizing lease liabilities previously classified as operating leases, measured at the present value of remaining lease payments[55] - The change in accounting policy on January 1, 2019, resulted in an increase of HK$31,844,000 in lease liabilities and right-of-use assets, and an increase of HK$60,062,000 in land use rights[64] Other Income and Gains - Other income and gains, net, increased to HK$50,284,000 from HK$21,554,000, marking a significant rise of 133.4%[27] - The increase in other income was mainly due to a HK$10 million or 57% YoY increase in income from sales of by-products and an HK$18 million increase in net foreign exchange gains[198]
首钢资源(00639) - 2018 - 年度财报

2019-04-09 10:47
Financial Performance - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[3]. - User data showed a growth in active users to 5 million, up from 4 million in the previous year, indicating a 25% increase[3]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to $1.32 billion[3]. - The company reported a net profit margin of 12%, an improvement from 10% in the previous year[3]. - Revenue for the year ended December 31, 2018, was HKD 3,686,176 thousand, representing a 6% increase from HKD 3,471,922 thousand in 2017[11]. - Gross profit for 2018 was HKD 1,900,542 thousand, a 1% increase from HKD 1,875,404 thousand in 2017[11]. - EBITDA for 2018 was HKD 2,028,196 thousand, showing no change compared to HKD 2,027,696 thousand in 2017[11]. - Basic earnings per share for 2018 increased by 2% to HKD 20.76 from HKD 20.38 in 2017[11]. - The net profit attributable to owners before impairment losses was HKD 1,100,488 thousand, a 2% increase from HKD 1,080,649 thousand in 2017[11]. - The company experienced a decrease in net profit attributable to owners after impairment losses, which was HKD 1,100,488 thousand in 2018, down 3% from HKD 1,182,584 thousand in 2017[11]. - The company’s net profit attributable to shareholders was HKD 1.1 billion for the year[28]. - The total comprehensive income for the year was HKD 590,653,000, significantly lower than HKD 2,061,643,000 in 2017, marking a decline of about 71.4%[189]. Market Expansion and Product Development - New product launches included a state-of-the-art mining technology that is expected to reduce operational costs by 20%[3]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[3]. - A strategic acquisition of a local competitor was completed, valued at $200 million, aimed at enhancing market capabilities[3]. - The company plans to resume production at the Jinjiazhuang mine in the second half of 2019 after temporary suspension for engineering works[21]. - The company achieved a raw coking coal production of 4.07 million tons in 2018, an increase of 2% year-on-year[31]. - The average selling price of raw coking coal reached RMB 786 per ton, up 15% year-on-year, while the average selling price of premium coking coal was RMB 1,451 per ton, an increase of 5%[31]. Sustainability and Corporate Governance - The company emphasized its commitment to sustainability, with plans to reduce carbon emissions by 40% by 2030[3]. - The board of directors highlighted the importance of corporate governance, with a new compliance framework implemented[3]. - The company has adopted a board diversity policy to ensure sustainable and balanced development, considering factors such as gender, age, cultural background, and professional experience[63]. - The company has complied with the corporate governance code, except for a deviation regarding the term of non-executive directors[60]. - The company has established various processes to ensure the quality of materials and construction through supplier negotiations and procurement improvements[55]. Financial Position and Assets - Total assets decreased by 2% to HKD 21,251,042 thousand in 2018 from HKD 21,694,645 thousand in 2017[12]. - Total liabilities increased by 4% to HKD 4,475,236 thousand in 2018 from HKD 4,318,962 thousand in 2017[12]. - Net asset value decreased by 3% to HKD 16,775,806 thousand in 2018 from HKD 17,375,683 thousand in 2017[17]. - The company reported goodwill, mining rights, and property, plant, and equipment valued at HKD 1,235 million, HKD 7,752 million, and HKD 3,235 million respectively as of December 31, 2018[182]. Risk Management and Internal Controls - The internal control system is based on the COSO framework, aiming to achieve operational, reporting, and compliance objectives across all business units[90]. - The risk management system is based on a three-line defense model to support the board's ongoing oversight of risk management[93]. - The management has provided confirmation to the audit committee regarding the effectiveness of the risk management system, which was reviewed and deemed sufficient[96]. - The audit committee has confirmed the effectiveness of the internal control system, including the procedures related to financial reporting and compliance with listing rules[92]. Employee and Community Engagement - The group employed 20 employees in Hong Kong and 5,105 employees in mainland China as of December 31, 2018[48]. - The company conducted safety training for 4,323 employees, specialized training for 356 employees, and safety production training for 119 employees in 2018[135]. - The company is committed to maintaining harmonious relationships with the community and has initiated a project to relocate residents affected by mining subsidence[136]. - Charitable donations made by the company during the year amounted to approximately HKD 173,000[141]. Environmental Performance - The total sulfur dioxide emissions decreased from 42,827 kg in 2017 to 27,291 kg in 2018, representing a reduction of approximately 36%[128]. - Dust emissions decreased from 29,957 kg in 2017 to 12,137 kg in 2018, a reduction of about 59%[128]. - The total amount of mine water discharged was reduced from 251,000 tons in 2017 to 164,000 tons in 2018, a decrease of approximately 35%[128]. - The company integrates sustainable development goals into daily operations, focusing on resource utilization and pollution reduction[109]. Shareholder Returns and Dividends - The company proposed a final dividend of HKD 0.085 per share for the year ended December 31, 2018, compared to HKD 0.072 per share in 2017[139]. - The dividend payout ratio for the year is 81%, consistent with the previous year[139]. - The total dividends distributed to shareholders for the fiscal year 2017 and the interim dividend for 2018 amounted to approximately HKD 1.156 billion[114]. - The company aims to distribute at least 40% of the net profit attributable to shareholders as dividends, considering various financial factors[138].