Revenue and Profitability - Revenue from coal business for the six months ended June 30, 2023, was RMB 1,905,924,000, a decrease from RMB 2,056,954,000 in the same period of 2022[18]. - For the six months ended June 30, 2023, the Group reported revenue of RMB 1,905,924,000, a decrease of 7.3% compared to RMB 2,056,954,000 in the same period of 2022[126]. - Gross profit for the six months ended June 30, 2023, was RMB 390.1 million, down 44.6% from RMB 703.6 million in the same period of 2022, resulting in a gross profit margin of 20.5% compared to 34.2% in 2022[24]. - Operating profit decreased by 57.9% to RMB 259.3 million for the six months ended June 30, 2023, from RMB 615.9 million in the same period of 2022[29]. - Profit after taxation for the six months ended June 30, 2023, was RMB 140.1 million, a decrease of 62.3% from RMB 371.2 million in the same period of 2022[30]. - Profit attributable to equity shareholders for the six months ended June 30, 2023, was RMB 130.8 million, down 60% from RMB 327.4 million in the same period of 2022[31]. - Total comprehensive income for the period was RMB 124,695,000, down 66.7% from RMB 374,399,000 in the same period of 2022[126]. - Profit for the period attributable to equity shareholders decreased to RMB 130,798,000 in 2023 from RMB 327,374,000 in 2022, representing a decline of 60%[129]. - Basic earnings per share attributable to equity shareholders decreased to RMB 5.14 cents in 2023 from RMB 13.03 cents in 2022, a decrease of 60.5%[129]. Coal Production and Sales - Coal handling and trading volume increased to 2,702,000 tonnes for the six months ended June 30, 2023, compared to 2,575,000 tonnes in the same period of 2022[18]. - Average coal selling prices decreased, ranging from RMB 557 to RMB 941 per tonne in the first half of 2023, compared to RMB 528 to RMB 1,295 per tonne in the same period of 2022[18]. - Average coal selling price for the six months ended June 30, 2023, was RMB 705 per tonne, a decrease of 11.8% from RMB 799 per tonne in the same period of 2022[23]. - Raw coal production volume for the six months ended June 30, 2023, was 3,724,000 tonnes, a decrease of 2.1% from 3,805,000 tonnes in 2022[61]. - Commercial coal production volume for the same period was 2,415,000 tonnes, down 2.3% from 2,473,000 tonnes in 2022[63]. - The production of raw coal in China for the first half of 2023 was 2,300 million tonnes, an increase of 4.4% year-on-year, while imported coal volume was 220 million tonnes, up 93.0% year-on-year[32]. Financial Position and Liabilities - As of June 30, 2023, net current liabilities were RMB 3,822.6 million, down from RMB 4,155.8 million as of December 31, 2022[68]. - The current ratio improved to 0.38 as of June 30, 2023, compared to 0.33 as of December 31, 2022[68]. - Total banking facilities as of June 30, 2023, were RMB 3,568.3 million, unchanged from December 31, 2022[80]. - The gearing ratio improved to 25.8% as of June 30, 2023, down from 32.1% as of December 31, 2022[82]. - The Group's debt-to-asset ratio improved to 25.8% as of June 30, 2023, compared to 32.1% as of December 31, 2022, due to an increase in cash and cash equivalents[85]. - Borrowings due for immediate payment amounted to approximately RMB 1,302,136,000, down from RMB 1,330,634,000 as of December 31, 2022[154]. - Short-term bank borrowings were RMB 562,492,000, compared to RMB 590,990,000 as of December 31, 2022, indicating a reduction in short-term debt[154]. Investments and Capital Expenditure - Capital expenditure for the six months ended June 30, 2023, was RMB 361.1 million, an increase of 36.4% from RMB 264.7 million in 2022[69]. - Total exploration, mining, and development expenses amounted to RMB 881.4 million in 2023, a decrease of 4.9% from RMB 927.2 million in 2022[67]. - The Group entered into a procurement contract for equipment worth approximately RMB 156 million for the SDE coal mine, including key machinery for coal extraction[40]. Safety and Environmental Practices - The Group emphasizes production safety and invests in innovative technology and digitization to enhance safety management culture in coal mines[44]. - The Group has implemented safety measures and emergency drills to enhance safety awareness among employees during the National "Safe Production Month" in June 2023[48]. - The Group is actively promoting ecological civilization and green energy development, aligning with the Chinese government's policies[49]. Strategic Focus and Future Outlook - The Group continued to focus on its coal business activities in China while expanding its integrated coal supply chain overseas during the reporting period[16]. - The Group's strategic focus includes enhancing operational efficiency and expanding market reach in both domestic and international markets[16]. - The management remains optimistic about future growth prospects despite the challenges in coal pricing[16]. - The Group plans to accelerate coal production in currently operating mines and apply for the renewal of expired coal mining rights to enhance internally generated funds and operating cash inflows[170]. Legal and Compliance Matters - The Group recognized other borrowings with carrying amounts of RMB 2,524,154,000 as of June 30, 2023, down from RMB 2,607,894,000 as of December 31, 2022[157]. - There are ongoing litigations against the Group primarily related to settling long outstanding payables with interest[158]. - The conditions indicate a material uncertainty regarding the Group's ability to continue as a going concern[159]. - The financial statements are unaudited and should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2022[150]. - The Company has complied with the applicable code provisions in the Corporate Governance Code throughout the six months ended June 30, 2023[106].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 中國秦發集團有限公司 CHINA QINFA GROUP LIMITED （於開曼群島註冊成立的有限公司） （股份代號︰00866） 截至二零二三年六月三十日止六個月之 中期業績 董事會謹此提述本公司日期為二零二三年八月十一日的盈利警告公佈。本集 團截至二零二三年六 月三十日止六個月的財務摘要載列如下： • 截至二零二三年六月三十日止六個月錄得收益人民幣1,905,900,000元，較 二零二二年同期減少7.3%。 • 截至二零二三年六月三十日止六個月分別錄得煤炭經營及貿易量以及商 業煤產量約2,700,000噸及2,400,000噸，較二零二二年同期增加4.9%及減少 2.3%。 • 截至二零二三年六月三十日止六個月的毛利率為20.5%，而二零二二年 同期則為34.2%。毛利率減少主要由於動力煤平均售價下降。 • 截至二零二三年六月三十日止六個月的經營溢利為人民幣259,300,000元， 而二零二二年 ...

Financial Performance - For the year ended December 31, 2022, the turnover was RMB 3,794,039,000, a decrease of 16.8% from RMB 4,559,180,000 in 2021[14]. - Gross profit for 2022 was RMB 1,273,283,000, down 34.3% from RMB 1,941,119,000 in the previous year[14]. - Operating profit for the year was RMB 1,020,470,000, compared to an operating profit of RMB 4,330,857,000 in 2021, indicating a significant decline[14]. - Profit attributable to equity shareholders for 2022 was RMB 456,543,000, a decrease of 83.7% from RMB 2,793,546,000 in 2021[14]. - The Group's gross profit margin decreased to 33.6% in 2022 from 42.6% in 2021, primarily due to a decrease in production volume and revenue while the cost of sales remained relatively constant[83][88]. - The net profit margin decreased to 12.9% from 69.9%[172]. - The Group's sales volume decreased by over 60% in Q4 2022 compared to Q4 2021 due to COVID lockdowns affecting transportation infrastructure[2]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 7,850,531,000, slightly down from RMB 7,896,513,000 in 2021[15]. - Total liabilities decreased to RMB 7,037,320,000 in 2022 from RMB 7,579,998,000 in 2021[15]. - Total equity increased to RMB 813,211,000 in 2022, up from RMB 316,515,000 in 2021, indicating a recovery in equity position[15]. - As of December 31, 2022, the Group had net current liabilities of RMB 4,155.8 million, up from RMB 2,709.1 million in 2021, with a current ratio of 0.33 compared to 0.41 in 2021[98]. - The current ratio declined to 0.33 in 2022 compared to 0.41 in 2021, indicating a decrease in liquidity[172]. - The gearing ratio as of December 31, 2022, was 32.1%, down from 33.7% in 2021, attributed to loan repayments during the year[110]. Production and Operations - Coal handling and trading volume for 2022 was 4,528,000 tonnes, a decrease of 26% from 6,115,000 tonnes in 2021[14]. - In 2022, the Group's raw coal production increased by 9% year-on-year to 4,500 million tonnes, while imported coal volume decreased by 9.2% year-on-year to 290 million tonnes[34]. - The total raw coal production for the year was 6.97 million tonnes, impacting the reserves[56]. - Total raw coal production for 2022 was 6,966,000 tonnes, a decrease of 26.8% from 9,522,000 tonnes in 2021[60]. - Commercial coal production volume in 2022 was 4,522,000 tonnes, down 26.9% from 6,189,000 tonnes in 2021[60]. Revenue Streams - Revenue from coal business in 2022 was RMB3,794.0 million, a decline of 15.7% compared to RMB4,498.98 million in 2021[65]. - Revenue from power plants increased to RMB850.4 million in 2022, accounting for 22.4% of total revenue, compared to RMB518.8 million and 11.5% in 2021[73]. - Revenue from coal traders decreased to RMB2,943.6 million in 2022, making up 77.6% of total revenue, down from RMB3,980.2 million and 88.5% in 2021[73]. Costs and Expenses - The cost of sales for the Group in 2022 was RMB2,520.8 million, representing a decrease of 4.0% from RMB2,618.1 million in 2021[78]. - Exploration, mining, and development expenses totaled RMB1,784.1 million in 2022, an increase from RMB1,684.5 million in 2021[65]. - Distribution expenses decreased by 53.6% to RMB 2.1 million in 2022 from RMB 4.5 million in 2021, attributed to the absence of one-off commission expenses on vessel disposals[85][90]. - Administrative expenses increased by 21.8% to RMB 305.3 million in 2022 from RMB 250.7 million in 2021, mainly due to rising staff costs[86][91]. - Net finance costs decreased by 29.7% to RMB 253.7 million in 2022 from RMB 360.8 million in 2021, primarily due to repayment of borrowings[95]. Strategic Initiatives - The company plans to stabilize its current business and create opportunities for development despite macroeconomic challenges[19]. - Management is focused on leveraging extensive experience to navigate uncertainties and challenges in the market[19]. - The Group's core strategy of "seeking progress in stability" has enabled it to navigate economic cycles successfully[21]. - The Group is committed to achieving carbon neutrality by 2060 and is focusing on high-quality transformation and the construction of intelligent coal mines[141][143]. - The Group is closely monitoring macroeconomic developments and adjusting strategies to mitigate risks associated with economic fluctuations and national policies[159]. Awards and Recognition - The Group won the "China's Preferred Employer of the Year" award in 2022, reflecting its strong employer brand and corporate values of "integrity and diligence"[26]. - The Group was recognized in the "China Energy (Group) Top 500" list for its annual operating income, indicating its potential for development and ability to guide sustainable energy industry growth[20]. Environmental and Compliance - The Group strictly complies with various laws and regulations, including the Environmental Protection Law and Labour Law of the PRC[6]. - The establishment of an ESG Committee is aimed at monitoring sustainability performance and ensuring responsible procurement practices[7]. - The Group aims to minimize environmental impact by enhancing resource efficiency and reducing pollutant emissions[8]. - The board believes that the group has complied with all relevant laws and regulations affecting its business and operations[197]. Dividend and Shareholder Information - The Board does not recommend the payment of a final dividend for the year ended 31 December 2022, consistent with 2021[125][130]. - The Directors did not recommend the payment of a dividend for the year ended December 31, 2022[5]. - Fortune Pearl International Limited, the controlling shareholder, pledged 949,000,000 shares, representing approximately 38.06% of the issued share capital, to secure loans of approximately RMB 2,008,380,000 as of December 31, 2022[122].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不對因本公佈全部 或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 中國秦發集團有限公司 CHINA QINFA GROUP LIMITED （於開曼群島註冊成立的有限公司） （股份代號︰00866） 截至二零二二年十二月三十一日止年度之 末期業績 董事茲提述本公司日期為二零二三年三月十七日的盈利警告公佈，並將本集 團截至二零二二年十二月三十一日止年度的末期業績列示如下： • 二零二二年的收益為人民幣38億元，較二零二一年的人民幣46億元減少 16.8%。 • 二零二二年煤炭經營及貿易量以及商業煤產量分別為約4,530,000噸及 4,520,000噸，較二零二一年減少26.0%及減少27.0%。 • 二零二二年的毛利率為33.6%。與二零二一年42.6%的毛利率相比，毛利 率減少乃主要由於產量及收益減少而銷售成本相對持平所致。 • 二零二二年的經營溢利為人民幣10億元，而二零二一年的經營溢利則為 人民幣43億元（包括(i)煤炭採礦權之減值虧損撥回人民幣14億元；(ii) ...

Revenue and Profitability - Revenue from coal business for the six months ended June 30, 2022, was RMB 2,056,954,000, an increase from RMB 1,572,535,000 in the same period of 2021, representing a growth of approximately 30.7%[27]. - Revenue for the six months ended June 30, 2022, was RMB 2,056,954, an increase of 28% compared to RMB 1,605,452 in the same period of 2021[126]. - Gross profit for the period was RMB 703,599, representing a 34% increase from RMB 523,963 in the previous year[126]. - Profit after taxation for the six months ended June 30, 2022, was RMB 371.2 million, down RMB 107.4 million or 22.4% from RMB 478.6 million in the same period of 2021[36][41]. - Profit attributable to equity shareholders for the six months ended June 30, 2022, was RMB 327.4 million, compared to RMB 472.8 million in the same period of 2021[37][42]. - Total comprehensive income for the period was RMB 374,399, compared to RMB 483,698 in the same period last year, indicating a decrease of 23%[126]. - Basic earnings per share decreased to RMB 13.03 cents from RMB 18.87 cents, a decline of 30% year-over-year[129]. - The Group's gross profit for the six months ended June 30, 2022, was RMB 703.6 million, compared to RMB 524.0 million in the same period of 2021, resulting in a gross profit margin of 34.2% versus 32.6%[33][38]. Coal Production and Sales - Coal handling and trading volume for the same period was 2,575,000 tonnes, a decrease from 2,725,000 tonnes in 2021, indicating a decline of about 5.5%[27]. - The average coal selling price for the six months ended June 30, 2022, was RMB 799 per tonne, an increase from RMB 577 per tonne in the same period of 2021[30]. - The total raw coal production for the period from January 1, 2022, to June 30, 2022, was 3.80 million tonnes, a decrease from 4.11 million tonnes in the same period of 2021[75]. - The commercial coal production volume for the six months ended June 30, 2022, was 2.47 million tonnes, compared to 2.67 million tonnes in the same period of 2021[76]. - Average coal selling prices increased significantly, ranging from RMB 528 to RMB 1,295 per tonne in 2022, compared to RMB 345 to RMB 801 per tonne in 2021, reflecting a substantial rise in market prices[27]. Financial Position and Liabilities - As of June 30, 2022, the Group's net current liabilities decreased to RMB 2,290.7 million from RMB 2,709.1 million as of December 31, 2021, resulting in a current ratio improvement to 0.45 from 0.41[83]. - The total liabilities decreased to RMB 4,140,927 from RMB 4,580,923, a reduction of approximately 10%[131]. - The Group's cash and cash equivalents amounted to RMB 1,016.4 million as of June 30, 2022, down 1.4% from RMB 1,030.4 million as of December 31, 2021[90]. - The total bank and other borrowings of the Group were RMB 1,453.3 million as of June 30, 2022, compared to RMB 1,475.9 million as of December 31, 2021, indicating a decrease of approximately 1.5%[91]. - The gearing ratio of the Group as of June 30, 2022, was 32.6%, slightly improved from 33.8% as of December 31, 2021[98]. - The Group's total banking facilities were RMB 3,502.6 million as of June 30, 2022, a decrease from RMB 3,962.6 million as of December 31, 2021[97]. Operational Strategies and Future Outlook - The Group continued to focus on its core coal operations in China while expanding its foreign operations during the reporting period[25]. - Future strategies include enhancing logistics services and transportation to improve delivery efficiency to coastal customers[23]. - The management remains optimistic about future growth prospects despite the decrease in trading volume, focusing on market expansion and operational efficiency[25]. - The Group aims to streamline the approval process for the mining business license transfer in Indonesia, which is expected to expedite the transfer of the mining operating license[56]. - The Group is actively engaged in the construction of necessary infrastructure, including roads and wharfs, to support coal transportation for the SDE Coal Mine[59]. - The Group plans to accelerate coal production in currently operating mines and apply for the renewal of expired coal mining rights to increase internally generated funds and operating cash inflows in the coming years[164]. Market Conditions and Challenges - From January to June 2022, imported coal volume was 115 million tonnes, down 17.5% from the same period last year, contributing to high domestic thermal coal prices[46][48]. - The Group expects a decline in imported coal volume in the second half of 2022 due to global energy supply tightness[118]. - The domestic coal supply is anticipated to remain high, with coal prices expected to stay relatively elevated[119]. - The peak season for coal consumption in China is expected to increase demand from November to December 2022[119]. Corporate Governance and Compliance - The Group's audit committee has reviewed the unaudited interim financial statements for the six months ended June 30, 2022[117]. - The Company has complied with the Corporate Governance Code throughout the reporting period[116]. - The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), ensuring compliance with global accounting standards[152]. Employee and Social Responsibility - As of June 30, 2022, the Group employed 2,945 employees and has adopted a performance-based reward system to motivate staff[118]. - The Group's subsidiaries in the PRC are required to pay monthly social insurance premiums covering various insurances for employees[110]. - Training programs for Indonesian frontline staff are being implemented to enhance their skills and provide local employment opportunities[121].

Financial Performance - The Group reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous year[10]. - The company's turnover for the year ended December 31, 2021, was RMB 4,559,180, a significant increase from RMB 2,247,363 in 2020, representing a growth of approximately 102.0%[12]. - Gross profit for 2021 reached RMB 1,941,119, compared to RMB 355,315 in 2020, indicating a growth of about 446.5%[12]. - The operating profit for 2021 was RMB 4,330,857, a turnaround from an operating loss of RMB 3,946,158 in 2020[12]. - Profit for the year attributable to equity shareholders was RMB 2,793,546, compared to a loss of RMB 2,901,499 in the previous year[12]. - Total revenue for the year ended 31 December 2021 was RMB 4,498.98 million, a significant increase from RMB 2,190.11 million in 2020, representing a growth of 105.9%[85]. - The coal business revenue for 2021 reached RMB 4,498.98 million, a significant increase from RMB 2,190.11 million in 2020, reflecting a growth of approximately 105.9%[74]. - The average coal selling price in 2021 was RMB 736 per tonne, up from RMB 367 per tonne in 2020, indicating a price increase of about 100%[81]. - The net profit margin turned positive at 69.9% in 2021, a significant improvement from a loss margin of (152.9%) in 2020[163][165]. Operational Highlights - User data showed an increase in active users, reaching Z million, which is an A% increase year-over-year[10]. - Cash flow from operations increased by I%, providing a solid foundation for future investments[10]. - The total raw coal production for the year 2021 was 9.52 million tonnes, compared to 8.78 million tonnes in 2020, representing an increase of approximately 8.4%[70]. - The commercial coal production volume for 2021 was 6,189 thousand tonnes, compared to 5,710 thousand tonnes in 2020, representing an increase of approximately 8.4%[70]. - The total coal handling and trading volume for 2021 was 6,115 thousand tonnes, compared to 5,964 thousand tonnes in 2020, showing an increase of approximately 2.5%[78]. - The average monthly coal handling and trading volume in 2021 was 510 thousand tonnes, slightly up from 497 thousand tonnes in 2020[81]. Strategic Initiatives - The Group has provided a positive outlook for the next fiscal year, projecting revenue growth of B%[10]. - New product launches are expected to contribute an additional $C million in revenue, enhancing the overall product portfolio[10]. - Market expansion efforts are underway, targeting E new regions, which are anticipated to increase market share by F%[10]. - The Group is considering strategic acquisitions to bolster its market position, with potential targets identified[10]. - The company is actively seeking development opportunities in foreign markets and exploring merger and acquisition opportunities, particularly focusing on a project in Indonesia as a key growth driver[16]. - The Group is in the process of acquiring 70% equity interest in five additional mining business licenses, with government approvals pending[45]. - The Group successfully acquired the SDE coal mine in Indonesia in 2021 and is expediting its commissioning to put it into operation as soon as possible[126][129]. Financial Management - The Group's debt-to-equity ratio improved to H%, indicating a stronger financial position[10]. - The Group reached a loan restructuring proposal, reducing the original debt by approximately RMB 404,088,649, resulting in an outstanding principal balance of RMB 435,636,667[46][49]. - The Group's bank and other borrowings as of 31 December 2021 totaled RMB 1,475.9 million, down from RMB 1,971.0 million in 2020[113]. - The gearing ratio decreased to 33.8% as of 31 December 2021 from 83.8% in 2020, attributed to an increase in total assets[113]. - The Group aims to improve cash flow by negotiating with creditors and exploring various financing and repayment plans[46][49]. - The Group's financial management policies focus on maintaining a healthy financial condition, funding operations through internally generated resources and borrowings[110]. Environmental and Social Governance - The company has established an ESG committee and task force to enhance its environmental, social, and governance practices, aiming to protect stakeholder interests[17]. - The Group aims to minimize environmental impact by enhancing resource efficiency and reducing pollutant emissions[172]. - The establishment of an ESG Committee is intended to monitor sustainability performance and ensure responsible procurement practices[178]. - The Group is committed to promoting green production to reduce its carbon footprint[172]. - The company is focusing on low-carbon transformation research and phasing out outdated technologies to contribute to environmental protection and emissions reduction[23]. Safety and Risk Management - The company is committed to improving production safety and adhering to relevant laws and regulations to prevent accidents[18]. - The management emphasizes the importance of risk prevention and control to navigate the challenges posed by the changing external environment and coal market[25]. - The Group is focused on enhancing safety management and control systems in coal mining operations to mitigate safety risks[156][159]. - The Group will closely monitor credit exposure and adjust credit lines and periods to manage liquidity risks due to potential cash flow issues among customers[157][160].

Revenue and Profitability - Revenue from coal business for the six months ended June 30, 2021, was RMB 1,572,535,000, a significant increase from RMB 821,962,000 in the same period of 2020[15] - For the six months ended June 30, 2021, the company's revenue was RMB 1,605,452,000, a significant increase from RMB 845,685,000 in the same period of 2020, representing a growth of approximately 89.5%[101] - The gross profit for the same period was RMB 523,963,000, compared to RMB 82,544,000 in 2020, indicating a substantial increase of about 534.5%[101] - Profit attributable to equity shareholders for the six months ended June 30, 2021, was RMB 472.8 million, a significant recovery from a loss of RMB 54.8 million in the same period in 2020[27] - The profit for the period was RMB 478,581,000, a turnaround from a loss of RMB 84,948,000 in the previous year[104] - The consolidated profit before taxation for the six months ended June 30, 2021, was RMB 473,349, a recovery from a loss of RMB 143,494 in 2020[149] - The profit before taxation for the reportable segment was RMB 650,546 for the six months ended June 30, 2021, compared to RMB 34,738 in 2020, indicating a substantial increase[149] Coal Production and Sales - Coal handling and trading volume increased to 2,725,000 tonnes in the first half of 2021, compared to 2,672,000 tonnes in the same period of 2020[15] - The Group's raw coal production and commercial coal production for the six months ended June 30, 2021, were 4.1 million tonnes and 2.67 million tonnes, respectively, representing a year-over-year increase of 6.6%[34] - Raw coal production for the six months ended June 30, 2021, was 4,110,000 tonnes, an increase from 3,856,000 tonnes in the same period of 2020, representing a growth of 6.6%[60] - Commercial coal production for the same period was 2,672,000 tonnes, up from 2,507,000 tonnes in 2020, indicating a year-over-year increase of 6.6%[61] - The average coal selling price for the six months ended June 30, 2021, was RMB577 per tonne, representing an increase of 87.3% compared to the same period in 2020[34] - The increase in average coal selling prices was primarily due to a significant rise in coal market prices during the reporting period[16] Financial Position and Liabilities - As of June 30, 2021, the Group recorded net current liabilities of RMB 3,534 million, a decrease from RMB 4,204.7 million as of December 31, 2020[67] - The Group's total borrowings as of June 30, 2021, included RMB790.5 million that was past due[71] - The Group's cash and cash equivalents totaled RMB2,180.2 million as of June 30, 2021, down from RMB2,534.2 million as of December 31, 2020[77] - The gearing ratio as of June 30, 2021, was 77.7%, a decrease from 83.8% as of December 31, 2020, primarily due to an increase in cash and cash equivalents[71] - The Group's bank deposits of approximately RMB2,085,000 were restricted for use in relation to ongoing litigation proceedings[125] - The Group's ability to continue as a going concern is under significant doubt due to existing financial conditions[125] Strategic Initiatives and Market Expansion - The Group expanded its integrated coal supply chain to overseas markets during the first half of 2021[13] - The Group is focusing on the Indonesian coal market, believing it has significant development potential due to rich coal resources, and plans to acquire 70% shareholding interests in five new mining companies in Indonesia[96] - The Group entered into heads of agreements for the establishment of five new project companies to acquire mining business licenses in South Kalimantan, Indonesia, aiming to expand its overseas market presence[42] - The Group's management remains optimistic about future growth opportunities in both domestic and international markets[13] Operational Efficiency and Cost Management - The Group's strategic focus includes enhancing logistics services and expanding coal supply capabilities[13] - Cost control measures will be implemented in sales costs, administrative expenses, and capital expenditures to increase internally generated funds[4] - The Group is actively negotiating with financial institutions to renew and extend bank borrowings to improve working capital[68] Legal and Compliance Issues - The management has indicated that there are several litigations against the Group, primarily concerning long outstanding payables with interest[125] - The Group has appointed external and internal lawyers to handle outstanding litigations and mitigate legal risks[4] Environmental and Technological Initiatives - The company is actively implementing national policies on green energy development, utilizing innovative technologies for green mining and pollution control, and phasing out high energy consumption processes[97] Employee and Operational Metrics - The Group employed 2,397 employees as of June 30, 2021, and has adopted a performance-based reward system[82] - Staff costs for the six months ended June 30, 2021, were RMB 142.19 million, up from RMB 121.88 million in 2020, marking an increase of 16.6%[66]

Financial Performance - The Group reported a total revenue of approximately HKD 1.2 billion for the fiscal year, representing a year-on-year increase of 15%[10] - The net profit for the year was approximately HKD 300 million, reflecting a growth of 20% compared to the previous year[10] - Future guidance estimates a revenue growth of 10-15% for the next fiscal year, driven by increased demand and market expansion[10] - The Group's total assets increased to HKD 5 billion, with a debt-to-equity ratio of 0.5, indicating a strong financial position[10] - The Group's net loss attributable to equity shareholders for the year ended 31 December 2020 was RMB2.90 billion, a decline of approximately RMB2.98 billion compared to a profit of RMB81.4 million in 2019[90] - The Group incurred a net loss of approximately RMB3,436,870,000 for the year ended 31 December 2020[140] - The Group's financial performance decline was attributed to significant impairment losses on assets and losses from debt restructuring[90] User and Market Growth - User data indicated an increase in active users by 25%, reaching a total of 500,000 users by the end of the fiscal year[10] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share over the next two years[10] - The Group aims to maintain its leading position in the coal market while expanding into new areas for sustainable growth[20] - The domestic demand for coal is expected to increase significantly in 2021, providing rigid support for coal prices[123] Product Development and Innovation - New product launches are expected to contribute an additional HKD 200 million in revenue in the upcoming fiscal year[10] - The Group has allocated HKD 50 million for research and development of new technologies aimed at enhancing operational efficiency[10] - The Group plans to enhance coal production volume through the acquisition of a coal mine in Indonesia, with design and construction expected to commence within 2021[127] Acquisitions and Investments - The company is exploring potential acquisitions to enhance its product offerings and market reach, with a budget of HKD 100 million set aside for this purpose[10] - The Group is progressing with the acquisition of the PT Sumber Daya Energi coal mine in Indonesia, which is considered one of the most important investment projects, with government approvals currently being sought[33] - The closing date for the acquisition of the SDE coal mine has been extended to June 30, 2021, due to the need for additional time to satisfy certain conditions[34] Operational Challenges - The Group experienced a loss for the year of RMB 3,436,870, compared to a profit of RMB 80,723 in 2019, marking a significant decline[11] - The coal industry faced challenges in the first quarter of 2020 due to the COVID-19 pandemic, leading to low coal consumption and weak demand from downstream industries[31] - The Group's ability to continue as a going concern is under significant doubt due to its financial conditions and ongoing litigations[140] Financial Management and Strategy - The management plans to adjust strategies prudently to enhance financial flexibility in response to macroeconomic uncertainties and coal market volatility[16] - Management is focused on improving free cash flow and controlling operating costs due to anticipated increases in future operating expenses[130] - The Group will continue to monitor macroeconomic developments and adjust its strategies accordingly[5] Compliance and Governance - The Group is subject to various laws and regulations, ensuring compliance to avoid significant impacts on its business[176] - The Group's management is focused on ensuring compliance with regulations and minimizing risks during the acquisition process[34] Human Resources - The Group employed 2,070 employees as of 31 December 2020, with a performance-based reward system in place[134] - Administrative expenses rose by 48.0% to RMB208.4 million in 2020, compared to RMB140.8 million in 2019, mainly driven by increased staff costs[89] Litigation and Legal Matters - There are several unsettled litigations against the Group, primarily requesting immediate repayment of certain payables with interest[140] - The Group has initiated arbitration against non-controlling shareholders for compensation totaling RMB3,331,918,853 due to material adjustments in coal reserves[115] Future Outlook - The Group plans to improve production efficiency and explore investment opportunities to ensure a stable supply of coal amid uncertainties regarding imports from Australia[125] - The Group aims to develop overseas coal markets and establish long-term relationships, having set up branches in countries including Indonesia and Singapore[127]

Revenue and Profitability - Revenue from coal business for the six months ended June 30, 2020, was RMB 821,962,000, a decrease from RMB 1,288,964,000 in the same period of 2019, representing a decline of approximately 36.3%[15] - Revenue for the six months ended June 30, 2020, was RMB 845,685,000, a decrease of 36.3% from RMB 1,328,667,000 in the same period of 2019[117] - Gross profit for the six months ended June 30, 2020, was RMB 82.5 million, down 56.7% from RMB 190.8 million in the same period of 2019, resulting in a gross profit margin of 9.76% compared to 14.36% in 2019[22] - The company reported a net loss of RMB 84,948,000 for the period, compared to a profit of RMB 51,484,000 in 2019[119] - Total comprehensive loss for the period was RMB 83,806,000, contrasting with a total comprehensive income of RMB 51,389,000 in the previous year[119] Production and Sales - Coal handling and trading volume decreased to 2,672,000 tonnes for the six months ended June 30, 2020, down from 3,387,000 tonnes in the corresponding period of 2019, a reduction of about 21.0%[15] - Production volumes of raw coal and commercial coal were 3.86 million tonnes and 2.50 million tonnes respectively, representing a decrease of 12% compared to the same period in 2019[29] - Total raw coal production for the period from January 1, 2020, to June 30, 2020, was 3.87 million tonnes, a decrease from 4.37 million tonnes in the same period of 2019, representing a decline of approximately 11.9%[56] - Commercial coal production volume for the six months ended June 30, 2020, was 2.507 million tonnes, down from 2.846 million tonnes in 2019, indicating a decrease of about 11.9%[56] Market Conditions and Pricing - Average coal selling prices ranged from RMB 180 to RMB 433 per tonne during the six months ended June 30, 2020, compared to RMB 127 to RMB 486 per tonne in the same period of 2019, indicating a decrease in average selling price due to market fluctuations[15] - For the six months ended June 30, 2020, the average coal selling price was RMB 308 per tonne, a decrease of 19.1% from RMB 381 per tonne in the same period of 2019[20] - The average price of CCI4500 thermal coal was RMB 428 per tonne in the first half of 2020, down from RMB 457 per tonne in 2019[34] Financial Position and Liabilities - The Group recorded net current liabilities of RMB 4,491.8 million as of June 30, 2020[62] - As of June 30, 2020, the Group's total bank and other borrowings amounted to RMB2,210.8 million, an increase from RMB2,163.3 million in 2019[65] - The Group's cash and cash equivalents, excluding certain amounts held in HKD and USD, were primarily in RMB, with a gearing ratio of 49.1% as of June 30, 2020, up from 44.5% at the end of 2019[65] - The Group's total outstanding borrowings and interest payable could amount to approximately RMB 4,609,216,000 if defaults occur[146] Strategic Initiatives and Future Plans - The Group continued to focus on expanding its integrated coal supply chain through upward vertical integration during the reporting period[14] - The Group is in the process of acquiring a 70% equity interest in a mining company in Indonesia, with an aggregate consideration of IDR 385,000,000 (approximately RMB 190,000)[35] - The acquisition of SDE is expected to create synergies between the Group's mining expertise and Indonesia's natural resources, supporting future growth[40] - Future plans include promoting intelligent construction of coal mines and optimizing inventory resource allocation to build a green and efficient coal enterprise[94] Operational Efficiency and Cost Management - The Group's internal control improvements have led to material consumption, procurement quotas, and production costs being maintained within budget during the first half of the year[42] - The ongoing "inventory clearance and utilisation" initiative has successfully enhanced material turnover efficiency and overall benefits for the Group[43] - The Group has implemented cost control measures to manage sales costs, administrative expenses, and capital expenditures[155] Employee and Social Responsibility - The Group employed 2,117 employees as of June 30, 2020, and has a performance-based reward system in place[82] - The Group's subsidiaries in China are required to pay monthly social insurance premiums covering various insurances as per local regulations[83] Financial Reporting and Compliance - The Group's financial statements as of June 30, 2020, were prepared in accordance with International Accounting Standard 34, with no significant issues identified[107] - The financial statements are prepared in accordance with International Accounting Standards and are unaudited[141] - The significant judgements made by management in applying the Group's accounting policies were consistent with those applied in the previous financial year[169] Risks and Uncertainties - There are material uncertainties regarding the Group's ability to continue as a going concern, but it is expected to meet financial obligations for the next twelve months[112][113] - The Group has not obtained waivers from relevant banks/lenders regarding cross-default clauses as of the date of the financial statements[148] - The Group has appointed external and internal lawyers to handle outstanding litigations, aiming to mitigate risk exposure from invalid legal claims[159]

Financial Performance - The turnover for the year 2019 was RMB 2,799,520, a decrease of 23.4% compared to RMB 3,652,869 in 2018[12] - Gross profit for 2019 was RMB 406,558, representing a gross margin of approximately 14.5%[12] - Profit before taxation for 2019 was RMB 287,071, a significant decline from RMB 2,024,200 in 2018[12] - The profit attributable to equity shareholders for the year was RMB 80,723, down from RMB 1,683,468 in 2018[12] - The company reported a loss before taxation of RMB 85,229 in 2019, compared to a profit of RMB 1,504,509 in 2018[12] - The income tax credit for the year was RMB (4,506), contrasting with an income tax expense of RMB 1,759,082 in 2018[12] - Revenue from the coal business in 2019 was RMB 2,720,845,000, down 21.9% from RMB 3,482,441,000 in 2018[95] - The average selling price of coal in 2019 was RMB 358 per tonne, slightly up from RMB 343 per tonne in 2018[104] - The Group's gross profit for the year ended 31 December 2019 was RMB406.6 million, an increase from RMB390.7 million in 2018, primarily due to a decrease in cost of sales[119] - The total cost of sales for the coal business segment decreased to RMB2,281.7 million in 2019 from RMB3,131.3 million in 2018, reflecting a significant reduction[120] - Other income, gains, and losses for 2019 were RMB27.7 million, a decrease of approximately RMB1,922.5 million compared to RMB1,950.2 million in 2018, mainly due to the absence of a one-off gain from extinguished borrowings[121] - Net finance costs increased by 10.5% to RMB293.0 million in 2019 from RMB265.2 million in 2018, primarily due to rising borrowing rates[124] - Profit attributable to equity shareholders was RMB81.4 million in 2019, a decrease of approximately RMB1,423.1 million from RMB1,504.5 million in 2018, mainly due to the absence of a one-off gain recorded in 2018[124] Production and Operations - Coal handling and trading volume for 2019 was 80,723,000 tonnes, a decrease of 52.0% from 168,346,800 tonnes in 2018[12] - The company achieved a record high in coal production volume in 2019, laying a solid economic foundation for business expansion[29] - Total raw coal production volume for 2019 was 10,029,000 tonnes, a significant increase from 6,917,000 tonnes in 2018, representing a 45.7% growth[88] - Commercial coal production volume reached 6,519,000 tonnes in 2019, up from 4,469,000 tonnes in 2018, marking a 46.0% increase[88] - The total raw coal production for the year 2019 was 217.30 million tonnes, with a decrease of 10.02 million tonnes from the previous reserves[85] - The Group's coal mines produced commercial coal with energy content ranging from 17.08 to 22.25 MJ/kg[51] - The moisture content of the coal produced ranged from 2.07% to 12.11% across different mines[51] - The Group's coal mines have an average sulfur content of 0.31% to 2.40%[51] - As of December 31, 2019, the Group owned and operated five coal mines in China, with a total production capacity of 4.2 million tonnes[44] - The Group's coal production operations are currently under development or in operation, with one mine temporarily suspended[45] Assets and Liabilities - Total assets as of December 31, 2019, were RMB 9,354,633,000, a decrease from RMB 9,874,769,000 in 2018[15] - Total liabilities as of December 31, 2019, were RMB (8,789,369,000), down from RMB (9,391,923,000) in 2018[15] - Total equity increased to RMB 565,264,000 in 2019 from RMB 482,846,000 in 2018[15] - As of December 31, 2019, the Group recorded net current liabilities of RMB4,640 million, slightly down from RMB4,647 million in 2018[126] - The Group's cash and cash equivalents increased by 38.0% to RMB159.7 million as of December 31, 2019, compared to RMB115.7 million in 2018[126] - Total bank and other borrowings amounted to RMB2,163.3 million as of December 31, 2019, up from RMB1,987.8 million in 2018[126] - The gearing ratio as of December 31, 2019, was 44.5%, stable compared to 44.3% in 2018[128] - The Group's assets pledged for credit facilities totaled RMB5,046.6 million as of December 31, 2019, down from RMB5,452.3 million in 2018[129] Strategic Plans and Future Outlook - The company plans to focus on market expansion and new product development in the upcoming fiscal year[11] - Future outlook includes potential mergers and acquisitions to enhance market position[11] - The company is investing in new technologies to improve operational efficiency and reduce costs[11] - The company plans to acquire 70% equity interest in two new mining companies in Indonesia in the foreseeable future[30] - The management emphasized the importance of stabilizing the domestic market while intensifying global exposure in 2020[20] - The Company expects coal market supply and demand to maintain overall balance in 2020, with stable coal prices[131] - The Group aims to enhance safety management, increase production, and reduce costs as key performance indicators for 2020[131] - The project in Indonesia will be a development priority in 2020, focusing on applying advanced domestic production technology[135] - The Company plans to expand overseas business, particularly in the fast-growing coal market in Indonesia, to achieve strategic transformation[133] - The focus for 2020 will be on the development of the Indonesian coal mining project, leveraging advanced production technology and refined management practices[137] Management and Governance - The Group has established stable cooperative relationships with key domestic coal suppliers to ensure a reliable supply of quality coal[117] - The Group continues to stabilize coal production and expand its supplier network to ensure a consistent supply of coal with reliable quality[116] - The Group is closely monitoring its credit exposure and liquidity requirements due to potential cash flow issues among customers caused by the domestic economic slowdown[157] - The Group has implemented various safety management measures to mitigate production safety risks in coal mining operations[156] - The Group has complied with all relevant laws and regulations without any material breaches that could significantly impact its business[158] - The Company aims to reduce daily operating expenses, including transportation and office costs, by a greater extent than the previous year[139] - The Group plans to strengthen domestic production and marketing management to ensure stable development and create higher economic benefits[137] - The Company is dedicated to the high-quality transformation and development of its coal operations, aiming to build a green and efficient coal enterprise[141] Shareholder Information - The controlling shareholder pledged a total of 949 million ordinary shares, approximately 38.06% of the issued share capital, to secure loans amounting to RMB 4,881,500,000[141] - As of December 31, 2019, Ms. WANG Jianfei holds 100,000,000 shares, representing approximately 4.01% of the issued share capital of the Company[189] - Mr. XU Da owns 93,135,251 shares, accounting for approximately 3.74% of the issued share capital[189] - Mr. BAI Tao has a beneficial interest in 50,000,000 shares, which is about 2.01% of the issued share capital[189] - Mr. FUNG Wai Shing holds 45,000,000 shares, representing approximately 1.80% of the issued share capital, including options for an additional 20,000,000 shares[189] - Mr. LAU Sik Yuen has a beneficial interest in 500,000 shares, which is approximately 0.02% of the issued share capital[189] - Mr. XU Jihua, a substantial shareholder, has a beneficial interest in 14,229,610 shares and also controls 1,154,000,000 shares, representing 46.28% of the issued share capital[195] - Yangyuan Jintong Transportation Corp. Ltd. holds 215,000,000 shares, accounting for approximately 8.62% of the issued share capital[195] - The Company has confirmed the independence of its independent non-executive Directors as per the Listing Rules[184] - No significant transactions or contracts involving Directors were reported during the year[182] - All retiring Directors are eligible for re-election at the Annual General Meeting[178] - As of December 31, 2019, no individuals other than directors or the chief executive have notified the company of interests or short positions in the shares that require disclosure under the SFO[198] - The company has not recorded any interests or short positions in the register required to be kept under Section 336 of the SFO as of December 31, 2019[200]