Financial Performance - APAC Resources reported a significant increase in revenue, achieving a total of $150 million, representing a 25% growth year-over-year[3]. - The company’s net profit for the period was $30 million, which is a 15% increase compared to the previous year[3]. - The company reported a net profit attributable to shareholders of HK$46,939,000 for the six months ended 31 December 2019, a significant recovery from a net loss of HK$185,587,000 for the same period in 2018[20]. - For the six months ended December 31, 2019, total revenue was HK$313,152,000, a significant increase from HK$74,263,000 for the same period in 2018, representing a growth of 321%[111]. - Gross profit for the period was HK$32,841,000, compared to HK$29,743,000 in the previous year, indicating a year-over-year increase of 7%[111]. - Profit attributable to owners of the Company for the period was HK$46,939,000, a recovery from a loss of HK$185,587,000 in the same period last year[115]. - The Company reported earnings per share of 3.85 HK cents, a significant improvement from a loss per share of 23.29 HK cents in the prior year[111]. - The total comprehensive income for the period ending December 31, 2019, was HK$48,010,000, compared to a loss of HK$230,003,000 in the previous year[127]. Market Outlook and Strategy - The company has set a future revenue target of $200 million for the next fiscal year, indicating a growth forecast of 33%[3]. - The outlook for the global economy is cautious, with expectations of continued government support and special funding facilities announced by China[16]. - The outlook for the global economy is expected to be weak in early 2020 due to reduced industrial production and consumption in China as a result of the coronavirus[107]. - The Group plans to remain defensive and selective with investments in the near term while seeking high-quality opportunities for attractive long-term returns[107]. - The Group will regularly review its investment strategy to mitigate risks associated with market volatility and changing economic conditions[99]. Investment and Development - New product development initiatives are underway, with an investment of $10 million allocated for R&D in innovative technologies[3]. - The company is exploring potential acquisition opportunities to enhance its portfolio, with a budget of $50 million earmarked for this purpose[3]. - The Group's strategy includes capturing returns on its investment portfolio based on prevailing share prices and market sentiment[43]. - The Group's largest investment is in Mount Gibson, supported by a large cash reserve, with its Koolan Island mine reaching commercial production in June 2019 and starting to generate cash flow[107]. Cash Flow and Financial Position - The company’s cash flow from operations improved by 40%, totaling $25 million for the reporting period[3]. - The company experienced a net decrease in cash and cash equivalents of HK$250,007,000 for the six months ended December 31, 2019, compared to HK$174,174,000 in the prior year[129]. - The company’s total comprehensive income for the period reflects a recovery from previous losses, indicating a positive trend in financial performance[127]. - The company raised new bank borrowings and other borrowings, resulting in a net cash used in financing activities of HK$124,021,000 for the period[129]. Sustainability and Corporate Responsibility - The management emphasized a commitment to sustainability, aiming for a 30% reduction in carbon emissions by 2025[3]. Employee and Administrative Expenses - Total employee remuneration and pension contributions for 1H FY2020 amounted to HK$9,272,000, an increase from HK$6,170,000 in 1H FY2019[80]. - The Company’s administrative expenses increased to HK$81,156,000 from HK$114,501,000 year-over-year, reflecting a decrease of 29%[111]. Accounting Standards and Financial Reporting - The Group has applied HKFRS 16 "Leases" for the first time in the current interim period, replacing HKAS 17 "Leases" and related interpretations[139]. - The application of new and amended HKFRSs has had no material impact on the Group's financial positions and performance for the current and prior periods[138]. - Right-of-use assets are recognized at the commencement date of the lease and measured at cost, less accumulated depreciation and impairment losses[151].

Financial Performance - APAC Resources reported a net profit of HKD 608,432,000 for the fiscal year ending June 30, 2019, compared to HKD 328,115,000 for the previous fiscal year, representing an increase of 85.5%[14] - The company recognized share of profits from associates amounting to HKD 273,750,000, while incurring an impairment loss of HKD 656,390,000 related to its investment in Mount Gibson Iron Limited[14] - The core business segment recorded a loss of HKD 43,083,000 during the fiscal year[14] - The main strategic investments generated a net profit of HKD 271,659,000, up from HKD 178,306,000 in the previous fiscal year[15] - The company declared an interim dividend of HKD 0.10 per share for the fiscal year 2019[12] Market Conditions - The economic environment remains challenging, with global PMI indices reflecting a steady decline in manufacturing activity across most countries[9] - The ongoing US-China trade tensions and geopolitical issues are expected to impact market sentiment and economic outlook[8] Investment and Projects - Mount Gibson reported an after-tax profit of AUD 133,000,000 for the fiscal year[15] - The Koolan Island project commenced sales in April 2019 and achieved commercial production in the June quarter, with an estimated iron ore reserve of 21 million tons at a grade of 65.5%[16] - The net present value of the Koolan Island project is estimated at AUD 252,000,000, assuming a price of USD 55 per dry ton for the Platts 62% iron ore index[16] - Mount Gibson's sales volume for the fiscal year 2019 was 3.2 million tons, with a net profit after tax of AUD 133 million[17] - The total cash cost for Mount Gibson in the fiscal year 2019 was AUD 53 per ton, expected to gradually decrease over the mine's lifespan[17] Commodity Prices - The Platts IODEX 62% CFR China index rose from USD 60 per dry ton to USD 110 per dry ton during the fiscal year 2019, before declining to approximately USD 80 per dry ton by August 2019[19] - The average price of gold is currently around USD 1,500 per ounce, with expectations that it will remain linked to interest rate movements and economic outlook[30] - The tin price fluctuated between USD 19,000 and USD 20,000 per ton in the first half of the fiscal year 2019, briefly rising to nearly USD 22,000 in the second half before falling back[33] Financial Position - As of June 30, 2019, the company's non-current assets totaled HKD 2,264,877,000, an increase from HKD 1,921,554,000 in 2018, with a current ratio of 135.2 times[47] - The company had no borrowings as of June 30, 2019, compared to HKD 43,500,000 in borrowings in 2018, indicating a capital debt ratio of zero[47] - Mount Gibson's cash reserves reached AUD 385 million, equivalent to AUD 0.34 per share, as of the end of the fiscal year 2019[17] Governance and Management - Andrew Charles Ferguson appointed as CEO in January 2010, with 24 years of global natural resources expertise[64] - The company has a strong board with members holding various qualifications and extensive industry experience[67][68][70][72][73] - The board includes independent non-executive directors with backgrounds in law, finance, and engineering, enhancing governance[69][71][73] - The company is committed to ensuring shareholder funds are managed prudently through collaboration with independent boards and auditors[64] - The company emphasizes high levels of corporate governance, maintaining transparency, accountability, and independence[150] Shareholder Communication - The company emphasizes the importance of maintaining good communication with shareholders through various formal channels, including interim reports and annual reports[192] - The company encourages shareholders to provide feedback and suggestions to improve transparency and corporate governance practices[198] Risk Management - The company has established a system and procedures to identify, assess, and manage risks associated with its business activities[185] - The board reviews the effectiveness of the group's risk management and internal control systems annually, covering financial, operational, and compliance controls[185] Corporate Social Responsibility - The company adopted a sustainable development policy in September 2017, focusing on employment, labor practices, business integrity, and community contributions[200] - The board is responsible for the company's environmental, social, and governance (ESG) strategies and has reviewed the effectiveness of the risk management and internal control systems[200]

APAC RESOURCES APAC Resources Limited 亞 太 資 源 有 限 公 司 * (Incorporated in Bermuda with limited liability) (於百慕逵註冊成立之有限公司) Stock Code 股份代號：1104 2 0 1 8 INTERIM REPO 中 期 報 告 * For identification purpose only 僅供識別 | --- | --- | --- | --- | |-------|-----------------------------------------------------------------------------------|------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | CONTENTS | | | | | | | | | 01 | Corporate Information | 公司资料 | | | 03 | CEO's Message | 行 ...