CGN MINING(01164)

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中广核矿业(01164) - 2020 - 中期财报
2020-09-22 08:26
Financial Performance - The Group's revenue for the reporting period was approximately HK$926 million, representing a decrease of approximately 3% compared to the corresponding period of 2019[12]. - Profit attributable to the owners of the Company was approximately HK$112 million, reflecting a substantial increase of approximately 45% compared to the same period in 2019[13]. - Basic earnings per share for the reporting period amounted to approximately HK1.70 cents, representing an increase of approximately 45% compared to the corresponding period of 2019[13]. - The Group achieved a profit of HK$112 million and revenue of HK$926 million in the first half of 2020, representing a substantial increase of 45% in profit and a slight decrease of 3% in revenue compared to the same period in 2019[23]. - The Group recorded revenue of HK$925.63 million for the six months ended June 30, 2020, a decrease of 2.53% compared to HK$949.64 million in the same period of 2019[43]. - During the reporting period, the Group's profit amounted to HK$112.22 million, representing a significant increase of 44.73% from the corresponding period of 2019[52]. - Profit for the period attributable to owners of the Company rose to HK$112,222,000, up 44.6% from HK$77,538,000 in 2019[101]. - The profit before taxation for the six months ended June 30, 2020, was HK$126,898,000, compared to HK$83,744,000 for the same period in 2019[137]. Revenue Sources - The Group completed the sale of 303.3tU mine products and 1,154tU (3 million pounds U3O8) in the international market, generating approximately HK$924 million in trading revenue[23]. - The natural uranium trading segment generated revenue of HK$924,056,000, while the property investment segment contributed HK$1,575,000[132]. - Segment profit for natural uranium trading was HK$80,850,000, compared to HK$40,902,000 in the same period of 2019, reflecting a significant increase[137]. Cost and Expenses - The cost of sales decreased by 7.93% to HK$816.74 million from HK$887.09 million in the corresponding period of 2019[45]. - Gross profit margin improved to 11.76% in 2020 from 6.59% in 2019[39]. - EBITDA increased to HK$146.54 million, representing an increase from HK$95.82 million in the previous year[39]. - Other operating income significantly decreased by 58.94% to HK$6.24 million from HK$15.19 million in 2019[46]. - The Group's selling and distribution expenses amounted to HK$4.66 million, representing an increase of 74.09% compared to HK$2.67 million for the corresponding period of 2019[48]. - Administrative expenses amounted to HK$13.67 million, representing an increase of 9.73% compared to HK$12.46 million for the corresponding period of 2019[48]. Assets and Liabilities - The Group's total assets amounted to HK$3,897 million, representing an increase of 25.88% from HK$3,095 million as at 31 December 2019[53]. - The Group's total liabilities amounted to HK$1,948 million, representing an increase of 69.25% from HK$1,151 million as at 31 December 2019[53]. - As of June 30, 2020, the Group's current liabilities were HK$1,271 million, a significant increase of 162% compared to HK$486 million as of December 31, 2019, primarily due to increases in trade and other payables, loans from a fellow subsidiary, and bank borrowings related to inventory procurement[59]. - The current ratio decreased to 241.11% from 463.66% in the previous period[40]. - The debt to asset ratio increased to 50.00% from 37.19% in the previous period[40]. Cash Flow and Financing - The net cash used in operating activities was HK$973,386,000, compared to HK$72,099,000 for the same period in 2019, indicating a significant increase in cash outflow[111]. - The company completed a financing of USD 10 million in April 2020 to support the preliminary work of the PLS Project's environmental impact assessment and feasibility study[28]. - As of June 30, 2020, the Group has an unutilized borrowing facility of USD 794.14 million to support operations and mitigate cash flow volatility[65]. - The Group has sufficient financial resources for daily operations and does not have seasonal borrowing demands[65]. Market and Industry Trends - The price of natural uranium rose significantly in the first half of 2020, with the spot price reaching a high of USD35.0 per pound in May before slightly declining to USD32.6 per pound by the end of the reporting period[21]. - The demand for nuclear fuel and natural uranium in China is expected to further increase with the ongoing development of the domestic nuclear power industry[18]. - As of June 2020, there were 440 nuclear reactors in operation globally, with 54 under construction, indicating a growing market for nuclear energy[19]. - The US Department of Energy announced a USD230 million Advanced Reactor Exemplary Program to revitalize domestic uranium mining and strengthen investment in advanced nuclear power research and development[17]. Corporate Governance - The Company has established an audit committee in compliance with the Listing Rules and Corporate Governance Code[87]. - The Board consists of two Executive Directors, three Non-Executive Directors, and three Independent Non-Executive Directors as of the report date[92]. - The Company has adopted the Corporate Governance Code and confirmed compliance with all provisions during the reporting period[92]. Shareholder Information - As of June 30, 2020, CGNPC holds 4,467,887,558 shares, representing 67.69% of the shareholding[70]. - CGNPC-URC Development has an interest in 4,288,695,652 shares, accounting for 64.97% of the shareholding[70]. - The weighted average number of ordinary shares for the purpose of basic earnings per share remained constant at 6,600,682,645 shares for both 2020 and 2019[156]. Inventory and Impairment - The inventory of uranium as of June 30, 2020, was HK$2,417,134, an increase of 67.6% from HK$1,441,980 as of December 31, 2019[178]. - The Group recognized a reversal of impairment loss of approximately HK$10,847,000 during the period due to the recovery of uranium prices[187]. Financial Instruments and Risks - The Group's sales and purchases were primarily settled in USD and RMB, with no significant foreign exchange risk impacting operations[65]. - The Group did not enter into any financial derivatives for hedging purposes during the reporting period[65].
中广核矿业(01164) - 2019 - 年度财报
2020-04-27 08:30
Financial Performance - Revenue from continuing operations for 2019 was HK$2,076,688, an increase of 27.7% from HK$1,625,974 in 2018[7] - Operating profit for 2019 was HK$196,638, compared to HK$172,623 in 2018, reflecting a growth of 13.9%[7] - Profit from continuing operations reached HK$160,009 in 2019, up from HK$122,066 in 2018, marking a 31.1% increase[7] - Profit for the year was HK$160,009, reflecting a significant increase from HK$122,066 in 2018[7] - Profit attributable to owners of the Company was HK$160 million, up 31.1% from HK$122 million in 2018, with basic earnings per share increasing to HK2.42 cents from HK1.85 cents[15] - The Group's profit for 2019 was HK$160 million, representing a 31% increase compared to 2018[88][111] - Total revenue for 2019 was HK$2,077 million, an increase of 28% from HK$1,626 million in 2018, driven by significant growth in natural uranium sales[89][94] Assets and Liabilities - Total assets as of December 31, 2019, were HK$3,095,366, an increase from HK$2,674,507 in 2018[8] - Total liabilities increased by 42% to HK$1,151 million as of December 31, 2019, primarily due to increased loans from a fellow subsidiary[113][117] - Net current assets rose by 32% to HK$1,766 million as of December 31, 2019, compared to HK$1,341 million in 2018, driven by higher inventory and trade receivables[114] - The Group's bank balances and cash were approximately HK$677 million, a decrease of HK$446 million (40%) year-on-year, with 32% in HKD, 67% in USD, and 1% in RMB[119] - Non-current liabilities increased by 184% to HK$666 million, mainly due to an increase in long-term loans from a fellow subsidiary[126] Trading and Market Performance - The annual trade volume of natural uranium reached 8.08 million pounds, generating sales revenue of US$218.78 million, marking a significant growth driver for the Company's performance[19] - The Company maintained a gross profit margin of 7%, consistent with the previous year[15] - The average spot price of natural uranium in 2019 was US$25.72/lb, while the long-term price stabilized at US$32/lb[29] - Spot transaction volume in the natural uranium market dropped by 40% compared to 2018, while long-term market transaction volume increased by 6.6%[29] Strategic Initiatives - The acquisition of CGN Global was completed on January 17, 2019, impacting the financial results for the year[9] - The company aims to become one of the top suppliers of natural uranium resources for nuclear power plants[3] - The New Kazakhstan Uranium Project is a top priority, with breakthrough progress expected in 2020 following efforts in 2019[11] - The company aims to increase trading profits through new trading models as part of its medium- to long-term strategy for overseas natural uranium trading[11] - The company plans to seek high-value uranium projects and favorable acquisition terms through dynamic tracking of potential targets[13] Corporate Governance - The Company emphasizes the importance of good corporate governance to enhance credibility and protect shareholder interests[139] - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code during the Reporting Period, with specific deviations noted[157] - The Board is responsible for formulating the overall strategy and policy of the Group, ensuring sufficient capital and management resources for implementation[164] - The Company has a comprehensive governance structure that includes various committees such as the Remuneration Committee, Audit Committee, and Nomination Committee[163] Management and Leadership - Mr. Yu Zhiping has over 29 years of experience in corporate management and nuclear fuel system operation[140] - Mr. An Junjing, the CEO, has been with the Group since January 2018 and has extensive experience in nuclear power management[143] - The leadership team includes experienced professionals with advanced degrees in engineering and business administration[143][145][146] - The Company aims to maintain a high-quality board and robust internal controls[141] Risk Management - The Board approved the comprehensive risk management report for 2019, which includes a summary of the risk management situation of 2018[168] - The Company has established a monitoring mechanism for the operating environments of overseas projects to mitigate international operation risks[79] - The Company is strengthening trade risk management to address uncertainties in international natural uranium trade[76] Future Outlook - The company estimates that the natural uranium market will remain oversupplied in the next few years, with slow inventory consumption and slight long-term price increases[60] - The nuclear power market is expected to grow, with several countries beginning preparations for new nuclear power plants[26] - The World Nuclear Association (WNA) has raised its expectations for future nuclear power and natural uranium demand for the first time since 2011, indicating an improvement in global nuclear power development[60]