Group 1 - CITIC Group is a large comprehensive enterprise group founded in 1979, headquartered in Beijing, and is one of the first multinational enterprises established after China's reform and opening up [1] - The group operates under a unique "finance + industry" dual-drive model, covering sectors such as finance, resource energy, high-end manufacturing, and engineering contracting [1] - CITIC Group has a significant presence in both domestic and international markets, consistently ranking in the Fortune Global 500 [1] Group 2 - CITIC Bank, established in 1987, is one of the earliest emerging commercial banks in China, providing a wide range of financial services [3] - CITIC Securities, founded in 1995, is the largest securities company in China, leading in investment banking market share for five consecutive years [5] - CITIC Special Steel, established in 1993, is a global leader in special steel manufacturing, with products used in high-end applications [7] Group 3 - CITIC Heavy Industries, founded in 2008, specializes in heavy machinery manufacturing and has a global presence in 68 countries [10][11] - CITIC Offshore Helicopter, established in 1999, is the largest general aviation operator in China, focusing on offshore oil and emergency rescue services [13] - CITIC Guoan Information Industry, founded in 1997, holds a significant position in the integrated information services sector [15] Group 4 - CITIC Metal, established in 1988, is a leading trader of metal and mineral products, with a focus on iron ore and non-ferrous metals [17] - CITIC Publishing Group, founded in 1993, is a leading publishing group in China, focusing on book publishing and digital reading [18] - CITIC Resources Holdings, established in 1997, engages in the exploration and trading of natural resources [20] Group 5 - CITIC International Financial Holdings serves as the main asset integration platform for CITIC Group, covering various sectors including finance and manufacturing [22] - CITIC International Telecommunications is one of the largest international telecommunications hubs in the Asia-Pacific region [24] - CITIC Financial Asset Management, restructured in 2023, focuses on managing non-performing assets and financial services [26] Group 6 - CITIC Group's listed companies benefit from a "strategic control + market-oriented operation" model, enjoying resource synergy while maintaining competitiveness in niche markets [26] - Many of the group's listed companies are currently undervalued compared to their industry positions, presenting potential investment opportunities [26] - The ongoing national policy for state-owned enterprise value reassessment and the effective layout of emerging industries may lead to structural opportunities for CITIC Group companies [26]

Financial Performance - The company achieved a revenue of approximately HKD 9.5 billion, representing a year-on-year growth of about 148.3%[16] - The net profit attributable to shareholders was approximately HKD 570 million, with a year-on-year increase of about 3.8%[16] - The return on equity was approximately 7.4%, indicating a stable financial condition and ample liquidity[16] - The company achieved a revenue of HKD 9,497.8 million in 2024, representing a 148.3% increase compared to HKD 3,825.6 million in 2023[24] - The EBITDA for 2024 was HKD 1,472.1 million, a 9.6% increase from HKD 1,342.9 million in 2023[24] - The net profit attributable to ordinary shareholders was HKD 572.6 million, up 3.8% from HKD 551.8 million in 2023[26] - The oil and gas trading business generated revenue of HKD 5,930 million in 2024, marking a significant growth and becoming a key driver for the group[20] - The aluminum segment recorded revenue of HKD 1,363.7 million, a 10% increase from the previous year, despite a 6% decline in sales volume[32] - The coal segment's revenue decreased by 29% to HKD 787.1 million, with an average selling price drop of approximately 19% year-on-year[35] - The commodity trading segment reported revenue of HKD 5,930.6 million, a significant increase from HKD 0.5 million in the previous year[36] Investments and Business Strategy - The company holds a 22.5% participating interest in the Portland Aluminium Smelter joint venture, one of the largest aluminium smelting operations globally[6] - The company has a 14% participating interest in the Coppabella and Moorvale coal mines joint venture, a major producer of low volatile pulverized coal[9] - The company plans to expand its oil and gas trading business over the next 2-3 years to enhance market influence and secure upstream investment opportunities[18] - The company aims to focus on investment opportunities in the aluminium industry chain through minority equity investments[18] - The group aims to consolidate its core business and expand through a "dual-driven investment and trade" strategy, focusing on increasing reserves and production[29] - The group plans to enhance operational stability and increase production capacity in its aluminum smelting operations, targeting an increase to approximately 80% capacity in 2024[35] - The group will focus on investing in the aluminum industry chain and exploring green energy transformation and industry upgrades[29] Financial Position and Cash Flow - Cash and deposits increased by 36.9% to HKD 2,031.4 million in 2024 from HKD 1,483.8 million in 2023[25] - Total assets rose by 9.0% to HKD 12,673.1 million in 2024, compared to HKD 11,624.4 million in 2023[25] - The company maintained a strong financial position with a net cash position of HKD (19.9) million, a significant decrease from HKD 346.9 million in 2023[25] - The group maintained a strong financial position with a net debt to net total capital ratio of zero as of December 31, 2024, compared to 4.2% in the previous year[63] - The group has a reasonable target of maintaining cash and unused bank credit at approximately USD 526.4 million (equivalent to about HKD 4,105.9 million) to meet future debt repayments and capital expenditures[60] - The total debt of the group as of December 31, 2023, was approximately HKD 2,011.5 million, an increase of about HKD 180.8 million from the previous year[58] Corporate Governance and Management - The company is committed to maintaining a good and reasonable corporate governance structure to ensure management integrity and protect shareholder interests[81] - The board consists of seven members, including two executive directors, one non-executive director, and four independent non-executive directors as of March 14, 2025[85] - The company has adopted a diversity policy for its board, considering factors such as gender, age, cultural and educational background, and professional experience[90] - The company aims to optimize management processes and improve production efficiency and economic benefits to achieve long-term sustainable development[81] - The board has established mechanisms to ensure independent opinions and data input are available, including external professional advice from legal advisors and auditors[89] - The company emphasizes risk management, compliance, and integrated internal control management as part of its core business strategy[81] Risk Management - The company aims to enhance its risk management policies to address various financial, operational, and regulatory risks[110] - The company has established a risk management and internal control system covering all business units to monitor and manage various risks[117] - The risk management committee reviewed the quality, integrity, and effectiveness of the company's risk management policies and procedures annually[117] - The board is responsible for assessing the nature and extent of risks the company is willing to take in achieving its strategic objectives[121] Shareholder Communication and Dividends - The company has adopted a dividend policy that allows for the proposal and declaration of dividends based on applicable laws and the company's financial management[124] - The board will consider maintaining a strong financial position and appropriate cash flow when determining dividend payments[125] - The company reported a final dividend of HKD 2.60 per share for the year ending December 31, 2024, an increase from HKD 2.50 in 2023, pending shareholder approval at the 2025 annual general meeting[140] - The company is committed to transparent communication with shareholders through various channels, including annual general meetings[131] Employee and Contractor Management - The group has 193 full-time employees as of December 31, 2024, a slight decrease from 195 in 2023[68] - The total outsourced contractor remuneration for the group is approximately HKD 337.1 million, down from HKD 345.2 million in 2023[68] - The group aims to attract and retain high-quality employees through a competitive compensation policy based on individual performance and the group's profitability[68] - The group has established a defined contribution retirement benefit plan for eligible employees in Australia and Hong Kong, with contributions calculated as a percentage of basic salary[69] Environmental and Social Responsibility - The company has integrated environmental protection into all activities and operations, promoting clean production and resource utilization[142] - The company received the "Outstanding Sustainable Enterprise Award" in the ESG field in March 2024, reflecting its commitment to environmental and social governance[21] Related Party Transactions - The independent non-executive directors have reviewed and confirmed that the ongoing related party transactions are conducted on normal commercial terms[177] - The company has complied with the applicable provisions of the Listing Rules regarding related party transactions[179] - The total amount of related party transactions did not exceed the annual cap set by the company[181]

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 9,497.8 million, representing a 148.3% increase compared to HKD 3,825.6 million in 2023[3] - EBITDA for the same period was HKD 1,472.1 million, up 9.6% from HKD 1,342.9 million in 2023[3] - Adjusted EBITDA increased by 1.4% to HKD 2,084.4 million from HKD 2,056.1 million year-on-year[3] - Profit attributable to ordinary shareholders was HKD 572.6 million, a 3.8% increase from HKD 551.8 million in 2023[5] - Total comprehensive income for the year was HKD 568.1 million, compared to HKD 547.2 million in 2023[8] - Total revenue for the year ending December 31, 2024, reached HKD 9,599,558,000, with sales to external customers amounting to HKD 9,497,808,000[17] - The company reported a pre-tax profit of HKD 696,760,000, with a notable increase in interest income to HKD 61,226,000 from HKD 73,917,000 in the previous year[23][25] - The company reported a basic earnings per share of HKD 0.073[31] - Net profit attributable to shareholders for 2024 was approximately HKD 572.6 million, a year-on-year increase of about 3.8%[38] Financial Position - The group maintained a strong financial position with cash and deposits of approximately HKD 2,031.4 million, up from HKD 1,483.8 million in 2023[5] - Non-current assets totaled HKD 9,209.5 million, slightly down from HKD 9,288.0 million in 2023[9] - Total equity increased to HKD 8,213.1 million from HKD 7,841.4 million in 2023[10] - The total assets of the group amounted to HKD 12,673,143,000, with classified assets contributing HKD 5,624,381,000[17] - The group’s total liabilities were HKD 4,460,070,000, with classified liabilities at HKD 1,888,655,000[17] - The company’s total assets as of December 31, 2024, were HKD 12.67 billion, with net assets of approximately HKD 8.08 billion[38] - The company’s debt-to-asset ratio decreased to approximately 35.2%[38] - The total debt as of December 31, 2024, was approximately HKD 2,011.5 million, an increase of about HKD 180.8 million from the previous year[55] Operational Highlights - The group operates in four segments: aluminum, coal, commodities trading, and crude oil, with significant revenue contributions from each[16] - The average selling price of crude oil decreased slightly year-on-year, while the average selling price of coal saw a significant decline[6] - The company recorded a profit increase of approximately HKD 114.4 million due to the transfer of its stake in Alumina Limited for Alcoa Corporation equity[6] - Oil and gas business achieved an operating output of approximately 17.65 million barrels, a year-on-year increase of about 3.2%[40] - Non-oil business revenue was approximately HKD 2.15 billion, a year-on-year decrease of about 8.5%[45] - The Portland aluminum plant's production capacity recovery in 2024 showed significant results, with equity aluminum sales of approximately 63,000 tons, a year-on-year decrease of about 6.0%[47] - The average selling price for aluminum in 2024 was approximately $2,763.5 per ton, reflecting a year-on-year increase of about 17.1%[47] - In the coal business, the average selling price for coal was approximately $168.6 per ton, a year-on-year decrease of about 22.1%[48] - Coal sales volume for the year was 599,000 tons, a year-on-year decrease of about 8.8%, resulting in a net profit attributable to shareholders of approximately HKD 30 million, down about 88.6%[48] Cash Flow and Investments - Cash and cash equivalents amounted to HKD 942.8 million, up from HKD 759.2 million in 2023[35] - Capital expenditures for the year totaled HKD 378,446,000, including HKD 336,787,000 for property, plant, and equipment[17] - The company achieved a capital expenditure of HKD 369,772,000, which includes investments in property, plant, and equipment[18] - The company’s investment in joint ventures and associates amounted to HKD 2,690,406,000[17] Dividends and Shareholder Returns - Proposed final dividend per share is HKD 0.026, an increase from HKD 0.025 in 2023, totaling HKD 204.3 million for 2024[32] - The group plans to distribute a final dividend of HKD 0.026 per ordinary share for the year ending December 31, 2024, pending shareholder approval[67] Risk Management and Future Outlook - The company plans to focus on structural adjustments and transformation in 2025, emphasizing the "investment + trade" dual-drive strategy[52] - The company aims to enhance production and sales volume while introducing new technologies and processes to drive growth[52] - The group has implemented internal policies to manage various financial risks, including market, credit, and liquidity risks[64] - There have been no significant events or transactions affecting the group that require disclosure to shareholders from January 1, 2025, to the date of this announcement[77]

CMD中信资源控股有限公司 CITIC Resources Holdings Limited (incorporated in Bermuda with limited liability) ( 於 百 惡 達 註 冊 成 立 之 有 限 公 司 ) Stock Code 股份代號 : 1205 COAL COMMODITIES IMPORT FITD STATE OF � Interim Report 中期報告 2024 COAL ALUMINIUM Investor Relations Contact Suites 6701-02 & 08B 67/F, International Commerce Centre 1 Austin Road West, Kowloon, Hong Kong Attention : Investor Relations Department Telephone : (852) 2899 8200 Facsimile : (852) 2815 9723 E-mail : ir@citicresources.com 投資者關係聯絡 香港九龍柯士甸道西1號 環球貿易廣場67樓 6 ...

Financial Performance - The company reported a revenue of HKD 3,944.6 million for the six months ended June 30, 2024, representing a 93.1% increase compared to HKD 2,043.2 million in the same period last year[2]. - The adjusted EBITDA for the period was HKD 1,096.6 million, down 3.8% from HKD 1,140.2 million in 2023[2]. - The profit attributable to ordinary shareholders was HKD 353.1 million, a decrease of 7.9% from HKD 383.2 million in the previous year[3]. - The average selling price of coal and aluminum was lower compared to the same period last year, contributing to the decline in profit[3]. - Total revenue for the first half of 2024 reached HKD 3,990,316, a decrease from HKD 2,083,828 in the same period of 2023[13]. - The adjusted profit before tax for the first half of 2024 was HKD 457,206, compared to HKD 474,059 in the first half of 2023, reflecting a decline of approximately 3.5%[13]. - The aluminum segment generated revenue of HKD 601,642 in 2024, down from HKD 770,240 in 2023, indicating a decrease of about 22%[13]. - Coal segment revenue decreased to HKD 405,245 in 2024 from HKD 539,350 in 2023, representing a decline of approximately 25%[13]. - The oil segment's revenue remained stable at HKD 730,952 in 2024, slightly up from HKD 733,632 in 2023[13]. - The group’s non-oil and gas business achieved a net profit of approximately HKD 54.76 million, a year-on-year decrease of about 11.8% due to the decline in blowing coal prices[31]. Financial Position - The company maintained a strong financial position with cash and deposits of approximately HKD 1,221.4 million as of June 30, 2024[3]. - Non-current assets totaled HKD 9,262.9 million, slightly down from HKD 9,288.0 million at the end of 2023[7]. - Current assets increased significantly to HKD 3,811.8 million from HKD 2,336.4 million at the end of 2023[7]. - Total liabilities increased to HKD 2,909.5 million from HKD 1,358.2 million at the end of 2023, reflecting higher current liabilities[7]. - The company’s total equity as of June 30, 2024, was HKD 7,925.3 million, compared to HKD 7,841.4 million at the end of 2023[8]. - Total assets as of June 30, 2024, were HKD 6,903,336, an increase from HKD 5,295,046 as of December 31, 2023[14]. - Total liabilities as of June 30, 2024, were HKD 2,933,523, compared to HKD 1,352,550 as of December 31, 2023, indicating a significant increase[14]. - The total debt of the group as of June 30, 2024, was approximately HKD 1,421.0 million, a decrease of about HKD 409.7 million from December 31, 2023[33]. - The net debt to net total capital ratio was 2.5% as of June 30, 2024, down from 4.2% as of December 31, 2023[35]. Market Conditions - The average Brent oil price during the period was USD 84.0 per barrel, with expectations for a rebound in the second half of the year[3]. - The average Brent crude oil price for the first half of 2024 was USD 84.0 per barrel, reflecting a year-on-year increase of approximately 5.1%[27]. - The average LME aluminum price during the same period was USD 2,415.0 per ton, showing a year-on-year decrease of about 1.2%[27]. Strategic Initiatives - The company plans to implement the acquisition of Alumina Limited, with the transaction expected to be effective on August 1, 2024[26]. - The group plans to explore investment opportunities in the upstream aluminum industry and new energy sectors to cultivate a second growth curve[32]. - The group aims to achieve an annual trading volume of 10 million barrels in the oil and gas trading business[32]. Operational Efficiency - Financing costs for the first half of 2024 totaled HKD 52,678, down from HKD 89,951 in the same period of 2023, reflecting a reduction of approximately 41%[17]. - Other income, net of losses, for the first half of 2024 was HKD 49,295, a decrease from HKD 65,938 in the first half of 2023[15]. - The company’s interest-bearing debt ratio decreased to approximately 10.4%, with an annualized return on net assets reaching about 9.1%[29]. - The company has maintained a healthy financial condition and strong operational resilience despite challenges in the global economic environment[27]. Human Resources - The group had 195 full-time employees as of June 30, 2024, down from 202 employees a year earlier[36]. - Employee compensation for full-time staff was approximately HKD 48.9 million, a decrease from HKD 69.1 million in the previous year[37]. Corporate Governance - The board does not recommend any interim dividend for the six months ended June 30, 2023[38]. - The company has adhered to the corporate governance code principles and applicable provisions, with a noted deviation from C.2.1 regarding the roles of the chairman and CEO[39]. - The board structure includes one executive director, one non-executive director, and three independent non-executive directors, ensuring adequate checks and balances[39]. - All directors confirmed compliance with the securities trading code during the reporting period[40]. - The company or its subsidiaries did not purchase, redeem, or sell any listed securities during the reporting period[41]. - No significant matters or transactions affecting the group have been disclosed since July 1, 2024, up to the announcement date[42].

Financial Performance - The company achieved consolidated revenue of approximately HKD 3,825.6 million and a net profit attributable to shareholders of approximately HKD 551.8 million in 2023, despite significant declines in oil, aluminium, and coal prices[16]. - The group's total revenue for 2023 was HKD 3,825,577, a decrease of 34.8% compared to HKD 5,866,160 in 2022[21]. - Adjusted EBITDA for 2023 was HKD 2,056,110, down 34.2% from HKD 3,123,158 in the previous year[21]. - The net profit attributable to ordinary shareholders was HKD 551,803, reflecting a decline of 58.7% from HKD 1,335,537 in 2022[21]. - The company reported a profit attributable to ordinary shareholders of approximately HKD 551.8 million for the year ending December 31, 2023, a decrease of about 58.7% compared to HKD 1,335.5 million in 2022[23]. - The company reported a significant increase in financing costs, which rose to HKD 162,763 thousand from HKD 141,816 thousand in the previous year[134]. - The company’s total equity as of December 31, 2023, was HKD 7,841,423,000, reflecting a decrease from HKD 7,765,688,000 in the previous year[139]. - The company recorded a comprehensive loss of HKD 220,749 thousand for the year, primarily due to foreign exchange losses[138]. Dividends - The company declared a dividend of HKD 0.06 per share, marking the highest level in its history[16]. - The board of directors has proposed a final dividend of HKD 0.025 per share for the year ended December 31, 2023, down from HKD 0.060 in 2022[95]. - The company emphasizes maintaining a strong financial position and prudent cash management when determining dividend payments[88]. - The board will seek shareholder approval for the proposed dividend at the 2024 annual general meeting[95]. Operational Highlights - The company has a 14% participating interest in the Coppabella and Moorvale coal mines joint venture, which is a major producer of low volatile pulverized coal injection coal in the international seaborne market[8]. - The company holds a 22.5% participating interest in the Portland Aluminium Smelter joint venture, one of the largest and most efficient aluminium smelting operations globally[9]. - The group maintained stable oil and gas production, with a projected annual replacement scale of 65,000 tons from the KBM oilfield[18]. - The Portland aluminum plant achieved sales of 67,000 tons of electrolytic aluminum in 2023, while CMJV sold 659,000 tons of coal[18]. Debt and Liquidity - The company has reduced its debt ratio and improved liquidity, achieving its best overall financial condition in recent years[16]. - The net debt to total equity ratio improved to 4.2% from 6.2% in 2022, indicating a stronger financial position[22]. - Total debt as of December 31, 2023, was approximately HKD 1,830.7 million, down from HKD 2,644.4 million in 2022, reflecting a reduction of HKD 813.7 million[47]. - The company repaid net bank borrowings of approximately HKD 801.6 million during the year, maintaining a strong financial position with cash and deposits of about HKD 1,483.8 million as of December 31, 2023[23]. Strategic Initiatives - The company is focused on enhancing its oil sales channels and actively expanding third-party oil trading, having completed the preliminary preparations for its trading platform[17]. - The company is committed to a dual-driven development model of "investment + trade" to enhance its core competitiveness in the resource energy sector[17]. - The company plans to enhance resource allocation and improve business operations to drive high-quality development in 2024[19]. - The company plans to explore business opportunities in new energy and new materials, focusing on green energy and metal mineral resources[23]. Governance and Management - The company is committed to maintaining a robust corporate governance structure and adhering to applicable statutory and regulatory requirements to safeguard shareholder interests[60]. - The board emphasizes three core business strategies: risk mitigation, quality enhancement, and management optimization, aiming for long-term sustainable development[60]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[61]. - The company has established various committees, including the remuneration committee, nomination committee, audit committee, and risk management committee, each with specific responsibilities[71]. Employee and Social Responsibility - The group has 195 full-time employees as of December 31, 2023, down from 206 in 2022[51]. - The group aims to provide competitive market compensation to attract and retain high-quality employees, with remuneration based on individual knowledge, skills, and performance[51]. - The group contributes to local social security pension plans based on a percentage of employee salary costs for its subsidiaries in China[51]. - The company has integrated environmental protection into all activities, focusing on clean production and resource utilization, such as the use of membrane technology for water treatment in oil fields[97]. Financial Services Agreements - On May 8, 2023, the company entered into international financial service agreements with CITIC Bank International and CITIC Finance International, which are indirect subsidiaries of CITIC Group[113]. - The international financial service agreement includes deposit services with interest rates to be agreed upon, ensuring they are not lower than those offered by independent third-party banks[113]. - The new financial services agreement effective from June 16, 2023, sets annual deposit service limits at HKD 2,000 million for the years ending December 31, 2023, 2024, and 2025[114]. Impairment and Valuation - The group recognized a reversal of impairment losses for property, plant, and equipment of approximately HKD 543 million and for its joint ventures of approximately HKD 266 million for the year ended December 31, 2023[127]. - The impairment assessments involved significant management judgments and assumptions, including forecasted oil and aluminum prices, forecasted costs, forecasted production, and discount rates[127]. - The group evaluated whether there were indications that previously recognized impairment losses for property, plant, and equipment no longer existed or had decreased[127]. Shareholder Relations - The company has adopted a shareholder communication policy to ensure timely access to information for shareholders[92]. - The company encourages shareholder participation in meetings and maintains open dialogue through various channels[92]. - The company has not made any changes to its organizational documents during the year[93].

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 3,825.6 million, a decrease of 34.8% compared to HKD 5,866.2 million in 2022[2] - EBITDA for the same period was HKD 1,342.9 million, down 46.4% from HKD 2,503.5 million in 2022[2] - Adjusted EBITDA decreased by 34.2% to HKD 2,056.1 million from HKD 3,123.2 million year-on-year[2] - Profit attributable to ordinary shareholders was HKD 551.8 million, representing a significant decline of 58.7% from HKD 1,335.5 million in 2022[2] - The total revenue for the year ended December 31, 2023, was HKD 3,871,093 thousand, with the oil segment contributing HKD 1,474,241 thousand, representing the largest share[18] - Adjusted profit before tax for the year was HKD 696,760 thousand, indicating a strong performance across segments[18] - Revenue from external customers in mainland China decreased to HKD 1,406,152,000 in 2023 from HKD 1,743,743,000 in 2022, representing a decline of approximately 19.4%[22] - The company's net profit attributable to ordinary shareholders for 2023 was HKD 551.8 million, a decrease of approximately 58.7% compared to HKD 1.34 billion in 2022[37] - The average selling price of crude oil sold by the company significantly dropped, leading to a revenue of approximately HKD 1.47 billion from oil and gas operations, down about 20.5% year-on-year[38] - The company recorded a net loss of approximately HKD 260 million in its non-oil business, a decline of about 137.0% year-on-year[39] Assets and Liabilities - Non-current assets totaled HKD 9,288.0 million, slightly up from HKD 9,243.1 million in 2022[9] - Current assets decreased to HKD 2,336.4 million from HKD 3,196.5 million in the previous year[9] - Total equity attributable to ordinary shareholders was HKD 7,761.8 million, compared to HKD 7,745.4 million in 2022[10] - Non-current liabilities decreased from HKD 3,470,134 thousand in 2022 to HKD 2,424,732 thousand in 2023, a reduction of approximately 30%[11] - Total assets increased from HKD 7,765,688 thousand in 2022 to HKD 7,841,423 thousand in 2023, reflecting a growth of about 1%[11] - As of December 31, 2023, the total debt of the group was approximately HKD 1,830.7 million, a decrease of about HKD 813.7 million from the previous year[47] - The net debt to net total capital ratio improved to approximately 4.2% in 2023, down from 6.2% in 2022[49] Cash Flow and Financing - The group repaid net bank borrowings of approximately HKD 801.6 million during the year, maintaining a strong financial position with cash and deposits of about HKD 1,483.8 million as of December 31, 2023[3] - The company reported cash and cash equivalents of HKD 759.2 million, a decrease from HKD 966.3 million in 2022[34] - Cash and cash equivalents as of December 31, 2023, were approximately HKD 1,483.8 million, down from HKD 2,130.2 million at the end of 2022[46] - Interest income increased to HKD 73,917,000 in 2023 from HKD 42,489,000 in 2022, marking a growth of approximately 74.0%[25] - The group’s financing costs rose to HKD 162,763,000 in 2023, compared to HKD 141,816,000 in 2022, reflecting an increase of about 14.7%[27] Capital Expenditures and Investments - Capital expenditures for the year amounted to HKD 369,772 thousand, with significant investments in property, plant, and equipment[18] - The total capital expenditure for the year was HKD 420,466,000, with significant investments in property, plant, and equipment[20] - The impairment provision in the consolidated income statement was HKD 844,724 thousand, reflecting ongoing asset management strategies[18] - The company recognized an impairment provision of approximately HKD 840 million for its investment in Alumina Limited due to a decline in stock price[41] Strategic Initiatives - The company established a trading market team focused on developing oil trade for 2024, indicating strategic market expansion efforts[16] - The company has made progress in discussions to develop new trade varieties, enhancing its product offerings[16] - The group has initiated the establishment of a new trading system, focusing on oil and gas exploration and trade, as well as aluminum product development and trade[45] - The group aims to explore new business directions in renewable energy and new materials to enhance shareholder returns[45] - The group plans to strengthen strategic research to maximize returns while expanding into oil and gas extraction and trade in 2024[45] Corporate Governance and Compliance - The company has adhered to the corporate governance code principles as per the Hong Kong Stock Exchange rules, with a noted exception regarding the roles of Chairman and CEO being held by the same individual during part of the year[54] - The audit committee, composed of three independent non-executive directors, reviewed the financial statements for the year ending December 31, 2023[57] - The company confirmed compliance with the securities trading code for all directors during the year ending December 31, 2023[55] Employment and Compensation - The group had 195 full-time employees as of December 31, 2023, down from 206 in 2022[52] - The total compensation for outsourced contractors was approximately HKD 345.2 million, an increase from HKD 325.2 million in 2022[52] Dividends - The proposed final dividend for 2023 is HKD 0.025 per share, down from HKD 0.06 per share in 2022, totaling HKD 196.4 million[32] - The proposed final dividend is HKD 0.025 per share, subject to shareholder approval at the annual general meeting[53] Market Conditions - The average selling price of crude oil sold by the group saw a substantial decline year-on-year, contributing to the profit decrease[3] - The oil and gas production volume for 2023 was approximately 17.1 million barrels, with equity production of about 9.2 million barrels, both down approximately 5.0% year-on-year[38] - In 2023, the average coal selling price for CMJV was approximately $216.3 per ton, a year-on-year decrease of about 24.5%[42] - Coal production costs for 2023 were approximately $155.9 per ton, reflecting a year-on-year increase of about 4.9%[42] - The net profit attributable to shareholders from coal operations was approximately HKD 270 million, a decrease of about 40.5% year-on-year[42]

Financial Performance - The company reported a revenue of HKD 2,043,222 thousand for the six months ended June 30, 2023, compared to HKD 3,228,390 thousand in the same period of 2022, representing a decrease of approximately 36.7%[16] - Gross profit for the same period was HKD 427,501 thousand, down from HKD 1,060,527 thousand in 2022, indicating a decline of about 59.7%[16] - The net profit for the period was HKD 409,988 thousand, a significant drop from HKD 928,472 thousand in the previous year, reflecting a decrease of approximately 55.8%[17] - Basic earnings per share decreased to HKD 4.88 from HKD 11.37, marking a decline of about 57.0%[16] - Other income, gains, and losses for the period amounted to HKD 65,938 thousand, down from HKD 102,486 thousand in 2022, a decrease of approximately 35.6%[16] - Operating cash flow for the six months ended June 30, 2023, was HKD 530,876 thousand, a decrease of 53.8% compared to HKD 1,149,572 thousand in 2022[27] - EBITDA for the same period was HKD 832.8 million, down 49.7% from HKD 1,654.5 million year-on-year[75] - The profit attributable to ordinary shareholders was HKD 383.2 million, representing a 57.1% decrease from HKD 893.3 million in the previous year[76] Revenue Breakdown - Revenue from aluminum sales was HKD 770,240, up from HKD 736,090 in 2022, representing a growth of 4.1%[39] - Coal revenue decreased to HKD 539,350 from HKD 658,647, a decline of 18.1%[39] - Oil revenue also saw a decline, falling to HKD 733,632 from HKD 955,767, a decrease of 23.3%[39] - The group's revenue for the six months ended June 30, 2023, was HKD 2,043.2 million, a decrease of 36.7% compared to HKD 3,228.4 million in the same period of 2022[75] Assets and Liabilities - Total non-current assets amounted to HKD 9,243,085 thousand, a slight decrease from HKD 9,169,695 thousand[19] - Current assets decreased from HKD 3,196,482 thousand to HKD 2,654,333 thousand, primarily due to a reduction in cash and deposits from HKD 2,130,203 thousand to HKD 1,632,467 thousand[19] - Total current liabilities increased from HKD 1,203,745 thousand to HKD 1,482,291 thousand, with trade payables rising from HKD 106,899 thousand to HKD 88,024 thousand[19] - Non-current liabilities decreased from HKD 3,470,134 thousand to HKD 2,744,593 thousand, mainly due to a reduction in bank and other borrowings from HKD 2,486,640 thousand to HKD 1,826,760 thousand[21] - Total equity decreased from HKD 7,765,688 thousand to HKD 7,597,144 thousand, reflecting a decline in reserves[21] - The company's total assets as of June 30, 2023, were HKD 4,740,693, down from HKD 5,037,515 at the end of 2022[37] - Total liabilities decreased to HKD 1,360,891 from HKD 1,448,970, indicating a reduction of 6.1%[37] Cash Flow and Financing - The company reported financing costs of HKD 89,951 thousand for the period, an increase from HKD 55,122 thousand in the previous year[16] - Cash flow from operations showed a significant decrease, impacting overall liquidity[23] - The company's cash flow from financing activities showed a net outflow of HKD 856,362 thousand, compared to a smaller outflow of HKD 373,129 thousand in the same period last year[27] - The company’s cash and bank balance decreased to HKD 517,506 thousand from HKD 1,289,585 thousand, reflecting a decline of 59.9%[27] - The group had a total of 202 full-time employees as of June 30, 2023, an increase from 199 employees a year earlier[97] Strategic Focus and Future Outlook - The company is focused on international trade through its import and export of commodities business, leveraging strong expertise and established marketing networks[8] - The company is focusing on market expansion and new product development strategies to enhance future growth prospects[23] - The group aims to explore new business directions in renewable energy and new materials to enhance shareholder returns[74] - The company has actively pursued oil sales rights from joint ventures and is exploring potential aluminum sales rights from associates[35] - The company has terminated its steel product import and distribution arrangements as of November 2022, impacting future revenue streams from this segment[35] Shareholder Information - As of June 30, 2023, Mr. Chen holds 786,558,488 shares, representing 10.01% of the company's total issued share capital[102] - CITIC Group holds 4,675,605,697 shares, accounting for 59.50% of the company's total issued share capital[106] - The total number of shares that may be granted under the share option plan is capped at 786,852,714 shares, which is 10% of the total issued shares at the time of the plan's adoption[104] - No share options have been granted under the share option plan since its adoption on June 27, 2014[104] Compliance and Governance - The audit committee reviewed the interim report along with senior management[110] - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests and short positions[103] - No changes in director information were disclosed since the date of the 2022 annual report[110] - The company has not reported any new product developments or market expansions in the latest financial report[109]

Financial Performance - The company's revenue for the six months ended June 30, 2023, was HKD 2,043.2 million, a decrease of 36.7% compared to HKD 3,228.4 million in the same period last year[2]. - EBITDA for the same period was HKD 832.8 million, down 49.7% from HKD 1,654.5 million year-on-year[2]. - Adjusted EBITDA decreased by 41.4% to HKD 1,140.2 million from HKD 1,947.3 million in the previous year[2]. - Profit attributable to equity holders of the company was HKD 383.2 million, representing a 57.1% decline from HKD 893.3 million in the prior year[2]. - Total comprehensive income for the period was HKD 302.9 million, down from HKD 784.4 million in the previous year[6]. - The adjusted profit before tax for the first half of 2023 was HKD 474,059,000, down from HKD 1,359,414,000 in the first half of 2022, indicating a decrease of about 65.1%[13]. - The net profit attributable to shareholders for the same period was approximately HKD 383.2 million, a year-on-year decline of about 57.1%[20]. Revenue Breakdown - Total revenue for the first half of 2023 reached HKD 2,083,828,000, a decrease from HKD 3,322,669,000 in the same period of 2022, representing a decline of approximately 37.4%[13]. - The aluminum segment generated revenue of HKD 770,240,000 in the first half of 2023, compared to HKD 736,090,000 in the same period of 2022, reflecting a growth of approximately 4.6%[13]. - The coal segment's revenue decreased to HKD 539,350,000 in the first half of 2023 from HKD 658,647,000 in the same period of 2022, a decline of about 18.1%[13]. - The oil segment reported revenue of HKD 733,632,000 in the first half of 2023, down from HKD 955,767,000 in the same period of 2022, representing a decrease of approximately 23.3%[13]. - The oil and gas business generated revenue of approximately HKD 730 million in the first half of 2023, a year-on-year decrease of about 23.2%[27]. Asset and Liability Management - Non-current assets totaled HKD 9,169.7 million as of June 30, 2023, slightly down from HKD 9,243.1 million at the end of 2022[7]. - Current assets decreased to HKD 2,654.3 million from HKD 3,196.5 million at the end of 2022[7]. - Total equity attributable to equity holders of the company was HKD 7,561.5 million, down from HKD 7,745.4 million at the end of 2022[8]. - The total assets as of June 30, 2023, were HKD 4,740,693,000, a decrease from HKD 5,037,515,000 as of December 31, 2022, reflecting a decline of about 5.9%[14]. - The total liabilities as of June 30, 2023, were HKD 1,360,891,000, down from HKD 1,448,970,000 as of December 31, 2022, indicating a decrease of approximately 6.1%[14]. Financial Position and Liquidity - The company repaid bank borrowings of approximately HKD 761.6 million during the period, maintaining a strong financial position with cash and deposits of about HKD 1,632.5 million as of June 30, 2023[3]. - As of June 30, 2023, the group maintained strong liquidity with unused bank credit of approximately HKD 1,716.0 million, down from HKD 1,815.1 million as of December 31, 2022[30]. - The total debt of the group as of June 30, 2023, was approximately HKD 1,878.9 million, a decrease from HKD 2,644.4 million as of December 31, 2022[31]. - The net debt to net total capital ratio improved to 3.2% as of June 30, 2023, compared to 6.2% as of December 31, 2022[33]. - The group repaid bank loans of USD 85.0 million (approximately HKD 663.0 million) in 2023, contributing to a significant reduction in borrowings[32]. Strategic Focus and Future Plans - The company is actively pursuing new trade varieties and seeking oil sales rights from joint ventures, indicating a strategic focus on market expansion and diversification[12]. - The company plans to continue applying new technologies and processes to optimize production and improve management efficiency in the second half of 2023[29]. - The company aims to explore new energy and new materials business layouts to create new development directions and enhance shareholder returns[29]. Employee and Compensation - The group had 202 full-time employees as of June 30, 2023, an increase from 199 employees as of June 30, 2022[35]. - Total compensation for full-time employees in the first half of 2023 was approximately HKD 77.0 million, down from HKD 81.7 million in the same period of 2022[35]. Dividends and Investments - The group did not declare any interim dividend for the period, consistent with the previous year[37]. - The group has not made any new investments during the reporting period[34]. Governance - The executive director of the company is Mr. Hao Weibao[40]. - The non-executive director is Mr. Chen Jian[40]. - The independent non-executive directors include Dr. Fan Renda, Mr. Gao Peiji, and Mr. Lu Dong[40].

Financial Performance - The company achieved a consolidated revenue of approximately HKD 5,866.2 million for the year 2022, representing a year-on-year increase of about 34.9%[13] - The net profit attributable to shareholders was approximately HKD 1,335.5 million, reflecting a year-on-year growth of 21.0%[13] - Total revenue for the group reached HKD 5,866.16 million in 2022, marking a 34.9% increase from HKD 4,349.41 million in 2021[20] - Adjusted EBITDA for the group was HKD 3,123.16 million, reflecting a 28.7% increase from HKD 2,426.86 million in the previous year[20] - The oil and gas segment generated annual revenue of approximately HKD 1,854.2 million, representing a year-on-year increase of about 37.5%, contributing HKD 611.8 million to net profit attributable to ordinary shareholders, up by approximately 32.0%[15] - The non-oil and gas business reported total revenue of approximately HKD 4,012.0 million, a year-on-year increase of about 33.7%, with net profit attributable to ordinary shareholders rising by approximately 12.6% to HKD 705.2 million[16] - The coal business net profit surged by approximately 361.7% to HKD 454.5 million, while the metal aluminum segment's net profit decreased by about 37.4% to HKD 164.7 million[16] - The company recorded a significant fair value gain of approximately HKD 96.1 million from Australian electricity hedging agreements in 2022, compared to HKD 6.9 million in 2021[24] - The average realized oil price increased by 30% to USD 84.9 per barrel in 2022, compared to USD 65.1 per barrel in 2021[32] - The average realized price of crude oil increased by 13% to USD 75.8 per barrel in 2022, while the sales volume rose by 14% to 6,287,000 barrels[40] Operational Efficiency and Management - The management has emphasized enhancing operational efficiency and risk management capabilities to navigate a complex and challenging business environment[13] - The company is committed to exploring new technologies and processes to optimize management operations and improve work efficiency[13] - The company focuses on the import and export of commodities, leveraging strong expertise and established marketing networks for international trade[4] - The company aims to enhance risk management, compliance, and internal control while optimizing management systems and processes to capture new development opportunities in 2023[18] - The company is committed to exploring new business opportunities in renewable energy and materials, focusing on low-carbon green development[23] - The company has undertaken cost reduction and efficiency enhancement initiatives to capitalize on high commodity prices[13] - The company aims to enhance risk management, improve efficiency, and optimize management processes to capture new development opportunities and achieve long-term sustainable growth[66] Financial Condition and Liquidity - The overall financial condition of the company is reported to be at its best level in recent years, with ample liquidity[13] - The group's cash and deposits increased by 10.6% to HKD 2,130.20 million, while total assets decreased by 2.1% to HKD 12,439.57 million[21] - Total debt decreased significantly by 29.0% to HKD 2,644.41 million, and net debt fell by 71.5% to HKD 514.21 million[21] - The current ratio improved to 2.7 times, up from 2.3 times in the previous year, indicating better liquidity[21] - The company plans to maintain cash and deposits along with undrawn bank credit of USD 232.7 million (approximately HKD 1,815.1 million) to meet future debt repayments and capital expenditures[43] Corporate Governance - The company has committed to maintaining a robust corporate governance structure and adhering to applicable statutory and regulatory requirements to protect shareholder interests[66] - The board of directors consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, ensuring a balanced skill set and diverse perspectives[67] - The company emphasizes the importance of independent opinions and data input for the board, facilitated by external legal and audit advisors[69] - The company has adopted a securities trading code for directors, ensuring compliance with established standards throughout the year[67] - The board has established various committees including the remuneration committee, nomination committee, audit committee, and risk management committee, ensuring satisfactory attendance at meetings throughout the year[80] Shareholder Information - The company proposed a final dividend of HKD 0.06 per share for the year ended December 31, 2022, an increase from HKD 0.045 per share in 2021[110] - The company's retained earnings as of December 31, 2022, were HKD 6,137,767,000, up from HKD 5,760,605,000 in 2021, indicating a growth of approximately 6.5%[113] - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, which must be held within two months of the request[102] - Shareholders with at least 5% of voting rights can submit written requests for resolutions to be included in the annual general meeting agenda[103] Risk Management - The board of directors has a responsibility to maintain adequate risk management and internal control systems, which are reviewed annually for effectiveness[96] - The company has established a risk management and internal control system covering all business units to identify, assess, and manage significant risks[96] - The Risk Management Committee held two meetings during the year to review the group's risk management policies and the nature and severity of significant risks, including environmental, social, and governance risks[88] - The company conducts regular risk assessments, including compliance assessments and self-assessments related to risk management and internal controls[96] Investments and Joint Ventures - The company holds a 14% participating interest in the Coppabella and Moorvale coal mines joint venture, which is a major producer of low volatile pulverized coal injection coal in the international seaborne market[2] - The company has a 22.5% participating interest in the Portland Aluminium Smelter joint venture, one of the largest and most efficient aluminium smelting operations globally[5] - The company maintains a 9.6117% equity interest in Alumina Limited, a leading Australian company with significant global interests in bauxite mining and alumina refining[5] - The investment in joint ventures increased to HKD 2,374,903 in 2022 from HKD 2,073,765 in 2021, representing a growth of approximately 14.5%[167] Audit and Compliance - The audit committee is responsible for reviewing the financial statements for the year ending December 31, 2022, ensuring compliance with accounting principles and regulations[84] - The auditor issued an unqualified opinion report regarding the disclosed continuing connected transactions, confirming compliance with the company's board approval[147] - The company plans to reappoint PwC as the external auditor for the fiscal year 2023, pending shareholder approval at the upcoming annual general meeting[87] Employee and Management Changes - The company employed 206 full-time employees as of December 31, 2022, an increase from 179 employees in the previous year[52] - The board has made several changes to senior management prior to the report's publication date, reflecting ongoing adjustments to leadership[86] - Mr. Hao was appointed as an executive director on April 18, 2023, following Mr. Sun's resignation[120]