Financial Performance - The company achieved a total revenue of HKD 39,166 million and a net profit of HKD 984 million for the year 2024, despite a challenging market environment[6]. - The company reported a total revenue of HKD 39,166 million for 2024, a decrease of 3.50% compared to HKD 40,587 million in 2023[27]. - The company achieved a net profit of HKD 984 million in 2024, down from HKD 2,194 million in 2023[19]. - The gross profit for 2024 was HKD 1,518 million, a decrease of 58.16% from HKD 3,628 million in 2023, primarily due to a decline in market prices and increased competition in the coking coal sector[41][47]. - The company generated sales revenue of HKD 8,131 million from overseas markets, accounting for 20.76% of total revenue, reflecting significant efforts in global market expansion[30]. Coal Trading and Procurement - The company sold approximately 22.74 million tons of coal in 2024, representing a year-on-year increase of about 20.01%[8]. - The import volume of coking coal reached a historical high of 122.25 million tons, a year-on-year increase of 19.26%[8]. - The company’s coal imports reached a historical high of 122.25 million tons in 2024, with Mongolian coal accounting for 46.46% of the total[33]. - The procurement of coal amounted to 20,565 thousand tons in 2024, with a procurement value of HKD 29,127 million, compared to 19,273 thousand tons and HKD 29,412 million in 2023[38]. - Total procurement amounted to HKD 30,467 million, with the top five suppliers representing 28.77% of total procurement, and the largest supplier accounting for 9.57%[177]. Dividends and Shareholder Returns - The total dividend for the year 2024 amounted to HKD 230 million, with a dividend yield of approximately 8.69%[6]. - The company declared a final cash dividend of HKD 0.013 per share for the year ended December 31, 2024, totaling approximately HKD 35 million, subject to shareholder approval[172]. - The company has no reserves available for distribution to shareholders as of December 31, 2024, consistent with the previous year[169]. - The company’s ability to declare dividends is contingent upon the distributable profits of its subsidiaries, which are determined according to Chinese accounting standards[169]. Market Strategy and Operations - The company implemented a "volume compensates for price" strategy in the second half of 2024 to maintain market share amid declining prices[8]. - The company plans to expand its market presence and enhance its supply chain services, focusing on integrated commodity supply chain coverage[34][36]. - The company is committed to providing clean and green service solutions in response to national strategies for carbon neutrality[10]. - The company aims to respond to national strategies for carbon neutrality by providing clean and green service solutions, including smart port displays and new energy models[36]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by the end of 2025[102]. Financial Position and Assets - Total assets increased to HKD 17,435 million in 2024, compared to HKD 17,814 million in 2023[24]. - Cash balance rose to HKD 2,955 million in 2024, up from HKD 2,271 million in 2023[25]. - The group’s debt-to-asset ratio at the end of 2024 was 47.80%, a decrease from 50.51% at the end of 2023[51]. - As of the end of 2024, the total bank loans owed by the group amounted to HKD 2,292 million, with interest rates ranging from 0.72% to 6.56%[51]. Employee and Training Initiatives - As of December 31, 2024, the group employed 2,290 full-time employees, a 15% increase from 1,991 in 2023, with frontline production and support roles increasing from 55 to 921, representing 40% of total employees[72]. - The group conducted 998 hours of training in 2024, with over 12,790 participants, significantly up from 353 hours and 6,575 participants in 2023[75]. - The group has established a performance-based compensation system, balancing internal and external market competitiveness for various positions[72]. Corporate Governance - The board of directors includes experienced professionals with extensive backgrounds in finance and international business, enhancing corporate governance[102]. - The board consists of three female directors and five male directors, reflecting the company's commitment to maintaining a balanced and diverse board composition[162]. - The company has adopted corporate governance practices in line with the listing rules, with a commitment to high standards of corporate governance to enhance investor confidence[112]. - The company ensures compliance with corporate governance codes and maintains appropriate internal control systems[151]. Environmental, Social, and Governance (ESG) Initiatives - The group is actively involved in ESG initiatives, with third-party consultations planned for the 2024 ESG report[81]. - The company has implemented anti-fraud, anti-money laundering, and anti-bribery policies to comply with applicable laws and regulations[152]. - The company has adopted a diversity policy for board members, with 16.24% of employees being female and 52.94% of senior management positions held by women as of December 31, 2024[162]. Strategic Acquisitions and Agreements - The company completed the acquisition of TTJV Co. LLC in August 2024, enhancing its upstream mining services and supply chain capabilities[10]. - The company has entered into a share transfer agreement with Xiamen Xiangyu, involving a total cash consideration of RMB 460,791,100 for the transfer of equity interests in target subsidiaries[192]. - The company has signed a property purchase agreement for a target property located in Zhuhai, with a total consideration of RMB 141.58 million (approximately HKD 153.31 million)[197]. - A mutual supply framework agreement has been established with Xiamen Xiangyu, effective from January 1, 2025, to December 31, 2027, for the supply of products and services between the two parties[199].

那么今天我们特别邀请到了公司的管理层针对这份业绩报告为各位进行解读那我们相信通过他们的分享各位能够更加清晰地了解到公司所处的行业的一个情况还有过去一年经营和财务的状况以及未来的发展战略那么今天的业绩发布会会同时在智通、格隆汇、富途等平台统布的进行直播或者转播 那么各位可以通过这些平台留言提问我们也会汇总一些被频繁问及到的问题邀请我们的管理层为大家进行答疑解惑那么现在让我们正式开始今天的业绩发布会首先请允许我介绍今天在线的管理层他们是一大宗控股有限公司董事会主席执行董事及行政总裁曹芯怡女士 首席财务官任海燕女士现在我们先有请董事会主席曹总给大家简要的做一个2024年全年的市场回顾曹总有请好 谢谢首先我代表管理层向大家回报一大宗2024年全年的一个基本的业务情况2024年全年我是完成了煤炭贸易量2274万吨 同比增长18%这个数据还不包括我司通过向辉实现的某煤销售1165万吨即实际完成超过3300万吨的煤炭贸易我们的供应链服务板块也通过中蒙四大口岸圆区完成入库量1652万吨实现同比增长11%完成跨境运输790万吨境内运输1303万吨 铁路站台作业量1067万吨全年席选加工量848万吨综上我们通过供应链贸易和供应链 ...

Financial Performance - For the year ended December 31, 2024, the revenue was HKD 39,166 million, a decrease of approximately 3.5% from HKD 40,587 million in 2023[5] - The gross profit for the year was HKD 1,518 million, down from HKD 3,628 million in the previous year, representing a decline of about 58%[5] - The net profit for the year was HKD 984 million, compared to HKD 2,194 million in 2023, indicating a decrease of approximately 55%[5] - The earnings per share (basic and diluted) for the year were HKD 0.346, down from HKD 0.793 in the previous year, reflecting a decline of about 56%[5] - The total revenue for 2024 was reported at 39,166 million HKD, showing a slight decrease from 40,587 million HKD in 2023[83] - The net profit for 2024 was reported at 1,705 million HKD, compared to 2,194 million HKD in 2023[86] - The company’s profit attributable to equity shareholders was HKD 922 million in 2024, a decrease of 56.57% from HKD 2,123 million in 2023, with basic and diluted earnings per share at HKD 0.346 compared to HKD 0.793 in 2023[112] Revenue Breakdown - Coal revenue increased to HKD 33,848,161,000 in 2024 from HKD 31,805,175,000 in 2023, marking an increase of about 6.4%[23] - Supply chain integrated services revenue decreased significantly to HKD 3,951,002,000 in 2024 from HKD 6,326,916,000 in 2023, a decline of approximately 37.5%[23] - The total revenue from the coal segment was HKD 33,848,161,000, while the supply chain services segment generated HKD 3,951,002,000 in 2024[23] - The company generated HKD 8,131 million in sales revenue from overseas markets, accounting for 20.76% of total revenue[96] - The company achieved a record coal import volume of 122.25 million tons in 2024, a year-on-year increase of 19.26%[98] - The procurement volume for 2024 was approximately 20.89 million tons, an increase of 5.08% from 19.88 million tons in 2023[102] Assets and Liabilities - The total equity attributable to shareholders was HKD 9,101 million, an increase from HKD 8,816 million in 2023[5] - The total non-current assets increased to HKD 7,038 million from HKD 5,669 million in the previous year, marking an increase of approximately 24%[10] - Current assets decreased to HKD 10,396 million from HKD 12,146 million, a decline of about 14%[10] - The total liabilities decreased to HKD 7,728 million from HKD 8,358 million, a reduction of approximately 7.5%[12] - Total assets for the reported segments decreased to HKD 18,630,407 in 2024 from HKD 19,179,968 in 2023, a decline of 2.9%[34] - Total liabilities for the reported segments decreased to HKD 9,443,354 in 2024 from HKD 10,027,753 in 2023, a decline of 5.8%[34] Cash Flow and Financing - The company reported a net financing cost of HKD 104,045 in 2024, an increase of 66.7% from HKD 62,398 in 2023[39] - The net cash inflow from operating activities was HKD 640 million, a decrease from HKD 2,025 million in 2023, primarily due to operating cash profits[122] - The net cash outflow from investment activities in 2024 was HKD 910 million, down from HKD 1,834 million in 2023, with major expenditures including HKD 948 million for logistics facilities and equipment, and HKD 788 million for company acquisitions[122] - The net cash inflow from financing activities in 2024 was HKD 652 million, compared to a cash outflow of HKD 533 million in 2023, mainly due to dividend payments of approximately HKD 525 million and lease repayments of about HKD 314 million[123] Dividend and Shareholder Information - The company declared a cash dividend of HKD 0.013 per share, totaling approximately HKD 35 million[5] - The company plans to distribute a final dividend of HKD 0.013 per share, totaling approximately HKD 35 million, contributing to an annual total dividend of HKD 230 million with a dividend yield of about 8.69%[73] - As of December 31, 2024, the company had 2,696,546,962 shares issued and repurchased a total of 4,936,000 shares during the year, with 1,630,000 shares canceled and 3,306,000 shares held as treasury stock[147] Operational Highlights - In 2024, the company's coal sales volume reached approximately 22.74 million tons, an increase of about 20.01% year-on-year[75] - The company completed the acquisition of TTJV Co. LLC in August 2024, marking a significant step in expanding its upstream mining services[77] - The company aims to provide comprehensive supply chain services, focusing on coal mining, washing, and logistics to enhance its core competitiveness[77] - The company emphasizes its commitment to carbon neutrality and green service solutions, aligning with national strategies[77] Taxation and Compliance - The actual tax expense for 2024 was HKD 97,239,000, significantly lower than HKD 468,157,000 in 2023, reflecting a decrease in pre-tax profit[47] - The nominal tax expense calculated based on applicable tax rates for 2024 was HKD 113,216,000, compared to HKD 501,758,000 in 2023[47] - The company has subsidiaries eligible for a preferential tax rate of 15% under various tax incentive policies, applicable until December 31, 2030, for certain operations in western regions of China[46] Employee and Training - As of December 31, 2024, the group employed 2,290 full-time employees, an increase from 1,991 in 2023, with frontline production and support staff rising to 921, accounting for 40% of total employees[135] - The group conducted a total of 998 hours of training in 2024, with over 12,790 participants, highlighting a commitment to employee development[138] Governance and ESG - The company has complied with the Corporate Governance Code, with the exception of a deviation regarding the separation of the roles of Chairman and CEO, which is deemed appropriate under current circumstances[145] - The company has engaged a third-party consultant for its 2024 ESG report, focusing on environmental, social, and governance matters, with detailed disclosures expected in the report[141] - The company has maintained a focus on employee health and safety, reporting no major incidents or accidents in 2024[141]

Revenue and Profitability - In the first half of 2024, the company recorded a total revenue of approximately HKD 19,854 million, an increase of about 7.25% compared to HKD 18,512 million in the same period of 2023, primarily driven by a 26.73% increase in coal trading volume[11]. - Revenue from coal trading reached approximately HKD 16,858 million, up 19.89% from HKD 14,061 million in the first half of 2023[12]. - The company's supply chain trading segment generated revenue of approximately HKD 17,718 million, accounting for 89.24% of total revenue[14]. - The profit attributable to equity shareholders for the first half of 2024 was approximately HKD 783 million, a decrease of about 7.34% from HKD 845 million in the first half of 2023, with basic and diluted earnings per share both at HKD 0.294[24]. - The company's operating profit for the same period was HKD 900 million, down from HKD 1,060 million year-on-year, reflecting a decrease of 15.1%[71]. - The total comprehensive income for the period was HKD 776.6 million, compared to HKD 704.7 million in the previous year, indicating an increase of 10.2%[72]. Expenses and Costs - Administrative expenses increased by approximately 9.38% to about HKD 420 million in the first half of 2024, compared to HKD 384 million in the same period of 2023[19]. - Employee costs rose to approximately HKD 435.7 million in the first half of 2024, up from HKD 390.1 million in the same period of 2023[20]. - The total financing costs for the first half of 2024 were approximately HKD 84.6 million, compared to HKD 54.2 million in the same period of 2023[23]. - Interest expenses for the first half of 2024 totaled HKD 63.3 million, up from HKD 38.6 million in the first half of 2023[23]. Cash Flow and Investments - In the first half of 2024, the net cash inflow from operating activities was approximately HKD 379 million, a significant decrease from HKD 1,716 million in the same period of 2023[33]. - The net cash outflow from investment activities was approximately HKD 748 million, compared to HKD 586 million in the same period of 2023, primarily due to investments in logistics assets and coal washing plant construction[33]. - The net cash outflow from financing activities was approximately HKD 379 million, slightly up from HKD 353 million in the same period of 2023, mainly due to dividend distribution of HKD 210 million[33]. Assets and Liabilities - As of June 30, 2024, total inventory amounted to approximately HKD 2,650 million, a decrease of about 22.63% from HKD 3,425 million as of December 31, 2023, with an inventory impairment provision of approximately HKD 145 million[26]. - As of June 30, 2024, the total bank loans amounted to approximately HKD 1,995 million, with an asset-to-liability ratio of 48.16%, down from approximately 50.51% as of December 31, 2023[27]. - The total liabilities decreased from HKD 8,358,463 to HKD 8,260,473, a reduction of 1.17%[74]. - The net asset value increased to HKD 9,349,821 from HKD 8,815,958, marking a rise of 6.05%[74]. Shareholder Information - The total number of shares issued by the company as of June 30, 2024, is 2,698,176,962 shares[49]. - Major shareholder Wang Yihan controls 1,500,080,608 shares, representing approximately 55.60% of the company[54]. - The company repurchased a total of 1,630,000 shares in June 2024, which were subsequently canceled in July 2024[49]. Corporate Governance and Management - The company has complied with all corporate governance code provisions except for the separation of the roles of Chairman and CEO, which are held by the same individual[63]. - The Audit Committee held one meeting during the six months ending June 30, 2024, with all three members in attendance[61]. - The Remuneration Committee also held one meeting during the same period, reviewing the remuneration policies for directors and senior management[62]. Strategic Initiatives - The company plans to invest in "smart mining" and "smart transportation" to enhance its sustainable development strategy[14]. - The company aims to strengthen the energy corridor construction between China and Mongolia to support national strategic expansion[14]. - The company is committed to supporting the steel industry's transition to low-carbon operations, which may significantly impact its supply chain services[39]. Risk Management - Over 56.31% of the company's revenue was denominated in RMB, while over 81.70% of procurement costs were in USD, exposing the company to currency risk[41]. - The group is assessing risks related to the implementation of the OECD's Pillar Two rules, which may affect its tax obligations in various jurisdictions[7]. Employee Engagement and Training - The company employed 1,759 full-time employees, with 57% in freight driving roles in Mongolia[44]. - The company conducted a total of 519 hours of training, with 4,830 participants, emphasizing the importance of training for employee skill enhancement[46].

Financial Performance - The revenue for the six months ended June 30, 2024, was HKD 19,854 million, an increase from HKD 18,512 million in the same period last year, representing a growth of 7.2%[2] - The gross profit for the same period was HKD 1,232 million, compared to HKD 1,269 million in the previous year, indicating a decrease of 2.9%[2] - The profit attributable to equity shareholders for the six months was HKD 783 million, down from HKD 844 million year-on-year, reflecting a decline of 7.2%[2] - The basic and diluted earnings per share for the period were HKD 0.294, compared to HKD 0.314 in the previous year, a decrease of 6.4%[3] - The total comprehensive income for the period was HKD 776 million, an increase from HKD 704 million in the same period last year, representing a growth of 10.2%[4] - Adjusted EBITDA for the reporting segments was HKD 1,188,651 thousand, compared to HKD 1,292,278 thousand in the previous year, indicating a decrease of 8.0%[16] - The reported segment profit before tax was HKD 939,260 thousand for 2024, down from HKD 1,073,030 thousand in 2023, indicating a decrease of 12.5%[16] - Profit attributable to equity shareholders for the first half of 2024 was approximately HKD 783 million, a decrease of about 7.34% from HKD 845 million in the same period of 2023[58] Revenue Breakdown - Coal sales generated HKD 16,858,477 thousand, up 19.9% from HKD 14,061,455 thousand year-on-year[12] - Supply chain integrated services revenue decreased to HKD 2,100,552 thousand, down 31.7% from HKD 3,072,510 thousand in the previous year[12] - Revenue from oil and petrochemical products was HKD 746,656 thousand, a decline of 32.5% compared to HKD 1,106,862 thousand in the prior year[12] - Revenue from iron ore was HKD 112,917 thousand, down 41.6% from HKD 194,140 thousand year-on-year[12] - The geographical revenue breakdown shows that revenue from China (including Hong Kong, Macau, and Taiwan) was HKD 14,942,943 thousand, an increase of 3.5% from HKD 14,430,553 thousand in 2023[12] - Revenue from Indonesia surged to HKD 1,835,536 thousand, up 83.7% from HKD 998,118 thousand in the previous year[12] - The supply chain trade segment generated revenue of approximately HKD 17,718 million, accounting for 89.24% of total revenue in the first half of 2024[47] - The revenue from the supply chain integrated services segment decreased by approximately 31.63% to HKD 2,101 million in the first half of 2024, down from HKD 3,073 million in the same period of 2023[48] Assets and Liabilities - The total assets less current liabilities amounted to HKD 9,775 million, up from HKD 9,456 million at the end of the previous year, indicating an increase of 3.4%[5] - The cash and cash equivalents as of June 30, 2024, were HKD 2,192 million, down from HKD 2,955 million at the end of 2023, a decrease of 25.9%[5] - Non-current assets totaled HKD 5,689 million, slightly up from HKD 5,668 million at the end of the previous year, reflecting a marginal increase of 0.4%[6] - The net current assets were HKD 4,086 million, an increase from HKD 3,787 million at the end of the previous year, indicating a growth of 7.9%[6] - Total bank loans as of June 30, 2024, amounted to approximately HKD 1,995 million, with a debt-to-asset ratio of 48.16%, down from 50.51% as of December 31, 2023[60] Cash Flow - In the first half of 2024, the net cash inflow from operating activities was approximately HKD 379 million, a significant decrease from HKD 1,716 million in the same period of 2023[67] - The net cash outflow from investing activities in the first half of 2024 was approximately HKD 748 million, compared to HKD 586 million in the same period of 2023[67] - The cash outflow from financing activities in the first half of 2024 was approximately HKD 379 million, slightly up from HKD 353 million in the same period of 2023[67] Dividends - The company declared an interim dividend of HKD 0.073 per share, totaling approximately HKD 196 million[2] - The company declared an interim dividend of HKD 0.073 per share for the first half of 2024, compared to HKD 0.078 per share for the same period in 2023, resulting in a total dividend payout of HKD 195,715 thousand[37] - The board has approved an interim cash dividend of HKD 0.073 per share, amounting to approximately HKD 196 million, expected to be distributed around January 16, 2025[82] Investments and Acquisitions - The group acquired properties, plants, and equipment amounting to HKD 121,136,000 for the six months ended June 30, 2024, compared to HKD 65,520,000 for the same period in 2023[26] - The company has entered into an agreement to acquire 70% of the issued share capital of Five Hills Investment Limited for a cash consideration of USD 77.9 million, which will make it a wholly-owned subsidiary[83] Employee and Training - As of June 30, 2024, the company employed 1,759 full-time employees, with 57% in freight driving roles in Mongolia[76] - The company conducted a total of 519 hours of training, with 4,830 participants across various training programs in the first half of 2024[78] Governance and Compliance - The company has complied with the corporate governance code, with the exception of a deviation regarding the separation of the roles of Chairman and CEO, which is justified by the board[84] - The audit committee has reviewed the interim results for the six months ending June 30, 2024, which were not audited but reviewed by KPMG[86] - The company has confirmed that all directors have adhered to the standards of the securities trading code during the six months ending June 30, 2024[85] Environmental, Social, and Governance (ESG) - The company emphasizes its focus on environmental, social, and governance (ESG) issues as part of its operational strategy[80] - The company has engaged an independent third party to consult on ESG matters and has published its 2023 ESG report[80]

Financial Performance - In 2023, WINSWAY recorded a revenue of HKD 40,587 million and a net profit of HKD 2,194 million, representing a year-on-year increase of 17.94% and 28.68% respectively[7]. - The company recorded a total revenue of HKD 40,587 million in 2023, an increase of 17.94% compared to HKD 34,414 million in 2022[19]. - Operating profit for the company was HKD 3,628 million in 2023, reflecting a 17.41% increase from HKD 3,090 million in 2022[26]. - The profit attributable to equity shareholders increased by 27.43% to HKD 2,123 million in 2023 from HKD 1,666 million in 2022, indicating strong financial performance[33]. - Coal trading revenue increased by approximately 18.12% year-on-year, driven by a 66.96% increase in coal trading volume[19]. - The group reported revenue from coal trading of approximately HKD 27,491,964,000 for the year ended December 31, 2023, accounting for about 68% of total revenue[196]. Market and Sales Performance - The company sold 18.95 million tons of coal in 2023, up 66.96% from 11.35 million tons in 2022, maintaining nearly 30% market share[7]. - China's imported coking coal reached a historical high of 102.51 million tons in 2023, a significant increase of 60.58% compared to 63.84 million tons in 2022[7]. - The company’s sales from external customers in 2023 amounted to HKD 40,586 million, with overseas sales contributing HKD 8,679 million, representing 21.38% of total revenue[20]. - The company’s five largest customers accounted for 44.82% of total sales in 2023, up from 38.72% in 2022[21]. - Sales to the top five customers accounted for 44.82% of the total revenue, with the largest customer contributing 17.82%[130]. Supply Chain and Logistics - The supply chain service segment generated revenue of HKD 6,327 million, an increase of 68.41% from HKD 3,757 million in 2022[7]. - The logistics segment achieved a cross-border transportation volume of 11.06 million tons, a growth of 96.80% year-on-year[9]. - The coal washing and processing segment processed 9.47 million tons, reflecting a year-on-year increase of 20.48%[9]. - The company expanded its washing capacity from 26 million tons to 28 million tons by the end of 2023, enhancing its service capabilities[9]. - The company is committed to building a smart supply chain network to improve efficiency and customer service[9]. Dividends and Shareholder Returns - The company declared a total dividend of HKD 531 million for 2023, with a final dividend of approximately HKD 320 million[9]. - The board of directors highlighted the importance of maintaining shareholder value, with plans to increase dividends by 10% in the upcoming fiscal year[76]. - The company emphasizes maintaining sufficient cash reserves for future growth and shareholder value when declaring dividends[122]. Employee and Workforce Management - The group employs 1,991 full-time employees as of December 31, 2023, excluding 902 expatriates from domestic subsidiaries, indicating a stable workforce[53]. - The total number of employees increased from 1,844 in 2022 to 1,991 in 2023, representing an 8% growth[54]. - The percentage of employees with a master's degree or above rose from 3% in 2022 to 5% in 2023, indicating a focus on higher education[55]. - The company conducted a total of 353 hours of training in 2023, with over 6,575 participants, compared to 271 hours and 3,513 participants in 2022[57]. - The company has implemented a comprehensive career development system to attract, motivate, and retain talent across all levels[82]. Financial Management and Capital Structure - The total procurement amount in 2023 was HKD 31,841 million, with the top five suppliers accounting for 29.70% of this total[25]. - The company's asset-liability ratio increased to 50.51% at the end of 2023 from 45.85% at the end of 2022, reflecting a higher level of debt relative to assets[35]. - The total bank loans held by the group amounted to HKD 2,047 million at the end of 2023, with interest rates ranging from 1.65% to 8.90%[35]. - The group reported a net loss from the sale of properties, plants, and equipment of HKD 17,737 thousand in 2023, compared to a gain of HKD 2,038 thousand in 2022[29]. - The net financing costs decreased by 71.43% to HKD 62 million in 2023 from HKD 217 million in 2022, attributed to reduced financing costs and improved currency management strategies[30]. Risk Management and Compliance - The group faces risks related to commodity price fluctuations, reliance on the steel industry, and liquidity management, which could significantly impact financial performance[46][49][50]. - The company is committed to ESG compliance and has engaged a third-party consultant for its ESG report[60]. - The company has established mechanisms to ensure the independence of non-executive directors and compliance with relevant regulations[91]. - The audit committee is responsible for providing independent opinions on the effectiveness of the company's financial reporting processes and risk management systems[95]. - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance for the year ending December 31, 2023[168]. Strategic Initiatives and Future Outlook - In 2024, the company anticipates a stable steel industry and expects domestic coal production to decrease, increasing the demand for imported coal[12]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% and aiming to reach $1.44 billion[76]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $300 million earmarked for potential mergers and acquisitions[76]. - The company is focused on digital construction and internet application innovation, led by the newly appointed Vice President[71]. - The company is actively involved in the coal business, with a focus on domestic trade and processing operations[69]. Corporate Governance - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition[85]. - The company has adopted a corporate governance code and believes it has complied with all provisions, except for a deviation regarding the separation of the roles of chairman and CEO[84]. - The company has established a whistleblowing policy for employees and related parties to report any actual or suspected misconduct confidentially[115]. - The board believes that the internal control system is appropriate and effective as of December 31, 2023[115]. - The audit committee's responsibilities include overseeing the relationship with external auditors and ensuring compliance with applicable accounting standards and regulations[104].

Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 40,587 million, representing a year-on-year increase of 17.94% compared to HKD 34,414 million in 2022[2] - Gross profit for the same period was HKD 3,700 million, up 15.70% from HKD 3,198 million in the previous year[2] - The profit attributable to equity shareholders for the year was HKD 2,123 million, reflecting a 27.43% increase from HKD 1,666 million in 2022[4] - Basic and diluted earnings per share increased to HKD 0.793, a rise of 33.50% from HKD 0.594 in the prior year[4] - The total comprehensive income for the year was HKD 2,151 million, compared to HKD 984 million in 2022, indicating significant growth[5] - The adjusted EBITDA for 2023 was HKD 3,159,104 thousand, up 23.3% from HKD 2,563,833 thousand in 2022[19] - The company recorded a comprehensive profit before tax of HKD 2,662,513 thousand for 2023, compared to HKD 2,038,844 thousand in 2022[19] - The operating profit for 2023 was HKD 3,628 million, a 17.41% increase from HKD 3,090 million in 2022, with supply chain trade contributing 58.02% to the gross profit[74] Revenue Breakdown - Revenue from coal sales reached HKD 31,805,175,000, up from HKD 26,927,042,000 in the previous year, indicating a growth of about 18.5%[13] - The supply chain integrated services segment generated revenue of HKD 6,326,916,000, a significant increase of 68.3% compared to HKD 3,756,526,000 in 2022[13] - The company reported a total revenue of HKD 40,587 million and a net profit of HKD 2,194 million for the year, representing year-on-year growth of 17.94% and 28.68% respectively[58] - Revenue from coal trading increased by approximately 18.12% to HKD 31,805 million, driven by a 66.96% increase in trading volume[67] - The supply chain integrated services revenue surged by 68.41% to HKD 6,326 million, supported by record coal imports at the China-Mongolia land port[67] Assets and Liabilities - Non-current assets increased to HKD 5,668 million from HKD 4,370 million, marking a growth of 29.54%[6] - Current assets rose to HKD 12,146 million, up from HKD 8,923 million, representing a 36.56% increase[6] - The total liabilities increased to HKD 8,358 million from HKD 5,670 million, reflecting a 47.43% rise[7] - The total assets reported for 2023 were HKD 19,179,968 thousand, compared to HKD 14,375,502 thousand in 2022, reflecting a growth of 33.3%[19] - The total liabilities for 2023 were HKD 10,027,753 thousand, an increase of 42.5% from HKD 7,048,844 thousand in 2022[19] Cash Flow and Financing - The net cash inflow from operating activities in 2023 was HKD 2,025 million, a decrease from HKD 2,172 million in 2022, primarily due to cash profits[89] - The net cash outflow from investing activities in 2023 was HKD 1,834 million, significantly higher than HKD 752 million in 2022, mainly due to investments in logistics facilities and coal washing plants[89] - The net cash inflow from financing activities in 2023 was HKD 533 million, a turnaround from a net cash outflow of HKD 2,112 million in 2022, largely due to bank loan inflows of approximately HKD 1,198 million[89] - As of December 31, 2023, the company had bank loans secured by various assets, including restricted bank deposits and property, totaling HKD 1,239 million in notes payable[88] - The net financing costs for 2023 were HKD 62,398 thousand, significantly reduced from HKD 217,033 thousand in 2022[23] Dividends and Shareholder Information - The company declared a final cash dividend of HKD 0.118 per share, totaling approximately HKD 320 million[2] - The company proposed a final dividend of HKD 0.118 per share, compared to HKD 0.084 per share in 2022[56] - As of December 31, 2023, the company had a total of 2,705,996,962 issued shares, with 44,098,000 shares repurchased during the year, of which 36,278,000 shares were cancelled and 7,820,000 shares will be cancelled in 2024[109] Market and Operational Insights - The company maintained nearly 30% market share in the coking coal market despite fluctuations in demand[58] - The logistics segment achieved a cross-border transportation volume of 11.06 million tons, a year-on-year increase of 96.80%[59] - The coal washing and processing segment completed a processing volume of 9.47 million tons, up 20.48% from the same period in 2022[59] - The company aims to enhance its competitive advantage in the evolving market landscape by balancing resource supply channels between the East and West[60] - The company expects a stable development in the steel industry for 2024, with an increase in the space for imported coal supply due to stricter domestic mining regulations[71] Employee and Training Initiatives - As of December 31, 2023, the company had 1,991 full-time employees, an increase from 1,844 in 2022, with a notable rise in employees with master's degrees or above from 3% to 5%[99][101] - The company conducted 353 hours of training in 2023, with over 6,575 participants, indicating a strong commitment to employee development[102] - The company has adopted a performance-based compensation system while ensuring compliance with local laws and regulations regarding employee contracts and social insurance[99] Environmental, Social, and Governance (ESG) Commitments - The company has engaged a third-party consultant for its ESG report, reflecting its commitment to environmental, social, and governance issues[104] - The company has maintained a focus on health and safety, reporting no major accidents or environmental incidents in 2023[104] Corporate Governance - The board of directors believes that the dual role of the chairperson and CEO, held by the same individual, provides consistent leadership and operational efficiency[107] - The audit committee has reviewed the company's full-year performance for the year ending December 31, 2023[114] - The annual performance announcement will be published on the company's website and the Hong Kong Stock Exchange website[115]

Revenue and Profitability - For the first half of 2023, the company recorded a total revenue of approximately HKD 18,512 million, representing an increase of about 10.31% compared to HKD 16,782 million in the same period of 2022[13]. - The coal trading revenue increased by approximately 7.61% to HKD 14,061 million, driven by an increase in coal trading volume[17]. - The supply chain comprehensive services segment generated revenue of approximately HKD 3,073 million, a significant increase of about 134.58% compared to HKD 1,310 million in the first half of 2022[18]. - The company’s supply chain trade business recorded revenue of approximately HKD 15,389 million, accounting for about 83.13% of total revenue[17]. - The revenue from the overseas market (including Hong Kong, Macau, and Taiwan) was approximately HKD 4,081 million, accounting for 22.05% of total revenue[15]. - Profit attributable to equity shareholders was approximately HKD 845 million in the first half of 2023, an increase of about 20.20% from HKD 703 million in the same period of 2022[27]. - The company reported a net profit for the period of HKD 894,916 thousand, a 24.1% increase compared to HKD 721,076 thousand in the prior year[71]. - The company reported a pre-tax profit of HKD 1,073,030, an increase of 27% compared to HKD 845,079 in the same period of 2022[86]. Costs and Expenses - The sales cost for the first half of 2023 was approximately HKD 17,186 million, an increase of about 12.14% from HKD 15,325 million in the first half of 2022[20]. - Administrative expenses increased by approximately 4.92% to HKD 384 million in the first half of 2023, compared to HKD 366 million in the same period of 2022[23]. - Employee costs totaled HKD 390 million in the first half of 2023, down from HKD 453 million in the same period of 2022, reflecting a decrease of approximately 13.93%[23]. - Financing costs netted approximately HKD 27 million in the first half of 2023, a significant decrease of about 82.58% from HKD 155 million in the same period of 2022[25]. Assets and Liabilities - As of June 30, 2023, the total inventory was approximately HKD 1,019 million, a decrease of about 41.74% from approximately HKD 1,749 million as of December 31, 2022, primarily due to market downturns and lower procurement costs per ton[30]. - The total bank loans outstanding as of June 30, 2023, amounted to approximately HKD 701 million, with interest rates ranging from 2.50% to 8.90%, compared to 0.25% to 11.35% in the same period of 2022[31]. - The debt-to-asset ratio as of June 30, 2023, was 42.39%, a decrease from approximately 45.85% as of December 31, 2022[31]. - Total liabilities decreased to HKD 5,582,834,000, down 11.5% from HKD 6,303,322,000 at the end of 2022[76]. - The company’s equity attributable to shareholders increased to HKD 7,301,991,000, up 5.5% from HKD 6,918,714,000 at the end of 2022[76]. Cash Flow - The cash inflow from operating activities for the first half of 2023 was approximately HKD 1,716 million, compared to HKD 659 million in the same period of 2022[38]. - The net cash outflow from investing activities for the first half of 2023 was approximately HKD 586 million, compared to HKD 436 million in the same period of 2022[38]. - The net cash outflow from financing activities for the first half of 2023 was approximately HKD 353 million, compared to HKD 121 million in the same period of 2022, primarily due to dividend payments of approximately HKD 194 million[38]. - As of June 30, 2023, cash and cash equivalents amounted to HKD 2,959 million, an increase from HKD 2,270 million at the beginning of the year[39]. Shareholder Information - As of June 30, 2023, the company had a total of 2,705,996,962 shares issued, with major shareholders holding significant stakes, including Wang Yihan with 55.44%[55]. - The company declared an interim cash dividend of HKD 0.078 per share, totaling approximately HKD 211 million, expected to be distributed around January 16, 2024[63]. - The company has maintained a public float of at least 25% of its issued shares as required by listing rules[69]. Strategic Initiatives - The company has invested approximately HKD 5.2 billion in strategic assets as of June 30, 2023, covering a complete supply chain from extraction services to cross-border transportation[19]. - The company aims to enhance infrastructure construction at northern ports to support trade and improve competitive advantages in supply chain comprehensive services[19]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[78]. - The company aims to maintain a strong cash flow position while exploring strategic acquisitions to bolster growth[89]. Risk Management - The group emphasizes the use of foreign exchange derivatives to mitigate currency fluctuation risks, particularly in transactions involving USD and RMB[40]. - The group actively explores new financing channels to meet capital requirements driven by trade business development[42]. Corporate Governance - The company has established an Audit Committee to assist the board in providing independent opinions on financial reporting procedures and internal controls[59]. - The company has fully complied with the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[62].

Group 1 - No financial data or key metrics changes were provided in the document [1] - No business line data or key metrics changes were provided in the document [1] - No market data or key metrics changes were provided in the document [1] Group 2 - No company strategy or development direction information was provided in the document [1] - No management comments on the operating environment or future outlook were provided in the document [1] - No other important information was provided in the document [1] Q&A Session All Questions and Answers Question: Can we start now? - The response confirmed that the meeting can start at 10 o'clock [1]

Financial Performance - For the six months ended June 30, 2023, the revenue was HKD 18,512 million, an increase from HKD 17,186 million in the same period of 2022[2] - Gross profit for the same period was HKD 1,327 million, down from HKD 1,457 million year-on-year, representing a decrease of approximately 8.9%[3] - The profit attributable to equity shareholders for the six months was HKD 845 million, compared to HKD 703 million in the previous year, reflecting an increase of about 20.2%[2] - Basic and diluted earnings per share for the period were HKD 0.314, up from HKD 0.246 in the same period last year, marking an increase of approximately 27.6%[3] - Operating profit for the six months was HKD 1,060 million, compared to HKD 945 million in the previous year, indicating a growth of about 12.2%[3] - Total comprehensive income for the period was HKD 704 million, significantly higher than HKD 431 million in the same period of 2022, representing an increase of approximately 62.9%[4] - The company's EBITDA for the first half of 2023 was HKD 1,292,278,000, compared to HKD 1,134,399,000 in the same period of 2022, reflecting a growth of 13.9%[16] - The consolidated profit before tax for the same period was HKD 1,073,030,000, up from HKD 845,079,000, reflecting a growth of 27%[17] Revenue Breakdown - For the six months ended June 30, 2023, total revenue reached HKD 18,512,471,000, a 10.3% increase from HKD 16,782,124,000 in the same period of 2022[11] - Coal revenue amounted to HKD 14,061,455,000, up 7.6% from HKD 13,066,549,000 year-on-year[11] - Supply chain services revenue surged to HKD 3,072,510,000, a significant increase of 134.0% compared to HKD 1,309,839,000 in the previous year[11] - The geographical revenue breakdown shows that China (including Hong Kong, Macau, and Taiwan) contributed HKD 14,430,553,000, up from HKD 12,105,899,000 in the previous year[12] - The company generated approximately HKD 15,389 million from supply chain trading operations, accounting for 83.13% of total revenue[48] Assets and Liabilities - Non-current assets as of June 30, 2023, totaled HKD 4,285 million, a slight decrease from HKD 4,371 million at the end of 2022[5] - Current assets amounted to HKD 8,884 million, down from HKD 8,923 million at the end of 2022, reflecting a decrease of about 0.4%[5] - Total assets reported as of June 30, 2023, were HKD 14,376,664,000, slightly down from HKD 14,375,502,000 as of December 31, 2022[14] - Total liabilities as of June 30, 2023, were HKD 6,725,176,000, a decrease from HKD 7,048,844,000 at the end of the previous year[15] - The total liabilities increased to HKD 5,065,100 as of June 30, 2023, compared to HKD 3,806,854 at the end of 2022[35] Equity and Dividends - The total equity attributable to equity shareholders increased to HKD 7,301 million from HKD 6,919 million at the end of 2022, showing an increase of approximately 5.5%[6] - The company declared an interim dividend of HKD 0.078 per share, totaling approximately HKD 211 million[2] - The company declared an interim cash dividend of HKD 0.078 per share, totaling approximately HKD 211 million, expected to be distributed around January 16, 2024[89] Operational Efficiency - Employee costs for the six months ended June 30, 2023, totaled HKD 390,090,000, a decrease of 14% from HKD 453,682,000 in 2022[20] - The total financing costs for the period were HKD 54,210,000, significantly reduced from HKD 169,105,000 in 2022[19] - The company actively manages working capital by reducing inventory and accounts receivable levels to improve cash turnover[74] - The company's accounts receivable turnover days and accounts payable turnover days were both approximately 27 days, while inventory turnover days were about 15 days, indicating efficient working capital management[66] Investments and Acquisitions - The company acquired a 30% stake in TTJV for $24 million, expanding its supply chain services upstream[28] - On July 12, 2023, the company’s subsidiary agreed to acquire 131 office units in Zhuhai, Guangdong, for a total consideration of approximately RMB 218.89 million[90] - On August 4, 2023, the subsidiary entered into a property purchase agreement for a 2,239.42 square meter unit in Zhuhai for RMB 70.10 million[90] Risk Management - The company has adopted foreign exchange derivatives to hedge against currency fluctuations, particularly between USD and RMB[79] - The company has made a provision of approximately HKD 293.872 million (USD 37.5 million) related to a claim from a supplier regarding an unfulfilled procurement contract[37] Corporate Governance - The company has fully complied with the corporate governance code, except for a deviation regarding the separation of the roles of Chairman and CEO[91] - The company’s audit committee reviewed the interim results for the six months ended June 30, 2023, which were not audited but reviewed by KPMG[93] - The company’s board of directors includes four executive directors and three independent non-executive directors, ensuring appropriate checks and balances[91]