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]

Revenue and Profit Performance - Revenue for 2022 was HKD 34,414 million, a decrease of 16.44% compared to HKD 41,184 million in 2021, primarily due to reduced demand and price volatility in the coking coal market[6] - Net profit for 2022 was HKD 1,705 million[2] - Revenue for 2022 decreased to HKD 34,414,254 thousand from HKD 41,183,601 thousand in 2021, representing a decline of approximately 16.4%[143] - Gross profit for 2022 was HKD 3,197,936 thousand, down from HKD 5,833,736 thousand in 2021, a decrease of approximately 45.2%[143] - Net profit attributable to equity shareholders for 2022 was HKD 1,665,748 thousand, compared to HKD 3,462,244 thousand in 2021, a decrease of approximately 51.9%[144] - Basic earnings per share for 2022 were HKD 0.594, down from HKD 1.151 in 2021, a decrease of approximately 48.4%[144] - Net profit for the year 2022 was HK$1,704,892 thousand, a significant decrease from HK$3,494,793 thousand in 2021[145] - Total comprehensive income for the year 2022 was HK$984,685 thousand, compared to HK$3,664,302 thousand in 2021[145] - Profit before tax for 2022 was HKD 2,038,844 thousand, down from HKD 4,069,623 thousand in 2021, a decrease of approximately 49.9%[143] - Income tax expense for 2022 was HKD 333,952 thousand, down from HKD 574,830 thousand in 2021, a decrease of approximately 41.9%[143] - Non-controlling interests' share of profit for 2022 was HKD 39,144 thousand, up from HKD 32,549 thousand in 2021, an increase of approximately 20.3%[144] Coal Sales and Supply Chain - Coal sales volume reached 11.35 million tons, with an additional 4.18 million tons sold through the joint venture Xianghui Energy[2] - Supply chain integrated services revenue surged to HKD 3,757 million, a 282.59% increase from HKD 982 million in 2021, driven by increased cross-border transportation and logistics infrastructure investments[2][6] - Coal sales revenue decreased to 26,927,042 thousand HKD in 2022 from 36,107,175 thousand HKD in 2021, reflecting a significant decline[7] - Supply chain trade revenue reached 30,610 million HKD in 2022, representing 88.95% of total revenue[10] - Supply chain integrated services revenue surged to 3,757 million HKD in 2022, a 282.59% increase from 982 million HKD in 2021[10] - The company sold approximately 11.35 million tons of coal in 2022, with an additional 4.18 million tons sold through a joint venture[10] - Revenue from seaborne coal trade reached approximately HKD 21,182,125,000, accounting for about 62% of the company's total annual revenue[133] - The company's seaborne coal trade involves purchasing coal from suppliers in Russia, the United States, Australia, Canada, and other countries, and selling to customers in China and other countries[132] - The company's revenue recognition for seaborne coal trade is based on the time when customers obtain and accept the goods, which is considered the point of control transfer[133] Logistics and Infrastructure - Total fixed assets invested in China-Mongolia border logistics infrastructure reached HKD 4,400 million by the end of 2022[3] - The company developed and implemented smart logistics systems, including "Yi Chain," "Yi Coking Coal," and "AGV TOS," to enhance operational efficiency and data integration[3] - The company's AGV unmanned cross-border transport vehicles began operations in July 2022, significantly improving customs clearance efficiency[11] - The company owns and leases over 1,100 truck trailers and more than 20,000 containers for cross-border transportation assets[134] - Cross-border transportation assets include property, plant, and equipment valued at HKD 383,804,000, construction in progress at HKD 128,992,000, and right-of-use assets at HKD 319,178,000[134] - The company recorded a reversal of impairment loss on property, plant, and equipment for cross-border transportation assets amounting to HKD 46,308,000[136] - The company's cross-border transportation assets were subject to impairment assessment due to low utilization rates caused by COVID-19[134] - The company engaged external valuers to prepare discounted cash flow forecasts for the impairment assessment of cross-border transportation assets[136] - The company's cross-border transportation assets' impairment assessment involved significant management judgment, particularly in determining key assumptions for discounted cash flow forecasts[136] Dividends and Share Repurchases - The company declared a final dividend of HKD 241 million for 2022, with total dividends for the year amounting to HKD 416 million[3] - The company repurchased 132,038,000 shares, representing 4.60% of the issued shares, at a cost of approximately HKD 207 million between July 6, 2022, and January 16, 2023[3] - The company declared a final cash dividend of HK$0.084 per share for the year ended December 31, 2022, totaling approximately HK$241 million[47] - The company repurchased a total of 245,498,000 shares in 2022 and January 2023, with a total settlement cost of HKD 343,723,364.61[125] - The company declared dividends of HK$1,040,504 thousand in 2022[150] Financial Position and Cash Flow - Total fixed assets invested in China-Mongolia border logistics infrastructure reached HKD 4,400 million by the end of 2022[3] - Operating cash inflow was HKD 2,172 million in 2022, compared to HKD 2,758 million in 2021[31] - Cash outflow from investing activities was HKD 752 million in 2022, primarily due to a net cash outflow of approximately HKD 633 million for investment in logistics assets and supporting facilities[31] - Cash outflow from financing activities was HKD 2,112 million in 2022, mainly due to cash outflows of approximately HKD 1,059 million for dividends, HKD 326 million for share repurchases, and HKD 204 million for lease repayments[32] - The company's cash and cash equivalents at the end of 2022 were HKD 2,270,966,000[33] - Net cash generated from operating activities in 2022 was HKD 2,172,193 thousand, compared to HKD 2,758,340 thousand in 2021[153] - Net cash used in investing activities for 2022 was HKD 752,482 thousand, primarily due to payments for property, plant, and equipment, and intangible assets[154] - Net cash used in financing activities for 2022 was HKD 2,111,708 thousand, mainly due to repayments of bank loans and dividends paid to equity shareholders[154] - Cash and cash equivalents decreased by HKD 691,997 thousand in 2022, ending the year at HKD 2,270,966 thousand[155] - The company's total equity as of December 31, 2021, was HKD 7,476,278 thousand, reflecting changes in comprehensive income, share repurchases, and other equity movements[152] - Depreciation of property, plant, and equipment, and right-of-use assets in 2022 amounted to HKD 254,607 thousand, an increase from HKD 233,259 thousand in 2021[153] - The company's inventory decreased by HKD 652,192 thousand in 2022, compared to an increase of HKD 1,719,975 thousand in 2021[153] - Trade and other receivables decreased by HKD 865,106 thousand in 2022, compared to an increase of HKD 2,083,240 thousand in 2021[153] Corporate Governance and Board Activities - The company's mission is to "make bulk commodity trading easier" and it aims to provide comprehensive services across the entire commodity trading value chain with efficient logistics infrastructure[62] - The company is committed to developing a corporate culture of "simplicity, efficiency, and dedication" to achieve its mission and vision[62] - The Board of Directors is responsible for formulating the company's strategy, which aligns with its mission and corporate culture, aiming to create long-term value[62] - The company has adopted the Corporate Governance Code as its governance guidelines, with a requirement for at least 7 days' notice for Board meetings (except for regular meetings, which require 14 days' notice)[63] - The Board believes that the company has complied with the Corporate Governance Code provisions, except for a deviation from Code Provision C.2.1, which requires the separation of Chairman and CEO roles[63] - The Board consists of 8 members: 4 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring a balanced composition[64] - The company held 4 Board meetings and 1 shareholders' meeting in 2022, with detailed attendance records provided[65] - The company emphasizes maintaining high standards of corporate governance and business ethics to protect shareholders' long-term interests[61] - The company's management team is led by young and ambitious leaders, with a comprehensive career development system and competitive compensation to attract and retain talent[62] - The company continues to expand and adopt innovative business models, focusing on omnichannel marketing, resource accumulation, and opportunity exploration[62] - The company paid a total of HKD 7,541,000 for audit and non-audit services provided by KPMG, with HKD 7,521,000 allocated for audit services and HKD 20,000 for other services[74] - The audit committee held 2 meetings in 2022, reviewing the group's interim and annual financial reports, and confirmed compliance with accounting standards, listing rules, and legal requirements[72] - Independent non-executive directors received an increased annual cash remuneration of USD 200,000 starting from January 1, 2021, as per supplementary appointment letters[67] - The board of directors strictly adheres to listing rules and corporate governance codes to ensure the independence of independent non-executive directors, with mechanisms effectively implemented in 2022[67] - The company's chairman and CEO, Ms. Cao Xinyi, is responsible for policy formulation, business direction, and overseeing the daily management of the group[68] - Independent non-executive directors provide independent judgment on strategic matters, conflicts of interest, and related-party transactions, ensuring the interests of all shareholders are considered[69] - All directors confirmed compliance with the standard code of conduct for securities transactions as per the listing rules for the year ending December 31, 2022[70] - Directors participated in continuous professional development activities, including reading materials on listing rules, attending seminars, and internal discussions on economic trends and corporate governance[76][77] - The audit committee consists of three independent non-executive directors: Mr. Wu Yuqiang (Chairman), Mr. Wang Wenfu, and Mr. Gao Zhikai[72] - Directors are required to retire by rotation at least once every three years, with one-third (or the nearest number not less than one-third) of directors retiring at each annual general meeting[71] - The company's financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and include applicable disclosures required by the Listing Rules and the Hong Kong Companies Ordinance[78] - The Remuneration Committee held 2 meetings in 2022 to review and recommend the remuneration and bonus plans for directors and senior management based on their responsibilities, experience, qualifications, and performance[79][80] - The Nomination Committee held 1 meeting in 2022 to review the composition and structure of the Board of Directors and assess the performance of the Board and its committees[81][82] - The Environmental, Social, and Governance (ESG) Committee held 1 meeting in 2022 to review and discuss the company's ESG status and related matters[83][84] - The company has implemented an internal control system to safeguard assets, maintain proper accounting records, and ensure compliance with laws and regulations[85] - The company uses an ERP system to track and record business documents, automatically generating accounting entries, and regularly collects and verifies revenue and cost data with business units to ensure accuracy[85] - The company has adopted internal control procedures to handle and disclose insider information, including maintaining a list of insiders, training them, and controlling insider information to ensure timely detection, assessment, and reporting to the Board[86] - The company has a whistleblowing policy and system in place for employees and individuals transacting with the group to report actual or suspected improper cases confidentially and anonymously[86] - The company has established anti-fraud, anti-money laundering, and anti-bribery policies to promote and support compliance with applicable laws and regulations[86] - The company's secretary, Ms. Chan Sau Chu, confirmed that she had received no less than 15 hours of relevant professional training during the year ended December 31, 2022[87] - The company revised its memorandum and articles of association to comply with the core shareholder protection levels set out in Appendix 3 of the Listing Rules and to incorporate certain internal governance amendments[88] - The company maintains an open communication policy and disseminates information to shareholders and the investment community through various channels, including financial reports, annual general meetings, and regulatory disclosures[89] - The company adopted a dividend policy in 2018, ensuring sufficient cash reserves to meet funding needs, future growth, and equity value, while considering factors such as financial performance, cash flow, and shareholder interests[90] - The company has a board diversity policy, with two female directors and six male directors as of December 31, 2022, and aims to enhance gender diversity at all levels, with over 85% of senior management being female[91] - The company's main business involves the processing and trading of coal and other products, as well as supply chain integrated services, with detailed performance and risk analysis provided in the annual report[92] - The company declared a final cash dividend of HKD 0.084 per share for the year ended December 31, 2022, totaling approximately HKD 241 million[93] - Sales to the top five customers accounted for 38.72% of the company's total revenue, with the largest customer contributing 12.66%[93] - Total procurement for the year amounted to HKD 26,729 million, with the top five suppliers accounting for 30.81% and the largest supplier contributing 9.78%[93] - The company provided a counter-guarantee of up to RMB 160 million in April 2022, RMB 194.04 million in September 2022, and RMB 269.5 million in November 2022 to Xiamen Xiangyu[96] - The company's subsidiary, E-Commodities Japan, entered into a lease agreement with North Energy for a property in Japan at a monthly rent of JPY 565,000 (approximately HKD 30,689.11)[97] - The registered capital of Xianghui Energy was reduced from RMB 2 billion to RMB 1.2 billion, with Beijing Yidaotong maintaining a 49% stake[98] - The company entered into a mutual supply framework agreement with Xiamen Xiangyu, involving the supply of products and services, with a duration from January 1, 2022, to December 31, 2024[99] - The mutual supply framework agreement includes the supply of products such as seaborne coking coal, petrochemicals, and iron ore, with the aim of leveraging each party's supplier and customer resources to enhance market competitiveness[100] - The company provided logistics services including transportation, warehousing, and processing for Xiamen Xiangyu's coal trade business, while Xiamen Xiangyu offered door-to-door logistics services for the company's seaborne coking coal and petrochemicals trade[101] - The total transaction amount for the year ended December 31, 2022, was HKD 3,783 million, with a transaction cap of HKD 11,921 million, including sales transactions, procurement transactions, and service transactions[102] - The company's auditors issued an unqualified opinion on the continuing connected transactions under the mutual supply framework agreement for the year ended December 31, 2022[103] - The company entered into a consulting agreement with Mr. Wang Xingchun for strategic advisory services related to infrastructure development in China's port areas, with an annual service fee equivalent to USD 1,000,000[104] - No transactions were conducted under the consulting agreement for the year ended December 31, 2022, as the agreement was set to commence on January 1, 2023[105] - The remuneration for the company's senior management ranged from HKD 3,000,000 to HKD 200,000,000 for the year ended December 31, 2022[107] - The company received annual confirmations from independent non-executive directors regarding their independence in accordance with the Listing Rules[108] - The company disclosed the interests and short positions of directors and key executives in the company's shares and related securities as of December 31, 2022[109] - The company's total issued shares as of December 31, 2022, were 2,867,922,962[110] - The company's 2012 Restricted Share Unit Plan expired on June 11, 2022, and no awards were granted under this plan during the year[111] - The 2022 Restricted Share Unit Plan allows for the issuance of shares up to 10% of the total issued shares as of the adoption date[112] - Under the 2022 Restricted Share Unit Plan, 33,728,878 shares were purchased at a total cost of approximately HKD 49,387,364.48 as of December 31, 2022[113] - No unvested or unexercised restricted share units were held by any directors, top five highest-paid individuals, or other participants under the 2022 Restricted Share Unit Plan as of December 31, 2022[113] - The largest shareholder, Wang Yihan, holds a 52.31% stake in the company through controlled entities[115] - Famous Speech Limited, a beneficial owner, holds a 52.31% stake in the company[115] - Wang Xingchun, through Winsway Resources, holds a 52.31% stake in the company under a disclosed agreement[115] - China Min

Financial Data and Key Metrics Changes - The company reported its full-year results for 2022 on March 22, indicating significant financial performance metrics [1] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the document [1] Market Data and Key Metrics Changes - The document does not contain information on market data or key metrics changes [1] Company Strategy and Development Direction and Industry Competition - The management team was invited to provide targeted insights into the company's performance, suggesting a focus on strategic development and competitive positioning [1] Management Comments on Operating Environment and Future Outlook - Management's comments regarding the operating environment and future outlook were not detailed in the document [1] Other Important Information - The investor relations director, Sophie Sun, welcomed analysts and shareholders to the earnings call, indicating a structured approach to investor communication [1] Q&A Session Summary - The document does not include any questions or answers from the Q&A session [1]

Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 34,414 million, a decrease from HKD 41,184 million in 2021, representing a decline of approximately 16.8%[2] - The profit for the year was HKD 1,705 million, down from HKD 3,495 million in 2021, indicating a decrease of about 51.2%[4] - Basic and diluted earnings per share for 2022 were HKD 0.594, compared to HKD 1.151 in 2021, reflecting a decline of approximately 48.3%[3] - The gross profit for the year was HKD 3,198 million, down from HKD 5,834 million in 2021, representing a decrease of about 45.2%[2] - The company reported a total comprehensive income of HKD 984 million for the year, significantly lower than HKD 3,664 million in 2021, indicating a decrease of about 73.1%[4] - Reported segment revenue for 2022 was HKD 35,031,515, a decrease of 16.0% from HKD 41,693,415 in 2021[21] - Adjusted EBITDA for the reporting segment was HKD 2,563,833 in 2022, down 46.3% from HKD 4,775,591 in 2021[21] - The company recorded a comprehensive profit before tax of HKD 2,038,844 in 2022, down from HKD 4,069,623 in 2021, a decrease of 50.0%[21] Dividends and Share Repurchases - The company declared a final cash dividend of HKD 0.084 per share, totaling approximately HKD 241 million[1] - The proposed final dividend per ordinary share for 2022 is HKD 0.084, compared to HKD 0.302 in 2021, indicating a decrease of 72.1%[55] - The company repurchased a total of 277,020,000 shares during the year ended December 31, 2022, compared to zero shares repurchased in 2021[57] - The company spent HKD 49,221,000 to repurchase 33,728,878 shares in the market under the restricted share unit plan, up from HKD 20,625,000 for 51,401,230 shares in 2021[59] Revenue Breakdown - Coal revenue was HKD 26,927,042,000, down 25.5% from HKD 36,107,175,000 in the previous year[16] - Supply chain services revenue increased significantly to HKD 3,756,526,000 from HKD 981,618,000, representing a growth of 282.5%[16] - Revenue from external customers in China (including Hong Kong, Macau, and Taiwan) was HKD 27,737,415 in 2022, a decline of 19.7% from HKD 34,544,878 in 2021[23] - Sales from overseas markets reached HKD 6,677 million, increasing its share of total revenue from 16.12% in 2021 to 19.40% in 2022[70] - The company's supply chain trade business generated revenue of HKD 30,610 million, accounting for approximately 88.95% of total revenue[72] Assets and Liabilities - Total current assets decreased to HKD 8,923 million in 2022 from HKD 11,522 million in 2021, a decline of approximately 22.7%[5] - Non-current assets increased to HKD 4,371 million in 2022 from HKD 3,926 million in 2021, an increase of about 11.3%[6] - Total reported segment assets decreased to HKD 14,375,502 in 2022 from HKD 17,295,491 in 2021, reflecting a reduction of 16.9%[21] - Total reported segment liabilities were HKD 7,048,844 in 2022, down 25.0% from HKD 9,374,928 in 2021[21] - The total liabilities for trade payables and notes payable were HKD 3,674,994,000 as of December 31, 2022, down from HKD 4,742,249,000 in 2021, reflecting a decrease of approximately 22.5%[49] Operational Metrics - The company achieved a coal sales volume of approximately 11.35 million tons in 2022, alongside 4.18 million tons from a joint venture in Mongolia[73] - The import volume of coking coal from Mongolia and Russia reached 46.61 million tons, accounting for 73.02% of China's total coking coal imports[60] - The procurement volume decreased by 35.04% to approximately 11.77 million tons in 2022 from 18.12 million tons in 2021[76] - The aging analysis of trade payables shows that payables within three months decreased to HKD 1,643,650,000 from HKD 2,176,436,000, a decline of 24.5%[51] Employee and Training - As of December 31, 2022, the group employed 1,844 full-time employees, an increase from 1,749 in 2021, reflecting a growth of approximately 5.4%[108] - The group conducted a total of 271 hours of training in 2022, with 3,513 participants, compared to 529 hours and 1,547 participants in 2021, showing a significant increase in training engagement[111] Financing and Debt - The total bank loans held by the group at the end of 2022 amounted to HKD 968 million, with an interest rate range of 1.40% to 8.90%[89] - The group’s debt-to-asset ratio at the end of 2022 was 45.85%, a decrease from 51.60% at the end of 2021[89] - The net financing cost for 2022 was HKD 217 million, an increase of 8.50% from HKD 200 million in 2021, driven by foreign exchange losses and adjustments from warrant exercises[82] Strategic Initiatives - The company is focusing on the development of a digitalized supply chain and has made significant progress in its "smart logistics" and "smart customs" systems[61] - The company aims to expand its leading position in the land border supply chain business by developing new ports and investing in domestic supply chains[62] - The company plans to focus on commodity trading and supply chain integrated services, emphasizing specialization, internationalization, and digitization for future growth[75] Environmental and Governance - The company emphasizes its commitment to environmental and social governance, aiming for a low-carbon and clean development approach[62] - The group has engaged a third-party consultant for its ESG report, indicating a commitment to environmental, social, and governance standards[112] - The group has maintained compliance with corporate governance codes, with a noted exception regarding the separation of the roles of Chairman and CEO[114]

Revenue and Growth - For the six months ended June 30, 2022, the company reported total revenue of HKD 16,782 million, an increase of 38.39% compared to HKD 12,127 million in the same period of 2021[13] - The revenue from coal products increased by 39.95% to HKD 13,067 million from HKD 9,337 million year-on-year[17] - The company's supply chain integrated services generated revenue of HKD 1,310 million, a significant increase of 212.65% from HKD 419 million in the previous year[18] - Sales revenue from outside China (including Hong Kong, Macau, and Taiwan) was approximately HKD 4,676 million, accounting for 27.86% of total revenue, up from 14.98% in the previous year[14] - The company reported an increase in revenue from its integrated supply chain services with Mongolia, contributing to improved gross profit[49] - The geographical breakdown of revenue showed that China (including Hong Kong, Macau, and Taiwan) contributed HKD 12,105,899,000, an increase from HKD 10,310,708,000 in the previous year, representing a growth of about 17.4%[110] - The company expects to continue leveraging its supply chain services to enhance revenue growth in the future[108] Costs and Expenses - The cost of sales for the first half of 2022 was HKD 14,643 million, a 40.64% increase from HKD 10,412 million in the same period of 2021, primarily due to rising coal procurement prices[20] - Distribution costs increased by 106.25% to HKD 99 million in the first half of 2022, up from HKD 48 million in the same period of 2021, primarily due to increased domestic coal business[23] - Employee costs rose by 49.41% to HKD 454 million in the first half of 2022, compared to HKD 304 million in the same period of 2021, mainly due to increased wages for cross-border vehicle drivers[25] - Financing costs netted HKD 155 million in the first half of 2022, a 154.10% increase from HKD 61 million in the same period of 2021, primarily due to foreign exchange losses[27] - The company reported a significant increase in depreciation expenses, rising to HKD 119,493,000 from HKD 106,779,000 in the previous year[102] Profitability - Gross profit for the first half of 2022 was HKD 1,457 million, an increase of 8.65% compared to HKD 1,341 million in the same period of 2021[22] - Net profit for the first half of 2022 was HKD 721 million, down from HKD 787 million in the same period of 2021[28] - Operating profit increased to HKD 945,336 thousand from HKD 890,048 thousand, representing a growth of 6.2%[82] - Total comprehensive income for the period was HKD 430,828 thousand, down from HKD 848,521 thousand, indicating a significant decline[84] Financial Position - As of June 30, 2022, inventory was HKD 2,291 million, a decrease of 4.62% from HKD 2,402 million as of December 31, 2021, mainly due to market downturns in coking coal[30] - The debt-to-asset ratio as of June 30, 2022, was 56.57%, an increase from 51.60% at the end of December 2021[31] - Current assets totaled HKD 12,283,060 thousand, an increase from HKD 11,522,002 thousand, while current liabilities rose to HKD 8,980,477 thousand from HKD 7,755,594 thousand[86] - The company's total assets less current liabilities amounted to HKD 7,280,679 thousand, down from HKD 7,692,399 thousand[86] - The equity attributable to shareholders decreased to HKD 6,800,343 thousand from HKD 7,227,221 thousand, reflecting a decline in shareholder value[88] Cash Flow - Operating cash inflow for the first half of 2022 was HKD 659 million, compared to an outflow of HKD 462 million in the same period last year, indicating a turnaround in cash flow[37] - The group reported a net cash outflow from investment activities of HKD 436 million in the first half of 2022, contrasting with a cash inflow of HKD 8 million in the same period last year[37] - Financing activities resulted in a cash outflow of HKD 121 million in the first half of 2022, compared to a cash inflow of HKD 632 million in the same period last year, primarily due to loan repayments and share buybacks[37] Shareholder Information - The company declared an interim cash dividend of HKD 0.061 per share, expected to be distributed around January 18, 2023[78] - The company repurchased a total of 113,460,000 shares at a cost of approximately HKD 136,761,496 during the reporting period, all of which have been cancelled[54] - Major shareholders include Wang Yihan with 1,500,080,608 shares, representing 52.31% of the company, and China Minmetals Corporation with 1,503,195,952 shares, representing 52.41%[68] Risk Factors - The geopolitical tensions and COVID-19 pandemic have created uncertainties affecting the company's operational and financial conditions, particularly in coal supply and pricing[49] - Over 52.58% of the group’s revenue is denominated in RMB, while over 66.76% of procurement costs are in USD, exposing the company to currency risk[47] - The group’s financial position is significantly affected by commodity price fluctuations, which are influenced by international supply and demand dynamics[43] Corporate Governance - The audit committee held one meeting during the six months ending June 30, 2022, and reviewed the unaudited financial statements, confirming compliance with applicable accounting standards and regulations[75] - The remuneration committee also held one meeting during the same period to review and establish the remuneration policies for directors and senior management[76] - The company has complied with the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[77]

Financial Performance - The company recorded total revenue of HKD 41,184 million and a net profit of HKD 3,495 million for the year 2021[5]. - The company recorded a consolidated revenue of HKD 41,184 million in 2021, an increase of 87.40% from HKD 21,977 million in 2020[15]. - In 2021, the company's net profit attributable to equity shareholders was HKD 3,462 million, a significant increase from HKD 462 million in 2020, representing a growth of 650%[31]. - Basic earnings per share for 2021 were HKD 1.151, compared to HKD 0.152 in 2020, while diluted earnings per share were HKD 1.128, up from HKD 0.152 in the previous year[31]. - Gross profit increased by 301.24% to HKD 5,834 million in 2021, compared to HKD 1,454 million in 2020, primarily due to strong coal demand and rising prices[24]. - Operating profit for the year was HKD 4,125.8 million, up from HKD 692.5 million in the previous year, reflecting a growth of 493.5%[163]. - Net profit for the year reached HKD 3,494.8 million, a substantial increase from HKD 452.5 million in 2020, marking a growth of 671.5%[165]. - The company reported a significant increase in other income, which rose to HKD 28.0 million from HKD 14.3 million in the previous year[163]. Revenue Sources - The supply chain trade segment contributed HKD 40,143 million, accounting for approximately 97.47% of total revenue in 2021[19]. - Sales revenue from overseas markets (excluding China) surged by 130.84% to HKD 6,639 million in 2021, up from HKD 2,876 million in 2020[17]. - The group reported revenue from seaborne coal trading of approximately HKD 30,645 million, accounting for about 74% of total annual revenue[153]. Cost and Expenses - The cost of goods sold was HKD 35,350 million in 2021, a 72.25% increase from HKD 20,523 million in 2020, mainly due to rising coal procurement prices[22]. - Administrative expenses rose by 168.11% to HKD 1,488 million in 2021, compared to HKD 555 million in 2020, largely due to increased bonuses for the coal and other teams[26]. - The total administrative expenses for the year were HKD 1,488.1 million, up from HKD 554.6 million in the previous year[163]. Shareholder Returns - The company declared a total dividend of HKD 0.302 per share for 2021, amounting to approximately HKD 866 million[6]. - The company plans to continue its dividend policy and focus on stable supply to customers amid global uncertainties[7]. Investments and Capital Expenditures - The company has invested over 1,000 trailers and over 10,000 containers to enhance cross-border logistics efficiency[6]. - The company’s capital expenditures prioritized financing lease payments for logistics-related assets[46]. - The company’s investment cash outflow for 2021 was HKD 456 million, down from HKD 559 million in 2020[42]. Market and Operational Strategies - The company plans to continue diversifying its supplier and customer base in the commodity trading business and improve cross-border logistics efficiency[21]. - The company expanded its business scope to new international markets including Japan, Malaysia, and Germany in 2021[17]. - The company achieved a breakthrough in new port imports, capturing market share despite ongoing pandemic impacts in Mongolia[15]. - The company plans to provide logistics services related to bulk commodity trade, enhancing its core competitiveness[119]. Risk Management - The company acknowledges various risks, including commodity price fluctuations and reliance on the steel industry, which could significantly impact its financial performance[48]. - The impact of the COVID-19 pandemic has led to a decrease in coal imports from Mongolia, affecting the supply chain, but increased gross margins in coking coal trade due to domestic demand in China[54]. - The company has implemented emergency measures to reassess trade receivables and strengthen collection efforts in response to the uncertainties caused by the pandemic[54]. Corporate Governance - The company has adopted corporate governance practices in line with the Listing Rules Appendix 14, ensuring high standards of corporate governance and business ethics[74]. - The board believes it has complied with the corporate governance code provisions for the year ended December 31, 2021, except for a deviation regarding the separation of roles between the Chairman and the CEO[75]. - The company has a strong management team with extensive experience in commodity trading, logistics, and finance, including CEO Ms. Cao Xinyi who has been with the company since 2009[66]. - The company is committed to enhancing investor confidence and protecting shareholder interests through robust corporate governance practices[74]. Employee Development - The company had a total of 1,749 full-time employees as of December 31, 2021, a significant increase from 1,119 in 2020, reflecting a growth in workforce[56]. - The company conducted 529 hours of training in 2021, with over 1,547 participants, compared to 470.5 hours and 1,792 participants in 2020, indicating a focus on employee development[58]. Financial Position - The company's total bank loans amounted to HKD 1,368 million at the end of 2021, with an asset-to-liability ratio of 51.60%, down from 56.16% at the end of 2020[35]. - The total cash and cash equivalents at the end of 2021 were HKD 3,259,393,000, reflecting a substantial increase from the previous year[44]. - The total liabilities increased to HKD 7,755,594 thousand in 2021 from HKD 4,482,807 thousand in 2020, indicating a rise of approximately 73%[167]. Future Outlook - The company has indicated a strong outlook for future growth, driven by market expansion and new product development strategies[163]. - The company plans to continue focusing on market expansion and new product development to drive future growth, although specific figures were not disclosed in the call[200].