香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 Feishang Anthracite Resources Limited 飛 尚 無 煙 煤 資 源 有 限 公 司 （於英屬維爾京群島註冊成立的有限公司） （股份代號：1738） 截至二零二二年十二月三十一日止年度之全年業績公告 全年業績 截至二零二二年十二月三十一日止年度 • 來自持續經營業務之收益增加約43.0%至約人民幣1,603.2百萬元 • 來自持續經營業務之毛利增加約65.6%至約人民幣660.5百萬元 • 截至二零二二年十二月三十一日止年度，母公司擁有人應佔來自持續經營 業務溢利約人民幣26.0百萬元，而截至二零二一年十二月三十一日止年度 虧損約人民幣110.3百萬元 • 來自持續經營業務之每股基本溢利為約人民幣0.02元 ...

Financial Performance - Revenue from continuing operations increased by approximately 56.0% to RMB 698.8 million for the six months ended June 30, 2022, compared to RMB 447.9 million for the same period in 2021[37]. - Gross profit from continuing operations rose by approximately 117.8% to RMB 270.7 million for the six months ended June 30, 2022, up from RMB 124.3 million in the prior year[37]. - Loss attributable to owners of the parent from continuing operations decreased by approximately 82.5% to RMB 15.8 million for the six months ended June 30, 2022, compared to RMB 90.1 million for the same period in 2021[37]. - The company recorded a turnaround from a loss of approximately RMB 92.2 million to a profit of approximately RMB 11.7 million for the six months ended June 30, 2022, due to strong coal market conditions[40]. - The company reported a net profit of RMB 28.8 million for the period, a turnaround from a net loss of RMB 94.0 million in the same period last year[111]. - The company’s total comprehensive income for the period was RMB 28.3 million, compared to a loss of RMB 93.9 million in the same period last year[111]. - The company reported a net loss of RMB 92,224 thousand for the six months ended June 30, 2022, compared to a loss of RMB 93,910 thousand in the same period of the previous year[120]. - The company’s total comprehensive loss for the period was RMB 92,175 thousand, compared to RMB 93,910 thousand in the previous year, indicating a slight improvement[120]. Production and Sales - Total production for the reporting period was approximately 1.14 million tons, with confirmed and inferred total reserves of approximately 167.55 million tons as of June 30, 2022[42]. - Sales volume of self-produced anthracite coal rose by about 17.1% to approximately 1.37 million tons, compared to about 1.17 million tons in the previous period[45]. - Average selling price of self-produced anthracite coal increased by approximately 32.1% to RMB 509.6 per ton, up from RMB 385.9 per ton[45]. - Revenue from coal processing sales accounted for 54.5% of total revenue during the reporting period, increasing from 49.0% in the previous period[47]. - The coal supply remained constrained due to supply-side reforms and strict safety and environmental inspections, despite policies aimed at expanding production capacity[39]. Costs and Expenses - Total sales cost increased by approximately 32.3% to about RMB 428.2 million, up from approximately RMB 323.6 million[48]. - Labor costs rose by approximately 21.7% to about RMB 128.4 million, compared to approximately RMB 105.5 million in the previous period[49]. - Administrative expenses increased by approximately RMB 19.3 million due to business expansion, impacting employee costs and travel expenses[58]. - The company incurred a total cost of sales of RMB 428,180,000, which increased from RMB 323,566,000 in the previous year, indicating a rise in operational costs[180]. - The company’s employee benefit expenses increased to RMB 180,949,000 from RMB 152,186,000 in the previous year, reflecting higher labor costs[180]. Financial Position - The group had cash and cash equivalents of approximately RMB 28.7 million as of June 30, 2022[64]. - The total outstanding short-term and long-term bank borrowings amounted to approximately RMB 1,533.8 million as of June 30, 2022[65]. - The asset-liability ratio was 144.1% and 145.3% as of December 31, 2021, and June 30, 2022, respectively, indicating no significant fluctuations during the reporting period[73]. - The group had a net current liability of RMB 2,971.5 million and shareholders' deficit of RMB 619.8 million as of June 30, 2022, raising concerns about the company's ability to continue as a going concern[105]. - The company’s equity attributable to owners of the parent decreased to RMB (838,036) thousand from RMB (849,205) thousand, indicating a slight improvement in the negative equity position[117]. Market Conditions and Outlook - The coal industry faced challenges from external risks, including the Russia-Ukraine conflict and high inflation, impacting China's economic recovery[39]. - The company anticipates continued strong market conditions for coal, which may positively influence future performance[40]. - The coal industry is expected to see moderate production capacity expansion due to strict safety and environmental regulations, with coal prices anticipated to remain relatively high in the second half of 2022[80]. - The company plans to focus on high-quality capacity expansion and coal quality management to enhance competitiveness and average selling prices[82]. Shareholder Information - Major shareholders include Li Feili with a total stake of 53.53% and Laitan Investments Limited holding 52.44%[86]. - The board members collectively own 34,096,300 shares, accounting for approximately 2.47% of the issued shares[89]. - The company has adopted a share option scheme allowing for the grant of options to purchase up to 138,054,580 shares, which is 10% of the issued shares as of the approval date[99]. Discontinued Operations - The group completed the sale of Guizhou Dayuan, recognizing a gain of approximately RMB 25.9 million from discontinued operations[63]. - The revenue from discontinued operations for the period from January 1 to March 28, 2022, was RMB 8.14 million, with a profit from discontinued operations of RMB 27.82 million recognized[158]. - The Dogchang Coal Mine has ceased operations since March 2013, and its performance has been reclassified as discontinued operations, having no significant impact on the interim financial results[148]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2022, was RMB 322,788,000, a significant increase from RMB 32,976,000 in the same period of 2021, representing a growth of 877%[123]. - The net cash used in investing activities was RMB 149,818,000, compared to RMB 69,006,000 in the previous year, indicating an increase of 117%[123]. - Financing activities resulted in a net cash outflow of RMB 167,678,000, a decrease from a net inflow of RMB 36,765,000 in the prior year[123]. Regulatory and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[92]. - The company has confirmed that all directors have complied with the standards of the securities trading code during the reporting period[94]. - The company has proactively applied amendments to accounting standards effective from January 1, 2022, with no significant impact on its financial position or performance[1].

Economic Performance - In 2021, China's GDP grew by 8.1% year-on-year, with an average growth of 5.1% over two years[11]. - The demand for coal is projected to remain stable, supported by fiscal and monetary policies aimed at stabilizing China's economy and GDP growth[19]. Coal Market Dynamics - The average market price of Qinhuangdao thermal coal (Q5500) was approximately RMB 1,031 per ton in 2021, representing a year-on-year increase of about 78.7%[13]. - Overall electricity consumption and coal demand from the thermal power and chemical industries achieved double-digit growth in 2021[13]. - Coal supply growth was weak in 2021 due to various factors, including strict regulatory environments and limited new capacity approvals[14]. - The National Development and Reform Commission implemented policies to increase coal supply, resulting in a significant recovery in supply towards the end of 2021[14]. - The coal market experienced significant price fluctuations and supply shortages in 2021, with prices rising rapidly until mid-October when policy interventions began to take effect[24]. Company Performance - The company recorded a consolidated loss attributable to equity holders of approximately RMB 110.3 million for the year ended December 31, 2021, a decrease of about 68.1% compared to RMB 345.9 million in the previous year[30]. - The total revenue from continuing operations increased by approximately 10.7% from RMB 1,013.1 million in 2020 to RMB 1,121.0 million in 2021[49]. - The operating profit improved significantly, from a loss of RMB 225.0 million in 2020 to a profit of RMB 121.4 million in 2021, representing a 154.0% change[47]. - The net loss for the year decreased by 73.2%, from RMB 346.9 million in 2020 to RMB 92.9 million in 2021[47]. Production and Cost Management - The company's coal production and quality declined longer than anticipated due to complex geological conditions, leading to decreased total production and sales compared to the previous year[16]. - The unit production cost increased in 2021 compared to 2020, further weakening the company's profitability due to financial burdens from existing interest-bearing loans carried over from 2020[16]. - The total unit sales cost for coal mining activities in 2021 was RMB 281.2 per ton, compared to RMB 232.6 per ton in 2020, reflecting increases in labor, materials, and government taxes[57]. - The cost of sales from continuing operations increased by approximately 0.9% from RMB 715.6 million in 2020 to RMB 722.2 million in 2021, primarily due to rising labor, material, fuel, and energy costs[51]. Strategic Initiatives - The company plans to focus on quality management and product structure adjustments to enhance competitiveness and average selling prices of coal products[20]. - Future strategies include expanding quality capacity, implementing mechanization and intelligent production management, and providing diversified and customized coal products to maintain quality customers[20]. - The company aims to enhance coal quality management and optimize product structure to create sustainable competitive advantages in the future[29]. Environmental and Safety Compliance - The company continues to focus on safety measures and compliance with strict safety regulations, which have impacted production progress and led to temporary shutdowns[26]. - The company plans to explore opportunities for clean and efficient coal utilization in the context of carbon peak and carbon neutrality goals[29]. - Environmental compliance costs for the year were approximately RMB 3.8 million, with RMB 0.4 million related to the construction of environmental facilities[43]. Shareholder and Governance Matters - Major shareholders include Li Feilie, who holds 15,000,000 shares directly and has control over 724,029,650 shares through related entities, representing 53.53% of the issued shares[121]. - The board consists of nine members, including six executive directors and three independent non-executive directors, ensuring a balance of power and independence[165]. - The company has established a robust corporate governance framework, adhering to the corporate governance code as per listing rules[162]. Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[99]. - The company plans to launch three new products in the next quarter, targeting a market share increase of 5%[98]. - The company is committed to sustainability, with plans to reduce carbon emissions by 40% by 2025[103].

Revenue and Profitability - Revenue from continuing operations increased by approximately 5.4% to RMB 447.9 million for the six months ended June 30, 2021, compared to RMB 424.8 million for the same period in 2020[38]. - Gross profit from continuing operations rose by approximately 29.3% to RMB 124.3 million for the six months ended June 30, 2021, up from RMB 96.2 million in the prior year[38]. - Loss attributable to owners of the parent from continuing operations decreased by approximately 14.3% to RMB 90.1 million for the six months ended June 30, 2021, compared to RMB 105.2 million for the same period in 2020[38]. - Revenue increased by approximately 5.4% to about RMB 447.9 million, driven by a rise in the average selling price of self-produced anthracite coal, which increased by approximately 14.7% to RMB 385.9 per ton[47]. - Revenue from the sale of processed coal increased from approximately RMB 191.4 million to about RMB 219.3 million, accounting for 49.0% of total revenue during the reporting period[48]. - Total gross profit increased by approximately 29.3% to about RMB 124.3 million, with the gross profit margin rising from approximately 22.6% to 27.8%[59]. - Loss from continuing operations decreased from approximately RMB 103.8 million to about RMB 91.9 million during the reporting period, primarily due to an increase in gross profit of approximately RMB 28.1 million and a reduction in administrative expenses of about RMB 4.7 million[60]. - Loss attributable to equity holders of the parent company decreased from approximately RMB 105.2 million to about RMB 90.1 million during the reporting period[62]. - The company reported a net loss attributable to the owners of the parent company for the period was RMB 92,224 thousand, compared to RMB 106,853 thousand in the same period last year, indicating a reduction in losses[118]. Production and Sales - The average selling price of coal products increased compared to the same period in 2020, but the growth rate was lower than expected due to complex geological conditions affecting production[42]. - The overall demand for coal remained strong in the first half of 2021, driven by growth in key downstream industries, particularly thermal power generation[40]. - The total production of the group during the reporting period was approximately 0.85 million tons, with confirmed and inferred total reserves of approximately 169.85 million tons as of June 30, 2021[43]. - Sales volume of self-produced anthracite coal decreased by approximately 7.1% from about 1.26 million tons to approximately 1.17 million tons due to complex geological conditions and stricter safety regulations[47]. - The average price of port thermal coal was approximately RMB 807.0 per ton for the first half of 2021, representing a year-on-year increase of about 50.6%[40]. Financial Position and Liabilities - The group's net current liabilities increased from approximately RMB 1,337.4 million to about RMB 1,481.5 million between December 31, 2020, and June 30, 2021[66]. - The group's total outstanding short-term and long-term bank borrowings amounted to approximately RMB 1,877.7 million as of June 30, 2021[68]. - The debt-to-asset ratio increased from 136.1% to 144.2% between December 31, 2020, and June 30, 2021, due to losses recorded during the reporting period[75]. - The company reported a net current liability of RMB 1,481.5 million and shareholder deficit of RMB 645.7 million as of June 30, 2021, raising concerns about the company's ability to continue as a going concern[114]. - The company reported a net cash outflow from investing activities of RMB 69,006 thousand, slightly improved from RMB 70,829 thousand in the prior year[130]. - The company is actively discussing loan extensions with banks to manage its financial resources effectively[133]. Governance and Compliance - The group has not experienced any significant violations of applicable laws and regulations during the reporting period[44]. - The board is committed to enhancing risk management and internal control systems, with no reported fraud cases during the period[45]. - The group continues to improve its governance practices and policies in line with the Hong Kong Stock Exchange's corporate governance code[45]. - The company has complied with the corporate governance code, except for the provision that requires the roles of chairman and CEO to be separated[93]. - The company confirmed that all directors complied with the securities trading code during the reporting period[95]. Market Outlook and Strategy - The coal industry is expected to see moderate restrictions on capacity expansion due to strict safety and environmental regulations, with a focus on high-quality production[80][82]. - The Chinese government's fiscal and monetary policies are anticipated to provide stable support for overall electricity consumption and coal demand, with the steel and construction industries expected to maintain steady growth[80]. - The average coal price is projected to remain relatively high in the second half of 2021, with potential for increased volatility due to regional supply-demand mismatches[80]. - The group aims to enhance production efficiency and smart management while focusing on high-quality capacity expansion and product structure adjustments to improve competitiveness and average selling prices[82]. - The group is open to exploring other business opportunities that could provide ideal returns for shareholders when suitable opportunities arise[83]. Employee and Operational Costs - As of June 30, 2021, the group employed 1,186 full-time employees, with total employee costs amounting to approximately RMB 162.1 million, an increase from RMB 135.3 million for the same period in 2020[77][79]. - The group's sales cost decreased by approximately 1.5% to about RMB 323.6 million, despite a 25.1% increase in labor costs to approximately RMB 105.5 million[49][50]. - Employee benefits expenses amounted to RMB 162,058 thousand, an increase of 19.7% from RMB 135,326 thousand in the same period last year[163]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2021, was RMB 105,109 thousand, a significant improvement from a cash outflow of RMB 14,088 thousand in the same period of 2020[130]. - Net cash generated from operating activities amounted to RMB 32,976 thousand, compared to a net cash outflow of RMB 86,876 thousand in the previous year[130]. - The company received government grants amounting to RMB 780 thousand, an increase from RMB 500 thousand in the previous year[130]. - The company recorded new leases amounting to RMB 72,294 thousand during the first half of 2021, compared to RMB 99,135 thousand in the same period of 2020[184]. Shareholder Information - Major shareholders include Feishang Group Limited, which holds 604,029,650 shares, representing 43.75% of the company[86]. - As of June 30, 2021, Laitan Investments Limited holds 724,029,650 shares, accounting for 52.44% of the company[86]. - The total number of share options that can be granted under the share option scheme is 138,054,580 shares, accounting for 10% of the issued shares at the time of approval[104]. - The company did not purchase, sell, or redeem any of its listed shares during the reporting period[96]. - The company did not declare or pay any dividends for the six months ended June 30, 2021, consistent with the previous year[176].

Economic Performance - In 2020, China's GDP grew by 2.3%, making it the only major economy to achieve positive growth amid the COVID-19 pandemic[18]. - China's economic activities are rapidly recovering post-pandemic, supported by targeted fiscal and monetary policies, which are expected to stabilize coal demand[25]. Coal Industry Trends - The average price of port thermal coal in 2020 was approximately RMB 571 per ton, representing a year-on-year decrease of about 2.7%[21]. - Coal prices experienced a deep V-shaped trend in the first half of 2020, with prices dropping below RMB 500 per ton for the first time since 2017[21]. - The coal industry was encouraged to limit production starting in May 2020 to restore market balance and protect coal prices[21]. - In the fourth quarter of 2020, coal prices showed a strong trend due to the winter peak season and strict import restrictions, surpassing the same period last year[21]. - The coal industry's profitability continued to decline steadily throughout 2020[21]. - The coal industry is expected to see a moderate and stable expansion in supply, with an anticipated increase in industry concentration due to mergers and acquisitions[24]. Company Financial Performance - In 2020, the company's gross profit declined due to intensified market competition and the impact of the COVID-19 pandemic, leading to fluctuations in coal market demand and prices[22]. - The company recorded a comprehensive loss attributable to owners of the parent from continuing operations of approximately RMB 345.9 million for the year ended December 31, 2020, an increase of approximately 256.4% compared to approximately RMB 97.1 million in the previous year[36]. - The company's revenue from continuing operations decreased by approximately 11.9% to RMB 1,013.1 million in 2020, down from RMB 1,149.7 million in 2019, primarily due to the impact of the COVID-19 pandemic[54]. - The company's net loss for the year increased by 357.5% to RMB 346.9 million in 2020, compared to a net loss of RMB 75.8 million in 2019[52]. - The financial asset impairment loss increased significantly by 1,098.4%, from RMB 618,000 in 2019 to RMB 7.4 million in 2020[52]. Production and Sales - The company experienced a decrease in production and sales volume, particularly in the first half of 2020, due to operational disruptions caused by the pandemic[22]. - The sales volume of self-produced anthracite coal dropped by about 23.2%, from approximately 3.66 million tons in 2019 to about 2.81 million tons in 2020, contributing to the revenue decline[54]. - The average selling price of self-produced anthracite coal increased by approximately 14.9%, from RMB 314.1 per ton in 2019 to RMB 360.8 per ton in 2020, due to overall market price increases in the second half of the year[54]. Operational Efficiency and Strategy - The company aims to become the most competitive anthracite resource enterprise in the southwestern region of China[21]. - The company plans to focus on coal quality management and product structure adjustments to enhance competitiveness and average selling prices[27]. - The company aims to expand production capacity and implement mechanization and intelligent production management to improve operational efficiency[27]. - The company reported a significant increase in operational efficiency, leading to a 15% reduction in production costs year-over-year[93]. Customer and Market Relationships - The company's largest customer accounted for approximately 37.4% of total sales in 2020, down from 44.6% in 2019, while the top five customers accounted for approximately 70.2% of total sales in 2020[41]. - The company has maintained good business relationships with its major customers, with relationships lasting between two to four years[41]. Compliance and Governance - The company emphasizes compliance with various regulations related to the coal industry, environmental protection, and safety production, ensuring adherence to applicable laws[40]. - The company has established a risk management and internal control system, which is regularly reviewed by the board to ensure its effectiveness[169]. - The company has complied with the corporate governance code throughout the year, except for one specific provision[161]. Environmental and Social Responsibility - The company invested approximately RMB 6.5 million in compliance with environmental regulations in 2020, including about RMB 0.4 million for the construction of environmental facilities[49]. - The management team emphasized the importance of corporate social responsibility initiatives, which are projected to improve community relations and brand reputation[93]. - The company has made donations of approximately RMB 0.5 million during the year[148]. Future Outlook and Plans - The long-term outlook for the coal industry remains cautiously optimistic, with potential opportunities for shareholder returns through strategic business projects[28]. - The company plans to enhance its digital marketing strategy, increasing budget allocation by H% to improve customer engagement[100]. - The company is committed to improving shareholder returns, with plans to increase dividends by J% in the upcoming fiscal year[100]. Shareholder Information - The company reported a total reserve available for distribution to shareholders of RMB 132,080,000 as of December 31, 2020, down from RMB 146,146,000 in 2019[113]. - No interim dividend was paid to shareholders for the year ended December 31, 2020, consistent with 2019[111]. - The board recommended not to declare a final dividend for the year ended December 31, 2020, also in line with 2019[112].

Financial Performance - Revenue from continuing operations decreased by approximately 28.9% to RMB 424.8 million for the six months ended June 30, 2020, compared to RMB 597.7 million for the same period in 2019[32]. - Gross profit from continuing operations fell by approximately 57.3% to RMB 96.2 million for the six months ended June 30, 2020, down from RMB 225.3 million in the prior year[32]. - The loss attributable to owners of the parent from continuing operations was approximately RMB 105.2 million for the six months ended June 30, 2020, compared to a profit of RMB 10.8 million for the same period in 2019[32]. - Revenue decreased by approximately 28.9% to about RMB 424.8 million from approximately RMB 597.7 million for the six months ended June 30, 2019, primarily due to a 30.8% decrease in self-produced anthracite coal sales volume[43]. - The loss from continuing operations for the reporting period was approximately RMB 103.8 million, compared to a profit of RMB 27.3 million for the six months ended June 30, 2019, indicating a significant increase in losses[56]. - The increase in losses was primarily due to a decrease in gross profit of approximately RMB 129.1 million, attributed to reduced sales volume and increased costs[56]. - The net loss attributable to the owners of the parent company was approximately RMB 105.2 million for the reporting period, compared to a profit of RMB 10.8 million for the same period in 2019[58]. - The operating loss for the six months was RMB 28.4 million, compared to an operating profit of RMB 99.9 million in the previous year[107]. - Total comprehensive loss for the period was RMB 105.4 million, compared to a comprehensive income of RMB 23.5 million in 2019[111]. Market Conditions - The average selling price of anthracite coal products decreased during the first half of 2020 due to the impact of COVID-19 and weak market demand[38]. - The average price of port thermal coal was RMB 536 per ton in the first half of 2020, representing a year-on-year decline of approximately 11.3%[36]. - The company experienced production and sales volume declines in the first half of 2020 due to employee quarantines in Hubei province, a COVID-19 hotspot[38]. - The COVID-19 pandemic led to a temporary decline in coal product quality due to complex geological conditions at existing mining faces[38]. - The coal industry is expected to see moderate and stable supply expansion, with an increase in coal mine concentration anticipated[76]. - In the second half of 2020, the average coal price is projected to be higher than in the first half, although the annual average price is expected to remain lower than the previous year[77]. Financial Position - As of June 30, 2020, the group's net current liabilities were approximately RMB 1,576.8 million, down from RMB 1,629.1 million as of December 31, 2019[62]. - The asset-liability ratio increased from 110.9% as of December 31, 2019, to 116.3% as of June 30, 2020, due to the losses recorded during the reporting period[71]. - The group plans to fund its cash needs through additional bank and other borrowings and/or potential equity financing[62]. - The company reported a net current liability of RMB 1,576.8 million and a shareholder deficit of RMB 300.3 million as of June 30, 2020, raising significant doubts about its ability to continue as a going concern[106]. - The company has not entered into any foreign currency contracts to hedge potential foreign exchange risks, as most business activities are conducted in RMB[68]. Operational Efficiency - The group continues to improve its risk management and internal control systems, with no significant legal or regulatory violations reported during the period[40]. - The group had cash and cash equivalents of approximately RMB 94.2 million as of June 30, 2020, with no equity financing activities during the reporting period[64]. - The company aims to improve production efficiency and safety management while maintaining environmental standards[79]. - The company plans to enhance its coal quality management and expand washing capacity to improve product competitiveness and average selling prices[124]. - The company aims to increase production to achieve economies of scale and diversify its product offerings[124]. Shareholder Information - Major shareholders include Li Feilie, who controls 739,029,650 shares, representing 53.53% of the issued shares[83]. - Li Zongyang, son of Li Feilie, holds 125,000,000 shares, accounting for 9.05% of the issued shares[84]. - As of June 30, 2020, Mr. Huang Hwa An holds 20,000,000 shares, representing 1.45% of the issued shares of the company[86]. - Mr. Tam Chok Ho holds 14,096,300 shares, accounting for 1.02% of the issued shares of the company[86]. - The company did not declare an interim dividend during the reporting period[72]. Employee and Labor Costs - Labor costs during the reporting period were approximately RMB 84.3 million, a decrease of about 16.2% from approximately RMB 100.6 million for the six months ended June 30, 2019[46]. - As of June 30, 2020, the company employed 1,236 full-time employees, with total employee costs amounting to approximately RMB 135.3 million[73]. - Total employee benefits from continuing operations for the six months ended June 30, 2020, amounted to RMB 135,326 thousand, a decrease of 5.4% from RMB 142,617 thousand in the same period of 2019[160]. Taxation and Government Grants - The company recognized a tax benefit of RMB 4.0 million for the period, compared to a tax expense of RMB 27.5 million in 2019[107]. - Current tax expense in mainland China for the six months ended June 30, 2020, was RMB 9,002 thousand, down 66.9% from RMB 27,246 thousand in the same period of 2019[165]. - The company recognized government grants of RMB 1,200 thousand for the six months ended June 30, 2020, slightly down from RMB 1,284 thousand in the previous year[154]. Discontinued Operations - The group has terminated operations at the Dogchang Coal Mine, which has been inactive since March 2013, with no significant impact on the interim consolidated income statement for the six months ended June 30, 2020[139]. - Guizhou Dayuan Coal Industry Co., Ltd. has been classified as a discontinued operation, with a loss of RMB 1,364,000 for the six months ended June 30, 2020, down from RMB 3,429,000 in 2019[144]. - The company incurred a loss attributable to equity holders from discontinued operations of RMB (1,659) thousand, reduced from RMB (3,826) thousand in the previous year[148].

Market Conditions and Challenges - In 2019, the average selling price of the company's anthracite products decreased, despite an increase in sales volume, primarily due to intensified market competition and a general decline in coal market prices[16]. - The average price of thermal coal at ports in 2019 was RMB 587 per ton, representing a year-on-year decrease of approximately 9.2%[16]. - The company faced challenges from a slowing market, intensified competition, and difficult operating conditions, prompting a strategic focus on coal quality management and capacity expansion[17]. - The coal consumption growth rate in 2019 significantly slowed down, attributed to weak demand from downstream industries, particularly the thermal power sector[14]. - The coal market's supply-demand relationship was slightly tight at the beginning of 2019 but gradually balanced out, leading to a situation of oversupply by the end of the year[16]. - The coal market is expected to face further downward pressure on prices due to a relatively loose supply compared to demand, despite strict environmental regulations and safety inspections[21]. Company Strategy and Operations - The company aims to become one of the most competitive anthracite resource enterprises in Southwest China[10]. - The company adjusted its business strategy to optimize product structure and marketing strategies while enhancing mechanization and safety management in production[17]. - The company plans to focus on coal quality management and product structure adjustment to enhance competitiveness and average selling prices[22]. - The company will continue to expand capacity, upgrade washing facilities, and enhance transportation systems to pursue economies of scale and diversify products[22]. - The company is committed to strict adherence to its business strategy amidst a challenging operating environment[17]. Financial Performance - The company recorded a comprehensive loss attributable to owners of the parent from continuing operations of approximately RMB 97.1 million for the year ended December 31, 2019, compared to a profit of approximately RMB 207.2 million in the previous year[29]. - Revenue from continuing operations decreased by approximately 6.8% from RMB 1,234.2 million in 2018 to RMB 1,149.7 million in 2019, despite a 15.5% increase in self-produced smokeless coal sales volume[52]. - The average selling price of self-produced smokeless coal dropped by approximately 19.1% from RMB 388.1 per ton in 2018 to RMB 314.1 per ton in 2019, primarily due to overall market price declines and lower coal quality[52]. - The overall gross profit from continuing operations decreased by approximately 51.7% from about RMB 656.3 million in 2018 to about RMB 317.1 million in 2019, with the gross profit margin dropping from approximately 53.2% to 27.6%[63]. - The net loss for the year was RMB 75.8 million in 2019, compared to a profit of RMB 257.9 million in 2018, representing a decline of approximately 129.4%[50]. Cost and Expenses - Sales cost from continuing operations increased by approximately 44.1% from RMB 577.9 million in 2018 to RMB 832.6 million in 2019, mainly due to a 15.5% increase in self-produced smokeless coal sales volume and rising depreciation and labor costs[54]. - Labor costs rose by approximately 48.9% from RMB 151.0 million in 2018 to RMB 224.9 million in 2019, outpacing the increase in self-produced smokeless coal sales volume[55]. - Depreciation and amortization increased by approximately 72.8% from RMB 180.2 million in 2018 to RMB 311.3 million in 2019, driven by increased production and complex geological conditions[58]. - Selling and distribution expenses rose approximately 141.4% from about RMB 48.2 million in 2018 to about RMB 116.4 million in 2019, mainly due to increased freight costs[64]. - Administrative expenses increased by approximately 11.8% from about RMB 121.0 million in 2018 to about RMB 135.3 million in 2019, primarily due to higher employee costs[65]. Shareholder and Dividend Information - The company did not pay any interim dividends for the year ended December 31, 2019, consistent with the previous year (2018: RMB 0)[115]. - The board recommended not to declare a final dividend for the year ended December 31, 2019, also matching the previous year (2018: RMB 0)[116]. - As of December 31, 2019, the company's distributable reserves amounted to RMB 146,146,000, a decrease from RMB 150,167,000 in 2018[117]. - Major shareholders include Li Feilie with a beneficial interest of 15,000,000 shares and a total of 739,029,650 shares representing 53.53% of issued shares[123]. Governance and Management - The company has established an audit committee to review and monitor its financial reporting processes and internal controls, with regular meetings held with senior management and auditors[166]. - The board consists of nine members, including six executive directors and three independent non-executive directors, ensuring a balance of power and independent oversight[172]. - The company has confirmed compliance with the corporate governance code, except for the provision regarding the separation of the roles of chairman and CEO[170]. - The company has received annual confirmations from independent non-executive directors regarding their independence from the group[175]. - The company emphasizes the importance of continuous professional development for directors to maintain their knowledge and skills[186]. Future Outlook and Strategic Initiatives - The company anticipates that coal demand will be relatively weak in the near term but will receive moderate support from stable growth in the chemical, steel, and building materials industries[21]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and financial condition[88]. - The company plans to finance its capital commitments through internal resources, additional short-term and long-term bank borrowings, and/or feasible equity financing[83]. - The company has a strategic vision for future growth, leveraging its experienced management team to navigate market challenges[95][99].

Revenue and Profitability - Revenue from continuing operations increased by approximately 41.3% to about RMB 597.7 million for the six months ended June 30, 2019, compared to approximately RMB 423.0 million for the same period in 2018[26]. - Profit attributable to owners of the parent from continuing operations decreased by approximately 77.3% to about RMB 10.8 million for the six months ended June 30, 2019, compared to approximately RMB 47.5 million for the same period in 2018[26]. - The group's revenue increased by approximately 41.3% from about RMB 423.0 million to approximately RMB 597.7 million for the six months ended June 30, 2018, primarily due to a 70.1% increase in self-produced anthracite coal sales[34]. - Profit from continuing operations decreased from approximately RMB 59.4 million to about RMB 27.3 million, attributed to increased sales and administrative expenses, as well as reduced gross profit[44]. - Total comprehensive income for the period was RMB 23,464 thousand, down 58.6% from RMB 56,577 thousand in the same period last year[92]. Costs and Expenses - Gross profit from continuing operations decreased by approximately 2.4% to about RMB 225.3 million for the six months ended June 30, 2019, down from approximately RMB 230.8 million for the same period in 2018[26]. - The group's cost of sales rose by approximately 93.8% from about RMB 192.2 million to approximately RMB 372.5 million, mainly due to the increase in self-produced anthracite coal sales volume and rising per-ton depreciation and labor costs[36]. - Labor costs increased by approximately RMB 48.7 million or about 93.8%, from RMB 51.9 million to RMB 100.6 million, due to complex geological conditions affecting mining operations[37]. - The pre-tax profit from continuing operations was impacted by a cost of sold inventory of RMB 285,040 thousand, compared to RMB 154,773 thousand in the previous year[142]. Production and Sales - Total production for the group was approximately 1.30 million tons during the reporting period[30]. - Self-produced anthracite coal sales volume rose from approximately 1.07 million tons to about 1.82 million tons, while the average selling price per ton decreased by approximately 16.9% from RMB 394.1 to RMB 327.5[34]. - Revenue from the sale of processed coal increased from approximately RMB 249.6 million (sales volume of 0.43 million tons) to about RMB 279.0 million (sales volume of 0.53 million tons), reflecting a 23.3% increase in sales volume[35]. - The average selling price of the company's anthracite products faced downward pressure due to a decrease in overall coal market prices and temporary quality issues caused by complex geological conditions[29]. Financial Position - As of June 30, 2019, the group's net current liabilities were approximately RMB 1,536.1 million, down from RMB 1,632.8 million as of December 31, 2018[50]. - The group had cash and cash equivalents of approximately RMB 78.1 million as of June 30, 2019[50]. - The total outstanding short-term and current portion of long-term bank borrowings was approximately RMB 911.3 million as of June 30, 2019[51]. - The group's debt-to-asset ratio decreased from 110.1% as of December 31, 2018, to 108.7% as of June 30, 2019, due to continuous profit generation during the reporting period[56]. - The company has a net current liability of RMB 1,536.1 million and a shareholder deficit of RMB 89.0 million as of June 30, 2019, indicating significant uncertainty regarding the company's ability to continue as a going concern[88]. Market Conditions - The overall coal supply and demand remained weak and generally balanced, with coal prices facing downward pressure[28]. - The coal market is expected to experience a decline in prices and increased competition due to the gradual release of high-quality production capacity[61]. - The company faced intensified market competition during the reporting period[29]. Corporate Governance and Compliance - The company has not experienced any significant violations of applicable laws and regulations that would materially impact its business and operations during the reporting period[31]. - The audit committee, consisting of three independent non-executive directors, reviews the financial reporting processes and risk management effectiveness[64]. - The company has complied with the corporate governance code, except for a specific provision noted in the report[75]. Shareholder Information - Major shareholders include Li Feilie with a 53.53% stake and Laitan Investments Limited with a 52.44% stake in the company[68]. - The company has not established any arrangements allowing directors to benefit from acquiring shares or bonds of the company during the review period[74]. Discontinued Operations - The group plans to close the Gouzhang Coal Mine, which has been inactive since March 2013, as part of a restructuring plan approved by local authorities[46]. - The Gouzhang Coal Mine's operations have been reclassified as discontinued operations due to the cessation of nearly all activities during the reporting period[47]. - Guizhou Dayuan Coal Industry Co., Ltd. has ceased operations, with the sale of its subsidiary Guizhou Dayuan for a total consideration of RMB 55.0 million[48]. - The group reported a loss of RMB 3.429 million from discontinued operations for Guizhou Dayuan for the six months ended June 30, 2019[134]. Accounting Policies and Standards - The accounting policies adopted for the interim financial statements are consistent with those used for the annual financial statements for the year ended December 31, 2018, except for new standards effective from January 1, 2019[104]. - The adoption of IFRS 16 has resulted in the recognition of right-of-use assets and lease liabilities, with a total amount of RMB 124.6 million reclassified from finance lease assets[111]. - The company has chosen not to recognize right-of-use assets and lease liabilities for low-value asset leases and short-term leases, opting instead to recognize lease payments as expenses on a straight-line basis[110]. Employee Information - The group employed 1,160 full-time employees as of June 30, 2019, with total employee costs amounting to approximately RMB 142.6 million during the reporting period[58]. - Employee benefits expenses totaled RMB 142,617 thousand, up 43.3% from RMB 99,488 thousand in the prior year[143]. - Total compensation for key management personnel was RMB 1,561,000, up from RMB 901,000 in the same period of 2018, reflecting a significant increase in wages and salaries[195].

Financial Performance - For the year ended December 31, 2018, the company recorded a consolidated profit from continuing operations of approximately RMB 251.3 million, representing an increase of about 13.9% year-on-year[41]. - Revenue from continuing operations increased by approximately 20.6% from RMB 1,023.0 million in 2017 to RMB 1,234.2 million in 2018[75]. - The group achieved a comprehensive profit of approximately RMB 251.3 million from continuing operations, representing an increase of about 13.9% year-on-year[46]. - Operating profit increased by 14.2% to RMB 455.4 million in 2018, compared to RMB 398.7 million in 2017[73]. - In 2018, the net profit from continuing operations was approximately RMB 251.3 million, an increase of about RMB 30.7 million compared to RMB 220.6 million in 2017, primarily due to a gross profit increase of approximately RMB 125.8 million from higher sales volume[98]. - Overall gross profit from continuing operations increased by approximately 23.7% from about RMB 530.5 million in 2017 to approximately RMB 656.3 million in 2018, with the total gross profit margin rising from approximately 51.9% to approximately 53.2%[87]. Market Conditions - The average coal price remained relatively high with narrow fluctuations, and the overall supply-demand relationship in the coal market was tight[41]. - The demand for coal is expected to steadily increase due to stable economic growth in China, with industrial production, tertiary industry, and household electricity consumption projected to rise further[42]. - The company anticipates that the coal market supply-demand relationship will remain stable in the near term, with coal prices expected to fluctuate within a reasonable range[42]. - The coal industry is facing challenges from stricter environmental regulations and safety inspections, which continue to suppress production and investment growth[39]. - The government has mandated that at least 50% of the coal produced by local coal producers must be used for power generation, significantly impacting profitability for local coal enterprises[41]. Operational Strategy - The company focused on enhancing quality and efficiency, achieving mechanization and automation in production, while strengthening operational management and marketing efforts[41]. - The company is focusing on industry mergers and acquisitions, as well as optimization and upgrading of operations in the future[42]. - The group completed several projects in 2018, including the capacity expansion of the Baiping coal mine and the mechanization and intelligent technology upgrades at six other coal mines[51][52][53][54][55][56]. - The group has focused on diversifying coal products to maintain quality customers and penetrate surrounding coal markets[46]. - The group is committed to enhancing operational safety management and marketing efforts to navigate the challenging business environment[41]. Customer Relations - The group maintained a strong market presence, with the largest customer accounting for approximately 21.6% of total sales in 2018, and the top five customers accounting for about 48.4%[58]. - The group recorded an increase in market share by securing orders from cement plants while balancing coal supply to chemical plants, steel mills, and power plants[47]. - The company maintained good business relationships with major customers, with relationships lasting between two to five years[60]. Financial Management - Employee costs totaled approximately RMB 219.5 million in 2018, up from RMB 190.2 million in 2017[62]. - Financing costs increased by 25.3% to RMB 93.2 million in 2018 from RMB 74.4 million in 2017[73]. - The average accounts payable turnover days increased to approximately 121 days in 2018 from about 64 days in 2017[61]. - The company has not experienced significant changes in its main business nature during 2018, maintaining its focus on investment holding[138]. - The company has outlined a strategic plan for market expansion, targeting new geographic regions and customer segments[126]. Governance and Compliance - The company is committed to compliance with various regulations, ensuring adherence to laws related to the coal industry, environmental protection, and safety production[57]. - The company has maintained its commitment to corporate governance and risk management practices as outlined in the annual report[139]. - The board consists of eight members, including five executive directors and three independent non-executive directors, ensuring a balance of power[194]. - The audit committee, chaired by Mr. Lu Jianzhang, is responsible for reviewing and monitoring the financial reporting process and internal controls[187]. - The company has adopted the corporate governance code as its own governance code and has complied with it throughout the year, except for a specific provision[191]. Shareholder Information - The company reported a total reserve available for distribution to shareholders of RMB 150,167,000 as of December 31, 2018, compared to RMB 148,310,000 in 2017, reflecting a year-on-year increase of 1.26%[143]. - No interim dividend was paid to shareholders for the year ended December 31, 2018, consistent with the previous year where no dividend was distributed[141]. - The board recommended not to declare a final dividend for the year ended December 31, 2018, mirroring the decision made in 2017[142]. - As of December 31, 2018, major shareholder Li Feile holds a total of 739,029,650 shares, representing 53.53% of the issued shares[150]. - The company has a stock option plan adopted on December 23, 2013, effective for 10 years, aimed at incentivizing contributions from qualified individuals[160]. Risk Management - The company faced various risks and uncertainties during the year, which are discussed in the management's analysis section of the report[139]. - The company believes that its foreign exchange risk is not significant as most of its business activities are conducted in RMB[117]. - The company has established a board of directors' liability insurance to protect directors from potential costs or liabilities arising from claims against them[180]. Future Outlook - The company is optimistic about the coal industry in the long term, as coal remains a major energy source widely used in power generation, steel manufacturing, and chemical industries[46]. - The company has set ambitious performance guidance for the upcoming fiscal year, aiming for substantial revenue growth[126]. - The company is focused on developing new products and technologies to drive future growth and improve market competitiveness[128].