[Financial Summary](index=1&type=section&id=Financial%20Summary) The financial summary presents key performance indicators and financial position for the six months ended June 30, 2025, highlighting significant declines in revenue and profit Financial Summary for the Six Months Ended June 30 (HKD Million): | Indicator | 2025 | 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 2,101 | 2,532 | -17% | | Gross Profit | 642 | 1,433 | -55% | | Gross Margin | 31% | 57% | | | Adjusted Gross Margin1 | 40% | 57% | | | Profit for the Period | 481 | 983 | -51% | | Profit Attributable to Owners | 404 | 837 | -52% | | EBITDA2 | 934 | 1,666 | -44% | | Basic Earnings Per Share (HK Cents) | 7.94 | 16.955 | -53% | Financial Summary at Period End (HKD Million): | Indicator | June 30, 2025 | December 31, 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Net Assets | 18,357 | 18,901 | -3% | | Equity Attributable to Owners Per Share (HKD) | 3.12 | 3.24 | -4% | | Current Ratio3 (times) | 3.57 | 4.25 | -16% | The Board declared an interim dividend of **6 HK cents per ordinary share** for the six months ended June 30, 2025 [Interim Results Announcement](index=2&type=section&id=Interim%20Results%20Announcement) The Board of Shougang Fushan Resources Group Limited announces the unaudited consolidated interim results for the six months ended June 30, 2025, which have been reviewed by the Audit Committee and auditors - The Board announced the unaudited consolidated interim results for the six months ended June 30, 2025[3](index=3&type=chunk) - These interim results have been reviewed by the Company's Audit Committee and auditors[3](index=3&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the company's financial performance, including revenue, profit, and other comprehensive income for the reporting period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 2,101,368 | 2,531,571 | | Cost of Sales | (1,459,744) | (1,098,751) | | **Gross Profit** | **641,624** | **1,432,820** | | Interest Income | 87,421 | 94,589 | | Other Income and Gains, Net | 54,384 | 26,855 | | Selling and Distribution Expenses | (24,050) | (57,685) | | General and Administrative Expenses | (100,203) | (96,309) | | Other Operating Expenses | (7,421) | (5,301) | | Finance Costs | (934) | (862) | | Share of Loss of an Associate | – | (235) | | **Profit Before Income Tax** | **650,821** | **1,393,872** | | Income Tax Expense | (169,927) | (411,330) | | **Profit for the Period** | **480,894** | **982,542** | Other Comprehensive Income/(Expense) for the Period (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Items that may be reclassified subsequently to profit or loss: | | | | Exchange differences on translation of overseas operations | (5,780) | (9,450) | | Items that will not be reclassified to profit or loss: | | | | Fair value gains/(losses) on financial assets at fair value through other comprehensive income | 51,522 | (113,374) | | Exchange differences on translation of overseas operations | (1,279) | (1,787) | | **Total Comprehensive Income for the Period** | **525,357** | **857,931** | Profit for the Period Attributable to (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Owners of the Company | 404,135 | 837,351 | | Non-controlling interests | 76,759 | 145,191 | | **Profit for the Period** | **480,894** | **982,542** | Total Comprehensive Income for the Period Attributable to (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Owners of the Company | 449,877 | 714,527 | | Non-controlling interests | 75,480 | 143,404 | | **Total Comprehensive Income for the Period** | **525,357** | **857,931** | Earnings Per Share (HK Cents): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Basic and Diluted | 7.94 | 16.95 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity at the end of the reporting period Condensed Consolidated Statement of Financial Position (HKD Thousand): | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | **Non-current Assets** | | | | Property, Plant and Equipment | 3,811,332 | 3,715,248 | | Land Use Rights | 72,203 | 73,168 | | Right-of-use Assets | 34,451 | 31,796 | | Mining Rights | 5,852,769 | 5,970,133 | | Goodwill | 1,179,551 | 1,179,551 | | Financial Assets at Fair Value Through Other Comprehensive Income | 490,709 | 439,187 | | Deposits, Prepayments and Other Receivables | 390,150 | 453,310 | | Deferred Income Tax Assets | 89,205 | 84,764 | | **Total Non-current Assets** | **11,920,370** | **11,947,157** | | **Current Assets** | | | | Inventories | 122,069 | 137,638 | | Trade Receivables | 462,924 | 519,815 | | Bills Receivable | 66,537 | 18,089 | | Deposits, Prepayments and Other Receivables | 217,740 | 207,695 | | Pledged and Restricted Bank Deposits | 656,798 | 937,107 | | Time Deposits with Original Maturity Over Three Months | 2,566,133 | 1,505,443 | | Cash and Cash Equivalents | 6,879,567 | 7,675,879 | | **Total Current Assets** | **10,971,768** | **11,001,666** | | **Total Assets** | **22,892,138** | **22,948,823** | Liabilities and Equity (HKD Thousand): | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Liabilities** | | | | **Current Liabilities** | | | | Trade and Bills Payables | 501,053 | 757,521 | | Lease Liabilities | 15,444 | 12,125 | | Other Payables and Accruals | 1,356,979 | 1,536,254 | | Dividends Payable | 1,069,124 | – | | Amounts Due to Non-controlling Interests of a Subsidiary | – | 60,466 | | Tax Payable | 133,600 | 224,669 | | **Total Current Liabilities** | **3,076,200** | **2,591,035** | | **Net Current Assets** | **7,895,568** | **8,410,631** | | **Total Assets Less Total Current Liabilities** | **19,815,938** | **20,357,788** | | **Non-current Liabilities** | | | | Deferred Income Tax Liabilities | 1,425,514 | 1,424,979 | | Lease Liabilities | 32,934 | 31,552 | | **Total Non-current Liabilities** | **1,458,448** | **1,456,531** | | **Net Assets** | **18,357,490** | **18,901,257** | | **Equity** | | | | **Equity Attributable to Owners of the Company** | | | | Share Capital | 15,582,467 | 15,582,467 | | Reserves | 278,360 | 897,607 | | **Total Equity Attributable to Owners of the Company** | **15,860,827** | **16,480,074** | | Non-controlling Interests | 2,496,663 | 2,421,183 | | **Total Equity** | **18,357,490** | **18,901,257** | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures supporting the condensed consolidated financial statements [General Information](index=6&type=section&id=1.%20General%20Information) The company's primary business is investment holding, with subsidiaries engaged in coking coal mining, production, and trading, with no significant operational changes except for new trading activities - The Company's principal business is investment holding, with its subsidiaries primarily engaged in coking coal mining, production and sales of coking coal products, and trading of coal products[9](index=9&type=chunk) - For the six months ended June 30, 2025, there were no significant changes in the Group's operations, except for the commencement of trading business during the period[9](index=9&type=chunk) [Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) Interim financial information is prepared under HKAS 34 and Listing Rules, requiring management judgments and estimates, and should be read with annual financial statements - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - This information does not include all the notes of the type normally included in annual financial statements and should be read in conjunction with the annual financial statements for the year ended December 31, 2024, which have been prepared in accordance with Hong Kong Financial Reporting Standards[10](index=10&type=chunk) [Significant Accounting Policies](index=7&type=section&id=3.%20Significant%20Accounting%20Policies) Interim financial information adopts prior year's accounting policies, incorporating only HKFRS amendments effective January 1, 2025, with HKAS 21 amendments having no significant impact - The interim financial information has been prepared in accordance with the accounting policies adopted in the last financial statements for the year ended December 31, 2024, except for the adoption of the following amendments to Hong Kong Financial Reporting Standards that are applicable to the Group's financial year beginning on January 1, 2025[12](index=12&type=chunk) - The amendments to HKAS 21 "Lack of Exchangeability" have no impact on the Group's accounting policies and are not expected to have a significant impact on the current or future periods[12](index=12&type=chunk) [Impact of Standards and Interpretations Issued But Not Yet Adopted by the Group](index=7&type=section&id=Impact%20of%20Standards%20and%20Interpretations%20Issued%20But%20Not%20Yet%20Adopted%20by%20the%20Group) Several new standards and amendments have been issued but are not yet effective, with the Group currently assessing their potential impact on financial performance and position - A number of new standards and amendments to standards have been issued but are not yet effective for the financial year beginning on January 1, 2025, including classification and measurement of financial instruments, presentation of financial statements, and disclosures[13](index=13&type=chunk) - The Group has commenced but not yet completed its assessment of the impact of the new standards and amendments to standards on its operating results and financial position, and is not yet able to state whether they will have a significant impact[13](index=13&type=chunk) [Revenue from Contracts with Customers and Segment Information](index=8&type=section&id=4.%20Revenue%20from%20Contracts%20with%20Customers%20and%20Segment%20Information) The Group's revenue primarily stems from coal product sales, including self-produced coking coal, by-products, and new coal trading, with no segment information presented due to a single operating segment - Revenue from contracts with customers represents the Group's turnover, which refers to the sales value of coal products sold in the ordinary course of business recognized at a point in time[14](index=14&type=chunk) Revenue from Contracts with Customers (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Sales of self-produced clean coking coal | 1,579,279 | 2,497,844 | | Sales of self-produced by-products | 27,506 | 33,727 | | Trading of coal products | 494,583 | – | | **Total** | **2,101,368** | **2,531,571** | - The executive directors consider the Group's business as a single operating segment (coking coal mining and trading of coal products), and therefore no segment information is presented[14](index=14&type=chunk)[15](index=15&type=chunk) [Other Income and Gains, Net](index=9&type=section&id=5.%20Other%20Income%20and%20Gains%2C%20Net) Other income and gains, net, significantly increased by **100%** year-on-year, primarily driven by a **HKD 31 million** net foreign exchange gain Other Income and Gains, Net (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Dividend income | 21,510 | 21,510 | | Net foreign exchange gains/(losses) | 31,399 | (1) | | Others | 1,475 | 5,346 | | **Total** | **54,384** | **26,855** | - Net foreign exchange gains of **HKD 31,399 thousand** from a loss in the same period last year were the main reason for the significant increase in other income and gains[16](index=16&type=chunk) [Other Operating Expenses](index=9&type=section&id=6.%20Other%20Operating%20Expenses) Other operating expenses increased by **40%** year-on-year, mainly due to an increase in the 'other' category of expenses Other Operating Expenses (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Charitable donations | – | 1,106 | | Loss on disposal of property, plant and equipment | – | 1 | | Others | 7,421 | 4,194 | | **Total** | **7,421** | **5,301** | [Finance Costs](index=9&type=section&id=7.%20Finance%20Costs) Finance costs primarily consist of interest expenses on lease liabilities, remaining stable at approximately **HKD 0.9 million** for both periods Finance Costs (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest expense on lease liabilities | 934 | 862 | [Profit Before Income Tax](index=10&type=section&id=8.%20Profit%20Before%20Income%20Tax) Profit before income tax is stated after deducting cost of inventories sold, various amortizations (land use rights, deferred expenses, mining rights), depreciation (PPE, right-of-use assets), and staff costs Profit Before Income Tax Deducted Items (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 1,459,744 | 1,098,751 | | Amortisation: Land use rights | 1,099 | 1,051 | | Amortisation: Deferred expenses | 1,109 | 707 | | Amortisation: Mining rights | 119,390 | 103,674 | | Depreciation: Property, plant and equipment | 158,999 | 163,505 | | Depreciation: Right-of-use assets | 2,002 | 2,164 | | Staff costs (including directors' emoluments) | 355,729 | 390,945 | [Income Tax Expense](index=10&type=section&id=9.%20Income%20Tax%20Expense) Income tax expense significantly decreased year-on-year due to lower profit and reduced dividend withholding tax provisions, with China's corporate income tax rate at **25%** and a **5%** dividend withholding tax Income Tax Expense (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax – China income tax | 173,901 | 332,438 | | Deferred tax | (3,974) | 78,892 | | **Total** | **169,927** | **411,330** | - Income tax expense decreased due to lower profit and reduced dividend withholding tax[56](index=56&type=chunk) - The corporate income tax rate for the Group's principal operating subsidiaries established in China is **25%**, and they are subject to a **5%** withholding tax on profit distributions; no Hong Kong profits tax provision was made as there was no assessable profit in Hong Kong[19](index=19&type=chunk) [Dividends](index=11&type=section&id=10.%20Dividends) The Board declared a **6 HK cents** interim dividend per ordinary share for 2025, a decrease from **9 HK cents** in 2024, with the 2024 final dividend paid in July 2025 Interim Dividends (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interim dividend per ordinary share | 6 HK Cents | 9 HK Cents | | Total interim dividend | 305,464 | 443,415 | Dividends Approved for Prior Financial Years During the Interim Period (HKD Thousand): | Item | 2025 | 2024 | | :--- | :--- | :--- | | 2024 final dividend of 21 HK cents per ordinary share | 1,069,124 | – | | 2023 final dividend of 18 HK cents per ordinary share | – | 886,831 | - The final dividend of **HKD 1,069,124,000** for the year ended December 31, 2024, was paid on July 24, 2025[22](index=22&type=chunk) [Earnings Per Share](index=12&type=section&id=11.%20Earnings%20Per%20Share) Basic and diluted earnings per share significantly decreased to **7.94 HK cents** from **16.95 HK cents** last year, with no dilutive potential ordinary shares Earnings Per Share Calculation Data: | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share (HKD Thousand) | 404,135 | 837,351 | | Weighted average number of ordinary shares for calculating basic and diluted earnings per share (Thousand Shares) | 5,091,065 | 4,940,819 | | **Basic and Diluted Earnings Per Share (HK Cents)** | **7.94** | **16.95** | - As there were no potential dilutive ordinary shares for the periods ended June 30, 2025, and June 30, 2024, the diluted earnings per share for these periods were the same as the basic earnings per share[24](index=24&type=chunk) [Financial Assets at Fair Value Through Other Comprehensive Income](index=12&type=section&id=12.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) Total financial assets at fair value through other comprehensive income increased to **HKD 490,709 thousand**, primarily due to increased fair value of Hong Kong-listed equity securities Financial Assets at Fair Value Through Other Comprehensive Income (HKD Thousand): | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Equity securities, at fair value – listed in Australia | 226,136 | 232,691 | | Equity securities, at fair value – listed in Hong Kong | 264,573 | 206,496 | | **Total** | **490,709** | **439,187** | - The significant increase in the fair value of Hong Kong-listed equity securities drove the rise in total financial assets[25](index=25&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=13.%20Trade%20and%20Bills%20Receivables) Net trade receivables and total bills receivables slightly decreased, with trade receivables having 30-90 day credit terms and bills due within one year, all denominated in RMB Trade and Bills Receivables (HKD Thousand): | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 645,784 | 702,675 | | Less: Provision for impairment losses | (182,860) | (182,860) | | Net trade receivables | 462,924 | 519,815 | | Bills receivable | 66,537 | 18,089 | | **Total** | **529,461** | **537,904** | - The credit period for trade receivables generally ranges from **30 to 90 days**, bills receivable are due within one year, and all trade and bills receivables are denominated in RMB[26](index=26&type=chunk) Ageing Analysis of Net Trade Receivables (HKD Thousand): | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 90 days or less | 388,945 | 246,421 | | 91 to 180 days | 73,979 | 241,417 | | 181 to 365 days | – | 31,977 | | **Total** | **462,924** | **519,815** | [Trade and Bills Payables](index=15&type=section&id=14.%20Trade%20and%20Bills%20Payables) Total trade and bills payables decreased, mainly due to a significant drop in bills payable, with credit terms ranging from 30 to 180 days and all bills due within six months Trade and Bills Payables (HKD Thousand): | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 305,160 | 282,263 | | Bills payable | 195,893 | 475,258 | | **Total** | **501,053** | **757,521** | - The Group is granted credit periods ranging from **30 to 180 days** by its suppliers; all trade and bills payables are denominated in RMB, and all bills payable have an ageing within six months[30](index=30&type=chunk) - As of June 30, 2025, bills payable of **HKD 168,137 thousand** were secured by pledged bank deposits, and the remaining **HKD 27,756 thousand** were secured by bills receivable[30](index=30&type=chunk) [Share Capital](index=16&type=section&id=15.%20Share%20Capital) As of June 30, 2025, issued and fully paid share capital remained at **HKD 15,582,467 thousand** with **5,091,065 thousand** shares, following a September 2024 rights issue that raised **HKD 425,508 thousand** net Share Capital (HKD Thousand): | Item | Number of Shares (Thousand Shares) | Amount (HKD Thousand) | | :--- | :--- | :--- | | As at January 1, 2024 (audited) | 4,926,837 | 15,156,959 | | Less: Shares issued under rights issue | 164,228 | 425,508 | | As at December 31, 2024 (audited) | 5,091,065 | 15,582,467 | | As at June 30, 2025 (unaudited) | 5,091,065 | 15,582,467 | - On November 13, 2024, the rights issue was completed, and **164,227,928** rights shares were issued, raising net proceeds of approximately **HKD 425,508,000**[32](index=32&type=chunk) [Capital Commitments](index=16&type=section&id=16.%20Capital%20Commitments) As of June 30, 2025, total contracted capital commitments amounted to **HKD 212,768 thousand**, primarily for property, plant, and equipment acquisition and mining project exploration and design Capital Commitments (HKD Thousand): | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted for: | | | | – Acquisition of property, plant and equipment | 204,836 | 213,675 | | – Exploration and design fees for potential mining projects | 7,932 | 7,932 | | **Total** | **212,768** | **221,607** | [Statement Required by Section 436(3) of the Hong Kong Companies Ordinance (Chapter 622) Regarding Publication of Non-Statutory Accounts for the Comparative Financial Year Contained in this Interim Financial Information](index=17&type=section&id=17.%20Statement%20Required%20by%20Section%20436(3)%20of%20the%20Hong%20Kong%20Companies%20Ordinance%20(Chapter%20622)%20Regarding%20Publication%20of%20Non-Statutory%20Accounts%20for%20the%20Comparative%20Financial%20Year%20Contained%20in%20this%20Interim%20Financial%20Information) The 2024 comparative financial information in this interim report is derived from the statutory annual consolidated financial statements, filed with the Companies Registry, and received an unqualified auditor's report - The financial information for the year ended December 31, 2024, contained in this interim financial information as comparative figures, does not constitute the Company's statutory annual consolidated financial statements for that year but is extracted from those financial statements[34](index=34&type=chunk) - The Company's auditors have issued a report on those financial statements, and that auditor's report was unqualified[34](index=34&type=chunk) [Comparative Figures](index=17&type=section&id=18.%20Comparative%20Figures) Certain comparative figures have been reclassified to conform with the current period's presentation - Certain comparative figures have been reclassified to conform with the current period's presentation[35](index=35&type=chunk) [Declaration of Interim Dividend](index=18&type=section&id=Declaration%20of%20Interim%20Dividend) The Board declared an interim dividend of **6 HK cents per ordinary share** for the six months ended June 30, 2025, a decrease from the prior year, payable on November 6, 2025 - The Board declared an interim dividend of **6 HK cents per ordinary share** for the six months ended June 30, 2025 (2024 interim dividend: **9 HK cents per ordinary share**)[36](index=36&type=chunk) - The interim dividend is expected to be paid on Thursday, November 6, 2025[36](index=36&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational and financial performance, key trends, and future outlook [Business Review](index=18&type=section&id=Business%20Review) The Group saw increased raw and clean coking coal production and sales, and initiated coal trading, but average clean coking coal selling prices sharply declined by **45%** due to market oversupply and coal quality changes Summary of Key Operating Data (for the six months ended June 30): | Item | Unit | 2025 | 2024 | Quantity/Amount Change | Percentage Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Production:** | | | | | | | Raw coking coal | Million Tonnes | 2.64 | 2.25 | +0.39 | +17% | | Clean coking coal | Million Tonnes | 1.54 | 1.29 | +0.25 | +19% | | **Sales:** | | | | | | | Clean coking coal | Million Tonnes | 1.55 | 1.34 | +0.21 | +16% | | **Average Realized Selling Price (incl. VAT):** | | | | | | | Clean coking coal | RMB per Tonne | 1,067 | 1,938 | -871 | -45% | | **Trading Volume:** | | | | | | | Coal products | Million Tonnes | 0.57 | – | +0.57 | +100% | - The resumption of normal production at Xingwu Coal Mine in mid-July 2024 led to an increase in both raw coking coal and clean coking coal production, with a corresponding increase in clean coking coal sales[39](index=39&type=chunk) - The Group commenced coal trading business, with a trading volume of approximately **0.57 million tonnes**, which helped expand the Group's revenue streams[39](index=39&type=chunk) - The coking coal market remained weak, with average market prices falling sharply by **41%** year-on-year, coupled with changes in coal quality, resulting in a **45%** year-on-year drop in the average realized selling price of clean coking coal to **RMB 1,067 per tonne**[40](index=40&type=chunk)[41](index=41&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) The Group experienced significant declines in revenue and net profit, primarily due to falling clean coking coal prices, despite increased sales and new trading activities; reduced expenses and foreign exchange gains partially offset the profit decrease - Operating revenue was approximately **HKD 2.101 billion**, a decrease of approximately **HKD 431 million** or **17%** compared to the same period last year, mainly due to a **45%** year-on-year sharp decline in the average realized selling price of clean coking coal[42](index=42&type=chunk) - Net profit was approximately **HKD 481 million**, a significant year-on-year decrease of **51%**; profit attributable to owners was approximately **HKD 404 million**, a significant year-on-year decrease of **52%**, primarily due to a **55%** year-on-year decrease in gross profit[43](index=43&type=chunk) - The gross margin was **31%** (**40%** after excluding the impact of coal trading business), compared to **57%** in the same period last year, mainly due to a **45%** year-on-year sharp decline in the average realized selling price of clean coking coal[42](index=42&type=chunk) - Basic earnings per share were **7.94 HK cents**, compared to **16.95 HK cents** in the first half of last year[44](index=44&type=chunk) - Cost of sales was approximately **HKD 1.460 billion**, an increase of approximately **HKD 361 million** or **33%** year-on-year, mainly from the cost of the newly commenced coal trading business of approximately **HKD 493 million**; excluding this impact, cost of sales decreased by approximately **HKD 132 million** or **12%** year-on-year[45](index=45&type=chunk) Raw Coking Coal Production Cost Per Tonne (HKD/Tonne): | Item | 2025 | 2024 | Change Amount | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Raw coking coal production cost | 328 | 453 | -125 | -28% | | Less: Depreciation and amortisation | (87) | (96) | -9 | -9% | | Cash raw coking coal production cost | 241 | 357 | -116 | -32% | | Less: Uncontrollable costs | (56) | (90) | -34 | -38% | | **Total** | **185** | **267** | **-82** | **-31%** | - The raw coking coal production cost per tonne decreased by **28%** year-on-year, mainly due to increased raw coking coal production, reduced resource tax and surcharges, decreased material consumption, partially reduced labor cost efficiency, and improved cost efficiency[47](index=47&type=chunk) - Interest income was approximately **HKD 87 million**, a year-on-year decrease of approximately **HKD 8 million** or **8%**, mainly due to a decline in market deposit interest rates[50](index=50&type=chunk) - Other income and gains, net, were approximately **HKD 54 million**, a significant year-on-year increase of approximately **HKD 27 million** or **100%**, mainly due to recording net foreign exchange gains of approximately **HKD 31 million**[51](index=51&type=chunk) - Selling and distribution expenses were approximately **HKD 24 million**, a significant year-on-year decrease of approximately **HKD 34 million** or **59%**, mainly due to a decrease in the proportion of rail and sea transportation sales, coupled with effective cost control measures[52](index=52&type=chunk) - General and administrative expenses were approximately **HKD 100 million**, a slight year-on-year increase of approximately **HKD 4 million** or **4%**[53](index=53&type=chunk) - Income tax expense was approximately **HKD 170 million**, a year-on-year decrease, mainly due to lower profit and reduced dividend withholding tax[56](index=56&type=chunk) [Significant Investments and Acquisitions](index=25&type=section&id=Significant%20Investments%20and%20Acquisitions) The Group did not undertake any significant investments or acquisitions during the review period - The Group did not undertake any significant investments or acquisitions during the six months ended June 30, 2025[58](index=58&type=chunk) [Significant Disposals](index=25&type=section&id=Significant%20Disposals) The Group did not undertake any significant disposals during the review period - The Group did not undertake any significant disposals during the six months ended June 30, 2025[59](index=59&type=chunk) [Safety Production and Environmental Protection](index=25&type=section&id=Safety%20Production%20and%20Environmental%20Protection) The Group prioritizes safety and environmental protection, adhering to regulations and achieving high safety standardization ratings; despite a temporary production halt at Xingwu Coal Mine due to an accident, operations have resumed with no significant annual economic impact expected - The Group has always attached great importance to production safety and environmental protection, strictly complying with relevant environmental laws and regulations, promoting safety standard management, and strengthening environmental protection measures[60](index=60&type=chunk) - Jinjiazhuang Coal Mine and Zhaiyaodi Coal Mine obtained Level 1 safety production standardization ratings from the National Mine Safety Administration, while Xingwu Coal Mine obtained a Level 2 safety production standardization rating from the Shanxi Provincial Emergency Management Department[60](index=60&type=chunk) - An accident occurred at Xingwu Coal Mine in mid-July 2025, resulting in one fatality and a production halt for inspection, but normal production resumed in early August, and no significant economic loss is expected for the Group in 2025[62](index=62&type=chunk) [Pledge of Assets](index=26&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, approximately **HKD 175 million** in bank deposits and **HKD 34 million** in bills receivable were pledged as collateral for **HKD 196 million** in bills financing - As of June 30, 2025, approximately **HKD 175 million** in bank deposits and approximately **HKD 34 million** in bills receivable were pledged as collateral for bills financing[63](index=63&type=chunk) - The bills financing utilized as of June 30, 2025, was approximately **HKD 196 million**[63](index=63&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no guarantees issued and no significant contingent liabilities - As of June 30, 2025, the Group had not issued any guarantees, and there were no significant contingent liabilities[64](index=64&type=chunk) [Gearing Ratio](index=26&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group had no borrowings, resulting in a **0%** gearing ratio - As of June 30, 2025, the Group had no borrowings, therefore the Group's gearing ratio was **0%** (December 31, 2024: **0%**)[65](index=65&type=chunk) [Exchange Rate Fluctuation Risk](index=26&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group primarily faces exchange rate risk from RMB and AUD denominated assets and liabilities; despite a **6.3%** AUD appreciation, the impact on financial position and performance is not significant due to the small proportion of AUD assets - As of June 30, 2025, the Group had no other significant exchange rate fluctuation risks apart from assets and liabilities denominated in RMB and AUD[66](index=66&type=chunk) - The AUD exchange rate appreciated by approximately **6.3%** compared to December 31, 2024, but the total book value of AUD-denominated assets only accounted for approximately **1%** of the Group's net assets, thus having no significant impact on the financial position and performance[66](index=66&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a robust financial position with a current ratio of approximately **3.57 times**; total cash and bank deposits are **HKD 10.102 billion**, with **HKD 9.475 billion** in available free funds after accounting for pledged and restricted deposits - As of June 30, 2025, the Group's current ratio was approximately **3.57 times**, and the Group continued to maintain a sound net cash balance[67](index=67&type=chunk) - The Group's total cash and bank deposits amounted to approximately **HKD 10.102 billion**, of which approximately **HKD 175 million** in bank deposits were pledged as collateral for bills financing of approximately **HKD 168 million**, and approximately **HKD 482 million** were restricted bank deposits for land reclamation and mine environmental rehabilitation funds[67](index=67&type=chunk) - Including available bills receivable of approximately **HKD 30 million**, the Group's available free funds as of June 30, 2025, amounted to approximately **HKD 9.475 billion**[67](index=67&type=chunk) [Capital Structure](index=27&type=section&id=Capital%20Structure) The Group's capital structure comprises total equity and borrowings; as of June 30, 2025, share capital was approximately **HKD 15.582 billion** with **5.091 billion** shares, unchanged during the period, and no borrowings - As of June 30, 2025, the Company's share capital was approximately **HKD 15.582 billion**, with approximately **5.091 billion** shares; there was no change in the number and amount of shares issued during the review period[68](index=68&type=chunk) - As of June 30, 2025, the Group had no borrowings[68](index=68&type=chunk) [Employees](index=27&type=section&id=Employees) As of June 30, 2025, the Group employed **4,154** staff in mainland China and Hong Kong, offering mandatory and voluntary provident fund schemes, defined contribution retirement plans, and training, with no share options granted or exercised during the period - As of June 30, 2025, the Group employed **4,154** employees in mainland China and Hong Kong[69](index=69&type=chunk) - The Group provides mandatory and voluntary provident fund schemes for its Hong Kong employees and defined contribution retirement plans managed by local governments for its mainland China employees, as well as training courses[69](index=69&type=chunk) - No share options were granted or exercised during the review period, and as of June 30, 2025, no share options were outstanding[69](index=69&type=chunk) [Change of Auditors](index=28&type=section&id=Change%20of%20Auditors) The Board resolved to appoint Shinewing (HK) CPA Limited as auditors for 2025, replacing PricewaterhouseCoopers, a resolution approved at the Annual General Meeting - On March 27, 2025, the Board resolved to propose the appointment of Shinewing (HK) CPA Limited as the Company's auditors for 2025, to replace PricewaterhouseCoopers[70](index=70&type=chunk) - This resolution was approved at the Annual General Meeting held on June 30, 2025[70](index=70&type=chunk) [Future Outlook](index=28&type=section&id=Future%20Outlook) For the second half, global economic uncertainty persists, but China's economy shows resilience with infrastructure, manufacturing, and exports supporting steel demand; coking coal market sentiment is improving with price rebounds, driven by supply constraints, boosted confidence, and strong demand, while the company focuses on safe, efficient production, intelligent upgrades, and lean management - In the first half of 2025, the global economic landscape continued to undergo profound changes, with no significant easing of geopolitical risks, but the Chinese economy maintained a "stable yet slowing" trend, with GDP growing by approximately **5.3%** year-on-year[71](index=71&type=chunk) - Downstream demand for steel continued to diverge, with infrastructure, manufacturing, and exports providing effective support for the steel industry, and the real estate market is expected to gradually improve with continuous central government support policies[72](index=72&type=chunk) - Entering the second half of 2025, coking coal market sentiment has warmed up, with futures prices rebounding since June and spot prices following suit, with the market price of major clean coking coal products increasing by over **30%** at the railcar level[74](index=74&type=chunk) - The Company will continue to implement its policy of safe and efficient production, continuously strengthen employee safety training and technical skill enhancement, promote intelligent upgrades, and reinforce lean management to achieve industrial upgrading[75](index=75&type=chunk) [Review by Audit Committee](index=30&type=section&id=Review%20by%20Audit%20Committee) The Company's Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2025, with independent auditors Shinewing also completing their review - The Company's Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2025[76](index=76&type=chunk) - The Company's independent auditors, Shinewing, have reviewed the unaudited interim financial information for the period in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[76](index=76&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on The Stock Exchange of Hong Kong Limited or any other securities exchange[77](index=77&type=chunk) [Compliance with Corporate Governance Code](index=30&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with all Corporate Governance Code provisions in Appendix C1 Part 2 of the Listing Rules, except for a temporary deviation from C.2.1 regarding the separation of Chairman and CEO roles, with the Managing Director serving as acting Chairman in the Company's best interest - During the six months ended June 30, 2025, the Company complied with all code provisions of the Corporate Governance Code set out in Part 2 of Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange, save for a temporary deviation from code provision C.2.1[78](index=78&type=chunk) - The Company has not established the position of chief executive officer, and these responsibilities are performed by the Managing Director; under a temporary arrangement, Mr. Fan Wenli, the Company's Managing Director, also serves as the acting Chairman of the Board, which the Board believes is in the best interests of the Company[78](index=78&type=chunk) [Compliance with the Model Code](index=31&type=section&id=Compliance%20with%20the%20Model%20Code) The Company adopted the Model Code in Appendix C3 of the Listing Rules for directors' securities transactions, with all directors complying during the review period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[79](index=79&type=chunk) - Following specific enquiries made to all the Company's directors, all the Company's directors have complied with the standards set out in the Model Code and the Company's code of conduct regarding directors' securities transactions during the six months ended June 30, 2025[79](index=79&type=chunk) [Publication of Results Announcement and Interim Report](index=31&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This announcement is published on the HKEX and company websites, with the full 2025 interim report to be dispatched to shareholders opting for printed copies and an electronic version available online - This announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.shougang-resources.com.hk)[80](index=80&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders of the Company who have elected to receive printed copies of corporate communications at the appropriate time, and an electronic version of the interim report will also be posted on the aforementioned websites for review[80](index=80&type=chunk) [Acknowledgement](index=31&type=section&id=Acknowledgement) The Board extends sincere gratitude to customers, suppliers, and shareholders for their continuous support, and expresses deep appreciation for the management and staff's diligent efforts during the period - On behalf of the Board, I would like to express my sincere gratitude to all customers, suppliers, and shareholders for their continuous support to the Group[81](index=81&type=chunk) - I also express my deep appreciation and commendation for the tireless efforts and concerted efforts of the Group's management and staff during the period[81](index=81&type=chunk) [By Order of the Board](index=31&type=section&id=By%20Order%20of%20the%20Board) The announcement is issued by Mr. Fan Wenli, Acting Chairman and Managing Director, on behalf of the Board, with a list of Board members provided - The announcement is issued by Mr. Fan Wenli, Acting Chairman and Managing Director, on behalf of the Board of Shougang Fushan Resources Group Limited[82](index=82&type=chunk) - As of the date of this announcement, the Board comprises Mr. Fan Wenli (Acting Chairman and Managing Director), Mr. Chen Zhaoqiang (Deputy Managing Director), Mr. Wang Dongming (Deputy Managing Director), Ms. Chang Cun (Non-executive Director), Mr. Xu Qian (Non-executive Director), Mr. Shi Yubao (Independent Non-executive Director), Mr. Cai Weixian (Independent Non-executive Director), Mr. Chen Jianxiong (Independent Non-executive Director) and Mr. Li Zeping (Independent Non-executive Director)[83](index=83&type=chunk)

首 鋼 福 山 資 源 集 團 有 限 公 司 SHOUGANG FUSHAN RESOURCES GROUP LIMITED （於香港註冊成立之有限公司） （股份代號：639） 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的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對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的任何損失承擔任何責任。 董事會召開日期 首鋼福山資源集團有限公司（「本公司」）董事會（「董事會」）宣佈，本公司將於二 零二五年八月二十八日（星期四）舉行董事會會議，藉以（其中包括）批准本公司及其 附屬公司截至二零二五年六月三十日止六個月的中期業績，以及（如適當）考慮派發中 期股息。 香港，二零二五年八月十八日 於本公告日期，董事會由范文利先生（代理主席兼董事總經理）、陳兆強先生（副董事 總經理）、王冬明先生（副董事總經理）、常存女士（非執行董事）、徐倩先生（非執 行董事）、時玉寶先生（獨立非執行董事）、蔡偉賢先生（獨立非執行董事）、陳建雄 先生（獨立非執行董事）及李澤平先生（獨立非執行董事）組成。 承董事會命 首鋼福山資源集團有限公司 代理主席兼董事 ...

Group 1 - The core viewpoint of the news is the performance of the China Securities Hong Kong 300 Energy Index, which has shown significant growth over various time frames, indicating a positive trend in the energy sector [1][3] - The China Securities Hong Kong 300 Energy Index has increased by 7.72% in the past month, 16.91% in the past three months, and 5.04% year-to-date [1] - The index is composed entirely of securities listed on the Hong Kong Stock Exchange, with a base date of December 31, 2004, set at 1000.0 points [1] Group 2 - The composition of the China Securities Hong Kong 300 Energy Index includes 41.24% in fuel refining, 32.35% in integrated oil and gas companies, 24.10% in coal, 1.57% in oilfield services, and 0.74% in coke [1] - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2] - Adjustments to the index samples occur in response to special events affecting sample companies, such as mergers or changes in industry classification [2]

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的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對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的任何損失承擔任何責任。 首 鋼 福 山 資 源 集 團 有 限 公 司 SHOUGANG FUSHAN RESOURCES GROUP LIMITED 代理主席兼董事總經理 （於香港註冊成立之有限公司） （股份代號：639） 盈利預警 截至二零二五年六月三十日止六個月 本公告由首鋼福山資源集團有限公司（「本公司」，連同其附屬公司，「本集團」）根據 香港聯合交易所有限公司證券上市規則第13.09(2)(a)條及香港法例第571章證券及期貨條例 第XIVA部之內幕消息條文（定義見上市規則）作出。 本公司董事會（「董事會」）謹此知會本公司股東( 「股東」)及潛在投資者，根據本集團 截至二零二五年六月三十日止六個月（「本期間」）之未經審核綜合管理帳目及董事會現 時可得資料後所進行的初步評估，本集團於本期間預計將錄得本公司擁有人應佔綜合溢利 約在4.0億港元至4.2億港元之範圍內，對比截至二零二四年六月三十日止六個月約8.37億 港元， ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 首鋼福山資源集團有限公司 | | | 呈交日期: | 2025年8月1日 | | | I. 法定/註冊股本變動 不適用 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00639 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 5,091,065,770 | | 0 | | 5,091,065,770 | | 增加 / 減少 (-) | | | 0 ...

Financial Performance - For the year ended December 31, 2024, the revenue decreased by 14% to HK$5,057 million compared to HK$5,891 million in 2023[20] - Gross profit for the same period fell by 25% to HK$2,588 million, with a gross profit margin of 51%, down from 59% in 2023[20] - Profit attributable to owners of the Company decreased by 21% to HK$1,494 million, compared to HK$1,889 million in 2023[20] - EBITDA for 2024 was HK$3,088 million, reflecting a 21% decline from HK$3,924 million in 2023[20] - The Group's net profit for 2024 was HK$1.81 billion, with net profit attributable to shareholders amounting to HK$1.49 billion, a decrease of 21% from the previous year[57] - Basic earnings per share decreased to HK30.12 cents, down approximately 20% YoY, consistent with the decrease in profit attributable to the owners[86] - The Group's net profit for the year was approximately HK$1,815 million, a decrease of approximately 21% YoY, primarily due to a drop in gross profit by approximately HK$878 million or 25% YoY[81] Assets and Liquidity - The total assets as of December 31, 2024, increased by 2% to HK$22,949 million from HK$22,492 million in 2023[22] - Cash and cash equivalents rose by 16% to HK$9,181 million, up from HK$7,945 million in 2023[22] - The current ratio improved by 7% to 4.25 times in 2024, compared to 3.97 times in 2023[22] - The Group maintained a healthy financial position with free bank balances and cash of approximately HK$9,181 million as of 31 December 2024, an increase from HK$7,945 million in the previous year[88] - The Group's current ratio was approximately 4.25 times, with cash and bank deposits totaling approximately HK$10.118 billion as of December 31, 2024[138] - The Group's free cash resources increased by 15% to approximately HK$9.196 billion as of December 31, 2024, compared to approximately HK$8.032 billion as of December 31, 2023[139] Production and Sales - For the year ended December 31, 2024, the Group produced approximately 4.96 million tonnes of raw coking coal, a year-on-year decrease of 6% from 5.25 million tonnes in 2023[70] - The production of clean coking coal was approximately 3.16 million tonnes, representing a year-on-year decrease of 3% from 3.25 million tonnes in 2023[70] - The sales volume of clean coking coal increased by 1% year-on-year, with both 2024 and 2023 fiscal years accounting for 100% of the Group's revenue[74] - The average selling price of clean coking coal decreased by 14% to RMB1,666 per tonne[57] - The average realized selling price of clean coking coal decreased by 14% year-on-year to RMB 1,666 per tonne, down from RMB 1,932 per tonne in 2023[75] - The sales volume of low-sulfur clean coking coal dropped significantly by 95% year-on-year, while medium-high sulfur clean coking coal accounted for 99% of total clean coking coal sales volume[75] Market Conditions - The coking coal market faced weak demand and loose supply conditions in FY 2024, leading to a decline in coal prices to the lowest levels in four years, negatively impacting financial performance[168] - Coking coal prices showed a volatile downward trend, particularly in the latter half of the year, due to sluggish steel demand and low inventory strategies adopted by steel companies[183] - The steel industry achieved a 22.7% year-on-year export growth, helping to mitigate domestic demand shortfalls[182] - China's crude steel output in 2024 was 1.005 billion tonnes, a 1.7% year-on-year decline, while pig iron production fell to 852 million tonnes, down 2.3%[53] - The average selling price of clean coking coal was RMB 1,666 per tonne, down 14% from RMB 1,932 per tonne in the previous year[78] Strategic Initiatives - The Group aims to enhance production management and cost control while increasing production capacity and resources through acquisitions to improve profitability[177] - The Group plans to accelerate the construction of intelligent coal mines and explore innovative applications of AI technology in coal production and operations[64] - The Group aims to deepen strategic initiatives, including technological upgrades, digital management, and smart mine construction to improve production and safety standards[189] - The company plans to shift its production focus from hard coking coal to semi-hard coking coal starting in 2024[37] Dividends and Shareholder Returns - The proposed final dividend per share for 2024 is HK$21.0 cents, an increase of 7% from HK$18.0 cents in 2023[20] - The Group paid total cash dividends of approximately HK$1,396 million during the year, down from approximately HK$2,031 million in the previous year[88] - The Group has proposed a final dividend of 21 Hong Kong cents per ordinary share for 2024, reflecting its commitment to providing stable returns to shareholders[66] Economic Environment - The Chinese economy achieved a GDP growth target of 5.0% in 2024, supported by proactive fiscal and monetary policies[50] - The global economic environment remains challenging, with rising protectionism and tariff barriers likely to depress overall demand in the steel industry[184] - The Chinese government has set a GDP growth target of 5% for 2025, with plans to expand local government special bonds to CNY 4.4 trillion, focusing on infrastructure and resolving local government debts[187] Compliance and Governance - The company has complied with relevant laws and regulations in both the PRC and Hong Kong throughout the reporting period[164] - The Group emphasizes its commitment to environmental, social, and governance (ESG) responsibilities, reflecting its proactive performance in sustainable development[194] - The company was rated Grade A in the "2024 Hong Kong Stock Exchange Listed Companies Energy Sector ESG Performance TOP 10," ranking sixth overall[154]

Financial Performance - For the year ended December 31, 2024, total revenue decreased by 14% to HKD 5,057 million from HKD 5,891 million in 2023[2] - Gross profit fell by 25% to HKD 2,588 million, resulting in a gross margin of 51%, down from 59%[2] - Net profit attributable to owners decreased by 21% to HKD 1,494 million compared to HKD 1,889 million in the previous year[2] - EBITDA declined by 21% to HKD 3,089 million from HKD 3,924 million in 2023[2] - The company reported a decrease in total comprehensive income to HKD 1,398 million from HKD 1,884 million in 2023, a decline of 26%[5] - The total revenue from customer contracts for the year ended December 31, 2024, was HKD 5,057,000, a decrease from HKD 5,891,068 in 2023, representing a decline of approximately 14.1%[15] - The company reported a net profit attributable to shareholders of HKD 1,494,066,000 for 2024, down from HKD 1,889,247,000 in 2023, indicating a decrease of about 20.9%[23] - The basic and diluted earnings per share for 2024 were HKD 0.301, compared to HKD 0.375 in 2023, reflecting a decline of approximately 19.7%[23] - The company’s top five customers accounted for approximately 62% of total operating revenue, with the largest customer contributing about 40%[39] Dividends and Payouts - The company proposed a final dividend of HKD 0.21 per share, up from HKD 0.18 in 2023, resulting in a total payout ratio of approximately 100% for the year[2] - The company declared a final dividend of HKD 0.18 per share for 2023, totaling HKD 886,831,000, down from HKD 0.28 per share in 2022, which amounted to HKD 1,414,515,000[22] - The total dividend proposed for the year ended December 31, 2024, is HKD 30 per share, an increase from HKD 28 per share in 2023[31] Assets and Liabilities - Total assets increased to HKD 22,948 million, up from HKD 22,492 million in 2023, reflecting a growth of 2%[6] - Current ratio improved to 4.25 from 3.97 in the previous year, indicating better short-term financial health[2] - Cash and cash equivalents rose to HKD 7,676 million, compared to HKD 6,552 million in 2023, showing an increase of 17%[6] - The net asset value attributable to owners per share decreased by 2% to HKD 3.24 from HKD 3.30 in the previous year[2] - The group's accounts payable decreased to HKD 282.26 million in 2024 from HKD 303.10 million in 2023[28] - The group's impairment loss on trade receivables decreased to HKD 182.86 million in 2024 from HKD 184.43 million in 2023[28] - The group’s total accounts receivable and notes receivable were recorded at HKD 757.52 million in 2024, compared to HKD 621.47 million in 2023[28] Production and Sales - The group's raw coking coal production decreased by 6% to approximately 4.96 million tons in 2024, down from 5.25 million tons in 2023[34] - The group's refined coking coal production fell by 3% to about 3.16 million tons in 2024, compared to 3.25 million tons in 2023[35] - The sales volume of refined coking coal increased by 1% to 3.13 million tons in 2024, up from 3.10 million tons in 2023[34] - The average selling price of refined coking coal decreased by 14% to RMB 1,666 per ton in 2024, down from RMB 1,932 per ton in 2023[34] - The cost of sales increased by approximately HKD 44 million or 2% year-on-year to HKD 2.469 billion, primarily due to a 1% increase in coking coal sales volume[42] Operational Changes and Strategy - The company reported no significant operational changes during the year, maintaining its focus on coking coal mining and production[8] - The company has not adopted any new accounting standards that would significantly impact its financial performance for the current or future periods[11] - The company plans to assess the impact of newly issued accounting standards on its financial performance and position, although it has not yet determined if these will have a significant effect[13] - The group did not engage in any significant investments or acquisitions during the fiscal year ending December 31, 2024[56] - The company completed the construction acceptance of its coal mine project in 2024 and obtained a safety production license[72] - The company aims to enhance production management and safety capabilities through digital management and automation[72] Governance and Management - The company has complied with the corporate governance code as per the listing rules during the fiscal year ending December 31, 2024[75] - The board of directors is composed of key executives including the chairman and several independent directors[80] - The presence of both executive and independent directors suggests a focus on governance and oversight in decision-making[80] - The board's composition reflects a diverse range of expertise, which may enhance strategic decision-making processes[80] Market and Economic Conditions - The company’s external customer revenue from China represents the majority of its total revenue, highlighting its reliance on this market[16] - The total revenue from external customers in Hong Kong remained at zero for 2024, compared to HKD 4,061 in 2023, indicating a complete withdrawal from this market[16] - The group experienced a foreign exchange loss of approximately HKD 168 million due to the depreciation of the RMB against the HKD[62] - The average trading volume increased by 11% for the year ending December 31, 2024, improving liquidity in stock trading[67] - The current ratio as of December 31, 2024, was 7% higher compared to December 31, 2023, and free cash resources increased by 15% year-on-year[67]

[FINANCIAL HIGHLIGHTS](index=5&type=section&id=FINANCIAL%20HIGHLIGHTS) [H1 2024 Performance Overview](index=5&type=section&id=H1%202024%20Performance%20Overview) H1 2024 saw significant year-on-year declines in key financial metrics, including a 27% revenue drop to HKD 2.5 billion and a 32% decrease in profit attributable to owners to HKD 840 million, with a reduced interim dividend Financial Highlights | Metric | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue (HKD '000)** | 2,497,844 | 3,442,305 | -27% | | **Gross Profit (HKD '000)** | 1,406,230 | 2,232,651 | -37% | | **Gross Profit Margin** | 56% | 65% | -9pp | | **Profit for the Period (HKD '000)** | 982,542 | 1,519,093 | -35% | | **Profit Attributable to Owners (HKD '000)** | 837,351 | 1,232,644 | -32% | | **EBITDA (HKD '000)** | 1,666,070 | 2,372,560 | -30% | | **Basic Earnings Per Share (HK cents)** | 17.00 | 24.40 | -30% | | **Interim Dividend Per Share (HK cents)** | 9.00 | 10.00 | -10% | Financial Position Highlights | Metric | As of June 30, 2024 | As of Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Assets (HKD '000)** | 23,140,351 | 22,491,544 | +3% | | **Cash and Deposits (HKD '000)** | 9,220,290 | 7,944,731 | +16% | | **Total Liabilities (HKD '000)** | 4,698,733 | 4,021,026 | +17% | | **Total Equity (HKD '000)** | 18,441,618 | 18,470,518 | - | | **Current Ratio (times)** | 3.44 | 3.97 | -13% | | **Gearing Ratio** | – | – | – | [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) In H1 2024, revenue decreased 27% to HKD 2.5 billion, gross profit fell 37% to HKD 1.41 billion, and profit attributable to owners declined 32% to HKD 840 million Income Statement | Item (HKD '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | **Revenue** | 2,497,844 | 3,442,305 | | **Cost of Sales** | (1,091,614) | (1,209,654) | | **Gross Profit** | 1,406,230 | 2,232,651 | | **Profit Before Income Tax** | 1,393,872 | 2,121,154 | | **Income Tax Expense** | (411,330) | (602,061) | | **Profit for the Period** | 982,542 | 1,519,093 | | **Profit Attributable to Owners of the Company** | 837,351 | 1,232,644 | | **Profit Attributable to Non-controlling Interests** | 145,191 | 286,449 | [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2024, total assets increased 3% to HKD 23.14 billion, total liabilities rose 17% to HKD 4.7 billion, and cash and deposits reached HKD 9.22 billion, maintaining a robust financial position with a 3.44x current ratio and zero gearing Assets | Assets (HKD '000) | As of June 30, 2024 (Unaudited) | As of Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | **Total Non-current Assets** | 12,161,507 | 12,467,529 | | **Total Current Assets** | 10,978,844 | 10,024,015 | | Of which: Cash and Cash Equivalents | 6,758,308 | 6,552,242 | | Of which: Time Deposits | 2,461,982 | 1,392,489 | | **Total Assets** | 23,140,351 | 22,491,544 | Liabilities and Equity | Liabilities and Equity (HKD '000) | As of June 30, 2024 (Unaudited) | As of Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | **Total Current Liabilities** | 3,188,759 | 2,522,589 | | Of which: Dividends Payable | 886,831 | – | | **Total Non-current Liabilities** | 1,509,974 | 1,498,437 | | **Total Liabilities** | 4,698,733 | 4,021,026 | | **Total Equity** | 18,441,618 | 18,470,518 | | **Equity Attributable to Owners** | 16,109,542 | 16,281,846 | [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=14&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) In H1 2024, net cash inflow from operating activities significantly decreased to HKD 1.18 billion, primarily due to lower profit before tax, while net cash outflow from investing activities was HKD 900 million, and cash and cash equivalents increased to HKD 6.76 billion at period-end Cash Flow Statement | Item (HKD '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | **Net Cash Inflow from Operating Activities** | 1,180,302 | 2,720,518 | | **Net Cash Outflow from Investing Activities** | (900,997) | (1,329,616) | | **Net Cash Outflow from Financing Activities** | (64,735) | (125,061) | | **Net Increase in Cash and Cash Equivalents** | 214,570 | 1,265,841 | | **Cash and Cash Equivalents at End of Period** | 6,758,308 | 5,027,222 | [MANAGEMENT DISCUSSION AND ANALYSIS](index=53&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) [Business Review](index=53&type=section&id=Business%20Review) In H1 2024, raw coking coal and clean coking coal production decreased by 15% and 31% respectively due to temporary suspension at Xingwu Coal Mine, with clean coking coal sales down 25%, while average selling price only slightly decreased by 2% to RMB 1,938 per tonne Operational Data | Operational Data | Unit | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | | **Raw Coking Coal Production** | Million tonnes | 2.25 | 2.66 | -15% | | **Clean Coking Coal Production** | Million tonnes | 1.29 | 1.86 | -31% | | **Clean Coking Coal Sales** | Million tonnes | 1.34 | 1.79 | -25% | | **Clean Coking Coal Average Selling Price (incl. tax)** | RMB per tonne | 1,938 | 1,973 | -2% | - The primary reason for the production decline was the **temporary suspension** at Xingwu Coal Mine in H1 2024 due to production layer replacement, with normal operations resuming in **mid-July**[164](index=164&type=chunk) [Financial Review](index=56&type=section&id=Financial%20Review) The financial review details the performance decline, with revenue down 27% due to lower sales and prices, gross profit margin compressing from 65% to 56% due to increased unit production costs, and net profit decreasing 35%, while maintaining a robust financial position with no borrowings and ample cash reserves [Revenue and Customers](index=56&type=section&id=Revenue%20and%20Customers) H1 2024 revenue decreased 27% to HKD 2.5 billion, primarily due to a 25% drop in clean coking coal sales and a 2% decline in average selling price, with the top five customers accounting for 73% of revenue, and Shougang Group's share increasing to 51% - Revenue decreased by **27%** year-on-year to **HKD 2.498 billion**, primarily due to a **25%** decline in clean coking coal sales volume and a **2%** decrease in average selling price[168](index=168&type=chunk) - The top five customers accounted for **73%** of total revenue, with the largest customer, Shougang Group and its subsidiaries, contributing **51%** of revenue and **48%** of sales volume[168](index=168&type=chunk) [Cost and Gross Profit](index=58&type=section&id=Cost%20and%20Gross%20Profit) Cost of sales decreased 10% to HKD 1.09 billion, but raw coking coal unit production cost rose 13% to RMB 453 per tonne due to lower output, leading to a 37% decline in gross profit to HKD 1.41 billion and a gross profit margin compression from 65% to 56% Unit Production Cost | Unit Production Cost (RMB per tonne) | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | **Raw Coking Coal Production Cost** | 453 | 400 | +13% | | Less: Depreciation and Amortization | (96) | (74) | +30% | | **Cash Raw Coking Coal Production Cost** | 357 | 326 | +10% | | **Clean Coking Coal Processing Fee** | 50 | 40 | +25% | - Gross profit margin decreased from **65%** in the prior period to **56%**, primarily due to lower average realized selling prices and reduced recovery rates[172](index=172&type=chunk)[186](index=186&type=chunk) - Raw coking coal unit production cost increased by **13%** year-on-year, mainly due to a **15%** decrease in raw coking coal production volume[183](index=183&type=chunk) [Expenses and Profitability](index=61&type=section&id=Expenses%20and%20Profitability) Sales and distribution expenses significantly decreased by 56% year-on-year due to lower sales volume and cost control, while profit attributable to owners was HKD 837 million, down 32%, with basic earnings per share at HKD 0.17 - Sales and distribution expenses significantly decreased by **56%** year-on-year to **HKD 58 million**, primarily due to a **25%** decline in clean coking coal sales volume and a lower proportion of rail transportation sales[192](index=192&type=chunk) - Profit attributable to owners of the company was approximately **HKD 837 million**, a **32%** year-on-year decrease; basic earnings per share were **HKD 0.17**, compared to HKD 0.244 in the prior period[201](index=201&type=chunk)[174](index=174&type=chunk) [Capital Structure and Liquidity](index=66&type=section&id=Capital%20Structure%20and%20Liquidity) As of June 30, 2024, the company had no borrowings, a 0% gearing ratio, a current ratio of 3.44 times, and approximately HKD 9.22 billion in free cash and bank deposits, indicating a highly robust financial position - The company has **no borrowings**, resulting in a **0%** gearing ratio[210](index=210&type=chunk) - The current ratio is **3.44 times**, with approximately **HKD 9.221 billion** in available free funds, indicating ample liquidity[214](index=214&type=chunk) [Future Prospects](index=68&type=section&id=Future%20Prospects) Looking ahead, management anticipates weak domestic real estate demand offset by infrastructure and manufacturing, with coking coal supply constrained by enhanced safety regulations supporting prices; Xingwu Coal Mine resumed production in July, expecting output recovery in H2, while the company focuses on intelligent construction and cost control for efficiency - Regarding downstream demand, steel demand from real estate remains sluggish, but infrastructure investment and steel exports continue to provide support[221](index=221&type=chunk) - On the supply side, strengthened coal mine safety regulations limit coking coal production, providing some price support, though rapid growth in overseas coking coal imports, especially from Mongolia, partially offsets domestic output declines[224](index=224&type=chunk)[225](index=225&type=chunk) - The company's Xingwu Coal Mine completed its production layer replacement and resumed operations in **July**, with output expected to gradually recover and return to normal in the second half of the year[231](index=231&type=chunk) [Dividends and Shareholder Information](index=52&type=section&id=Dividends%20and%20Shareholder%20Information) [INTERIM DIVIDEND](index=52&type=section&id=INTERIM%20DIVIDEND) The Board declared an interim dividend of **HKD 0.09** per ordinary share for the six months ended June 30, 2024, a decrease from HKD 0.10 per share in the prior period - The Board has declared an interim dividend of **HKD 0.09** per ordinary share for the six months ended June 30, 2024 (H1 2023: HKD 0.10 per share)[157](index=157&type=chunk) [DISCLOSURE OF INTERESTS](index=72&type=section&id=DISCLOSURE%20OF%20INTERESTS) As of June 30, 2024, major shareholders included Fude Life Insurance (28.38% stake), Shougang Group (17.52% stake), and Shoucheng Holdings (15.72% stake) Major Shareholders | Shareholder Name | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | | **Fude Life Insurance** | 1,398,284,000 | 28.38% | | **Shougang Group** | 863,358,000 | 17.52% | | **Shoucheng Holdings** | 774,743,327 | 15.72% | [CORPORATE GOVERNANCE AND OTHER INFORMATION](index=76&type=section&id=CORPORATE%20GOVERNANCE%20AND%20OTHER%20INFORMATION) [Corporate Governance and Compliance](index=76&type=section&id=Corporate%20Governance%20and%20Compliance) During the reporting period, the company complied with the Listing Rules' Corporate Governance Code and the Model Code for Securities Transactions by Directors, with the Audit Committee reviewing the interim report and unaudited interim financial information - The company complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2024[244](index=244&type=chunk) - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2024, and this interim report[256](index=256&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 2,498 million, a decrease of 27% compared to HKD 3,442 million in the same period of 2023[2] - Gross profit decreased by 37% to HKD 1,406 million, with a gross margin of 56%, down from 65%[2] - Net profit attributable to owners was HKD 837 million, a decline of 32% from HKD 1,233 million in the previous year[2] - EBITDA for the period was HKD 1,666 million, representing a 30% decrease from HKD 2,373 million[2] - Basic earnings per share decreased to HKD 17.00, down 30% from HKD 24.40[2] - The company reported a total comprehensive income of HKD 857 million for the period, down from HKD 1,324 million in the previous year[7] - For the six months ended June 30, 2024, the group recorded operating revenue of approximately HKD 2.498 billion, a decrease of about HKD 944 million or 27% compared to the same period last year[42] - Net profit for the six months was approximately HKD 983 million, a decline of 35% year-on-year, with profit attributable to owners decreasing by 32% to approximately HKD 837 million[42][54] - The EBITDA for the period was approximately HKD 1.666 billion, down from approximately HKD 2.373 billion in the same period last year[42] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 23,140 million, an increase from HKD 22,491 million as of December 31, 2023[9] - Current ratio decreased to 3.44 from 3.97, indicating a 13% decline in liquidity[2] - Trade receivables as of June 30, 2024, amounted to HKD 606,007,000, an increase of 14.2% from HKD 530,468,000 as of December 31, 2023[29] - Trade payables as of June 30, 2024, totaled HKD 572,908,000, a decrease of 7.8% from HKD 621,467,000 as of December 31, 2023[34] - As of June 30, 2024, total accounts payable amounted to HKD 286,257,000, a decrease from HKD 303,096,000 as of December 31, 2023, representing a reduction of approximately 5.8%[35] - The company’s financial assets at fair value through other comprehensive income decreased to HKD 574,891,000 as of June 30, 2024, from HKD 688,264,000 as of December 31, 2023[28] - The group maintained a strong financial position with available bank balances and cash reserves of approximately HKD 9.22 billion, an increase from HKD 7.945 billion at the end of 2023[43] - The group has no borrowings as of June 30, 2024, resulting in a capital debt ratio of 0%[58] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.09 per share for the six months ended June 30, 2024[2] - The interim dividend declared for the six months ended June 30, 2024, is HKD 443,415,000, down from HKD 492,684,000 in the same period of 2023, reflecting a decrease of 10%[25] - The company declared an interim dividend of HKD 0.09 per share for the six months ended June 30, 2024, compared to HKD 0.10 per share in the previous year[39] Operational Highlights - The company operates primarily in the coking coal mining sector, focusing on exploration and production in China[18] - The production of raw coking coal for the six months ended June 30, 2024, was 2.25 million tons, a decrease of 15% compared to 2.66 million tons in the same period of 2023[40] - The production of premium coking coal was 1.29 million tons, down 31% from 1.86 million tons in the previous year[41] - The sales volume of premium coking coal decreased by 25% year-on-year, with total sales accounting for 100% of the company's revenue during the review period[41] - The company experienced a significant drop in low-sulfur premium coking coal sales, which fell by 91% year-on-year, while the average market price increased by approximately 3%[41] - The group’s subsidiary, Xingwu Coal Mine, has completed the production replacement and resumed normal operations in July 2024, contributing to the gradual increase in coking coal output in the second half of 2024[64] Cost and Expenses - The cost of sales for the six months ended June 30, 2024, was HKD 1,091,614, down from HKD 1,209,654 in the same period of 2023[22] - Employee costs, including directors' remuneration, were HKD 390,945 for the six months ended June 30, 2024, compared to HKD 437,739 in the previous year, reflecting a decrease of 10.7%[22] - Sales costs for the period were approximately HKD 1.092 billion, a decrease of about HKD 118 million or 10% year-on-year[44] - The average production cost per ton of raw coking coal increased by 13% year-on-year, primarily due to a 15% decrease in production volume[46] Other Income and Gains - Other income for the six months ended June 30, 2024, totaled HKD 53,445, an increase of 68.6% from HKD 31,703 in the previous year[19] - Interest income increased by approximately HKD 11 million or 13% year-on-year to about HKD 95 million, driven by rising deposit rates[48] - Other income and gains for the period were approximately HKD 53 million, a significant increase of about HKD 21 million or 66% year-on-year[49] Compliance and Governance - The company has complied with the corporate governance code as per the Listing Rules during the six months ended June 30, 2024[67] - All directors have adhered to the standards set forth in the company's code of conduct for securities transactions during the six months ended June 30, 2024[67] - The interim report will be published on the Hong Kong Stock Exchange and the company's website, with printed copies sent to shareholders who opted for them[68] Market Conditions - In the first half of 2024, the national crude steel production slightly increased by 0.2% year-on-year, while pig iron production decreased by 3.3%[63] - Shanxi Province's raw coal production reached approximately 590 million tons in the first half of 2024, achieving 45% of the annual target, despite a nearly 2% decline in national raw coal production[64] Employee and Community Engagement - The group employed 4,155 staff as of June 30, 2024, with annual reviews of employee compensation[62] - Charitable donations for the six months ended June 30, 2024, were HKD 1,106, significantly higher than HKD 33 in the previous year[20]

Financial Performance - Revenue for the year ended December 31, 2023, was HK$5,891,068,000, representing a decrease of 28% compared to HK$8,214,719,000 in 2022[11] - Gross profit for 2023 was HK$3,466,028,000, down 34% from HK$5,289,594,000 in the previous year, with a gross profit margin of 59%[11] - Profit for the year decreased by 30% to HK$2,300,938,000 from HK$3,308,155,000 in 2022[11] - EBITDA for 2023 was HK$3,924,133,000, reflecting a decline of 28% from HK$5,414,715,000 in 2022[11] - Basic earnings per share for 2023 was HK$37.66, a decrease of 30% from HK$53.75 in 2022[11] - The proposed final dividend per share for 2023 is HK$18.0, compared to HK$32.0 in 2022[11] - The Group's sales revenue for the year amounted to HK$5.89 billion, a decrease of 28% year-over-year due to falling coal prices and RMB foreign exchange rate drop[36] - The net profit for 2023 reached HK$2.3 billion, with net profit attributable to shareholders amounting to HK$1.89 billion, a decrease of 30% year-over-year[36] - The Group recorded a net profit of approximately HK$2,301 million, representing a decrease of approximately 30% YoY, primarily due to the decrease in gross profit[56] - Total revenue from the top five customers accounted for approximately 67% of the Group's revenue, with the largest customer contributing 43%[54] Assets and Liabilities - Total assets as of December 31, 2023, were HK$22,491,544,000, a decrease of 4% from HK$23,463,484,000 in 2022[12] - Total liabilities decreased by 16% to HK$4,021,026,000 from HK$4,786,265,000 in 2022[12] - Equity attributable to owners was HK$16,281,846,000, down 3% from HK$16,768,677,000 in 2022[12] - The Group maintained a healthy financial position with free bank balances and cash of approximately HK$7.945 billion as of December 31, 2023, an increase from approximately HK$6.014 billion the previous year[59] - The Group had no borrowings as at 31 December 2023, resulting in a gearing ratio of 0%[93] Production and Operations - The company operates three coal mines with an annual approved raw coking coal production capacity of 1.75 million tonnes each[20][22] - In 2023, the Group achieved a raw coking coal output of 5.25 million tonnes, maintaining the approved production capacity and consistent with the previous year[36] - The sales volume of clean coking coal decreased by 7% to 3.10 million tonnes due to coal in transit[36] - The average realized selling price of clean coking coal was RMB 1,932 per tonne, representing a 20% year-over-year decrease[36] - The average market prices of coking coal in FY 2023 dropped by approximately 20% year-on-year, with benchmark clean coking coal prices decreasing by about 30% year-on-year in the first half of 2023[103] Market and Economic Conditions - The GDP growth rate for 2023 was 5.2%, reflecting a gradual economic recovery[34] - The central government set a GDP growth target of around 5% for 2024, indicating confidence in economic development[39] - The domestic coking coal supply, especially high-quality coking coal, is expected to remain relatively tight in 2024[39] - Domestic steel demand decreased, but exports increased by 36.2%, indicating a generally balanced steel supply and demand[117][119] - The International Monetary Fund (IMF) projects China's GDP growth rate to decelerate to 4.6% in 2024 due to real estate market challenges and external uncertainties[121][122] Environmental, Social, and Governance (ESG) Initiatives - The company has made significant efforts in promoting safety management and environmental protection, aiming to build itself into a safety-oriented and environmentally-friendly enterprise[98] - The ESG management system is led by the board of directors, with the Audit Committee responsible for formulating ESG management policies and assessing material ESG issues[139] - The Group emphasizes the integration of ESG concepts into its overall development plan and production operations, ensuring alignment with social well-being and environmental protection[145] - The Group actively identifies ESG risks and opportunities through regular assessments and stakeholder communication[145] - The most important ESG issues identified include workplace safety, emissions management, and occupational health[167] Risk Management - The Group has established a comprehensive risk management system based on a "three lines of defense" structure to enhance risk prevention capabilities[175] - Major risks identified include safety risks, environmental risks, financial risks, time risks, and technology risks, with targeted countermeasures developed for each[193][196] - The objective for safety risk is to eliminate serious injuries and effectively prevent minor injuries, with measures including improved systems and enhanced safety supervision[193] - The environmental risk objective is to achieve zero violations of environmental protection regulations, with regular inspections and management of waste disposal[193] - Financial risk management focuses on timely project investments, addressing uncertainties in project application and implementation processes[196]