Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 5,891 million, a decrease of 28% from HKD 8,215 million in 2022[2] - Gross profit for the same period was HKD 3,466 million, down 34% from HKD 5,290 million, resulting in a gross margin of 59% compared to 64% in the previous year[2] - Net profit attributable to owners for 2023 was HKD 1,889 million, a decline of 30% from HKD 2,715 million in 2022[2] - EBITDA per share decreased to HKD 37.66 from HKD 53.75, reflecting a drop of 30%[2] - Total comprehensive income for the year was HKD 1,883 million, down from HKD 2,300 million in 2022[5] - Profit before tax for 2023 was HKD 1,889,247,000, a decrease of 30.5% from HKD 2,715,374,000 in 2022[24] - The basic earnings per share for 2023 was HKD 0.3766, down from HKD 0.5375 in 2022, representing a decrease of 30%[24] - Net profit for the fiscal year was approximately HKD 2.301 billion, a decline of about 30% year-on-year, with earnings per share dropping to HKD 0.3766 from HKD 0.5375[39] Revenue Sources - The company's revenue from coking coal sales for the year 2023 was HKD 5,891,068,000, a decrease of 28.4% compared to HKD 8,214,719,000 in 2022[15] - The total external customer revenue from the China market was HKD 5,891,068,000 in 2023, down from HKD 8,214,719,000 in 2022, representing a decline of 28.4%[16] - Revenue from the sale of by-products decreased to HKD 95,462,000 in 2023 from HKD 123,039,000 in 2022, a decline of 22.4%[18] - The contribution of the top five customers to total revenue was approximately 67%, down from 74% in the previous year, with the largest customer accounting for 43% of total revenue[38] Assets and Liabilities - The company's net asset value as of December 31, 2023, was HKD 18,471 million, a slight decrease of 1% from HKD 18,677 million in 2022[2] - The total assets as of December 31, 2023, were HKD 22,491 million, compared to HKD 23,463 million in 2022[6] - Current liabilities decreased to HKD 2,522 million from HKD 3,234 million, indicating improved liquidity[7] - The company reported a decrease in trade receivables to HKD 714,894,000 in 2023 from HKD 1,504,189,000 in 2022, a decline of 52.5%[25] - As of December 31, 2023, accounts payable amounted to HKD 303,096,000, an increase from HKD 236,931,000 in 2022[29] - The total accounts payable and notes payable reached HKD 621,467,000, slightly up from HKD 614,737,000 in the previous year[29] Dividends - The board proposed a final dividend of HKD 0.18 per share for the year 2023[2] - The total dividend declared for 2023 was HKD 1,907,199,000, compared to HKD 2,374,364,000 in 2022, a decrease of 19.7%[22] - The proposed final dividend for the year ending December 31, 2023, is HKD 0.18 per share, compared to HKD 0.28 per share for the previous year[33] Expenses and Costs - The total sales cost for the fiscal year was approximately HKD 2.425 billion, a decrease of about 17% from HKD 2.925 billion in the previous year[40] - The company’s employee costs, including directors' remuneration, decreased to HKD 808,778,000 in 2023 from HKD 834,779,000 in 2022, a decline of 3.1%[20] - Sales and distribution expenses for the review year were approximately HKD 215 million, a decrease of about HKD 134 million or 38% compared to the previous year[47] - General and administrative expenses were approximately HKD 201 million, down by about HKD 7 million or 3% year-on-year[48] - Other operating expenses were approximately HKD 10 million, a significant decrease of about HKD 108 million or 92% compared to the previous year[49] Financial Position - The current ratio improved by 23%, increasing to 3.97 from 3.23 in the previous year[2] - The company maintained a strong financial position with cash and bank balances of approximately HKD 7.945 billion, up from HKD 6.014 billion in the previous year[39] - The company had no borrowings, resulting in a capital debt ratio of 0%[54] - The current ratio was approximately 3.97 times, with total cash and bank deposits of about HKD 8.887 billion[56] Market and Economic Context - In 2023, China's GDP growth was recorded at 5.2%, achieving the set target despite a complex domestic and international environment[61] - Fixed asset investment, excluding price factors, grew by 6.4% in 2023, while infrastructure investment increased by 5.9%[61] - Real estate development investment decreased by 9.6% in 2023, with a gradual narrowing of the decline in new construction area in the second half of the year[61] Strategic Initiatives - The group plans to invest RMB 70 billion in major projects in 2024, focusing on manufacturing and infrastructure[62] - The group will continue to invest in technological innovation and improve production efficiency to align with national carbon neutrality goals by 2060[62] - The group has sufficient cash flow and will adjust operational strategies in response to environmental changes and economic developments[62] Shareholder Actions - The company repurchased and canceled 125 million shares, representing approximately 2.47% of the total shares issued prior to the offer[59] - The company repurchased and canceled a total of 125 million shares at HKD 2.40 per share, totaling HKD 300 million[64] Compliance and Governance - The company has complied with the corporate governance code as per the listing rules for the fiscal year ending December 31, 2023[65]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$3,442,305,000, a decrease of 26% compared to HK$4,662,983,000 in 2022[10]. - Gross profit for the same period was HK$2,232,651,000, also down by 26% from HK$3,006,836,000 in 2022, with a gross profit margin of 65%[10]. - Profit for the period was HK$1,519,093,000, reflecting a 22% decline from HK$1,936,269,000 in the previous year[10]. - Profit attributable to owners of the Company decreased by 23% to HK$1,232,644,000 from HK$1,606,697,000[10]. - EBITDA for the period was HK$2,372,560,000, down 27% from HK$3,267,024,000 in 2022[10]. - Basic earnings per share decreased to 24.40 HK cents, a 23% drop from 31.80 HK cents in 2022[10]. - Total comprehensive income for the period was HK$1,323,564,000, down from HK$1,646,154,000, representing a decline of 19.6%[23]. - Profit before income tax was HK$2,121,154,000, compared to HK$2,749,626,000 in the previous year, indicating a decline of 22.8%[21]. Assets and Liabilities - Total assets as of June 30, 2023, increased by 3% to HK$24,178,695,000 from HK$23,463,484,000 at the end of 2022[12]. - Total liabilities rose by 17% to HK$5,592,427,000 from HK$4,786,265,000[12]. - Total current assets rose to HK$11,424,003, compared to HK$10,442,805, reflecting an increase of about 9.4%[25]. - Net current assets improved to HK$7,386,949, up from HK$7,208,171, indicating a growth of around 2.5%[28]. - Net assets decreased slightly to HK$18,586,268 from HK$18,677,219, a decline of about 0.5%[30]. - Total equity attributable to owners of the Company decreased to HK$16,411,027 from HK$16,768,677, a decline of about 2.1%[32]. Cash Flow - Net cash inflow from operating activities for the first half of 2023 was HK$2,720,518, compared to HK$1,879,534 in the same period of 2022, representing a 44.9% increase[41]. - Cash generated from operations was HK$3,416,045, with income tax paid amounting to HK$695,527[41]. - The company reported a net cash outflow from investing activities of HK$1,329,616 for the six months ended June 30, 2023, compared to HK$142,546 in the same period of 2022[43]. - The net increase in cash and cash equivalents for the same period was HK$1,265,841,000, down from HK$1,630,619,000 in 2022, indicating a decrease of about 22.4%[45]. - Cash and cash equivalents at June 30, 2023, totaled HK$5,027,222,000, a decrease from HK$5,865,117,000 at the end of June 2022, reflecting a decline of approximately 14.3%[45]. Dividends - Interim dividend per share was reduced to 10.00 HK cents, a decrease of 33% from 15.00 HK cents in 2022[10]. - The total interim dividend declared for the six months ended June 30, 2023, is HK$505,184,000, based on 5,051,837,842 ordinary shares[81]. - The interim dividend per ordinary share for 2023 is HK$0.10, down from HK$0.15 in 2022[79]. Production and Sales - The Group produced approximately 2.66 million tonnes of raw coking coal, a slight decrease of 1% YoY, while clean coking coal production increased by 7% YoY to approximately 1.86 million tonnes[161]. - The sales volume of clean coking coal increased by 3% YoY, with both sales accounting for 100% of the Group's revenue during the period[164]. - The average realised selling price of clean coking coal decreased by 22% YoY to RMB 1,973/tonne, down from RMB 2,521/tonne in the previous year[165]. - The Group sold clean coking coal amounting to HK$1,437,157,000 for the six months ended 30 June 2023, a decrease of 28.2% compared to HK$2,001,941,000 for the same period in 2022[145]. Cost Management - Cost of sales for the Period Under Review was approximately HK$1,210 million, representing a decrease of approximately HK$446 million or 27% YoY[176]. - The unit production cost of raw coking coal decreased by 4% YoY to RMB400 per tonne, while cash production cost decreased by 5% YoY to RMB326 per tonne[180]. - The Group faced rising cost pressures but implemented stringent cost controls, resulting in a reduction of RMB4 per tonne YoY in material and electricity costs[183]. Other Income and Expenses - Other income and gains, net, rose to approximately HK$32 million, an increase of approximately HK$29 million YoY, despite a net foreign exchange loss of approximately HK$42 million[186]. - Selling and distribution expenses decreased by approximately HK$36 million or 21% YoY to approximately HK$132 million, primarily due to a drop in sales by train[190]. - General and administrative expenses slightly increased by approximately HK$2 million YoY to approximately HK$91 million[191]. Environmental and Safety Measures - The Group emphasizes production safety and environmental protection while maintaining stable coal production[200]. - The Group is committed to safety management and enhancing environmental protection measures[200]. - All coal mines of the Group have obtained necessary permissions from relevant Chinese regulators[200]. - The Group actively manages production procedures to eliminate wastewater and waste gas discharge[200]. - The Group focuses on energy saving, emission reduction, and environmental protection[200].

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 3,442 million, a decrease of 26% compared to HKD 4,663 million in 2022[2] - Gross profit for the same period was HKD 2,233 million, down 26% from HKD 3,007 million in the previous year[2] - Net profit attributable to owners for the six months was HKD 1,519 million, a decline of 22% from HKD 1,936 million in 2022[2] - EBITDA for the period was HKD 1,233 million, representing a 23% decrease from HKD 1,607 million in the prior year[2] - Basic earnings per share for the six months was HKD 24.40, down 23% from HKD 31.80 in 2022[2] - Total comprehensive income for the period was HKD 1,323 million, down from HKD 1,646 million in 2022[6] - The group's operating revenue for the six months ended June 30, 2023, was approximately HKD 3.442 billion, a decrease of about 26% from HKD 4.663 billion in the same period of 2022[45] - Net profit for the six months ended June 30, 2023, was approximately HKD 1.519 billion, a decrease of 22% year-on-year[45] - The EBITDA for the six months ended June 30, 2023, was approximately HKD 2.373 billion, down from HKD 3.267 billion in the same period of 2022[46] - The group recorded a profit attributable to owners of approximately HKD 1.233 billion, a decrease of about HKD 374 million or 23% compared to approximately HKD 1.607 billion in the same period last year[57] Assets and Liabilities - The company's net asset value as of June 30, 2023, was HKD 18,586 million, a slight decrease of 1% from HKD 18,677 million at the end of 2022[2] - The total assets as of June 30, 2023, amounted to HKD 24,178 million, an increase from HKD 23,463 million at the end of 2022[7] - Trade receivables as of June 30, 2023, amounted to HKD 893,962,000, a significant decrease of 40% from HKD 1,504,189,000 as of December 31, 2022[29] - The net trade receivables after impairment losses were HKD 706,005,000 as of June 30, 2023, compared to HKD 1,314,509,000 as of December 31, 2022, indicating a decline of approximately 46%[29] - The company’s total receivables, including notes receivable, were HKD 1,443,854,000 as of June 30, 2023, compared to HKD 2,889,765,000 as of December 31, 2022, reflecting a decrease of about 50%[29] - The company’s total liabilities related to pledged notes receivable were HKD 84,378,000 as of June 30, 2023, down from HKD 182,668,000 as of December 31, 2022[32] - As of June 30, 2023, the company reported accounts payable of HKD 234,396,000, a slight decrease from HKD 236,931,000 as of December 31, 2022, representing a reduction of approximately 1%[34] - The company’s accounts payable notes decreased to HKD 211,218,000 as of June 30, 2023, down from HKD 377,806,000 as of December 31, 2022, indicating a significant reduction of approximately 44%[34] Dividends and Share Repurchase - The interim dividend declared was HKD 0.15 per share, compared to HKD 0.10 per share in the previous year[2] - The total interim dividend declared for the six months ended June 30, 2023, was HKD 505,184,000, compared to HKD 757,776,000 for the same period in 2022, representing a reduction of about 33%[25] - The company declared an interim dividend of HKD 0.10 per share for the six months ended June 30, 2023, down from HKD 0.15 per share in the previous year[40] - The company plans to repurchase up to 125,000,000 shares at a price of HKD 2.40 per share, which would result in a total cash payment of approximately HKD 300,000,000[38] - The company announced a conditional cash offer to repurchase up to 125 million shares at HKD 2.40 per share, representing approximately 2.47% of the total issued shares[68] Production and Sales - The company’s production of premium coking coal for the six months ended June 30, 2023, was 2.66 million tons, a decrease of 1% compared to 2.70 million tons in the same period last year[41] - The sales volume of premium coking coal increased to 1.79 million tons for the six months ended June 30, 2023, up by 3% from 1.74 million tons in the previous year[41] - The average realized selling price of premium coking coal was RMB 1,973 per ton, a decrease of 22% from RMB 2,521 per ton in the same period last year[41] - The group's raw coking coal production for the six months ended June 30, 2023, was approximately 2.66 million tons, a slight decrease of 1% compared to 2.70 million tons in the same period of 2022[43] - The production of premium coking coal increased by 7% to approximately 1.86 million tons, up from 1.74 million tons in the same period of 2022, due to improved recovery rates[43] Expenses and Costs - The cost of sales for the six months ended June 30, 2023, was HKD 1,209,654, down from HKD 1,656,147 in the same period of 2022, reflecting a decrease of 27%[21] - The total sales cost for the six months ended June 30, 2023, was approximately HKD 1.210 billion, a decrease of 27% from HKD 1.656 billion in the same period of 2022[47] - The cash production cost per ton of raw coking coal was RMB 326, down 5% from RMB 344 in the same period of 2022[48] - Sales and distribution expenses were approximately HKD 132 million, a decrease of about HKD 36 million or 21% compared to approximately HKD 168 million in the same period last year, mainly due to a decline in the proportion of sales from fire transportation[54] - General and administrative expenses were approximately HKD 91 million, a slight increase of about HKD 2 million compared to approximately HKD 89 million in the same period last year[55] Financial Position and Ratios - The current ratio decreased to 2.83 from 3.23, reflecting a 12% decline[2] - The current ratio was approximately 2.83 times, with total cash and bank deposits of approximately HKD 9.278 billion as of June 30, 2023[63] - The total equity value was approximately HKD 15.157 billion, with no borrowings as of June 30, 2023[64] - The group maintained a strong financial position with available bank balances and cash of approximately HKD 8.494 billion as of June 30, 2023, up from HKD 6.014 billion as of December 31, 2022[46] Economic and Market Conditions - In the first half of 2023, China's GDP growth increased to 5.5%, up from 3% in 2022, with Q1 growth at 4.5% and Q2 at 6.3%[66] - National fixed asset investment grew by 3.8% year-on-year in the first half of 2023, with infrastructure investment increasing by 7.2%[66] - In the first half of 2023, the national crude steel production reached 540 million tons, a year-on-year increase of 1.3%[66] - The price of domestic coking coal showed a pattern of rising and then falling, with imported coal volume increasing by 75% to 45.61 million tons in the first half of 2023[66] - The real estate market showed slight improvement in the first half of 2023 but weakened again, impacting steel demand[66] Safety and Governance - The company achieved a zero fatal accident management goal in the first half of 2023, emphasizing safety in production[67] - The company remains committed to adhering to corporate governance codes and has complied with the relevant regulations during the reporting period[69] - The company continues to assess the impact of new accounting standards and interpretations on its financial performance and position[16] - The group did not report any significant changes in operations for the six months ended June 30, 2023, compared to the previous period[12] - The board approved the publication of the interim financial data on August 30, 2023[13]

Financial Performance - For the year ended December 31, 2022, the Group reported revenue of HK$8,214,719,000, representing a 16% increase from the previous year[16] - Gross profit for the same period was HK$5,289,594,000, with a gross profit margin of 64%, up 3% from 2021[16] - Profit attributable to owners of the Company reached HK$2,715,374,000, reflecting a 7% increase year-over-year[16] - EBITDA for 2022 was HK$5,414,715,000, marking a 14% growth compared to 2021[16] - Basic earnings per share increased to 53.75 HK cents, a 7% rise from the previous year[16] - The Group recorded a historical high profit for the year ended December 31, 2022[17] - The Group's net profit hit HK$3.3 billion, an increase of 8% YoY, with net profit attributable to Shareholders amounting to HK$2.7 billion, an increase of 7% YoY[52] - The net profit for the year was approximately HK$3,308 million, representing an increase of approximately 8% YoY, while profit attributable to the owners was approximately HK$2,715 million, up 7% YoY[75] Dividends - The Group declared a total dividend per share of 43.0 HK cents, an 8% increase from 2021[16] - The interim dividend increased significantly by 88% to 15.0 HK cents, while the proposed final dividend decreased by 13% to 28.0 HK cents[16] - The Board of Directors recommended a final dividend of 28 Hong Kong cents per ordinary share for 2022, reflecting the Group's strong operating results[58] Production and Sales - The Group operates three premium coking coal mines and three coal preparation plants in Shanxi Province, China[3] - In 2022, the Group produced 5.25 million tonnes of raw coking coal, a YoY increase of 2%, reaching its annual approved production capacity[52] - The sales volume of clean coking coal reached 3.32 million tonnes, an increase of 1% YoY, with self-produced clean coking coal sales volume increasing approximately 4% YoY[52] - The average selling price of clean coking coal reached RMB2,402/tonne, representing a 19% YoY increase[52] - The production of clean coking coal was approximately 3.23 million tonnes in 2022, a 1% increase from 3.20 million tonnes in 2021[63] - Sales volume of self-produced clean coking coal increased by 4% year-on-year after excluding external purchases, with clean coking coal sales accounting for 100% of the Group's revenue[65] Financial Position - Total assets decreased by 5% from HK$24,779,977,000 in 2021 to HK$23,463,484,000 in 2022[19] - Cash and cash equivalents decreased by 6% from HK$6,425,886,000 in 2021 to HK$6,013,623,000 in 2022[19] - Total liabilities decreased by 15% from HK$5,631,759,000 in 2021 to HK$4,786,265,000 in 2022[19] - Total equity decreased by 2% from HK$19,148,218,000 in 2021 to HK$18,677,219,000 in 2022[19] - Current ratio improved by 20% from 2.69 times in 2021 to 3.23 times in 2022[19] - The Group maintained a healthy financial position with free bank balances and cash of approximately HK$6,014 million as of December 31, 2022[82] - As of December 31, 2022, the Group had no borrowings, resulting in a gearing ratio of 0%[128] Market and Economic Conditions - China imported nearly 64 million tonnes of coking coal in 2022, an increase of 16.7% YoY, with Mongolia and Russia accounting for over 70% of the total import volume[49] - Crude steel output in China was approximately 1.01 billion tonnes in 2022, a decrease of 2.1% YoY[49] - The overall price of clean coking coal in 2022 increased by more than 10% YoY due to a low base effect in the first half of 2021[49] - The overall economic recovery in China is expected to be relatively strong, but the steel output may see a slight decline due to the "Dual Carbon" goal[59] - The government set a GDP growth target of 5% for 2023, with the International Monetary Fund forecasting a growth rate of 5.2%[171] Strategic Initiatives - The Company aims to continue expanding its market presence and enhance production capabilities in the coming years[3] - The Group's strategy continues to focus on clean coking coal sales, aligning with long-term market trends[65] - The Group plans to transition production from the upper coal seam to the lower coal seam in 2023, prioritizing safe production during this process[176] - The Group aims to achieve carbon neutrality by 2060 and will accelerate its comprehensive intelligence transformation[176] Corporate Governance and ESG - The Group is committed to enhancing sustainable business practices and establishing a comprehensive ESG work mechanism to create long-term stable social, environmental, and enterprise value[189] - The Audit Committee is responsible for formulating ESG management policies and assessing material ESG-related issues and their risks to the Group's business[190] - The ESG report details the progress and effectiveness of the Group's ESG efforts in 2022, approved by the Board on March 23, 2023[191] - The Group actively improves its corporate governance structure and adheres to integrity management and compliance operations[195]

Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 8,215 million, representing a 16% increase from HKD 7,076 million in 2021[2] - Gross profit increased by 20% to HKD 5,290 million, with a gross margin of 64%, up from 62% in the previous year[2] - Net profit attributable to shareholders reached a record high of HKD 2,715 million, an increase of 7% compared to HKD 2,538 million in 2021[2] - EBITDA for the year was HKD 5,415 million, reflecting a 14% growth from HKD 4,755 million in the prior year[2] - The company reported a total comprehensive income of HKD 2,300 million, down from HKD 2,876 million in 2021[6] - The group generated revenue of HKD 3,798,695,000 from its coal mining segment, representing 46% of total revenue, an increase from 40% in the previous year[19] - The group reported a profit attributable to shareholders of HKD 2,715,374,000, an increase from HKD 2,538,495,000 in the previous year, resulting in basic earnings per share of HKD 0.5375[27] - Net profit for the year was approximately HKD 3.308 billion, representing an 8% year-on-year growth, while profit attributable to owners increased by about 7% to HKD 2.715 billion[44] - The EBITDA for the year was approximately HKD 5.415 billion, up from about HKD 4.755 billion in the previous year[45] Dividends - The company declared a final dividend of HKD 0.43 per share, an increase of 8% from HKD 0.40 per share in 2021[2] - The total dividend declared for the year was HKD 2,374,364,000, significantly higher than HKD 858,812,000 in the previous year[25] - The group plans to distribute a final dividend of HKD 1,414,515,000 for the year ending December 31, 2022, pending shareholder approval[26] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.28 per share, compared to HKD 0.32 for the previous year, resulting in a total dividend of HKD 0.43 per share for the year, up from HKD 0.40 in the prior year[39] - The group plans to distribute the proposed final dividend on July 18, 2023, pending shareholder approval at the annual general meeting on May 31, 2023[39] Assets and Liabilities - Current ratio improved by 20% to 3.23 from 2.69 in the previous year, indicating better liquidity[2] - Total assets decreased to HKD 23,463 million from HKD 24,780 million, a decline of approximately 5%[7] - Net asset value per share decreased by 3% to HKD 3.32 from HKD 3.42 in the previous year[2] - Trade receivables increased to HKD 1,504,189,000 in 2022 from HKD 1,087,425,000 in 2021, representing a growth of 38.4%[29] - The total amount of notes receivable decreased to HKD 1,575,256,000 in 2022 from HKD 2,260,302,000 in 2021, a decline of 30.3%[31] - Trade payables amounted to HKD 236,931,000 in 2022, down from HKD 270,017,000 in 2021, a decrease of 12.2%[33] - The total amount of notes payable increased to HKD 377,806,000 in 2022 from HKD 337,230,000 in 2021, an increase of 12.0%[36] - The total trade receivables and notes receivable amounted to HKD 2,889,765,000 in 2022, compared to HKD 3,144,251,000 in 2021, a decrease of 8.1%[29] Operational Highlights - The group produced approximately 5.25 million tons of raw coking coal in the year ended December 31, 2022, an increase of 2% from 5.17 million tons in the previous year[42] - The production of premium coking coal was approximately 3.23 million tons, reflecting a 1% increase from 3.20 million tons in the previous year[42] - The sales volume of premium coking coal increased by 4% when excluding external purchases, with total sales volume reaching 3.32 million tons, up from 3.30 million tons in the previous year[42] - The group continues to focus on premium coking coal sales as part of its long-term strategy, with premium coking coal sales contributing 100% to the group's revenue[43] Market and Economic Conditions - The GDP growth in China for 2022 was stabilized at 3%, despite various economic challenges[67] - The government set a GDP growth target of 5% for 2023, with international organizations adjusting their growth forecasts for China upwards[68] - The group will continue to monitor economic conditions and adjust operational strategies accordingly[68] Financial Reporting and Compliance - The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards and have received an unqualified audit opinion[10] - The company has adopted the Standard Code as the guideline for directors' securities trading, ensuring compliance for the fiscal year ending December 31, 2022[72] - The annual report for 2022 will be sent to shareholders and made available on the company's website and the Hong Kong Stock Exchange website[73] Employee and Corporate Governance - The group employed 4,446 employees as of December 31, 2022, with annual salary reviews conducted[66] - The chairman expressed gratitude to customers, suppliers, and shareholders for their continued support, highlighting the management and employees' efforts over the past year[74]

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$4,662,983,000, representing a 91% increase compared to HK$2,444,193,000 in 2021[7]. - Gross profit for the same period was HK$3,006,836,000, up 147% from HK$1,217,762,000, with a gross profit margin of 64% compared to 50% in 2021[7]. - Profit for the period increased by 150% to HK$1,936,269,000 from HK$773,609,000[8]. - Profit attributable to owners of the Company rose by 139% to HK$1,606,697,000 from HK$673,389,000[9]. - EBITDA for the period was HK$3,267,024,000, a 140% increase from HK$1,363,222,000[9]. - Basic earnings per share increased by 139% to HK$31.80 from HK$13.33[9]. - The interim dividend per share was HK$15.00, an 88% increase from HK$8.00 in the previous year[9]. - The Company reported total comprehensive income for the period of HK$1,646,154,000, compared to HK$1,161,770,000 in 2021, representing an increase of 41.7%[22]. - Profit for the period was HK$1,606,697, compared to HK$673,389 in the previous period, indicating a significant increase of 138.8%[38]. Assets and Liabilities - Total assets as of June 30, 2022, were HK$25,702,678,000, a 4% increase from HK$24,779,977,000 at the end of 2021[11]. - Total liabilities increased by 22% to HK$6,886,518,000 from HK$5,631,759,000[11]. - Total equity attributable to owners decreased by 2% to HK$18,816,160,000 from HK$19,148,218,000[11]. - Current assets increased to HK$11,995,491,000 from HK$10,573,734,000, indicating a growth of 13.4%[28]. - Cash and cash equivalents as of June 30, 2022, were HK$5,865,117,000, compared to HK$4,410,209,000 at the end of 2021, reflecting a growth of 32.9%[27]. - Total current liabilities increased to HK$5,267,313, up from HK$3,926,321, representing a 34.2% increase year-over-year[31]. - Total non-current liabilities decreased to HK$1,619,205 from HK$1,705,438, a decline of 5.1%[33]. - The net assets of the Company decreased to HK$18,816,160 from HK$19,148,218, a decline of 1.7%[36]. Cash Flow and Investments - Cash generated from operations was HK$3,022,592, with income tax paid amounting to HK$1,143,058, resulting in a net cash inflow from operating activities of HK$1,879,534, compared to HK$1,049,661 in 2021[42]. - Net cash outflow from investing activities was HK$142,546, a substantial decrease from HK$2,036,949 in the previous year, indicating improved cash management[44]. - The company reported a net increase in cash and cash equivalents of HK$1,630,619, compared to a decrease of HK$1,034,034 in the same period of 2021[46]. - Payments to acquire property, plant, and equipment amounted to HK$283,026, slightly higher than HK$277,396 in 2021, reflecting ongoing investment in infrastructure[44]. Production and Sales - The production volume of clean coking coal reached approximately 1.74 million tonnes, representing a year-on-year increase of 20% from 1.45 million tonnes in the same period of 2021[158]. - The average realized selling price of clean coking coal was RMB 2,521 per tonne, a significant increase of 78% compared to RMB 1,415 per tonne in the same period of 2021[157]. - The sales volume of self-produced clean coking coal increased by 16% year-on-year, with clean coking coal sales accounting for 100% of the Group's revenue for the period[159]. - Revenue from sales of clean coking coal for the six months ended June 30, 2022, was HK$4,662,983,000, compared to HK$2,444,193,000 for the same period in 2021, representing an increase of approximately 90.3%[63]. Costs and Expenses - The cost of inventories sold rose to HK$1,656,147,000 in 2022, up from HK$1,226,431,000 in 2021, indicating an increase of 35%[73]. - Staff costs, including directors' emoluments, increased to HK$431,011,000 in 2022, compared to HK$375,437,000 in 2021, reflecting a rise of 14.8%[73]. - Selling and distribution expenses were approximately HK$168 million, an increase of approximately HK$22 million or 15% YoY compared to approximately HK$146 million for the last period[177]. - General and administrative expenses were approximately HK$89 million, a decrease of approximately HK$4 million or 4% YoY compared to approximately HK$93 million for the last period[178]. Taxation - Current tax expense for PRC income tax was HK$872,058,000 for the period, a significant increase from HK$277,004,000 in the previous year[75]. - Income tax expense amounted to approximately HK$813 million, significantly up from approximately HK$283 million in the last period[184]. Dividends - The Group declared an interim dividend of HK 15 cents per ordinary share for the six months ended June 30, 2022, compared to HK 8 cents per share in the same period of 2021[153]. - The total amount of interim dividend for the six months ended June 30, 2022, was HK$757,776,000, based on 5,051,837,842 issued ordinary shares[80]. - The final dividend for the year ended December 31, 2021, was HK$1,616,588,000, compared to HK$454,665,000 for 2020, reflecting a significant increase of 255%[83][84]. Market Conditions - In the first half of 2022, China's GDP growth was 2.5% year-on-year, with a significant decline from 4.8% in Q1 to 0.4% in Q2 due to various economic pressures[200]. - The Group's coal mines operated smoothly during the review period, maintaining stable coal production[191].

Financial Performance - The Group's revenue for the year ended December 31, 2021, was HK$7,075,818, representing a 77% increase compared to HK$3,996,951 in 2020[13] - Gross profit increased to HK$4,394,574, a 135% rise from HK$1,869,207 in the previous year, with a gross profit margin of 62%[13] - Profit for the year reached HK$3,060,831, marking a 158% increase from HK$1,187,283 in 2020[13] - EBITDA for 2021 was HK$4,735,627, up 117% from HK$2,178,672 in 2020[13] - Basic earnings per share rose to 50.25 HK cents, a 144% increase from 20.62 HK cents in 2020[13] - The Group achieved a record profit for the year 2021, with profit attributable to owners reaching HK$2,538,495, representing a 135% increase YoY[21] - The Group recorded a net profit of approximately HK$3,061 million, representing a significant increase of 158% YoY, with profit attributable to the owners of approximately HK$2,538 million, up 135% YoY[67][68] - Gross profit surged by approximately HK$2,526 million or 135% YoY, leading to a gross profit margin of 62%, compared to 47% in the previous year[68][82] Assets and Liabilities - Total assets as of December 31, 2021, were HK$24,779,977, reflecting a 16% increase from HK$21,433,646 in 2020[14] - Total liabilities increased to HK$5,631,759, a 36% rise from HK$4,142,576 in 2020[14] - Total equity attributable to owners was HK$17,300,083, up 9% from HK$15,837,166 in 2020[14] - The Group's current ratio improved to 3.42 times, while the gearing ratio remained stable at 0[14] - As of 31 December 2021, the Group had no borrowings, resulting in a gearing ratio of 0%[106] - The Group maintained free bank balances and cash of approximately HK$6,426 million, a significant increase from approximately HK$4,062 million in the previous year[70] Production and Sales - Raw coking coal production for 2021 was 5.17 million tonnes, an increase of 4% YoY, while sales volume of clean coking coal reached 3.3 million tonnes, up 1% YoY[41] - The average selling price of the Group's main clean coking coal product was RMB2,019 per tonne, reflecting a significant increase of 66% YoY[41] - The production volume of clean coking coal was approximately 3.20 million tonnes, showing a slight decrease of 1% year-on-year[55] - The average realized selling price of clean coking coal increased by 66% year-on-year to RMB 2,019 per tonne, compared to RMB 1,218 per tonne in the previous year[59] - The Group produced approximately 5.17 million tons of raw coking coal in 2021, representing a year-on-year increase of 4%[125] Market Conditions - The average market price for thermal and coking coal in 2021 was 70% to 80% higher YoY due to tight supply and increased demand[40] - The overall average price of coal increased by approximately 70-80% year-on-year, despite a significant drop in prices following government intervention in October 2021[42] - Domestic coking coal prices reached historical highs in 2021, with a significant year-on-year increase, despite a subsequent price drop due to government supply stabilization policies[149] - Coking coal imports fell by 25% YoY due to the impact of the pandemic and geopolitics[148] Dividends and Shareholder Returns - The Board of Directors recommended a final dividend of 32 Hong Kong cents per ordinary share for 2021[47] - Basic earnings per share increased to HK50.25 cents, a significant rise of 144% YoY, due to the increase in profit attributable to the owners and a 4% reduction in the weighted average number of issued shares[68] ESG and Sustainability - The Group is committed to enhancing sustainable business practices and establishing a comprehensive ESG work mechanism to create long-term stable social, environmental, and enterprise value[164] - The Board of Directors is responsible for the Group's ESG strategy and reporting, with the Audit Committee overseeing ESG management policies and strategies[166] - The Group aims to create harmony between society and the environment while promoting sustainable development for all stakeholders[171] - The Group conducted online questionnaire surveys in 2021 to prioritize selected ESG issues based on stakeholder importance[195] - The Group regularly reviews the material issues matrix to ensure its timeliness and appropriateness, adjusting the importance of certain issues as needed[196] Operational Efficiency - The Group plans to continue improving production safety and efficiency while closely monitoring market trends in 2022[46] - The Group aims to enhance production management and cost control to improve profitability and create better value for shareholders[144] - The Group plans to enhance production safety and introduce cutting-edge mining technology to improve efficiency and contribute to sustainable development[155]

[Corporate Information](index=3&type=section&id=CORPORATE%20INFORMATION) This section details the company's board of directors, committee members, and other essential corporate information - The report provides a list of members for the company's board of directors and various committees (executive, audit, nomination, remuneration), along with key corporate information such as the company secretary, auditor, share registrar, and registered office[4](index=4&type=chunk)[5](index=5&type=chunk) [Financial Highlights](index=5&type=section&id=FINANCIAL%20HIGHLIGHTS) The company reported strong revenue and profit growth for the first half of 2021, maintaining a robust financial position Operating Summary for the Six Months Ended June 30, 2021 | Indicator | H1 2021 | H1 2020 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue (HKD million)** | 2,444 | 1,820 | +34% | | **Gross Profit (HKD million)** | 1,218 | 948 | +28% | | **Gross Margin (%)** | 50% | 52% | -2pp | | **Adjusted Gross Margin¹ (%)** | 54% | 52% | +2pp | | **Profit for the Period (HKD million)** | 774 | 585 | +32% | | **Profit Attributable to Owners (HKD million)** | 673 | 549 | +23% | | **EBITDA² (HKD million)** | 1,358 | 1,027 | +32% | | **Basic Earnings Per Share (HK cents)** | 13.33 | 10.35 | +29% | | **Interim Dividend Per Share (HK cents)** | 8.00 | 7.50 | +7% | Financial Position Summary as of June 30, 2021 | Indicator | As of June 30, 2021 | As of December 31, 2020 | Period Change | | :--- | :--- | :--- | :--- | | **Total Assets (HKD million)** | 22,752 | 21,434 | +6% | | Of which: Cash and Deposits (HKD million) | 4,784 | 4,062 | +18% | | **Total Liabilities (HKD million)** | 4,754 | 4,143 | +15% | | **Total Equity (HKD million)** | 17,998 | 17,291 | +4% | | **Equity Attributable to Owners (HKD million)** | 16,408 | 15,387 | +7% | | **Current Ratio (times)** | 2.58 | 2.77 | -7% | | **Gearing Ratio (%)** | 0.03% | – | N/A | [Report on Review of Interim Financial Information](index=7&type=section&id=REPORT%20ON%20REVIEW%20OF%20INTERIM%20FINANCIAL%20INFORMATION) The interim financial information has been reviewed by PwC, concluding that it is prepared in accordance with HKAS 34 - PricewaterhouseCoopers, the auditor, has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[13](index=13&type=chunk) - The review concluded that the auditor found no matters to suggest the interim financial information was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[14](index=14&type=chunk)[16](index=16&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including profit or loss, financial position, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) During the period, revenue increased by **34%** year-on-year to **HKD 2.44 billion**, driven by higher sales volume and prices, with profit attributable to owners growing by **23%** to **HKD 673 million** Key Profit or Loss Statement Data | Item | H1 2021 (HKD thousand) | H1 2020 (HKD thousand) | | :--- | :--- | :--- | | Revenue | 2,444,193 | 1,819,727 | | Gross Profit | 1,217,762 | 948,433 | | Profit Before Income Tax | 1,056,369 | 802,617 | | Profit for the Period | 773,609 | 584,935 | | Profit Attributable to Owners | 673,389 | 548,699 | [Condensed Consolidated Statement of Financial Position](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2021, total assets increased to **HKD 22.75 billion**, with total liabilities at **HKD 4.75 billion** and net assets at **HKD 17.99 billion**, demonstrating a robust financial position Key Financial Position Statement Data | Item | As of June 30, 2021 (HKD thousand) | As of December 31, 2020 (HKD thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 14,889,914 | 14,532,147 | | Total Current Assets | 7,861,809 | 6,901,499 | | **Total Assets** | **22,751,723** | **21,433,646** | | Total Current Liabilities | 3,050,742 | 2,488,195 | | Total Non-current Liabilities | 1,702,806 | 1,654,381 | | **Net Assets** | **17,998,175** | **17,291,070** | [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) As of June 30, 2021, total equity attributable to owners increased to **HKD 16.41 billion**, driven by profit for the period and other comprehensive income, partially offset by dividends - Total comprehensive income for the period was **HKD 1.16 billion**, with **HKD 1.03 billion** attributable to owners[26](index=26&type=chunk) - The company approved and recognized a **final dividend of approximately HKD 455 million** for 2020 during the period, deducted from retained earnings[26](index=26&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=15&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) Net cash inflow from operating activities significantly increased to **HKD 1.05 billion**, while investing activities resulted in a net outflow of **HKD 2.03 billion**, and financing activities a net outflow of **HKD 46.75 million** Key Cash Flow Statement Data | Item | H1 2021 (HKD thousand) | H1 2020 (HKD thousand) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 1,045,603 | 517,285 | | Net Cash Outflow from Investing Activities | (2,032,891) | (1,724,132) | | Net Cash Outflow from Financing Activities | (46,746) | (85,575) | | Net Decrease in Cash and Cash Equivalents | (1,034,034) | (1,292,422) | | Cash and Cash Equivalents at End of Period | 2,411,136 | 2,416,613 | [Notes to the Interim Financial Information](index=18&type=section&id=NOTES%20TO%20THE%20INTERIM%20FINANCIAL%20INFORMATION) This section provides detailed notes to the interim financial information, covering revenue, segment information, dividends, and related party transactions [Note 4: Revenue from Contracts with Customers and Segment Information](index=22&type=section&id=Note%204.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS%20AND%20SEGMENT%20INFORMATION) All revenue is derived from the single operating segment of coking coal mining in China, with refined coking coal sales reaching **HKD 2.44 billion** in H1 2021, a **34%** year-on-year increase - The Group considers its business as a single operating segment: coking coal mining, exploration, production, and sales in China[52](index=52&type=chunk)[55](index=55&type=chunk) Revenue Composition | Item | H1 2021 (HKD thousand) | H1 2020 (HKD thousand) | | :--- | :--- | :--- | | Sales of Refined Coking Coal | 2,444,193 | 1,818,861 | | Sales of Raw Coking Coal | – | 866 | | **Total** | **2,444,193** | **1,819,727** | [Note 10: Dividends](index=27&type=section&id=Note%2010.%20DIVIDENDS) The Board declared an interim dividend of **8 HK cents** per share for 2021, totaling approximately **HKD 404 million**, following the **HKD 455 million** final dividend for 2020 - An interim dividend of **8 HK cents** per ordinary share was declared for 2021, higher than **7.5 HK cents** for the same period in 2020[69](index=69&type=chunk) - The 2020 final dividend of **9 HK cents** per share, totaling **HKD 455 million**, was approved during the period and paid on July 29, 2021[72](index=72&type=chunk)[73](index=73&type=chunk) [Note 22: Related Party Transactions](index=43&type=section&id=Note%2022.%20RELATED%20PARTY%20TRANSACTIONS) Significant related party transactions occurred with Shougang Group, the ultimate controlling shareholder of Shoucheng Holdings, including **HKD 1.12 billion** in refined coking coal sales, representing approximately **46%** of total revenue - Sales of refined coking coal to related party Shougang Group amounted to **HKD 1.12 billion**, a significant increase from **HKD 666 million** in the prior year period[124](index=124&type=chunk) - The company paid **HKD 1.8 million** for office rent and **HKD 1.5 million** for management consultancy fees to Shougang Holdings[127](index=127&type=chunk) [Interim Dividend](index=46&type=section&id=INTERIM%20DIVIDEND) The Board declared an interim dividend of **8 HK cents** per ordinary share for the six months ended June 30, 2021 - The Board declared an interim dividend of **8 HK cents** per ordinary share for the six months ended June 30, 2021[132](index=132&type=chunk) - The interim dividend will be paid on October 28, 2021, to shareholders registered on September 30, 2021[132](index=132&type=chunk)[133](index=133&type=chunk) [Management Discussion and Analysis](index=47&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section provides a comprehensive review of the company's business and financial performance, along with its future outlook [Business Review](index=47&type=section&id=Business%20Review) Raw coking coal production increased by **16%** year-on-year due to higher output from Jinjiazhuang Coal Mine, while refined coking coal sales grew by **11%** despite a slight production decrease Key Operating Data for H1 2021 | Item | Unit | H1 2021 | H1 2020 | Change | | :--- | :--- | :--- | :--- | :--- | | **Production** | | | | | | Raw Coking Coal | million tonnes | 2.61 | 2.25 | +16% | | Refined Coking Coal | million tonnes | 1.45 | 1.50 | -3% | | **Sales Volume** | | | | | | Refined Coking Coal | million tonnes | 1.63 | 1.47 | +11% | | **Average Realized Selling Price (incl. tax)** | | | | | | Refined Coking Coal | RMB/tonne | 1,415 | 1,267 | +12% | - Raw coking coal production growth was primarily due to an **89%** year-on-year increase from Jinjiazhuang Coal Mine after its lower seam operations normalized[139](index=139&type=chunk)[140](index=140&type=chunk) - Refined coking coal sales growth was supported by external purchases of approximately **130,000 tonnes** and sales from inventory of approximately **70,000 tonnes** to meet market demand[141](index=141&type=chunk) [Financial Review](index=50&type=section&id=Financial%20Review) The company achieved strong financial performance in H1 2021, with **34%** revenue growth and **23%** profit growth, maintaining a robust financial position and ample cash flow [Turnover](index=50&type=section&id=Turnover) Turnover significantly increased by **34%** year-on-year to **HKD 2.44 billion**, driven by a **12%** rise in average selling price, **11%** sales volume growth, and a **9.09%** appreciation of RMB against HKD - The strong turnover growth resulted from the combined positive effects of sales volume, price, and exchange rate[144](index=144&type=chunk) - The top five customers accounted for **86%** of total turnover, with the largest customer representing **46%**, indicating high customer concentration[145](index=145&type=chunk) [Cost of Sales](index=52&type=section&id=Cost%20of%20Sales) Cost of sales rose by **41%** year-on-year to **HKD 1.23 billion**, primarily due to external purchases of refined coking coal, increased raw coking coal for sales, and RMB appreciation - External purchases of approximately **130,000 tonnes** of refined coking coal led to an increase in cost of sales of approximately **HKD 181 million**[154](index=154&type=chunk) - The unit production cost of raw coking coal in RMB was **RMB 325/tonne**, a marginal **1%** year-on-year increase, demonstrating effective cost control[156](index=156&type=chunk) [Gross Profit and Gross Profit Margin](index=55&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased by **28%** to **HKD 1.22 billion**, while gross margin slightly decreased to **50%** due to lower-margin external coal purchases; adjusted gross margin, however, improved to **54%** - Excluding the impact of external refined coking coal purchases, the adjusted gross margin was approximately **54%**, higher than **52%** in the prior year period, reflecting improved core business profitability[145](index=145&type=chunk)[160](index=160&type=chunk) [Net Profit and EPS](index=51&type=section&id=Net%20Profit%20and%20EPS) Profit attributable to owners grew by **23%** to **HKD 673 million**, and basic earnings per share increased by **29%** to **13.33 HK cents**, outperforming profit growth due to share repurchases - Net profit growth was primarily driven by a significant increase in gross profit and a net foreign exchange gain of approximately **HKD 66 million**[147](index=147&type=chunk) - Earnings per share increased by **29%**, outpacing profit growth, as the number of issued shares decreased by approximately **5%** year-on-year due to the company's share repurchase in September 2020[148](index=148&type=chunk) [Liquidity and Financial Resources](index=60&type=section&id=Liquidity%20and%20Financial%20Resources) The company maintains a very robust financial position with a current ratio of **2.58 times**, cash and bank deposits totaling **HKD 5.15 billion**, and total free cash resources of approximately **HKD 6.17 billion** as of June 30, 2021 - As of the period end, cash and bank deposits totaled approximately **HKD 5.15 billion**, with a current ratio of **2.58 times**[188](index=188&type=chunk) - Including approximately **HKD 1.39 billion** in available bills receivable, the Group's total free cash resources amounted to approximately **HKD 6.17 billion**[189](index=189&type=chunk) [Future Prospects](index=61&type=section&id=Future%20Prospects) Despite macroeconomic uncertainties and potential steel production controls, coking coal prices are expected to remain high due to tight domestic supply, with the company focusing on safety, efficiency, and smart mining initiatives - Macroeconomically, steel production is expected to decline in the second half of the year, potentially reducing demand for coking coal[200](index=200&type=chunk)[201](index=201&type=chunk) - On the supply side, domestic coking coal supply is unlikely to ease in the short term due to environmental and safety constraints, with prices expected to fluctuate at high levels[201](index=201&type=chunk) - The company's strategic focus is to strengthen safety awareness, introduce advanced mining technologies, and promote smart mining to enhance efficiency, ensure safety, and reduce costs[202](index=202&type=chunk)[203](index=203&type=chunk) [Disclosure of Interests](index=65&type=section&id=DISCLOSURE%20OF%20INTERESTS) This section details the interests of the company's directors, chief executives, and substantial shareholders [Directors' and Chief Executives' Interests](index=65&type=section&id=Directors%27%20and%20Chief%20Executives%27%20Interests) As of June 30, 2021, certain directors held beneficial interests in a small number of company shares, including Mr. Ji Huashi with **700,000 shares** and Mr. Cai Weixian with **220,000 shares** Directors' Shareholdings | Director's Name | Number of Shares Held | Percentage of Issued Shares | | :--- | :--- | :--- | | Ji Huashi | 700,000 | 0.013% | | Cai Weixian | 220,000 | 0.004% | | Ding Rucai | 120,000 | 0.002% | [Substantial Shareholders' Interests](index=67&type=section&id=Substantial%20Shareholders%27%20Interests) As of June 30, 2021, major shareholders included Shougang Group (**33.09%**), Fude Life Insurance (**31.47%**), and Mr. Jiang Jinzhi (**5.60%**), collectively holding approximately **70%** of the company's shares Substantial Shareholders' Shareholdings | Shareholder Name | Number of Shares Held | Percentage of Issued Shares | | :--- | :--- | :--- | | Shougang Group | 1,671,726,490 | 33.09% | | Fude Life Insurance | 1,590,100,000 | 31.47% | | Mr. Jiang Jinzhi | 282,702,904 | 5.60% | [Corporate Governance and Other Information](index=70&type=section&id=CORPORATE%20GOVERNANCE%20AND%20OTHER%20INFORMATION) This section covers the company's compliance with corporate governance codes and the audit committee's review of interim results [Compliance with Corporate Governance Code](index=70&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with most provisions of the Corporate Governance Code during the period, with a minor deviation regarding non-executive directors' fixed terms, addressed by rotational retirement - The company complied with the code provisions of Appendix 14 of the Listing Rules, 'Corporate Governance Code,' except for code provision A.4.1[221](index=221&type=chunk) - The deviation is that non-executive directors are not appointed for specific terms, but the company's articles of association require all directors to retire by rotation at least once every three years[221](index=221&type=chunk)[222](index=222&type=chunk) [Audit Committee Review](index=74&type=section&id=Audit%20Committee%20Review) The Audit Committee reviewed the unaudited interim results and this interim report, which were also reviewed by the independent auditor, PricewaterhouseCoopers - The Audit Committee has reviewed this interim report and the unaudited interim results[233](index=233&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$1,819,727,000, a decrease of 7% compared to HK$1,959,940,000 for the same period in 2019[7]. - Gross profit for the period was HK$948,433,000, down 11% from HK$1,064,516,000 year-on-year, resulting in a gross profit margin of 52%[7]. - Profit attributable to owners of the Company decreased by 14% to HK$548,699,000 from HK$640,388,000 in the previous year[7]. - Adjusted EBITDA for the six months ended June 30, 2020, was HK$1,033,994,000, reflecting a 13% decline from HK$1,184,698,000 in the same period of 2019[7]. - Basic earnings per share for the period were HK$10.35, down 14% from HK$12.08 in the previous year[7]. - Total comprehensive income for the period was HK$214,283,000, significantly lower than HK$1,053,648,000 in the previous year[22]. - The profit for the period was HK$640,388,000, with total comprehensive income amounting to HK$1,034,467,000 for the six months ended June 30, 2020[28]. - The Group reported a profit before income tax of HK$871,294,000 for the six months ended June 30, 2020, compared to HK$895,424,000 for the same period in 2019, reflecting a decrease of approximately 2%[65]. - For the six months ended June 30, 2020, the Group recorded a net profit of approximately HK$585 million, a decrease of 11% YoY[165]. - Profit attributable to the Owners decreased by approximately HK$91 million or 14% YoY to approximately HK$549 million[188]. Assets and Liabilities - Total assets as of June 30, 2020, were HK$21,321,316,000, a decrease of 1% from HK$21,472,710,000 as of December 31, 2019[10]. - Total liabilities rose by 2% to HK$4,521,981,000 from HK$4,426,398,000[10]. - Total equity decreased by 1% to HK$16,799,335,000 from HK$17,046,312,000[10]. - Total current liabilities increased to HK$2,930,042,000 from HK$2,845,954,000 as of December 31, 2019, reflecting a rise of approximately 2.97%[26]. - Non-current liabilities totaled HK$1,591,939,000, slightly up from HK$1,580,444,000, marking an increase of about 0.73%[26]. - The equity attributable to owners of the Company decreased to HK$15,398,367,000 from HK$15,681,580,000, a reduction of approximately 1.80%[26]. - Total cash and cash equivalents decreased to HK$2,416,613,000 as of June 30, 2020, from HK$3,712,383,000 as of December 31, 2019[103]. Cash Flow - Cash generated from operations was HK$814,386,000, with income tax paid amounting to HK$297,101,000, leading to a net cash inflow from operating activities of HK$517,285,000[32]. - The company reported a net cash outflow from investing activities of HK$1,724,132,000, compared to HK$740,751,000 in the previous year[34]. - The net cash outflow from financing activities was HK$85,575,000, a significant increase from HK$5,767,000 in the prior year[36]. - The Group generated a positive cash flow of approximately HK$517 million from operating activities, down from approximately HK$786 million in the same period of 2019[169]. Dividends - Interim dividend per share was HK$7.50, a decrease of 12% compared to HK$8.50 in the same period last year[7]. - The final dividend for the year ended December 31, 2019, was HK$461,260,000, an increase from HK$450,656,000 for 2018, reflecting a dividend of HK8.7 cents per ordinary share compared to HK8.5 cents in 2018[75]. Production and Sales - For the six months ended June 30, 2020, the Group's revenue from clean coking coal sales was HK$1,818,861,000, a decrease of 5.7% compared to HK$1,928,522,000 in the same period of 2019[54]. - Sales of raw coking coal significantly dropped to HK$866,000 from HK$31,418,000 in the previous year, indicating a decline of approximately 97.2%[54]. - The Group's turnover for the six months ended June 30, 2020, was approximately HK$1,820 million, a decrease of approximately HK$140 million or 7% year-on-year[161]. - The production volume of raw coking coal increased by 0.4% YoY, while the production volume of clean coking coal rose by 9% YoY due to optimized washing process techniques[168]. Expenses - Selling and distribution expenses increased by approximately HK$13 million or 10% YoY to approximately HK$137 million, driven by a net increase in sales volume of clean coking coal[181]. - General and administrative expenses remained stable at approximately HK$81 million, including additional costs for anti-epidemic materials[182]. - Other operating expenses significantly decreased by approximately HK$104 million or 95% YoY to approximately HK$6 million, due to the absence of one-off non-cash write-offs from the previous year[183]. Market Conditions - The average realised selling price of clean coking coal decreased by 11% year-on-year to RMB 1,267 per tonne[160]. - The average market prices of clean coking coal dropped by 10% to 17% year-on-year in the first half of 2020[160]. - The decrease in turnover was primarily driven by the drop in average realised selling prices and the depreciation of RMB to HK$ exchange rate by approximately 5% year-on-year[161]. Compliance and Operations - The Group complied with environmental protection regulations and focused on energy saving and emission reduction during the review period[192]. - The Group's coal mines resumed production in mid-February 2020 after passing inspections post-COVID-19 lockdown[192]. - The Group assessed COVID-19 risks and found no material impact on financial performance or position as of June 30, 2020[170].