中广核矿业(01164) - 2020 - 中期财报

Financial Performance - The Group's revenue for the reporting period was approximately HK$926 million, representing a decrease of approximately 3$112 million, reflecting a substantial increase of approximately 45% compared to the same period in 2019[13]. - Basic earnings per share for the reporting period amounted to approximately HK1.70 cents, representing an increase of approximately 45% compared to the corresponding period of 2019[13]. - The Group achieved a profit of HK$112 million and revenue of HK$926 million in the first half of 2020, representing a substantial increase of 45% in profit and a slight decrease of 3% in revenue compared to the same period in 2019[23]. - The Group recorded revenue of HK$925.63 million for the six months ended June 30, 2020, a decrease of 2.53$949.64 million in the same period of 2019[43]. - During the reporting period, the Group's profit amounted to HK$112.22 million, representing a significant increase of 44.73$112,222,000, up 44.6% from HK$77,538,000 in 2019[101]. - The profit before taxation for the six months ended June 30, 2020, was HK$126,898,000, compared to HK$83,744,000 for the same period in 2019[137]. Revenue Sources - The Group completed the sale of 303.3tU mine products and 1,154tU (3 million pounds U3O8) in the international market, generating approximately HK$924 million in trading revenue[23]. - The natural uranium trading segment generated revenue of HK$924,056,000, while the property investment segment contributed HK$1,575,000[132]. - Segment profit for natural uranium trading was HK$80,850,000, compared to HK$40,902,000 in the same period of 2019, reflecting a significant increase[137]. Cost and Expenses - The cost of sales decreased by 7.93% to HK$816.74 million from HK$887.09 million in the corresponding period of 2019[45]. - Gross profit margin improved to 11.76% in 2020 from 6.59% in 2019[39]. - EBITDA increased to HK$146.54 million, representing an increase from HK$95.82 million in the previous year[39]. - Other operating income significantly decreased by 58.94% to HK$6.24 million from HK$15.19 million in 2019[46]. - The Group's selling and distribution expenses amounted to HK$4.66 million, representing an increase of 74.09$2.67 million for the corresponding period of 2019[48]. - Administrative expenses amounted to HK$13.67 million, representing an increase of 9.73$12.46 million for the corresponding period of 2019[48]. Assets and Liabilities - The Group's total assets amounted to HK$3,897 million, representing an increase of 25.88$3,095 million as at 31 December 2019[53]. - The Group's total liabilities amounted to HK$1,948 million, representing an increase of 69.25$1,151 million as at 31 December 2019[53]. - As of June 30, 2020, the Group's current liabilities were HK$1,271 million, a significant increase of 162$486 million as of December 31, 2019, primarily due to increases in trade and other payables, loans from a fellow subsidiary, and bank borrowings related to inventory procurement[59]. - The current ratio decreased to 241.11% from 463.66% in the previous period[40]. - The debt to asset ratio increased to 50.00% from 37.19% in the previous period[40]. Cash Flow and Financing - The net cash used in operating activities was HK$973,386,000, compared to HK$72,099,000 for the same period in 2019, indicating a significant increase in cash outflow[111]. - The company completed a financing of USD 10 million in April 2020 to support the preliminary work of the PLS Project's environmental impact assessment and feasibility study[28]. - As of June 30, 2020, the Group has an unutilized borrowing facility of USD 794.14 million to support operations and mitigate cash flow volatility[65]. - The Group has sufficient financial resources for daily operations and does not have seasonal borrowing demands[65]. Market and Industry Trends - The price of natural uranium rose significantly in the first half of 2020, with the spot price reaching a high of USD35.0 per pound in May before slightly declining to USD32.6 per pound by the end of the reporting period[21]. - The demand for nuclear fuel and natural uranium in China is expected to further increase with the ongoing development of the domestic nuclear power industry[18]. - As of June 2020, there were 440 nuclear reactors in operation globally, with 54 under construction, indicating a growing market for nuclear energy[19]. - The US Department of Energy announced a USD230 million Advanced Reactor Exemplary Program to revitalize domestic uranium mining and strengthen investment in advanced nuclear power research and development[17]. Corporate Governance - The Company has established an audit committee in compliance with the Listing Rules and Corporate Governance Code[87]. - The Board consists of two Executive Directors, three Non-Executive Directors, and three Independent Non-Executive Directors as of the report date[92]. - The Company has adopted the Corporate Governance Code and confirmed compliance with all provisions during the reporting period[92]. Shareholder Information - As of June 30, 2020, CGNPC holds 4,467,887,558 shares, representing 67.69% of the shareholding[70]. - CGNPC-URC Development has an interest in 4,288,695,652 shares, accounting for 64.97% of the shareholding[70]. - The weighted average number of ordinary shares for the purpose of basic earnings per share remained constant at 6,600,682,645 shares for both 2020 and 2019[156]. Inventory and Impairment - The inventory of uranium as of June 30, 2020, was HK$2,417,134, an increase of 67.6$1,441,980 as of December 31, 2019[178]. - The Group recognized a reversal of impairment loss of approximately HK$10,847,000 during the period due to the recovery of uranium prices[187]. Financial Instruments and Risks - The Group's sales and purchases were primarily settled in USD and RMB, with no significant foreign exchange risk impacting operations[65]. - The Group did not enter into any financial derivatives for hedging purposes during the reporting period[65].