Financial Performance - For the six months ended June 30, 2021, the Group recorded a revenue of approximately HK$94,591,000, a significant decrease of approximately 92% compared to HK$1,224,963,000 in the corresponding period of 2020[7] - Gross profit for the same period was approximately HK$1,635,000, representing a decrease of approximately 88% from HK$13,250,000 in the 2020 period[7] - The net loss for the period decreased to approximately HK$157,000, compared to a loss of approximately HK$3,758,000 in the 2020 period, mainly due to an increase in the share of results of an associate by approximately HK$6,031,000[7] - Revenue for the six months ended June 30, 2021, was HK$94,591,000, a decrease of 92.3% compared to HK$1,224,963,000 for the same period in 2020[84] - Gross profit for the period was HK$1,635,000, down from HK$13,250,000, reflecting a significant decline in profitability[84] - Loss attributable to owners of the Company for the period was HK$157,000, compared to a loss of HK$3,758,000 in the previous year[84] - Total comprehensive income for the period attributable to owners of the Company was HK$7,970,000, a recovery from a comprehensive loss of HK$16,163,000 in the prior year[84] - Basic and diluted loss per share was HK(0.03) cent, compared to HK(0.77) cent for the same period last year[84] Expenses and Costs - Selling and distribution expenses decreased by approximately 60% to approximately HK$850,000 due to reduced revenue and transportation costs[17] - Administrative expenses increased by approximately 20% to approximately HK$10,901,000, attributed to additional professional fees related to inventory impairment reviews[18] - The cost of sales was approximately HK$92,956,000, also down about 92% from HK$1,211,713,000 in the same period of 2020[19] - Other income and gains increased by approximately 28% to approximately HK$1,591,000, primarily from interest income[16] Business Strategy and Operations - The Group has ceased all supply chain business activities and focused on uranium products trading, which was impacted by market fluctuations during the period[13] - The Group is actively seeking high-quality uranium resource projects to complement its parent group's development in the nuclear energy sector[8] - Discussions with the Mongolian Authority are ongoing to resolve issues related to the expiration of exploration licenses for uranium resources[8] - The Group plans to cease the supply chain business and focus on uranium products trading, seeking high-quality uranium resources projects[25] - The Group will continue discussions with the Mongolian Authority regarding the exploration licenses for its uranium resources project in Mongolia[25] Financial Position and Cash Flow - The Group recorded a net cash outflow of approximately HK$28,358,000 during the period, compared to approximately HK$31,337,000 in the same period of 2020, primarily due to the repayment of bank borrowings[29] - Cash on hand and bank balances decreased from approximately HK$144,354,000 as of December 31, 2020, to approximately HK$115,915,000 as of June 30, 2021[29] - Total shareholders' funds increased from approximately HK$273,591,000 as of December 31, 2020, to approximately HK$281,653,000 as of June 30, 2021, mainly due to total comprehensive income during the period[29] - The gearing ratio decreased to 0.50 as of June 30, 2021, down from 0.54 as of December 31, 2020, due to a decrease in bank borrowings[29] - The Group's financial position remained healthy despite the net cash outflow during the period[29] - The decrease in bank borrowings contributed to the improvement in the gearing ratio, indicating a stronger balance sheet[29] Corporate Governance and Compliance - The Company complied with the Corporate Governance Code throughout the Period, with some exceptions regarding the timing of audited results and annual report[40] - The Audit Committee has reviewed the Group's interim results and accounting principles for the Period[48] - The Board of Directors does not recommend the payment of an interim dividend for the Period, consistent with the previous year[38] Trading and Market Conditions - The trading of the company's shares has been suspended since April 30, 2021, due to failure to publish periodic financial information, and will remain suspended until further notice[74] - The company is taking steps to resolve issues causing the trading suspension and aims to comply with the Listing Rules to resume trading as soon as practicable[69] - The company will publish further announcements to keep shareholders and potential investors informed of its status and developments[75] Legal and Investigative Matters - The company reported approximately HK$17 million of impaired inventory related to suspected fraud involving a supplier[73] - The company will cooperate with the police in the investigation of the suspected fraud case[73] - The company is in discussions with the lender regarding a waiver for the loan covenant breach due to the reorganization[72] Shareholding and Ownership - As of the date of the report, the Company was owned approximately 66.72% by CNNC Overseas Uranium Holding Limited, a direct wholly owned subsidiary of CNNC[31] - The controlling shareholder, China National Uranium Co., Ltd, has reduced its shareholding in the company from 100% to approximately 79.46% following a recent reorganization[72]
中核国际(02302) - 2021 - 中期财报