中广核矿业(01164) - 2024 - 中期财报

Financial Performance - The Group's revenue for the six months ended June 30, 2024, was approximately HK$4,073 million, representing an increase of approximately 39% compared to the corresponding period of 2023[10]. - Profit attributable to the owners of the Company for the Reporting Period was approximately HK$113 million, representing a decrease of approximately 37% compared to the corresponding period of 2023[10]. - Basic earnings per share for the Reporting Period amounted to approximately HK1.49 cents, representing a decrease of approximately 37% compared to the corresponding period of 2023[10]. - The Group achieved a profit of HK$113 million and revenue of HK$4,073 million, representing a decrease of 37% in profit and an increase of 39% in revenue compared to the same period in 2023[28]. - The cost of sales amounted to HK$4,129 million, reflecting a 50% increase from HK$2,747 million in the corresponding period of 2023[55]. - The gross profit margin decreased to -1.39% for the first half of 2024, down from 6.36% in the same period of 2023[49]. - EBITDA for the period was HK$379.27 million, compared to HK$295.66 million in the previous year, indicating a positive trend[49]. - The net profit margin for the first half of 2024 was 2.78%, down from 6.12% in the same period of 2023[49]. - Other operating income increased by 60% to HK$31 million, primarily due to higher interest income and exchange gains[57]. - The company's share of results from associates, specifically Fission, was HK$4.53 million, down from HK$9.31 million in the corresponding period of 2023, reflecting a loss of HK$3.23 million and a gain on deemed disposal of HK$7.76 million[61]. - The company's profit decreased by approximately 37% to HK$113 million compared to the corresponding period of 2023, primarily due to rising income tax expenses[68]. Dividend and Shareholder Returns - The Board has approved the distribution of an interim dividend of HK0.3 cents per ordinary share for the six months ended June 30, 2024, compared to nil for the same period in 2023[10]. - The interim dividend approved for the six months ended June 30, 2024, is HK$0.3 per ordinary share, compared to no dividend in the same period of 2023[164]. Market and Industry Trends - The global nuclear power industry is accelerating, influenced by geopolitical fluctuations and energy security concerns[11]. - The macroeconomic environment in the first half of 2024 has become more volatile, impacting energy supply and demand dynamics[12]. - There is a pronounced imbalance between the supply and demand of natural uranium, which is critical for energy security and independence[12]. - The trend towards carbon neutrality is driving nations to ensure the security and independence of their energy supply[12]. - The UK plans to increase its nuclear capacity to 24 GWe by 2050, which is four times the 2023 level, as part of its roadmap published in January 2024[16]. - India aims to build 18 new nuclear reactors by 2032, which will add 13.8 GWe of new installed capacity[16]. - The US Department of Energy announced a goal to triple nuclear power capacity by 2050, increasing it by 200 GWe[16]. Uranium Market Dynamics - The average spot price of natural uranium in June 2024 was USD 84.38/lb U3O8, a decrease of 7.3% from the beginning of 2024, while the highest spot price in the first half of the year reached USD 106/lb U3O8[20]. - The average long-term price indicator for natural uranium was USD 79.50/lb U3O8 in June 2024, reflecting a 16.9% increase from the beginning of the year[20]. - Global natural uranium production in 2023 was approximately 54,390 tU, representing a 6.3% increase compared to 2022[21]. - The reopening of uranium mines has been below expectations, with Kazatomprom projecting a capacity utilization rate of 83% for 2024, down from a previously announced 90%[24]. Financial Position and Assets - Total assets increased by 14% to HK$7,679 million as of June 30, 2024, compared to HK$6,750 million as of December 31, 2023[69]. - Net current assets rose by 39% to HK$1,148 million as of June 30, 2024, compared to HK$823 million as of December 31, 2023[70]. - The Group's bank balances and cash totaled approximately HK$1,140 million as of June 30, 2024, up from HK$1,017 million as of December 31, 2023, with 97% denominated in USD[75]. - Current liabilities increased by approximately 59% to HK$2,210 million as of June 30, 2024, from HK$1,391 million as of December 31, 2023, primarily due to bank borrowings for business expansion[78]. - Total non-current liabilities amounted to HK$1,524 million as of June 30, 2024, which was basically unchanged from HK$1,479 million as of December 31, 2023[81]. - Total equity of the Group increased by 2% to HK$3,946 million as of June 30, 2024, compared to HK$3,880 million as of December 31, 2023[81]. Operational Highlights - The Group holds a 49% equity interest in Semizbay-U, which produced 477tU in the first half of the year, exceeding the planned target of 471tU with a completion rate of 101%[29]. - The Group holds a 49% equity interest in Ortalyk, which produced 858tU against a planned target of 905tU, achieving a completion rate of 95%[30]. - The Group received HK$201 million in dividends from Semizbay-U, with its share of results amounting to HK$208 million, representing a 195% increase compared to the same period in 2023[29]. - The Group received HK$247 million in dividends from Ortalyk, with its share of results amounting to HK$234 million, reflecting a 481% increase compared to the same period in 2023[30]. Strategic Initiatives - The Company plans to continue enhancing technical support for the PLS project and strengthen communication regarding the environmental impact statement and mining license application[44]. - In the second half of 2024, the Company will focus on expanding its market presence and participating in various marketing activities to enhance brand awareness[44]. - The Company aims to maintain its edge in international natural uranium trading while expanding trade scale and improving profitability[42]. - The company is focusing on market expansion and new product development as part of its strategic initiatives[115]. - Future outlook remains positive with ongoing investments in technology and potential acquisitions to enhance market position[115]. Taxation and Regulatory Environment - Income tax expenses surged by 278% to HK$211 million compared to the corresponding period of 2023, due to a challenging tax environment in Kazakhstan and increased tax policy standards[67]. - The Group did not select the two-tiered profits tax rates regime for Hong Kong entities, continuing to be taxed at a flat rate of 16.5%[158]. - The PRC subsidiary did not have any assessable income for both the six months ended June 30, 2024, and 2023, with a corporate income tax rate of 25% applicable[160]. - Kazakhstan withholding tax on dividends from Semizbay-U is set at 10% for the six months ended June 30, 2024, due to the joint venture's compliance with local tax regulations[161]. - Dividends received from Ortalyk are subject to a 15% Kazakhstan withholding tax, an increase from the previously estimated rate of 5%[161]. Corporate Governance and Compliance - The Audit Committee held one meeting during the Reporting Period to review the financial reporting procedures and internal controls[94]. - The unaudited financial statements for the six months ended June 30, 2024, were reviewed and adopted by the Audit Committee, ensuring compliance with applicable accounting standards and legal requirements[94]. - The Company confirmed that all Directors complied with the Model Code for securities transactions during the Reporting Period[94].