Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 1,828,363,000, a decrease of 14.8% compared to HKD 2,145,175,000 in 2018[16] - Gross profit for the same period was HKD 188,818,000, down 64.3% from HKD 529,335,000 in 2018[16] - The net profit attributable to shareholders for the period was HKD 362,051,000, a decline of 31.6% from HKD 529,125,000 in 2018[16] - The basic and diluted earnings per share for the period were HKD 4.61, down from HKD 6.73 in 2018[16] - Operating cash flow for the six months ended June 30, 2019, was HKD 338,601,000, a decrease of 24.3% from HKD 446,045,000 in 2018[23] - The company reported a pre-tax profit of HKD 381,177 for the first half of 2019, compared to HKD 555,510 in 2018, reflecting a decrease of 31.4%[48] - Adjusted EBITDA for the period was HKD 1,113,997,000, down 15.8% from HKD 1,322,853,000 year-on-year[88] - Shareholders' profit for the period was HKD 362,051,000, a decline of 31.6% from HKD 529,125,000 in the previous year[88] Income and Expenses - The company reported a significant increase in other income and gains, totaling HKD 81,519,000, compared to HKD 54,740,000 in the previous year[16] - The financing costs for the period were HKD 151,389,000, an increase from HKD 132,756,000 in 2018[16] - Interest income increased to HKD 20,892 in 2019 from HKD 14,829 in 2018, marking a growth of 40.5%[46] - The group recognized an impairment provision of HKD 86,814 for property, plant, and equipment in 2018, which was not repeated in 2019[48] - The group recognized impairment provisions of HKD 86,800,000 and HKD 13,100,000 for capital projects and mining assets related to the Codrilla project, which is deemed economically unfeasible[93] Assets and Liabilities - Total assets less current liabilities decreased to HKD 10,596,703,000 from HKD 10,666,075,000[19] - Non-current assets increased to HKD 9,619,108,000 from HKD 9,510,875,000[19] - Current assets decreased to HKD 3,688,757,000 from HKD 4,168,872,000, with cash and cash equivalents rising to HKD 2,047,839,000 from HKD 1,921,169,000[19] - Current liabilities decreased to HKD 2,711,162,000 from HKD 3,013,672,000, primarily due to a reduction in bank borrowings[19] - Non-current liabilities decreased to HKD 4,412,109,000 from HKD 4,612,057,000[19] - Total equity increased to HKD 6,184,594,000 from HKD 6,054,018,000[19] - Total assets as of June 30, 2019, were HKD 4,829,633, down from HKD 5,186,981 at the end of 2018, a decrease of 6.9%[42] - The company's total liabilities decreased to HKD 1,022,456 from HKD 1,209,912, a reduction of 15.5%[42] Cash Flow and Financing - Cash and cash equivalents at the end of the period rose to HKD 2,047,839,000, up 22.0% from HKD 1,678,266,000 in the previous year[23] - The company received dividends from associates amounting to HKD 318,524,000, an increase of 57.5% compared to HKD 202,314,000 in 2018[23] - New bank borrowings totaled HKD 487,977,000, which is a 135.0% increase from HKD 207,093,000 in the prior year[23] - The company repaid bank borrowings of HKD 1,125,820,000, which is a significant increase from HKD 442,661,000 in 2018[23] - The total cash inflow from operating activities was HKD 338,601,000, reflecting a decrease in operational efficiency compared to the previous year[23] - The group’s total debt as of June 30, 2019, was HKD 5,582,800,000, which includes unsecured bank borrowings of HKD 1,682,800,000 and unsecured other borrowings of HKD 3,900,000,000[111] Business Segments - The company operates four business segments: electrolytic aluminum, coal, import/export goods, and crude oil, with performance monitored for resource allocation decisions[39] - The aluminum segment recorded a loss of HKD 43,400,000, compared to a profit of HKD 24,900,000 in the same period last year, due to a 20% drop in average selling prices despite a 14% increase in sales volume[91] - The group recorded profits in all segments except for electrolytic aluminum, with significant contributions from the Karazhanbas oil field in Kazakhstan, the Yue Dong oil field in China, and Alumina Limited (AWC)[83] - The group’s coal business reported revenue of HKD 318,500,000, a decrease of 24% from HKD 420,900,000 in 2018, with a segment profit of HKD 9,200,000, down 91% from HKD 98,400,000 in 2018[92] - The import and export segment generated revenue of HKD 430,400,000, a decline of 2% from HKD 439,100,000 in 2018, while segment profit increased by 1% to HKD 29,900,000[94] Shareholder Information - The company declared a distribution to shareholders amounting to HKD 275,020,000[20] - The company did not declare an interim dividend for the period, consistent with 2018[51] - CITIC Group holds 4,675,605,697 shares, representing 59.50% of the total issued share capital of the company[121] - CITIC Projects Management (HK) Limited owns 3,895,083,904 shares, accounting for 49.57% of the total issued share capital[121] - The company’s issued and fully paid ordinary shares remained at 7,857,727,149 shares as of June 30, 2019, consistent with the figure as of December 31, 2018[66] Future Outlook and Strategies - The group plans to continue cost control measures in the second half of 2019 to mitigate operational pressures from declining oil prices[87] - The group aims to explore growth opportunities in crude oil reserves through geological research and development plan adjustments[87] - The group plans to resume drilling activities in the Oseil area and exploration in the Lofin area after the revised production sharing contract takes effect in November 2019[99] - The group will continue to seek quality investment opportunities to optimize its business portfolio and enhance shareholder returns[87] Miscellaneous - The company has adopted HKFRS 16, which requires all leases to be recognized on the balance sheet, impacting the accounting treatment of leases[25][29] - The company has not yet applied new and revised HKFRS standards that may lead to changes in accounting policies, with potential impacts on financial performance still under evaluation[38] - The mid-term report has been reviewed by the audit committee along with the senior management of the company[127] - Investor relations contact details include a telephone number of (852) 2899 8200 and an email address ir@citicresources.com[128] - The company is located at Suites 6701-02 & 08B, 67/F, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong[129]
中信资源(01205) - 2019 - 中期财报