Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 1,235,649,000, a decrease of 32.5% compared to HKD 1,828,363,000 in 2019[14] - Gross loss for the period was HKD 65,891,000, compared to a gross profit of HKD 188,818,000 in the previous year[14] - The net loss attributable to shareholders for the period was HKD 430,809,000, compared to a profit of HKD 362,051,000 in 2019, representing a significant decline[14] - The basic and diluted loss per share for the period was HKD (5.48), compared to earnings of HKD 4.61 per share in the prior year[14] - Other comprehensive loss for the period amounted to HKD 308,194,000, leading to a total comprehensive loss of HKD 738,246,000[15] - The company reported a loss before tax of HKD (421,422,000) for the six months ended June 30, 2020, compared to a profit in the previous year, indicating a significant downturn in financial performance[26] - The company recorded a total salary expense of HKD 12,805 thousand for the first half of 2020, down from HKD 13,407 thousand in the same period of 2019, indicating a reduction of approximately 4.5%[52] - The adjusted EBITDA for the first half of 2020 was HKD 28,656, compared to HKD 743,246 in the first half of 2019, reflecting a significant decline[67] Revenue Breakdown - The revenue breakdown shows that aluminum sales contributed HKD 387,595,000, coal sales contributed HKD 220,333,000, and oil sales contributed HKD 298,639,000 for 2020[30] - The aluminum segment reported revenue of HKD 389,553,000, while the coal segment generated HKD 253,608,000, indicating a decline in both segments compared to the previous year[26] Assets and Liabilities - Total assets minus current liabilities as of June 30, 2020, is HKD 10,625,610, an increase from HKD 10,593,110 as of December 31, 2019, representing a growth of 0.3%[17] - Non-current liabilities increased to HKD 5,171,107 as of June 30, 2020, from HKD 4,400,361 as of December 31, 2019, reflecting a rise of 17.5%[17] - Total equity decreased to HKD 5,454,503 as of June 30, 2020, down from HKD 6,192,749 as of December 31, 2019, indicating a decline of 11.9%[17] - Cash and cash equivalents decreased to HKD 1,153,996 as of June 30, 2020, from HKD 1,595,429 as of December 31, 2019, a reduction of 27.7%[17] - Current liabilities significantly reduced to HKD 853,230 as of June 30, 2020, from HKD 2,074,900 as of December 31, 2019, a decrease of 58.8%[17] - The company’s total liabilities decreased to HKD 1,002,086,000 as of June 30, 2020, from HKD 1,135,280,000 at the end of 2019, a reduction of about 11.7%[28] Cash Flow and Financing - For the six months ended June 30, 2020, the company reported a net cash outflow from operating activities of HKD (31,950,000), a significant decrease from HKD 338,601,000 in 2019, representing a decline of approximately 109.4%[21] - The company reported financing costs of HKD 88,325,000, down from HKD 151,389,000 in the previous year[14] - The company increased bank borrowings to HKD 1,811,052,000 in 2020, compared to HKD 487,977,000 in 2019, marking an increase of about 271.5%[21] - The company’s bank and other borrowings were valued at HKD 4,811,115 thousand as of June 30, 2020, compared to HKD 5,052,775 thousand at the end of 2019, showing a decrease of approximately 4.8%[54] Market Conditions and Impact - The company experienced significant uncertainty in business prospects due to the COVID-19 pandemic, impacting commodity prices including crude oil, electrolytic aluminum, and coal[61] - The overall economic recovery is expected to be gradual, with oil prices projected to fluctuate between USD 40 and 50 in the second half of 2020[63] - The group plans to implement stricter cost control and cautious investment decisions in response to the uncertain market outlook[66] Shareholder Information - As of June 30, 2020, major shareholders include CITIC Group Limited with 4,675,605,697 shares, representing 59.50% of the total issued share capital[100] - CITIC Projects Management (HK) Limited holds 3,895,083,904 shares, accounting for 49.57% of the total issued share capital[100] - The company has confirmed that all directors have complied with the securities trading code during the reporting period[92] - The company has disclosed that there are no other interests or short positions held by directors or senior management in the company's shares or related securities as of June 30, 2020[97] Compliance and Governance - The company has complied with the corporate governance code, except for a deviation regarding the disclosure of reasons for Mr. Fan's multiple directorships[91] - The audit committee, along with senior management, reviewed the interim report[104] - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS)[106]
中信资源(01205) - 2020 - 中期财报