Financial Performance - The company's revenue increased by approximately 70% to about $467.5 million, with gross profit rising by about 52% to approximately $6.7 million in 2020[5]. - The net profit from continuing operations was approximately $0.8 million, a turnaround from a net loss in the previous year[5]. - Revenue from continuing operations increased by approximately 70% to about $467.5 million in the fiscal year 2020, compared to $275.2 million in 2019[35]. - The net profit for the year was approximately $0.8 million, a recovery from a loss of about $10.1 million in 2019, marking a turnaround in financial performance[42]. - The total comprehensive income for the year was $216 thousand, a recovery from a loss of $10,651 thousand in the previous year[184]. - Basic and diluted earnings per share for the year were $0.02, compared to a loss per share of $0.25 in 2019, reflecting a significant improvement in earnings[184]. Iron Ore Supply and Demand - The total iron ore supply increased by approximately 47% to about 4.4 million tons in 2020[5]. - The company sold approximately 4.4 million tons of iron ore in 2020, an increase from 3.0 million tons in 2019, including about 1.5 million tons from Koolan and approximately 2.9 million tons from other suppliers[27]. - The strong demand for steel and iron ore in China contributed to rising iron ore prices, particularly in the last quarter of 2020[6]. - In 2020, China's GDP grew by 2.3%, with record iron ore imports reaching 1,170 million tons, a 9% increase from the previous year[16]. - The company reported that the demand for iron ore significantly rebounded after China lifted lockdowns, driven by strong infrastructure spending[17]. Pricing and Costs - The average unit selling price of iron ore during the reporting period was approximately $106 per ton, up from about $91 per ton in 2019, reflecting strong iron ore prices[30]. - The company faced increased production costs due to rising coking costs and high impurity discounts on iron ore fines, impacting steel production costs[21]. - The gross profit margin decreased during the reporting period due to increased procurement of iron ore from overseas suppliers amid intense market competition[32]. - The average iron ore price during the reporting period was approximately $109 per ton for the Platts IODEX and $122 per ton for the 65% Fe price, reflecting strong market conditions[38]. Financial Position and Assets - The total assets of the company were valued at $135.7 million, while total equity amounted to $32.0 million[9]. - The net debt decreased significantly to $418, compared to $16.4 million in 2019[9]. - The total liabilities decreased to approximately $103.6 million as of December 31, 2020, from $129.6 million in 2019, attributed to repayments and asset sales[45]. - Cash and cash equivalents rose to $15,190 thousand, compared to $12,811 thousand in 2019, marking an increase of 18.6%[186]. Risk Management and Hedging - The company adopted hedging tools, such as iron ore futures or swap contracts, to manage operational risks associated with resource business fluctuations[15]. - The company reported a net loss of approximately $3.9 million from hedging transactions in 2020, compared to a net loss of about $0.1 million in 2019, while recognizing a net gain of approximately $10.6 million from other hedging activities[28]. - The company has successfully managed its trading contracts to minimize business risks associated with variable iron ore supply prices in the fourth quarter of 2020, resulting in no outstanding iron ore futures or swap contracts as of December 31, 2020[29]. Corporate Governance - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring compliance with listing rules[72]. - The company has established a clear separation of responsibilities between the chairman and the CEO to maintain balanced power distribution[75]. - The board is committed to continuous improvement in corporate governance practices[75]. - The company confirmed compliance with the Corporate Governance Code and the standards set forth in the Listing Rules throughout the fiscal year 2020[92]. Strategic Initiatives - The company plans to explore and expand product varieties to enhance long-term financial performance[6]. - The company aims to identify suitable acquisition and collaboration opportunities to support growth[6]. - The company has formed a subsidiary with experienced market partners to enhance resource business development and diversify product offerings[36]. - The company plans to continue exploring and identifying new iron ore and other commodity supplies to diversify product offerings and expand business scale[67]. Market Conditions - The trade conflict between China and Australia led to a decrease in seaborne prices for premium hard coking coal, while domestic coal prices surged due to strong steel consumption[20]. - The company anticipates stable steel demand in China for 2021, driven by a recovery in manufacturing and steel-using industries, although potential government policy changes may exert downward pressure on iron ore prices[26]. - The Chinese government has urged the steel industry to reduce crude steel production as part of its 14th Five-Year Economic Plan, which may impact iron ore consumption[65]. Employee and Stakeholder Relations - The company has implemented measures to strengthen relationships with employees, customers, suppliers, and business partners, recognizing their importance for sustainable development[147]. - The company received approximately $0.2 million in subsidies from the Hong Kong government for eligible employee salary costs during the fiscal year 2020[63]. - The company has established a green office guideline to enhance employees' environmental awareness and capabilities[144].
新矿资源(01231) - 2020 - 年度财报