Financial Performance - The company reported revenue from resource operations of approximately $248.6 million for the first half of 2021, representing a growth of about 51% compared to $165.0 million in the same period last year[6]. - Gross profit increased by approximately $4.1 million year-on-year, reaching $8.6 million during the reporting period[6]. - Net profit for the period was approximately $1.2 million, slightly up from $1.0 million in the previous year[6]. - EBITDA for the first half of 2021 was $4.3 million, compared to $3.8 million in the same period of 2020[6]. - Revenue from continuing operations increased by approximately 51% to about $248.6 million, compared to $165.0 million in the same period last year[19]. - Profit from continuing operations was approximately $1.2 million, up from about $1.0 million in the same period last year[19]. - The total customer contract revenue for the group was $217.4 million for the six months ended June 30, 2021, compared to $159.9 million for the same period in 2020, reflecting a significant increase in revenue[32]. - Revenue from continuing operations for the six months ended June 30, 2021, was $248,608 thousand, an increase of 46.5% compared to $165,017 thousand for the same period in 2020[55]. - Gross profit for the same period was $8,639 thousand, up from $4,501 thousand, reflecting a gross margin improvement[55]. - The net profit attributable to the company's shareholders for the six months ended June 30, 2021, was $1,211 thousand, compared to $1,049 thousand for the same period in 2020, representing a 15.5% increase[56]. Market Conditions - Future business performance may be impacted by government policies in China, including low-carbon initiatives and directives to reduce steel production[5]. - The global steel demand is projected to grow by approximately 5.8% in 2021, with China being the largest consumer of iron ore[14]. - China's GDP grew by approximately 12.7% in the first half of 2021, indicating a strong economic recovery[14]. - The Chinese government plans to reduce steel production by 236 million tons from 2021 to 2025, which may impact iron ore consumption and imports[15]. - Iron ore prices reached historical highs in May 2021, with CFR North China 62% iron ore price rising to approximately $233 per ton[18]. - The spot market price of the Platts IODEX fell significantly to about $150 per ton, representing a decline of over 30% from the peak in May 2021[48]. - China's steel production is expected to be maintained at 2020 levels in 2021 to control carbon emissions, despite a nearly 12% increase in steel production in the first half of 2021 compared to the same period in 2020[48]. Operational Challenges - The average grade of iron ore sold was approximately 58% iron, down from about 65% iron in the same period last year[19]. - The company faced higher transportation costs due to rising shipping indices and fuel costs, influenced by COVID-19 related restrictions[22]. - The company purchased and sold approximately 1.5 million tons of iron ore during the reporting period, down from about 2.2 million tons in the same period last year[19]. - The average unit selling price of iron ore during the reporting period was approximately $166 per ton, compared to $75 per ton in the same period last year, reflecting a significant increase[21]. - The company recognized a provision for loss-making contracts amounting to $1.632 million as of June 30, 2021, reflecting the anticipated cash flow deficits from certain contracts[68]. Financial Position - Total assets as of June 30, 2021, amounted to $146.8 million, an increase from $135.7 million as of December 31, 2020[6]. - The total liabilities of the group as of June 30, 2021, were approximately $113.6 million, up from $103.6 million as of December 31, 2020, mainly due to an increase in trade payables by approximately $20.2 million[29]. - The total equity of the group increased to approximately $33.2 million as of June 30, 2021, from $32.0 million as of December 31, 2020, primarily due to a net profit of approximately $1.2 million during the reporting period[30]. - The group maintained a cash and cash equivalents balance of approximately $12.7 million as of June 30, 2021, down from $15.2 million as of December 31, 2020, representing about 9% of total assets[36]. - As of June 30, 2021, the group had interest-bearing bank and other borrowings of approximately $6.0 million, a decrease from $20.5 million as of December 31, 2020, resulting in a net cash position of approximately $10.6 million[37]. - The group’s current ratio remained stable at approximately 1.1 as of June 30, 2021, consistent with the ratio as of December 31, 2020[37]. Risk Management - The company continues to use hedging tools to manage operational risks associated with resource business fluctuations[10]. - The group recognized a net gain of approximately $0.3 million from hedging transactions during the reporting period, compared to a net loss of approximately $0.6 million in the same period last year[41]. - The group confirmed a net gain of approximately $10.7 million in sales costs from hedging, compared to approximately $5.0 million in the same period last year[41]. - The group will continue to implement prudent measures to mitigate adverse impacts on its operations due to recent price fluctuations in the iron ore market[49]. Corporate Governance - The audit committee, consisting of independent non-executive directors, has reviewed the unaudited interim results and financial statements for the reporting period[118]. - The company has adopted all applicable code provisions of the Corporate Governance Code during the reporting period[114]. - The company has not appointed a CEO during the reporting period, with responsibilities shared among an executive director and the management team[115]. Shareholder Information - As of June 30, 2021, major shareholders include Mai Siu-Han with 1,149,744,000 shares (28.74%) and Shougang Group with 1,098,570,000 shares (27.46%)[121]. - Fast Fortune Holdings Limited holds 360,000,000 shares, representing 9.00% of the total shares[121]. - Plus All Holdings Limited owns 728,570,000 shares, accounting for 18.21% of the total shares[121]. - The company maintains a stable shareholder structure with significant control by major shareholders[121].
新矿资源(01231) - 2021 - 中期财报