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北方矿业(00433) - 2018 - 年度财报
NORTH MININGNORTH MINING(HK:00433)2019-04-30 04:01

Financial Performance - The Group recorded a revenue of approximately HK$967,071,000 for the year, representing an increase of approximately 106.37% compared to HK$468,601,000 in 2017[7]. - The loss attributable to owners of the Company was approximately HK$484,008,000, a decrease of approximately 232.03% compared to a loss of HK$145,774,000 in 2017[8]. - The Group recorded a profit from its mining operations of approximately HK$67,132,000 for the year ended December 31, 2018, compared to a loss of approximately HK$25,739,000 in 2017, primarily due to increased molybdenum prices and improved gross profit margins[22]. - The Group's chemical trading operations generated revenue of approximately HK$703,500,000 but incurred a loss of approximately HK$49,805,000 due to the temporary closure of the chemical factory for safety reviews[33]. - The Group's property management operations generated revenue of approximately HK$7,607,000 for the year ended December 31, 2018, representing a decrease of approximately 1.6% compared to the previous year[30]. Mining Operations - The mining operation contributed revenue of approximately HK$233,882,000, with a gross profit of approximately HK$85,699,000 and a gross profit margin of 37%, an increase of 17% from the previous year[14]. - The average selling price of molybdenum concentrate increased to approximately HK$74,266 per tonne from HK$63,416 per tonne in 2017[14]. - The volume of molybdenum concentrate produced was approximately 2,931 tonnes, while the sales volume was approximately 2,841 tonnes[14]. - The potassium feldspar mine has an estimated resource of approximately 63.2 million tonnes of indicated and 40.5 million tonnes of inferred mineral resources, but no revenue was generated as operations are still under development[15]. - The commencement of operations for the potassium feldspar mine is estimated for 2020, contingent on exploitation technology and plant machinery[16]. Financial Position - As of December 31, 2018, the Group had outstanding bank loans and other borrowings amounting to approximately HK$1,347,920,000, up from approximately HK$847,664,000 in 2017[64]. - The Group's gearing ratio increased to approximately 51.03% in 2018 from 31.91% in 2017, primarily due to a higher proportion of interest-bearing bank borrowings[64]. - The current ratio improved to approximately 0.86 in 2018 from 0.74 in 2017, attributed to an increase in loan receivables and other receivables[64]. - The debt to equity ratio rose to approximately 0.99 in 2018 from 0.42 in 2017, calculated based on total liabilities of approximately HK$2,479,025,000 and equity attributable to owners of approximately HK$2,497,615,000[64]. - As of December 31, 2018, the Group's current assets were approximately HK$1,256,594,000, an increase from HK$955,339,000 in 2017, while current liabilities rose to approximately HK$1,466,482,000 from HK$1,284,428,000[66]. Corporate Governance - The Company has a strong focus on corporate governance, with an established audit committee chaired by an independent director[74]. - The Company complied with all applicable provisions of the Corporate Governance Code, except for the separation of roles between the chairman and chief executive officer[147]. - The Board believes that combining the roles of chairman and chief executive officer leads to consistent leadership and efficient decision-making[148]. - The Company has established a board diversity policy to achieve diversity among its directors, which is reviewed annually[154]. - The Company confirmed full compliance with the Model Code for Securities Transactions by Directors during the year ended December 31, 2018[159]. Risk Management - The Group has established a risk management system to identify and respond to economic environment risks, which could materially affect strategy and operations[92]. - The sharp fluctuation in prices of molybdenum concentrate and chemical products reflects changes in supply and demand, impacting the Group's cash flow and revenue significantly[92]. - The Group's safety and environmental management practices are continuously improved to mitigate risks associated with mining operations[95]. - The Group's restructuring and transformation efforts aim to enhance competitiveness and anti-risk capabilities in response to market uncertainties[92]. - The Group has taken initiatives to reduce energy consumption and promote recycling of office supplies, continuing to review its environmental policies[101]. Future Outlook - The molybdenum market is expected to improve in 2019, driven by increased demand from China's steel industry[50]. - The potassium market presents opportunities for future development due to urbanization and agricultural supply-side reform in China[55]. - The Group anticipates a bright future for its security business, although it decided to sell back the security business to former shareholders to mitigate economic risks[56]. - The Group aims to enhance its future financial performance and profitability by expanding its mineral resources and identifying investment opportunities[62]. - The Group is committed to continuous growth and improving operational efficiency across its business[62]. Employee and Shareholder Relations - The Group employed 688 full-time employees as of December 31, 2018, an increase from 637 employees in 2017[70]. - The Group emphasizes the importance of maintaining good relationships with employees and customers, with no significant disputes reported during the year[106]. - Shareholders holding at least one-tenth of the issued share capital can requisition a special general meeting[196]. - The Company Secretary is responsible for forwarding shareholder enquiries to the appropriate executives or Board members[200]. - The Company adopted a Share Option Scheme to attract and retain high-caliber personnel, rewarding contributions to the Group's growth[110].