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北方矿业(00433) - 2019 - 年度财报
NORTH MININGNORTH MINING(HK:00433)2020-06-28 10:12

Financial Performance - For the year ended December 31, 2019, the Group recorded a loss attributable to owners of approximately HK$742,746,000 from continuing operations, representing an increase in loss of approximately 53.46% compared to the previous year[10]. - The Group's revenue from continuing operations was approximately HK$846,587,000, a decrease of approximately 11.20% from HK$953,382,000 in the previous year, primarily due to reduced revenue from chemical trading operations[12]. - The increase in loss was attributed to higher expected credit losses on trade and other receivables, finance costs on bank loans, and other losses[10]. - The Group's chemical trading operations faced a significant decline in revenue, impacting overall financial performance[12]. - The Group recorded a profit from mining operations of approximately HK$9,529,000 in 2019, down from HK$65,347,000 in 2018[27]. Mining Operations - The mining operation contributed approximately HK$268,021,000 in revenue, with sales of molybdenum concentrate accounting for approximately HK$238,793,000, an increase from HK$219,336,000 in 2018[18]. - The volume of molybdenum concentrate produced was about 3,127 tonnes, a slight decrease from 3,257 tonnes in 2018, with an average selling price of approximately HK$73,166 per tonne[18]. - The gross profit from mining operations was approximately HK$60,793,000, with a gross profit margin of 22.68%, down from 35.6% in the previous year, mainly due to increased exploration costs[18]. - The Group's mining operations are primarily focused on the exploitation, exploration, and production of molybdenum concentrate in the PRC[17]. - Molybdenum concentrate production was approximately 3,127 tons in 2019, with an average selling price of HK$73,166 per ton, compared to 3,257 tons and HK$74,266 per ton in 2018[21]. - Mining operations generated revenue of approximately HK$268,021,000 in 2019, an increase from HK$242,232,000 in 2018, with HK$238,793,000 from molybdenum sales[21]. - Gross profit margin decreased to 22.68% in 2019 from 35.6% in 2018, primarily due to increased exploration costs per ton from HK$47,911 to HK$66,270[21]. - As of December 31, 2019, major assets in mining operations included mining rights and property, plant, and equipment valued at approximately HK$993,738,000 and HK$1,771,832,000, respectively[28]. - Impairment loss of approximately HK$580,115,000 was recognized for the potassium feldspar mine as of December 31, 2019[30]. Chemical Trading Operations - Chemical trading operations generated revenue of approximately HK$571,567,000 in 2019, down from HK$703,543,000 in 2018, with a loss of approximately HK$37,886,000[33]. - The Group's chemical trading operations faced a significant decline in revenue, impacting overall financial performance[12]. Property Management - Revenue from property management operations was approximately HK$6,999,000 in 2019, a decrease of 7.99% from HK$7,607,000 in 2018[32]. Economic Outlook - The Group anticipates significant downward pressure on the Chinese economy due to the COVID-19 pandemic, weakened domestic consumption, and a sharp drop in tourist arrivals[45]. - The Group remains confident in long-term growth prospects in China despite temporary disruptions caused by the pandemic[45]. - The demand for molybdenum in China is expected to continue increasing, driven by the transformation of the steel industry towards high-quality special steel[46]. - The potassium market faces oversupply, but urbanization and agricultural reforms in China are creating opportunities for modern agricultural services and quality products[47]. - The chemicals manufacturing industry is under short-term operational pressure due to stringent regulatory requirements, but companies with competitive advantages in environmental protection are expected to benefit[53]. Strategic Initiatives - The Group plans to invest in safety and environmental protection while enhancing production efficiency and formulating effective marketing strategies[53]. - The Group aims to broaden its revenue base by identifying investment opportunities and expanding mineral resources[54]. - The Group is committed to continuous growth and improving future financial performance and profitability[54]. Legal and Compliance Matters - The Company received a winding up petition in Hong Kong for an indebted sum of HK$170,492,494.31 on 27 May 2019[55]. - A Settlement Agreement was reached on 7 June 2020, leading to the dismissal of the Hong Kong Petition on 22 June 2020[55]. - The Bermuda Court granted an adjournment of the winding up petition to 1 May 2020 to allow for a creditors' scheme of arrangement[61]. - The Bermuda legal representative filed a summons to withdraw the winding up petition on 10 June 2020[62]. - The Company has engaged in negotiations to settle both the Hong Kong and Bermuda petitions[55][60]. Financial Position - The Group recorded a cash outflow of approximately HK$96,628,000 in 2019, compared to an inflow of approximately HK$106,799,000 in 2018[80]. - As of December 31, 2019, the Group had outstanding bank loans and other borrowings amounting to approximately HK$1,381,445,000, an increase from approximately HK$1,347,920,000 in 2018[80]. - The Group's gearing ratio increased to approximately 26.77% as of December 31, 2019, up from 21.15% in 2018[80]. - The current ratio decreased to approximately 0.72 as of December 31, 2019, compared to approximately 0.86 in 2018[80]. - The debt to equity ratio rose to approximately 1.42 as of December 31, 2019, from approximately 0.99 in 2018[80]. - Total liabilities were approximately HK$2,497,071,000 as of December 31, 2019, compared to approximately HK$2,479,025,000 in 2018[80]. - Equity attributable to owners of the Company was approximately HK$1,754,125,000 as of December 31, 2019, down from approximately HK$2,497,615,000 in 2018[80]. - The Group's current assets included cash and cash equivalents of approximately HK$18,446,000, down from HK$122,533,000 in 2018, indicating a decrease of about 85%[83]. - Current liabilities increased to approximately HK$1,719,950,000 in 2019 from HK$1,466,482,000 in 2018, indicating a rise of about 17.3%[83]. - The equity attributable to owners of the Company decreased to approximately HK$1,754,125,000 in 2019 from HK$2,497,615,000 in 2018, reflecting a decline of approximately 29.7%[83]. Corporate Governance - The Group's compliance with relevant laws and regulations is addressed in the "Report of the Directors" and "Corporate Governance Report"[119]. - The Company has complied with all relevant laws and regulations that significantly impact its business and operations, with no material breaches reported during the year[134]. - The Company has established a risk management system to identify, analyze, evaluate, and respond to risks, particularly in the mining, property management, and chemical trading sectors, which are subject to significant economic environment risks[120]. Shareholder Information - As of December 31, 2019, the total number of shares available for issue under the Share Option Scheme was 1,199,761,670, representing 5.58% of the issued shares of the Company[164]. - The Company adopted a Share Option Scheme on May 25, 2011, to recruit and retain high-caliber personnel, with a total of 1,300,261,670 shares available for issue at that time, approximately 10% of the issued share capital[161]. - The maximum number of shares issued upon exercise of options granted to each eligible person must not exceed 1% of the shares in issue[167]. - The subscription price for shares under the Share Option Scheme must not be less than the highest of the closing price on the offer date, the average closing price for the preceding five business days, or the nominal value of a share[177]. - The Share Option Scheme became effective on May 25, 2011, and will remain in force for a period of 10 years[178].