Financial Performance - The overall profit for the resource investment segment was HKD 63,356,000 for the fiscal year ending June 30, 2020[12]. - The main investment and financial services segment recorded a solid profit of HKD 57,851,000[12]. - The company reported a net loss of HKD 429,401,000, primarily due to a non-cash impairment loss of HKD 580,014,000 related to an investment in Mount Gibson Iron Limited[12]. - For the fiscal year ending June 30, 2020, the company reported a net loss attributable to shareholders of HKD 429,401,000, compared to a net profit of HKD 608,432,000 for the fiscal year ending June 30, 2019[15]. - The company's main strategic investments generated a share of profit of HKD 145,377,000 in the fiscal year 2020, down from HKD 271,659,000 in the previous fiscal year[16]. - The commodity trading business incurred a loss of HKD 5,912,000 in fiscal year 2020, compared to a loss of HKD 3,808,000 in the previous year[37]. - The major investments and financial services division reported a profit of HKD 57,851,000, an increase from HKD 47,371,000 in fiscal year 2019[38]. Market Conditions - Iron ore prices fluctuated, reaching a recent high of USD 120 per ton at the beginning of the fiscal year, but remained weak for most of the year until recovering at the end of June 2020[12]. - Global economic conditions were severely impacted by the COVID-19 pandemic, with GDP figures declining by 30% to 40% in major economies during March and April 2020[8]. - Geopolitical tensions and uncertainties from the COVID-19 pandemic are expected to create a bumpy outlook for the global economy[10]. - The global economic outlook remains uncertain due to the ongoing COVID-19 pandemic, with potential recovery dependent on vaccine development and government support measures[65]. Investment Strategy - The company identified opportunities in selected commodities, particularly precious metals, amidst the challenging market environment[12]. - The company plans to regularly review its investment strategy to mitigate risks associated with market fluctuations, including commodity prices and geopolitical conditions[63]. - The company will continue to adopt a defensive and prudent investment strategy in the short term while seeking high-quality investment opportunities that will generate substantial long-term returns[66]. - The company has not made any significant investments or acquisitions during the fiscal year ending June 30, 2020, nor does it have any major capital asset plans[59]. Shareholder Returns - The company declared an interim dividend of HKD 0.10 per share for the fiscal year 2020 despite the net loss[13]. - The company declared an interim dividend of HKD 0.10 per share for the year ending June 30, 2020, consistent with the interim dividend for the previous year[91]. - The company remains committed to delivering shareholder returns despite the challenges faced during the fiscal year[13]. Cash and Reserves - The company held significant cash reserves of AUD 423 million, equivalent to AUD 0.36 per share, as of the end of the fiscal year 2020[18]. - The company plans to utilize approximately HKD 244,000,000 to enhance its strength in the resource sector[42]. Operational Performance - Mount Gibson recorded a sales volume of 4.9 million tons and a net profit after tax of AUD 84 million for the fiscal year 2020[18]. - The cash cost per ton for Mount Gibson in the fiscal year 2020 was AUD 72, with a target cash cost of AUD 60 to 65 per ton for the fiscal year 2021[18]. - The Renison mine produced 3,591 tons of tin in the fiscal year 2020, with an average tin price of AUD 21,466 per ton, down 13% year-on-year[24]. - Northern Star produced 905,000 ounces of gold in fiscal year 2020, with a target of 1 million ounces for fiscal year 2021, representing a 10% year-on-year growth[29]. - Westgold Resources produced 235,150 ounces of gold in fiscal year 2020, an 8% decrease from the previous year, with a target of 270,000 to 300,000 ounces for fiscal year 2021[30]. Corporate Governance - The company is committed to maintaining high levels of corporate governance to enhance shareholder value[156]. - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors[158]. - The company has adopted improved corporate governance procedures and complied with applicable code provisions for the fiscal year ending June 30, 2020[157]. - The board is responsible for annually reviewing the effectiveness of the group's risk management and internal control systems, which include financial, operational, and compliance monitoring[198]. Risk Management - The group has established systems and procedures to identify, assess, and manage risks associated with its business activities[198]. - The internal audit department reports to the chairman of the board and the Audit Committee, providing independent assessments of the adequacy and effectiveness of the risk management and internal control systems[199]. - The board believes that the risk management and internal control systems are effective and sufficient for achieving the company's objectives[198]. Related Party Transactions - The group has engaged in related party transactions, complying with the disclosure requirements under the listing rules[136]. - The independent non-executive directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[146].
亚太资源(01104) - 2020 - 年度财报