Financial Performance - The company reported revenue of RMB 457.893 million for the six months ended June 30, 2021, a significant increase from RMB 17.499 million in the same period of 2020, representing a growth of approximately 2,615%[11]. - Gross profit for the same period was RMB 5.507 million, compared to RMB 1.801 million in 2020, indicating a substantial improvement in profitability[11]. - The company incurred an operating loss of RMB 5.896 million for the six months ended June 30, 2021, an improvement from an operating loss of RMB 11.563 million in the prior year[11]. - The company reported a net loss of RMB 7.182 million for the period, compared to a net loss of RMB 11.185 million in the same period of 2020, showing a reduction in losses[11]. - The total comprehensive loss for the six months ended June 30, 2021, was RMB 6,719,000, a decrease from RMB 11,185,000 in the same period of 2020, representing a 40.5% improvement[12]. - The basic and diluted loss per share attributable to equity holders of the company was RMB (0.44), compared to RMB (0.69) in the previous year, indicating a 36.2% reduction in loss per share[12]. - The company reported a net loss attributable to equity holders of RMB 7,152,000 for the six months ended June 30, 2021, an improvement from a net loss of RMB 11,208,000 in the same period of 2020[63]. Revenue Sources - The group’s total revenue for the six months ended June 30, 2021, was RMB 457,893,000[44]. - Coal trading revenue accounted for RMB 455,104,000, compared to RMB 14,611,000 in the previous year, indicating a growth of approximately 3,109%[52]. - For the six months ended June 30, 2021, the Mining segment generated revenue of RMB 2,789,000, while the Trading segment generated RMB 455,104,000[44]. - The financial services segment generated interest income of RMB 2,789,000, slightly down from RMB 2,888,000 in the previous year[52]. Assets and Liabilities - Non-current assets increased to RMB 278,931,000 as of June 30, 2021, from RMB 258,994,000 as of December 31, 2020, reflecting a growth of 7.7%[13]. - Current assets decreased to RMB 196,973,000 from RMB 209,786,000, a decline of 6.1%[13]. - Total liabilities rose to RMB 73,006,000 from RMB 59,163,000, marking an increase of 23.3%[15]. - Cash and cash equivalents decreased to RMB 135,592,000 from RMB 169,139,000, a reduction of 19.8%[21]. - The total equity attributable to equity holders of the company decreased to RMB 402,898,000 from RMB 409,617,000, a decline of 1.8%[15]. Operational Activities - The company has not engaged in any mineral production activities during the reporting period, focusing instead on exploration and resource assessment[9]. - The company is in the process of renewing mining licenses for the 20th project and Baikan Lake project, with applications submitted to relevant government departments[8]. - The processing capacity of the two mineral processing plants is 1,500 tons per day, but no mining or processing activities were conducted during the reporting period[90]. Financial Risks and Governance - The group faces various financial risks, including market risk (foreign exchange, interest rate, and price risks), credit risk, and liquidity risk, with no use of derivatives for hedging or trading purposes[31]. - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and the relevant disclosure requirements of the Hong Kong Stock Exchange[23]. - The company has established an Audit Committee to review and monitor financial reporting processes, internal controls, and risk management systems, consisting of three independent non-executive directors[139]. Share Capital and Management - The company has a total share capital of RMB 137,361,000 with a share premium of RMB 668,768,000 as of June 30, 2021[76]. - The total remuneration for key management personnel decreased from RMB 1,898,000 in 2020 to RMB 1,507,000 in 2021, reflecting a reduction of approximately 20.6%[80]. - The company appointed Mr. Ye Xin as an executive director on July 12, 2021, holding 35,000,000 shares, approximately 2.16% of the issued share capital[134]. Future Outlook and Strategy - The group anticipates 2021 to be a challenging year due to ongoing global pandemic impacts and economic uncertainties, particularly in the second half of the year[116]. - The board maintains a cautiously optimistic outlook for core businesses, including mining, financial services, and coal trading, while seeking collaboration opportunities for exploration permits[118]. - The company is exploring opportunities for cooperation in mining exploration to maximize the economic value of its resources[86]. - The group aims to explore potential acquisitions to capture market opportunities in China and diversify its revenue base[118].
汇力资源(01303) - 2021 - 中期财报