Revenue and Profitability - Revenue from continuing operations increased by approximately 5.4% to RMB 447.9 million for the six months ended June 30, 2021, compared to RMB 424.8 million for the same period in 2020[38]. - Gross profit from continuing operations rose by approximately 29.3% to RMB 124.3 million for the six months ended June 30, 2021, up from RMB 96.2 million in the prior year[38]. - Loss attributable to owners of the parent from continuing operations decreased by approximately 14.3% to RMB 90.1 million for the six months ended June 30, 2021, compared to RMB 105.2 million for the same period in 2020[38]. - Revenue increased by approximately 5.4% to about RMB 447.9 million, driven by a rise in the average selling price of self-produced anthracite coal, which increased by approximately 14.7% to RMB 385.9 per ton[47]. - Revenue from the sale of processed coal increased from approximately RMB 191.4 million to about RMB 219.3 million, accounting for 49.0% of total revenue during the reporting period[48]. - Total gross profit increased by approximately 29.3% to about RMB 124.3 million, with the gross profit margin rising from approximately 22.6% to 27.8%[59]. - Loss from continuing operations decreased from approximately RMB 103.8 million to about RMB 91.9 million during the reporting period, primarily due to an increase in gross profit of approximately RMB 28.1 million and a reduction in administrative expenses of about RMB 4.7 million[60]. - Loss attributable to equity holders of the parent company decreased from approximately RMB 105.2 million to about RMB 90.1 million during the reporting period[62]. - The company reported a net loss attributable to the owners of the parent company for the period was RMB 92,224 thousand, compared to RMB 106,853 thousand in the same period last year, indicating a reduction in losses[118]. Production and Sales - The average selling price of coal products increased compared to the same period in 2020, but the growth rate was lower than expected due to complex geological conditions affecting production[42]. - The overall demand for coal remained strong in the first half of 2021, driven by growth in key downstream industries, particularly thermal power generation[40]. - The total production of the group during the reporting period was approximately 0.85 million tons, with confirmed and inferred total reserves of approximately 169.85 million tons as of June 30, 2021[43]. - Sales volume of self-produced anthracite coal decreased by approximately 7.1% from about 1.26 million tons to approximately 1.17 million tons due to complex geological conditions and stricter safety regulations[47]. - The average price of port thermal coal was approximately RMB 807.0 per ton for the first half of 2021, representing a year-on-year increase of about 50.6%[40]. Financial Position and Liabilities - The group's net current liabilities increased from approximately RMB 1,337.4 million to about RMB 1,481.5 million between December 31, 2020, and June 30, 2021[66]. - The group's total outstanding short-term and long-term bank borrowings amounted to approximately RMB 1,877.7 million as of June 30, 2021[68]. - The debt-to-asset ratio increased from 136.1% to 144.2% between December 31, 2020, and June 30, 2021, due to losses recorded during the reporting period[75]. - The company reported a net current liability of RMB 1,481.5 million and shareholder deficit of RMB 645.7 million as of June 30, 2021, raising concerns about the company's ability to continue as a going concern[114]. - The company reported a net cash outflow from investing activities of RMB 69,006 thousand, slightly improved from RMB 70,829 thousand in the prior year[130]. - The company is actively discussing loan extensions with banks to manage its financial resources effectively[133]. Governance and Compliance - The group has not experienced any significant violations of applicable laws and regulations during the reporting period[44]. - The board is committed to enhancing risk management and internal control systems, with no reported fraud cases during the period[45]. - The group continues to improve its governance practices and policies in line with the Hong Kong Stock Exchange's corporate governance code[45]. - The company has complied with the corporate governance code, except for the provision that requires the roles of chairman and CEO to be separated[93]. - The company confirmed that all directors complied with the securities trading code during the reporting period[95]. Market Outlook and Strategy - The coal industry is expected to see moderate restrictions on capacity expansion due to strict safety and environmental regulations, with a focus on high-quality production[80][82]. - The Chinese government's fiscal and monetary policies are anticipated to provide stable support for overall electricity consumption and coal demand, with the steel and construction industries expected to maintain steady growth[80]. - The average coal price is projected to remain relatively high in the second half of 2021, with potential for increased volatility due to regional supply-demand mismatches[80]. - The group aims to enhance production efficiency and smart management while focusing on high-quality capacity expansion and product structure adjustments to improve competitiveness and average selling prices[82]. - The group is open to exploring other business opportunities that could provide ideal returns for shareholders when suitable opportunities arise[83]. Employee and Operational Costs - As of June 30, 2021, the group employed 1,186 full-time employees, with total employee costs amounting to approximately RMB 162.1 million, an increase from RMB 135.3 million for the same period in 2020[77][79]. - The group's sales cost decreased by approximately 1.5% to about RMB 323.6 million, despite a 25.1% increase in labor costs to approximately RMB 105.5 million[49][50]. - Employee benefits expenses amounted to RMB 162,058 thousand, an increase of 19.7% from RMB 135,326 thousand in the same period last year[163]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2021, was RMB 105,109 thousand, a significant improvement from a cash outflow of RMB 14,088 thousand in the same period of 2020[130]. - Net cash generated from operating activities amounted to RMB 32,976 thousand, compared to a net cash outflow of RMB 86,876 thousand in the previous year[130]. - The company received government grants amounting to RMB 780 thousand, an increase from RMB 500 thousand in the previous year[130]. - The company recorded new leases amounting to RMB 72,294 thousand during the first half of 2021, compared to RMB 99,135 thousand in the same period of 2020[184]. Shareholder Information - Major shareholders include Feishang Group Limited, which holds 604,029,650 shares, representing 43.75% of the company[86]. - As of June 30, 2021, Laitan Investments Limited holds 724,029,650 shares, accounting for 52.44% of the company[86]. - The total number of share options that can be granted under the share option scheme is 138,054,580 shares, accounting for 10% of the issued shares at the time of approval[104]. - The company did not purchase, sell, or redeem any of its listed shares during the reporting period[96]. - The company did not declare or pay any dividends for the six months ended June 30, 2021, consistent with the previous year[176].
飞尚无烟煤(01738) - 2021 - 中期财报