飞尚无烟煤(01738) - 2024 - 中期财报

Company Information Corporate Governance and Contact Information This section outlines Feishang Anthracite Resources Co., Ltd.'s corporate governance structure, key contact details, and professional service organizations - Company governance structure includes the Corporate Social Responsibility Committee, Audit Committee (Chairman: Mr. Chen Qian), Nomination Committee (Chairman: Mr. Tam Cheuk Ho), and Remuneration Committee (Chairman: Mr. Wong Wah On)[1][2] - Key professional service organizations include Ernst & Young (auditor), Loeb & Loeb LLP (Hong Kong legal counsel), Commerce & Finance Law Offices (China legal counsel), and Maples and Calder (BVI legal counsel)[2][3] - Major banks include Bank of Guizhou Co., Ltd., China Minsheng Banking Corp., Ltd., and Bank of Guiyang[3] Financial Highlights Financial Highlights for the Six Months Ended June 30, 2024 For the six months ended June 30, 2024, the company's revenue and gross profit from continuing operations significantly decreased, leading to a substantial increase in loss attributable to owners of the parent company, with basic loss per share of RMB 0.1 Key Financial Indicators for Continuing Operations (Six Months Ended June 30, 2024) | Indicator | H1 2024 (RMB million) | H1 2023 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 153.6 | 641.3 | -76.0% | | Gross Profit | 1.5 | 224.3 | -99.3% | | Loss attributable to owners of the parent company | 143.4 | 22.5 | +537.0% | | Basic loss per share | 0.1 yuan | - | - | Management Discussion and Analysis Business Review In H1 2024, China's economic recovery was below expectations, with sluggish real estate and domestic consumption, while geopolitical conflicts and high interest rates posed external risks; the coal industry faced weak supply and demand, with Shanxi province's output down 13.5% and national raw coal output down 1.7% year-on-year, but imports grew by 12.5%; electricity consumption increased by 8.1%, mainly driven by hydropower, with thermal power up 1.7%; coal prices fell but volatility decreased, and the proportion of loss-making companies in the industry hit a new high; the Group recorded a comprehensive loss due to geological complexities, production halts, strict regulations, resulting in a sharp drop in production and sales, increased costs, and falling prices - China's economic recovery was below expectations, with GDP growing by 5.0% year-on-year, mainly driven by manufacturing and exports[6] - The coal industry experienced weak supply and demand, with national raw coal output decreasing by 1.7% year-on-year, but coal imports increased by 12.5%[6] - The Group recorded a comprehensive loss attributable to owners of the parent company of approximately RMB 143.6 million, primarily due to geological complexities of existing coal mining faces, temporary production halts, optimization of coal mining teams, lagging tunneling construction, falling coal market prices, declining product quality, and strict safety and environmental regulations[7] Summary of Exploration, Development, and Mining Activities During the reporting period, the Group's total coal production was approximately 0.47 million tonnes; as of June 30, 2024, the total proved and probable reserves of the four coal mines were approximately 163.74 million tonnes, according to JORC rules - During the reporting period, the Group's total coal production was approximately 0.47 million tonnes[8] - As of June 30, 2024, the total proved and probable reserves of the four coal mines were approximately 163.74 million tonnes[8] Compliance and Risk Management During the reporting period, the Group did not experience any serious violations or non-compliance with applicable laws and regulations that had a significant impact on its business and operations; the Board is committed to maintaining good corporate governance and continuously improving risk management and internal control systems, with no fraud cases identified - During the reporting period, the Group had no serious violations and/or non-compliance with applicable laws and regulations that had a significant impact on the Group's business and operations[9] - The Board is committed to maintaining good corporate governance and continuously improving risk management and internal control systems in accordance with the Corporate Governance Code in Appendix C1 of the Listing Rules[10] Financial Review The Group's financial performance from continuing operations significantly deteriorated, with substantial declines in revenue and gross profit, leading to a surge in losses; this was primarily attributed to decreased sales volume and average selling price of self-produced anthracite, coupled with increased unit production costs; although selling expenses, other operating expenses, administrative expenses, and finance costs decreased, and income tax credits increased, these could not fully offset the negative impact of the decline in gross profit Revenue The Group's total revenue significantly decreased by 76.0% year-on-year to RMB 153.6 million, mainly due to a 68.3% reduction in sales volume of self-produced anthracite and a 24.4% drop in average selling price; revenue from processed coal also decreased due to lower sales volume and average selling price Revenue Changes (Six Months Ended June 30, 2024) | Indicator | H1 2024 | H1 2023 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | Approx. RMB 153.6 million | Approx. RMB 641.3 million | Decrease approx. RMB 487.7 million | Approx. -76.0% | | Sales Volume of Self-produced Anthracite | Approx. 0.42 million tonnes | Approx. 1.32 million tonnes | Decrease approx. 0.90 million tonnes | Approx. -68.3% | | Average Selling Price of Self-produced Anthracite | RMB 366.7 per tonne | RMB 485.1 per tonne | Decrease RMB 118.4 per tonne | Approx. -24.4% | | Processed Coal Revenue Share | 43.4% | 62.2% | - | - | | Processed Coal Revenue | Approx. RMB 66.6 million | Approx. RMB 398.6 million | Decrease approx. RMB 332.0 million | -83.3% | | Processed Coal Sales Volume | Approx. 0.11 million tonnes | Approx. 0.60 million tonnes | Decrease approx. 0.49 million tonnes | -81.7% | - The sharp decline in revenue was mainly due to geological complexities of existing coal mining faces, temporary production halts caused by gas exceedance incidents, optimization of coal mining teams, and lagging tunneling construction[11] Cost of Sales The Group's cost of sales decreased by 63.5% year-on-year to RMB 152.1 million, primarily due to reduced sales volume of self-produced anthracite; however, unit cost of sales increased, with total unit cost of coal mining rising to RMB 334.7 per tonne and total unit cost of coal processing rising to RMB 112.1 per tonne, reflecting a failure to achieve economies of scale and additional safety maintenance costs Cost of Sales Changes (Six Months Ended June 30, 2024) | Indicator | H1 2024 (RMB million) | H1 2023 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 152.1 | 417.0 | -63.5% | - Labor costs decreased less than sales volume, mainly due to the failure to achieve economies of scale after the decline in production and sales[13] - Material, fuel, and energy costs decreased less than sales volume, mainly due to additional strict safety supervision measures, gas exceedance incidents, and geological complexities leading to extra repair and maintenance work[13] Unit Cost of Coal Mining and Processing (RMB/tonne) | Cost Item | 2024 | 2023 | | :--- | :--- | :--- | | Coal Mining Activities | | | | Labor Costs | 112.2 | 85.5 | | Raw Materials, Fuel & Energy | 93.3 | 68.5 | | Depreciation & Amortization | 84.7 | 98.5 | | Taxes & Levies Payable to Government | 20.1 | 23.0 | | Other Production-Related Costs | 24.4 | 8.5 | | Total Unit Cost of Coal Mining | 334.7 | 284.0 | | Coal Processing Activities | | | | Labor Costs | 17.9 | 11.8 | | Raw Materials, Fuel & Energy | 34.1 | 27.2 | | Depreciation | 55.2 | 10.0 | | Taxes & Levies Payable to Government | 1.4 | 2.7 | | Transportation Costs | 0.4 | 16.3 | | Other Coal Processing-Related Costs | 3.1 | 1.3 | | Total Unit Cost of Coal Processing | 112.1 | 69.3 | Gross Profit and Gross Margin The Group's gross profit significantly decreased by 99.3% year-on-year to RMB 1.5 million, with gross margin falling from 35.0% to 1.0%, primarily due to a decline in average selling price of anthracite, increased unit cost of sales, and reduced sales volume Gross Profit and Gross Margin Changes (Six Months Ended June 30, 2024) | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Gross Profit | Approx. RMB 1.5 million | Approx. RMB 224.3 million | Decrease approx. 99.3% | | Gross Margin | Approx. 1.0% | Approx. 35.0% | Decrease 34.0 percentage points | Loss from Continuing Operations The Group's loss from continuing operations increased from RMB 17.4 million to RMB 150.5 million, primarily due to a RMB 222.8 million reduction in gross profit; part of the loss was offset by reductions in selling expenses, other operating expenses, administrative expenses, and finance costs, as well as an increase in income tax credits Loss from Continuing Operations Changes (Six Months Ended June 30, 2024) | Indicator | H1 2024 (RMB million) | H1 2023 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Loss from Continuing Operations | 150.5 | 17.4 | Increase 133.1 | | Decrease in Gross Profit | 222.8 | - | - | - The increase in loss was partially offset by a decrease in selling expenses of approximately RMB 44.0 million, a decrease in other operating expenses of approximately RMB 18.5 million, a decrease in administrative expenses of approximately RMB 8.0 million, a decrease in finance costs of approximately RMB 7.2 million, and an increase in income tax credits of approximately RMB 12.8 million[18] Loss from Continuing Operations Attributable to Owners of the Parent Company The loss from continuing operations attributable to owners of the parent company increased from RMB 22.5 million to RMB 143.4 million, consistent with the discussion on the increase in loss from continuing operations Loss from Continuing Operations Attributable to Owners of the Parent Company (Six Months Ended June 30, 2024) | Indicator | H1 2024 (RMB million) | H1 2023 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the parent company | 143.4 | 22.5 | Increase 120.9 | Discontinued Operations Gouzhuang Coal Mine has been suspended since March 2013 and is planned for closure according to a restructuring plan; during the reporting period, most of Gouzhuang Coal Mine's operations were terminated, and its operating results have been reclassified as discontinued operations - Gouzhuang Coal Mine has been suspended since March 2013 and is planned for closure according to the restructuring plan approved by the Guizhou Provincial Energy Bureau[20] - During the reporting period, most of Gouzhuang Coal Mine's operations were terminated, and its operating results have been reclassified as discontinued operations[20] Financial Resources Review The Group faces challenges of increasing net current liabilities and expanding shareholder deficit, but the Board maintains going concern through continuous financial assistance, improved profitability, cost control, and loan renewals; multiple assets are pledged to secure bank borrowings, and controlling shareholder's shares are also pledged; the Group's foreign exchange risk is not significant, and capital commitments and contingent liabilities at period-end are disclosed Liquidity, Financial Resources, and Capital Structure As of June 30, 2024, the Group's net current liabilities increased to RMB 3,647.6 million, with cash and cash equivalents of approximately RMB 19.5 million; total interest-bearing borrowings were RMB 1,650.3 million, most of which were short-term borrowings, guaranteed by Mr. Li Feilie and/or companies controlled by him Liquidity and Borrowing Situation | Indicator | June 30, 2024 (RMB million) | December 31, 2023 (RMB million) | | :--- | :--- | :--- | | Net Current Liabilities | 3,647.6 | 3,537.5 | | Cash and Cash Equivalents | 19.5 | 10.1 | | Short-term Bank and Other Borrowings | 1,628.3 | 1,702.9 | | Long-term Bank and Other Borrowings (Non-current Portion) | 22.0 | 35.1 | | Fixed Annual Interest Rate Loans | 1,208.8 (3.38% to 10.24%) | - | | Floating Annual Interest Rate Loans | Remaining Loans (6.770% to 7.35%) | - | - The Group intends to fund its cash requirements through additional bank and other borrowings and/or potential equity financing[21] Pledging of the Group's Assets Multiple assets of the Group are pledged to secure bank loans, including mining rights, equity in subsidiaries, trade receivables, mining structures, machinery and equipment, and bank deposits; in addition, Mr. Li Feilie and his associates also provide guarantees for some bank borrowings Pledged Asset Information (As of June 30, 2024) | Type of Pledged Asset | Carrying Amount (RMB million) | Secured Loan Amount (RMB million) | | :--- | :--- | :--- | | Mining Rights | 451.2 | 1,359.0 | | Equity in Subsidiaries | - | 577.8 | | Mining Structures, Machinery & Equipment | 20.2 | 96.8 | | Trade Receivables | 52.3 | 48.5 | | Bank Deposits | 15.0 | 30.0 | | Loans Guaranteed by Mr. Li Feilie | - | 1,527.1 | | Loans Guaranteed by Mr. Li Feilie's Associates | - | 1,497.1 | Pledging of Controlling Shareholder's Shares As of June 30, 2024, controlling shareholder Feishang Group Limited has pledged 600 million ordinary shares of the Company to secure operating capital financing of up to RMB 200 million provided by Guizhou Provincial Material Development and Investment Co., Ltd. to Guizhou Puxin - Controlling shareholder Feishang Group Limited has pledged 600,000,000 ordinary shares to secure operating capital financing of up to RMB 200 million provided by Guizhou Provincial Material Development and Investment Co., Ltd. to Guizhou Puxin[24] Provision of Corporate Guarantees Guizhou Puxin provided a corporate guarantee of up to RMB 36 million on September 25, 2023, for a loan financing of RMB 300 million obtained by Jinsha Economic Development Zone Commercial and Trade Co., Ltd. from Bank of Guizhou (Jinsha Branch) - Guizhou Puxin provided a corporate guarantee of up to RMB 36 million for loan financing obtained by Jinsha Economic Development Zone Commercial and Trade Co., Ltd. from Bank of Guizhou (Jinsha Branch)[25] Currency Risk and Management Most of the Group's business activities are transacted in RMB, and the Board considers foreign exchange risk not significant - Most of the Group's business activities are transacted in RMB, and the Directors consider foreign exchange risk not significant[26] Capital Commitments As of June 30, 2024, the Group's contractual capital commitments, primarily for the purchase of materials, machinery, and equipment, amounted to approximately RMB 11.6 million - As of June 30, 2024, the Group's contractual capital commitments, primarily for the purchase of materials, machinery, and equipment, amounted to approximately RMB 11.6 million[27] Contingent Liabilities As of June 30, 2024, other than bank borrowings, the Group had no issued or agreed to be issued loan capital or debt securities, outstanding bank overdrafts and accepted liabilities or other similar debts, debentures, mortgages, charges or loans or acceptance credits, finance lease or hire purchase commitments or guarantees or significant contingent liabilities - As of June 30, 2024, other than bank borrowings, the Group had no significant contingent liabilities[28] Gearing Ratio The Group's gearing ratio increased from 223.8% as of December 31, 2023, to 304.7% as of June 30, 2024, primarily due to significant losses recorded during the reporting period Gearing Ratio Changes | Date | Gearing Ratio | | :--- | :--- | | June 30, 2024 | 304.7% | | December 31, 2023 | 223.8% | - The increase in gearing ratio was mainly due to the Group recording significant losses[29] Interim Dividend The Board did not declare an interim dividend during the reporting period - The Board did not declare an interim dividend during the reporting period[30] Employees and Remuneration Policy As of June 30, 2024, the Group had 2,018 full-time employees, with total employee costs of approximately RMB 96.8 million; the company offers competitive remuneration and various benefits, and has a share option scheme to incentivize employees - As of June 30, 2024, the Group employed 2,018 full-time employees for its main business from continuing operations[31] Employee Costs (Six Months Ended June 30, 2024) | Indicator | H1 2024 (RMB million) | H1 2023 (RMB million) | | :--- | :--- | :--- | | Total Employee Costs | 96.8 | 165.3 | - The Group provides employee remuneration packages in line with industry practice and individual performance, and offers medical and retirement benefits[31] Events After the Reporting Period On August 16, 2024, Guizhou Puxin obtained and fully drew down a short-term bank loan of RMB 32.0 million for coal purchases, with an annual interest rate of 6.775% - On August 16, 2024, Guizhou Puxin obtained and fully drew down a short-term bank loan of RMB 32.0 million for coal purchases, with a fixed annual interest rate of 6.775%[32] Outlook Looking ahead, China's coal industry capacity expansion will be limited, supply assurance policies will continue, and imports are expected to remain high; on the demand side, government policies will support electricity consumption and coal demand, the coal chemical industry will benefit, and real estate-related industries are expected to recover; the Group anticipates production to remain below previous years, mainly due to geological complexities, construction delays, and strict regulations; the company will focus on internal challenges, enhance competitiveness, and actively explore new energy investment opportunities; the Group expects a decline in full-year turnover and a surge in comprehensive loss for 2024 - Future coal industry production and sales expansion are expected to remain moderately restricted, coal supply assurance policies will continue to be implemented, and coal imports are expected to remain at a high level[33] - The government will intensify policy efforts to maintain stable growth, including proactive fiscal and monetary policies, which are expected to support overall electricity consumption and coal demand[34] - The Group expects future production to remain below previous years, mainly due to geological complexities of existing coal mining faces, optimization of coal mining teams, lagging tunneling construction, and increasingly strict safety regulations[34] - The Group will actively address internal challenges, including increasing production, managing coal quality, adjusting product structure, improving production efficiency and intelligence, and strengthening refined management and cost control[34] - The Company will actively leverage the major shareholder's resources and experience in the new energy sector to explore investment opportunities in new energy[34] - The Group expects to record a decline in turnover and a surge in comprehensive loss attributable to owners of the parent company for the year ending December 31, 2024[34] Audit Committee and Acknowledgements The Company has an Audit Committee composed of three independent non-executive directors, responsible for reviewing and monitoring financial reporting processes, risk management, and internal controls; the Board thanks all employees and the management team for their efforts and shareholders for their continued support - The Audit Committee is composed of Mr. Chen Qian (Chairman), Ms. Liang Ying, and Mr. Wang Xiufeng, three independent non-executive directors, responsible for reviewing and monitoring the Group's financial reporting processes, risk management, and internal controls[35] - The Board thanks all employees and the management team of the Group for their efforts and dedication during the reporting period, and extends sincere gratitude to all shareholders for their continued support[36] Other Information Interests and Short Positions of Substantial Shareholders in the Company's Shares and Underlying Shares As of June 30, 2024, Mr. Li Feilie and entities controlled by him (including Laitan Investments Limited and Feishang Group Limited) collectively held 51.72% of the Company's shares; Guizhou Provincial Material Development and Investment Co., Ltd. held a 43.46% interest due to share pledge rights; Mr. Li Zongyang and entities controlled by him held 9.63% of the shares Interests of Substantial Shareholders in the Company's Shares (As of June 30, 2024) | Name of Substantial Shareholder | Capacity | Number of Shares | Percentage of Issued Shares (%) | | :--- | :--- | :--- | :--- | | Mr. Li Feilie | Beneficial owner/Interest owned by controlled entities | 714,029,650 | 51.72 | | Laitan Investments Limited | Interest owned by controlled entities | 699,029,650 | 50.63 | | Feishang Group Limited | Beneficial owner | 699,029,650 | 50.63 | | Guizhou Provincial Material Development and Investment Co., Ltd. | Person with security interest in shares | 600,000,000 | 43.46 | | Mr. Li Zongyang | Interest owned by controlled entities | 133,000,000 | 9.63 | - Feishang Group Limited has pledged 600 million shares to secure operating capital financing of up to RMB 200 million provided by Guizhou Provincial Material Development and Investment Co., Ltd. to Guizhou Puxin[38] Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares, and Debentures As of June 30, 2024, Mr. Wong Wah On held 1.45% of the Company's shares, and Mr. Tam Cheuk Ho held 1.02%; in addition, both directors also held a small number of shares in China Natural Resources, Inc. Interests of Directors in the Company's Shares (As of June 30, 2024) | Name of Director | Capacity | Number of Shares | Percentage of Issued Shares (%) | | :--- | :--- | :--- | :--- | | Mr. Wong Wah On | Beneficial owner | 20,000,000 | 1.45 | | Mr. Tam Cheuk Ho | Beneficial owner | 14,096,300 | 1.02 | Interests of Directors in Shares of Associated Corporation China Natural Resources, Inc. (As of June 30, 2024) | Name of Director | Capacity | Number of Shares | Percentage of Issued Shares (%) | | :--- | :--- | :--- | :--- | | Mr. Wong Wah On | Beneficial owner | 80,000 | 0.81 | | Mr. Tam Cheuk Ho | Beneficial owner | 56,386 | 0.57 | Directors' Rights to Acquire Shares or Debentures of the Company and Other Corporations Save for the share option scheme, neither the Company, its holding company, nor any of its subsidiaries entered into any arrangements during the review period that would enable directors to benefit from acquiring shares or debentures of the Company or any other body corporate - Save for the share option scheme, neither the Company, its holding company, nor any of its subsidiaries entered into any arrangements during the review period that would enable directors to benefit from acquiring shares or debentures of the Company or any other body corporate[41] Corporate Governance Practices The Company complied with the Corporate Governance Code during the reporting period, except for Mr. Han Weibing simultaneously serving as Chairman and Chief Executive Officer from January 1 to January 12, 2024, which deviated from Code Provision C.2.1; the Board believes this arrangement was in the best interest of the Group, and the Board's operations were sufficient to balance power; Mr. Wang Xinhua was appointed Chairman after January 12, 2024 - The Company has complied with the code provisions of the Corporate Governance Code during the reporting period, except for Code Provision C.2.1 as stated below[42] - Mr. Han Weibing served as both Chairman and Chief Executive Officer of the Company from January 1, 2024, to January 12, 2024, deviating from Code Provision C.2.1 of the Corporate Governance Code (roles of Chairman and Chief Executive Officer should be separate)[43] - The Board believes that this arrangement was in the best interest of the Group, and the Board's operations were sufficient to achieve a balance between power and authority[43] Standard Code for Securities Transactions by Directors The Company has adopted the Standard Code as the code of conduct for directors' securities transactions and confirms that all directors have complied with it throughout the reporting period - The Company has adopted the Standard Code as the code of conduct for directors' securities transactions and confirms that all Directors have complied with the required standards of the Standard Code throughout the reporting period[44] Purchase, Sale or Redemption of the Company's Listed Shares Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the reporting period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the reporting period[45] Disclosure of Changes in Directors' Information During the reporting period, Mr. Lu Jianzhang retired as an independent non-executive director, and Ms. Liang Ying was elected as an independent non-executive director and joined several committees; Mr. Fu Jian'gen was not elected as an executive director; Mr. Chen Qian was appointed Chairman of the Audit Committee, Mr. Tam Cheuk Ho was appointed Chairman of the Nomination Committee, and Mr. Wong Wah On was appointed Chairman of the Remuneration Committee - Mr. Lu Jianzhang was not re-elected as an independent non-executive director at the annual general meeting and retired on June 18, 2024[47] - Ms. Liang Ying was elected as an independent non-executive director of the Company and appointed as a member of the Audit Committee, Remuneration Committee, and Nomination Committee[47] - Mr. Chen Qian was appointed Chairman of the Company's Audit Committee, Mr. Tam Cheuk Ho was appointed Chairman of the Nomination Committee, and Mr. Wong Wah On was appointed Chairman of the Remuneration Committee[47] Company's Share Option Scheme The Company adopted a share option scheme on June 28, 2022, to incentivize and retain outstanding employees and promote business success; the scheme is valid for 10 years, with a total number of shares that can be granted capped at 10% of the issued shares; as of June 30, 2024, no share options had been granted - The share option scheme was adopted on June 28, 2022, and is valid for 10 years from the adoption date, aiming to recognize, attract, and retain outstanding employees[48] - Under the share option scheme, the maximum total number of shares involved in options that can be granted is 138,054,580 shares, representing 10% of the issued shares on the date the share option scheme was approved[49] - As of June 30, 2024, no share options have been granted or agreed to be granted since the adoption date[49] Interim Condensed Consolidated Statement of Profit or Loss Financial Performance of Continuing Operations For the six months ended June 30, 2024, the Group's revenue from continuing operations significantly decreased, gross profit was almost zero, leading to a substantial increase in loss for the period, with basic loss per share attributable to owners of the parent company of RMB 0.10 Interim Condensed Consolidated Statement of Profit or Loss Summary (Six Months Ended June 30, 2024) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 153,619 | 641,344 | | Cost of sales | (152,119) | (417,024) | | Gross profit | 1,500 | 224,320 | | Selling and distribution expenses | (14,239) | (58,246) | | Administrative expenses | (73,576) | (81,595) | | Other operating income/(expenses) net | (16,925) | (35,389) | | Finance costs | (67,196) | (74,383) | | Interest income | 56 | 808 | | Loss before tax from continuing operations | (170,380) | (24,485) | | Income tax credit | 19,922 | 7,078 | | Loss for the period from continuing operations | (150,458) | (17,407) | | Loss for the period from discontinued operations | (210) | (938) | | Total loss for the period | (150,668) | (18,345) | | Loss from continuing operations attributable to owners of the parent company | (143,382) | (22,508) | | Loss from discontinued operations attributable to owners of the parent company | (208) | (929) | | Basic loss per share attributable to owners of the parent company (RMB) | (0.10) | (0.02) | Interim Condensed Consolidated Statement of Comprehensive Income Total Comprehensive Loss For the six months ended June 30, 2024, the Group's loss for the period was RMB 150,668 thousand, which, combined with other comprehensive loss (mainly from exchange differences on overseas operations), resulted in a total comprehensive loss of RMB 151,112 thousand, of which RMB 144,034 thousand was attributable to owners of the parent company Interim Condensed Consolidated Statement of Comprehensive Income Summary (Six Months Ended June 30, 2024) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period | (150,668) | (18,345) | | Other comprehensive loss (net of tax) | (444) | (655) | | Total comprehensive loss (net of tax) | (151,112) | (19,000) | | Total comprehensive loss attributable to owners of the parent company | (144,034) | (24,092) | | Total comprehensive loss attributable to non-controlling interests | (7,078) | 5,092 | Interim Condensed Consolidated Statement of Financial Position Assets As of June 30, 2024, the Group's total assets were RMB 3,068,131 thousand, with non-current assets primarily including property, plant and equipment (RMB 2,566,443 thousand) and right-of-use assets (RMB 266,164 thousand); current assets included inventories (RMB 52,204 thousand) and cash and cash equivalents (RMB 19,520 thousand) Assets Summary (As of June 30, 2024) | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 2,566,443 | 2,528,870 | | Right-of-use assets | 266,164 | 269,098 | | Deferred tax assets | 21,297 | 14,633 | | Total non-current assets | 2,882,530 | 2,864,171 | | Current assets | | | | Inventories | 52,204 | 60,555 | | Trade and bills receivables | 8,758 | 9,316 | | Prepayments and other receivables | 88,194 | 114,797 | | Pledged deposits | 16,925 | 46,934 | | Cash and cash equivalents | 19,520 | 10,107 | | Total current assets | 185,601 | 241,709 | | Total assets | 3,068,131 | 3,105,880 | Liabilities and Equity As of June 30, 2024, the Group's total liabilities were RMB 4,277,765 thousand, with total current liabilities of RMB 3,833,248 thousand, mainly comprising trade and bills payables (RMB 846,697 thousand), other payables and accrued expenses (RMB 1,154,964 thousand), and interest-bearing bank and other borrowings (RMB 1,628,275 thousand); the Group's total equity was negative RMB 1,209,634 thousand, with equity attributable to owners of the parent company being negative RMB 1,426,658 thousand Liabilities and Equity Summary (As of June 30, 2024) | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Current liabilities | | | | Trade and bills payables | 846,697 | 948,910 | | Other payables and accrued expenses | 1,154,964 | 921,783 | | Interest-bearing bank and other borrowings | 1,628,275 | 1,702,875 | | Total current liabilities | 3,833,248 | 3,779,197 | | Non-current liabilities | | | | Amounts due to related companies | 272,994 | 165,407 | | Interest-bearing bank and other borrowings | 22,030 | 35,125 | | Deferred tax liabilities | 60,804 | 74,062 | | Total non-current liabilities | 444,517 | 385,205 | | Total liabilities | 4,277,765 | 4,164,402 | | Equity | | | | Equity attributable to owners of the parent company | (1,426,658) | (1,282,624) | | Non-controlling interests | 217,024 | 224,102 | | Total equity | (1,209,634) | (1,058,522) | Interim Condensed Consolidated Statement of Changes in Equity Changes in Equity For the six months ended June 30, 2024, the Group's equity attributable to owners of the parent company further decreased from a negative RMB 1,282,624 thousand at the beginning of the period to a negative RMB 1,426,658 thousand, primarily due to a loss for the period of RMB 143,590 thousand and the impact of exchange rate changes Interim Condensed Consolidated Statement of Changes in Equity Summary (Six Months Ended June 30, 2024) | Indicator | Share Capital (RMB thousand) | Share Premium Account (RMB thousand) | Safety Production and Maintenance Fund (RMB thousand) | Special Reserve (RMB thousand) | Accumulated Losses (RMB thousand) | Exchange Fluctuation Reserve (RMB thousand) | Total (RMB thousand) | Non-controlling Interests (RMB thousand) | Total Equity (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | December 31, 2023 (Audited) | 1,081 | 204,524 | 284,440 | 38,741 | (1,815,797) | 4,387 | (1,282,624) | 224,102 | (1,058,522) | | Loss for the period | – | – | – | – | (143,590) | – | (143,590) | (7,078) | (150,668) | | Exchange differences | – | – | – | – | – | (444) | (444) | – | (444) | | Total comprehensive loss for the period | – | – | – | – | (143,590) | (444) | (144,034) | (7,078) | (151,112) | | Net withdrawal and utilization of safety production and maintenance fund | – | – | (9,159) | – | 9,159 | – | – | – | – | | June 30, 2024 (Unaudited) | 1,081 | 204,524 | 275,281 | 38,741 | (1,950,228) | 3,943 | (1,426,658) | 217,024 | (1,209,634) | Interim Condensed Consolidated Statement of Cash Flows Cash Flow Analysis For the six months ended June 30, 2024, the Group's net cash flow from operating activities was RMB 106,547 thousand, net cash flow used in investing activities was RMB 83,585 thousand, and net cash flow used in financing activities was RMB 13,555 thousand, with cash and cash equivalents increasing to RMB 19,520 thousand at period-end Interim Condensed Consolidated Statement of Cash Flows Summary (Six Months Ended June 30, 2024) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Net cash flow from operating activities | 106,547 | 355,078 | | Net cash flow used in investing activities | (83,585) | (201,727) | | Net cash flow used in financing activities | (13,555) | (143,612) | | Net increase in cash and cash equivalents | 9,407 | 9,739 | | Cash and cash equivalents at period-end | 19,520 | 34,452 | Notes to the Interim Condensed Consolidated Financial Information Basis of Preparation and Changes in the Group's Accounting Policies (Note 1) This interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and presented on a historical cost basis; as of June 30, 2024, the Group had net current liabilities of RMB 3,647.6 million and a shareholder deficit of RMB 1,209.6 million; the Board has assessed and taken measures to maintain going concern, including continuous financial assistance, improved profitability, cost control, and loan renewals; newly adopted IFRS amendments have no significant impact on the Group's financial position or performance - This interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and on a going concern basis[57][58] Current Liabilities and Shareholder Equity (As of June 30, 2024) | Indicator | June 30, 2024 (RMB million) | December 31, 2023 (RMB million) | | :--- | :--- | :--- | | Net Current Liabilities | 3,647.6 | 3,537.5 | | Shareholder Deficit | 1,209.6 | 1,058.5 | | Total Assets Less Current Liabilities | (765.1) | (673.3) | - The Group is implementing various measures to improve profitability, liquidity, and cash flow, including coal quality management, increasing production, strict cost control, loan renewals, and obtaining continuous financial support[58] - The newly adopted amendments to IFRS 16, IAS 1, IAS 7, and IFRS 7 have no significant impact on the Group's financial position or performance[59][60][61] Operating Segment Information (Note 2) The Group has only one operating segment: anthracite mining and sales, and anthracite trading; all revenue is derived from mainland China, and all non-current assets are also located in mainland China; sales to the top four customers accounted for 21.1%, 12.1%, 10.4%, and 10.1% of consolidated revenue, respectively - The Group has only one operating segment: anthracite mining and sales, and anthracite trading[62] - The Group's revenue from external customers is solely derived from its operations in mainland China, and it has no non-current assets located outside mainland China[63] - For the six months ended June 30, 2024, revenue from sales to the top four customers accounted for 21.1%, 12.1%, 10.4%, and 10.1% of consolidated revenue, respectively[64] Discontinued Operations (Note 3) Gouzhuang Coal Mine has terminated most of its operations during the reporting period, and its operating results have been reclassified as discontinued operations; for the six months ended June 30, 2024, Gouzhuang Coal Mine recorded a loss of RMB 210 thousand, with net cash outflow from operating activities of RMB 145 thousand - Gouzhuang Coal Mine has terminated most of its operations during the reporting period, and its operating results have been reclassified as discontinued operations[65] Gouzhuang Coal Mine Performance and Cash Flows (Six Months Ended June 30, 2024) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Administrative expenses | (210) | (938) | | Loss from discontinued operations for the period | (210) | (938) | | Net cash outflow from operating activities | (145) | (471) | | Net cash outflow/(inflow) from financing activities | (28) | 614 | | Net cash (outflow)/inflow | (173) | 143 | - The basic and diluted loss per share from discontinued operations attributable to ordinary equity holders of the parent company is very small[67] Revenue from Continuing Operations (Note 4) The Group's revenue from continuing operations primarily comes from coal sales and a small amount of coal trading, with all revenue recognized in mainland China; performance obligations are met upon coal delivery or receipt, and payments are typically due within 30 days Revenue from Continuing Operations (Six Months Ended June 30, 2024) | Revenue Source | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Revenue from customer contracts | 153,619 | 641,344 | | Coal sales | 153,607 | 641,229 | | Coal trading | 12 | 115 | | Geographical market | Mainland China | Mainland China | | Revenue recognition timing | Goods transferred at a point in time | Goods transferred at a point in time | - Performance obligations for coal sales are met upon delivery of coal, and payments are typically due within 30 days from delivery[71] - Performance obligations for coal trading are met upon receipt of coal, and payments are typically due within 30 days from receipt[72] Finance Costs from Continuing Operations (Note 5) For the six months ended June 30, 2024, the Group's finance costs from continuing operations were RMB 67,196 thousand, a decrease from RMB 74,383 thousand in the same period last year, mainly including interest on interest-bearing bank and other borrowings, interest on lease liabilities, and interest on discounted bills Finance Costs from Continuing Operations (Six Months Ended June 30, 2024) | Finance Cost Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Interest on interest-bearing bank and other borrowings | 59,407 | 61,277 | | Interest on lease liabilities | 3,338 | 3,739 | | Interest on payables for mining rights | 1,237 | 2,278 | | Total interest expenses | 63,982 | 67,294 | | Bank charges | 26 | 444 | | Interest on discounted bills | 2,639 | 6,131 | | Accretion expenses | 549 | 514 | | Total | 67,196 | 74,383 | Loss Before Tax from Continuing Operations (Note 6) For the six months ended June 30, 2024, the Group's loss before tax from continuing operations was RMB 170,380 thousand, mainly composed of cost of inventories sold, sales tax and surcharges, utilization of safety production and maintenance fund, employee benefit expenses, and depreciation, depletion, and amortization, partially offset by government grants and bank deposit interest income Components of Loss Before Tax from Continuing Operations (Six Months Ended June 30, 2024) | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Included: | | | | Interest income from bank deposits | (56) | (808) | | Government grants | (5,645) | (3,671) | | Deducted: | | | | Cost of inventories sold | 110,762 | 326,345 | | Sales tax and surcharges | 8,551 | 31,972 | | Utilization of safety production and maintenance fund | 32,806 | 58,707 | | Sales tax and surcharges | 152,119 | 417,024 | | Employee benefit expenses | 92,119 | 164,725 | | Depreciation, depletion and amortization | 47,244 | 145,027 | | Net impairment loss on financial assets | 4,914 | 530 | | Loss on disposal of property, plant and equipment | 881 | – | - Total government grants amounted to RMB 5.6 million, recognized in other operating income[74] Employee Benefits from Continuing Operations (Note 7) For the six months ended June 30, 2024, the Group's total employee benefit expenses from continuing operations were RMB 96,771 thousand, a decrease from RMB 165,310 thousand in the same period last year, mainly including wages, salaries and allowances, retirement benefit scheme contributions, and housing provident fund Employee Benefits from Continuing Operations (Six Months Ended June 30, 2024) | Employee Benefit Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Wages, salaries and allowances | 81,591 | 145,834 | | Retirement benefit scheme contributions | 4,217 | 4,934 | | Housing provident fund | 1,090 | 1,282 | | Benefits and other expenses | 9,873 | 13,260 | | Total | 96,771 | 165,310 | - In accordance with PRC national regulations, employees of the Group's PRC subsidiaries are required to participate in local government-managed central retirement benefit schemes and housing provident funds[76] Income Tax Credit and Deferred Tax from Continuing Operations (Note 8) The Group's PRC subsidiaries are subject to a 25% corporate income tax rate, except for Jinsha County Juli Energy Co., Ltd., which enjoys a preferential tax rate of 15%; as of June 30, 2024, the Group recorded an income tax credit of RMB 19,922 thousand, mainly from an increase in deferred tax benefits; net deferred tax assets were negative RMB 39,507 thousand, and management believes there is a prospect of earning sufficient taxable profits in the future to utilize deductible temporary differences and unused tax losses - PRC Group entities are subject to a corporate income tax rate of 25%, with Jinsha County Juli Energy Co., Ltd. enjoying a preferential tax rate of 15%[79] Income Tax Credit from Continuing Operations (Six Months Ended June 30, 2024) | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Current - Mainland China | – | 8,470 | | Deferred - Mainland China | 19,922 | (1,392) | | Total | 19,922 | 7,078 | Deferred Tax Assets and Liabilities (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Total deferred tax assets | 116,758 | 79,405 | | Total deferred tax liabilities | (156,265) | (138,834) | | Net deferred tax liabilities | (39,507) | (59,429) | - Management believes that the Group is likely to generate sufficient taxable profits in the future to utilize the deductible temporary differences and unused tax losses of these coal mining subsidiaries before they expire[81] Loss Per Share Attributable to Ordinary Equity Holders of the Parent Company (Note 9) For the six months ended June 30, 2024, the basic and diluted loss per share attributable to ordinary equity holders of the parent company was RMB 0.10, a significant increase from RMB 0.02 in the same period last year; the Company had no potential dilutive shares during the period Loss Per Share Attributable to Ordinary Equity Holders of the Parent Company (Six Months Ended June 30, 2024) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Total loss for the period attributable to ordinary equity holders of the parent company | (143,590) | (23,437) | | Weighted average number of ordinary shares (thousand shares) | 1,380,546 | 1,380,546 | | Loss per share attributable to ordinary equity holders of the parent company (RMB) | (0.10) | (0.02) | - The Company had no potential dilutive shares during the period, so the diluted loss per share amount is the same as the basic loss per share amount[82] Dividends (Note 10) The Company did not pay or declare any dividends for the six months ended June 30, 2024 - The Company did not pay or declare any dividends for the six months ended June 30, 2024[83] Property, Plant and Equipment (Note 11) For the six months ended June 30, 2024, the Group added RMB 9.8 million in property, plant and equipment and RMB 72.7 million in construction in progress; total depreciation for the period was RMB 43.7 million; some mining rights, mining structures, machinery and equipment were pledged to secure bank loans, and some buildings lacked ownership certificates Property, Plant and Equipment Changes (Six Months Ended June 30, 2024) | Item | 2024 (RMB million) | 2023 (RMB million) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 9.8 | 9.7 | | Construction in progress | 72.7 | 92.4 | | Net book value of assets disposed | 1.2 | – | | Net gain on disposal | 0.9 | – | | Total depreciation charged | 43.7 | 127.8 | - As of June 30, 2024, mining rights with a carrying amount of RMB 451.2 million were pledged to secure bank loans of RMB 1,359.0 million[84] - As of June 30, 2024, mining structures, machinery and equipment with a carrying amount of RMB 20.2 million were pledged to secure bank loans of RMB 96.8 million[84] - As of June 30, 2024, buildings with a total carrying amount of RMB 112.0 million lacked ownership certificates[84] Leases (Note 12) As of June 30, 2024, the Group's total right-of-use assets amounted to RMB 266,164 thousand, mainly including leased land, machinery and equipment, and buildings; total lease liabilities were RMB 106,523 thousand, with a current portion of RMB 58,852 thousand and a non-current portion of RMB 47,671 thousand Carrying Amount of Right-of-Use Assets (As of June 30, 2024) | Asset Type | June 30, 2024 (RMB thousand) | | :--- | :--- | | Leased land | 73,785 | | Machinery and equipment | 190,246 | | Buildings | 2,133 | | Total | 266,164 | Carrying Amount of Lease Liabilities (As of June 30, 2024) | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount at beginning of period/year | 132,069 | 132,659 | | New leases | – | 114,166 | | Accretion expenses | 3,338 | 6,302 | | Payments | (28,884) | (121,058) | | Carrying amount at end of period/year | 106,523 | 132,069 | | Current portion | 58,852 | 64,614 | | Non-current portion | 47,671 | 67,455 | Reclamation Fund (Note 13) Reclamation fund refers to restricted cash allocated by the Group in banks and cash deposited with relevant institutions for future environmental restoration and settlement of asset retirement obligations - Reclamation fund refers to restricted cash allocated by the Group in banks and cash deposited with relevant institutions for future environmental restoration and settlement of asset retirement obligations[87] Inventories (Note 14) As of June 30, 2024, the Group's total inventories amounted to RMB 52,204 thousand, mainly comprising spare parts and consumables (RMB 38,232 thousand) and coal (RMB 15,782 thousand), with an impairment provision of RMB 1,810 thousand Inventory Composition (As of June 30, 2024) | Inventory Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Spare parts and consumables | 38,232 | 38,820 | | Coal | 15,782 | 23,545 | | Less: Impairment provision | (1,810) | (1,810) | | Total | 52,204 | 60,555 | Trade and Bills Receivables (Note 15) As of June 30, 2024, the Group's total trade and bills receivables amounted to RMB 8,758 thousand, comprising trade receivables of RMB 5,004 thousand (net of impairment provision of RMB 54,640 thousand) and bills receivables of RMB 3,754 thousand; some trade receivables have been pledged to secure short-term loans Trade and Bills Receivables (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 59,644 | 59,198 | | Less: Impairment loss provision for trade receivables | (54,640) | (53,236) | | Net trade receivables | 5,004 | 5,962 | | Bills receivables | 3,754 | 3,354 | | Total | 8,758 | 9,316 | - As of June 30, 2024, trade receivables (including intercompany trade receivables) of RMB 52.3 million were pledged to secure short-term loans of RMB 48.5 million[90] Ageing Analysis of Trade Receivables (As of June 30, 2024) | Ageing | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 3,011 | 2,979 | | 3 to 6 months | 88 | – | | Over 12 months | 1,905 | 2,983 | | Total | 5,004 | 5,962 | Prepayments and Other Receivables (Note 16) As of June 30, 2024, the Group's total prepayments and other receivables amounted to RMB 100,785 thousand, with a current portion of RMB 88,194 thousand and a non-current portion of RMB 12,591 thousand; total impairment loss provision recognized was RMB 21,871 thousand Prepayments and Other Receivables (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Current: | | | | Prepayments for spare parts and consumables | 14,347 | 18,432 | | Deposits | 16,438 | 20,184 | | Withheld social insurance | 37,627 | 35,141 | | Recoverable VAT | 9,960 | 8,007 | | Prepayments for coal for trading purposes | 5,214 | 26,932 | | Less: Impairment provision | (17,719) | (14,848) | | Total Current | 88,194 | 114,797 | | Non-current: | | | | Prepayments for construction-related projects | 10,724 | 21,438 | | Less: Impairment provision | (4,152) | (3,513) | | Total Non-current | 12,591 | 34,285 | | Total | 100,785 | 149,082 | Changes in Impairment Provision for Prepayments and Other Receivables (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Current: Beginning/End of period/year | 14,848 | 10,149 | | Current: Impairment loss recognized | 2,871 | 4,699 | | Non-current: Beginning/End of period/year | 3,513 | 3,513 | | Non-current: Impairment loss recognized | 639 | – | | Total at End of period/year | 21,871 | 18,361 | Cash and Cash Equivalents and Pledged Deposits (Note 17) As of June 30, 2024, the Group's cash and cash equivalents were RMB 19,520 thousand, and pledged deposits were RMB 16,925 thousand, totaling RMB 36,445 thousand; most deposits are denominated in RMB and held with reputable banks Cash and Cash Equivalents and Pledged Deposits (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Pledged deposits | 16,925 | 46,934 | | Cash and cash equivalents | 19,520 | 10,107 | | Total | 36,445 | 57,041 | - Pledged deposits mainly include deposits of RMB 15.0 million held as collateral for bank loans and restricted bank deposits of RMB 1.9 million frozen due to litigation[95] Currency Denomination of Deposits and Cash and Cash Equivalents (As of June 30, 2024) | Currency | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | RMB | 36,113 | 56,909 | | HKD | 332 | 132 | | Total | 36,445 | 57,041 | Trade and Bills Payables (Note 18) As of June 30, 2024, the Group's total trade and bills payables amounted to RMB 846,697 thousand, primarily trade payables; the ageing structure of trade payables shows a significant increase in amounts over two years; trade payables are interest-free and generally settled within three to six months Trade and Bills Payables (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 846,697 | 892,910 | | Bills payables | – | 56,000 | | Total | 846,697 | 948,910 | - Trade payables include amounts payable to construction-related contractors of RMB 533.0 million as of June 30, 2024[98] Ageing Analysis of Trade Payables (As of June 30, 2024) | Ageing | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 254,587 | 486,711 | | One to two years | 237,408 | 357,058 | | Over two years | 354,702 | 49,141 | | Total | 846,697 | 892,910 | - Trade payables are interest-free and generally settled within a period of three to six months, except for amounts payable to construction-related contractors, which are repayable within three months to approximately one year[100] Other Payables and Accrued Expenses (Note 19) As of June 30, 2024, the Group's total other payables and accrued expenses amounted to RMB 1,154,964 thousand, a significant increase from the end of 2023; key components include deposits from contractors, social insurance payables, staff remuneration payables, and contract liabilities; contract liabilities primarily represent short-term advances received for coal transportation, secured by controlling shareholder's shares and related parties Other Payables and Accrued Expenses (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Deposits from contractors | 225,671 | 233,551 | | Social insurance payables | 106,107 | 103,025 | | Staff remuneration payables | 79,489 | 43,336 | | Contract liabilities | 527,981 | 385,558 | | Other taxes payable | 123,016 | 90,836 | | Total | 1,154,964 | 921,783 | - Contract liabilities include short-term advances received for coal transportation, with Guizhou Puxin Energy Co., Ltd. entering into a coal sales contract with Guizhou Provincial Material Development and Investment Co., Ltd. and receiving a RMB 200 million prepayment[102] - Feishang Group Limited has pledged 600 million ordinary shares of the Company to ensure the delivery of coal as per the contract, and guarantees are provided by Mr. Li Feilie, his spouse, the Company and its subsidiaries, related parties, and independent third parties[102] Interest-Bearing Bank and Other Borrowings (Note 20) As of June 30, 2024, the Group's total interest-bearing bank and other borrowings amounted to RMB 1,650,305 thousand, with most being current borrowings; these borrowings are secured by mining rights, equity in subsidiaries, trade receivables, mining structures, machinery and equipment, and bank deposits, and guaranteed by Mr. Li Feilie and his fellow subsidiaries Interest-Bearing Bank and Other Borrowings (As of June 30, 2024) | Borrowing Type | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Current | | | | Bank and other borrowings - secured | 90,290 | 149,092 | | Bank and other borrowings - pledged | 48,500 | 48,500 | | Bank and other borrowings - pledged and secured | 1,277,485 | 1,276,241 | | Current portion of long-term bank and other borrowings | 212,000 | 229,042 | | Total Current | 1,628,275 | 1,702,875 | | Non-current | | | | Bank and other borrowings - secured | 649 | 1,868 | | Bank and other borrowings - pledged and secured | 20,815 | 33,257 | | Bank and other borrowings - pledged | 566 | – | | Total Non-current | 22,030 | 35,125 | | Total | 1,650,305 | 1,738,000 | - Certain interest-bearing bank and other borrowings are secured by the Group's mining rights, equity in subsidiaries, trade receivables, mining structures, machinery and equipment, and bank deposits[103] - Mr. Li Feilie has provided guarantees for certain interest-bearing bank and other borrowings of the Group amounting to a maximum of RMB 1,527.1 million as of June 30, 2024, and the Group's fellow subsidiaries have also provided guarantees for borrowings amounting to a maximum of RMB 1,497.1 million[104] Deferred Income (Note 21) As of June 30, 2024, the Group's deferred income was RMB 11,604 thousand, with RMB 1,299 thousand amortized during the period Changes in Deferred Income (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Beginning of period/year | 12,903 | 15,706 | | Amortization during period/year | (1,299) | (2,803) | | **End of period/ye