Financial Performance - For the six months ended December 31, 2024, the company recorded a net loss attributable to shareholders of HK$309,884,000, primarily due to a HK$111,986,000 impairment loss on Mount Gibson Iron Limited and a HK$132,552,000 loss shared from it[19]. - The company reported a net loss attributable to shareholders of HK$309,884,000 for the six months ended 31 December 2024, compared to a net profit of HK$593,272,000 for the same period in 2023[27]. - The underlying segment loss for 1H FY2025 was HK$191,956,000, primarily driven by the Resource Investment and Commodity Business divisions, which reported losses of HK$183,612,000 and HK$6,468,000 respectively[27]. - The combined net attributable loss from associates Mount Gibson, Tanami Gold, and Metals X for 1H FY2025 was HK$22,687,000, a significant decline from a profit of HK$298,065,000 in 1H FY2024[29]. - The company reported a loss before taxation of HK$324,020,000, compared to a profit of HK$591,908,000 for the same period in 2023[189]. - The loss for the period attributable to owners of the company was HK$309,884,000, compared to a profit of HK$593,272,000 in the prior year[189]. - Basic and diluted loss per share for the period was HK$22.8 cents, compared to earnings of HK$45.5 cents per share in the same period last year[189]. - Total revenue for the six months ended December 31, 2024, was HK$147,813,000, a decrease of 84.3% compared to HK$941,434,000 for the same period in 2023[189]. - Gross profit for the period was HK$5,749,000, down 92.5% from HK$77,055,000 in the previous year[189]. - Total comprehensive income for the period was HK$(419,432,000), down from HK$627,860,000 in the prior year, indicating a decrease of approximately 167%[191]. Economic Outlook - China's full-year GDP growth for 2024 was 5%, slightly surpassing market expectations of 4.8%, but did not restore broad-based confidence in the economy[12]. - The company maintains a cautious near-term outlook for the global economy and commodities due to potential demand destruction from trade wars, particularly with China[153]. - The company acknowledges short-term volatility but maintains a fundamentally optimistic view on the commodities sector[20]. - The company highlights the resilience of the US economy but notes risks of elevated interest rates due to persistent inflation and reduced expectations for US rate cuts in 2025[153]. - Ongoing stimulus measures in China include stock swap programs, interest rate cuts, and debt packages, aimed at stabilizing the economy and supporting GDP growth[16]. Investment Strategy - The company remains optimistic about the long-term outlook for commodities, driven by the global transition to green energy and the expansion of AI infrastructure, increasing demand for materials like copper, tin, lithium, and rare earth elements[20]. - The company is focused on capturing long-term opportunities through disciplined, high-quality investments across a diversified portfolio[20]. - The company will regularly review its investment strategy to mitigate risks associated with market sentiment influenced by commodity prices, interest rates, and geopolitical conditions[152]. - The company emphasizes the importance of shareholder support and confidence in its vision and strategy[22]. Dividends and Shareholder Returns - The company has decided not to declare a dividend at this time due to current economic uncertainties, with plans to review the dividend policy based on evolving market conditions[21]. - The company has decided not to declare dividends due to current economic uncertainties, while continuously reviewing its dividend policy based on market conditions[24]. - A final dividend of HK$0.10 per share was declared for the year ended June 30, 2024, totaling approximately HK$135,664,000 paid or payable in cash[145]. - The company declared a final dividend of HKD 0.10 per share for the year ending June 30, 2024, amounting to approximately HKD 135,664,000, with no dividend proposed for the six months ending December 31, 2024[150]. Geopolitical and Market Risks - Geopolitical risks may be easing, with a ceasefire between Israel and Hamas and active negotiations regarding the Russia-Ukraine conflict, which could alleviate inflationary pressures and improve global supply chain stability[18]. - The geopolitical risks are easing, which may help alleviate inflationary pressures and improve global supply chain stability[23]. Asset and Liability Management - As of December 31, 2024, the Group's non-current assets were HK$1,389,185,000, and net current assets were HK$1,900,523,000, with a current ratio of 3.8 times[113][115]. - Borrowings as of December 31, 2024, totaled HK$578,774,000, an increase from HK$280,105,000 as of June 30, 2024[117]. - The Group's liquidity position is supported by undrawn letter of credit, bank, and other loan facilities amounting to HK$406,366,000 as of December 31, 2024[117]. - The current ratio decreased from 7.7 times as of June 30, 2024, to 3.8 times as of December 31, 2024, indicating a tighter liquidity position[113][115]. - The Group provided for impairment losses on loan receivables of approximately HK$588,000 during the period, compared to a reversal of impairment loss of HK$24,110,000 in the first half of FY2024[102][106]. Operational Performance - The Resource Investment division posted a fair value loss of HK$199,084,000 in 1H FY2025, resulting in a segment loss of HK$183,612,000[64]. - The Commodity Business generated a segment loss of HK$6,468,000 in 1H FY2025, compared to a profit of HK$69,373,000 in 1H FY2024[94]. - The Energy segment reported a fair value loss of HK$61,989,000 in 1H FY2025, with a carrying value of HK$262,074,000 as of December 31, 2024[87]. - The Base Metals segment experienced a fair value loss of HK$21,592,000 in 1H FY2025, with copper prices down 9.8%, nickel down 11.6%, and zinc down 2.9%[86]. - The Bulk commodities segment recorded a fair value loss of HK$128,771,000 in 1H FY2025, with a carrying value of HK$479,352,000 as of December 31, 2024[85]. Shareholding and Corporate Governance - As of December 31, 2024, the total number of issued shares of the Company was 1,356,636,962[165]. - AGL held 615,497,629 shares and 123,099,525 warrants, representing a total interest of 738,597,154 shares, approximately 54.44% of the Company's shareholding[167]. - The Company has a significant concentration of shareholding among a few major shareholders, indicating potential influence on corporate decisions[167]. - The interests stated represent long positions in the Company[165]. Miscellaneous - The Group did not hold any significant investments or have any material acquisitions or disposals during the six months ended December 31, 2024[141]. - There were no important events affecting the Group after the end of the financial period for the six months ended December 31, 2024[144]. - The Group faces various operational risks, which are mitigated through robust internal controls and effective internal reporting[134]. - The Group's financial risk includes market risk, credit risk, and liquidity risk, with a focus on managing these risks through established policies and procedures[129].
亚太资源(01104) - 2025 - 中期财报