飞尚无烟煤(01738) - 2025 - 中期业绩

Interim Results Summary Feishang Anthracite Resources Limited's interim results for the six months ended June 30, 2025, show revenue from continuing operations decreased by 11.1% year-on-year to RMB136.6 million, with gross profit turning into a gross loss of RMB31.5 million; loss from continuing operations attributable to owners of the parent significantly increased by 65.9% to RMB237.9 million, with basic loss per share at RMB0.17 yuan Summary of Interim Results for H1 2025 | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-year change | | :--- | :--- | :--- | :--- | | Revenue from continuing operations | 136.6 | 153.6 | -11.1% | | Gross (Loss)/Profit from continuing operations | (31.5) | 1.5 | Shifted from profit to loss | | Loss from continuing operations attributable to owners of the parent | (237.9) | (143.4) | +65.9% | | Basic loss per share from continuing operations | 0.17 yuan | - | - | Interim Condensed Consolidated Financial Statements This section presents the company's interim condensed consolidated financial statements, including the income statement, statement of comprehensive income, and statement of financial position, detailing financial performance and position Interim Condensed Consolidated Income Statement For the six months ended June 30, 2025, the company's revenue from continuing operations decreased to RMB136,593 thousand, with sales costs increasing, resulting in a gross loss of RMB31,489 thousand; impairment loss on property, plant and equipment of RMB111,744 thousand was a primary driver of the expanded loss for the period from continuing operations, totaling RMB282,129 thousand, with RMB237,916 thousand attributable to owners of the parent Key Data from Interim Condensed Consolidated Income Statement | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 136,593 | 153,619 | | Cost of sales | (168,082) | (152,119) | | Gross (Loss)/Profit | (31,489) | 1,500 | | Impairment loss on property, plant and equipment | (111,744) | – | | Loss before tax from continuing operations | (286,257) | (170,380) | | Loss for the period from continuing operations | (282,129) | (150,458) | | Loss from continuing operations attributable to owners of the parent | (237,916) | (143,382) | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's loss for the period significantly increased to RMB282,312 thousand, with net other comprehensive income of RMB611 thousand primarily from foreign exchange differences on translating overseas operations, resulting in a total comprehensive loss of RMB281,701 thousand, of which RMB237,486 thousand was attributable to owners of the parent Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period | (282,312) | (150,668) | | Other comprehensive income/(loss) for the period, net of tax | 611 | (444) | | Total comprehensive loss for the period, net of tax | (281,701) | (151,112) | | Total comprehensive loss for the period attributable to owners of the parent | (237,486) | (144,034) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets decreased to RMB2,779,765 thousand, total current liabilities increased to RMB4,243,548 thousand, and total equity was negative RMB1,909,991 thousand, indicating a deteriorating financial position with negative shareholders' equity Key Data from Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 2,582,196 | 2,731,158 | | Total current assets | 197,569 | 133,436 | | Total assets | 2,779,765 | 2,864,594 | | Total current liabilities | 4,243,548 | 4,022,374 | | Total non-current liabilities | 446,208 | 470,510 | | Total liabilities | 4,689,756 | 4,492,884 | | Total equity | (1,909,991) | (1,628,290) | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes on the basis of preparation, accounting policy changes, segment information, discontinued operations, revenue, finance costs, loss before tax, income tax, loss per share, dividends, property, plant and equipment, leases, trade receivables, trade payables, and interest-bearing borrowings Basis of Preparation and Changes in Accounting Policies The interim financial information is prepared under IAS 34, with the Group facing significant going concern uncertainties due to net current liabilities of approximately RMB4,046.0 million, shareholders' deficit of RMB1,910.0 million, and substantial bank borrowings due within 12 months, including overdue and reclassified amounts; management has implemented measures to improve profitability and liquidity, and accounting policy changes related to IAS 21 (amended) had no impact - As of June 30, 2025, the Group's net current liabilities were approximately RMB4,046.0 million (December 31, 2024: RMB3,888.9 million), and total assets less current liabilities were approximately negative RMB1,463.8 million (December 31, 2024: negative RMB1,157.8 million)[11] - As of June 30, 2025, the Group's total bank and other borrowings were RMB1,676.7 million, of which RMB1,655.9 million are due within the next 12 months, including approximately RMB605.7 million of overdue borrowings and approximately RMB74.0 million reclassified due to loan covenant breaches[12] - To maintain going concern, the Group is implementing various measures, including seeking lender support, negotiating litigation settlements, improving coal quality and output, strictly controlling costs, and receiving financial support from controlling shareholder Feishang Industrial Group Co., Ltd[13] - Changes to IAS 21 (amended) regarding lack of exchangeability had no impact on the Group's interim condensed consolidated financial information[16] Operating Segment Information The Group operates a single segment, anthracite mining and sales, and anthracite trading, primarily in mainland China, with sales revenue from the top four customers significantly increasing, the largest customer's share rising from 21.1% to 44.8% - The Group operates a single operating segment: anthracite mining and sales and anthracite trading, primarily in mainland China[17][18] Change in Sales Revenue Share of Top Four Customers | Customer | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Largest Customer | 44.8% | 21.1% | | Second Largest Customer | 14.1% | 12.1% | | Third Largest Customer | 12.7% | 10.4% | | Fourth Largest Customer | 10.5% | 10.1% | Discontinued Operations Gouchang Coal Mine, suspended since March 2013 and planned for closure, had its operating results reclassified to discontinued operations, recording a loss of RMB183 thousand and a net cash outflow of RMB35 thousand for the reporting period - Gouchang Coal Mine, suspended since March 2013 and planned for closure, had its operating results reclassified to discontinued operations[20][64] Gouchang Coal Mine Discontinued Operations Performance | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Administrative expenses | (183) | (210) | | Loss for the period from discontinued operations | (183) | (210) | | Loss attributable to owners of the parent | (181) | (208) | | Loss attributable to non-controlling interests | (2) | (2) | Gouchang Coal Mine Discontinued Operations Cash Flow | Activity | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Operating activities | (53) | (145) | | Financing activities | 18 | (28) | | Net cash outflow | (35) | (173) | Revenue from Continuing Operations For the six months ended June 30, 2025, revenue from continuing operations was RMB136,593 thousand, a year-on-year decrease of 11.1%, primarily due to a 17.1% decline in the average selling price of coal, despite a slight 7.2% increase in sales volume of self-produced anthracite; revenue from processed coal sales slightly increased, but its average selling price also decreased Revenue Disaggregation Information | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 136,593 | 153,619 | | Coal sales | 136,593 | 153,607 | | Coal trading | – | 12 | | Total | 136,593 | 153,619 | | Revenue in Mainland China | 136,593 | 153,619 | - The average selling price of self-produced anthracite (excluding VAT) decreased by approximately 17.1% from RMB366.7 yuan per ton in the prior period to RMB304.1 yuan per ton in the reporting period, mainly due to declining coal quality and a market price slump; sales volume slightly increased by 7.2% to approximately 0.45 million tons[55] - Revenue from sales of processed coal increased from RMB66.6 million to RMB71.9 million, with its proportion of total revenue rising from 43.4% to 52.6%, primarily due to a 0.01 million ton increase in sales volume, despite a 7.0% decrease in the average selling price of processed coal[55] Finance Costs from Continuing Operations For the six months ended June 30, 2025, finance costs from continuing operations decreased to RMB59,671 thousand from RMB67,196 thousand in the prior period, primarily due to lower interest on interest-bearing bank and other borrowings Finance Costs Breakdown | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on interest-bearing bank and other borrowings | 54,094 | 59,407 | | Interest on lease liabilities | 2,804 | 3,338 | | Interest on payables for mining rights | 1,073 | 1,237 | | Total interest expenses | 57,971 | 63,982 | | Bank charges | 1,003 | 26 | | Discounting interest on bills | 109 | 2,639 | | Accretion expenses | 588 | 549 | | Total | 59,671 | 67,196 | Loss Before Tax from Continuing Operations For the six months ended June 30, 2025, loss before tax from continuing operations significantly increased to RMB286,257 thousand from RMB170,380 thousand in the prior period, mainly due to an impairment loss on property, plant and equipment of RMB111,744 thousand, as well as increased cost of sales, employee benefit expenses, and depreciation and amortization Key Components of Loss Before Tax | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income from bank deposits | (6) | (56) | | Government grants | (4,482) | (5,645) | | Cost of inventories sold | 125,594 | 110,762 | | Sales taxes and surcharges | 6,494 | 8,551 | | Utilisation of safety production funds and maintenance funds | 35,994 | 32,806 | | Cost of sales | 168,082 | 152,119 | | Employee benefit expenses | 95,176 | 92,119 | | Depreciation, depletion and amortization | 56,946 | 47,244 | | Impairment loss on property, plant and equipment | 111,744 | – | Income Tax Credit and Deferred Tax from Continuing Operations For the six months ended June 30, 2025, the income tax credit from continuing operations was RMB4,128 thousand, primarily from deferred tax in mainland China; the Group did not recognize deferred tax liabilities for unremitted earnings of Chinese subsidiaries due to their aggregate losses, and deferred tax assets mainly arose from tax losses and accrued liabilities, while deferred tax liabilities primarily stemmed from depreciation and fair value adjustments of property, plant and equipment Income Tax Credit Breakdown | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current – Mainland China | – | – | | Deferred – Mainland China | 4,128 | 19,922 | | Total | 4,128 | 19,922 | - The Group did not recognize deferred tax liabilities for unremitted earnings of its subsidiaries in Mainland China subject to withholding tax, as the aggregate losses of these subsidiaries resulted in no undistributed distributable earnings[30] Net Deferred Tax Assets and Liabilities | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total deferred tax assets | 96,680 | 87,660 | | Total deferred tax liabilities | (176,756) | (171,863) | | Net deferred tax liabilities | (80,076) | (84,203) | Loss Per Share Attributable to Owners of the Parent For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the parent increased to RMB0.17 yuan from RMB0.10 yuan in the prior period, primarily due to the expanded loss from continuing operations Loss Per Share Calculation | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period attributable to owners of the parent | (238,097) | (143,590) | | Weighted average number of ordinary shares (thousand shares) | 1,380,546 | 1,380,546 | | Loss per share (RMB yuan per share) | (0.17) | (0.10) | - The company had no potential dilutive shares during the reporting period, thus the diluted loss per share is the same as the basic loss per share[36] Dividends The company neither paid nor declared any dividends during the reporting period or the corresponding prior period - The company neither paid nor declared any dividends during the reporting period (six months ended June 30, 2024: nil)[37] Property, Plant and Equipment During the reporting period, additions to property, plant and equipment were RMB2.2 million and additions to construction in progress were RMB22.7 million, both significantly lower than the prior period; total depreciation increased to RMB54.6 million, and due to ongoing operating losses, the company recognized an impairment loss of approximately RMB111.7 million on property, plant and equipment at Liujiaba Coal Mine and Baiping Coal Mine Property, Plant and Equipment Related Changes | Item | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Additions to property, plant and equipment | 2.2 | 9.8 | | Additions to construction in progress | 22.7 | 72.7 | | Total depreciation charged | 54.6 | 43.7 | - Due to continuous operating losses at certain coal mines, the company recognized an impairment loss on property, plant and equipment of approximately RMB111.7 million at Liujiaba Coal Mine and Baiping Coal Mine (prior period: nil)[40] - As of June 30, 2025, mining rights of approximately RMB344.1 million and mining structures, machinery and equipment of approximately RMB20.5 million were pledged to secure bank loans[39] Leases As of June 30, 2025, the carrying amount of right-of-use assets was RMB196,482 thousand, a slight decrease from the beginning of the year primarily due to depreciation expenses; total lease liabilities were RMB97,792 thousand, with current portion at RMB46,723 thousand and non-current portion at RMB51,069 thousand Right-of-Use Assets Carrying Amount Changes | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount at beginning of period/year | 198,819 | 269,098 | | Depreciation expense | (2,337) | (7,850) | | Carrying amount at end of period/year | 196,482 | 198,819 | Lease Liabilities Composition | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount at beginning of period/year | 97,191 | 132,069 | | Carrying amount at end of period/year | 97,792 | 97,191 | | Current portion | 46,723 | 16,990 | | Non-current portion | 51,069 | 80,201 | Trade Receivables As of June 30, 2025, net trade receivables significantly increased to RMB30,067 thousand from RMB5,322 thousand as of December 31, 2024, with receivables within 3 months rising from RMB616 thousand to RMB24,422 thousand; the provision for impairment loss on trade receivables remained at RMB55,404 thousand Net Trade Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 85,471 | 60,726 | | Less: Provision for impairment loss | (55,404) | (55,404) | | Net amount | 30,067 | 5,322 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 24,422 | 616 | | 3 to 6 months | 360 | 584 | | 6 to 12 months | 4,215 | 3,258 | | Over 12 months | 1,070 | 864 | | Total | 30,067 | 5,322 | - As of June 30, 2025, trade receivables of approximately RMB52.0 million were pledged to secure short-term loans of RMB48.2 million[43] Trade Payables As of June 30, 2025, total trade payables increased to RMB908,307 thousand from RMB872,442 thousand as of December 31, 2024, including approximately RMB557.1 million payable to construction-related contractors; trade payables are generally settled within three to six months, while amounts due to contractors are settled within three months to one year Total Trade Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 908,307 | 872,442 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 218,419 | 243,372 | | One to two years | 294,004 | 374,491 | | Over two years | 395,884 | 254,579 | | Total | 908,307 | 872,442 | - Trade payables include amounts due to construction-related contractors of approximately RMB557.1 million as of June 30, 2025 (December 31, 2024: approximately RMB563.9 million)[45] Interest-bearing Bank and Other Borrowings As of June 30, 2025, total interest-bearing bank and other borrowings amounted to RMB1,676,664 thousand, with a current portion of RMB1,655,939 thousand; approximately RMB605.7 million of borrowings were overdue, and RMB74.0 million were reclassified as current liabilities due to loan covenant breaches; various assets, including mining rights, equity interests, trade receivables, and mining structures, were pledged, and the controlling shareholder and fellow subsidiaries provided guarantees, with the Group actively negotiating loan extensions and settlement agreements Total Interest-bearing Bank and Other Borrowings | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total current borrowings | 1,655,939 | 1,686,588 | | Total non-current borrowings | 20,725 | 33,908 | | Total | 1,676,664 | 1,720,496 | - The total amount of interest-bearing bank and other borrowings (including principal and interest) not repaid by the Group according to the repayment schedule is RMB605.7 million; approximately RMB74.0 million of borrowings have been reclassified as current liabilities due to loan covenant breaches[48] - Mr Li Feilie has provided guarantees for approximately RMB1,463.1 million of the Group's borrowings, and fellow subsidiaries have provided guarantees for approximately RMB1,484.1 million of borrowings[48] - Various assets are pledged, including mining rights of approximately RMB344.1 million, the company's equity interests in five entities including Guizhou Puxin, trade receivables of approximately RMB52.0 million, and mining structures, machinery and equipment of approximately RMB20.5 million[47] Management Discussion and Analysis This section provides an overview of the company's business and financial performance, resources, employee policies, and future outlook, highlighting challenges and strategic responses Business Review In H1 2025, China's economy saw moderate recovery with 5.3% GDP growth, but the real estate market remained challenging; the coal industry faced weak supply and demand, with domestic raw coal output up 5.4% but imports down 11.1%, and thermal power generation declining while coal chemical industry was the sole growth driver; coal prices continued to fall, hitting a five-year low in Q2, and the Group faced multiple internal and external challenges, leading to expanded losses and questions about its going concern ability - In H1 2025, China's GDP grew by 5.3% year-on-year, with strong manufacturing but sluggish domestic consumption and persistent headwinds in the real estate sector[50] - The coal industry experienced weak supply and demand, with domestic raw coal output increasing by 5.4% year-on-year in H1, but coal imports decreasing by 11.1% year-on-year to a three-year low[51] - On the demand side, thermal power generation decreased by 2.4% year-on-year, with new energy sources playing a substitution role; the coal chemical industry was the sole growth driver for coal demand[52] - Coal prices continued to fall, reaching a five-year low in Q2 2025, with Q5500 thermal coal prices at northern ports falling by 28.5% year-on-year to RMB619 yuan per ton[52] - The Group faced multiple internal (complex geology, production halts, mining team optimization, lagging tunneling) and external (weak market supply and demand, falling prices, strict regulations, high interest expenses) challenges, leading to plummeting production and sales, rising costs, falling selling prices, operational contraction, and deteriorating cash flow[53] Financial Review The Group's revenue from continuing operations decreased by 11.1% year-on-year to RMB136.6 million, primarily due to a 17.1% decline in average selling price; cost of sales increased by 10.5% to RMB168.1 million, resulting in a gross profit turning into a gross loss of RMB31.5 million; loss from continuing operations significantly increased to RMB282.1 million, mainly impacted by an RMB111.7 million impairment loss on property, plant and equipment, and loss attributable to owners of the parent rose to RMB237.9 million - Revenue from continuing operations decreased by 11.1% year-on-year to RMB136.6 million, primarily due to a 17.1% decline in average selling price, despite a slight 7.2% increase in sales volume[55] - Cost of sales increased by 10.5% year-on-year to RMB168.1 million, mainly due to increased sales volume and higher unit production costs[56] Changes in Unit Cost of Sales for Coal Mining | Cost Item | Six Months Ended June 30, 2025 (RMB/ton) | Six Months Ended June 30, 2024 (RMB/ton) | | :--- | :--- | :--- | | Labor costs | 129.9 | 112.2 | | Raw materials, fuel and energy | 96.5 | 93.3 | | Depreciation and amortization | 88.3 | 84.7 | | Taxes and levies payable to government | 13.9 | 20.1 | | Other production-related costs | 15.4 | 24.4 | | Total | 344.0 | 334.7 | - Overall gross profit turned into a gross loss of RMB31.5 million (prior period gross profit: RMB1.5 million), with a decrease in gross margin, mainly due to falling average selling prices and increased unit cost of sales[61] - Loss from continuing operations increased to RMB282.1 million, primarily due to an impairment loss on property, plant and equipment of approximately RMB111.7 million at Baiping Coal Mine and Liujiaba Coal Mine, as well as reduced gross profit and decreased income tax credit[62] - Loss from continuing operations attributable to owners of the parent increased from RMB143.4 million to RMB237.9 million[63] Financial Resources Review As of June 30, 2025, the Group's net current liabilities increased to RMB4,046.0 million, with cash and cash equivalents at only RMB3.1 million; total interest-bearing bank and other borrowings were RMB1,676.7 million, mostly short-term, with approximately RMB605.7 million overdue; various assets were pledged, and the controlling shareholder and related parties provided guarantees, leading to a deterioration in the debt-to-equity ratio to negative 1,981.6% - As of June 30, 2025, the Group's net current liabilities were approximately RMB4,046.0 million (December 31, 2024: RMB3,888.9 million), and cash and cash equivalents were approximately RMB3.1 million[65][66] - Total interest-bearing bank and other borrowings were approximately RMB1,676.7 million, of which current borrowings and current portion of long-term borrowings amounted to approximately RMB1,655.9 million; approximately RMB605.7 million of borrowings were overdue and could trigger cross-default clauses for other borrowings[66][67] - The Group faces outstanding payables of RMB368.7 million related to ongoing litigation and arbitration; the Group is negotiating loan extensions, waivers, and litigation settlements[67] - Controlling shareholder Mr Li Feilie and fellow subsidiaries provided guarantees for a significant portion of the Group's bank borrowings, amounting to approximately RMB1,463.1 million and RMB1,484.1 million respectively as of June 30, 2025[68] - Various assets are pledged, including mining rights (RMB344.1 million), the company's equity interests (securing bank loans of RMB519.2 million), mining structures, machinery and equipment (RMB20.5 million), and trade receivables (RMB52.0 million)[68][69] - Controlling shareholder Feishang Group Limited pledged its 600,000,000 ordinary shares to secure operating capital financing of up to RMB200.0 million from Guizhou Provincial Material Development Investment Co., Ltd to Guizhou Puxin[70] - The debt-to-equity ratio (calculated as total interest-bearing debt divided by the sum of total equity and total interest-bearing debt) deteriorated from 798.3% as of December 31, 2024, to negative 1,981.6% as of June 30, 2025, primarily due to significant losses[74] Employees and Remuneration Policy As of June 30, 2025, the Group employed 2,475 full-time employees, with total employee costs (including directors' emoluments and wages for workers dispatched by third-party labor agencies) amounting to approximately RMB103.1 million, an increase from the prior period; the company offers remuneration based on industry practice and individual performance, along with medical and retirement benefits, and a share option scheme - As of June 30, 2025, the Group employed 2,475 full-time employees (excluding 541 workers dispatched by third-party labor agencies)[76] - During the reporting period, total employee costs (including directors' emoluments) amounted to approximately RMB103.1 million (prior period: approximately RMB96.8 million)[76] - The Group offers employee remuneration based on industry practice and individual performance, along with medical and retirement benefits, and a share option scheme[76] Outlook China's coal industry continues to face structural constraints and strict regulations, with moderate supply growth and structural demand weakness expected in the second half, leading to narrow fluctuations in coal prices; the Group anticipates ongoing operational challenges in the short term, including geological complexities, mining efficiency issues, and increased compliance costs, and will implement comprehensive measures such as expanding production, quality management, cost control, negotiating repayment plans, and considering fundraising; recovery depends on production restoration, liquidity resolution, and market diversification, with the company also exploring new energy business projects to diversify revenue streams - China's coal industry faces structural constraints and strict regulations, with moderate coal supply growth and persistent structural demand weakness expected in the second half, leading to narrow fluctuations in coal prices[77] - The Group anticipates ongoing operational challenges in the short term, including geological complexities, mining efficiency issues, and increased compliance costs, putting pressure on profitability[78] - The Group will implement comprehensive measures, including expanding production, managing coal quality, enhancing intelligent mining, strictly controlling costs, negotiating favorable loan repayment plans, and considering fundraising activities and disposal plans[78] - The Group's recovery depends on restoring production, addressing liquidity issues, resolving operational inefficiencies, and diversifying into high-quality coal markets to mitigate cyclical risks[78] - The company will explore new energy business projects, leveraging major shareholder resources, to diversify revenue streams and align with national sustainable development goals[78] Other Information This section covers information regarding the purchase, sale or redemption of the company's listed securities, corporate governance practices, the model code for securities transactions by directors, the audit committee, publication of the interim report, acknowledgements, and the composition of the Board of Directors Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[79] Corporate Governance Practices The company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the reporting period - The company has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the reporting period[80] Model Code for Securities Transactions by Directors The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as its 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 Model Code set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions and confirms that all directors have complied with it throughout the reporting period[81] Audit Committee The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and monitoring the Group's financial reporting process, risk management, and internal controls, and has reviewed the Group's interim condensed consolidated financial information for the reporting period - The Audit Committee comprises three independent non-executive directors (Mr Chen Qian, Ms Liang Ying, and Mr Wang Xiufeng) and is responsible for reviewing and monitoring the Group's financial reporting process, risk management, and internal controls[82] - The Audit Committee has reviewed the Group's interim condensed consolidated financial information for the reporting period[82] Publication of Interim Report The company's interim report, containing all relevant information, will be dispatched to shareholders and published on the HKEXnews website and the company's website in due course - The company's interim report, containing all relevant information, will be dispatched to shareholders and published on the HKEXnews website (www.hkexnews.hk) and the company's website (www.fsanthracite.com) in due course[83] Acknowledgements The Board expresses its gratitude to all employees and the management team for their efforts and dedication during the reporting period, and extends sincere thanks to all shareholders for their continued support - The Board expresses its gratitude to all employees and the management team for their efforts and dedication, and extends sincere thanks to all shareholders for their continued support[84] Board of Directors As of the date of this announcement, the Board of Directors comprises executive directors Mr Wang Xinhua, Mr He Jianhu, Mr Tan Zhuohao, and Mr Huang Huaan, and independent non-executive directors Mr Chen Qian, Ms Liang Ying, and Mr Wang Xiufeng - As of the date of this announcement, the executive directors are Mr Wang Xinhua, Mr He Jianhu, Mr Tan Zhuohao, and Mr Huang Huaan; the independent non-executive directors are Mr Chen Qian, Ms Liang Ying, and Mr Wang Xiufeng[85]