Financial Performance - The Group's turnover decreased in the first half of 2023 primarily due to a decline in both the selling price of coking coals and coal production volume[9]. - Revenue from the coal operation business, Hengbotai, was approximately HK$10,126,000 for the six months ended June 30, 2023, a significant decrease from approximately HK$72,345,000 in the same period of 2022[18]. - For the six months ended June 30, 2023, the Group recorded a loss of approximately HK$1,904,000,000, compared to a profit of approximately HK$864,315,000 for the same period in 2022, indicating a significant decline in performance[24][26]. - Revenue for the six months ended June 30, 2023, was approximately HK$560,663,000, a decrease of approximately HK$602,828,000 from approximately HK$1,163,491,000 in the same period of 2022[24][26]. - Gross profit for the six months ended June 30, 2023, was approximately HK$20,972,000, with a gross profit margin of 3.7%, down from approximately HK$485,490,000 and a gross profit margin of 41.7% in the prior year[25][27]. - Loss attributable to owners of the Company was approximately HK$1,000,447,000 for the six months ended June 30, 2023, compared to a profit of approximately HK$304,288,000 in the same period of 2022[35][38]. - The total comprehensive income for the period was reported as a loss of HK$970,188,000, compared to a total comprehensive income of HK$313,544,000 in the same period of 2022[187]. Production and Operations - As of June 30, 2023, the Group operated 5 coking coal mines, with expected production capacities of 600,000 tonnes per year for both Fuchang Mine and Liaoyuan Mine[10]. - The Jinxin Mine resumed operations in April 2023 after the renewal of its Safety Production Certificate, with an expected production capacity of 600,000 tonnes per year[17]. - The reorganization and consolidation of Bolong Mine and Xinfeng Mine were approved in November 2022, combining their resources and production schedules[16]. - The expected production schedule for the combined resources of Bolong Mine and Xinfeng Mine will commence after the completion of Bolong Mine's original production schedule[16]. - The Group's coal mines in full operation during the first half of 2023 were Fuchang Mine and Liaoyuan Mine, both of which have passed safety inspections and obtained necessary permits[11]. Financial Position - As of June 30, 2023, the Group recorded total assets of approximately HK$6,620,551,000, down from approximately HK$8,969,435,000 as of December 31, 2022[47]. - Total liabilities as of June 30, 2023, were approximately HK$9,006,462,000, compared to approximately HK$9,435,125,000 as of December 31, 2022[47]. - The Group's total capital deficiencies increased to approximately HK$2,385,911,000 as of June 30, 2023, from approximately HK$465,690,000 as of December 31, 2022[47]. - The Group had total cash and cash equivalents of approximately HK$111,418,000 as of June 30, 2023, down from approximately HK$161,675,000 as of December 31, 2022[49]. - The company's total equity attributable to owners decreased to HK$1,171,628,000 as of June 30, 2023, from HK$2,121,661,000 at the beginning of the year[187]. Debt and Financing - The outstanding principal amount of the 2017 Convertible Loan Note is US$40,000,000 (equivalent to HK$312,000,000), with demands for full repayment including unpaid interest[69]. - A statutory demand was received on July 22, 2022, requiring payment of US$84,943,738.72 under the 2017 Convertible Loan Note[60]. - The company is negotiating with non-controlling interests to extend repayment due dates for outstanding debts[66]. - The company is actively seeking external financing and fundraising opportunities to improve its financial position[66]. - The company aims to address audit modifications and uncertainties regarding its ability to continue as a going concern[65]. Market Conditions - The macroeconomic environment remains challenging, with inflationary pressures leading to currency exchange rate fluctuations and a decline in consumer sentiment[9]. - The Group remains optimistic about the short-term growth of the coal industry in Shanxi due to positive government attitudes and infrastructure development[87]. - The Shanxi government maintains a positive attitude towards local economic development, which is expected to benefit the coal industry in the short term[120]. Corporate Governance - The company has complied with the Corporate Governance Code except for the deviation where the roles of chairman and CEO are held by the same individual[165]. - The Board consists of two executive Directors and three independent non-executive Directors, ensuring a balance of power[165]. - The company has confirmed compliance with the Model Code for securities transactions by Directors during the six months ended June 30, 2023[166]. Employee and Shareholder Information - The Group employed approximately 1,318 full-time employees in Hong Kong and PRC as of June 30, 2023[118]. - As of June 30, 2023, Mr. Zhang Sanhuo holds 94,292,961 shares, representing approximately 17.9175% of the issued share capital[128]. - The total number of shares issued as of June 30, 2023, is 526,260,404[131].
绿领控股(00061) - 2023 - 中期财报