Financial Performance - The company recorded a profit attributable to owners of approximately HKD 13,930,000 for the six months ended June 30, 2023, a decrease from HKD 26,832,000 for the same period in 2022 [5]. - The overall net profit decreased by about 47% year-on-year, mainly due to a decline in the average gold ore grade mined in 2023 [50]. - Basic and diluted earnings per share for the period were HKD 0.41, compared to HKD 0.79 for the same period in 2022 [58]. - The net profit for the six months ended June 30, 2023, was HKD 16,080 thousand, compared to HKD 30,257 thousand in 2022, reflecting a decline of approximately 46.8% [78]. - For the six months ended June 30, 2023, the company's pre-tax profit was HKD 22,720,000, a decrease of 35.5% compared to HKD 35,331,000 for the same period in 2022 [153]. Revenue and Sales - Revenue for the six months ended June 30, 2023, was HKD 676,548 thousand, significantly up from HKD 179,593 thousand in the same period of 2022, marking an increase of approximately 276.5% [78]. - The group achieved a revenue growth of approximately 277% year-on-year, primarily due to the expansion into gold recycling business since the second half of 2022 [49]. - The total revenue from gold recovery operations for the six months ended June 30, 2023, was HKD 110,844,000, compared to HKD 78,456,000 for the same period in 2022, reflecting a year-on-year increase of 41.3% [148]. - The gold mining business generated revenue of approximately HKD 192,423,000, an increase of about 7.1% compared to HKD 179,593,000 in the same period last year, driven by an increase in the average selling price of gold [122]. - The gold recycling business contributed approximately HKD 484,125,000 in revenue during the interim period, with a sales cost of about HKD 483,541,000, resulting in a minimal gross profit of approximately HKD 584,000 [131]. Costs and Expenses - Sales costs increased by approximately 23.6% to HKD 143,442,000 compared to HKD 116,008,000 in the same period last year [17]. - Gross profit for the same period was HKD 49,565 thousand, down from HKD 63,585 thousand in 2022, indicating a decrease of about 22% [78]. - Administrative and other expenses were approximately HKD 22,669,000, a decrease of about 5.3% compared to HKD 23,950,000 in the same period last year, mainly due to reduced employee costs [122]. - The total comprehensive expenses for the period were HKD 50,373 thousand, down from HKD 72,129 thousand in the previous year, indicating a decrease of approximately 30.2% [78]. - The company reported a decrease in administrative and other expenses to HKD 22,669 thousand from HKD 23,950 thousand, a reduction of about 5.3% [78]. Assets and Liabilities - The total assets and net assets of the group as of June 30, 2023, were approximately HKD 3,508,096,000 and HKD 1,982,983,000, respectively [25]. - The current ratio decreased to approximately 0.17 from 0.28 as of December 31, 2022 [25]. - The total bank and other borrowings amounted to approximately HKD 154,262,000, a decrease from HKD 160,905,000 as of December 31, 2022 [26]. - The debt-to-equity ratio was approximately 8.3% as of June 30, 2023, compared to 8.5% as of December 31, 2022 [26]. - As of June 30, 2023, total assets amounted to HKD 3,402,165 thousand, a slight decrease from HKD 3,439,471 thousand as of December 31, 2022, representing a decline of approximately 1.1% [59]. Cash Flow and Financing - Cash and cash equivalents decreased to HKD 73,792 thousand from HKD 143,105 thousand, a reduction of about 48.3% [59]. - The net cash used in operating activities for the first half of 2023 was HKD (46,241,000), compared to HKD (12,431,000) in the same period of 2022, indicating a worsening cash flow situation [101]. - The company incurred a loss of HKD 4,827,000 from financing activities in the first half of 2023, contrasting with a gain of HKD 27,544,000 in the same period of the previous year [101]. - Interest expenses on unsecured bank and other borrowings decreased to HKD 7,791,000 for the six months ended June 30, 2023, down from HKD 12,007,000 in the same period of 2022, representing a reduction of 35.5% [146]. - The company's cash and cash equivalents decreased to HKD 15,184,000 as of June 30, 2023, from HKD 6,717,000 as of December 31, 2022 [175]. Strategic Initiatives - The company plans to closely monitor commodity price trends and take necessary actions to mitigate potential risks [38]. - The company remains committed to corporate social responsibility, focusing on environmental sustainability and community support [39]. - The group plans to leverage the growing demand for gold recycling to expand market share and enhance its reputation in the gold industry in mainland China [49]. - The company plans to continue seeking opportunities and exploring other investment avenues to enhance its portfolio and provide returns to shareholders in the post-pandemic era [72]. - The company has expanded its operations into gold recycling in China, which is now considered a new reportable segment [111]. Acquisitions and Investments - The group successfully acquired Hong Yong Investment Limited and its subsidiaries on July 21, 2023, which has over 16 tons of gold reserves [50]. - The company completed the acquisition of mining licenses, resulting in an addition of approximately HKD 13,779,000 to other intangible assets [183]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the interim period [46]. - The company has a total of HKD 1,510,989,000 in share premium and reserves as of June 30, 2023, down from HKD 1,555,210,000 at the end of 2022, reflecting a decrease of approximately 2.9% [82]. Employee and Operational Metrics - Employee costs for the interim period amounted to approximately HKD 9,171,000, down from HKD 11,343,000 for the same period in 2022 [47]. - Total employee costs for the six months ended June 30, 2023, were HKD 9,171,000, a decrease of 19.2% from HKD 11,343,000 in the same period of 2022 [178]. - The company engaged in exploration and mining activities, with a total mining output of 88.9 thousand tons and an average gold grade of 3.89 grams per ton during the interim period [127]. - The company has completed approximately 4,353 meters of pit exploration and 2,679 meters of underground drilling during the interim period [130]. - The company’s exploration and evaluation expenses for the first half of 2023 were HKD (3,199,000), a decrease from HKD (7,001,000) in the same period of 2022, indicating a reduction in exploration activities [101].
潼关黄金(00340) - 2023 - 中期财报