Resource and Production - The company reported a resource amount of 54.96 million tons of ordinary magnetite with an average grade of 22.81% TFe as of January 1, 2022[5]. - The Maoling Processing Plant has a capacity of 150,000 tons per annum for high-grade iron concentrates[5]. - The exploration area for the Maoling-Yanglongshan Mine is 11.6 square kilometers, including a mining area of 1.9 square kilometers[5]. - The Shigou Gypsum Mine has a resource amount of 10.37 million tons with a grade of 90.64% gypsum and anhydrite[5]. - Production volume of high-grade iron concentrates fell by 19.0% primarily due to production disruptions and suspension[30]. - The Maoling-Yanglongshan Mine is producing iron concentrates with Fe contents ranging from 65% to 72%[32]. - The Group's operations are affected by dynamic macro business environments, including adverse changes in market conditions for iron concentrates and steel trading[37]. Financial Performance - The Group reported a revenue decline of 5.1% to approximately RMB233.8 million due to renewed COVID-related restrictions and operational disruptions caused by earthquakes in Sichuan Province[30]. - Revenue for 1H2022 decreased to approximately RMB233.8 million, down 5.1% from RMB246.3 million in 1H2021 due to lower production volume and average selling prices[42]. - Gross profit for 1H2022 was approximately RMB7.1 million, down 31.0% from RMB10.3 million in 1H2021, resulting in a gross profit margin of 3.0% compared to 4.2% in 1H2021[42]. - Loss attributable to owners of the Company was RMB7.7 million in 1H2022, up 13.2% from RMB6.8 million in 1H2021[42]. - The Group recorded a net loss of RMB7.7 million for 1H2022, compared to a net loss of RMB6.8 million in 1H2021[44]. - Other income and gain decreased significantly to RMB0.9 million in 1H2022, down 59.5% from RMB2.1 million in 1H2021[42]. Market Conditions - During the first half of 2022, global economic growth is expected to decline from approximately 6.1% in 2021 to approximately 3.6% in 2022 and 2023[17]. - China's GDP in the first half of 2022 showed a year-on-year growth of 2.5%, which is below the annual target of 5.5%[17]. - Steel production in China saw a significant drop, with 96.6 million tonnes produced in May 2022, representing a year-on-year decrease of 3.5%[17]. - Steel prices in China plummeted to a low of RMB4,868 per tonne in late June 2022 due to various economic pressures[17]. - The National Development and Reform Commission of the PRC aims for a year-on-year reduction in crude steel production in 2022[20]. - Key regions for steel output reduction include the Jing-jin-ji Metropolitan region and the Yangtze River Delta region[20]. Management and Strategy - The company appointed Mr. Hao Xiemin as acting chief executive officer effective July 13, 2022, following the resignation of Mr. Jiang Zhong Ping[10]. - The company is focused on inclusiveness and adaptability as part of its strategic foundation[1]. - The interim report highlights the company's commitment to expanding its mining operations in Sichuan and surrounding provinces[4]. - The management discussion emphasizes the importance of market expansion and potential acquisitions to drive growth[7]. - The company aims to enhance its processing capabilities to improve product quality and efficiency[5]. - The Group is exploring new technologies for resource extraction to increase operational efficiency[7]. Costs and Expenses - Administrative expenses increased to RMB 11.2 million in 1H2022 from RMB 8.9 million in 1H2021, primarily due to higher professional fees for corporate transactions[32]. - Selling and distribution expenses remained relatively stable at approximately RMB0.3 million for 1H2022, compared to RMB0.2 million in 1H2021[42]. - Finance costs increased to RMB2.7 million for 1H2022, up 15.2% from RMB2.4 million in 1H2021[42]. - Other expenses increased to RMB1.6 million for 1H2022, up from RMB1.3 million in 1H2021, due to higher absorption cost per unit from lower production volume[44]. Cash Flow and Liquidity - Cash and cash equivalents at the beginning of the period were RMB6,436,000, decreasing to RMB3,747,000 by the end of the period[46]. - Net cash flows from operating activities were RMB655,000 for 1H2022, compared to a net cash outflow of RMB38,820,000 in 1H2021[46]. - Net cash flows used in investing activities were RMB10,021,000 for 1H2022, compared to RMB9,757,000 in 1H2021[46]. - Net cash flows from financing activities were RMB6,672,000 for 1H2022, compared to RMB4,445,000 in 1H2021[46]. Share Options and Equity - As of June 30, 2022, the Directors and chief executives held a total of 9,600,000 share options, representing 0.44% of the Company's issued share capital[85]. - The 2020 Option Scheme was adopted to ensure continuity after the expiration of the previous scheme, effective for 10 years from June 16, 2020[89]. - No share options were granted, exercised, cancelled, or lapsed during the reporting period[97]. - The exercise price for the share options is set at HKD 1.00 per option[93]. - As of June 30, 2022, Trisonic International holds 1,006,754,000 shares, representing 44.76% of the company's issued share capital[106]. Employee and Governance - The number of employees increased to 232 as of June 30, 2022, up from 127 on December 31, 2021[118]. - Employee benefit expenses for 1H2022 were approximately RMB 12.4 million, compared to RMB 15.2 million in 1H2021[118]. - The audit committee consists of three independent non-executive directors, responsible for risk management and internal control[118]. - The company continues to review and monitor its corporate governance practices to ensure compliance with applicable codes[122].
中国铁钛(00893) - 2022 - 中期财报