Financial Performance - For the six months ended December 31, 2022, the company reported a net loss attributable to shareholders of HK$43,424,000, a significant improvement compared to a net loss of HK$275,329,000 for the same period in 2021[23]. - The loss in 1H FY2023 was primarily driven by a HK$152,007,000 impairment loss on the company's interest in Mount Gibson Iron Limited[23]. - The net attributable profit from primary strategic investments was HK$2,057,000 in 1H FY2023, compared to a net loss of HK$105,467,000 in 1H FY2022[24]. - The company reported a loss for the period of HK$43,424, compared to a loss of HK$32,473 in the previous year, indicating an increase in losses of approximately 33.5%[199]. - The total comprehensive expense for the period was HK$329,605, compared to HK$54,276 in the previous year, reflecting an increase of approximately 507.5%[195]. - The company’s accumulated profits decreased to HK$2,301,972 from HK$2,666,310, a decline of approximately 13.7%[195]. Segment Performance - The Resource Investment division generated a segment profit of HK$114,919,000, contributing to an underlying segment profit of HK$102,324,000 for the group[23]. - The Commodity Business generated a segment profit of HK$6,993,000, a decrease of 86.1% compared to HK$50,192,000 in 1H FY2022[104]. - The Principal Investment and Financial Services segment reported a loss of HK$15,957,000 in 1H FY2023, compared to a profit of HK$24,843,000 in 1H FY2022[105]. - The Precious Metals segment generated a net fair value profit of HK$35,331,000 in 1H FY2023, with a carrying value of HK$376,387,000 as of 31 December 2022[125]. Investment Strategy - The company remains cautious for 2023 due to the risk of further interest rate hikes as inflation remains high[21]. - The company is focusing on low carbon industries, including electric vehicles, battery metals, and renewable energy, as these are expected to be enduring growth sectors[21]. - The company has not declared a dividend at this interim stage due to current uncertainties in the global outlook[21]. - The company is closely monitoring the reopening of China, which may support certain "old economy" commodities[21]. - The company anticipates that measures to support the economy, such as new infrastructure projects, could bolster near-term commodity prices[16]. - The group plans to continue a prudent investment approach, focusing on high-quality investment opportunities that can generate substantial long-term returns[188]. Market Conditions - The company has faced challenges due to global economic conditions, including interest rate hikes by the US Federal Reserve and their impact on equity valuations[40]. - The ongoing Russia-Ukraine conflict continues to create uncertainty in energy exports, affecting market conditions[41]. - Chinese steel demand has been relatively muted, impacting the restocking desire of steel mills despite low coking coal inventories[86]. - Demand for tin remains strong, driven by the semiconductor and solar PV industries, with prices rebounding to US$27,500 per tonne[68]. Asset Management - The company's strategic investments in Metals X and Shougang Fushan represented significant portions of total assets, with Metals X valued at HK$365,120,000 (8.4% of total assets) and Shougang Fushan at HK$312,844,000 (7.2% of total assets) as of December 31, 2022[64][60]. - Shougang Fushan experienced a fair value loss of HK$88,783,000, while Metals X generated an unrealised gain of HK$39,671,000 in 1H FY2023[60][64]. - The company’s investments in financial assets at fair value through profit or loss primarily include holdings in Metals X and Resource Investment, with both investments constituting over 5% of total assets[31]. - As of 31 December 2022, the Group's non-current assets amounted to HK$2,254,614,000, down from HK$2,386,729,000 as of 30 June 2022[110]. Cash Flow and Liquidity - Net cash generated from investing activities was HK$167,419, a significant increase from HK$16,641 in the prior period, representing a growth of approximately 906.5%[199]. - Interest received decreased to HK$11,737 from HK$21,656, reflecting a decline of approximately 45.9%[199]. - The group had outstanding warrants of 160,187,175 units that lapsed after October 6, 2022, with a total of HK$100,310,000 raised from exercised warrants used for investments in the natural resources sector[172]. - The group maintained a gearing ratio of nil as of December 31, 2022, consistent with the previous year[135]. Future Outlook - The company is focused on increasing productivity at the Koolan Island mine, which is expected to generate strong free cash flow in the future[188]. - The group is cautiously optimistic about the outlook for commodities in 2023, anticipating potential stimulus measures in China following a challenging 2022[184]. - The group will regularly review its investment strategy to mitigate risks associated with market sentiment and economic conditions[183].
亚太资源(01104) - 2023 - 中期财报