Financial Performance - For the fiscal year 2021, Newton Resources Ltd reported revenue of approximately $292.9 million, a decrease of about 37% compared to $467.5 million in 2020[7]. - The gross profit for 2021 was approximately $5.4 million, down 19% from $6.7 million in 2020[4]. - The company recorded a net loss of approximately $1.8 million in 2021, compared to a net profit of $0.8 million in 2020[4]. - The company's revenue decreased by approximately 37% to about $292.9 million, down from approximately $467.5 million in the fiscal year 2020[16]. - The net loss for the period was approximately $1.8 million, compared to a net profit of $0.8 million in 2020, primarily due to reduced gross profit and impairment losses[24]. - The total comprehensive loss for the year was $1.82 million, compared to a total comprehensive income of $0.22 million in 2020, indicating a significant downturn[154]. - Basic and diluted loss per share for the year was $(0.04), compared to earnings of $0.02 per share in 2020[155]. - The company reported a loss from continuing operations before tax of $1.74 million for 2021, compared to a profit of $1.06 million in 2020[154]. Assets and Liabilities - The total assets as of December 31, 2021, were $37.8 million, a significant decrease from $135.7 million in 2020[7]. - Total liabilities decreased to approximately $7.5 million from $103.6 million in 2020, reflecting a reduction in accounts payable and repayment of borrowings[25]. - The total equity as of December 31, 2021, was approximately $30.2 million, down from $32.0 million in 2020[29]. - Current assets significantly dropped from $118,870,000 in 2020 to $21,752,000 in 2021, a decrease of about 81.7%[157]. - The net asset value decreased from $32,049,000 in 2020 to $30,230,000 in 2021, a decline of about 5.7%[158]. - The company’s cash and cash equivalents decreased from $15,190,000 in 2020 to $14,504,000 in 2021, a decline of approximately 4.5%[157]. Market Conditions and Challenges - The company anticipates challenges in 2022 due to ongoing supply constraints and market volatility[5]. - The ongoing tightening of credit policies in China has led to a slowdown in the real estate and construction sectors, negatively impacting steel demand[13]. - The geopolitical uncertainty between Russia and Ukraine may significantly impact global iron ore supply and demand balance, potentially tightening the market[40]. - In 2022, iron ore prices are expected to decline due to overall weak demand, despite initial strong demand from Chinese enterprises after the Lunar New Year[40]. - The company anticipates low supply from Koolan iron ore in the first half of 2022 due to COVID-19 related restrictions and limited technical personnel[42]. Business Strategy and Development - The business development team has been established to enhance supplier and customer relationships and explore new business opportunities[10]. - The company aims to explore suitable acquisition and collaboration opportunities to support its resource business growth[5]. - The company plans to continue exploring new iron ore and other commodity supplies to enhance its product offerings despite ongoing operational challenges[18]. - The company aims to optimize its resource business and explore new iron ore and commodity supply opportunities to diversify its product offerings[42]. - The management team is closely monitoring market developments and will take necessary measures to accelerate iron ore sales despite challenging business conditions[42]. Corporate Governance - The company has established a clear distinction between the roles of the Chairman and the Chief Executive Officer (CEO) to ensure balanced power distribution[49]. - The Nomination Committee was formed on June 8, 2011, consisting of four members, including independent non-executive directors and an executive director[51]. - The company aims to comply with the new regulations regarding board diversity by appointing at least one suitable female board member by December 31, 2024[53]. - The board is responsible for reviewing and monitoring the training and continuous professional development of directors and senior management[56]. - The company has a policy for the appointment and re-election of directors, requiring all directors to retire at least once every three years[50]. Risk Management and Internal Controls - The company has implemented policies for timely communication of information and reporting of any suspicious activities[79]. - The risk management department conducted internal audits to ensure the effectiveness of internal controls and risk management, reporting no significant control deficiencies during the fiscal year 2021[77]. - The audit committee ensured coordination between internal and external auditors and reviewed the effectiveness of the internal audit function[85]. - The company established a comprehensive risk management and internal control framework aligned with the guidelines from the Hong Kong Institute of Certified Public Accountants[77]. - The company recognizes property, plant, and equipment at cost less accumulated depreciation and any impairment losses[188]. Shareholder Relations - The company maintains effective communication with shareholders and investors through various platforms, including performance announcements and reports[91]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting[92]. - The company adopted a dividend policy where any dividend payment will be at the discretion of the board, depending on the group's business conditions, cash flow, and financial performance[95]. - The group did not recommend the payment of a final dividend for the fiscal year 2021, consistent with the previous year[109]. - The company plans to hold its 2022 Annual General Meeting on June 9, 2022[139]. Environmental and Social Responsibility - The company has been actively enhancing its environmental policies and practices, focusing on resource efficiency and carbon emission reduction[118]. - The company has implemented measures to protect employees during the COVID-19 pandemic, including remote work policies and flexible hours[38]. Audit and Compliance - The independent auditor, Ernst & Young, confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2021[143]. - The audit committee reviewed the financial statements and internal audit reports for the fiscal year 2020 and the interim financial report for the six months ending June 30, 2021[85]. - The financial statements were prepared under the assumption of the group's ability to continue as a going concern[149]. - The company has adopted several revised International Financial Reporting Standards in the current year, which did not have a significant impact on its financial performance[174].
新矿资源(01231) - 2021 - 年度财报