Financial Performance - The company's revenue for the six months ended June 30, 2022, was approximately $108.7 million, a decrease of about 56% compared to $248.6 million in the same period last year[7]. - Gross profit for the reporting period was approximately $3.4 million, down from $8.6 million in the previous year, reflecting a decline of about $5.2 million[7]. - The company's net profit for the period was approximately $0.2 million, down from $1.2 million in the previous year[7]. - The net profit for the six months ended June 30, 2022, was $186,000, compared to $1.16 million in the previous year, reflecting a decrease of 83.9%[46]. - The total comprehensive income for the period was $196 thousand, down from $1,134 thousand in the same period of the previous year, representing a decline of approximately 82.7%[49]. - The company reported a basic and diluted earnings per share of $0.01 for the six months ended June 30, 2022, down from $0.03 in the same period of 2021[46]. - The company reported a net profit of $240 thousand for the six months ended June 30, 2022, compared to a net profit of $1,211 thousand for the same period in 2021, indicating a decrease of approximately 80.2%[49]. Sales and Production - The company sold approximately 0.8 million tons of iron ore during the reporting period, compared to 1.5 million tons in the same period last year[7]. - Revenue from iron ore sales was $99,595 thousand, while transportation services generated $11,279 thousand for the six months ended June 30, 2022[58]. - The average unit selling price of iron ore during the reporting period was approximately $128 per ton, down from $166 per ton in the same period last year, reflecting a decrease in sales volume and pricing due to market conditions[19]. - The average iron content of iron ore sold during the reporting period increased to approximately 63%, up from about 58% in the same period last year[13]. - The iron ore production volume reached 1.2 million tons, with an 80% utilization rate of the available capacity from the Koolan Island mine[101]. Assets and Liabilities - The total assets as of June 30, 2022, were $66.1 million, an increase from $37.8 million as of December 31, 2021[5]. - Total liabilities increased to approximately $35.7 million from $7.5 million as of December 31, 2021, mainly due to trade payables and other accrued liabilities[23]. - Cash and cash equivalents were approximately $12.7 million as of June 30, 2022, down from $14.5 million as of December 31, 2021, representing about 19% of total assets[27]. - The net cash position (cash and cash equivalents minus interest-bearing borrowings) was approximately $7.9 million as of June 30, 2022, compared to $9.0 million as of December 31, 2021[29]. - As of June 30, 2022, trade receivables amounted to $17,490 thousand, significantly up from $1,199 thousand as of December 31, 2021[67]. - Accounts payable reached $15,593,000 as of June 30, 2022, compared to $1,188,000 as of December 31, 2021, indicating a substantial increase[72]. Market Conditions - The company faced challenges due to the ongoing COVID-19 pandemic and fluctuations in iron ore prices, which negatively impacted demand and sales[3]. - Global economic growth is projected to decline from approximately 5.9% in 2021 to about 4.4% in 2022, influenced by inflation and supply chain disruptions[8]. - China's GDP growth in Q2 2022 was approximately 0.4% year-on-year, with a total growth of about 2.5% during the reporting period[9]. - China's crude steel production in the first half of 2022 decreased by approximately 6.5% compared to the same period in 2021, due to ongoing pressures in the real estate and construction sectors[9]. - The Platts IODEX price for iron ore dropped to approximately $120 per ton by the end of Q2 2022, down from about $158 per ton at the end of Q1 2022, reflecting significant price volatility[10]. Operational Challenges - A fire at the Koolan iron ore mine in August 2022 is expected to affect the supply of iron ore, although recovery plans are in place to restore operations to about 70% capacity[4]. - A fire at the iron ore processing plant in Koolan in mid-August 2022 has temporarily halted ore processing, impacting the group's iron ore sales for the remainder of the year[39]. - The company incurred transportation costs of approximately $11.3 million during the reporting period, compared to about $7.6 million in the same period last year[16]. Strategic Initiatives - The business development team is focused on sourcing new customers and managing supplier relationships to support commodity supply and delivery[8]. - The company aims to optimize its resource business and mitigate adverse impacts from COVID-19, weak market demand, and supply chain disruptions[40]. - The company is actively seeking new iron ore and other commodity supplies and aims to establish viable long-term business relationships with suitable suppliers[40]. - The company plans to explore and seize appropriate merger and acquisition opportunities as part of its strategic initiatives[40]. - The company has implemented cost-reduction strategies that are expected to lower operational expenses by 5% in the upcoming year[101]. Governance and Compliance - The interim financial data was approved by the board of directors on August 25, 2022[85]. - The company has established an audit committee to oversee financial reporting, risk management, and internal controls[92]. - There were no significant deviations from the corporate governance code during the reporting period[88]. - The group did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the same period in 2021[62].
新矿资源(01231) - 2022 - 中期财报