Financial Performance - The company reported revenue of approximately RMB 4,284.3 million and adjusted EBITDA of approximately RMB 1,205.8 million for the year ended December 31, 2022, representing increases of approximately 50.9% and 20.6% respectively compared to the previous year[10]. - Gross profit for the year was approximately RMB 1,785 million, an increase of about RMB 455 million or approximately 34.3% from RMB 1,330 million in 2021, with a gross margin of approximately 41.7%[11]. - The company reported a revenue of approximately RMB 4,284.3 million for the year, an increase of about 50.9% compared to RMB 2,839.7 million in the previous year[31]. - The company recorded a gross profit of approximately RMB 1,785.4 million and adjusted EBITDA of approximately RMB 1,205.8 million for the year[28]. - The annual profit was approximately RMB 537.3 million, a decrease of about RMB 107.1 million or 16.6% compared to RMB 644.4 million in 2021[48]. - The adjusted EBITDA for the year was approximately RMB 1,205.8 million, with an adjusted EBITDA margin of 28.1%, down from 35.2% in 2021[50]. - The company's sales cost for the year was approximately RMB 2,498.8 million, an increase of about RMB 988.7 million or 65.5% compared to RMB 1,510.1 million in 2021[34]. - Other income for the year was approximately RMB 51.8 million, a significant increase of about RMB 25.4 million or 96.2% compared to RMB 26.4 million in 2021, mainly due to government subsidies[41]. - The company recorded other losses of approximately RMB 255.8 million, compared to RMB 50.1 million in 2021, primarily due to increased losses from the disposal of properties and foreign exchange losses[42]. Production and Operations - Raw coal production increased by approximately 33.1% from about 4,078,000 tons in 2021 to approximately 5,429,000 tons in 2022, while coking coal production rose by approximately 14.5% from about 1,527,000 tons to approximately 1,749,000 tons[10]. - The total production from the nine integrated coal mines was approximately 5,226,000 tons in 2022, which is 95.0% of the estimated budgeted production of 5,500,000 tons[17]. - The company estimates a budgeted production of approximately 7,300,000 tons for the year 2023[18]. - The company estimates a production capacity of approximately 300,000 tons for the year 2023, following the resumption of production at the Tianbao Coal Mine[22]. - In Yunnan Province, the total approved integrated production capacity for the company's eight coal mines is approximately 3,600,000 tons, with a total production of about 98,000 tons in 2022, representing 49.0% of the estimated budgeted production of 200,000 tons[24]. - The company plans to consolidate five existing coal mines into three, each with a target annual production level of 450,000 tons[20]. - The company faced increased material consumption and costs due to capacity upgrades and optimization processes, leading to higher production costs[11]. Market and Sales - Coking coal sales volume increased by approximately 27.3% to 1,824,200 tons in the current year from 1,433,000 tons in the previous year[31]. - The average selling price of coking coal rose by approximately 21.1% to RMB 2,244.9 per ton from RMB 1,854.5 per ton[31]. - The company reported a total sales amount of approximately RMB 2,359 million from its top five customers, accounting for 55.1% of total revenue[94]. - The largest single customer contributed approximately RMB 660 million, representing 16.1% of total revenue[94]. - The company’s procurement from its top five suppliers amounted to approximately RMB 482 million, representing 33.2% of total procurement[94]. - The largest single supplier accounted for approximately RMB 150 million, which is 10.4% of total procurement[94]. Debt and Restructuring - The company is undergoing a restructuring process as part of its financial resource and capital structure management[12]. - The company is undergoing a debt restructuring process, which was approved at a special shareholders' meeting on January 30, 2023[29]. - A debt restructuring plan was announced on November 23, 2022, which included issuing preferred shares and a settlement agreement with creditors[65]. - The restructuring was successfully implemented on March 31, 2023, releasing all obligations under the notes[65]. - The total amount due to noteholders was approximately USD 190.6 million as of the last reporting period[55]. - The company is currently coordinating with professionals to complete a debt restructuring, which is expected to improve its financial health and sustainable cash flow[161]. - The debt restructuring plan includes issuing preferred shares to several Chinese lending banks and settling agreements with domestic creditors, effective March 31, 2023[162]. Governance and Compliance - The company has established appropriate directors and officers liability insurance for its directors and senior management[104]. - The audit committee consists of three independent non-executive directors and has reviewed the financial statements for the year ending December 31, 2022[118]. - The company has complied with the corporate governance code throughout the year[123]. - The board consists of six directors, including three independent non-executive directors, ensuring compliance with corporate governance standards[131]. - All independent non-executive directors confirmed their independence according to the listing rules, meeting the necessary criteria[140]. - The company held four board meetings during the year, with full attendance from all directors[143]. - The remuneration committee reviewed and approved the annual salary review and remuneration policy for directors and employees in one meeting[150]. - The nomination committee has adopted a board diversity policy, focusing on various diversity aspects such as gender, age, and professional experience[151]. - The company has established a three-year fixed-term service agreement with all executive directors, subject to rotation and re-election eligibility[132]. - The company provides retirement benefit plan contributions and discretionary bonuses based on individual contributions[150]. - The chairman and president roles are separated to enhance independence and accountability within the company[137]. - The board is responsible for the overall development and direction of the group, including strategy formulation and risk management[136]. - The company encourages continuous professional development for directors to ensure informed contributions to the board[141]. Environmental, Social, and Governance (ESG) - The ESG report covers activities, challenges, and measures taken during the year ending December 31, 2022, highlighting the company's commitment to sustainable development[169]. - The company has established an ESG governance framework to ensure alignment with business strategies and integrate ESG management into operations and decision-making processes[175]. - The management team is responsible for the execution of ESG matters, meeting at least once a year to review policies and progress towards ESG-related goals[176]. - The company has implemented a data collection system to enhance the disclosure of environmental and social data starting from 2022[174]. - The company has set multiple environmental goals for 2022, including reducing greenhouse gas emissions and increasing hazardous waste management projects[183]. - The company reported nitrogen oxides emissions of approximately 999.17 kg, sulfur oxides emissions of 5.14 kg, and particulate matter emissions of 89.52 kg during the reporting period[186]. - The company emphasizes compliance with environmental laws and regulations, with no significant violations reported during the period[185]. - The company aims to improve resource usage and supply chain management as part of its ESG priorities[181]. - The company plans to promote energy and water conservation through employee awareness activities[183]. - The company has established a systematic approach for annual materiality assessments to identify and prioritize significant ESG issues[180]. - The company maintains close communication with stakeholders, including shareholders, government bodies, employees, customers, and suppliers[180]. - The company is committed to enhancing its operational practices to minimize environmental impact and achieve sustainable development goals[185]. - The company has implemented internal management policies to address identified significant ESG issues[180]. - Total greenhouse gas emissions amounted to approximately 135,282.09 tons of CO2 equivalent, with a density of 0.03 tons of CO2 equivalent per 1,000 RMB revenue[189]. - The total operating revenue for the reporting period was 4,284,259.00 thousand RMB[189]. - Direct energy consumption totaled approximately 175,994.30 MWh, while indirect energy consumption was about 161,691.44 MWh, leading to a total energy consumption of 337,685.74 MWh, with a density of 0.08 MWh per 1,000 RMB revenue[196]. - Total water consumption during the reporting period was approximately 3,446,583.00 cubic meters, with a density of 0.80 cubic meters per 1,000 RMB revenue[198]. - The amount of hazardous waste generated, including waste mineral oil and coal gangue, was approximately 2,728,650.48 tons, with a density of 0.64 tons per 1,000 RMB revenue[192]. - The company utilized approximately 35,040.80 MWh of coalbed methane for power generation in 2022[196]. - The total amount of non-hazardous waste, primarily paper waste, was approximately 1,740.24 kilograms, with a density of 0.0004 kilograms per 1,000 RMB revenue[193]. - The company implemented measures to reduce energy consumption and promote a green office culture, including encouraging employees to turn off computers when not in use[197]. - The company actively extracted approximately 29,789,600 cubic meters of coalbed methane, using about 12,376,300 cubic meters for self-generated electricity[189]. - The company has established policies to ensure compliance with environmental standards and reduce negative impacts on the environment[195].
恒鼎实业(01393) - 2022 - 年度财报