Financial Performance - For the six months ended June 30, 2022, the group generated revenue of approximately $18.4 million from the sale of iron ore products and other goods, compared to zero revenue for the same period in 2021[10]. - The group recorded a gross profit of $2.6 million for the six months ended June 30, 2022, while the gross profit for the same period in 2021 was zero[10]. - The group reported a loss of approximately $4.2 million for the six months ended June 30, 2022, an improvement from a loss of approximately $29.6 million for the same period in 2021, primarily due to increased revenue and reduced financing costs[10]. - The company recorded a revenue of approximately $18.4 million for the period, compared to zero in the same period last year[24]. - The sales volume of iron ore products was 14.94 thousand tons, with no sales recorded in the previous year[24]. - The cost of sales for the period was approximately $15.8 million, also compared to zero in the previous year[29]. - The gross profit for the period was approximately $2.6 million, with no gross profit recorded in the same period last year[30]. - The company reported a loss of approximately $4.2 million for the period, a significant decrease from a loss of $29.6 million in the previous year[36]. - Revenue for the six months ended June 30, 2022, was $18.433 million, with a cost of sales of $15.846 million, resulting in a gross profit of $2.587 million[95]. - The company reported a loss before tax of $4.179 million, a substantial improvement from a loss of $29.643 million in the same period last year[95]. - Basic and diluted loss per share for the period was 28 cents, compared to 198 cents in the previous year[95]. - The company reported a net loss of approximately $4,179,000 for the six months ended June 30, 2022, with a net cash outflow from operating activities of about $857,000[109]. - The company’s operating cash flow for the current period was negative, indicating challenges in generating cash from operations[105]. - The company’s total liabilities as of June 30, 2022, were $207.360 million, compared to $193.908 million at the end of the previous year[97]. - The company’s net liabilities increased to $28.271 million from $24.274 million year-on-year[97]. - The company reported total revenue of $18,433,000 for the six months ended June 30, 2022, with $1,773,000 from iron ore sales and $16,660,000 from health and other products[121]. Market and Industry Insights - The iron ore market saw a global shipment total of 750 million tons in the first half of 2022, a year-on-year decrease of 36.67 million tons, representing a decline of 4.7%[18]. - China's iron ore imports decreased significantly, with a total of 563 million tons arriving at ports from January to June 2022, a year-on-year decline of 20.265 million tons[18]. - The production of pig iron in China decreased by approximately 28 million tons, or 6.5%, in the first half of 2022 compared to the same period last year[19]. - The health supplement market in China is projected to reach a market size of 328.3 billion yuan by 2023, indicating a growing demand for health products[22]. Corporate Governance and Compliance - The company is in compliance with the corporate governance code, except for the separation of roles between the chairman and CEO[57]. - The company’s independent non-executive directors are confirmed to be independent as per the requirements of the listing rules[70]. - The company emphasizes a transparent process for determining the remuneration of directors and senior management based on individual and company performance[67]. - The remuneration committee held one meeting during the period to review and discuss the compensation of management and directors[68]. - The nomination committee also conducted one meeting to evaluate the board's structure and recommend suitable candidates[69]. Debt and Financing - As of June 30, 2022, the company's borrowings included approximately $36.5 million from a commercial bank and $52.8 million in notes and bonds[37]. - The company is in default on loans totaling approximately $167,474,000 in principal and $22,001,000 in interest as of June 30, 2022[110]. - The company has been actively negotiating with lenders regarding the extension and deferral of defaulted loans, with management believing that agreements will be reached in due course[113]. - The company has identified various financing options for operational funding and obligations in the foreseeable future[116]. - The company has engaged in discussions with different financial institutions to secure financing options for its operations[116]. - The company’s financial strategy includes managing its debt obligations and ensuring compliance with the terms of its notes to avoid default events[167]. Employee and Operational Insights - The total employee cost for the period, including director remuneration, was approximately $0.4 million, a decrease from $0.5 million in the first half of 2021[46]. - The company employed 32 employees as of June 30, 2022, an increase from 18 employees as of December 31, 2021[46]. - The company has begun to resume mining operations following the lifting of restrictions by the Malaysian government on April 1, 2022[23]. - The company has implemented cost control measures, including optimization of human resources and management salary adjustments[116]. Shareholder Information - As of June 30, 2022, the company’s executive director Li Yang holds 752,750,000 shares, representing 50.18% of the issued share capital[73]. - Ng Khing Yeu, another executive director, holds 112,827,000 shares, accounting for 7.52% of the issued share capital[73]. - Major shareholder Ueda holds 752,750,000 shares, representing approximately 50.18% of the total equity[80]. - The company has disclosed that no other individuals hold more than 5% of the equity as per the Securities and Futures Ordinance[86]. - The company has received notifications regarding the pledging of shares, with Ueda pledging 711,000,000 shares to a third party[83]. Future Plans and Developments - The company is exploring business development opportunities in plant stem cells and has established a wholly-owned subsidiary in Hong Kong to market suitable plant stem cell products[15]. - The company plans to change its name to "Grace Life-tech Holdings Limited," pending shareholder approval[47]. - There were no significant events after the reporting period, aside from the proposed name change[48].
恩典生命科技(02112) - 2022 - 中期财报