Financial Performance - For the fiscal year ended March 31, 2023, the group reported no revenue from the sale of copper-nickel products, compared to HKD 79.8 million in the previous year[12]. - The company recorded total revenue of approximately HKD 160,000 for the year ended March 31, 2023, a decrease of 99.8% compared to HKD 80,197,000 in the previous fiscal year, primarily due to the completion of mining operations in the first phase of the Baishiquan copper-nickel mine[26]. - The company reported a loss of approximately HKD 10,503,000 for the year, compared to a profit of HKD 36,632,000 in the previous year, with the decrease in profit mainly attributed to the mining and metals business generating no revenue[26]. - The adjusted loss before interest, tax, depreciation, and amortization for the year was approximately HKD 11,516,000, compared to a profit of HKD 41,788,000 in the previous fiscal year[27]. - The basic and diluted loss per share for the year ended March 31, 2023, was 0.29 HK cents, compared to a profit of 0.25 HK cents in 2022, representing a significant decline in performance[183]. - The adjusted EBITDA loss for the year was approximately 11,516,000 HKD, a sharp decrease from the adjusted EBITDA profit of 41,788,000 HKD in the previous year, primarily due to the absence of revenue from copper-nickel product sales, which amounted to 79,800,000 HKD in 2022[185]. - The operating cash flow per share for the year ended March 31, 2023, was a cash outflow of 0.22 HK cents, down from an inflow of 1.73 HK cents in 2022, indicating a significant deterioration in cash generation from operations[188]. Business Operations - The group completed 113 kilograms of gold trading in the fiscal year, generating a profit of HKD 293,000, an increase from HKD 89,000 in the previous year[12]. - The group spent approximately HKD 1,000,000 on drilling work, completing about 120 meters, down from HKD 1,600,000 in the previous year[11]. - The software and innovation business accounted for 100% of total revenue, a significant increase from 0.5% in the previous year[10]. - The group received the renewed mining license in March 2023 after delays due to COVID-19 restrictions[11]. - The mining and metals business faced significant delays in approvals due to COVID-19, impacting operational timelines[11]. - The group aims to complete additional drilling as required by government departments to advance its mining operations[11]. - The company has begun exploration and evaluation of the second phase of the Baishiquan project, selecting suppliers based on multiple criteria including compliance with environmental regulations[139]. Resource Management - The updated resource estimate for the Baishiquan copper-nickel mine as of March 31, 2023, includes 4,047,000 tons of controlled resources with an average nickel grade of 0.55% and 3,180,000 tons of inferred resources with an average nickel grade of 0.60%[15]. - The company plans to submit an updated resource and reserve verification report for government approval in Q3 2023, with expectations to commence Phase II mining operations by the end of 2025[14]. - The company incurred exploration and analysis expenses of approximately HKD 979,000 for the year ended March 31, 2023, related to mining operations[19]. Financial Position - As of March 31, 2023, the group's bank balance and cash amounted to approximately HKD 90,885,000, a decrease from HKD 127,065,000 in 2022[29]. - The current ratio as of March 31, 2023, was 5.05, down from 6.19 in 2022[29]. - The group's debt-to-equity ratio was approximately 17.78% as of March 31, 2023, compared to 18.34% in 2022[31]. - The company's total capital and operating expenses amounted to HKD 979,000 for the year, with no significant operational expenses reported[19]. - The debt-to-asset ratio was reported at 17.78%, slightly down from 18.34% in the previous year, indicating a stable leverage position[182]. Governance and Compliance - The board of directors consists of five members, including two executive directors and three independent non-executive directors[53]. - The board held a total of 7 meetings during the fiscal year ending March 31, 2023[56]. - The audit committee, comprising three independent non-executive directors, held 5 meetings during the fiscal year[68]. - The audit committee reviewed the financial statements audited by Guowei CPA for the year ending March 31, 2023, and recommended the reappointment of Guowei CPA as the company's auditor[70]. - The company confirmed that all independent non-executive directors are considered independent according to GEM Listing Rules[63]. - The company has established a code of conduct for directors regarding securities trading, which complies with GEM Listing Rules[64]. - The board is responsible for monitoring compliance with legal and regulatory requirements[52]. - The company provides ongoing professional training to its directors to update their knowledge and skills[66]. - The company has implemented a liability insurance and indemnity arrangement for directors and senior management[67]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report highlights the company's commitment to sustainable development and outlines key performance indicators for the fiscal year ending March 31, 2023[103]. - The board has identified waste management and health and safety as primary ESG risks and is committed to enhancing safety across all business areas[107]. - The company reported a significant reduction in direct carbon dioxide emissions, decreasing from 30,077 kg in 2022 to 15,938 kg in 2023, representing a 47% decrease[115]. - Indirect carbon dioxide emissions increased from 53,842 kg in 2022 to 79,698 kg in 2023, marking a 48% increase[115]. - The company has committed to purchasing an electric vehicle to reduce environmental impact, indicating a shift towards more sustainable transportation[117]. - The company has implemented measures to ensure transparency and accountability in its environmental, social, and governance reporting[112]. - The company aims to reduce waste and greenhouse gas emissions by at least 50% over the next five years[118]. - The company generated 30,382 sheets of non-hazardous waste paper in 2023, a reduction of 58.7% from 73,334 sheets in 2022[118]. Risk Management - Exploration and development of mineral resources involve significant risks, including cost overruns which are common in mining projects[165]. - The accuracy of mineral resource and reserve estimates is subject to various uncertainties, and actual quantities may differ from estimates[166]. - The company believes it can finance its mining operations through existing working capital and debt/equity mix, but there is no guarantee of raising additional funds when needed[167]. - The company requires specific licenses and permits for exploration and mining operations, and failure to obtain necessary approvals could adversely affect its business[168]. - Environmental regulations impose restrictions on the mining and processing operations, and non-compliance may lead to fines or other penalties[171]. - The mining industry faces increasing competition for acquiring mineral rights, which may hinder the company's ability to secure potential acquisitions[172]. Employee and Community Engagement - Employee turnover rate for males was 19% in 2023, down from 58% in 2022, while for females it was 17%, down from 33%[128]. - The company has implemented a flexible employee leave policy, providing sufficient rest time and work-life balance according to employee needs[133]. - The company emphasizes community investment and social responsibility by creating job opportunities and encouraging employee participation in charitable activities[151]. - The company has not faced any labor disputes or lawsuits during the reporting period, fulfilling all obligations to employees[138].
天时资源(08028) - 2023 - 年度财报