Financial Performance - For the three months ended September 30, 2023, the company reported revenue of HKD 51,600 thousand, a decrease from HKD 60,065 thousand in the same period of 2022, representing a decline of approximately 12.2%[4] - The gross profit for the nine months ended September 30, 2023, was HKD 30,305 thousand, compared to HKD 29,026 thousand for the same period in 2022, indicating an increase of about 4.4%[4] - Lithium battery sales for the nine months ended September 30, 2023, reached HKD 138,435 thousand, up from HKD 83,791 thousand in 2022, reflecting a growth of approximately 65.4%[6] - The company incurred a loss before tax of HKD 70,017 thousand for the nine months ended September 30, 2023, compared to a loss of HKD 76,177 thousand in the same period of 2022, showing an improvement of about 8.5%[4] - The company reported a net loss attributable to owners of HKD 57,671 thousand for the nine months ended September 30, 2023, compared to a loss of HKD 71,017 thousand in the same period of 2022, indicating a reduction of about 18.7%[4] - The comprehensive income for the nine months ended September 30, 2023, was HKD 169,586,000, compared to HKD 61,683,000 for the same period in 2022[12] - The company reported a total comprehensive loss of HKD 238,100 thousand for the three months ended September 30, 2023, compared to a loss of HKD 154,463 thousand in the same period of 2022[4] Expenses and Costs - The financial costs for the nine months ended September 30, 2023, totaled HKD 7,273 thousand, an increase from HKD 5,888 thousand in 2022, representing a rise of approximately 23.5%[8] - The administrative expenses for the three months ended September 30, 2023, were HKD 20,507 thousand, a decrease from HKD 29,876 thousand in the same period of 2022, reflecting a reduction of approximately 31.4%[4] - Operating expenses for the period were approximately HKD 7.8 million, a significant decrease from HKD 50.8 million in the same period last year[35] - Financial costs for the period were approximately HKD 7.3 million, up from HKD 5.9 million in the previous year, primarily due to interest expenses on bank loans[36] Shareholder Information - As of September 30, 2023, the major shareholders include Li Shufu with a stake of 61.61% and Geely Group Limited holding 41.28%[50] - The company’s major shareholders include Zhejiang Geely Holding Group Limited, which holds 100% of Geely International (Hong Kong) Limited[51] - Geely Group Limited acquired a total of 68.86% equity in Hongqiao Capital Limited, gaining statutory control of the company[49] - The unconditional mandatory general offer was made at HKD 0.08 per share, which ended on March 16, 2023[49] Business Operations and Strategy - The lithium-ion battery business has been supplying batteries to several high-end vehicle models since 2018, including models from Volvo and Lynk[13] - The company is actively engaging with potential new customers in the energy storage sector and manufacturers transitioning from lead-acid to lithium batteries[13] - The company has initiated discussions with manufacturers of electric vehicles and commercial vehicles to promote product matching and collaboration[13] - The company aims to develop products for the market transition from lead-acid batteries to lithium batteries, recognizing this trend as inevitable[38] - The company is exploring lithium mica and lithium spodumene projects in Africa and Brazil, considering contracting or cooperative mining opportunities[38] - The company has identified two investment opportunities related to lithium salt lake projects in Argentina and is finalizing legal due diligence[38] Investments and Projects - The total investment for the SAM project in Brazil is projected to be $3.01 billion, with an annual production capacity of 27.5 million tons of iron concentrate[20] - The environmental permit process for the SAM project has seen positive progress, with over 1,150 attendees at two public hearings expressing support for the project[22] - The company plans to invest approximately $350 million to acquire a 38.75% stake in Tibet Zhufeng Resources Co., Ltd. through existing shares and/or new share subscriptions[23] - The total investment for the Anghelis lithium salt lake project is approximately $700 million, with a cost of around $5,000 per ton of lithium carbonate equivalent[25] - The company is preparing to implement detailed exploration for the Arizaro lithium salt lake project, which may have resources exceeding 10 million tons of lithium carbonate equivalent[26] Corporate Governance - The audit committee reviewed the unaudited results for the nine months ending September 30, 2023, confirming compliance with applicable accounting standards[55] - The company has adhered to all code provisions under the GEM Listing Rules during the nine months ending September 30, 2023[39] - The company has not disclosed any interests or positions held by directors or key executives in the company or its affiliates as of September 30, 2023[41] - The company has a stock option plan in place, adopted on May 26, 2022, with details outlined in a circular issued on May 3, 2023[44] - The board of directors includes key executives such as He Xuechu (Chairman) and Liu Jian (Vice Chairman and Co-CEO)[57] Market Trends - In 2022, China's new energy vehicle sales reached 6.9 million units, accounting for approximately 25.6% of total new car sales[37] - The Chinese government has extended tax incentives for purchasing new energy vehicles until the end of 2027, supporting continued growth in the sector[37]
洪桥集团(08137) - 2023 Q3 - 季度财报