Financial Performance - The company reported a net profit attributable to shareholders of HK$593,272,000 for the six months ended December 31, 2023, driven by the Resource Investment segment, which generated a profit of HK$237,951,000 and a share of profit from Mount Gibson Iron Limited of HK$265,908,000[30]. - APAC reported a net profit attributable to shareholders of HK$593,272,000 for 1H FY2024, compared to a net loss of HK$43,424,000 for 1H FY2023[36]. - The Group's underlying segment profit for 1H FY2024 was HK$301,758,000, driven by Resource Investment and Commodity Business divisions, generating segment profits of HK$237,951,000 and HK$69,373,000 respectively[36]. - The consolidated profit before taxation was HK$591,908,000, indicating a strong financial performance[120]. - Total revenue for the six months ended December 31, 2023, was HK$941,434,000, a significant increase from HK$108,933,000 in the same period of 2022, representing a growth of approximately 765%[186]. Investments and Assets - The fair value of the Group's listed securities held-for-trading was HK$374,400,000 as of December 31, 2023, compared to HK$256,100,000 as of June 30, 2023[4]. - The Group's non-current assets amounted to HK$2,041,542,000 as of December 31, 2023, while net current assets were HK$2,055,950,000, reflecting an increase from HK$1,569,339,000 as of June 30, 2023[92]. - The Group's non-current assets as of December 31, 2023, totaled HK$3,024,000, compared to HK$2,430,000 as of June 30, 2023, showing an increase of approximately 24.5%[174]. - The largest investment is in Mount Gibson, which is expected to generate free cash flow in the coming years due to increased production at the Koolan Island mine[113]. Revenue Sources - Revenue from trading of commodities, specifically iron ore, amounted to HK$930,478,000 for the six months ended December 31, 2023, compared to HK$98,260,000 in 2022, indicating a growth of around 846%[186]. - Segment revenue for the commodity business was HK$98,260,000, while gross sales proceeds from resource investment amounted to HK$961,756,000 for the six months ended December 31, 2023[120]. - Interest income from loan receivables was HK$10,956,000 for the six months ended December 31, 2023, slightly up from HK$10,639,000 in 2022, reflecting an increase of about 3%[186]. Employee and Remuneration - Total remuneration and pension contributions for 1H FY2024 amounted to HK$13,234,000, an increase from HK$12,835,000 in 1H FY2023[12]. - The Group had 25 employees as of December 31, 2023, down from 28 as of June 30, 2023[12]. - Staff costs, including directors' emoluments, were HK$16,709,000 for the six months ended December 31, 2023, compared to HK$16,367,000 in 2022, indicating a slight increase of about 2.1%[188]. Risk Management and Economic Outlook - The Group did not actively hedge against foreign exchange risks related to Australian Dollar-denominated assets but will monitor this exposure closely[3]. - The Group's risk management framework is regularly reviewed and updated to respond to changes in market conditions and business strategy[15]. - The company remains cautious about the global economic outlook, which may pressure energy prices[64]. - Geopolitical tensions and upcoming elections, particularly the US election in late 2024, are expected to increase risks related to supply chains and energy supply, presenting both opportunities and risks for the company[27]. - The company anticipates a cyclical recovery in the Chinese economy, which may positively impact commodity markets, amid ongoing economic volatility since the Covid-19 pandemic[25]. Dividends and Shareholder Returns - The company has not declared a dividend due to current uncertainties in the global outlook, with plans to reassess its dividend policy based on economic expectations[31]. - An interim dividend of HK10 cents per share was declared, totaling approximately HK$130,249,000, with HK$80,039,000 paid in cash and 54,151,441 shares issued for scrip dividend[109]. - The company remains committed to providing returns to shareholders while navigating the current economic landscape[31]. Commodity Market Insights - Coking coal prices rebounded in 1H FY2024 due to improved sentiment around China's stimulus measures and low inventories[48]. - Spot uranium prices increased from US$56/lb to US$91/lb, significantly benefiting uranium investments in the portfolio[61]. - The performance of equity investments is expected to be influenced by market sentiment, commodity prices, interest rates, geopolitical conditions, and macroeconomic performance, prompting the Group to regularly review its investment strategy[176]. Financial Position and Liabilities - As of December 31, 2023, the Group's borrowings (excluding lease liabilities) were HK$88,000,000, down from HK$183,240,000 as of June 30, 2023[2]. - The gearing ratio as of December 31, 2023, was nil, consistent with the ratio as of June 30, 2023[2]. - Outstanding loan receivables net of loss allowances amounted to approximately HK$193,885,000 as of December 31, 2023, down from HK$346,074,000 as of June 30, 2023[76]. - The Group reversed impairment losses on loan receivables of approximately HK$24,110,000 in 1H FY2024, compared to an impairment loss of HK$8,676,000 in 1H FY2023[76].
亚太资源(01104) - 2024 - 中期财报