Financial Performance - In 2022, the revenue was HKD 16,031.9 million, an increase of 24.9% compared to HKD 12,830.8 million in 2021[4] - The gross profit for 2022 was HKD 1,372.3 million, down from HKD 2,338.9 million in 2021, resulting in a gross margin of 8.6%, a decrease of 9.6 percentage points from 18.2% in 2021[4] - The net profit attributable to the owners of the company for 2022 was HKD 336.1 million, compared to HKD 356.3 million in 2021[4] - The company reported a total capital expenditure of HKD 820.1 million for the year[10] - The financial expenses for 2022 were HKD 221.3 million, a decrease from HKD 236.0 million in 2021[4] - The company’s operating profit before tax for 2022 was HKD 394.9 million, compared to HKD 546.3 million in 2021[4] - The total tax expense for the year was HKD 52,565,000, a decrease from HKD 190,049,000 in 2021, primarily due to the utilization of prior year tax losses[29] - The total profit attributable to the company's owners for 2022 was HKD 336.1 million, down from HKD 454.6 million in 2021[58] - The company's net profit attributable to shareholders for 2022 was HKD 336,091 thousand, a decrease of 26.1% from HKD 454,583 thousand in 2021[50] - The EBITDA for 2022 decreased by 20.8% to HKD 1,048.0 million, compared to HKD 1,323.0 million in 2021[58] Revenue Breakdown - Revenue from mainland China in 2022 was HKD 14,989.7 million, up from HKD 11,939.8 million in 2021[12] - The sales breakdown by region shows that Mainland China contributed HKD 14,989,718,000, accounting for 93.5% of total sales, while sales in Asia (excluding Mainland China) were HKD 740,922,000[18] - The battery materials production segment's revenue was HKD 1,986.7 million in 2022, an 18.7% increase from HKD 1,673.9 million in 2021[61] - The manganese mining segment's revenue increased by 74.2% to HKD 1,257.2 million in 2022, driven by expanded mining operations at the Bembélé manganese mine[64] - The electrolytic manganese and alloy materials production segment's revenue decreased to HKD 3,377.0 million in 2022 from HKD 4,510.5 million in 2021, reflecting a decline of 25.1%[61] - The revenue from silicon manganese alloy decreased by 35.8% to HKD 905.3 million in 2022, with sales volume down by 36.6% to 106,612 tons[70] Cost and Expenses - The total cost of goods sold for the year was HKD 14,434,290,000, which includes depreciation and employee benefits, highlighting the operational costs associated with revenue generation[25] - Total sales costs rose by 39.7% to HKD 14,659.6 million in 2022, compared to HKD 10,491.8 million in 2021[80] - The average selling price of electrolytic manganese products fell by 8.1% to HKD 20,322 per ton in 2022, compared to HKD 22,121 per ton in 2021[53] - The average selling price of electrolytic manganese dioxide increased by 55.0% to HKD 16,644 per ton, with a gross profit margin rising by 17.8 percentage points to 47.0%[55] Impairment and Liabilities - The company recognized a non-cash impairment loss of HKD 119.7 million on property, plant, and equipment, down from HKD 236.4 million in 2021[4] - The company's total liabilities increased to HKD 2,148,852 thousand in 2022 from HKD 1,300,221 thousand in 2021[47] - Impairment losses on mining rights amounted to HKD 70.9 million and HKD 48.8 million for two manganese mines due to decreased demand and production cuts[86] - The company's financial expenses remained stable at HKD 221.3 million in 2022, compared to HKD 236.0 million in 2021[93] Market and Strategic Initiatives - The company plans to expand its market presence in Europe and North America, where sales were HKD 28,635,000 and HKD 272,610,000 respectively, indicating potential growth opportunities[18] - The group aims to enhance manganese resources and reserves through exploration and strategic acquisitions[153] - The group is optimistic about the gradual recovery of the global economy as more countries ease COVID-19 restrictions[154] - The group continues to strengthen its leading position in battery materials production, focusing on R&D to improve the quality of new energy battery materials[157] Governance and Compliance - The company has appointed a new auditor, RSM Hong Kong, effective from August 18, 2023, following the resignation of PwC on July 31, 2023[159] - An independent investigation committee was established on March 31, 2023, to address the audit concerns raised by the previous auditor[161] - The company must comply with all resumption guidance from the Stock Exchange to avoid delisting, with a deadline of September 29, 2024[161] - The company has committed to improving its internal controls and has identified and rectified several deficiencies[176] Shareholder Information - The company did not recommend any dividend for the year ended December 31, 2022, consistent with 2021[44] - Basic earnings per share for the company’s owners were HKD 0.0980 in 2022, compared to HKD 0.1326 in 2021[109] - The company expresses gratitude to shareholders, business partners, distributors, and employees for their support and contributions[196]
南方锰业(01091) - 2023 - 年度业绩