Financial Performance - For the year ended December 31, 2023, revenue was approximately HKD 187,960,000, a decrease of about HKD 3,220,000 or approximately 1.7% compared to last year's revenue of HKD 191,180,000[4] - Gross profit for the year was approximately HKD 65,211,000, down by about HKD 15,955,000 or approximately 19.7% from last year's gross profit of HKD 81,166,000, resulting in a gross margin of approximately 34.7% compared to 42.5% last year[4] - The company reported a loss of approximately HKD 33,610,000 for the year, compared to a profit of approximately HKD 26,100,000 in the previous year[4] - The loss attributable to the company's owners was approximately HKD 23,734,000, while last year's profit attributable to owners was approximately HKD 10,237,000[4] - The company reported a total comprehensive loss of approximately HKD 37,144,000 for the year, compared to a total comprehensive income of HKD 13,893,000 in the previous year[6] - The basic and diluted loss per share for the year was HKD 1.46, compared to earnings per share of HKD 0.68 in the previous year[5] - The group recorded a loss of approximately HKD 33,610,000 for the year ended December 31, 2023, compared to a profit of approximately HKD 26,100,000 for the year ended December 31, 2022[65] Assets and Liabilities - Total non-current assets as of December 31, 2023, were approximately HKD 167,364,000, slightly up from HKD 166,967,000 in the previous year[8] - Current assets totaled approximately HKD 139,861,000, compared to HKD 138,383,000 in the previous year, with cash and cash equivalents at HKD 95,359,000 down from HKD 117,494,000[8] - Total liabilities decreased to approximately HKD 109,737,000 from HKD 111,940,000 in the previous year, resulting in a net asset value of approximately HKD 197,488,000 compared to HKD 193,410,000 last year[10] - Trade receivables remained stable at HKD 1,216,000 for 2023, compared to HKD 1,243,000 in 2022, with a corresponding impairment loss[40] - As of December 31, 2023, the company reported other receivables of HKD 28,371,000, including a refundable deposit of approximately HKD 27,283,000 paid to a potential coal supplier[41] - The group had no assets pledged as collateral as of December 31, 2023, compared to the previous year when shares of two wholly-owned subsidiaries were pledged[77] Cash Flow and Financing - The group had no borrowings as of December 31, 2023, compared to borrowings of approximately HKD 39,582,000 in 2022[79] - The capital debt ratio was zero as of December 31, 2023, down from approximately 0.20 in 2022[79] - The current ratio was approximately 1.56 as of December 31, 2023, compared to 1.52 in 2022[79] - The total amount raised from the placement of new shares was approximately HKD 59,698,000, with a net amount of approximately HKD 59,101,000 after issuance costs[48] - The company raised approximately HKD 59,101,000 from the placement of 322,692,000 new shares at a price of HKD 0.185 per share[87] - The net proceeds from the placement will be used for potential investments in a copper mine in Laos (approximately HKD 35 million), enhancing existing mining machinery (approximately HKD 14 million), and general working capital (approximately HKD 10.1 million)[88] Operational Highlights - The group's confirmed coal sales for the year amounted to approximately HKD 187,960,000, a decrease from HKD 191,180,000 in the previous year, representing a decline of about 1.14%[21] - The coal mining segment recorded a post-tax loss of approximately HKD 22,170,000 for the year ended December 31, 2023, compared to a post-tax profit of approximately HKD 36,706,000 for the year ended December 31, 2022[51] - The company produced approximately 904,000 tons of coal for the year ended December 31, 2023, slightly down from 909,000 tons in 2022, with sales of approximately 901,000 tons compared to 910,000 tons in 2022[52] - The average selling price per ton of coal is projected to be RMB 178 for 2023 and RMB 188 for 2024, with an inflation rate of 2.5% applied thereafter[56] - The company anticipates maintaining an annual coal output of approximately 900,000 tons from its Inner Mongolia coal mining area[54] Expenses and Costs - The cost of sold inventory increased to HKD 122,749,000 from HKD 110,014,000, representing an increase of about 11.6%[32] - The cost of sold inventory, including employee costs and depreciation, amounted to approximately HKD 50,514,000, an increase from HKD 45,157,000 in the previous year[33] - Employee costs, including directors' remuneration, were approximately HKD 78,716,000 for the year ended December 31, 2023, compared to HKD 83,194,000 in 2022[83] - Administrative expenses for the year ended December 31, 2023, were approximately HKD 72,986,000, an increase of about HKD 826,000 from HKD 72,160,000 for the year ended December 31, 2022[59] - Sales and distribution expenses amounted to approximately HKD 4,548,000 for the year ended December 31, 2023, a slight decrease from approximately HKD 4,561,000 in 2022[58] Regulatory and Compliance - The board of directors did not recommend the payment of any final dividend for the year ended December 31, 2023[4] - The company did not recommend the distribution of any final dividend for the year ending December 31, 2023, consistent with the previous year[36] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the annual performance for the year ending December 31, 2023, confirming compliance with appropriate accounting policies[97] - The independent auditor, Hong Kong Lixin Dehao Certified Public Accountants Limited, confirmed that the financial figures for the year ending December 31, 2023, align with the audited consolidated financial statements[98] Future Outlook - The company aims to diversify its business portfolio and increase geographical diversity to enhance shareholder value amid challenges in the coal mining sector[89] - The management noted that recent fluctuations in the RMB to HKD exchange rate are not expected to have a significant adverse impact on the group's financial position[78]
弘海高新资源(00065) - 2023 - 年度业绩