Financial Performance - The Group reported a significant impairment loss of approximately HK$52,409,000 due to defects in certain electronics components inventory in the supply chain business[14]. - The Group focused on trading mineral properties during the year and reported the discontinuation of its supply chain business, with all trade receivables received in full[16]. - The auditor issued a qualified opinion on the Group's consolidated financial statements for the year, unable to determine the accuracy of profit from discontinued operations[22]. - The Group's financial performance for the year ended December 31, 2021, was presented in the annual results, reflecting the challenges faced in the previous year[10]. - The last transactions of the discontinued supply chain business were completed in 2020, with no further operations reported in 2021[19]. - The Group recorded revenue from trading of natural uranium of approximately HK$280,639,000 for the Year, a decrease of approximately 58% compared to HK$662,994,000 in 2020[29]. - Gross profit increased by 58% to approximately HK$20,610,000, up from approximately HK$13,013,000 in 2020[37]. - The decrease in revenue was attributed to a depressed uranium market and negative impacts from share trading suspension affecting external financial resources[29]. - The share of results from associates increased to approximately HK$15,065,000, compared to a loss of approximately HK$4,140,000 in 2020[37]. - Finance costs were reduced to approximately HK$9,834,000 from approximately HK$14,896,000 in 2020[37]. - The Group reported a net profit from continuing operations of approximately HK$622,000, recovering from a net loss of approximately HK$9,591,000 in 2020[37]. - The discontinued operation of the supply chain business recorded a segment profit of HK$1,767,000, compared to a net loss of HK$36,506,000 in 2020[37]. - The Group achieved a net profit of approximately HK$2,389,000, reversing a net loss of approximately HK$46,097,000 in the previous year[48]. - The share of profit from an associate was approximately HK$15,065,000, a significant increase of approximately 464% from a loss of HK$4,140,000 in the previous year[51]. - Other income and gains increased to approximately HK$3,240,000, up from approximately HK$2,120,000 in the previous year[49]. - Selling and distribution expenses decreased by approximately 56% to approximately HK$639,000, compared to HK$1,459,000 in the previous year[50]. - Administrative expenses rose by approximately 70% to approximately HK$26,255,000, up from approximately HK$15,463,000 in the previous year[50]. - The Group's total comprehensive income for the year amounted to approximately HK$25,588,000, a significant recovery from a total expense of approximately HK$25,855,000 in the previous year, marking a turnaround of over 200%[59][63]. - Net income for the year was approximately HK$2,389,000, compared to a net loss of approximately HK$46,097,000 in the previous year, indicating a substantial improvement in financial performance[59][63]. Business Strategy and Operations - The Group's interests in CNNC Leasing were reduced from approximately 18.45% to approximately 11.36% following a merger with China Nuclear E&C Financial Leasing Co., Ltd[21]. - The Company aims to diversify its business through the merger, leveraging the public utilities projects of CNECFL[21]. - The Group plans to continue developing its natural uranium trading business and seek high-quality uranium resource projects[30]. - The Group will communicate with the Mongolian Government to establish a joint venture for mining licenses related to its Mongolian Mining Project[31]. - The uranium market showed signs of recovery in the fourth quarter of 2021, which is expected to facilitate the Group's uranium trading business[30]. - A framework agreement was established with China National Uranium Corporation, designating the Group as the prioritized supplier for short-term and exclusive regional supplier for medium-to-long-term natural uranium products[61][65]. - The Group completed a delivery of approximately 533,000 pounds of uranium products to the CNUC Group under the framework agreement on July 1, 2022[68]. - The Group is engaged in discussions with the Mongolian Authority regarding the expiry issue of exploration licenses for its uranium resources project, which has not been materially affected by slow progress due to low market prices[69]. - The Group aims to leverage the strengths of its parent company in nuclear energy to explore investment opportunities in uranium resources, considering the overall market dynamics[70]. - The company delivered approximately 533,000 pounds of uranium products to China National Uranium Corporation on July 1, 2022[71]. Cash Flow and Financial Position - The group recorded a net cash outflow of approximately HK$23,847,000 for the year, compared to a net cash inflow of approximately HK$41,628,000 in the previous year[79]. - As of December 31, 2021, the group's cash on hand and bank balances decreased to approximately HK$120,625,000 from approximately HK$144,333,000 as of December 31, 2020[79]. - Total shareholders' funds increased from approximately HK$309,067,000 as of December 31, 2020, to approximately HK$334,655,000 as of December 31, 2021[85]. - The gearing ratio decreased to 0.44 as of December 31, 2021, down from 0.50 in the previous year due to the repayment of bank borrowings[85]. - The group had net current assets of approximately HK$96,234,000 as of December 31, 2021, compared to net current liabilities of approximately HK$124,700,000 as of December 31, 2020[84]. - The company entered into a loan agreement for a revolving loan of up to US$50,000,000 to support its uranium trading business[86]. - The interest rate for the Trade Loan is set at LIBOR + 1.60% per annum, similar to previous bank facilities obtained by the group[87]. - The total equity increased from approximately HKD 309,067,000 as of December 31, 2020, to approximately HKD 334,655,000 as of December 31, 2021, primarily due to total comprehensive income during the year[89]. - The debt-to-asset ratio decreased to 0.44 as of December 31, 2021, compared to 0.50 as of December 31, 2020, due to the repayment of bank loans during the year[89]. - As of December 31, 2021, the group had no trade receivables and trade payables, compared to approximately HKD 29,305,000 and zero, respectively, as of December 31, 2020[88]. - The group’s net current assets were approximately HKD 96,234,000 as of December 31, 2021, compared to net current liabilities of approximately HKD 124,700,000 as of December 31, 2020[88]. Environmental and Social Responsibility - Total greenhouse gas emissions for the Group were approximately 11.78 tonnes of CO2 equivalent in 2021, an increase from 10.85 tonnes in 2020[121]. - The Group's electricity consumption was approximately 15,580 kWh in 2021, contributing to about 10.94 tonnes of CO2 equivalent emissions, up from 10.09 tonnes in 2020[126]. - Paper usage for daily operations was approximately 0.2 tonnes in 2021, resulting in about 0.84 tonnes of CO2 equivalent emissions, compared to 0.76 tonnes in 2020[130]. - The Group aims to reduce energy consumption intensity by 2% by the year 2027, with the baseline year set as 2021[135]. - The total floor area coverage for the Group was 333 sq.m in 2021, consistent with 2020[118]. - The emission intensity for the Group was approximately 0.03 tCO2e/sq.m in both 2021 and 2020[125]. - The Group's operations did not significantly impact the environment and natural resources during the reporting period[136]. - Stakeholder engagement efforts included shareholders, employees, customers, suppliers, and the community to achieve sustainable development[116]. - The Group encourages a paperless office environment and promotes double-sided printing to reduce paper usage[130]. - Climate change awareness is increasing, and the Group regularly reviews policies and market trends to identify potential climate-related risks[137]. Human Resources and Employee Engagement - The Group had a total of 22 full-time employees as of December 31, 2021, a decrease from 23 in 2020[151]. - Employee distribution: 23% in Hong Kong, 59% in Mainland China, and 18% in Mongolia[152]. - Gender distribution: 41% male and 59% female employees in 2021, compared to 48% male and 52% female in 2020[152]. - Age distribution: 41% of employees are aged 26-35, while 27% are aged 36-45 in 2021[152]. - The Group has no significant climate-related risks impacting its operations during the year[143]. - The Group adheres to local labor laws and provides competitive remuneration packages, conducting annual reviews based on market standards[146]. - The Group contributes to various social insurance schemes for employees in Mainland China and the Mandatory Provident Fund for employees in Hong Kong[152]. - The Group emphasizes equal opportunity employment, ensuring no discrimination based on nationality, gender, age, race, religion, or disability[146]. - The employee turnover rate for the year is documented, indicating the Group's focus on employee retention[152]. - The employee turnover rate for males is 33%, while for females it is not specified[153]. - The turnover rate for employees under 35 years old is 11%, for those aged 35-50 years is 25%, and for those over 50 years old it is not specified[153]. - The turnover rate in Hong Kong is 20%, while in the PRC it is 15%[153]. - 55% of employees received training during the year, with 50% of both male and female employees trained[160]. - Senior management had a training rate of 42%, middle management 25%, and general staff 33%[160]. - The average training hours completed per employee is 31 hours, with males averaging 37 hours and females 26 hours[160]. - Senior management completed an average of 73 training hours, middle management 22 hours, and general staff 16 hours[160]. - The Group reported no work-related fatalities or lost days due to work injury during the year[157]. - The Group emphasizes compliance with relevant employment laws and reported no significant fines for non-compliance[155]. - The Group implemented various health and safety measures in response to the COVID-19 pandemic, including flexible working hours and remote access to systems[157]. Corporate Governance - The Company complied with the Code on Corporate Governance Practices throughout the Year[180]. - The Board of Directors consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[182]. - The Group's day-to-day management is delegated to senior management, with periodic reviews by the Board[181]. - The Group emphasizes the importance of employee communication and motivation through weekly meetings and group functions[164]. - The Board of Directors held four regular meetings during the year to discuss strategies and financial performance[188]. - The roles of the Chairman and the Chief Executive Officer are clearly segregated to enhance independence and accountability[189]. - The Company has received annual confirmations of independence from all Independent Non-Executive Directors, confirming their status[190]. - Directors are responsible for preparing the financial statements in accordance with statutory requirements and applicable accounting standards[195]. - The Company ensures timely publication of the Group's accounts, adhering to regulatory requirements[199]. - Each newly appointed Director undergoes comprehensive induction training to understand the Group's operations and governance obligations[197]. - Continuous professional development for Directors is arranged to keep them updated on statutory and regulatory developments[198]. - The Company has adopted a code of conduct for securities transactions by directors, ensuring compliance with the Model Code[191]. - The Board is composed of six members, including one Executive Director, two Non-Executive Directors, and three Independent Non-Executive Directors[185]. - The Company has established a robust internal control and risk management system overseen by the Board[185]. Compliance and Ethics - The Group has implemented a whistle-blowing policy for employees to report suspected bribery or corruption, ensuring integrity in business operations[173]. - There were no violations of anti-corruption laws during the Reporting Period, and the Group adheres to the Anti-Unfair Competition Law of the People's Republic of China[175]. - The Group actively participates in community charity, supporting the local community of Bayandun, Mongolia through donations and visits[177].
中核国际(02302) - 2022 - 年度财报