Financial Performance - For the three months ended September 30, 2022, the company reported a revenue of HKD 60,065,000, a decrease of 50.7% compared to HKD 121,868,000 in the same period of 2021[5] - The gross profit for the same period was HKD 15,495,000, down 57.2% from HKD 36,183,000 year-over-year[5] - The company recorded a profit before tax of HKD 14,959,000, compared to a loss of HKD 6,449,000 in the previous year[5] - Lithium battery sales for the nine months ended September 30, 2022, were HKD 85,854,000, a decline of 73.4% from HKD 322,644,000 in the same period of 2021[10] - The company reported a net profit attributable to owners of HKD 18,604,000 for the third quarter, compared to a loss of HKD 16,237,000 in the same quarter of the previous year[5] - The total comprehensive income for the period was a loss of HKD 154,463,000, compared to a loss of HKD 400,629,000 in the same period last year[5] - The company reported a loss attributable to owners of HKD 71,017,000 for the nine months ended September 30, 2022, compared to a profit of HKD 108,736,000 in the same period of 2021[21] - For the third quarter of 2022, the company reported revenue of HKD 97.3 million, a decrease of 70.3% compared to HKD 327.1 million in the same period last year[54] - The loss attributable to the company's owners for the period was approximately HKD 71 million, compared to a profit of HKD 108.7 million in the previous year[54] - Gross profit for the period was approximately HKD 29,000,000, with a gross margin of 29.8%, an increase from 28.7% in the previous year[56] - The company recorded a net loss attributable to shareholders of approximately HKD 71,000,000 for the period, compared to a profit of HKD 108,700,000 in the same period last year[60] Expenses and Costs - The administrative expenses for the nine months ended September 30, 2022, were HKD 72,730,000, an increase of 23.4% from HKD 58,946,000 in the same period of 2021[5] - Financial costs for the nine months ended September 30, 2022, were HKD 5,888,000, a decrease of 21.2% from HKD 7,474,000 in the same period of 2021[13] - Financial costs decreased to approximately HKD 5,900,000, down from HKD 7,500,000 in the previous year, due to reduced borrowings[59] Investments and Acquisitions - The company acquired additional equity in Jihang International Technology Co., Ltd. for approximately HKD 30,000,000, leading to a gain of HKD 30,877,000 recognized in the financial statements[12] - The company completed the acquisition of 32% of the target company for RMB 25.6 million (approximately HKD 30 million) on June 10, 2022[43] - Following the completion of the acquisition and capital increase agreements, the company will hold a 35.56% stake in the target company[45] - The company completed the acquisition of a controlling stake in Caocao International on August 10, 2022, which operates ride-hailing services in Paris, generating approximately HKD 6,900,000 in revenue from August 10 to September 30, 2022[55] - The company has invested a total of approximately $157.5 million in the SAM project, including $79.9 million in funding and $78.4 million in acquisition costs[31] Business Operations - The lithium-ion battery business has been supplying batteries to multiple high-end vehicle models since 2018, including models from Volvo and Lynk[24] - Zhejiang Hengyuan New Energy, a subsidiary, has a maximum annual production capacity of approximately 2,000,000 kWh of ternary lithium-ion batteries[25] - Shandong Hengyuan New Energy, an associate company, currently has an annual production capacity of 150,000 kWh for lithium iron phosphate batteries and 225,000 kWh for ternary lithium-ion batteries[26] - The company is actively negotiating with potential new customers in the automotive and energy storage sectors despite challenges in customer acquisition[24] - The average cost of batteries produced by the company is higher than that of competitors due to insufficient production capacity and low utilization rates[24] - The company has maintained stable business relationships with major suppliers and customers in the industry, which poses challenges for diversifying its customer base[24] - As of September 30, 2022, GETI operates 676 battery swapping stations and has 1,562 package users in China[28] - The GETI battery-sharing business in China reported revenue of approximately HKD 4,500,000 for the period ending September 30, 2022, with no growth compared to the same period last year[55] Project Developments - The total investment for the SAM project in Brazil is projected to be $2.78 billion, with an average operating cost of $27.6 per ton of iron concentrate for the first 18 years[34] - The project is expected to create approximately 6,200 direct jobs during the construction phase and around 1,100 direct jobs during the operational phase, along with 5,600 indirect jobs[32] - The average iron concentrate grade produced in the first 18 years of the SAM project is estimated to be 66.2%[31] - The environmental permit process for the SAM project has seen positive progress, with the project being designated as a priority by the Brazilian federal government[35] - Approximately 1,150 attendees participated in two public hearings regarding the environmental permit for the SAM project, showing strong local support[37] - The updated comprehensive economic feasibility analysis (PIAE) for the SAM project was approved by the Brazilian National Mining Agency (ANM) on May 22, 2022[39] - The expected FOB offshore cost for the first 18 years of the SAM project is approximately $40.9 per ton, increasing to $47.1 per ton thereafter[34] - The SAM project plans to incorporate 5G technology in mining operations and aims to utilize renewable energy for project power supply[41] - The company is actively advancing the SAM iron ore project despite challenges, with broad support from local communities and businesses in Brazil and China[66] Shareholder Information - As of September 30, 2022, the total number of shares held by major shareholders includes 4,065,000,000 shares held by Hongqiao Capital, representing 41.25% of the total shares[78] - The company’s chairman, He Xuechu, holds a total of 4,145,399,189 shares, accounting for 42.07% of the total shares[78] - The company has complied with all code provisions set out in the GEM Listing Rules Appendix 15 during the nine months ended September 30, 2022[70] - The company’s current share option plan was adopted on May 26, 2022, following the expiration of the previous plan on May 20, 2022[75] - As of September 30, 2022, there are 8,750,000 share options granted under the old share option plan that remain unexercised[77] Future Outlook - The company anticipates continued high growth in the new energy vehicle industry, with new vehicle sales expected to reach around 20% of total car sales by 2025[64] - Following the acquisition of Caocao International, the company plans to expand its services to other cities in France and Europe, positioning ride-hailing as a significant revenue source[65] - The sales framework agreement with Zhejiang Geely Holdings Group has an annual cap of RMB 300 million for the year ending December 31, 2022[84] - Sales under the sales framework agreement amounted to approximately HKD 77 million for the nine months ended September 30, 2022[86] - The annual cap for the year ending December 31, 2023, is set at RMB 350 million[84]
洪桥集团(08137) - 2022 Q3 - 季度财报