中国稀土(00769) - 2022 - 年度业绩

Performance Overview Financial Performance In 2022, the Group turned from profit to loss with a net loss of approximately HKD 394 million, driven by a 33% revenue decline and a significant HKD 326 million environmental remediation cost Key Financial Indicators for 2022 | Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue | 810,413 Thousand HKD | 1,212,471 Thousand HKD | -33% | | Net (Loss) / Profit | (393,677) Thousand HKD | 25,436 Thousand HKD | Turned from profit to loss | | (Loss) / Earnings Per Share | (15.94) HK cents | 1.04 HK cents | Turned from profit to loss | - Key reasons for performance decline include reduced revenue due to the pandemic and macroeconomic impacts, and a significant one-time expense of approximately HKD 326 million for soil pollution remediation at the Yixing plant to fulfill corporate social responsibility[39][55][86] - The Board does not recommend a final dividend for the year ended December 31, 2022[15][40] Consolidated Financial Statements Consolidated Income Statement In 2022, Group revenue fell 33% to HKD 810 million, resulting in a net loss of HKD 394 million from a prior year profit Consolidated Income Statement Summary | Item | 2022 (Thousand HKD) | 2021 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 810,413 | 1,212,471 | | Gross Profit | 1,116 | 85,983 | | Other Operating Expenses | (326,412) | – | | Operating (Loss) / Profit | (391,649) | 28,538 | | (Loss) / Profit for the Year | (393,677) | 25,436 | | (Loss) / Profit Attributable to Owners of the Company | (373,296) | 24,274 | Consolidated Statement of Financial Position As of December 31, 2022, total assets decreased to HKD 2.41 billion, with net assets at HKD 2.28 billion, while maintaining a low 6% total liabilities to total assets ratio Consolidated Statement of Financial Position Summary | Item | December 31, 2022 (Thousand HKD) | December 31, 2021 (Thousand HKD) | | :--- | :--- | :--- | | Non-current Assets | 259,827 | 316,424 | | Current Assets | 2,149,803 | 2,730,581 | | Total Assets | 2,409,630 | 3,047,005 | | Current Liabilities | 132,174 | 155,366 | | Non-current Liabilities | 1,020 | 1,391 | | Total Liabilities | 133,194 | 156,757 | | Net Assets | 2,276,436 | 2,890,248 | | Cash and Cash Equivalents | 1,452,386 | 1,819,833 | - The total liabilities to total assets ratio remained at a low level of approximately 6%[76] Management Discussion and Analysis Business Review In 2022, both core businesses faced challenges from global economic uncertainty and China's lockdowns, leading to a 33% drop in total Group revenue - Global manufacturing supply chains were impacted by geopolitical tensions and the pandemic, yet demand for rare earth permanent magnet materials in new energy vehicles and wind power continued to grow[41] Rare Earth Business In 2022, rare earth business sales decreased 36% to HKD 547 million, with volumes down 25% to 670 tonnes, resulting in a gross loss due to extensive plant remediation Rare Earth Business Performance | Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Sales | 546,615 Thousand HKD | 858,249 Thousand HKD | -36% | | Sales Volume | Approx. 670 Tonnes | - | -25% | | Gross Margin | Approx. -6% | - | Turned from profit to loss | - The business operation model has gradually transitioned to focus on trade processing, with extensive plant land remediation affecting business operations[42] - Geographic market distribution remains highly concentrated in the China domestic market, accounting for approximately 97% of total rare earth product revenue[69] Refractory Materials Business Affected by China's lockdowns and weak downstream demand, refractory materials sales decreased 26% to HKD 264 million, with volumes down, resulting in a segment gross margin of approximately 12% Refractory Materials Business Performance | Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Sales | 263,798 Thousand HKD | 354,222 Thousand HKD | -26% | | Segment Gross Margin | Approx. 12% | - | - | | Refractory Materials Sales Volume | Approx. 24,600 Tonnes | - | -30% | | Magnesia Sales Volume | Approx. 18,900 Tonnes | - | -15% | - The magnesia business turned from profit to loss with a gross loss rate of approximately 7% due to unstable supply and soaring costs of raw materials (magnesite, electrodes)[71] - Overseas markets (Japan, South Korea, etc.) saw increased exports due to economic recovery, raising their share of refractory product revenue to approximately 32%[85] Environmental Remediation Project The Group undertook a comprehensive soil and groundwater remediation project at its Yixing rare earth plant, incurring a cost of approximately HKD 326 million recognized as other operating expenses, a primary cause of the annual loss - To comply with government environmental requirements and fulfill social responsibility, soil pollution remediation was conducted at the Yixing plant[86] - The total cost of the remediation project was approximately HKD 326 million, recognized as other operating expenses in the income statement and completed by year-end[86][55] Outlook and Strategies The Group is optimistic about the rare earth market, especially demand from new energy industries, and plans to seek strategic collaborations, consider relocating the Yixing production line, and anticipates a recovery in refractory materials demand - Strategic priorities include seizing new energy development opportunities, focusing on high-end rare earth permanent magnet materials, and adhering to high-quality development[47] - The Group is actively resuming cooperation discussions with China Northern Rare Earth (Group) and conducting due diligence on an investment with Longchuan Zhongxin Xisheng to extend upstream development[74] - As a long-term plan, the Group is considering relocating the Yixing rare earth separation production line to be closer to rare earth mineral sources and enhance efficiency[48] Liquidity and Financial Resources The Group maintains a prudent financial policy with approximately HKD 1.45 billion in cash and no bank borrowings as of year-end 2022, maintaining a low 6% total liabilities to total assets ratio Liquidity Indicators (December 31, 2022) | Indicator | Amount (Thousand HKD) | | :--- | :--- | | Cash and Bank Deposits | 1,452,386 | | Net Current Assets | 2,017,629 | | Bank Facilities | 167,917 (RMB 150 Million) | | Utilized Facilities | 0 | - The Group has no borrowings from any banks or financial institutions, nor does it hold any financial derivative products[50] - Due to slower customer payments and delayed accounts receivable aging, the Group increased its provision for impairment losses on accounts receivable by approximately HKD 15.29 million at year-end[76] Corporate Governance and Other Information Employees and Remuneration As of year-end 2022, the Group employed approximately 360 staff, with annual employee costs of approximately HKD 36.38 million, and granted 100 million share options - As of December 31, 2022, the Group employed a total of approximately 360 staff, similar to the previous year-end[77] - Total employee costs for the year (including directors' emoluments) amounted to approximately HKD 36.38 million, a slight decrease from 2021[77] - On November 30, 2022, a total of 100,000,000 share options were granted to certain eligible participants, with an exercise price of HKD 0.51 per share[78][91]