Financial Performance - Revenue for the year ended December 31, 2023, was HKD 187,960,000, a decrease of 1.7% compared to HKD 191,180,000 in 2022[145]. - Gross profit decreased by 19.7% to HKD 65,211,000 from HKD 81,166,000 in the previous year[145]. - The company reported a loss attributable to shareholders of HKD 23,734,000, a decline of 331.8% compared to a profit of HKD 10,237,000 in 2022[145]. - Basic loss per share was HKD 1.46, compared to earnings of HKD 0.68 per share in the prior year, representing a decrease of 314.7%[145]. - The loss for the year ended December 31, 2023, was approximately HKD 33,610,000, compared to a profit of approximately HKD 26,100,000 for the year ended December 31, 2022[152]. - 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[153]. - The company produced approximately 904,000 tons of coal and sold approximately 901,000 tons during the year ended December 31, 2023, compared to 909,000 tons produced and 910,000 tons sold in 2022[154]. - The company incurred a one-time expense of approximately HKD 22,188,000 related to a settlement agreement involving its indirect non-wholly owned subsidiary[152]. Assets and Liabilities - Total assets increased slightly by 0.6% to HKD 307,225,000 from HKD 305,350,000 in 2022[145]. - Total liabilities decreased by 2.0% to HKD 109,737,000 from HKD 111,940,000 in the previous year[145]. - Cash and bank balances decreased by 18.8% to HKD 95,359,000 from HKD 117,494,000 in 2022[145]. - Equity attributable to shareholders increased by 12.6% to HKD 138,598,000 from HKD 123,125,000 in the prior year[145]. - Current ratio improved to 1.56 from 1.52 in 2022, reflecting a 2.6% increase[145]. - Total assets as of December 31, 2023, were approximately HKD 307,225,000, with total liabilities of approximately HKD 109,737,000, resulting in a net asset value of approximately HKD 197,488,000[149]. - The group had no borrowings as of December 31, 2023, compared to borrowings of approximately HKD 39,582,000 in 2022[185]. Corporate Governance - The independent auditor received approximately HKD 1,350,000 for audit services for the year ending December 31, 2023, compared to HKD 1,300,000 for 2022[21]. - The audit committee held three meetings during the year ending December 31, 2023, to review financial performance and compliance procedures[13]. - The company has established an audit committee to oversee financial reporting and risk management systems[11]. - The board of directors has complied with the corporate governance code regarding continuous professional development[16]. - The independent non-executive directors' independence was evaluated by the nomination committee during the year[5]. - The company has maintained a 100% attendance rate for key committee meetings by its members[6]. - The audit committee is responsible for reviewing the appropriateness of the group's accounting policies and ensuring compliance with accounting standards[28]. - The company has not established an internal audit department, opting instead to engage external independent professionals for internal audit functions when necessary[30]. Sustainability and Environmental Responsibility - The company is committed to sustainable development in coal mining, focusing on reducing emissions and effective use of energy and water resources[60]. - The coal mining operations are strategically located in Inner Mongolia, which has one of the richest lignite reserves in China[44]. - The company emphasizes the importance of social and environmental responsibility as a core value of its operations[44]. - The environmental, social, and governance (ESG) report covers the period from January 1, 2023, to December 31, 2023[48]. - The company has established a sustainable development project team to manage and monitor sustainability performance and goals[60]. - Stakeholder engagement is crucial for the company's long-term growth and success, with a wide network including employees, customers, suppliers, investors, and local communities[61]. - The company aims to enhance transparency and sustainability in its operations to address industrial pollution and climate change[44]. - The ESG report is prepared according to the guidelines set by the Hong Kong Stock Exchange, ensuring consistency and balance in reporting[45]. - The company has implemented various environmental policies to mitigate potential adverse impacts on the environment[51]. - The governance structure for sustainability matters is overseen by the board of directors, ensuring integration with the company's strategy[60]. - The company has maintained close communication with stakeholders since its listing on the stock exchange, focusing on significant climate-related issues and extreme weather during the reporting period[66]. - The company is committed to sustainable development in its coal mining operations, adhering to all applicable environmental laws and regulations in China[73]. - The company aims to reduce emissions, effectively use energy and water resources, and conserve the ecological environment as part of its environmental commitment[74]. - The management team is responsible for implementing and monitoring the environmental management plan, ensuring compliance with relevant environmental laws[79]. - The company has identified key environmental issues, including greenhouse gas emissions and energy consumption, as high priority for both stakeholders and the business[70]. - The company regularly monitors its coal production activities to ensure compliance with national standards, including noise, water, dust, and ecological restoration[78]. - The company has established a two-dimensional importance matrix to identify high-priority issues based on stakeholder feedback and management perspectives[70]. - The company is focused on enhancing stakeholder communication and improving stakeholder value in its future strategies[75]. - The company is dedicated to providing safe products while protecting the environment and local communities in coal production areas[78]. - The company has committed to a green corporate culture, involving geological and mining experts in decision-making processes to achieve environmental goals[73]. Energy Consumption and Emissions - Total direct energy consumption amounted to 3,258 MWh, with diesel, gasoline, and methanol consumption at 2,265 MWh, 911 MWh, and 82 MWh respectively[90]. - Total indirect energy consumption was 13,548 MWh, leading to a total energy consumption of 16,806 MWh[90]. - Water usage increased to 102,090 cubic meters in 2023 from 99,241 cubic meters in 2022, with a density of 0.113 cubic meters per ton of coal produced[96]. - Greenhouse gas emissions totaled 9,159.3 tons of CO2 equivalent, with an intensity of 20.0 tons per employee[104]. - The company aims to reduce emissions by 15% by 2030 based on 2021 levels, focusing on renewable energy procurement[104]. - The company has implemented noise management plans to mitigate the impact of operations on nearby communities[105]. - The company has established a water conservation management solution to enhance water efficiency and monitor water quality[92]. - The company utilizes mine water to reduce freshwater usage, applying treatment methods for various operational needs[95]. - The company has not reported any significant surface subsidence during the reporting period, maintaining compliance with environmental management principles[97]. - The company prioritizes the use of high-efficiency machinery and equipment to reduce energy consumption[86]. - The company generated approximately 107.4 tons of non-hazardous waste during the reporting period, an increase from 104.4 tons in the previous fiscal year, with a waste density of 0.23 tons per employee[110]. - The total greenhouse gas emissions amounted to 9,159.3 tons, up from 7,956.6 tons in the previous year, with a per employee density of 20.0 tons[123]. - Nitrogen oxides (NOx) emissions increased to 74.9 kg from 66.1 kg year-over-year, while sulfur oxides (SOx) emissions rose to 4.3 kg from 3.8 kg[121]. - The company aims to achieve a 50% reduction in nitrogen oxides emissions by 2050[118]. - The company has implemented measures to reduce energy consumption and greenhouse gas emissions, including upgrading energy sources to methanol instead of liquefied petroleum gas[118]. - The company has established a dust management plan to mitigate coal dust emissions, which pose health risks and potential fire hazards[115]. - The company has adopted resource management plans to ensure effective use of electricity and water resources in coal mining operations[111]. - The company has conducted regular reviews to ensure operational efficiency and compliance with energy-saving policies[114]. - The company has constructed facilities to store non-flammable coal and equipment to reduce air pollution[117]. - The company has implemented a speed limit for heavy machinery and light trucks during coal transportation to control dust emissions[117]. Future Strategies and Investments - The company aims to enhance profitability and geographic diversity while exploring new business and investment opportunities in the mining and energy sectors[139]. - The company expects the annual coal output from its Inner Mongolia coal mine to remain at approximately 900,000 tons[158]. - The average selling price per ton of coal for 2023 is projected to be RMB 178, increasing to RMB 188 in 2024, with inflation rate assumptions of 2.5%[160]. - The group aims to diversify its business portfolio and increase geographical diversity to enhance shareholder value in the future[198]. - The group entered into a memorandum of understanding for a proposed investment in Laos, paying a refundable earnest money of RMB 30,000,000 (approximately HKD 33,000,000)[193]. - The company completed a placement of 322,692,000 new shares at a price of HKD 0.185 per share, raising approximately HKD 59,101,000 net of expenses[197]. - Approximately HKD 14,000,000 of the net proceeds from the share placement will be used to enhance existing coal mining machinery and systems[198].
弘海高新资源(00065) - 2023 - 年度财报