Incidents:

Company Announces 2023 Results:

In 2023, the company achieved revenue of HK$5.891 billion, a year-on-year decrease of 28%; profit attributable to the owners of the company was HK$1,889 million, a year-on-year decrease of 30%; basic profit per share was 37.66 HK cents; and a final dividend of HK18 cents per share was proposed.

For the year ended December 31, 2023, the company's original coking coal production was about 5.25 million tons (2022: about 5.25 million tons), maintaining the level of last year; while fine coking coal production was about 3.25 million tons (2022: about 3.23 million tons), a slight increase of 1% year-on-year.

Comments and opinions:

The decline in performance was mainly due to a sharp drop in the volume and price of coking coal:

The decline in the company's revenue was mainly due to a 20% year-on-year reduction in the average sales price of refined coking coal and a 7% year-on-year decline in the sales volume of refined coking coal, along with the negative impact of the average RMB exchange rate against the Hong Kong dollar falling by about 4.6% year on year. The decline in coking coal sales is mainly due to an increase in the inventory of 140,000 tons of coal delivered to customers as of December 31, 2023, which was not recognized as revenue in accounting; the decline in coking coal prices was mainly due to market price fluctuations.

The original coking coal production guide declined slightly in '24, and mine intelligence further reduced costs and increased efficiency:

Because the company's Xing Wu Mining entered joint trial operation of the next coal group, the shutdown of the previous coal group will affect production in the first half of the year. The company lowered its annual raw coking coal production guideline to 48-525 million tons. In '23, the company further promoted cost reduction and efficiency. The cash production cost of tons of raw coking coal (excluding resource tax and corresponding levies) was reduced by 5% when production remained flat; the processing cost of fine coking coal decreased by 6%. Of the company's total capital expenditure of 600 million yuan in 24, 300 million will be used for intelligent mine construction. In February 2024, the Yuezhai mine passed the provincial intelligent mine intermediate assessment. It is expected that after all three of the company's mines are built through intelligent mine construction, the company's costs will be further reduced and the current gross profit level of tons will be maintained.

Stable high payouts, dividend ratio of up to 10%:

The company continues to maintain a sound financial position and holds usable bank balances and cash balances of approximately HK$7.945 billion (2022: approximately HK$6.014 billion). The company paid out a total of HK28 cents for the full year of 2023, with a dividend ratio of 75% and a dividend ratio of up to 10%.