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KINETIC MINES AND ENERGY LIMITED力 量 礦 業 能 源 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 1277) ANNOUNCEMENT OF UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 FINANCIAL HIGHLIGHTSDuring the six months ended 30 June 2016, the Group's Dafanpu Coal Mine and the coal trading businesses in Qinhuangdao and the Xiaojia Station have been fully operational and running smoothly.
The Group's coal sales volume for the six months ended 30 June 2016 decreased by 39.4% when compared to the six months ended 30 June 2015. This was mainly attributable to the loss of production time as a result of changing of coal mining surfaces, as well as controls imposed by the PRC Government on coal production. During the six months ended 30 June 2016, the Group sold approximately 1.03 million tonnes of commercial coal and the Group's revenue decreased from RMB562.1 million for the six months ended 30 June 2015 to RMB298.1 million for the six months ended 30 June 2016.
The consolidated loss of the Group for the six months ended 30 June 2016 was approximately RMB44.6 million (six months ended 30 June 2015: loss RMB12.5 million).
The board of directors (the "Board") of Kinetic Mines and Energy Limited (the "Company") announces the unaudited consolidated interim results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2016, together with the comparative figures for the corresponding period ended 30 June 2015 as follows:
CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFor the six months ended 30 June 2016 - unaudited (Expressed in Renminbi)
Six months ended 30 June | ||||
2016 | 2015 | |||
Notes | RMB'000 | RMB'000 | ||
Revenue | 4 | 298,113 | 562,073 | |
Cost of sales | (278,986) | (501,368) | ||
Gross profit | 19,127 | 60,705 | ||
Other income and gains | 4 | 2,113 | 89 | |
Selling expenses | (3,503) | (3,723) | ||
Administrative expenses | (39,634) | (35,752) | ||
Operating (Loss)/Profit | (21,897) | 21,319 | ||
Share of (loss)/profits of an associate | (365) | 6,777 | ||
Finance costs | 6 | (33,547) | (44,898) | |
Loss before tax | 5 | (55,809) | (16,802) | |
Income tax credit | 7 | 11,222 | 4,280 | |
Loss for the period | (44,587) | (12,522) | ||
Other comprehensive income for the period: | ||||
Exchange differences on translation of financial statements of operations outside the PRC | 172 | 1 | ||
Total comprehensive loss for the period | (44,415) | (12,521) | ||
Basic and diluted loss per share (RMB) | 8 | 0.0053 | 0.0015 | |
Interim dividend per share (RMB) | 17 | - | - |
As at 30 June 2016 - unaudited (Expressed in Renminbi)
At 30 June | At 31 December | |||
2016 | 2015 | |||
Notes | RMB'000 | RMB'000 | ||
Non-current assets | ||||
Property, plant and equipment | 9 | 1,263,583 | 1,289,771 | |
Prepaid land lease payments | 10 | 21,056 | - | |
Intangible assets | 11 | 675,288 | 680,696 | |
Interest in an associate | 49,457 | 49,822 | ||
Prepayments for non-current assets | - | 13,721 | ||
Deferred tax assets | 76,505 | 65,283 | ||
2,085,889 | 2,099,293 | |||
Current assets | ||||
Inventories | 34,037 | 32,022 | ||
Trade and other receivables | 13 | 45,731 | 49,252 | |
Pledged deposits | 5,102 | 5,102 | ||
Cash and cash equivalents | 97,511 | 92,011 | ||
182,381 | 178,387 | |||
Current liabilities | ||||
Trade and other payables | 14 | 299,604 | 275,290 | |
Interest bearing bank borrowings | 15 | 750,000 | 500,000 | |
Other borrowings | 16 | 415,545 | 654,918 | |
1,465,149 | 1,430,208 | |||
Net current liabilities | (1,282,768) | (1,251,821) | ||
Total assets less current liabilities | 803,121 | 847,472 | ||
Non-current liabilities | ||||
Accrual for reclamation costs | 2,184 | 2,120 | ||
Net assets | 800,937 | 845,352 | ||
Capital and reserves | ||||
Share capital | 54,293 | 54,293 | ||
Reserves | 746,644 | 791,059 | ||
Total equity | 800,937 | 845,352 |
The Company was incorporated as an exempted company with limited liability in the Cayman Islands on 27 July 2010 under the Companies Law, Chapter 22 (Law 3 of 1961, as consolidated and revised). The Company's registered office address is Clifton House, 75 Fort Street, P.O. Box 1350, Grand Cayman, KY1- 1108, Cayman Islands. The Company and its subsidiaries (collectively referred to as the "Group") are principally engaged in the extraction and sale of coal products. There has been no significant change in the Group's principal activities during the period.
In the opinion of the directors, the holding company and the ultimate holding company of the Company is King Lok Holdings Limited, which was incorporated in the British Virgin Islands with limited liability.
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BASIS OF PREPARATION
The interim condensed consolidated financial statements for the six months ended 30 June 2016 have been prepared in accordance with HKAS 34 Interim Financial Reporting.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2015.
As at 30 June 2016, the Group had net current liabilities balance of RMB1,282,768,000 (unaudited) (30 June 2015: RMB1,251,821,000). The Group's ability to repay its debts when they fall due relies heavily on its future operating cashflow and its ability to renew the bank loans and other borrowings.
In view of the above, the directors of the company have carefully assessed the Group's liquidity position having taken into account (i) the estimated operating cash inflows of the Group for the next twelve months from the end of the current reporting period; (ii) the revolving bank facilities of RMB1,450,000,000 which will not expire until 2018, and (iii) Mr. Zhang Li, a shareholder and director of the Company, has undertake to provide financial support to the Group and would provide personal guarantee for any new loan facilities when necessary. Therefore, it is highly probable that the bank loans and other borrowings can be renewed in the next twelve months.
On the basis of the above consideration, the directors of the company believe that the Group can satisfy its financial obligations in the foreseeable future and accordingly, the interim condensed consolidated financial statements have been prepared on a going concern basis.
- NEW STANDARDS AND AMENDMENTS ADOPTED BY THE GROUP
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2015, except for the adoption of new standards and interpretations effective as of 1 January 2016, noted below.
Amendments to HKFRS 10, HKFRS 12 and HKAS 28 (2011) | Investment Entities: Applying the Consolidation Exception |
Amendments to HKFRS 11 | Joint Arrangements: Accounting for Acquisitions of Interests in Joint Operations |
Amendments to HKAS 1 | Disclosure Initiative |
HKFRS 14 | Regulatory Deferral Accounts |
Amendments to HKAS 16 and HKAS 38 | Clarification of Acceptable Methods of Depreciation and Amortisation |
Amendments to HKAS 16 and HKAS 41 | Agriculture: Bearer Plants |
Amendments to HKAS 27 | Equity Method in Separate Financial Statements |
Annual Improvements 2012-2014 Cycle | Amendments to a number of HKFRSs |
Kinetic Mines and Energy Limited published this content on 19 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 19 August 2016 15:10:01 UTC.
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