APAC Resources Limited (“APAC” or the
“Company”) and its subsidiaries (collectively, the “Group”)
reported a net loss attributable to shareholders of the
Company of HK$429,401,000 for the year ended 30 June 2020 (“FY
2020”), compared with a net profit attributable to
shareholders of the Company of HK$608,432,000 for the year
ended 30 June 2019 (“FY 2019”). In the past 12 months our
Resource Investment, and Principal Investment and Financial
Services segments generated a combined profit of
HK$121,207,000. However, this was offset by a non-cash
impairment loss on our ownership in Mount Gibson Iron Limited
(“Mount Gibson”) of HK$580,014,000 driven by the weaker Mount
Gibson share price.
Primary Strategic Investments
Financial Assets at Fair Value through Profit or Loss
Resource Investment
Commodity Business
Principal
Investment and Financial Services
Money Lending
Liquidity, Financial Resources and Capital Structure
As
at 30 June 2020, our non-current assets amounted to
HK$1,930,522,000 (As at 30 June 2019: HK$2,264,877,000) and
net current assets amounted to HK$1,506,047,000 (As at 30 June
2019: HK$1,749,610,000) with a current ratio of 17.7 times (As
at 30 June 2019: 135.2 times) calculated on the basis of its
current assets over current liabilities. Included in
non-current assets and current assets are loan notes of
HK$3,916,000 (As at 30 June 2019: HK$51,168,000) and loan
receivables of HK$468,876,000 (As at 30 June 2019:
HK$401,418,000).
As
at 30 June 2020, we had no borrowings (As at 30 June 2019:
Nil) and had undrawn banking facilities amounting to
HK$298,084,000 secured against certain term deposits of the
Group. As at 30 June 2020, we had a gearing ratio of nil (As
at 30 June 2019: Nil), calculated on the basis of total
borrowings over equity attributable to owners of the Company.
As
announced on 11 March 2019, the Company decided to implement a
rights issue (the “Rights Issue”) on the basis of one rights
share for every two existing shares in issue by issuing
406,297,971 rights shares, with aggregate nominal value of
HK$406,297,971, at the subscription price of HK$1.10 per
rights share raising gross proceeds of approximately HK$447
million and net proceeds of approximately HK$438 million
(approximately HK$1.08 per share). The Rights Issue was
completed in April 2019. The subscription price represented a
discount of approximately 14.73% to the closing price of
HK$1.29 per share as quoted on The Stock Exchange of Hong Kong
Limited on 11 March 2019. The directors of the Company
considered the Rights Issue would provide an opportunity to
raise capital for the Company whilst strengthening the capital
base and the financial position of the Company. During 1H FY
2020, approximately HK$237.2 million, which remained unused as
at 30 June 2019 and proposed to use for investments in
resources sector within a 6-month period from 30 June 2019,
was used to further invest in companies involved in the
resources sector. As at 30 June 2020, all proceeds from the
Rights Issue were used and details of use of proceeds were as
follows:
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