APAC Resources (SEHK: 1104)

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$275,329,000 for the six months ended 31 December 2021 (“1H FY2022”), compared with a net profit attributable to shareholders of the Company of HK$1,177,467,000 for the six months ended 31 December 2020 (“1H FY2021”). This loss includes two large non-cash items that relate to an impairment loss in an associate of HK$752,976,000 due to the fall in the value in use of Mount Gibson Iron Limited (“Mount Gibson”), partially offset by gains from change in fair value of HK$342,584,000 due to the strong share price of Metals X Limited (“Metals X”). Excluding these non-cash items, we reported underlying segment profit of HK$287,865,000, which was driven by strong performance in our Resource Investment division where we generated a segment profit of HK$212,830,000.

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 31 December 2021, our non-current assets amounted to HK$2,568,937,000 (As at 30 June 2021: HK$2,755,862,000) and net current assets amounted to HK$1,774,214,000 (As at 30 June 2021: HK$2,076,671,000) with a current ratio of 5.2 times (As at 30 June 2021: 20.7 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$3,940,000 (As at 30 June 2021: HK$3,924,000) and loan receivables of HK$375,357,000 (As at 30 June 2021: HK$493,850,000).

As at 31 December 2021, we had borrowings (excluding lease liabilities) of HK$118,771,000 (As at 30 June 2021: Nil) and had undrawn banking facilities amounting to HK$433,942,000 secured against certain term deposits or trading securities of the Group upon utilisation of such banking facilities. As at 31 December 2021, we had a gearing ratio of nil (As at 30 June 2021: Nil), calculated on the basis of net debt over equity attributable to owners of the Company. For this purpose, net debt is defined as borrowings (excluding lease liabilities) less cash and cash equivalents.

(update as of 28 February 2022)