I am pleased to report that the commodities sector remained strong during the six months ended 31 December 2025, and it is encouraging to see this reflected in both APAC Resources’ financial results and share price performance.  

I am delighted to report for the period, the Company recorded a net profit attributable to shareholders of HK$1,860,060,000. This performance was driven primarily by our Resource Investment segment, which delivered a segment profit of HK$1,299,552,000. These results compare favourably with the Company’s market capitalisation in early February 2026 of approximately HK$4.4 billion and underscore the value being generated across our portfolio.  

Commodity markets benefited from a range of supportive factors, including ongoing geopolitical tensions, concerns over fiscal deficits, tight supply balances, and accelerating investment in electrification and artificial intelligence. These dynamics have contributed to broad-based strength across the sector. While we remain mindful of potential volatility, we believe that many of these structural tailwinds will persist as we move into 2026.

The global political and economic landscape remains complex and, at times, unpredictable. Recent actions and policy shifts by the U.S. government have had a significant influence on global markets. Developments such as negotiations involving Venezuela, Russia-Ukraine, and Iran have the potential to alter the global power balance and, in turn, affect commodity supply and demand. In addition, possible tariff changes arising from the Section 232 investigation and ongoing trade discussions with China could materially impact demand for base and critical metals. These are issues we continue to monitor closely.

The U.S. economy is also presenting mixed signals. While economic indicators show resilience – with the January 2026 PMI reaching 52.4 – there are signs of softening in the labour market, including the highest level of job cuts in January since 2009. With mid-term elections approaching and an anticipated change in the Federal Reserve leadership, we expect the economic and policy environment to remain uncertain, with potential implications for interest rate strategy and equity market valuations.

In China, conditions are similarly nuanced. Although the country achieved GDP growth of 5% in 2025, domestic consumption and the property market have yet to demonstrate a sustained recovery. Consumer prices remained flat for the year, while producer prices continued to decline, reflecting underlying economic weakness. Without meaningful stimulus measures, the outlook for China’s growth momentum remains uncertain.  

Notwithstanding these near-term challenges, our long-term outlook for commodities remains firmly positive. The global energy transition, rising demand for critical minerals, onshoring, geopolitical uncertainty, and continued investment in AI infrastructure all support the case for sustained demand growth. We expect these trends to benefit a wide range of resources, including precious metals, base metals, lithium and other critical materials, as well as low-carbon energy sources such as natural gas, uranium, and renewables. Our diversified portfolio and disciplined investment approach position us well to navigate volatility and capture emerging opportunities.

We are also excited by the strategic progress of our largest investment, MGX Resources Limited (formerly known as Mount Gibson Iron Limited). The completion of its acquisition of a 50% interest in the Central Tanami Gold Project Joint Venture in early February 2026 marks an important milestone. This high-quality asset, with existing mineral resources of 2.8 million ounces of gold grading 2.8 grams per tonne, provides a compelling platform for future value creation.

While we remain committed to delivering long-term value for shareholders through a balanced and sustainable approach to capital allocation, the Board has made the prudent decision not to declare an interim dividend at this time. We will continue to review our dividend policy carefully in light of market conditions and our outlook for sustainable growth.

Finally, I would like to express my sincere gratitude for your continued support and confidence in APAC Resources. Your trust in our vision and strategy is greatly valued, and we remain committed to working diligently on your behalf as we navigate the opportunities and challenges ahead.