China Mining International (BHD) H1 2023 earnings summary

Executive summary

• H1 2023 revenue was RMB6.856m and gross profit RMB0.749m; net loss was RMB8.199m, versus RMB21.390m revenue and RMB7.285m net loss in H1 2022.

• Lower revenue reflected discontinuation of low-margin internet-platform trading; pomegranate sales are seasonal, with harvesting in H2.

• Management expected H2 2023 performance to outperform H1, barring unforeseen circumstances, with pomegranate demand typically peaking in Q4.

Financial highlights

• Revenue fell to RMB6.856m from RMB21.390m YoY; gross profit was RMB0.749m versus RMB1.348m, while gross margin rose to 10.9% from 6.3%.

• Loss before tax widened to RMB8.160m from RMB7.322m; net loss was RMB8.199m versus RMB7.285m.

• Loss attributable to shareholders was RMB6.781m versus RMB6.448m; H1 2023 included a one-off net impairment write-back after recovery of previously provided bad debts.

• Other income included RMB644,000 insurance compensation and RMB32,000 government grants; other expenses included a one-off RMB344,000 bearer-plant write-off.

• Finance expense rose to RMB2.345m from RMB1.663m, mainly reflecting loans secured toward the end of H1 2022.

Outlook and guidance

• H2 2023 performance was expected to outperform H1, barring unforeseen circumstances; pomegranate harvesting takes place in September–October and demand generally peaks in Q4.

• Storage facilities are used to preserve pomegranates for up to three months; additional third-party warehouse space may be leased if needed to support the peak sales period.