China Mining International (BHD) H2 2023 earnings summary

Executive summary

• FY2023 net loss widened to RMB84.532m from RMB7.579m; the result included a one-off RMB62.964m bearer-plant write-off and materially lower pomegranate harvests.

• Adverse weather, government farmland reclamation and weak demand pressured cultivation and sales; the low-margin online trading business was discontinued in April 2023.

Financial highlights

• Continuing-operations revenue fell to RMB8.492m from RMB34.491m; loss from continuing operations was RMB81.494m versus RMB7.449m.

• Other income rose to RMB20.488m from RMB3.307m, including RMB11.348m government land-reclamation compensation; other expenses reached RMB74.706m, including the RMB62.964m bearer-plant write-off and RMB9.409m non-financial asset impairment.

• Discontinued online trading generated revenue of RMB1.030m versus RMB25.888m and a net loss of RMB3.038m versus RMB0.130m; 2022 comparatives were re-presented.

• Cash and cash equivalents were RMB7.353m at year-end, down from RMB15.095m; operating cash outflow was RMB2.870m.

Outlook and guidance

• FY2024 agriculture is expected to generate operating profit and cash inflows, conditional on recovery from FY2023 weather damage and land-reclamation disruption.

• Strategy prioritises an asset-light model, diversified products and produce, cost containment and pursuit of new growth opportunities, without large capital commitments.

• Management expects liquidity for the 12 months to 31 December 2024, relying on shareholder support, a proposed mining-interest disposal, loan renewals and agriculture recovery.