Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Greenway Mining Group Limited
信盛礦業集團有限公司*
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 2133)
INSIDE INFORMATION
- UPDATE ON DEVELOPMENT OF MYANMAR MINES; AND
-
THE UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31
DECEMBER 2020
This announcement is made by Greenway Mining Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules (the "Listing Rules") Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
(1) UPDATE ON DEVELOPMENT OF MYANMAR MINES
Reference is made to the announcement of Company dated 19 March 2021 regarding, inter alia, the delay in publication of the 2020 annual results (the "Announcement"). Unless otherwise defined, capitalised terms used herein shall have the same meanings as those defined in the Announcement.
As disclosed in the Announcement, due to (i) the continuing worsening of the emergency situation in Myanmar since early 2021, where the Myanmar military has recently imposed martial law in more areas across Myanmar, certain telecommunications had been interrupted and/or restricted and many countries have announced the arrangements for evacuation of their nationals; and (ii) the continuing spread of the COVID-19 pandemic, which resulted in certain travel prohibitions and/or restrictions imposed by the governments of Myanmar and China, the
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upgrading and renewal of mining rights is expected to be delayed.
As at the date of this announcement, the emergency situation in Myanmar and COVID-19 pandemic continue to get worse and the travel and telecommunications in Myanmar has been largely interfered or disconnected and it is expected that such adverse situation will continue for a period of time. Therefore, barring any extraordinary circumstance which are beyond the contemplation of the Company, it is expected that the approval procedures for the renewal and/or upgrading of the mining licenses of the Group's mines in Myanmar and China will continue to be postponed or delayed and the daily operations of local government, banks and other working units with the Group will be affected. Further time therefore is needed to complete the remaining audit procedure, valuation of the mining assets of the Group and the related works for the year ended 31 December 2020.
The Board will continue to use its best endeavours to facilitate the approval of renewal and/or upgrading of the mining licenses of our mining assets by relevant authorities in Myanmar and China as well as to ensure that its production and operations will not be materially affected by the current adverse conditions.
For the above reasons, it is believed that factors such as the current emergency situation in Myanmar and the continuing spread of the COVID-19 pandemic will affect the valuation of the Company's business and assets in Myanmar and China. Based on the principle of prudence, it is expected that the significant non-cash accounting impairment adjustments will most likely be required for the Group's assets and businesses in Myanmar and China, which will have material and adverse impacts on the 2020 Annual Results of the Company. In view of the above, the relevant audit works have not been completed as at the date of this announcement and the publication of the 2020 Annual Results and Annual Report will be delayed.
The Company will issue further announcement(s) (if necessary) on the update on development of Myanmar Mines in accordance with the Listing Rules in due course.
- THE UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020
The Board hereby announces the information of the unaudited accounts of the Company for the year ended 31 December 2020 and the audited accounts for the year ended 31 December 2019 as follows:
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME | ||
2020 | 2019 | |
RMB'000 | RMB'000 | |
(Unaudited) | (Audited) | |
REVENUE | 52,024 | 109,483 |
Cost of sales | (47,516) | (100,031) |
Gross profit | 4,508 | 9,452 |
Other income and gains | 3,282 | 4,845 |
Selling and distribution expenses | (2,454) | (5,553) |
Administrative expenses | (41,847) | (37,297) |
Other expenses | (356,544) | (5,562) |
Share of losses of an associate | (1,418) | (2,618) |
Finance costs | (22,505) | (25,776) |
LOSS BEFORE TAX | (416,978) | (62,509) |
Income tax expenses | (3,270) | (19,769) |
Loss for the year | (420,248) | (82,278) |
OTHER COMPREHENSIVE INCOME: | ||
Other comprehensive income that may be | ||
reclassified to profit or loss in subsequent years: | ||
Exchange differences arising on translation of | ||
foreign operations | 1,664 | 5,483 |
TOTAL COMPREHENSIVE LOSS FOR THE | ||
YEAR | (418,584) | (76,795) |
Loss for the year attributable to: | ||
Owners of the Company | (403,131) | (70,789) |
Non-controlling interests | (17,117) | (11,489) |
(420,248) | (82,278) | |
Total comprehensive loss for the year attributable to: | ||
Owners of the Company | (401,467) | (66,077) |
Non-controlling interests | (17,117) | (10,718)) |
(418,584) | (76,795) | |
Loss per share attributable to ordinary equity holders | ||
of the Company: | RMB(0.90) | RMB(0.16) |
- Basic and diluted | (restated) |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||
2020 | 2019 | |
RMB'000 | RMB'000 | |
(Unaudited) | (Audited) | |
NON-CURRENT ASSETS | ||
Property, plant and equipment | 650,337 | 805,747 |
Investment properties | 6,077 | 6,658 |
Intangible assets | 911,172 | 985,541 |
Investment in an associate | 12,386 | 19,126 |
Right-of-use assets | 7,496 | 11,198 |
Payment in advance | 210,960 | 213,815 |
Prepayments and deposits | 83,862 | 215,126 |
Pledged deposits | 2,005 | 1,999 |
Deferred tax assets | 45,065 | 49,649 |
Total non-current assets | 1,929,360 | 2,308,859 |
CURRENT ASSETS | ||
Inventories | 11,960 | 11,484 |
Trade receivables | 2,663 | 2,889 |
Prepayments, deposits paid and other receivables | 16,695 | 13,417 |
Due from an associate | 10,756 | 9,086 |
Cash and cash equivalents | 19,321 | 2,760 |
61,395 | 39,636 | |
Assets classified as held for sale | 5,322 | - |
Total current assets | 66,717 | 39,636 |
CURRENT LIABILITIES | ||
Trade payables | 19,592 | 17,884 |
Contract liabilities | 10,921 | 10,904 |
Other payables | 143,227 | 119,741 |
Provision | 6,077 | - |
Tax payables | 5,357 | 5,347 |
Lease liabilities | 221 | 532 |
Due to a related party | 45,319 | 31,068 |
Interest-bearing bank loans | 70,000 | 35,549 |
Total current liabilities | 300,714 | 221,025 |
NET CURRENT LIABILITIES | (233,997) | (181,389) |
Total assets less current liabilities | 1,695,363 | 2,127,470 |
NON-CURRENT LIABILITIES | ||
Other payables | - | 3,734 |
Lease liabilities | - | 221 |
Interest-bearing bank loans | 274,539 | 308,990 |
Provision for rehabilitation | 35,689 | 34,239 |
Deferred tax liabilities | 28,709 | 30,015 |
Total non-current liabilities | 338,937 | 377,199 |
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Net assets | 1,356,426 | 1,750,271 |
EQUITY | ||
Equity attributable to owners of the Company | ||
Issued capital | 38 | 30 |
Reserve | 1,202,500 | 1,547,067 |
1,202,538 | 1,547,097 | |
Non-controlling interests | 153,888 | 203,174 |
Total equity | 1,356,426 | 1,750,271 |
DISCLAIMER
The information contained in this announcement for FY2020 is based only on the preliminary assessment by the Board and the Audit Committee upon its review of the unaudited consolidated management accounts of the Group and the currently available information to the Board which have not been audited nor reviewed by the Company's independent auditors and has not considered and taken into account the amount of the non-cash accounting treatment in relation to impairment losses of Myanmar segment. The financial results of the Group for FY2020 will only be ascertained after all the relevant results and accounting treatments have been finalized.
The above-mentioned data are provided for investors' reference only, and do not constitute, nor should they be construed as, an offer or solicitation to sell or buy any securities or financial products of the Company. They should not be used as a basis for research reports, and are not intended to, nor should they constitute any investment advice.
The Company will publish further announcement(s) if there is any additional information warranting disclosure in accordance with the Listing Rules, including the amount of the non- cash accounting treatment in relation to impairment losses of Myanmar segment. The board cannot guarantee the preliminary unaudited financial information set out above truly, reflects the information performance and conditional of the Group and such information might be misleading if any potential adjustments have not been taken into accuracy. Shareholders and potential investors of the Company are advised to refer to the details of the Company's final results announcement for FY2020 and assuming that the emergency situation in Myanmar and COVID-19 pandemic will gradually recover, it is preliminarily scheduled to be published before the end of June 2021.
Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.
By Order of the Board
Greenway Mining Group Limited
Lei Dejun
Executive Director
Hong Kong, 23 April 2021
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As at the date of this announcement, the Board comprises Mr. Lei Dejun as executive director; Mr. Pan Junhong, Mr. Yin Bo, Mr. Chan Suk Ching and Mr. Zhang Yonghua as non-executive directors; and Mr. Ma Shirong, Mr. Chi Hongji and Mr. Dong Tao as independent non- executive directors.
*For identification purpose only
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Greenway Mining Group Limited published this content on 23 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2021 12:17:07 UTC.