Share This

Public company info - Ding He Mining Holdings Ltd. , 00705.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

Ding He Mining Holdings Ltd., 00705.HK - Company Profile
Chairman WANG Song Ling
Share Issued (share) 6,610,000,000
Par Currency
Par Value 0.0
Industry Other Minerals
Corporate Profile Business Summary: The Group operates in the State of Perak, Malaysia through its wholly owned subsidiary CVM Magnesium Sdn. Bhd. (“CVMSB”) which is the first primary magnesium producer in South East Asia. The Group is also engaged in the extraction and bottling of mineral water in the People’s Republic of China (the “PRC”) and the exploration of iron ore, coal and manganese in the Republic of Indonesia (“Indonesia”). Performance for the year: The Group’s turnover amounted to HK$9,027,978, representing a corresponding decrease of 65.6%. The Group’s gross loss amounted to HK$217,751, representing a corresponding decrease of 98.7%. The Group’s profit for the year amounted to HK$50,450,064, as compared to the loss for the year of HK$118,384,897 for last year. Earnings per share amounted to HK1.08 cents, as compared to the loss per share of HK3.29 cents for last year. Business Review: During the year, Ding He Mining Holdings Limited (the “Company”, together with its subsidiaries, the “Group”) continued to work with stakeholders: potential lenders, investors, and professionals with the attempts to mitigate impacts affected the “group” getting back to normal business, in particular the depressed global magnesium price affected the business in Malaysia, uncertainties in legal proceedings of the business in Indonesia put a halt to the business, and unfavorable market conditions for capital raising activities or continue borrowing money for its operations, all these conditions have been the major factors affecting the Group’s performance. For the year ended 31 December 2016, the Group maintained three major business segments namely, (i) mining of dolomite and manufacture of magnesium ingots; (ii) extraction and bottling of mineral water; and (iii) exploration of iron ore, coal and manganese. Mining of Dolomite and Manufacture of Magnesium Ingots Given that the challenges of keen competition from other manufacturers and cost-effectiveness of the production capacity, the smelter plant of the Group which situates in the State of Perak, Malaysia (the “Smelter”) continued to refrain from its full-scale operation during the year. Moreover, extraction of dolomite has been halted since 2012 and accordingly, there was no dolomite extracted from the dolomite quarry for the year ended 31 December 2016. For the year ended 31 December 2016, revenue generated from this business segment decreased by approximately 66.6% to HK$8,580,874, as compared to that of HK$25,662,642 for the year ended 31 December 2015. The Company obtained an update valuation dated 21 March 2017 (the “Report”) from Raine & Horne International Zaki + Partners Sdn. Bhd., an independent firm of chartered surveyors and registered valuers. In accordance with the Report, the market value of the leasehold land, building, plant and machinery in Perak was RM80.2 million (equivalent to approximately HK$138.8 million). The valuation adopted (i) comparison method with reference to recent transactions and sale evidences and (ii) cost method through the summation of the value components of the land and cost of building. In view of a moderate increase of 2.5% of house price in Perak in the third quarter of 2016 as released by Valuation and Property Services Department (JPPH), the Board considered that there was no significant deviation in the market situation at 31 December 2016. Extraction and Bottling of Mineral Water In 2012, the Group acquired the controlling interests in Victory Dragon Holdings Limited and its subsidiary, 龍川升龍礦泉有限公司 (Long Chuan Shen Long Mineral Water Co. Ltd.) (“Long Chuan”). Long Chuan obtained the mining permit and water permit of the Longchuan Spring water (“Longchuan Spring”) located at Longmu Town, Longchuan County, Guangdong Province, PRC, covering an aggregate mining area of approximately 0.3956 km2. The principal activities of Long Chuan are manufacturing, sale and distribution of bottled mineral water in the PRC. Long Chuan is currently branding and marketing bottled mineral water in PRC under the brand name Jenbo. During the year, the investment plan of Long Chuan in a new production line for sparkling water was still in abeyance due to limited cash resources available for the Group. Turnover of this business segment fell approximately 23.4% to HK$447,104 (2015: HK$583,596) and segment loss increased 119.1% to HK$13,707,065 (2015: HK$6,254,840). Exploration of Iron Ore, Coal and Manganese PT. Laksbang Mediatama (“PTLM”), a non-wholly owned subsidiary of the Company is principally engaged in the exploration of manganese resources in Yogyakarta Province, Indonesia. Due to conflicts between its directors and legal representative, the operation of PTLM (including the exploration project) has been suspended since 2012. As additional time is required to identify suitable candidates to fill the vacancies of directorship and legal representative after a court judgement granted on November 2014, the operation and exploration activities of PTLM are yet to be reinstated. Hence, the potential revenue generating from PTLM was further delayed and the estimated future cash inflow derived from the exploration activities of PTLM was deferred. Prospects: The Group experienced another challenging year of 2016. Notwithstanding the current situation of the Group and the global political and economical uncertainties, the Directors had successfully mitigated certain liquidity risks of the Group. By negotiating with the creditors of the Group for loan restructuring, the secured bank loans were fully settled during the year. In order to further improve the liquidity of the Group, the Directors planned to negotiate with other creditors to reach alternative repayment arrangements. In recent years, price of magnesium remained low while competition from other industry players, especially China, continued to be strong that further suppressed the revenue of the Group’s mining sector. Having considered the difficulties facing the mining industry, the Group determined to actively explore and identify other acquisition, collaboration and investment opportunities in other industries in an attempt to diversify its business and broaden its revenue sources. Going forward, the Company will continue to heighten its efforts to resolve and leverage the challenges in the current business units. The Group will take prudent measures to improve its overall performance efficiency and explore opportunities in other new business areas with the aim of minimising the risk and optimising the value of the Group and the Group's shareholders as a whole.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.