APAC Resources : Annual Report 2019

僅供識別

（於百慕達註冊成立之有限公司） 股份代號

2019

ANNUAL REPORT

年報

CONTENTS

03

04

06

14

19

31

43

93

99

100

101

103

104

106

236

Corporate Information

CEO's Message

Management Discussion and Analysis

Biographical Details of Directors and Management

Directors' Report

Corporate Governance Report Environmental, Social and Governance Report Independent Auditor's Report Consolidated Statement of Profit or Loss

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements Financial Summary

CORPORATE INFORMATION

BOARD OF DIRECTORS

Executive Directors

Mr. Brett Robert Smith (Deputy Chairman)

Mr. Andrew Charles Ferguson (Chief Executive Officer)

Non-Executive Directors

Mr. Arthur George Dew (Chairman)

(Mr. Wong Tai Chun, Mark as his alternate) Mr. Lee Seng Hui

Mr. So Kwok Hoo

Independent Non-Executive Directors

Dr. Wong Wing Kuen, Albert

Mr. Chang Chu Fai, Johnson Francis

Mr. Robert Moyse Willcocks

Mr. Wang Hongqian

AUDIT COMMITTEE

Dr. Wong Wing Kuen, Albert (Chairman)

Mr. Arthur George Dew

(Mr. Wong Tai Chun, Mark as his alternate) Mr. Chang Chu Fai, Johnson Francis

Mr. Robert Moyse Willcocks

Mr. Wang Hongqian

REMUNERATION COMMITTEE

Dr. Wong Wing Kuen, Albert (Chairman)

Mr. Arthur George Dew

(Mr. Wong Tai Chun, Mark as his alternate) Mr. Chang Chu Fai, Johnson Francis

Mr. Robert Moyse Willcocks

Mr. Wang Hongqian

NOMINATION COMMITTEE

Mr. Arthur George Dew (Chairman)

(Mr. Wong Tai Chun, Mark as his alternate) Dr. Wong Wing Kuen, Albert

Mr. Chang Chu Fai, Johnson Francis

Mr. Robert Moyse Willcocks

Mr. Wang Hongqian

COMPANY SECRETARY

Ms. Lau Tung Ni

AUDITOR

Deloitte Touche Tohmatsu

STOCK CODE

1104

LEGAL ADVISERS

Addisons

Conyers Dill & Pearman

P. C. Woo & Co.

PRINCIPAL BANKERS

Bank of China (Hong Kong) Limited

Bank of Communications Co., Ltd. Hong Kong Branch DBS Bank (Hong Kong) Limited

Industrial and Commercial Bank of China (Asia) Limited OCBC Wing Hang Bank Limited

HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS

Room 2304, 23rd Floor

Allied Kajima Building

138 Gloucester Road

Wanchai

Hong Kong

Tel: [phone]

Fax: [phone]

REGISTERED OFFICE

Clarendon House

2 Church Street

Hamilton HM11

Bermuda

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

MUFG Fund Services (Bermuda) Limited 4th floor, North Cedar House

41 Cedar Avenue

Hamilton HM 12 Bermuda

H O N G K O N G B R A N C H S H A R E REGISTRAR AND TRANSFER OFFICE

Tricor Secretaries Limited

Level 54, Hopewell Centre

183 Queen's Road East

Hong Kong

WEBSITE

www.apacresources.com

apac.quamir.com

APAC Resources Limited	03
Annual Report 2019

CEO'S MESSAGE

Dear Shareholder,

I would like to thank you for your ongoing support and am pleased to announce that APAC Resources generated a net profit of HK$608,432,000 in the year ended 30 June 2019 ("FY 2019"). Key drivers are gains arising from share of results of associates of HK$273,750,000, and a reversal of impairment loss on the carrying value of the Group's investment in Mount Gibson Iron Limited of HK$656,390,000, which benefitted by a strong iron ore price during FY 2019 due to production outages in Brazil. This was partially offset by a tough economic environment which dragged down commodity prices and as a result our core business segments generated a loss of HK$43,083,000.

The "Trade War" between China and US continues to drive global economic headlines. Another round of US tariffs came into effect in early September on US$110 billion of Chinese consumer goods with another US$160 billion of goods expected to be affected in December, and China responding with its own tariffs against roughly US$75 billion of US goods. However, China indicated in late August that it would not immediately retaliate to a tweet from President Trump stating that the US would increase existing 25% tariffs to 30% on 1 October. This has been interpreted by the markets as an attempt to de-escalate the situation with face to face talks suggested for September. While this appears to be positive, we remain cautious in our outlook given the ongoing US-China talks have not yielded results so far, and expect market sentiment to be linked to the outcome of the Trade War.

Tension between Japan and South Korea is also putting pressure on the global economy, with Japan removing South Korea from a list of trusted trading partners, following Japan's decision to restrict exports of specialized products to South Korea, impacting South Korea's key technology industry.

Brexit remains an overhang on the UK and European economies, the UK appears on track for a "hard Brexit" by 31 October, which will result in new tariffs between UK and the EU, as they revert to WTO terms.

The general deterioration in the global economy is clearly reflected in global PMIs, with almost all countries showing a steady downward trend in manufacturing PMIs. In China, the manufacturing PMI for August fell to 49.5 marking a fourth month of contraction. Furthermore, the US yield curve inverted in August, generally seen as a signal for a recession.

In an attempt to counteract weakness, we are seeing central banks and governments considering measures to prop up their economies including fiscal stimulus, tax cuts, interest rate cuts and QE. The US Fed has already cut interest rates in July, and markets are expecting another interest rate cut in September.

04	APAC Resources Limited
	Annual Report 2019