According to the Zhitong Finance App, Energy & Energy Global (01142) issued an announcement. It is expected that the Group will obtain a profit before income tax of about HK$37 million to HK$51 million for the six months ending September 30, 2023, while profit before income tax will be approximately HK$692 million in the same period last year.
According to the announcement, the estimated decrease in profit before income tax is mainly due to the following net effects of no impairment losses or impairment losses on other intangible assets (relating to mining rights in the Group's Russian Coal Mine Zone 1 and Zone 1 extensions). This is due to the fact that all other intangible assets were amortized on March 31, 2023 (2022: impairment losses were returned back to about HK$260 million); and estimated impairment losses on exploration and evaluation assets (relating to the Group's mining rights in the Group's Russian Coal Mine Zone 2) were refunded by about HK$55 million (2022: impairment losses returned to about HK$260 million); exploration and assessment assets (relating to mining rights in the Group's Russian Coal Mine Zone 2) Value losses were recovered back about 672 million Hong Kong dollars), mainly due to the increase in coal sales prices of certain types of coal, the depreciation of the Russian ruble against the US dollar, changes in the expected future inflation rate of costs and changes in the expected future growth rate of coal sales in the next few years, and the net impact of the expected first coal production year to 2025, which led to an increase in the valuation of such assets on September 30, 2023; and other intangible assets (relating to mining rights in the Group's Russian coal mine zone 1 and zone 1 extension) were not amortized. This is due to the fact that all other intangible assets were amortized on March 31, 2023 (2 years: Amortization is approximately HK$241 million).