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Dear Shareholders,
The 2025 financial year was marked by a complex and fluid global
macro environment, with volatility driven by geopolitical
conflicts, evolving global trade orders and excitement over the
rising application of artificial intelligence (“AI”). Under this
backdrop, we are only more confident in the long-term
fundamentals of the commodities sector, which is increasingly
recognized as strategically important and could benefit from the
push for green energy and AI infrastructure expansion.
Investor
sentiment remains cautious on China’s economic trajectory,
despite a decent 5.1% 25Q2 GDP growth. China’s growth capacity
remains uncertain until we see large scale stimulus to boost
domestic demand. Furthermore, there is still an extra layer of
risk for China’s exports (which accounted for 20% of GDP in
2024) given the ongoing trade frictions with the United States
(“US”) that are unresolved at time of writing. China’s producer
prices have fallen for 34 consecutive months, which contributes
to subdued consumer confidence. That said, the central
government’s call to curb industrial overcapacity may help to
improve the situation, though the impact remains to be seen.
In the US, the
Trump administration’s second term has brought renewed focus on
reshoring manufacturing, protecting strategic industries and
narrowing trade deficits. The introduction of massive
“reciprocal tariffs” against the world has led to worries on
demand and intensifying US inflation. The approach of US
nationalism has also resulted in some impactful policies in the
commodity space, for example, 50% tariff on semi-finished copper
products, aluminium and steel imports, which triggered
volatility in commodity prices.
Geopolitical tensions remain elevated. The Russia-Ukraine
conflict has remained, with the US playing an active mediating
role to drive a new phase of negotiations. The ceasefire between
Israel and Hamas continues to hold but the situation remains
fragile. The earlier military bombing of Iran seems to be
resolved for now, although we have no certainty in the situation
and wonder if the actions of Israel and the US will ultimately
lead to more furtive development by Iran. These developments
have direct implications for global supply chains, energy
pricing although it is surprising that they appear to have been
largely shrugged off by investors except in the specific days
where there is new information.
In terms of
financial performance, for the year ended 30 June 2025, the
Company recorded a net profit attributable to shareholders of
HK$243,862,000. This was primarily driven by our Resource
Investment segment, which has generated a segment profit of
HK$342,743,000.
While near-term uncertainties exist, we continue to hold an
optimistic long-term view for commodities, with multiple
structural tailwinds including global transition to green
energy, expansion of AI infrastructure, and increasing awareness
on critical minerals. We expect these will boost demand for most
resources, including copper, tin, lithium and other metals.
These trends will also drive demand growth of clean energy
sources, such as natural gas, uranium, and renewables. Our
diversified portfolio and disciplined investment approach
position us well to navigate the uncertainties and capitalize on
emerging opportunities.
As a token of our
appreciation for your continued support, I am pleased that the
Board had recommended the payment of a final dividend of HK11
cents per share. We will continue to review our dividend policy
based on evolving market conditions and our outlook for
sustainable growth.
Once again, I want to thank you for your trust and support in
APAC Resources Limited. We will remain focused on generating
value with our prudent investments amid complex market
conditions. Your support remains crucial for us to accomplish
our vision and strategy.
Andrew Ferguson
Chief Executive Officer
26 September 2025
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