The temporarily occupied enterprise with foreign investment in the form of Zaporizhzhia Iron Ore Plant (ZZHRK) ended 2022 with a net loss of UAH 371.605 million, while in 2021 it made a net profit of UAH 5 billion 193.310 million.
According to the draft decision of the extraordinary general meeting of shareholders scheduled for September 28, 2023, it is proposed to cover the losses for 2022 at the expense of future periods’ profits.
At the meeting, the shareholders also intend to approve the reports for 2022 and appoint the audit firm KPMG Audit to provide services for the statutory audit of the financial statements of the CJSC “ZZHRK” for 2022.
As reported, an extraordinary shareholders’ meeting held on July 15, 2022, left undistributed net profit for 2021 in the amount of UAH 5 billion 193.310 million. One shareholder was registered to participate in the meeting with a total number of ordinary voting shares of 57430967, or 51.169770% of the voting shares.
The administration of ZZHRK had previously announced that it had lost control over the company’s operations in the temporarily uncontrolled territory of Ukraine. At the same time, it was explained that with the outbreak of active hostilities on the territory of Ukraine, the administration of ZZHRK, in order to comply with industrial safety, implemented a number of measures to temporarily suspend the production process on February 26, 2022, from the day the Russian troops occupied part of the territory of Zaporizhzhia region. And since June 15, 2022, the economic activity and management of production processes at ZZHRK have been impossible due to illegal actions of third parties.
The administration of ZZRK filed a corresponding application with the SBU and law enforcement agencies. It was also noted that information about individuals who cooperate with the occupiers of the aggressor country and assist them in committing illegal actions against the enterprise and its property was transferred to the SBU and other law enforcement agencies to respond to the fact of the seizure of the enterprise and collaboration in accordance with the criminal legislation of Ukraine.
ZZHRK develops the Pivdenno-Belozerskoye and Pereverzevskoye iron ore deposits and produces commercial sinter and open-hearth iron ore. The company sells its products to steelmakers in Slovakia, the Czech Republic, Austria and Poland, as well as to Zaporizhstal in Ukraine.
According to the NDU data for the first quarter of 2023, the main shareholders of the company are the Slovak company Minerfin, a.s. – 51.1698%, Zaporizhstal – 29.5193%, Czech KSK Consulting, a.s. – 19,0632%.
