Financial Performance - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[6]. - The company reported a net profit margin of 12%, reflecting improved operational efficiencies and cost management[6]. - The company's revenue for the year ended December 31, 2024, was approximately RMB 57.85 billion, an increase of about 29.18% compared to RMB 44.78 billion in the same period of 2023[22]. - Net profit for the year was approximately RMB 9.60 million, a significant decrease of about 95.26% compared to RMB 202.50 million in the same period last year[22]. - The company's gross profit margin decreased to 2.80% in 2024 from 4.05% in 2023, while the debt-to-asset ratio improved slightly to 81.89% from 82.09%[118]. - The net profit attributable to the company's owners for the year was RMB 40,197,000, recovering from a loss of RMB 56,327,000 in 2023[165]. Production and Operations - User data showed a 20% increase in active users, reaching 5 million by the end of the fiscal year[6]. - The company produced approximately 18,100 tons of copper, a year-on-year increase of about 17.53%[24]. - Refined copper production reached approximately 703,600 tons, an increase of about 12.54% year-on-year[24]. - The production of precious metals was approximately 692.37 tons, representing a year-on-year increase of about 14.40%[24]. - The company achieved a significant increase in iron concentrate production, reaching approximately 187,300 tons, up about 68.13% year-on-year[24]. - The company plans to produce 710,000 tons of refined copper and 660,000 tons of crude copper in 2025, with a projected copper output of 19,500 tons from mines[147]. Strategic Initiatives - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to $1.32 billion[6]. - New product launches included two innovative mining technologies expected to enhance operational efficiency by 25%[6]. - A strategic acquisition of a local mining firm was completed, valued at $200 million, aimed at enhancing resource access[6]. - The company plans to implement a new sustainability strategy, aiming for a 40% reduction in carbon emissions by 2025[6]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[6]. Research and Development - Research and development expenses increased by 18%, totaling $50 million, to support new technology initiatives[6]. - The company has made significant advancements in green and low-carbon smelting technologies, achieving a 12% reduction in coal consumption and a 15% increase in converter operation efficiency[27]. - The company is focusing on the development of unmanned transportation systems and key technologies for safe and efficient mining[68]. Environmental and Safety Measures - The company completed 34 environmental rectification measures ahead of schedule, achieving industry-leading emission standards[25]. - The company aims to achieve zero environmental incidents and zero environmental penalties in 2024, with all pollutants meeting discharge standards[132]. - The company has maintained a stable environmental situation with no major incidents reported throughout the year[121]. - The company achieved zero general production safety responsibility accidents and a steady decrease in the injury rate per thousand employees, maintaining overall stability in safety production[126]. Financial Management and Investments - The total debt of the group as of December 31, 2024, was approximately RMB 16,253,366,000, up from RMB 15,546,930,000 in 2023[93]. - The company secured a RMB 455 million loan for equipment upgrades, benefiting from low-interest rates and subsidies, to enhance energy efficiency and reduce operational costs[28]. - The company plans to enhance cash flow management by controlling inventory and setting clear financial targets for operational cash flow[154]. Risk Management - The company has established a compliance risk management system, appointing chief compliance officers for all major investment enterprises[133]. - The company identified and assessed major operational risks for 2024, implementing targeted risk management measures and quarterly reviews to enhance risk control effectiveness[130]. - The company has implemented a foreign exchange risk management plan for 2024, achieving positive exchange rate gains throughout the year[133]. Market and Competition - The company has noted an increase in market competition, particularly among domestic copper smelting plants, which is squeezing profit margins further[141]. - The company is actively managing foreign exchange risks, with measures in place to mitigate potential losses from currency fluctuations[143]. Employee Management - The company has a workforce distribution of 4,499 males and 711 females, with a total of 5,210 employees as of the end of 2024[158]. - The company's voluntary turnover rate was 0.19% overall, with male employees at 0.17% and female employees at 0.02%[162]. - The average training hours per employee were 43, with 4,503 male and 707 female employees receiving training[160]. Future Outlook - The company anticipates significant price volatility in commodities like copper and gold due to geopolitical risks and policy changes in 2025[149]. - The company aims to achieve a copper metal recovery rate of 98.35%, gold recovery rate of 95.62%, and silver recovery rate of 94%[147]. - The company plans to maintain a 100±5% achievement rate for quarterly import mineral delivery plans, enhancing the stability of raw material supply[153].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：00661） | | | 二零二四年 | 二零二三年 | | --- | --- | --- | --- | | | 附註 | 人民幣千元 | 人民幣千元 | | 收入 | 3 | 57,852,731 | 44,784,723 | | 銷售成本 | | (56,232,599) | (42,970,448) | | 毛利 | | 1,620,132 | 1,814,275 | | 其他收入 | 5 | 62,796 | 45,983 | | 銷售開支 | | (26,784) | (21,892) | | 行政開支 | | (861,878) | (741,077) | | 其他經營開支 | | (132,332) | (294,794) | | 預期信貸損失模式下已確認 | | | | | 減值虧損淨額 | 6 | (1,725) | (14,178) | ...

（於百慕達註冊成立之有限公司） 股份代號 : 00661 2024 中期報告 礦產資源 湖北礦山 大冶市 湖北礦山 陽新縣 新疆礦山 烏恰縣 2 4 1 3 1 銅綠山礦 2 銅山口礦 3 豐山礦 4 薩熱克銅礦 目 錄 | --- | --- | |--------------------------------|-------| | | | | 公司资料 . | | | 管理層討論及分析 . | | | 企業管治及其他資料 | | | 簡明綜合財務報表審閱報告 ... . | | | 簡明綜合損益及其他全面收益表 . | | | 簡明綜合財務狀況表 | | | 簡明綜合權益變動表 | | | 簡明綜合現金流量表 | | | 簡明綜合財務報表附註 . | | | | | 釋義 公司資料 | --- | --- | |-----------------------------------------------------|---------------------------------------------| | | | | 董事會 | 主要往來銀行 | | 執行董事： | 渣打銀行（香港）有限公司 | ...

Financial Performance - Revenue for the six months ended June 30, 2024, increased by 55.07% to RMB 32,825.2 million compared to RMB 21,168.1 million for the same period in 2023[1] - Gross profit decreased by 1.11% to RMB 821.6 million from RMB 830.8 million year-on-year[2] - Profit for the period attributable to owners of the company rose to RMB 77.4 million, up from RMB 17.4 million in the previous year[3] - Basic earnings per share increased to RMB 0.43 from RMB 0.10 year-on-year[3] - The group reported a net profit of RMB 96,557 for the period, down from RMB 122,134 in the previous year[20] - The group recognized a loss of RMB 12,430 from the sale of property, plant, and equipment during the period, compared to a gain of RMB 3,619 in the prior year[16] - The group’s income tax expense for the period was RMB 88,576, compared to RMB 54,326 in the same period of 2023, representing an increase of about 63%[19] - The group’s impairment losses on trade receivables were RMB 899, compared to a reversal of RMB 1,474 in the previous year[15] - The group’s total revenue from services was RMB 18,226, slightly up from RMB 17,108 in the previous year, indicating a growth of about 6.5%[11] Revenue Breakdown - Revenue from the sale of copper products reached RMB 27,736,350, up from RMB 18,534,989 in the previous year, indicating a growth of about 49%[12] - Revenue from external customers in mainland China was RMB 32,275,614, compared to RMB 20,469,998 in the prior year, reflecting an increase of approximately 58%[13] - The group's revenue for the six months ended June 30, 2024, was RMB 32,825,163, an increase from RMB 21,168,130 in the same period of 2023, representing a growth of approximately 55%[11] Assets and Liabilities - Total assets less current liabilities amounted to RMB 13,303.2 million as of June 30, 2024, compared to RMB 13,386.4 million as of December 31, 2023[4] - Non-current assets totaled RMB 8,970.5 million, a decrease from RMB 9,244.8 million at the end of the previous year[4] - Current assets were reported at RMB 10,658.9 million, down from RMB 10,996.9 million[4] - The company had cash, deposits, and bank balances of approximately RMB 709.9 million as of June 30, 2024[7] - The company reported a net current asset value of RMB 2,644.3 million, an increase from RMB 2,389.4 million[4] - As of June 30, 2024, the group's total debt was approximately RMB 16,341,448,000, compared to RMB 15,546,930,000 in the previous year[50] - The company’s total liabilities for trade payables were RMB 4,361,686,000 as of June 30, 2024, compared to RMB 3,568,124,000 as of December 31, 2023[28] - The asset-liability ratio increased to 504.91% as of June 30, 2024, from 482.47% at the end of the previous year, primarily due to the growth in interest-bearing liabilities[49] Operational Efficiency - The company has sufficient working capital to support its normal operations for the next twelve months[7] - The cash cost per ton of ore decreased for most mining departments compared to budget and previous year, indicating improved cost efficiency[31] - The company aims to enhance copper recovery rates and optimize production processes, targeting a significant increase in efficiency through the "six efficiency improvements" initiative[39] - The smelting processing department is prioritizing efficiency while the mining department focuses on maximizing production during high copper price periods[38] - The company is advancing the construction of intelligent mines and smart factory upgrades to enhance operational efficiency and reduce labor costs[47] Environmental and Safety Compliance - All 34 environmental rectification measures have been completed, with 31 measures passing acceptance review[32] - The company has achieved a stable safety production situation, with 17 major accident hazards identified and addressed[32] - The smelting plant's environmental upgrade project achieved production standards by March 2024, with a sulfuric acid conversion rate exceeding 99.85% and ultra-low emissions of SO2, nitrogen oxides, and particulate matter[47] - The company aims for "zero accidents, zero pollution, and zero penalties" as part of its safety and environmental goals[36] - The company is committed to enhancing environmental governance capabilities and has completed a comprehensive environmental inspection rectification[37] Strategic Initiatives - The company plans to enhance operational quality through market-oriented benchmarks and comprehensive reforms, aiming to contribute positively to becoming a world-class mining enterprise[29] - The company has established an innovation research center to enhance research capabilities and has released the "2024-2027 Technology Innovation Promotion Plan"[33] - Significant progress in digital mining and smart factory construction, with core data coverage achieved through ERP system implementation[33] - The company is focusing on optimizing its organizational structure and implementing a flat management approach to enhance operational efficiency[40] - The company is actively pursuing external market opportunities and optimizing production organization to increase copper product output from loss-making enterprises[40] Financial Management - The company is implementing a comprehensive cost management system to monitor and control budget execution, aiming to identify potential financial risks[42] - The company is focusing on the development of a performance management system to enhance employee productivity and align compensation with profit indicators[40] - Employee costs for the six months ended June 30, 2024, totaled approximately RMB 456,922,000, an increase from RMB 395,366,000 in the same period last year[51] Dividends and Shareholder Information - The company did not declare any dividends for the interim period, nor does it plan to declare any post-reporting period[23] - The board decided not to declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[56] - The interim report for the six months ending June 30, 2024, will be sent to shareholders and published on the company's website and the Hong Kong Stock Exchange website[64]

Financial Performance - The group's sales and service costs for the year ended December 31, 2023, amounted to RMB 42,970,448,000, representing an increase of approximately 32.25% compared to RMB 32,492,731,000 in 2022, primarily due to the official production of Yangxin Hongsheng and a significant increase in product sales[8]. - The basic loss per share for the year ended December 31, 2023, was RMB 0.31, compared to a profit of RMB 0.62 per share in 2022[10]. - The company's revenue from exploration, development, and production activities for 2023 was approximately RMB 1,443,401,000, compared to RMB 1,233,130,000 in 2022, reflecting a year-over-year increase of around 17.0%[51]. - The gross profit margin increased to 4.05% in 2023 from 3.46% in 2022, indicating improved profitability[88]. - The company's total assets as of December 31, 2023, amounted to RMB 26,112,955,000, an increase from RMB 23,223,749,000 in 2022, representing a growth of approximately 12.2%[50]. - The company's total liabilities reached RMB 21,436,037,000, up from RMB 18,950,141,000 in the previous year, indicating an increase of about 7.8%[50]. - The company's equity attributable to owners was RMB 3,043,414,000, a slight decrease from RMB 3,097,093,000 in 2022, indicating a decline of about 1.7%[50]. - The company's cash and bank balances as of December 31, 2023, amounted to approximately RMB 991.88 million, an increase from RMB 844.04 million in 2022[71]. - The current ratio improved to approximately 1.19 in 2023, up from 1.02 in 2022, indicating better short-term financial health[71]. - The debt-to-equity ratio increased to approximately 482.47% in 2023, compared to 395.17% in 2022, primarily due to increased bank borrowings for raw material procurement[71]. - The debt-to-asset ratio was reported at 82.09% in 2023, slightly up from 81.60% in 2022, reflecting a stable leverage position[88]. Operational Efficiency and Production - The company plans to enhance production efficiency and reduce production costs while maximizing benefits through optimized operational strategies in the smelting sector[28]. - The company aims to enhance its technological capabilities and innovation through increased investment and revised incentive measures for technical personnel[3]. - The company aims to enhance its production efficiency and optimize resource recovery, focusing on cost management and quality improvement[35]. - The company plans to accelerate the construction of key projects, including the comprehensive transportation corridor project with a target completion by June 2023[37]. - The company has successfully completed the construction and commissioning of a 400,000-ton high-purity cathode copper clean production project, marking a significant milestone[74]. - Future strategies will focus on the development of non-ferrous metal resources, intelligent construction of mines, and technological innovation to enhance operational efficiency[74]. - The company aims to ensure a basic copper production of no less than 696,000 tons and refined copper production of no less than 870,000 tons for the year 2024[175]. - The company plans to invest RMB 1,800 million in the ongoing development of the copper mine project in 2024[98]. - The company will establish a new 300,000-ton intelligent copper warehouse in 2024, with an investment of RMB 550 million[103]. - The asset turnover ratio improved to 1.82 in 2023 from 1.67 in 2022, indicating more efficient use of assets[88]. Compliance and Risk Management - The company has established a compliance management committee and implemented a comprehensive compliance management system, achieving all compliance tasks for the year[5]. - The company is committed to enhancing compliance risk management to prevent contract disputes and ensure legal adherence[165]. - The company implemented a risk management framework, assessing 17 major risks in 2023 and developing corresponding response measures[120]. - The company has established a long-term risk control mechanism for currency financial derivatives to mitigate foreign exchange losses[183]. - The company is actively managing compliance risks, implementing a compliance management system with quarterly reviews and assessments[136]. - The company has not reported any significant environmental violations in 2023[111]. - The company has not experienced any major production safety incidents in 2023, adhering to safety regulations[140]. - The company has established a communication mechanism among shareholders, directors, and supervisors to enhance governance and risk management[118]. - The company revised its decision-making system, clarifying a list of 128 key decision items to enhance risk management[144]. Environmental and Safety Management - The company has committed to strengthening safety and environmental management, completing 17 rectification notices and addressing 76 issues throughout the year[4]. - The company is committed to achieving zero environmental incidents and ensuring compliance with ecological regulations[160]. - The company aims to eliminate all fatal accidents and achieve zero major injury, fire, and equipment accidents as part of its safety management goals[158]. - The company is focusing on enhancing compliance risk management to prevent contract disputes and ensure legal adherence[165]. - The company is committed to high-quality environmental protection, including the completion of rainwater and sewage diversion modifications and upgrading wastewater treatment systems[182]. - The company completed 32 out of 34 environmental remediation tasks, with the remaining two expected to be completed by March 2024[136]. - The company achieved compliance with environmental assessment requirements, with no sudden environmental incidents reported throughout the year[110]. - The company conducted 307 emergency response drills, involving 7,260 participants, to enhance its emergency response capabilities[124]. - The company maintained a safety management system with a 96% compliance rate in standardized assessments across 223 teams[124]. Strategic Investments and Future Plans - The company plans to invest RMB 9,473 million in the comprehensive transportation corridor and other tail-end projects in the smelting scale enhancement project for 2024[79]. - A total investment of RMB 4,155 million is planned for the construction of smart mining and environmental safety projects in 2024[100]. - The company invested RMB 1.2 billion in key environmental protection projects and improvements throughout the year[148]. - The company is focusing on digital transformation and smart equipment application to enhance production efficiency and safety levels[76]. - The company is actively working on improving its safety management capabilities and enhancing training for its safety management team[158]. - The company is facing increased competition for mineral resources, impacting the processing and refining costs of copper concentrate significantly[129]. - The processing and refining fee for copper concentrate has dropped to $34.5 per dry ton as of January 19, 2024, the lowest in nearly three years, significantly below the long-term guidance price of $80 per dry ton[153]. - The impact of a $1 per ton decrease in the copper concentrate processing fee is estimated to reduce profits by approximately RMB 26.5 million[156]. - Domestic smelting capacity is expected to increase by 610,000 tons in 2024, a year-on-year increase of 7%[153]. - The Panama mine announced a production halt due to force majeure, affecting an annual supply of approximately 1.6 million tons[153]. Employee Development and Governance - The average training hours per employee is 29.8 hours, reflecting the company's commitment to employee development[195]. - The voluntary turnover rate for employees aged 18 to 29 is 0.43%, indicating a relatively low turnover in this age group[197]. - The board of directors includes members with varying tenures, ensuring a mix of experience and fresh perspectives[190]. - The company has implemented a differentiated compensation system in three pilot units, achieving positive results in production and development[145]. - The company has not experienced any outstanding contracts that would require compensation for termination within one year[191].

於二零二三年及二零二二年十二月三十一日，本集團的所有非流動資產（不包括金融工具 及遞延稅項資產）按其地理位置劃分均位於中國內地。 相應年度來自下列客戶的收益佔本集團總收入10%以上： 附註： 截至二零二三年及二零二二年十二月三十一日止年度之政府補助主要為就業支援 補助及對外貿易獎勵基金，以前已將相關費用計入損益。收取該等補助不附帶任 何條件及其他或有事項。 | --- | --- | --- | |-----------------------------------------|-------------------------|-----------------------| | | 二零二三年 人民幣千元 | 二零二二年 人民幣千元 | | | | | | 以下各項之已確認╱（撥回）減值虧損淨額： | | | | 應收貿易款項 | 2,675 | (31,520) | | 貸款予合營公司及應收合營公司款項 | － | (25,533) | | 其他應收款項 | 11,503 | 743 | | | | | | | 14,178 | (56,310) | 9. 所得稅開支 12 206,034 318,8 ...

Production and Operations - In the first half of 2023, the company produced approximately 6,200.00 tons of copper, a year-on-year decrease of about 6.06%, while cathode copper production increased by approximately 29.04% to about 313,189.00 tons[7]. - The production of precious metal products decreased by approximately 41.85% to about 189.98 tons, including gold at approximately 1.88 tons and silver at approximately 180.15 tons[7]. - Chemical products production increased by approximately 83.14% to about 957,647.00 tons, including sulfuric acid at approximately 954,467.00 tons[7]. - The production of iron concentrate decreased by approximately 47.77% to about 39,640.00 tons, while molybdenum concentrate production increased by 5.49% to about 5.49 tons[7]. - The company achieved stable production at Yangxin Hongsheng within 3 months and reached stable production targets within 6 months, with major product output meeting design values[11]. - The company is focusing on key technological breakthroughs in mining and smelting processes to enhance operational efficiency and production stability[13]. - The company aims to stabilize and increase production, emphasizing that production is equivalent to profit[23]. - The company plans to enhance its mining operations through technological innovations and mechanization[27]. - The company is focusing on the construction of intelligent mining and factory systems, with plans to optimize underground mining layouts and apply intelligent mining equipment[30]. - The company aims to achieve stable production of copper by the end of the year through environmental upgrades and process optimization in its smelting systems[32]. Environmental and Sustainability Efforts - The company has completed 60% of the equipment installation for the environmental upgrade of the smelting plant, which is part of its commitment to green and low-carbon development[9]. - The company is focusing on green development and ensuring compliance with central environmental inspections[22]. - The company is committed to sustainable and environmentally friendly production practices[27]. - The company has successfully completed 24 corrective measures related to environmental inspections, receiving positive recognition for its efforts[9]. Financial Performance - The company’s revenue increased by 17.90% to approximately RMB 21,168,130,000 compared to RMB 17,954,197,000 in the same period last year, primarily due to the successful production of the 400,000-ton project and increased cathode copper output[42]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 830,813,000, a 94.67% increase from RMB 426,771,000 in the same period last year, driven by improved profitability from the 400,000-ton project and the gradual resumption of production at self-owned mines[42]. - Financial costs rose by 57.65% to approximately RMB 239,414,000, up from RMB 151,863,000, due to increased interest expenses from the growth in borrowings related to the 400,000-ton project[42]. - The company reported a net profit attributable to equity holders for the six months ended June 30, 2023, was RMB 17,362,000, a decrease of 65.7% from RMB 50,579,000 in the same period of 2022[113]. - The company reported a total of RMB 300,000,000 in structured bank deposits as of June 30, 2023, which were not present in the previous year[145]. Debt and Liabilities - The company’s total debt as of June 30, 2023, was approximately RMB 15,303,967,000, an increase from RMB 12,948,226,000 in the previous year[47]. - The current ratio improved to 1.14 as of June 30, 2023, compared to 1.02 at the end of 2022, with current assets of approximately RMB 13,463,542,000 and current liabilities of approximately RMB 11,790,333,000[46]. - The company’s total liabilities decreased from RMB 4,157,374 thousand as of June 30, 2022, to RMB 4,273,608 thousand as of June 30, 2023, indicating a reduction in financial leverage[81]. - The company’s bank borrowings increased to RMB 11,420,808,000 as of June 30, 2023, compared to RMB 9,877,062,000 as of December 31, 2022, representing an increase of approximately 15.6%[135]. Employee and Management - The company employed 5,598 staff as of June 30, 2023, with total employee costs for the six months amounting to approximately RMB 395,366,000, a decrease from RMB 408,561,000 in the same period last year[48]. - The company is committed to enhancing its management team by focusing on the development of young management personnel, particularly those born after 1985 and 1990[33]. - The company is implementing a salary incentive and market-based differential salary mechanism reform at the Tongshankou mine as part of its continuous reform efforts[15]. Strategic Initiatives - The company is advancing the construction of intelligent mining projects, with the pilot mine completing underground 5G networks and remote centralized control systems[13]. - The company plans to implement a technology reward system to enhance the efficiency of mining operations, aiming for a 100% utilization rate of tailings and improved production capacity[32]. - The company has initiated a talent recruitment plan for 2024, targeting the introduction of mid-to-senior level talents and recent graduates to support its green and high-quality development[33]. Market and Sales - Revenue from external customers in China was RMB 20,469,998,000, representing a 16.5% increase from RMB 17,627,832,000 in the prior year[103]. - Sales of cathode copper reached RMB 18,534,989,000, up 27.3% from RMB 14,574,026,000 in the previous year[102]. - Revenue from the sale of non-ferrous metals to related parties reached RMB 6,238,019,000 for the six months ended June 30, 2023, compared to RMB 2,700,649,000 in the same period of 2022, representing a significant increase[152]. Compliance and Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[64]. - The company has complied with the corporate governance code throughout the six-month period ending June 30, 2023[66]. - The independent auditor has reviewed the interim financial statements for the six months ending June 30, 2023, in accordance with the relevant auditing standards[64].

Financial Performance - For the six months ended June 30, 2023, the company's revenue increased by 18.8% to RMB 21,168.1 million compared to RMB 17,954.2 million in the same period of 2022[6] - Gross profit for the same period rose by 94.67% to RMB 830.8 million, up from RMB 426.8 million year-on-year[11] - The net profit attributable to the owners of the company decreased to RMB 17.4 million, down from RMB 50.6 million in the previous year, representing a decline of 65.6%[6] - Basic earnings per share for the period was RMB 0.10, compared to RMB 0.28 in the same period last year, reflecting a decrease of 64.3%[6] - Total revenue for the six months ended June 30, 2023, was RMB 21,168,130,000, an increase of 18.3% compared to RMB 17,954,197,000 for the same period in 2022[52] - Sales of cathode copper reached RMB 18,534,989,000, up 27.3% from RMB 14,574,026,000 in the previous year[52] Expenses and Liabilities - The company reported a significant increase in sales expenses, which rose to RMB 41.6 million from RMB 17.9 million, indicating a rise of 132.5%[12] - Administrative expenses increased to RMB 239.4 million from RMB 177.9 million, marking a rise of 34.6%[12] - Interest expenses on bank and other borrowings increased to RMB 203,978,000 from RMB 139,461,000 year-on-year[56] - The company's income tax expense for the six months ended June 30, 2023, was RMB 54,326,000, compared to RMB 24,813,000 for the same period in 2022[31] - Current liabilities totaled RMB 11,790.3 million, slightly down from RMB 11,948.2 million at the end of the previous year[13] - Non-current liabilities increased to RMB 8,031,699,000 as of June 30, 2023, from RMB 7,001,965,000 as of December 31, 2022[38] Assets and Equity - Total non-current assets amounted to RMB 10,735.0 million as of June 30, 2023, compared to RMB 10,981.7 million as of December 31, 2022[13] - The total equity as of June 30, 2023, was RMB 4,376,512,000, an increase from RMB 4,273,608,000 as of December 31, 2022[38] - As of June 30, 2023, the company's bank and other borrowings amounted to approximately RMB 8,031,226,000, an increase from RMB 6,695,567,000 as of December 31, 2022[112] - The group’s total debt amounted to approximately RMB 15,303,967,000, an increase from RMB 12,948,226,000 in the previous year[135] Production and Operations - In the first half of 2023, the company produced approximately 6,200 tons of copper, a year-on-year decrease of about 6.06%, while cathode copper production increased by approximately 29.04% to 313,189 tons[96] - The company achieved a nearly 80% increase in the production of anode plates in the copper smelting workshop during the first half of 2023[99] - The company reported a significant increase in chemical product production, with a total of approximately 957,647 tons, representing an increase of about 83.14% year-on-year[96] - The company aims to enhance operational quality through market-oriented benchmarking and comprehensive reforms[67] - The company is committed to increasing production and efficiency to drive scale benefits[69] Strategic Initiatives - The company has implemented new accounting standards effective from January 1, 2023, which may impact future financial reporting[21] - The company aims to implement "six efficiency enhancement" measures across all departments to improve core profitability, focusing on production increase, technological innovation, and cost control[78] - The company is focusing on technological innovation, aiming for a 100% utilization rate of tailings through the integration of digital technologies in mining operations[108] - The company plans to advance the construction of intelligent mining projects, optimizing underground mining operations and applying smart mining equipment[79] - The company is committed to environmental sustainability by developing comprehensive utilization plans for tailings and promoting green production practices[107] Human Resources - The total employee costs for the first half of 2023 amounted to RMB 395,366,000, a decrease from RMB 408,561,000 in the same period of 2022[86] - The group had 5,598 employees, with total employee costs for the six months ending June 30, 2023, amounting to approximately RMB 344,246,000, a decrease from RMB 364,961,000 in the same period last year[137] - The company is implementing a competitive selection process for key positions to attract and retain talented young professionals[101] - The company plans to strengthen talent development by implementing a three-year training program for new graduates and recruiting mid-to-senior level talents in 2024[129] Future Outlook - The company acknowledges the ongoing global economic uncertainties and the slow recovery of domestic production demand, indicating a cautious outlook for future growth[103] - The company expects a decline in sulfuric acid prices, which will lead to reduced profits, and has only completed 75.7% of its planned copper production for the first half of the year[74] - The board has decided not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[147] Audit and Reporting - The independent auditor has reviewed the group's condensed consolidated interim financial statements for the six months ended June 30, 2023, in accordance with the relevant auditing standards[150] - The interim report for the six months ended June 30, 2023, will be sent to shareholders and published on the company's website at an appropriate time[149]

Investment and Development Plans - The company plans fixed asset investments of RMB 1,356.48 million in 2023, focusing on key projects under the "14th Five-Year Plan," central environmental protection inspection rectification projects, and energy-saving, safety, and technological innovation initiatives[5] - The company aims to control 3 million tons of copper resources, achieve 40,000 tons of copper production from its own mines, and produce 1 million tons of cathode copper, 12 tons of gold, 850 tons of silver, and 2.45 million tons of sulfuric acid during the "14th Five-Year Plan" period[6] - The company's 400,000-ton high-purity cathode copper clean production project has been successfully completed and put into operation, marking a solid step towards its goals[118] - The company will continue to adhere to the "develop mining, consolidate smelting" strategy, aiming to enhance competitive cathode copper production capacity and upgrade existing smelting systems[118] - The company plans to optimize technical and economic indicators, reduce production costs, improve production environments, and enhance operational efficiency and profitability[118] - The company will promote the expansion and upgrading of the precious metals system and extend the precious metals industry chain to comprehensively improve smelting equipment levels and profitability[118] Environmental Protection and Rectification - The company completed 26 out of 34 central environmental protection inspection rectification measures, achieving a completion rate of 76.47% by the end of 2022[12] - Major pollutant emissions decreased significantly in 2022: sulfur dioxide by 35.14%, nitrogen oxides by 49.65%, COD by 35.24%, and ammonia nitrogen by 57.76%[12] - The company's online monitoring equipment exceeded hourly emission limits 62 times in 2022, a 94.7% decrease compared to 1,112 times in 2021[12] - The company received 1 environmental administrative penalty in 2022, an 87.5% decrease compared to 8 penalties in 2021[12] - The company completed the rectification of 9 out of 16 public complaints related to environmental issues, with the remaining 7 complaints under active rectification[13] - Completed 26 out of 34 environmental rectification measures, with 18 out of 24 severe environmental pollution cases resolved[17] - Completed 7 out of 8 rectification measures for the Fengshan Copper Mine tailings pond, with 260,000m³ of filling and 1,300,000m of board insertion completed[19] - Completed 4 out of 5 rectification measures for the Chimashan Copper Mine tailings pond, with 30,144.4m² of land leveling and 76,537.4m³ of volume completed[20] - Completed 7 out of 11 rectification measures for the smelter, with environmental impact assessment and planning permits obtained[21][22][23] Financial Performance and Ratios - The company's gross margin decreased to 3.46% in 2022 from 3.56% in 2021, while the debt-to-asset ratio increased to 81.60% from 75.74%[10] - The company's current ratio decreased to 1.02 in 2022 from 1.09 in 2021, while the asset turnover ratio dropped to 1.67 from 2.23[10] - The company's debt ratio is higher than the industry average, with inventory occupying a high scale due to the 400,000-ton project procurement[31] - The company has retained earnings of RMB 1,392,207,000 available for distribution to shareholders as of December 31, 2022[67] Risk Management and Mitigation - The company has no contingent liabilities as of December 31, 2022[35] - The company has strengthened credit risk management and strictly conducted contract legal reviews to mitigate market risks[36] - The company has implemented measures to control cash flow risks, including inventory quota control and optimizing supply chain services[33] - The company faces operational risks due to the gap in main processes and equipment compared to industry advanced levels[30] - The company has initiated measures to address macroeconomic risks, including adding restrictions on US mineral shipments in contracts[28] - The company has identified risks related to the use of non-flame-retardant cables in four subsidiaries, posing potential fire hazards, and water leakage risks at the Tonglushan Mine[39] Employee and Talent Management - The company has 780 employees aged 18-29, 773 aged 30-39, 3,152 aged 40-49, and 729 aged 50 or above[47] - The company has implemented a talent development strategy, including innovative incentive mechanisms and career development channels for core talents[48] - The company has a high internal promotion rate, reflecting its commitment to employee career development, supported by robust management development and succession planning programs[61] Client and Market Dependency - The company's major clients are large enterprises, with most having established long-term cooperation, and the risk of dependency on major clients is minimal due to a large number of substitutes in the domestic cathode copper market[59] COVID-19 Impact and Liquidity - The company has implemented strict COVID-19 prevention measures, with minimal impact on operations, and sufficient liquidity to ensure smooth operations[60] Compliance and Legal Management - The company has strengthened its compliance management system, focusing on extending compliance requirements to all levels and fostering a compliance culture[58] Infrastructure and Project Progress - The company has completed the preliminary design of the smelter's rainwater and sewage diversion and drainage upgrade EPC project in June 2022, with all construction drawings completed by October 2022[57] - The company has increased inventory of raw materials and requested additional transit ports to avoid prolonged customs clearance times, which could increase procurement costs[43] Framework Agreements and Transactions - The total transaction amount generated under the China Nonferrous Mining Financial Services Framework Agreement for the year ended December 31, 2022, was RMB 818,463,000 for deposit services and RMB 1,896,046,000 for financial services provided by China Nonferrous Mining Group[93] - The total transaction amount generated under the Parent Group Sales Framework Agreement for the year ended December 31, 2022, was RMB 6,395,155,000[115] - The total transaction amount generated under the Hubei Gold Procurement Framework Agreement for the year ended December 31, 2022, was RMB 37,116,000[112] - The annual cap for 2022 under the Parent Group Sales Framework Agreement was RMB 14,383,651,000[79] - The annual cap for 2022 under the Hubei Gold Procurement Framework Agreement was RMB 91,893,000[110] - The annual cap for 2022 under the China Nonferrous Mining Financial Services Framework Agreement was RMB 10,802,160,000[93] - Total transaction amount generated under the Zhongse Aobo sales framework agreement for the year ended December 31, 2022, was RMB 0[128] - The annual cap for 2021 was RMB 77,755,000[131] - The annual cap for 2021 was RMB 2,567,932,000[132] - The annual cap for 2020 was RMB 4,629,255,000[140] - The annual cap for 2022 was RMB 4,140,206,000[141] - Total transaction amount generated under the comprehensive supporting services framework agreement for the year ended December 31, 2022, was RMB 330,909,000[149] - Total transaction amount generated under the land lease framework agreement for the year ended December 31, 2022, was RMB 849,000[154] - Total transaction amount generated under the China Nonferrous Mining Group procurement and production services framework agreement for the year ended December 31, 2022, was RMB 3,617,153,000[164] - The annual cap for 2020 was RMB 379,020,000[170] - The annual cap for 2022 was RMB 30,000,000[186] - The company will bear all taxes and levies related to the lease, determined based on the payable rent[195] - The company holds four mines and a smelter in Hubei Province, with no comparable land nearby[196] - The annual cap for 2021 is set at RMB 1,100,000[197] - The land lease framework agreement is in effect from January 1, 2020, to December 31, 2022[199]

Financial Performance - The total revenue for the year ended December 31, 2022, was approximately RMB 33,658,516,000, a decrease of about 5.66% compared to RMB 35,677,656,000 in the same period of 2021[1][2] - Gross profit decreased by approximately 8.25% to about RMB 1,165,785,000 from RMB 1,270,548,000 in the previous year[1][2] - The company reported a loss of RMB 6,416,000 for the year, a significant decline from a profit of RMB 336,576,000 in 2021[2] - Basic and diluted earnings per share were RMB 0.62, down from RMB 1.60 in the previous year[2] - The total financial costs amounted to RMB 327,134,000, compared to RMB 314,366,000 in the previous year[2][20] - The company reported a significant impairment loss on trade receivables and other receivables, with net amounts of RMB (31,520) and RMB (56,310) respectively for the year[46] - The company reported a loss of RMB 24,561,000 from the write-off of subsidiaries in 2022, with no such losses reported in 2021[47] - The net loss recorded in other gains and losses for the year ended December 31, 2022, was approximately RMB 66,530,000, an increase of about 70.74% from a net loss of RMB 38,965,000 in 2021, primarily due to losses from bankrupt and liquidated subsidiaries[197] Assets and Liabilities - Non-current assets increased to RMB 9,131,706,000 from RMB 7,401,211,000, indicating a growth of approximately 23.36%[3][17] - The company's bank and other borrowings amounted to approximately RMB 6,695,567,000 as of December 31, 2022, compared to RMB 2,999,443,000 in 2021, indicating a significant increase in debt[43] - The total accounts payable increased to RMB 3,590,256,000 in 2022 from RMB 1,812,904,000 in 2021, showing a significant rise of approximately 98%[54] - The company’s non-current liabilities totaled RMB 7,001,965 million in 2022, compared to RMB 5,939,196 million in 2021, an increase of approximately 17.9%[121] - As of December 31, 2022, the total debt of the group amounted to approximately RMB 12,948,226,000, compared to RMB 9,247,453,000 in 2021, representing an increase of 40.5%[200] Operational Strategy - The company plans to continue its focus on market expansion and new product development in the upcoming fiscal year[1] - The company aims to enhance its management system and compliance risk control, focusing on continuous improvement and effective financial management[34] - The company emphasizes the importance of talent as a core element for driving development and market competitiveness, with plans to strengthen talent acquisition and training mechanisms[33] - The company is committed to accelerating green and high-quality development, establishing a solid foundation for future growth during the "14th Five-Year Plan" period[32] - The company plans to implement various mid- to long-term incentive mechanisms to motivate and retain talent, ensuring a focus on performance and results[33] - The company has identified the need for a strategic shift in response to environmental inspections and challenges, promoting a transformation towards sustainable development[32] - The company plans to enhance its digital mining and smart factory construction as part of its strategy for high-quality green development[62] - The company is focused on enhancing its green and intelligent factory standards, aiming for cost, efficiency, and environmental improvements[191] - The company plans to strengthen resource acquisition through both internal exploration and external partnerships, particularly in the Huangshi region[192] - The company is committed to advancing technological breakthroughs in key projects, including the production of high-grade copper and improving recovery rates[193] - The company has established a carbon peak action plan, focusing on energy consumption reduction and pollution control[190] - The company has implemented a compliance management initiative, enhancing risk prevention and management across all levels[181] Research and Development - Research and development costs increased to RMB 20,584,000 in 2022 from RMB 16,873,000 in 2021, reflecting a growth of approximately 22%[49] - Research and development costs included employee costs of approximately RMB 4,903,000, up from RMB 3,589,000 in 2021, indicating an increase in investment in innovation[115] Revenue from Operations - The company has made acquisitions, with Company A generating revenue of RMB 5,628,543,000 in 2022, up from RMB 4,974,800,000 in 2021[45] - Revenue from the sale of properties, plants, and equipment was RMB 3,525,000 in 2022, compared to a loss of RMB 4,666,000 in 2021[47] - The group produced approximately 10,700 tons of mined copper in 2022, a decrease of about 51.14% year-on-year[148] - The group recorded revenue of approximately RMB 33,658,516,000 for the year ended December 31, 2022, a decrease of about 5.66% compared to RMB 35,677,656,000 in 2021[161] - The group’s sales and service costs for the year ended December 31, 2022, were approximately RMB 32,492,731,000, a decrease of about 5.56% compared to RMB 34,407,108,000 in 2021, primarily due to a decline in raw material procurement prices and a slight decrease in product sales volume[195] Employee Costs - The total employee costs rose to RMB 905,425,000 in 2022, up from RMB 779,220,000 in 2021, indicating an increase of about 16%[49] - Employee benefits expenses capitalized as inventory were approximately RMB 586,542 million for the year, compared to RMB 598,700 million in 2021[142] Other Income and Expenses - Other income increased to RMB 71,320,000 from RMB 66,472,000, reflecting a growth of approximately 12.77%[2][19] - Other operating expenses increased by approximately 2,072.91% to RMB 382,650,000, primarily due to losses during the shutdown of self-owned mines[163] - The average credit period for purchasing goods ranged from 60 to 180 days, with financial risk management policies in place to ensure all payables are settled within credit terms[178] Corporate Governance - The board does not recommend the payment of a final dividend for the year ended December 31, 2022[70] - The board of directors held only two regular meetings during the year to review and discuss annual and interim performance, which is below the recommended frequency[84] - There were no significant events after the reporting period that would impact the financial statements[78]