Financial Performance - The group's revenue for the first half of 2024 was approximately RMB 289.4 million, compared to RMB 281.4 million in the first half of 2023, representing a year-on-year increase of 2.9%[1] - The group recorded a net loss of approximately RMB 0.2 million for the first half of 2024, a significant decline from a net profit of RMB 6.1 million in the same period of 2023[1] - Basic and diluted loss per share attributable to ordinary shareholders was approximately RMB 0.01, compared to earnings of RMB 0.27 per share in the first half of 2023[1] - Total comprehensive loss for the period was RMB 174,000, compared to a comprehensive income of RMB 5.97 million in the first half of 2023[2] - The gross profit margin decreased to 3.4% in the first half of 2024 from 5.7% in the first half of 2023, indicating a decline in profitability[2] - The pre-tax profit for the six months ended June 30, 2024, was RMB 179 thousand, a decrease from RMB 7,529 thousand for the same period in 2023[12] - The company reported a loss attributable to ordinary shareholders of RMB 172,000 for the six months ended June 30, 2024, compared to a profit of RMB 6,116,000 for the same period in 2023[22] - The gross profit decreased to approximately RMB 9.8 million, down 39.0% from RMB 16.0 million in the first half of 2023, resulting in a gross margin of 3.4% compared to 5.7% in the previous year[44] - Other income fell to approximately RMB 6.0 million, a decrease of 30.1% from RMB 8.6 million in the first half of 2023, primarily due to weak downstream demand[45] Revenue Breakdown - The revenue breakdown shows that high-grade iron ore sales contributed RMB 50,751 thousand (18.0% of total revenue), steel trade contributed RMB 228,770 thousand (79.0%), and facility management services contributed RMB 9,836 thousand (3.0%) for the six months ended June 30, 2024[14] - For the six months ended June 30, 2024, total customer contract revenue was RMB 289,892,000, an increase from RMB 281,425,000 for the same period in 2023, representing a growth of approximately 3.3%[17] - The external customer contract revenue for the high-grade iron ore business was RMB 50,751,000, while trade revenue was RMB 228,770,000, and facility management revenue was RMB 10,371,000[17] Assets and Liabilities - The group's non-current assets totaled RMB 1,065.6 million as of June 30, 2024, slightly up from RMB 1,062.5 million at the end of 2023[4] - Current assets decreased to RMB 232.7 million as of June 30, 2024, down from RMB 244.9 million at the end of 2023[4] - Current liabilities decreased to RMB 228.3 million as of June 30, 2024, compared to RMB 241.6 million at the end of 2023[4] - Total assets as of June 30, 2024, amounted to RMB 1,298,310 thousand, compared to RMB 1,286,329 thousand as of June 30, 2023[12] - Total liabilities as of June 30, 2024, were RMB 358,182 thousand, an increase from RMB 349,152 thousand as of June 30, 2023[12] Cash Flow and Expenditures - Cash flow from operating activities for the first half of 2024 was RMB 22.3 million, down from RMB 60.3 million in the first half of 2023[55] - The net cash flow from operating activities for the first half of 2024 is approximately RMB 22.3 million, a decrease from RMB 60.3 million in the first half of 2023[56] - The net cash flow used in investing activities for the first half of 2024 is approximately RMB 22.9 million, down from RMB 55.3 million in the first half of 2023, primarily due to capital expenditures of RMB 20.3 million for upgrading and expanding high-grade iron ore operations[57] - The company reported a total capital expenditure of RMB 8,670 thousand for the six months ended June 30, 2024, compared to RMB 94,778 thousand for the same period in 2023[12] Market Conditions and Industry Outlook - In the first half of 2024, China's GDP grew by 5.0% year-on-year, aligning with the government's annual target, despite a contraction in the real estate sector[37] - The average selling price of high-grade iron concentrate increased by approximately 16.0%, while production and sales volumes decreased by about 15.4% and 16.4%, respectively, compared to the first half of 2023[39] - The iron ore price index showed a total decline of 23.2% in the first half of 2024, attributed to weak demand from the real estate sector[37] - The high-grade iron ore business outlook remains pessimistic due to overcapacity and reduced demand, leading to lower selling prices and increased production costs[77] Operational Challenges - Operations at the Maoling-Yanglongshan iron mine have been suspended following a safety incident, impacting the company's financial performance until operations can safely resume[76] - The company is facing significant business risks including macroeconomic volatility and regulatory changes that could impact operations and financial performance[41] - The company is actively seeking to streamline production processes and cost structures in response to the ongoing overcapacity issues in the industry[77] Corporate Governance and Compliance - The board is in the process of identifying a new independent non-executive director to comply with corporate governance codes, as several current directors have served for over nine years[79] - The audit committee has reviewed the interim financial results for the six months ending June 30, 2024, and confirmed compliance with applicable accounting standards[81] - The document emphasizes the importance of accurate financial reporting and compliance with regulatory standards[88] - The company is committed to transparency in its financial disclosures[88] Future Projections and Strategies - The company projects a revenue growth of 10% for the second half of 2024, with expected revenue reaching RMB 760 million[85] - New product development includes the launch of a high-grade iron concentrate product with TFe content between 65% to 72%, expected to increase market share by 5%[86] - The company is planning to expand its market presence in Sichuan province, targeting a 30% increase in production capacity by the end of 2024[87] - A strategic acquisition of a mining company is anticipated to be finalized by Q4 2024, which is expected to add RMB 150 million in annual revenue[84] Employee and Operational Metrics - The company reported a total of 323 employees as of June 30, 2024, a decrease from 330 employees on June 30, 2023[78] - Employee benefits expenditure for the first half of 2024 was approximately RMB 14.4 million, down from RMB 17.4 million in the same period of 2023[78]

Mining Operations - The company operates one ordinary iron ore mine (Maoling-Yanglongshan Mine) and one gypsum mine (Shigou Gypsum Mine), both located in Sichuan Province, China[18]. - The mining license for the Maoling-Yanglongshan Mine was issued on May 6, 2023, and for the Shigou Gypsum Mine on November 12, 2013[4]. - The total mineral resource of the Maoling-Yanglongshan Mine is estimated at 90.63 million tons with an average grade of 24.30% TFe, containing approximately 22,026 kilotons of metal[162]. - The resources within the Maoling-Yanglongshan Mine have nearly doubled from 54.56 million tons at an average grade of 22.83% TFe as of December 31, 2022, to 90.63 million tons at an average grade of 24.3% TFe as of December 31, 2023[169][171]. - The area of the mining license increased from 1.9 square kilometers pre-integration to 2.7366 square kilometers post-integration[168]. - The depth of the mining area varies from 2,305 to 2,155 meters pre-integration and from 2,981 to 1,860 meters post-integration[168]. - Operations at the Maoling-Yanglongshan Mine were temporarily suspended due to mudslides and flash floods from June 27, 2023, but progressively resumed by the end of July 2023[182]. - The high-grade iron ore operations were fully suspended from June 27, 2023, due to severe disruptions caused by landslides in Sichuan Province, affecting telecommunications, water, electricity, and supply of materials[185]. - Operations at the Mao Ling - Yang Long Mountain iron ore mine are expected to gradually resume by the end of July 2023 after maintenance work is completed[185]. - The company has announced that the affected areas will see a significant recovery in operations following the completion of repair works[185]. Financial Performance - Revenue for the year 2023 was RMB 784,951,000, an increase from RMB 725,869,000 in 2022, representing a growth of approximately 8.5%[24]. - Gross profit for 2023 was RMB 36,534,000, up from RMB 25,278,000 in 2022, indicating a growth of approximately 44.5%[25]. - Profit attributable to owners of the company for 2023 was RMB 9,697,000, a significant increase from a profit of RMB 1,304,000 in 2022[26]. - Equity attributable to owners of the company as of December 31, 2023, was RMB 646,288,000, slightly up from RMB 636,575,000 in 2022[27]. - The Group's revenue for FY2023 was approximately RMB 784.95 million, representing an increase of 8.1% compared to RMB 725.87 million in FY2022[69]. - Gross profit for FY2023 increased to approximately RMB 36.53 million, a 44.5% rise from approximately RMB 25.28 million in FY2022[69]. - Profit for the year surged to approximately RMB 9.08 million in FY2023, a significant increase of 774.8% from RMB 1.04 million in FY2022[69]. - Profit before tax for FY2023 was approximately RMB 14.11 million, a 155.7% increase from RMB 5.52 million in FY2022[69]. - Net profit for FY2023 was approximately RMB 9.7 million, significantly up from RMB 1.3 million in FY2022[88][94]. Operational Challenges - The company faced challenges due to geopolitical tensions, trade conflicts, and inflation, impacting economic stability[31]. - The company is adopting a more progressive and less aggressive expansion strategy in response to economic uncertainties[42]. - In 2023, the global economic growth is expected to decline for the third consecutive year, from 2.6% in 2023 to 2.4% in 2024, significantly below the average of the 2010s[49]. - China's GDP growth in 2023 was 5.2%, surpassing the government's target of 5%, despite challenges such as a stagnant real estate sector[49]. - The Chinese steel industry faced a moderate recovery in 2023, with crude steel production stabilizing at 1.019 billion tonnes, unchanged from the previous year[51]. - Steel consumption in China is projected to decrease by 3.3% year-on-year to approximately 890 million tonnes in 2024[51]. - The Iron Ore Price Index showed a V-shaped trend, dropping to a low of 821.9 in May 2023 and rising to 1,110.3 by December 2023[51]. - The Chinese Purchasing Managers' Index (PMI) remained above 50 throughout 2023, indicating recovery, but declined from 57.0 in April to 50.3 in December[51]. Strategic Initiatives - The company aims to explore exceptional potential in mining and reward shareholders while caring for the community[6][7]. - The group is engaged in mining, ore processing, sale of self-produced products, trading of steels, and management of strategic investments[18]. - The company emphasizes integrity, exploration of opportunities, and commitment to responsibility as core values[6]. - The group manages facilities and strategic investments, enhancing its operational capabilities in the mining sector[18]. - The company is focusing on facilities management as a key growth area, expanding service scopes and forming strategic partnerships[37]. - The facility management segment contributed to the Group's revenue diversification, leading to improved overall profitability[54]. - The facility management segment recorded revenue of approximately RMB 19.5 million for FY2023, up from approximately RMB 8.0 million in FY2022, due to expanded service scope[55][59]. Resource Management - The company has completed resource integration and expanded production capacity for high-grade iron concentrates despite operational disruptions[36]. - The Group's intangible assets increased to approximately RMB 822.1 million as of December 31, 2023, up from RMB 734.4 million in FY2022, mainly due to costs associated with the resource integration process[105]. - The Group's management continues to monitor the financial status of its subsidiaries and joint ventures, particularly regarding the pledged inventory value[138]. - The Group has adopted a cut-off grade of 15% TFe with a minimum width of 2 meters for resource estimation, considering market dynamics[172]. - The use of 3-dimensional resource modeling software employing the Inverse Distance Weighted method has been adopted for resource estimation[172]. Employee and Administrative Matters - Employee benefit expenses for FY2023 were approximately RMB 34.5 million, an increase from RMB 22.0 million in FY2022, reflecting a growth in the workforce from 215 to 317 full-time employees[176][179]. - Administrative expenses remained stable at approximately RMB 21.8 million in FY2023, compared to RMB 21.6 million in FY2022[56][59]. - The Group's remuneration policies are based on performance and market comparability, with a share option scheme implemented to incentivize employees[177][179]. Legal and Financial Guarantees - A litigation has been initiated by China Construction Bank against Huili Caitong for principal indebtedness of RMB 276.9 million, which is currently being verified[127]. - The Company has engaged legal advisors and conducted internal assessments regarding the adequacy of the Master Guarantee Agreement in light of increased credit risks[130]. - As of December 31, 2023, there were no contingent liabilities or financial guarantees recorded related to the CVT Guarantees[133]. - The Company provided guarantees totaling RMB 690.0 million as of December 31, 2023, for loan facilities, with an outstanding principal amount of approximately RMB 506.6 million[123]. - The Company has provided CVT Guarantees with a maximum aggregate guaranteed amount of RMB 730.0 million, with the amount guaranteed as of December 31, 2023, being RMB 690.0 million[125]. - Huili Caitong and Xiushuihe Mining are obligated to pay an annual guarantee fee calculated at 1.25% of the maximum guaranteed amount[127].

Financial Performance - The group's revenue for the fiscal year 2023 was approximately RMB 785.0 million, representing an increase of 8.1% from RMB 725.9 million in the fiscal year 2022[2]. - The net profit for the fiscal year 2023 was approximately RMB 9.7 million, a significant increase from RMB 1.3 million in the fiscal year 2022, marking a growth of 646.2%[2]. - Basic and diluted earnings per share attributable to ordinary shareholders for the fiscal year 2023 was approximately RMB 0.43, compared to RMB 0.06 in the fiscal year 2022[4]. - The gross profit for the fiscal year 2023 was RMB 36.5 million, up from RMB 25.3 million in the fiscal year 2022, indicating a gross margin improvement[3]. - Total comprehensive income for the year attributable to the company's owners was RMB 9.7 million, compared to RMB 1.3 million in the previous year, reflecting a substantial increase[4]. - The company reported a pre-tax profit of RMB 14,112,000 for the year, compared to RMB 5,518,000 in 2022, reflecting a growth of 155.5%[38]. - The overall gross profit for the group in fiscal year 2023 was approximately RMB 365 million, an increase from RMB 253 million in fiscal year 2022[108]. - Net profit for the fiscal year 2023 was approximately RMB 9.7 million, a substantial increase of 643.6% from RMB 1.3 million in 2022[124]. Assets and Liabilities - Non-current assets increased to RMB 1,062.5 million in 2023 from RMB 961.5 million in 2022, showing a growth of 10.5%[6]. - Current assets totaled RMB 244.9 million in 2023, slightly up from RMB 237.1 million in 2022, indicating a growth of 3.7%[6]. - The total liabilities increased to RMB 367.0 million in 2023 from RMB 267.4 million in 2022, reflecting a rise of 37.1%[7]. - Total assets as of December 31, 2023, were RMB 1,307,334,000, an increase from RMB 1,198,590,000 in 2022[40]. - Total liabilities decreased to RMB 367,032,000 from RMB 267,384,000, indicating a reduction in financial leverage[36]. - Deferred tax assets decreased from RMB 9,350 million in 2022 to RMB 7,219 million in 2023, reflecting a reduction of approximately 22.8%[80]. - Accounts receivable decreased significantly from RMB 207,253 million in 2022 to RMB 100,290 million in 2023, a decline of about 51.6%[83]. - Inventory increased from RMB 13,626 million in 2022 to RMB 18,695 million in 2023, representing an increase of approximately 37.0%[82]. Revenue Segments - The group is divided into four reportable segments based on business units, including high-grade iron ore, trading, facilities management, and corporate and others[32]. - Sales from high-grade iron ore business amounted to RMB 115,280,000, up 56.8% from RMB 73,494,000 in the previous year[42]. - Steel trading revenue was RMB 650,175,000, slightly increasing by 0.1% compared to RMB 644,326,000 in 2022[42]. - Facility management services generated revenue of RMB 19,496,000, a significant increase from RMB 8,049,000, marking a growth of 142.5%[42]. - The high-grade iron ore segment generated revenue of RMB 115,280,000 in 2023, up from RMB 73,494,000 in 2022, reflecting a significant increase of about 56.8%[44]. - The trading segment's revenue was RMB 650,175,000 in 2023, compared to RMB 644,326,000 in 2022, indicating a slight increase of approximately 0.1%[44]. - Facility management services revenue increased to RMB 19,496,000 in 2023 from RMB 8,049,000 in 2022, marking a substantial growth of around 142.5%[44]. Capital Expenditures and Investments - Capital expenditures for the year were RMB 115,566,000, significantly higher than RMB 35,242,000 in 2022, indicating increased investment in growth[36]. - Total capital expenditure increased by approximately RMB 80.4 million to RMB 115.6 million for the fiscal year 2023, compared to RMB 35.2 million in fiscal year 2022, primarily due to costs related to the integration of the Maoling-Yanglongshan iron resources[151]. Operational Efficiency and Management - Cash flow from operating activities for 2023 was approximately RMB 95.1 million, significantly higher than RMB 21.3 million in 2022, reflecting improved operational efficiency[127]. - The company has maintained a credit period of one to four months for customers, consistent with the previous year[83]. - The company faced operational disruptions at the Maoling-Yanglongshan iron ore mine due to landslides in late June 2023, with operations gradually resuming by the end of July 2023[157]. - The company has adopted a more gradual and moderate expansion strategy in response to economic conditions, anticipating a slowdown in business recovery and revenue growth[160]. Corporate Governance and Compliance - The company did not recommend a final dividend for the fiscal year 2023, consistent with the previous year[2]. - The company has not engaged in any hedging transactions to manage potential foreign currency fluctuations, and management will consider hedging significant foreign currency risks as needed[148]. - The company is actively seeking to appoint at least one female director by December 31, 2024, to enhance gender diversity on the board[161]. - The company's auditor has confirmed that the figures in the announcement for the fiscal year 2023 are consistent with the audited consolidated financial statements[164]. Market and Economic Outlook - The global economic growth is projected to decline to 2.4% in 2024 from 2.6% in 2023, reflecting ongoing challenges in the economic environment[103]. - China's GDP growth for 2023 was reported at 5.2%, surpassing the government's initial target of 5%[103]. - In 2023, China's crude steel production remained stable at 1.019 billion tons, with steel consumption expected to decline by 3.3% to approximately 890 million tons[104]. - The average price of high-grade iron concentrate increased by approximately 1.6%, while the average selling price of steel dropped by about 7.0%[107]. - The trading volume of steel increased by approximately 8.5% to about 194.7 thousand tons in the fiscal year 2023[107].

Financial Performance - The group's revenue for the fiscal year 2023 was approximately RMB 785.0 million, representing an increase of 8.1% from RMB 725.9 million in the fiscal year 2022[2]. - The net profit for the fiscal year 2023 was approximately RMB 9.7 million, a significant increase from RMB 1.3 million in the fiscal year 2022, marking a growth of 646.2%[2]. - Basic and diluted earnings per share attributable to ordinary shareholders for the fiscal year 2023 was approximately RMB 0.43, compared to RMB 0.06 in the fiscal year 2022[4]. - The gross profit for the fiscal year 2023 was RMB 36.5 million, up from RMB 25.3 million in the fiscal year 2022, indicating a gross margin improvement[3]. - Total comprehensive income for the year attributable to the company's owners was RMB 9.7 million, compared to RMB 1.3 million in the previous year, reflecting a substantial increase[4]. - Total revenue for the year ended December 31, 2023, was RMB 784,951,000, representing an increase of 8.1% from RMB 725,869,000 in 2022[40]. - The company reported a pre-tax profit of RMB 14,112,000 for the year, compared to RMB 5,518,000 in 2022, indicating a substantial growth in profitability[38]. - The overall gross profit for the group in the 2023 fiscal year was approximately RMB 365 million, an increase from RMB 253 million in the 2022 fiscal year[108]. - Net profit for the fiscal year 2023 reached approximately RMB 9.7 million, a substantial increase of 643.6% from RMB 1.3 million in 2022[124]. Assets and Liabilities - Non-current assets totaled RMB 1,062.5 million as of December 31, 2023, compared to RMB 961.5 million in 2022, showing a growth of 10.5%[6]. - Current assets amounted to RMB 244.9 million, slightly up from RMB 237.1 million in 2022, indicating a growth of 3.7%[6]. - The total liabilities increased to RMB 367.0 million in 2023 from RMB 267.4 million in 2022, reflecting a rise of 37.1%[7]. - Total assets as of December 31, 2023, were RMB 1,307,334,000, an increase from RMB 1,198,590,000 in 2022[40]. - Total liabilities decreased to RMB 367,032,000 in 2023 from RMB 267,384,000 in 2022, reflecting improved financial stability[36]. - The company's non-current assets in mainland China rose to RMB 1,053,975,000 in 2023 from RMB 951,485,000 in 2022, showing expansion in asset base[40]. - The total intangible assets as of December 31, 2023, reached RMB 957,013,000, compared to RMB 866,523,000 as of December 31, 2022, reflecting a growth of 10.5%[66]. - The accumulated depreciation and impairment for property, plant, and equipment as of December 31, 2023, was RMB 120,743,000, an increase from RMB 114,147,000 in 2022, which is a rise of 5.8%[60]. Revenue Segments - The group is divided into four reportable segments based on business units, including high-grade iron ore, trading, facilities management, and corporate and others[32]. - Sales from high-grade iron ore business amounted to RMB 115,280,000, up 56.8% from RMB 73,494,000 in the previous year, contributing 14.7% to total revenue[42]. - Trade segment revenue reached RMB 650,175,000, slightly increasing by 0.1% from RMB 644,326,000 in 2022, accounting for 82.8% of total revenue[42]. - Facility management services generated revenue of RMB 19,496,000, a significant increase from RMB 8,049,000 in 2022, representing 2.5% of total revenue[42]. - The high-grade iron ore segment generated revenue of RMB 115,280,000 in 2023, up from RMB 73,494,000 in 2022, reflecting a significant increase of 56.8%[44]. - The trading segment's revenue was RMB 650,175,000 in 2023, compared to RMB 644,326,000 in 2022, indicating a slight increase of 0.1%[44]. - Facility management services revenue increased to RMB 19,496,000 in 2023 from RMB 8,049,000 in 2022, marking a substantial growth of 142.5%[44]. Costs and Expenses - The cost of goods sold for the year 2023 was RMB 732,694,000, compared to RMB 694,355,000 in 2022, resulting in an increase of 5.5%[51]. - Total financial costs for 2023 amounted to RMB 8,323,000, up from RMB 5,965,000 in 2022, reflecting an increase of 39.4%[50]. - The total income from other sources, including bank interest and government grants, was RMB 17,244,000 in 2023, compared to RMB 8,371,000 in 2022, indicating a growth of 105.4%[48]. - The company incurred interest expenses of RMB 1,071 thousand on lease liabilities in 2023, compared to RMB 662 thousand in 2022, reflecting higher financing costs[70]. - The company recognized a total of RMB 9,948,000 in depreciation for intangible assets during the year ended December 31, 2023[66]. Cash Flow and Investments - Cash flow from operating activities for 2023 was approximately RMB 95.1 million, compared to RMB 21.3 million in 2022, reflecting improved operational efficiency[127]. - Cash flow used in investing activities amounted to approximately RMB 79.8 million in 2023, significantly higher than RMB 23.8 million in 2022, primarily due to costs associated with resource integration[128]. - Total capital expenditure increased by approximately RMB 80.4 million to RMB 115.6 million for the fiscal year 2023, compared to RMB 35.2 million in fiscal year 2022, primarily due to costs related to the integration of the Maoling-Yanglongshan iron resources[151]. Operational Challenges and Strategies - The company faced operational disruptions at the high-grade iron ore business due to landslides in Sichuan Province, with operations fully suspended from June 27, 2023, and gradually resuming by the end of July 2023[157]. - The company has adopted a more gradual and moderate expansion strategy in response to economic conditions, anticipating a slowdown in business recovery and revenue growth[160]. - The company has entered into a framework agreement for facility management services with related parties, with annual transaction caps of RMB 26 million, RMB 34 million, and RMB 34 million for the years ending December 31, 2023, 2024, and 2025, respectively[155]. Corporate Governance and Future Outlook - The company is actively seeking to appoint at least one female director by December 31, 2024, to enhance gender diversity on the board[161]. - The company has not engaged in any hedging transactions to manage potential foreign currency fluctuations, and management will consider hedging significant foreign currency risks as needed[148]. - The company’s auditor has confirmed that the figures in the announcement for the fiscal year 2023 are consistent with the audited consolidated financial statements[164]. - The company’s annual report for the fiscal year 2023 will be available for shareholders on the company and Hong Kong Stock Exchange websites at an appropriate time[165].

Mining Resources and Operations - The Maoling-Yanglongshan Mine has a resource of 54.56 million tons of ordinary magnetite with an average grade of 22.83% TFe as of January 1, 2023[4]. - The Shigou Gypsum Mine has a resource of 10.37 million tons with a gypsum grade of 90.64% as of January 1, 2023[4]. - The Maoling Processing Plant has a capacity of 150,000 tons per annum for high-grade iron concentrates[5]. - The mining area for the Maoling-Yanglongshan Mine is 2.7366 square kilometers, and the mining license was issued on May 6, 2023[4]. - The entire operation at the combined Maoling-Yanglongshan Mine was temporarily suspended due to mudslides and flash floods at the end of June 2023[20]. - The Group plans to expand production capacity for higher-grade iron concentrates (with at least 70% TFe) following the completion of resource integration of the Maoling and Yanglongshan Mines[128][131]. - The combined mining area of the Maoling-Yanglongshan Mine is approximately 2.7 square kilometers, which will require additional investment commitments for expansion[128][131]. Financial Performance - Revenue for 1H2023 increased to approximately RMB281.4 million, a 20.4% increase from RMB233.8 million in 1H2022, driven by higher sales volume of high-grade iron concentrates and the inclusion of six months of revenue from the facility management segment[35]. - Overall gross profit for the Group was approximately RMB16.0 million in 1H2023, compared to RMB7.1 million in 1H2022[21]. - The Group recorded a net profit of RMB6.1 million for 1H2023, compared to a net loss of RMB7.7 million in 1H2022[63][66]. - Profit for the period was RMB5,958,000, a recovery from a loss of RMB7,779,000 in the previous year[187]. - Total comprehensive income for the period was RMB5,971,000, compared to a loss of RMB7,770,000 in 2022[190]. - Cash generated from operations for the six months ended June 30, 2023, is RMB61,350,000, significantly higher than RMB1,259,000 in the same period of 2022[199]. Economic Environment - In 1H2023, the global economy is projected to grow at a rate of 2.1%, a significant slowdown from the previous year's growth of 3.1%[15]. - China's GDP growth in 1Q2023 was reported at 4.5%, higher than the 2.9% in 3Q2022 and 3.9% in 4Q2022[15]. - China's GDP growth is expected to rise to 5.6% in 2023, driven by a recovery in consumer demand[15]. - The macro business environment remains highly dynamic, with potential adverse changes in market conditions affecting the Group's operations[32]. - There is rising uncertainty in China's economic recovery, prompting the Group to systematically review and adjust its strategies[134]. Market Trends - Steel prices fluctuated in 1H2023, peaking at RMB4,881 per tonne on March 15, 2023, before dropping to RMB4,173 per tonne by the end of May 2023[17]. - Crude steel production in China for 1H2023 was 535.6 million tonnes, representing a year-on-year growth of 1.3%[17]. - The Iron Ore Price Index peaked at 998.5 on March 14, 2023, before declining to a low of 821.9 on May 26, 2023, and rebounding to 931.3 by the end of June 2023[17]. - The Chinese Purchasing Manager's Index (PMI) for the steel industry peaked at 50.1 in February 2023 but fell to 35.2 in May 2023 before recovering to 49.9 in June 2023[17]. - The property management sector's market size is projected to grow from RMB694.8 billion in 2022 to RMB843.6 billion by 2025[19]. Operational Changes and Management - The company has undergone a leadership change with Mr. Hao Xiemin appointed as CEO effective July 1, 2023[7]. - The company is focused on inclusiveness and adaptability in its operations, as stated in its corporate philosophy[1]. - The company is actively managing its facilities across multiple provinces including Yunnan, Guizhou, Sichuan, and Chongqing[3]. - The management remains committed to long-term strategies for the Maoling-Yanglongshan Mine, including mining plans under the new mining license issued for High-Fe Mining Operations[53]. - The Group's strategic adjustments are aimed at navigating pressures faced by key industries in the current economic climate[134]. Share Options and Employee Information - As of June 30, 2023, Mr. Wang Hu holds 800,000 share options, representing 0.04% of the Company's issued share capital[139]. - Other directors hold a total of 275,000 share options, with individual holdings being less than 0.01% of the Company's issued share capital[139]. - The total number of share options outstanding as of January 1, 2023, and June 30, 2023, was 9,600,000[154]. - As of June 30, 2023, the Group had 330 employees, an increase from 215 employees as of December 31, 2022[165]. - Employee benefit expenses for the first half of 2023 were approximately RMB17.4 million, up from approximately RMB12.4 million in the first half of 2022, representing an increase of 40.3%[165]. Governance and Compliance - The audit committee consists of three independent non-executive Directors, ensuring compliance with the Corporate Governance Code[167]. - The Company has adopted the CG Code and believes it has complied with all applicable code provisions during the Reporting Period[175]. - The Board aims to appoint at least one female Director by December 31, 2024, in line with the transitional requirement set out in the Listing Rules[176].

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 部份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。 China Vanadium Titano-Magnetite Mining Company Limited 中 國 釩 鈦 磁 鐵 礦 業 有 限 公司 （於開曼群島註冊成立的有限公司） 00893 （股份代號： ） 2023 6 30 截至 年 月 日止六個月的 中期業績公告 財務摘要 於報告期內： • 2023 281.4 2022 本集團於 年上半年的收入約為人民幣 百萬元（ 年上半年：人民 233.8 幣 百萬元）； • 2023 6.1 2022 本集團於 年上半年錄得純利約人民幣 百萬元（ 年上半年：虧損淨 7.7 額人民幣 百萬元）； • 2023 鑑於上文所述， 年上半年歸屬於本公司普通股股權持有人的每股股份基 0.003 2022 ...

Resource and Production - The company reported a total resource of 54.56 million tons of ordinary magnetite with an average grade of 22.83% TFe as of January 1, 2023[5]. - The Maoling Processing Plant has a capacity of 150,000 tons per annum for high-grade iron concentrates[5]. - The company has a mining area of 11.6 square kilometers for the Maoling-Yanglongshan Mine, which includes a mining area of 1.9 square kilometers[5]. - The gypsum mine in Hanyuan County has a resource of 10.37 million tons with a grade of 90.64% gypsum and anhydrite[5]. - The company plans to expand production capacity for high-grade iron concentrates (with at least 70% TFe), which will incur capital expenditures related to licensing, environmental compliance, and facility upgrades[46]. Financial Performance - For the year ended December 31, 2022, the company's revenue was RMB 725,869,000, a decrease from RMB 756,225,000 in 2021, representing a decline of approximately 4%[26]. - The gross profit for 2022 was RMB 25,278,000, down from RMB 31,527,000 in 2021, indicating a decrease of about 20%[27]. - The profit attributable to owners of the company was RMB 1,304,000 in 2022, a significant drop from a profit of RMB 8,311,000 in 2021, reflecting a decline of approximately 84%[28]. - The equity attributable to owners of the company stood at RMB 636,575,000 as of December 31, 2022, slightly up from RMB 635,240,000 in 2021[29]. - The average selling prices for high-grade iron ore concentrates and steels fell substantially in FY2022 due to weak market demand[37]. - The Group's revenue for FY2022 increased by 1.6% to approximately RMB725.9 million, compared to RMB714.8 million for FY2021, driven by higher sales volume of high-grade iron concentrates and the maiden revenue contribution from facility management services[61]. - The average unit selling price of high-grade iron concentrates declined by 17.6%, while the price of steel products fell by 23.5%, despite an increase in sales volume for both products[69]. - The Group recorded a net profit of approximately RMB 1.3 million for FY2022, a significant decrease from RMB 8.3 million in FY2021[100]. Operational Challenges - The company faced operational interruptions at the Maoling Mine due to natural disasters, power restrictions, and COVID-19, leading to higher fixed operating expenses and unit costs[38]. - In FY2022, the group's net profit was impacted by rising fixed operating expenses, primarily due to a decline in average selling prices of iron ore and steel products, increased logistics costs from new stockyards, and professional fees from various corporate activities[45]. - The company anticipates continued uncertainty in the steel industry, with weak demand and rising direct costs impacting operating margins in the short to medium term[44]. - The economic outlook for China remains cautious, with potential challenges from sluggish external demand and ongoing issues in the real estate sector[46]. Corporate Strategy and Governance - The company aims to explore exceptional potential in mining and expand its market presence[10]. - The company is focused on delivering shareholder value and maintaining integrity in its operations[8]. - The management discussion highlighted the importance of adaptability and inclusiveness in future strategies[2]. - The company is committed to community care and social responsibility as part of its mission[10]. - The company has undergone a corporate restructuring plan and completed a reverse takeover of Livingstone Health Ltd, enhancing its operational capabilities[186]. - The company aims to enhance its market position through strategic acquisitions and operational improvements[191]. - The company has received recognition for its corporate excellence, showcasing its commitment to sustainable growth and leadership in the industry[192]. Economic Environment - China has set a modest economic growth target of 5% for 2023, which is lower than many analysts expected, indicating potential challenges ahead[43]. - China's GDP grew by 3% year-on-year in 2022, falling short of the official target of 5.5%, marking the second slowest growth in decades[56]. - The global economic growth is expected to decelerate sharply to 1.7% in 2023, the third weakest growth in nearly three decades, influenced by high inflation and ongoing geopolitical tensions[56]. - In March 2023, China announced a lower-than-expected GDP growth target of about 5%, indicating prudent monetary policies ahead[56]. Employee and Management - As of December 31, 2022, the Group had a total of 215 full-time employees, an increase from 127 employees in FY2021, with employee benefit expenses amounting to approximately RMB22.0 million, up from RMB14.4 million in FY2021[164][167]. - The Group's employee count and benefit expenses indicate a focus on expanding human resources to support operational growth and efficiency[164][167]. - The Group has implemented training programs to promote employee career development and progression within the organization[165]. - The company has a strong leadership team with extensive experience in corporate finance, restructuring, and compliance, positioning it well for future growth[190]. Financial Management - The Group's total lease liabilities rose significantly to approximately RMB 24.7 million as of December 31, 2022, from RMB 2.7 million in FY2021, due to a new operating lease arrangement for a storage facility[120]. - The Group's total capital expenditures increased by RMB16.9 million to approximately RMB35.2 million, primarily due to engineering works for the upgrade of High-Fe Mining Operations and expansion of Maoling Mine areas[150]. - The Group did not recommend a final dividend for FY2022, consistent with the previous fiscal year[101]. - The Group's interest rate exposure is managed through fixed rates, and no interest rate swaps have been used to hedge against interest rate risk[148].

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 部份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。 China Vanadium Titano-Magnetite Mining Company Limited 中 國 釩 鈦 磁 鐵 礦 業 有 限 公司 （於開曼群島註冊成立的有限公司） 00893 （股份代號： ） 2022 12 31 截至 年 月 日止年度的全年業績公告 財務摘要 1.0 2021 報告期內，持續經營業務錄得年內利潤約人民幣 百萬元（ 財政年度：人民幣 1.0 (i) (ii) 百萬元），主要源於 高品位鐵精礦銷量上升； 設施管理服務首次貢獻收入； (iii) (i) 及 擔保費收入；惟受到以下負面因素影響： 鐵礦石及鋼鐵產品的平均單位售 (ii) (iii) 價因市道低迷而下跌； 新儲存設施導致物流成本上升；及 年內開展的多項企 業交易令專業費用上升。 2021 6.6 有鑑於此，加上 財政年度曾確認非經常性出售收益淨額人民幣 百萬元，而 2022 2022 1.3 財政年度並 ...

Resource and Production - The company reported a resource amount of 54.96 million tons of ordinary magnetite with an average grade of 22.81% TFe as of January 1, 2022[5]. - The Maoling Processing Plant has a capacity of 150,000 tons per annum for high-grade iron concentrates[5]. - The exploration area for the Maoling-Yanglongshan Mine is 11.6 square kilometers, including a mining area of 1.9 square kilometers[5]. - The Shigou Gypsum Mine has a resource amount of 10.37 million tons with a grade of 90.64% gypsum and anhydrite[5]. - Production volume of high-grade iron concentrates fell by 19.0% primarily due to production disruptions and suspension[30]. - The Maoling-Yanglongshan Mine is producing iron concentrates with Fe contents ranging from 65% to 72%[32]. - The Group's operations are affected by dynamic macro business environments, including adverse changes in market conditions for iron concentrates and steel trading[37]. Financial Performance - The Group reported a revenue decline of 5.1% to approximately RMB233.8 million due to renewed COVID-related restrictions and operational disruptions caused by earthquakes in Sichuan Province[30]. - Revenue for 1H2022 decreased to approximately RMB233.8 million, down 5.1% from RMB246.3 million in 1H2021 due to lower production volume and average selling prices[42]. - Gross profit for 1H2022 was approximately RMB7.1 million, down 31.0% from RMB10.3 million in 1H2021, resulting in a gross profit margin of 3.0% compared to 4.2% in 1H2021[42]. - Loss attributable to owners of the Company was RMB7.7 million in 1H2022, up 13.2% from RMB6.8 million in 1H2021[42]. - The Group recorded a net loss of RMB7.7 million for 1H2022, compared to a net loss of RMB6.8 million in 1H2021[44]. - Other income and gain decreased significantly to RMB0.9 million in 1H2022, down 59.5% from RMB2.1 million in 1H2021[42]. Market Conditions - During the first half of 2022, global economic growth is expected to decline from approximately 6.1% in 2021 to approximately 3.6% in 2022 and 2023[17]. - China's GDP in the first half of 2022 showed a year-on-year growth of 2.5%, which is below the annual target of 5.5%[17]. - Steel production in China saw a significant drop, with 96.6 million tonnes produced in May 2022, representing a year-on-year decrease of 3.5%[17]. - Steel prices in China plummeted to a low of RMB4,868 per tonne in late June 2022 due to various economic pressures[17]. - The National Development and Reform Commission of the PRC aims for a year-on-year reduction in crude steel production in 2022[20]. - Key regions for steel output reduction include the Jing-jin-ji Metropolitan region and the Yangtze River Delta region[20]. Management and Strategy - The company appointed Mr. Hao Xiemin as acting chief executive officer effective July 13, 2022, following the resignation of Mr. Jiang Zhong Ping[10]. - The company is focused on inclusiveness and adaptability as part of its strategic foundation[1]. - The interim report highlights the company's commitment to expanding its mining operations in Sichuan and surrounding provinces[4]. - The management discussion emphasizes the importance of market expansion and potential acquisitions to drive growth[7]. - The company aims to enhance its processing capabilities to improve product quality and efficiency[5]. - The Group is exploring new technologies for resource extraction to increase operational efficiency[7]. Costs and Expenses - Administrative expenses increased to RMB 11.2 million in 1H2022 from RMB 8.9 million in 1H2021, primarily due to higher professional fees for corporate transactions[32]. - Selling and distribution expenses remained relatively stable at approximately RMB0.3 million for 1H2022, compared to RMB0.2 million in 1H2021[42]. - Finance costs increased to RMB2.7 million for 1H2022, up 15.2% from RMB2.4 million in 1H2021[42]. - Other expenses increased to RMB1.6 million for 1H2022, up from RMB1.3 million in 1H2021, due to higher absorption cost per unit from lower production volume[44]. Cash Flow and Liquidity - Cash and cash equivalents at the beginning of the period were RMB6,436,000, decreasing to RMB3,747,000 by the end of the period[46]. - Net cash flows from operating activities were RMB655,000 for 1H2022, compared to a net cash outflow of RMB38,820,000 in 1H2021[46]. - Net cash flows used in investing activities were RMB10,021,000 for 1H2022, compared to RMB9,757,000 in 1H2021[46]. - Net cash flows from financing activities were RMB6,672,000 for 1H2022, compared to RMB4,445,000 in 1H2021[46]. Share Options and Equity - As of June 30, 2022, the Directors and chief executives held a total of 9,600,000 share options, representing 0.44% of the Company's issued share capital[85]. - The 2020 Option Scheme was adopted to ensure continuity after the expiration of the previous scheme, effective for 10 years from June 16, 2020[89]. - No share options were granted, exercised, cancelled, or lapsed during the reporting period[97]. - The exercise price for the share options is set at HKD 1.00 per option[93]. - As of June 30, 2022, Trisonic International holds 1,006,754,000 shares, representing 44.76% of the company's issued share capital[106]. Employee and Governance - The number of employees increased to 232 as of June 30, 2022, up from 127 on December 31, 2021[118]. - Employee benefit expenses for 1H2022 were approximately RMB 12.4 million, compared to RMB 15.2 million in 1H2021[118]. - The audit committee consists of three independent non-executive directors, responsible for risk management and internal control[118]. - The company continues to review and monitor its corporate governance practices to ensure compliance with applicable codes[122].

Resource Estimates and Mining Operations - The company reported a resource estimate of 54.96 million tons of ordinary magnetite with an average grade of 22.81% TFe as of January 1, 2022[5]. - The Maoling Processing Plant has a capacity of 150,000 tons per annum for high-grade iron concentrates[5]. - The exploration area for the Maoling-Yanglongshan Mine is 11.6 square kilometers, including a mining area of 1.9 square kilometers[5]. - The Shigou Gypsum Mine has a resource estimate of 10.37 million tons with a gypsum grade of 90.64%[5]. - The company owns one ordinary iron ore mine and one gypsum mine, both located in Sichuan, China[14]. - The company is engaged in mining and ore processing, sale of self-produced products, and management of strategic investments[14]. - The Maoling-Yanglongshan Mine is producing iron concentrates with high Fe contents (ranging from 65% TFe to 72% TFe) as of December 31, 2021[63]. - The indicated resources at the Maoling-Yanglongshan Mine were 7.72 million tons with a grade of 22.48% TFe, containing 1,735.34 Kt of metal[110]. - The inferred resources at the Maoling-Yanglongshan Mine were 47.24 million tons with a grade of 22.86% TFe, containing 10,799.00 Kt of metal[110]. - The mineral resources of the Shigou Gypsum Mine have not changed since the disclosure in the Group's 2014 annual report[114]. Financial Performance - For the year ended December 31, 2021, the company's revenue was RMB 756,225,000, an increase of 30.2% from RMB 580,703,000 in 2020[20]. - The gross profit for 2021 was RMB 31,527,000, down 48.9% from RMB 61,599,000 in 2020[20]. - The profit attributable to owners of the company for 2021 was RMB 8,311,000, a significant recovery from a loss of RMB 17,054,000 in 2020[20]. - As of December 31, 2021, the equity attributable to owners of the company was RMB 635,240,000, slightly up from RMB 626,251,000 in 2020[20]. - The Group recorded operating profit before income tax for the High-Fe Mining Operation, but overall profitability was affected by market volatility and disruptions in operations[36]. - The Group's financial results for the year ended December 31, 2021, are detailed in the consolidated statement of profit or loss and other comprehensive income[186]. - The Group's financial performance and cash flow are key considerations in the dividend declaration process[193]. - The Group's additions to property, plant, and equipment for the year ended December 31, 2021, amounted to approximately RMB 18.3 million, compared to RMB 19.8 million in FY2020[192]. - The Company’s subsidiaries' distributable profits differ from those reflected in the Group's consolidated financial statements prepared under IFRS[198]. Market Conditions and Economic Outlook - The global economic recovery remains uncertain due to supply chain disruptions and geopolitical tensions[29]. - China's GDP growth is expected to decelerate in 2022 due to multiple headwinds, including the strict 'zero-Covid' approach and real estate debt crisis[31]. - China's annual crude steel production fell from a record high in 2020 to lower levels in 2021 due to stringent production curbs, with further declines expected in 2022 if restrictions continue[32]. - Steel prices surged during the post-COVID recovery as supply lagged behind demand, but increased pandemic control measures may cap demand growth[33]. - The Group anticipates meaningful business recovery in China upon the reopening of the local economy, despite previous supply chain disruptions[40]. - China's GDP growth is expected to slow in 2022 due to multiple economic challenges, including the real estate sector's debt crisis[34]. Corporate Governance and Management - The board of directors includes key figures such as Mr. Teh Wing Kwan (Chairman) and Mr. Jiang Zhong Ping (CEO)[7]. - The Group's financial controller is Mr. Hao Xiemin, and the CEO is Mr. Jiang Zhong Ping[178]. - The company has undergone significant corporate restructuring, including the reverse takeover of Livingstone Health Ltd. by Citicode Ltd. during Mr. Teh's tenure as CEO[150]. - The company has a strong focus on corporate finance matters, operational reorganization, and pre-IPO restructuring[158]. - The company has a strategic focus on compliance and legal matters, ensuring adherence to regulations and enhancing corporate governance[161]. - The company is positioned for future growth through its experienced management team and strategic initiatives in the mining sector[171]. Operational Challenges and Strategic Initiatives - The Group plans to expand production capacity for higher-margin iron concentrates with at least 70% TFe, involving capital investments in licensing, exploration, and facility upgrades[39]. - The Group aims to segregate mining facilities management from upstream operations to focus on environmentally responsible practices and diversify revenue sources[39]. - The Group's decision to exit the Australian market by disposing of the Mancala Australia Group was deemed timely amid geopolitical and operational risks[36]. - The company aims to progressively expand its facilities management capabilities, including future investments in skilled personnel and technological support[120]. - The company is focusing on enhancing its expertise in facilities management to procure additional service contracts and forge partnerships with strategic partners[120]. Shareholder and Dividend Policies - The Board does not recommend the payment of a final dividend for FY2021, consistent with FY2020[85]. - The Company adopted a dividend policy on December 27, 2018, focusing on maintaining adequate cash reserves for working capital and future growth[190]. - The reserves available for distribution depend on the dividends distributable by the Company's subsidiaries, which are determined by their distributable profits as per PRC statutory financial statements[198]. - The Company can apply the share premium account for paying distributions or dividends, provided it can meet its debts as they fall due[197]. Audit and Compliance - Ernst & Young issued a qualified opinion regarding the consolidated financial statements of the Mancala Australia Group, which was disposed of on 31 July 2021[123]. - The Qualified Opinion from the auditor is limited to the Mancala Australia Group, which has been classified as Discontinued Operations in the Group's financial statements[134]. - The Audit Committee reviewed the Qualified Opinion and agreed with management's assessment regarding the financial statements of the Mancala Australia Group[140]. - The Audit Committee acknowledges practical difficulties in conducting audits for the Mancala Australia Group due to administrative delays and COVID-19 restrictions, impacting timely communications with management[141].