Financial Performance - In 2022, the revenue was HKD 16,031.9 million, an increase of 24.9% compared to HKD 12,830.8 million in 2021[4] - The gross profit for 2022 was HKD 1,372.3 million, down from HKD 2,338.9 million in 2021, resulting in a gross margin of 8.6%, a decrease of 9.6 percentage points from 18.2% in 2021[4] - The net profit attributable to the owners of the company for 2022 was HKD 336.1 million, compared to HKD 356.3 million in 2021[4] - The company reported a total capital expenditure of HKD 820.1 million for the year[10] - The financial expenses for 2022 were HKD 221.3 million, a decrease from HKD 236.0 million in 2021[4] - The company’s operating profit before tax for 2022 was HKD 394.9 million, compared to HKD 546.3 million in 2021[4] - The total tax expense for the year was HKD 52,565,000, a decrease from HKD 190,049,000 in 2021, primarily due to the utilization of prior year tax losses[29] - The total profit attributable to the company's owners for 2022 was HKD 336.1 million, down from HKD 454.6 million in 2021[58] - The company's net profit attributable to shareholders for 2022 was HKD 336,091 thousand, a decrease of 26.1% from HKD 454,583 thousand in 2021[50] - The EBITDA for 2022 decreased by 20.8% to HKD 1,048.0 million, compared to HKD 1,323.0 million in 2021[58] Revenue Breakdown - Revenue from mainland China in 2022 was HKD 14,989.7 million, up from HKD 11,939.8 million in 2021[12] - The sales breakdown by region shows that Mainland China contributed HKD 14,989,718,000, accounting for 93.5% of total sales, while sales in Asia (excluding Mainland China) were HKD 740,922,000[18] - The battery materials production segment's revenue was HKD 1,986.7 million in 2022, an 18.7% increase from HKD 1,673.9 million in 2021[61] - The manganese mining segment's revenue increased by 74.2% to HKD 1,257.2 million in 2022, driven by expanded mining operations at the Bembélé manganese mine[64] - The electrolytic manganese and alloy materials production segment's revenue decreased to HKD 3,377.0 million in 2022 from HKD 4,510.5 million in 2021, reflecting a decline of 25.1%[61] - The revenue from silicon manganese alloy decreased by 35.8% to HKD 905.3 million in 2022, with sales volume down by 36.6% to 106,612 tons[70] Cost and Expenses - The total cost of goods sold for the year was HKD 14,434,290,000, which includes depreciation and employee benefits, highlighting the operational costs associated with revenue generation[25] - Total sales costs rose by 39.7% to HKD 14,659.6 million in 2022, compared to HKD 10,491.8 million in 2021[80] - The average selling price of electrolytic manganese products fell by 8.1% to HKD 20,322 per ton in 2022, compared to HKD 22,121 per ton in 2021[53] - The average selling price of electrolytic manganese dioxide increased by 55.0% to HKD 16,644 per ton, with a gross profit margin rising by 17.8 percentage points to 47.0%[55] Impairment and Liabilities - The company recognized a non-cash impairment loss of HKD 119.7 million on property, plant, and equipment, down from HKD 236.4 million in 2021[4] - The company's total liabilities increased to HKD 2,148,852 thousand in 2022 from HKD 1,300,221 thousand in 2021[47] - Impairment losses on mining rights amounted to HKD 70.9 million and HKD 48.8 million for two manganese mines due to decreased demand and production cuts[86] - The company's financial expenses remained stable at HKD 221.3 million in 2022, compared to HKD 236.0 million in 2021[93] Market and Strategic Initiatives - The company plans to expand its market presence in Europe and North America, where sales were HKD 28,635,000 and HKD 272,610,000 respectively, indicating potential growth opportunities[18] - The group aims to enhance manganese resources and reserves through exploration and strategic acquisitions[153] - The group is optimistic about the gradual recovery of the global economy as more countries ease COVID-19 restrictions[154] - The group continues to strengthen its leading position in battery materials production, focusing on R&D to improve the quality of new energy battery materials[157] Governance and Compliance - The company has appointed a new auditor, RSM Hong Kong, effective from August 18, 2023, following the resignation of PwC on July 31, 2023[159] - An independent investigation committee was established on March 31, 2023, to address the audit concerns raised by the previous auditor[161] - The company must comply with all resumption guidance from the Stock Exchange to avoid delisting, with a deadline of September 29, 2024[161] - The company has committed to improving its internal controls and has identified and rectified several deficiencies[176] Shareholder Information - The company did not recommend any dividend for the year ended December 31, 2022, consistent with 2021[44] - Basic earnings per share for the company’s owners were HKD 0.0980 in 2022, compared to HKD 0.1326 in 2021[109] - The company expresses gratitude to shareholders, business partners, distributors, and employees for their support and contributions[196]

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 9,008,594, an increase of 113% compared to HKD 4,228,335 for the same period in 2021[11] - Gross profit for the same period was HKD 7,874,097, representing a gross margin of approximately 87%[11] - Net profit for the period was HKD 424,979, a significant increase from HKD 24,116 in the previous year, reflecting a year-over-year growth of 1,668%[11] - Basic and diluted earnings per share for the period were HKD 0.1322, compared to HKD 0.0064 in the prior year[11] - Total comprehensive income for the period amounted to HKD 241,847, compared to HKD 62,782 in the same period last year[11] - The company reported a significant increase in other income and gains, totaling HKD 102,353, up from HKD 74,357 in the previous year[11] - The company reported a total comprehensive income of HKD 62.78 million for the period, compared to HKD 22.06 million in the previous year, reflecting improved financial performance[24] - The group reported a total of HKD 4,605,000 in salaries, director's fees, and allowances for key management personnel in the first half of 2022, a decrease from HKD 7,253,000 in the same period of 2021[140] Assets and Liabilities - Non-current assets totaled HKD 5,023,622 thousand as of June 30, 2022, a decrease of 1.85% from HKD 5,118,358 thousand as of December 31, 2021[14] - Current assets increased to HKD 6,047,493 thousand, up 3.09% from HKD 5,865,985 thousand year-over-year[14] - Total liabilities decreased to HKD 7,753,906 thousand, down 10.67% from HKD 8,688,767 thousand as of December 31, 2021[14] - The net asset value rose to HKD 3,317,209 thousand, reflecting an increase of 8.93% from HKD 3,044,576 thousand[15] - Current liabilities decreased to HKD 6,349,713 thousand, down 11.09% from HKD 7,142,173 thousand[14] - The company's total liabilities decreased to HKD 1,571,256,000 as of June 30, 2022, from HKD 1,464,728,000 as of December 31, 2021, reflecting a decrease of approximately 7.3%[81] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2022, was HKD 389.87 million, a decrease of 16% compared to HKD 464.08 million for the same period in 2021[24] - The net cash flow used in investing activities was HKD (436.34) million, compared to HKD (362.19) million in the previous year, indicating an increase in investment outflows[24] - The net cash flow generated from financing activities was HKD 377.61 million, a significant improvement from HKD (435.49) million in the prior year[24] - The total cash and cash equivalents at the end of the period increased to HKD 1,324.26 million, up from HKD 803.54 million at the end of the previous year[24] - Cash and bank balances amounted to HKD 1,841,231,000 as of June 30, 2022, compared to HKD 1,245,909,000 as of December 31, 2021[100] Segment Performance - The group operates four reportable segments: Manganese Mining, Electrolytic Manganese and Alloy Production, Battery Materials Production, and Other Businesses[38] - The Manganese Mining segment is responsible for the extraction and production of manganese products, including manganese ore and manganese powder[38] - The Electrolytic Manganese and Alloy Production segment includes the extraction and processing of ores for the production of electrolytic manganese and ferromanganese alloys[38] - The Battery Materials Production segment focuses on producing battery materials such as electrolytic manganese dioxide and lithium nickel cobalt manganese oxide[38] - The Other Businesses segment includes trading activities and investments in non-manganese metal extraction and production[38] - The total segment performance showed a profit of HKD 724,208, compared to HKD 247,719 in the same period last year, marking an increase of approximately 192%[46] - The battery materials production segment achieved revenue exceeding HKD 1 billion for the first time, contributing significantly to overall revenue growth[164] Market and Operational Insights - The company aims to expand its market presence and enhance product offerings through ongoing research and development initiatives[11] - The company continues to focus on manganese mining and processing operations in mainland China and Gabon, indicating ongoing commitment to its core business[26] - The company plans to continue expanding its market presence and investing in new technologies to enhance production capabilities and meet growing demand[46] - The company anticipates a rebound in demand for electrolytic manganese products in the second half of 2022 due to government stimulus measures and the easing of lockdowns in China[159] - The company plans to focus on market share acquisition, securing raw material supply, enhancing product R&D, and expanding production to other battery materials[160] Expenses and Impairments - Administrative expenses rose to HKD 402,166, compared to HKD 251,436 in the prior year, indicating a 60% increase[11] - The company recognized an impairment loss of HKD 126,297 on property, plant, and equipment, compared to HKD 45,557 in the previous year[11] - The group confirmed a non-cash impairment loss of HKD 126.3 million related to mining rights, impacting overall profitability[161] - The company's significant increase in employee benefits expenses totaled HKD 402,362,000 for the period, compared to HKD 358,044,000 in the previous year[56] Revenue Growth Factors - The average selling price of electrolytic manganese rose by 53.4% to HKD 24,902 per ton in the first half of 2022, compared to HKD 16,233 per ton in the first half of 2021[159] - The average selling price of electrolytic manganese dioxide increased by 65.7% to HKD 16,405 per ton in the first half of 2022, compared to HKD 9,901 per ton in the first half of 2021[160] - The average selling price of lithium manganese oxide surged by 160.1% to HKD 88,925 per ton, reflecting the rise in lithium carbonate prices[178]

Financial Performance - The company reported revenue of HKD 12,830,762, a significant increase of 194% compared to HKD 4,367,563 in the previous year[13] - The pre-tax profit for the year was HKD 584,936, recovering from a loss of HKD 503,810 in the previous year[13] - Net profit attributable to the parent company was HKD 466,185, compared to a loss of HKD 437,929 in the previous year[13] - Total assets increased to HKD 10,984,343, up from HKD 9,058,703 in the previous year, reflecting a growth of 21%[13] - Current assets rose to HKD 5,865,985, a 47% increase from HKD 3,972,103 in the previous year[13] - Total liabilities amounted to HKD 7,939,767, an increase from HKD 6,507,630 in the previous year[13] - The company's net assets reached HKD 3,044,576, up from HKD 2,551,073 in the previous year, indicating a growth of 19%[13] - Non-current assets slightly increased to HKD 5,118,358 from HKD 5,086,600 in the previous year[13] - The company reported a total revenue of HKD 2,618,617,000 as of December 31, 2021, with no significant changes in the nature of its main business during the year[31] - The gross profit for 2021 was HKD 2,338.9 million, up 305.7% from HKD 576.5 million in 2020, with a gross margin of 18.2%, an increase of 5.0 percentage points from 13.2% in 2020[82] - The operating profit for 2021 was HKD 1,292.7 million, compared to HKD 112.8 million in 2020, reflecting a significant increase[80] - The net profit attributable to equity holders of the parent for 2021 was HKD 466.2 million, a turnaround from a loss of HKD 437.9 million in 2020[82] - The net debt ratio decreased to 92.3% as of December 31, 2021, down from 134.8% in 2020[82] - The cash generated from operations for 2021 was HKD 1,595.1 million, an increase of 167.3% from HKD 596.8 million in 2020[82] Market and Growth Strategy - The company plans to expand its market presence and invest in new technologies to drive future growth[15] - The management is optimistic about the upcoming fiscal year, expecting continued revenue growth and improved profitability[15] - The company plans to continue enhancing its production technology and expanding its product offerings in battery materials and new energy materials to strengthen market competitiveness[17] - The group maintained a cautious optimism regarding the battery materials segment, focusing on market share and product development[87] - The group is optimistic about the recovery of the Chinese economy and plans to improve internal efficiency and management skills to reduce costs and enhance competitiveness[172] - The group continues to strengthen its leading position in the production of new energy battery materials, focusing on quality improvement and expanding applications in electric vehicles[173] Environmental and Safety Initiatives - The company actively implemented production cuts and carbon reduction measures in response to national energy-saving policies, enhancing its commitment to green development[17] - The company achieved zero casualties in production safety incidents during the year, thanks to its robust safety and environmental management systems[21] - The company successfully launched a project for the resource utilization of electrolytic manganese anode mud, marking a breakthrough in clean and sustainable production processes[21] - The Daxin manganese mine was honored as a "National Green Mine" by the Ministry of Natural Resources, reflecting the company's commitment to sustainable mining practices[23] - The company organized tree planting activities, planting over 2,000 fruit trees during the Arbor Day period, contributing to environmental improvement[25] - The group is committed to achieving carbon neutrality goals in line with government initiatives, focusing on green development and sustainable practices[172] Product and Sales Performance - In 2021, the average selling price of electrolytic manganese metal increased by 106.3% to HKD 22,121 per ton, compared to HKD 10,725 per ton in 2020[84] - The gross profit margin for electrolytic manganese metal products rose by 29.7 percentage points to 44.2% in 2021, up from 14.5% in 2020[84] - The sales volume of electrolytic manganese dioxide increased by 38.5% to 119,539 tons in 2021, compared to 86,294 tons in 2020[88] - The average selling price of electrolytic manganese dioxide rose by 24.7% to HKD 10,741 per ton in 2021, up from HKD 8,616 per ton in 2020[88] - The electrolytic manganese and alloy materials production segment's revenue rose by 46.0% to HKD 4,510.5 million in 2021, compared to HKD 3,089.2 million in 2020, mainly due to a significant increase in average selling prices[105] - Battery materials production segment revenue surged by 82.3% to HKD 1,673.9 million in 2021, up from HKD 918.4 million in 2020, with gross profit increasing by 100.6% to HKD 444.7 million[110] Related Party Transactions - The company has entered into related party transactions with Guangxi Daming and its subsidiaries, confirming that these transactions are conducted on normal commercial terms[71] - The company has established agreements for the purchase of high-grade manganese ore from Guangxi Daming for the three years ending December 31, 2023[67] - In 2021, the company purchased finished products from Guangxi Daming amounting to HKD 56,831,000[69] - The company also procured raw materials from Guangxi Daming's subsidiaries for HKD 870,000 in 2021[69] - The company supplied electricity and auxiliary materials to Guangxi Xishan for HKD 11,539,000 in 2021[69] Shareholder and Management Information - The company does not recommend the distribution of any dividends for the year[31] - The company has no existing management contracts related to the management and administration of its business[34] - As of December 31, 2021, major shareholders include Sun Mingwen with 994,260,000 shares, representing 29.00% of the issued share capital[59] - Guangxi Daming Group holds 776,250,000 shares, accounting for 22.64% of the issued share capital[59] - CITIC Group has a stake of 203,090,000 shares, which is 5.92% of the issued share capital[59] Debt and Financing - The company’s borrowings, including interest-bearing bank loans and other borrowings, are detailed in the financial statements[34] - The company has HKD 3,624.0 million in borrowings due within one year, up from HKD 2,676.0 million in 2020, reflecting a significant increase of approximately 35.4%[152] - Total borrowings decreased to HKD 4,113.9 million in 2021 from HKD 4,569.4 million in 2020, representing a reduction of approximately 9.9%[152] - The company has secured new bank loans totaling HKD 1,117.9 million since January 1, 2022, ensuring sufficient working capital for the next twelve months[160] - The group faces interest rate risk due to floating rate debt, which may increase financial costs if market rates rise; to manage this risk, interest rate swap contracts are utilized to lock in certain floating rates[166] Mining Operations and Resources - The total mining output for the Bembélé manganese mine in 2021 was 1,810 thousand tons, an increase from 1,546 thousand tons in 2020, reflecting a growth of approximately 17%[195] - The total mining output for the Daxin manganese mine in 2021 was 1,764 thousand tons, a decrease of about 4.5% from 1,847 thousand tons in 2020[192] - The manganese ore production at the Tiandeng manganese mine increased to 625 thousand tons in 2021, up from 498 thousand tons in 2020, representing a growth of approximately 25.5%[193] - The company has completed geological exploration at the Bembélé manganese mine, identifying approximately 1,021.80 thousand tons of economic manganese ore resources with an average grade of 26.93%[1] - The company has not signed any contracts or made commitments for exploration work at the Daxin manganese mine during the year[1] - The company has engaged contractors for geological surveys at the Bembélé manganese mine, covering an area of 2,000 square kilometers for further exploration[1]

(於百慕達註冊成立之有限公司) 股份代號: 1091 2021 中期報告 2021 目錄 頁次 2 公司資料 財務業績 4 5 7 9 10 中期簡明綜合損益及其他全面收益表 中期簡明綜合財務狀況表 中期簡明綜合權益變動報表 中期簡明綜合現金流量表 中期簡明綜合財務報表附註 其他資料 37 51 54 68 76 76 76 76 77 78 78 78 78 79 | --- | |--------------------------------------------------------------------------------------| | | | 管理層討論及分析 人力資源報告 | | 環境、社會及管治報告 | | 我們的錳礦資源摘要及我們的錳礦石儲量摘要 | | 企業管治常規守則 董事進行證券交易的標準守則 董事及最高行政人員在股份及相關股份的權益 | | 購股權計劃 主要股東及其他人士在股份及相關股份的權益 購買、贖回或出售本公司的上市證券 | | 董事資料變更 | | 審閱帳目 | | 前瞻聲明 | | 詞滙表 | 2 南方錳業投資有限公司 公司資料 | --- | --- | | ...

南方猛業投資有限公司 SOUTH MANGANESE INVESTMENT LIMITED (於百慕達註冊成立之有限公司) 股份代號: 1091 25 ● ● ● ● ● ● ● ● ● ● . ● . ● . 年報 2020 目錄 | --- | --- | |---------|--------------------------| | | | | 2-3 | 公司資料 | | 4 | 五年財務概要 | | 5-8 | 主席報告 | | 9-20 | 董事會報告 | | 21-48 | 管理層討論及分析 | | 49-58 | 礦產資源及採礦報告 | | 59-62 | 董事及高級管理人員簡介 | | 63-79 | 企業管治報告 | | 80-84 | 人力資源報告 | | 85-101 | 環境、社會及管治報告 | | 102-104 | 股權分析及權益人資料 | | 105-110 | 獨立核數師報告 | | 111-112 | 綜合損益及其他全面收益表 | | 113-114 | 綜合財務狀況表 | | 115-116 | 綜合權益變動報表 | | 117-118 | 綜合現金流量表 | | 11 ...

[Company Information](index=3&type=section&id=Company%20Information) CITIC Dameng Holdings Limited, listed on HKEX, primarily engages in investment holding, with subsidiaries involved in manganese mining, processing, and related trading in China and Gabon - CITIC Dameng Holdings Limited is a Bermuda-incorporated company listed on the Main Board of the Hong Kong Stock Exchange (stock code: **1091**). Its principal business is investment holding, with subsidiaries engaged in manganese mining, ore processing, downstream processing (manganese alloys and battery materials), and related raw material trading in mainland China and Gabon[3](index=3&type=chunk)[19](index=19&type=chunk) [Financial Performance](index=4&type=section&id=Financial%20Performance) [Financial Statement Summary](index=4&type=section&id=Financial%20Statement%20Summary) In H1 2020, revenue decreased by 32.4% to HKD 2.12 billion due to reduced trading and lower product prices, resulting in a net loss attributable to owners of HKD 8.11 million despite improved gross margin and operating cash flow 2020 H1 Key Financial Data Summary (Unit: HKD Thousand) | Indicator | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | YoY Change | | :--- | :--- | :--- | :--- | | **Consolidated Income Statement** | | | | | Revenue | 2,123,141 | 3,140,900 | -32.4% | | Gross Profit | 270,165 | 363,120 | -25.6% | | Operating Profit | 15,905 | 90,921 | -82.5% | | (Loss)/Profit for the period | (17,325) | 66,420 | Turned from Profit to Loss | | (Loss)/Profit attributable to owners of the parent | (8,107) | 86,261 | Turned from Profit to Loss | | Basic (Loss)/Earnings per share (HKD) | (0.0024) | 0.0252 | Turned from Profit to Loss | | **Financial Position Statement** | **As of June 30, 2020** | **As of December 31, 2019** | **Change from Year-End** | | Total Assets | 9,074,620 | 8,767,405 | +3.5% | | Total Liabilities | 6,296,742 | 5,929,235 | +6.2% | | Total Equity | 2,777,878 | 2,838,426 | -2.1% | | Net Current Liabilities | (286,757) | (1,173,197) | -75.6% | | **Cash Flow Statement** | | | | | Net cash flows from operating activities | 391,488 | 203,782 | +92.1% | | Net cash flows used in investing activities | (238,486) | (140,589) | +69.6% | | Net cash flows from financing activities | 299,623 | 188,489 | +59.0% | [Notes to Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment operations, and significant transactions, including a bargain purchase gain from Ningbo Dameng acquisition and a deemed disposal loss from Xinsheng Mining, while addressing net current liabilities through operational adjustments and loan renewals - As of June 30, 2020, the Group's net current liabilities were **HKD 287 million**. Directors believe the financial statements are appropriately prepared on a going concern basis, considering future liquidity and measures like product portfolio restructuring, cost control, and bank loan renewals[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) 2020 H1 Segment Results (Unit: HKD Thousand) | Business Segment | External Sales | Segment Result | | :--- | :--- | :--- | | Manganese Ore Mining (China & Gabon) | 46,903 | 26,471 | | Electrolytic Manganese Metal & Alloy Materials Production (China) | 1,518,711 | 97,028 | | Battery Materials Production (China) | 323,335 | 115,902 | | Other Businesses (China & Hong Kong) | 234,192 | (97,344)* | - The loss in the Other Businesses segment primarily includes a non-cash loss of **HKD 92.38 million** from the deemed disposal of partial equity in an associate (Xinsheng Mining)[37](index=37&type=chunk)[49](index=49&type=chunk) - On March 31, 2020, the Group further acquired a **65.17%** interest in Ningbo Dameng, making it a wholly-owned subsidiary. This acquisition resulted in a bargain purchase gain of **HKD 69.41 million**[101](index=101&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [Management Discussion and Analysis](index=39&type=section&id=Management%20Discussion%20and%20Analysis) [Financial and Business Review](index=39&type=section&id=Financial%20and%20Business%20Review) H1 2020 saw revenue decline by 32.4% and operating profit by 82.5% due to COVID-19 and lower EMM prices, but the company strategically acquired Ningbo Dameng, controlled capital expenditure, and optimized debt structure, resulting in a net loss of HKD 8.1 million after significant non-cash items - Due to COVID-19, the electrolytic manganese metal market remained unfavorable since Q4 2019, with average selling price decreasing by **21.0%** to **HKD 10,700 per tonne** in H1 2020, and gross margin falling to **15.4%**[148](index=148&type=chunk) - The company continued to expand its battery materials business, completing the acquisition of Ningbo Dameng in March 2020, making it a wholly-owned subsidiary, aiming to shift its product portfolio towards higher-margin battery materials[149](index=149&type=chunk) - The company implemented various measures to address the severe situation, including strict control over capital expenditure, optimizing loan structure to increase the proportion of long-term loans, implementing production cost reduction plans, and continuing R&D for battery materials products[151](index=151&type=chunk)[152](index=152&type=chunk) - Two significant one-off non-cash items were recorded during the period: 1) a deemed disposal loss of approximately **HKD 92.4 million** due to dilution of equity from not participating in the rights issue of associate Xinsheng Mining; and 2) a bargain purchase gain of **HKD 69.4 million** from the further acquisition of Ningbo Dameng[154](index=154&type=chunk) [Segment Performance Analysis](index=41&type=section&id=Segment%20Performance%20Analysis) Segment performance varied, with manganese ore mining and EMM segments experiencing revenue and profit declines due to lower prices, while the battery materials segment saw significant sales and profit growth driven by the Huayuan Manganese acquisition, and other businesses sharply reduced trading - **Manganese Ore Mining segment**: Revenue decreased by **23.4%** to **HKD 46.9 million** and segment profit decreased by **29.1%** to **HKD 26.5 million** due to lower manganese ore selling prices caused by the pandemic[161](index=161&type=chunk)[162](index=162&type=chunk) - **Electrolytic Manganese Metal and Alloy Materials segment**: Despite a **77.3%** increase in ferrosilicon manganese alloy sales, the average selling price of electrolytic manganese metal, the main product, fell by **21.0%**, leading to a **28.9%** decrease in segment gross profit contribution to **HKD 172 million** and a **41.8%** decrease in segment profit[164](index=164&type=chunk)[165](index=165&type=chunk) - **Battery Materials Production segment**: Benefited from the acquisition of Huayuan Manganese factory, sales of electrolytic manganese dioxide significantly increased by **82.5%**, driving a **10.2%** increase in segment gross profit contribution to **HKD 79.9 million**. Coupled with the bargain purchase gain, segment profit increased by **108.2%** to **HKD 116 million**[168](index=168&type=chunk)[169](index=169&type=chunk) - **Other Businesses segment**: To monitor credit risk, the company significantly reduced its trading business, leading to an **80.2%** year-on-year decrease in segment revenue[170](index=170&type=chunk) [Liquidity and Financial Resources](index=47&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2020, the Group's net current liabilities significantly reduced to HKD 287 million from HKD 1.17 billion, improving liquidity ratios, while total borrowings stood at HKD 4.57 billion, with a net gearing ratio of 110.4%, supported by bank loan renewal commitments Key Financial Ratios | Ratio | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Current Ratio | 0.93 | 0.76 | | Quick Ratio | 0.80 | 0.66 | | Net Gearing Ratio | 110.4% | 107.7% | - Net current liabilities significantly decreased from **HKD 1.173 billion** at the end of 2019 to **HKD 287 million**, primarily due to the company's efforts to improve its borrowing structure with more long-term bank loans[194](index=194&type=chunk) - To address liquidity risk, the Group has obtained written confirmations from several Chinese banks agreeing to renew short-term loans totaling **HKD 844 million**[203](index=203&type=chunk) [Future Development and Outlook](index=52&type=section&id=Future%20Development%20and%20Outlook) The Group plans to consolidate its leading position in battery materials, cautiously increase Gabon ore production, focus on long-term financing to improve capital structure, and prioritize liquidity management amidst a challenging business environment - Consolidate its leading position in battery materials production, continue technology R&D, and expand product application in electric vehicles and other power tools[214](index=214&type=chunk) - Prudently increase Gabon ore production, leveraging opportunities from reduced market supply due to border closures in some supplier countries, ensuring stable production and export[216](index=216&type=chunk) - Financing strategy will focus more on long-term financing to improve liquidity and capital structure, and consider equity financing to reduce the gearing ratio[217](index=217&type=chunk) - The business environment is expected to remain severe for the next one to two years, and the Group will place extreme emphasis on liquidity management to ensure ample working capital for business operations[218](index=218&type=chunk) [Human Resources Report](index=54&type=section&id=Human%20Resources%20Report) [Employee Profile and Training](index=54&type=section&id=Employee%20Profile%20and%20Training) As of June 30, 2020, the Group employed 7,090 staff, primarily in mainland China, with a stable turnover rate of 3.16%, and emphasized comprehensive training programs for all levels to enhance employee quality and foster mutual growth Employee Profile | Metric | June 30, 2020 | June 30, 2019 | | :--- | :--- | :--- | | Total Employees | 7,090 | 7,407 | | Employee Turnover Rate | 3.16% | 2.85% | - The company values employee training, providing various training programs for all levels of employees in H1 2020, with **85%** of senior management trained and an average of **47 hours** of training per employee[227](index=227&type=chunk)[228](index=228&type=chunk) [Environmental, Social and Governance Report](index=57&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [ESG Overview and Key Performance](index=57&type=section&id=ESG%20Overview%20and%20Key%20Performance) The Group integrates ESG management into its operations, with the Board responsible for ESG strategy, focusing on safety, environmental protection, employee development, and social welfare, reporting 6 work-related injuries and HKD 513,000 in donations in H1 2020 2020 H1 Key ESG Performance Indicators | Key Area | Key Performance Indicator | H1 2020 | H1 2019 | | :--- | :--- | :--- | :--- | | Safety Production & Labor Protection | Fatalities | 0 | 1 | | | Work-related Injuries | 6 | 4 | | Energy Saving & Environmental Protection | Total Electricity Consumption (Thousand kWh) | 1,132,671 | 891,935 | | | Total Water Consumption (Tonnes) | 2,479,022 | 2,222,289 | | | Total GHG Emissions (Tonnes) | 25 | 16 | | Establishing Excellent Operating System | Number of Product Complaints Received | 0 | 4 | | | Number of Corruption-related Whistleblower Cases | 0 | 0 | | Social Welfare | Donation Amount (HKD) | 513,000 | 523,355 | - The Group categorizes significant ESG management matters into four aspects: safety production and labor protection; energy saving and environmental protection; establishing an excellent operating system, employee training and growth; and social welfare, living base, and cultural and artistic development[231](index=231&type=chunk) [Manganese Ore Resources and Reserves Summary](index=71&type=section&id=Manganese%20Ore%20Resources%20and%20Reserves%20Summary) [Resource Reserves and Mining Activities](index=71&type=section&id=Resource%20Reserves%20and%20Mining%20Activities) As of June 30, 2020, the Group's total manganese ore resources were 115.49 million tonnes and reserves were 90.53 million tonnes, slightly reduced by mining, with increased overall mining output and downstream production of EMM, ferrosilicon manganese alloy, and EMD Manganese Ore Resources and Reserves Summary (As of June 30, 2020) | Category | Tonnes (Million Tonnes) | | :--- | :--- | | Total Manganese Ore Resources | 115.49 | | Total Manganese Ore Reserves | 90.53 | 2020 H1 Main Mine Mining Output (Thousand Tonnes) | Mine Area | 2020 H1 | 2019 H1 | | :--- | :--- | :--- | | Daxin Manganese Mine | 928 | 854 | | Tiandeng Manganese Mine | 227 | 60 | | Changgu Manganese Mine | 97 | 84 | | Bembélé Manganese Mine | 845 | 795 | 2020 H1 Main Downstream Product Output (Thousand Tonnes) | Product | 2020 H1 | 2019 H1 | | :--- | :--- | :--- | | Electrolytic Manganese Metal | 94.2 | 88.8 | | Ferrosilicon Manganese Alloy | 90.2 | 51.9 | | Electrolytic Manganese Dioxide | 43.0 | 40.8 | [Other Information](index=79&type=section&id=Other%20Information) [Corporate Governance and Shareholder Equity](index=79&type=section&id=Corporate%20Governance%20and%20Shareholder%20Equity) The company largely complied with corporate governance codes, with a noted deviation where Mr. Guo Aimin holds both Chairman and CEO roles, and disclosed major shareholder CITIC Group's 43.46% indirect stake, with no listed securities purchased, redeemed, or sold during the period - The company deviated from Corporate Governance Code provision A.2.1, where Mr. Guo Aimin holds both Chairman and Chief Executive Officer positions. The Board believes this arrangement is optimal for the company during challenging times and will continuously review it[326](index=326&type=chunk)[327](index=327&type=chunk) - As of June 30, 2020, CITIC Group Corporation Limited indirectly held **1,490,026,000 shares**, representing **43.46%** of the issued share capital, through a series of controlled corporations[333](index=333&type=chunk)[334](index=334&type=chunk) - The Audit Committee has reviewed the unaudited interim results for the period and has no disagreements[340](index=340&type=chunk)

CITIC Dameng Holdings Limited 中信大猛控股有限公司* (於百慕達註冊成立之有限公司) 股份代號: 1091 * 僅供議別 年 報 2019 目錄 | --- | --- | |---------|--------------------------| | | | | 2-3 | 公司資料 | | | 五年財務概要 | | 5-7 | 主席報告 | | 8-19 | 董事會報告 | | 20-42 | 管理層討論及分析 | | 43-52 | 礦產資源及採礦報告 | | 53-56 | 董事及高級管理人員簡介 | | 57-72 | 企業管治報告 | | 73-77 | 人力資源報告 | | 78-93 | 環境、社會及管治報告 | | 94-96 | 股權分析及權益人資料 | | 97-102 | 獨立核數師報告 | | 103 | 綜合損益及其他全面收益表 | | 104-105 | 綜合財務狀況表 | | 106 | 綜合權益變動報表 | | 107-108 | 綜合現金流量表 | | 109-194 | 財務報表附註 | | 195 | 過往表現及前瞻性陳述 | | 196 ...

CITIC Dameng Holdings Limited 中信大猛控股有限公司* (於百慕達註冊成立之有限公司) 股份代號 : 1091 中期報告 19 * 僅供鐵別 目錄 頁次 2 公司資料 財務業績 | --- | --- | |-------|------------------------------------------| | | | | 3 | 中期簡明綜合損益及其他全面收益表 | | 4-5 | 中期簡明綜合財務狀況表 | | 6-7 | 中期簡明綜合權益變動報表 | | 8 | 中期簡明綜合現金流量表 | | 9-40 | 中期簡明綜合財務報表附註 | | | 其他資料 | | 41-55 | 管理層討論及分析 | | 56-58 | 人力資源報告 | | 59-70 | 環境、社會及管治報告 | | 71-78 | 我們的錳礦資源摘要及我們的錳礦石儲量摘要 | | 79 | 企業管治常規守則 | | 79 | 董事進行證券交易的標準守則 | | 79 | 董事及最高行政人員在股份及相關股份的權益 | | 80 | 購股權計劃 | | 81 | 主要股東及其他人士在股份及相關股份的權益 | ...

Financial Performance - In 2018, the company's revenue reached HKD 6,736,228 thousand, a 12.4% increase from HKD 5,991,436 thousand in 2017[8] - The company's profit before tax was HKD 343,985 thousand, compared to HKD 146,622 thousand in the previous year, marking a significant increase[8] - The net profit attributable to the owners of the parent company was HKD 330,931 thousand, up from HKD 140,851 thousand in 2017, reflecting a growth of 134%[8] - The gross profit for 2018 was HKD 852,373,000, up 52.3% from HKD 559,753,000 in 2017, with a gross margin of 12.7%, an increase of 3.4% from 9.3% in 2017[89][92] - Operating profit attributable to shareholders was HKD 308,644,000, representing a significant increase of 126.2% compared to HKD 136,434,000 in 2017[89] - The net profit for the year was HKD 336,855,000, a 138.3% increase from HKD 141,382,000 in 2017[89] - The company reported a pre-tax profit of HKD 343,985,000, which is 134.6% higher than HKD 146,622,000 in the previous year[89] - The company’s net profit attributable to shareholders for 2018 was HKD 330,900,000, an increase from HKD 140,900,000 in 2017, representing a growth of 134%[146] - Earnings per share for ordinary shareholders in 2018 was HKD 0.0965, compared to HKD 0.0411 in 2017, indicating a significant increase of 134%[147] Assets and Liabilities - Total assets increased to HKD 9,618,379 thousand in 2018, compared to HKD 8,752,162 thousand in 2017, representing a growth of 9.9%[8] - The company's non-current assets decreased to HKD 5,023,157 thousand from HKD 5,413,627 thousand in 2017, indicating a decline of 7.2%[8] - Current assets rose to HKD 4,595,222 thousand, a 37.6% increase from HKD 3,338,535 thousand in 2017[8] - Total liabilities increased to HKD 6,451,896 thousand, up from HKD 5,785,063 thousand in 2017, which is a rise of 11.5%[8] - As of December 31, 2018, the net debt ratio decreased to 96.0% from 99.8% in 2017[94] - The company's net current liabilities significantly decreased to HKD 371.6 million as of December 31, 2018, down from HKD 1,393.6 million in 2017, due to improved operating profit and efforts to enhance the maturity structure of borrowings[158] Revenue Sources - The revenue from battery materials products saw a substantial increase in 2018, establishing the company as an industry leader and becoming an important income source beyond EMM business[15] - The revenue from the electrolytic manganese and alloy materials production segment was HKD 3,429.2 million, with a gross margin of 33.2%[106] - The revenue from battery materials production rose by 32.1% to HKD 682.1 million in 2018, compared to HKD 516.3 million in 2017[99] - The average price of electrolytic manganese increased by 20.1% to HKD 14,613 per ton in 2018, compared to HKD 12,166 per ton in 2017[99] - The overall manganese mining revenue decreased by 60.9% to HKD 213,300,000 in 2018, down from HKD 546,100,000 in 2017[113] Strategic Initiatives - The company completed the acquisition of 100% equity in Hu Yuan Manganese, significantly enhancing production capacity for electrolytic manganese dioxide and providing immediate profit contributions[18] - The Gabon project increased production capacity, achieving manganese ore sales of 740,000 tons, contributing significantly to the group's revenue[14] - The company plans to actively seek and prudently evaluate quality investment projects that align with its development strategy to further expand its business scale and asset base[18] - The company plans to expand its product chain with lithium manganese oxide, a downstream product of electrolytic manganese dioxide[122] - The company plans to improve its liquidity and capital structure through various financing methods, with a focus on long-term financing to reduce debt ratios and potentially expand its shareholder base[187] Market and Competitive Position - The company emphasized resource optimization and product structure improvement to enhance market competitiveness and value[12] - The company is committed to continuous improvement in production processes to reduce energy consumption and increase efficiency[13] - The company’s management emphasizes market-oriented strategies, continuously adjusting production, sales, and trading strategies based on market dynamics[18] - The company expects continued demand for electrolytic manganese and alloys due to rising steel production in China, despite competitive market pressures[185] Shareholding and Governance - The company has a shareholding structure where Mr. Li Weijian holds 15,000,000 stock options, representing approximately 0.44% of the issued share capital[52] - Mr. Chen Jiqiu holds 9,000,000 stock options, accounting for about 0.26% of the issued share capital[52] - The company has established a share option scheme aimed at incentivizing qualified individuals, including full-time and part-time employees, to contribute to the company[54] - The company’s remuneration policy for directors is designed to provide competitive market salaries to attract and retain talent[47] - The board of directors has undergone changes, with Mr. Wang Chunxin appointed on October 21, 2018, following the resignation of Mr. Mo Shijian on July 21, 2018[44] Compliance and Risk Management - The company maintained compliance with the listing rules regarding continuing connected transactions throughout 2018[84] - The independent non-executive directors confirmed that the continuing connected transactions were conducted on normal commercial terms and in the best interest of shareholders[79] - The auditor, Ernst & Young, provided an unqualified opinion on the company's continuing connected transactions, affirming their compliance with relevant regulations[79] - The company has a non-competition agreement with CITIC Resources, ensuring no direct or indirect competition in related businesses[50] - The company has implemented a strategy to mitigate foreign exchange risks by entering into forward currency contracts for significant procurement agreements[183] Community and Social Responsibility - The company made charitable donations totaling HKD 688,000 during the year, an increase from HKD 304,000 in the previous year[38]