Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][2] Core Views - The company has shown strong medium to long-term growth potential, with a projected increase in copper production capacity to approximately 300,000 tons by 2030, achieving an average annual compound growth rate of about 8% [2][10] - The company is expected to benefit from rising copper prices, which will enhance profit margins due to stable production costs from its own mines [2][10] Financial Performance and Forecast - For the first three quarters of 2024, the company is estimated to achieve a net profit attributable to shareholders of approximately $314 million, representing a year-on-year increase of about 23% [2][6] - Revenue forecasts for 2024, 2025, and 2026 are $4.177 billion, $4.394 billion, and $4.614 billion respectively, with year-on-year growth rates of 15.8%, 5.2%, and 5.0% [2][10] - The net profit attributable to shareholders for the same years is projected to be $421 million, $487 million, and $529 million, with growth rates of 51.5%, 15.9%, and 8.5% respectively [2][10] - The diluted earnings per share (EPS) are expected to be $0.11, $0.12, and $0.14 for 2024, 2025, and 2026 [2][10] Production and Operational Insights - The company produced approximately 95,900 tons of cathode copper in the first three quarters of 2024, a year-on-year decrease of about 13%, while its own mines produced about 64,000 tons, an increase of about 3% [2][6] - The total production of sulfuric acid reached approximately 776,300 tons, reflecting a year-on-year increase of about 10% [2][6] - The company has four ongoing and planned mining projects that are expected to add an annual production capacity of 130,000 tons of copper once fully operational [2][10]

Investment Rating - The report maintains a "Buy" rating for China Nonferrous Mining (1258.HK) [1][3]. Core Views - The company achieved a net profit attributable to shareholders of USD 314 million in the first three quarters of 2024, representing a year-on-year increase of approximately 23%. In Q3 alone, the net profit was USD 95 million, up 38% year-on-year but down 30% quarter-on-quarter [1]. - The increase in profit is primarily attributed to the year-on-year rise in copper prices, which reached CNY 75,200 per ton in Q3 2024, a 9.5% increase year-on-year and a 6.1% increase quarter-on-quarter. However, production was affected by power shortages, leading to a shortfall in meeting annual production guidance [1]. - The company produced 95,900 tons of cathode copper in the first three quarters, a decrease of about 13% year-on-year, achieving approximately 69% of its annual target. The production of crude copper and anode copper was about 287,000 tons, a year-on-year increase of 3%, achieving around 70% of the annual target [1]. - The report highlights both organic growth and external acquisitions as key growth drivers. The company is advancing projects in Africa and has potential acquisitions in the pipeline [1]. Financial Forecasts - The company is expected to achieve net profits of USD 395 million, USD 436 million, and USD 513 million for the years 2024, 2025, and 2026, respectively. The corresponding EPS is projected to be USD 0.10, USD 0.11, and USD 0.13 [2][4]. - The P/E ratios based on the closing price on October 22, 2024, are projected to be 7x for 2024, 7x for 2025, and 6x for 2026 [2][4]. Financial Metrics - The total revenue for 2023 is forecasted at USD 3.606 billion, with expected growth rates of -11.9% for 2023, 12.4% for 2024, 15.9% for 2025, and 5.5% for 2026 [2][6]. - The net profit margin is projected to improve from 7.7% in 2023 to 10.37% in 2026, indicating a positive trend in profitability [6]. - The company's total assets are expected to grow from USD 3.820 billion in 2023 to USD 6.239 billion by 2026, reflecting strong growth in asset base [4][6].

Financial Performance - In the first half of 2024, the company achieved revenue of $2.0098 billion, a year-on-year increase of 9.0%[17] - The net profit attributable to the company's shareholders for the first half of 2024 was $219.1 million, representing an 18.0% increase compared to the previous year[17] - The sales revenue for copper and anode copper in the first half of 2024 reached $1,361.5 million, a 22.5% increase compared to $1,111.6 million in the same period of 2023[48] - The gross profit for the first half of 2024 was $512.0 million, a decrease of 1.8% from $521.4 million in the same period of 2023, with a gross margin of 25.5% down from 28.3%[52] - The net cash inflow from operating activities for the first half of 2024 was $413.1 million, a decrease of $50.8 million from $463.9 million in the same period of 2023[57] - The group reported a profit attributable to owners of the company of $219.1 million for the first half of 2024, an increase of 18.0% from $185.7 million in the same period of 2023[56] - Basic and diluted earnings per share for the first half of 2024 were $5.75, compared to $4.97 for the same period in 2023, representing an increase of approximately 15.7%[107] Production and Operations - The production of crude copper and anode copper reached 159,971 tons, an increase of 10.5% year-on-year[18] - The production of cathode copper decreased by 12.8% to 62,450 tons in the first half of 2024[18] - The company produced 548,699 tons of sulfuric acid, which is a 12.5% increase year-on-year[18] - The company’s copper smelting operations produced 133,943 tons of copper (including 36,507 tons from processing external copper products), a year-on-year increase of 25.7%[26] - The production of cathode copper at the company’s wet smelting operations decreased by 24.0% to 2,826 tons, attributed to lower ore grades and reduced external copper concentrate purchases[27] - The company faced challenges such as power shortages and reduced ore grades impacting production across various operations[28] Financial Position and Investments - The company raised approximately HKD 1 billion through a placement in the Hong Kong market, strengthening its financial foundation for future projects[13] - The total assets as of June 30, 2024, amounted to $4,186,333 thousand, an increase from $3,819,513 thousand as of December 31, 2023, reflecting a growth of about 9.6%[111] - The total liabilities rose to $1,395,820 thousand from $1,332,910 thousand, indicating an increase of about 4.7%[111] - The total investment for the new Luansha mine project is estimated at $513.0 million, with a production scale of 2.2 million tons per year and copper concentrate output of 43,500 tons per year[37] - The company plans to use the net proceeds from a recent share placement for project construction to increase copper concentrate production capacity and for general working capital[73] Market and Economic Conditions - The company anticipates that international copper prices may remain high due to limited supply growth and gradual destocking[15] - International copper prices have decreased by nearly 20% from the peak in the second quarter, posing risks to the company's operations in the second half of the year[90] - Demand from new energy, new economy, and emerging markets is expected to support copper prices in a high volatility range[90] Community and Environmental Engagement - The company is committed to environmental protection, actively engaging in energy conservation and pollution monitoring to ensure clean production[88] - The company has actively participated in local community development, contributing to municipal construction and vocational education, receiving high praise from local governments and residents[89] Employee and Management Information - The total employee cost for the six months ending June 30, 2024, was approximately $52.3 million, a decrease from $58.6 million for the same period in 2023[83] - The company employs a total of 8,477 employees, with 882 being Chinese nationals and 7,595 being local employees from Zambia and the Democratic Republic of the Congo[83] - The company emphasizes a "safety first" approach, maintaining stable safety production conditions throughout the first half of 2024[86] Future Plans and Strategies - The company plans to accelerate the construction of expansion projects and aims for breakthroughs in external mergers and acquisitions in the second half of 2024[15] - The company plans to complete the geological survey for the Southeast ore body by October 2024, with equipment procurement expected by March 2025[40] - The company plans to sign contracts exceeding $30.0 million in the second half of 2024 for the Luansha project[37] Risks and Challenges - The company faces market risks primarily from commodity price fluctuations, particularly in copper, and has implemented hedging strategies through futures contracts[65] - The company has implemented foreign exchange hedging activities to mitigate risks associated with operations in Zambia and the Democratic Republic of Congo[66]

Financial Performance - In the first half of 2024, the company achieved revenue of $2,009.8 million, an increase of 9.0% compared to $1,843.8 million in the same period of 2023[3] - The net profit for the first half of 2024 was $303.2 million, representing a 14.9% increase from $264.0 million in the first half of 2023[3] - Profit attributable to the owners of the company was $219.1 million, up 18.0% from $185.7 million in the same period last year[3] - Basic earnings per share for the first half of 2024 were approximately 5.75 cents, a 15.7% increase from 4.97 cents in the first half of 2023[3] - The company reported a gross profit of $511.96 million for the first half of 2024, slightly down from $521.38 million in the same period of 2023[6] - The gross profit for the first half of 2024 was $512.0 million, a decrease of 1.8% from $521.4 million in the first half of 2023[89] - The gross margin fell from 28.3% in the first half of 2023 to 25.5% in the first half of 2024[89] Dividends - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2024[4] - The company declared a final dividend of $0.029702 per share for the six months ended June 30, 2024, totaling $115.9 million, compared to $105.5 million for the same period last year[44] - The company did not recommend an interim dividend for the six months ended June 30, 2024, compared to no dividend in the same period of 2023[117] Assets and Liabilities - Total assets as of June 30, 2024, amounted to $4,186.3 million, compared to $3,819.5 million as of December 31, 2023[8] - The total liabilities as of June 30, 2024, were $1,395,820 thousand, compared to $1,332,910 thousand at the end of 2023, indicating an increase of 4.7%[24] - The company's equity attributable to owners increased to $2,069.7 million from $1,842.4 million at the end of 2023[8] - Cash and cash equivalents increased significantly to $1,027.8 million from $492.4 million at the end of 2023[7] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2024, was $413,118 thousand, a decrease of 10.9% compared to $463,915 thousand in the same period of 2023[12] - The cash flow from investing activities showed a significant improvement, with a net cash inflow of $26,765 thousand compared to a net outflow of $172,808 thousand in the previous year[12] - The net cash inflow from operating activities was $413.1 million, down from $463.9 million in the first half of 2023[96] - In the first half of 2024, the group's financing activities generated a net cash inflow of $94.9 million, an increase of $215.3 million compared to a net cash outflow of $120.4 million in the same period of 2023[99] Production and Sales - The total production of copper and anode copper for the first half of 2024 was 159,971 tons, a 10.5% increase year-on-year[51] - The production of cathode copper decreased by 12.8% year-on-year to 62,450 tons during the same period[51] - Revenue from copper and anode copper sales reached $1,361.5 million, a growth of 22.5% from $1,111.6 million in the first half of 2023[82] - The sales revenue of cathode copper decreased by 9.3% to $517.2 million from $570.4 million in the previous year[82] Risks and Challenges - The company faces various risks in the second half of 2024, including a nearly 20% drop in international copper prices from the second quarter peak and ongoing geopolitical uncertainties[113] Investments and Projects - The new mining project has a total investment of approximately $513.0 million, with $100.0 million allocated for drainage and $413.0 million for construction recovery, aiming for an annual production scale of 2.2 million tons of copper concentrate[71] - The oxygen production system upgrade project aims to restore production levels to 4,000 standard cubic meters per hour and reduce energy consumption, with a total investment of $2.6 million[70] - The copper smelting project includes 14 sub-projects, with 9 already under construction and an overall investment completion ratio of 38.9%, totaling $19.3 million[74] Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal controls, ensuring compliance with applicable accounting standards and regulations[126] - The company has complied with the Corporate Governance Code as per the Listing Rules during the six months ending June 30, 2024[125] - All directors confirmed compliance with the standards of conduct regarding securities trading during the six months ending June 30, 2024[128]

证券研究报告 | 2024年06月12日 中国有色矿业（01258.HK） 优于大市 矿山年产铜接近 17 万吨，中长期成长性值得期待 核心观点 公司研究·海外公司深度报告 公司是全球领先的铜生产商：公司深耕赞比亚和刚果(金)多年，专注经营铜 有色金属·工业金属 开采、选矿、湿法冶炼、火法冶炼及销售的垂直综合业务。公司于2023年 证券分析师：刘孟峦 证券分析师：杨耀洪 生产粗铜及阳极铜28.57万吨，生产阴极铜14.24万吨；另外，公司致力于 010-88005312 021-60933161 liumengluan@guosen.com.cn yangyaohong@guosen.com.cn 矿山资源开发，自有矿山产铜作为公司最核心的业务，公司于2023年自有 S0980520040001 S0980520040005 矿山产铜合计约16.93万吨，同比增加12.01%，原料自给率39.55%。公司 证券分析师：焦方冉 重视投资者回报，2023年拟派发现金股利约1.11亿美元，分红率处同行业 021-60933177 jiaofangran@guosen.com.cn 领先水平，也是连续4年保持在40% ...

Financial Data and Key Indicator Changes - The company's revenue for 2023 was $3,606 million, a decrease of 11.9% year-over-year from $4,095 million in 2022. Projected revenues for 2024, 2025, and 2026 are $4,265 million, $4,494 million, and $4,708 million respectively, indicating a recovery and growth trend [8][12] - Net profit for 2023 was $278 million, a slight increase of 5.3% from $264 million in 2022. Forecasted net profits for the next three years are $343 million, $377 million, and $445 million, reflecting a positive growth outlook [8][12] - The gross margin improved from 19.7% in 2022 to 24.3% in 2023, with expectations to maintain around 24.2% to 27.3% in the following years [8][12] Business Line Data and Key Indicator Changes - Copper production from the company's own mines increased significantly from 99,000 tons in 2020 to 169,000 tons in 2023, with a compound annual growth rate of 20%. Future projects are expected to further enhance production capacity [5][8] - The company’s copper smelting production has steadily increased, with 2023 outputs of 286,000 tons of crude copper, 142,000 tons of anode copper, and 955,000 tons of sulfuric acid, marking growth rates of 11%, 23%, and 20% respectively since 2020 [8][9] Market Data and Key Indicator Changes - The company is focusing on expanding its copper smelting capacity in Africa, with key smelting facilities including Qianbixi and Luallaba. The production from these facilities is expected to contribute significantly to revenue growth [7][9] - The company’s market positioning is strengthened by its vertical integration in the copper industry, which is expected to enhance profitability as self-sufficient production increases [7][9] Company Strategy and Development Direction - The company aims to expand its own copper mining capacity and enhance its smelting operations in Africa, which aligns with its strategy to become a leading player in the copper and cobalt resource sector [5][7] - Future projects include the Baruba open-pit mine and the revival of the Gangbof West ore body, which are expected to significantly increase production capacity [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in copper prices and the expected increase in production capacity, which should improve profitability in the coming years [7][9] - The company is aware of potential risks, including slower-than-expected expansion and rising raw material costs, but remains confident in its strategic direction and market demand [7][9] Other Important Information - The company has a projected EPS of $0.09, $0.10, and $0.11 for 2024, 2025, and 2026 respectively, with a target PE ratio of 12-13 times for 2024, translating to a fair value range of HKD 8.10-8.78 per share [7][8] - The company maintains a strong balance sheet with a projected debt-to-equity ratio decreasing from 34.9% in 2023 to 28.07% in 2026, indicating improved financial stability [12] Q&A Session Summary Question: What are the expectations for copper production in the coming years? - The company anticipates its own copper production to reach 169,000 tons in 2024, with further increases expected in subsequent years as new projects come online [5][8] Question: How does the company plan to mitigate risks associated with raw material costs? - Management indicated that they are closely monitoring market conditions and are implementing cost-control measures to manage potential increases in raw material prices [7][9] Question: What is the outlook for the copper smelting business? - The smelting business is expected to benefit from increased self-sufficiency as production from owned mines ramps up, which should enhance profitability [7][9]

Investment Rating - The report assigns an "Outperform" rating for the company, indicating an expectation of relative performance exceeding the market benchmark by over 10% within six months of the report's release [3]. Core Insights - The company is positioned as a state-owned enterprise focused on overseas copper and cobalt resource development, primarily in Africa, with a vertical integration strategy across the copper industry chain [1][4]. - The company has experienced significant growth in its self-owned copper mining capacity, with production increasing from 99,000 tons in 2020 to 169,000 tons in 2023, reflecting a compound annual growth rate of 20% [2][4]. - The report anticipates that the company's copper production from its own mines will reach 169,000 tons in 2024, 173,000 tons in 2025, and 198,000 tons in 2026 [2][4]. Summary by Sections Financial Performance - The company reported revenues of $3,606 million in 2023, with a projected increase to $4,265 million in 2024, representing a year-on-year growth of 18.3% [5][9]. - Net profit for 2023 was $278 million, with expectations of $343 million in 2024, indicating a growth rate of 23.4% [5][9]. - The earnings per share (EPS) are projected to be $0.09 in 2024, $0.10 in 2025, and $0.11 in 2026 [4][9]. Production and Capacity Expansion - The company is expanding its copper smelting capacity in Africa, with key smelting operations including Qianbixi and Luallaba, which have shown steady production growth from 2020 to 2023 [4][5]. - The report highlights that the company’s copper smelting production in 2023 was 286,000 tons, with expectations for increased self-sufficiency in smelting operations as mining capacity expands [4][5]. Valuation and Forecast - The report estimates a price-to-earnings (P/E) ratio of 12-13 times for 2024, translating to a target price range of HKD 8.10 to HKD 8.78 per share [4][5]. - The projected gross margin is expected to improve from 24.3% in 2023 to 27.3% by 2026, reflecting enhanced profitability [5][9]. Comparative Analysis - The report includes a comparative valuation table showing the company's market capitalization and earnings per share relative to peers, indicating a favorable position within the industry [8].

中国有色矿业（1258.HK）2023年年报&2024年一季度生产报告点评 自产铜持续放量，内生+外延齐头并进 2024年05月12日 ➢ 公司发布2023年年报和2024年一季度生产报告。2023年，公司实现营 推荐 维持评级 业收入 36.06 亿美元，毛利润 8.77 亿美元，同比上升 8.7%，归母净利润 2.78 当前价格： 7.59港元 亿美元，同比上涨4.2%。全年综合铜产量近52万吨，其中自有矿山铜约17万 金属吨，同比增长12%。 [Table_Author] ➢ 2023年归母净利润同比上涨4.2%。①2023年毛利同比增长0.7亿美元， 主要得益于自产铜产量增长。分板块来看，其中增利项主要是粗铜及阳极铜（同 比+1.32亿美元，得益于自产铜量的增长），铜产品代加工（同比+0.21亿美元）， 减利项主要是氢氧化钴含钴（同比-0.44亿美元，主要由于钴价大幅下跌），阴极 铜（同比-0.19亿美元），液态二氧化硫（同比-0.14亿美元），硫酸（同比-0.06 亿美元）。②汇兑损失拖累业绩。2023年公司其他收益为亏损8962.9万美元， 分析师 邱祖学 同比亏损走阔 70.9 百万美元，主要原 ...

中国有色矿业（1258.HK）2023年年报&2024年一季度生产报告点评 自产铜持续放量，内生+外延齐头并进 2024年05月12日 ➢ 公司发布2023年年报和2024年一季度生产报告。2023年，公司实现营 推荐 维持评级 业收入 36.06 亿美元，毛利润 8.77 亿美元，同比上升 8.7%，归母净利润 2.78 当前价格： 7.59港元 亿美元，同比上涨4.2%。全年综合铜产量近52万吨，其中自有矿山铜约17万 金属吨，同比增长12%。 [Table_Author] ➢ 2023年归母净利润同比上涨4.2%。①2023年毛利同比增长0.7亿美元， 主要得益于自产铜产量增长。分板块来看，其中增利项主要是粗铜及阳极铜（同 比+1.32亿美元，得益于自产铜量的增长），铜产品代加工（同比+0.21亿美元）， 减利项主要是氢氧化钴含钴（同比-0.44亿美元，主要由于钴价大幅下跌），阴极 铜（同比-0.19亿美元），液态二氧化硫（同比-0.14亿美元），硫酸（同比-0.06 亿美元）。②汇兑损失拖累业绩。2023年公司其他收益为亏损8962.9万美元， 分析师 邱祖学 同比亏损走阔 70.9 百万美元，主要原 ...

Financial Performance - In 2023, the company achieved a revenue of $3.606 billion, with a gross profit of $877 million, representing a year-on-year increase of 8.7%[8]. - The net profit attributable to shareholders was $278 million, up 4.2% year-on-year, with a total copper production of nearly 520,000 tons, including approximately 170,000 tons from self-owned mines, a 12.0% increase year-on-year[8]. - The group's total revenue for 2023 was $3,606.4 million, a decrease of 11.9% from $4,094.7 million in 2022[17]. - The profit attributable to the company's owners increased by 4.2% to $277.6 million in 2023, compared to $266.3 million in 2022[27]. - The gross profit for 2023 was $877.5 million, an increase of 8.7% from $807.2 million in 2022, with a gross margin rising from 19.7% to 24.3%[20]. - The sales volume of crude copper and anode copper was 284,784 tons in 2023, generating revenue of $2,220.2 million, which accounted for 61.6% of total revenue[15]. - The production of cathode copper reached 142,423 tons in 2023, a year-on-year increase of 1.2%, while the production of crude copper and anode copper decreased by 10.5% to 285,733 tons[13]. - The total production of copper and anode copper was 285,733 tons in 2023, a decrease of 10.5% compared to 319,398 tons in 2022[101]. - The production of cathode copper was 142,423 tons, a slight increase of 1.2% from 140,684 tons in 2022[101]. Production and Operations - The company aims to increase production from self-owned mines while advancing new projects, with significant progress in resource upgrades, including an additional copper resource of 1.18 million tons from the Luanshya No. 28 shaft project[10]. - The company is focusing on digitalization, intelligence, and green transformation in traditional industries to enhance production efficiency and reduce costs[10]. - The company plans to accelerate the layout of expansion projects, including the Kambishi Southeast Phase II and Luanshya No. 28 shaft projects, as key initiatives for stable progress[10]. - The company conducted supplementary exploration and deep exploration in 2023, updating resource quantities[60]. - The total ore mined in 2023 was 696,000 tons, with a copper grade of 0.97% for controlled resources[70]. - The total ore production from the Kambove main mine was 4.38 million tons in 2023, with an average copper grade of 2.63%[89]. - The total ore mined from the Barubado mine was 760,000 tons in 2023, with an adjusted copper grade of 0.3%[85]. - The company produced 955,360 tons of sulfuric acid, a decrease of 5.4% year-on-year[54]. - The company’s production of cobalt hydroxide was 1,520 tons, a decrease of 9.1% year-on-year[54]. Cash Flow and Investments - The net cash inflow from operating activities for 2023 was $589.3 million, a decrease of 24.7% compared to $782.5 million in 2022, primarily due to an increase in inventory and a decrease in accounts payable[29]. - The net cash outflow from investing activities for 2023 was $224.1 million, an increase of $148.4 million from $75.7 million in 2022, mainly due to increased investment in the Luanshya open-pit mining project and additional fixed deposits[30]. - The net cash outflow from financing activities for 2023 was $604.7 million, an increase of $25.7 million from $579.0 million in 2022, primarily due to repayment of bank loans[31]. - As of December 31, 2023, the group had cash and cash equivalents totaling $602.4 million, a decrease of $160.5 million from $762.9 million as of December 31, 2022[33]. - The total capital expenditure for 2023 was $136.9 million, an increase of $12.1 million from $124.8 million in 2022, mainly due to increased investment in the Luanshya open-pit mining project[45]. Market and Industry Outlook - The global copper supply is expected to remain tight, with geopolitical factors and community disputes affecting production, while demand from energy transition and infrastructure development is anticipated to support steady consumption growth[9]. - The company is optimistic about achieving significant growth in the coming years as resource upgrades and new production capacities are gradually released[10]. - The company has implemented a sales strategy combining long and short positions to mitigate commodity price risks[49]. - The company is actively engaged in market expansion and operational efficiency improvements[52]. Governance and Management - 高光夫 appointed as independent non-executive director and chairman of the audit committee on December 27, 2023[123]. - 關浣非 has extensive experience in the financial and insurance sectors, serving in various senior management positions[124]. - 楊大勇 appointed as president on December 27, 2023, with a focus on compliance management[127]. - 游波 appointed as chief financial officer on February 27, 2023, bringing 25 years of financial management experience[130]. - The company has maintained compliance with all corporate governance codes as of December 31, 2023, ensuring transparency and accountability in its operations[138]. - The company has experienced leadership changes, with the resignation of the financial director on February 27, 2023, and two vice presidents in March and November 2023, indicating a potential restructuring[134]. - The company emphasizes the importance of balancing stakeholder interests in its strategic decision-making processes[138]. - The company’s governance framework is designed to promote sustainable growth and enhance shareholder value[138]. Risk Management and Compliance - The company has established a comprehensive risk management and internal control system, with the board of directors responsible for overseeing its effectiveness[183]. - The audit committee is responsible for reporting any significant fraud or compliance issues to the board, ensuring transparency and accountability[184]. - The company has strengthened its risk management and internal control systems, focusing on high-quality development and implementing six efficiency-enhancing actions to mitigate external adverse factors[193]. - The company has established a risk prevention system to enhance risk identification and resolution capabilities, including updates to the risk compliance manual and specialized training for risk management and compliance[194]. - The company aims to improve its internal control structure and integrate risk management into all business processes as part of its ongoing development strategy[199]. Employee and Diversity Initiatives - The total employee cost for the year was approximately $130.1 million, an increase from $120.3 million in 2022[114]. - The company has a total of 8,683 employees as of December 31, 2023, down from 9,115 employees in the previous year[114]. - The company aims to appoint at least one female director by the end of 2024, achieving this goal with the appointment of the first female director on December 27, 2023[169]. - The Nomination Committee evaluates candidates based on qualifications, skills, experience, and gender to enhance the current board's composition[165]. - The board diversity policy considers various factors, including gender, age, cultural background, and professional experience, to support strategic goals[166].