Financial Performance - In the first half of 2022, the company achieved revenue of $2,206.9 million, an increase of 4.6% year-on-year[14]. - The net profit attributable to shareholders for the first half of 2022 was $196.2 million, a decrease of 17.7% year-on-year[14]. - The group's revenue for the first half of 2022 was $2,206.9 million, an increase of 4.6% year-on-year, while profit attributable to owners decreased by 17.7% to $196.2 million due to production declines and copper price volatility[18]. - The sales revenue from cathode copper was $639.9 million, a 36.7% increase from $468.2 million in the same period of 2021, driven by increased sales volume and average price[37]. - The gross profit for the first half of 2022 was $531.0 million, a decrease of 14.2% from $618.6 million in the same period of 2021, with a gross margin decline from 29.3% to 24.1%[40]. - The total profit for the six months ended June 30, 2022, was $293,358 thousand, reflecting a decrease from $348,220 thousand in the same period of 2021, a decline of 15.8%[93][94]. Production and Operations - The company produced 201,644 tons of crude copper and anode copper, a decrease of 4.3% year-on-year[15]. - The production of cathode copper reached 71,932 tons, an increase of 22.8% year-on-year[15]. - The production of cobalt hydroxide was 845 tons, a significant increase of 682.4% year-on-year[15]. - The group processed 36,602 tons of copper products, marking a 90.6% increase year-on-year, indicating strong demand for processing services[27]. - The production of sulfuric acid was 522,409 tons, a slight decrease of 0.6% compared to the previous year[27]. - The group achieved a production of 14,710 tons of cathode copper at the newly operational Kambove mine, contributing to overall output[26]. Financial Position - As of June 30, 2022, the group had cash and cash equivalents of $808.2 million, an increase of $201.5 million from $606.7 million as of December 31, 2021[46]. - The total inventory as of June 30, 2022, was $858.8 million, an increase of $10.5 million from $848.3 million as of December 31, 2021, primarily due to an increase in finished goods inventory[47]. - The debt ratio as of June 30, 2022, was 1.8%, significantly down from 16.9% as of December 31, 2021[56]. - Total assets as of June 30, 2022, increased to $4,328,049 thousand from $4,163,984 thousand at the end of 2021, reflecting a growth of 3.9%[84]. - Total liabilities rose to $2,037,655 thousand as of June 30, 2022, compared to $1,992,100 thousand at the end of 2021, marking an increase of 2.3%[84]. Market and Economic Outlook - The international copper price is expected to stabilize in the second half of the year, supported by strong demand from the power and new energy sectors[11]. - The International Copper Study Group (ICSG) forecasts a 4.3% increase in global refined copper production for 2022, with supply growth outpacing demand growth, leading to a decline in copper prices[69]. Corporate Governance and Social Responsibility - The board of directors has committed to maintaining high standards of corporate governance, ensuring effective oversight of legal cases, related transactions, and internal control risks[62]. - The group actively participates in community development and social responsibility initiatives, contributing to local economic growth through job creation and tax revenue[68]. - The group has implemented advanced environmental management practices to enhance resource recycling and pollution control[67]. Employee and Management Information - The group employed a total of 8,874 employees as of June 30, 2022, with 905 from China and 7,969 from Zambia and the Democratic Republic of Congo[63]. - Total employee costs for the six months ended June 30, 2022, were approximately $65.5 million, compared to $54.8 million for the same period in 2021, reflecting a year-over-year increase of 19.8%[63]. - Total compensation for directors and key management personnel was $499 thousand for the six months ended June 30, 2022, down from $632 thousand in the same period of 2021, representing a decrease of approximately 21%[147]. Investment and Capital Expenditure - The total capital expenditure for the first half of 2022 was $34.4 million, a decrease of $87.0 million from $121.4 million in the same period of 2021[49]. - The group has no significant investments or acquisitions during the six months ended June 30, 2022, and no plans for major investments or capital asset purchases[55]. Risk Management - The group faces market risks primarily from commodity price fluctuations, particularly copper, and has entered into futures contracts to mitigate these risks[51]. - The group operates in Zambia and the Democratic Republic of Congo, exposing it to foreign exchange risks, which it manages through hedging activities[52].

Financial Performance - In 2021, the company achieved a total revenue of $4,050.6 million, representing a 56.0% increase compared to 2020[15]. - The net profit for 2021 was $515.4 million, a significant increase of 161.7% year-on-year[13]. - The gross profit for 2021 was $1,085.0 million, up 72.4% from $629.4 million in 2020, with a gross margin increase from 24.2% to 26.8%[22]. - The company reported a net profit attributable to shareholders of $357.1 million in 2021, a 185.7% increase from $125.0 million in 2020, with a profit margin of 8.8%[26]. - Copper and anode copper revenue grew by 62.2% from $1,781.8 million in 2020 to $2,890.6 million in 2021, driven by rising international copper prices and increased sales volume[19]. - The company achieved a revenue of $4,050.6 million in 2021, an increase of 56.0% compared to the previous year[43]. Production and Sales - Total sales of copper and anode copper reached 333,499 tons, up 15.6% from the previous year[13]. - The production of cobalt hydroxide surged by 215.2%, totaling 602 tons in 2021[15]. - The company sold 765,565 tons of sulfuric acid, marking a 43.4% increase year-on-year[13]. - The production of cathode copper increased by 7.3%, reaching 124,327 tons in 2021[15]. - The total production of copper and anode copper reached 324,501 tons, a growth of 26.2% year-on-year, while cathode copper production increased by 7.3% to 124,327 tons[44]. - The total production of copper anodes reached 66,005 tons, representing a year-on-year increase of 64.3%[72]. Cash Flow and Investments - The net cash inflow from operating activities for 2021 was $536.4 million, an increase of 11.2% from $482.5 million in 2020, primarily due to increased profits year-on-year[29]. - The net cash outflow from investing activities for 2021 was $204.4 million, slightly reduced from $210.3 million in 2020, indicating stability in investment spending[29]. - The company plans to invest $238 million in the Kambove mining project, which is expected to lay a solid foundation for future business development[43]. - The total exploration, development, and mining expenses for the year ended December 31, 2021, amounted to approximately $405.32 million[80]. Governance and Compliance - The company aims to enhance its governance and compliance risk management systems[14]. - The company is committed to compliance and operational excellence, as evidenced by the roles of its senior management in overseeing these areas[100][101]. - The company has adopted a strict code of conduct for securities trading, ensuring compliance with regulatory standards[105]. - The audit committee is responsible for monitoring the financial reporting process and the internal control and risk management systems of the group[122]. - The company has established a unified business financial management system across its subsidiaries to enhance data sharing and oversight[150]. Risk Management - The company has implemented a risk management system that integrates risk control into daily operations, continuously improving its risk management capabilities[157]. - The company emphasizes the importance of internal audits and compliance, conducting a special evaluation of its risk management and internal control systems[155]. - The company has established a comprehensive internal control management manual covering organizational structure, development strategy, human resources, social responsibility, and corporate culture[150]. - The company has mechanisms in place for reporting and addressing fraud and compliance issues, ensuring transparency and accountability[150]. Market Outlook and Strategy - The company expects stable copper prices due to a balanced supply-demand situation in the global market[14]. - The global supply-demand balance for commodities is expected to remain tight, providing strong support for commodity prices[87]. - The company plans to expand its market presence in Africa, targeting a 30% increase in resource development projects by 2023[108]. - A strategic acquisition of a local mining firm is in progress, expected to enhance resource capabilities and add $100 million in annual revenue[108]. Human Resources - The total employee cost for the year ended December 31, 2021, was approximately $130.1 million, an increase from $113.7 million in 2020[86]. - The company employed a total of 8,756 employees as of December 31, 2021, compared to 8,352 employees as of December 31, 2020[86]. - The company has established a compliance officer and legal department to ensure adherence to local laws in Zambia and the Democratic Republic of the Congo[191]. Environmental, Social, and Governance (ESG) - The company follows the Hong Kong Stock Exchange's guidelines for ESG reporting, ensuring compliance with mandatory disclosure requirements[169]. - The company is committed to integrating the United Nations Sustainable Development Goals into its sustainable development management processes[184]. - The company adheres to sustainable practices by recycling wastewater and treating sewage to reduce pollution[186]. - The company has implemented internal policies to protect employee rights and ensure equal employment opportunities, including signing agreements with multiple unions[187]. Corporate Structure and Leadership - The company has appointed Liu Jingwei as an independent non-executive director and chairman of the audit committee, with extensive experience in finance and accounting[96]. - The senior management team includes Zhang Jinjun as chairman and president, with over 32 years of experience in the metal industry[100]. - The board of directors includes members with significant experience in various sectors, ensuring a diverse and knowledgeable leadership team[96][97].

Financial Performance - In the first half of 2021, the company achieved revenue of $2,109.6 million, representing a year-on-year increase of 123.8%[16] - The profit attributable to the owners of the company for the first half of 2021 was $238.5 million, a significant year-on-year increase of 914.9%[16] - The total revenue for the first half of 2021 was $2,109.6 million, an increase of 123.8% compared to the same period last year, with profit attributable to owners rising by 914.9% to $238.5 million[22] - The company's gross profit for the first half of 2021 was $618.6 million, a 216.3% increase from $195.6 million in the same period of 2020, with a gross margin rising from 20.7% to 29.3%[43] - The company reported a net cash inflow from operating activities of $369.7 million for the first half of 2021, a significant increase from $69.7 million in the same period of 2020, driven by higher copper prices and sales volume[47] - The company reported a profit and total comprehensive income of $238,543 thousand for the six months ended June 30, 2021, compared to $23,466 thousand for the same period in 2020, indicating a substantial increase of approximately 911.5%[89] - The basic and diluted earnings per share for the period were 6.70 cents, a significant increase from 0.67 cents in the prior year, representing a growth of approximately 900%[86] Production and Capacity - In the first half of 2021, the production of copper anodes and cathodes reached 172,515 tons and 58,570 tons, respectively, representing year-on-year increases of 79.7% and 7.7%[22] - The production of cobalt hydroxide reached 108 tons, marking a year-on-year increase of 12.5%[22] - Sulfuric acid production totaled 525,500 tons, reflecting a year-on-year increase of 59.0%[22] - Liquid sulfur dioxide production increased significantly by 152.0% to 11,977 tons in the first half of 2021[22] - The company processed 19,204 tons of copper products, which is a year-on-year increase of 21.5%[22] - The Kambove Southeast ore body produced 37,091 tons of anode copper, a substantial year-on-year increase of 215.3%[24] - The Luanshya copper smelting project produced 60,066 tons of copper, a remarkable year-on-year increase of 216.5%[28] Investments and Development - The company plans to enhance its copper and cobalt resource development efforts, focusing on high-quality growth[14] - The company aims to strengthen its overseas resource layout and development capabilities, leveraging its international talent[14] - The Kambishi main mine's hydrometallurgical copper project has a planned total investment of $238 million, with 88% of the stripping volume completed as of June 30, 2021[34] - The project is expected to produce 28,000 tons of cathode copper and 978 tons of cobalt hydroxide annually[34] - The company has completed 85% of the tailings treatment system and cobalt precipitation system[34] - The company is actively expanding its cobalt business, with several projects planned to produce cobalt products in the near future[23] Financial Position - As of June 30, 2021, the group had cash and bank balances of $841.2 million, an increase of $343.4 million from $497.8 million on December 31, 2020[49] - Trade receivables measured at amortized cost were $22.1 million, while those measured at fair value were $691.3 million, totaling $713.4 million, up $465.0 million from $248.4 million on December 31, 2020, primarily due to increased copper sales and rising international copper prices[49] - Inventory as of June 30, 2021, was $606.9 million, a decrease of $64.5 million from $671.4 million on December 31, 2020, mainly due to reduced raw material inventory[50] - Total trade payables amounted to $662.3 million, an increase of $237.4 million from $424.9 million on December 31, 2020, driven by increased copper concentrate procurement and rising copper prices[50] - The debt ratio as of June 30, 2021, was 12.8%, a significant decrease from 50.4% on December 31, 2020, calculated based on net debt divided by total equity attributable to shareholders[58] Corporate Governance and Compliance - The group is committed to corporate governance, enhancing internal control systems, and ensuring compliance with relevant regulations[68] - The company has established an audit committee to oversee financial reporting and internal controls, ensuring compliance with applicable accounting standards and regulations[81] - The board believes that the current governance structure, despite deviations from certain codes, is appropriate and will continue to be reviewed for necessary adjustments[68] Market and Risk Management - The group is exposed to market risks including commodity price risk, foreign exchange risk, and interest rate risk, with strategies in place to mitigate these risks[54][55][56] - The company plans to leverage the growing demand for copper and cobalt driven by the renewable energy sector, aligning with the "dual carbon" strategy for long-term development prospects[76] Employee and Operational Insights - As of June 30, 2021, the group employed a total of 8,553 employees, with 880 in China and 7,673 in Zambia and the Democratic Republic of Congo[69] - The total employee cost for the six months ended June 30, 2021, was approximately $54.75 million, compared to $54.4 million for the same period in 2020[69] - The group reported a stable safety production situation in the first half of 2021, with ongoing investments in safety and environmental protection facilities[72] Shareholder and Capital Management - Major shareholder China Nonferrous Mining Development holds 2,600,000,000 shares, representing 69.54% ownership[64] - The company plans to use the net proceeds for project construction, mineral resource acquisitions, and to supplement working capital[61] - The net proceeds from the placement amount to $126,886,000, with $36,000,000 already utilized for project construction and development[62]

Financial Performance - In the first half of 2020, the company achieved revenue of $942.8 million, a decrease of 9.9% year-on-year[13]. - The company reported a profit attributable to shareholders of $23.5 million, a significant decrease of 69.2% year-on-year[13]. - The company reported revenues of $942.8 million for the first half of 2020, down 9.9% from $1,046.3 million in the same period last year[20]. - The profit attributable to the company's owners was $23.5 million, a significant decrease of 69.2% compared to the previous year, primarily due to falling international copper prices and increased foreign exchange losses[20]. - The company achieved a gross profit of $195.6 million in the first half of 2020, a decrease of 14.6% from $229.0 million in the same period of 2019, with a gross margin decline from 21.9% to 20.7%[47]. - The net profit for the period was $44,523 thousand, compared to $121,097 thousand in the prior year, representing a decline of 63.2%[101]. - The company reported a profit and total comprehensive income of $23,466,000 for the six months ended June 30, 2020, significantly lower than $76,315,000 for the same period in 2019[104]. - The company reported a foreign exchange loss of $41,417 thousand for the six months ended June 30, 2020, compared to a loss of $7,512 thousand in the same period of 2019[123]. Production and Operations - The total production of copper and anode copper reached 111,833 tons, while cathode copper production was 54,381 tons, and sulfuric acid production was 330,407 tons[10]. - The company produced 54,381 tons of cathode copper in the first half of 2020, an increase of 10.4% year-on-year[21]. - The company’s sulfuric acid production reached 330,407 tons, a decrease of 6.9% compared to the same period last year[21]. - The production of copper from the Kambove project during the trial production phase was 3,994 tons in the first half of 2020[22]. - The production of copper and anode copper for the six months ended June 30, 2020, was 111,833 tons, a decrease of 10.3% compared to 124,680 tons in the same period of 2019[31]. - The company did not produce any copper concentrate during the six months ended June 30, 2020, representing a 100% decrease from 21,569 tons in the same period of 2019[31]. Investment and Projects - The company has invested $5,046 million in the Huaxin Hydrometallurgy project, which is part of a total planned investment of $52.4 million[17]. - The Lualaba Copper Smelting project commenced production on May 1, 2020, with a designed annual processing capacity of 400,000 tons of copper concentrate[17]. - The company is progressing with the construction of the Kambove project, with a total planned investment of $238 million, and has completed 20% of the stripping volume[17]. - The company invested a total of $8.32 billion in the Kambishi Southeast ore body project, which has an annual design capacity of 3.3 million tons of ore and is expected to produce approximately 58,900 tons of copper concentrate annually[38]. - The Luapula pyrometallurgical project, with a total investment of $470 million, has a design capacity to process 400,000 tons of copper concentrate annually, producing 118,000 tons of copper and 240,000 tons of sulfuric acid[39]. Market and Sales - Sales revenue from copper and anode copper was $614.5 million, down 14.4% from $717.5 million in the first half of 2019, attributed to lower international copper prices[44]. - The company’s cathode copper sales revenue was $270.9 million, slightly down by 0.7% from $272.7 million in the first half of 2019, reflecting a combination of lower prices and increased sales volume[44]. - The company’s revenue from the Chinese market was $199,569,000 for the six months ended June 30, 2020, compared to $367,024,000 for the same period in 2019[113]. - The group reported sales of copper and copper products to related parties totaling $316.27 million for copper anodes and $194.74 million for cathodes in the first half of 2020, compared to $272.7 million and $174.6 million respectively in the same period of 2019[156]. Financial Position - As of June 30, 2020, the company had cash and bank balances of $579.3 million, an increase of $98.1 million from $481.2 million as of December 31, 2019[55]. - The total assets as of June 30, 2020, increased to $3,619,505 thousand from $3,315,531 thousand as of December 31, 2019, marking a growth of 9.2%[102]. - Total liabilities increased to $2,099,595 thousand from $1,779,455 thousand, representing a rise of 18%[103]. - The company’s debt ratio was 76.1%, an increase from 69.7% as of December 31, 2019[66]. - The total capital expenditure for the first half of 2020 was $100.4 million, a decrease of $130.9 million from $231.3 million in the first half of 2019, mainly due to the trial and commercial production of certain facilities[60]. Corporate Governance and Social Responsibility - The company has established a robust internal control system to enhance corporate governance during the reporting period[79]. - The company has a commitment to corporate social responsibility, focusing on employee welfare and a non-discriminatory work environment[84]. - The company actively participated in local community development, contributing to municipal construction and vocational education, receiving high praise from local governments and residents[87]. - The company emphasizes environmental protection and sustainable resource utilization while adhering to governance standards and improving employee conditions[11]. - The company achieved a significant milestone in environmental protection by implementing a circular water usage system for mining and industrial processes[86]. Challenges and Future Outlook - The decline in performance was primarily due to the drop in international copper prices and significant currency fluctuations in Zambia and the Democratic Republic of the Congo[10]. - The company experienced a significant impact on its financial performance due to the COVID-19 pandemic, including a decline in copper prices and project delays[107]. - Despite the COVID-19 pandemic, the company's operations in Zambia and the Democratic Republic of Congo continued to develop steadily, with a positive long-term outlook for copper and cobalt products[88]. - The company plans to increase investment in geological exploration and development, seeking suitable acquisition targets in resource-rich areas to expand its resource base[88].