（股份代號：1370） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示不會就因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 AOWEI HOLDING LIMITED 奧 威 控 股 有 限 公 司 （ 於 英 屬 處 女 群 島 註 冊 成 立 並 於 開 曼 群 島存 續之 有 限 公 司 ） 董事會會議召開日期 奧威控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，董事會會 議將於二零二五年八月二十七日（星期三）舉行，藉以（其中包括）考慮及批准本 公司及其附屬公司截至二零二五年六月三十日止六個月的中期業績及其發佈，以 及考慮派發中期股息（如有）。 承董事會命 奧威控股有限公司 主席 李豔軍先生 於本公告日期，本公司的執行董事為李豔軍先生、李子威先生、左月輝先生、孫濤 先生及陳立仙女士；而本公司的獨立非執行董事為黄思樂先生、孟立坤先生及葛 新建先生。 中華人民共和國，北京，二零二五年八月十五日 ...

Core Viewpoint - Aowei Holdings (01370.HK) anticipates a loss attributable to equity holders of approximately RMB 90 million for the six months ending June 30, 2025, compared to a loss of RMB 50.6 million in the same period of 2024 [1] Group 1 - The expected loss is primarily due to the depletion of the mineable portion at its subsidiary, Laiyuan Jiheng Mining Co., Ltd., which has halted operations [1] - Additionally, the decline in iron concentrate prices has led to a decrease in gross margin [1]

Core Viewpoint - The company anticipates a loss attributable to equity holders of approximately RMB 90 million in the first half of 2025, compared to a loss of RMB 50.6 million in the same period of 2024 [1] Group 1: Financial Performance - The expected loss for the first half of 2025 is significantly higher than the previous year's loss, indicating a worsening financial situation [1] - The primary reasons for the loss include the depletion of the exploitable portion of the open-pit iron mine operated by its subsidiary, Laiyuan Jiheng Mining Co., Ltd., and a decline in the selling price of iron concentrate, which has led to a decrease in gross margin [1]

Group 1 - The company expects to incur a loss attributable to equity holders of approximately RMB 90 million in the first half of 2025, compared to a loss of RMB 50.6 million in the same period of 2024 [1] - The primary reasons for the loss during the reporting period include the depletion of the exploitable portion of the open-pit iron ore mine operated by its subsidiary, Laiyuan Jiheng Mining Co., Ltd., and the suspension of mining activities [1] - Additionally, the decline in the selling price of iron concentrate has led to a decrease in gross profit margin [1]

（ 於 英 屬 處 女 群 島 註 冊 成 立 並 於 開 曼 群 島存 續之 有 限 公 司 ） （股份代號：1370） 內幕消息 盈利警告 本公告乃奧威控股有限公司（「本公司」，連同其附屬公司，統稱為「本集團」）根據 香港法例第571章證券及期貨條例第XIVA 部的內幕消息條文及香港聯合交易所有 限公司證券上市規則第13.09條而刊發。 本公司董事會（「董事會」）謹此通知本公司股東（「股東」）及潛在投資者，根據本 集團截至二零二五年六月三十日止六個月（「報告期」）未經審核綜合管理賬目的 初步評估及現時可獲得資料，預期報告期將錄得本公司權益持有人應佔虧損不多 於約人民幣90.0百萬元（二零二四年同期：錄得虧損為人民幣50.6百萬元）。本集團 於報告期內發生虧損主要歸因於本集團附屬公司淶源縣冀恆礦業有限公司（「冀恆 礦業」）露天鐵礦可開採部分基本開採完畢且暫停開採（詳情請參閱本公司於二零 二四年三月十五日刊發的內幕消息盈利警告公告）；以及，鐵精粉售價下降導致毛 利率下降所致。 本公告所載之財務資料僅基於董事會參考目前可得資料（包括本集團之最新未經 審核管理賬目）作出之初步評估，有關資料尚未經本公司核數師或本公 ...

致：香港交易及結算所有限公司 公司名稱: 奧威控股有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01370 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | 0.0001 | HKD | | 1,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | 0.0001 | HKD | | 1,000,000 | 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 本月底法定/註冊股本總額： HKD 1,000,000 FF301 第 1 頁 共 1 ...

Group 1 - The stock price of Aowei Holdings (01370.HK) closed at HKD 0.190 on June 24, down 5.0% from the previous trading day, reaching a new low in nearly a year with an intraday low of HKD 0.189 [1] - On the same day, the net capital outflow was HKD 20.51 thousand, with a total inflow of HKD 32.45 thousand and an outflow of HKD 237.58 thousand [1] Group 2 - Aowei Holdings Limited was established on January 14, 2011, under the laws of the British Virgin Islands and migrated to the Cayman Islands in May 2013, listing on the Hong Kong Stock Exchange on November 28, 2013 [2] - The company primarily engages in iron ore exploration, mining, beneficiation, and sales, as well as the production and sale of construction sand and gravel, operating three iron ore mines in Hebei Province, China [2] - As of December 31, 2014, the company had approximately 394.8 million tons of controlled iron ore resources, 307.8 million tons of recoverable reserves, and 223.7 million tons of inferred resources [2] - The company aims to benefit from the continuous growth of steel production in China and the severe shortage of locally produced iron ore, particularly in Hebei and Shanxi provinces [2] - Since early 2019, the company has been preparing to build a solid waste comprehensive utilization project with an annual capacity of 370,000 tons, promoting energy conservation and environmental restoration while reducing operational costs [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 645.659 million, a decrease of 3.3% compared to RMB 667.367 million in 2023[13]. - The gross profit for 2024 was RMB 76.918 million, down 22.4% from RMB 99.176 million in the previous year[13]. - The company incurred a net loss of RMB 289.621 million for 2024, compared to a net loss of RMB 549.139 million in 2023, indicating an improvement[13]. - The group recorded revenue of approximately RMB 645.7 million for the year ended December 31, 2024, a decrease of about 3.3% compared to the previous year[20]. - Gross profit for the year was approximately RMB 76.9 million, down about 22.4%, resulting in a gross margin of approximately 11.9% (2023: 14.9%) [20]. - The loss attributable to equity holders for the year was approximately RMB 289.6 million, compared to a loss of RMB 549.1 million in 2023[20]. - The group's gross profit for the reporting period was approximately RMB 76.9 million, a decrease of about RMB 22.3 million or 22.4% compared to the same period last year, with the gross profit margin decreasing from 14.9% to 11.9%[46]. - The group recorded a post-tax loss of approximately RMB 289.6 million for the reporting period, a decrease from a post-tax loss of RMB 549.1 million in the same period last year[60]. Assets and Liabilities - Total assets decreased to RMB 1,857.798 million in 2024 from RMB 2,201.011 million in 2023, reflecting a decline of 15.6%[15]. - The company's total equity stood at RMB 687.614 million in 2024, down 28.9% from RMB 965.597 million in 2023[15]. - Non-current assets decreased to RMB 1,492.019 million in 2024 from RMB 1,783.902 million in 2023, a decline of 16.3%[15]. - Current liabilities increased to RMB 900.646 million in 2024 from RMB 757.886 million in 2023, an increase of 18.8%[15]. - The group's total liabilities ratio as of December 31, 2024, was approximately 46.9%, an increase of about 5.5% compared to the same period last year[67]. - Current liabilities exceeded current assets by approximately RMB 534,867,000 as of December 31, 2024[200]. - The group had borrowings due within one year amounting to approximately RMB 632,992,000 and capital commitments of approximately RMB 18,114,000[200]. - Cash and cash equivalents were only approximately RMB 34,646,000 as of the same date, indicating liquidity concerns[200]. Production and Sales - Iron ore production for the year was approximately 721.8 thousand tons, a decrease of about 0.6% year-on-year, while sales volume increased by approximately 2.8% to 739.1 thousand tons[29]. - The average selling price of iron concentrate was approximately RMB 798.1 per ton, a decrease of about 1.7% compared to the previous year[29]. - The group’s iron ore business recorded revenue of approximately RMB 589.8 million, an increase of about 1.0% year-on-year[30]. - The total production of aggregates for the group was approximately 1,402.0 thousand tons, a decrease of about 49.3% year-on-year, while sales volume decreased by approximately 24.7% to 1,758.2 thousand tons[40]. - The average selling price of aggregates during the reporting period was approximately RMB 28.9 per ton, reflecting a decrease of 15.2% compared to the previous year[40]. Strategic Plans and Market Outlook - The company plans to focus on expanding its iron ore exploration and sales operations in Hebei province, China, which is a key market for steel production[8]. - The company is also exploring opportunities for green building materials production through the recycling of tailings[8]. - Future outlook includes potential strategic acquisitions to enhance market position and operational capabilities[8]. - The company anticipates that the demand for steel in 2025 will remain weak, with supply and price trends expected to stabilize or narrow in decline[73]. - The company plans to deepen cost reduction and efficiency enhancement mechanisms to improve profitability in its iron ore and aggregate businesses[74]. - The company aims to expand its green building materials aggregate production scale through new construction or acquisition of production lines[75]. - The company will actively explore sales opportunities beyond the Xiong'an New Area to increase aggregate sales and improve cash collection[75]. - The company expects that the investment ratio in the real estate sector will decrease at a slower pace due to government policies promoting healthy market development[73]. - The company anticipates continued growth in infrastructure investment, positively impacting steel demand[73]. Risk Management and Governance - The company has a comprehensive approach to risk management and internal controls as outlined in the corporate governance report[91]. - The board consists of experienced independent non-executive directors providing independent advice and guidance[83]. - The company has established an independent internal audit department that reports directly to the audit committee, ensuring effective risk management and internal control systems[163]. - The company has implemented a risk management and internal control system to mitigate operational risks and ensure accurate financial reporting[181]. - The board is tasked with ensuring compliance with legal and regulatory requirements and monitoring the effectiveness of the company's governance policies[176]. Employee and Corporate Governance - Employee welfare expenses for the group amounted to approximately RMB 74.5 million, a decrease from RMB 78.9 million in the previous year, with a total of 759 full-time employees as of December 31, 2024[43]. - The board consists of five executive directors and three independent non-executive directors, meeting the requirements of the Listing Rules[150]. - The company has established a retirement and employee benefits plan, details of which are included in the financial statements[140]. - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance throughout the year[132]. - The company has maintained the required public float as per the Listing Rules throughout the reporting period[134]. Shareholder Communication and Transparency - The company is committed to maintaining high transparency and timely disclosure of business developments and financial performance to shareholders[194]. - The board of directors reviewed and assessed the effectiveness of the group's shareholder communication policy for the fiscal year ending December 31, 2024[194]. - The company will publish annual and interim reports in March and August respectively to update shareholders on business developments and market trends[192]. - The group encourages shareholders to access corporate communications through its website to promote environmental protection[193].

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately RMB 645.7 million, a decrease of about RMB 21.7 million or 3.3% compared to the previous year[3]. - The cost of sales for the same period was approximately RMB 568.7 million, an increase of about RMB 0.5 million compared to the previous year[3]. - The gross profit for the year was approximately RMB 76.9 million, a decrease of about RMB 22.3 million or 22.4% year-on-year[3]. - The group recorded a loss of approximately RMB 289.6 million for the year, compared to a loss of RMB 549.1 million in the previous year[3]. - Basic loss per share attributable to equity holders was RMB 0.18, compared to RMB 0.34 in the previous year[4]. - The company reported a net loss of approximately RMB 289,621,000 for the year ending December 31, 2024, with current liabilities exceeding current assets by approximately RMB 534,867,000[15]. - The company reported a loss from continuing operations of RMB 289,621,000 for the year ending December 31, 2024, compared to a loss of RMB 549,139,000 in 2023, indicating a significant improvement[28]. - The group recorded a post-tax loss of approximately RMB 289.6 million for the reporting period, a decrease from a post-tax loss of RMB 549.1 million in the same period last year[72]. Assets and Liabilities - Non-current assets decreased to RMB 1,492.0 million from RMB 1,783.9 million in the previous year[5]. - Current assets decreased to RMB 365.8 million from RMB 417.1 million in the previous year[5]. - Total liabilities increased to RMB 900.6 million from RMB 757.9 million in the previous year[6]. - The net asset value decreased to RMB 687.6 million from RMB 965.6 million in the previous year[6]. - The company faced significant uncertainties regarding its ability to continue as a going concern due to its financial position as of December 31, 2024[37]. - The group's total liabilities ratio as of December 31, 2024, was approximately 46.9%, an increase of about 5.5% compared to the same period last year[79]. - The group had bank loans amounting to RMB 872.0 million as of December 31, 2024, a decrease of RMB 40 million or 4.4% compared to the end of the previous year[78]. Revenue Breakdown - Revenue from iron concentrate for 2024 was RMB 589,799,000, compared to RMB 584,027,000 in 2023, showing a slight increase[18]. - Revenue from sand and gravel aggregates for 2024 was RMB 55,860,000, down from RMB 83,340,000 in 2023, indicating a significant decline[18]. - Total revenue for 2024 was RMB 645,659,000, compared to RMB 667,367,000 in 2023, reflecting a decrease of approximately 3.2%[18]. - The company recorded revenue of approximately RMB 589.8 million from iron ore business in 2024, an increase of about 1.0% compared to the previous year[41]. Operational Efficiency - The total employee costs for the year were RMB 74,504,000, down from RMB 78,908,000 in the previous year, reflecting a reduction of approximately 5.1%[26]. - The average cash operating cost for iron concentrate at Wang'er Gou and Shuanma Zhuang mines decreased by 5.3% to RMB 662.2 per ton compared to RMB 699.0 in 2023[47]. - The average cash operating cost for mechanism sand increased due to rising raw material and electricity costs[51]. - The company plans to deepen cost reduction and efficiency enhancement mechanisms to improve profitability in the iron ore and aggregate business[86]. Investments and Financing - The company successfully obtained new borrowings of RMB 230,000,000 from a Chinese bank to settle existing loans, with an annual interest rate of 7.5% and repayment due in mid-February 2026[17]. - The group’s total capital expenditure was approximately RMB 19.1 million, which includes the acquisition of property, plant, and equipment, construction in progress, and intangible assets[80]. Compliance and Governance - The company confirmed compliance with the corporate governance code during the reporting period[91]. - The audit committee reviewed the group's annual performance and financial statements for the year ending December 31, 2024[92]. - The company has adopted a standard code for securities trading by directors, confirming compliance throughout the year[90]. Production and Sales - Iron concentrate production was approximately 721.8 thousand tons in 2024, a decrease of about 0.6% compared to 726.2 thousand tons in 2023[42]. - The sales volume of iron concentrate increased by approximately 2.8% to 739.1 thousand tons in 2024 from 719.1 thousand tons in 2023[42]. - The group recorded a 49.3% decrease in sand and gravel production to approximately 1,402.0 thousand tons, and a 24.7% decrease in sales volume to approximately 1,758.2 thousand tons compared to the previous year[49]. Impairment and Valuation - The group recorded an impairment loss of approximately RMB 201.1 million during the reporting period, with significant losses attributed to property, plant, equipment, and intangible assets[59]. - The independent valuation of the group's assets indicated an impairment loss of approximately RMB 177.0 million for property, plant, and equipment, and construction in progress as of December 31, 2024[59]. - The expected credit loss provision under the group's model was approximately RMB 24.1 million, contributing to the overall impairment loss recorded during the reporting period[59]. Future Outlook - The company expects to record a net operating cash inflow for the year ending December 31, 2025[17]. - The company aims to expand its green building materials aggregate production scale through new construction or acquisition of production lines[87]. - The company will actively explore sales opportunities beyond the Xiong'an New Area to increase aggregate sales and improve cash collection[87].

Company Information [Company Overview and Principal Businesses](index=4&type=section&id=Company%20Overview%20and%20Principal%20Businesses) Aowei Holdings Limited, formerly Hengshi Mining Investment Limited, listed on the HKEX in 2013, primarily engages in iron ore mining and green building materials production and sales in Hebei, China - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on **November 28, 2013**, with stock code **1370**[13](index=13&type=chunk) - The Group's core businesses are divided into two segments: (i) **iron ore business**, including iron ore, rich powder, and iron concentrate; and (ii) **green building materials business**, primarily producing and selling construction sand and aggregate[13](index=13&type=chunk) - The Group owns and operates **three iron mines**, all located in Hebei Province, China, which has the highest steel production and iron ore consumption[13](index=13&type=chunk) Financial Highlights [Key Financial Indicators for H1 2024](index=7&type=section&id=Key%20Financial%20Indicators%20for%20H1%202024) For the six months ended June 30, 2024, group revenue decreased 9.0% to RMB 323.7 million, gross profit significantly declined 44.4%, and loss attributable to equity holders narrowed to RMB 50.6 million | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 323.7 million | RMB 355.8 million | -9.0% | | Gross Profit | RMB 46.7 million | RMB 83.9 million | -44.4% | | Gross Margin | 14.4% | 23.6% | -9.2 percentage points | | Loss Attributable to Equity Holders | RMB 50.6 million | RMB 65.7 million | -23.0% | | Basic Loss Per Share | RMB 0.03 | RMB 0.04 | -25.0% | - The Board resolved not to declare an interim dividend for the six months ended June 30, 2024[23](index=23&type=chunk)[81](index=81&type=chunk) Management Discussion and Analysis [Business Review](index=8&type=section&id=Business%20Review) In H1 2024, iron ore prices weakened due to real estate downturn and weak steel demand, leading to decreased production and sales in both iron ore and green building materials segments, resulting in an overall loss despite cost controls [Iron Ore Business](index=8&type=section&id=Iron%20Ore%20Business) Iron ore prices were pressured by China's real estate market adjustments and shrinking steel demand, leading to a decline in the Group's iron concentrate production and sales, though average unit cash operating cost decreased due to cost control - In H1 2024, the Platts 62% iron ore price index fell from a high of **US$143.95/ton** at the beginning of the year to **US$106.7/ton**, with port inventories increasing **17.2%** YoY, indicating an oversupply in the market[25](index=25&type=chunk) Iron Concentrate Production and Sales | Business Segment | Item | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Iron Concentrate | Production (thousand tons) | 337.53 | 381.93 | -11.6% | | | Sales (thousand tons) | 358.26 | 395.38 | -9.4% | | | Average Selling Price (RMB/ton) | 856.06 | 778.79 | +9.9% | - Jihang Mining temporarily ceased operations during the reporting period as its open-pit iron ore extractable portion was largely depleted, leading to zero production and sales, which is the main reason for the Group's overall production and sales decline[26](index=26&type=chunk)[27](index=27&type=chunk) Wang'ergou Mine & Shuanmazhuang Mine Operating Data | Wang'ergou Mine & Shuanmazhuang Mine | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Ore Mined (thousand tons) | 6,054.37 | 5,078.36 | +19.2% | | Iron Concentrate Production (thousand tons) | 337.53 | 281.66 | +19.8% | | Average Unit Cash Operating Cost (RMB/ton) | 670.87 | 691.57 | -3.0% | [Green Building Materials - Construction Sand and Aggregate Business](index=11&type=section&id=Green%20Building%20Materials%20-%20Construction%20Sand%20and%20Aggregate%20Business) During the reporting period, sand and aggregate business production and sales significantly declined due to heavy rain and road repairs, while average unit cash operating cost increased due to lower production and higher raw material costs Sand and Aggregate Operating Data | Business Segment | Item | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Total Sand & Aggregate | Production (thousand tons) | 466.21 | 1,775.71 | -73.7% | | | Sales (thousand tons) | 460.35 | 1,364.41 | -66.3% | | | Average Selling Price (RMB/ton) | 33.12 | 33.80 | -2.0% | | | Average Unit Cash Operating Cost (RMB/ton) | 22.10 | 18.60 | +18.9% | - The decline in production and sales is primarily attributed to: (1) contamination of Jingyuancheng Mining's finished goods inventory due to severe rainstorms in late July 2023; and (2) partial shutdown of Jihang Mining due to road facility damage and subsequent repairs[35](index=35&type=chunk) [Safety and Environmental Protection](index=12&type=section&id=Safety%20and%20Environmental%20Protection) The Group prioritizes safety and environmental protection, strictly adhering to relevant laws and regulations with a safety goal of "zero fatalities, zero serious injuries," and recorded no major incidents during the reporting period - During the reporting period, the Group's operations recorded no major safety or environmental incidents[37](index=37&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) In H1 2024, group revenue decreased 9.0% and gross profit significantly declined 44.4%, while administrative expenses and finance costs increased; however, loss for the period narrowed due to the absence of large asset impairment losses from the prior period and current income tax credit, though the gearing ratio rose to 45.1% [Revenue, Cost, and Gross Profit](index=12&type=section&id=Revenue,%20Cost,%20and%20Gross%20Profit) Revenue decreased 9.0% to RMB 323.7 million due to lower sales volume of iron concentrate and sand/aggregate, while gross profit significantly declined 44.4% to RMB 46.7 million, with gross margin falling to 14.4% - Revenue decreased **9.0%** to **RMB 323.7 million**, primarily due to lower production and sales volume of iron concentrate and sand/aggregate, partially offset by higher iron concentrate selling prices[38](index=38&type=chunk) - Gross profit decreased **44.4%** to **RMB 46.7 million**, with gross margin falling from **23.6%** to **14.4%** compared to the same period last year[40](index=40&type=chunk) [Operating Expenses and Finance Costs](index=13&type=section&id=Operating%20Expenses%20and%20Finance%20Costs) Distribution expenses decreased to RMB 0.8 million, administrative expenses increased 21.3% to RMB 59.7 million due to higher idle capacity costs, and finance costs rose 16.1% to RMB 30.7 million due to increased average bank borrowings - Administrative expenses increased **21.3%** YoY to **RMB 59.7 million**, primarily due to increased idle capacity costs recognized under management expenses[42](index=42&type=chunk) - Finance costs increased **16.1%** YoY to **RMB 30.7 million**, mainly due to a higher average balance of bank borrowings compared to the prior period[43](index=43&type=chunk) [Loss and Asset Position](index=13&type=section&id=Loss%20and%20Asset%20Position) Loss after tax for the period narrowed to RMB 50.6 million, a reduction of RMB 15.1 million from the prior period, primarily due to the absence of significant asset impairment losses and an income tax credit in the current period, while inventories, trade receivables, and payables all decreased - Loss for the period narrowed to **RMB 50.6 million**, primarily due to no impairment loss on property, plant and equipment in the current period, compared to a significant impairment in the prior period[45](index=45&type=chunk) - An income tax credit of approximately **RMB 1.7 million** was recorded, compared to an income tax expense of **RMB 25.7 million** in the prior period, mainly due to the reversal of an over-provision for current tax in prior years of approximately **RMB 21.0 million**[44](index=44&type=chunk) - As of June 30, 2024, inventories, trade and other receivables, and trade and other payables all decreased compared to year-end 2023[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) [Liquidity and Capital Resources](index=15&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2024, cash and cash equivalents increased to RMB 53.8 million, but total bank and other borrowings reached RMB 954.5 million, with RMB 517.0 million as current liabilities, leading to an increased gearing ratio of 45.1% and indicating liquidity pressure Liquidity and Capital Resources Overview | Indicator | June 30, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | RMB 53.8 million | RMB 34.5 million | +RMB 19.3 million | | Bank and Other Borrowings | RMB 954.5 million | RMB 912.0 million | +RMB 42.5 million | | Gearing Ratio | 45.1% | 41.4% | +3.7 percentage points | - As of June 30, 2024, approximately **RMB 517.0 million** of the Group's bank and other borrowings were current liabilities, while cash and cash equivalents were only **RMB 53.8 million**, indicating liquidity pressure[54](index=54&type=chunk)[98](index=98&type=chunk) [Future Plans and Outlook](index=16&type=section&id=Future%20Plans%20and%20Outlook) The Group maintains a cautious outlook on the iron ore market, expecting continued oversupply, and plans to deepen cost reduction, improve and sell existing sand and aggregate inventory, potentially dispose of Jihang Mining's iron ore business, and focus on developing its green building materials segment to enhance profitability - The iron ore market is expected to remain in an **oversupply** situation in the second half, with price growth suppressed[60](index=60&type=chunk) - Strategic priorities include: deepening **cost reduction and efficiency improvements**, improving and selling affected sand and aggregate inventory, considering timely disposal of **Jihang Mining's iron ore business**, and vigorously developing the **green building materials sand and aggregate business**[60](index=60&type=chunk) Other Information [Directors' and Shareholders' Interests](index=17&type=section&id=Directors'%20and%20Shareholders'%20Interests) As of June 30, 2024, Mr. Li Yanjun (Chairman) and Mr. Li Ziwei (CEO) jointly held 72.25% equity interest, while Huarong International Financial Holdings Co., Ltd. and its ultimate controlling company held 50.73% due to security interests - Mr. Li Ziwei (Chief Executive Officer) and Mr. Li Yanjun (Chairman) are deemed to jointly hold interests in **1,181,480,000 shares**, representing **72.25%** of the issued shares[62](index=62&type=chunk)[63](index=63&type=chunk) - Fresh Idea Ventures Limited, an indirect wholly-owned subsidiary of Huarong International Financial Holdings Co., Ltd., holds security interests in **829,630,000 shares**, representing **50.73%** of the issued shares[66](index=66&type=chunk)[68](index=68&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group had 797 employees, a decrease from the prior year, with total staff costs for the reporting period amounting to approximately RMB 39.1 million, down 13.1% YoY Employee and Staff Costs Overview | Indicator | June 30, 2024 | June 30, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 797 | 988 | -19.3% | | Total Staff Costs | RMB 39.1 million | RMB 45.0 million | -13.1% | [Corporate Governance](index=19&type=section&id=Corporate%20Governance) During the reporting period, the company complied with the Listing Rules' Corporate Governance Code, with the Audit Committee reviewing the unaudited interim financial results, and maintained the required public float - The company adopted the Model Code, and all directors confirmed compliance throughout the reporting period[70](index=70&type=chunk) - The Audit Committee, comprising three independent non-executive directors, reviewed the interim financial results[79](index=79&type=chunk) [Other Disclosures](index=19&type=section&id=Other%20Disclosures) The company has not adopted any share option scheme, had no purchases, redemptions, or sales of listed securities, no significant legal proceedings, and no material post-balance sheet events during the reporting period, and the Board resolved not to declare an interim dividend - The Board resolved not to declare an interim dividend for the six months ended June 30, 2024[81](index=81&type=chunk) - The Group was not involved in any significant legal proceedings or arbitration during the reporting period[82](index=82&type=chunk) - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[74](index=74&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=22&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group recorded revenue of RMB 323.7 million and gross profit of RMB 46.7 million, with loss before tax at RMB 52.3 million and loss for the period at RMB 50.6 million, narrowing from the prior period due to no significant asset impairment and an income tax credit Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item (RMB '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited, Restated) | | :--- | :--- | :--- | | Revenue | 323,731 | 355,846 | | Gross Profit | 46,672 | 83,928 | | Loss Before Tax | (52,316) | (39,661) | | Loss for the Period | (50,587) | (65,749) | | Basic Loss Per Share (RMB) | (0.03) | (0.04) | [Condensed Consolidated Statement of Financial Position](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were RMB 2.115 billion, total liabilities RMB 1.200 billion, and net assets RMB 914.9 million, with net current liabilities of RMB 323.6 million indicating short-term repayment pressure Condensed Consolidated Statement of Financial Position | Item (RMB '000) | June 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 1,712,433 | 1,783,902 | | Current Assets | 402,547 | 417,109 | | **Total Assets** | **2,114,980** | **2,201,011** | | Current Liabilities | 726,177 | 757,886 | | Non-current Liabilities | 473,862 | 477,528 | | **Total Liabilities** | **1,200,039** | **1,235,414** | | **Net Assets** | **914,941** | **965,597** | | **Net Current Liabilities** | **(323,630)** | **(340,777)** | [Condensed Consolidated Statement of Changes in Equity](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, total equity decreased from RMB 965.6 million at year-start to RMB 914.9 million, primarily due to the RMB 50.6 million loss recorded during the period - As of January 1, 2024, total equity was **RMB 965.6 million**[88](index=88&type=chunk) - During the reporting period, total equity decreased to **RMB 914.9 million** due to a loss for the period of **RMB 50.6 million** and exchange differences[88](index=88&type=chunk)[89](index=89&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2024, operating cash flow turned positive with a net inflow of RMB 26.2 million, while investing activities resulted in a net outflow of RMB 18.4 million and financing activities a net inflow of RMB 11.6 million, leading to a period-end cash and cash equivalents balance of RMB 53.8 million Condensed Consolidated Statement of Cash Flows | Item (RMB '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 26,158 | (98,181) | | Net Cash Used in Investing Activities | (18,393) | (26,053) | | Net Cash from Financing Activities | 11,644 | 128,247 | | Net Increase in Cash and Cash Equivalents | 19,409 | 4,013 | | Cash and Cash Equivalents at Period-End | 53,822 | 60,085 | Notes to the Condensed Consolidated Financial Statements [Basis of Preparation and Principal Accounting Policies](index=30&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) Financial statements are prepared on a going concern basis despite significant uncertainties, including a loss for the period, current liabilities exceeding current assets, and substantial short-term borrowings, with confidence relying on expected loan renewals, asset realization, and financial support from major shareholders - During the reporting period, the Group incurred a loss of **RMB 50.6 million**, with current liabilities exceeding current assets by approximately **RMB 323.6 million**, and borrowings due within one year totaling approximately **RMB 517.0 million** while cash and cash equivalents were only approximately **RMB 53.8 million**, indicating significant uncertainties that may cast substantial doubt on its ability to continue as a going concern[98](index=98&type=chunk) - Directors believe preparing financial statements on a going concern basis is appropriate, primarily relying on: (1) successful renewal of maturing bank loans; (2) ability to realize non-current assets if necessary; and (3) commitment from executive directors and major shareholders Mr. Li Yanjun and Mr. Li Ziwei to provide sufficient financial support[98](index=98&type=chunk) [Revenue and Segment Information](index=32&type=section&id=Revenue%20and%20Segment%20Information) All Group revenue is derived from the mining segment in China, primarily from iron concentrate sales, with the former medical segment having ceased operations in 2023 Revenue by Type of Goods | Type of Goods (RMB '000) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Iron Concentrate | 306,694 | 307,922 | | Sand and Aggregate | 17,037 | 47,924 | | **Total** | **323,731** | **355,846** | - All revenue is derived from the **mining segment** in China, and the medical segment, which provided hospital management services, ceased operations in 2023[102](index=102&type=chunk)[103](index=103&type=chunk) [Key Statement of Profit or Loss Items](index=33&type=section&id=Key%20Statement%20of%20Profit%20or%20Loss%20Items) During the reporting period, finance costs, mainly bank borrowing interest, totaled RMB 30.7 million, an income tax credit of RMB 1.7 million was recorded due to prior year over-provision, basic loss per share was RMB 0.03, and no dividends were declared - Total finance costs were **RMB 30.72 million**, of which bank borrowing interest was **RMB 29.79 million**[105](index=105&type=chunk) - Income tax recorded a credit of **RMB 1.73 million**, mainly due to the reversal of an over-provision for China corporate income tax of **RMB 21.04 million** from prior years, partially offset by a current deferred tax expense of **RMB 19.31 million**[107](index=107&type=chunk) - The Board decided not to declare any dividend for the interim period[114](index=114&type=chunk) [Statement of Financial Position Items](index=39&type=section&id=Statement%20of%20Financial%20Position%20Items) As of period-end, the Group's net property, plant and equipment was RMB 1.10 billion, and construction in progress RMB 178.0 million; net trade receivables were RMB 101.0 million with 80% overdue, and total bank and other borrowings were RMB 954.5 million, including several renewed or new borrowings - Net trade receivables were **RMB 100.6 million**, of which receivables overdue by more than **180 days** totaled **RMB 80.6 million**, accounting for **80.1%** of the total, indicating high credit risk[123](index=123&type=chunk)[124](index=124&type=chunk) - During the reporting period, the Group renewed three bank borrowings totaling **RMB 327.0 million** and obtained two new borrowings totaling **RMB 80.0 million**[129](index=129&type=chunk)[130](index=130&type=chunk) - The Group still has buildings and plant with a total carrying amount of approximately **RMB 224.0 million** and leasehold land with a carrying amount of approximately **RMB 52.97 million** for which property ownership certificates have not yet been obtained[118](index=118&type=chunk)[119](index=119&type=chunk) [Commitments, Contingent Liabilities, and Related Party Transactions](index=44&type=section&id=Commitments,%20Contingent%20Liabilities,%20and%20Related%20Party%20Transactions) As of period-end, the Group had capital commitments of RMB 19.73 million and faces environmental regulatory uncertainties, while numerous material related party transactions, particularly bank borrowings secured by ultimate controllers, are crucial for the Group's financing - As of June 30, 2024, the Group had contracted but unprovided capital expenditure commitments of approximately **RMB 19.73 million**[133](index=133&type=chunk) - Multiple bank borrowings of the Group rely on related party guarantees; as of June 30, 2024, total bank borrowings secured by property mortgages or personal guarantees from ultimate controllers Mr. Li Yanjun, Mr. Li Ziwei, and their controlled companies (Hebei Aowei, Tongda) exceeded **RMB 673.0 million**[140](index=140&type=chunk)