Financial Performance - Aowei Holding Limited reported its annual performance for the year ended December 31, 2022, in the announcement dated March 29, 2023[3]. - The independent auditor's report summary includes a disclaimer of opinion regarding the consolidated financial statements for the year ended December 31, 2022[1]. - The announcement clarifies that the content of the annual performance announcement remains unchanged except for the specified revisions[4]. Company Directors - The executive directors of the company include Mr. Li Yanjun, Mr. Li Ziwei, Mr. Zuo Yuehui, and Mr. Sun Tao[5]. - The independent non-executive directors consist of Mr. Huang Sile, Mr. Meng Likun, and Mr. Ge Xinjian[5].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因依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） （股份代號：1370） 截至2022年12月31日止年度之業績公告 財務摘要 本集團於報告期內的收入約為人民幣937.8百萬元，較去年同期減少約人民幣 254.0百萬元或21.3%。本集團於報告期內的銷售成本約為人民幣774.1百萬元，較 去年同期減少約人民幣0.4百萬元。本集團於報告期內的毛利約為人民幣163.7百 萬元，較去年同期減少約人民幣253.5百萬元或60.8%。 於報告期內，本公司權益持有人應佔溢利約為人民幣60.8百萬元，較去年同期相 比減少約人民幣142.3百萬元或70.1%。 於報告期內，本公司權益持有人應佔每股基本溢利為人民幣0.04元，較去年同期 相比減少約人民幣0.08元或66.7%。 ...

Financial Performance - For the six months ended June 30, 2022, the company's revenue was approximately RMB 537.2 million, a decrease of about RMB 68.7 million or 11.3% compared to the same period last year[14]. - The gross profit for the same period was approximately RMB 139.6 million, down by about RMB 112.2 million or 44.6%, resulting in a gross margin of approximately 26.0%[14][19]. - The profit attributable to equity holders for the reporting period was approximately RMB 44.7 million, a decrease of about RMB 100.3 million or 69.2% compared to the previous year[14]. - Basic earnings per share for equity holders were RMB 0.03, a decrease of RMB 0.06 compared to the same period last year[15]. - The group's revenue for the reporting period was approximately RMB 537.2 million, a decrease of about RMB 68.7 million or 11.3% compared to the same period last year, primarily due to a decline in iron concentrate prices[47]. - The group's gross profit for the reporting period was approximately RMB 139.6 million, down from RMB 251.8 million in the same period last year, resulting in a gross margin decrease of approximately 15.6% to 26.0%[49]. - The group recorded a net profit of approximately RMB 44.7 million for the reporting period, a decrease of about RMB 100.3 million compared to the same period last year, primarily due to a decline in gross profit[55]. - Basic earnings per share for the period was RMB 0.03, down from RMB 0.09 in the previous year[107]. - The mining segment generated revenue of RMB 537,159,000 for the first half of 2022, with a segment profit of RMB 71,103,000, compared to a profit of RMB 185,466,000 in the same period of 2021, indicating a significant decrease in profitability[148]. Cost and Expenses - The group's cost of sales for the reporting period was approximately RMB 397.6 million, an increase of about RMB 43.5 million or 12.3%, mainly due to an increase in sales volume of iron concentrate and aggregate[48]. - Distribution expenses for the reporting period were approximately RMB 0.3 million, a decrease of about RMB 5.8 million or 95.1%, due to a reduction in total sales volume[50]. - Administrative expenses for the reporting period were approximately RMB 52.3 million, an increase of about RMB 13.0 million or 33.1%, primarily due to higher professional service fees and wage costs[51]. - Financing costs for the reporting period were approximately RMB 16.7 million, a decrease of about RMB 1.2 million or 6.7%, mainly due to a reduction in bank borrowings[53]. - The company incurred financing costs of RMB 16,672,000 for the first half of 2022, a slight decrease from RMB 17,886,000 in the same period of 2021[151]. Production and Sales - The group produced approximately 568.0 thousand tons of iron concentrate in the first half of 2022, an increase of about 4.0% compared to the same period last year[28]. - The sales volume of iron concentrate was approximately 563.1 thousand tons, representing a 2.5% increase year-on-year[28]. - The average selling price of iron concentrate decreased by 20.73% to RMB 835.62 per ton compared to RMB 1,054.17 per ton in the previous year[29]. - The total ore extraction at Zhijiazhuang Mine was 993.47 thousand tons, a significant increase of 57.92% from 629.09 thousand tons in 2021[35]. - The total ore extraction at Wang'er Gully and Shuanmazhuang Mines was 4,823.55 thousand tons, a decrease of 3.43% from 4,994.76 thousand tons in 2021[41]. Financial Position - As of June 30, 2022, the group's cash balance was approximately RMB 63.1 million, a decrease of about RMB 41.0 million compared to the end of the previous year[63]. - The group's debt ratio as of June 30, 2022, was approximately 17.1%, a decrease of about 5.9% compared to the end of the previous year[66]. - The group's net value of property, plant, and equipment as of June 30, 2022, was approximately RMB 1,286.3 million, a decrease of RMB 28.6 million or 2.2% compared to the end of the previous year[56]. - The group's bank borrowings as of June 30, 2022, amounted to approximately RMB 177.0 million and RMB 247.0 million, secured by land use rights and properties from related parties and third parties[70]. - Total liabilities decreased to RMB 769,072 thousand from RMB 898,816 thousand at the end of 2021, indicating improved financial stability[112]. - Net assets increased to RMB 1,498,735 thousand as of June 30, 2022, compared to RMB 1,453,645 thousand at the end of 2021, reflecting a growth of 3.1%[114]. Market Conditions - The decline in revenue was primarily attributed to the drop in iron ore prices compared to the previous year[26]. - The company faced challenges due to the COVID-19 pandemic and fluctuations in the iron ore market, impacting supply chain operations[26]. - The Chinese economy grew by 2.5% year-on-year in the first half of 2022, amid complex global conditions[25]. - The management anticipates continued economic pressure due to global economic downturn, exchange rate risks, and inflation risks, and will maintain a prudent approach to business management and strategy[73]. Strategic Initiatives - The group plans to enhance cost reduction and efficiency improvement measures, focusing on budget control and capital expenditure management[73]. - The company aims to leverage opportunities in the construction of the Xiong'an New Area and Baoding, promoting comprehensive utilization projects of solid waste to enhance its market share in green building materials[73]. - The group will collaborate with domestic authoritative research institutions to develop other green building materials through solid waste recycling, aiming for zero emissions in mining production[74]. Employee and Management - The group had a total of 1,046 employees as of June 30, 2022, compared to 920 employees in the same period of 2021, indicating a growth of approximately 13.7%[93]. - Total employee compensation and benefits amounted to approximately RMB 52.6 million for the reporting period, up from approximately RMB 39.9 million in the same period of 2021, reflecting an increase of about 31.8%[93]. - The total remuneration for key management personnel was RMB 1,825,000 for the six months ended June 30, 2022, a decrease of 7.0% from RMB 1,962,000 for the same period in 2021[194]. Compliance and Governance - The board of directors confirmed compliance with the standard code for securities trading throughout the reporting period[87]. - The company maintained the required public float as per the listing rules throughout the reporting period[103]. - The audit committee reviewed the interim financial performance, which was unaudited but deemed to comply with applicable accounting principles and listing rules[102]. Environmental and Regulatory - The company has implemented regulations under the "Green Mine Construction Standards" since 2020, enhancing its environmental management and resource conservation efforts[186]. - The company is in the process of applying for national and provincial-level green mine titles, with one mine already awarded such a title in February 2021[186]. - The company has not identified any significant environmental liabilities that could adversely affect its financial position or operating results[182].

Financial Performance - Aowei Holding Limited reported a revenue of approximately $XX million for the fiscal year 2021, reflecting a year-over-year increase of YY%[7] - In 2021, the company achieved a revenue of approximately RMB 1,191.7 million, representing a year-on-year increase of about 109.8%[26] - The net profit attributable to the parent company was approximately RMB 203.1 million, reversing a loss and increasing profit by about RMB 273.7 million compared to the previous year[26] - The company’s gross profit for 2021 was RMB 417.2 million, compared to RMB 94.1 million in 2020, indicating a substantial improvement[19] - The total equity of the company increased to RMB 1,453.6 million in 2021 from RMB 1,250.6 million in 2020[19] - The company’s operating profit for 2021 was RMB 304.3 million, a significant recovery from a loss of RMB 38.0 million in 2020[19] - The group recorded a net profit after tax of approximately RMB 203.1 million, mainly due to the increase in gross profit[77] - The group’s revenue for the reporting period was approximately RMB 1,191.7 million, an increase of about RMB 623.7 million compared to the previous year, primarily due to increased sales volume and average selling price of iron concentrate[67] - The gross profit for the reporting period was approximately RMB 417.2 million, representing a 343.5% increase compared to the previous year, with a gross margin improvement from 16.6% to 35.0%[69] Production and Sales - The production of iron concentrate reached approximately 1,121.9 thousand tons, a year-on-year increase of about 55.0%[42] - The sales volume of iron concentrate was approximately 1,127.1 thousand tons, reflecting a year-on-year increase of about 62.0%[42] - In 2021, the company's iron ore business recorded revenue of approximately RMB 1,109.4 million, an increase of about 128.3% compared to the previous year[44] - The total production and sales of sand and gravel aggregates reached 2,315.5 thousand tons, with sales of 2,133.6 thousand tons and an average selling price of RMB 36.4 per ton[63] Market and Industry Outlook - Future outlook includes continued investment in iron ore exploration and mining operations to meet increasing demand in the market[6] - The company anticipates that in 2022, the steel industry will experience low supply and demand due to the ongoing COVID-19 pandemic and geopolitical tensions, leading to a contraction in production and weak demand affecting steel and iron ore prices[113] - The company is focusing on green mining initiatives in response to stricter government regulations, with a requirement for all mining companies in Baoding, Hebei Province to complete green mining assessments by 2023[100] Corporate Governance and Management - The company is committed to improving corporate governance and transparency in its operations[4] - The management team has undergone changes, with key personnel transitions occurring in March and September 2022 due to various reasons including job transfers and health issues[125][127] - The company has established a responsibility insurance arrangement for its directors to cover potential costs and liabilities arising from claims[137] - The company’s organizational bylaws provide indemnification for directors against liabilities incurred in the execution of their duties[136] Strategic Initiatives - Aowei Holding Limited has expanded its business to include hospital management services and the production of green building materials from tailings recycling[6] - The company aims to enhance shareholder value and create wealth for society, aligning with its core values[3] - The company aims to collaborate with renowned research institutions to develop new products from solid waste recycling, aligning with green development goals[29] - The company plans to enhance its internal management and continue cost control measures in response to ongoing challenges from COVID-19[27] Environmental Sustainability - The company is focused on developing new technologies for sustainable mining practices and waste recycling[6] - The company has established a comprehensive utilization project for solid waste, contributing to environmental sustainability[6] - The company is committed to achieving zero emissions of solid waste and will collaborate with domestic research institutions to develop other green building materials through solid waste recycling[114] Financial Position and Capital Management - The company has a strong balance sheet with assets totaling $XX million as of the end of 2021[15] - The group’s cash and cash equivalents as of December 31, 2021, amounted to approximately RMB 104.1 million, an increase of about RMB 83.9 million or 415.3% year-on-year[84] - The group’s bank loans as of December 31, 2021, were RMB 557.0 million, a decrease of RMB 51 million or 8.4% compared to the end of the previous year[85] - The debt ratio as of December 31, 2021, was approximately 22.2%, a decrease of about 3.9% compared to the same period last year[88] Customer and Supplier Relationships - The largest customer accounted for 54.3% of total sales in 2021, up from 37.7% in 2020, indicating a significant increase in customer concentration risk[150] - The top five customers represented 95.8% of total sales in 2021, compared to 88.2% in 2020, highlighting a trend of increasing reliance on a small number of customers[150] - The largest supplier contributed 9.6% to total purchases in 2021, down from 14.8% in 2020, suggesting improved supplier diversification[150] Internal Controls and Compliance - The company has implemented multiple measures to enhance internal controls, including training for management and staff, and improving approval processes for prepaid and refund transactions[106] - The company has engaged external consultants to review and enhance its internal control systems, particularly regarding prepaid transactions[106] - The auditors have indicated that if the company continues to implement effective internal controls, the anticipated audit adjustments for the fiscal year ending December 31, 2022, are expected to be resolved[109]

Financial Performance - Revenue for the six months ended June 30, 2021, was approximately RMB 605.9 million, an increase of RMB 379.1 million or 167.2% compared to the same period last year[14]. - Gross profit for the same period was approximately RMB 251.8 million, up RMB 242.5 million or 2,617.5% year-on-year, with a gross margin of 41.56%[14]. - The profit attributable to equity holders of the company was approximately RMB 145.0 million, compared to a loss of RMB 85.3 million in the same period last year[14]. - Basic earnings per share for the period was RMB 0.09, compared to a loss per share of RMB 0.05 in the previous year[14]. - The company reported a profit before tax of RMB 182,391,000, reversing a loss of RMB 92,803,000 in the previous year[118]. - Net profit for the period was RMB 144,997,000, compared to a loss of RMB 85,324,000 in the prior year[118]. - The company reported a net cash generated from operating activities of RMB 19,728,000 for the six months ended June 30, 2021, compared to a net cash used of RMB 111,471,000 for the same period in 2020[134]. Market and Operational Insights - The iron ore market showed a steady increase in supply and demand compared to 2020, with iron ore prices rising significantly, reaching USD 218.4 per ton by the end of June 2021[20]. - The global economic recovery was significantly boosted by the rollout of COVID-19 vaccines, although challenges remained due to uneven recovery across different countries[20]. - The company operates three iron ore mines located in Hebei Province, which is the highest in steel production and iron ore consumption in China[5]. - The iron ore business of the company showed significant growth, with iron concentrate production reaching approximately 545.9 thousand tons, an increase of about 64.2% compared to the same period last year[22]. - Iron concentrate sales volume was approximately 549.5 thousand tons, reflecting a growth of about 62.6% year-on-year[22]. - The average selling price of iron concentrate increased by 71.47% to RMB 1,054.17 per ton compared to RMB 614.79 per ton in the previous year[23]. Cost Management and Efficiency - The company implemented cost reduction and efficiency improvement measures to enhance profitability during the reporting period[20]. - The cash operating cost for the iron concentrate from Jiheng Mining was RMB 454.5 per ton, while for Jingyuan Mining, it was RMB 692.5 per ton[22]. - The total cash operating cost for iron concentrate from Wang'er Gou and Shuanma Zhuang mines was RMB 692.51 per ton, up 21.50% from RMB 569.95 per ton in the previous year[36]. - Financing costs for the reporting period were approximately RMB 17.9 million, a decrease of about RMB 4.5 million or 20.1% compared to the same period last year[49]. Strategic Initiatives - The company has been actively adjusting its marketing strategies in response to market dynamics[20]. - The company plans to strengthen internal management and adjust production and sales strategies in response to market dynamics and the ongoing pandemic situation[73]. - The company is actively promoting comprehensive utilization of solid waste and green building materials while ensuring stable operations in the iron ore business[74]. - The implementation plan and preferential policies for comprehensive utilization of solid waste in Hebei Province are expected to drive rapid development for the company[74]. - The company plans to expand the scale of solid waste utilization through acquisitions or new constructions to increase market share in green building materials[74]. Environmental and Social Responsibility - The company emphasizes ecological priority and green development, aligning with national environmental protection policies to enhance its market position in green building materials[42]. - The company implemented green mining construction regulations according to the "Green Mining Construction Standards for Nonferrous Metal Industry" since 2020, enhancing environmental management and resource conservation efforts[185]. - The company received national/provincial-level green mine certification for its mining operations in February 2021[185]. - The company has strengthened self-restraint in mining operations, focusing on energy conservation and environmental remediation[185]. Employee and Management Information - The total number of employees as of June 30, 2021, was 920, an increase from 900 in the same period of 2020[105]. - Total employee compensation and benefits expenses for the reporting period amounted to approximately RMB 39.9 million, compared to approximately RMB 32.7 million in the same period of 2020, reflecting a year-over-year increase of about 22%[105]. - The total remuneration for key management personnel was RMB 1,962,000 for the six months ended June 30, 2021, a decrease from RMB 2,224,000 in the same period of 2020[193]. - The company continues to invest in employee training programs to enhance skills and knowledge relevant to its operations[106]. Financial Position and Assets - Total assets as of June 30, 2021, were RMB 1,554,235,000, an increase from RMB 1,425,351,000 as of December 31, 2020[120]. - The company's inventory as of June 30, 2021, was approximately RMB 144.7 million, an increase of about RMB 13.0 million or 9.8% compared to the end of the previous year[54]. - The company's net assets increased to RMB 1,395,549,000, up from RMB 1,250,559,000 as of December 31, 2020, representing an increase of approximately 11.6%[122]. - The total amount of trade and other receivables, net, was RMB 734,429,000 as of June 30, 2021, compared to RMB 452,856,000 as of December 31, 2020, marking an increase of approximately 62%[163]. Debt and Financing - The group’s debt ratio as of June 30, 2021, was approximately 23.0%, a decrease of 3.1% from the end of last year[66]. - The company raised new bank loans amounting to RMB 400,000,000 during the reporting period, compared to RMB 390,000,000 in the previous year[134]. - The company obtained two new bank loans totaling RMB 400,000,000 with fixed interest rates of 9% and 3.8% as of June 30, 2021[177]. - The company experienced a covenant breach related to liquidity ratios as of June 30, 2021, but management believes there are sufficient alternative financing sources available[177]. Compliance and Governance - The company confirmed compliance with the standards for securities trading by all directors as of June 30, 2021[88]. - The company has maintained compliance with all relevant government fees and regulations during the reporting period[186]. - The company has not reported any significant impact from the application of new International Financial Reporting Standards during the reporting period[141]. - The company has not reported any changes in director information that require disclosure under the listing rules[90].

Financial Performance - The company's revenue for 2020 was RMB 567,977,000, a decrease of 30.4% compared to RMB 815,549,000 in 2019[15] - Gross profit for 2020 was RMB 94,089,000, down 65.2% from RMB 270,235,000 in the previous year[15] - The net loss attributable to shareholders for 2020 was RMB 70,571,000, compared to a loss of RMB 98,971,000 in 2019, showing an improvement[15] - The company's operating loss for 2020 was RMB 38,021,000, an improvement from a loss of RMB 77,234,000 in 2019[15] - Revenue for the reporting period was approximately RMB 568.0 million, a decrease of about 30.4% compared to the previous year[22] - Gross profit decreased to RMB 94.1 million, with a gross margin dropping from 33.1% in the previous year to 16.6%[22] - The company recorded a net loss of approximately RMB 70.6 million after tax, a decrease of about 28.4 million compared to the previous year, mainly due to reduced impairment provisions[39] - The group's revenue for the reporting period was approximately RMB 568.0 million, a decrease of about RMB 247.5 million compared to the same period last year[60] - The group's gross profit was approximately RMB 94.1 million, down by about RMB 176.1 million year-on-year, resulting in a gross margin decline from 33.1% to 16.6%[63] Operational Highlights - The company has three iron ore mines located in Hebei Province, which is the highest in steel production and iron ore consumption in China[10] - The company is engaged in iron ore exploration, mining, and sales, as well as hospital management services and green building materials production[10] - The company plans to continue the stable operation of its iron ore business while actively promoting the development of its green building materials business in response to national strategies[26] - The company aims to complete the green mine construction at Jiheng Mining by 2021, which is expected to enhance sustainable operations[22] - In 2020, the company's iron ore production decreased by approximately 43.8% year-on-year, totaling about 723.8 thousand tons, primarily due to the impact of COVID-19 and the implementation of green mining practices[38] - The sales volume of iron concentrate for the year was approximately 695.7 thousand tons, representing a year-on-year decrease of about 46.6%[38] - The company has initiated green mining construction in compliance with national policies, with the Hebei provincial government requiring all mining enterprises to complete green mining assessments by 2023[35] - The company has adjusted its sales strategy to prioritize local customers to mitigate the economic impact of the pandemic[34] Financial Position - Non-current assets amounted to RMB 1,425.4 million in 2020, an increase from RMB 1,311.1 million in 2019[18] - Current assets decreased to RMB 904.8 million in 2020 from RMB 1,023.2 million in 2019[18] - Total equity as of December 31, 2020, was RMB 1,250.6 million, down from RMB 1,321.3 million in 2019[18] - As of December 31, 2020, the group's cash and cash equivalents amounted to approximately RMB 20.2 million, a decrease of about RMB 441.4 million or 95.6% year-on-year[78] - The group's total liabilities ratio was approximately 26.1%, an increase of about 2.3% compared to the previous year[80] - The group's inventory increased by approximately RMB 18.3 million or 16.2% year-on-year, totaling about RMB 131.8 million[74] Strategic Initiatives - The company aims to create wealth for society and value for shareholders while providing career opportunities for employees[5] - The company plans to improve operational management and financial performance while strictly controlling cash operating costs to enhance profitability in the future[99] - The company aims to expand its market share in the sand and gravel aggregate market in the Beijing-Tianjin-Hebei region by leveraging regional and policy advantages[100] - Continuous exploration of other derivative products from solid waste recycling is planned to establish a green building materials industrial base[100] Risk Management - The company will implement various measures to mitigate the impact of COVID-19 on its operations and ensure the health and safety of its employees[24] - The company anticipates a complex operating environment in the steel and mining sectors in 2020, and plans to leverage its low-cost advantage and proactive sales strategies to mitigate price volatility risks[130] - The company faces competition risks as domestic iron ore sales may decline due to increasing demand for higher-quality imported iron ore, prompting the company to enhance ore quality through technological upgrades[129] Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal control procedures, consisting of three independent non-executive directors[200] - The company has confirmed compliance with the disclosure requirements of the listing rules regarding related party transactions[170] - The company has been actively managing its risk and internal control systems as part of its governance practices[200] Shareholder Information - As of December 31, 2020, the company's distributable reserves amounted to RMB 882 million, allowing for potential dividends to shareholders under certain conditions[140] - The company's major customers are highly concentrated, with the largest customer accounting for 37.7% of total sales in 2020, down from 40.1% in 2019, indicating a slight diversification in customer base[143] - The top five customers collectively represented 88.2% of total sales in 2020, a decrease from 98.4% in 2019, suggesting improved customer diversification[145] - The company has established non-exclusive sales agreements with multiple potential customers to mitigate risks associated with customer concentration[145]

Financial Performance - For the six months ended June 30, 2020, the company's revenue was approximately RMB 226.8 million, a decrease of about RMB 203.8 million or 47.3% compared to the same period last year[12]. - The gross profit for the same period was approximately RMB 9.3 million, down by about RMB 154.0 million or 94.3%, resulting in a gross margin of approximately 4.1%[12]. - The company reported a loss attributable to equity holders of approximately RMB 85.3 million, compared to a profit of RMB 74.0 million in the same period last year[12]. - The basic and diluted loss per share for the period was RMB 0.05, while the same period last year reported earnings per share of RMB 0.05[12]. - The group's revenue for the reporting period was approximately RMB 226.8 million, a decrease of about RMB 203.8 million or 47.3% compared to the same period last year, primarily due to the impact of COVID-19 and the suspension of operations at Jiheng Mining for green mining construction[47]. - The group recorded a net loss of approximately RMB 85.3 million for the reporting period, compared to a profit of RMB 74.0 million in the same period last year, primarily due to the decline in gross profit[57]. - The total comprehensive loss for the six months ended June 30, 2020, was RMB 85,324,000, compared to a profit of RMB 73,961,000 for the same period in 2019[155]. - Basic loss per share for the six months ended June 30, 2020, was RMB 0.052, compared to a profit of RMB 0.045 for the same period in 2019[155]. Market Conditions - The domestic GDP for the first half of 2020 was RMB 45.66 trillion, reflecting a year-on-year decline of 1.6% due to the impact of the pandemic and international situation[24]. - The steel industry’s market demand decreased, with the steel PMI averaging 45.3%, down 5.5 percentage points year-on-year[24]. - The new export order index averaged 35.1%, a decrease of 10.6 percentage points compared to the same period last year, with total steel exports of 28.704 million tons, down 16.5% year-on-year[24]. - The outlook for the second half of 2020 indicates a recovery in steel demand due to increased infrastructure projects and economic recovery post-pandemic[80]. - The steel industry is undergoing structural adjustments and upgrades, with a focus on green development and environmental performance improvements[81]. Operational Performance - The group experienced significant operational disruptions due to COVID-19, impacting production and sales performance[27]. - In the first half of 2020, the group's iron concentrate production was approximately 332.5 thousand tons, a decrease of about 54.4% compared to the same period last year[27]. - The group's iron concentrate sales volume was approximately 338.0 thousand tons, a decrease of about 53.4% year-on-year[27]. - The average selling price of iron concentrate for the group was RMB 614.79 per ton, an increase of 3.74% compared to RMB 592.64 per ton in the previous year[28]. - The cash operating cost for iron concentrate from Jingyuan Cheng Mining was approximately RMB 570.0 per ton[27]. - The total iron ore output from the Zhijiazhuang mine was 450.46 thousand tons, a decrease of 13.73% from 522.16 thousand tons in the previous year[34]. - The total iron ore output from Wang'er Gou and Shuanma Zhuang mines was 3,999.16 thousand tons, a decrease of 5.12% from 4,215.04 thousand tons in the previous year[38]. Expenses and Costs - The group's sales cost for the reporting period was approximately RMB 217.5 million, a decrease of about RMB 49.8 million or 18.6% compared to the previous year, mainly due to reduced sales volume of iron concentrate[50]. - Distribution expenses increased by approximately RMB 10.5 million or 665.5% to RMB 12.1 million, primarily due to transportation costs for sand and gravel products sold during the trial production period[52]. - Administrative expenses rose by approximately RMB 24.6 million or 56.3% to RMB 68.2 million, mainly due to losses incurred during the suspension of operations[53]. - Financing costs increased by approximately RMB 2.5 million or 12.6% to RMB 22.4 million, attributed to an increase in bank loans[54]. - The cost of inventory for the six months ended June 30, 2020, was RMB 217,509,000, down from RMB 267,295,000 in the same period of 2019, reflecting a decrease of approximately 18.6%[147]. Assets and Liabilities - The net value of property, plant, and equipment as of June 30, 2020, was approximately RMB 755.8 million, a decrease of about RMB 39.3 million or 4.9% from the end of the previous year[58]. - Total non-current assets as of June 30, 2020, were RMB 1,287.670 million, a slight decrease from RMB 1,311.093 million as of December 31, 2019[115]. - Current assets decreased to RMB 988.307 million from RMB 1,023.242 million at the end of 2019[115]. - Current liabilities were RMB 687.780 million, down from RMB 841.677 million at the end of 2019[115]. - Non-current liabilities increased to RMB 352,082 thousand as of June 30, 2020, compared to RMB 171,388 thousand as of December 31, 2019, reflecting a significant rise of 105.5%[117]. - The company's net asset value decreased to RMB 1,236,115 thousand as of June 30, 2020, down from RMB 1,321,270 thousand as of December 31, 2019, representing a decline of 6.5%[121]. Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2020, was a cash outflow of RMB 111.5 million, compared to an inflow of RMB 387.8 million in 2019[66]. - The net cash outflow from investment activities during the reporting period was approximately RMB 33.0 million, mainly due to expenditures on property, plant, and equipment[69]. - The net cash inflow from financing activities was approximately RMB 43.0 million, primarily from new bank loans of RMB 390.0 million[70]. - As of June 30, 2020, the cash balance was approximately RMB 360.2 million, a decrease of about RMB 101.4 million from the end of last year[71]. - Cash and cash equivalents decreased to RMB 360,221 thousand as of June 30, 2020, down from RMB 548,788 thousand as of June 30, 2019, reflecting a decline of 34.4%[123]. Shareholder Information - As of June 30, 2020, Mr. Li Ziwei and Mr. Li Yanjun collectively hold 1,221,877,000 shares, representing approximately 74.72% of the issued shares[87]. - Major shareholders include Aowei International Development Limited and Credit Suisse Trust Limited, each holding 1,221,877,000 shares, which is 74.72% of the issued shares[88]. - Fresh Idea Ventures Limited holds a guarantee interest in 1,089,630,000 shares, representing 66.63% of the issued shares[88]. - The company did not adopt any share option schemes as of the report date[94]. Compliance and Governance - All directors confirmed compliance with the standard code of conduct for securities trading during the six-month period ending June 30, 2020[95]. - The company maintained compliance with public float requirements throughout the reporting period[107]. - The company did not declare any interim dividend for the six months ended June 30, 2020[108].

Mining Operations and Strategy - The company reported a significant focus on iron ore exploration, mining, and sales, with operations concentrated in Hebei Province, China, which is the highest in steel production and iron ore consumption[5]. - The company has established three iron ore mines, all fully owned, indicating a strong operational capacity in the mining sector[5]. - The company is focused on expanding its market presence and exploring new technologies in the mining sector[5]. - The company aims to leverage its operational strengths to enhance shareholder value and drive future growth[3]. - The company plans to focus on solid waste comprehensive utilization and green building materials as new development opportunities[20]. - The company aims to leverage the construction needs of the Xiong'an New Area to boost its performance in the future[20]. - The company is committed to green development and is actively promoting the construction of green mines[32]. - The company aims to enhance operational efficiency and minimize environmental impact through various environmental measures[32]. - The company is actively promoting comprehensive utilization projects supported by the state to advance its green building materials business[146]. Financial Performance - The company reported a revenue of approximately RMB 815.5 million for 2019, a decrease of about 4.6% compared to the previous year[20]. - Gross profit for the year was approximately RMB 270.2 million, down 7.5% year-on-year, with a gross margin of 33.1%, a decline of 1.1% from 34.2% in the previous year[20]. - The company experienced a net loss of RMB 98.97 million for 2019, compared to a profit of RMB 41.54 million in 2018[11]. - Non-current assets decreased to RMB 1,311.09 million in 2019 from RMB 1,598.50 million in 2018[14]. - Current assets increased significantly to RMB 1,023.24 million in 2019, up from RMB 623.26 million in 2018[14]. - Total equity decreased to RMB 1,321.27 million in 2019 from RMB 1,419.97 million in 2018[14]. - The company recorded an asset impairment loss of approximately RMB 918 million due to environmental policy restrictions affecting its subsidiary[29]. - The company reported a total revenue of approximately RMB 815.5 million, a decrease of about RMB 39.2 million compared to the previous year, primarily due to a reduction in iron concentrate sales volume and the impact of increased average selling prices[68]. - The gross profit for the period was approximately RMB 270.2 million, a decrease of about RMB 22.0 million or 7.5% compared to the previous year, with the gross margin declining from 34.2% to 33.1%[70]. Market Conditions and Industry Outlook - The global economic outlook for 2020 is uncertain due to the impact of the COVID-19 pandemic, affecting the steel and iron ore industries[21]. - The steel industry is expected to maintain a relatively balanced supply and demand, with a slowdown in steel production and weakened demand due to the pandemic[22]. - The iron ore industry saw a price increase, with the Platts 62% iron ore index rising from USD 72.35 per ton at the beginning of 2019 to a peak of USD 126.35 per ton[19]. - The average iron ore import price increased significantly, with total imports of 1.07 billion tons valued at USD 101.46 billion, a year-on-year increase of 33.6%[28]. - The China Iron Ore Price Index (CIOPI) at the end of December 2019 was 333.04, reflecting a 31.4% increase compared to the end of December 2018[29]. - The company is cautious about profit margins in the steel industry, anticipating a stable iron ore price in 2020[118]. Operational Challenges - The company faced an impairment loss of approximately RMB 165.2 million due to the termination of the hospital management agreement, attributed to changes in laws and regulations[59]. - The company recorded a loss before tax of (114,788) million for 2019, a significant decline of 223.5% from a profit of 92,915 million in the previous year[140]. - The company has faced significant impairment losses related to intangible assets due to the termination of hospital management agreements, amounting to approximately 165.2 million RMB[141]. - The company’s goodwill impairment loss related to Xinan Investment was approximately RMB 10.5 million based on evaluations conducted in previous years[74]. Corporate Governance and Structure - The company has a 100% ownership structure in its key subsidiaries, ensuring full control over its operations and strategic direction[5]. - The company is listed on the Hong Kong Stock Exchange under the stock code 1370, enhancing its visibility and access to capital markets[4]. - The board of directors includes key executives such as Li Yanjun as Chairman and CEO, and Sun Jianhua as Executive Director and CFO[169]. - The company has established a remuneration policy based on performance, experience, and market comparables, which includes salary, housing allowances, and performance-related bonuses[176]. - Independent non-executive directors have confirmed their independence according to the listing rules, ensuring governance integrity[177]. - The company has established internal monitoring and accounts receivable management systems to mitigate the risk of bad debts[150]. Employee and Community Engagement - The company is committed to creating wealth for society, value for shareholders, and opportunities for employees, highlighting its core values[3]. - The company employed a total of 849 full-time employees as of December 31, 2019, with employee benefit expenses amounting to approximately RMB 69.1 million[67]. Future Plans and Investments - The company plans to enhance internal management and take measures to minimize the economic impact of the pandemic on its annual performance[22]. - The company plans to adopt a cautious strategy regarding customer payment progress and will grant credit terms of up to 180 days to customers with good credit history[35]. - The company is investing in R&D for new technologies, allocating $G million towards innovation initiatives aimed at enhancing operational efficiency[124]. - The company plans to implement new marketing strategies that are projected to improve customer engagement by J%[124]. - The company has established partnerships with L firms to expand its distribution network, aiming for a M% increase in market penetration[124].

Financial Performance - For the six months ended June 30, 2019, the revenue was approximately RMB 430.6 million, an increase of about RMB 18.4 million or 4.5% compared to the same period last year[17]. - The gross profit for the same period was approximately RMB 163.3 million, an increase of about RMB 17.3 million or 11.9%, resulting in a gross margin of approximately 37.9%[17]. - The net profit for the period was approximately RMB 74.0 million, an increase of about RMB 24.1 million or 48.2% compared to the previous year[18]. - Basic earnings per share attributable to ordinary shareholders was RMB 4.52, an increase of approximately RMB 1.47 compared to the same period last year[19]. - The company's revenue for the reporting period was approximately RMB 430.6 million, an increase of about RMB 18.4 million or 4.5% compared to the same period last year, primarily due to an increase in the average selling price of iron concentrate[56]. - Gross profit for the reporting period was approximately RMB 163.3 million, an increase of about RMB 17.3 million or 11.9%, with a gross margin of 37.9%, up by 2.5% from the previous year[58]. - The net profit for the reporting period was approximately RMB 74.0 million, an increase of about RMB 24.1 million or 48.2%, with a net profit margin rising from 12.1% to 17.2%[65]. - The total comprehensive income for the six months ended June 30, 2019, was RMB 74,075,000, compared to a loss of RMB 7,564,000 in the same period of 2018, reflecting a strong recovery in profitability[130]. - The company reported a net profit of RMB 73,963 thousand for the six months ended June 30, 2019, compared to RMB 49,914 thousand in 2018, showcasing overall profitability improvement[155]. Mining Operations - The average selling price of iron concentrate increased due to tight market supply, contributing to a revenue of approximately RMB 430.3 million from mining operations, a year-on-year increase of about 4.5%[29]. - The gross profit from mining operations was approximately RMB 166.1 million, an increase of about 11.7% year-on-year, with a gross margin of approximately 38.6%[29]. - The group's iron concentrate production for the reporting period was approximately 728.7 thousand tons, a decrease of about 12.4% compared to the same period last year[31]. - The group's iron concentrate sales volume was approximately 726.0 thousand tons, a decrease of about 10.7% compared to the same period last year[31]. - The average cash operating cost per ton of iron concentrate increased to approximately RMB 415.7, an increase of about 31.4% year-on-year[31]. - The mining cost for the Shijiazhuang mine was RMB 227.47 per ton, reflecting a significant increase of 348.84% compared to the previous year[39]. - The total cash operating cost for iron concentrate at the Shijiazhuang mine was RMB 345.62 per ton, an increase of 114.19% year-on-year[39]. - The stripping ratio at the Shijiazhuang mine increased significantly to 3.34 tons per ton, a rise of 1,490.48% compared to the previous year[37]. - The average selling price of iron concentrate for the group was RMB 592.64 per ton, an increase of 16.97% compared to the previous year[32]. - The ore extraction volume for the Wang'er Gou and Shuanma Zhuang mines was 4,215.04 thousand tons, a decrease of 16.45% compared to 5,045.14 thousand tons in the same period last year[43]. Cash Flow and Financing - The net cash inflow from operating activities was approximately RMB 387.8 million, significantly higher than RMB 110.9 million in the same period last year[73]. - The net cash outflow from investing activities was approximately RMB 181.3 million, mainly due to expenditures for purchasing property, plant, and equipment[74]. - The net cash generated from operating activities for the six months ended June 30, 2019, was RMB 387,816 thousand, compared to RMB 110,935 thousand in 2018, indicating improved cash flow[157]. - Financing activities generated a net cash inflow of RMB 276,204,000, a turnaround from a net cash outflow of RMB 38,099,000 in the same period last year, driven by increased borrowings[130]. - The company's total assets as of June 30, 2019, included net property, plant, and equipment valued at approximately RMB 658.5 million, a decrease of about RMB 5.0 million or 0.8% from the end of the previous year[66]. - Trade receivables increased to approximately RMB 89.5 million, an increase of about RMB 29.2 million, primarily due to an increase in sales on credit[69]. - The net cash inflow from financing activities during the reporting period was approximately RMB 276.2 million, primarily from new bank loans of RMB 470.0 million, with repayments of bank loans amounting to RMB 180.0 million[75]. - The group's bank loans amounted to RMB 570.0 million as of June 30, 2019, representing an increase of approximately RMB 290.0 million or 103.6% from the end of the previous year[77]. - The debt ratio increased from approximately 36.1% as of December 31, 2018, to approximately 40.7% as of June 30, 2019[79]. Operational Management and Strategy - The company plans to utilize tailings from the dry selection process as raw materials for sand and gravel aggregate, which may help reduce some costs[39]. - The company is actively exploring the recycling of tailings for construction aggregates, aligning with national policies supporting green building materials[46]. - The company will continue to improve operational management and financial performance while strictly controlling cash operating costs to enhance profitability in the future[86]. - The company is focused on expanding its operations in the iron ore mining sector and enhancing its hospital management services in China, aiming for sustainable growth[133]. - The company plans to continue investing in new technologies and product development to strengthen its market position and drive future revenue growth[133]. Employee and Corporate Governance - As of June 30, 2019, the company had a total of 837 employees, a slight decrease from 845 employees in the same period of 2018[102]. - Total employee compensation and benefits expenses for the reporting period amounted to approximately RMB 36.9 million, compared to RMB 35.0 million in the same period of 2018[102]. - The company has not adopted any share option schemes as of the report date[96]. - The company maintained the required public float as per the listing rules throughout the reporting period[109]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial performance for the six months ending June 30, 2019[108]. - The company has complied with the corporate governance code as stipulated in the listing rules during the reporting period[107]. Legal and Regulatory Matters - There were no significant legal proceedings or arbitrations involving the group as of June 30, 2019[111]. - The group has no significant contingent liabilities as of June 30, 2019, apart from those disclosed in the report[85]. - There were no significant events affecting the company and its subsidiaries after June 30, 2019, except for those disclosed in the report[106]. Accounting Standards and Financial Reporting - The company adopted IFRS 16 "Leases" effective January 1, 2019, which introduces a single accounting model for lessees, requiring recognition of all lease liabilities and right-of-use assets, except for short-term leases and low-value assets[139]. - The company has adopted the revised retrospective method for the first-time application of IFRS 16, which may impact future financial reporting and asset valuations[132]. - The transition to IFRS 16 did not have a significant impact on the company's financial performance or position for prior periods[140]. - The company will continue to present right-of-use assets as part of property, plant, and equipment in the financial statements[146].

股份代號：1370 （前稱「Hengshi Mining Investments Limited 恒實礦業投資有限公司」） ANNUAL REPORT 2018 （於英屬處女群島註冊成立並於開曼群島續存之有限公司） 奧威控股有限公 司 年報 2018 2018 AOWEI HOLDINGS LIMITED ANNUAL REPORT e Cayman Islands with limited liability） （Incorporated in the British Virgin Islands and continued in th 司） （formerly known as Hengshi Mining Investments Limited 恒實礦業投資有限公 0 137 ： Stock Code 年報 2018 核心價值 為社會創造財富 為股東創造所值 為員工創造前程 目錄 公司資料2 五年財務摘要5 主席報告7 管理層討論及分析 12 董事和高級管理人員簡介 31 董事會報告書 35 企業管治報告 50 環境、社會及管治報告 63 獨立核數師報告 84 綜合損益及其他全面收益表 90 綜合財務狀 ...