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，概不對因本公告全部或任何部份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。 CHINA METAL RESOURCES UTILIZATION LIMITED 中國金屬資源利用有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1636） 有關對本公司截至二零二四年十二月三十一日止年度的 財務報表之無法表示意見 本公司核數師對本公司截至二零二四年十二月三十一日止年度之財務報表的持續經 營問題出具無法表示意見（「無法表示意見」）。本公告旨在向投資者提供最新資料， 以便彼等知悉本公司解決無法表示意見事宜的措施。 目前為止，本公司營運附屬公司綿陽銅鑫銅業有限公司（「銅鑫」）、綿陽金循環金屬 材料有限公司（「金循環」）、綿陽保和泰越通信線纜有限公司（「泰越」）、湖南銀聯湘 北銅業有限公司（「銀聯湘北」）及湖北融晟金屬製品有限公司（「湖北融晟」）根據《中 華人民共和國企業破產法》適用條文正與現有債權人進行重整（「債務重整」）。本公 司已計劃並預期該等附屬公司（「相關附屬公司」）的債務 ...

Stock Options - The total number of stock options available under the 2014 stock option plan was 345,602,006 shares as of January 1, 2024, representing 7.71% of the total issued shares at that time[6]. - By December 31, 2024, the total number of stock options available under the same plan decreased to 0 shares, indicating the plan's expiration[6]. - A total of 141,883,334 stock options were granted across all categories, with 139,800,000 remaining after accounting for cancellations[5]. - The exercise price for options granted to directors was HKD 0.465, while the share price at the time of grant was HKD 0.168[3]. - The company reported a cancellation of 2,083,334 stock options during the year, reflecting adjustments in the stock option plan[5]. - The stock options granted to employees (excluding directors) totaled 107,075,000, with 105,800,000 remaining after cancellations[5]. - The 2014 stock option plan expired on January 28, 2024, with no further options available thereafter[6]. Governance - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure[7]. Future Outlook - The company has not disclosed any new product developments or market expansion strategies in the current report[6]. - The company has not provided specific future performance guidance or outlook in the current announcement[6].

Company Overview - China Metal Resources Utilization Co., Ltd. specializes in the processing of recycled copper and was listed on the Hong Kong Stock Exchange in February 2014, with a market capitalization of 12 billion HKD [4] - The company has established multiple industrial bases across various provinces in China and fully owns over 20 subsidiaries involved in copper processing [4] - It has a production capacity of 880,000 tons for copper melting, 80,000 tons for deep processing, and 500,000 tons for standardized waste copper processing, forming a complete industrial chain from resource recovery to manufacturing [4] Financial Performance - As of December 31, 2024, the company reported total revenue of 468 million CNY, a year-on-year decrease of 44.13%, and a net profit attributable to shareholders of -652 million CNY, an increase of 19.03% year-on-year [2] - The gross profit margin stands at -6.57%, with a debt-to-asset ratio of 484.21% [2] Market Position and Valuation - The company's price-to-earnings (P/E) ratio is -0.19, ranking 66th in the industry, while the average P/E ratio for the general metals and minerals industry is -3.69 [3] - The company has not received any investment rating suggestions from institutions [3] Industry Context - The company operates within the broader context of the green economy and has established a comprehensive e-commerce platform for transaction settlement in the recycling industry [4] - It has received multiple honors, including being listed among the "Top 500 Private Enterprises in China" and "Top 100 Private Enterprises in Sichuan" [4]

Financial Performance - In 2024, the Group's revenue declined to RMB468.0 million, down from RMB837.7 million in the previous year, resulting in a gross loss of RMB30.7 million and a net loss of RMB653.5 million[20]. - The loss per share was RMB0.15 in 2024, compared to RMB0.18 in the previous year, primarily due to the decision to stop production since July 2024[20]. - The Group's gross loss improved from RMB111.9 million in 2023 to RMB30.7 million in 2024, indicating progress in operational efficiency despite revenue decline[20]. - Revenue for the year ended December 31, 2024, amounted to approximately RMB 468.0 million, representing a decrease of 44.13% from approximately RMB 837.7 million for the year ended December 31, 2023[74]. - Revenue from recycled copper products was approximately RMB 458.1 million for the year ended December 31, 2024, a decrease of 43.52% from approximately RMB 811.1 million for the year ended December 31, 2023[75]. - The loss for the year ended 31 December 2024 was RMB652.5 million, compared to a loss of RMB805.8 million for the year ended 31 December 2023, reflecting a decrease in loss of RMB155.9 million[91]. Market Conditions - The copper market in China saw prices rise from approximately RMB69,000 per ton at the beginning of the year to around RMB74,000 per ton by year-end, peaking at RMB87,000 per ton during the year[13]. - The surge in copper prices was driven by increased demand from sectors such as renewable energy, electric vehicles, and infrastructure development[15]. - The overall economy in China grew by 5.6% in 2024, providing a solid foundation for the copper industry's performance[12]. - The Chinese government's commitment to infrastructure investment and sustainable development presents significant opportunities for the copper market[18]. - The copper sector's outlook is supported by the 14th Five-Year Plan and policies promoting green and low-carbon development, with anticipated demand growth driven by electric vehicles and renewable energy systems[30][34]. Operational Challenges - The Group's communication cables and power transmission businesses remained suspended throughout 2024 due to a lack of working capital and challenges in the real estate sector[24]. - The real estate sector in 2024 is experiencing a slowdown, influenced by external factors such as the Russia-Ukraine conflict and global interest rate hikes, prompting the central government to implement expansionary fiscal and monetary policies[27][29]. - Stringent environmental regulations and resource scarcity pose challenges to the copper industry, potentially disrupting supply chains and production capacity[31][37]. - A new taxation policy has significantly increased the tax burden on suppliers in the recycling industry, leading to higher operational costs and potential supply chain disruptions[32][35]. - Delays in receiving government grants due to new regulations have created temporary financial strain on the Group, affecting cash flow and investment capabilities[39][41]. Debt Restructuring and Bankruptcy - The successful completion of debt restructuring and bankruptcy reorganization processes is crucial for the Group's long-term sustainability and growth prospects[26]. - The Group is actively exploring strategies to mitigate the impact of the new taxation policy and grant delays, including optimizing supplier relationships and seeking alternative funding sources[38][45]. - The successful completion of bankruptcy reorganizations and debt restructuring for subsidiaries is a top priority, with confidence in long-term business prospects despite near-term challenges[47]. - The company is actively pursuing bankruptcy reorganization applications for its subsidiaries, including Mianyang Tongxin Copper Co., Ltd., Mianyang Jin Xunhuan Metal Materials Co., Ltd., Mianyang Baohe Taiyue Communications Cable Co. Ltd., Hunan Yinlian Xiangbei Copper Co., Ltd., and Hubei Rongsheng Copper Co., Ltd.[48]. - The company aims to reduce the debts of its subsidiaries through the debt restructuring process, which is expected to enhance their revenue generation capabilities[51]. - Significant progress was made in the bankruptcy reorganization and debt restructuring processes throughout 2024, including the acceptance of applications by the courts and the appointment of administrators[65]. Financial Position - As at 31 December 2024, the Group's cash and cash equivalents amounted to approximately RMB3.6 million, down from approximately RMB18.3 million in 2023[104]. - Total interest-bearing borrowings as at 31 December 2024 were approximately RMB1,666.4 million, slightly increasing from RMB1,652.3 million as at 31 December 2023[100]. - The Group's inventories decreased by RMB25.3 million to approximately RMB39.2 million as of 31 December 2024, compared to approximately RMB64.5 million in 2023[105]. - Trade and bills receivables decreased by approximately RMB133.0 million to approximately RMB13.3 million as of 31 December 2024, with turnover days increasing to 384 days from 221 days in 2023[106]. - The negative debt to equity ratio was -40.0% as of 31 December 2024, compared to -47.1% in 2023, attributed to net liabilities of approximately RMB4,161.5 million[116]. Management and Governance - The company has a focus on corporate and strategic development, with Mr. Kwong overseeing these areas[150]. - The management team has extensive experience in their respective fields, contributing to the company's strategic direction[154]. - The company has appointed several independent non-executive directors to enhance governance and oversight[156]. - The biographies of Directors and senior management are detailed in the report, highlighting their extensive experience in various fields[167]. - The independent non-executive Directors have confirmed their independence according to Rule 3.13 of the Listing Rules[172].

Company Overview - ZeRun New Energy (301636.SZ) has launched its subscription on April 28, with an issue price of 33.06 CNY per share and a maximum subscription limit of 0.45 million shares, reflecting a price-to-earnings ratio of 17.57 times [1] - The company specializes in the field of new energy electrical connections, protection, and intelligent technology, providing integrated solutions for photovoltaic module junction boxes [1] - ZeRun New Energy is recognized as a high-tech enterprise and a national-level specialized and innovative "little giant" enterprise [1] Industry Insights - The photovoltaic module junction box is a critical component in solar photovoltaic power generation systems, essential for connection and protection [1] - The industry is experiencing growth opportunities due to the booming photovoltaic sector, with a trend of increasing domestic production rates [1] - The products are not only meeting domestic photovoltaic power station installation demands but are also widely exported to Europe, America, and other emerging markets, with a steady increase in export volume [1] Financial Performance - The company reported revenues of approximately 297 million CNY, 522 million CNY, 844 million CNY, and 420 million CNY for the years 2021, 2022, 2023, and the first half of 2024, respectively [2] - Net profits for the same periods were approximately 37.78 million CNY, 86.40 million CNY, 120 million CNY, and 75.34 million CNY [2] - Total assets as of June 2024 were approximately 1,009.75 million CNY, with a debt-to-asset ratio of 46.92% [3] - The company’s net profit attributable to the parent company for the first half of 2024 was 75.34 million CNY, with a basic earnings per share of 1.57 CNY [4] Fundraising and Investment Plans - The funds raised will be allocated to projects including the expansion of general and intelligent junction box production, construction of auxiliary power battery boxes for new energy vehicles, and the establishment of a research and development center [2] - The total investment for these projects amounts to approximately 727.68 million CNY, with the fundraising amounting to 720 million CNY [2]

Financial Performance - Revenue decreased by 44.1% to RMB 468.0 million for the year ended December 31, 2024, compared to RMB 837.7 million in 2023[3]. - The company reported a net loss attributable to shareholders of RMB 652.5 million, down from RMB 805.8 million in 2023[3]. - The basic loss per share was RMB 0.15, compared to RMB 0.18 in the previous year[3]. - The group reported a net income of RMB 30,301,000 for 2024, a decrease from RMB 52,029,000 in 2023, reflecting a decline of approximately 41.6%[30]. - The group reported a loss before tax of RMB 1,077,000 in 2024, compared to a loss of RMB 13,000 in 2023, indicating a significant increase in losses[35]. - The loss for the fiscal year ending December 31, 2024, was RMB 652.5 million, an improvement from a loss of RMB 805.8 million in the previous year, mainly due to reduced bad debt provisions and supplier impairment[77]. - The group incurred financial costs of RMB 336,005,000, contributing to a pre-tax loss of RMB 653,539,000[21]. - The total revenue from the recycling copper products segment was RMB 467,542,000, while the revenue from the power cable segment was RMB 437,000, and the communication cable segment generated RMB 57,000, resulting in a total revenue of RMB 468,036,000[21]. Assets and Liabilities - As of December 31, 2024, the company's net current liabilities were approximately RMB 4,711,009,000, while net debt stood at RMB 4,161,503,000[8]. - The total assets of the company increased to RMB 1,382,319,000 in 2024 from RMB 1,083,120,000 in 2023, reflecting a growth of approximately 27.6%[6]. - Total liabilities increased to RMB 4,887,735,000 in 2024 from RMB 5,244,623,000 in 2023, indicating a decrease of approximately 6.8%[6]. - The company’s total equity was reported at RMB (4,161,503,000) in 2024, compared to RMB (3,507,212,000) in 2023, indicating a decline in equity[6]. - The company's cash and cash equivalents were approximately RMB 3,613,000 as of December 31, 2024[8]. - The debt-to-equity ratio improved to -40.0% from -47.1% in the previous year[3]. Operational Challenges - The company faced significant uncertainties regarding its ability to continue as a going concern due to multiple lawsuits and frozen bank accounts[8]. - The company has encountered significant operational challenges, leading to a substantial increase in its liabilities and a decrease in its asset base[8]. - The company is facing challenges in its communication cable and power distribution businesses, which remain suspended due to a lack of operating funds and ongoing issues in the real estate sector[49]. - The company is currently undergoing debt restructuring due to tight liquidity conditions caused by reduced sales and slower collections[84]. Debt Restructuring and Bankruptcy - The company is undergoing debt restructuring involving its subsidiaries, including Copper Xin and Jin Xun Huan, under the Chinese Bankruptcy Law, with the first creditors' meeting held on March 28, 2023[9]. - The company has received a civil ruling from the Yuxian Court regarding the bankruptcy restructuring application of its subsidiary Tai Yue, with the application accepted on May 24, 2023[9]. - The company is actively seeking new financing arrangements, including issuing convertible bonds to improve cash flow and meet financial obligations[14]. - The company intends to restructure its existing debts through the applicable provisions of the Chinese Enterprise Bankruptcy Law, with applications submitted to the court on June 6, 2022, and May 18, 2023[60][61]. - The debt restructuring process aims to reduce the debt burden of subsidiaries and unlock the intrinsic value of their quality assets, supporting the company's long-term growth[65]. Cost Control and Financial Management - The company is implementing cost control measures to enhance operational performance and maintain sufficient liquidity through working capital management[14]. - The group’s employee costs, including salaries and benefits, were RMB 23,250,000 in 2024, slightly down from RMB 23,481,000 in 2023, a decrease of approximately 1.0%[34]. - The group’s research and development costs were RMB 419,000 in 2024, down from RMB 599,000 in 2023, reflecting a decrease of about 30.1%[34]. - The group reported a net value of bad debt provisions amounting to RMB 121,829,000[21]. Regulatory and Market Environment - The new tax policy issued by the State Taxation Administration of China significantly increases the tax burden on suppliers, leading to higher operating costs and potential supply chain disruptions[53]. - Strict environmental regulations, resource scarcity, and geopolitical tensions may further disrupt the supply chain and impact productivity in the copper industry[55]. - The company is committed to adapting to the evolving regulatory environment and leveraging the growing demand for copper driven by China's sustainable development goals[57]. - The company believes that the assets held by the subsidiaries have strategic value and that their recovery and recycling sectors are favored under China's 14th Five-Year Plan[59]. Future Outlook - The company is optimistic about the copper industry outlook, supported by policies emphasizing sustainable economic transformation and technological advancements, including the rollout of 5G networks[52]. - The demand for copper is expected to increase in line with government goals for carbon neutrality by 2060, particularly in electric vehicles and renewable energy systems[52]. - The company plans to suspend production starting July 2024 to focus on the resumption of trading on the stock exchange, which is a primary goal for the second half of 2024[48].

Financial Performance - For the six months ended June 30, 2024, the company's revenue increased significantly from approximately RMB 141.5 million in the same period of 2023 to approximately RMB 454.2 million[6]. - The net loss attributable to shareholders decreased from approximately RMB 496.4 million in 2023 to approximately RMB 221.7 million in 2024[6]. - The company reported a net loss margin of (48.82)% for the six months ended June 30, 2024, compared to (350.80)% in the same period of 2023[4]. - The loss for the six months ended June 30, 2024, was RMB 221.7 million, a reduction from RMB 496.4 million in the same period of 2023, primarily due to a decrease in bad debt provisions[21]. - The total comprehensive loss attributable to owners for the six months ended June 30, 2024, was RMB (227,338) thousand, compared to RMB (498,927) thousand for the same period in 2023, representing a 54.4% improvement[70]. - Basic and diluted loss per share for the six months ended June 30, 2024, was RMB (0.05), compared to RMB (0.11) for the same period in 2023, indicating a 54.5% reduction in loss per share[70]. - The company recorded a net loss of approximately RMB 221.66 million for the six months ended June 30, 2024, compared to a net loss of RMB 496.37 million for the same period in 2023[80]. Revenue and Sales - The company sold 7,004 tons of recycled copper products, generating sales revenue of RMB 445.9 million during the six months ended June 30, 2024[7]. - For the six months ended June 30, 2024, the company's revenue was RMB 454.2 million, a significant increase of 321.0% compared to RMB 141.5 million for the same period in 2023[19]. - The revenue from copper products reached RMB 445.9 million, up 359.0% from RMB 124.2 million in the previous year, driven by a sales volume increase from 1,864 tons to 7,004 tons, and an average selling price rise of 10.1%[20]. - The sales of recycled copper products accounted for RMB 445,883 thousand, compared to RMB 124,221 thousand in the previous year, indicating a growth of about 259%[95]. - Major customers contributed significantly, with Customer A generating RMB 219,274 thousand and Customer B contributing RMB 59,179 thousand, both exceeding 10% of total revenue for the period[94]. Cash Flow and Liquidity - The company's cash and cash equivalents increased by 18.03% from RMB 18,327 thousand to RMB 21,632 thousand[4]. - The company's cash and cash equivalents, excluding pledged deposits, amounted to RMB 21.6 million as of June 30, 2024, compared to RMB 18.3 million at the end of 2023[25]. - Cash and cash equivalents at the end of June 30, 2024, were RMB 21,632 thousand, up from RMB 12,287 thousand at the end of June 30, 2023, representing a 76.3% increase[75]. - The company reported a net increase in cash and cash equivalents of RMB 3,342 thousand for the six months ended June 30, 2024, compared to an increase of RMB 9,906 thousand for the same period in 2023[75]. - Net cash flow from operating activities for the six months ended June 30, 2024, was RMB 7,813 thousand, a significant recovery from RMB (187,965) thousand for the same period in 2023[75]. Debt and Restructuring - The company has initiated bankruptcy restructuring for some subsidiaries, which has been approved by the relevant court, aiming to reduce debts and unlock asset value[6]. - The company is undergoing a debt restructuring process for several subsidiaries, which is expected to reduce their debt and unlock the intrinsic value of their quality assets[11]. - The total debt amount for the subsidiary YL Copper is approximately RMB 11.9 million, which has led to a court-ordered restructuring process[13]. - The company is undergoing debt restructuring for its subsidiaries, including Mianyang Tongxin Copper Industry Co., Ltd. and Mianyang Jinxun Metal Materials Co., Ltd., under the Chinese Bankruptcy Law[81]. - The company faces significant uncertainty regarding its ability to continue as a going concern, dependent on successful debt restructuring and resolution of ongoing litigation[86]. Market Outlook and Industry Trends - The outlook for the copper industry remains optimistic, driven by government policies aimed at sustainable economic transformation and increasing demand in electric vehicles and renewable energy systems[8]. - The company believes it can benefit from the anticipated growth in copper demand, despite short-term operational and financial performance being negatively impacted by the bankruptcy restructuring of its subsidiaries[10]. - The company is facing challenges that may hinder growth under the 14th Five-Year Plan, including strict environmental regulations, resource scarcity, and geopolitical tensions affecting supply chains and production capacity[9]. Operational Efficiency and Management - The current ratio decreased from 0.2 in 2023 to 0.1 in 2024, indicating a decline in short-term financial health[4]. - The company is actively working on the bankruptcy restructuring of its subsidiaries, with a second creditors' meeting scheduled for June 3, 2024[15]. - The company continues to focus on the production and trading of copper, aluminum, and related products, with ongoing efforts in market expansion and product development[76]. - The company’s cash flow from operations remains a critical focus area for future growth and stability, with ongoing efforts to enhance operational efficiency and reduce costs[104]. Shareholder Information - The board does not recommend the distribution of an interim dividend for the six months ending June 30, 2024[17]. - The company has not made any significant acquisitions or disposals of subsidiaries or associates during the six months ended June 30, 2024[35]. - The company has not granted any share options under the share option scheme during the six months ended June 30, 2024[56]. - The company has a total of 4,481,557,261 shares outstanding as of June 30, 2024[47]. - The company’s total issued and paid-up share capital remains at 4,481,557,261 shares as of June 30, 2024, unchanged from previous periods[118].

Financial Performance - The Group reported a net loss of approximately RMB805.8 million in 2023, primarily due to a staggering 64.97% drop in revenue compared to 2022[6]. - Revenue for the year ended 31 December 2023 amounted to approximately RMB837.7 million, representing a decrease of 64.97% from approximately RMB2,391.7 million for the year ended 31 December 2022[26]. - Revenue from recycled copper products amounted to approximately RMB811.1 million for the year ended 31 December 2023, representing a decrease of 66.0% from approximately RMB2,383.3 million for the year ended 31 December 2022[28]. - Sales volume of recycled copper products decreased by 69.9%, from 44,241 metric tons for the year ended 31 December 2022 to 13,330 metric tons for the year ended 31 December 2023[28]. - Loss per share for the Group was RMB0.18 in 2023, compared to RMB1.10 in 2022[6]. - Gross loss for the year ended December 31, 2023, was approximately RMB 111.9 million, a decline from the gross loss of about RMB 288.1 million for the year ending December 31, 2022, with a gross profit margin of negative 13.4% compared to negative 12.0% in the previous year[30]. - Loss before tax for 2023 was RMB 805,767,000, significantly improved from a loss of RMB 4,761,225,000 in 2022[197]. - Total comprehensive loss attributable to owners of the company for 2023 was RMB 807,615,000, compared to RMB 4,802,866,000 in 2022[197]. Operational Challenges - The Group's manufacturing facilities were suspended for several months and resumed operations on 1 June 2023 due to the adverse effects of the processing bankruptcy of the Relevant Subsidiaries[26]. - The ongoing effects of COVID-19 and financial difficulties faced by major property developers adversely impacted demand for the Group's products[6]. - The Group has applied for bankruptcy reorganization for some of its operating subsidiaries to restructure and reduce debts[7]. - The Group's manufacturing facilities were suspended for several months and resumed operations on June 1, 2023, impacting inventory levels[37]. - The Group is involved in various litigations that have resulted in the freezing of several bank accounts and the seizure of assets, indicating material uncertainties regarding its ability to continue as a going concern[150]. Debt and Financial Restructuring - The Group is undergoing debt restructuring to reduce the level of debts of the Relevant Subsidiaries[186]. - The Group has been liaising with creditors and financial institutions for extension or alternative refinancing of overdue debts[186]. - The Group is implementing cost control measures and working capital management to improve operating performance and maintain liquidity[186]. - The Group's cash and cash equivalents amounted to approximately RMB18.3 million as of December 31, 2023, a significant increase from approximately RMB2.4 million in 2022[36]. - The Group defaulted on the repayment of interest-bearing bank and other borrowings totaling approximately RMB1,548,000,000 and note payables of RMB 23,922,000 as of December 31, 2023[150]. Market Outlook - The outlook for China's copper sector remains positive, driven by government initiatives aimed at achieving carbon neutrality by 2060 and the growth of electric vehicles and renewable energy systems[14]. - The company remains optimistic about the long-term demand for copper, driven by the transition to a sustainable economy and advancements in technology, particularly in electric vehicles and renewable energy systems[16]. - The focus on 5G deployment and smart grid development is expected to create significant opportunities for the copper industry[16]. Corporate Governance - The Company acts as an investment holding company, with subsidiary activities detailed in note 42 of the consolidated financial statements[57]. - The Board believes that having Mr. Yu in both roles is in the best interest of the Group for effective management and business development[115]. - The Company emphasizes board diversity as a key element for maintaining competitive advantage[126]. - The Company recognizes the importance of good corporate governance for its success and sustainability[120]. - All independent non-executive directors possess extensive academic and professional expertise, contributing valuable advice to the board[131]. Employee and Social Responsibility - The Group had a total of 287 employees as of December 31, 2023, down from 507 in 2022, with staff costs for the year approximately RMB28.6 million, a decrease from RMB44.0 million in 2022[46]. - The company aims to preserve the welfare of the staff of the relevant subsidiaries as part of its social responsibilities[18]. Audit and Compliance - The audit report indicates limitations in the scope of the audit regarding the recoverability of trade and bills receivables, highlighting uncertainties in the provision for doubtful debts[189]. - The Group's financial statements are prepared in accordance with International Financial Reporting Standards[192]. - The independent auditor's report indicates that the financial statements were prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[183]. Future Plans and Strategies - The company expects to restore its telecommunications and power cable businesses once sufficient operating capital is secured and the real estate market stabilizes[15]. - The Group is undertaking various plans and measures to improve liquidity and financial position, as detailed in the consolidated financial statements[152]. - The Group has implemented measures to improve liquidity and financial position, as noted by both the Board and the Audit Committee[154].

Financial Performance - For the six months ended June 30, 2023, the company reported a net loss of approximately RMB 496.4 million, a significant decrease in revenue of 87.4% compared to the same period in 2022[6]. - The company's revenue for the six months ended June 30, 2023, was RMB 141.5 million, a decrease of 87.4% compared to RMB 1,119.2 million for the same period in 2022[19]. - Revenue from copper products was RMB 124.2 million, down 88.8% from RMB 1,108.0 million year-on-year, reflecting a volume drop from 17,174 tons to 1,864 tons, a decline of 89.1%[20]. - The loss for the six months ended June 30, 2023, was RMB 496.4 million, a slight improvement from a loss of RMB 523.6 million in the same period of 2022[21]. - The loss per share for the first half of 2023 was RMB 0.11, compared to RMB 0.12 in the same period of 2022[6]. - The company reported a pre-tax loss of RMB 496,374 thousand, slightly better than the pre-tax loss of RMB 520,617 thousand in the previous year[72]. - For the six months ended June 30, 2023, the group reported a pre-tax loss of RMB 496,374,000, compared to a loss of RMB 523,585,000 for the same period in 2022, reflecting a decrease of approximately 5% in losses year-over-year[104]. Assets and Liabilities - Total assets decreased by 17.20% to RMB 1,985.7 million as of June 30, 2023, compared to RMB 2,398.1 million at the end of 2022[4]. - Total current assets decreased to RMB 1,382,604 thousand as of June 30, 2023, down from RMB 1,778,498 thousand at the end of 2022, reflecting a decline of approximately 22.3%[73]. - Total current liabilities increased to RMB 5,183,213 thousand, compared to RMB 5,097,225 thousand at the end of 2022, indicating an increase of about 1.7%[73]. - Net current liabilities were reported at RMB (3,800,609) thousand, worsening from RMB (3,318,727) thousand at the end of 2022[73]. - The total interest-bearing borrowings as of June 30, 2023, amounted to RMB 1,600.9 million, a slight increase from RMB 1,595.9 million at the end of 2022[28]. - The net debt as of June 30, 2023, was approximately RMB 3,199.7 million, an increase from RMB 2,702.0 million as of December 31, 2022, primarily due to a loss of approximately RMB 496.4 million during the period[31]. Cash Flow and Financing - Cash and cash equivalents increased by 413.89% to RMB 12.3 million as of June 30, 2023, from RMB 2.4 million at the end of 2022[4]. - Operating cash flow for the six months ended June 30, 2023, was RMB (187,965) thousand, compared to RMB 150,595 thousand in the same period of 2022[77]. - The company is actively seeking new financing arrangements, including issuing convertible bonds amounting to RMB 400 million, subject to certain conditions[86]. - The company entered into a subscription agreement on September 27, 2024, for the issuance of convertible bonds amounting to RMB 400 million, subject to certain conditions[42]. Debt Restructuring - The company is undergoing bankruptcy restructuring for some subsidiaries to reduce debt and unlock the value of quality assets[6]. - The company has initiated debt restructuring for its subsidiaries, including Mianyang Tongxin Copper Industry Co., Ltd. and Mianyang Jinxun Metal Materials Co., Ltd., under the Chinese Bankruptcy Law[82]. - Mianyang Baohengtai Communication Cable Co., Ltd. has also submitted a voluntary bankruptcy restructuring application on May 18, 2023, which was accepted by the court[83]. - A civil ruling involving a debt of approximately RMB 11.9 million against a subsidiary was dismissed, allowing the subsidiary to proceed with its bankruptcy restructuring application[13]. Market Outlook - The company anticipates a recovery in its downstream businesses, particularly in communication cables and power distribution, as the real estate market stabilizes[7]. - The company expects increased demand for copper driven by advancements in electric vehicles, renewable energy systems, and 5G technology deployment[8]. - The company is facing challenges in the copper industry, including strict environmental regulations, resource shortages, and geopolitical tensions that may impact supply chains and productivity[9]. - The company anticipates continued challenges in the market, impacting future performance and revenue growth[90]. Employee and Management - As of June 30, 2023, the group had 340 employees, down from 507 as of December 31, 2022, with employee costs amounting to approximately RMB 13.8 million for the six months ended June 30, 2023[17]. - The total remuneration for key management personnel reached RMB 6,893,000 for the period ending June 30, 2023, compared to RMB 3,155,000 in 2022, reflecting a significant increase[137]. - The company’s chairman and CEO roles are held by the same individual, Yu Jianqiu, due to his extensive experience in operations and management[63]. Shareholder Information - The board has proposed not to distribute an interim dividend for the six months ended June 30, 2023[18]. - The company reported no interim dividend for the six months ended June 30, 2023, consistent with the previous year[118]. - The total number of issued ordinary shares as of June 30, 2023, is 4,481,557,261[50]. - The company’s total issued and paid-up share capital remained at 4,481,557,261 shares as of June 30, 2023, unchanged from previous periods[117]. Compliance and Governance - The company’s mid-term report for the six months ending June 30, 2023, has been reviewed by the audit committee[66]. - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with the standards set forth in the listing rules[64]. - The company’s shares have been suspended from trading since April 3, 2023, pending compliance with resumption guidelines[69]. - The company must correct issues leading to the trading suspension and comply with listing rules by October 2, 2024, or risk delisting[70].

Financial Performance - The Group recorded a 68.8% decrease in copper sales in 2022 compared to 2021, resulting in a net loss of approximately RMB 4,763.2 million[5]. - The Group recorded a significant decrease in copper product sales by 68.8% in 2022 compared to 2021, resulting in a net loss of approximately RMB 4,763.2 million, with a loss per share of RMB 1.10[11]. - Revenue for the year ended 31 December 2022 amounted to approximately RMB 2,391.7 million, representing a decrease of 69.02% from approximately RMB 7,719.5 million for the year ended 31 December 2021[29]. - Revenue from recycled copper products amounted to approximately RMB 2,383.3 million for the year ended 31 December 2022, representing a decrease of 66.4% from approximately RMB 7,089.8 million for the year ended 31 December 2021[29]. - Gross loss was approximately RMB 288.1 million for the year ended 31 December 2022, compared to a gross profit of approximately RMB 151.6 million for the year ended 31 December 2021[30]. - Loss for the year ended 31 December 2022 was RMB 4,763.2 million, compared to a loss of RMB 95.5 million for the year ended 31 December 2021[30]. - The total revenue for 2022 was RMB 2,391,709, down from RMB 7,719,448 in 2021, reflecting significant declines in various product sales[28]. - Revenue from recycled copper products in 2022 was RMB 2,383,263, a decrease from RMB 7,089,775 in 2021[28]. Bankruptcy and Restructuring - The bankruptcy reorganization applications for some subsidiaries have been approved by relevant courts, aiming to restructure and reduce their debts[7]. - The immediate priority for the Group is to successfully complete the bankruptcy reorganizations of its subsidiaries as soon as possible[8]. - The Company filed a Bankruptcy Reorganisation Application for its wholly-owned subsidiaries on June 6, 2022, to restructure existing indebtedness[12]. - The Debt Restructuring aims to reduce debts, release the intrinsic value of quality assets, and enhance revenue generation capabilities of the Relevant Subsidiaries[12]. - On May 25, 2023, the Company announced that another subsidiary, Taiyue, also intended to restructure its existing indebtedness through bankruptcy reorganization[13]. - Yinlian Xiangbei, another indirect wholly-owned subsidiary, faced a civil ruling for winding-up due to debts of approximately RMB 11.9 million but opposed the petition and applied for bankruptcy reorganization instead[14]. - The company announced the bankruptcy reorganization applications for its subsidiaries, including a debt of approximately RMB 11.9 million related to Yinlian Xiangbei[16][22]. - The court accepted the bankruptcy reorganization application for Yinlian Xiangbei after considering the situation of the company and its other subsidiaries[17][22]. - Hubei Rongsheng Copper Co., Ltd. received approval for pre-restructuring to prepare for its intended bankruptcy reorganization application[18][19]. - The company expects short-term operational and financial results to be adversely affected during the bankruptcy reorganizations, but remains confident in long-term business prospects[20][23]. Market Outlook and Demand - Despite short-term operational and financial challenges, the Group is confident in long-term business prospects, particularly in sectors like new infrastructure construction and new energy vehicles[8]. - Future demand for copper products is expected to remain strong, especially in high-tech home appliances and electronic devices[8]. - The company is well-positioned to benefit from the expected increase in demand for copper as the manufacturing industry undergoes transformation[24][25]. - The company anticipates strong demand for copper due to the strategic advancements in "carbon dioxide reaching the peak" and "carbon dioxide neutralization" initiatives[24][25]. Operational Challenges - The impact of COVID-19 and regional lockdowns has significantly disrupted industrial activities and supply chains, adversely affecting the Group's business[5]. - The sales volume of recycled copper products decreased from 131,864 metric tons for the year ended 31 December 2021 to 44,241 metric tons for the year ended 31 December 2022, a decrease of 66.4%[29]. - Sales of communication cables dropped to RMB 700 in 2022 from RMB 32,201 in 2021, highlighting challenges in the market[28]. Financial Position and Capital Structure - As at 31 December 2022, the capital structure of the Group mainly consisted of shareholder's equity, note payables, interest-bearing bank and other borrowings, lease liabilities, and liability component of convertible bonds[31]. - As of December 31, 2022, total fixed rate borrowings amounted to RMB 1,595,831,000, a decrease from RMB 1,799,964,000 as of December 31, 2021[32]. - The current ratio and quick ratio both dropped to 0.3 as at 31 December 2022, down from 1.2 in 2021[47]. - The debt to equity ratio was -59.1% as at 31 December 2022, compared to 105.3% in 2021, reflecting net liabilities of RMB 2,702.0 million due to losses of RMB 4,763.2 million for the year[48]. - The Group's cash and cash equivalents amounted to approximately RMB 2.4 million, a decrease from approximately RMB 12.0 million in 2021[44]. - The Group's inventories decreased by RMB 88.6 million to approximately RMB 100.9 million, compared to approximately RMB 189.5 million in 2021[44]. - Trade and bills receivables decreased by approximately RMB 2,075 million to RMB 236.5 million as at 31 December 2022, with turnover days increasing to 176.4 days from 105.0 days in 2021 due to tight liquidity among customers caused by COVID-19[46]. - Total interest-bearing borrowings decreased by RMB 204.2 million to RMB 1,595.8 million as at 31 December 2022, mainly due to the settlement of principal and accrued interests under convertible bonds[46]. Corporate Governance - The Company was in compliance with the Corporate Governance Code for the year ended December 31, 2022[127]. - The Company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in the Model Code[135]. - The Board is responsible for overall management and control of the Company, aiming to enhance shareholder value[135]. - The Company emphasizes the importance of good corporate governance for its success and sustainability[135]. - The Company expresses gratitude to shareholders and staff for their support and contributions during the year[129]. Shareholder Information - The Company does not recommend or declare any dividends for the years ended December 31, 2022, and 2021[87]. - The Company has a significant concentration of shareholdings among a few substantial shareholders, indicating potential influence on corporate decisions[80]. - The largest customer contributed 29% of the revenue, and the five largest customers together accounted for 62% of the revenue[94]. Environmental and Social Responsibility - The Group is committed to maintaining high environmental and social standards, complying with relevant laws and regulations impacting its business[122]. - The Group operates in the environmental protection industry by recycling scrap metal, contributing to pollution reduction in the vicinity of its plants[123]. - The Group encourages employees to participate in environmental and social activities benefiting the community[126]. Management and Leadership - Mr. Yu Jianqiu is the founder and Chairman, with over 20 years of experience in corporate operations and management in petrochemical, automobile, and renewable energy sectors[58]. - The management team has a strong educational background, with Mr. Yu holding an Executive MBA from Hautes Etudes Commerciales de Paris[58]. - The leadership team has experience in various industries, which may contribute to innovative strategies and market adaptability[58]. Risk Management - The Group engaged an external consultant in 2022 to assist in developing a structured approach to risk management and perform an internal control review, with no material internal control defects identified[186]. - The Group's risk governance structure includes the Board, Audit and Corporate Governance Committee, and Management, each with defined responsibilities for risk management and internal control[189]. - Management is responsible for identifying, evaluating, and managing risks that may impact operations, and for confirming the effectiveness of risk management and internal control systems to the Board[191].