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].

Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of RMB 454,200,000, a decrease of 6.9% compared to RMB 487,992,000 for the same period in 2023[2]. - The gross loss for the period was RMB 33,792,000, compared to a gross loss of RMB 18,277,000 in the previous year, indicating a significant decline in profitability[2]. - The company recorded a net loss attributable to owners of RMB 221,735,000 for the six months ended June 30, 2024, compared to a net loss of RMB 496,374,000 for the same period in 2023, showing an improvement in loss[2]. - The company reported a basic and diluted loss per share of RMB (0.05) for the six months ended June 30, 2024, compared to RMB (0.11) for the same period in 2023, indicating a reduction in loss per share[2]. - The company reported a pre-tax loss of RMB (221,660) thousand for the six months ended June 30, 2024, compared to a loss of RMB (496,374) thousand for the same period in 2023[17]. - The loss for the six months ended June 30, 2024, decreased from approximately RMB 496.4 million in 2023 to approximately RMB 221.7 million[37]. Assets and Liabilities - Total non-current assets decreased to RMB 566,167,000 as of June 30, 2024, down from RMB 584,739,000 as of December 31, 2023[3]. - Current assets decreased to RMB 739,672,000 as of June 30, 2024, compared to RMB 797,580,000 as of December 31, 2023, reflecting a decline in liquidity[3]. - The company's total liabilities increased to RMB 5,038,354,000 as of June 30, 2024, compared to RMB 4,887,735,000 as of December 31, 2023, indicating rising financial obligations[3]. - The net current liabilities stood at RMB (4,298,682,000) as of June 30, 2024, compared to RMB (4,090,155,000) as of December 31, 2023, suggesting a worsening financial position[3]. - As of June 30, 2024, the company's net current liabilities were approximately RMB 4,298,682,000, and net debt was about RMB 3,734,017,000[9]. - The company had cash and cash equivalents of approximately RMB 21,632,000 as of June 30, 2024, with debts due within one year amounting to approximately RMB 1,660,722,000[9]. Debt Restructuring - The company is undergoing debt restructuring for its subsidiaries, including Mianyang Tongxin Copper Industry Co., Ltd. and Mianyang Jinxun Environmental Metal Materials Co., Ltd., under the Chinese Bankruptcy Law[9]. - The first creditors' meeting for the debt restructuring was held on March 28, 2023[9]. - Mianyang Baohua Taiyue Communication Cable Co., Ltd. is also undergoing debt restructuring, with its application submitted on May 18, 2023[10]. - The court accepted the bankruptcy restructuring application for Taiyue on May 24, 2023[10]. - The company is actively seeking new financing arrangements, including issuing convertible bonds worth RMB 400 million, subject to certain conditions[11]. - The company is focused on successfully completing the bankruptcy restructuring of its subsidiary, despite potential short-term operational and financial impacts[41]. Operational Performance - The company continues to focus on the production and trading of copper, aluminum, and related products as its main business operations[6]. - The company operates through three business segments: recycled copper products, power cables, and communication cables[15]. - The sales of recycled copper products for the six months ended June 30, 2024, were RMB 445,883 thousand, a substantial increase from RMB 124,221 thousand in the same period of 2023[20]. - The group sold 7,004 tons of recycled copper products, generating revenue of RMB 445.9 million for the six months ending June 30, 2024[38]. - The company anticipates the recovery of its communication cable and power distribution cable businesses once sufficient operating capital is obtained, as most products have already been sold[38]. Government Support and Economic Outlook - The government has announced a series of policies to support the weak economy, including a 20 basis point cut in the seven-day reverse repo rate and a 50 basis point reduction in the reserve requirement ratio[40]. - China's GDP growth rate for 2023 is projected at 5.2%, driven by government measures to stabilize the economy and the real estate market[39]. - The outlook for the copper industry remains optimistic, particularly in light of the 14th Five-Year Plan (2021-2025) and the emphasis on sustainable economic transformation[39]. - The company believes it has advantages to benefit from the anticipated growth in copper demand[41]. Corporate Governance - The company has adhered to corporate governance principles and all relevant rules as of June 30, 2024[66]. - The company has implemented a set of guidelines for directors' securities trading, confirming compliance with the relevant standards as of June 30, 2024[67]. - The board consists of four executive directors and three independent non-executive directors[74]. - The chairman of the board is Mr. Yu Jianqiu[74]. - The company emphasizes the importance of its board structure for governance[74]. Legal and Compliance Issues - The company is involved in multiple legal litigations related to bank loans and trade payables, which may result in the freezing of certain bank accounts and seizure of assets[63]. - The company has not engaged in any significant acquisitions or disposals of subsidiaries or associates as of June 30, 2024[60]. - The company's shares have been suspended from trading since April 3, 2023, pending compliance with the resumption guidelines[71].

Financial Performance - Revenue decreased by 65.0% to RMB 837.7 million for the year ended December 31, 2023, compared to RMB 2,391.7 million in 2022[1] - Loss attributable to equity holders of the company was RMB 805.8 million in 2023, compared to RMB 4,763.2 million in 2022[1] - The company reported a net loss of approximately RMB 805.78 million for 2023, compared to a net loss of RMB 4.76 billion in 2022, indicating a significant reduction in losses[6] - The company recorded a gross loss of approximately RMB 111.9 million for the fiscal year ending December 31, 2023, compared to a gross loss of approximately RMB 288.1 million for the fiscal year ending December 31, 2022[50] - The company’s net loss attributable to shareholders was RMB (805,780,000) in 2023, a notable decrease from RMB (4,763,152,000) in 2022, indicating improved financial performance[27] Debt and Liabilities - Current ratio as of December 31, 2023, was 0.2, down from 0.35 in 2022[1] - Debt to equity ratio as of December 31, 2023, was -47.1%, improved from -59.1% in 2022[1] - As of December 31, 2023, the company's net current liabilities were approximately RMB 4.09 billion, while net debt stood at approximately RMB 3.51 billion[6] - The company is currently undergoing debt restructuring to reduce its debt levels, but has not yet received sufficient evidence to confirm the timing and scope of this restructuring[77] - The company faced overdue debts totaling approximately RMB 1.55 billion and RMB 23.92 million, which may impact its ability to continue as a going concern[76] Cash Flow and Liquidity - The company has cash and cash equivalents of approximately RMB 18.33 million as of December 31, 2023[6] - The company incurred a loss of approximately RMB 805.8 million, leading to net debt of approximately RMB 3,507.2 million, compared to RMB 2,702.0 million in 2022[62] - Cash and cash equivalents (excluding pledged deposits) as of December 31, 2023, were approximately RMB 18.3 million, compared to RMB 2.4 million in 2022[58] - The company has communicated with creditors regarding overdue debts but has not yet received any agreements for extensions or refinancing[77] Operational Performance - The company is actively seeking alternative financing arrangements to secure new funds, including issuing convertible bonds amounting to RMB 400 million, subject to certain conditions[9] - The group is working to improve operational performance and cash flow through cost control measures and effective working capital management[9] - The company has implemented various financial plans and measures to alleviate liquidity pressure and improve its financial condition[7] - The company has successfully completed the restructuring of related subsidiaries and is negotiating with overseas lenders for debt extensions[11] Segment Performance - The revenue from recycled copper products in 2023 was RMB 811,094 thousand, down from RMB 2,383,263 thousand in 2022, indicating a decrease of about 66.0%[18] - The company reported a total segment loss of RMB (516,859) thousand for 2023, compared to a loss of RMB (4,550,704) thousand in 2022[14] - The group operates three reportable segments: recycled copper products, power cables, and communication cables, each requiring different technologies and market strategies[12] Legal and Regulatory Issues - The company is facing significant uncertainties that may impact its ability to continue as a going concern due to ongoing litigation and frozen bank accounts[6] - Legal issues have led to the freezing of multiple bank accounts and the seizure of assets, which the company is currently addressing[78] - The company is addressing litigation issues to lift bank account freezes and release seized properties and inventory[9] Governance and Compliance - The audit committee has reviewed the financial situation and discussed measures with management to address the uncertainties related to going concern[84] - The audit committee consists of three independent non-executive directors and is responsible for communication with external auditors and reviewing the group's financial reporting procedures[85] - The company has adhered to the corporate governance code as of December 31, 2023, with clear separation of roles between the Chairman and CEO[87] Market Outlook - The company is optimistic about the copper industry's prospects, driven by demand growth related to electric vehicles and renewable energy systems, aligning with the government's carbon neutrality goals by 2060[40] - The company believes that the demand for its products, particularly copper, will remain strong in the future, supporting its growth strategy[41] - The company anticipates that the policies announced by financial authorities will provide support to the stagnant economy and benefit from the expected growth in copper demand[41]

Financial Performance - For the six months ended June 30, 2023, the company reported a revenue of RMB 141,496,000, a decrease of 87.38% compared to RMB 1,119,215,000 for the same period in 2022[2] - The cost of sales for the same period was RMB 159,773,000, down from RMB 1,159,825,000, resulting in a gross loss of RMB 18,277,000, an improvement from a gross loss of RMB 40,610,000 in 2022[2] - The company recorded a net loss attributable to owners of RMB 496,374,000 for the six months ended June 30, 2023, compared to a net loss of RMB 523,586,000 for the same period in 2022, indicating a slight improvement[2] - The company reported a total operating loss of RMB 496,374 thousand for the six months ended June 30, 2023, compared to a loss of RMB 520,617 thousand for the same period in 2022, indicating an improvement of about 4.67%[19] - The company recorded a net loss of RMB 356,359 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 370,504 thousand for the same period in 2022, indicating a reduction of about 3.81%[19] Assets and Liabilities - Total non-current assets as of June 30, 2023, amounted to RMB 603,082,000, a decrease from RMB 619,573,000 as of December 31, 2022[3] - Current assets increased to RMB 1,382,604,000 as of June 30, 2023, compared to RMB 1,778,498,000 at the end of 2022, primarily driven by an increase in inventory[3] - The company reported total liabilities of RMB 5,183,213,000 as of June 30, 2023, compared to RMB 5,097,225,000 at the end of 2022, indicating a slight increase in financial obligations[3] - The net current liabilities increased to RMB (3,800,609,000) as of June 30, 2023, compared to RMB (3,318,727,000) at the end of 2022, reflecting a worsening liquidity position[3] - The company had cash and cash equivalents of approximately RMB 12,287,000 as of June 30, 2023, with short-term debts amounting to RMB 1,598,910,000[8] Bankruptcy and Restructuring - The company is undergoing debt restructuring for its subsidiaries, Copper Xin and Jin Xun Huan, under the Chinese Bankruptcy Law, with the first creditors' meeting held on March 28, 2023[8] - The company submitted a voluntary bankruptcy restructuring application for its subsidiary, Tai Yue, on May 18, 2023, which was accepted by the court on May 24, 2023[9] - The company faces significant uncertainty regarding its ability to continue as a going concern due to ongoing litigation and frozen bank accounts[8] - The company has initiated a restructuring process for its subsidiary, Hubei Rongsheng, as of September 12, 2023, under the relevant bankruptcy laws[10] - The company is actively seeking new financing arrangements, including issuing convertible bonds worth RMB 400 million, subject to certain conditions[10] Operational Performance - The company continues to focus on the production and trading of copper, aluminum, and related products as its main business[5] - The company has made efforts to improve operational performance and cash flow through cost control measures and working capital management[10] - The group produced 21,282 tons of recycled copper products and sold 21,058 tons, achieving a sales revenue of RMB 1,450 million during the year ending May 31, 2024[40] - The group's communication cable and power distribution businesses have not resumed operations due to a lack of operating funds and poor real estate market conditions, but recovery is expected as the market stabilizes[40] Market and Economic Outlook - The outlook for the copper industry remains optimistic, particularly due to the emphasis on sustainable economic transformation and advancements in information technology, including 5G deployment[41] - The government has implemented a series of supportive policies to address economic stagnation, including a 20 basis point cut in the seven-day reverse repurchase rate and a 50 basis point reduction in the reserve requirement ratio[42] - The company anticipates benefiting from the expected growth in copper demand, despite potential short-term negative impacts from the bankruptcy restructuring of its subsidiary[43] - The company remains confident in the long-term business outlook, believing that demand for its products, especially copper, will continue to be strong[43] Compliance and Governance - The financial report is prepared in accordance with the International Financial Reporting Standards, ensuring consistency with the previous year's accounting policies[7] - The company has adhered to corporate governance principles and has complied with all relevant rules as of June 30, 2023[71] - The company has confirmed compliance with the standards for directors' securities trading as of June 30, 2023[72] - There have been changes in the board of directors, including the appointment of new independent non-executive directors and the resignation of an executive director[73] Employee and Social Responsibility - The group aims to enhance its social responsibility by employing disabled individuals and providing them with appropriate working conditions[48] - Employee costs for the six months ended June 30, 2023, were RMB 13,779,000, down from RMB 21,287,000 in the same period of 2022[28] - The group employed 340 employees as of June 30, 2023, down from 507 employees at the end of 2022[48] Legal Proceedings - The company is currently involved in multiple legal proceedings related to bank loans and trade payables, which may result in the freezing of certain bank accounts and the seizure of properties and inventories[68] - The company faces a civil ruling from the Hunan Province court regarding a debt of approximately RMB 11.9 million, leading to a bankruptcy restructuring application on July 21, 2023[10] Financial Instruments and Risk Management - The company has not entered into any financial instruments to hedge its foreign exchange risks as of June 30, 2023, despite having some borrowings denominated in Hong Kong dollars[63] - As of June 30, 2023, the company had no outstanding copper futures contracts, indicating a strategy to mitigate copper price volatility risks[62]

智通财经APP讯，中国金属利用(01636)公布2022年经审核全年业绩，营业额较2021年减少69.0%至人民币23.92亿元，净亏损约47.63亿元，同比扩大4888.8%;每股亏损1.1元。 公告称，营业额减少主要因为电解铜贸易及再生铜产品销售减少。主因是工业生产及建筑活动减少，以致于2022年铜的需求显著减少。 亏损增加主要是由于 2021年度1.516亿元的毛利转为2022年度2.88亿元的毛损。同时额外税务附加费增加至人民币6620万元，坏账拨备净值增加至人民币21.19亿元及垫付供应商款项减值增加至19.485亿元。 值得注意的是，独立核数师并无就该集团的综合财务报表发表意见。 ...

Financial Performance - Revenue decreased by 69.0% to RMB 2,391.7 million compared to RMB 7,719.4 million in 2021[3] - The company reported a loss attributable to shareholders of RMB 4,763.2 million for the year, compared to a loss of RMB 95.5 million in 2021[3] - Loss per share was RMB 1.10, compared to RMB 0.03 in the previous year[3] - The company experienced a significant increase in financial losses, with a pre-tax loss of RMB 4,761.2 million compared to RMB 54.1 million in 2021[4] - The group reported a significant impairment of RMB 1,948,484,000 related to advances to suppliers, highlighting financial strain[27] - The loss for the year ended December 31, 2022, was RMB 4,763.2 million, significantly higher than the loss of RMB 95.5 million for the year ended December 31, 2021, primarily due to the shift from gross profit to gross loss[98] Assets and Liabilities - Total assets decreased from RMB 6,733,999 thousand in 2021 to RMB 2,398,071 thousand in 2022, a decline of approximately 64.4%[5] - Current assets dropped significantly from RMB 6,040,338 thousand in 2021 to RMB 1,778,498 thousand in 2022, representing a decrease of about 70.5%[5] - The company reported a total equity of RMB (2,702,000) thousand in 2022, compared to RMB 1,709,397 thousand in 2021, reflecting a negative equity position[7] - The company recorded net losses of approximately RMB 4,763,152,000 and RMB 95,477,000 for the years ended December 31, 2022, and 2021, respectively[11] - As of December 31, 2022, the company's net current liabilities were approximately RMB 3,318,727,000, and net debt was approximately RMB 2,702,000,000[11] Debt and Restructuring - The company is undergoing debt restructuring involving its wholly-owned subsidiaries, Copper Xin and Jin Xun Huan, under the Chinese Bankruptcy Law[12] - The first creditors' meeting for the restructuring of Copper Xin and Jin Xun Huan was held on March 28, 2023[12] - The company submitted a voluntary bankruptcy restructuring application for its indirect wholly-owned subsidiary, Tai Yue, on May 18, 2023[14] - The company received a civil ruling from the Yuxian Court regarding Tai Yue's bankruptcy restructuring acceptance on May 24, 2023[14] - The group is undergoing debt restructuring aimed at reducing the debt levels of its subsidiaries[68] Cash Flow and Liquidity - Cash and cash equivalents decreased from RMB 11,953 thousand in 2021 to RMB 2,391 thousand in 2022, a decline of approximately 80%[5] - The company is actively seeking alternative financing arrangements to obtain new funds and improve cash flow[18] - The company is facing challenges in cash flow management and maintaining sufficient liquidity due to the tightening of working capital conditions[78] - As of December 31, 2022, the company had cash and cash equivalents of RMB 261,000, indicating a significant liquidity position despite ongoing legal disputes[61] Revenue Streams - The group reported total revenue of RMB 2,391,709,000, with external sales contributing RMB 2,385,928,000 from the recycled copper products segment[27] - Revenue from recycled copper products for the year ended December 31, 2022, was approximately RMB 2,383.3 million, down 66.4% from RMB 7,089.8 million for the year ended December 31, 2021, with sales volume dropping from 131,864 tons to 44,241 tons, a decline of 66.4%[90] - The total income from VAT refunds and government subsidies was RMB 232,119 thousand, contributing positively to the financial results[28] - The company received government subsidies totaling RMB 12,591,000 in 2022, a substantial increase from RMB 3,600,000 in 2021, reflecting enhanced support from local authorities[40] Operational Challenges - The company failed to repay approximately RMB 231,720,000 of convertible bonds and RMB 981,661,000 of bank loans and other borrowings as of December 31, 2022[11] - The company is currently negotiating with creditors regarding outstanding debts, but has not received sufficient evidence to confirm the recoverability of overdue receivables[73] - The economic environment has led to significant financial difficulties for many suppliers and customers, resulting in increased asset impairment and bad debt provisions[78] Corporate Governance - The audit committee, composed of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ended December 31, 2022[137] - The company has complied with the corporate governance code as per the listing rules as of December 31, 2022[139] - The company has faced non-compliance issues with listing rules regarding the number of independent non-executive directors and the composition of the audit committee[142] Future Outlook - The company expects strong demand for copper driven by China's "14th Five-Year Plan," particularly in new infrastructure, new energy vehicles, and high-tech electronic equipment[87] - The company plans to continue focusing on market expansion and new product development to enhance future performance[28] - The company is committed to maintaining employee welfare and contributing to the local community during the restructuring process[80]

Financial Performance - The company reported a revenue of RMB 1,119,215,000 for the first half of 2022, a decrease of 66.3% compared to RMB 3,355,148,000 in the same period of 2021[8]. - The net loss for the first half of 2022 was approximately RMB 523,600,000, compared to a net loss of RMB 72,063,000 in the first half of 2021[8][16]. - For the six months ended June 30, 2022, the company's revenue was RMB 1,119,215,000, a decrease of 66.6% compared to RMB 3,355,148,000 for the same period in 2021[25]. - The company reported a loss of RMB 523,600,000 for the six months ended June 30, 2022, compared to a loss of RMB 72,100,000 for the same period in 2021, indicating a significant increase in losses[30]. - The gross loss for the period was RMB 40,610 thousand, compared to a gross profit of RMB 35,250 thousand in the previous year[152]. - The company incurred a pre-tax loss of RMB 520,617 thousand, significantly higher than the pre-tax loss of RMB 53,132 thousand in the prior year, indicating a substantial decline in financial performance[152]. - The net loss attributable to the owners of the company was RMB 523,586 thousand, compared to a net loss of RMB 72,063 thousand in the same period last year[152]. - Basic loss per share was RMB 0.12, compared to RMB 0.02 in the previous year, reflecting a worsening financial position[152]. - The financial costs increased to RMB 125,834 thousand from RMB 78,658 thousand, highlighting rising expenses impacting profitability[152]. Assets and Liabilities - Cash and cash equivalents decreased by 41.23% to RMB 7,025,000 from RMB 11,953,000 as of December 31, 2021[8]. - Total assets slightly decreased by 0.44% to RMB 6,704,053,000 from RMB 6,733,999,000 as of December 31, 2021[8]. - Total liabilities increased by 1.60% to RMB 5,105,159,000 from RMB 5,024,602,000 as of December 31, 2021[8]. - The total interest-bearing borrowings as of June 30, 2022, amounted to RMB 1,442,294,000, a decrease from RMB 1,799,964,000 as of December 31, 2021[32]. - The debt-to-equity ratio improved from 105.3% to 90.2% as of June 30, 2022, primarily due to the issuance of ordinary shares to settle convertible bonds[81][82]. - As of June 30, 2022, the net value of assets pledged for bank loans and other financing was RMB 2,185.2 million, compared to RMB 2,024.8 million as of December 31, 2021[83]. - The total equity of the company was RMB 1,598,894 thousand, reflecting a decline in reserves and retained earnings[164]. Inventory and Receivables - Inventory increased by RMB 645,800,000 to RMB 835,300,000 as of June 30, 2022, compared to RMB 189,500,000 as of December 31, 2021[78]. - Inventory turnover days increased to 80.0 days for the six months ended June 30, 2022, compared to 12.2 days for the year ended December 31, 2021[78]. - Trade receivables and notes receivable decreased by RMB 842,700,000 to RMB 1,468,800,000 as of June 30, 2022, down from RMB 2,311,500,000 as of December 31, 2021[79]. - Accounts receivable turnover days increased to 305.7 days for the six months ended June 30, 2022, compared to 105.0 days for the year ended December 31, 2021[79]. - As of June 30, 2022, trade payables and notes payable increased by RMB 495 million to RMB 1,838.7 million, compared to RMB 1,343.7 million as of December 31, 2021, with accounts payable turnover days rising from 58.2 days to 248.3 days[80]. Business Strategy and Future Outlook - The company plans to undergo a debt restructuring process to address its current debt issues, which was initiated by a voluntary bankruptcy reorganization application submitted to the court[16][17]. - Future business prospects will depend on the speed of recovery of the Chinese economy, influenced by the COVID-19 pandemic and the recovery of the construction and real estate sectors[18]. - The company aims to maintain employee welfare and contribute to the local community as part of its social responsibility during the restructuring process[17]. - The company is committed to creating value for its shareholders despite the challenging environment[19]. - The company plans to focus on the sales of recycled copper products, leading to a complete cessation of sales in electrolytic copper trading[26]. Shareholder Structure and Governance - The company has a significant shareholder structure, with major stakeholders holding substantial percentages of shares, including 11.89% by Mr. Yu Jianqiu and 6.92% by Mr. Huang Weiping[100][112]. - The largest single shareholder is Mianyang Fule Investment Co., Ltd., holding 16.02% of the shares, followed by Hengfu Investment Co., Ltd. with 12.44%[112][117]. - The company has established a stock option plan, with options granted to directors, including 3,000,000 shares to Ms. Zhu Yufen[105][106]. - The company is actively seeking suitable candidates to fill the vacancies of independent non-executive directors to comply with listing rules[145]. - The audit committee currently consists of only two members, which is below the minimum requirement set by the listing rules[145]. - The company has acknowledged the need to improve its governance structure following the resignation of two independent non-executive directors[145]. Cash Flow and Investment Activities - The company recorded a net cash flow from operating activities of RMB 150,595 thousand, a significant improvement from a net outflow of RMB (313,313) thousand in the prior year[179]. - The company’s investment activities resulted in a net cash outflow of RMB (181,483) thousand, indicating significant capital expenditures[179]. - The company’s financing activities generated RMB 17,800 thousand from bank loans and other borrowings[179]. Other Financial Information - The company reported other income and gains of RMB 63,700 thousand, down from RMB 126,579 thousand in the same period of 2021, indicating a decline in additional revenue sources[152]. - The company recognized government grants and subsidies amounting to RMB 119,241 thousand[197]. - The company reported a foreign exchange loss of RMB 23.9 million due to the conversion of liabilities from HKD to RMB[87].

Financial Performance - In 2021, the Group recorded a net loss of approximately RMB 95.5 million, a decrease in revenue by 53.8% compared to 2020 due to the impact of COVID-19 on various industries[16] - The Group recorded a net loss of approximately RMB 95.5 million, primarily due to a 53.8% decrease in revenue in 2021 compared to 2020, largely impacted by the after-effects of COVID-19 on the housing construction and engineering infrastructure industries[31] - The loss per share amounted to RMB 0.03, compared to RMB 0.15 in 2020, indicating a significant decline in financial performance[33] - Revenue for the year ended December 31, 2021, amounted to RMB 7,719.4 million, representing a decrease of 53.8% from RMB 16,698.5 million for the year ended December 31, 2020[42] - Revenue from trading of electrolytic copper amounted to RMB 554.8 million for the year ended December 31, 2021, representing a decrease of 93.5% from RMB 8,516.2 million for the year ended December 31, 2020[43] - Sales volume of electrolytic copper decreased by 95.8% from 216,325 metric tons for the year ended December 31, 2020, to 9,108 metric tons for the year ended December 31, 2021[46] - Revenue from recycled copper products amounted to RMB 7,089.8 million for the year ended December 31, 2021, representing a decrease of 11.3% from RMB 7,990.9 million for the year ended December 31, 2020[51] - Sales volume of recycled copper products decreased by 28.2% from 183,742 metric tons for the year ended December 31, 2020, to 131,864 metric tons for the year ended December 31, 2021[54] - Gross profit for the year ended December 31, 2021, was RMB 151.6 million, compared to RMB 62.6 million for the year ended December 31, 2020, with a gross profit margin of 2.0%[52] - Other income for the year ended December 31, 2021, was RMB 269.9 million, compared to other expenses of RMB 33.3 million for the year ended December 31, 2020[53] Market Outlook - The Chinese government set a GDP growth target of 5.5% for 2022, anticipating an increase in demand for basic metals as economies reopen globally[18] - The Group expects strong demand for copper driven by new infrastructure construction, new energy vehicles, and high-tech appliances, aligning with China's manufacturing goals during the 14th Five-Year Plan[19] - Strong demand for copper is anticipated to continue, particularly in new infrastructure construction, new energy vehicles, and high-tech home appliances[32] - The strategic advancement of carbon neutrality initiatives is expected to further drive demand for copper in various sectors[32] - The State Council of the PRC issued a circular promoting green, low-carbon development, which is expected to create unprecedented opportunities for the resource recycling industry[20] - The State Council of the PRC issued a circular to promote a green, low-carbon economy, which is expected to create unprecedented opportunities for the resource recycling industry[37] Capital Structure and Financing - In Q1 2021, the Group completed a new issuance of shares to Mianyang Fule Investment Co., Ltd, and in Q1 2022, to Huarong International Holdings Limited and Prosper Rich Investments Limited to reduce debts[21] - The Group anticipates that improved capital structure from new shareholders will enhance operational and financial performance[21] - The Group completed new share issuances to reduce debts, enhancing its financial position and operational performance[38] - The company has ongoing discussions with Mianyang Science Technology City Development Investment (Group) Co., Ltd. regarding a potential subscription for shares exceeding RMB 300 million[107] - The outstanding principal amount of convertible bonds issued to Huarong was amended from HK$390.0 million to approximately HK$227.7 million as of December 31, 2021[73] - The maturity date of the Huarong convertible bonds shall be extended to December 31, 2022, or December 31, 2023, subject to prior written notice and consent from Huarong[74] - The company has agreed to amend the terms of the convertible bonds, including the release of 78,000,000 Shares out of the 278,000,000 Shares charged in favor of Huarong[79] - The company has conditionally agreed to set off the subscription consideration against the outstanding principal amount and accrued interests under the convertible bonds on a dollar-for-dollar basis[85][94] Operational Performance - Selling and distribution expenses for the year ended December 31, 2021, were RMB 18.2 million, representing a decrease of 15.7% from RMB 21.6 million for the year ended December 31, 2020[55] - Administrative expenses for the year ended December 31, 2021, were RMB 132,000,000, down 18.9% from RMB 162,700,000 for the year ended December 31, 2020, mainly due to a reduction in professional fees during the operational suspension period[57] - Finance costs for the year ended December 31, 2021, were RMB 221.5 million, representing an increase of 30.3% from RMB 170.0 million for the year ended December 31, 2020[56] - The company experienced a reduction in financial expenses and bad debt provisions, which increased by RMB 51,500,000 and RMB 56,600,000 respectively during the year[57] - The loss for the year ended December 31, 2021, was RMB 95,500,000, a significant reduction from a loss of RMB 387,200,000 for the year ended December 31, 2020, attributed to the absence of goodwill impairment losses and an increase in gross profit of RMB 89,000,000[57] Inventory and Receivables - As of December 31, 2021, the Group's cash and cash equivalents amounted to RMB 12.0 million, a decrease from RMB 47.3 million as of December 31, 2020[95] - The Group's inventories decreased by RMB 127.3 million to RMB 189.5 million as of December 31, 2021, compared to RMB 316.8 million as of December 31, 2020[95] - Trade and bills receivables increased by RMB 181.8 million to RMB 2,311.5 million as of December 31, 2021, up from RMB 2,129.7 million as of December 31, 2020[96] - Trade and bills receivables turnover days increased to 105.0 days in 2021, compared to 36.3 days in 2020, primarily due to customers' tight liquidity caused by COVID-19[96] - Trade payables increased by RMB 275.1 million to RMB 1,343.7 million, with payable turnover days rising to 58.2 days from 17.9 days in 2020[102] Strategic Initiatives - The company is investing in new technology development, allocating $10 million for R&D in renewable energy solutions[178] - The management team emphasized the importance of sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[178] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $30 million earmarked for potential deals[178] - The company has successfully reduced operational costs by 5% through efficiency improvements in production processes[178] - Future guidance includes maintaining a gross margin of at least 25% despite rising raw material costs[178] Business Model and Operations - The Group is a manufacturer of recycled copper products, also known as copper semis, in Southwest China[198] - The Group's principal activities include manufacturing and trading of copper products, indicating a diversified business model[198] - The Group has been operational in the copper industry for several years, showcasing its experience and market presence[198] - The Group's focus on recycled copper products aligns with global sustainability trends, potentially increasing market demand[198] - The Group entered into trading activities of electrolytic copper starting in 2015[200] - The Group's activities are subject to the Hong Kong Companies Ordinance, ensuring compliance with regulatory requirements[200]