Nickel Production and Projects - The company has established a complete nickel production process, including both pyrometallurgical and hydrometallurgical methods, with a total designed capacity of 18,000 metal tons of nickel iron at its Jiangsu factory [8]. - The Obi project in Indonesia has a total designed capacity of 120,000 metal tons of nickel-cobalt compounds (including 14,250 metal tons of cobalt) and 280,000 metal tons of nickel iron, contributing significantly to the company's production capabilities [8]. - The company has invested in two nickel production projects in Indonesia, enhancing its production capacity and market presence [8]. - The company has a total designed capacity of 400,000 tons of nickel metal in its smelting projects, with 120,000 tons from HPAL and 280,000 tons from RKEF [28]. - The HPAL project has successfully achieved production targets, with all lines operating at full capacity throughout the year [33]. - The RKEF project has a total designed capacity of 280,000 tons of nickel iron, with HJF contributing 95,000 tons and KPS expected to complete all production lines by 2026 [35]. - The company has successfully implemented the HPAL project, achieving design capacity within two months of production startup, setting industry records for efficiency [41]. - The third-generation HPAL process used in the project is among the most competitive technologies for processing low-grade nickel ore, significantly improving production efficiency while reducing energy consumption and costs [42]. Financial Performance - The company achieved a revenue of RMB 29,233.0 million in 2024, representing a year-on-year growth of 38.8% [16]. - Net profit attributable to shareholders reached RMB 1,773.2 million, an increase of 68.7% compared to the previous year [16]. - Non-current assets totaled RMB 25,357.7 million, up from RMB 20,400.9 million in 2023, indicating a growth of 24.5% [15]. - Total assets increased to RMB 37,957.0 million, a rise of 23.6% from RMB 30,679.7 million in 2023 [15]. - The total equity attributable to shareholders rose to RMB 10,758.9 million, reflecting an increase of 17.2% from RMB 9,185.5 million in 2023 [15]. - The company achieved a total revenue of RMB 29,233.0 million in 2024, representing a 38.8% increase year-over-year [29]. - Gross profit grew by 58.3% from RMB 3,382.0 million in 2023 to RMB 5,352.5 million in 2024, with gross margin rising from 16.1% to 18.3% [60]. - Profit from associates surged from RMB 233.2 million in 2023 to RMB 404.0 million in 2024, largely due to the HJF project's full production capacity [66]. - The company's profit before tax increased significantly from RMB 1,761.5 million for the year ended December 31, 2023, to RMB 3,817.0 million for the year ended December 31, 2024 [67]. - Annual profit surged from RMB 1,721.5 million for the year ended December 31, 2023, to RMB 3,208.8 million for the year ended December 31, 2024, with a net profit margin increase from 8.2% to 11.0% [69]. Market and Industry Trends - The company anticipates continued growth in demand for nickel products driven by the global transition to green energy and the development of new energy vehicles [20]. - The demand for nickel in the new energy and high-end manufacturing sectors is expected to grow, driven by the acceleration of the global green economy transition [25]. - In 2024, the Chinese new energy vehicle market saw significant growth, with production and sales reaching 12.888 million and 12.866 million units, respectively, marking year-on-year increases of 34.4% and 35.5% [26]. - The stainless steel market demand continued to grow, with China's crude stainless steel production reaching 39.4411 million tons, an increase of 7.54% year-on-year [27]. - Nickel metal prices are influenced by global economic recovery uncertainties and high interest rates, with significant volatility expected in 2024 due to supply shortages and geopolitical factors [36]. Strategic Initiatives and Goals - The company is focused on expanding its nickel industry value chain, integrating upstream resource procurement, midstream smelting production, and downstream application scenarios [4]. - The company aims to leverage Chinese technology to integrate global resources, positioning itself as a leader in the nickel industry [4]. - The company is committed to becoming a leading service provider in the global nickel industry chain, focusing on steady progress and transformation [20]. - The company is actively participating in community construction and environmental protection projects in the Obi project area, demonstrating its commitment to social responsibility [22]. - The company is committed to green low-carbon production and aims to integrate advanced Chinese technology with global resources for sustainable development [28]. - The company is focusing on cost reduction and efficiency improvement through optimized business models and flexible sales and procurement strategies [22]. Governance and Compliance - The company has appointed multiple directors and managers across various subsidiaries, indicating a strong governance structure [87][88][89][90][91][92][93][94][95][96]. - The board of directors consists of 9 members, ensuring diverse expertise and governance [111]. - The company has adopted strict internal procedures to ensure compliance with ethical standards and regulations [107]. - The independent non-executive directors confirmed their independence annually as per listing rules [115]. - The company has established a robust internal control and risk management system to oversee its operations and financial performance [124]. - The audit committee, composed entirely of independent non-executive directors, reviews the financial reporting process and internal control systems annually [151]. Community and Environmental Responsibility - The company is actively involved in community initiatives, which may improve its public image and stakeholder relations [95]. - The company has a strong focus on green production and circular economy, recycling by-products to maximize resource utilization [39]. - The company is enhancing its R&D capabilities, focusing on comprehensive development of metal resources from laterite nickel ore and energy-saving technologies [51]. Future Outlook and Expansion Plans - Future outlook includes strategic expansions and potential acquisitions to enhance market presence, although specific targets were not mentioned [89]. - The company is exploring opportunities in emerging markets, which could provide new revenue streams [89]. - The company plans to continue expanding its market presence and enhancing customer relationships through improved trade processes and services [31].

2024年全球镍市场延续了"过山车"行情。 上期所沪镍主连价格从年初的12.3万元/吨冲高至5月的16万元/吨，随后因供应过剩加剧和需求阶段性疲软逐步回落至年初水平，全年呈现"冲高回落、底部 震荡"的格局。 （沪镍主连；来源：百度股市通） 尽管镍价波动，但拉长时间来看，随着印尼政策收紧、新能源需求放量以及供给端出清加速，镍价进一步下探的空间已十分有限。在这一背景下，能够实现 逆势增长的镍企尤为值得关注——其不仅展现了穿越周期的韧性，更将在行业景气度回升时释放更大的增长弹性。 力勤资源正是其中的典型代表。2024年，公司依托技术领先的湿法冶炼工艺、全球化资源布局及成本管控优势，在行业普遍承压的环境下，实现了营收与净 利润的双增长，2024年公司实现营业收入人民币292.3亿元，同比增长38.8%，实现归母净利润人民币17.7亿元，同比增长68.7%。这一业绩表现不仅验证了 其战略布局的前瞻性，更凸显了其在镍产业链升级中的核心地位。 一、供需剪刀差收窄，资源禀赋构筑长期护城河 立足当下，镍市场仍处于供过于求的局面。2024年全球镍矿产量预计达352万吨，同比增加4.7%，其中印尼贡献了全球四分之三的供应量。 但拉 ...

Financial Performance - Revenue increased from RMB 21,059.3 million for the year ended December 31, 2023, to RMB 29,233.0 million for the year ended December 31, 2024, representing a growth of 38.8%[4] - Gross profit rose from RMB 3,382.0 million for the year ended December 31, 2023, to RMB 5,352.5 million for the year ended December 31, 2024, with a gross margin of 18.3%, up 2.2 percentage points from 16.1%[4] - Profit for the year reached RMB 3,208.8 million, an increase of 86.4% compared to RMB 1,721.5 million for the year ended December 31, 2023[4] - Profit attributable to owners of the company increased by 68.7% to RMB 1,773.2 million from RMB 1,051.4 million for the year ended December 31, 2023[4] - Total comprehensive income for the year was RMB 3,370.1 million, compared to RMB 1,897.7 million for the previous year[6] - The company achieved a revenue of RMB 29,233 million in 2024, representing a year-on-year growth of 38.8%[46] - The net profit attributable to shareholders reached RMB 1,773.2 million, an increase of 68.7% compared to the previous year[52] Dividends - The board proposed a final dividend of RMB 0.35 per share (pre-tax) for the year ended December 31, 2024, compared to RMB 0.20 per share (pre-tax) for the previous year[4] - The proposed final dividend for the year ending December 31, 2024, is RMB 0.35 per share, with total dividends distributed amounting to RMB 1,423,340,000[31] Assets and Liabilities - Non-current assets increased to RMB 25,357.7 million as of December 31, 2024, from RMB 20,400.9 million as of December 31, 2023[7] - Current assets rose to RMB 12,599.3 million as of December 31, 2024, compared to RMB 10,278.9 million as of December 31, 2023[8] - Total liabilities increased to RMB 20,000.4 million as of December 31, 2024, from RMB 16,194.4 million as of December 31, 2023[8] Revenue Sources - Revenue from nickel product sales amounted to RMB 28,255,139 thousand, up 38.8% from RMB 20,376,803 thousand in the previous year[18] - Revenue from services transferred over time was RMB 1,714,289 thousand, compared to RMB 1,139,012 thousand in 2023, reflecting a 50.2% increase[18] - The company reported a significant increase in revenue from other regions, which rose to RMB 3,647,205 thousand from RMB 834,638 thousand in 2023[16] Production and Capacity - The company’s nickel production capacity includes 120,000 tons of nickel-cobalt compounds from hydrometallurgical processes and 280,000 tons of nickel iron from pyrometallurgical processes[52] - The company successfully achieved full production capacity for the HPAL project in Indonesia, contributing to stable operational performance[46] - The HPAL project has achieved design capacity within two months of production, setting multiple industry records and is one of the lowest cash cost nickel-cobalt compound production projects[66] Market and Industry Trends - In 2024, the global nickel market faced a complex supply-demand situation, with Indonesia maintaining a relatively balanced but tightening nickel ore supply[47] - The demand for nickel in the new energy vehicle sector is expected to grow, with the market for nickel sulfate experiencing a temporary shortage in 2024[48] - The production of stainless steel in China reached 39.44 million tons in 2024, an increase of 7.54% year-on-year[51] - The sales volume of new energy vehicles in China reached 12.886 million units in 2024, a year-on-year increase of 35.5%[50] Strategic Initiatives - The company is actively responding to national policies for green transformation, aiming to integrate advanced Chinese technology with global resources[52] - The company is focusing on the Obi project in Indonesia as a key driver for future profit growth, ensuring the production line starts smoothly and operates efficiently[75] - The company plans to deepen cooperation with top domestic educational and research institutions in 2024 to drive technological innovation and industry upgrades, with tailings treatment technology development nearing completion[70] Financial Management - The total income tax expense for 2024 was RMB 608,290,000, compared to RMB 40,024,000 in 2023, marking a substantial increase of 1415.7%[31] - Administrative expenses increased by 11.4% from RMB 928.0 million to RMB 1,033.8 million, mainly due to business expansion and rising employee costs[85] - Financing costs rose from RMB 534.9 million to RMB 647.5 million, attributed to increased bank borrowings and rising interest rates[87] Corporate Governance - The company has maintained compliance with the corporate governance code, except for specific provisions regarding the separation of roles between the chairman and CEO[115] - The audit committee has reviewed the annual performance and consolidated financial statements for the year ending December 31, 2024, ensuring effective risk management policies are in place[120] Community and Environmental Responsibility - The company actively engaged in community development and environmental protection projects in the Obi project area, demonstrating its commitment to social responsibility[46] - The company has established a comprehensive ESG operating system and continues to optimize ESG-related matters, integrating sustainable development concepts into all aspects of trade, production, and sales[74]

INTERIM REPORT 2024 宁 波 力 勤 资 源 科 技 股 份 有 限 公 司 LYGEND RESOURCES & TECHNOLOGY CO., LTD. （於中華人民共和國註冊成立的股份有限公司） 股份代號：2245 (A joint stock company incorporated in the People's Republic of China with limited liability) Stock Code: 2245 2024 中期報告 目錄 公司資料 2 董事長報告書 4 管理層討論與分析 6 企業管治及其他資料 25 未經審核中期簡明綜合損益及其他全面收益表 36 未經審核中期簡明綜合財務狀況表 37 未經審核中期簡明綜合權益變動表 39 未經審核中期簡明綜合現金流量表 41 未經審核中期簡明綜合財務資料附註 43 寧波力勤資源科技股份有限公司 二零二四年中期報告 2 董事會 江新芳先生（於二零二四年三月二十八日辭任） 費鳳女士 蔡建威先生 余衛軍先生 非執行董事 Lawrence LUA Gek Pong先生 獨立非執行董事 何萬篷博士 張爭萍女士 王緝憲博士 蔡 ...

Financial Performance - Revenue increased to RMB 10,878.0 million for the six months ended June 30, 2024, representing a growth of 17.2% compared to RMB 9,284.1 million for the same period in 2023[2] - Gross profit rose to RMB 1,827.4 million, with a gross margin of 16.8%, slightly down from 16.9% in the previous year[2] - Profit for the period reached RMB 970.4 million, a significant increase of 46.6% from RMB 662.0 million in the prior year[2] - Profit attributable to equity holders of the company was RMB 586.9 million, up 73.5% from RMB 338.4 million in the same period last year[2] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[2] - Customer contract revenue for the six months ended June 30, 2024, reached RMB 10,877,988 thousand, an increase of 17.1% compared to RMB 9,284,106 thousand for the same period in 2023[19] - Nickel product sales amounted to RMB 10,473,140 thousand, up 17.0% from RMB 8,952,148 thousand in the previous year[15] - The cost of goods sold for the six months ended June 30, 2024, was RMB 8,498,871 thousand, compared to RMB 7,234,979 thousand in 2023, reflecting an increase of 17.5%[20] - The net profit attributable to the parent company for the same period was RMB 586.9 million, reflecting a significant year-on-year increase of 73.5%[31] - Total revenue increased by 17.2% from RMB 9,284.1 million in the six months ended June 30, 2023, to RMB 10,877.9 million in the six months ended June 30, 2024[58] Assets and Liabilities - Current assets totaled RMB 12,018.8 million, an increase from RMB 10,278.9 million as of December 31, 2023[7] - Current liabilities amounted to RMB 11,857.5 million, up from RMB 9,285.6 million at the end of 2023[7] - Non-current assets increased to RMB 22,863.6 million from RMB 20,400.9 million as of December 31, 2023[8] - Total assets less current liabilities stood at RMB 23,024.9 million, compared to RMB 21,394.1 million previously[9] - The net asset value of the company was RMB 15,187.6 million, an increase from RMB 13,485.4 million at the end of 2023[10] - Trade receivables as of June 30, 2024, amounted to RMB 1,861,391 thousand, a significant increase from RMB 363,888 thousand as of December 31, 2023[27] - The company's trade payables as of June 30, 2024, totaled RMB 1,766,225 thousand, compared to RMB 1,249,276 thousand as of December 31, 2023[30] - Total debt increased to RMB 14,240.8 million as of June 30, 2024, from RMB 11,532.3 million as of December 31, 2023, with fixed-rate borrowings rising significantly[74] Production and Operations - The capacity utilization rate of the HPAL project in Indonesia exceeded 100%, indicating stable overproduction[31] - The ONC project of the HPAL project has completed all production line construction and has officially transitioned to the trial production phase[31] - The HPAL project produced 39,000 metric tons of nickel in the first half of 2024, with utilization rates exceeding 100%[39] - The company’s HJF project achieved production of over 50,000 metric tons of nickel during the reporting period, maintaining a stable production rhythm[40] - The company has successfully achieved production capacity for its HPL project within two months of launch, setting multiple industry records[46] - The HPAL project utilizes the third-generation HPAL process, which is among the most competitive technologies for processing low-grade nickel ore, significantly enhancing production capacity while reducing energy consumption and production costs[47] Research and Development - The company has established a research and development center in collaboration with Xi'an University of Architecture and Technology to advance ferroalloy engineering technology[50] - The company has built a high-quality research team and established new research centers to significantly improve its R&D capabilities[55] - The company is actively enhancing its R&D capabilities, focusing on comprehensive utilization of nickel and cobalt resources, energy conservation, and intelligent control in production processes[55] - The company has implemented continuous process improvements and innovations through its own R&D team and partnerships with third-party institutions[49] Market and Strategic Initiatives - The company plans to benefit from the ongoing demand recovery driven by policies supporting equipment upgrades and trade-in programs[32] - The company continues to expand its influence in the electric vehicle sector, particularly with increasing production capacity in the HPAL project, which presents new growth opportunities[52] - The company aims to replicate its successful operational model in other regions with rich nickel resources, enhancing its position in the nickel industry value chain[57] - The company has established long-term partnerships with leading producers in the stainless steel industry, ensuring stable supply chains and quality control[52] Environmental and Social Responsibility - The company has actively participated in environmental protection projects and community development, demonstrating its commitment to social responsibility[31] - The company emphasizes green production and circular economy principles, maximizing resource utilization efficiency through innovative planning[45] - The company has implemented a comprehensive ESG management mechanism, ensuring effective management and continuous improvement of sustainability practices[53] Expenses and Financial Management - Sales and distribution expenses increased significantly from RMB 29.2 million for the six months ended June 30, 2023, to RMB 63.4 million for the six months ending June 30, 2024, mainly due to increased sales volume and corresponding salary expenses[63] - Administrative expenses rose by 9.1% from RMB 449.3 million for the six months ended June 30, 2023, to RMB 490.2 million for the six months ending June 30, 2024, primarily due to increased employee costs from business expansion[64] - Financing costs increased by 13.5% from RMB 232.5 million for the six months ended June 30, 2023, to RMB 263.9 million for the six months ending June 30, 2024, primarily due to increased interest expenses from bank borrowings[66] Corporate Governance - The company has adopted the standard code for securities transactions by directors and confirmed compliance during the reporting period[82] - The audit committee has been established in accordance with Listing Rule 3.21 and comprises three independent non-executive directors[85] - The group has reviewed the unaudited interim results and consolidated financial statements for the six months ending June 30, 2024[85]

Financial Performance - Revenue for the year 2023 reached RMB 21,059,316 thousand, an increase of 15.5% compared to RMB 18,289,596 thousand in 2022[24] - Gross profit for 2023 was RMB 3,381,965 thousand, down 24.7% from RMB 4,493,835 thousand in the previous year[24] - Profit before tax decreased to RMB 1,761,514 thousand, a decline of 44.7% from RMB 3,184,970 thousand in 2022[24] - Total comprehensive income for the year was RMB 1,897,695 thousand, down 46.8% from RMB 3,568,068 thousand in 2022[24] - Net profit attributable to shareholders was RMB 1,051.4 million, a decrease of 39.4% compared to the previous year, primarily due to the impact of the London nickel incident in March 2022[35] - Annual profit decreased from RMB 3,028.1 million for the year ended December 31, 2022, to RMB 1,721.5 million for the year ended December 31, 2023, with a net profit margin decline from 16.6% to 8.2%[78] - The company achieved a total operating revenue of RMB 21,059.3 million in 2023, representing a year-on-year growth of 15.1%[35] Assets and Liabilities - Non-current assets increased significantly to RMB 20,400,855 thousand in 2023, up 70.1% from RMB 12,015,872 thousand in 2022[25] - Total assets reached RMB 30,679,708 thousand, representing a 47.3% increase from RMB 20,840,394 thousand in 2022[25] - Total liabilities rose to RMB 17,194,358 thousand, an increase of 95.5% compared to RMB 8,812,597 thousand in the previous year[25] - Equity attributable to shareholders of the parent company was RMB 9,185,546 thousand, up 8.3% from RMB 8,476,396 thousand in 2022[25] Market and Production Insights - The company continues to expand its vertical integration in the nickel industry, enhancing its product service system across various industry segments[19] - Future strategies include further development of new products and technologies to strengthen market position in the electric vehicle and stainless steel sectors[19] - In 2023, the company's nickel production projects, including the HPAL project, successfully achieved production targets despite significant fluctuations in nickel prices, with LME nickel prices dropping by 44.45% from $29,920 to $16,620[30] - The Shanghai Futures Exchange nickel prices fell by 45.30% from ¥228,900 to ¥125,200 during the year, impacting the company's revenue and profit levels[30] - The company reported a strong market outlook for its main products, which are closely linked to the steel and new energy vehicle sectors, indicating potential for future growth[30] - In 2023, global sales of new energy vehicles reached 9.587 million units, a year-on-year increase of 35.8%, with a market penetration rate of 31.6%[33] Strategic Initiatives - The company is actively expanding its upstream resource channels and seeking quality nickel ore resources to enhance its product offerings[30] - The company has established a comprehensive business system across the entire nickel industry value chain, including nickel resource integration, production, and equipment manufacturing[34] - The company successfully launched the first phase of the RKEF project, contributing to its overall production capacity and operational efficiency[30] - The company aims to enhance its R&D capabilities and promote technological innovation to adapt to market changes and improve cost efficiency[30] - The company has been actively involved in the "Belt and Road" initiative, collaborating with Indonesian partners to develop the Obi industrial park for nickel production[34] Research and Development - The company has applied for nearly 30 patents in 2023, focusing on innovation and continuous process improvement[53] - The company has established a research and development center in collaboration with Xi'an University of Architecture and Technology to enhance technical capabilities[53] - The company is planning to build a demonstration plant for the tailings treatment technology developed from the HPAL project, aiming for industrial application[53] - Research and development investments increased by 30%, focusing on sustainable resource technologies[103] Corporate Governance - The company aims to improve its corporate governance practices, adhering to the principles outlined in the Hong Kong Stock Exchange's corporate governance code[103] - The management team emphasized the importance of transparency and accountability in enhancing stakeholder trust and corporate value[103] - The board consists of 8 members, including 4 executive directors, 1 non-executive director, and 3 independent non-executive directors[108] - The company has implemented strict internal procedures to ensure compliance with relevant regulations, including anti-bribery and anti-corruption measures[105] - The independent non-executive directors represent one-third of the board, ensuring compliance with listing rules[110] Related Party Transactions - The company entered into a one-time related party transaction for equipment procurement with Ningbo Lihua, agreeing to purchase six 40t-37/38m gantry cranes for a total of $13,518,100[170] - A loan agreement was established with Capas International for a principal amount of up to RMB 65,000,000, which constitutes a related party transaction[170] - The ongoing related party transactions included the supply of nickel ore valued at $203.2 million and nickel products valued at $2,180.6 million from PT Harita Guna Dharma Bhakti[172] - The company has a framework agreement with GSP for unloading services, with a transaction value of $0.5 million for the fiscal year ending December 31, 2023[172] - The external auditor found no issues with the approval of disclosed related party transactions and confirmed compliance with pricing policies[198] Sustainability and ESG - The company is committed to ESG sustainability, implementing a comprehensive ESG operational mechanism and obtaining ISO certifications for its nickel-cobalt intermediate products[57][59] - The Environmental, Social, and Governance (ESG) Committee was established on March 31, 2023, to identify risks and opportunities related to ESG and report regularly to the board[126] - The ESG Committee consists of eleven members, including one executive director, and is responsible for setting and reviewing ESG goals[126] - The company aims to enhance gender diversity in senior management recruitment and provide training and development opportunities for female talent[130] Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion[103] - New product launches are expected to contribute an additional 200 million in revenue, with a focus on innovative technologies in resource management[103] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[103] - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and increase market penetration[103]

Revenue and Profitability - Revenue increased from RMB 18,289.6 million for the year ended December 31, 2022, to RMB 21,059.3 million for the year ended December 31, 2023, representing a growth of 15.1%[2] - Profit for the year was RMB 1,721.5 million, down 43.1% from RMB 3,028.1 million for the year ended December 31, 2022[2] - Profit attributable to equity holders of the company decreased by 39.4% to RMB 1,051.4 million from RMB 1,735.2 million in the previous year[2] - The company’s pre-tax profit for 2023 was RMB 1,761,514,000, a decrease of 44.6% compared to RMB 3,184,970,000 in 2022[33] - Annual profit dropped from RMB 3,028.1 million to RMB 1,721.5 million, with net profit margin declining from 16.6% to 8.2%[88] Gross Profit and Margins - Gross profit decreased from RMB 4,493.8 million for the year ended December 31, 2022, to RMB 3,382.0 million for the year ended December 31, 2023, a decline of 24.7%, with a gross margin of 16.1% compared to 24.6% in the previous year[2] - The gross profit from trading business fell by 36.7% to RMB 419.8 million, with gross margin declining from 8.0% to 3.6% due to falling market prices and an increased proportion of low-margin nickel-iron sales[80] - Production business gross profit decreased by 22.6% to RMB 2,869.9 million, with gross margin dropping from 40.7% to 32.8% primarily due to lower market prices[80] Assets and Liabilities - Total current assets increased to RMB 10,278.9 million from RMB 8,824.5 million year-on-year[7] - Total current liabilities rose to RMB 9,285.6 million from RMB 4,853.3 million year-on-year[7] - Non-current assets increased to RMB 20,400.9 million from RMB 12,015.9 million year-on-year[8] - Total assets less current liabilities amounted to RMB 21,394.1 million, up from RMB 15,987.1 million year-on-year[10] - Net assets attributable to equity holders of the parent increased to RMB 13,485.4 million from RMB 12,027.8 million year-on-year[11] Revenue Sources - Revenue from mainland China was RMB 20,224,678 thousand, up from RMB 16,028,582 thousand, representing a growth of 26.4%[17] - Nickel product sales accounted for RMB 20,376,803 thousand of total revenue, compared to RMB 17,378,249 thousand in 2022, reflecting a growth of 17.2%[20] - Revenue from services provided over time amounted to RMB 1,139,012 thousand, compared to RMB 1,546,515 thousand in 2022, indicating a decrease of 26.5%[20] - Revenue from nickel product trading rose by 40.7% from RMB 8,259.0 million in 2022 to RMB 11,624.3 million in 2023, mainly due to the commencement of nickel-iron production from the RKEF project[78] - Revenue from production operations decreased by 4.0% from RMB 9,119.2 million in 2022 to RMB 8,752.5 million in 2023, attributed to falling nickel market prices[78] Expenses and Costs - The cost of sold inventory for 2023 amounts to RMB 16,519,466,000, an increase from RMB 12,259,921,000 in 2022, representing a rise of about 34.5%[29] - Employee benefit expenses for 2023 total RMB 889,601,000, compared to RMB 670,697,000 in 2022, reflecting an increase of approximately 32.7%[29] - Administrative expenses increased by 17.3% to RMB 928.0 million, driven by higher on-site management costs and increased employee costs due to business expansion[82] - Financing costs surged from RMB 254.4 million to RMB 534.9 million, attributed to increased bank borrowings and rising interest rates[84] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.20 per share (pre-tax) for the year ended December 31, 2023, subject to approval at the annual general meeting[2] - The proposed final dividend for the year ending December 31, 2023, is RMB 0.20 per share, pending approval at the upcoming annual general meeting[34] Market and Industry Insights - The price of nickel on the Shanghai Futures Exchange dropped from RMB 228,900 at the beginning of the year to RMB 125,200 by year-end, a decline of 45.30%[53] - The London Metal Exchange nickel price fell from USD 29,920 at the beginning of the year to USD 16,620 by year-end, a decrease of 44.45%[53] - In 2023, China's stainless steel crude steel production reached 36.6759 million tons, a year-on-year increase of 12.59%[51] - The sales volume of new energy vehicles in China reached 9.587 million units in 2023, a year-on-year increase of 35.8%[52] - The market penetration rate of new energy vehicles in China reached 31.6%, up 5.9 percentage points from the previous year[52] Strategic Initiatives and Future Plans - The company plans to continue expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[16] - The company aims to expand upstream resource channels to secure high-quality nickel ore investment opportunities, which are crucial for sustainable development[74] - The company is committed to building a more open and prosperous nickel resource ecosystem by developing independent industrial parks and supporting infrastructure[75] - The company intends to maximize resource utilization by reusing intermediate products generated during production processes in nickel-cobalt compound and nickel-iron production[76] Research and Development - The company incurred research and development expenses of RMB 7,665,000 in 2023, compared to RMB 6,810,000 in 2022, indicating an increase in R&D investment[33] - The company plans to enhance R&D capabilities by increasing investment, upgrading production processes, and establishing new R&D centers[73] - The company has filed nearly 30 patents in 2023, primarily for invention patents, and holds over a hundred patents in total, establishing a solid foundation for future innovation[67] Legal and Compliance - The company is currently involved in a lawsuit with Anhui Pengtai Environmental Equipment Co., Ltd., claiming additional costs of RMB 8,216,000 due to contract violations[93] - The company currently has no foreign currency hedging policy but regularly reviews foreign currency risks[95] - The company has maintained a minimum public float of 15% as required by the Stock Exchange since its listing date[104] Corporate Governance - The Audit Committee, consisting of three members, has reviewed the annual performance and consolidated financial statements for the year ending December 31, 2023[105] - The financial information provided does not constitute audited accounts for the year ending December 31, 2023, but is extracted from the consolidated financial statements audited by Ernst & Young[106] - The Annual General Meeting is expected to be held on May 21, 2024[107]

Production and Sales - The company imported 4.5 million tons of nickel ore and sold 30,000 metal tons of nickel iron, representing a year-on-year increase of 131.1%[20] - The company produced 26,000 metal tons of MHP from its wet production projects during the reporting period[20] - The company achieved a production volume of 3,000 metal tons of battery-grade nickel sulfate, marking a significant increase in production capacity[20] - Nickel ore trading volume reached 4.452 million tons, maintaining existing market share, while nickel iron sales increased by 131.1% year-on-year to 30,000 metal tons[40] - The company’s production capacity for battery-grade nickel sulfate reached 3,000 metal tons during the reporting period, with a total production of 26,000 metal tons of MHP[43] Financial Performance - The company achieved total revenue of RMB 9,284.1 million for the first half of 2023, a decrease of 7.0% year-on-year but an increase of 11.7% quarter-on-quarter[39] - Net profit attributable to shareholders was RMB 338.4 million, down 74.9% year-on-year and down 12.1% quarter-on-quarter, primarily due to the historical surge in LME nickel prices in March 2022[39] - Revenue for the six months ended June 30, 2023, decreased by 7.0% to RMB 9,284.1 million from RMB 9,978.3 million for the same period in 2022, primarily due to a decline in revenue from nickel product production[47] - Gross profit fell by 49.2% to RMB 1,567.4 million, with the gross margin dropping from 30.9% to 16.9%[50] - Profit before tax dropped by 73.4% to RMB 636.2 million, reflecting the impact of declining cobalt and nickel market prices on gross profit[59] - Net profit for the six months ended June 30, 2023, decreased to RMB 662.0 million, with a net profit margin falling from 22.9% to 7.1%[61] Debt and Financing - The company secured a syndicated loan equivalent to $780 million for the construction of its wet production phase three project[20] - The company's debt as of June 30, 2023, was RMB 11,698.7 million, an increase from RMB 6,291.4 million on June 30, 2022[65] - The debt-to-equity ratio rose from 0.5 as of June 30, 2022, to 0.9 as of June 30, 2023, primarily due to new borrowings for the wet process phase II project[65] - Financing costs increased significantly to RMB 232.5 million, driven by higher bank borrowings and rising interest rates[55] Research and Development - The company has registered 74 patents in China as of June 30, 2023, including five authorized invention patents, primarily related to nickel product production equipment[34] - The company has established a research and development center in collaboration with Xi'an University of Architecture and Technology, focusing on the development of ferrous alloy engineering technology[34] - The company has implemented continuous process improvements and research and development innovations, collaborating with various educational and research institutions[34] - The company plans to enhance its R&D capabilities by establishing new R&D centers and collaborating with academic institutions to improve production processes and develop new technologies[78] Market Position and Strategy - The company aims to become a global leader in nickel and related product supply, focusing on technological innovation and green development[22] - The company is positioned across the entire nickel industry value chain, from resource integration and trade to production and equipment manufacturing[24] - The company has established stable partnerships with Indonesian and Philippine miners, ensuring the reliability of raw material and sales channels[22] - The company has established long-term supply agreements for nickel resources with partners in Indonesia and the Philippines, ensuring stable supply channels[35] - The company is focused on completing the construction and expansion of its nickel product production projects in Indonesia, particularly the Obi project, which is crucial for future profit growth[76] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with all applicable provisions during the reporting period[83] - The company emphasizes high standards of ethics, transparency, accountability, and integrity in its corporate governance practices[83] - The company has confirmed that all directors and supervisors strictly adhered to the standard code of conduct for securities trading during the reporting period[81] Shareholder Information - As of June 30, 2023, the company has issued a total of 1,555,931,350 shares[85] - Mr. Cai Jianyong holds 955,581,000 shares, representing 72.52% of the non-listed shares and 61.42% of the total shares[84] - The company has a diversified shareholder base, including investment funds and controlled corporations, enhancing its financial stability[95] Environmental, Social, and Governance (ESG) - The company has implemented an ESG policy and established a board-level ESG committee to manage related risks and opportunities[38] Future Outlook - The company anticipates that nickel prices may stabilize as new projects come online, potentially boosting demand for ternary batteries[20] - The company is actively pursuing quality nickel ore investment opportunities to secure stable and high-quality nickel resources for sustainable development[78] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[118]

Financial Performance - Revenue decreased from RMB 9,978.3 million for the six months ended June 30, 2022, to RMB 9,284.1 million for the six months ended June 30, 2023, a decline of 7.0%[2] - Gross profit fell from RMB 3,084.2 million to RMB 1,567.4 million, representing a decrease of 49.2%, with a gross margin of 16.9%, down 14.0 percentage points from 30.9%[2] - Profit for the period decreased by 71.1% from RMB 2,289.6 million to RMB 662.0 million[2] - Profit attributable to owners of the company dropped by 74.9% from RMB 1,350.1 million to RMB 338.4 million[2] - Basic and diluted earnings per share decreased from RMB 1.02 to RMB 0.22[5] - Total customer contract revenue for the six months ended June 30, 2023, was RMB 9,284,106 thousand, a decrease of 6.9% from RMB 9,978,283 thousand in the same period of 2022[16] - Nickel product sales accounted for RMB 8,952,148 thousand, down from RMB 9,160,938 thousand, representing a decline of 2.3% year-over-year[16] - Nickel product production revenue for the six months ended June 30, 2023, was RMB 4,072.8 million, representing 43.8% of total revenue, down from 49.7% in the previous year[49] - The net profit attributable to shareholders for the same period was RMB 338.4 million, down 74.9% year-on-year and down 12.1% quarter-on-quarter, primarily due to the historical surge in LME nickel prices in March 2022[29] Dividend and Shareholder Returns - The board has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2023[2] - A special dividend of RMB 466,779,000 was declared on January 3, 2023, and fully paid by June 30, 2023[22] - The company has not declared an interim dividend for the six months ended June 30, 2023[67] Assets and Liabilities - Non-current assets increased from RMB 12,015.9 million as of December 31, 2022, to RMB 16,282.9 million as of June 30, 2023[6] - Current liabilities rose significantly from RMB 4,853.3 million to RMB 8,388.5 million[6] - Total assets less current liabilities increased from RMB 15,987.1 million to RMB 19,757.3 million[7] - Net assets attributable to owners of the parent increased from RMB 12,027.8 million to RMB 12,633.7 million[9] - Total current assets increased by 34.4% to RMB 11,862.8 million as of June 30, 2023, compared to RMB 8,824.5 million as of December 31, 2022[61] - As of June 30, 2023, the company's total debt amounted to RMB 11,698.7 million, an increase from RMB 6,291.4 million as of June 30, 2022[64] - The capital debt ratio rose from 0.5 as of June 30, 2022, to 0.9 as of June 30, 2023, primarily due to new borrowings for the wet process phase II project[64] Taxation - The effective corporate income tax rate in China remains at 25%, with one subsidiary benefiting from a reduced rate of 15% due to its recognition as a high-tech enterprise[19] - The company's income tax expense for the six months ended June 30, 2023, was RMB 22,571,000, compared to RMB 116,757,000 for the same period in 2022, indicating a significant decrease in tax expenses[21] - The deferred tax expense for the six months ended June 30, 2023, was (RMB 48,380,000), compared to (RMB 13,861,000) in the same period of 2022, reflecting changes in tax regulations[21] Operational Highlights - Nickel ore trading volume reached 4.452 million tons, maintaining existing market share, while nickel iron sales increased by 131.1% year-on-year to 30,000 metal tons[31] - The company’s wet process project achieved a cumulative production of 26,000 metal tons of MHP and 3,000 metal tons of battery-grade nickel sulfate during the reporting period[33] - The company successfully secured a syndicated loan equivalent to RMB 780 million for the third phase of the wet process project, with core production equipment already on-site[33] - The company’s RKEF phase one production line was fully operational during the reporting period, with ongoing efforts to optimize production efficiency and product quality[34] - The company has established a stable supply chain for nickel resources, primarily sourcing from Indonesia and the Philippines, ensuring uninterrupted access to high-quality nickel ore and nickel products[42] Research and Development - Research and development investments will be increased to enhance production processes and develop new technologies, with a focus on comprehensive utilization of nickel resources and energy-saving measures[46] - The company has registered 74 patents in China as of June 30, 2023, with a focus on nickel product production equipment, and has seven invention patents pending[41] Corporate Governance and Compliance - The company is committed to maintaining strict corporate governance and has adhered to all applicable code provisions during the reporting period[70] - The company has implemented an ESG policy and established a board-level ESG committee to manage related risks and opportunities[44] - The Audit Committee, consisting of three independent non-executive directors, has been established to oversee risk management policies and internal control systems[73] Market Position and Strategy - The company is focused on expanding its nickel product production projects, particularly the Obi project in Indonesia, which is crucial for future profit growth[45] - The company has established long-term stable partnerships with leading manufacturers in the stainless steel and new energy vehicle industries, including major clients like Baowu Steel and CATL[43] - The company is preparing to build a demonstration plant to industrialize the tailings treatment technology developed from the HPAL project, which will enable the recovery of iron metals from tailings[41]

Financial Performance - Total revenue for 2022 reached RMB 18,289,596 thousand, a 46.5% increase from RMB 12,449,318 thousand in 2021[28] - Gross profit for 2022 was RMB 4,493,835 thousand, compared to RMB 1,515,928 thousand in 2021, reflecting a significant growth[28] - Profit before tax increased to RMB 3,184,970 thousand in 2022, up from RMB 1,439,137 thousand in the previous year, marking a 121.3% rise[28] - The total comprehensive income for the year was RMB 3,568,068 thousand, compared to RMB 1,277,212 thousand in 2021, indicating a strong performance[28] - The company's revenue increased by 46.9% from RMB 12,449.3 million for the year ended December 31, 2021, to RMB 18,289.6 million for the year ended December 31, 2022[35] - Annual profit increased significantly from RMB 1,260.0 million for the year ended December 31, 2021, to RMB 3,028.1 million for the year ended December 31, 2022, with a net profit margin growth from 10.1% to 16.6%[55] Asset and Liability Management - Non-current assets increased to RMB 12,015,872 thousand in 2022, up from RMB 7,637,849 thousand in 2021, showing robust asset growth[29] - Total assets reached RMB 20,840,394 thousand in 2022, compared to RMB 12,281,400 thousand in 2021, reflecting a strong expansion[29] - The total liabilities increased to RMB 8,812,597 thousand in 2022, compared to RMB 7,107,743 thousand in 2021, indicating increased leverage[29] - Equity attributable to owners of the parent rose to RMB 8,476,396 thousand in 2022, compared to RMB 3,138,398 thousand in 2021, demonstrating strong shareholder value growth[29] - The company's debt as of December 31, 2022, was RMB 6,291.4 million, an increase from RMB 4,762.5 million as of December 31, 2021[69] - The debt-to-equity ratio improved from 0.9 as of December 31, 2021, to 0.5 as of December 31, 2022, due to significant equity increase from the IPO[70] Operational Developments - The company successfully launched the second phase of the nickel product smelting project in Indonesia, significantly exceeding design capacity in the first phase[32] - The company successfully completed the HPAL project, achieving over 100% utilization of the first phase production lines[36] - The company is in the construction phase for the third phase of the wet process project, following regulatory approvals[36] - The company plans to build multiple integrated downstream production bases in Indonesia, including Obi Island, to maximize resource utilization and achieve intensive benefits[81] - The company aims to enhance operational efficiency across the entire industrial chain on Obi Island, minimizing operational and production costs[81] Revenue Streams and Market Position - Nickel product trading revenue decreased by 5.8% from RMB 8,771.1 million to RMB 8,259.0 million, primarily due to a decline in nickel ore sales volume[43] - The average selling price and sales volume of nickel iron increased, contributing to a revenue increase of RMB 1,285.1 million despite a decrease in overall trading revenue[43] - Revenue from production business increased significantly from RMB 2,448.5 million in 2021 to RMB 9,119.2 million in 2022, driven by the consolidation of HPL and increased customer demand for nickel-iron products[44] - The company’s nickel cobalt compound production revenue increased significantly, contributing 39.4% to total revenue in 2022[42] Cost Management and Expenses - Administrative expenses increased significantly from RMB 301.1 million in 2021 to RMB 791.3 million in 2022, primarily due to business expansion and increased personnel costs[49] - Financing costs rose sharply from RMB 79.3 million in 2021 to RMB 254.4 million in 2022, mainly due to increased bank loan interest[51] - Sales and distribution expenses decreased by 22.5% from RMB 124.1 million in 2021 to RMB 96.2 million in 2022, due to optimization of personnel structure[48] - Other operating expenses increased significantly from RMB 91.9 million in 2021 to RMB 388.9 million in 2022, mainly due to investment losses linked to nickel price fluctuations[50] Research and Development Initiatives - The company is committed to increasing R&D investment to enhance production processes and develop new technologies, including a domestic R&D center[79] - Future R&D directions include comprehensive utilization of metal resources from laterite nickel ore and development of nickel-cobalt composite materials[79] - The company plans to establish a high-quality research team and strengthen collaborations with academic institutions to boost R&D capabilities[79] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance and transparency[99] - The company has a whistleblowing mechanism in place to report and investigate any potential violations[99] - The board of directors consists of three independent non-executive directors, accounting for over one-third of the board members[103] - The company has implemented mechanisms to ensure independent viewpoints are considered in board decisions[106] Shareholder Communication and Dividend Policy - The company maintains communication with shareholders through various channels and presents independent resolutions for significant matters at shareholder meetings[138] - The company did not recommend the payment of a final dividend for the year ended December 31, 2022[151] - Future dividends will be subject to the company’s articles of association and relevant Chinese laws, requiring a 10% allocation of net profits to statutory reserves until it reaches over 50% of registered capital[137] Environmental and Social Responsibility - The company is committed to sustainable development and aims to create a livable industrial city while maintaining good relations with local governments[81] - The company emphasizes the importance of protecting the local ecosystem and environment while promoting a resource-saving and environmentally friendly industrial park[81] - The company is focused on low-carbon green operations and aims to promote green economic strategies under the Belt and Road Initiative[81]