Core Viewpoint - The stock price of Liqin Resources (02245) has surged over 13%, reaching a historical high of 25.6 HKD, with an 80% increase in the past month, driven by changes in cobalt export policies in the Democratic Republic of Congo (DRC) [1] Group 1: Cobalt Export Policy Changes - The DRC government updated its cobalt export policy on September 20, extending the cobalt export ban to October 15, 2025, and limiting export quotas for 2026-2027 to only 44% of annual production [1] - Huachuang Securities believes that the DRC's ban and quota policy will exacerbate the tight supply of cobalt raw materials, potentially accelerating the rise in cobalt prices [1] - Minsheng Securities indicates that the DRC government is firmly supporting higher cobalt prices, with a high likelihood of implementing quota systems, leading to a contraction in supply and a clear upward shift in cobalt price levels [1] Group 2: Company Impact - The company's wet-process nickel production capacity is located in Indonesia, which is not affected by the DRC's export restrictions, allowing it to fully benefit from the rising cobalt prices [1]

Group 1 - The Democratic Republic of Congo (DRC) has extended its cobalt export suspension until October 15, 2025, which may impact market expectations and inventory depletion rates in the short term [2] - The uncertainty surrounding the allocation of future cobalt quotas in the DRC and the limited incremental supply from Indonesia's MHP in 2024 is highlighted, indicating that even significant increases in production may not compensate for the shortfall caused by the DRC's quota policy [2] - According to customs data, China's cobalt intermediate imports from June to August were 19,000 tons, 13,800 tons, and 5,200 tons, reflecting significant month-over-month declines of -61.62%, -27.26%, and -62.05% respectively [2] Group 2 - It is projected that global effective cobalt supply will decrease by 34% from 282,000 tons to 185,000 tons in 2025 due to the DRC's export suspension lasting seven months, with further extensions potentially exacerbating raw material shortages [2] - The tightening supply situation is expected to lead to a continued rise in cobalt prices in the short term, with strong support for long-term price stability due to the DRC government's clear stance on cobalt supply management [2] - The stock price of Liqin Resources (02245) has increased by over 50% in the month, with a current price of 22.14 HKD, reflecting a rise of 4.43% and a trading volume of 338 million HKD [3]

Group 1 - The core viewpoint is that the recent extension of cobalt export restrictions in the Democratic Republic of Congo (DRC) is expected to impact market expectations and inventory depletion, leading to a potential increase in cobalt prices in the medium to long term [1][2] - Liqin Resources (02245) has seen its stock price rise over 50% this month, with a current price of 22.14 HKD and a trading volume of 338 million HKD [1] - The DRC's new cobalt export policy includes an extension of the export suspension until October 15, 2025, along with a subsequent quota system, which may create uncertainty in the allocation of future indicators [1] Group 2 - According to customs data, China's cobalt intermediate imports from June to August were 19,000 tons, 13,800 tons, and 5,200 tons, showing significant declines of 61.62%, 27.26%, and 62.05% respectively [2] - If the DRC's export suspension lasts for seven months, global effective cobalt supply is projected to decrease by 34% from 282,000 tons to 185,000 tons in 2025, with further extensions of the ban potentially exacerbating raw material shortages [2] - In a tightening supply scenario, short-term cobalt prices are expected to continue rising, with strong support for long-term price stability due to the DRC government's clear stance on cobalt supply management [2]

Nickel Production and Capacity - The company has established a complete nickel production process, including both pyrometallurgical and hydrometallurgical methods, with a total designed annual capacity of 120,000 metal tons of nickel-cobalt compounds and 280,000 metal tons of nickel iron from its projects in Indonesia [8]. - The Jiangsu factory has a designed annual capacity of 18,000 metal tons of nickel iron, utilizing the RKEF process [8]. - The company is committed to expanding its nickel product production capacity globally, with ongoing projects in Indonesia and China [8]. - The company has a total designed annual production capacity of 400,000 tons of nickel metal from its nickel smelting projects in Indonesia, with 120,000 tons from wet smelting and 280,000 tons from pyrometallurgical processes [26][30][31]. - The company’s wet smelting project achieved full production capacity during the reporting period, producing battery-grade nickel sulfate and cobalt sulfate to meet market demand [30]. Market and Strategic Partnerships - The company has formed stable partnerships with leading nickel mining companies in the Philippines, Indonesia, New Caledonia, and Turkey, ensuring a long-term stable supply of nickel ore [7]. - The company has a strong understanding of global nickel resource distribution, market supply and demand, industry trends, and price fluctuations, enabling it to establish long-term cooperation with reputable downstream clients [7]. - The company is actively expanding its market presence both domestically and internationally, leveraging its strong resource integration capabilities [28]. - The company continues to expand its influence in the new energy vehicle sector, signing multiple long-term agreements with leading global precursor and cathode material companies [44]. Financial Performance - In the first half of 2025, the company achieved operating revenue of RMB 18,146.6 million, a year-on-year increase of 66.8% [20]. - The net profit attributable to the parent company reached RMB 1,426.3 million, representing a significant year-on-year growth of 143.0% [20]. - Revenue increased by 66.8% from RMB 10,878 million for the six months ended June 30, 2024, to RMB 18,146 million for the six months ended June 30, 2025 [55]. - Gross profit rose by 95.9% from RMB 1,827.4 million to RMB 3,580.0 million, with gross margin increasing from 16.8% to 19.7% [57]. - The net profit for the six months was RMB 2,248,731 thousand, compared to RMB 970,381 thousand in the previous year, reflecting a significant growth of 132.5% [118]. Production Efficiency and Technological Innovation - The company continued to optimize the RKEF smelting process, enhancing production efficiency, with the KPS project expected to complete all construction and commence production by 2026 [20]. - The company has successfully upgraded its RKEF process technology in Indonesia, driving down energy consumption and production costs [41]. - The company is focused on optimizing production processes and enhancing operational efficiency to address the volatility in nickel prices and ensure alignment with market demand [34]. - The company is committed to sustainable development in the nickel industry through continuous technological innovation and deepening international collaboration [26]. Environmental, Social, and Governance (ESG) Commitment - The company emphasizes ESG development, integrating social responsibility into its operations in Indonesia, promoting a sustainable development model [20]. - The company is committed to green production and circular economy principles, significantly improving resource utilization rates through innovative process designs [37]. - The company is committed to ESG principles, integrating environmental responsibility and social value into its business strategy [46]. Shareholder and Corporate Governance - The company has complied with the corporate governance code, except for the separation of roles between the Chairman and CEO, which was addressed with a management change [87][88]. - The company’s articles of association were amended following a special resolution passed at the extraordinary general meeting held on June 23, 2025 [95]. - Major shareholders include Ms. Xie with 10.83% of non-listed shares and 7.84% of H-shares, and Likin Investment holding 50.54% of non-listed shares [104]. Cash Flow and Financial Position - Current assets reached RMB 15,580.4 million as of June 30, 2025, a 23.7% increase from RMB 12,599.3 million as of December 31, 2024 [68]. - Cash and cash equivalents amounted to RMB 6,372.8 million, up 26.6% from RMB 5,032.4 million as of December 31, 2024 [68]. - The operating cash flow for the six months ended June 30, 2025, was RMB 2,770,407 thousand, a significant improvement compared to a cash outflow of RMB (102,247) thousand for the same period in 2024 [125]. - The total comprehensive income for the period was RMB 1,371,045 thousand, compared to RMB 663,660 thousand in the same period last year, marking an increase of about 106.5% [122]. Investment and Capital Expenditures - Capital expenditures for the six months ended June 30, 2025, totaled RMB 2,328.0 million, compared to RMB 3,289.7 million for the same period in 2024 [70]. - The group has capital commitments for property, plant, and equipment amounting to RMB 8,411,614,000 as of June 30, 2025, compared to RMB 6,498,669,000 at the end of 2024 [157]. Risk Management - The company has implemented a "risk-neutral" approach to manage foreign exchange risks, focusing on reducing the negative impact of currency fluctuations on its main business [35]. - The company has no foreign currency hedging policy but will consider hedging significant foreign currency risks as needed [78].

Core Viewpoint - The recent updates on cobalt export policies in the Democratic Republic of Congo (DRC) are expected to significantly impact global cobalt supply and prices, benefiting companies involved in cobalt mining and refining, particularly those with operations in Indonesia and the DRC [1]. Group 1: Cobalt Export Policy Changes - The DRC government updated its cobalt export policy on September 20, extending the cobalt export ban to October 15, 2025, and limiting export quotas for 2026-2027 to only 44% of annual production [1]. - This policy is anticipated to lead to a substantial reduction in global cobalt supply from 2025 to 2027, resulting in a strong potential increase in cobalt prices [1]. Group 2: Company Implications - Companies with cobalt refining operations in Indonesia and those owning mines in the DRC are expected to benefit significantly from the anticipated rise in cobalt prices [1]. - The firm Minsheng Securities believes that the DRC government's firm stance on supporting cobalt prices indicates a high likelihood of implementing a quota system, leading to a contraction in supply and a clear upward shift in cobalt prices [1].

Core Viewpoint - The recent updates on cobalt export policies in the Democratic Republic of Congo (DRC) are expected to significantly impact global cobalt supply and prices, benefiting companies involved in cobalt mining and refining, particularly those with operations in Indonesia and the DRC [1] Group 1: Cobalt Export Policy Changes - The DRC government has postponed the cobalt export ban to October 15, 2025, and set the export quota for 2026-2027 at only 44% of annual production [1] - This export quota is anticipated to lead to a global cobalt supply that is substantially below normal levels from 2025 to 2027, which is likely to drive cobalt prices higher [1] Group 2: Market Reactions and Company Implications - Liqin Resources (02245) has seen its stock price increase by over 4%, with a cumulative rise of approximately 35% this week, reflecting positive market sentiment regarding cobalt price increases [1] - Citic Securities predicts that companies with cobalt refining operations in Indonesia and those owning mines in the DRC will benefit significantly from the anticipated rise in cobalt prices [1] - Minsheng Securities emphasizes the DRC government's strong stance on supporting cobalt prices, indicating a high probability of quota implementation and a clear upward shift in cobalt price levels [1]

Group 1 - The core point of the article highlights the transfer of shares of Liken Resources (02245) from Deutsche Bank to Huasheng Capital Securities, with a market value of HKD 543 million, representing 4.86% of the total shares [1] Group 2 - Minsheng Securities reports that Liken Resources is collaborating with partners to invest in nickel smelting production lines on Obi Island, Indonesia, with a planned wet nickel production capacity of 120,000 tons of nickel and 14,000 tons of cobalt, and an equity capacity of 69,000 tons of nickel and 8,200 tons of cobalt, expected to be fully operational by 2024 [1] - The pyrometallurgical project has a phase one capacity of 95,000 tons, which is set to commence production in 2023, while part of the phase two production lines is expected to be operational in the first half of 2025, with full production by 2026, increasing the company's total capacity to 280,000 tons and equity capacity to 155,000 tons, indicating significant production flexibility [1]

Group 1 - The core point of the article highlights the transfer of shares of Likin Resources (02245) from Deutsche Bank to Huasheng Capital Securities, with a market value of HKD 543 million, representing 4.86% of the total shares [1] - Minsheng Securities reports that Likin Resources is collaborating with partners to invest in nickel smelting production lines on Obi Island, Indonesia, with a planned wet process capacity of 120,000 tons of nickel and 14,000 tons of cobalt, with an equity capacity of 69,000 tons of nickel and 8,200 tons of cobalt, expected to be fully operational by 2024 [1] - The company has a pyrometallurgical project with a first phase capacity of 95,000 tons, which is set to commence production in 2023, while part of the second phase production lines is expected to be operational in the first half of 2025, with full production by 2026, increasing total capacity to 280,000 tons and equity capacity to 155,000 tons, indicating significant capacity flexibility [1]

Core Viewpoint - The recent performance of Likin Resources (02245) shows significant growth in both revenue and profit, driven by increased production and operational efficiency in its projects [1] Financial Performance - For the first half of 2025, Likin Resources reported revenue of approximately 18.1466 billion HKD, representing a year-on-year increase of 66.8% [1] - The profit attributable to the company's shareholders was around 1.426 billion HKD, which is a substantial increase of 143.0% compared to the previous year [1] - Earnings per share stood at 0.92 HKD [1] Production and Operational Efficiency - The growth in revenue and profit is primarily attributed to a significant increase in the production of hydrometallurgical products such as nickel hydroxide and pyrometallurgical products like nickel iron [1] - The increase in production is largely due to the full operational capacity of the ONC project and the production release from the KPS project [1] - The company has optimized its product structure, implemented refined cost control management, and made technological improvements to enhance production processes, further boosting profitability [1]

Core Viewpoint - The recent performance of Likin Resources (02245) shows significant growth in both revenue and profit, driven by increased production and operational efficiency in its projects [1] Financial Performance - For the first half of 2025, Likin Resources reported revenue of approximately 18.1466 billion HKD, representing a year-on-year increase of 66.8% [1] - The profit attributable to the company's shareholders was around 1.426 billion HKD, which is a 143.0% increase compared to the previous year [1] - Earnings per share stood at 0.92 HKD [1] Production and Operational Highlights - The growth in revenue and profit is primarily attributed to a significant increase in the production of hydrometallurgical products such as nickel hydroxide and pyrometallurgical products like nickel iron [1] - The increase in production is linked to the full operational capacity of the ONC project and the output release from the KPS project [1] - The company has optimized its product structure and implemented refined cost control management, along with technological improvements to enhance production processes and profitability [1]