Core Viewpoint - Ningbo Lijin Resource Technology Co., Ltd. (referred to as "Lijin Resource") has announced a positive profit forecast for the first half of 2025, indicating a significant increase in net profit attributable to shareholders compared to the same period last year [1][2]. Group 1: Financial Performance - The net profit attributable to shareholders for the six months ending June 30, 2025, is expected to be between RMB 1.2 billion and RMB 1.5 billion, representing a year-on-year increase of approximately 104.4% to 155.5% [1]. - In the same period last year, the net profit attributable to shareholders was approximately RMB 587 million [1]. Group 2: Operational Highlights - The substantial growth in net profit is primarily attributed to the production release from the Wet ONC project and the Fire KPS project [1]. - The company has optimized its product structure, implemented refined cost control management, and made technological improvements to enhance profitability [1]. Group 3: Project Developments - Lijin Resource is jointly investing with Indonesian partners in the construction of wet and fire nickel ore smelting projects on Obi Island, Indonesia, utilizing leading industry technologies such as high-pressure acid leaching and RKEF smelting processes, with a combined annual design capacity of 400,000 tons of nickel metal [1]. - The HPAL project has a total design capacity of 120,000 tons of nickel metal and has achieved full production operation [1]. - The RKEF project has a total design capacity of 280,000 tons of nickel metal, with the company's equity project HJF achieving full production and an annual design capacity of 95,000 tons, while the controlling project KPS has partially commenced production with an annual design capacity of 185,000 tons, with full construction expected to be completed by 2026 [1]. Group 4: Industry Context - Despite the downward fluctuation in nickel prices in the first half of 2025, Lijin Resource has demonstrated strong performance, indicating its resilience during cyclical downturns [2]. - Companies like Lijin Resource, which can achieve steady growth during industry downturns, are likely to outperform the industry in subsequent performance [2].

Core Insights - ESG has evolved from a moral advocacy to a core competitive advantage and survival rule for companies in the context of global climate crisis and resource constraints [1] - Bloomberg projects that ESG investment will reach $40 trillion by 2030, emphasizing the need for companies to seek growth within the framework of environmental limits, social justice, and transparent governance, particularly in resource-intensive industries [1] Financial Performance - In 2024, the company achieved a revenue of 29.233 billion yuan, representing a year-on-year growth of 38.8%, and a net profit attributable to shareholders of 1.773 billion yuan, reflecting a year-on-year increase of 68.7% [3] - This growth underscores the synergy between environmental investment and economic benefits, showcasing a win-win model [3] ESG Practices - The company has implemented a waste heat recovery system at its acid plant since 2021, capturing heat generated during production to reduce reliance on fossil fuels and lower carbon emissions [5] - Through technological innovation, the company has transformed environmental investments into cost savings and tangible financial benefits, demonstrating the effectiveness of a circular economy approach [5] Resource Utilization - Nickel slag is repurposed into artificial coral reefs, turning waste into valuable materials for marine ecological engineering, showcasing the company's commitment to resource recycling [5] - The company initiated an artificial coral reef planting project in the OBI industrial park in 2021, utilizing nickel slag mixed with other materials [5] Social Responsibility - The company promotes social harmony by supporting education, cultural development, and sports, including donations to local educational institutions and sports initiatives [6] - In its international operations, the company emphasizes local social responsibility, contributing to infrastructure development such as schools and medical centers, enhancing local living conditions and employee satisfaction [6] Competitive Advantage - As carbon neutrality shifts from policy constraints to market mechanisms, ESG capabilities are becoming a new dividing line for corporate competitiveness [7] - The company's value lies in balancing economic and social benefits, providing a reference model for the industry in creating green productivity [7]

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].

Core Viewpoint - The global nickel market in 2024 continues to experience volatility, characterized by a "roller coaster" trend with prices peaking and then retreating due to oversupply and weak demand [1] Group 1: Supply and Demand Dynamics - The global nickel market is currently oversupplied, with an expected production of 3.52 million tons in 2024, a 4.7% increase year-on-year, primarily driven by Indonesia, which contributes three-quarters of the global supply [5] - Indonesia's export ban on nickel ore has led to a focus on building a high-value-added industry domestically, enhancing overall resource utilization efficiency [6] - The demand for nickel is expected to rise due to the long-term growth trend in the electric vehicle (EV) industry, with global EV sales projected to reach 18.236 million units in 2024, a 24.4% increase year-on-year [7] - The demand for nickel is also supported by robust stainless steel production in China, with crude stainless steel output expected to reach 39.4411 million tons in 2024, a 7.54% increase year-on-year [8] Group 2: Company Performance - Company "力勤资源" has achieved revenue of RMB 29.23 billion in 2024, a 38.8% year-on-year increase, and a net profit of RMB 1.77 billion, a 68.7% increase year-on-year, demonstrating resilience in a challenging market [4] - The company has established a competitive edge through advanced hydrometallurgical processes and a global resource layout, allowing it to thrive amid industry pressures [4] Group 3: Technological Innovations - The company is leveraging both hydrometallurgical (HPAL) and pyrometallurgical (RKEF) technologies to create a dual supply system that efficiently utilizes nickel resources [10] - The hydrometallurgical project on Obi Island has a planned capacity of 120,000 tons of nickel and 14,250 tons of cobalt, with the first two phases achieving production in record time [10][11] - The company has also implemented innovative technologies to improve energy efficiency and reduce costs in its pyrometallurgical processes, with a projected annual capacity of 280,000 tons of nickel iron by 2026 [12] Group 4: Environmental and Economic Synergy - The company is focusing on extracting valuable metals from hydrometallurgical tailings, which is expected to create new profit growth points while alleviating environmental pressures [13] - The dual approach of hydrometallurgical and pyrometallurgical processes allows the company to balance market risks and enhance overall resource utilization efficiency [12][14]

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]

"A系列"宽基指数今日回调，关注易方达中证A500ETF联接基金（A/C:022459/022460）等产品动向 截 至收盘，今日中证A500指数下跌1.8%，中证A100指数下跌1.4%，中证A50指数下跌1.2%。 ...

[Company Information](index=3&type=section&id=公司资料) [Chairman's Report](index=5&type=section&id=董事长报告书) Chairman Cai Jianyong reports significant H1 2024 achievements in project construction, capacity, and sales, driving double-digit revenue and profit growth despite nickel price volatility, while focusing on stable progress and transformation Key Financial Performance H1 2024 | Metric | Amount (RMB) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 10.878 billion | +17.2% | | Net Profit Attributable to Parent | 0.587 billion | +73.5% | Key Business Output H1 2024 | Business Segment | Output/Trade Volume | Notes | | :--- | :--- | :--- | | Nickel Ore Trade | Over 5 million tonnes | - | | RKEF Project (Pyrometallurgy) | Over 50 thousand metal tonnes of nickel | HJF Project Phase I output | | HPAL Project (Hydrometallurgy) | Approx. 39 thousand metal tonnes of nickel | - | - In H1 2024, global nickel resource prices fluctuated due to changes in supply-demand dynamics; prices initially rose due to Indonesian nickel ore quota approvals and New Caledonia's political situation, then fell as market sentiment cooled and macroeconomic data weakened, compressing producers' profit margins[21](index=21&type=chunk) - Looking ahead, the company believes that downstream demand will benefit from policy boosts such as equipment upgrades and consumer goods trade-ins, and is confident in continuously providing high-quality nickel products and services through its technological and cost control advantages[23](index=23&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=管理层讨论与分析) [Company's Main Business Overview](index=7&type=section&id=一、%20公司主营业务情况) The company operates across the entire nickel industry chain, from upstream resource integration to downstream applications, with a global industrial layout centered on its Obi Island park in Indonesia [Nickel Resource Procurement and Trade](index=7&type=section&id=1.1%20镍资源采购与贸易) Since 2009, the company has engaged in nickel ore and nickel pig iron trade, securing stable laterite nickel ore supply through long-term partnerships with leading miners in key sourcing regions - The company primarily sources laterite nickel ore from the world's richest laterite nickel ore resource countries and regions, including the Philippines, Indonesia, New Caledonia, and Turkey[26](index=26&type=chunk) - Established long-term stable cooperative relationships with leading Philippine nickel ore miners (e.g., Nickel Asia) to ensure stable supply of laterite nickel ore[26](index=26&type=chunk) [Smelting Production](index=8&type=section&id=1.2%20冶炼生产) The company utilizes both RKEF and HPAL smelting processes, operating a 18,000 metal tonnes nickel pig iron plant in Jiangsu, China, and co-investing in HPAL and RKEF projects on Obi Island, Indonesia, with products serving new energy vehicle and stainless steel markets Key Production Projects and Design Capacities | Project Location | Project Type | Annual Design Capacity | | :--- | :--- | :--- | | Jiangsu, China | RKEF Nickel Pig Iron Production | 18,000 metal tonnes of nickel pig iron | | Obi Island, Indonesia | HPAL Project (Hydrometallurgy) | 120,000 metal tonnes of nickel-cobalt compounds | | Obi Island, Indonesia | RKEF Project (Pyrometallurgy) | 280,000 metal tonnes of nickel pig iron | [Equipment Manufacturing and Sales](index=8&type=section&id=1.3%20设备制造与销售) Since 2018, the company's subsidiary Xi'an Pengyuan has provided critical equipment and technical support for its Obi and Jiangsu plants, enhancing production processes - Subsidiary Xi'an Pengyuan specializes in manufacturing and selling nickel product production equipment, providing key components for some Obi project production equipment and technical upgrade support for the Jiangsu plant[29](index=29&type=chunk) [Company's Core Competencies](index=9&type=section&id=二、%20公司的核心竞争力) The company's core competencies include a complete nickel industry ecosystem, cost and efficiency advantages from advanced smelting technologies, stable upstream resource supply, a high-quality customer base, and a commitment to ESG principles [Complete Industrial Ecosystem](index=9&type=section&id=2.1%20完整的产业生态系统) The company covers the entire nickel industry chain, ensuring precise procurement through global supply chains and specialized assaying, while its Obi Island industrial park integrates resources, production, and infrastructure for a circular economy - The company established an independent industrial park on Obi Island, Indonesia, where intermediate products (e.g., sulfuric acid, steam, coal gas) generated during production are recycled, maximizing resource utilization efficiency and embodying green production and circular economy principles[30](index=30&type=chunk) [Technological and Cost Advantages](index=10&type=section&id=2.2%20技术与成本优势) The company holds significant technological and cost advantages in both HPAL and RKEF smelting, achieving rapid HPAL ramp-up with low cash costs and applying innovative RKEF practices to reduce energy and production costs, while actively pursuing R&D partnerships - Hydrometallurgy: The HPAL project utilizes third-generation HPAL technology, making it one of the lowest cash cost nickel-cobalt compound production projects, achieving full capacity within **2 months** of commissioning[33](index=33&type=chunk) - Pyrometallurgy: Applied Jiangsu plant's technology and management experience to the Indonesian RKEF project, innovating and upgrading based on local raw material characteristics to reduce energy consumption and production costs[34](index=34&type=chunk) - Continuous R&D: Collaborating with institutions like China ENFI and Beijing University of Technology, HPAL project tailings treatment technology development is nearing completion, with plans to prepare for the construction of a demonstration plant[35](index=35&type=chunk) [Long-term Stable Core Upstream Resource Supply](index=11&type=section&id=2.3%20长期稳定的核心上游资源供应) The company ensures stable nickel ore supply through co-investment in Indonesian Obi projects and over ten years of long-term partnerships with leading miners in the Philippines - In Indonesia, partner-owned mining resources on Obi Island provide stable nickel ore raw material supply for the company's smelting projects[36](index=36&type=chunk) - In the Philippines, established over **ten years** of cooperative relationships with miners such as Nickel Asia and CTP Construction and Mining Corp[36](index=36&type=chunk) [Long-term Cooperative High-Quality Customer Base](index=12&type=section&id=2.4%20长期合作的优质客户群体) The company maintains long-term stable partnerships with major domestic and international manufacturers, serving as China's largest nickel ore trader for the stainless steel industry and securing long-term agreements with new energy vehicle precursor/cathode material enterprises - Stainless Steel Industry: As China's **largest** nickel ore trading company, established long-term and stable relationships with large and industry-leading companies for the supply of nickel ore and nickel pig iron[38](index=38&type=chunk) - New Energy Vehicle Industry: Signed long-term cooperation agreements with multiple precursor/cathode material enterprises, and leveraged trade advantages to sell some products to traders[38](index=38&type=chunk) [ESG Sustainable Development Philosophy](index=12&type=section&id=2.5%20ESG可持续发展理念) The company has established a comprehensive ESG framework, including a Board ESG Committee, integrating sustainable development across operations, participating in national R&D, and achieving multiple ISO certifications for its products and subsidiaries - The company has established a comprehensive ESG operating mechanism and formed a Board ESG Committee[39](index=39&type=chunk) - The company and its subsidiaries have obtained ISO14001 (Environmental Management), ISO45001 (Occupational Health and Safety), and ISO9001 (Product Quality Management) certifications[39](index=39&type=chunk) [Business Review](index=13&type=section&id=三、%20业务回顾) In H1 2024, the company achieved robust business growth with revenue up **17.2%** and net profit up **73.5%**, driven by full commissioning of HJF and increased HPAL output, offsetting price declines with volume gains, while Obi projects continue to advance [Market Environment](index=14&type=section&id=3.1%20市场环境) Downstream market demand improved in H1 2024, with China's stainless steel production and consumption growing by **5.9%**, and new energy vehicle production and sales increasing by **30.1%** and **32%** respectively - Stainless Steel Market: In H1 2024, China's stainless steel output was **18.8 million tonnes**, a year-on-year increase of **5.9%**; apparent consumption was **15.7 million tonnes**, a year-on-year increase of **5.9%**[43](index=43&type=chunk) - New Energy Vehicle Market: In H1 2024, China's new energy vehicle production and sales reached **4.929 million units** and **4.944 million units** respectively, with year-on-year increases of **30.1%** and **32%** respectively[44](index=44&type=chunk) [Nickel Resource Procurement and Trade Review](index=15&type=section&id=3.2%20镍资源采购与贸易回顾) As a leading nickel ore trader in China, the company achieved stable trade business growth by optimizing sales strategies and deepening customer relationships, with nickel ore trade volume exceeding **five million tonnes** - During the reporting period, the company's nickel ore trade volume exceeded **five million tonnes**, achieving steady business growth[47](index=47&type=chunk) [Nickel Product Smelting Production Review](index=16&type=section&id=3.3%20镍产品冶炼生产回顾) The company's Indonesian Obi projects show strong smelting production, with HPAL yielding approximately **39 thousand metal tonnes** of nickel and HJF over **50 thousand metal tonnes**, while HPL exceeds capacity, ONC reaches design capacity, and KPS construction progresses Key Project Progress H1 2024 | Project | Progress | | :--- | :--- | | **HPAL Project (Hydrometallurgy)** | Achieved output of approximately **39 thousand metal tonnes** of nickel. HPL project capacity utilization exceeded **100%**, and ONC project reached annual design capacity | | **RKEF Project (Pyrometallurgy)** | HJF project achieved output of over **50 thousand metal tonnes** of nickel. KPS project construction is progressing steadily, with core equipment arriving sequentially | [Financial Review](index=17&type=section&id=四、%20财务回顾) In H1 2024, total revenue grew **17.2%** to **RMB 10.878 billion**, gross profit increased **16.6%** to **RMB 1.827 billion**, and net profit attributable to parent surged **73.5%** to **RMB 0.587 billion**, driven by trade and associate profits, though the current ratio decreased from **1.1x** to **1.0x** [Revenue Analysis](index=17&type=section&id=4.1%20收入分析) Total revenue increased **17.2%** to **RMB 10.878 billion**, with trade revenue up **25.4%** to **RMB 6.117 billion** driven by nickel pig iron, and production revenue up **7.0%** to **RMB 4.356 billion** due to HPAL Phase III, partially offset by price declines Revenue by Business Segment (For the Six Months Ended June 30) | Business Segment | 2024 (RMB thousand) | Share (%) | 2023 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | **Nickel Product Trade** | **6,116,648** | **56.2** | **4,879,374** | **52.6** | | - Laterite Nickel Ore | 1,292,668 | 11.9 | 1,324,447 | 14.3 | | - Nickel Pig Iron | 4,823,980 | 44.3 | 3,231,814 | 34.8 | | - Nickel-Cobalt Compounds | – | – | 323,113 | 3.5 | | **Nickel Product Production** | **4,356,492** | **40.1** | **4,072,774** | **43.8** | | - Nickel Pig Iron | 572,553 | 5.3 | 866,620 | 9.3 | | - Nickel-Cobalt Compounds | 3,783,939 | 34.8 | 3,206,154 | 34.5 | | **Equipment Manufacturing and Sales** | **95,048** | **0.9** | **100,425** | **1.1** | | **Other** | **309,800** | **2.8** | **231,533** | **2.5** | | **Total** | **10,877,988** | **100.0** | **9,284,106** | **100.0** | [Gross Profit and Gross Margin Analysis](index=18&type=section&id=4.2%20毛利及毛利率分析) Overall gross profit increased **16.6%** to **RMB 1.827 billion**, with gross margin at **16.8%**; trade gross profit surged **58.1%** to **4.5%** margin, while production gross profit grew **10.0%** to **34.5%** margin, despite unit price declines - Trade business gross margin increased from **3.5%** to **4.5%**, primarily due to the full commissioning of the HJF project and increased procurement and sales of traded nickel pig iron[57](index=57&type=chunk) - Production business gross margin increased from **33.6%** to **34.5%**; however, the gross margin for self-produced nickel pig iron sharply decreased from **8.6%** to **0.8%** due to falling market prices and reduced sales volume[57](index=57&type=chunk) [Operating Expenses and Profit Analysis](index=19&type=section&id=4.3%20经营开支及利润分析) Selling expenses rose with sales, administrative expenses increased **9.1%**, and other operating expenses decreased **25.9%** due to lower exchange and futures losses, despite **RMB 142 million** intangible asset impairment; share of associate profit surged to **RMB 123.8 million**, leading to a **56.1%** increase in profit before tax to **RMB 993 million** - Other operating expenses decreased by **25.9%** to **RMB 243 million**, mainly due to reduced exchange losses and futures-related investment losses; however, an impairment of **RMB 142 million** for intangible assets (customer relationships) was recognized during the reporting period[61](index=61&type=chunk) - Share of profit from associates significantly increased from **RMB 10.1 million** to **RMB 123.8 million**, primarily due to a substantial increase in profit after the full commissioning of the RKEF Phase I project (HJF)[63](index=63&type=chunk) - Half-year profit increased by **46.6%** to **RMB 970 million**, with net margin improving from **7.1%** to **8.9%**[68](index=68&type=chunk) [Capital Structure and Risk](index=20&type=section&id=4.4%20资本结构与风险) As of June 30, 2024, current assets were **RMB 12.019 billion**, current ratio decreased from **1.1x** to **1.0x**, total debt increased to **RMB 14.241 billion** with gearing at **0.9**, and H1 capital expenditure was **RMB 3.290 billion**, with key risks being foreign exchange and nickel price volatility - Current ratio (current assets/current liabilities) decreased from **1.1x** at the end of 2023 to **1.0x** as of June 30, 2024[69](index=69&type=chunk) - As of June 30, 2024, total debt was **RMB 14.241 billion** (end of 2023: **RMB 11.532 billion**), and the capital gearing ratio (total interest-bearing bank borrowings/total equity) remained at **0.9**[72](index=72&type=chunk)[73](index=73&type=chunk) - Key risks include nickel metal price volatility risk and exchange rate fluctuation risk[81](index=81&type=chunk)[83](index=83&type=chunk) [Outlook](index=24&type=section&id=五、%20前景) The company's future strategy focuses on completing Obi Island projects, enhancing R&D in resource utilization and energy efficiency, expanding upstream resource channels, and building a replicable nickel resource ecosystem through infrastructure development and circular economy initiatives - Complete existing project construction: Systematically advance the construction of HPAL project's ONC and RKEF project's KPS, gradually achieving capacity release[84](index=84&type=chunk) - Enhance R&D capabilities: Identified key future R&D directions including comprehensive utilization of metal resources in laterite nickel ore, energy conservation and emission reduction, and intelligent control[85](index=85&type=chunk) - Expand upstream resource channels: Plans to continuously expand upstream resource channels and seek quality nickel ore investment opportunities to ensure stable resource supply[86](index=86&type=chunk) - Build an ecosystem: Advance Obi Island infrastructure construction (e.g., photovoltaic power generation, port, airport), deepen synergistic effects, and develop the capability to replicate and export the successful Obi project model to other regions[87](index=87&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=企业管治及其他资料) [Corporate Governance Practices](index=26&type=section&id=企业管治常规) During the reporting period, the Group generally complied with the Corporate Governance Code, except for the combined roles of Chairman and General Manager held by Mr. Cai Jianyong, which the Board deems beneficial given his experience and the balanced board composition - During the reporting period, the company complied with the corporate governance code, but the roles of Chairman and General Manager were held by the same person (Mr. Cai Jianyong), deviating from Code Provision C.2.1[89](index=89&type=chunk) [Shareholdings of Directors, Supervisors and Major Shareholders](index=28&type=section&id=董事、监事及主要股东持股) The report details shareholdings of directors, supervisors, chief executives, and major shareholders as of June 30, 2024, with Chairman Cai Jianyong holding approximately **61.42%** of shares, and key H-shareholders including Feng Yi (**16.94%**) and CICC International (**2.76%** long, **2.72%** short) Shareholdings of Selected Directors and Supervisors (As of June 30, 2024) | Name | Share Class | Number of Shares Held (Long Position) | Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Mr. Cai Jianyong | Unlisted Shares | 955,581,000 | 61.42% | | Ms. Fei Feng | Unlisted Shares/H-shares | 33,692,500 | 2.17% | | Mr. Cai Jianwei | Unlisted Shares | 10,406,000 | 0.67% | [Pre-IPO Share Incentive Scheme](index=33&type=section&id=首次公开发售前股份激励计划) The company adopted a Pre-IPO Share Incentive Scheme in October 2021, issuing **25,915,000** restricted domestic shares to eligible employees for talent retention, with shares to be released from lock-up over **four years** post-listing - The scheme was adopted on October 20, 2021, issuing **25,915,000** restricted domestic shares to eligible employees at a subscription price of **RMB 3.02** per share[109](index=109&type=chunk) - Granted restricted domestic shares will be released from lock-up over a **four-year** period, with **25%** released annually[116](index=116&type=chunk) [Use of Proceeds from Listing](index=36&type=section&id=上市所得款项用途) Net proceeds from global offering were approximately **HKD 3.6 billion**, with **HKD 3.255 billion (90.4%)** utilized by June 30, 2024, primarily for Obi Island projects and CBL capital injection, while **HKD 346 million** remains for potential Indonesian nickel ore investments by end of 2025 Use of Proceeds from Listing and Utilization (As of June 30, 2024) | Purpose | Net Proceeds Available (million HKD) | Net Proceeds Utilized (million HKD) | Unutilized Proceeds (million HKD) | Expected Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Obi Island Project Development and Construction | 2,030.7 | 2,030.7 | 0 | - | | Additional Capital Injection into CBL | 864.1 | 864.1 | 0 | - | | Potential Nickel Ore Resource Investment | 345.6 | 0 | 345.6 | By end of 2025 | | Working Capital and General Corporate Purposes | 360.0 | 360.0 | 0 | - | | **Total** | **3,600.4** | **3,254.8** | **345.6** | | [Unaudited Interim Condensed Consolidated Financial Statements](index=37&type=section&id=未经审核中期简明综合财务报表) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=37&type=section&id=综合损益及其他全面收益表) For the six months ended June 30, 2024, revenue reached **RMB 10.878 billion** (**+17.2%**), gross profit **RMB 1.827 billion** (**+16.6%**), profit for the period **RMB 970 million** (**+46.6%**), and net profit attributable to parent **RMB 587 million** (**+73.5%**), with basic EPS at **RMB 0.38** Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Item (RMB thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 10,877,988 | 9,284,106 | | Gross Profit | 1,827,444 | 1,567,404 | | Profit Before Tax | 993,315 | 636,215 | | Profit for the Period | 970,381 | 662,024 | | Profit Attributable to Owners of the Parent | 586,934 | 338,386 | | Basic Earnings Per Share (RMB) | 0.38 | 0.22 | [Consolidated Statement of Financial Position](index=38&type=section&id=综合财务状况表) As of June 30, 2024, total assets were **RMB 34.882 billion** (**+14.1%**), total liabilities **RMB 19.695 billion**, and total equity **RMB 15.188 billion**, with non-current assets increasing to **RMB 22.864 billion** and the current ratio decreasing from **1.1x** to **1.0x** Condensed Consolidated Statement of Financial Position (As of June 30) | Item (RMB thousand) | 2024 (Unaudited) | 2023 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 22,863,579 | 20,400,855 | | Total Current Assets | 12,018,823 | 10,278,853 | | **Total Assets** | **34,882,402** | **30,679,708** | | Total Current Liabilities | 11,857,546 | 9,285,573 | | Total Non-current Liabilities | 7,837,250 | 7,908,785 | | **Total Liabilities** | **19,694,796** | **17,194,358** | | **Net Assets** | **15,187,606** | **13,485,350** | | Equity Attributable to Owners of the Parent | 9,538,020 | 9,185,546 | [Consolidated Statement of Cash Flows](index=42&type=section&id=综合现金流量表) For the six months ended June 30, 2024, net cash outflow from operations was **RMB 102 million**, from investing activities **RMB 3.278 billion**, and net cash inflow from financing activities was **RMB 2.745 billion**, resulting in period-end cash and cash equivalents of **RMB 3.958 billion** Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Item (RMB thousand) | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash (Used in)/From Operating Activities | (102,247) | 104,044 | | Net Cash Used in Investing Activities | (3,277,729) | (3,862,853) | | Net Cash From Financing Activities | 2,745,237 | 4,851,384 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (634,739) | 1,092,575 | | Cash and Cash Equivalents at End of Period | 3,958,055 | 5,629,780 | [Notes to Financial Information](index=44&type=section&id=财务资料附注) The financial notes detail accounting policies, segment information, and related party transactions, highlighting Mainland China as the primary revenue source (**>85%**), Indonesia as the location for most non-current assets, and significant transactions and guarantees with associates and related parties [Note 3: Operating Segment Information](index=45&type=section&id=附注3：经营分部资料) Management views the Group as a single operating segment, with Mainland China contributing **86.0%** of external customer revenue, and **85.4%** of non-current assets located in Indonesia, while two major customers contributed **18.6%** and **11.0%** of total revenue External Customer Revenue by Geographical Location (For the Six Months Ended June 30) | Region | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 9,353,440 | 8,915,732 | | Indonesia | 600,103 | 284,098 | | Other | 924,445 | 84,276 | | **Total** | **10,877,988** | **9,284,106** | Non-current Assets by Geographical Location | Region | As of June 30, 2024 (RMB thousand) | As of December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 3,305,999 | 2,894,776 | | Indonesia | 19,404,935 | 17,357,815 | | **Total** | **22,710,934** | **20,252,591** | [Note 15: Related Party Transactions](index=56&type=section&id=附注15：关联方交易) During the period, the Group engaged in significant related party transactions, including **RMB 3.84 billion** in nickel product purchases from associate HJF, with **RMB 610 million** due from HJF and **RMB 890 million** due to related parties, and provided **RMB 3.543 billion** in guarantees for HJF's bank borrowings - During the reporting period, the Group purchased **RMB 3.84 billion** worth of nickel products from associate HJF and sold **RMB 364 million** worth of raw materials to it[172](index=172&type=chunk) - As of June 30, 2024, the company provided guarantees amounting to **RMB 3.543 billion** for certain bank borrowings of associate HJF[176](index=176&type=chunk) Summary of Outstanding Balances with Related Parties (As of June 30, 2024) | Item | Amount (RMB thousand) | | :--- | :--- | | Amounts Due from an Associate (HJF) | 610,031 | | Amounts Due to an Associate (HJF) | 281,942 | | Amounts Due to Related Parties (TBP, prepayment for non-controlling shareholder's capital injection) | 891,575 |

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]