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]

Employee Count - The total number of full-time employees as of December 31, 2022, is corrected to 6,694, down from the previously reported 7,556[1] - The decrease in full-time employees was due to the erroneous inclusion of the full-time staff from the company's joint ventures[1] - The board confirmed that the clarification does not affect any other information provided in the announcement[1]

Financial Performance - Revenue increased 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, representing a growth of 46.9% [2] - Gross profit rose from RMB 1,515.9 million in 2021 to RMB 4,493.8 million in 2022, with a gross margin of 24.6%, up 12.4 percentage points from 12.2% in 2021 [2] - Profit for the year reached RMB 3,028.1 million, a 140.3% increase from RMB 1,260.0 million in the previous year [2] - Profit attributable to owners of the company increased by 57.8% to RMB 1,735.2 million from RMB 1,099.5 million in 2021 [2] - The company's total revenue for the year ended December 31, 2022, was RMB 18,289,596 thousand, representing a 46.8% increase from RMB 12,449,318 thousand in 2021 [17] - Nickel product sales accounted for RMB 17,378,249 thousand, while equipment sales and other revenues were RMB 655,933 thousand and RMB 255,414 thousand, respectively [17] - Revenue from mainland China reached RMB 16,028,582 thousand, up from RMB 10,379,462 thousand in the previous year, indicating a growth of 54.5% [14] - The pre-tax profit for the year is RMB 3,184,970,000, compared to RMB 1,439,137,000 in the previous year, indicating a significant increase of approximately 121% [32] - Net profit increased from RMB 1,260.0 million to RMB 3,028.1 million, with net profit margin growing from 10.1% to 16.6% [74] Assets and Liabilities - Cash and cash equivalents as of December 31, 2022, amounted to RMB 4,426.2 million, a significant increase of 213.2% from RMB 1,413.3 million in 2021 [2] - Total assets less current liabilities stood at RMB 15,987.1 million, compared to RMB 8,785.2 million in the previous year [7] - Non-current assets increased to RMB 12,015.9 million from RMB 7,637.8 million in 2021 [5] - Current liabilities totaled RMB 4,853.3 million, up from RMB 3,496.2 million in the previous year [5] - The net asset value increased to RMB 12,027.8 million from RMB 5,173.7 million in 2021 [7] - The company's debt as of December 31, 2022, was RMB 6,291.4 million, up from RMB 4,762.5 million in 2021, reflecting a growth of 32.1% [82] - The debt-to-equity ratio decreased from 0.9 as of December 31, 2021, to 0.5 as of December 31, 2022, primarily due to a significant increase in equity from the IPO [82] Cash Flow and Investments - Net cash flow from operating activities for the year ended December 31, 2022, was RMB 1,999.3 million, up from RMB 811.3 million in 2021, reflecting a significant increase of 146.4% [77] - Net cash used in investing activities for the year ended December 31, 2022, was RMB 3,780.7 million, compared to RMB 643.3 million in 2021, indicating a substantial increase of 485.5% [78] - Net cash generated from financing activities for the year ended December 31, 2022, was RMB 4,583.6 million, a significant rise from RMB 997.2 million in 2021, representing an increase of 359.5% [79] - The total capital expenditure for the year ended December 31, 2022, was RMB 3,884.7 million, compared to RMB 661.6 million in 2021, marking an increase of 485.5% [81] Dividends and Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2022 [2] - The company declared a special dividend of RMB 466,779,405.00 on January 3, 2023, to shareholders listed on January 22, 2023 [85] - The board has resolved not to recommend the payment of a final dividend for the year ended December 31, 2022 [89] Operational Developments - The company successfully completed the first phase of its hydrometallurgical project in Indonesia, enhancing operational efficiency [49] - The first phase of the wet smelting project in Indonesia has achieved over 100% utilization, with the second phase's production line launched in January 2023 and reaching target output by February 2023 [51] - The company plans to expand upstream resource channels and seek quality nickel ore investment opportunities to ensure a stable supply of nickel resources [54] - The HPAL project has a total design capacity of 120,000 metal tons of nickel-cobalt compounds, with two production lines already operational, producing MHP [55] - The RKEF project plans 20 nickel-iron production lines with a total annual design capacity of 280,000 metal tons, with the first phase expected to launch in 2023 [56] Research and Development - The company plans to establish a research and development center domestically to enhance R&D capabilities and promote sustainable development across business segments [57] - Future R&D directions include comprehensive utilization of metal resources from laterite nickel ore and development of nickel-cobalt composite materials and lithium battery materials [58] Employee and Corporate Governance - The company has a total of 7,556 full-time employees as of December 31, 2022 [88] - The annual general meeting is expected to be held on June 15, 2023 [98] - The company will suspend share transfer registration from June 12, 2023, to June 15, 2023, to determine eligibility for attending the annual general meeting [99]