Group 1 - The core viewpoint of the article is that Aide New Energy (02623) reported a significant reduction in net loss for the first half of 2025, despite a substantial decline in revenue [1] - The company's revenue for the period was 12.935 million yuan, representing a year-on-year decrease of 91.8% [1] - The net loss for the company was 3.564 million yuan, which is a year-on-year reduction of 78.2% [1] - The decrease in revenue was primarily attributed to severe fluctuations in mineral prices leading to a slowdown in trading activities, as well as a reduction in processing orders received in the first half of 2025 [1]

Group 1 - The core viewpoint of the article highlights that 爱德新能源 (02623) reported a significant decline in revenue for the first half of 2025, amounting to 12.935 million yuan, which represents a year-on-year decrease of 91.8% [1] - The company experienced a net loss of 3.564 million yuan, although this loss narrowed by 78.2% compared to the previous year [1] - The reduction in revenue is primarily attributed to severe fluctuations in mineral prices, which led to a slowdown in trading activities, as well as a decrease in processing orders received during the first half of 2025 [1]

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's H1 2025 revenue significantly decreased, but total comprehensive loss attributable to owners of the Company narrowed to RMB 1.8 million | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12.9 | 157.3 | -91.8% | | Total comprehensive loss attributable to owners of the Company | 1.8 | 12.8 | -85.9% | - The Group's H1 2025 revenue significantly decreased by **91.8%** to **RMB 12.9 million**, but total comprehensive loss attributable to owners of the Company decreased by **85.9%** year-on-year to **RMB 1.8 million**[3](index=3&type=chunk) [Unaudited Interim Results Announcement](index=1&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) This announcement presents the unaudited interim consolidated results for the six months ended June 30, 2025, reviewed by the Audit Committee - This announcement presents the unaudited interim consolidated results for the six months ended June 30, 2025, which have been reviewed by the Company's Audit Committee[4](index=4&type=chunk) [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B8%BD%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) Despite significantly lower revenue, the Group's H1 2025 operating performance turned profitable, substantially narrowing net loss and total comprehensive loss | Metric (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 12,935 | 157,288 | -91.8% | | Cost of sales | (9,280) | (145,104) | -93.6% | | Gross Profit | 3,655 | 12,184 | -69.9% | | Other income | 532 | 17 | +3029.4% | | Net other gains or losses | 27,190 | 7,533 | +261.0% | | Operating profit/(loss) | 1,675 | (12,610) | Turnaround to profit | | Net loss for the period | (3,564) | (16,353) | -78.2% | | Total comprehensive loss for the period | (1,805) | (12,842) | -85.9% | - Despite a significant decrease in revenue, the Group's operating performance turned from loss to profit, and net loss for the period and total comprehensive loss for the period significantly narrowed due to a substantial increase in other gains, particularly the reversal of excess provision for accrued expenses[5](index=5&type=chunk)[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets slightly increased, driven by rising non-current assets and ongoing investment in mine development | Metric (RMB thousand) | June 30, 2025 (Unaudited) | Dec 31, 2024 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,034,999 | 1,015,981 | +1.9% | | Non-current Assets | 674,890 | 592,692 | +13.9% | | Current Assets | 360,109 | 423,289 | -14.9% | | Total Equity | 544,038 | 545,843 | -0.3% | | Total Liabilities | 490,961 | 470,138 | +4.4% | | Trade and Bills Receivables | 4,860 | 22,671 | -78.6% | | Prepayments and Other Receivables | 278,705 | 306,441 | -9.0% | | Cash and Cash Equivalents | 69,912 | 80,001 | -12.6% | | Amounts due to controlling shareholder and ultimate holding company | 374,303 | 267,127 | +40.1% | - The increase in non-current assets primarily reflects the Group's continuous investment in mine development, particularly in property, plant and equipment and right-of-use assets[8](index=8&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Information](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) These notes provide detailed explanations of the Group's business, accounting policies, and changes in financial metrics - The notes provide detailed explanations of the Group's business nature, accounting treatments, and the composition and reasons for changes in various financial metrics[10](index=10&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [1. General Information](index=6&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Aide New Energy, incorporated in the Cayman Islands, primarily processes iron ore and sells minerals in China, listed on HKEX in 2012 - The Company's principal business involves iron ore processing and sales of iron concentrate and other minerals in China[10](index=10&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong on April 27, 2012[10](index=10&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This interim financial information is prepared in accordance with HKAS 34 and applicable Listing Rules, and should be read in conjunction with the 2024 annual financial statements - The financial information is prepared in accordance with the Listing Rules and Hong Kong Accounting Standard 34[12](index=12&type=chunk) [3. Accounting Policies](index=6&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim financial information is prepared on a historical cost basis, with new HKFRS amendments applied for the first time, which had no significant impact - The revised Hong Kong Financial Reporting Standard 21 "Lack of Exchangeability" was applied for the first time, but it did not have a significant financial impact[13](index=13&type=chunk) [4. Estimates](index=7&type=section&id=4.%20%E4%BC%B0%E8%A8%88) Management's judgments, estimates, and assumptions used in preparing this interim financial information are consistent with those applied in the 2024 annual consolidated financial statements - Significant judgments and estimates made by management in preparing the financial information are consistent with those of the previous year[15](index=15&type=chunk) [5. Segment Information](index=7&type=section&id=5.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates in two segments: Mining and Ore Processing, and Mineral Products Trading, with the former contributing most of H1 2025 gross and net profit - The Group's business is divided into two major segments: "Mining and Ore Processing" and "Mineral Products Trading"[18](index=18&type=chunk) | Metric (RMB thousand) | Mining and Ore Processing (H1 2025) | Mineral Products Trading (H1 2025) | | :--- | :--- | :--- | | Revenue | 8,713 | 4,222 | | Gross Profit | 3,652 | 3 | | Net Profit/(Loss) | 2,334 | 74 | - In H1 2025, the Mining and Ore Processing segment contributed the majority of gross profit and net profit, while the Mineral Products Trading segment had extremely low gross profit[19](index=19&type=chunk) [6. Revenue](index=9&type=section&id=6.%20%E6%94%B6%E5%85%A5) H1 2025 total revenue significantly decreased by 91.8% to RMB 12.9 million, with processing service income now comprising 67.4% of total revenue | Revenue Source (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trading - Sales of Crude Iron Powder | 3,404 | 27,327 | -87.5% | | Trading - Sales of Blended Coal | 818 | 119,125 | -99.3% | | Processing Service Income | 8,713 | 10,836 | -19.6% | | **Total Revenue** | **12,935** | **157,288** | **-91.8%** | - In H1 2025, processing service income accounted for **67.4%** of total revenue, while trading activity income decreased to **32.6%**, a stark contrast to the **93.1%** share of trading income in the prior year period[20](index=20&type=chunk) [7. Other Income](index=9&type=section&id=7.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income significantly increased to RMB 532 thousand in H1 2025, primarily due to higher government grants | Other Income Source (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Government Grants | 508 | 11 | +4518.2% | | Others | 24 | 6 | +300.0% | | **Total** | **532** | **17** | **+3029.4%** | - The increase in government grants was the primary reason for the substantial growth in other income during this period[20](index=20&type=chunk) [8. Net Other Gains or Losses](index=10&type=section&id=8.%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%88%96%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) Net other gains significantly increased to RMB 27.2 million in H1 2025, mainly from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine | Gain Source (RMB thousand) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Reversal of excess provision for accrued expenses of Yangzhuang Iron Mine | 27,424 | – | | Gain on disposal of exploration rights | – | 7,547 | | Loss on disposal of property, plant and equipment | (234) | (14) | | **Total** | **27,190** | **7,533** | - In H1 2025, the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine of **RMB 27,424 thousand** was the main driver for the significant increase in net other gains[22](index=22&type=chunk) [9. Net Finance Costs](index=11&type=section&id=9.%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC%E6%B7%A8%E9%A1%8D) Net finance costs decreased to RMB 1.8 million in H1 2025, primarily due to reduced interest expense on borrowings and reversal of discount on mining rights payables | Finance Cost Item (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest expense on borrowings | – | (701) | -100% | | Amounts payable for mining rights: reversal of discount | (2,003) | (2,750) | -27.2% | | Interest income from bank deposits | 237 | 584 | -59.5% | | **Net Finance Costs** | **(1,785)** | **(3,353)** | **-46.8%** | - Interest expense on borrowings decreased to **zero** in this period, which is a significant reason for the substantial reduction in net finance costs[23](index=23&type=chunk) [10. Income Tax Expense](index=11&type=section&id=10.%20%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) Income tax expense increased to RMB 3.5 million in H1 2025, mainly due to China enterprise income tax calculated at a 25% rate | Tax Type (RMB thousand) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Current tax - Enterprise Income Tax | (3,545) | (1,751) | +102.5% | - China enterprise income tax is provided at a rate of **25%** on the assessable profits of the Group's subsidiaries in China, except for those incurring losses[24](index=24&type=chunk) [11. Loss Per Share](index=12&type=section&id=11.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) H1 2025 basic loss per share significantly narrowed to RMB 1.02 cents from RMB 4.68 cents, primarily due to reduced loss attributable to owners of the Company | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB thousand) | (3,564) | (16,353) | -78.2% | | Weighted average number of ordinary shares in issue | 349,785,528 | 349,785,528 | No change | | Basic loss per share (RMB cents) | (1.02) | (4.68) | -78.2% | - There were no dilutive instruments during the period, so diluted loss per share is not presented[27](index=27&type=chunk) [12. Dividends](index=12&type=section&id=12.%20%E8%82%A1%E6%81%AF) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board resolved not to declare an interim dividend for H1 2025[28](index=28&type=chunk) [13. Trade and Bills Receivables](index=12&type=section&id=13.%20%E6%87%89%E6%94%B6%E8%B3%B4%E6%AC%BE%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, net trade and bills receivables significantly decreased by 78.6% to RMB 4.9 million, mainly due to reduced short-term receivables | Ageing (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 3 months | 3,609 | 22,923 | -84.3% | | Over 1 year | 3,051 | 3,051 | No change | | **Net Trade Receivables** | **3,560** | **22,671** | **-84.3%** | | **Bills Receivables** | **1,300** | **–** | **New** | | **Total** | **4,860** | **22,671** | **-78.6%** | [14. Prepayments and Other Receivables](index=13&type=section&id=14.%20%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) Total prepayments and other receivables decreased to RMB 278.7 million as of June 30, 2025, primarily due to reduced consideration receivable from disposal | Item (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Consideration receivable from disposal | 238,284 | 259,484 | -8.2% | | Trade deposits paid to suppliers | 3,405 | 8,496 | -59.9% | | Deductible input VAT | 19,383 | 12,622 | +53.6% | | Compensation receivable | 15,000 | 15,000 | No change | | **Total** | **278,705** | **306,441** | **-9.0%** | - Consideration receivable from disposal decreased by **RMB 20,000 thousand** and related taxes of **RMB 1,200 thousand**, which were deducted from the consideration receivable after the new mining permit was issued to the buyer[30](index=30&type=chunk) - Compensation receivable of **RMB 15,000 thousand** relates to a settlement agreement with a highway operator, with no significant risk of default[31](index=31&type=chunk) [15. Trade Payables](index=14&type=section&id=15.%20%E6%87%89%E4%BB%98%E8%B3%B4%E6%AC%BE) Total trade payables decreased by 42.2% to RMB 12.1 million as of June 30, 2025, mainly due to reductions in short-term and long-term payables | Ageing (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 6 months | 7,285 | 11,151 | -34.6% | | Over 1 year | 2,291 | 5,825 | -60.6% | | **Total** | **12,088** | **20,895** | **-42.2%** | [16. Capital Commitments](index=14&type=section&id=16.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E8%AB%BE) As of June 30, 2025, the Group had no significant capital commitments, with the Zhuge Shangyu Titanium Iron Mine project having paid RMB 507.5 million in total costs | Item (RMB thousand) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Capital commitments for property, plant and equipment | – | 9,400 | -100% | - The Zhuge Shangyu Titanium Iron Mine new processing and production line project has paid total costs of approximately **RMB 507,473 thousand**, with the total project cost adjusted down to **RMB 440,000 thousand**[34](index=34&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) The Group's revenue significantly decreased by 91.8%, but total comprehensive loss narrowed by 85.9% due to a reversal of accrued expenses - The Group actively responds to government calls, identifying wind, solar, and concentrated solar power as new economic growth points, and deepening the full industrial chain of titanium metal products like sponge titanium and high-purity titanium[36](index=36&type=chunk) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's core business is iron and titanium iron ore in Shandong, China; H1 2025 revenue significantly decreased, but comprehensive loss narrowed - The Group's principal business involves iron ore and titanium iron ore exploration, mining, and processing, as well as mineral trading in Shandong Province, China[36](index=36&type=chunk) - Revenue significantly decreased by **91.8%** to **RMB 12.9 million**, primarily affected by mineral price fluctuations and reduced processing orders[36](index=36&type=chunk) - Total comprehensive loss decreased by **85.9%** to **RMB 1.8 million**, mainly benefiting from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine of **RMB 27.4 million**[37](index=37&type=chunk) [Summary of Work in the First Half of 2025](index=16&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%B7%A5%E4%BD%9C%E7%B8%BD%E7%B5%90) The Group advanced Brazilian crude powder processing, achieved RMB 6.171 million in coal trade revenue, and progressed Zhuge Shangyu mine construction and environmental initiatives - In H1, Brazilian crude powder toll processing volume reached **103 thousand tonnes**[38](index=38&type=chunk) - Coal and coal product trading achieved sales revenue of **RMB 6.171 million**[38](index=38&type=chunk) - The Zhuge Shangyu mine and beneficiation plant new project, with an investment of approximately **RMB 1.5 billion**, has largely completed civil works and steel structure installation, with future development towards unmanned and intelligent operations[38](index=38&type=chunk) - The Zhuge Shangyu 800,000 tonnes/year mining right has been processed, meeting legal conditions for the infrastructure construction period; the 10 million tonnes/year iron-titanium ore expansion project obtained an exploration permit[39](index=39&type=chunk) - Shandong Shengtai Mining Technology Co., Ltd. was recognized as a provincial "Innovative Small and Medium-sized Enterprise" and "Technological Innovation Enterprise," and the Zhuge Shangyu 10 million tonnes/year beneficiation project was designated a "Shandong Province Green Low-Carbon High-Quality Development Key Project"[39](index=39&type=chunk) [Shareholder Loans](index=18&type=section&id=%E8%82%A1%E6%9D%B1%E8%B2%B8%E6%AC%BE) Controlling shareholder and ultimate holding company advanced approximately RMB 107.2 million to the Group as interest-free, unsecured, non-fixed repayment term loans - Controlling shareholder Mr. Li Yunde and ultimate holding company Hongfa further advanced a total of approximately **RMB 107.176 million** to the Group[40](index=40&type=chunk) - These advances are interest-free, unsecured, and have no fixed repayment terms[40](index=40&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the Group's H1 2025 financial performance, including product prices, revenue, costs, and explains the significant narrowing of total comprehensive loss - The Group's revenue significantly decreased by **91.8%**, primarily due to slower trading activities and reduced processing orders[41](index=41&type=chunk) - Total comprehensive loss decreased by **85.9%**, mainly benefiting from the reversal of excess provision for accrued expenses of Yangzhuang Iron Mine[51](index=51&type=chunk) [Prices of the Group's Products](index=18&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%94%A2%E5%93%81%E7%9A%84%E5%83%B9%E6%A0%BC) In H1 2025, the Group did not produce iron concentrate, while average selling prices for crude iron powder and blended coal increased by 12.9% and 8.7% - No iron concentrate was produced or sold in H1 2025[42](index=42&type=chunk) | Traded Goods | H1 2025 Average Selling Price (RMB/tonne) | H1 2024 Average Selling Price (RMB/tonne) | Change (%) | | :--- | :--- | :--- | :--- | | Crude Iron Powder | 858.5 | 760.2 | +12.9% | | Blended Coal | 312.2 | 287.2 | +8.7% | [Revenue](index=19&type=section&id=%E6%94%B6%E5%85%A5) Total revenue for H1 2025 was RMB 12,935 thousand, a 91.8% year-on-year decrease, with processing service income significantly increasing its share to 67.4% | Revenue Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Trading Activities Sales - Crude Iron Powder | 3,404 | 26.3% | 27,327 | 17.4% | | Trading Activities Sales - Blended Coal | 818 | 6.3% | 119,125 | 75.7% | | Processing Services | 8,713 | 67.4% | 10,836 | 6.9% | | **Total Revenue** | **12,935** | **100.0%** | **157,288** | **100.0%** | | Trading Volume (thousand tonnes) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Crude Iron Powder | 4.0 | 35.9 | -88.9% | | Blended Coal | 2.6 | 414.8 | -99.4% | | **Total Volume** | **6.6** | **450.7** | **-98.5%** | [Cost of Sales](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) H1 2025 total cost of sales significantly decreased by 93.6% to RMB 9.3 million, consistent with revenue decline, due to reduced trading volume and processing services | Cost of Sales Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of sales for trading activities | 4,219 | 45.5% | 136,852 | 94.3% | | Cost of sales for processing services | 5,061 | 54.5% | 8,252 | 5.7% | | **Total Cost of Sales** | **9,280** | **100.0%** | **145,104** | **100.0%** | - Total cost of sales decreased by **93.6%** to **RMB 9.3 million**, primarily due to a reduction in mineral trading volume of approximately **444.1 thousand tonnes** and decreased processing services[46](index=46&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) H1 2025 gross profit decreased by 69.9% to RMB 3.7 million, but overall gross profit margin increased to 28.3% due to higher-margin processing service income | Gross Profit Source | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Gross profit from trading activities | 3 | 0.1% | 9,600 | 78.8% | | Gross profit from processing services | 3,652 | 99.9% | 2,584 | 21.2% | | **Total Gross Profit** | **3,655** | **100.0%** | **12,184** | **100.0%** | | Gross Profit Margin | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross profit margin from trading activities - Crude Iron Powder | 0.0% | 0.2% | | Gross profit margin from trading activities - Blended Coal | 0.2% | 8.0% | | Gross profit margin from processing services | 41.9% | 23.8% | | **Overall Gross Profit Margin** | **28.3%** | **7.7%** | - The improvement in overall gross profit margin is primarily attributable to the increased proportion of processing service income, which has a higher profit margin than trading activities[48](index=48&type=chunk) [Distribution Costs and Administrative Expenses](index=22&type=section&id=%E5%88%86%E9%8A%B7%E6%88%90%E6%9C%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Distribution and administrative expenses decreased by 5.7% to RMB 29.8 million, mainly due to reduced distribution costs from the sharp decline in trading activities - Total distribution costs and administrative expenses decreased by **5.7%** to **RMB 29.8 million**[49](index=49&type=chunk) - Distribution costs decreased by **RMB 3.1 million**, primarily due to a sharp reduction in trading activities[49](index=49&type=chunk) [Net Finance Costs](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC%E6%B7%A8%E9%A1%8D) Net finance costs decreased, primarily due to the absence of interest expense on borrowings in the current period, as all borrowings were fully repaid in 2024 - Net finance costs decreased, mainly because there were **no interest expenses on borrowings** in the current period, as all borrowings were fully repaid in 2024[50](index=50&type=chunk) [Total Comprehensive Income](index=22&type=section&id=%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E7%B8%BD%E9%A1%8D) H1 2025 total comprehensive loss attributable to owners of the Company significantly decreased by 85.9% to RMB 1.8 million, primarily due to a RMB 27.4 million reversal of accrued expenses - Total comprehensive loss attributable to owners of the Company decreased by **85.9%** to **RMB 1.8 million**[51](index=51&type=chunk) - The reduction in loss was mainly attributable to the **RMB 27.4 million** reversal of excess provision for accrued expenses of Yangzhuang Iron Mine[51](index=51&type=chunk) [Work Plan for the Second Half of 2025](index=23&type=section&id=2025%E5%B9%B4%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%B7%A5%E4%BD%9C%E8%A8%88%E5%8A%83) The Group plans to enhance mining, expand the titanium industry chain, advance Zhuge Shangyu low-carbon project, increase coal trade, and promote the 10 million tonnes/year iron-titanium ore expansion - The plan for H2 includes increasing coal and coal product trading volume to boost sales and profitability[52](index=52&type=chunk) - The Zhuge Shangyu mine is preparing to enter the infrastructure construction and mining phase, with plans to complete equipment installation and joint commissioning, and promote integrated industry-university-research development[52](index=52&type=chunk) - Focus will be placed on low-carbon, environmentally friendly, and sustainable new energy projects, with plans to adjust the industrial structure[52](index=52&type=chunk) - The Zhuge Shangyu 10 million tonnes/year iron-titanium ore expansion project will advance work such as defining the mining area boundaries and reviewing the development and utilization plan[52](index=52&type=chunk) [Other Information](index=24&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) Ongoing capital expenditures for Zhuge Shangyu Titanium Iron Mine development impacted liquidity, increasing the gearing ratio and decreasing the current ratio - The Group's ongoing capital expenditures for the Zhuge Shangyu Titanium Iron Mine development have led to a decrease in the current ratio[54](index=54&type=chunk) - The Group has **126 employees** and implements a share award scheme to recognize and incentivize talent[57](index=57&type=chunk)[61](index=61&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, total borrowings increased to RMB 374.3 million, cash was RMB 72.4 million, gearing ratio rose to 40.8%, and current ratio decreased to 0.87 times | Metric (RMB million) | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Borrowings | 374.3 | 267.1 | +40.1% | | Cash and Bank Balances | 72.4 | 80.0 | -9.5% | | Financial Ratios | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 40.8% | 32.9% | +7.9% | | Current Ratio | 0.87 times | 1.07 times | -0.20 times | - The decrease in the current ratio is primarily attributable to continuous capital expenditures for the development of the Zhuge Shangyu Titanium Iron Mine, funded by advances from the controlling shareholder[54](index=54&type=chunk) [Material Investments](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group held no material investments - The Group held no material investments at the end of the reporting period[55](index=55&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=24&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - No material acquisition or disposal activities occurred during the reporting period[56](index=56&type=chunk) [Employees and Remuneration Policies](index=24&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 126 employees, with RMB 7.4 million in benefit expenses, offering pension plans, MPF, and a restricted share award scheme | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 126 | 119 | +7 | | Employee Benefit Expenses (RMB million) | 7.4 | 6.8 (H1 2024) | +8.8% | - The Group provides retirement benefits for employees and has adopted a restricted share award scheme[57](index=57&type=chunk) [Pledged Assets](index=25&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged RMB 2,500 thousand in time deposits as security for contractors - The Group has pledged **RMB 2,500 thousand** in time deposits to provide guarantees to contractors[58](index=58&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group's revenues, expenses, and monetary assets/liabilities are primarily denominated in RMB and HKD, with no current foreign exchange hedging policy - The Group primarily conducts transactions in RMB and HKD and currently has no foreign exchange hedging policy[59](index=59&type=chunk) [Contingent Liabilities](index=25&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - The Group had no material contingent liabilities at the end of the reporting period[60](index=60&type=chunk) [Share Award Scheme](index=25&type=section&id=%E8%82%A1%E4%BB%BD%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) The Group's 2020 restricted share award scheme incentivizes employees; as of June 30, 2025, the trustee held 501,000 restricted shares, with no new grants this period - The Group has a share award scheme aimed at recognizing and incentivizing employees[61](index=61&type=chunk) - As of June 30, 2025, the trustee held **501,000 restricted shares**, but no restricted shares were granted to employees during the period[61](index=61&type=chunk) - The maximum number of restricted shares available for grant under the scheme is **35,028,652 shares**[61](index=61&type=chunk) [Events After the Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No material events occurred after the reporting period up to the date of this announcement - No material events occurred after the end of the reporting period up to the date of this announcement[62](index=62&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=26&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities - The Company did not purchase, sell, or redeem any listed securities during the reporting period[63](index=63&type=chunk) [Standard Code for Securities Transactions by Directors](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted and confirmed compliance with the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules - The Company's directors have complied with the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules[64](index=64&type=chunk) [Corporate Governance Practices](index=26&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company has adopted and believes it has complied with all relevant code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - The Company has complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[65](index=65&type=chunk) [Audit Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising four independent non-executive directors, has reviewed and approved this interim consolidated results, confirming its compliance with applicable standards and regulations - The Audit Committee, composed of four independent non-executive directors, has reviewed and approved these interim results[66](index=66&type=chunk) [Board of Directors](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board of Directors consists of Mr. Li Yunde as Chairman, Mr. Geng Guohua as CEO, Mr. Lang Weiguo as Executive Director, and four independent non-executive directors - The Board of Directors includes three executive directors and four independent non-executive directors[66](index=66&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不會就本公告全部 或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 主席 李運德 香港，二零二五年八月十九日 於本公告日期，董事會包括三名執行董事，即李運德先生（主席）、耿國華先生 （行政總裁）及郎偉國先生；以及四名獨立非執行董事，即梁雅達先生、張涇生 先生、李曉陽先生及鄭淑德女士。 董事會會議通告 愛德新能源投資控股集團有限公司（「本公司」）董事（「董事」）會（「董事會」） 謹此宣佈，將於二零二五年八月二十九日（星期五）舉行董事會會議，以考慮及 批准（其中包括）本公司及其附屬公司截至二零二五年六月三十日止六個月之未 經審核中期業績及宣派中期股息（如有）。 承董事會命 愛德新能源投資控股集團有限公司 Add New Energy Investment Holdings Group Limited 愛 德 新 能 源 投 資 控 股 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：02623） ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02623 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 750,000,000 | HKD | | 0.04 | HKD | | 30,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 750,000,000 | HKD | | 0.04 | HKD | | 30,000,000 | 本月底法定/註冊股本總額： HKD 30,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 致：香港交易及結算所有限公 ...

Group 1 - The stock price of Aide New Energy (02623.HK) closed at HKD 0.420 on June 3, remaining flat compared to the previous trading day, with an intraday low of HKD 0.390, marking a new low for the past year [1] - On the same day, the net capital flow showed an inflow of HKD 14,310 and an outflow of HKD 20,230, resulting in a net outflow of HKD 5,920 [1] Group 2 - Aide New Energy Investment Holdings Group Limited was listed on the Hong Kong Stock Exchange on April 27, 2012, under the stock code 2623.HK [2] - The company is headquartered in the Hong Kong Special Administrative Region and operates as an investment holding group [2] - Its main business includes the exploration and production of titanium ore, iron ore, and the construction and operation of clean energy projects such as solar thermal systems and wind power plants [2] - The company has four major subsidiaries, including Shandong Xingsheng Mining Co., Ltd. and Linyi Luxing Titanium Industry Co., Ltd., which focus on the exploration and production of iron and titanium ores [2] - Aide New Energy places a strong emphasis on environmental protection and has received several accolades, including being recognized as a national-level green mine pilot unit [2]

Financial Performance - The company's total revenue for the year ended December 31, 2024, was approximately RMB 54.0 million, an increase of about RMB 5.7 million compared to RMB 48.3 million for the year ended December 31, 2023[9]. - The operating revenue decreased by RMB 981.6 million, a decline of approximately 77.7% from about RMB 1,263.7 million in 2023[10]. - The company reported a significant revenue decrease of approximately RMB 981.6 million, or about 77.7%, from approximately RMB 1,263.7 million for the year ended December 31, 2023, to approximately RMB 282.1 million for the year ended December 31, 2024[29]. - The total comprehensive income for the year ended December 31, 2024, was approximately RMB 54.0 million, an increase of about RMB 5.7 million compared to approximately RMB 48.3 million for the year ended December 31, 2023[30]. - The company recorded revenue of approximately RMB 282.1 million for the year ended December 31, 2024, a decrease of approximately RMB 981.6 million compared to RMB 1,263.7 million for the year ended December 31, 2023[54]. - Trade goods sales accounted for approximately 86.5% of total sales in 2024, while processing service revenue represented about 13.5% of total sales[54]. - The total sales volume from trade activities decreased from 2,672.8 thousand tons in 2023 to 673.0 thousand tons in 2024, a reduction of approximately 75.2%[61]. - Gross profit fell from approximately RMB 141.5 million in 2023 to approximately RMB 15.7 million in 2024, a decrease of about RMB 125.8 million[68]. - The overall gross margin decreased from approximately 11.2% in 2023 to approximately 5.6% in 2024, primarily due to significant price fluctuations and a reduction in higher-margin iron ore production[69]. Asset Management - The company confirmed a gain from the sale of assets amounting to approximately RMB 115.8 million following the completion of the asset transfer agreement[9]. - The company aims to improve its financial position through the sale of certain assets, including mining rights, valued at approximately RMB 314.5 million, minus outstanding liabilities[27]. - The group completed a significant asset transfer agreement on May 21, 2024, for the sale of mining rights and related assets for a total consideration of approximately RMB 314.5 million[77]. Operational Developments - The company is actively responding to government initiatives by expanding into clean energy sectors, including wind, solar, and thermal energy[7]. - The company plans to maintain its iron and titanium concentrate business while developing a complete industrial chain for titanium metal products[7]. - The company is committed to low-carbon and environmentally sustainable projects, adjusting its industrial structure to enhance investor interests[15]. - The company continues to invest in the full titanium industry chain, including the development of sponge titanium and high-purity titanium products[29]. - The company plans to process approximately 1.5 million tons of external rough powder in 2025, focusing on Australian processing agreements[18]. - The construction of the Zhuge Shangyu intelligent mining and processing plant is progressing, with an investment of approximately RMB 500 million planned for 2025[21]. - The total stripping scale for the Zhuge Shangyu mining project is set to reach 3 million tons per year, with construction expected to begin in April 2025[21]. Research and Development - The company continues to strengthen its research and development capabilities, having received multiple certifications for high-tech enterprises and innovation centers[16]. - The company is focusing on the development of new technologies and materials, ensuring timely communication with investors regarding market changes[25]. - The company is actively pursuing partnerships with top universities and research institutions to enhance its technological capabilities and innovation[39]. Governance and Compliance - The board held four regular meetings in the fiscal year ending December 31, 2024, with all directors present at each meeting[90]. - Independent non-executive directors confirmed their independence according to Listing Rule 3.13, ensuring effective governance[99]. - The company conducted two shareholder meetings during the fiscal year, including the annual general meeting on June 6, 2024, and a special meeting on August 16, 2024[94]. - The board has a mechanism in place for obtaining independent opinions to enhance governance practices[93]. - The company is committed to ensuring that board composition meets regulatory requirements and maintains a balance of executive and non-executive directors[93]. - The board consists of six male members and one female director as of the end of the fiscal year on December 31, 2024[105]. - The company has established a formal and transparent process for the selection and reappointment of directors[102]. - The audit committee is responsible for overseeing the financial reporting system and ensuring compliance with accounting standards and regulations[114]. - The company has adopted a set of insider information policies and procedures to ensure the accuracy and timeliness of public disclosures[151]. Financial Position - As of December 31, 2024, the total borrowings of the group amounted to approximately RMB 267.1 million, compared to approximately RMB 118.0 million as of December 31, 2023[73]. - The group's cash and bank balances as of December 31, 2024, were approximately RMB 80.0 million, down from approximately RMB 146.1 million as of December 31, 2023[73]. - The asset-liability ratio as of December 31, 2024, was approximately 32.9%, up from approximately 19.3% as of December 31, 2023, mainly due to advances from the controlling shareholder[74]. - The company has a distributable reserve of approximately RMB 284,118,000 as of December 31, 2024, down from RMB 301,411,000 in 2023[169]. - The board does not recommend the distribution of a final dividend for the year ending December 31, 2024, consistent with the previous year[162]. Employee and Management - Employee benefits expenses for the year ended December 31, 2024, were approximately RMB 17.1 million, down from approximately RMB 24.2 million for the year ended December 31, 2023[79]. - The group had 119 employees as of December 31, 2024, a decrease from 179 employees as of December 31, 2023[79]. - The company emphasizes competitive compensation for employees compared to market standards and practices[111]. - The remuneration committee held two meetings during the fiscal year ending December 31, 2024, to review the compensation of directors and senior management[109]. Environmental and Social Responsibility - The company emphasizes environmental protection and sustainable development through technological innovation and energy efficiency[158]. - The company is focusing on green mining practices and aims to integrate sustainable development into its operations[42]. - The company has not made any charitable donations during the year, consistent with the previous year[179].

Financial Performance - The company recorded revenue of approximately RMB 282.1 million for the year ended December 31, 2024, a decrease of about 77.7% compared to RMB 1,263.7 million for the year ended December 31, 2023[3]. - The profit attributable to the owners of the company increased from approximately RMB 48.3 million for the year ended December 31, 2023, to approximately RMB 54.0 million for the year ended December 31, 2024[3]. - The operating profit for the year ended December 31, 2024, was RMB 74.8 million, compared to RMB 63.1 million for the previous year, reflecting an increase of approximately 18.0%[5]. - Basic earnings per share for the year ended December 31, 2024, were RMB 17.65, up from RMB 16.36 for the previous year[5]. - The company reported a net profit attributable to shareholders of RMB 61,723,000 for the year ended December 31, 2024, compared to RMB 50,525,000 for the previous year, representing an increase of 22.0%[25]. - The total consolidated revenue for the year ending December 31, 2024, was approximately RMB 54.0 million, an increase of about RMB 5.7 million compared to approximately RMB 48.3 million for the year ending December 31, 2023[45]. - The gross profit decreased from approximately RMB 141.5 million for the year ending December 31, 2023, to approximately RMB 15.7 million for the year ending December 31, 2024, a reduction of about RMB 125.8 million[44]. - The overall gross margin decreased to approximately 5.6% in 2024 from 11.2% in 2023, attributed to price volatility and delayed processing orders[73]. Assets and Liabilities - The total assets of the company as of December 31, 2024, amounted to RMB 1,015.98 million, an increase from RMB 869.30 million as of December 31, 2023[6]. - The total equity attributable to the owners of the company increased to RMB 545.84 million as of December 31, 2024, compared to RMB 491.88 million as of December 31, 2023[6]. - The company’s total liabilities increased to RMB 470.14 million as of December 31, 2024, compared to RMB 377.42 million as of December 31, 2023[7]. - As of December 31, 2024, the company reported accounts receivable of RMB 25,974,000, a decrease from RMB 32,950,000 in 2023, with a net accounts receivable of RMB 22,671,000 after provisions[31]. - The company’s total prepayments and other receivables increased significantly to RMB 306,441,000 in 2024 from RMB 48,133,000 in 2023, primarily due to receivables from asset sales[33]. - The company’s accounts payable decreased to RMB 20,895,000 in 2024 from RMB 48,885,000 in 2023, indicating improved cash flow management[37]. - The company’s total liabilities related to mining rights payable as of December 31, 2024, amounted to RMB 108,068,000, with RMB 20,000,000 classified as current liabilities[30]. Cash Flow and Financial Costs - The company reported a net financial cost of RMB 7.92 million for the year ended December 31, 2024, compared to RMB 1.50 million for the previous year, indicating an increase in financial expenses[5]. - The company’s cash and cash equivalents decreased to RMB 80.0 million as of December 31, 2024, from RMB 146.1 million as of December 31, 2023[6]. - As of December 31, 2024, the total borrowings of the group amount to approximately RMB 267.1 million, up from approximately RMB 118.0 million as of December 31, 2023[77]. - The group's cash and bank balances as of December 31, 2024, are approximately RMB 80.0 million, down from approximately RMB 146.1 million as of December 31, 2023[77]. - The group's debt-to-equity ratio as of December 31, 2024, is approximately 32.9%, an increase from approximately 19.3% as of December 31, 2023[79]. Business Operations and Strategy - The company completed the sale of mining rights and related assets for a net gain of RMB 115,805,000 during the year ended December 31, 2024[19]. - The company recognized revenue of RMB 123,352,000 from the sale of mining rights and exploration rights for the year ended December 31, 2024[17]. - The company plans to expand into clean energy sectors, including wind, solar, and thermal energy, as part of its new business strategy[43]. - The group plans to invest approximately RMB 145.3 million in the Zhuzhu Shanyu titanium iron mine for the construction of a new 10 million ton processing and production line[54]. - The group is actively seeking new economic growth points by adjusting its production plans in response to market changes, particularly in the renewable energy sector[55]. - The group is focusing on green mining practices and community engagement to enhance economic and environmental benefits[55]. - The group has established partnerships with top universities and research institutions to support ongoing projects and innovation[52]. Shareholder and Governance - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[15]. - The board does not recommend the payment of a final dividend for the year ending December 31, 2024 (2023: none)[93]. - The audit committee has reviewed the audited annual results for the year ending December 31, 2024, prior to submission to the board for approval[99]. - The board consists of three executive directors and four independent non-executive directors as of March 28, 2025[100]. Future Outlook - The group plans to release new production capacity in 2025, focusing on protective mining and expanding the titanium industry chain through research and development investments[89]. - The group anticipates processing approximately 1.5 million tons of external ore in 2025, contingent on the feasibility of processing techniques and profitability[90]. - An investment of approximately RMB 500 million is planned for the Zhuzhu Shangyu mine and processing plant construction in 2025, focusing on mining, production line construction, and automation[90]. - The group aims to enhance safety production through intelligent design, with a comprehensive control platform expected to be completed by the end of 2025[91]. - The group emphasizes the importance of adapting to global industrial chain adjustments and aims for high-end, intelligent, and green transformation in the titanium industry[92]. Technological Advancements - The company is implementing an AI-driven unmanned inspection system and geological risk warning model for real-time monitoring of underground environments and equipment status[95]. - The company aims to enhance resource utilization by optimizing the ore selection process through IoT technology and introducing intelligent sorting equipment[95]. - The company is focusing on low-carbon and sustainable growth projects, with plans to increase investment and adjust its industrial structure under appropriate conditions[95].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 157,288,000, a decrease of 83.4% compared to RMB 947,996,000 in the same period of 2023[7]. - The gross profit for the same period was RMB 12,184,000, down 83.7% from RMB 74,704,000 year-on-year[7]. - The company incurred an operating loss of RMB 12,610,000, compared to an operating profit of RMB 42,598,000 in the previous year[7]. - The company reported a net loss of RMB 16,353,000 for the period, compared to a net profit of RMB 33,138,000 in the same period last year[7]. - For the six months ended June 30, 2024, the company reported a total comprehensive loss of RMB 12,842,000 compared to a comprehensive income of RMB 31,300,000 for the same period in 2023[8]. - The basic loss per share for the period was RMB (4.68), a decrease from RMB 12.41 in the previous year[8]. - The company reported a net loss attributable to owners of RMB 16,353,000 for the six months ended June 30, 2024, compared to a profit of RMB 33,138,000 in the same period of 2023, representing a significant decline[40]. - The company recognized a total of RMB 22,896,000 in current liabilities related to mining rights payable as of June 30, 2024, compared to RMB 4,889,000 as of December 31, 2023, indicating a significant increase of 367.5%[22]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 897,676,000, an increase of 3.2% from RMB 869,297,000 at the end of 2023[6]. - The company's total equity decreased to RMB 479,039,000 from RMB 491,881,000, reflecting a decline of 2.6%[6]. - The company’s liabilities increased to RMB 418,637,000 from RMB 377,416,000, marking an increase of 10.9%[6]. - The company’s non-current assets totaled RMB 514,843,000, down 18.7% from RMB 633,515,000 at the end of 2023[4]. - The company’s accumulated losses increased to RMB (266,823,000) from RMB (244,990,000) at the beginning of the year[9]. - As of June 30, 2024, total equity attributable to the owners of the company was RMB 479,039,000, down from RMB 491,881,000 at the beginning of the year[9]. - The company’s total liabilities directly associated with non-current assets held for sale amounted to RMB 36,341,000[28]. Cash Flow - Cash used in operating activities was RMB (25,013,000), an improvement from RMB (58,277,000) in the same period last year[11]. - The company incurred a net cash outflow from investing activities of RMB (79,744,000), significantly higher than RMB (17,595,000) in the previous year[11]. - Financing activities generated a net cash inflow of RMB 32,644,000, compared to RMB 24,035,000 in the prior period[11]. - The company’s cash and cash equivalents decreased to RMB 73,858,000 from RMB 146,133,000, a decline of 49.5%[4]. - The company’s cash and cash equivalents at the end of the period were RMB 73,858,000, a decrease from RMB 72,771,000 at the end of the previous year[11]. - Cash and cash equivalents totaled RMB 75,358,000 as of June 30, 2024, compared to RMB 147,633,000 as of December 31, 2023, reflecting a decrease of 48.9%[25]. Operational Highlights - The gross profit for the mining and ore processing segment was RMB 2,584,000, while the mineral trading segment reported a gross profit of RMB 9,600,000, leading to a total gross profit of RMB 12,184,000 for the six months ended June 30, 2024[18]. - The company incurred depreciation expenses of RMB 11,062,000 for property, plant, and equipment during the six months ended June 30, 2024[19]. - The company made capital expenditures of RMB 52,574,000 during the six months ended June 30, 2024, reflecting ongoing investment in operational capacity[18]. - The company reported a foreign exchange gain of RMB 1,361,000 for the six months ended June 30, 2024[18]. - The company has entered into a coal purchase agreement with Xinjiang Jiangna, which will see the company purchase mixed coal from April 22, 2022, to December 31, 2024[45]. - The company has actively responded to government initiatives by expanding into clean energy sectors, including wind and solar power[50]. Market and Sales Performance - The processing service revenue from iron ore and other ores was RMB 10,836,000 for the six months ended June 30, 2024, down 93.3% from RMB 162,450,000 in the same period of 2023[33]. - The sales revenue from coal and coal products trading reached RMB 146.452 million in the first half of 2024[52]. - The average selling price of coarse iron powder and mixed coal increased by approximately 8.2% and 7.9%, respectively, compared to the same period last year[58]. - The sales volume from trading activities decreased significantly, with crude iron powder sales at 35.9 thousand tons compared to 189.1 thousand tons in the previous year, and mixed coal sales at 414.8 thousand tons down from 1,480.0 thousand tons[61]. - The company continues to monitor mineral market trends to maintain stable trading profit margins despite significant revenue declines[66]. Strategic Initiatives - The company has entered into an asset transfer agreement to sell certain assets for approximately RMB 314,484,000, subject to the outstanding amount of RMB 25,000,000 related to mining rights[28]. - The company plans to increase the processing volume of Brazilian coarse powder by over 800,000 tons in the second half of 2024, building on the existing processing volume[70]. - A strategic investment of approximately RMB 1.5 billion is planned for the construction of the Zhuge Shangyu mine and processing plant, focusing on mining, production line construction, and automation[71]. - The group is focusing on low-carbon environmental projects and has made significant progress in ecological enhancement projects[53]. Employee and Governance - As of June 30, 2024, the group had 131 employees, a decrease from 179 employees as of December 31, 2023, with employee benefits expenses amounting to approximately RMB 6.8 million[78]. - The audit committee reviewed the unaudited interim consolidated results for the six months ending June 30, 2024, and found them compliant with applicable accounting standards and regulations[91].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 157,288,000, a decrease of 83.4% compared to RMB 947,996,000 for the same period in 2023[2]. - Gross profit for the same period was RMB 12,184,000, down 83.7% from RMB 74,704,000 in 2023[2]. - The net loss for the period was RMB 16,353,000, compared to a profit of RMB 33,138,000 in the previous year[3]. - The basic loss per share for the period was RMB (4.68), down from earnings of RMB 12.41 per share in 2023[3]. - The total comprehensive loss attributable to owners for the six months ending June 30, 2024, was approximately RMB 12.8 million, compared to a total comprehensive income of approximately RMB 31.3 million for the same period in 2023[31]. - The company reported a consolidated loss attributable to owners of approximately RMB 12.8 million for the six months ended June 30, 2024, compared to a profit of approximately RMB 31.3 million for the same period last year[50]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 897,676,000, an increase from RMB 869,297,000 as of December 31, 2023[4]. - The company's cash and cash equivalents decreased to RMB 73,858,000 from RMB 146,133,000 at the end of 2023[4]. - The company’s net accounts receivable decreased to RMB 11,036 million as of June 30, 2024, from RMB 28,914 million as of December 31, 2023, reflecting a decline of approximately 61.8%[23]. - Trade payables amounted to RMB 23,260 million as of June 30, 2024, down from RMB 48,885 million as of December 31, 2023, indicating a reduction of about 52.5%[27]. - As of June 30, 2024, total borrowings amounted to approximately RMB 151.9 million, up from RMB 118.0 million as of December 31, 2023[53]. - The debt-to-equity ratio as of June 30, 2024, was approximately 24.1%, an increase from 19.3% as of December 31, 2023[54]. Operational Highlights - The company reported interest income of RMB 584,000 for the six months ended June 30, 2024, down from RMB 1,113,000 in the same period of 2023, a decrease of approximately 47.5%[16]. - The company incurred interest expenses of RMB 3,937,000 for the six months ended June 30, 2024, compared to RMB 2,102,000 for the same period in 2023, representing an increase of about 87.0%[16]. - The company recorded a provision for corporate income tax in China at a rate of 25% on taxable profits, with certain subsidiaries reporting losses that offset taxable income[17]. - The company has capital commitments of approximately RMB 95.76 million as of June 30, 2024, related to the construction of a new processing and production line for the Zhuge Shangyu titanium iron mine[28]. - The company plans to continue processing Brazilian coarse powder, achieving a processing volume of 404,000 tons in the first half of 2024[32]. - The company aims to enhance production capacity at the Zhuge Shangyu processing plant, with a current annual production capacity of 300,000 tons[33]. Sales and Revenue Composition - 93.1% of total revenue for the six months ended June 30, 2024, came from the sales of iron powder and mixed coal, while 6.9% was from processing services[37]. - The average selling price of iron powder and mixed coal increased by approximately 8.2% and 7.9%, respectively, compared to the same period last year[39]. - The sales volume of mixed coal decreased to 414.8 thousand tons for the six months ended June 30, 2024, down from 1,480.0 thousand tons in the same period of 2023[42]. - The processing service revenue decreased from approximately 17.1% of total revenue in the six months ended June 30, 2023, to 6.9% in the same period of 2024 due to delays in processing orders[37]. Cost Management - Total sales cost decreased by approximately 83.4% to about RMB 145.1 million for the six months ended June 30, 2024, compared to RMB 873.3 million for the same period last year[44]. - Gross profit for trading activities decreased from approximately RMB 74.7 million to about RMB 12.2 million, a reduction of approximately RMB 62.5 million, primarily due to a slowdown in trading activities and delays in processing orders[46]. - Overall gross margin remained stable at 7.7% for the six months ended June 30, 2024, compared to 7.9% for the same period last year[47]. - Distribution costs and administrative expenses decreased by approximately RMB 0.6 million or 1.9% to about RMB 31.6 million, despite a rise in distribution costs due to warehousing services[48]. Strategic Initiatives - The company is focusing on expanding its clean energy business, including wind, solar, and thermal energy, while continuing to develop its titanium and iron ore business[30]. - The company has made substantial progress in the construction of low-carbon and environmentally friendly projects at Zhuge Shangyu[32]. - The company has established partnerships with universities for research on the comprehensive utilization of titanium iron ore, leading to several innovative outcomes[34]. - The company has been recognized as a provincial-level "Innovative SME" and "Technology Innovation Enterprise" in Shandong Province[34]. Employee and Governance - Employee benefits expenses for the six months ended June 30, 2024, were approximately RMB 6.8 million, down from RMB 11.0 million for the same period in 2023[58]. - The company adopted a restricted share award scheme to incentivize employees, with 501,000 restricted shares held by the trustee as of June 30, 2024[62]. - The audit committee reviewed the unaudited interim consolidated results for the six months ended June 30, 2024, ensuring compliance with applicable accounting standards and regulations[65].