消息方面，COMEX黄金期货周二收涨0.81%，报2639.30美元/盎司。值得注意的是，2024年累计涨幅 27.5%，为2010年以来最大的年度涨幅;过去两年，金价上涨了44.5%。 这一年黄金涨势强劲，背后是多种因素共同发力。地缘政治紧张局势的加剧，使得投资者纷纷寻求避险 资产，黄金成为首选之一。货币政策的放松，为黄金价格上涨提供了有利的宏观环境。 此外黄金这一表现也提振国内黄金企业的表现。比如山东黄金前三季度实现归母净利润约20.66亿元， 同比增长53.57%；招金矿业前三季度业绩归母净利润8.81亿元，同比大增141.07%。 展望2025年，分析师普遍持乐观态度。尽管即将上台的特朗普政府的政策可能会带来一些变数，如政策 阻力或许会加剧通胀，并减缓美联储的降息步伐，但整体来看，支撑金价的因素依然强劲。 摩根大通也认为，尽管短期内黄金价格可能会因美国降息预期减弱而出现波动，但长期来看，黄金的结 构性牛市并未改变。 财联社1月2日讯(编辑 胡家荣) 今日港股持续盘整，但是黄金股获得资金关注。截至发稿，灵宝黄金 (03330.HK)、山东黄金(01787.HK)、中国黄金国际(02099.HK)分别上涨 ...

[Company Information](index=2&type=section&id=Company%20Information) [Board of Directors and Supervisory Committee](index=3&type=section&id=Board%20of%20Directors%20and%20Supervisory%20Committee) Lingbao Gold Group Co., Ltd. released its interim report as of June 30, 2024, disclosing the composition of its Board of Directors, Supervisory Committee, and their respective committees - The term of the Seventh Board of Directors and Supervisory Committee expired, and members of the Eighth Board of Directors and Supervisory Committee were officially elected at the Annual General Meeting on **May 29, 2024**[3](index=3&type=chunk) [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) This section provides fundamental company information including registration details, principal bankers, investor relations contacts, stock code, listing date, and total share capital - The H share registrar of the Company is Hong Kong Registrars Limited[4](index=4&type=chunk) - The Company's stock code is **3330**, and its listing date was **January 12, 2006**[6](index=6&type=chunk) - As of June 30, 2024, the Company's total share capital was **1,243,476,055 shares**, comprising **566,975,091 domestic shares** and **676,500,964 H shares**[31](index=31&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=4&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2024, Lingbao Gold Group's gold ingot production decreased due to Henan Province's regulatory requirements and adjusted procurement, leading to a **26.67% year-on-year revenue reduction**, yet net profit **increased by 26.73% to RMB152,658 thousand** due to higher gold prices, with all company-operated mines achieving profitability for the first time, and the Group boasts substantial gold reserves and resources of approximately **136.34 tonnes** - Gold ingot production in the first half of 2024 was approximately **7,950 kg (255,580 oz)**, a year-on-year decrease of approximately **5,068 kg (162,935 oz)**, mainly due to Henan Province's mining regulations and adjustments in gold concentrate procurement[6](index=6&type=chunk) - Revenue for the period was approximately **RMB4,281,228 thousand**, a year-on-year decrease of **26.67%**[6](index=6&type=chunk) - Net profit for the period was approximately **RMB152,658 thousand**, a year-on-year increase of **26.73%** (2023: RMB120,467 thousand)[6](index=6&type=chunk) - As of June 30, 2024, the Group held **37 mining and exploration rights**, with total gold reserves and resources of approximately **136.34 tonnes (4,383,013 oz)**[7](index=7&type=chunk) [Mining Segment](index=5&type=section&id=Mining%20Segment) The mining segment's total revenue decreased by **37.56% year-on-year to RMB778,098 thousand** in the first half, primarily due to Henan Province's unified regulatory requirements impacting Nanshan Branch and Xingyuan Company's output, though Fujin, Jinchan, and Huatai companies saw increased output and revenue, and the Kyrgyzstan mining segment achieved profitability, reversing last year's losses - Total revenue for the mining segment was approximately **RMB778,098 thousand**, a year-on-year decrease of **37.56%**[9](index=9&type=chunk) - Total profit for the mining segment was approximately **RMB273,277 thousand**, a year-on-year decrease of **32.38%**[10](index=10&type=chunk) - The Kyrgyzstan mining segment recorded a profit of **RMB5,900 thousand**, compared to a loss of approximately **RMB115,034 thousand** in the same period of 2023, achieving a turnaround to profitability[10](index=10&type=chunk) Mining Segment Production and Sales Volume (Six Months Ended June 30) | Product Name | Unit | Approx. Production Volume 2024 | Approx. Sales Volume 2024 | Approx. Production Volume 2023 | Approx. Sales Volume 2023 | | :--------------- | :--- | :----------------- | :----------------- | :----------------- | :----------------- | | Gold concentrate (contained gold) | kg | 1,456 | 1,378 | 2,556 | 2,642 | | Gold alloy | kg | 348 | 347 | 368 | 350 | | Total | kg | 1,805 | 1,725 | 2,924 | 2,992 | | Total | oz | 58,022 | 55,465 | 94,007 | 96,193 | [Smelting Segment](index=7&type=section&id=Smelting%20Segment) The smelting segment's total revenue decreased by **26.81% year-on-year to RMB4,291,005 thousand** in the first half, mainly due to reduced mining output and the Group's proactive reduction in gold concentrate procurement; despite lower revenue, the segment's loss decreased year-on-year due to rising prices of by-products silver, copper products, and sulfuric acid, coupled with cost reduction and efficiency improvements - Total revenue for the smelting segment was approximately **RMB4,291,005 thousand**, a year-on-year decrease of **26.81%**[12](index=12&type=chunk) - The smelting segment recorded a loss of **RMB24,444 thousand**, a reduction from the loss of approximately **RMB28,707 thousand** in the same period of 2023[13](index=13&type=chunk) Smelting Segment Production and Sales Volume (Six Months Ended June 30) | Product Name | Unit | Approx. Production Volume 2024 | Approx. Sales Volume 2024 | Approx. Production Volume 2023 | Approx. Sales Volume 2023 | | :--------------- | :--- | :----------------- | :----------------- | :----------------- | :----------------- | | Gold ingots (from gold concentrate processing) | kg | 4,802 | 4,795 | 5,278 | 5,000 | | Gold ingots (from purchased gold alloy processing) | kg | 3,148 | 3,119 | 7,740 | 8,009 | | Silver | kg | 4,785 | 4,860 | 11,556 | 10,168 | | Copper products | ton | 775 | 792 | 2,259 | 2,404 | | Sulfuric acid | ton | 53,165 | 51,597 | 52,322 | 55,769 | [Consolidated Operating Results](index=7&type=section&id=Consolidated%20Operating%20Results) The Group's total revenue in the first half decreased by **26.67% year-on-year to RMB4,281,228 thousand**, primarily due to reduced procurement of gold concentrate and lower mining output; however, gross profit **increased by 14.72% to RMB407,686 thousand**, with gross margin rising to **9.52%**, driven by improved gross profit at Fujin Company, Jinchan Company's turnaround to profitability, and reduced losses in the smelting segment - The Group's revenue for the period was approximately **RMB4,281,228 thousand**, a **26.67%** decrease compared to the same period in 2023[13](index=13&type=chunk) - The Group's gross profit and gross profit margin for the period were **RMB407,686 thousand** and **9.52%**, respectively, compared to **RMB355,376 thousand** and **6.09%** in the same period last year[14](index=14&type=chunk) - The increase in gross profit margin was attributable to improved gross profit at Fujin Company, Jinchan Company's turnaround to profitability, and reduced losses in the smelting segment[14](index=14&type=chunk) Product Sales Analysis (Six Months Ended June 30) | Product Name | Amount 2024 (RMB thousand) | Sales Volume 2024 | Average Selling Price 2024 (RMB/kg or ton) | Amount 2023 (RMB thousand) | Sales Volume 2023 | Average Selling Price 2023 (RMB/kg or ton) | | :------- | :---------------------- | :------------- | :--------------------------------- | :---------------------- | :------------- | :--------------------------------- | | Gold ingots | 4,063,064 | 7,914 kg | 513,402 | 5,546,828 | 13,018 kg | 426,089 | | Silver | 29,642 | 4,860 kg | 6,099 | 48,324 | 10,168 kg | 4,753 | | Copper products | 51,456 | 792 ton | 64,970 | 143,051 | 2,404 ton | 59,507 | | Sulfuric acid | 2,419 | 51,597 ton | 47 | 1,787 | 55,769 ton | 32 | | Gold concentrate | 169,476 | 332 kg | 510,470 | 91,883 | 253 kg | 363,174 | | Others | 4,463 | | | 38,352 | | | | **Revenue before tax** | **4,320,520** | | | **5,870,225** | | | | Less: Sales tax and surcharges | (39,292) | | | (31,642) | | | | **Total Revenue** | **4,281,228** | | | **5,838,583** | | | [Outlook and Plans for the Second Half of 2024](index=9&type=section&id=Outlook%20and%20Plans%20for%20the%20Second%20Half%20of%202024) The Group plans to leverage favorable rising gold prices to consolidate its development in the second half, aiming for increased production, efficiency, and sustainable growth by boosting mine investment, advancing digital transformation, strengthening headquarters' technical and management platforms, implementing talent strategies, expanding overseas markets, and continuously enhancing safety and environmental protection - Since the beginning of this year, gold prices have continued to rise, providing favorable conditions for the Group's steady development[15](index=15&type=chunk) - In the second half, the Group will capitalize on favorable market conditions to optimize production organization, strengthen cost control, and accelerate the upgrade of mining equipment and related engineering construction[15](index=15&type=chunk) - The Group will continue to advance its production's **"digital and intelligent" transformation** with the goal of full-process digitalization and intelligence, promoting efficiency and speed in production operations, and achieving management upgrades[16](index=16&type=chunk) - The Group will actively promote an **equity incentive plan** for eligible individuals to reward contributions, retain, and attract key talent[18](index=18&type=chunk) - The Group will resolutely implement its **"going out" strategy**, focusing on achieving effective progress in resource mergers and acquisitions, exploration, and management to ensure the strategic goal of increasing resource reserves[19](index=19&type=chunk) - In the second half, the Group will continue to strengthen safety and environmental risk supervision, organize special inspections and rectifications for safety and environmental protection, and intensify supervision and assessment efforts[20](index=20&type=chunk) [Consolidate Development Momentum, Organize Production and Operations, and Increase Exploration and Reserves](index=9&type=section&id=Consolidate%20Development%20Momentum%2C%20Organize%20Production%20and%20Operations%2C%20and%20Increase%20Exploration%20and%20Reserves) In the first half, the Group invested **RMB95 million** in key mining enterprises for resource exploration, safety, environmental protection, and technological innovation, significantly improving resource development and utilization efficiency; in the second half, it will leverage favorable market conditions to optimize production, strengthen cost control, and plans to invest approximately **RMB200 million** over three years for exploration at Lingjin No. 1 Mine, Nanshan Branch's main production base, to increase reserves and output - In the first half, a cumulative investment of **RMB95 million** was made in mining enterprises for resource exploration, safety and environmental protection, technological innovation, and the promotion of new technologies[15](index=15&type=chunk) - Huatai Company and Nanshan Branch increased their monthly single-face tunneling distance from **50m and 80m to 150m**, respectively; Xingyuan Company's ore dressing recovery rate improved to **92.8%**[15](index=15&type=chunk) - In the second half, the Group will strengthen comprehensive research on the metallogenic potential of existing mining rights, intensify exploration of high-quality mining rights, and plans to invest approximately **RMB200 million** in exploration funds over three years for Lingjin No. 1 Mine, Nanshan Branch's main production base[15](index=15&type=chunk) [Accelerate Digital and Intelligent Transformation of Production, Expedite Green Mine (ESG) Construction](index=10&type=section&id=Accelerate%20Digital%20and%20Intelligent%20Transformation%20of%20Production%2C%20Expedite%20Green%20Mine%20(ESG)%20Construction) The Group steadily advanced intelligent mining, investing **RMB21 million** to upgrade its dispatch command center and six system integrations, enabling unattended operation and remote control; in the first half, transaction and contract management systems were launched, and the mine "MES" system began trial operation at Nanshan Branch and Xingyuan Company, with nearly **RMB7 million** invested in ecological restoration, actively responding to "dual carbon" goals - A cumulative investment of **RMB21 million** was made to upgrade the dispatch command centers and integrate six systems (hoisting, transportation, ventilation, compressed air, drainage, and power supply) at Nanshan Branch, Xingyuan Company, Jinchan Company, and Huatai Company[16](index=16&type=chunk) - In the first half, the transaction management system and contract management system were launched, and the mine "MES" system began trial operation at Nanshan Branch and Xingyuan Company[16](index=16&type=chunk) - In the first half, a cumulative investment of nearly **RMB7 million** was made, restoring **470 mu** of vegetation, **27 mu** of ecological land, and planting **7,530 trees**[17](index=17&type=chunk) [Strengthen Headquarters Platform Construction, Resolve Key Technical and Management Issues](index=11&type=section&id=Strengthen%20Headquarters%20Platform%20Construction%2C%20Resolve%20Key%20Technical%20and%20Management%20Issues) The Group continuously strengthened its technical platform, with experts providing over **50 on-site services** in the first half to resolve technical and management challenges; Huatai Company improved ore grade by **17%** through mining method adjustments, Xingyuan Company established the nation's first intelligent gold ore sorting system, and the Smelting Branch enhanced gold mud quality and silver leaching rates while reducing production costs through technical upgrades, further engaging consulting firms like Deloitte to refine its management system - In the first half, experts in mining, beneficiation, mechanical and electrical engineering, safety and environmental protection, finance, and auditing were deployed to the front lines, providing over **50 on-site services** to help enterprises resolve technical and management challenges[17](index=17&type=chunk) - Huatai Company, by adjusting its mining methods and utilizing cemented backfill mining, increased the ore grade by **17%** compared to the average mining grade in the same period[17](index=17&type=chunk) - Xingyuan Company established the nation's first intelligent gold ore sorting system, increasing the feed grade by **0.2 grams** and the waste rock rejection rate by **13.76%**[17](index=17&type=chunk) - The Smelting Branch implemented several technical modifications, including replacement plate-and-frame gold mud washing and zinc powder precious liquid purification, improving gold mud quality and smelting silver leaching rates, and reducing refining production costs[17](index=17&type=chunk) [Advance Internal Reforms, Implement Talent-Strengthening Strategy](index=12&type=section&id=Advance%20Internal%20Reforms%2C%20Implement%20Talent-Strengthening%20Strategy) Adhering to a "talent-first" philosophy, the Group successfully recruited dozens of senior and high-potential industry talents in the first half, alongside management, finance, investment, and technology professionals from specialized agencies and tech firms; aiming for a younger leadership, the Group appointed over **10 young middle-level cadres** to key positions and plans to implement an equity incentive scheme to attract and retain critical talent, continuously optimizing staffing and refining its compensation system - In the first half, dozens of senior and high-potential talents from benchmark enterprises in the industry and related fields were successfully recruited, while management, finance, and investment professionals were introduced from firms like Deloitte and PwC, and technology talents from companies such as Accenture and Tencent[18](index=18&type=chunk) - With the goal of rejuvenating leadership, over **10 young middle-level cadres** were selected to hold key positions in major mining enterprises[18](index=18&type=chunk) - The Group will actively promote an **equity incentive plan** for eligible individuals to reward contributions, retain, and attract key talent[18](index=18&type=chunk) [Unwavering Implementation of the "Going Out" Strategy](index=12&type=section&id=Unwavering%20Implementation%20of%20the%20%22Going%20Out%22%20Strategy) The Group is steadfastly implementing its "going out" strategy, having established an overseas business unit in the first half to oversee the entire process of international project screening, inspection, due diligence, negotiation, and operational team formation; the unit has conducted **7 on-site due diligence visits and inspections** in regions such as the South Pacific and Southern Africa, with plans to continue explorations in the second half to secure new overseas resource development bases - The Group is resolutely implementing its **"going out" strategy**, focusing on achieving effective progress in resource mergers and acquisitions, exploration, and management[19](index=19&type=chunk) - In the first half, an overseas business unit was established, fully responsible for the entire process of overseas project collection and screening, preliminary inspection, intermediary selection, on-site due diligence, business negotiation, and signing and closing[19](index=19&type=chunk) - The overseas business unit has organized teams to conduct **7 on-site due diligence visits and inspections** for projects in regions such as the South Pacific and Southern Africa[19](index=19&type=chunk) [Continuously Strengthen Safety and Environmental Protection Work](index=13&type=section&id=Continuously%20Strengthen%20Safety%20and%20Environmental%20Protection%20Work) In the first half, the Group strictly adhered to safety and environmental regulations, investing **RMB41.82 million** to enhance safety protection, address hazards, and promote new technologies and equipment, ensuring a stable and controllable safety and environmental situation; the Smelting Branch continuously managed sulfur dioxide and nitrogen oxide emissions, initiating a cyanide-containing wastewater desalination project for in-depth treatment, and increased investment in its solid waste disposal company to ensure efficient and environmentally friendly disposal of smelting tailings - In the first half, a total of **RMB41.82 million** was invested in improving safety protection, addressing hazards, promoting new equipment, assessing and monitoring hazardous sources, obtaining safety licenses, maintaining tailings pond closures, and environmental protection projects[20](index=20&type=chunk) - The Smelting Branch maintained regular control over sulfur dioxide and nitrogen oxide emissions, ensuring minimal exhaust emissions and stable monitoring data, and initiated a cyanide-containing wastewater desalination project for in-depth treatment[20](index=20&type=chunk) - The Group continuously increased investment in the production and construction of Lingbao Xinan Solid Waste Disposal Co., Ltd., to ensure efficient and environmentally friendly disposal of smelting tailings[20](index=20&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) As of June 30, 2024, the Group's cash and cash equivalents increased to **RMB331,854 thousand**, and total equity rose to **RMB2,612,111 thousand**; while net current liabilities improved, they remained negative, and the gearing ratio increased to **48.7%**; the Group faces gold price volatility, interest rate, and exchange rate risks, planning to reduce its gearing ratio by enhancing profitability, strengthening equity financing, and diversifying funding channels, with capital expenditure for the period at approximately **RMB288,056 thousand** and a total workforce of **3,646 employees** - As of June 30, 2024, cash and cash equivalents were **RMB331,854 thousand** (December 31, 2023: RMB256,724 thousand)[21](index=21&type=chunk) - As of June 30, 2024, the Company's total equity was **RMB2,612,111 thousand** (December 31, 2023: RMB2,436,554 thousand)[21](index=21&type=chunk) - Current ratio was **87.2%** (December 31, 2023: 80.0%)[21](index=21&type=chunk) - Gearing ratio was **48.7%** (December 31, 2023: 41.7%), calculated as total borrowings divided by total assets[22](index=22&type=chunk) - The Group's capital expenditure for the period was approximately **RMB288,056 thousand**, an increase of approximately **42.9%** compared to approximately RMB201,619 thousand in the same period of 2023[28](index=28&type=chunk) - As of June 30, 2024, the Group had **3,646 employees** (December 31, 2023: 4,103 employees)[28](index=28&type=chunk) [Liquidity and Financial Resources](index=13&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its operations through internal capital and loans from banks and other financial institutions; as of June 30, 2024, cash and cash equivalents increased, but net current liabilities remained negative, and the gearing ratio rose; the Group plans to effectively reduce its gearing ratio by enhancing profitability, strengthening equity financing, and diversifying funding channels - As of June 30, 2024, cash and cash equivalents were **RMB331,854 thousand** (December 31, 2023: RMB256,724 thousand)[21](index=21&type=chunk) - Current assets were **RMB3,898,174 thousand**, current liabilities were **RMB4,470,488 thousand**, and the current ratio was **87.2%** (December 31, 2023: 80.0%)[21](index=21&type=chunk) - Outstanding bank and other borrowings were approximately **RMB3,844,529 thousand**, of which approximately **RMB3,544,224 thousand** are repayable within one year[22](index=22&type=chunk) - Gearing ratio was **48.7%** (December 31, 2023: 41.7%)[22](index=22&type=chunk) - The Group had unutilized bank facilities of approximately **RMB626,970 thousand**, available for drawdown to fund operations[22](index=22&type=chunk) - To reduce the gearing ratio, the Group will strengthen management to optimize production, enhance equity financing capabilities, and diversify financing channels to lower financing costs[22](index=22&type=chunk) [Pledges and Guarantees](index=14&type=section&id=Pledges%20and%20Guarantees) Details of the Group's pledges and guarantees primarily pertain to bank and other borrowings, with specific information available in Note 13 to the financial statements of this report - For details of the Group's pledges and guarantees as of June 30, 2024, please refer to Note 13 — Bank and other borrowings in the financial statements of this report[23](index=23&type=chunk) [Market Risks](index=14&type=section&id=Market%20Risks) The Group is exposed to various market risks, including fluctuations in gold and other commodity prices, interest rate changes, foreign currency exchange rate movements, and inflation; the Group does not engage in speculative commodity derivatives or futures, using all derivative instruments solely to hedge against potential volatility in gold and other commodity prices - The Group is exposed to various market risks, including gold price and other commodity value fluctuations, as well as changes in interest rates, foreign currency exchange rates, and inflation[24](index=24&type=chunk) - The Group does not and strictly prohibits the use of commodity derivatives or futures for speculative purposes; all commodity derivatives are used to hedge against any potential fluctuations in gold and other commodity prices[25](index=25&type=chunk) - The interest rates on the Group's bank loans may be adjusted by lenders in accordance with changes in relevant People's Bank of China regulations, and an increase in interest rates would raise financing costs[26](index=26&type=chunk) - The Group's transactions are primarily conducted in RMB, but certain bank deposits, trade and other receivables, trade and other payables, and bank loans denominated in foreign currencies are exposed to exchange rate risk, primarily from the US dollar[27](index=27&type=chunk) [Contractual Obligations](index=15&type=section&id=Contractual%20Obligations) As of June 30, 2024, the Group's total capital commitments not provided for in the financial statements amounted to approximately **RMB344,032 thousand**, a decrease of approximately **RMB32,011 thousand** from the end of 2023 - As of June 30, 2024, the Group's total capital commitments for contracted costs not provided for in the financial statements amounted to approximately **RMB344,032 thousand** (December 31, 2023: RMB376,043 thousand), a decrease of approximately **RMB32,011 thousand**[28](index=28&type=chunk) [Capital Expenditure](index=15&type=section&id=Capital%20Expenditure) The Group's capital expenditure for the period was approximately **RMB288,056 thousand**, an increase of approximately **42.9%** year-on-year, primarily allocated to mine construction projects, renewal of subsidiaries' mining rights, expansion project equipment, and production equipment upgrades - The Group's capital expenditure for the period was approximately **RMB288,056 thousand**, an increase of approximately **42.9%** compared to approximately RMB201,619 thousand in the same period of 2023[28](index=28&type=chunk) - The Group's capital expenditure primarily involved mine construction projects, renewal of mining rights for other related subsidiaries, equipment for expansion projects, and upgrades to production equipment[28](index=28&type=chunk) [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group had no significant contingent liabilities - As of June 30, 2024, the Group had no significant contingent liabilities[28](index=28&type=chunk) [Human Resources](index=15&type=section&id=Human%20Resources) As of June 30, 2024, the Group had **3,646 employees**, a decrease of **457** from the end of 2023; the Group determines its remuneration policy based on merit, seniority, and competence, offering training opportunities and incentive schemes - As of June 30, 2024, the Group had **3,646 employees** (December 31, 2023: 4,103 employees)[28](index=28&type=chunk) - The Group recruits and promotes employees based on individual capabilities and development potential, and determines remuneration for all employees with reference to individual performance and prevailing market salary levels[28](index=28&type=chunk) - The Group is committed to training and developing its employees, providing ample training opportunities and diverse training programs, and formulating remuneration incentive policies[28](index=28&type=chunk) [Funding and Treasury Policy](index=15&type=section&id=Funding%20and%20Treasury%20Policy) The Group maintains a prudent funding and treasury policy, depositing surplus funds with licensed banks and financial institutions; the Board closely monitors the Group's liquidity position to ensure that the liquidity structure of its assets, liabilities, and other commitments can meet funding requirements - The Group maintains a prudent funding and treasury policy, with surplus funds held as cash deposits with licensed banks and financial institutions[29](index=29&type=chunk) - The Board closely monitors the Group's liquidity position to ensure that the liquidity structure of its assets, liabilities, and other commitments can meet its funding requirements from time to time[29](index=29&type=chunk) [Significant Investments](index=16&type=section&id=Significant%20Investments) As of June 30, 2024, the Group held no significant investments - As of June 30, 2024, the Group held no significant investments[30](index=30&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=16&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%2C%20and%20Joint%20Ventures) During the period, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures by the Group - During the period, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[30](index=30&type=chunk) [Future Plans for Material Investments or Capital Assets](index=16&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed elsewhere in this report, as of the date of this report, the Group had no other future plans for material acquisitions, investments, or capital assets - Except as disclosed elsewhere in this report, as of the date of this report, the Group had no other future plans for material acquisitions, investments, or capital assets[30](index=30&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) [Share Capital](index=17&type=section&id=Share%20Capital) As of June 30, 2024, the Company's total share capital was **1,243,476,055 shares**, comprising domestic and H shares, with H shares accounting for **54.40%** of the total Share Capital Structure (As of June 30, 2024) | Share Type | Number of Shares | Approx. Percentage of Total Share Capital | | :------- | :------------ | :--------------------- | | Domestic Shares | 566,975,091 | 45.60% | | H Shares | 676,500,964 | 54.40% | | **Total** | **1,243,476,055** | **100.00%** | [Issue of Equity Securities for Cash](index=17&type=section&id=Issue%20of%20Equity%20Securities%20for%20Cash) For the six months ended June 30, 2024, the Company successfully raised funds through two H share placements, with net proceeds primarily used for purchasing gold concentrate for gold bar production - On February 28, 2024, a placement of **32,538,000 H shares** was completed, raising approximately **HK$42.4 million** net, intended for purchasing gold concentrate for gold bar production[31](index=31&type=chunk) - On April 25, 2024, a placement of **26,916,800 H shares** was completed, raising approximately **HK$79.3 million** net, intended for purchasing gold concentrate for gold bar production[32](index=32&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares, and the Company held no treasury shares - For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares[33](index=33&type=chunk) - As of June 30, 2024, the Company held no treasury shares[33](index=33&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in the Company's Shares](index=18&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20the%20Company's%20Shares) As of June 30, 2024, Mr. Wang Guanran, a non-executive director, held significant interests in the Company's domestic and H shares through controlled corporations; apart from this, no other directors or chief executives had disclosable interests or short positions in the Company's shares Shareholdings of Directors and Chief Executive (As of June 30, 2024) | Name and Position | Description of Shares | Nature of Interest | Number of Shares Held | Approx. Percentage of Total Issued Domestic Share Capital | Approx. Percentage of Total Issued H Share Capital | Approx. Percentage of Total Share Capital | | :------------------------ | :------- | :----------- | :-------------------------- | :--------------------------------- | :------------------------------ | :--------------------- | | Mr. Wang Guanran (Non-executive Director) | Domestic Shares | Interest in controlled corporation | 185,339,000 (L) | 32.69% | — | 14.90% | | Mr. Wang Guanran (Non-executive Director) | H Shares | Interest in controlled corporation | 319,772,164 (L) | — | 47.27% | 25.72% | - Mr. Wang Guanran indirectly controls the Company's shares through Jiesi Weiye and Jiesi Industrial[36](index=36&type=chunk) [Substantial Shareholders' Interests and Short Positions in the Company's Shares](index=19&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20the%20Company's%20Shares) As of June 30, 2024, Jiesi Weiye and Jiesi Industrial Development (Hong Kong) Co., Ltd. were substantial shareholders of the Company, holding significant interests in its domestic and H shares, respectively; Jiesi Weiye's total voting rights make it a substantial shareholder of the Company Substantial Shareholders' Domestic Shareholdings (As of June 30, 2024) | Name of Shareholder | Nature of Interest | Number of Shares Held | Approx. Percentage of Total Domestic Share Capital | Approx. Percentage of Total Share Capital | | :------------------------------- | :------- | :-------------- | :------------------------- | :--------------------- | | Jiesi Weiye | Beneficial owner | 185,339,000 (L) | 32.69% | 14.90% | | Lingbao City State-owned Assets Management Co., Ltd. | Beneficial owner | 73,540,620 (L) | 12.97% | 5.91% | | Shanghai Zhengxi Investment Management Partnership (Limited Partnership) | Beneficial owner | 57,000,000 (L) | 10.05% | 4.58% | Substantial Shareholders' H Shareholdings (As of June 30, 2024) | Name of Shareholder | Nature of Interest | Number of Shares Held | Approx. Percentage of Total Issued H Share Capital | Approx. Percentage of Total Share Capital | | :------------------------------------------- | :----------- | :-------------- | :------------------------------ | :--------------------- | | Jiesi Industrial Development (Hong Kong) Co., Ltd. ("Jiesi Industrial") | Beneficial owner | 319,772,164 (L) | 47.27% | 25.72% | | Shenzhen Jiesi Dingxin Holdings Co., Ltd. ("Jiesi Dingxin") | Interest in controlled corporation | 319,772,164 (L) | 47.27% | 25.72% | | Shenzhen Jiesi Weiye Holdings Co., Ltd. | Interest in controlled corporation | 319,772,164 (L) | 47.27% | 25.72% | - Jiesi Weiye's total voting rights (Domestic Shares + H Shares) amounted to **40.62%**, making it a substantial shareholder of the Company[90](index=90&type=chunk) [Changes in Information of Directors and Supervisors](index=21&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Supervisors) In accordance with the Articles of Association, the terms of the Seventh Board of Directors and Supervisory Committee expired on May 28, 2024; members of the Eighth Board of Directors and Supervisory Committee were elected at the Annual General Meeting held on May 29, 2024, with appointments and resignations/retirements of relevant directors and supervisors disclosed - The terms of the Seventh Board of Directors and Supervisory Committee expired on **May 28, 2024**[40](index=40&type=chunk) - Members of the Eighth Board of Directors and Supervisory Committee were officially elected at the Annual General Meeting held on **May 29, 2024**[40](index=40&type=chunk) - Mr. Chen Jianzheng was appointed as Chairman, Executive Director, and Chairman of the Strategy Committee[40](index=40&type=chunk) - Mr. Dai Weitao, Mr. Wang Guanghua, Mr. Wang Jiheng, and Mr. Xu Rong resigned/retired from their positions as executive directors or independent non-executive directors[41](index=41&type=chunk) [Dividends](index=23&type=section&id=Dividends) The Company declared and approved the final dividend for the year ended December 31, 2023, at the Annual General Meeting on May 29, 2024, which was paid on July 31, 2024; the Board does not recommend an interim dividend for the six months ended June 30, 2024 - For the six months ended June 30, 2024, shareholders of the Company declared and approved a final dividend of **RMB0.065 per share** for the year ended December 31, 2023, at the Annual General Meeting held on May 29, 2024[42](index=42&type=chunk) - This final dividend was paid to the Company's shareholders on **July 31, 2024**[42](index=42&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[42](index=42&type=chunk) [Corporate Governance](index=23&type=section&id=Corporate%20Governance) The Company is committed to maintaining a robust, transparent, and prudent corporate governance framework, having adopted the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, and has complied with these provisions during the period - The Company has adopted the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules as its corporate governance code[43](index=43&type=chunk) - During the period, the Company complied with the code provisions of the Corporate Governance Code[43](index=43&type=chunk) [Standard Code for Securities Transactions](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for securities transactions by directors and supervisors, and all directors and supervisors complied with this code during the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as its code of conduct for securities transactions by directors and supervisors[44](index=44&type=chunk) - Based on specific inquiries made to all directors and supervisors, they have complied with the required standards set out in the Model Code during the period[44](index=44&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors and one non-executive director, convened on August 28, 2024, to review the unaudited interim financial report for the six months ended June 30, 2024 - The Audit Committee comprises four independent non-executive directors and one non-executive director, namely Mr. Yang Zhida (Chairman), Mr. Zhang Feihu, Mr. Chen Congfa, Mr. Bo Shaochuan, and Mr. Guo Xinsheng[45](index=45&type=chunk) - An Audit Committee meeting was held on **August 28, 2024**, to review the unaudited interim financial report for the six months ended June 30, 2024, and this interim report[45](index=45&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the reporting period - No significant events occurred after the reporting period[45](index=45&type=chunk) [Review Report](index=23&type=section&id=Review%20Report) [Introduction](index=23&type=section&id=Introduction) BDO Limited has reviewed the condensed interim financial report of Lingbao Gold Group Co., Ltd. and its subsidiaries for the six months ended June 30, 2024, prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants - Our auditors have reviewed the condensed interim financial report of Lingbao Gold Group Co., Ltd. and its subsidiaries, presented on pages 24 to 50[45](index=45&type=chunk) - The interim financial report must comply with the relevant requirements under the Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[45](index=45&type=chunk) [Scope of Review](index=24&type=section&id=Scope%20of%20Review) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants, primarily involving inquiries of personnel responsible for financial and accounting matters, and performing analytical and other review procedures; as the scope of a review is less than that of an audit, no audit opinion is expressed - We have conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[46](index=46&type=chunk) - A review consists principally of making inquiries of management and others responsible for financial and accounting matters and applying analytical and other review procedures[46](index=46&type=chunk) - Because the scope of a review is substantially less than that of an audit conducted in accordance with Hong Kong Standards on Auditing, it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit; accordingly, we do not express an audit opinion[46](index=46&type=chunk) [Conclusion](index=24&type=section&id=Conclusion) Based on the review, the auditors have not become aware of any matter that causes them to believe that the interim financial report for the six months ended June 30, 2024, is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 - Based on our review, nothing has come to our attention that causes us to believe that the interim financial report as of June 30, 2024, is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[47](index=47&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) [Condensed Consolidated Statement of Profit or Loss](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, the Group's revenue was **RMB4,281,228 thousand**, a **26.67% year-on-year decrease**; despite lower revenue, gross profit **increased by 14.72% to RMB407,686 thousand**, and profit for the period **grew by 26.73% to RMB152,658 thousand**, with basic earnings per share at **RMB0.13** Key Data from Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Indicator | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | Y-o-Y Change (%) | | :----------- | :------------------------ | :------------------------ | :----------- | | Revenue | 4,281,228 | 5,838,583 | -26.67% | | Cost of sales | (3,873,542) | (5,483,207) | -29.35% | | Gross profit | 407,686 | 355,376 | +14.72% | | Operating profit | 256,570 | 282,644 | -9.22% | | Profit before tax | 182,511 | 194,846 | -6.49% | | Profit for the period | 152,658 | 120,467 | +26.73% | | Profit attributable to equity holders of the Company | 152,538 | 140,352 | +8.68% | | Basic earnings per share | 0.13 (RMB) | 0.16 (RMB) | -18.75% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's profit for the period was **RMB152,658 thousand**, with total comprehensive income of **RMB145,136 thousand**, which included an exchange difference loss of **RMB7,522 thousand** arising from the translation of financial statements of overseas subsidiaries Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--------------- | :------------------------ | :------------------------ | | Profit for the period | 152,658 | 120,467 | | Exchange differences | (7,522) | (31,900) | | Total comprehensive income for the period | 145,136 | 88,567 | | Attributable to equity holders of the Company | 146,257 | 115,525 | | Attributable to non-controlling interests | (1,121) | (26,958) | [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets less current liabilities amounted to **RMB3,430,978 thousand**, with net assets of **RMB2,612,111 thousand**; non-current assets saw increases in construction in progress and right-of-use assets, while pledged deposits significantly rose among current assets; net current liabilities improved but remained negative Key Data from Condensed Consolidated Statement of Financial Position (As of June 30, 2024) | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--------------- | :------------------------- | :-------------------------- | | **Non-current assets** | | | | Property, plant and equipment | 2,042,770 | 2,031,326 | | Construction in progress | 458,220 | 351,296 | | Intangible assets | 973,299 | 973,689 | | **Current assets** | | | | Inventories | 1,443,835 | 1,590,875 | | Trade and other receivables | 563,185 | 413,884 | | Pledged deposits | 1,559,300 | 699,880 | | Cash and cash equivalents | 331,854 | 256,724 | | **Current liabilities** | | | | Bank and other borrowings | 3,544,224 | 2,725,108 | | Trade and other payables | 844,532 | 880,158 | | **Net current liabilities** | (572,314) | (741,768) | | **Net assets** | 2,612,111 | 2,436,554 | [Condensed Consolidated Statement of Changes in Equity](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Condensed Consolidated Statement of Changes in Equity](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2024, the Group's total equity increased from **RMB2,436,554 thousand** at the end of 2023 to **RMB2,612,111 thousand**; profit for the period was **RMB152,538 thousand**, alongside H share capital injection and the distribution of the 2023 final dividend - Total equity as of June 30, 2024, was **RMB2,612,111 thousand**, an increase from **RMB2,436,554 thousand** as of December 31, 2023[53](index=53&type=chunk) - Profit for the period attributable to equity holders of the Company was **RMB152,538 thousand**[53](index=53&type=chunk) - In the first half of 2024, **RMB111,443 thousand** was injected through the issuance of H shares[53](index=53&type=chunk) - Final dividends declared and approved amounted to **RMB80,826 thousand**[53](index=53&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Condensed Consolidated Statement of Cash Flows](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2024, the Group's net cash generated from operating activities was **RMB168,088 thousand**; net cash used in investing activities significantly increased to **RMB1,115,185 thousand**, primarily due to a substantial increase in net pledged deposits for borrowings; net cash generated from financing activities was **RMB1,027,061 thousand**, mainly from bank and other borrowings and proceeds from H share issuance Key Data from Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Indicator | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :------------------- | :------------------------ | :------------------------ | | Net cash generated from operating activities | 168,088 | 214,868 | | Net cash used in investing activities | (1,115,185) | (178,127) | | Net cash generated from financing activities | 1,027,061 | 19,149 | | Net increase in cash and cash equivalents | 79,964 | 55,890 | | Cash and cash equivalents at end of period | 331,854 | 230,191 | - Net cash used in investing activities significantly increased, primarily due to a net increase of **RMB848,000 thousand** in pledged deposits for borrowings[55](index=55&type=chunk) - Net cash generated from financing activities primarily stemmed from proceeds from bank and other borrowings of **RMB3,229,270 thousand** and net proceeds from H share issuance of **RMB111,443 thousand**[55](index=55&type=chunk) [Notes to the Unaudited Interim Financial Report](index=30&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) [Basis of Preparation](index=30&type=section&id=Basis%20of%20Preparation) This note outlines the basis of preparation for the interim financial report, which is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and complies with the disclosure requirements of the Listing Rules; the report has been reviewed and authorized for issue by the Audit Committee - This interim financial report has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and complies with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[56](index=56&type=chunk) - The report has been reviewed by the Audit Committee of Lingbao Gold Group Co., Ltd. and was authorized for issue on **August 28, 2024**[56](index=56&type=chunk) [Going Concern](index=31&type=section&id=Going%20Concern) As of June 30, 2024, the Group had net current liabilities and capital commitments, with most bank facilities requiring renewal within one year; the directors have assessed and deemed the going concern assumption appropriate, planning to mitigate liquidity pressure by drawing on unutilized bank facilities and actively negotiating renewals or refinancing to ensure continued operations for the next 12 months - As of June 30, 2024, the Group had net current liabilities of **RMB572,314,000** and capital commitments of **RMB344,032,000**[57](index=57&type=chunk) - Current liabilities included bank and other borrowings of **RMB3,544,224,000** repayable within one year[57](index=57&type=chunk) - The Group had uncommitted unutilized bank facilities of **RMB626,970,000** related to unsecured bank borrowings, which management will consider drawing upon to safeguard its financial position[57](index=57&type=chunk) - Management is actively negotiating with banks to renew or extend existing bank facilities to secure financing[57](index=57&type=chunk) [Changes in Accounting Policies](index=32&type=section&id=Changes%20in%20Accounting%20Policies) New and revised Hong Kong Financial Reporting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants, effective for the Group's current accounting period, have had no significant impact on how the Group presents its results and financial position for current or prior periods in this interim report - The Hong Kong Institute of Certified Public Accountants has issued the following new and revised Hong Kong Financial Reporting Standards and Interpretations, which are effective for the Group's current accounting period for the first time[59](index=59&type=chunk) - None of these developments have had a significant impact on how the Group presents its results and financial position for current or prior periods in this interim report[59](index=59&type=chunk) [Segment Reporting](index=33&type=section&id=Segment%20Reporting) The Group is organized and managed into four reportable segments based on business combinations (production processes, products, and services) and geographical areas: China gold mining and beneficiation, Kyrgyzstan gold mining and beneficiation, China gold and other metal smelting and refining, and China gold and other jewelry retail business - The Group is organized and managed into segments based on business combinations (production processes, products, and services) and geographical areas[60](index=60&type=chunk) - The Group identifies four reportable segments: China Mining, Kyrgyzstan Mining, Smelting, and Retail[61](index=61&type=chunk) [Segment Results, Assets and Liabilities](index=33&type=section&id=Segment%20Results%2C%20Assets%20and%20Liabilities) This section presents revenue, impairment, and other relevant financial information for each of the Group's reportable segments, used by the chief operating decision-maker for resource allocation and performance assessment - Information regarding the Group's reportable segments provided to the Group's chief operating decision-maker for the purpose of allocating resources and assessing segment performance for the period is set out below[61](index=61&type=chunk) [Reconciliation of Reportable Segment Revenue and Profit or Loss](index=34&type=section&id=Reconciliation%20of%20Reportable%20Segment%20Revenue%20and%20Profit%20or%20Loss) This section provides a reconciliation of reportable segment revenue and profit or loss to consolidated revenue and profit before tax, illustrating the Group's overall financial performance after inter-segment eliminations Reconciliation of Reportable Segment Revenue and Profit or Loss (Six Months Ended June 30) | Indicator | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :------------------- | :------------------------ | :------------------------ | | Reportable segment revenue | 5,074,098 | 7,115,844 | | Elimination of inter-segment revenue | (792,870) | (1,277,261) | | Consolidated revenue | 4,281,228 | 5,838,583 | | Reportable segment profit | 248,894 | 374,983 | | Elimination of inter-segment loss/(profit) | 49,810 | (114,645) | | Consolidated profit before tax | 182,511 | 194,846 | | Profit for the period | 152,658 | 120,467 | [Revenue](index=35&type=section&id=Revenue) The Group's principal activities are the mining, beneficiation, smelting, and sale of gold and other metal products in China; revenue represents the sales value of goods sold to customers, net of sales tax and value-added tax; in the first half of 2024, gold sales revenue amounted to **RMB4,232,540 thousand**, constituting the vast majority of total revenue - The Group's principal activities are the mining, beneficiation, smelting, and sale of gold and other metal products in China[64](index=64&type=chunk) - Revenue represents the sales value of goods sold to customers, net of sales tax and value-added tax[64](index=64&type=chunk) Revenue Breakdown (By Major Product Line, Six Months Ended June 30) | Product Line | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :------------- | :------------------------ | :------------------------ | | Sales of gold | 4,232,540 | 5,639,239 | | Sales of other metals | 81,098 | 191,375 | | Sales of jewelry | 2,347 | 6,777 | | Others | 4,535 | 32,834 | | Less: Sales tax and levies | (39,292) | (31,642) | | **Total Revenue** | **4,281,228** | **5,838,583** | [Profit Before Tax](index=35&type=section&id=Profit%20Before%20Tax) This section details the composition of the Group's profit before tax, including finance costs, net other (losses)/gains, and other items; in the first half of 2024, finance costs decreased, but realized and unrealized losses on financial instruments at fair value through profit or loss increased Finance Costs (Six Months Ended June 30) | Item | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :----------- | :------------------------ | :------------------------ | | Interest expense on bank loans | 28,546 | 66,286 | | Interest expense on lease liabilities | 392 | 814 | | Other borrowing costs | 45,121 | 19,186 | | **Total** | **74,059** | **86,286** | Net Other (Losses)/Gains (Six Months Ended June 30) | Item | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--------------------------------- | :------------------------ | :------------------------ | | Net realized and unrealized (losses)/gains on financial instruments at fair value through profit or loss | (20,324) | 908 | | Net foreign exchange gains | 5,732 | 49,793 | | Fines and penalties | (6,077) | — | | Gain on disposal of property, plant and equipment | 873 | — | | Others | (4,814) | (1,543) | | **Total** | **(24,680)** | **49,158** | [Income Tax in Condensed Consolidated Statement of Profit or Loss](index=37&type=section&id=Income%20Tax%20in%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section discloses the Group's income tax components, including current tax and deferred tax; Chinese subsidiaries are subject to a statutory tax rate of **25%**, with Habahe Huatai Gold Co., Ltd. enjoying a preferential tax rate of **15%**; Hong Kong subsidiaries made no provision for Hong Kong profits tax due to accumulated tax losses, and the corporate income tax rate in Kyrgyzstan is **0%** Income Tax (Six Months Ended June 30) | Item | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | | :--------------- | :------------------------ | :------------------------ | | Current tax — PRC income tax | | | | Provision for the period | 43,449 | 88,402 | | Over-provision in prior years | (19,335) | (6,453) | | Deferred tax | 5,739 | (7,570) | | **Total** | **29,853** | **74,379** | - The Company and its PRC subsidiaries are subject to income tax at a statutory rate of **25%**[66](index=66&type=chunk) - Habahe Huatai Gold Co., Ltd. enjoys a preferential income tax rate of **15%** from January 1, 2023[67](index=67&type=chunk) - The corporate income tax rate in Kyrgyzstan for 2024 is **0%**[67](index=67&type=chunk) [Earnings Per Share](index=37&type=section&id=Earnings%20Per%20Share) This section provides the calculation methods for basic and diluted earnings per share; for the six months ended June 30, 2024, basic earnings per share were **RMB0.1254**, and diluted earnings per share were the same as basic earnings per share - Basic earnings per share for the six months ended June 30, 2024, were calculated based on profit attributable to equity holders of the Company of **RMB152,538,000** and the weighted average number of ordinary shares outstanding of **1,216,246,829 shares**, amounting to **RMB0.1254**[67](index=67&type=chunk) - As there were no dilutive potential ordinary shares for the six months ended June 30, 2024, and 2023, diluted earnings per share for both periods were the same as basic earnings per share[67](index=67&type=chunk) [Property, Plant and Equipment and Construction in Progress](index=38&type=section&id=Property%2C%20Plant%20and%20Equipment%20and%20Construction%20in%20Progress) For the six months ended June 30, 2024, the Group acquired property, plant and equipment of **RMB10,099 thousand** and added construction in progress of **RMB207,136 thousand**; the disposal of property, plant and equipment generated a gain of **RMB873 thousand** - For the six months ended June 30, 2024, the Group acquired property, plant and equipment of **RMB10,099,000** and added construction in progress of **RMB207,136,000**, respectively[68](index=68&type=chunk) - The disposal of property, plant and equipment items with a total net book value of **RMB766,000** resulted in a gain on disposal of **RMB873,000**[68](index=68&type=chunk) [Intangible Assets](index=38&type=section&id=Intangible%20Assets) For the six months ended June 30, 2024, the Group added exploration and evaluation assets of **RMB25,706 thousand**; no intangible assets were disposed of during the period - For the six months ended June 30, 2024, the Group added exploration and evaluation assets of **RMB25,706,000**[68](index=68&type=chunk) - No intangible assets were disposed of for the six months ended June 30, 2024[68](index=68&type=chunk) [Inventories](index=38&type=section&id=Inventories) As of June 30, 2024, the Group's total inventories amounted to **RMB1,443,835 thousand**, primarily comprising raw materials, work in progress, and finished goods; the carrying amount of inventories sold recognized as an expense during the period was **RMB3,872,711 thousand** Inventories Composition (As of June 30, 2024) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :----------- | :------------------------- | :-------------------

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 4,281,228, a decrease of 26.6% compared to RMB 5,838,583 for the same period in 2023[2] - Gross profit increased to RMB 407,686, representing a gross margin of 9.5%, compared to RMB 355,376 in the previous year[2] - Operating profit for the period was RMB 256,570, down from RMB 282,644 in the prior year, reflecting a decrease of 9.2%[2] - Profit before tax was RMB 182,511, a decrease of 6.3% from RMB 194,846 in the same period last year[2] - Net profit attributable to equity shareholders was RMB 152,538, an increase of 8.6% compared to RMB 140,352 in the previous year[2] - Basic and diluted earnings per share were RMB 12.54, down from RMB 16.24 in the same period last year[2] - The company reported a total comprehensive income of RMB 145,136 for the period, compared to RMB 88,567 in the previous year[3] - Reported segment revenue for the six months ended June 30, 2024, was RMB 5,074,098,000, compared to RMB 7,115,844,000 for the same period in 2023[16] - The group’s reported segment profit for the six months ended June 30, 2024, was RMB 248,894,000, down from RMB 374,983,000 in the previous year[16] - Consolidated revenue for the six months ended June 30, 2024, was RMB 4,281,228, down 26.7% from RMB 5,838,583 in the prior year[17] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 4,003,292, an increase from RMB 3,871,596 as of December 31, 2023[4] - Current liabilities amounted to RMB 4,470,488, compared to RMB 3,706,322 at the end of the previous year[4] - The net asset value increased to RMB 2,612,111 from RMB 2,436,554 as of December 31, 2023[6] - As of June 30, 2024, the group reported net current liabilities of RMB 572,314,000 and capital commitments of RMB 344,032,000[8] - The group had cash and cash equivalents of RMB 331,854,000 and pledged deposits of RMB 1,559,300,000 as of June 30, 2024[8] - The group has uncommitted and undrawn bank financing of RMB 626,970,000 available as of June 30, 2024, which management may consider utilizing[10] - Total reported segment liabilities as of June 30, 2024, were RMB 6,962,114,000, an increase from RMB 5,208,742,000 as of December 31, 2023[16] - Total liabilities from bank and other borrowings reached RMB 3,844,529 thousand as of June 30, 2024, compared to RMB 2,853,108 thousand as of December 31, 2023, reflecting a 34.7% increase[34] Production and Sales - Gold sales revenue for the six months ended June 30, 2024, was RMB 4,232,540, a decrease of 25.0% from RMB 5,639,239 in the previous year[19] - Other metal sales revenue for the six months ended June 30, 2024, was RMB 81,098, down 57.6% from RMB 191,375 in the prior year[19] - The company produced approximately 7,950 kg (about 255,580 ounces) of gold bars in the first half of 2024, a decrease of about 5,068 kg (approximately 162,935 ounces) compared to the same period last year, resulting in a revenue decline of approximately 26.67% to about RMB 4,281,228 thousand[42] - The mining segment's total revenue for the period was approximately RMB 778,098 thousand, a decrease of about 37.56% from RMB 1,246,110 thousand in the same period last year[43] - The mining segment's profit for the period was approximately RMB 273,277 thousand, down about 32.38% from RMB 404,156 thousand in the same period last year[45] Investments and Expenditures - The company acquired property, plant, and equipment amounting to RMB 10,099,000 and added RMB 207,136,000 in construction in progress for the six months ended June 30, 2024[28] - The company invested RMB 95 million in resource exploration, safety, environmental protection, and technological innovation to enhance resource development efficiency and reduce safety risks[51] - The company plans to invest approximately RMB 200 million over three years in exploration at the Lingjin Mine to increase reserves and production in the Xiaoqinling gold mining area[52] - The group’s capital expenditure for the period was approximately RMB 288,056 thousand, an increase of about 42.9% compared to RMB 201,619 thousand for the same period in 2023[69] Operational Efficiency and Digital Transformation - The company has invested RMB 21 million in the digital transformation of mining operations, implementing unmanned control and unified information management across multiple systems[53] - The company launched a transaction management system integrated with financial systems to enhance efficiency and risk control[53] - The MES system has been implemented in the Nanshan and Xingyuan companies, with plans for further rollout in other subsidiaries to improve overall digitalization[53] - The company aims to achieve full-process digitalization and smart transformation in production, enhancing operational efficiency and management upgrades in the second half of the year[54] Environmental and Safety Initiatives - The company invested nearly RMB 7 million in environmental restoration, achieving the recovery of 470 acres of vegetation and planting 7,530 trees, in line with its commitment to sustainable development[54] - The company is committed to enhancing safety and environmental protection, investing RMB 41,820 thousand in safety measures and environmental projects in the first half of the year[60] Market Risks and Future Outlook - The group faces various market risks, including fluctuations in gold prices and interest rates, which may impact financial performance[64] - The board believes that the preparation of the interim financial report on a going concern basis is appropriate, assuming the success of the plans and measures in place[10] - The company aims to leverage favorable market conditions in the second half of the year to enhance production organization and cost control[50] - The group plans to strengthen management and optimize production to enhance profitability and reduce the debt ratio[62]

Financial Performance - For the fiscal year ending December 31, 2023, the group produced approximately 22,565 kg (about 725,476 ounces) of gold, a decrease of approximately 1,788 kg (about 57,478 ounces) or 7.34% compared to the previous year[17]. - The net profit for the fiscal year 2023 was approximately RMB 294,027 thousand, an increase from RMB 230,270 thousand in the fiscal year 2022[17]. - The basic earnings per share for the fiscal year 2023 was RMB 32.35, compared to RMB 27.8 in the fiscal year 2022[17]. - The total revenue for the smelting division in fiscal year 2023 was approximately RMB 10,618,737,000, an increase of about 4.87% from RMB 10,125,830,000 in the previous year[94]. - The group’s revenue was approximately RMB 10,533,681 thousand, an increase of about 4.02% compared to the previous year[113]. - The gross profit for fiscal year 2023 was RMB 969,901 thousand, up from RMB 785,101 thousand in the previous year, reflecting improved cost management and increased market prices[113]. - The mining segment's total revenue for the fiscal year 2023 was approximately RMB 2,385,419,000, an increase of about RMB 448,586,000 or 23.16% from RMB 1,936,833,000 in the previous year[75]. - The total sales quantity of gold bars for fiscal year 2023 was 22,790 kg, with a sales revenue of RMB 10,058,989,000, compared to 24,499 kg and RMB 9,565,030,000 in the previous year[97]. - The company reported a net loss of approximately RMB 63,131,000 in other losses for fiscal year 2023, an increase of about 30.0% from RMB 48,561,000 in the previous year[98]. - The company’s other income for fiscal year 2023 was approximately RMB 48,292,000, an increase of about 5.68% from RMB 45,697,000 in the previous year, mainly due to increased government subsidies[101]. Resource Management - As of December 31, 2023, the total gold reserves and resources amounted to approximately 137.40 tons (4,417,346 ounces)[17]. - The company aims to strengthen its core gold business and enhance its competitive edge through innovation and talent acquisition in 2024[9]. - The company plans to implement a "go out" strategy, targeting two to three investment projects that align with its strategic goals to increase resource reserves[10]. - Future strategies include expanding mining production scale and continuing acquisitions of potential gold resources[41]. - The total metal quantity from domestic mines is 1,846 kg, with a controlled quantity of 43,834 kg and an inferred quantity of 57,765 kg[45]. - The total metal quantity from foreign mines is 6,137 kg, with a controlled quantity of 49,971 kg and an inferred quantity of 85,581 kg[45]. - The company operates 35 mining and exploration rights across various regions, with a total exploration area of 216.51 square kilometers[60]. - The total production of gold concentrate (containing gold) and refined gold for the fiscal year 2023 was 5,478 kg, an increase of 57 kg or 1% compared to the previous year[90]. Operational Efficiency - The company is focusing on the integration of new generation information technology with mining operations to improve overall economic efficiency[9]. - The company is enhancing its governance structure and operational management systems to improve efficiency and problem-solving capabilities[11]. - The company reported a stable and healthy development trend in 2023, focusing on improving management techniques and operational efficiency[22]. - The company has implemented a problem-solving approach, categorizing issues and creating a list to ensure accountability and timely completion[22]. - The revenue from the mining division in mainland China increased by approximately 26.9% year-on-year, benefiting from improved management and production organization[90]. - The mining area revenue distribution for 2023 was approximately 78% from Henan, 14% from Xinjiang, 7% from Kyrgyzstan, and 1% from Inner Mongolia[75]. Corporate Governance - The company has established a clear corporate governance procedure to ensure transparency and protect the interests of shareholders and employees[162]. - The company has adopted the corporate governance code as per the listing rules, demonstrating a commitment to governance standards[188]. - The board of directors maintained a 100% attendance rate in all 14 meetings held during the year[170]. - The company has established various internal control systems to ensure high standards of corporate governance[170]. - The board is responsible for reviewing and supervising compliance with legal and regulatory policies[170]. - The company emphasizes the importance of independent judgment in board meetings, particularly in matters involving potential conflicts of interest[190]. - The audit committee is composed entirely of non-executive or independent non-executive directors, with a professional accountant serving as the chair[199]. - The management team regularly submits business and financial reports to the board[170]. Financial Position - In 2023, the total assets of the company amounted to RMB 6,836,150,000, a decrease from RMB 6,903,903,000 in 2022, representing a decline of approximately 1.0%[58]. - The company's cash and cash equivalents increased to RMB 256,724,000 in 2023, up from RMB 173,010,000 in 2022, reflecting a growth of approximately 48.4%[58]. - The total equity attributable to shareholders rose to RMB 2,662,151,000 in 2023, compared to RMB 2,104,393,000 in 2022, marking an increase of about 26.4%[58]. - As of December 31, 2023, the group's total equity was RMB 2,436,554 thousand, up from RMB 1,898,582 thousand a year earlier[116]. - The current ratio improved to 80.0% as of December 31, 2023, compared to 72.5% at the end of the previous year[116]. - The debt ratio decreased to 41.7% as of December 31, 2023, down from 53.2% a year earlier[135]. - The group had unutilized bank financing of RMB 291,000 thousand available to support operations as of December 31, 2023[117]. - The company aims to enhance its financing capabilities and reduce debt ratios through various measures, including obtaining additional long-term loans secured by its properties[103]. Employee Development - The company has established a technical education training center to enhance the skills of its employees and management staff[6]. - The average number of employees for the fiscal year 2023 was 4,103, with a gender distribution of 77.97% male and 22.03% female[146]. - The company has a competitive compensation and training program for its employees, emphasizing the importance of human resources[146]. - The company is committed to continuous professional development for directors and senior management[170].

智通财经APP获悉，黄金股全线走高，截至发稿，灵宝黄金(03330)涨22.82%，报2.96港元；招金矿业 (01818)涨8.87%，报10.68港元；山东黄金(01787)涨4.72%，报15.96港元；紫金矿业(02899)涨3%，报 15.8港元。 消息面上，标普称，由于商业房地产风险，将五家美国地区银行的展望从稳定调整为负面，同时芝加哥 联储主席表达支持今年三次降息观点，市场持续看好美联储6月降息的前景，关键美债收益率周三回 落，带动金价上行。此外，地缘冲突扰动也推动避险情绪，国际金价当天上涨，创收盘历史新高。截至 收盘，纽约商品交易所4月黄金期价收于每盎司2191.7美元，涨幅为0.67%。 ...

Financial Performance - For the fiscal year ending December 31, 2023, the total revenue was RMB 10,533,681,000, an increase of 4.0% from RMB 10,126,458,000 in 2022[3] - The gross profit for the year was RMB 969,901,000, representing a gross margin of approximately 9.2%[3] - Operating profit increased to RMB 581,649,000, up 31.6% from RMB 441,817,000 in the previous year[3] - The net profit attributable to equity shareholders was RMB 318,082,000, a significant increase of 32.4% compared to RMB 240,222,000 in 2022[3] - Earnings per share for the year were RMB 32.35, compared to RMB 27.80 in the previous year, reflecting a growth of 16.5%[3] - Total comprehensive income for the year 2023 was RMB 282,561,000, an increase of 88.0% compared to RMB 150,386,000 in 2022[19] - The net profit for the fiscal year 2023 was approximately RMB 294,027,000, compared to RMB 230,270,000 for the fiscal year 2022, representing an increase of about 27.7%[84] - Basic earnings per share for 2023 were RMB 32.35, up from RMB 27.80 in 2022, reflecting an increase of 16.5%[34] Revenue Segments - The revenue from gold sales was RMB 10,177,658,000, which accounted for the majority of total revenue[10] - Revenue from the domestic mining segment increased by approximately 68.3% in fiscal year 2023 compared to fiscal year 2022, driven by management reforms and enhanced production organization[87] - The mining segment's total revenue for the fiscal year 2023 was approximately RMB 2,385,419,000, an increase of about RMB 448,586,000 or 23.16% compared to the previous year[112] - The total revenue from the smelting segment for fiscal year 2023 was approximately RMB 10,618,737,000, an increase of about 4.87% compared to the previous year[115] Assets and Liabilities - The company reported a net current liability of RMB 741,768,000, with total bank and other borrowings amounting to RMB 2,853,108,000[7] - The net asset value increased to RMB 2,436,554,000 in 2023 from RMB 1,898,582,000 in 2022, representing a growth of 28.3%[21] - Non-current liabilities rose to RMB 693,274,000 in 2023, compared to RMB 507,000,000 in 2022, marking a 36.7% increase[21] - The total equity attributable to equity shareholders increased to RMB 2,662,151,000 in 2023 from RMB 2,104,393,000 in 2022, a rise of 26.4%[21] - The balance of bank and other borrowings decreased to RMB 2,853,108,000 in 2023 from RMB 3,671,749,000 in 2022, a reduction of 22.3%[45] Dividends and Shareholder Returns - A proposed final dividend of RMB 0.065 per share, amounting to approximately RMB 79,076,000, has been approved by the board[15] - The company did not declare or pay any dividends for the fiscal year 2023, consistent with 2022[59] - The board proposed a final dividend of RMB 0.065 per share (tax included) for the fiscal year ending December 31, 2023, compared to no dividend in the previous fiscal year[181] Operational Highlights - The company produced approximately 22,565 kg (about 725,476 oz) of gold bars in the fiscal year 2023, a decrease of about 1,788 kg (approximately 57,478 oz) or 7.34% compared to the previous year[84] - The company completed the production of gold concentrate and refined gold totaling 5,478 kg, an increase of 57 kg or 1% year-on-year[87] - The company recorded a total of 11,066 kg of gold bars produced through gold concentrate processing in fiscal year 2023, compared to 11,641 kg in fiscal year 2022, reflecting a decrease of about 4.9%[89] Tax and Impairment - The company reported a provision for current tax of RMB 142,176,000 for the year, compared to RMB 57,288,000 in the previous year, indicating a significant increase[28] - The company recognized an impairment loss of RMB 9,106,000 in 2022, which was not present in 2023, indicating improved asset performance[42] - The company reported a significant impairment loss of RMB 40,047,000 on intangible assets in 2023, down from RMB 48,160,000 in 2022[54] Governance and Compliance - The company has complied with the Corporate Governance Code as per the listing rules and confirmed no breaches during the fiscal year[161] - The audit committee reviewed and confirmed the annual performance without any disagreements regarding the accounting treatment adopted by the company[185] Future Outlook - The company plans to strengthen governance and accelerate the "digital intelligence" transformation to enhance operational management[117] - The group plans to enhance its core competitiveness by integrating new information technology with mining operations and focusing on exploration and resource expansion in 2024[142] - The group aims to reduce its debt ratio and enhance financing capabilities through various measures, including securing additional long-term loans at lower interest rates[149]

智通财经APP获悉，灵宝黄金(03330)续涨超8%，创阶段新高，截至发稿，涨8.87%，报2.70港元，成交额1845万港元。 国信证券指出，全球风险因素累计叠加美联储加息周期步入尾声的预期下，预计将推动金价中长期稳步上行，进一步激发居民保值性消费需求。同时企业自身不断进行渠道开拓和产品设计投入，利好市场份额提升及销售规模扩大。 中信证券认为，2月29日以来，黄金快速拉升主要是海外数据走弱、美联储官员偏鸽讲话叠加情绪面扰动引发的，当前部分技术指标已显示黄金进入超涨区间。展望后市，黄金价格或已接近年内高点，美国经济“软着陆”预期下，避险情绪难大幅抬升，黄金或难有大行情。美联储降息预期落地前，黄金或仍有小幅空间，预计下半年仍高位震荡，关注美国“二次通胀”等超预期风险对黄金的扰动。 ...

Share Capital and Shareholders - The company's total share capital as of June 30, 2023, was 864,249,091 shares, consisting of 566,975,091 domestic shares (65.60%) and 297,274,000 H-shares (34.40%)[3] - Following the issuance of 319,772,164 H-shares on August 18, 2023, the company's registered share capital increased to 1,184,021,255 shares, comprising 566,975,091 domestic shares and 617,046,164 H-shares[3] - Non-executive director Mr. Wang Guanran holds 185,339,000 domestic shares (32.69% of domestic shares) and 319,772,164 H-shares (107.57% of H-shares) through controlled entities, representing 21.45% and 37.00% of total share capital respectively[6][7][8] - Daren Investment Management Group holds 185,339,000 domestic shares (32.69% of domestic shares) and 319,772,164 H-shares (107.57% of H-shares), representing 21.45% and 37.00% of total share capital respectively[10][11] - Lingbao State-owned Assets Management Co., Ltd. holds 73,540,620 domestic shares, representing 12.97% of domestic shares and 8.51% of total share capital[10] - Shanghai Zhengxi Investment Management Partnership holds 57,000,000 domestic shares, representing 10.05% of domestic shares and 6.60% of total share capital[10] - Daren Investment's shareholding increased to approximately 42.7% after the completion of the subscription on August 18, 2023[95] - The company's registered share capital increased to 1,184,021,255 shares following the completion of the subscription on August 18, 2023[119] - The net proceeds from the subscription were approximately HKD 265,600,000 (equivalent to RMB 244,328,000)[119] Financial Performance - The company did not hold any significant investments or make any significant acquisitions or disposals of subsidiaries or associates as of June 30, 2023[1] - The company has no plans for significant acquisitions, investments, or capital assets beyond those disclosed in the report[1] - No interim dividend was declared for the six months ended June 30, 2023[13] - The company's capital expenditure for the period was approximately RMB 201.619 million, an increase of 113.98% compared to RMB 94.222 million in the same period of 2022[31] - The company had a net current liability of RMB 1.111 billion and capital commitments of RMB 432 million as of June 30, 2023[30] - The company had 4,117 employees as of June 30, 2023, compared to 4,176 employees as of December 31, 2022[32] - Employee costs, including director remuneration, were approximately RMB 164 million for the period, compared to RMB 305 million as of December 31, 2022[32] - The company's external auditor, KPMG, reviewed the unaudited interim financial report for the six months ended June 30, 2023, in accordance with Hong Kong Standard on Review Engagements 2410[18] - The company maintains a prudent treasury and funding policy, with surplus funds deposited as cash in licensed banks and financial institutions[33] - The company has no significant contingent liabilities as of June 30, 2023[32] - The company's audit committee consists of four independent non-executive directors and one non-executive director[18] - The company's articles of association were revised following the completion of the H share issuance, and the new articles were uploaded to the HKEX and the company's website[20] - Revenue for the six months ended June 30, 2023, was RMB 5,838,583 thousand, an increase from RMB 3,882,803 thousand in the same period last year[126] - Gross profit for the six months ended June 30, 2023, was RMB 355,376 thousand, compared to RMB 411,512 thousand in the same period last year[126] - Net profit attributable to equity shareholders of the company for the six months ended June 30, 2023, was RMB 140,352 thousand, down from RMB 179,361 thousand in the same period last year[126] - Total liabilities as of June 30, 2023, were RMB 886,076 thousand, up from RMB 838,739 thousand as of December 31, 2022[121] - The company's total payable debts and notes as of June 30, 2023, were RMB 705,269 thousand, up from RMB 651,440 thousand as of December 31, 2022[121] - The company's total current liabilities as of June 30, 2023, were RMB 270,677 thousand, up from RMB 248,192 thousand as of December 31, 2022[121] - The company's total non-current liabilities as of June 30, 2023, were RMB 455,161 thousand, up from RMB 384,122 thousand as of December 31, 2022[121] - Net profit for the six months ended June 30, 2023, was RMB 120,467 thousand, a decrease from RMB 180,902 thousand in the same period last year[128] - Total comprehensive income for the six months ended June 30, 2023, was RMB 88,567 thousand, down from RMB 135,694 thousand in the previous year[128] - Property, plant, and equipment as of June 30, 2023, amounted to RMB 1,781,503 thousand, slightly lower than RMB 1,814,683 thousand as of December 31, 2022[129] - Inventory as of June 30, 2023, increased to RMB 1,464,755 thousand from RMB 1,280,758 thousand as of December 31, 2022[129] - Cash and cash equivalents as of June 30, 2023, stood at RMB 215,739 thousand, up from RMB 173,010 thousand as of December 31, 2022[129] - Total assets minus current liabilities as of June 30, 2023, were RMB 2,633,597 thousand, compared to RMB 2,405,582 thousand as of December 31, 2022[129] - Non-current liabilities as of June 30, 2023, increased to RMB 646,420 thousand from RMB 507,000 thousand as of December 31, 2022[131] - Equity attributable to the company's shareholders as of June 30, 2023, was RMB 2,219,946 thousand, up from RMB 2,104,393 thousand as of December 31, 2022[131] - Non-controlling interests as of June 30, 2023, were RMB (232,769) thousand, compared to RMB (205,811) thousand as of December 31, 2022[131] - Total equity increased to RMB 2,219,946 thousand as of June 30, 2023, up from RMB 2,104,393 thousand at the beginning of the year[133] - Net profit for the six months ended June 30, 2023, was RMB 140,352 thousand, compared to RMB 60,861 thousand for the same period in 2022[133] - Cash generated from operating activities increased to RMB 214,868 thousand for the six months ended June 30, 2023, from RMB 171,778 thousand in the same period in 2022[135] - Cash used in investing activities was RMB 167,687 thousand for the six months ended June 30, 2023, compared to RMB 98,239 thousand in the same period in 2022[135] - Cash and cash equivalents at the end of June 30, 2023, stood at RMB 230,191 thousand, slightly down from RMB 232,025 thousand at the end of June 30, 2022[135] - The company's retained earnings increased to RMB 1,048,828 thousand as of June 30, 2023, up from RMB 910,405 thousand at the end of 2022[133] - Exchange reserve decreased to RMB (71,355) thousand as of June 30, 2023, from RMB (46,528) thousand at the end of 2022[133] - The company's total comprehensive income for the six months ended June 30, 2023, was RMB 115,525 thousand, compared to RMB 32,777 thousand for the same period in 2022[133] - The company's non-controlling interests decreased to RMB (232,769) thousand as of June 30, 2023, from RMB (205,811) thousand at the end of 2022[133] - The company's share capital remained unchanged at RMB 172,850 thousand as of June 30, 2023[133] - The company has net current liabilities of RMB 1,111,000,000 and capital commitments of RMB 432,000,000 as of June 30, 2023[138] - The company's operating cash flow for the six months ended June 30, 2023 was RMB 215,000,000[139] - The company's cash and cash equivalents, bank deposits with maturity over three months, and pledged deposits amounted to RMB 216,000,000, RMB 14,000,000, and RMB 1,430,000,000 respectively as of June 30, 2023[139] - The company's major shareholder, Daren Investment Management Group, completed the subscription of 319,772,164 H shares on August 18, 2023, raising approximately HKD 266,000,000[140] - Daren Investment has committed to providing necessary financial support to ensure the company's continued operation for at least 12 months from June 30, 2023[140] - The company has uncommitted and undrawn bank facilities of RMB 273,000,000 related to unsecured bank borrowings as of June 30, 2023[140] - The company's management is actively negotiating with banks to draw down undrawn bank facilities and renew or extend existing bank facilities[140] - The company's financial statements are prepared on a going concern basis, assuming the success of the aforementioned plans and measures[141] - The company's financial statements for the six months ended June 30, 2023 are unaudited but have been reviewed by KPMG[146] - The company has four reportable segments: Mining - China, Mining - Kyrgyzstan, Smelting, and Retail[149][150][151][152] - Revenue from external customers for the six months ended June 30, 2023, was RMB 5,838,583 thousand, compared to RMB 3,882,803 thousand in the same period last year[156] - Revenue from gold sales increased to RMB 5,639,239 thousand in 2023 from RMB 3,782,195 thousand in 2022[159] - Revenue from other metal sales rose to RMB 191,375 thousand in 2023 from RMB 86,586 thousand in 2022[159] - Reported segment profit for the six months ended June 30, 2023, was RMB 374,983 thousand, down from RMB 399,701 thousand in 2022[156] - Impairment losses on right-of-use assets amounted to RMB 17,519 thousand in 2022, with no impairment in 2023[160] - Finance costs increased to RMB 86,286 thousand in 2023 from RMB 58,759 thousand in 2022[160] - Income tax expense for the six months ended June 30, 2023, was RMB 74,379 thousand, up from RMB 62,213 thousand in 2022[161] - The company's subsidiary, Huatai Gold, enjoys a preferential income tax rate of 15% as a high-tech enterprise[162] - Basic earnings per share for the six months ended June 30, 2023, were RMB 140,352,000, compared to RMB 179,361,000 for the same period in 2022[163] - The company acquired property, plant, and equipment worth RMB 35,627,000 and increased construction in progress by RMB 126,080,000 during the six months ended June 30, 2023[165] - Inventory as of June 30, 2023, totaled RMB 1,464,755,000, up from RMB 1,280,758,000 as of December 31, 2022[166] - The company added exploration and evaluation assets and mining rights worth RMB 3,507,000 and RMB 61,367,000, respectively, during the six months ended June 30, 2023[171] - The cost of inventories sold during the six months ended June 30, 2023, was RMB 5,389,049,000, compared to RMB 3,483,563,000 for the same period in 2022[173] - Accounts receivable and other receivables (net of impairment) as of June 30, 2023, amounted to RMB 123,213,000, down from RMB 172,342,000 as of December 31, 2022[175] - Cash and cash equivalents as of June 30, 2023, were RMB 215,739,000, up from RMB 173,010,000 as of December 31, 2022[180] - Short-term bank and other borrowings increased to RMB 3,606,050 thousand as of June 30, 2023, compared to RMB 3,571,749 thousand as of December 31, 2022[181] - Long-term bank and other borrowings increased to RMB 170,000 thousand as of June 30, 2023, compared to RMB 100,000 thousand as of December 31, 2022[181] - Total bank and other borrowings amounted to RMB 3,776,050 thousand as of June 30, 2023, up from RMB 3,671,749 thousand as of December 31, 2022[181] - Bank and other borrowings due within one year or on demand stood at RMB 3,606,050 thousand as of June 30, 2023, compared to RMB 3,571,749 thousand as of December 31, 2022[182] - Bank and other borrowings due after one year but within two years increased to RMB 170,000 thousand as of June 30, 2023, from RMB 100,000 thousand as of December 31, 2022[182] - Secured bank and other borrowings amounted to RMB 1,803,000 thousand as of June 30, 2023, up from RMB 1,705,390 thousand as of December 31, 2022[182] - Guaranteed bank and other borrowings stood at RMB 829,990 thousand as of June 30, 2023, compared to RMB 826,359 thousand as of December 31, 2022[182] - Unsecured bank and other borrowings were RMB 1,143,060 thousand as of June 30, 2023, slightly up from RMB 1,140,000 thousand as of December 31, 2022[182] - The maximum guarantee amount provided by Daren Investment was RMB 995,000 thousand as of June 30, 2023[185] - The maximum guarantee amount provided by Tongbai Xingyuan Mining Co., Ltd. was RMB 190,000 thousand as of June 30, 2023[185] Mining and Production - Total gold reserves and resources as of June 30, 2023, were approximately 138.47 tons (4,451,811 ounces)[56] - Mining segment revenue increased by 24.81% to approximately RMB 1,246,110 thousand compared to the same period in 2022[59] - Gold concentrate production increased by 99 kg to 2,556 kg, while doré gold production decreased by 8 kg to 368 kg[59] - Gold bar production increased by 3,847 kg (123,712 ounces) to 13,018 kg (418,555 ounces) compared to the same period in 2022[62] - Overall revenue increased by 50.37% to approximately RMB 5,838,583 thousand compared to the same period in 2022[62] - Net profit for the period was approximately RMB 120,467 thousand, compared to RMB 180,902 thousand in the same period in 2022[62] - Basic earnings per share were RMB 0.16, compared to RMB 0.21 in the same period in 2022[62] - Mining segment revenue from China was approximately RMB 1,177,612 thousand, and from Kyrgyzstan was approximately RMB 68,498 thousand[59] - The mining segment's overall production and sales volume increased by approximately 3.21% compared to the same period in 2022[62] - The mining division's total profit for the period was approximately RMB 404.156 million, an increase of 14.93% compared to the same period in 2022[65] - Domestic mining profit in China increased by 49.14% year-on-year, reaching approximately RMB 519.190 million, driven by improved production efficiency and increased output[65] - The Kyrgyzstan mining division recorded a loss of RMB 115.034 million due to inventory write-downs of RMB 99.721 million, compared to a profit of RMB 3.549 million in the same period last year[66] - Gold concentrate and doré production in the first half of 2023 reached 2,682 kg, an increase of 169 kg, representing a growth of 6.73% year-on-year[65] - The smelting division's total revenue increased by 50.49% to approximately RMB 5.862 billion, driven by higher production and sales of gold ingots[69] - The smelting division recorded a loss of RMB 28.707 million, compared to a profit of RMB 48.162 million in the same period last year, due to gold price fluctuations[70] - The company's overall revenue increased by 50.37% to approximately RMB 5.839 billion, primarily due to increased gold ingot production from purchased doré[71] - Gross profit margin decreased to 6.09% from 10.6% in the previous year, impacted by inventory write-downs in the Kyrgyzstan mining division and losses in the smelting division[72] - Gold ingot sales volume reached 13,018 kg, with an average selling price of RMB

Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 5,838,583,000, an increase of 50.4% compared to RMB 3,882,803,000 for the same period in 2022[13] - The gross profit for the same period was RMB 355,376,000, down 13.6% from RMB 411,512,000 year-on-year[13] - The net profit for the period was RMB 120,467,000, a decrease of 33.4% from RMB 180,902,000 in the previous year[13] - The total comprehensive income for the period was RMB 88,567,000, compared to RMB 135,694,000 in the same period last year, reflecting a decline of 34.7%[3] - The basic and diluted earnings per share for the period were RMB 16.2, down from RMB 20.8 in the same period last year, reflecting a decrease of 22.1%[13] - The company reported a financing cost of RMB 86,286,000, which increased from RMB 58,759,000 in the previous year, indicating a rise in financial expenses[13] - The company reported a debt ratio of 52.28% as of June 30, 2023, slightly down from 53.2% on December 31, 2022[159] Cash and Liquidity - The company's cash and cash equivalents as of June 30, 2023, amounted to RMB 215,739,000, an increase from RMB 173,010,000 at the end of the previous year[15] - The company has uncommitted undrawn bank financing of RMB 273,000,000 as of June 30, 2023, and is actively negotiating with banks for access to this financing[32] - The company aims to generate sufficient cash inflows to meet liquidity needs for at least the next twelve months[21] - The company has a significant uncertainty regarding its ability to continue as a going concern due to potential difficulties in repaying bank loans and meeting other liquidity needs[8] - As of June 30, 2023, the company reported net current liabilities of RMB 1,111,044,000 and capital commitments of RMB 432,000,000[19] Inventory and Production - The company’s inventory as of June 30, 2023, was RMB 1,464,755,000, an increase from RMB 1,280,758,000 in the previous year, indicating a rise in stock levels[15] - The group produced approximately 13,018 kg (about 418,555 ounces) of gold bars in the first half of 2023, an increase of about 3,847 kg (approximately 123,712 ounces) compared to the same period last year, reflecting a production increase of approximately 42%[83] - The total production of gold concentrate and refined gold reached 2,682 kg in the first half of 2023, an increase of 169 kg or 6.73% year-on-year[140] - The company reported a decrease in gold production of approximately 8 kg to about 368 kg, while gold concentrate production increased by approximately 99 kg to about 2,556 kg during the period[61] Shareholder and Financing Activities - Major shareholder Da Ren Investment Management Group completed the subscription of 319,772,164 H-shares, raising approximately RMB 266,000,000[21] - The company issued 319,772,164 H shares at a subscription price of HKD 0.85 per share, which will represent approximately 27.0% of the enlarged share capital post-issue[55] - The company is committed to ensuring continued operations through financial support from its shareholder, Darin Investment Management Group, for the 12-month period from July 1, 2023, to June 30, 2024[196] Operational Challenges and Strategies - The company is facing challenges in refinancing due to tightening market liquidity and economic volatility[19] - The company has established a cost control team to address high cost issues and improve operational performance[86] - The company plans to reduce its debt ratio and enhance financing capabilities by obtaining additional secured long-term loans at lower interest rates[115] - The company plans to enhance management control, promote technological innovation, and ensure steady improvement in production and operations in the second half of 2023[68] Market and Risk Factors - The company faces various market risks, including fluctuations in gold prices and other commodity values, which impact revenue and profit[117] - The company emphasizes the importance of safety and environmental risk management to prevent major accidents and ensure long-term development[113] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, committing to compliance[103] - The company has adhered to the corporate governance code during the reporting period[133]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 10,126,458 thousand, a significant increase from RMB 5,330,611 thousand in 2021, representing an increase of approximately 89.5%[3] - Gross profit for the year was RMB 785,101 thousand, compared to RMB 587,810 thousand in the previous year, reflecting a growth of about 33.5%[3] - Operating profit increased to RMB 441,817 thousand from RMB 305,326 thousand, marking an increase of approximately 44.7%[3] - Net profit for the year was RMB 230,270 thousand, up from RMB 117,639 thousand in 2021, indicating an increase of around 96.0%[3] - Basic and diluted earnings per share rose to RMB 27.8 from RMB 15.0, representing an increase of 85.3%[3] - Total comprehensive income for the year was RMB 150,386 thousand, compared to RMB 137,175 thousand in 2021, reflecting an increase of about 9.6%[9] - The total profit from the mining segment for the fiscal year 2022 was approximately RMB 511,646 thousand, an increase of about 6.1% from the fiscal year 2021[95] - The group recorded a profit attributable to equity shareholders of approximately RMB 240,222 thousand for fiscal year 2022, compared to RMB 130,026 thousand in fiscal year 2021[104] - The group’s revenue for the fiscal year 2022 was RMB 10,184,864 thousand, a significant increase from RMB 5,347,877 thousand in the previous year, reflecting a strong overall sales volume growth[125] Revenue Sources - In 2022, the company's revenue from gold sales reached RMB 9,614,599,000, a significant increase from RMB 4,977,778,000 in 2021, representing an increase of approximately 93%[32] - The mining segment's revenue contribution ratio was approximately 26.4% for fiscal year 2022, down from 32.6% in fiscal year 2021[95] - The mining revenue from domestic operations was approximately RMB 1,769,349,000, up from RMB 1,419,094,000 in FY2021, reflecting a growth of about 24.7%[116] - The smelting segment recorded total revenue of approximately RMB 10,125,830,000 in FY2022, a significant increase of about 94.1% from RMB 5,217,835,000 in the previous year[120] Assets and Liabilities - Non-current assets totaled RMB 3,644,298 thousand, slightly down from RMB 3,768,035 thousand in the previous year[5] - Current liabilities increased to RMB 4,498,321 thousand from RMB 4,760,092 thousand, showing a decrease of approximately 5.5%[5] - As of December 31, 2022, the company had net current liabilities of RMB 1,239,000,000 and total bank and other borrowings of RMB 3,672,000,000, indicating a need for careful cash flow management[29] - The total bank and other borrowings reached RMB 3,671,749,000 in 2022, a 3.6% increase from RMB 3,542,876,000 in 2021[51] - The group had total outstanding bank and other borrowings of approximately RMB 3,671,749 thousand as of December 31, 2022, with a debt ratio of 53.2%[142] Cash Flow and Liquidity - The company has a strong liquidity position, with unutilized bank financing of RMB 251,000,000 available to support ongoing operations[29] - As of December 31, 2022, the group had cash and cash equivalents of RMB 1,598,910 thousand, up from RMB 1,523,506 thousand as of December 31, 2021[128] - The group plans to enhance internal management and optimize cost reduction measures to increase gold bar production and improve cash flow[130] Dividends and Shareholder Returns - The company did not declare or pay any dividends for the year 2022, consistent with the previous year[25] - The board does not recommend the payment of any final dividend for the fiscal year 2022, consistent with the previous fiscal year[171] Operational Challenges and Risks - The company reported a net loss of RMB 48,160,000 related to impairment of property, plant, and equipment, reflecting operational challenges in its cash-generating unit[42][43] - The company faces various market risks, including fluctuations in gold prices and other commodity values, as well as interest rate and foreign exchange rate changes[149] - The company faces risks related to fluctuations in debt interest rates, which may increase financing costs if the People's Bank of China raises rates[176] - Currency fluctuations may adversely affect the company's net asset value, earnings, and any declared dividends when converted to Hong Kong dollars[177] Future Plans and Strategies - The company plans to continue expanding its market presence and product offerings in the gold and metal sectors, leveraging its certification as a standard gold bar producer by the Shanghai Gold Exchange[32] - The company plans to focus on strengthening its core gold business and promoting technological innovation in 2023[123] - The group aims to enhance resource exploration and integration efforts, accelerate key exploration projects, and improve production efficiency in the coming year[100] Employee and Governance - The average number of employees in the fiscal year 2022 was 4,176, with a focus on providing competitive compensation and training programs[180] - The audit committee has reviewed and confirmed the annual performance without any disagreements regarding the accounting treatment adopted by the company[183] - The company will issue its annual report later, which will include detailed disclosures on employee demographics and corporate governance[181]