Xinjiang Xinxin Mining Industry Co., Ltd.* 新疆 新 鑫 礦 業 股 份 有 限 公 司 (於中華人民共和國註冊成立的股份有限公司) 股份代號 : 3833 20 ct 赞度用 Xinjiang Xinxin Mining Industry Co., Ltd * 新 疆 新 鑫 礦 業 股 份 有 限 公 司 目錄 19 僱員及福利 公司資料 2 4 公司業績 5 資源量和儲量 7 管理層討論與分析 15 董事權益 17 股本及股息 20 企業管治 | --- | --- | |-------|----------------------------------| | | | | | | | 21 | 合併及公司資產負債表（未經審計） | | 24 | 合併及公司利潤表（未經審計） | | 26 | 合併及公司現金流量表（未經審計） | | 28 | 合併股東權益變動表（未經審計） | | 29 | 公司股東權益變動表（未經審計） | | 30 | 財務報表附註（未經審計） | | 196 | 財務報表補充資料（未經審計） | 新疆新鑫礦業股份有限公司 1 公司資料 ...

Financial Performance - The company recorded consolidated operating revenue of RMB 1,065.3 million for the six months ended June 30, 2024, representing a 39.5% increase compared to RMB 763.7 million for the same period last year[5]. - The net profit attributable to shareholders was RMB 145.9 million, a decrease of 14.4% from RMB 170.4 million in the same period last year[5]. - Basic earnings per share attributable to shareholders decreased to RMB 0.066, down from RMB 0.077 in the previous year, a decline of RMB 0.011 per share[5]. - The board does not recommend the distribution of an interim dividend for 2024[5]. - The company recorded a revenue of approximately RMB 1,065.3 million, an increase of about 39.5% compared to RMB 763.7 million in the same period last year[10]. - The net profit for the period was approximately RMB 134.0 million, a decrease of about 21.3% from RMB 170.3 million year-on-year[10]. - The total revenue from main business reached RMB 1,054,384 thousand, a significant increase from RMB 756,431 thousand in the previous year[16]. - The sales volume of electrolytic nickel was 4,378 tons, with a revenue of RMB 531,526 thousand, accounting for 50.4% of total revenue[16]. - The revenue from cathode copper increased by approximately 137.5% to RMB 209,000 thousand, with a sales volume of 3,008 tons[18]. - The gross profit margin for main business was approximately 30.2%, a decrease of about 17.1 percentage points compared to the previous year[18]. Production and Sales - The production of electrolytic nickel reached 4,757 tons, a significant increase of approximately 211.3% from 1,528 tons in the previous year[10]. - The sales of electrolytic nickel were 4,378 tons, up about 35.3% from 3,236 tons year-on-year[10]. - The average selling price of electrolytic nickel (excluding tax) was approximately RMB 124,230 per ton, a decrease of about 29.7% from RMB 176,697 per ton in the previous year[10]. - The average price of electrolytic nickel on the London Metal Exchange was USD 17,750 per ton, down approximately 26.2% from USD 24,045 per ton in the same period last year[9]. - The average price of cathode copper on the Shanghai Futures Exchange was RMB 74,539 per ton, an increase of about 9.8% from RMB 67,862 per ton year-on-year[9]. Assets and Liabilities - As of June 30, 2024, the total assets of the company amounted to RMB 7,763,389,129.03, a decrease of 0.94% from RMB 7,837,578,222.31 as of December 31, 2023[54]. - The company's current assets totaled RMB 2,201,763,304.37, an increase of 1.5% compared to RMB 2,164,018,052.13 at the end of 2023[54]. - The total liabilities decreased to RMB 2,212,520,305.88, down 4.5% from RMB 2,317,069,810.85 at the end of 2023[55]. - The company's inventory decreased to RMB 1,159,756,174.46, a decline of 9.7% from RMB 1,284,579,340.20 as of December 31, 2023[54]. - The company's long-term borrowings decreased to RMB 414,500,000.00, down from RMB 563,700,000.00 as of December 31, 2023[55]. Cash Flow - The company's net cash inflow from operating activities was approximately RMB 166.9 million, an increase of RMB 94.5 million from the previous year[22]. - The net cash flow from operating activities for the six months ended June 30, 2024, was RMB 166,868,964.18, a significant increase from RMB 72,410,717.61 for the same period in 2023, representing a growth of 130.5%[59]. - Total cash inflow from operating activities reached RMB 849,840,024.40, compared to RMB 551,515,195.06 in the previous year, indicating a year-over-year increase of 54.1%[59]. - The company reported a total cash outflow from operating activities of RMB 682,971,060.22, up from RMB 479,104,477.45 in the prior year, reflecting a rise of 42.5%[59]. - Cash and cash equivalents at the end of the period stood at RMB 635,278,496.45, a decrease from RMB 708,669,372.28 as of June 30, 2023[60]. Investments and Expenditures - Capital expenditures for the six months ended June 30, 2024, totaled RMB 80.0 million, with 65.3% allocated to the Kalatongke mining operations[33]. - The group plans to invest approximately RMB 31.2 million to enhance mining and processing capabilities at Kalatongke, and RMB 80.0 million at the Fukang smelting plant for refining capacity improvements[34]. - The investment income for the period was approximately RMB 11.4 million, compared to an investment loss of RMB 16.4 million in the previous year[21]. Shareholder Information - As of June 30, 2024, the company's director, Zhou Chuan You, holds 480,924,000 shares, representing 15.65% of the total share capital[37]. - The major shareholder, Xinjiang Nonferrous Metals Industry (Group) Co., Ltd., holds 885,204,000 shares, representing 40.06% of the total share capital[43]. - The total issued share capital is 2,210,000,000 shares, with 1,259,420,000 domestic shares (56.99%) and 950,580,000 H-shares (43.01%)[42]. Governance and Compliance - The company is committed to complying with the corporate governance code and has adhered to all relevant provisions during the reporting period[48]. - The board consists of nine members, with an attendance rate of 85% at three meetings held during the period[49]. - The supervisory board, comprising five members, held three meetings with an attendance rate of 87%[50]. - The company has adopted a standard code for securities trading, which has been followed by all directors and senior management during the reporting period[51]. Risk Management - The group is exposed to commodity price fluctuations, which may significantly impact revenue and comprehensive income[25]. - The group faces foreign exchange risks as all transactions are conducted in RMB, which may affect operating performance[26]. - The company continues to focus on improving its internal controls and risk assessment as part of its governance strategy[52]. Accounting Policies - The financial report covers the six-month period ending June 30, 2024, with amounts presented in Renminbi (RMB)[72]. - Significant provisions for bad debts are recognized when the amount exceeds 1 million RMB and accounts for over 10% of total bad debt provisions[72]. - The accounting treatment for mergers under common control measures the net assets at book value, with adjustments made to capital reserves or retained earnings as necessary[74]. - For mergers not under common control, the acquisition cost and identifiable net assets are measured at fair value on the purchase date, with any excess recognized as goodwill[75]. - The group recognizes expected credit losses based on the probability-weighted present value of cash flow differences for financial assets measured at amortized cost and those measured at fair value through other comprehensive income[83]. Taxation - The corporate income tax rate for Xinjiang New Xin Mining Co., Ltd. is 15%[149]. - The corporate income tax rate for Xinjiang Monxi Mining Co., Ltd. is 20%[151]. - The corporate income tax rate for Beijing Xinding Shunze High-Tech Co., Ltd. is 25%[151]. - The value-added tax (VAT) rates applicable to the group's main product sales are 13% and 9%[152]. - The resource tax for Karatongke Mining is 4% on the sales amount of taxable products[153]. Inventory Management - The total inventory as of June 30, 2024, was RMB 1,187,604,378.84, with a provision for inventory impairment of RMB 27,848,204.38[197]. - The inventory breakdown included raw materials valued at RMB 105,053,831.65, work in progress at RMB 253,869,002.21, semi-finished products at RMB 389,146,789.09, and finished goods at RMB 439,534,755.89[197]. - The total provision for inventory impairment increased by RMB 10,802,597.63 during the period, with the total provision as of June 30, 2024, being RMB 27,848,204.38[198].

Financial Performance - The group achieved operating revenue of approximately RMB 2,049.8 million in 2023, a decrease of about 28.4% compared to 2022; net profit was approximately RMB 162.3 million, down from RMB 743.2 million in 2022; earnings per share were approximately RMB 0.07, compared to RMB 0.34 in 2022[24]. - The company's net profit attributable to shareholders for 2023 was RMB 162,343 thousand, with a basic and diluted earnings per share of RMB 0.07[1]. - The company reported a total profit of RMB 209,954,055.76 for 2023, down from RMB 833,461,862.72 in 2022, marking a decrease of 74.8%[131]. - The consolidated net profit for 2023 was approximately RMB 162.3 million, down about 78.2% from RMB 743.2 million in 2022[197]. - Net profit for the year 2023 was RMB 162,342,576.31, a significant decrease of 78.16% from RMB 743,236,444.48 in 2022[131]. Production and Sales - The company produced 7,513 tons of electrolytic nickel in 2023, a decrease of approximately 32.2% from 2022[22]. - The production of cathode copper was 5,768 tons, representing a decline of about 38.0% year-over-year[22]. - The group produced 66,517 tons of nickel-copper mixed concentrate and 30,338 tons of nickel concentrate in 2023[26]. - The sales volume of electrolytic nickel decreased by approximately 39.2% to 7,747 tons in 2023 from 12,752 tons in 2022[125]. - The sales volume of cathode copper decreased by approximately 49.8% to 4,908 tons in 2023 from 9,775 tons in 2022[125]. Pricing and Costs - The average price of electrolytic nickel on the London Metal Exchange was $21,550 per ton, a decrease of approximately 16.8% compared to 2022[18]. - The average price of cathode copper was $8,698 per ton, down about 1.2% from the previous year[18]. - The average selling price of electrolytic nickel was approximately RMB 142,601 per ton, a decrease of about 13.7% compared to 2022; the average selling price of cathode copper was approximately RMB 60,334 per ton, an increase of about 1.2% compared to 2022[23]. - The average sales cost for electrolytic nickel in 2023 was approximately RMB 82,113 per ton, an increase of about 10.2% compared to 2022, while the average sales cost for cathode copper rose by approximately 33.4% to RMB 69,164 per ton[50]. Resource and Reserves - The company holds 100% ownership of four nickel-copper mines, including the Karatungku mine and three others in Hami, Xinjiang[12]. - As of December 31, 2023, the total resource amount for the Karatungku nickel-copper mine was 27,830,298 tons, with a nickel grade of 0.57%[14]. - The total resource amount for the three Hami mines was 63,564,741 tons, with a nickel grade of 0.46%[14]. - The total estimated reserves as of December 31, 2023, for the Karatungku mine were 17,669,405 tons, with a nickel grade of 0.64%[14]. Investments and Future Plans - The group plans to invest RMB 178.1 million in 2024 for the automation and process optimization projects at the Karatunk mining operation[68]. - The company plans to implement more flexible and proactive marketing strategies in 2024 to adapt to market uncertainties and enhance operational efficiency[58]. - For 2024, the group plans to produce 11,000 tons of electrolytic nickel, an increase of approximately 29.4% compared to 2023, and 9,900 tons of cathode copper, an increase of approximately 45.0%[66]. - The company aims to enhance overall management and operational efficiency in 2024 to ensure stable production levels across its mining and refining processes[66]. Cash Flow and Financial Position - The total assets of the company as of 2023 amounted to RMB 7,837,578 thousand, while total liabilities were RMB 2,317,070 thousand[1]. - As of December 31, 2023, the total cash and cash equivalents of the group amounted to RMB 483.7 million, a decrease from RMB 621.5 million in 2022[98]. - The total borrowings of the group were approximately RMB 768.1 million, down from RMB 996.5 million in 2022, resulting in a net debt of RMB 284.4 million, compared to RMB 375.0 million in 2022[98]. - The current ratio decreased to 1.8 in 2023 from 2.2 in 2022[100]. Operational Efficiency and Challenges - The group maintained stable production and operations in 2023, with no significant operational difficulties reported, despite a temporary production halt due to technical upgrades[27]. - The decline in sales volume of key products was mainly due to national safety production guidance and temporary production suspension for technical upgrades[198]. - Production has resumed since June 2023 after the completion of national safety production guidance and technical upgrades[198]. Community and Environmental Initiatives - The company actively participates in community support and public welfare initiatives, focusing on education and health[152]. - The group achieved its safety production goals in 2023, adhering strictly to national environmental protection regulations[30].

Revenue and Sales Performance - The company's operating revenue for electrolytic nickel in 2023 was approximately RMB 1,104.8 million, a decrease of about 47.6% compared to 2022, primarily due to a decline in sales prices and reduced production and sales volume [9]. - The operating revenue for cathode copper in 2023 was approximately RMB 296.1 million, a decrease of about 49.2% compared to 2022 [10]. - The operating revenue for copper concentrate in 2023 was approximately RMB 95.2 million, a decrease of about 1.4% compared to 2022 [11]. - The group's operating revenue for 2023 was approximately RMB 2,049.8 million, a decrease of about 28.4% compared to RMB 2,863.7 million in 2022 [21]. - The sales volume of electrolytic nickel in 2023 was approximately 7,747 tons, a decrease of about 39.2% from 12,752 tons in 2022 [21]. - The sales volume of cathode copper in 2023 was approximately 4,908 tons, down about 49.8% from 9,775 tons in 2022 [10]. Profitability and Margins - The company's gross profit for its main business in 2023 was approximately RMB 616.0 million, a decrease of about RMB 653.4 million from RMB 1,269.5 million in 2022 [13]. - The gross profit margin for the main business in 2023 was approximately 31.4%, down about 12.6 percentage points from 44.0% in 2022 [13]. - The consolidated net profit for 2023 was approximately RMB 162.3 million, down approximately 78.2% from RMB 743.2 million in 2022 [21]. - The net profit attributable to ordinary shareholders for 2023 was RMB 162,664 thousand, compared to RMB 744,654 thousand in 2022, reflecting a decrease of about 78.1% [105]. - Gross margin for the year was approximately 33.9%, a decrease of about 9.3 percentage points from 43.2% in 2022; net profit margin was approximately 7.9%, down about 18.1 percentage points from 26.0% in 2022 [51]. Cash Flow and Investments - The net cash inflow from operating activities for 2023 was approximately RMB 558.0 million, a decrease of about RMB 309.0 million from RMB 867.0 million in 2022 [24]. - The net cash outflow from investing activities was approximately RMB 94.1 million, primarily due to the purchase of fixed assets and other long-term assets [24]. - The net cash outflow from financing activities was approximately RMB 601.6 million, with cash inflow mainly from bank loans of about RMB 770.0 million [24]. - The company completed investments of approximately RMB 42.4 million in 2023 for capacity enhancement and quality improvement projects in Xinjiang [17]. - The group completed investments of approximately RMB 204.2 million in 2023 for the improvement of mining and production capabilities [153]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 7,837,578 thousand, slightly up from RMB 7,829,460 thousand in 2022 [60]. - Total liabilities as of December 31, 2023, were RMB 2,317,070 thousand, an increase from RMB 2,139,794 thousand in 2022 [59]. - Current assets totaled RMB 2,164,018 thousand, a decrease from RMB 2,222,608 thousand in 2022 [57]. - Non-current assets totaled RMB 5,673,560 thousand, an increase from RMB 5,606,852 thousand in 2022 [57]. - The total equity decreased from approximately RMB 5,689.7 million at the end of 2022 to approximately RMB 5,520.5 million in 2023, primarily due to dividend distribution of RMB 331.5 million and profit of RMB 162.3 million [75]. Production and Operational Challenges - The group experienced a significant decline in sales volume due to national safety production guidance and temporary production suspension for technical upgrades [22]. - The group faced production challenges in the first half of 2023 due to safety upgrades and technical renovations, but production resumed in June 2023 [169]. - The company has eliminated the impact of temporary production halts due to technical upgrades at the Kalatongke mining project, allowing for a return to normal production activities [187]. Future Outlook and Plans - In 2024, the company plans to produce 11,000 tons of electrolytic nickel, an increase of approximately 29.4% compared to the production plan for 2023 [187]. - The company also plans to produce 9,900 tons of cathode copper in 2024, which represents a 45.0% increase from the 2023 production plan [187]. - The company expects an increase in domestic consumption of electrolytic nickel and cathode copper in 2024 due to market demand [175]. - The company aims to enhance overall management levels and operational efficiency in 2024, ensuring stable production levels for key products like electrolytic nickel and cathode copper [186]. Corporate Governance and Shareholder Matters - The company emphasizes the importance of effective corporate governance to protect shareholder interests and enhance shareholder value [177]. - The audit committee held three meetings during the reporting year with a 100% attendance rate, reviewing the company's annual performance announcement and audit plans [179]. - The company will distribute dividends in RMB to domestic shareholders and in HKD to H-share holders, with the exchange rate determined one week prior to the annual general meeting [194]. - The company has suspended the handling of shareholder registration procedures [197].

Financial Performance - The group's consolidated revenue for the first half of 2023 was RMB 763.7 million, a significant decrease of 56.1% compared to RMB 1,740.8 million in the same period last year[4]. - Net profit attributable to shareholders for the period was RMB 170.4 million, down 72.0% from RMB 609.6 million in the previous year[4]. - Basic earnings per share attributable to shareholders decreased to RMB 0.077, compared to RMB 0.276 in the same period last year, a decline of RMB 0.199[17]. - Operating profit for the same period was approximately $211.28 million, down 68.5% from $670.49 million year-over-year[75]. - Total comprehensive income for the six months ended June 30, 2023, was RMB 170,302,841.34, a decrease of 72.0% compared to RMB 609,677,399.46 for the same period in 2022[76]. - The company reported a total comprehensive loss of RMB 90,686,939.52 for the six months ended June 30, 2023[138]. Sales and Production - The sales volume of electrolytic nickel was approximately 3,236 tons, a decrease of about 59.9% from approximately 8,075 tons in the same period last year[24]. - The sales volume of cathode copper was approximately 1,452 tons, down about 71.0% from approximately 5,014 tons in the previous year[24]. - The group aims to complete its annual production target of 8,500 tons of electrolytic nickel and 6,829 tons of cathode copper by the end of 2023[25]. - The sales volume of electrolytic nickel decreased by 59.9% compared to the same period last year, while the sales volume of cathode copper decreased by 71.0%[39]. Pricing - The average selling price of electrolytic nickel was RMB 176,697 per ton, an increase of 10.1% compared to RMB 160,506 per ton in the same period last year[40]. - The average selling price of cathode copper was RMB 60,872 per ton, a decrease of 4.7% compared to RMB 63,887 per ton in the same period last year[40]. Financial Position - The current ratio as of June 30, 2023, was 1.9, down from 2.2 as of December 31, 2022[45]. - The debt-to-capital ratio was 5.6% as of June 30, 2023, compared to 6.18% as of December 31, 2022[45]. - As of June 30, 2023, the total assets of the company amounted to approximately 7.94 billion, an increase from 7.83 billion as of December 31, 2022[72]. - The company's total liabilities as of June 30, 2023, were not disclosed but are critical for assessing financial health[72]. - The company's total liabilities increased to approximately $2.41 billion as of June 30, 2023, compared to $2.14 billion at the end of 2022, reflecting a growth of 12.5%[73]. - The company's total equity attributable to shareholders decreased to approximately $5.51 billion as of June 30, 2023, down from $5.67 billion at the end of 2022, a decrease of 2.8%[73]. Investments and Expenditures - The company plans to invest approximately RMB 87.5 million in mining expansion projects and environmental upgrades[53]. - The capital expenditure plan for exploration projects is approximately RMB 14.1 million[54]. - The company had no significant investments or acquisitions planned as of June 30, 2023[55]. - The company’s total construction in progress amounted to RMB 1,757,481,603.79, with an increase of RMB 88,832,044.32 during the current period[154]. - The company has made significant investments in environmental projects, including a desulfurization project valued at RMB 5,060,344.44, which is part of its commitment to sustainability[179]. Corporate Governance and Compliance - The company is committed to maintaining high corporate governance standards to protect shareholder interests[68]. - Employee social insurance contributions include 16% for pension, 6%-9% for medical insurance, and 12% for housing fund, reflecting compliance with local regulations[67]. Market and Operational Strategy - The company is actively participating in market expansion and new product development strategies, although specific details were not disclosed in the provided content[72]. - The company is focusing on improving operational efficiency and exploring new market opportunities to recover from the recent financial downturn[76]. Accounting and Financial Reporting - The financial statements were prepared in accordance with the accounting standards issued by the Ministry of Finance and reflect the financial position as of June 30, 2023[123]. - The company’s accounting policies include methods for estimating expected credit losses on receivables and inventory valuation[145]. - The company’s financial statements are based on the assumption of going concern[146].

Operating Performance - The company's operating performance significantly declined, with sales of electrolytic nickel at approximately 3,236 tons, down 59.9% from about 8,075 tons in the same period last year, and cathode copper sales at approximately 1,452 tons, down 71.0% from about 5,014 tons[4][10]. - Total revenue for the six months ended June 30, 2023, was approximately $763.74 million, a decrease of 56.2% compared to $1.74 billion for the same period in 2022[63]. - Operating profit for the same period was approximately $211.28 million, down 68.5% from $670.49 million year-over-year[63]. - Net profit for the six months ended June 30, 2023, was approximately $170.30 million, a decline of 72.0% compared to $609.68 million in the prior year[63]. - The production of electrolytic nickel decreased by 76.0% to 1,528 tons, compared to 6,369 tons in the previous year[165]. - The production of cathode copper fell by 80.4% to 917 tons, down from 4,669 tons year-on-year[165]. - The production decline was primarily due to national safety production guidance affecting normal operations since February 2023[178]. Financial Position - As of June 30, 2023, the total assets increased by 1.4% to RMB 7,938 million compared to December 31, 2022, while shareholders' equity decreased by 2.8% to RMB 5,530 million due to dividend distributions[22]. - The total cash and cash equivalents amounted to RMB 708.7 million as of June 30, 2023, compared to RMB 621.5 million on December 31, 2022, while total borrowings increased to RMB 1,037.8 million from RMB 996.5 million[23]. - The net debt (total borrowings minus cash and cash equivalents) was RMB 329.1 million, down from RMB 375 million as of December 31, 2022, with a capital debt ratio of 5.6%[23]. - The company's total liabilities as of June 30, 2023, were not explicitly stated but are implied to be managed effectively given the increase in total assets[60]. - Total liabilities as of June 30, 2023, amounted to approximately $2.41 billion, an increase of 12.5% from $2.14 billion at the end of 2022[61]. - Current liabilities totaled approximately $1.30 billion, up 27.8% from $1.02 billion at the end of 2022[61]. - Non-current liabilities decreased slightly to approximately $1.11 billion from $1.12 billion at the end of 2022[61]. - The company's total equity attributable to shareholders decreased to approximately $5.51 billion from $5.67 billion at the end of 2022, reflecting a decline of 2.8%[61]. - The company's total liabilities at the end of the reporting period were RMB 4,254,754,857.49[121]. Cash Flow and Investments - For the six months ending June 30, 2023, the company's net cash flow from operating activities was RMB 72,410,717.61, a significant decrease from RMB 624,826,237.62 for the same period in 2022[107]. - The total cash inflow from operating activities for the first half of 2023 was RMB 551,515,195.06, compared to RMB 1,355,994,568.43 in the previous year, indicating a decline of approximately 59.3%[107]. - The company reported a net cash outflow from investing activities of RMB 4,033,531.88 for the first half of 2023, contrasting with a cash inflow of RMB 35,127,286.48 in the same period of 2022[108]. - The company raised RMB 400,000,000.00 through borrowings in the first half of 2023, a decrease from RMB 450,000,000.00 in the same period of 2022[108]. - The net cash flow from financing activities for the first half of 2023 was RMB 18,821,499.68, compared to a net outflow of RMB 253,816,615.58 in the previous year[108]. - The company plans to fund its capital projects entirely through internal operating funds[47]. Revenue and Pricing - The average price of electrolytic nickel futures on the London Metal Exchange for the period was USD 24,045 per ton, a decrease of 13.7% from USD 27,867 per ton in the same period last year[163]. - The average sales price of electrolytic nickel was RMB 176,697 per ton, an increase of 10.1% year-on-year, despite a sales volume decline of 59.9% to 3,236 tons[170]. - The average spot price of electrolytic nickel in the Shanghai market was RMB 194,095 per ton, down 4.7% from RMB 203,565 per ton in the previous year[184]. - The average selling price of cathode copper was RMB 60,872 per ton, a decrease of 4.7% from RMB 63,887 per ton year-on-year[186]. Future Plans and Strategies - The group aims to achieve its full-year production targets of 8,500 tons of electrolytic nickel and 6,829 tons of cathode copper by the end of 2023, following the resumption of production from April to June 2023[5]. - The group plans to enhance its marketing strategies to achieve higher product sales prices by analyzing market trends for electrolytic nickel and cathode copper in the second half of 2023[12]. - The group plans to produce 6,972 tons of electrolytic nickel and 5,912 tons of cathode copper in 2023, although these plans may be adjusted based on market conditions[187]. - The company plans to invest approximately RMB 59.7 million in further improving the selection engineering project in Xinjiang Aksu and Hami[68]. Research and Development - Research and development expenses for the six months ended June 30, 2023, were approximately $12.53 million, significantly lower than $62.99 million in the same period last year[63]. - Research and development expenses decreased by 79.4% to RMB 13 million, mainly due to project experiments being suspended during maintenance[196]. Corporate Governance - The company has fully complied with the corporate governance code as per the listing rules during the reporting period[79]. - The company has not entered into any significant contracts that would create a direct or indirect substantial interest for its directors or supervisors during the reporting period[70].

Production and Sales - In 2022, the company produced 11,083 tons of electrolytic nickel, a decrease of 8.43% compared to 2021, and 9,302 tons of cathode copper, a decrease of 15.68%[35] - The sales volume of cathode copper in 2022 was 9,775 tons, a decrease of 11.55% from 11,051 tons in 2021[41] - The company sold 12,752 tons of electrolytic nickel in 2022, a growth of 16.53% year-on-year, while sales of cathode copper decreased by 11.55% to 9,775 tons[146] Revenue and Profit - The company's total revenue for electrolytic nickel reached RMB 2,066,783 thousand, representing a 73.1% increase, while other products generated revenue of RMB 80,405 thousand, accounting for 2.8% of total revenue[40] - The company's operating revenue for 2022 reached RMB 2,863,725 thousand, representing a 20.1% increase from RMB 2,382,408 thousand in 2021[67] - The total profit for 2022 was RMB 833,462 thousand, compared to RMB 570,184 thousand in 2021, reflecting a growth of 46.2%[108] - The net profit attributable to ordinary shareholders for the year ended December 31, 2022, was RMB 744,654 thousand, compared to RMB 515,585 thousand in 2021, reflecting a significant increase[18] Costs and Expenses - The average selling cost of electrolytic nickel in 2022 was RMB 74,542 per ton, an increase of 17.36% year-on-year, while the average selling cost of cathode copper was RMB 51,866 per ton, up 19.12% from 2021[36] - The average sales price of cathode copper in 2022 was RMB 59,605 per ton, down 2.35% from RMB 61,041 per ton in 2021[41] - The gross profit from the main business for 2022 was RMB 1,210.9 million, an increase of RMB 335.3 million from RMB 875.6 million in 2021[42] - The company's gross profit margin improved to 43.2% in 2022, compared to 38.3% in 2021[67] - Research and development expenses increased to RMB 94,094 thousand, a rise of 36.2% from RMB 69,089 thousand in 2021[67] Assets and Liabilities - The company's total current assets as of December 31, 2022, were RMB 2,222,608 thousand, an increase from RMB 2,185,681 thousand in 2021[2] - The company's total assets as of December 31, 2022, were RMB 7,829,460 thousand, an increase from RMB 7,393,500 thousand in 2021[68] - The total liabilities decreased to RMB 2,139,794 thousand in 2022 from RMB 2,447,071 thousand in 2021, a reduction of 12.6%[69] - The net debt of the group was RMB 375.0 million as of December 31, 2022, down from RMB 1,072.4 million in 2021, resulting in a capital liability ratio of 6.18% compared to 17.82% in 2021[180] Cash Flow - Cash and cash equivalents increased to RMB 626,512 thousand in 2022, up from RMB 425,750 thousand in 2021, reflecting a growth of 47.2%[68] - Cash inflow from operating activities in 2022 was RMB 867.0 million, an increase of RMB 184.0 million compared to RMB 683.0 million in 2021[157] - The net cash outflow from investing activities was RMB 16.4 million, primarily due to the construction of fixed assets[157] Investments and Future Plans - The company completed an investment of RMB 38.9 million in the Xinjiang Yakesi project to enhance production capacity and ore quality in 2022[38] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[67] - The company plans to produce 8,500 tons of electrolytic nickel in 2023, a decrease of 10.5% from 2022, and 6,829 tons of cathode copper, down 26.0% from 2022[165] Shareholder Information - The company plans to distribute a final dividend of RMB 0.15 per share, pending approval at the annual general meeting[110] - Shareholders' equity increased from RMB 4,946.4 million in 2021 to RMB 5,689.7 million in 2022, primarily due to profits earned in 2022[179] Impairments and Provisions - The company reported a net impairment loss of RMB 99.5 million in 2022, significantly higher than RMB 3.5 million in 2021[155] - The group recognized an impairment provision of RMB 65.8 million for fixed assets planned for elimination due to energy consumption standards not being met, as part of an overall upgrade and transformation plan[200] Market Conditions and Strategy - The group expects domestic consumption of electrolytic nickel and cathode copper to continue to grow in 2023, driven by the Chinese government's projected GDP growth of approximately 5%[188] - The company's operational strategy includes ongoing improvements in mining activities and environmental restoration, with future liabilities expected to be adjusted based on mining impacts[30]

Financial Performance - The company reported a revenue of RMB 1,740.8 million for the six months ended June 30, 2022, a significant increase of 50.4% compared to RMB 1,157.1 million in the same period last year[7]. - Net profit attributable to shareholders reached RMB 609.6 million, up 164.0% from RMB 230.9 million in the previous year[7]. - The gross profit for the period was RMB 790 million, compared to RMB 380 million in the same period last year, mainly due to higher average selling prices and sales volumes of electrolytic nickel and cathode copper[34]. - The total comprehensive income for the period was RMB 609,677,399.46, compared to RMB 228,749,779.05 in the prior year, showcasing strong overall financial performance[103]. - The company's operating profit was RMB 670,489,246.61, significantly higher than RMB 273,510,814.26 reported in the same period of 2021, indicating improved operational efficiency[100]. Sales and Production - The sales volume of electrolytic nickel was 8,075 tons, an increase of approximately 37.4% compared to 5,879 tons in the same period last year[7]. - The sales volume of cathode copper was 5,014 tons, which is a 15.8% increase from 4,331 tons in the previous year[7]. - The company plans to produce 3,131 tons of electrolytic nickel and 4,559 tons of cathode copper in the second half of 2022, subject to market conditions[23]. Pricing and Market Conditions - The average selling price for electrolytic nickel was RMB 160,506 per ton, up 33.7% from RMB 120,055 per ton in the previous year[7]. - The average selling price for cathode copper was RMB 63,887 per ton, an increase of 6.6% compared to RMB 59,938 per ton in the same period last year[7]. - The average LME price for electrolytic nickel was USD 27,867 per ton, a 59.1% increase from USD 17,521 per ton in the same period last year[20]. - The average price for cathode copper on the LME was USD 9,742 per ton, a 7.5% increase from USD 9,064 per ton year-on-year[20]. Expenses and Investments - Research and development expenses amounted to RMB 63 million, a new expenditure compared to no R&D expenses in the same period last year[37]. - The company spent approximately RMB 3.4 million on mineral exploration activities during the period[24]. - Total capital expenditure for the period was RMB 480,794,000, with the largest portion (85.53%) allocated to the transfer of mining rights at the Huangshan West No. 30 mine[58]. Assets and Liabilities - As of June 30, 2022, total assets increased by 9.6% year-on-year to RMB 8,100 million, while shareholders' equity rose by 12.4% to RMB 5,561 million[42]. - The total interest-bearing debt was RMB 1,219.15 million, slightly down from RMB 1,234 million at the end of the previous year[45]. - Total liabilities were RMB 2,539,592,755.62, which is an increase from RMB 2,447,070,478.58, marking a rise of about 3.8%[98]. Shareholder Information - The company does not recommend the distribution of an interim dividend for 2022[9]. - Major shareholders include Xinjiang Nonferrous Metals Group with 885,204,000 shares (40.06% of total share capital) and Shanghai Yilian with 282,896,000 shares (12.80%)[78][79]. - As of June 30, 2022, the total issued share capital was 2,210,000,000 shares, with 1,451,000,000 domestic shares (65.66%) and 759,000,000 H-shares (34.34%)[77]. Corporate Governance - The company fully complied with the corporate governance code as per the listing rules during the reporting period[85]. - The board of directors consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors, with a meeting attendance rate of 90%[86]. - The company appointed a new chairman of the board, Mr. Guo Quan, effective June 2, 2022, following the resignation of Mr. Zhang Guohua[89]. Financial Management - Net financial expenses decreased from RMB 38 million to RMB 26 million, attributed to adjustments in financing scale and loan rates based on cash flow and market interest rate changes[38]. - Investment income increased to RMB 62 million from RMB 25 million in the previous year, primarily due to higher investment income from joint ventures[39]. - The company reduced its financial expenses, with net financial costs decreasing to RMB 26,070,827.19 from RMB 37,685,730.50 in the previous year, reflecting better cost management[100]. Cash Flow - The net cash inflow from operating activities was RMB 624.8 million, an increase of RMB 323.1 million compared to the previous year, driven by higher sales revenue from key products[42]. - The total cash inflow from operating activities was RMB 1,321,884,956.60, compared to RMB 852,987,391.90 in the previous year, indicating a year-over-year increase of about 55%[105]. - The net cash flow from investment activities was RMB 35,127,286.48, compared to a net outflow of RMB 30,806,266.06 in the previous year, indicating a significant turnaround[108].

Resource and Production - As of December 31, 2021, the total resource amount for the four nickel-copper mines is estimated at 95,297,324 tons, with a total metal content of 481,838 tons of copper and 472,917 tons of nickel[27]. - The estimated reserves for the four nickel-copper mines as of December 31, 2021, are 46,577,131 tons, containing 284,401 tons of copper and 259,660 tons of nickel[27]. - The estimated resource amount for the two vanadium mines is 26,569,500 tons, with a total of 242,315 tons of V2O5[28]. - The company produced 12,103 tons of electrolytic nickel in 2021, a 2.40% increase from 2020[39]. - The production of cathode copper reached 11,031 tons, which is a 0.27% increase from the previous year[39]. - In 2021, the company produced a total of 1,000,120 tons of ore from the Kalatongke mine and 1,471,931 tons from Xinjiang Yakes and Hami Jubao[43]. Financial Performance - In 2021, the company achieved operating revenue of RMB 2,382.4 million, an increase of 28.51% compared to 2020[40]. - The net profit for 2021 was RMB 514.3 million, up from RMB 179.2 million in 2020, marking a significant improvement[40]. - The comprehensive profit attributable to shareholders was RMB 515.6 million in 2021, compared to RMB 151.8 million in 2020[40]. - The total revenue from the main business in 2021 was RMB 2,301.1 million, with sales of electrolytic nickel contributing RMB 1,367.4 million (59.4% of total revenue) and cathode copper contributing RMB 674.6 million (29.3% of total revenue)[44]. - The gross profit margin improved to 38.23% in 2021, up from 23.58% in 2020[40]. - The net cash inflow from operating activities was RMB 683.0 million in 2021, an increase of RMB 330.7 million from RMB 352.3 million in 2020[68]. Market and Sales - The average sales price of electrolytic nickel in 2021 was RMB 124,957 per ton, a 17.73% increase from 2020[40]. - The average sales price of cathode copper rose to RMB 61,041 per ton, reflecting a 47.24% increase compared to the previous year[40]. - The company sold 10,943 tons of electrolytic nickel in 2021, a decrease of 3.37% compared to 2020[40]. - The company plans to produce 9,500 tons of electrolytic nickel in 2022, a decrease of 19.5% compared to 2021, and 9,228 tons of cathode copper, a decrease of 18.2%[49]. Investments and Future Plans - The company invested approximately RMB 100.3 million in 2021 to enhance the Kalatongke mining operations, including a daily mining capacity of 3,400 tons and a daily selection capacity of 3,000 tons[46]. - In 2022, the company plans to invest RMB 175.9 million to further improve the Kalatongke mining operations and optimize processes[52]. - The company plans to invest RMB 19.1 million in 2022 for geological exploration and resource control, focusing on existing major mining areas[53]. - The company expects the domestic non-ferrous metal market to continue growing in 2022, driven by an anticipated GDP growth of approximately 5.5% in China[48]. Governance and Management - The company has established a strategic committee for ESG initiatives[22]. - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors[112]. - The company has maintained compliance with the corporate governance code throughout the fiscal year 2021[109]. - The board is responsible for overall leadership and governance, including deciding on the company's operational plans and investment proposals[110]. - The company has adopted a diversity policy for the board, considering factors such as gender, age, and professional experience in director appointments[113]. Environmental, Social, and Governance (ESG) - The company is focused on sustainable development and has established a governance structure for Environmental, Social, and Governance (ESG) that includes a Board and an ESG Working Group to oversee and manage ESG-related risks[176]. - The company has identified key ESG issues through stakeholder feedback and surveys, focusing on areas such as emissions management, resource usage, and employee practices[190]. - The company has set effective management policies and internal control systems for ESG issues, ensuring compliance with ESG reporting guidelines[190]. - The company aims to improve ESG performance and create greater value for the community through collaboration with stakeholders[188]. - The company emitted approximately 481,600 tons of mining waste rock, 2,137,100 tons of tailings, 313,000 tons of smelting water quenching slag, 80.76 tons of waste gas, and 384.03 tons of greenhouse gases in 2021[194]. Risk Management - The company has established a risk management and internal control system to safeguard assets and ensure compliance with relevant laws and regulations[163]. - The board of directors conducted two reviews of the risk management and internal control systems during the year, covering the periods up to December 31, 2020, and June 30, 2021[164]. - The company faces commodity price risks due to fluctuations in international and domestic market prices, which could significantly impact revenue and overall earnings[71].

Financial Performance - The company recorded consolidated operating revenue of RMB 1,157.1 million for the six months ended June 30, 2021, representing an increase of 83.1% compared to RMB 632.1 million for the same period last year[8]. - The net profit attributable to shareholders was RMB 230.9 million, a significant turnaround from a net loss of RMB 62.3 million in the same period last year[8]. - The company's consolidated revenue for the period was RMB 1,157.1 million, an increase of 83.1% compared to RMB 632.1 million in the same period last year[20]. - The consolidated net profit for the period was RMB 228.7 million, a significant improvement from a net loss of RMB 62.6 million in the same period last year[20]. - The basic and diluted earnings per share for the six months ended June 30, 2021, were both RMB 0.104, recovering from a loss of RMB 0.028 in the same period of 2020[105]. - The company's total profit for the six months ended June 30, 2021, was approximately RMB 272.80 million, compared to a loss of RMB 77.90 million in the same period of 2020[103]. - Operating profit for the six months ended June 30, 2021, was approximately RMB 273.40 million, a turnaround from an operating loss of RMB 74.92 million in the same period of 2020[103]. - The total comprehensive income attributable to shareholders for the six months ended June 30, 2021, was approximately RMB 230.88 million, compared to a loss of RMB 62.31 million in the same period of 2020[104]. Sales and Production - The sales volume of electrolytic nickel reached approximately 5,879 tons, an increase of about 51.9% compared to 3,870 tons in the same period last year[8]. - The average selling price of electrolytic nickel and cathode copper was approximately RMB 120,055 per ton and RMB 59,938 per ton, respectively, representing increases of about 33.5% and 57.5% compared to the same period last year[8]. - The sales volume of cathode copper was 4,331 tons, a decrease of 30.7% from 6,248 tons in the same period last year[20]. - The group’s revenue from copper concentrate increased by 322.7% year-on-year to RMB 80.6 million, with an average selling price of RMB 13,290 per ton, up 82.2% compared to the same period last year[35]. - Sales volume of copper concentrate reached 6,066 tons, representing a 132.0% increase year-on-year, driven by significant price and volume increases[35]. - The company plans to produce 5,678 tons of electrolytic nickel and 5,637 tons of cathode copper in the second half of 2021, subject to market conditions[25]. Financial Position - As of June 30, 2021, total assets amounted to RMB 7,335,757,307.09, an increase from RMB 7,263,263,840.26 as of December 31, 2020, reflecting a growth of approximately 1%[98]. - The company reported a total liability of RMB 2,670,606,883.77, a decrease from RMB 2,831,096,346.31 in the previous period, representing a reduction of approximately 6%[98]. - The company's total equity reached RMB 4,665,150,423.32, compared to RMB 4,432,167,493.95 at the end of 2020, reflecting an increase of approximately 5%[98]. - The net debt ratio (net debt to total capital) improved to 22.61% from 26.38% at the end of 2020, reflecting a decrease in net debt[44]. - The total liabilities to equity ratio improved to approximately 57.3% from 63.9%, indicating a stronger financial position[98]. Cash Flow - Cash inflow from operating activities was RMB 301.7 million, up RMB 150.3 million from RMB 151.4 million in the previous year, driven by increased sales prices and volumes of key products[41]. - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB 301,680,990.41, an increase from RMB 151,383,114.42 for the same period in 2020, representing a growth of 99%[108]. - The company raised RMB 528,000,000.00 from financing activities, down from RMB 885,695,172.67 in the prior year, reflecting a decline of about 40.5%[110]. - The total cash and cash equivalents at the end of the period reached RMB 472,300,501.95, compared to RMB 232,464,294.21 at the end of June 2020, marking an increase of approximately 103.5%[110]. Expenditures - The total expenditure for mineral exploration activities during the period was approximately RMB 1.5 million[26]. - The total expenditure for mining development activities during the period was approximately RMB 12.6 million[28]. - The total expenditure for ore extraction activities during the period was approximately RMB 143.4 million[29]. - Capital expenditures for the group totaled RMB 77,622,000, with the mining and smelting operations at Karatung accounting for 55.3% of the total[59]. - The group plans to invest approximately RMB 221.2 million in mining expansion and smelting upgrades at Karatung, and RMB 58.4 million at the Fukang smelting plant[60]. Shareholder Information - The total issued share capital as of June 30, 2021, is 2,210,000,000 shares, with 65.66% being domestic shares and 34.34% being H shares[75]. - Major shareholders include Xinjiang Nonferrous Metals Group with 40.06% of the total share capital[76]. - The board does not recommend any interim dividend for 2021, consistent with 2020[78]. Governance and Compliance - The board consists of nine directors, including two executive directors, four non-executive directors, and three independent non-executive directors, with a meeting attendance rate of 90.91%[5]. - The supervisory board has five members and held two meetings during the period, achieving an attendance rate of 80%[6]. - The company has adopted a standard code for securities trading by directors, supervisors, and senior management, ensuring compliance with regulations[7]. - A non-executive director violated the trading code by selling 5,000,000 shares during the blackout period without prior notification[9]. - The company has implemented remedial measures to prevent future violations, including communication with the involved director and re-distribution of the trading code to all directors[11]. Accounting Policies - The financial statements for the six months ended June 30, 2021, are prepared in accordance with the Chinese Accounting Standards, reflecting the company's financial position and operating results accurately[135]. - The company follows a continuous operation basis for preparing financial statements, ensuring compliance with relevant regulations[134]. - The group includes all subsidiaries in the consolidated financial statements, starting from the date of actual control acquisition[141]. - The company recognizes financial assets and liabilities based on their fair value at the time of initial recognition, impacting the overall financial performance[149]. - The group recognizes expected credit losses based on historical data, current conditions, and forecasts of future economic conditions[155].