Financial Performance - Revenue increased by 93.0% to approximately RMB 1,315.2 million for the year ended December 31, 2023[2] - Gross profit rose by 96.1% to approximately RMB 619.2 million, with a gross margin of 47.1%, up 0.8 percentage points from the previous year[2] - Profit attributable to owners of the company increased by 85.8% to approximately RMB 335.4 million, with basic earnings per share of RMB 40.5, compared to RMB 21.8 in 2022[2][3] - Total comprehensive income for the year amounted to RMB 393.7 million, compared to RMB 180.9 million in the previous year[3] - The company reported a pre-tax profit of RMB 421.6 million, a 101.5% increase from RMB 209.2 million in 2022[4] - Total revenue for the year 2023 reached RMB 1,315,217,000, a significant increase from RMB 681,418,000 in 2022, representing a growth of approximately 93.1%[23] - The company reported a net profit attributable to shareholders of RMB 335,387,000 for 2023, compared to RMB 180,540,000 in 2022, marking an increase of about 85.6%[49] - Net profit after tax increased by approximately 130.3% to RMB 390.9 million for the year ended December 31, 2023, compared to RMB 169.7 million for the previous year[109] Assets and Liabilities - Non-current assets increased to RMB 1,678.0 million from RMB 1,615.5 million year-on-year[5] - The company’s total assets increased to RMB 1,867.5 million, compared to RMB 1,550.9 million in the previous year[8] - The total assets of the group as of December 31, 2023, amounted to RMB 2,361,603 thousand, up from RMB 2,037,963 thousand in 2022, reflecting an increase of approximately 16%[29] - The total liabilities of the group as of December 31, 2023, were RMB 601,137 thousand, compared to RMB 588,364 thousand in 2022, showing a slight increase of about 2%[30] - The company's debt-to-asset ratio was approximately 11.0% as of December 31, 2023, down from 12.1% in 2022, due to increases in cash and inventory[118] Cash Flow and Dividends - Cash and cash equivalents rose to RMB 171.6 million, up from RMB 67.9 million in the previous year[5] - The board proposed a final dividend of RMB 18.5 cents per share, compared to RMB 10.0 cents per share in 2022[2] - The company plans to distribute a final dividend of RMB 0.185 per share for 2023, totaling approximately RMB 153,180,000, up from RMB 82,800,000 in 2022[50] Inventory and Receivables - Inventory increased to RMB 200.0 million from RMB 157.8 million year-on-year[5] - Accounts receivable and other receivables totaled RMB 311,656,000 in 2023, up from RMB 196,460,000 in 2022, representing a 58.5% increase[60] - Trade receivables aged within 30 days amounted to RMB 64,549,000 in 2023, compared to RMB 13,073,000 in 2022, indicating a significant increase[62] Segment Performance - Revenue from copper concentrate sales amounted to RMB 268,416,000 in 2023, up from RMB 223,708,000 in 2022, reflecting a growth of about 19.9%[23] - Gold bar sales generated revenue of RMB 385,799,000 in 2023, compared to RMB 47,958,000 in 2022, indicating a substantial increase of approximately 705.5%[23] - The company reported a total of RMB 1,230,872,000 from self-mined products, which is a significant rise from RMB 631,942,000 in the previous year, marking an increase of around 94.8%[23] - The segment profit for the Yifeng project was RMB 221,624 thousand in 2023, down from RMB 248,525 thousand in 2022, indicating a decrease of approximately 11%[27] - The Solomon project reported a segment profit of RMB 210,841 thousand in 2023, recovering from a loss of RMB 30,650 thousand in 2022[27] Regulatory and Accounting Standards - The company adopted the revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2023, including HKFRS 17 on insurance contracts[10] - The application of HKFRS 17 did not have a significant impact on the consolidated financial statements[11] - The company implemented amendments to HKAS 1 and HKFRS Practice Statement 2, changing "major accounting policies" to "significant accounting policy information" without major impact on financial performance[12] Market Conditions and Commodity Prices - Copper prices peaked at $9,550 per ton in January 2023, then fell to a low of $7,856 by October, ending the year above $8,500[74] - The average price of zinc in 2023 was $2,651 per ton, a decrease of 23% compared to the previous year[76] - Gold futures reached a record high of $2,083.8 per ounce in Q1 2023, with a subsequent peak of $2,152.3 in December[79] Operational Developments - The company has completed the expansion plan for the Xinzhong Mine, achieving a mining and beneficiation capacity of 600,000 tons per year[81] - The Gold Ridge Mine has commenced trial production, contributing significant revenue and profit to the company[86] - The company has initiated discussions on environmental protection and land reclamation plans for the Walege Mine, with a social stability assessment report submitted for review[82] Corporate Governance - The company has adhered to all applicable corporate governance code provisions for the year 2023, except for deviations noted in sections C.2.1 and C.2.7[144] - The audit committee, composed of three independent non-executive directors, has reviewed the audited consolidated results for the year ending December 31, 2023, and confirmed compliance with relevant accounting standards[147]

Sales Performance - For the six months ended June 30, 2023, the sales volume of copper concentrate decreased by 41.2% to 1,338 tons compared to 2,275 tons in the same period of 2022[12] - Zinc concentrate sales increased by 111.2% to 3,728 tons, up from 1,765 tons year-over-year[12] - Iron concentrate sales decreased by 21.2% to 38,295 tons from 48,615 tons in the previous year[12] - Revenue from the sale of copper concentrate decreased by approximately 21.5% from RMB 294.0 million to RMB 230.8 million, with sales volumes of copper concentrate, iron concentrate, and zinc concentrate decreasing by approximately 41.2% and 21.2%, respectively[19] - Revenue from self-mined products reached RMB 537,538 thousand, up 83.0% from RMB 293,967 thousand year-on-year[62] Mining and Processing Operations - The total mining volume for the Xinzhuang mine was 491,437 tons, a decrease of 2.9% from 506,320 tons in the same period last year[13] - The total processing volume for the Xinzhuang mine was 481,598 tons, down 2.8% from 495,602 tons year-over-year[13] - The company has completed the expansion plan for the Xinzhuang mine, increasing its processing capacity to 900,000 tons per year[14] - The company is in the process of upgrading the Jinling mine to improve metallurgical processes, with additional circuit installations expected to be completed in the second half of the year[15] - Gold production from the flotation plant at Jinling Mine reached approximately 18,441 dry tons, with a total ore processed of 721,269 tons during the first half of 2023[35] Financial Performance - Total revenue increased by approximately 75.9% from RMB 330.5 million for the six months ended June 30, 2022, to RMB 581.2 million for the six months ended June 30, 2023, primarily due to increased sales from the Jinling Mine[16] - Overall gross profit rose by approximately 74.7% from RMB 159.5 million to RMB 278.6 million, while the gross profit margin slightly decreased from 48.2% to 47.9%[17] - The net profit for the six months ended June 30, 2023, increased by approximately 106.9% to RMB 179.4 million, compared to RMB 86.7 million for the same period in 2022[24] - The net profit margin rose from approximately 26.2% for the six months ended June 30, 2022, to approximately 30.9% for the same period in 2023, driven by increased sales of high-margin gold bars and concentrates[26] - Basic earnings per share rose to RMB 17.8, up from RMB 11.4, reflecting a 56.1% increase year-over-year[49] Expenses and Costs - Distribution and selling expenses surged approximately 15 times from RMB 2.1 million to RMB 33.6 million, primarily due to increased transportation and export costs associated with higher sales volumes of gold bars and concentrates[22] - Administrative expenses increased by approximately 4.4% from RMB 47.8 million to RMB 49.9 million, attributed to rising employee costs and R&D expenditures related to mining technology improvements[22] - Financing costs rose by approximately 46.0% from RMB 5.0 million to RMB 7.3 million, mainly due to increased interest expenses from contract liabilities and bank borrowings[23] - The income tax expense for the period was RMB 10,099 thousand, a decrease of 45.0% from RMB 18,420 thousand in the previous year[66] Cash Flow and Liquidity - Cash generated from operating activities for the six months ended June 30, 2023, was approximately RMB 166.3 million, a significant increase from a cash outflow of approximately RMB 2.4 million for the same period in 2022[26] - As of June 30, 2023, the group's bank balances and cash amounted to approximately RMB 176.1 million, up from RMB 67.9 million as of December 31, 2022, primarily due to increased sales from the Jinling Mine[26] - The company incurred a total cash outflow from investing activities of RMB 54,641 thousand, slightly higher than RMB 50,599 thousand in the previous year[54] Capital Expenditures and Commitments - Capital expenditures for the six months ended June 30, 2023, were approximately RMB 48.2 million, compared to RMB 51.6 million for the same period in 2022[26] - The group's capital commitments as of June 30, 2023, were approximately RMB 31.8 million, an increase from RMB 6.8 million as of December 31, 2022, primarily due to exploration activities at the Jinling Mine[27] - The company has capital expenditures of RMB 31,794,000 contracted but not provided for in the consolidated financial statements, a significant increase from RMB 6,752,000 in the previous period, reflecting a growth of approximately 370.5%[88] Shareholder Information and Governance - High Mingqing holds 281,400,000 shares, representing 33.99% of the company, through his wholly-owned company, Jiesheng Investment Limited[43] - The major shareholders include Jiesheng Investment Limited with 33.99%, and Dafeng Investment Limited with 16.74%[46] - The company has adopted a code of conduct for securities trading, confirming compliance by all directors for the six months ending June 30, 2023[41] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ending June 30, 2023, and confirmed compliance with relevant accounting standards[41] Environmental and Development Initiatives - The company has initiated discussions on environmental protection and land reclamation plans for the Walege mine, with external consultants involved[15] - Development expenses for the Walege Mine amounted to approximately RMB 0.7 million, primarily related to environmental protection and land reclamation discussions[33] - The company is transitioning exploration permits to mining permits for the Walege Mine, which has substantial lead and silver mineral resources[31]

Financial Performance - Revenue increased by approximately 75.9% to approximately RMB 581.2 million[3] - Gross profit rose by about 74.7% to approximately RMB 278.6 million, with a gross margin of approximately 47.9%[3] - Net profit attributable to owners increased by approximately 67.3% to about RMB 159.3 million, with a net profit margin of approximately 30.9%[3] - Basic earnings per share were approximately RMB 17.8 cents, compared to RMB 11.4 cents for the same period in 2022[3] - Total comprehensive income for the period was approximately RMB 194.2 million, up from RMB 84.9 million in the previous year[6] - Cash generated from operating activities was approximately RMB 166.3 million, a significant increase from RMB 2.4 million in the same period last year[54] - Net profit after tax increased by approximately 106.9% to RMB 179.4 million, with a net profit margin rising from 26.2% to 30.9%[52] Revenue Sources - The company operates primarily in China and the Solomon Islands, with all revenue derived from these regions[14] - Revenue from copper concentrate sales reached RMB 108,768 thousand, up from RMB 27,424 thousand in the previous year, indicating a growth of 296.5%[15] - The company’s revenue from Solomon Islands operations was RMB 306,706 thousand, with no revenue reported from this region in the previous year[16] - Revenue from electrolytic copper, lead, and other refined mineral trading increased by approximately 19.5% to RMB 43.6 million for the six months ended June 30, 2023, compared to RMB 36.5 million for the same period in 2022[45] Cost and Expenses - The sales cost rose by 77.0% to RMB 302.6 million for the six months ended June 30, 2023, from RMB 171.0 million in the previous year, reflecting the increase in sales from Jinling Mine[41] - The company incurred total employee costs of RMB 30,671 thousand for the period, a decrease from RMB 33,938 thousand in the previous year, showing a reduction of 9.5%[21] - The company’s tax expense for the period was RMB 10,099 thousand, down from RMB 18,420 thousand in the same period of 2022, a decrease of 45.0%[20] - Distribution and selling expenses rose approximately 15 times to RMB 33.6 million, driven by increased sales volume of bullion and refined gold[48] - Financing costs increased by approximately 46.0% to RMB 7.3 million, mainly due to higher interest expenses from contract liabilities and bank borrowings[50] Asset and Liabilities - Cash and cash equivalents increased to RMB 176.1 million from RMB 67.9 million year-on-year[7] - Total assets less current liabilities amounted to RMB 1,667.9 million, compared to RMB 1,550.9 million at the end of 2022[9] - The company's total bank borrowings amounted to approximately RMB 192.3 million, with a weighted average interest rate of 4.96%[54] - The asset-liability ratio decreased to approximately 11.4% from 12.1% as of December 31, 2022, due to an increase in cash and inventory[55] Production and Sales - The company reported a significant increase in zinc concentrate sales, with a volume of 3,728 tons for the six months ended June 30, 2023, compared to 1,765 tons for the same period in 2022, representing an increase of 111.2%[33] - Copper concentrate sales decreased by 41.2%, with 1,338 tons sold in the first half of 2023 compared to 2,275 tons in the same period of 2022[33] - The company’s gold concentrate sales reached 608 kg for the six months ended June 30, 2023, with no prior year comparison available[34] - The company’s lead concentrate sales increased by 127.2%, with 734 tons sold in the first half of 2023 compared to 323 tons in the same period of 2022[33] Mining Operations - The company continues to expand its mining operations, owning 100% of Yifeng Wanguo Mining Co., Ltd., which operates the Xinzhang copper-lead-zinc mine in Jiangxi Province, China[32] - The company plans to increase mining capacity at Xinzhong Mine to 1,000,000 tons per year in the coming years, currently in the final phase of increasing capacity to 900,000 tons per year[73] - Jinding Mine processed a total of 721,269 tons of ore in the first half of 2023, producing approximately 18,441 dry tons of gold concentrate[72] Market Conditions - In the first half of 2023, global commodity prices significantly declined, with non-ferrous metal prices leading the drop due to economic slowdowns in developed economies and supply disruptions caused by geopolitical crises[75] - The demand for safe-haven assets, such as gold, is expected to continue increasing in the foreseeable future due to economic uncertainties[76] - The company anticipates a potential rebound in non-ferrous metal prices in the latter half of 2023, although it may only be temporary due to poor economic growth prospects in Europe and the U.S.[75] Corporate Governance - The company has adhered to the corporate governance code and has complied with all significant provisions of the Hong Kong Stock Exchange's listing rules as of June 30, 2023, except for the separation of roles between the Chairman and CEO[77] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ending June 30, 2023, and confirmed compliance with relevant accounting standards[80] - The company has established written guidelines for employees regarding securities trading, which align with the standards set forth in the listing rules, and no violations were reported for the six months ending June 30, 2023[78]

Financial Performance - The total revenue for the year ended December 31, 2022, decreased by approximately 66.2% to RMB 681.4 million from RMB 2,014.4 million in 2021, primarily due to a reduction in sales of electrolytic copper[31] - The overall gross profit for the year ended December 31, 2022, was approximately RMB 315.7 million, a decrease of about 0.2% from RMB 316.2 million in 2021[32] - The gross profit margin increased from approximately 15.7% in 2021 to about 46.3% in 2022, attributed to a decrease in lower-margin electrolytic copper and lead revenue[32] - Net profit after tax decreased by approximately 6.6% from RMB 181.6 million in 2021 to RMB 169.7 million in 2022[38] - The company's attributable profit decreased by approximately 6.7% from RMB 193.4 million in 2021 to RMB 180.5 million in 2022[38] - The company reported a net profit of RMB 169,718,000 for 2022, down from RMB 181,640,000 in 2021, reflecting a decrease of 6.5%[162] - The total comprehensive income for the year was RMB 180,895,000, compared to RMB 144,181,000 in 2021, showing an increase of 25.4%[162] Production and Operations - The company extracted 1,069,199 tons of ore in 2022, generating revenue of RMB 681.4 million, with a gross profit of RMB 315.7 million and a profit attributable to owners of RMB 180.5 million[9] - The company reported a total sale of 4,109 tons of copper concentrate, 95,624 tons of iron concentrate, and 6,356 tons of zinc concentrate in 2022[9] - The total ore processed at the Xinzhong Mine in 2022 was 1,072,291 tons, with copper concentrate sales of 4,109 tons and iron concentrate sales of 95,624 tons[58] - The company plans to enhance the capacity and efficiency of the Jinling Mine through technological innovation and management optimization[9] - The company plans to increase mining capacity from 600,000 tons per year to 900,000 tons per year, with a further goal of reaching 1,000,000 tons per year in the coming years[65] Safety and Compliance - The company achieved zero accidents in safety production throughout the year and completed the technical transformation and upgrade of the lead-zinc processing plant, resulting in energy-saving benefits[9] - The number of work-related accidents at Xinzhong Mine decreased to 8 in 2022 from 18 in 2021, and the number of lost workdays due to injuries dropped to 316 from 1,108[108] - At Jinling Mine, there were 3 work-related accidents in 2022, with 17 lost workdays due to injuries[109] - The company has implemented mandatory safety training for all employees, ensuring compliance with safety regulations in China and the Solomon Islands[106] Environmental and Social Responsibility - The company emphasizes sustainable development, balancing economic growth with environmental protection[9] - The company has established an Environmental, Social, and Governance (ESG) Committee to oversee ESG strategies and ensure compliance with relevant guidelines[105] - The company supports local community employment training programs, hiring students from Solomon Islands National University and other institutions[109] - The company reported a donation of approximately RMB 1.7 million to local charitable activities during the year, including sponsorship of International Children's Day and community facility maintenance[124] Financial Position and Assets - Total assets of property, plant, and equipment increased by approximately 15.0% to RMB 727.0 million as of December 31, 2022, mainly due to the acquisition of mining and processing equipment[39] - The company's cash and cash equivalents decreased to approximately RMB 67.9 million as of December 31, 2022, from RMB 116.3 million in 2021, attributed to increased expenditures related to the expansion plan and the resumption of operations at the Jinling Mine[41] - The company's current liabilities exceeded current assets by approximately RMB 64,546,000, raising concerns about going concern[170] - The total equity attributable to owners of the company increased to RMB 1,148,465,000 in 2022 from RMB 1,039,947,000 in 2021, reflecting a growth of 10.4%[164] Management and Governance - The company has a strong management team with extensive experience in finance and capital markets, including independent non-executive directors with over 22 years of experience in the field[69] - The board of directors consists of four executive directors and three independent non-executive directors as of December 31, 2022[74] - The company has established a code of conduct for securities trading, which all directors have complied with during the reporting period[139] - The company has a commitment to maintaining high standards of corporate governance, as reflected in its annual reports[73] Market and Economic Conditions - The copper price on the London Metal Exchange decreased by 14.37% compared to the beginning of the year, influenced by global inflation and interest rate hikes by central banks[11] - The iron market experienced fluctuations due to high costs and low inventory, with prices initially rising during the Winter Olympics and later affected by recurring domestic COVID-19 outbreaks[11] - The company anticipates a significant improvement in the non-ferrous metals industry in 2023, driven by a potential end to the Federal Reserve's interest rate hikes and a recovery in the Chinese economy[66] Exploration and Resource Management - The geological exploration at the Xinzhuang Mine has increased the mineral reserves by 2.6 million tons[16] - Total mineral resources amount to 24,170 thousand tons with an average copper grade of 0.30% and zinc grade of 152.73%[18] - The company has conducted extensive exploration, including 136 diamond drill holes and 54 trenching projects, to estimate mineral resources[25] Shareholder Engagement and Dividends - The board proposed a final dividend of RMB 0.10 per share, equivalent to approximately HKD 0.1119, representing about 43.1% of the total profit attributable to shareholders for the year ended December 31, 2022, amounting to approximately RMB 828 million[52] - The company has implemented various communication channels with shareholders, including interim and annual reports, to facilitate active engagement and information sharing[101]

Financial Performance - Revenue decreased by 66.2% to approximately RMB 681.4 million[2] - Gross profit decreased by 0.2% to approximately RMB 315.7 million, with a gross margin increase of 30.6 percentage points to 46.3%[2] - Profit attributable to owners of the company decreased by 6.7% to approximately RMB 180.5 million[2] - Basic earnings per share were RMB 21.8 cents, down from RMB 23.9 cents in 2021[5] - Total revenue for 2022 was RMB 681,418,000, a decrease from RMB 2,014,395,000 in 2021[25] - The company reported a net loss of RMB 2,567,000 in 2022 compared to a net gain of RMB 1,162,000 in 2021[34] - The company's net profit decreased by approximately 6.6% from RMB 181.6 million in 2021 to RMB 169.7 million in 2022, primarily due to increased administrative expenses and financing costs[104] - The net profit margin increased from approximately 9.0% in 2021 to approximately 24.9% in 2022, attributed to the termination of low-margin trades and increased revenue from self-mined products[105] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 10.00 cents per share, compared to RMB 10.10 cents per share in 2021[2] - The proposed final dividend for 2022 is RMB 0.10 per share, compared to RMB 0.101 per share in 2021[41] - The board proposed a final dividend of RMB 0.10 per share, approximately HKD 0.1119, representing about 43.1% of the total profit attributable to shareholders for the year ended December 31, 2022, amounting to approximately RMB 828 million[120] Assets and Liabilities - Total assets less current liabilities amounted to RMB 1,550.9 million, an increase from RMB 1,467.8 million in 2021[7] - Non-current assets increased to RMB 1,615.5 million from RMB 1,504.0 million in 2021[6] - Current liabilities increased to RMB 487.0 million from RMB 330.9 million in 2021[7] - As of December 31, 2022, the company's current liabilities exceeded its current assets by approximately RMB 64,546,000, raising significant doubts about the group's ability to continue as a going concern[8] - The company's debt-to-asset ratio increased to approximately 12.1% in 2022 from 10.3% in 2021, primarily due to an increase in bank borrowings of approximately RMB 61.4 million[113] Revenue Breakdown - Revenue from copper concentrate was RMB 223,708,000 in 2022, compared to RMB 208,404,000 in 2021, showing a growth of approximately 7.3%[25] - Revenue from zinc concentrate decreased significantly to RMB 116,336,000 in 2022 from RMB 223,714,000 in 2021, representing a decline of about 47.9%[25] - The company reported sales revenue from electrolytic copper of RMB 26,398,000 in 2022, down from RMB 1,327,316,000 in 2021, indicating a substantial drop[25] - Revenue from electrolytic copper, lead, and other concentrate trading decreased by approximately 96.6% from RMB 1,445.4 million in 2021 to RMB 49.5 million in 2022, due to the gradual cessation of low-margin trading[96] Inventory and Receivables - Inventory surged to RMB 157.8 million from RMB 18.6 million in 2021[6] - Trade receivables and other receivables rose to RMB 196.5 million from RMB 159.8 million in 2021[6] - Accounts receivable from customer contracts increased significantly to RMB 13,151,000 in 2022 from RMB 2,057,000 in 2021, representing a growth of approximately 539%[53] - Total accounts receivable and notes receivable rose to RMB 196,460,000 in 2022, up from RMB 159,770,000 in 2021, indicating an increase of about 23%[53] Financial Support and Going Concern - The major shareholder has committed to provide further financial support to ensure the group can meet its financial obligations in the foreseeable future[9] - The financial statements have been prepared on a going concern basis, indicating sufficient operational funds for at least the next twelve months[9] - The company continues to adopt the going concern basis in preparing its consolidated financial statements, expecting to have sufficient resources for the foreseeable future[21] Compliance and Governance - The company has complied with relevant mining industry laws and regulations in China, ensuring operations are in accordance with applicable legal and regulatory requirements[135] - The company has maintained high levels of corporate governance to protect shareholder interests, adhering to the corporate governance code throughout 2022[136] - The audit committee consists of three independent non-executive directors, including Mr. Zeng Weihong (chairman), Mr. Wang Zhiming, and Mr. Wang Xin[142] Operational Developments - The company completed the acquisition of 51% equity in Tibet Changdu Mining Co., Ltd., which owns the Walege lead mine, allowing for further open-pit and underground mining[77] - The company also acquired 77.78% equity in Xiangfu Jinling Co., Ltd., which holds 90% interest in the Jinling mine in the Solomon Islands, providing access to significant gold resources[77] - The company plans to expand existing mining sites to enhance production capabilities[77] - The exploration activities at the Xinjing Mine involved 29,300 meters of underground geological drilling and 760 meters of tunnel excavation, with exploration costs amounting to approximately RMB 10.5 million for the year ended December 31, 2022[124] Market Outlook - The outlook for the non-ferrous metals industry is expected to improve significantly in 2023, driven by a potential end to the Federal Reserve's interest rate hikes and a recovery in China's domestic economy[134] - The company anticipates a strategic investment opportunity in gold as the Federal Reserve is expected to end its rate hike cycle in the first half of 2023, potentially leading to a new bull market for gold prices[134]

Production and Mining - The total copper concentrate production increased by 25.8% to 2,275 tons compared to 1,809 tons in the same period last year[7]. - Zinc concentrate production decreased by 47.4% to 1,765 tons from 3,357 tons year-on-year[7]. - Iron concentrate production slightly decreased by 4.5% to 48,615 tons from 50,922 tons[7]. - Sulfur concentrate production increased by 29.3% to 117,182 tons compared to 90,636 tons in the previous year[7]. - Lead concentrate production decreased by 42.9% to 323 tons from 566 tons year-on-year[7]. - Mining volume increased by 3.2% to 506,320 tons from 490,401 tons in the same period last year[8]. - The company is currently undergoing a reconstruction and expansion plan for the lead-zinc processing plant, which is expected to reach a capacity of 900,000 tons per year[9]. - The company has received approval for the 900,000 tons per year expansion plan for the Xinzhang Mine from the Jiangxi Provincial Development and Reform Commission[9]. - The company is preparing geological environmental protection and land reclamation plans for the Walege Mine[10]. - The company anticipates trial production at the Jinling Mine in the second half of the year following successful operational tests[10]. Financial Performance - The company's total revenue decreased by approximately 59.8% from RMB 822.8 million for the six months ended June 30, 2021, to RMB 330.5 million for the six months ended June 30, 2022[11]. - Gross profit increased by approximately 7.6% from RMB 148.2 million for the six months ended June 30, 2021, to RMB 159.5 million for the six months ended June 30, 2022[12]. - Revenue from the sale of self-extracted concentrate products increased by approximately 10.0% from RMB 267.2 million to RMB 294.0 million during the same period[13]. - The company's net profit attributable to owners increased by 7.3% from RMB 88.2 million to RMB 94.6 million[20]. - The overall gross margin improved from 18.0% to 48.2% due to the gradual termination of low-margin trading activities[12]. - Revenue from electrolytic copper and lead trading decreased by approximately 93.4% from RMB 555.6 million to RMB 36.5 million[15]. - Administrative expenses increased by approximately 52.2% from RMB 31.4 million to RMB 47.8 million, mainly due to the resumption of operations at the Jinling Mine[17]. - The net cash used in operating activities for the six months ended June 30, 2022, was approximately RMB 2.4 million, a decrease from RMB 78.1 million for the same period in 2021[21]. - The company's equity attributable to owners was RMB 1,051,497 thousand, up from RMB 1,039,947 thousand, reflecting a growth of about 1.4%[51]. - The company reported a net profit of RMB 94,551 thousand for the period, compared to a loss of RMB 1,565 thousand in the previous period, indicating a significant turnaround[53]. Cash Flow and Liquidity - As of June 30, 2022, the group's bank balances and cash amounted to approximately RMB 125.2 million, up from RMB 116.3 million as of December 31, 2021[21]. - The total bank borrowings as of June 30, 2022, included secured bank borrowings of approximately RMB 156.6 million and unsecured bank borrowings of approximately RMB 39.8 million, with an effective interest rate of about 5.20%[21]. - The debt-to-asset ratio increased to approximately 12.6% as of June 30, 2022, compared to 10.3% as of December 31, 2021, primarily due to an increase in bank borrowings of approximately RMB 68.4 million[21]. - The company’s cash and cash equivalents were reported at RMB 125,154 thousand, up from RMB 116,294 thousand, indicating a growth of approximately 7.9%[50]. - The group has a current liability exceeding current assets by approximately RMB 64,603,000, indicating potential liquidity challenges[57]. Shareholder Information - As of June 30, 2022, major shareholders included Jiesheng Investment Limited, holding 281,400,000 shares, representing 33.99% of the company[45]. - Shandong Hengbang Mining Development Co., Ltd. held 172,814,000 shares, accounting for 20.87% of the total issued share capital[45]. - The company had no stock options granted, exercised, expired, or lapsed as of June 30, 2022, as the stock option plan expired on July 10, 2022[40]. Expenses and Costs - The total mining and processing expenses for the six months ended June 30, 2022, were approximately RMB 76.9 million, compared to RMB 62.8 million for the same period in 2021[29]. - The unit cost of mining activities increased to approximately RMB 151.9 per ton for the six months ended June 30, 2022, from RMB 128.0 per ton for the same period in 2021[29]. - The total employee costs for the period amounted to RMB 33,938,000, an increase from RMB 27,362,000 in the previous year, which is a rise of about 24.2%[65]. - The company incurred research and development expenses of RMB 11,099,000 for the period, compared to RMB 7,703,000 in the previous year, representing an increase of about 44.5%[65]. Development and Expansion Plans - The company plans to expand mining capacity from 600,000 tons per year to 900,000 tons per year by outsourcing underground mining operations to third-party contractors[34]. - The company aims to enhance its mineral resources and ore reserves through the acquisition of new mines, with a focus on careful evaluation and prudent acquisitions[35]. - The company plans to continue its business expansion strategies to become a leading non-ferrous metal mining company in China and the South Pacific region[33]. Compliance and Governance - The company has adhered to corporate governance standards and has not encountered any incidents of non-compliance among employees regarding insider trading guidelines[38]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2022[39].

Financial Performance - The group extracted 980,301 tons of ore and sold 3,839 tons of copper concentrate, 95,437 tons of iron concentrate, 7,386 tons of zinc concentrate, 193,529 tons of sulfur concentrate, 1,113 tons of lead concentrate, 23,406 tons of pyrite, 213 kg of gold, 12,068 kg of silver, and 383 kg of copper, achieving a revenue of RMB 2,014.4 million and a gross profit of RMB 316.2 million[9]. - The net profit attributable to the owners of the company was RMB 198.4 million, marking the best performance since the company went public[9]. - The company's total revenue increased by approximately 44.5% from RMB 1,394.1 million in 2020 to RMB 2,014.4 million in 2021, driven by higher sales of self-mined concentrate products and electrolytic copper[29]. - Gross profit rose by approximately 100.9% from RMB 157.4 million in 2020 to RMB 316.2 million in 2021, with the gross profit margin increasing from 11.3% to 15.7%[30]. - The company's net profit after tax increased by approximately 113.9% from RMB 84.9 million in 2020 to RMB 181.6 million in 2021, with a net profit margin rising from 6.1% to 9.0%[34]. - The basic earnings per share for 2021 was RMB 23.9, compared to RMB 12.0 in 2020, representing an increase of 99.2%[166]. Market Conditions - The copper market recorded a supply shortage of 397,000 tons in 2021, compared to a shortage of 690,000 tons in 2020, with global demand reaching 25.1 million tons, a 0.9% increase from 2020[11]. - The iron market experienced price fluctuations due to macroeconomic policies, with prices peaking in May 2021 before stabilizing[12]. - The zinc market faced a supply shortage of 26,100 tons in 2021, contrasting with a surplus of 632,000 tons in the previous year, with global demand increasing by 4.9%[12]. - The lead market recorded a shortage of 130,900 tons in 2021, compared to a shortage of 108,700 tons in 2020, with total inventory down by 55,500 tons year-over-year[13]. Strategic Developments - The new strategic investor, Hengbang Smelting, has been introduced to enhance the group's future development capabilities[9]. - The company aims to achieve new milestones and growth in 2022, leveraging collective efforts and support from stakeholders[9]. - The company completed the acquisition of a 51% stake in Tibet Changdu Mining Co., Ltd., which owns the Walege lead mine, allowing for further open-pit and underground mining[15]. - The company is applying for mining permits for the Walege mine, which has been recognized as a key mineral resource under the "Mineral Exploration Breakthrough Strategic Action" initiative[15]. Operational Highlights - The Jiangxi Xinzhang Mine achieved its best performance since its establishment, while the Solomon Islands Jinling Mine is progressing towards resuming production, although the target for production by the end of 2021 has been delayed to Q2 2022 due to COVID-19[9]. - The company is advancing the re-commissioning activities at the Jinling mine, including the initiation of heap leaching processes and installation of flotation plants[15]. - The company completed underground geological drilling of 24,631 meters and tunnel excavation of 578 meters at the Xinzhong Mine during 2021, with exploration costs amounting to approximately RMB 53 million[50]. - Development expenditures for the Xinzhong Mine totaled approximately RMB 732 million in 2021, with RMB 598 million allocated for mining structures and RMB 116 million for machinery and electronic equipment[51]. Environmental and Safety Measures - The company emphasizes the importance of occupational health and safety, implementing a series of measures to comply with regulatory requirements and ensure production safety[99]. - The company aims to create a work environment free of fatalities, injuries, or occupational diseases, reflecting its commitment to safety[97]. - The group reported a total CO2 emission of 818.4 tons from Scope 1 and 47,887.8 tons from Scope 2, with a CO2 emission per unit production of 0.05 kg/ton[107]. - The company has implemented mandatory safety training programs for all employees to enhance awareness of safety issues[99]. Corporate Governance - The company has maintained compliance with all applicable corporate governance codes throughout 2021, except for specific deviations noted in the report[69]. - The board consists of four executive directors and four independent non-executive directors, ensuring a balanced structure with diverse industry knowledge and strategic planning experience[70]. - The company has adopted a written guideline for employees regarding securities trading, which is not less stringent than the standard code for listed issuers[69]. - The independent non-executive directors have extensive experience in management and finance, contributing to the company's governance and oversight[68]. Financial Position - Total assets as of December 31, 2021, amounted to RMB 1,467,800 thousand, up from RMB 1,144,120 thousand in 2020, showing a growth of 28.3%[169]. - The company's equity attributable to owners increased to RMB 1,039,947 thousand in 2021, compared to RMB 712,589 thousand in 2020, representing a growth of 46%[169]. - Cash and cash equivalents rose to RMB 116,294 thousand in 2021, up from RMB 36,662 thousand in 2020, indicating a significant liquidity improvement[167]. - The company has committed capital obligations of approximately RMB 51,146,000 due within the next twelve months[176]. Community Engagement - The company made community contributions of approximately RMB 1.3 million to local charitable activities during the year[113]. - The company encourages shareholder participation in annual general meetings to communicate strategies and objectives directly[94]. - The company has established multiple communication channels with shareholders and investors, including reports and meetings[94].

Sales and Production Performance - The sales volume of copper concentrate increased by 21.3% to 1,809 tons compared to 1,491 tons in the same period of 2020[9] - Zinc concentrate sales surged by 70.6%, reaching 3,357 tons, up from 1,968 tons in the previous year[9] - Iron concentrate production rose by 15.1% to 50,922 tons, compared to 44,231 tons in 2020[9] - The total mining volume increased by 27.6% to 490,401 tons, while the processing volume grew by 31.6% to 494,242 tons[10] - The production of lead concentrate increased by 78.0% to 566 tons, compared to 318 tons in the same period of 2020[9] Financial Performance - Total revenue increased from approximately RMB 202.3 million for the six months ended June 30, 2020, to approximately RMB 822.8 million for the six months ended June 30, 2021, representing a growth of 305%[16] - Gross profit rose by approximately 252% from RMB 42.1 million for the six months ended June 30, 2020, to RMB 148.2 million for the same period in 2021[17] - The company's net profit increased approximately 4.6 times from RMB 15.6 million for the six months ended June 30, 2020, to RMB 86.6 million for the six months ended June 30, 2021, with a net profit margin rising from 7.7% to 10.5%[24] - Revenue from electrolytic copper, lead, and other concentrate trading surged approximately 520% from RMB 76.9 million to RMB 555.6 million for the same periods[20] - Basic earnings per share rose to RMB 11.1, compared to RMB 2.2 for the same period in 2020, indicating a substantial increase[54] Expenses and Costs - Distribution and selling expenses increased by approximately 212.5% to RMB 2.5 million due to higher transportation costs associated with increased sales volume[22] - Administrative expenses rose by approximately 41.4% to RMB 31.4 million, primarily due to increased employee costs and travel expenses following the acquisition of Xiangfu Jinling[23] - Financing costs increased by approximately 55.6% to RMB 4.2 million, mainly due to higher interest expenses from discounted notes[23] - The company incurred a total tax expense of RMB 17,319,000 for the period, compared to RMB 3,630,000 in the previous year, indicating an increase of 377%[68] Capital and Investments - Capital expenditures for the six months ended June 30, 2021, were approximately RMB 141.8 million, significantly higher than RMB 38.3 million for the same period in 2020[27] - The company acquired property, plant, and equipment at a cost of RMB 104,597,000 during the period, significantly higher than RMB 38,636,000 in the same period of 2020[72] - The total acquisition cost for acquiring 77.78% of Xiangfu Jinling Limited was AUD 39.215 million, equivalent to approximately RMB 182,127,000[87] Cash Flow and Liquidity - Cash generated from operating activities for the six months ended June 30, 2021, was approximately RMB 78.1 million, compared to RMB 16.1 million for the same period in 2020[25] - As of June 30, 2021, the company's cash and bank balances were approximately RMB 132.0 million, up from RMB 36.7 million as of December 31, 2020[25] - The company reported a net cash outflow from investing activities of RMB 157,680,000, up from RMB 38,265,000 in the prior year, reflecting increased investment in assets[60] - Financing activities generated a net cash inflow of RMB 180,424,000, compared to RMB 42,507,000 in the previous year, primarily due to new share issuance[60] Share Capital and Dividends - The company raised additional funds by issuing 108,000,000 new shares at HKD 2.18 per share, representing approximately 13.04% of the enlarged issued share capital[13] - The company declared a final dividend of RMB 0.0298 per share for the year ended December 31, 2020, totaling RMB 24,700,000[71] - As of June 30, 2021, the total issued share capital increased to approximately RMB 67,881,000, compared to RMB 58,882,000 as of December 31, 2020, reflecting a growth of about 15.3%[74] Mining Operations and Future Plans - The company completed the expansion plan for the Xinzhang Mine, achieving a mining and processing capacity of 600,000 tons per year[12] - A feasibility study for expanding the Xinzhang Mine to 900,000 tons per year has been initiated, with preliminary production expected to start in the second half of 2021[12] - The company is in the process of obtaining mining permits for the Walege Mine, with a feasibility study report expected in the second half of 2021[13] - The group aims to enhance its mining resources and ore reserves through prudent acquisitions of new mines[38] Corporate Governance and Compliance - The group has maintained compliance with corporate governance codes and has not deviated from the standards set forth in the listing rules[41] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2021[28] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2021, except for the issuance of 108,000,000 new shares[43]

Financial Performance - For the fiscal year ended December 31, 2020, the group extracted 892,107 tons of ore, generating revenue of RMB 1,394.1 million, with a gross profit of RMB 157.4 million and a profit attributable to owners of RMB 86.7 million[8]. - The company's revenue increased threefold from approximately RMB 311.2 million in 2019 to about RMB 1,394.1 million in 2020, primarily due to a significant rise in sales of electrolytic copper starting from November 2019[30]. - Gross profit increased by approximately 45.3% from about RMB 108.3 million in 2019 to approximately RMB 157.4 million in 2020, with a gross margin decline from 34.8% to 11.3%[30]. - The company's net profit for the year ended December 31, 2020, increased by approximately 53.2% to RMB 84.9 million, compared to RMB 55.4 million in 2019[35]. - Basic earnings per share for 2020 was RMB 12.0, up from RMB 7.7 in 2019, representing a growth of approximately 55.8%[145]. - Total revenue for the year ended December 31, 2020, was RMB 1,394,144 thousand, an increase from RMB 1,236,735 thousand in 2019, representing a growth of approximately 12.8%[145]. - The total comprehensive income for the year ended December 31, 2020, was RMB 90,701 thousand, compared to RMB 55,206 thousand in 2019, indicating a significant increase[149]. Market and Demand Insights - The copper market experienced a supply shortage of 1,391,000 tons in 2020, compared to a shortage of 383,000 tons in 2019, indicating a significant increase in demand[10]. - Global refined copper production increased by 2.0% to 23.9 million tons in 2020, with notable increases in China (1,032,000 tons) and Chile (60,000 tons)[10]. - China's apparent demand for copper reached 15.0 million tons in 2020, up 17.1% from 2019, reflecting strong recovery in the domestic economy[10]. - The demand for non-ferrous metals is expected to recover in 2021, supported by global monetary easing and vaccine distribution[56]. Acquisitions and Investments - The group completed the acquisition of 77.78% equity in Xiangfu Jinling Limited, which owns 90% of the Jinling Mine, one of the largest gold mines in Oceania, expected to contribute significantly to sales revenue and profit[8]. - The company completed the acquisition of a 77.78% stake in Xiangfu Jinling Co., which owns 90% of the Jinling mine, allowing for further exploration and mining[15]. - The company acquired 77.78% of Xiangfu Jinling Co., Ltd. for approximately AUD 39.215 million, including AUD 17.110 million for reconstruction works[19]. - The total estimated commitment for the acquisition and reconstruction works, including a put option, is approximately AUD 118.751 million[18]. - The company raised approximately HKD 235.2 million through a subscription agreement to strengthen its financial position and fund the development of the Jinling project[20]. Operational Developments - The company is currently renovating the processing plant at the Jinling Mine to enhance operational efficiency and output[8]. - The company plans to increase mining capacity from 600,000 tons per year to 1,000,000 tons per year in the coming years[56]. - The company's New Zhuang copper-lead-zinc mine has a mining and processing capacity of 600,000 tons per year, with plans to expand to 900,000 tons per year[16]. - The company is applying for mining permits for the Walege lead mine and has submitted proposals for boundary demarcation and technical consulting agreements[17]. Financial Position and Stability - The company's cash and cash equivalents increased to approximately RMB 36.7 million as of December 31, 2020, from RMB 4.7 million in 2019[38]. - The total bank borrowings increased to approximately RMB 107.7 million as of December 31, 2020, compared to RMB 49.9 million in 2019, with an actual interest rate of approximately 5.82%[38]. - The company's net asset value increased to approximately RMB 999.4 million as of December 31, 2020, from RMB 830.5 million in 2019[38]. - The company reported a foreign exchange gain of RMB 5,814 thousand due to the translation of overseas operations, compared to a loss of RMB 200 thousand in 2019[145]. - The company's current liabilities exceeded current assets by approximately RMB 206,259,000 as of December 31, 2020[157]. Corporate Governance - The company has adopted a code of conduct for securities trading, confirming compliance by all directors for the year ending December 31, 2020[64]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of the company's affairs[66]. - The board consists of four executive directors, two non-executive directors, and four independent non-executive directors, ensuring a balanced structure with diverse industry knowledge[66]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their status[66]. Environmental and Social Responsibility - The company emphasizes the importance of a safe working environment, aiming for zero fatalities, injuries, or occupational diseases[89]. - The company reported zero work-related fatalities in 2020, with lost workdays due to injuries totaling 596 days, a decrease from 744 days in 2019[90]. - The company generated approximately 568,500 tons of wastewater in 2020, a reduction from 941,000 tons in 2019, with pollutant discharge decreasing to 12.2 tons[96]. - The company has established a water recycling management system to manage wastewater generated from mining operations[96]. Risk Management - The company has adopted a systematic risk identification method to ensure all related risks are properly considered[83]. - The board and audit committee perform an annual review of the risk management processes and strategies[84]. - The company has implemented a policy for handling inside information to ensure confidentiality and compliance with legal obligations[85]. Employee and Labor Relations - The total number of employees increased to 360 in 2020, up from 349 in 2019, with a gender distribution of 277 male and 83 female employees[92]. - Employee turnover rate for the year was 11.4%, with the highest turnover observed in geological drilling operators at 35.3%[94]. - All employees are required to undergo mandatory safety training, with new underground workers attending at least 72 hours of training[91]. Future Outlook - The company aims to enhance its capital base to facilitate the development of the Jinling mine[20]. - The company aims to expand its customer network and market presence through strategic marketing initiatives[61]. - The company is exploring additional mining areas to increase its mining capacity based on findings from exploration activities conducted outside the planned mining area[106].

Production and Mining - The total copper concentrate produced was 1,491 tons, a 3.3% increase from 1,443 tons in the same period of 2019[11] - Zinc concentrate production reached 1,968 tons, reflecting a 12.1% increase from 1,755 tons in the previous year[11] - Iron concentrate production decreased by 11.0% to 44,231 tons from 49,683 tons in 2019[11] - The total mining volume increased by 11.0% to 384,231 tons compared to 346,146 tons in the same period of 2019[12] - The total processing volume rose by 9.8% to 375,667 tons from 342,223 tons in the previous year[12] - The total ore processed at the Xinzhong Mine for the six months ended June 30, 2020, was 375,667 tons, with copper concentrate sales of 1,491 tons and iron concentrate sales of 44,231 tons[49] - The unit cost of mining activities for the six months ended June 30, 2020, was RMB 118.4 per ton, a decrease from RMB 132.1 per ton in the previous year[49] Financial Performance - Total revenue increased by approximately 70.1% from RMB 118.9 million for the six months ended June 30, 2019, to RMB 202.3 million for the six months ended June 30, 2020[20] - Gross profit increased by approximately 8.8% from RMB 38.7 million to RMB 42.1 million, while gross margin decreased from 32.5% to 20.8%[20] - Revenue for the six months ended June 30, 2020, was RMB 202,288,000, an increase from RMB 118,909,000 for the same period in 2019, representing a growth of 70.1%[74] - Net profit after tax rose by approximately 52.9% from RMB 10.2 million for the six months ended June 30, 2019, to RMB 15.6 million for the same period in 2020[31] - Basic earnings per share increased to RMB 2.2 from RMB 1.5, representing a growth of 46.7%[74] - Profit before tax increased to RMB 19,256,000, up from RMB 10,747,000 in the previous year, marking an increase of 79.0%[74] - Net profit for the period was RMB 15,626,000, compared to RMB 10,147,000 in 2019, indicating a growth of 54.5%[74] Expenses and Costs - Sales cost rose by approximately 99.8% from RMB 80.2 million to RMB 160.2 million during the same period[20] - Distribution and selling expenses decreased by approximately 38.5% from RMB 1.3 million to RMB 0.8 million due to an increase in nearby customer numbers[26] - Administrative expenses increased slightly by approximately 0.5% from RMB 22.1 million to RMB 22.2 million, remaining relatively stable[27] - Financing costs decreased by approximately 55.0% from RMB 6.0 million for the six months ended June 30, 2019, to RMB 2.7 million for the six months ended June 30, 2020[29] - The income tax expenses increased to approximately RMB 3.6 million for the six months ended June 30, 2020, from RMB 0.6 million for the same period in 2019, primarily due to increased operating profit[30] - The company incurred total employee costs of RMB 19,548,000, which is an increase of 31.67% from RMB 14,809,000 in the previous year[97] Acquisitions and Investments - The company completed the acquisition of 77.78% of Xiangfu Jinling Co., which owns 90% of the gold mine in the Solomon Islands[10] - The company acquired 77.78% equity in Xiangfu Gold Mine for a total consideration of AUD 53.473 million, including AUD 11.11 million for reconstruction works[16] - The company has a total acquisition cost of approximately RMB 182,127,000 for the acquisition of 77.78% of Xiangfu Jinling Limited, which includes cash payments and costs related to reconstruction activities[114] - The company is conducting a feasibility study to expand the Xinzhang Mine's capacity to 900,000 tons per year[14] - The company plans to further develop and upgrade the processing plant at the Jinling Mine, which is expected to contribute to revenue and profit[10] Cash Flow and Liquidity - Cash generated from operating activities was approximately RMB 16.1 million for the six months ended June 30, 2020, compared to RMB 29.1 million for the same period in 2019[33] - The company reported a significant increase in cash and cash equivalents, totaling RMB 25,005,000 as of June 30, 2020, compared to RMB 739,000 at the end of June 30, 2019[83] - The company’s current liabilities exceeded its current assets by approximately RMB 227,443,000 as of June 30, 2020, indicating liquidity challenges[85] - The company has secured new bank loans amounting to RMB 101,000,000 during the reporting period, which is primarily used for current operational funding[85] Shareholder Information - Major shareholders include Jiesheng Investment Limited with 281,400,000 shares (39.08%) and Dafeng Investment Limited with 138,600,000 shares (19.25%) as of June 30, 2020[71] - The stock option plan allows for a maximum of 60,000,000 shares to be granted, representing approximately 8.33% of the issued share capital as of the mid-term report date[62] - The plan requires shareholder approval if any participant's options exceed 1% of the issued shares within any 12-month period[63] Compliance and Governance - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2020, and confirmed compliance with relevant accounting standards[60] - The company did not engage in any significant transactions with related parties during the reporting period[119] - As of June 30, 2020, there were no outstanding balances with related parties, indicating no financial dependencies[119]