Financial Performance - The company reported a profit attributable to owners of RMB 55.5 million for the same period, reflecting the challenges faced in the metals market due to macroeconomic conditions[12]. - The company's revenue decreased by approximately 3.0% from RMB 320.7 million in 2018 to RMB 311.2 million in 2019, primarily due to a reduction in the quantity of concentrates sold[34]. - Overall gross profit decreased by approximately 20.1% from RMB 135.6 million in 2018 to RMB 108.3 million in 2019, with a gross margin decline from 42.3% to 34.8%[34]. - The company's net profit after tax decreased by approximately 22.9% to RMB 55.4 million for the year ended December 31, 2019, down from RMB 71.9 million for the previous year[41]. - The net profit attributable to the owners of the company fell by about 23.0% to RMB 55.5 million for the year ended December 31, 2019, compared to RMB 72.1 million in the prior year[42]. - Basic earnings per share for 2019 were RMB 7.7, down from RMB 10.1 in 2018, indicating a decrease of about 23.8%[196]. - Total revenue for the year ended December 31, 2019, was RMB 311,155,000, a decrease from RMB 320,669,000 in 2018, representing a decline of approximately 4.7%[196]. - Gross profit for 2019 was RMB 108,300,000, down from RMB 135,630,000 in 2018, indicating a decrease of about 20.2%[196]. Market Conditions - The copper market experienced a supply shortage of 94,000 tons in 2019, compared to a shortage of 275,000 tons in 2018, with global refined production increasing by 0.3% to 23.7 million tons[14]. - The iron ore market saw significant price fluctuations, with prices exceeding USD 120 per ton in the first half of 2019 due to supply disruptions from Brazil and Australia[15]. - The zinc market faced a supply shortage of 243,700 tons in 2019, a shift from a surplus of 108,000 tons in the previous year, with global refined production rising by 2.8%[16]. - The lead market recorded a supply shortage of 329,000 tons for the year ending December 31, 2019, compared to a shortage of 243,000 tons in 2018[17]. - Global refined lead production from primary and secondary sources totaled 12.4 million tons, a 6% increase from the same period in 2018[17]. - The company maintains a cautious optimism regarding the non-ferrous metals market for 2020, influenced by the uncertainties brought by the COVID-19 pandemic[13]. Production and Sales - The company extracted 786,502 tons of ore and sold 3,139 tons of copper concentrate, 108,761 tons of iron concentrate, 5,691 tons of zinc concentrate, 155,444 tons of sulfur concentrate, 690 tons of lead concentrate, 106 kg of gold, 6,587 kg of silver, and 232 kg of copper, generating revenue of RMB 311.2 million and a gross profit of RMB 108.3 million for the fiscal year ending December 31, 2019[12]. - The total ore processed at Xinzhang Mine in 2019 was 782,431 tons, with sales including 3,139 tons of copper concentrate and 108,761 tons of iron concentrate[67]. - The company sold 3,139 tons of copper concentrates, 108,761 tons of iron concentrates, and 5,691 tons of zinc concentrates in 2019, reflecting a decrease in copper and iron but an increase in zinc[34]. Mining Operations and Expansion - The company completed the expansion plan for the Xinzhuang mine, achieving a mining and processing capacity of 600,000 tons per year[20]. - A feasibility study is underway to expand the Xinzhuang mine's capacity to 900,000 tons per year, with a preliminary draft report expected by the end of 2019[20]. - The company is applying for mining permits for the Walege mine, with an updated exploration report submitted in July 2019[21]. - The exploration work at the Xinzhuang mine has confirmed additional mineral resources, increasing the geological reserves by 2.6 million tons[22]. - The company is actively exploring potential acquisitions to diversify risks, having completed the acquisition of Changdu in Tibet since 2017 and is in the process of acquiring the Solomon Islands gold mine in 2019[139]. Corporate Governance - The company has adhered to the corporate governance code throughout the year ending December 31, 2019, except for specific deviations noted in the report[82]. - 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 and strategic planning experience[84]. - The company has established written guidelines for employees regarding insider trading, ensuring compliance with standards[83]. - The independent non-executive directors bring extensive experience, with backgrounds in finance, mining, and legal affairs, enhancing the board's oversight capabilities[79][80]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[86]. Environmental and Social Responsibility - The company emphasizes maintaining a safe working environment for employees and ensuring compliance with legal and regulatory obligations[113]. - The company achieved a water recycling rate exceeding the target of 75% through optimized wastewater circulation systems[123]. - The company has implemented a quality control policy to ensure that the quality of its refined products meets customer standards, with no significant complaints regarding product quality in 2019[134]. - The company has a policy against child labor and forced labor, with no violations reported during the year[132]. - The company provided RMB 198,000 in donations to employees in need and RMB 291,000 to charitable activities during the year[136]. Financial Position and Commitments - The company's cash and cash equivalents decreased to approximately RMB 4.7 million as of December 31, 2019, down from RMB 22.0 million at the end of 2018[47]. - The total bank borrowings amounted to approximately RMB 49.9 million as of December 31, 2019, with an effective interest rate of approximately 5.73%[48]. - The company's asset-liability ratio decreased to 8.7% in 2019 from 16.5% in 2018, attributed to increased deposits for the acquisition of a subsidiary and reduced bank borrowings[48]. - The group had no significant contingent liabilities or guarantees as of December 31, 2019[55]. - The group is actively seeking alternative funding sources to meet its liquidity needs for the next twelve months[186].

Financial Performance - The company extracted 754,974 tons of ore and sold 3,446 tons of copper concentrate, 111,153 tons of iron concentrate, 5,096 tons of zinc concentrate, 150,569 tons of sulfur concentrate, 905 tons of lead concentrate, 128 kg of gold, 6,884 kg of silver, and 341 kg of copper, generating revenue of RMB 320.7 million, gross profit of RMB 135.6 million, and profit attributable to owners of RMB 72.1 million for the fiscal year ended December 31, 2018[34]. - The company's revenue decreased by 8.0% from approximately RMB 348.5 million in 2017 to approximately RMB 320.7 million in 2018, primarily due to a reduction in the volume of concentrates sold[58]. - The overall gross profit for 2018 was approximately RMB 135.6 million, a decrease of about 13.9% from RMB 157.4 million in 2017, with the gross profit margin dropping from 45.2% to 42.3%[59]. - The net profit after tax increased by approximately 2.3% or RMB 16 million, from RMB 703 million in 2017 to RMB 719 million in 2018, with a net profit margin rising from 20.2% to 22.4%[64]. - The profit attributable to the owners of the company increased by approximately 1.8% or RMB 12 million, from RMB 709 million in 2017 to RMB 721 million in 2018[65]. - Basic earnings per share for 2018 was RMB 10.1, down from RMB 11.7 in 2017, representing a decrease of 13.7%[189]. Market Conditions - The copper market recorded a surplus of 496,000 tons for the fiscal year ended December 31, 2018, compared to a surplus of 138,000 tons in 2017, with global refined production increasing by 1.1% to 23.66 million tons[36]. - The global zinc market had a surplus of 48,500 tons for the fiscal year ended December 31, 2018, with global refined production decreasing by 2.8% compared to 2017[37]. - The lead market recorded a supply shortage of 204,000 tons for the year ending December 31, 2018, compared to a shortage of 386,000 tons in 2017[38]. - The company maintains a cautiously optimistic outlook on the non-ferrous metals market due to uncertainties arising from the US-China trade tensions and their impact on commodity prices[35]. Operational Developments - The company completed the acquisition of a 51% stake in Tibet Changdu on July 13, 2017, which owns the Walege mine with significant lead and silver resources[40]. - The company has completed the expansion plan for the Xinzhuang mine, achieving a mining and processing capacity of 600,000 tons per year[41]. - A feasibility study is underway to expand the Xinzhuang mine's capacity to 900,000 tons per year, with the report expected by the end of 2019[41]. - The company is applying for mining permits for the Walege mine, with the industrial indicators report completed in February 2018[41]. Financial Position - Total assets as of December 31, 2018, amounted to RMB 1,171,991,000, an increase of 13.7% from RMB 1,030,487,000 in 2017[190]. - The company's equity attributable to owners increased to RMB 584,725,000, up from RMB 458,157,000 in 2017, reflecting a growth of 27.6%[191]. - Cash and cash equivalents decreased significantly to RMB 21,989,000 from RMB 108,639,000 in 2017, a decline of 79.8%[190]. - The group incurred a net cash outflow of RMB 87,912,000 for the year ended December 31, 2018, which included net cash inflow from operating activities of RMB 147,230,000 and net cash outflow from investing activities of RMB 233,201,000[197]. Corporate Governance - The company’s board of directors includes executive, non-executive, and independent non-executive members, ensuring a diverse governance structure[32]. - The company has adhered to the corporate governance code and maintained high levels of corporate governance to protect shareholder interests[99]. - The independent non-executive directors have confirmed their independence according to the relevant listing rules[100]. - The board established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific matters[101]. Environmental and Social Responsibility - The company reported a total water consumption of approximately 3,904,000 tons in 2018, an increase from 3,100,000 tons in 2017, with a recycling rate of 85.8%[131]. - The company has implemented various measures for dust control and noise reduction in its operations to maintain environmental standards[132]. - The company has committed to maintaining a safe working environment, aiming for zero fatalities and occupational diseases[130]. - The company has established a dedicated department for occupational health and safety, ensuring compliance with regulations and safety measures[137]. Future Outlook - The outlook for commodity prices in 2019 is expected to be volatile and unstable due to global uncertainties[91]. - The company plans to expand mineral resources and increase ore reserves through the acquisition of new mines[91]. - The company is considering using available hedging products to reduce the impact of commodity price fluctuations and is expanding its product portfolio through acquisitions[148].