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]

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].