Core Insights - The market is increasingly focused on the dual-driven model of Biyou Group Holdings Limited, particularly its "civil explosives + mining" strategy, amid fluctuations in international gold and copper prices [2] - Biyou Group's indirect non-wholly owned subsidiary, Inner Mongolia Juliy Engineering Blasting Co., Ltd., has upgraded to a first-class qualification in mining engineering construction, enabling it to undertake large and complex engineering projects independently [2] - The company is recognized for its potential as the "Molybdenum-Copper Prince," leveraging its resources in the Tibet Tianren project, which has not yet been fully valued by the market [2][3] Company Overview - The Tibet Tianren project is located in the Mêdog County of Lhasa, Tibet, and is characterized by a "molybdenum-copper dual core" resource endowment, with over 400,000 tons of molybdenum metal resources and confirmed copper metal reserves [3] - The project has significant exploration potential, with advancements in deep exploration technologies suggesting the possibility of discovering additional independent molybdenum, copper, gold, silver, and lead-zinc deposits [3] - The development progress of the Tianren project is on track, with geological exploration and infrastructure planning proceeding as scheduled, supported by favorable policies for resource development in Tibet [3] Market Dynamics - Recent increases in molybdenum prices are expected to further elevate Biyou Group's value potential, driven by a strong growth in demand and constrained supply in the global molybdenum market [4] - The demand for copper, particularly in the renewable energy sector, is also on the rise, contributing to the company's growth narrative [4] - The market has not fully recognized the "molybdenum-copper logic" of Biyou Group, indicating substantial room for valuation upgrades in the future [4] Future Outlook - The Tianren project is currently in the infrastructure phase and has not yet entered the actual mining and profit release cycle, which affects its current market valuation [4] - The approval and initiation of infrastructure for the Tianren project, combined with rising molybdenum and copper prices, are expected to significantly enhance market interest [4] - In the medium to long term, the company aims to establish a sustainable development cycle through resource development and service support, bolstered by the ongoing capacity release from the Anhui Jinding project [4] Investment Opportunity - The current valuation misalignment due to the market's lack of awareness of the company's substantial resource value presents an investment opportunity [5] - As the market gains a more comprehensive understanding of the molybdenum and copper resources at the Tibet Tianren project, the core value of the company is expected to solidify [5]

Core Viewpoint - The company, Biyou Group, has successfully upgraded its indirect non-wholly-owned subsidiary, Inner Mongolia Juliy Engineering Blasting Co., Ltd. ("Juliy Blasting"), to a first-class qualification in mining engineering construction contracting, becoming a dual first-class qualification enterprise in China [1] Group 1: Company Qualifications - Juliy Blasting now holds both "First-Class Mining Engineering Construction Contracting" and "First-Class Commercial Blasting Operation Unit" qualifications, which are essential for undertaking large and complex engineering projects in the mining sector [1] - The dual first-class qualification is a certification that reflects the comprehensive service capability of the enterprise in the mining engineering field [1] Group 2: Future Strategy - Moving forward, Juliy Blasting aims to leverage its dual first-class qualification to promote a high-quality development strategy [1] - The company plans to build a full industry chain centered around its core business, with various business units developing in synergy [1]

Core Viewpoint - The company has successfully upgraded its indirect non-wholly-owned subsidiary, Inner Mongolia Juliy Engineering Blasting Co., Ltd. (Juliy Blasting), to a first-class qualification in mining engineering construction contracting, becoming a dual first-class qualification enterprise in China [1] Group 1: Company Developments - Juliy Blasting now holds both "First-Class Mining Engineering Construction Contracting" and "First-Class Commercial Blasting Operation Unit" qualifications, enhancing its service capability in the mining sector [1] - The dual first-class qualification allows the company to independently undertake large and complex engineering projects, including large-scale open-pit mining, precise underground mining, and tailings pond management [1] Group 2: Strategic Direction - The company plans to leverage its dual first-class qualification to advance its high-quality development strategy [1] - The focus will be on building a full industry chain centered around its core business, promoting collaborative development across various business segments [1]

Core Viewpoint - The company, Biyou Group, has successfully upgraded its indirect non-wholly-owned subsidiary, Inner Mongolia Juliy Engineering Blasting Co., Ltd. (Juliy Blasting), to a first-class qualification in mining engineering construction contracting, making it a dual first-class qualification enterprise in China [1] Group 1: Company Developments - Juliy Blasting now holds both "First-Class Mining Engineering Construction Contracting" and "First-Class Commercial Blasting Operation Unit" qualifications, enhancing its service capability in the mining sector [1] - The dual first-class qualification allows the company to independently undertake large and complex engineering projects, including large-scale open-pit mining, precise underground mining, and tailings pond management [1] - The company plans to leverage its dual qualifications to advance its high-quality development strategy and establish a full industry chain centered around its core business with collaborative development across various operations [1]

Group 1 - The core viewpoint of the news is that Biyou Group has achieved a significant upgrade in its ESG rating from BB to A by Wind, reflecting its strong performance in sustainable development [1][3][4] - The A rating from Wind indicates that Biyou Group is among the top performers in the industry regarding environmental, social, and governance dimensions, with only about 19.35% of companies in the basic chemical industry achieving this rating [3] - The upgrade is attributed to systematic sustainable development initiatives, including air pollutant reduction, greenhouse gas management, waste resource utilization, and ecological restoration [3][4] Group 2 - Biyou Group's ESG report highlights its commitment to environmental measures, social responsibility, and governance practices, including local operations along the Belt and Road Initiative [3][4] - The governance structure includes a comprehensive compliance management system and risk control processes, with a dedicated ESG working group reporting directly to the board [3][4] - Wind's ESG rating system is recognized for its authoritative and influential position in China's financial information services, integrating international standards with local disclosure policies [4]

Revenue and Profit Performance - Revenue for the six months ended 30 September 2024 was approximately RMB859.20 million, representing a 34.42% increase compared to the same period in the previous fiscal year[7] - Total revenue grew by 34.4% to RMB 859,197 thousand in H1 2024, up from RMB 639,195 thousand in H1 2023[34] - External sales for the six months ended 30 September 2024 increased to RMB 859,197 thousand, up from RMB 639,195 thousand in the same period in 2023, representing a growth of 34.4%[36] - The Group's turnover for the Interim Period increased by approximately 34.42% compared to the same period in 2023, driven by increased demand for civilian explosives and higher production capacity[68] - Profit attributable to owners for the Interim Period was approximately RMB85.47 million[8] - Total comprehensive income attributable to owners for the Interim Period was approximately RMB87.85 million[9] - Basic earnings per share for the Interim Period was approximately RMB0.024[10] - Gross profit for the Interim Period was RMB378.30 million, compared to RMB259.43 million in the same period last year[14] - Operating profit for the Interim Period was RMB250.83 million, up from RMB211.10 million in the previous year[14] - Profit before income tax for the Interim Period was RMB242.41 million, compared to RMB206.92 million in the same period last year[14] - Segment profit for the six months ended 30 September 2024 rose to RMB 252,348 thousand, compared to RMB 203,902 thousand in the same period in 2023, an increase of 23.8%[36] - Profit before income tax for the six months ended 30 September 2024 was RMB 242,414 thousand, up from RMB 206,916 thousand in the same period in 2023, a growth of 17.2%[36] - Profit for the period attributable to owners of the Company for the six months ended 30 September 2024 was RMB 85,474 thousand, down from RMB 98,755 thousand in the same period in 2023, a decrease of 13.5%[46] - Total comprehensive income for the period was RMB 98,602,000 as of 30 September 2024[24] Tax and Expenses - Income tax expense for the Interim Period was RMB59.91 million, significantly higher than RMB18.88 million in the previous year[14] - Current tax for the period – PRC Enterprise Income Tax increased to RMB 24,065 thousand in 2024 from RMB 11,924 thousand in 2023, a significant rise of 101.7%[39] - Tajikistan Corporation Income Tax for the six months ended 30 September 2024 was RMB 8,344 thousand, up from RMB 6,954 thousand in the same period in 2023, an increase of 20.0%[39] - Depreciation of property, plant and equipment for the six months ended 30 September 2024 was RMB 49,178 thousand, compared to RMB 41,710 thousand in the same period in 2023, a rise of 17.9%[42] - Finance costs – Interest charge on bank and other borrowings for the six months ended 30 September 2024 increased to RMB 8,414 thousand from RMB 4,186 thousand in the same period in 2023, a growth of 101.0%[42] - Selling and distribution expenses increased significantly due to higher sales volume and the inclusion of approximately RMB16 million in freight charges in the cost of goods sold[68] Assets and Liabilities - Non-current assets increased to RMB 3,033,638,000 as of 30 September 2024, up from RMB 2,986,814,000 as of 31 March 2024[18] - Current assets rose to RMB 1,341,973,000 as of 30 September 2024, compared to RMB 939,687,000 as of 31 March 2024[18] - Net current liabilities improved to RMB (406,415,000) as of 30 September 2024, from RMB (952,134,000) as of 31 March 2024[18] - Total equity increased to RMB 1,826,279,000 as of 30 September 2024, up from RMB 1,691,686,000 as of 31 March 2024[20] - Equity attributable to owners of the company grew to RMB 903,897,000 as of 30 September 2024, compared to RMB 848,791,000 as of 31 March 2024[20] - Non-controlling interests increased to RMB 922,382,000 as of 30 September 2024, up from RMB 842,895,000 as of 31 March 2024[20] - Retained earnings rose to RMB 916,329,000 as of 30 September 2024, compared to RMB 881,583,000 as of 1 April 2024[24] - Net assets of the Group amounted to approximately RMB1,826.28 million as of 30 September 2024, an increase from RMB1,691.69 million as of 31 March 2024[69] - Current assets increased to approximately RMB1,341.97 million as of 30 September 2024, compared to RMB939.68 million as of 31 March 2024[69] - The Group's gearing ratio was 59.29% as of 30 September 2024, compared to 56.92% as of 31 March 2024[72] Cash Flow - Net cash generated from operating activities increased significantly to RMB 226,437 thousand in H1 2024, compared to RMB 16,709 thousand in H1 2023[27] - Cash and cash equivalents at the end of the period stood at RMB 323,698 thousand, up from RMB 295,271 thousand in H1 2023[27] - Net cash used in investing activities decreased to RMB 110,904 thousand in H1 2024, compared to RMB 195,142 thousand in H1 2023[27] - Net cash used in financing activities reduced to RMB 15,389 thousand in H1 2024, down from RMB 112,768 thousand in H1 2023[27] - Cash and cash equivalents stood at approximately RMB323.70 million as of 30 September 2024, up from RMB223.78 million as of 31 March 2024[69] Business Operations and Sales - The Group's revenue is entirely derived from contracts with customers, primarily from the sale of explosives, blasting operations, and mineral concentrates[33] - Sales of explosives increased by 24.7% to RMB 448,059 thousand in H1 2024, compared to RMB 359,416 thousand in H1 2023[34] - Sales of mineral concentrates surged by 62.5% to RMB 351,186 thousand in H1 2024, up from RMB 216,156 thousand in H1 2023[34] - Revenue from the blasting business increased due to a rise in production volume from 104,000 tons to 121,000 tons starting August 2023[68] - The Group completed construction and began trial operations of new processing facilities for iron-oxide and gold sludge extraction in October 2023, contributing to improved revenue[68] - External sales of the mining operation increased, but segment profit decreased due to a waiver income of approximately RMB32 million in the previous period[68] - The Group's sales volume of civil explosive products increased in the first half of the year, driven by higher market demand for mineral resources and coal energy in Inner Mongolia[78] - The Group's sales volume of civil explosive products in Central Asia declined slightly due to unstable operations of its major customers[78] Exploration and Development - Anhui Jinding mined a total of 457,387 tons of ore with average grades of sulfur 8.43%, copper 0.36%, and gold 0.62g/t for the six months ended 30 September 2024[74] - Anhui Jinding completed 1,470 meters of surface drilling and 6,394.6 meters of in-pit drilling for production exploration during the six months ended 30 September 2024[74] - Exploration expenditures for Anhui Jinding were RMB2,572 thousand, development expenditures were RMB949 thousand, and mining expenditures were RMB23,897 thousand for the six months ended 30 September 2024[76] - Exploration expenditures for Tibet Tianren were RMB1,877 thousand for the six months ended 30 September 2024[76] - The construction of the detonator production line in Tajikistan is progressing steadily, with the project launch ceremony hosted by the President of Tajikistan[78] - The Tibet Tianren project approval process was mostly completed and is currently in the pre-construction preparation stage[78] - Additions to property, plant and equipment during the six months ended 30 September 2024 amounted to RMB 119 million[49] - Capital commitments for the acquisition of property, plant, and equipment amounted to RMB23,844 thousand[63] Shareholder and Management Information - Mr. Liu Fali holds a 6.81% stake in the company with 242,415,854 ordinary shares[84] - Ms. Qin Chunhong holds 34,024,908 ordinary shares (L), representing 0.96% of the company's shares[85] - Ms. Ma Ye holds 126,005,000 ordinary shares (L), representing 3.54% of the company's shares[85] - Interests of parties to an agreement under sections 317(1)(a) and 318 of the SFO include 1,776,098,222 ordinary shares (L), representing 49.91% of the company's shares[85] - Mr. Ma Suocheng is deemed to be interested in 1,902,103,222 ordinary shares (L), representing 53.45% of the company's shares[96] - Shiny Ocean holds 1,361,516,331 ordinary shares (L), representing 38.26% of the company's shares[92] - Ma Family Holdings Co. Limited holds 1,361,516,331 ordinary shares (L), representing 38.26% of the company's shares[93] - Equity Trustee Limited holds 1,361,516,331 ordinary shares (L), representing 38.26% of the company's shares[95] - Pin On Everest Asset Holdings Ltd holds 58,980,000 shares of the company, with Mr. Ma Tianyi deemed to be interested in these shares[87] - Crystal Sky Development Inc. holds 34,024,908 shares of the company, with Ms. Qin Chunhong deemed to be interested in these shares[87] - As of 30 September 2024, no other directors or chief executives have disclosed interests or short positions in the company's shares[88] - Ms. Ma Xia holds 172,166,037 ordinary shares, representing 4.84% of the company's issued shares[98] - Interests of parties under an agreement to acquire shares total 1,729,937,185 ordinary shares, representing 48.61% of the company's issued shares[98] - Mr. Ma Qiang, founder of a discretionary trust, holds 1,902,103,222 ordinary shares, representing 53.45% of the company's issued shares[98] - Mr. Yang Tao holds 255,599,268 ordinary shares, representing 7.18% of the company's issued shares[98] - Mr. Li Man holds 252,959,268 ordinary shares, representing 7.10% of the company's issued shares[98] - Mr. Lv Wenhua holds 220,696,854 ordinary shares, representing 6.20% of the company's issued shares[98] - The Share Award Scheme allows for a maximum of 200,000,000 shares to be awarded, representing approximately 5.62% of the company's issued share capital[102] - No shares were awarded under the Share Award Scheme during the six months ended 30 September 2024[104] - The Share Award Scheme expired in July 2024 after a five-year term[104] - The company has not been notified of any other persons with discloseable interests or short positions in the shares as of 30 September 2024[100] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the six months ended 30 September 2024[106] - No significant competition interests were reported by directors or controlling shareholders during the six months ended 30 September 2024[106] - The company has complied with the Code on Corporate Governance Practices as per the GEM Listing Rules[106] - No changes in the Board or Directors' information since the annual report for the year ended 31 March 2024[110][111] - The company adopted a code of conduct for Directors' securities transactions, with no reported non-compliance during the six months ended 30 September 2024[112][113] - The audit committee, composed of three independent non-executive directors, reviewed and commented on the interim report for the six months ended 30 September 2024[114][115][116] - Remuneration paid/payable to key management personnel for the period amounted to RMB1,525,500, compared to RMB1,408,680 in the same period last year[65] Dividends and Other Financial Information - The Board does not recommend the payment of an interim dividend[11] - Dividends paid to non-controlling interests amounted to RMB (18,343,000) for the period[24] - Contribution from non-controlling interests was RMB 4,000 for the period[24] - Other income decreased by approximately RMB32 million due to the recognition of a loan waiver in the previous period[68] - Contract assets and net trade receivables totaled RMB383,533 thousand as of 30 September 2024, with an aging analysis showing 86,665 thousand within 0-30 days and 164,380 thousand over 1 year[56] - Bills receivables generally have credit terms ranging from 6 to 12 months, with a total of RMB468,001 thousand as of 30 September 2024[53] Future Plans and Outlook - The Group will continue to strengthen the technical and management capabilities of its domestic and foreign subsidiaries to respond to market changes[80] - The Group plans to optimize the long-term production and operational management of the Anhui Jinding Project while accelerating the development of the Tibet Tianren Project[80] - The Group's blasting services and mining construction engineering teams will focus on supporting the civil explosive production and mining segments, aiming to undertake related projects in China and Central Asia[80] - The Group is confident in maintaining the current pace of project development, which aligns with management's expectations[80] - The Group's financial indicators remain stable with sufficient cash flow to support various construction investments[78]

Financial Performance - The group's revenue for the six months ended September 30, 2024, was approximately RMB 859.20 million, representing a growth of about 34.42% compared to the same period last year[5]. - The profit attributable to the owners of the company for the same period was approximately RMB 85.47 million[9]. - The total comprehensive income attributable to the owners of the company for the period was approximately RMB 87.85 million[9]. - The basic earnings per share for the period was approximately RMB 0.024[5]. - The operating profit for the period was RMB 250.83 million, an increase from RMB 211.10 million in the previous year[7]. - Total revenue for the six months ended September 30, 2024, was RMB 859,197,000, an increase of 34.3% compared to RMB 639,195,000 for the same period in 2023[23]. - The company reported a pre-tax profit of RMB 242,414 thousand for the current period, compared to RMB 206,916 thousand for the same period last year, indicating an increase of approximately 17.1%[27][29]. - Basic earnings per share for the six months ended September 30, 2024, were RMB 85,474 thousand, down from RMB 98,755 thousand in the same period of 2023, reflecting a decrease of about 13.4%[35]. - The total tax expense for the six months ended September 30, 2024, was RMB 59,911 thousand, compared to RMB 18,878 thousand for the same period in 2023, showing a significant increase of approximately 216.5%[32]. Revenue Sources - Sales of civil explosives reached RMB 448,059,000, up 24.7% from RMB 359,416,000 in the previous year[23]. - Revenue from the sale of concentrates increased significantly to RMB 351,186,000, compared to RMB 216,156,000, reflecting a growth of 62.5%[23]. - For the six months ended September 30, 2024, total external sales reached RMB 859,197 thousand, a significant increase from RMB 639,195 thousand for the same period in 2023, representing a growth of approximately 34.4%[29]. Cash Flow and Assets - Net cash generated from operating activities for the six months ended September 30, 2024, was RMB 226,437,000, a substantial increase from RMB 16,709,000 in the same period last year[18]. - The net cash used in investing activities was RMB 110,904,000, compared to RMB 195,142,000 in the previous year, indicating improved cash flow management[18]. - The company reported a net increase in cash and cash equivalents of RMB 100,144,000, contrasting with a decrease of RMB 291,201,000 in the same period last year[18]. - The total assets less current liabilities amounted to RMB 2,627.22 million as of September 30, 2024[11]. - Non-current assets, including property, plant, and equipment, were valued at RMB 2,127.95 million[11]. - The net asset value of the company was RMB 1,826.28 million as of September 30, 2024[13]. - The group's current assets amounted to approximately RMB 134,197 million, with cash and cash equivalents totaling RMB 38,646 million as of September 30, 2024[50]. Operational Strategy and Outlook - The company plans to continue expanding its operations in China, focusing on the production and sale of explosives and mining services[20]. - Future outlook remains positive with expectations of continued revenue growth driven by increased demand for civil explosives and mining services[20]. - The company is committed to enhancing its product offerings and exploring new technologies in the explosives sector[20]. - The group aims to strengthen the technical and management capabilities of its domestic and overseas subsidiaries to adapt to future market changes[68]. Shareholder Information - As of September 30, 2024, the company has a total of 1,902,103,222 shares of common stock held by major shareholders, representing 53.45% ownership[78]. - Liu Fali holds 242,415,854 shares of common stock, accounting for 6.81% of the total shares[72]. - The company has a significant shareholder, Yao Yang, with 1,361,516,331 shares, which is 38.26% of the total shares[78]. - The total number of shares held by Ma Family Holdings Co. Limited is also 1,361,516,331, representing 38.26%[78]. - The company has a total of 1,659,687,368 shares of common stock disclosed under agreements, which is 46.64% of the total shares[72]. - The ownership structure indicates that Ma Shaocheng, Ma Xia, and Ma Ye collectively hold significant shares through various agreements, totaling 1,902,103,222 shares[78]. - The company has a diverse shareholder base, with significant stakes held by various individuals and entities, indicating a strong ownership structure[78]. Corporate Governance - The company has complied with the Corporate Governance Code as per the GEM Listing Rules during the review period[93]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim report for the six months ending September 30, 2024[96]. - There have been no changes to the board of directors since the annual report date ending March 31, 2024[94]. - The company has adopted a higher standard for securities trading by directors than those required by the GEM Listing Rules[95]. - The company confirms that all information in the announcement is accurate and complete, with no misleading or fraudulent elements[99].

Financial Performance - The group recorded a total revenue of approximately RMB 1.36637 billion, representing a decrease of about 8.57% compared to the previous fiscal year[21]. - Sales of explosive products accounted for 52.35% of total revenue, while sales of refined minerals contributed 37.73%[25]. - The gross profit margin improved due to a further decline in raw material prices, particularly benefiting the Anhui Jinding project[21]. - The company proposed a final dividend of HKD 0.01 per share, sharing the benefits of stable development with all shareholders[14]. - The company's distributable reserves as of March 31, 2024, were approximately RMB 722 million, compared to RMB 709 million as of March 31, 2023[189]. - Interest expenses for the year were RMB 102 million, down from RMB 143 million in the previous year[200]. - Charitable donations for the year totaled RMB 1,630,000, significantly higher than RMB 240,000 in the previous year[191]. Project Developments - The group achieved stable sales of civil explosives in Inner Mongolia and mining operations in Anhui, with improved gross margins due to declining raw material prices[12]. - The gold recovery rate from the carbon slurry gold extraction project in Anhui significantly increased, enhancing the overall profitability of the Anhui Jinding project[12]. - The group successfully divested from the Tibet Huatai Long construction project, with growth in the Anhui Jinding project and Inner Mongolia explosives business compensating for this loss[12]. - The construction of the mining site for Tibet Tianren Mining Co., Ltd. is set to begin in the second half of 2024, laying a solid foundation for the group's long-term development[13]. - The Tajikistan detonating cord production line has commenced construction, expected to support more Belt and Road Initiative projects, enhancing the group's influence and profitability in Central Asia[13]. - The group plans to optimize the production capacity allocation of the civil explosives segment to enhance sales and profit margins[22]. - The group is focused on accelerating the construction progress of the Tibet Tianren project, which is expected to become a solid foundation for future development[23]. - The company plans to commence mining construction in the second half of 2024[101]. - Tibet Tianren expects to receive approval for the environmental impact report in the second half of 2024 before commencing mining construction[108]. Resource and Production - The company produced a total of 1,075,090 tons of ore, including 963,070 tons of copper-gold ore with an average grade of 0.81 g/t gold and 0.44% copper[43]. - The newly established gold recovery workshop has processed approximately 283 kg of gold mud, containing about 7.72 kg of metallic gold with a gold content of 27% as of March 31, 2024[43]. - The total mineral resource for the Huangtun pyrite mine is reported as 17.42 million tons with an average copper grade of 0.31%[47]. - The company has achieved a production capacity of approximately 3,000 tons per day, with all mining and tunneling outsourced to two contractors[49]. - The company has a total ore reserve of 8.94 million tons with a copper grade of 0.34% and a gold grade of 0.93 g/t in the western area[84]. - The eastern area has a total ore reserve of 6.28 million tons with a sulfur grade of 22.85% and a copper grade of 0.17%[84]. - The estimated mineral resources at the Bangpu mine are 658.73 Mt, with indicated resources of 73.58 Mt at an average copper grade of 0.200% and molybdenum grade of 0.071%[94]. - The estimated ore reserves as of March 31, 2024, are 115.67 Mt with an average copper grade of 0.224% and molybdenum grade of 0.079%[100]. - The recovery rates for molybdenum and copper are projected at 84.50% and 91.00%, respectively, with designed grades of 53% for molybdenum and 22% for copper[105]. Governance and Compliance - The company has maintained a strong governance structure, with all independent non-executive directors confirmed as independent as of the report date[51]. - The board held a total of 7 meetings during the year, with all executive directors attending all meetings[50]. - The total director remuneration for the year was approximately RMB 2,590,000, a decrease from RMB 2,890,000 in the previous year[58]. - The auditor's fees for audit and other services amounted to approximately RMB 2,990,000 for the year[59]. - The company has established a nomination committee to review the board's structure and recommend suitable candidates for directorship[63]. - The company has established an internal audit department to independently review the adequacy and effectiveness of risk management and internal control systems[126]. - The board has reviewed the effectiveness of the internal control system and considers it sufficient, with management continuously monitoring risks and internal controls[129]. - The company has implemented a disclosure policy to ensure timely and consistent disclosure of inside information in compliance with GEM Listing Rules[130]. - The company has a zero-tolerance policy towards corruption and bribery, ensuring compliance with applicable laws and regulations[133]. - The board has established a whistleblowing procedure to encourage reporting of misconduct and dishonest behavior[133]. - The company has achieved measurable goals for board diversity, including at least one-third of non-executive or independent non-executive directors and two members with accounting qualifications[144]. - The board consists of three female and five male directors, reflecting a commitment to gender diversity[144]. Employee and Shareholder Relations - The company has a structured process for shareholders to propose suggestions and call special meetings if necessary[147]. - The company emphasizes the importance of good corporate governance to maintain investor confidence and attract investments[150]. - The management is committed to enhancing the corporate governance standards of the group[150]. - The company is focused on providing equal employment and advancement opportunities for all employees, regardless of gender, age, religion, or origin[145]. - The gender ratio in the company's workforce, including senior management, is approximately 4:1, indicating gender diversity at the team level[145]. - The company has reviewed the implementation and effectiveness of its shareholder communication policy, finding it effective[140]. - The company has established multiple channels for ongoing communication with shareholders, including announcements and reports available on the HKEX and the company's website[148]. - The company has a clear policy for shareholder communication that has been deemed satisfactory and effective during the fiscal year[148].

Financial Performance - The profit before tax from continuing operations is RMB 331,599,000[1] - Basic earnings per share from continuing operations for 2024 is RMB 0.0376, compared to RMB 0.0252 for 2023, representing a 49.6% increase[4] - The total profit attributable to the company's owners for 2024 is RMB 131,028,000, up from RMB 88,021,000 in 2023, indicating a growth of 48.9%[4] - The company reported a loss from discontinued operations of RMB 542,000 for 2024, an improvement from a loss of RMB 929,000 in 2023[20] - The profit attributable to owners for the year was approximately RMB 131.03 million[41] - The total comprehensive income attributable to owners for the year was approximately RMB 127.58 million[41] - The basic and diluted earnings per share for the year were approximately RMB 0.037[41] - The company's total comprehensive income for 2024 was RMB 254,877 thousand, compared to RMB 175,207 thousand in 2023, reflecting a growth of 45.3%[49] Revenue and Segments - The total revenue from the mining segment for 2024 is RMB 193,309,000, while the explosives trading and blasting services segment generated RMB 98,060,000[12] - The group's revenue for the year was approximately RMB 1,366.37 million, a decrease of about 8.57% compared to the previous year[41] - Total revenue for 2024 was RMB 1,366,367 thousand, a decrease of 8.6% from RMB 1,494,459 thousand in 2023[60] - Revenue from mining operations in China was RMB 563,358,000, while revenue from explosive products and services was RMB 803,009,000, contributing to a total of RMB 1,366,367,000[101] Expenses and Costs - Interest income for the year is RMB 6,041,000, with interest expenses totaling RMB 27,241,000, resulting in a net interest expense of RMB 21,200,000[12] - The company has recorded a total depreciation and amortization expense of RMB 107,842,000 for the year[12] - The cost of goods sold recognized for the year 2024 was RMB 701,232,000, slightly up from RMB 692,305,000 in 2023, representing an increase of approximately 1.3%[1] - The total income tax provision for the year 2024 was RMB 29,480,000, compared to RMB 28,430,000 in 2023, showing an increase of about 3.7%[4] - Research and development costs for the year 2024 amounted to RMB 38,119,000, down from RMB 41,069,000 in 2023, indicating a reduction of about 7.2%[1] Assets and Liabilities - Non-current assets grew to RMB 2,986,814 thousand in 2024, an increase of 5.4% from RMB 2,833,843 thousand in 2023[52] - Current liabilities decreased to RMB 1,891,821 thousand, down 15.0% from RMB 2,226,329 thousand in 2023[53] - Cash and cash equivalents decreased to RMB 223,776 thousand, down 61.9% from RMB 586,625 thousand in 2023[52] - The company’s total equity increased to RMB 1,691,686 thousand in 2024, up 2.8% from RMB 1,645,813 thousand in 2023[53] - The company’s asset-liability ratio as of March 31, 2024, was 56.92%, down from 60.49% in the previous year, indicating improved financial stability[120] Operational Developments - The mining business in Anhui province and civil blasting sales in Inner Mongolia achieved expected progress during the year[43] - The carbon slurry gold extraction project in Anhui significantly improved the overall profitability of the project[43] - The construction of the Tajikistan detonator production line has commenced, expected to support more Belt and Road-related projects[44] - The Tibet Tianren mining project is progressing smoothly, with construction expected to start in the second half of 2024[44] - The company plans to continue expanding its operations in Tajikistan, where it generated revenue of RMB 116,806,000[105] Investments and Acquisitions - The company acquired an additional 27% stake in Tibet Tianren for RMB 54,000,000, increasing its ownership from 27% to 54%[145] - The company is in the process of acquiring an additional 40% stake in Biyou International for RMB 50,000,000, which will increase its ownership to 60%[173] Production and Capacity - The company plans to expand the production capacity of the Anhui Jinding project, which is expected to generate long-term benefits[176] - The company expects to achieve an annual production capacity of 6.0 million tons of ore due to the thin cover and significant thickness of the ore body[199] - The projected production plan indicates an annual output of 1.00 million tons from 2024 to 2038, with copper grades ranging from 0.28% to 0.42% and gold grades from 0.79 g/t to 0.99 g/t[190] Safety and Compliance - The company has implemented various safety measures in mining operations, ensuring the safety of underground development at various depths[187] - The company has engaged qualified professionals to review and estimate the mineral resources, ensuring compliance with JORC standards[189]

Financial Performance - Total revenue for the nine months ended December 31, 2023, was RMB 1,007,797 thousand, a decrease of 22.2% compared to RMB 1,295,419 thousand in the same period of 2022[4] - Gross profit increased to RMB 428,876 thousand, up 21% from RMB 354,521 thousand year-over-year[4] - Profit for the period reached RMB 280,207 thousand, representing a 22.3% increase from RMB 229,049 thousand in the prior year[6] - Basic and diluted earnings per share improved to RMB 0.041, compared to RMB 0.035 in the same period last year[6] - Revenue from the sale of explosives and provision of blasting operations was RMB 542,877 thousand, slightly down from RMB 545,951 thousand in 2022[12] - Revenue from non-ferrous metal mining and dressing industry income surged to RMB 353,325 thousand, an increase of 19.5% from RMB 295,555 thousand year-over-year[12] - Operating profit for the nine months was RMB 315,211 thousand, up from RMB 264,308 thousand in the previous year[4] - The company reported other income and gains of RMB 15,719 thousand, a decrease from RMB 17,630 thousand in the same period last year[4] - The total comprehensive income for the period was RMB 276,822 thousand, compared to RMB 229,240 thousand in the prior year[6] - The Group's revenue for the nine months ended 31 December 2023 was approximately RMB1,007.80 million, representing a decrease of approximately 22.2% compared to the corresponding period in the previous fiscal year[21] - The profit attributable to owners for the Period was approximately RMB144.50 million[24] - The total comprehensive income attributable to owners for the Period was approximately RMB139.13 million[25] - The basic profit per share for the Group was approximately RMB0.041 for the Period[22] - The Group's turnover for the quarterly period decreased by approximately 22.2% compared to the corresponding period in 2022[29] - Revenue from the income of non-ferrous metal mining and dressing industry increased by 19.6% compared to the same period last year[29] Taxation and Liabilities - Current tax for the period (EIT) was RMB28,232,000 for the nine months ended 31 December 2023, compared to RMB23,507,000 for the same period in 2022[15] - Deferred tax for the period was not applicable for both periods[15] - The Tajikistan subsidiary is exempt from corporate income tax for five years until November 2022, with applicable rates of 18% and 13% thereafter[14] - Three PRC subsidiaries recognized as New and Hi-tech Enterprises enjoy a preferential EIT rate of 15% for three years starting from their respective recognition dates[14] - The EIT rate for a subsidiary in Lhasa, Tibet, is 9% from 2015 to 2025[14] - The Group reported no material contingent liabilities as of December 31, 2023, consistent with the previous period[49] Assets and Liabilities - As of December 31, 2023, the Group's net assets amounted to approximately RMB 1,796.46 million, an increase from RMB 1,645.81 million as of March 31, 2023[35] - Current assets as of December 31, 2023, were approximately RMB 1,045.93 million, down from RMB 1,332.21 million as of March 31, 2023[35] - The Group's current liabilities amounted to approximately RMB 1,762.52 million as of December 31, 2023, compared to RMB 2,226.33 million as of March 31, 2023[35] - The Group's borrowings are secured by mining rights valued at approximately RMB 242.32 million as of December 31, 2023, up from RMB 149.30 million as of March 31, 2023[42] Investments and Projects - On April 19, 2023, the Group agreed to acquire an additional 27% equity interest in Tibet Tianren Mining Co., Ltd. for a total consideration of RMB 54 million, increasing its interest to 54%[37] - There were no significant investments made by the Group during the nine months ended December 31, 2023[36] - As of December 31, 2023, the Group's capital commitment for the acquisition of property, plant, and equipment amounted to RMB 4,467,000 (approximately USD 0.64 million) compared to RMB 514,000 as of March 31, 2023[45] - The newly built gold extraction project of Anhui Jinding significantly improved the efficiency of the Group's mineral development business, aligning with expectations[51] - The construction of a new detonating tube production line in Tajikistan is expected to significantly increase the Group's market share of civilian explosives in Central Asia[51] - Two new projects, Tibet Tianren Mining and Inner Mongolia's 100,000-ton on-site mixed explosives production system, are anticipated to start construction in 2024[51] Workforce and Operations - The Group's full-time employees decreased to 1,041 as of December 31, 2023, down from 1,253 as of March 31, 2023, reflecting a reduction in workforce[50] - The Group's various businesses remained stable during the nine months ended December 31, 2023, with civilian explosives sales remaining flat compared to the same period last year[51] - The Group aims to explore business expansion opportunities while maintaining stable operations and controlling risks[57] Shareholding and Governance - As of December 31, 2023, Ms. Ma Ye holds 126,005,000 ordinary shares, representing approximately 3.54% of the total shareholding[60] - The Ma family collectively holds 1,902,103,222 ordinary shares, accounting for 53.45% of the total shareholding, due to agreements under the SFO[72] - Shiny Ocean is a beneficial owner of 1,361,516,331 ordinary shares, which is approximately 38.26% of the total shareholding[72] - The total number of ordinary shares held by substantial shareholders includes interests from controlled corporations and trustees[72] - The percentage of shareholding is calculated based on the number of issued shares of the Company as of December 31, 2023[65] - No other directors or chief executives had any interests or short positions in the shares of the Company as of December 31, 2023[68] - The report indicates that the interests of shareholders are disclosed in accordance with the SFO regulations[69] - The company has a significant concentration of ownership, with major shareholders holding over 50% of the shares[72] - The report highlights the importance of compliance with the SFO for transparency in shareholding[69] - The company continues to monitor and disclose any changes in shareholding as required by regulatory standards[68] - As of December 31, 2023, the company had not purchased, sold, or redeemed any of its listed shares during the nine months ended, consistent with the previous year[83] - The share award scheme adopted on July 8, 2019, aims to reward contributions to the group's growth and development, with no share awards granted for the nine months ended December 31, 2023[79][84] - The company has complied with all code provisions set out in the Code on Corporate Governance Practices during the nine months ended December 31, 2023[81] - The largest shareholder, Mr. Ma Qiang, holds 1,902,103,222 ordinary shares, representing 53.45% of the total shareholding[75] - Ms. Ma Xia, a beneficial owner, holds 172,166,037 ordinary shares, accounting for 4.84% of the total shareholding[73] - Mr. Yang Tao and Mr. Li Man hold 274,919,268 and 272,039,268 ordinary shares, respectively, representing 7.73% and 7.64% of the total shareholding[73] - The company has not been notified of any other person with a discloseable interest in the shares as of December 31, 2023[76] - The shareholding percentage is calculated based on the number of issued shares as of December 31, 2023[75] - The company has adopted a code of conduct regarding Directors' securities transactions, ensuring compliance with GEM Listing Rules[81] - No significant competition with the business of the group was reported among Directors or management during the nine months ended December 31, 2023[81] Audit and Compliance - The Group's unaudited financial statements for the nine months ended 31 December 2023 have been reviewed by the audit committee[91] - The audit committee is composed of three independent non-executive directors, ensuring compliance with GEM Listing Rules[89] - No share awards have been granted under the share incentive plan as of 31 December 2023[86]