Revenue and Profitability - Revenue increased by 37.6% to approximately RMB 1,403.2 million, up from RMB 1,019.6 million in the previous year[5] - Net profit decreased by 3.7% to approximately RMB 103.5 million, down from RMB 107.5 million in the previous year[12] - Profit before tax decreased by 5.2% to approximately RMB 117.7 million, compared to RMB 124.1 million in the previous year[12] - Profit attributable to shareholders decreased by 16.8% to approximately RMB 87.1 million, compared to RMB 104.7 million in the previous year[12] - Basic earnings per share decreased by 25.0% to approximately RMB 0.24, down from RMB 0.32 in the previous year[12] - The company reported a net profit margin of approximately 7.4% for 2023, down from 10.5% in 2022[38] - The company's net profit attributable to shareholders decreased to approximately RMB 87.1 million from RMB 104.7 million, a decline of about RMB 17.6 million or 16.8%[157] Sales Performance - Sales revenue from tantalum metal products increased by 39.9% to approximately RMB 308.1 million, up from RMB 220.3 million in the previous year[7] - Sales revenue from other products increased by 35.1% to approximately RMB 217.0 million, compared to RMB 160.6 million in the previous year[9] - Revenue from the Chinese market reached RMB 1,177,379,000, up 36.3% from RMB 864,436,000 in the previous year[75] - Sales of non-ferrous metal products accounted for RMB 1,155,882,000, representing a 48.5% increase from RMB 777,554,000 in 2022[77] - Revenue from the United States increased to RMB 124,433,000, up 35% from RMB 92,275,000 in 2022[75] - Sales of fluorotantalic acid generated approximately RMB 975 million, a decrease of RMB 66 million or 6.3% from RMB 1.041 billion in 2022[129] - The sales revenue from recycled products increased from RMB 232 million in 2022 to RMB 270 million in the current year[132] Cost and Expenses - Gross profit rose by 1.5% to approximately RMB 310.4 million, compared to RMB 305.9 million in the previous year[12] - The gross profit margin decreased by 7.9% to 22.1%, down from 30.0% in the previous year[12] - Raw material costs were RMB 789.2 million, accounting for 72.2% of total sales costs, compared to RMB 495.9 million or 69.5% in the previous year[24] - The cost of sales rose by approximately RMB 379.0 million or 53.1% to about RMB 1,092.7 million, primarily due to increased sales volume and production scale[149] - Administrative expenses increased by approximately RMB 37.7 million or 31.8% to RMB 156.5 million for the year ended December 31, 2023, compared to RMB 118.8 million for the year ended December 31, 2022[15] - Research and development expenses rose to RMB 66.6 million, accounting for 42.5% of total administrative expenses, up from RMB 47.6 million or 40.1% in the previous year[15] - Employee costs increased to RMB 42.8 million, representing 27.4% of total administrative expenses, compared to RMB 30.4 million or 25.6% in the prior year[15] Assets and Liabilities - The total value of property, plant, and equipment increased by approximately RMB 81.2 million to RMB 385.3 million as of December 31, 2023, primarily due to ongoing expansions in production facilities[21] - Trade receivables and notes receivable net value increased to RMB 397.9 million as of December 31, 2023, from RMB 236.5 million in the previous year[35] - The company's current liabilities totaled RMB 715.9 million as of December 31, 2023, compared to RMB 518.0 million in 2022, indicating an increase of 38.2%[48] - The company's non-current assets increased to RMB 558.3 million in 2023 from RMB 503.8 million in 2022[48] - Trade payables totaled RMB 54.28 million at year-end, down from RMB 86.31 million in 2022, with a significant decrease in payables within one month[112] - Other payables and accrued expenses totaled approximately RMB 969.51 million in 2023, an increase from RMB 857.59 million in 2022, attributed to increased customer prepayments[180] Financing and Capital Structure - Total financing costs amounted to RMB 23.5 million for the year ended December 31, 2023, compared to RMB 21.0 million for the year ended December 31, 2022[29] - Bank borrowings rose significantly from RMB 482.5 million in 2022 to RMB 638.7 million in 2023, an increase of about 32.4%[194] - The total debt of the group increased from approximately RMB 515.4 million in 2022 to RMB 656.7 million in 2023, reflecting a growth of around 27.4%[197] - The capital debt ratio increased from 15.7% in 2022 to 31.2% in 2023, primarily due to increased financing and reduced cash on hand[198] Taxation and Government Subsidies - The income tax expense for 2023 was RMB 14,169 thousand, a decrease from RMB 16,667 thousand in 2022, indicating a reduction of approximately 15%[95] - The effective tax rate for the company remains at 25%, with certain subsidiaries benefiting from a reduced rate of 15%[116] - Government subsidies received amounted to RMB 7,872 million in the review year, compared to RMB 2,094 million in the previous year[137] Inventory and Receivables Management - The average inventory turnover days increased from approximately 196.1 days to 199.2 days for the year ended December 31, 2023[34] - Trade receivables increased from approximately RMB 236.5 million in 2022 to approximately RMB 397.9 million in 2023, primarily due to increased sales revenue[172] - The average turnover days for trade receivables and bills receivable increased from 65.6 days in 2022 to 82.5 days in 2023, indicating a longer collection period[188] Research and Development - The company has a total of 107 authorized patents, including 19 invention patents, with 69 additional patents pending[2] - Research and development costs rose to RMB 66,553 thousand in 2023, up from RMB 47,642 thousand in 2022, marking an increase of 39.6%[91] Corporate Governance and Future Outlook - The company did not report any segmented operating data as resources are integrated without separate divisions[74] - The company has no plans for market expansion or new product development disclosed in the current report[74] - There were no acquisitions or mergers reported during the financial year[74] - The company has not identified any significant risks related to the new tax regulations introduced by the OECD[71] - The company maintained sufficient working capital to meet its operational needs for at least the next 12 months[195]

稀 美 資 源 控 股 有 限 公 司 XIMEI RESOURCES HOLDING LIMITED 公司簡介 本集團的歷史始於二零零六年五月九日，是中華人民共和國（「中國」）本行業較早的中國非國有市場參與者， 主要從事鉭鈮產品的製造和銷售，包括鉭鈮濕法產品和鉭鈮火法產品，濕法產品主要包括氧化鉭、氧化鈮 及 氟 鉭 酸 鉀，火 法 產 品 主 要 包 括 鉭 粉、鉭 條、鉭 棒、鈮 鐵 和 熔 煉 鈮 等 鉭 鈮 金 屬 製 品，相 關 產 品 廣 泛 應 用 於 半 導 體、高 端 電 子、航 天 航 空、國 防 軍 工、光 學、醫 療 等 領 域。本 集 團 已 通 過 品 質、環 境、職 業 健 康、知 識 產 權 等 管 理 體 系 及「負 責 任 礦 產 倡 議」(RMI)年度審核認證。並成為TIC以 及ITSCI成 員單位，嚴格遵守相關法 律法規和國際規則。 備註： 1. 參考稀美資源統計數據 公司資料 2 財務摘要 4 管理層討論及分析 5 其他資料 16 中 期 簡明綜合權益變動表 28 | --- | --- | |--------------------------------|---- ...

Financial Performance - For the six months ended June 30, 2023, the company's total expenses in China amounted to RMB 8,098,000, an increase of 40.5% compared to RMB 5,785,000 for the same period in 2022[6]. - The total tax expense for the period was RMB 11,142,000, down from RMB 15,511,000 in the previous year, reflecting a decrease of 28.9%[6]. - Gross profit decreased by approximately RMB 13.9 million or 8.5% to about RMB 149.6 million, primarily due to a decline in product gross margin[24]. - For the six months ended June 30, 2023, the group recorded a net profit of approximately RMB 48.8 million, a decrease of about RMB 13.9 million or 22.1% compared to RMB 62.7 million for the same period in 2022[56]. - Revenue for the six months ended June 30, 2023, was RMB 632,657,000, representing a 34.7% increase from RMB 469,719,000 in the same period of 2022[80]. - Profit before tax was RMB 59,965,000, a decrease of 23.3% from RMB 78,183,000 in the previous year[80]. - Net profit attributable to shareholders was RMB 44,819,000, down 27.8% from RMB 62,102,000, with basic earnings per share at RMB 0.12, a 42.9% decrease from RMB 0.21[80]. - The total comprehensive income for the period was RMB 55,486,000, down from RMB 64,168,000 in the same period of 2022, a decrease of approximately 13.2%[103]. Expenses and Costs - Administrative expenses increased by approximately RMB 16.5 million or 32.1% to about RMB 67.9 million, mainly due to new personnel costs and R&D expenses related to two new projects[26]. - Financing costs increased by approximately RMB 2.3 million or 26.7%, totaling about RMB 10.9 million for the current period compared to RMB 8.6 million in the previous year[55]. - Material costs accounted for approximately 83.5% of total sales costs during the reporting period, with sales costs increasing by 57.7% to approximately RMB 483.1 million[135]. - Sales and distribution expenses rose by 47.8% to approximately RMB 7.6 million, primarily due to increased transportation and logistics costs[137]. Assets and Liabilities - The company's total debt as of June 30, 2023, was approximately RMB 450.7 million, a decrease from RMB 482.5 million as of December 31, 2022, indicating effective cash flow improvement[31]. - The group's capital debt ratio as of June 30, 2023, was approximately 26.5%, up from 15.7% as of December 31, 2022[60]. - Non-current liabilities increased to RMB 205,317,000 as of June 30, 2023, compared to RMB 179,012,000 at the end of the previous year, indicating a rise of about 14.7%[106]. - The net asset value of the company was RMB 1,055,983,000 as of June 30, 2023, compared to RMB 1,002,106,000 in the previous year, showing an increase of approximately 5.4%[106]. Cash Flow and Capital Expenditure - The company is currently monitoring its cash flow and cash reserves to maintain an ideal level of working capital to support operational needs and future plans[29]. - The company reported a net cash outflow from operating activities of approximately RMB 43.7 million during the reporting period[194]. - Capital expenditures for the reporting period amounted to approximately RMB 40.8 million, compared to RMB 56.7 million for the same period last year[197]. - As of June 30, 2023, the company had cash and cash equivalents of approximately RMB 170.7 million, a decrease from approximately RMB 325.4 million as of December 31, 2022[193]. Market and Industry Insights - The defense budget for 2023 is approximately RMB 155.37 billion, reflecting a year-on-year increase of 7.2%, which is expected to drive demand in the tantalum and niobium industry[19]. - The company has observed a significant increase in shipbuilding metrics, with completed shipbuilding volume up 14.2% and new orders up 67.7% year-on-year in the first half of 2023[19]. - The company reported a significant increase in revenue from the Chinese market, reaching RMB 519,018,000 for the six months ended June 30, 2023, compared to RMB 395,577,000 in the previous year, representing a growth of about 31.1%[112]. Research and Development - Research and development costs increased to RMB 25,451,000 for the six months ended June 30, 2023, compared to RMB 18,840,000 in the previous year, marking a rise of about 35.0%[116]. - The company has accumulated 100 authorized patents as of June 30, 2023, with 15 new patents granted during the reporting period, indicating significant progress in high-end product development[162]. - The company aims to enhance its core competitiveness through continuous product quality control and innovation, focusing on high-purity and high-performance products[162]. Corporate Governance and Strategy - The company has adhered to all applicable corporate governance codes, with minor deviations noted[45]. - The company plans to adhere to its strategic positioning of "professionalization, integration, scaling, high-end, internationalization, and capitalization," focusing on project construction and quality enhancement[180]. - There were no significant acquisitions or disposals during the reporting period, indicating a stable operational strategy[178].

Financial Performance - Total trade receivables and notes amounted to RMB 236,528 thousand as of December 31, 2022, compared to RMB 130,122 thousand in the previous year, reflecting a significant increase[4] - Cash and cash equivalents increased by approximately RMB 155.5 million during the reviewed year, with net cash outflows from operating activities of approximately RMB 42.3 million and net cash inflows from financing activities of approximately RMB 355.7 million[14] - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[46] - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected EBITDA margin of B%[46] - The company has maintained a strong balance sheet, with total assets valued at J million and a debt-to-equity ratio of K[46] Operational Efficiency - Average inventory turnover days increased from approximately 171.6 days as of December 31, 2021, to 196.1 days for the reviewed year, primarily due to an increase in average inventory[1] - The average turnover days for trade payables increased from about 6.5 days as of December 31, 2021, to 25.6 days in the reviewed year, attributed to an increase in average trade payables[8] - The company is committed to continuous technological innovation and optimizing production processes to achieve efficiency and cost reduction[35] - The company is focused on safety production and optimizing existing processes and equipment to achieve breakthroughs in capacity, quality, and cost[35] - The company is focused on managing liquidity risk by monitoring cash flow and maintaining sufficient cash and cash equivalents to support operations and reduce cash flow volatility[185] Investment and Growth Strategy - The outlook for 2023 indicates a significant growth in downstream demand for tantalum and niobium due to the increasing emphasis on energy security and supply chain safety[19] - The company aims for sustainable growth and to strengthen its market position in the tantalum and niobium metallurgy industry in China[34] - The company plans to invest 28.9% of the proceeds in building new production facilities for tantalum powder and rods, with RMB 26.8 million already spent[39] - 36.0% of the funds will be allocated for purchasing and installing related machinery and equipment, with RMB 33.4 million already utilized[39] - The company is actively exploring overseas resources and establishing flexible strategic partnerships with upstream and downstream enterprises[35] Corporate Governance - The board is committed to maintaining high standards of corporate governance and aims to create value for shareholders while ensuring effective internal controls[81] - The company has adopted the standard code for securities trading by directors as per the listing rules, confirming compliance by all directors during the review period[83] - The company has established clear divisions of responsibilities between the board and senior management to ensure effective oversight[84] - The company has established a robust internal control and risk management system to safeguard assets and manage operational risks[160] - The company is committed to ensuring compliance with corporate governance standards and regulations[105] Board Composition and Diversity - The company has established a diversity policy for the board of directors, which will be reviewed periodically to ensure its effectiveness[103] - The overall gender ratio in the company is 81.5% male and 18.5% female[103] - Senior management consists of 66.7% male and 33.3% female, while middle management has 78.0% male and 22.0% female[103] - The company plans to appoint at least one additional female director within three years to enhance gender diversity on the board[102] - The independent non-executive directors have a term of two years, automatically renewing for one year unless terminated with three months' notice[91] Employee Engagement and Development - The company has established a talent cultivation strategy to improve employee motivation and creativity, aiming to build a respected enterprise[38] - The company has a commitment to providing diverse career development opportunities and training resources for employees[125] - The company maintains a competitive compensation package to attract and motivate employees, with no significant disputes reported with staff as of December 31, 2022[181] - The company encourages and supports employees to participate in external anti-corruption training programs[136] - The company has a clear policy against unethical business practices, including bribery and fraud, as outlined in its employee handbook[135] Shareholder Relations - The company holds annual general meetings at a location determined by the board, providing communication opportunities for shareholders[139] - Shareholders have the right to submit inquiries to the board in writing, which must be sent to the company's main business address in Hong Kong[142] - The company has established a procedure for shareholders to propose resolutions at the annual general meeting or special general meeting[143] - The board of directors conducted an annual review of the investor relations policy and deemed it effectively implemented during the year[147] - The company believes that maintaining effective communication with the investment community is crucial for enhancing investor understanding of its business and development[146]

Financial Performance - Revenue increased by 33.5% to approximately RMB 1,019.6 million (2021: RMB 763.7 million) [14] - Gross profit increased by 48.9% to approximately RMB 305.9 million (2021: RMB 205.5 million) [14] - Net profit attributable to the company's owners increased by 2.5% to approximately RMB 104.7 million (2021: RMB 102.1 million) [14] - Total revenue for the year ended December 31, 2022, was approximately RMB 1,019.6 million, an increase of 33.5% from RMB 763.7 million in 2021 [42] - Profit before tax increased to RMB 124,134 thousand, up from RMB 118,550 thousand in the previous year, representing a growth of 4.3% [47] - Net profit for the year was RMB 107,467 thousand, compared to RMB 102,065 thousand in 2021, marking a 5.4% increase [48] - Total comprehensive income for the year was RMB 119,677 thousand, an increase from RMB 101,015 thousand in 2021 [49] Expenses and Costs - Administrative expenses increased by approximately RMB 35.1 million or 41.9% to approximately RMB 118.8 million [25] - Research and development expenses increased by approximately RMB 17.8 million to approximately RMB 47.6 million [25] - Financing costs increased to RMB 23,178 thousand from RMB 13,660 thousand in the previous year, primarily due to higher bank loan interest [70] - The cost of goods sold for the year 2022 was RMB 636,673 thousand, compared to RMB 492,840 thousand in 2021, indicating an increase of about 29.2% [92] - Sales cost for the year ended December 31, 2022, was approximately RMB 713.7 million, an increase from RMB 558.2 million in 2021 [160] Assets and Liabilities - Trade receivables increased to RMB 236.5 million from RMB 130.1 million [31] - Total non-current assets increased to approximately RMB 503.8 million from RMB 332.0 million [31] - Cash and cash equivalents increased to RMB 325.4 million from RMB 169.9 million [31] - Trade receivables, net of impairment losses, amounted to RMB 164,219 thousand in 2022, compared to RMB 102,536 thousand in 2021, showing an increase of about 60.2% [75] - Total debt as of December 31, 2022, was approximately RMB 515.4 million, up from approximately RMB 374.4 million as of December 31, 2021 [197] Inventory and Production - The average inventory increased from approximately RMB 262.5 million in 2021 to about RMB 383.4 million in 2022, representing a growth of 46% [44] - The company's inventory as of December 31, 2022, was approximately RMB 511.0 million, compared to RMB 255.8 million in 2021, indicating a significant increase [44] - The sales of tantalum metal products increased by 191.0% to RMB 220,296,000 in 2022, up from RMB 75,703,000 in 2021, driven by increased production from the subsidiary in Guizhou [135] - The company achieved a historical high in production, with tantalum oxide output of 371 tons and niobium oxide output of 1,610 tons, reflecting year-on-year growth of 29% and 27% respectively [124] Market and Revenue Sources - Revenue from the Chinese market reached RMB 864.4 million, up 31.7% from RMB 655.8 million in the previous year [42] - The company achieved total operating revenue of approximately RMB 1,019.6 million, with overseas market revenue reaching RMB 155 million, a year-on-year increase of 44% [101] - Customer B contributed RMB 108.9 million in revenue in 2022, while Customer A had no revenue contribution in the same period [43] - Revenue from customer contracts for the year was RMB 1,019,600 thousand, with no single customer contributing more than 10% of total revenue [66][63] Compliance and Standards - The company has not reported any significant impact on its financial position or performance due to the adoption of new accounting standards in 2022 [41] - The company is committed to maintaining compliance with the Hong Kong Financial Reporting Standards and has made necessary adjustments in its financial reporting practices [40] Shareholder and Capital Information - The company did not recommend the distribution of any final dividend for the year ended December 31, 2022 [14] - Basic earnings per share for ordinary shareholders was RMB 0.32, slightly down from RMB 0.34 in the previous year [47] - The company successfully completed a placement of HKD 240 million, with Jiangxi Ganfeng Lithium Co., Ltd. becoming the second-largest shareholder, holding 16.7% of the company [107] Strategic Initiatives - The company is focusing on extending its production business downstream into tantalum and niobium metal products, which has led to an increase in both finished and intermediate products [44] - The company implemented a six-strategy positioning focusing on specialization, integration, scaling, high-end development, internationalization, and capitalization [106] - The company has optimized its production processes and completed several new product projects that have received customer certification [127] Awards and Recognition - The company has been recognized with multiple awards, including being named a "Little Giant" enterprise, which highlights its focus on innovation and core competitiveness [129]

Market Performance - The company reported a market share of over 30.0% in the tantalum and niobium wet process products for four consecutive years[8]. - The company continues to expand its production capacity to meet growing market demand for tantalum and niobium products[8]. - Revenue for the six months ended June 30, 2022, was RMB 469.7 million, an increase of 35.6% compared to RMB 346.5 million in the same period last year[22]. - Total revenue increased by approximately RMB 123.2 million or 35.6% to about RMB 469.7 million for the six months ended June 30, 2022, compared to RMB 346.5 million for the same period in 2021[31]. - Revenue from customer contracts for the six months ended June 30, 2022, was RMB 469,719,000, up from RMB 346,501,000 in the same period of 2021, representing a growth of approximately 35.4%[133]. Financial Performance - Gross profit reached RMB 163.5 million, representing a significant increase of 108.7% from RMB 78.3 million year-on-year, with a gross margin of 34.8%[22]. - Gross profit rose by approximately RMB 85.2 million or 108.7% to about RMB 163.5 million, with the gross profit margin increasing from 22.6% to 34.8%[34]. - The company achieved a net profit of approximately RMB 62.7 million, up 27.6% from RMB 49.1 million in the previous year[22]. - Net profit for the period was approximately RMB 62.7 million, an increase of about RMB 13.6 million or 27.6% compared to RMB 49.1 million for the same period in 2021[42]. - Basic earnings per share for the period was RMB 0.21, compared to RMB 0.16 in the same period last year, reflecting a 31.3% increase[101]. Research and Development - The company has maintained a strong focus on research and development, with several high-tech products recognized at the provincial level[8]. - The company introduced 21 new patents and 6 software copyrights during the reporting period, with 66 additional patents pending[25]. - Research and development expenses for the first half of 2022 were RMB 18,840,000, up from RMB 12,492,000 in the same period of 2021, indicating a growth of approximately 50.9%[138]. Strategic Initiatives - The company has successfully launched two pyrometallurgical projects in Guangdong and Guizhou, contributing to the sales of tantalum powder, bars, and ingots[8]. - The company has invested in vertical integration strategies to enhance its product offerings in the tantalum and niobium sectors[8]. - A strategic partnership was formed with Jiangxi Ganfeng Lithium Co., Ltd., resulting in a financing of HKD 240 million, making Ganfeng Lithium the second-largest shareholder with a 16.7% stake[28]. - The company plans to establish a subsidiary in Leizhou, China, to implement a new investment project with an annual production capacity of 3,000 tons of high-performance tantalum niobium oxide[95]. Financial Position - The current ratio decreased to 1.73 from 1.78, reflecting a 2.8% decline, while the quick ratio fell by 17.1% to 0.97[22][19]. - The capital debt ratio increased significantly to 47.7%, up 19.6 percentage points from 28.1%[22][20]. - The total debt of the company as of June 30, 2022, was approximately RMB 503.2 million, up from RMB 345.1 million as of December 31, 2021[48]. - The company's debt-to-equity ratio increased to approximately 47.7% as of June 30, 2022, compared to 28.1% as of December 31, 2021, primarily due to an increase in interest-bearing bank loans[49]. - The company reported a net cash outflow of approximately RMB 23.0 million during the reporting period, with net cash used in operating activities amounting to RMB 166.9 million[47]. Employee and Management - The company employed a total of 474 employees as of June 30, 2022, with total employee compensation amounting to approximately RMB 36.7 million for the reporting period[64]. - The total remuneration paid to key management personnel for the six months ended June 30, 2022, was RMB 2,455,000, an increase of 8.6% compared to RMB 2,262,000 for the same period in 2021[161]. - Ms. Wu Shan-dan resigned as an executive director and chief financial officer effective April 15, 2022, to focus on other matters[83]. Corporate Governance - The company has established a foreign exchange risk management system to mitigate potential risks associated with currency fluctuations[53]. - The company did not declare any interim dividend for the six months ended June 30, 2022, similar to the previous year[65]. - The company confirms that at least 25% of its issued shares are held by public shareholders as per the listing rules[80]. Capital Expenditures - Capital expenditures for the reporting period were approximately RMB 56.7 million, compared to RMB 25.0 million for the same period last year[52]. - The allocation of net proceeds includes 28.9% for constructing new production facilities for tantalum powder and rods, with RMB 26.8 million already used[85]. - The company invested RMB 56,660,000 in property, plant, and equipment during the six months ended June 30, 2022, compared to RMB 24,963,000 in the same period of 2021[119].

Financial Performance - The company's revenue for the year ended December 31, 2021, was RMB 763.725 million, representing a 26.9% increase from RMB 601.652 million in 2020[12] - Gross profit for the same period was RMB 205.520 million, up 19.0% from RMB 172.650 million in 2020[12] - The annual profit increased by 45.2% to RMB 102.065 million compared to RMB 70.309 million in the previous year[12] - The company's revenue for 2021 was approximately RMB 763.7 million, representing a year-on-year increase of 26.9%, while net profit was approximately RMB 102.1 million, up 45.2% year-on-year[21] - Total revenue increased by approximately RMB 162.0 million or 26.9% to RMB 763.7 million for the year ended December 31, 2021, compared to RMB 601.7 million for the previous year[33] - Annual profit increased by approximately RMB 31.8 million or 45.2% to RMB 102.1 million, with net profit margins of 13.4% compared to 11.7% in the previous year[59] Market Position and Share - The company maintained a market share of over 30.0% in the tantalum and niobium wet metallurgy products for three consecutive years from 2019 to 2021[4] - Overseas sales reached approximately RMB 107.9 million in 2021, marking a year-on-year growth of 41.6%, which accounted for 14.1% of total revenue[24] - The company plans to strengthen its sales network in overseas markets to expand its customer base and increase market share[114] Production and Sales - In 2021, the total production of the company's main products, tantalum pentoxide and potassium fluotantalate, was 1,684 tons, with total sales of approximately 1,686 tons[21] - Revenue from potassium tantalate increased by approximately RMB 75.0 million or 76.9% to RMB 172.5 million, driven by increased sales volume[35] - Revenue from recycled products rose from approximately RMB 20.6 million to RMB 76.7 million, attributed to higher sales of tin hydroxide, potassium fluorosilicate, and tungsten acid[38] - Revenue from other products increased by approximately RMB 40.6 million or 66.6% to RMB 101.6 million, compared to RMB 61.0 million in the previous year[39] - Processing service revenue surged by approximately RMB 73.3 million or 1,263.8% to RMB 79.1 million, due to a significant increase in customer orders[40] Cost and Expenses - Total cost of sales increased by approximately RMB 129.2 million or 30.1% to RMB 558.2 million, primarily due to increased sales volume and higher average procurement prices for tantalum and niobium ores[43] - Sales and distribution expenses increased by approximately RMB 4.3 million or 51.2% to RMB 12.7 million, with employee costs rising by RMB 3.8 million[49] - Administrative expenses rose by approximately RMB 11.0 million or 15.1% to RMB 83.7 million, driven by an increase in employee costs and other administrative expenses[53] - Research and development expenses amounted to RMB 29.8 million, up from RMB 24.0 million, focusing on improving the purity levels of tantalum and niobium oxides[53] Financial Ratios and Capital Structure - The current ratio decreased to 1.78 from 2.40, a decline of 25.8%[12] - The quick ratio also fell to 1.17 from 1.50, a decrease of 22.0%[12] - The capital debt ratio increased to 28.1% from 15.2%, an increase of 12.9 percentage points[12] - The debt-to-equity ratio as of December 31, 2021, was approximately 28.1%, up from 15.2% as of December 31, 2020, primarily due to a decrease in cash and cash equivalents[94] Research and Development - The company has obtained 12 patents and developed three new tantalum and niobium salt products, indicating ongoing innovation efforts[28] - Continuous investment in R&D for new product projects and innovative production methods is a priority for the group to enhance capacity and product purity[111] Governance and Management - The company has a strong management team with expertise in metallurgy and project management, including Mr. Zhong Yuelian, who has over 27 years of experience in tantalum and niobium metallurgy[134] - The company has been expanding its board with experienced professionals to enhance governance and oversight[127] - The company emphasizes the importance of corporate governance and compliance in its operations[128] - The company has a clear division of responsibilities between the board and senior management, ensuring effective oversight[145] Risk Management and Compliance - The internal control and risk management systems were reviewed and deemed effective, ensuring the management of significant risks associated with the business environment[183] - The company has established a risk management framework that includes identifying significant risks, assessing their impact, and implementing necessary measures to manage those risks[183] Investor Relations - The company has established an investor relations policy to ensure timely and fair access to information for investors[198] - The company has maintained effective communication with investors to enhance transparency and understanding of its business and development[198]

Financial Performance - For the six months ended June 30, 2021, the total revenue was RMB 346.5 million, an increase of 9.2% compared to RMB 317.4 million in the same period last year[21]. - The net profit for the period was approximately RMB 49.1 million, representing a 39.3% increase from RMB 35.3 million in the previous year[21]. - Revenue increased by approximately RMB 29.1 million or 9.2% to about RMB 346.5 million, driven mainly by increased sales of potassium fluotantalate[33]. - Sales of potassium fluotantalate generated revenue of approximately RMB 104.3 million, an increase of 109.9% compared to RMB 49.7 million in the same period last year[36]. - Sales of high-purity niobium oxide reached approximately 133.3 tons, a year-on-year increase of 66.9%[31]. - The gross profit decreased by approximately RMB 16.2 million or 17.1% to about RMB 78.3 million, primarily due to a decline in gross profit margin[40]. - The gross profit margin decreased to 22.6%, down 7.2 percentage points from 29.8% in the previous year[21]. - Basic earnings per share for the period was RMB 0.16, up from RMB 0.13 in 2020[105]. - Total comprehensive income for the period was RMB 48,875 thousand, compared to RMB 36,181 thousand in the same period last year[108]. Production and Sales - The total production of main products was approximately 749.2 tons, a decrease of 17.5% year-on-year[25]. - The company aims to enhance high-purity product output while transitioning production lines[25]. - The company developed nearly 20 new qualified customers during the reporting period, enhancing customer structure and reserves[31]. - The company achieved external sales amounting to approximately RMB 42.1 million, a year-on-year increase of 32.4%[31]. - Sales costs increased by approximately RMB 45.3 million or 20.3% to about RMB 268.2 million, mainly due to increased raw material purchase volume and prices[39]. Research and Development - The company holds 35 patents, reflecting its commitment to research and development[3]. - The company obtained 7 new patent authorizations and applied for 2 invention patents during the reporting period[28]. - Research and development expenses for the current period were approximately RMB 12.5 million, compared to RMB 12.3 million for the six months ended June 30, 2020, focusing on improving production processes[45]. - The company will increase R&D investment to develop new products that meet market demands and enhance production processes[70]. Financial Position - The company maintained a current ratio of 2.4, indicating stable liquidity[21]. - The quick ratio improved by 13.3% to 1.7 compared to 1.5 in the previous year[21]. - The capital debt ratio decreased to 8.8%, down 6.4 percentage points from 15.2%[21]. - Total debt as of June 30, 2021, was approximately RMB 230.4 million, down from RMB 265.9 million as of December 31, 2020[54]. - The company's net asset value increased to RMB 570,637 thousand as of June 30, 2021, compared to RMB 521,762 thousand at the end of 2020[113]. - The carrying amount of interest-bearing bank loans as of June 30, 2021, was RMB 230,374,000, a decrease from RMB 265,930,000 as of December 31, 2020, indicating a reduction of 13.3%[158]. Corporate Governance - The board of directors decided not to declare any interim dividend for the six months ended June 30, 2021[74]. - The board of directors is committed to maintaining high standards of corporate governance and has implemented measures to enhance internal control systems[96]. - The company has complied with all applicable provisions of the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[97]. Future Outlook - The company anticipates continued demand for tantalum and niobium materials driven by the rapid development of industries such as new energy vehicles and superconducting materials[67]. - The company plans to expand the production capacity of wet-process products and enhance processing capabilities for complex raw materials to maintain industry leadership[69]. - The company aims to increase the output of high-value-added products, such as high-purity niobium and tantalum oxides, and will invest more in overseas marketing resources[70]. - The company is committed to completing two ongoing pyrometallurgical projects, which will enhance its product line and overall competitiveness[71]. Employee and Management - As of June 30, 2021, the company had a total of 261 employees and provides regular training programs to enhance their skills and knowledge[73]. - Total remuneration for key management personnel was RMB 2,262,000 for the six months ended June 30, 2021, up from RMB 1,823,000 in the same period of 2020, reflecting a growth of 24.1%[155]. - The company’s short-term employee benefits increased to RMB 2,133,000 for the six months ended June 30, 2021, compared to RMB 1,782,000 in the same period of 2020, marking an increase of 19.7%[155]. Cash Flow and Investments - For the six months ended June 30, 2021, the company reported a net cash inflow from operating activities of RMB 62,508 thousand, a significant improvement compared to a net outflow of RMB 83,410 thousand in the same period of 2020[118]. - The company incurred a net cash outflow from investing activities of RMB 28,718 thousand for the six months ended June 30, 2021, compared to RMB 7,374 thousand in the same period of 2020[118]. - The company’s financing activities resulted in a net cash outflow of RMB 40,189 thousand for the six months ended June 30, 2021, compared to a net inflow of RMB 225,216 thousand in the same period of 2020[118].

Financial Performance - For the year ended December 31, 2020, the total revenue was RMB 601,652,000, representing a slight increase of 0.2% from RMB 600,644,000 in 2019[12] - The gross profit for the same period was RMB 172,650,000, which is an increase of 8.6% compared to RMB 159,004,000 in 2019[12] - The annual profit for 2020 was RMB 70,309,000, reflecting a 0.9% increase from RMB 69,652,000 in 2019[12] - The group's revenue for the year was approximately RMB 601.7 million, a slight increase of 0.2% compared to the previous year[31] - Net profit for the year was approximately RMB 70.3 million, representing a year-on-year growth of 0.9%[32] - Revenue from the sale of pentoxide products was approximately RMB 422.5 million, a decrease of RMB 63.0 million or 13.0% from RMB 485.5 million in 2019[39] - Revenue from potassium fluotantalate sales increased to approximately RMB 97.5 million, up RMB 46.8 million or 92.3% from RMB 50.7 million in 2019[40] - The sales revenue of industrial-grade niobium oxide increased by approximately RMB 42.6 million, a year-on-year growth of 20.9%[31] - The sales revenue of potassium fluotantalate rose by approximately RMB 46.8 million or 92.3% compared to the previous year[31] Production and Sales - The total production of pentoxide and potassium fluotantalate was approximately 1,781.1 tons, with total sales reaching about 1,868.9 tons for the year[2] - The total production of the main products, pentoxide and potassium fluotantalate, reached 1,781.1 tons, an increase of 21.7% year-on-year[27] - The total sales of pentoxide and potassium fluotantalate amounted to 1,868.9 tons, reflecting a year-on-year increase of 17.9%[28] - The company achieved a significant increase in by-product fluorine salt production, exceeding 2,000 tons, a year-on-year growth of 52.6%[27] - The export business saw significant growth, with export revenue exceeding RMB 76 million, a year-on-year increase of 20%[28] Research and Development - The company holds 29 patents and has been recognized as a national high-tech enterprise, indicating a strong focus on R&D[2] - The company obtained 4 new invention patents during the year, contributing to its R&D efforts[33] - The company aims to enhance its research and development efforts for new products and innovative production methods, focusing on high-purity tantalum powder and lithium battery materials[122] - The company plans to continue enhancing operational management and R&D innovation to solidify its leading position in the industry[16] Financial Position and Liquidity - The company maintained a current ratio of 2.41 and a quick ratio of 1.51 as of December 31, 2020, indicating strong liquidity[12] - The capital debt ratio improved to 15.2% from 26.4% in 2019, showing a significant reduction in leverage[12] - Cash and cash equivalents increased to approximately RMB 186.4 million as of December 31, 2020, compared to approximately RMB 58.5 million as of December 31, 2019[97] - The total debt as of December 31, 2020, was approximately RMB 265.9 million, up from approximately RMB 143.3 million as of December 31, 2019[100] - The capital debt ratio as of December 31, 2020, was approximately 15.2%, down from 26.4% as of December 31, 2019, primarily due to a decrease in cash and cash equivalents[101] Expenses and Costs - Total sales costs decreased to approximately RMB 429.0 million, down RMB 12.6 million or 2.9% from RMB 441.6 million in 2019[46] - Administrative expenses increased from approximately RMB 56.8 million in 2019 to approximately RMB 72.7 million in 2020, reflecting a growth of 28.0%[58] - Research and development expenses remained stable at approximately RMB 24.0 million for both 2019 and 2020, focusing on improving the purity levels of tantalum and niobium oxides[58] - Employee costs in sales and distribution decreased from RMB 3.3 million in 2019 to RMB 2.6 million in 2020, while consultancy fees increased significantly[54] Corporate Governance - The company is committed to high standards of corporate governance and has adopted measures to enhance internal control systems and ongoing professional training for directors[153] - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balance of power and independent oversight[158] - The company has complied with all applicable provisions of the corporate governance code during the review year, except for a deviation regarding the roles of the chairman and CEO[155] - The company has established a clear division of responsibilities between the board and senior management, with the board providing guidance and effective supervision[158] Future Plans and Market Strategy - The company aims to strengthen its market position and expand its capital base following its successful listing on the Hong Kong Stock Exchange in March 2020[3] - The company plans to continue investing in expanding its production and sales into downstream products, particularly tantalum powder and rods, to meet growing market demand[121] - The company plans to strengthen its sales network in overseas markets to expand its customer base and increase market share[125] - The company is exploring potential acquisitions to bolster its market position, with a budget of $G million set aside for strategic investments[140] Shareholder Engagement - Shareholders holding more than 10% of the voting shares have the right to request a special general meeting within two months of submitting a request[199] - Shareholders can submit inquiries to the board in writing, which must be sent to the company's main office in Hong Kong[200]

Revenue and Profitability - Revenue for the six months ended June 30, 2020, was RMB 317,396,000, representing a 4.6% increase from RMB 303,487,000 in 2019[14] - The company achieved a net profit of RMB 35,253,000, a decrease of 13.2% from RMB 40,607,000 in 2019[14] - Adjusted net profit, excluding listing expenses, was RMB 46,721,000, reflecting a 4.1% increase from RMB 44,867,000 in the previous year[14] - Profit for the period decreased by approximately RMB 5.3 million to about RMB 35.8 million, with net profit margin decreasing from 13.4% to 11.1%[49] - Basic earnings per share decreased to RMB 0.13 from RMB 0.18, a decline of 27.8%[112] Gross Profit and Margins - Gross profit increased by 13.0% to RMB 94,520,000, with a gross margin of 29.8%, up from 27.6% in the previous year[14] - Gross profit increased by approximately RMB 10.9 million or 13.0% to about RMB 94.5 million, driven by revenue growth, with gross margin rising from 27.6% to 29.8%[39] Sales and Production - Sales volume of tantalum pentoxide products reached 866.1 tons, a 27.1% increase compared to 681.6 tons in 2019[14] - Production of tantalum pentoxide products was 820.1 tons, up 31.8% from 622.3 tons in the previous year[14] - In the first half of 2020, the total production of the company's main products, including pentoxide and super acid potassium, reached approximately 907.9 tons, an increase of about 33.3% compared to the same period in 2019[19] - The total sales volume of pentoxide and super acid potassium was approximately 945.4 tons, representing a year-on-year increase of about 28.6%[27] - The sales volume of industrial-grade silver oxide reached approximately 689.6 tons, an increase of about 53.5% compared to the same period in 2019[27] Financial Position and Ratios - The current ratio remained stable at 2.5, while the quick ratio improved by 5.9% to 1.8[14] - The capital debt ratio decreased significantly to 9.6% from 26.4% in the previous year, indicating improved financial stability[14] - Total debt amounted to approximately RMB 240.9 million as of June 30, 2020, up from RMB 143.3 million as of December 31, 2019[54] - The debt-to-equity ratio decreased to approximately 9.6% as of June 30, 2020, down from 26.4% as of December 31, 2019, due to increased cash and equity[55] Research and Development - The company holds 27 patents and has been recognized as a national high-tech enterprise, reflecting its commitment to R&D[3] - Research and development expenses for the period amounted to approximately RMB 12.3 million, accounting for about 3.9% of total revenue, with a year-on-year increase of about 2.5%[26] - The company received 2 invention patents and 1 utility model patent during the reporting period, enhancing its research and development capabilities[26] - The company aims to enhance product quality by investing in R&D and collaborating with research institutions to improve purity levels[69] Market and Expansion Plans - The company plans to leverage its capital platform post-IPO to strengthen its market leadership in tantalum and niobium metallurgy[3] - The company plans to expand production capacity for its main product, pentoxide, and explore downstream product manufacturing[68] - Plans to establish offices in the UK and Brazil to expand market reach and secure stable raw material supply[70] Corporate Governance and Compliance - The company is committed to high standards of corporate governance and has complied with all applicable provisions of the corporate governance code since its listing[102] - The audit committee has reviewed the unaudited financial reports for the six months ending June 30, 2020, and agreed with the accounting policies adopted by the company[106] Cash Flow and Financial Resources - Cash and cash equivalents increased to approximately RMB 193.8 million as of June 30, 2020, compared to RMB 58.5 million as of December 31, 2019[52] - The company reported a net cash inflow from financing activities of RMB 225,216 thousand for the six months ended June 30, 2020, compared to a net outflow of RMB (49,821) thousand in 2019[124] - The total cash and cash equivalents at the end of June 30, 2020, increased to RMB 193,824 thousand from RMB 84,859 thousand at the end of June 30, 2019, marking a growth of 128.5%[124] Shareholder Information - Major shareholders include Jiawei Resources Seychelles with 157,500,000 shares (52.50%) and MACRO-LINK International Mining Limited with 67,500,000 shares (22.50%)[87] - The company holds a 52.50% equity interest in Jiawei Resources Seychelles, which is fully owned by Mr. Wu[78] Employee and Labor Relations - The company has established a union to protect employees' rights and assist in achieving economic goals[80] - Employee salaries are determined based on position, job nature, and annual performance evaluations[80] - The company provides regular training programs for employees to enhance their skills and knowledge[80] Dividend Policy - The company did not declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[75] - The company did not declare or propose any dividends during the reporting period, consistent with the previous year[143]