Dividend Distribution - The company plans to distribute a cash dividend of 3.50 yuan per 10 shares, totaling 496,460,720.00 yuan based on the total share capital of 1,418,459,200 shares as of the 2022 annual report disclosure date[2] - The company's 2022 annual profit distribution plan has been approved by the 25th meeting of the 9th Board of Directors and is subject to approval by the shareholders' meeting[2] Risk Management and Governance - The company has issued a risk warning regarding forward-looking statements, indicating that future plans and development strategies do not constitute a substantive commitment to investors[2] - The company has confirmed that there is no non-operational occupation of funds by controlling shareholders or other related parties, and no violation of decision-making procedures in providing external guarantees[2] - The company has detailed risk factors in the "Management Discussion and Analysis" section of the annual report, specifically in the "Discussion and Analysis of Future Development" subsection[2] - The company has established a comprehensive governance structure, including the formulation and revision of various internal control systems, to ensure compliance with legal and regulatory requirements[130] - The company maintains independence in business, assets, personnel, organization, and finance, with no conflicts of interest or asset misappropriation by the controlling shareholder[131] - The controlling shareholder, Fujian Rare Earth Group, has made long-term commitments to avoid competition with the company, ensuring fair market practices and protecting the company's interests[131] Financial Performance - Revenue for 2022 reached 48.22 billion yuan, a year-on-year increase of 51.40%[14] - Net profit attributable to shareholders in 2022 was 1.45 billion yuan, up 22.68% compared to the previous year[14] - Operating cash flow for 2022 was -360.43 million yuan, a significant decrease of 134.64% year-on-year[14] - Total assets at the end of 2022 amounted to 39.80 billion yuan, an increase of 20.96% compared to the end of 2021[14] - Basic earnings per share for 2022 were 1.0285 yuan, up 22.67% year-on-year[15] - Weighted average return on equity (ROE) for 2022 was 15.04%, an increase of 1.20 percentage points compared to 2021[15] - Government subsidies received in 2022 totaled 315.91 million yuan, up 46.52% from 2021[19] - Non-recurring gains and losses in 2022 amounted to 210.41 million yuan, an increase of 41.38% compared to 2021[20] - The fair value of trading financial assets increased from 200,542,222.22 RMB to 450,225,555.56 RMB, with a change of 249,683,333.34 RMB, impacting the current profit by 1,983,020.77 RMB[21] - The total fair value of financial assets increased from 1,371,013,364.52 RMB to 2,485,101,644.29 RMB, with a change of 1,114,088,279.77 RMB, impacting the current profit by 1,711,144.95 RMB[21] - Company achieved consolidated revenue of 48.22 billion yuan, a year-on-year increase of 51.54%, and net profit attributable to shareholders of 1.45 billion yuan, a year-on-year increase of 22.68%[64] - Total assets at the end of 2022 reached 39.80 billion yuan, a year-on-year increase of 20.96%, while equity attributable to parent company owners was 9.99 billion yuan, up 7.57% year-on-year[64] - R&D expenses increased by 35.52% to 1.73 billion yuan, driven by increased investment from subsidiaries[65] - Revenue from battery materials surged by 80.28% to 28.60 billion yuan, accounting for the largest share of total revenue[68] - Tungsten and molybdenum business revenue grew by 18.82% to 12.63 billion yuan, with a gross margin of 24.70%[68] - Rare earth business revenue increased by 25.57% to 5.90 billion yuan, with a gross margin of 11.57%[68] - Domestic revenue accounted for 41.57 billion yuan, a year-on-year increase of 54.75%, while export revenue grew by 27.51% to 5.65 billion yuan[68] - Operating cash flow turned negative at -360.43 million yuan, a significant decline of 134.64% year-on-year, due to increased working capital usage[65] - Investment cash flow decreased by 27.45% to -1.95 billion yuan, driven by increased fixed asset and equity investments[65] - Financing cash flow increased by 225.56% to 2,887,101,886.04 yuan due to increased funding needs for operations and investments[83] - Other income increased by 43.56% to 308,659,977.79 yuan, mainly due to increased government subsidies[85] - Investment income decreased by 131.63% to -29,356,897.40 yuan due to reduced income from associated enterprises[85] - Cash and cash equivalents increased by 40.06% to 2,171,831,871.37 yuan, accounting for 5.46% of total assets, primarily due to unused funds from subsidiary XTC New Energy's refinancing[86] - Accounts receivable rose by 46.15% to 7,455,051,766.27 yuan, representing 18.73% of total assets, driven by increased revenue[86] - Prepaid expenses surged by 155.48% to 504,485,763.98 yuan, mainly due to increased prepayments for raw material purchases by subsidiaries[86] - Contract liabilities grew by 295.12% to 546,384,688.43 yuan, reflecting increased performance obligations for goods delivery[87] - Long-term loans increased by 51.52% to 5,326,884,364.47 yuan, as the company secured more bank loans with maturities exceeding one year[87] - Bonds payable rose by 269.79% to 2,244,060,474.87 yuan due to the issuance of new medium-term notes[87] - Overseas assets totaled 540,175,485.76 yuan, accounting for 1.36% of total assets[88] - Restricted assets included 14,483,752.26 yuan in cash (as collateral) and 56,923,949.43 yuan in investment properties (as mortgage loans)[89] Business Segments Performance - The company completed the acquisition of Baise County Judian Mining Co., Ltd. in January 2022, which was included in the consolidated financial statements[16] - Revenue in the second quarter of 2022 was the highest at 13.65 billion yuan, accounting for 28.31% of the annual revenue[18] - The company achieved consolidated operating income of 48.223 billion yuan, a year-on-year increase of 51.40%, and a net profit attributable to the parent company of 1.446 billion yuan, a year-on-year increase of 22.68%[31] - The tungsten and molybdenum business achieved operating income of 13.16 billion yuan, a year-on-year increase of 20.09%, and a profit of 1.451 billion yuan, a year-on-year increase of 3.69%[31] - The rare earth business achieved operating income of 6.14 billion yuan, a year-on-year increase of 27.81%, and a profit of 317 million yuan, a year-on-year increase of 38.63%[35] - The energy new materials business achieved operating income of 28.742 billion yuan, a year-on-year increase of 80.52%, and a profit of 1.241 billion yuan, a year-on-year increase of 95.03%[37] - The real estate business achieved operating income of 180 million yuan, a year-on-year increase of 7.12%, but incurred a loss of 437 million yuan, an increase of 109 million yuan year-on-year[40] - APT production decreased by 19.29% to 24,036 tons, while sales decreased by 24.65% to 6,838 tons[69] - Molybdenum powder production increased by 6.92% to 2,645 tons, with sales up 15.85% to 1,934 tons[69] - Molybdenum ammonium production surged by 26.75% to 14,858 tons, with sales skyrocketing 66.41% to 10,781 tons[69] - Fine tungsten wire production soared by 219.05% to 300 million meters, with sales up 202.89% to 272 million meters[69] - Ternary materials production increased by 79.99% to 47,718 tons, with sales up 71.32% to 46,402 tons[69] - Battery materials business costs surged by 82.38% to 26.17 billion yuan, driven by an 85.36% increase in raw material costs[71] - Top five customers accounted for 52.41% of total annual sales, amounting to 2.53 billion yuan[75] - The company acquired 100% equity of Baise County Judian Mining Co., Ltd. for 301 million yuan, completed in January 2022[74] - The top five suppliers accounted for 1,600,764.72 million yuan in procurement, representing 34.86% of the total annual procurement[76] - Sales expenses increased by 10.78% to 339,400,435.28 yuan due to the rise in sales scale[77] - R&D expenses increased by 35.52% to 1,728,939,408.23 yuan, driven by increased investment from subsidiaries[78] - Total R&D investment for 2022 was 1.729 billion yuan, accounting for 3.59% of total revenue[79] - The company has 1,724 R&D personnel, making up 10.83% of the total workforce[80] Market and Industry Trends - The average price of domestic black tungsten concentrate (65% WO3) in 2022 was 113,800 RMB/ton, a year-on-year increase of 10.93%[23] - The total domestic tungsten consumption in 2022 was 63,309 metal tons, a year-on-year decrease of 2.18%[25] - The export volume of tungsten in 2022 was 25,000 metal tons, a year-on-year increase of 3.15%[23] - The average price of praseodymium-neodymium oxide in 2022 was 825,300 RMB/ton, a year-on-year increase of 38.40%[27] - The production of silicon wafers in China in 2022 was 357 GW, a year-on-year increase of 57.5%[24] - The average price of lithium carbonate 99% min in 2022 was 466,400 RMB/ton, a year-on-year increase of 299.24%[28] - The total domestic rare earth mining control quota in 2022 was 210,000 tons, a year-on-year increase of 25%[27] - The production of photovoltaic modules in China in 2022 was 288.7 GW, a year-on-year increase of 58.8%[24] - Domestic ternary material production reached 602,300 tons, a year-on-year increase of 51.3%, while global ternary material production reached 993,300 tons, a year-on-year increase of 36.1%[30] - Domestic new energy vehicle production and sales reached 7.058 million and 6.887 million units, respectively, with year-on-year growth rates of 96.9% and 93.4%, and a market share of 25.6%[30] - Domestic cobalt lithium production was 77,000 tons, a year-on-year decrease of 16%, with a global market share of 91.7%, an increase of 1.5% year-on-year[30] - The first batch of rare earth mining quotas for 2022 was set at 100,800 tons, with light rare earths accounting for 89,310 tons and medium-heavy rare earths at 11,490 tons[90] - Fujian Province aims to achieve over 20,000 new energy vehicle sales and a production value of 100 billion yuan by 2025, with a total industry chain value exceeding 600 billion yuan[90] - Unit energy consumption per unit of added value decreased by 13.5% compared to 2020, with a target to increase the proportion of high-efficiency energy-saving motors to over 70% by 2025[92] - The total control index for tungsten concentrate mining in 2022 was 109,000 tons, with primary mining accounting for 81,170 tons and comprehensive utilization for 27,830 tons[92] - The second batch of rare earth mining and smelting separation control indices for 2022 were 109,200 tons and 104,800 tons respectively, an increase of 8.33% and 7.82% compared to the first batch[92] - The total rare earth mining and smelting separation control indices for 2022 increased by 25.00% and 24.69% respectively compared to 2021[92] - The "Implementation Plan for Science and Technology to Support Carbon Peaking and Carbon Neutrality (2022-2030)" aims for significant breakthroughs in key technologies such as power batteries and drive motors by 2030[92] - The "Encouraged Foreign Investment Industry Catalog (2022 Edition)" includes 1,474 entries, an increase of 239 from the 2020 edition, with specific additions in the rare earth sector[93] - The "Carbon Peaking Implementation Plan for the Nonferrous Metals Industry" targets a recycled metal supply ratio of over 24% during the 14th Five-Year Plan period[93] - Tungsten concentrate mining control index in 2022 was 109,000 metric tons, a year-on-year increase of 0.93%[113] - Overseas tungsten production capacity is expected to increase by 1,500 tons in 2023 and 3,500 tons in 2024[113] - Domestic tungsten consumption is expected to reach 54,000 tons in 2023 and 56,000 tons in 2024[113] - The first batch of rare earth mining and smelting separation control indicators for 2023 are 120,000 tons and 115,000 tons, respectively, with light rare earth ore products increasing by 22.1% and heavy rare earth ore products decreasing by 4.8% compared to 2022[115] - NdFeB production is expected to reach 220,000-240,000 tons in 2023[115] - Global new energy vehicle sales are projected to reach 25.42 million units in 2025 and 52.12 million units in 2030, with a penetration rate exceeding 50%[116] - Global lithium-ion battery shipments are expected to grow at a compound annual growth rate of 25.6% until 2030, reaching nearly 5TWh[116] Strategic Initiatives and Future Plans - The company launched a 20,000-ton rare earth secondary resource recycling project and increased the recycling of tungsten and battery materials[41] - The company established 2 automated demonstration lines and 1 digital demonstration factory, and carried out over 200 improvement projects throughout the year[41] - Optimized product portfolio and customer structure, enhancing market share in ternary materials and maintaining global leadership in cathode materials[43] - Established "Three Merchants" management guidelines and expanded CRM pilot to improve adaptability and standardization of dealers, agents, and service providers[43] - Developed group technology development plans, focusing on tungsten-molybdenum, rare earth, and energy new materials, with key projects like high-strength tungsten wire for photovoltaic applications achieving mass production[43] - Strengthened market-oriented R&D, achieving full coverage of IPD pilot projects and optimizing IPD evaluation and talent development systems[43] - Implemented ERP system upgrades and initiated digital transformation of financial management reports to enhance financial data traceability and standardization[44] - Improved talent evaluation and training systems, focusing on high-potential talents in marketing, technology, and leadership programs[45] - Enhanced product division management mechanisms, optimizing organizational design and authority allocation across subsidiaries[45] - Key projects in the tungsten-molybdenum sector, including the Ninghua Xingluokeng Tungsten Mine and the Duchang Jinding Crushing System, are progressing with planned expansions and new production lines[46] - The Xiamen Jinlu Hard Alloy Industrial Park project is advancing with new production lines for tungsten powder and RTP mixed materials, expected to be completed by 2024[46] - The Thailand Jinlu Hard Alloy Production Base Phase II project is in the design phase, with completion expected by the second half of 2025[46] - The company's Chengdu Dingtai New Materials project has completed the main construction and started production, with the old production line being relocated and expected to start production in the new factory area in 2023[47] - The company's Xiamen Tungsten Korea Tungsten Oxide Production Base project is in the preparatory stage and is expected to be completed in the first half of 2024[47] - The company's Changting Jinlong High-Performance Rare Earth Magnetic Materials project has gradually started production, with an additional 5,000 tons of high-performance rare earth magnetic materials for energy-saving motors expected to be completed in the second half of 2024[47] - The company's Xiamen Tungsten New Energy Haijing Base project has completed the entire process of public bidding and EPC general contracting bidding, with work progressing as planned[47] - The company's Xiamen Tungsten New Energy Ningde Base project has completed the preliminary design process, with the C and D production workshops expected to start production in 2024 and 2025, respectively[47] - The company's Xiamen Tungsten New Energy Sichuan Yaan Lithium Iron Phosphate project has successfully ignited the solid-phase method project and is undergoing material debugging and trial production, with the first phase expected to be completed in the second half of 2023 and the second phase in the first half of 2024[47] - The company's joint venture with China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. to establish Zhongse Zhengyuan (Anhui) New Energy Technology Co., Ltd. is in the preparatory stage, with work progressing as planned[48] - The company's rare earth secondary resource recycling project in Changting Jinlong is in the preparatory stage and is expected to be completed in the first half of 2024[47] - The company's joint venture with Chifeng Gold to establish Chijin Xiam

[Key Financial Data](index=1&type=section&id=Item%20I.%20Key%20Financial%20Data) This section provides an overview of the company's financial performance and key indicators for the reporting period [Key Accounting Data and Financial Indicators](index=1&type=section&id=Item%20I.%28I%29%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first three quarters of 2022, the company achieved significant growth in both operating revenue and net profit attributable to shareholders, increasing by **66.50%** and **31.27%** year-on-year respectively, with total assets growing by **24.50%** from the end of the previous year Key Accounting Data and Financial Indicators for 9M 2022 | Item | 9M 2022 | 9M 2021 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 36,916,205,586.59 | 22,172,364,604.85 | 66.50% | | Net Profit Attributable to Shareholders (Yuan) | 1,306,198,993.51 | 995,056,387.23 | 31.27% | | Basic Earnings Per Share (Yuan/share) | 0.9290 | 0.7077 | 31.27% | | Weighted Average Return on Net Assets (%) | 13.20% | 11.89% | Increased by 1.31 percentage points | [4](index=4&type=chunk)[5](index=5&type=chunk) Key Balance Sheet Data | Item | Sep 30, 2022 (Yuan) | Dec 31, 2021 (Yuan) | Change from Year-Beginning (%) | | :--- | :--- | :--- | :--- | | Total Assets (Yuan) | 40,964,745,260.93 | 32,902,374,255.10 | 24.50% | | Total Equity Attributable to Shareholders (Yuan) | 9,779,618,686.80 | 9,287,238,437.94 | 5.30% | [5](index=5&type=chunk) - The company retrospectively adjusted relevant financial data for prior periods due to the completion of a business combination under common control with Bobai Judian Mining Co., Ltd. in January 2022[5](index=5&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=3&type=section&id=Item%20I.%28II%29%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) In the first three quarters of 2022, the company's total non-recurring gains and losses amounted to **142.72 million Yuan**, with government subsidies recognized in current profit or loss being the largest item at **200.55 million Yuan** Non-Recurring Gains and Losses for 9M 2022 | Item | Amount from Year-Beginning to End of Reporting Period (Yuan) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 3,187,970.56 | | Government Subsidies Recognized in Current Profit or Loss | 200,553,010.80 | | Other Gains and Losses | 34,021,208.64 | | **Total** | **142,723,358.70** | [6](index=6&type=chunk) [Analysis of Changes in Key Financial Indicators](index=3&type=section&id=Item%20I.%28III%29%20Analysis%20of%20Changes%20in%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, significant changes occurred across multiple balance sheet and income statement accounts, driven by business expansion, increased sales, and strategic financing activities, leading to an overall improvement in profitability - Major Balance Sheet changes and reasons: - **Cash and Cash Equivalents**: Increased by **138.24%**, primarily due to the subsidiary Xiamen Tungsten New Energy receiving proceeds from private placement[7](index=7&type=chunk) - **Prepayments**: Increased by **221.82%**, mainly due to increased prepayments for raw material procurement by subsidiaries[7](index=7&type=chunk) - **Notes Payable**: Increased by **97.84%**, due to an increase in outstanding notes issued to suppliers[8](index=8&type=chunk) - **Bonds Payable**: Increased by **266.66%**, primarily due to the company's issuance of medium-term notes during the period[8](index=8&type=chunk) - Major Income Statement changes and reasons: - **Operating Revenue**: Increased by **66.50%**, mainly due to increased sales of tungsten and molybdenum, rare earth, and battery material products[8](index=8&type=chunk) - **Operating Cost**: Increased by **72.68%**, primarily due to expanded sales scale and rising raw material prices[8](index=8&type=chunk) - **Research and Development Expenses**: Increased by **57.52%**, mainly due to increased R&D investment by subsidiaries[8](index=8&type=chunk) - **Asset Impairment Losses**: Increased by **156.96%**, primarily due to increased inventory write-downs for some rare earth and battery material products[8](index=8&type=chunk) - The company's main businesses are generally performing well, with operating revenue increasing year-on-year, while effective cost control led to a decrease in expense ratios, improving overall profitability and driving synchronous growth in operating profit, total profit, and net profit[8](index=8&type=chunk) [Shareholder Information](index=4&type=section&id=Item%20II.%20Shareholder%20Information) This section details the company's shareholder structure and significant holdings as of the reporting period [Total Number of Common Shareholders, Number of Preferred Shareholders with Restored Voting Rights, and Top Ten Shareholders' Holdings](index=4&type=section&id=Item%20II.%28I%29%20Total%20Number%20of%20Common%20Shareholders%2C%20Number%20of%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%2C%20and%20Top%20Ten%20Shareholders%27%20Holdings) As of the end of the reporting period, the company had **73,942** common shareholders, with Fujian Rare Earth (Group) Co., Ltd. as the controlling shareholder holding **31.77%**, and a diversified top ten shareholder structure - The total number of common shareholders at the end of the reporting period was **73,942**[9](index=9&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | | :--- | :--- | :--- | | Fujian Rare Earth (Group) Co., Ltd. | State-owned Legal Person | 31.77 | | China Minmetals Non-ferrous Metals Co., Ltd. | State-owned Legal Person | 8.60 | | Japan United Materials Co., Ltd. | Overseas Legal Person | 5.08 | | Hong Kong Securities Clearing Company Limited | Other | 3.29 | | Shanghai Hewei Investment Co., Ltd. | State-owned Legal Person | 1.50 | | National Social Security Fund 112 Portfolio | Other | 1.00 | [9](index=9&type=chunk)[10](index=10&type=chunk) - There is no关联关系 or一致行动关系 between the company's controlling shareholder, Fujian Rare Earth (Group) Co., Ltd., and other top ten shareholders[11](index=11&type=chunk) [Operating Performance Discussion and Analysis](index=6&type=section&id=Item%20III.%20Other%20Reminders) During the reporting period, the company maintained stable operations across its three core businesses (tungsten and molybdenum, new energy materials, rare earth), with overall profitability continuously improving, driven primarily by the new energy materials segment's robust growth [Operating Performance by Business Segment](index=6&type=section&id=3.1%20Operating%20Performance%20by%20Business%20Segment) The new energy materials business was the primary growth driver, benefiting from a **117%** surge in ternary material sales, while tungsten and molybdenum and rare earth businesses showed steady growth, and real estate performance declined [Tungsten and Molybdenum Business](index=6&type=section&id=3.1.1%20Tungsten%20and%20Molybdenum%20Business) In the first three quarters, tungsten and molybdenum business revenue grew by **22.10%** with a slight **2.40%** increase in total profit, driven by a **181%** surge in fine tungsten wire sales despite a **7%** decline in cemented carbide sales Tungsten and Molybdenum Business Performance for 9M 2022 | Indicator | 9M 2022 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue (billion Yuan) | 9.86 | 22.10% | | Total Profit (billion Yuan) | 1.17 | 2.40% | [13](index=13&type=chunk) - Major deep processing product sales volume: - Cutting Tools: Sales volume of **34.28 million pieces**, up **6%** year-on-year[13](index=13&type=chunk) - Fine Tungsten Wire: Sales volume of **17.4 billion meters**, up **181%** year-on-year[13](index=13&type=chunk) - Cemented Carbide: Sales volume of **4,403 tons**, down **7%** year-on-year[13](index=13&type=chunk) [New Energy Materials Business](index=6&type=section&id=3.1.2%20New%20Energy%20Materials%20Business) The new energy materials business demonstrated exceptionally strong performance in the first three quarters, with revenue and total profit surging by **112.64%** and **114.48%** respectively, driven by a **117%** increase in ternary material sales New Energy Materials Business Performance for 9M 2022 | Indicator | 9M 2022 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue (billion Yuan) | 22.46 | 112.64% | | Total Profit (billion Yuan) | 0.99 | 114.48% | [13](index=13&type=chunk) - Major product sales volume: - Ternary Materials: Sales volume of **37.2 thousand tons**, up **117%** year-on-year[13](index=13&type=chunk) - Lithium Cobalt Oxide: Sales volume of **25.4 thousand tons**, maintaining its leading position in the industry[13](index=13&type=chunk) [Rare Earth Business](index=6&type=section&id=3.1.3%20Rare%20Earth%20Business) The rare earth business showed overall improvement, with revenue growing by **31.53%** and total profit by **50.51%** in the first three quarters, or **19.10%** after excluding the impact of Xiamen Tungsten Motor business divestiture Rare Earth Business Performance for 9M 2022 | Indicator | 9M 2022 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue (billion Yuan) | 4.48 | 31.53% | | Total Profit (billion Yuan) | 0.24 | 50.51% | [13](index=13&type=chunk) - Magnetic material sales volume was **4,227 tons**, up **5%** year-on-year[13](index=13&type=chunk) [Real Estate Business](index=6&type=section&id=3.1.4%20Real%20Estate%20Business) The real estate business showed weak performance, with revenue decreasing by **10.56%** in the first three quarters and a total loss of **0.14 billion Yuan**, largely consistent with the prior year Real Estate Business Performance for 9M 2022 | Indicator | 9M 2022 | YoY Change | | :--- | :--- | :--- | | Operating Revenue (billion Yuan) | 0.12 | -10.56% | | Total Profit (billion Yuan) | -0.14 | Largely consistent | [13](index=13&type=chunk) [Quarterly Financial Statements](index=7&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the quarter [Consolidated Balance Sheet](index=7&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2022, total assets reached **40.96 billion Yuan**, a **24.50%** increase from year-end, with total liabilities at **25.32 billion Yuan**, reflecting asset and liability expansion driven by business growth and financing activities Consolidated Balance Sheet as of Sep 30, 2022 | Item | Sep 30, 2022 (Yuan) | Dec 31, 2021 (Yuan) | Change from Year-Beginning | | :--- | :--- | :--- | :--- | | **Total Assets** | **40,964,745,260.93** | **32,902,374,255.10** | **+24.50%** | | Cash and Cash Equivalents | 3,694,178,028.17 | 1,550,600,661.67 | +138.24% | | Accounts Receivable | 7,808,836,182.71 | 5,100,930,320.61 | +53.09% | | Inventories | 9,341,232,868.20 | 8,076,589,023.08 | +15.66% | | **Total Liabilities** | **25,315,365,986.74** | **19,847,804,529.69** | **+27.55%** | | Long-term Borrowings | 5,712,960,336.25 | 3,515,621,007.51 | +62.50% | | Bonds Payable | 2,225,051,167.91 | 606,848,706.66 | +266.66% | | **Total Equity** | **15,649,379,274.19** | **13,054,569,725.41** | **+19.88%** | [15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Consolidated Income Statement](index=9&type=section&id=Consolidated%20Income%20Statement) In the first three quarters of 2022, total operating revenue reached **36.92 billion Yuan**, up **66.50%**, with net profit attributable to shareholders at **1.31 billion Yuan**, up **31.27%**, reflecting both revenue growth and increased R&D investment Consolidated Income Statement for 9M 2022 | Item | 9M 2022 (Yuan) | 9M 2021 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 36,916,205,586.59 | 22,172,364,604.85 | +66.50% | | Total Operating Cost | 34,562,386,637.90 | 20,614,641,632.47 | +67.66% | | Of which: Operating Cost | 31,838,112,110.71 | 18,438,022,815.45 | +72.68% | | Research and Development Expenses | 1,306,256,137.53 | 829,256,422.26 | +57.52% | | Operating Profit | 2,265,906,988.93 | 1,650,739,660.83 | +37.27% | | Total Profit | 2,264,409,048.21 | 1,624,727,132.08 | +39.37% | | Net Profit Attributable to Shareholders | 1,306,198,993.51 | 995,056,387.23 | +31.27% | | Basic Earnings Per Share (Yuan/share) | 0.9290 | 0.7077 | +31.27% | [18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [Consolidated Cash Flow Statement](index=12&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2022, net cash flow from operating activities significantly declined to **-0.78 billion Yuan** from a **1.46 billion Yuan** inflow, primarily due to increased operating expenditures, while financing activities provided **3.60 billion Yuan** in net cash Consolidated Cash Flow Statement for 9M 2022 | Item | 9M 2022 (Yuan) | 9M 2021 (Yuan) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -780,232,729.16 | 1,459,908,497.07 | Turned from positive to negative | | Net Cash Flow from Investing Activities | -715,035,311.04 | -784,782,833.12 | Net outflow decreased | | Net Cash Flow from Financing Activities | 3,599,696,896.63 | 730,245,652.57 | Net inflow significantly increased | | Cash and Cash Equivalents at Period End | 3,682,631,564.74 | 2,539,768,088.06 | Significantly increased | [22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Operating cash inflow was **25.31 billion Yuan**, but cash paid for goods and services reached **22.77 billion Yuan**, resulting in a net cash outflow from operating activities[22](index=22&type=chunk) - Net cash inflow from financing activities primarily stemmed from capital contributions of **1.05 billion Yuan** and proceeds from borrowings of **9.19 billion Yuan**, effectively supporting the company's operations and investment activities[23](index=23&type=chunk) [Parent Company Financial Statements](index=14&type=section&id=Parent%20Company%20Financial%20Statements) At the parent company level, operating revenue for the first three quarters of 2022 decreased to **2.76 billion Yuan**, but net profit surged by **97.88%** to **0.50 billion Yuan**, primarily driven by **0.55 billion Yuan** in investment income from subsidiaries Parent Company Key Financial Data for 9M 2022 | Item | 9M 2022 (Yuan) | 9M 2021 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,756,848,889.86 | 3,537,730,197.93 | -22.07% | | Investment Income | 545,257,615.36 | 415,966,796.43 | +31.08% | | Net Profit | 496,611,698.40 | 250,970,995.36 | +97.88% | [28](index=28&type=chunk)[29](index=29&type=chunk) - The parent company's net cash flow from operating activities was **-0.03 billion Yuan**, while net cash flow from investing activities was **-2.41 billion Yuan**, mainly due to **3.02 billion Yuan** in cash paid for investments, reflecting the parent company's capital injection and industrial layout into its subsidiaries[31](index=31&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2021 reached approximately ¥14.22 billion, representing a 79.48% increase compared to the same period last year[16]. - Net profit attributable to shareholders of the listed company was approximately ¥687.19 million, a significant increase of 194.40% year-on-year[16]. - The net profit excluding non-recurring gains and losses was approximately ¥588.26 million, up 208.43% from the previous year[16]. - Basic earnings per share for the reporting period (1-6 months) increased to 0.4887 RMB/share, a 194.40% increase compared to the same period last year[17]. - The weighted average return on equity rose to 8.71%, an increase of 5.59 percentage points year-on-year[17]. - In H1 2021, the company achieved a consolidated revenue of 14.223 billion CNY, a year-on-year increase of 79.48%[47]. - The net profit attributable to the parent company reached 687 million CNY, representing a year-on-year growth of 194.40%[47]. - The tungsten and molybdenum business generated revenue of 5.121 billion CNY, up 49.54% year-on-year, with a total profit of 800 million CNY, an increase of 96.75%[48]. - The company's rare earth business achieved revenue of 2.298 billion CNY, a year-on-year increase of 79.58%, with a total profit of 80.21 million CNY, up 127.86%[50]. - Revenue from new energy battery materials reached 6.718 billion RMB, a year-on-year increase of 112.94%, with a total profit of 291 million RMB, up 208.41%[53]. Assets and Liabilities - The company's total assets at the end of the reporting period amounted to approximately ¥28.04 billion, an increase of 11.71% compared to the end of the previous year[16]. - Net assets attributable to shareholders of the listed company were approximately ¥8.11 billion, reflecting a growth of 6.44% year-on-year[16]. - The company's accounts receivable increased by 42.31% to ¥4,016,050,373.23, up from ¥2,821,992,657.42, due to higher sales[72]. - The company reported a significant increase in accounts payable, which rose by 33.24% to ¥2,871,065,314.47, compared to ¥2,154,740,890.69 in the previous year[72]. - The company's inventory value stood at CNY 6,405.36 million, accounting for 46.08% of current assets, which poses a risk of inventory devaluation[89]. Cash Flow and Investments - The cash flow from operating activities showed a decrease of 36.08%, totaling approximately ¥858.75 million[16]. - Investment income surged by 957.85% to ¥115,187,889.58, compared to ¥10,888,826.89 in the same period last year, driven by improved profitability of joint ventures[71]. - The company reported an external equity investment amount of 650.57 million yuan during the reporting period, a significant increase of 323.53% compared to 153.61 million yuan in the same period last year[76]. - The company made major equity investments in Xiamen Xatu Tungsten Investment Co., Ltd. (400 million yuan) and Xiamen Xatu Motor Industrial Co., Ltd. (220 million yuan), both representing 100% ownership[77]. Research and Development - The company has undertaken 19 national key research and development projects, with 2 projects completed and accepted during the reporting period[36]. - The company holds 948 authorized patents, including 372 invention patents, reflecting its strong focus on innovation[36]. - Research and development expenses rose to ¥503,047,793.45, a 41.67% increase from ¥355,091,207.57 in the previous year, reflecting increased investment in R&D by subsidiaries[68]. Market and Industry Position - The company is a leading player in the tungsten industry, being one of the largest tungsten smelting and processing enterprises globally, with a strong market share in tungsten wire and hard alloy products[23]. - The lithium-ion battery cathode material market is experiencing rapid growth, driven by increasing demand in the new energy vehicle sector[23]. - The company is actively exploring applications for rare earth materials in various fields, including energy conservation and modern agriculture, leveraging its strengths in rare earth permanent magnet materials[30]. - The company maintains a complete industrial chain from rare earth mining to deep processing, positioning itself as a key player in the rare earth industry[30]. - The company has a strong focus on R&D and production of advanced battery materials, aiming to enhance material performance for high-quality battery manufacturers[31]. Environmental Compliance and Sustainability - The company reported a total wastewater discharge of 389,500 cubic meters in the first half of 2021, with an average COD discharge concentration of 141.67 mg/L, totaling 55.18 tons[102]. - The company generated 6,736.23 tons of smelting waste and 0.8415 tons of hazardous waste in the first half of 2021, with smelting waste being entrusted to a third party for comprehensive utilization[102]. - The company’s air pollutant discharge standards are in compliance with the relevant environmental regulations, with an average ammonia discharge concentration of 3.0 mg/m³ and particulate matter concentration of 10.025 mg/m³[102]. - The company has implemented pollution prevention facilities, including ammonia recovery systems and wastewater treatment facilities, which are operating normally[103]. - The company has established an emergency response plan for environmental incidents, which was revised and approved in October 2020, and is compliant with local regulations[105]. Risks and Challenges - The company has outlined potential risks in its management discussion and analysis section, advising investors to be cautious[5]. - The company faces risks from economic fluctuations affecting demand and prices for tungsten, molybdenum, and rare earth products, which are closely tied to the macroeconomic environment[86]. - The company is exposed to policy risks related to the strategic resources of tungsten and rare earths, which could impact its export business and overall performance[86]. - The ongoing COVID-19 pandemic poses uncertainties that may adversely affect the company's performance in the second half of 2021[89]. Corporate Governance and Shareholder Relations - The company has not disclosed any plans for profit distribution or capital reserve conversion during this reporting period[4]. - The company has undergone a normal board and supervisory committee rotation, with several new appointments made[95]. - The company has disclosed its stock incentive plan results and has not reported any subsequent developments in employee stock ownership plans[97]. - The company guarantees compliance with relevant laws and regulations regarding share transfers and will disclose any reduction plans in advance[166].

Financial Performance - Total revenue for Q1 2021 reached RMB 6.30 billion, a year-on-year increase of 78.11%[4] - Net profit attributable to shareholders was RMB 308 million, representing a 327.50% increase compared to the same period last year[4] - The tungsten and molybdenum business generated revenue of RMB 2.36 billion, up 62.76% year-on-year, with a profit of RMB 348 million, an increase of 109.09%[8] - Revenue from new energy battery materials reached RMB 2.97 billion, a 100.74% increase year-on-year, with a profit of RMB 136 million, up 298.97%[9] - The rare earth business achieved revenue of RMB 926 million, a 61.92% increase year-on-year, with a profit of RMB 49.57 million, an increase of RMB 54.58 million[9] - The real estate business reported revenue of RMB 4.1 million, a 19.09% increase year-on-year, with a profit loss reduction of RMB 6.67 million[9] - Basic earnings per share for the quarter were RMB 0.219, a 327.73% increase compared to RMB 0.0512 in the same period last year[4] - Total operating revenue for Q1 2021 reached ¥6,297,475,903.51, representing a 78.11% increase compared to ¥3,535,632,260.49 in the same period last year[12] - Net profit for Q1 2021 was ¥454,829,348.26, representing a 190.5% increase from ¥156,218,377.01 in Q1 2020[24] Cash Flow and Liquidity - The cash flow from operating activities showed a net outflow of RMB 143 million, a decrease of 179.05% year-on-year[4] - The company's cash and cash equivalents increased by 44.66% to ¥1,657,139,841.99 from ¥1,145,540,949.99 at the beginning of the period, mainly due to increased cash inflow from financing activities[10] - Cash and cash equivalents rose to ¥957,579,435.46 from ¥597,658,280.01, marking a significant increase of approximately 60.3%[20] - The company reported a cash inflow from financing activities of 3,373,448,894.73 RMB in Q1 2021, compared to 2,675,224,548.79 RMB in Q1 2020, reflecting an increase of approximately 26%[30] - The cash outflow from investing activities in Q1 2021 was 226,898,350.08 RMB, compared to 282,375,622.15 RMB in Q1 2020, indicating a reduction in investment spending[30] Assets and Liabilities - The total assets at the end of the reporting period were RMB 27.99 billion, an increase of 11.51% compared to the end of the previous year[4] - The total assets of the company reached ¥27,993,314,564.06, up from ¥25,103,875,213.03, indicating a growth in overall asset base[17] - Total liabilities increased to ¥17,616,247,567.90, up from ¥15,177,488,739.37, representing a growth of approximately 16.1% year-over-year[19] - Total current liabilities reached ¥14,317,358,883.15, up from ¥12,589,576,600.25, indicating a growth of about 13.7%[19] - The company's long-term borrowings rose by 32.87% to ¥2,751,516,607.75, attributed to increased long-term bank loans[10] - The accounts payable increased by 46.67% to ¥3,160,282,533.17, indicating higher procurement costs for raw materials[10] Research and Development - Research and development expenses increased by 62.46% to ¥228,846,998.64, reflecting the company's commitment to innovation[12] - Research and development expenses increased to ¥228,846,998.64 in Q1 2021, up 62.3% from ¥140,865,852.35 in Q1 2020[23] Investment and Income - The company's investment income surged by 306.26% to ¥34,308,265.30, driven by increased returns from joint ventures[12] - Investment income for Q1 2021 was ¥34,308,265.30, a significant rise from ¥8,445,001.12 in Q1 2020[24] Management and Future Plans - The company’s management indicated plans for market expansion and new product development in the upcoming quarters[24] Other Financial Metrics - The weighted average return on net assets increased to 3.96%, up 2.99 percentage points year-on-year[4] - The company reported a total comprehensive income of ¥442,670,945.28 for Q1 2021, compared to ¥151,342,148.47 in Q1 2020[25] - Financial expenses for Q1 2021 were ¥120,362,146.81, an increase from ¥92,981,166.83 in Q1 2020[23] - The company achieved a profit before tax of ¥520,055,305.35 in Q1 2021, compared to ¥175,034,963.73 in Q1 2020, indicating strong operational performance[24]

Financial Performance - The company’s operating revenue for 2020 was approximately ¥18.96 billion, representing a 9.02% increase compared to ¥17.40 billion in 2019[24]. - Net profit attributable to shareholders for 2020 was approximately ¥614.11 million, a significant increase of 135.58% from ¥260.68 million in 2019[24]. - Basic earnings per share for 2020 reached ¥0.4368, up 136.49% from ¥0.1847 in 2019[26]. - The weighted average return on equity increased to 8.20% in 2020, up from 3.57% in 2019, marking an increase of 4.63 percentage points[26]. - The company achieved a consolidated revenue of RMB 18.964 billion in 2020, representing a year-on-year growth of 9.02%[75]. - The consolidated operating cost was RMB 15.488 billion, an increase of 6.21% year-on-year[75]. - The net profit attributable to shareholders reached RMB 614 million, a significant increase of 135.58% compared to the previous year[75]. - The tungsten and molybdenum business generated revenue of RMB 7.536 billion, a slight increase of 0.28% year-on-year, with a total profit of RMB 802 million, up 200.29%[76]. - The rare earth business achieved revenue of 3.06 billion RMB in 2020, a year-on-year increase of 20.85%, with a total profit of 89.86 million RMB, up 10.57% year-on-year[81]. - The new energy battery materials segment generated revenue of 8.216 billion RMB, reflecting a 14.58% year-on-year growth, and a profit of 27.8 million RMB, which is a significant increase of 123.44% year-on-year[83]. Dividend and Profit Distribution - The board proposed a cash dividend of 1.5 RMB per 10 shares, totaling 212,768,880 RMB based on a total share capital of 1,418,459,200 shares after accounting for repurchased shares[5]. - The company reported a remaining undistributed profit of 1,254,275,667.78 RMB to be carried forward to the next year[5]. - The company reported a net profit attributable to ordinary shareholders of CNY 614.11 million for 2020, with a cash dividend of CNY 1.50 per 10 shares, resulting in a payout ratio of 34.65%[148]. Risk Management - The company has detailed risk factors related to its future development in the report[8]. - The company emphasizes the importance of noting investment risks related to forward-looking statements in the report[6]. - The company faces risks related to economic fluctuations, policy changes, safety production, and raw material supply[140][141]. - The company faces risks from fluctuations in raw material prices, particularly tungsten, molybdenum, rare earths, cobalt, and lithium, which can significantly impact operational performance[142]. - The company’s accounts receivable at the end of the reporting period amounted to CNY 2,821.99 million, representing 24.60% of current assets, indicating a potential risk of bad debts if collection measures are ineffective or customer credit changes[143]. - The company’s inventory value at the end of the reporting period was CNY 5,261.11 million, accounting for 45.86% of current assets, which poses a risk of inventory devaluation affecting profitability[144]. Operational Highlights - The company is a leading player in the tungsten industry, being one of the largest tungsten smelting product processing enterprises globally[33]. - The company has a complete industrial chain in rare earth materials, actively exploring applications in various sectors including energy conservation and modern agriculture[36]. - The lithium-ion battery materials segment is experiencing high growth, with the company positioned as a significant producer of cathode materials for batteries[37]. - The company operates three tungsten mining enterprises, ensuring stable resource supply for downstream processing[44]. - The company has developed a total of 712 authorized patents, including 316 invention patents, showcasing its strong focus on technological innovation[45]. - The company has implemented the International Advanced Manufacturing (IAM) project to enhance operational efficiency and profitability[39]. - The company has established 23 business units to provide high-quality products and professional services to customers[40]. Market Trends and Projections - The lithium battery shipment volume in China was 143 GWh in 2020, with a year-on-year growth of 22%, and is projected to reach 615 GWh by 2025, indicating a compound annual growth rate of over 25% from 2021 to 2025[135]. - By 2025, new energy vehicles are expected to account for approximately 20% of total new car sales in China, up from 5.4% in 2020[134]. - The total production of new energy vehicles in China is expected to exceed 6 million units by 2025, with a year-on-year growth of 42.9% in 2021[135]. - The company anticipates a recovery in hard alloy demand driven by economic recovery, with a projected increase in tungsten consumption to 52,000 tons in 2021 and 55,000 tons in 2022[132]. Legal and Compliance Issues - The company is currently involved in a significant civil lawsuit regarding a partnership dispute over a real estate development project, with ongoing court proceedings[174]. - The company has faced legal challenges regarding its equity holdings and shareholder resolutions, impacting its operational decisions[176]. - The company is actively managing its legal risks while pursuing growth opportunities through acquisitions and employee incentives[176]. Related Party Transactions - The total expected related party transactions for 2020 amounted to RMB 140,120,000, an increase of RMB 34,670,000 from the initial estimate[180]. - The actual related party transactions for 2020 totaled RMB 87,190,310, which did not exceed the expected total amount[182]. - The company provided loans to related parties totaling RMB 28 million, with interest expenses of RMB 7.26 million and RMB 0.183 million paid to Fujian Metallurgy and Fujian Rare Earth Group respectively[189]. Investment and Acquisitions - The company plans to acquire a 32.36% stake in Jiangxi Jutong Investment Holdings Co., Ltd. for a total price of 922.369 million yuan[176]. - The acquisition is pending due to ongoing litigation related to the target company and its equity[176]. - The company has made significant investments in new technology, including 700.00 million RMB in Xiamen Shituo Intelligent Technology Co., Ltd., which represents a 100% equity stake[122].