Corporate Announcements - Sanfeng Intelligent's director Chen Wei has been placed under investigation, but the company's operations remain normal and unaffected [3] - Shanghai Pharmaceuticals plans to acquire a 10% stake in Shanghai Shihua Group Financial Company for 143 million yuan, increasing its ownership from 30% to 40% [4] - Western Gold intends to acquire 100% of Xinjiang Meisheng Mining for 1.655 billion yuan, with a premium of 1421.66% over book value; the target company is expected to commence production in the second half of 2025 [5] - Hengrui Medicine plans to acquire approximately 1.46% of Chengdu Shengdi Pharmaceutical from minority shareholders for 40.144 million yuan, increasing its stake to 97.37% [6] - Dongshan Precision has approved an investment of up to 1 billion USD for a high-end printed circuit board project to meet long-term demand in emerging markets [7] - ST Wanfang and Rebecca have both received notices from the China Securities Regulatory Commission regarding investigations into information disclosure violations, but their operations remain normal [8][9] Financial Performance - China Duty Free Group reported a net profit of 2.6 billion yuan for the first half of 2025, a decrease of 20.81% year-on-year, with total revenue of 28.151 billion yuan, down 9.96% [13] - Digital Certification expects a loss of 80 to 96 million yuan for the first half of 2025, compared to a loss of 29.25 million yuan in the same period last year [14] - Western Mining reported a net profit of 1.869 billion yuan for the first half of 2025, an increase of 15% year-on-year, with total revenue of 31.619 billion yuan, up 27% [15] Major Contracts - ST Dongyi signed new orders worth 215 million yuan in the second quarter for its decoration business, with total uncompleted contracts amounting to 383 million yuan [17] - Guangshen Railway signed a cooperation agreement for the Guangzhou East Station renovation project, with a total investment of approximately 16.66 billion yuan [18] Shareholder Actions - Huajin Technology's employee stock ownership platform plans to reduce its stake by up to 4% within three months [20] - Liuyuan Group intends to repurchase shares worth between 100 million and 200 million yuan, with a maximum repurchase price of 25.7 yuan per share [22]

证券代码：601168 证券简称：西部矿业 公告编号：临 2025-035 西部矿业股份有限公司 （二）本次董事会会议通知及议案于 2025 年 7 月 20 日以邮件方式向全体董 事发出。 （三）本次董事会会议于 2025 年 7 月 25 日以通讯方式召开。 （四）本次董事会会议应出席的董事 7 人，实际出席会议的董事 7 人，会议 有效表决票数 7 票。 二、董事会会议审议情况 （一）关于审议 2025 年半年度报告的议案 会议同意，批准公司编制的《2025 年半年度报告》，并按相关规定予以披露 （详见上海证券交易所网站 www.sse.com.cn）。 公司审计与内控委员会对该议案发表了审核意见认为： 第八届董事会第二十一次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 一、董事会会议召开情况 （一）本次董事会会议的召集、召开符合有关法律、法规及《公司章程》的 相关规定。 （三）关于审议修订《公司经理层任期制和契约化管理方案》的议案 会议同意，批准此次修订的《公司经理层任期制和契约化管理方案》，并按 ...

西部矿业股份有限公司 关于公司控股子公司西部矿业集团财务有限公司的 风险持续评估报告 公司根据《上海证券交易所上市公司自律监管指引第 5 号-交 易与关联交易》的要求，查验并审阅了西部矿业集团财务有限公司 （下称"西矿财务公司"）的《营业执照》、《金融许可证》等有关 证件资料及财务资料，对其经营资质、业务和风险状况进行了评估， 具体情况报告如下： 一、西矿财务公司的基本情况 西矿财务公司是经原中国银行业监督管理委员会批准设立的 非银行金融机构，于 2011 年 12 月在青海省工商行政管理局注册成 立。目前注册资本为人民币 32 亿元和美元 500 万元。其中，西部 矿业集团有限公司（下称"西矿集团"）出资 12.8 亿元人民币和 200 万美元，持股比例 40%；公司出资 19.2 亿元人民币和 300 万美元， 持股比例 60%。 西矿财务公司经营范围：吸收成员单位存款；办理成员单位贷 款；办理成员单位票据贴现；办理成员单位资金结算与收付；提供 成员单位委托贷款、债券承销、非融资性保函、财务顾问、信用鉴 证及咨询代理业务；从事同业拆借；办理成员单位票据承兑；从事 固定收益类有价证券投资。 经查询，西矿财务 ...

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, with no false records, misleading statements, or major omissions[4](index=4&type=chunk) - This semi-annual report has not been audited[4](index=4&type=chunk) - There is no profit distribution plan or capital reserve to share capital increase plan approved by the board of directors for this reporting period[4](index=4&type=chunk) - Forward-looking statements regarding future plans in this report do not constitute a substantive commitment to investors due to uncertainties[4](index=4&type=chunk) - The company has detailed potential risks in the "Risks Faced" section of "Section III Management Discussion and Analysis" in this report[6](index=6&type=chunk) [Section I Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section provides definitions for key terms and entities used throughout the report - This reporting period refers to January 1, 2025, to June 30, 2025[11](index=11&type=chunk) - Company, this company, this group, and Western Mining all refer to Western Mining Co., Ltd[11](index=11&type=chunk) - The report lists definitions for common terms such as CSRC and SSE, as well as names of major subsidiaries like Western Copper, Yulong Copper, and Western Mining Finance Company[11](index=11&type=chunk)[12](index=12&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information and presents key financial data and indicators for the reporting period [I. Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section introduces Western Mining Co., Ltd.'s Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Western Mining Co., Ltd., and its Chinese abbreviation is Western Mining[13](index=13&type=chunk) - The company's legal representative is Wang Haifeng[13](index=13&type=chunk) [II. Contact Persons and Contact Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section discloses the contact information for the company's Board Secretary and Securities Affairs Representative - The Board Secretary is Wang Wei, and the Securities Affairs Representative is Han Yingmei[14](index=14&type=chunk) - The contact address for both is Building 1, Western Mining Haishu Business Center, No. 4 Wenyilu, Haihu New District, Xining City, Qinghai Province[14](index=14&type=chunk)[15](index=15&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) The company's registered address changed on October 12, 2024, to No. 4 Wenyilu, Haihu New District, Xining City, Qinghai Province - The company's registered address changed on October 12, 2024[16](index=16&type=chunk) - The company's website is www.westmining.com, and its email address is wm@westmining.com[16](index=16&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=6&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) The company's designated information disclosure newspapers are Shanghai Securities News, China Securities Journal, and Securities Times - The company's designated information disclosure newspapers include Shanghai Securities News, China Securities Journal, and Securities Times[17](index=17&type=chunk) - The website address for publishing the semi-annual report is www.sse.com.cn[17](index=17&type=chunk) [V. Brief Introduction to Company Shares](index=6&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) The company's A-shares are listed on the Shanghai Stock Exchange under the stock name Western Mining and stock code 601168 - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[18](index=18&type=chunk) - The stock abbreviation is Western Mining, and the stock code is 601168[18](index=18&type=chunk) [VII. Company's Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Key accounting data for H1 2025 shows revenue, total profit, and net profit attributable to shareholders increased, while net cash flow from operating activities slightly decreased Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 31,619,198,164 | 24,977,279,448 | 27 | | Total Profit | 3,879,846,174 | 3,158,427,506 | 23 | | Net Profit Attributable to Shareholders of Listed Company | 1,869,364,113 | 1,620,653,829 | 15 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 1,833,607,095 | 1,675,718,452 | 9 | | Net Cash Flow from Operating Activities | 5,010,092,508 | 5,039,673,859 | -1 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 16,599,474,964 | 17,089,849,771 | -3 | | Total Assets (Period-end) | 54,585,506,730 | 54,939,668,740 | -1 | Key Financial Indicators for H1 2025 | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.78 | 0.68 | 15 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (RMB/share) | 0.77 | 0.70 | 10 | | Weighted Average Return on Net Assets (%) | 11.10 | 10.45 | Increase 0.65 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 10.89 | 10.81 | Increase 0.08 percentage points | [IX. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This section details non-recurring gains and losses for H1 2025, totaling 35,757,018 RMB, and clarifies the company's recognition of derivative instrument gains and losses Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -13,763,452 | | Government grants recognized in current profit or loss | 36,954,796 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 764,345 | | Gains and losses from debt restructuring | 459,812 | | Other non-operating income and expenses apart from the above | 12,106,099 | | Less: Income tax impact | 3,990,820 | | Impact on minority interests (after tax) | -3,226,238 | | Total | 35,757,018 | - The company classifies gains and losses from commodity futures contracts, commodity option contracts, and deferred pricing arrangements as recurring gains and losses, as they are directly related to ordinary business operations[23](index=23&type=chunk) [Section III Management Discussion and Analysis](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a comprehensive discussion and analysis of the company's operations, financial performance, and future outlook for the reporting period [I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) This section analyzes H1 2025 market trends for major mineral products and describes the company's main business, covering mining, smelting, salt lake chemicals, trade, and financial services [(1) Industry Overview](index=8&type=section&id=(%E4%B8%80)%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) In H1 2025, copper prices fluctuated upwards, lead prices widely fluctuated, zinc prices declined, gold prices surged, silver prices broke out, iron ore prices rose then fell, and molybdenum concentrate prices rebounded - Copper prices rose by **8.3%** from the beginning of the year, influenced by tight concentrate supply, US tariff investigations, and downstream restocking[25](index=25&type=chunk) - Lead prices rose by **2.2%** from the beginning of the year, influenced by battery plant restarts, environmental factors, and tight concentrate supply[27](index=27&type=chunk)[28](index=28&type=chunk) - Zinc prices fell by **12%** from the beginning of the year, influenced by overseas zinc mine restarts, pessimistic macroeconomic sentiment, and increased refined zinc output[30](index=30&type=chunk) - Gold prices rose by **23.3%** from the beginning of the year, driven by safe-haven demand, central bank gold purchases, and strengthened de-dollarization trends[32](index=32&type=chunk) - Silver prices rose by **20.8%** from the beginning of the year, influenced by its industrial commodity attributes and the convergence of the gold-silver ratio[33](index=33&type=chunk) - Molybdenum concentrate prices rose by **5%** from the beginning of the year, influenced by tightening supply, recovering demand, and stricter export quotas[36](index=36&type=chunk) [(2) Main Business Operations](index=11&type=section&id=(%E4%BA%8C)%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5) The company's main business spans mining, smelting, salt lake chemicals, trade, and finance, leveraging rich mineral resources and a complete industrial chain for green development and innovation - The company's core resources include key varieties such as copper, lead-zinc, and iron, with main businesses spanning the entire mineral industry chain, including mining, beneficiation, smelting, and trade[38](index=38&type=chunk) - The company wholly owns or controls fourteen mines, with main products including mined copper, mined zinc, mined lead, mined molybdenum, iron concentrate, and nickel concentrate[40](index=40&type=chunk) Company's Total Mineral Resource Reserves (10,000 tons) | Copper Metal | Lead Metal | Zinc Metal | Molybdenum Metal | Vanadium Pentoxide | | :--- | :--- | :--- | :--- | :--- | | 566 | 140.59 | 243.69 | 35.6 | 65.8 | | Iron (Ore Volume) | Nickel | Gold (tons) | Silver (tons) | Magnesium Chloride | | 28,245.22 | 27 | 11.23 | 1,911.64 | 3,046.25 | - The smelting segment has formed production capacities of **350,000 tons/year** for electrolytic copper, **200,000 tons/year** for electrolytic lead, and **200,000 tons/year** for zinc ingots[46](index=46&type=chunk) - The salt lake chemical business actively participates in the construction of world-class salt lake industrial bases, promoting high-end, green, intelligent, and diversified development of the salt lake industry[46](index=46&type=chunk) - In addition to producing and selling proprietary products, the trading business also engages in non-ferrous metal trading (copper, lead, zinc, aluminum, nickel) and futures hedging[47](index=47&type=chunk) - The controlled subsidiary, Western Mining Finance Company, provides financial services to member units, functioning as a platform for fund aggregation, settlement, monitoring, and financial services[48](index=48&type=chunk) [II. Discussion and Analysis of Operations](index=14&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) During the reporting period, the company achieved significant growth in operating revenue and total profit, primarily driven by increased mined copper output and prices, alongside progress in production, project construction, diversification, technology, and green manufacturing [(1) Focusing on Core Business, Achieving Both Quantity and Quality in Production and Operations](index=14&type=section&id=(%E4%B8%80)%E8%81%9A%E7%84%A6%E4%B8%BB%E4%B8%9A%EF%BC%8C%E7%94%9F%E4%BA%A7%E7%BB%8F%E8%90%A5%E9%87%8F%E8%B4%A8%E5%8F%8C%E4%BC%98) During the reporting period, the company achieved substantial growth in both mineral and smelting product output, with significant increases in mined copper, zinc, and smelted copper, enhancing production efficiency and core competitiveness Production of Major Products, Jan-Jun 2025 | Product | Actual Jan-Jun 2025 (gold tons/tons/kilograms) | YoY Change (%) | | :--- | :--- | :--- | | Mined Copper | 91,752 (gold tons) | 7.65 | | Mined Zinc | 62,875 (gold tons) | 18.61 | | Mined Lead | 35,071 (gold tons) | 24.63 | | Mined Molybdenum | 2,525 (gold tons) | 31.10 | | Iron Concentrate | 718,954 (tons) | 11.93 | | Gold in Concentrate | 134 (kilograms) | 32.67 | | Smelted Copper | 182,249 (tons) | 49.94 | | Smelted Lead | 85,770 (tons) | 3,534.32 | | Smelted Zinc | 70,970 (tons) | 17.07 | - Yulong Copper Mine's Workshop 1 saw copper and molybdenum recovery rates increase by **4.08** and **5.36** percentage points respectively, while Workshop 2's copper and molybdenum recovery rates increased by **3.9** and **15.99** percentage points[50](index=50&type=chunk) - Qinghai Copper's total copper smelting recovery rate increased by **3.3** percentage points, and electrolytic direct recovery rate increased by **2.09** percentage points[50](index=50&type=chunk) - Smelted zinc and lead did not meet planned output, primarily due to a gradual increase in production load after commissioning in Q4 2024[51](index=51&type=chunk) [(2) Coordinated Efforts, Efficient Project Advancement](index=15&type=section&id=(%E4%BA%8C)%E9%BD%90%E6%8A%93%E5%85%B1%E7%AE%A1%EF%BC%8C%E9%A1%B9%E7%9B%AE%E5%BB%BA%E8%AE%BE%E9%AB%98%E6%95%88%E6%8E%A8%E8%BF%9B) The company is efficiently advancing multiple mine upgrade and expansion projects, including beneficiation plant renovations and the Yulong Copper Mine Phase III project, which will significantly boost ore processing and concentrate production capacity - Xinyuan Mining's **800,000 tons/year** beneficiation plant upgrade project has commenced, with an annual ore processing capacity of **800,000 tons** upon completion[52](index=52&type=chunk) - Subei Bolun Qijiaojing Iron Mine's beneficiation plant technical upgrade and deep second-phase mining project has commenced, with an annual mining and beneficiation capacity of **3.1 million tons** of ore and **1 million tons** of iron concentrate upon completion[52](index=52&type=chunk) - Shuangli Mining's No. 2 Iron Mine beneficiation system upgrade and expansion project has commenced, expected to be operational by year-end, increasing beneficiation capacity to **3 million tons/year** and annual iron concentrate output to **870,000 tons**[52](index=52&type=chunk) - Yulong Copper Mine Phase III project received approval on June 23, and upon completion, its production scale will increase from **19.89 million tons/year** to **30 million tons/year**[52](index=52&type=chunk) [(3) Diversified Efforts, Enhancing Comprehensive Development Resilience](index=15&type=section&id=(%E4%B8%89)%E5%A4%9A%E5%85%83%E5%8F%91%E5%8A%9B%EF%BC%8C%E5%A2%9E%E5%BC%BA%E5%85%A8%E9%9D%A2%E5%8F%91%E5%B1%95%E9%9F%A7%E6%80%A7) The company is enhancing its development resilience through capacity doubling, smart operations, lean management, and market value management, including mine upgrades, exploration, unmanned technology, 6S management, cost control, and investor relations - All three major beneficiation plant upgrade projects at the mining units have commenced construction, and the mining license for Youre Lead-Zinc Mine in Baiyu County, Sichuan Province, has been obtained[53](index=53&type=chunk)[54](index=54&type=chunk) - Xitieshan Branch has initially achieved "dark factory" construction through unmanned underground electric locomotives, unmanned concentrate warehouse cranes, beneficiation APC, and Deepseek integration[54](index=54&type=chunk) - Controlling shareholder Western Mining Group and its concerted party Western Mining Assets have twice increased their holdings in the company, accumulating **47,660,077 shares**, representing **2%** of the company's total share capital[54](index=54&type=chunk) - The company received the "Best Practice Award for Investor Relations Management" from the China Association for Public Companies, and the 16th "Tianma Award for Investor Relations Management of Chinese Listed Companies" and "Shareholder Return Award for Investor Relations Management" from Securities Times[55](index=55&type=chunk) - The company was selected for the 2025 S&P Global "Sustainability Yearbook (China Edition)" and ranked **314th** in Fortune China 500[55](index=55&type=chunk) [(4) Concentrating Capabilities, Driving Development with Technology and Talent](index=16&type=section&id=(%E5%9B%9B)%E9%9B%86%E8%81%9A%E8%83%BD%E5%8A%9B%EF%BC%8C%E7%A7%91%E6%8A%80%E4%BA%BA%E6%89%8D%E9%A9%B1%E5%8A%A8%E5%8F%91%E5%B1%95) The company achieved significant technological innovation, advancing 12 government-level and 10 company-level research projects, with a breakthrough in high-purity magnesium hydroxide production from salt lake brine, and actively expanded talent acquisition channels - The company is fully advancing **12** government-level scientific research projects, including **3** national key scientific research projects[56](index=56&type=chunk) - The "Research on Capacity Enhancement for High-Purity Magnesium Hydroxide Production from Salt Lake Bischofite" project achieved a major breakthrough, with refractory material performance improvements far exceeding expectations[56](index=56&type=chunk) - During the reporting period, **23** patent applications were submitted (**4** invention patents, **18** utility model patents, **1** design patent), and **27** patents were granted concurrently[56](index=56&type=chunk) - The company has cumulatively selected **20** individuals for Qinghai Province's "Kunlun Talent" Action Plan and actively signed strategic cooperation agreements with renowned industry universities and partners[56](index=56&type=chunk) [(5) Multiple Measures, Building a Green Manufacturing System](index=16&type=section&id=(%E4%BA%94)%E5%A4%9A%E6%8E%AA%E5%B9%B6%E4%B8%BE%EF%BC%8C%E6%9E%84%E5%BB%BA%E7%BB%BF%E8%89%B2%E5%88%B6%E9%80%A0%E4%BD%93%E7%B3%BB) The company is actively building a "green and low-carbon" production environment by implementing a three-year action plan for safety production, continuously eliminating major accident hazards, optimizing emergency systems, and formulating green mine construction and ecological restoration plans - The company is diligently implementing a three-year action plan for fundamental safety production improvements, continuously promoting dynamic clearance of major accident hazards and optimizing the emergency system[58](index=58&type=chunk) - The company formulated and issued the "2025 Green Mine and Garden-Style Factory Construction Project Plan," "2025 Greening Special Plan," and "2025 Green Western Mining Construction Plan"[58](index=58&type=chunk) - Innovatively promoting differentiated construction of "one mine, one ecological landscape; one factory, one green brand," with systematic planning in environmental comprehensive management, energy conservation, and emission reduction[58](index=58&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=17&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness stems from its advantageous western resource location, strategic resource layout, technological innovation, high-altitude mining and beneficiation expertise, ESG leadership, and consistent performance and shareholder returns - The company's industries are primarily located in the western regions, with abundant mineral resources and significant water and electricity cost advantages, facilitating preferential access to high-quality western mineral resources[59](index=59&type=chunk) - The company's major mines are located in important metallogenic belts within China, possessing favorable metallogenic geological conditions and significant exploration potential[60](index=60&type=chunk) - The company has established national-level enterprise technology centers, postdoctoral research workstations, and other scientific research platforms, with its mining and beneficiation processes ranking among the industry's best[61](index=61&type=chunk) - The company has accumulated extensive experience in mining and beneficiation technologies and production management in high-altitude environments at its high-altitude mines[62](index=62&type=chunk) - Leading international ESG rating agencies MSCI assigned the company a **BBB** rating, S&P CSA scored **47** points, and domestic mainstream ESG rating agencies assigned an **AA** rating, all ranking among the top in the industry[63](index=63&type=chunk) - The company's performance is steadily improving, with cumulative cash dividends of **10.724 billion RMB** since listing, accounting for **57.72%** of cumulative net profit, ranking among the top in the industry[64](index=64&type=chunk) [IV. Major Operating Conditions During the Reporting Period](index=18&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%90%A5%E6%83%85%E5%86%B5) During the reporting period, the company's financial statement items showed significant changes, with R&D expenses increasing by 99%, various asset and liability structure changes, and good operating conditions for major subsidiaries [(1) Analysis of Main Business Operations](index=18&type=section&id=(%E4%B8%80)%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's operating revenue and operating costs both achieved significant growth, with R&D expenses increasing by 99%, indicating continued investment in research and development Analysis of Changes in Financial Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 31,619,198,164 | 24,977,279,448 | 27 | | Operating Cost | 25,302,493,983 | 19,718,280,876 | 28 | | Selling Expenses | 18,745,058 | 16,198,668 | 16 | | Administrative Expenses | 508,807,656 | 400,326,507 | 27 | | Financial Expenses | 286,142,759 | 347,124,873 | -18 | | R&D Expenses | 592,748,586 | 297,567,029 | 99 | | Net Cash Flow from Operating Activities | 5,010,092,508 | 5,039,673,859 | -1 | - R&D expenses increased by **99%** compared to the prior period, primarily due to increased R&D investment in the current period[65](index=65&type=chunk) [(3) Analysis of Assets and Liabilities](index=18&type=section&id=(%E4%B8%89)%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's asset and liability structure saw multiple changes, with significant increases in accounts receivable, prepayments, non-current assets due within one year, and construction in progress, while other receivables and non-current loans and advances decreased Changes in Assets and Liabilities (Changes Exceeding 30%) | Item Name | Current Period-end Amount (RMB) | Change from Prior Year-end (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Accounts Receivable | 207,507,545 | 63 | Increased receivables from goods sold in current period | | Prepayments | 763,679,435 | 392 | Increased prepayments for raw material purchases in current period | | Other Receivables | 521,142,507 | -40 | Decreased receivables from futures, options margins, and dividends from investees in current period | | Non-current assets due within one year | 1,256,239,582 | 113 | Increased loans and advances due within one year issued by Western Mining Finance Company to member units in current period | | Other Current Assets | 241,236,109 | -30 | Decreased deferred input VAT in current period | | Loans and Advances (Non-current) | 700,440,000 | -49 | Decreased medium and long-term loans issued by Western Mining Finance Company to member units in current period | | Construction in Progress | 2,152,307,568 | 41 | Increased investment in ongoing construction projects in current period | | Other Non-current Assets | 97,387,450 | 101 | Increased prepayments for engineering equipment in current period | | Notes Payable | 235,010,170 | -56 | Maturing notes payable settled in current period | | Contract Liabilities | 1,058,076,167 | 73 | Increased advance receipts for goods at current period-end | | Employee Benefits Payable | 78,097,487 | -48 | Performance bonuses paid in current period | | Taxes Payable | 563,425,627 | 32 | Increased mined copper output and rising non-ferrous metal prices in current period | | Non-current liabilities due within one year | 3,673,912,478 | 40 | Increased long-term borrowings due within one year in current period | | Other Current Liabilities | 213,910,250 | 75 | Increased deferred output VAT in current period | | Special Reserves | 74,267,990 | 51 | Increased safety production fund balance at current period-end | - Overseas assets totaled **441,419,885 RMB**, accounting for **0.81%** of total assets[70](index=70&type=chunk) Major Restricted Assets as of Report Period-end | Item | Carrying Amount (RMB) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 717,440,593 | Margin/Statutory Reserve/Frozen/Restricted | Acceptance bill and letter of credit margins, mine reclamation margins, central bank statutory reserves, litigation frozen funds, entrusted payment restricted funds | | Notes Receivable | 6,269,215 | Pledged | Pledged to obtain bank loans | | Fixed Assets | 70,957,443 | Mortgaged | Machinery and equipment mortgaged to obtain bank loans | | Intangible Assets | 472,039,227 | Mortgaged | Mining rights and land use rights mortgaged to obtain bank loans | | Total | 1,266,706,478 | / | / | [(4) Analysis of Investment Status](index=20&type=section&id=(%E5%9B%9B)%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company had no significant equity or non-equity investments during the reporting period, with financial assets measured at fair value totaling 1,523,568,307 RMB at period-end, showing decreases in trading financial assets and notes receivable financing - There were no significant equity or non-equity investments during the reporting period[73](index=73&type=chunk) Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB) | Fair Value Change in Current Period (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 280,172,204 | -8,688,985 | 257,711,606 | | Notes Receivable Financing | 68,731,883 | -16,364,511 | 52,367,372 | | Other Equity Instrument Investments | 1,213,489,329 | 0 | 1,213,489,329 | | Total | 1,562,393,416 | -8,688,985 | 1,523,568,307 | [(6) Analysis of Major Controlled and Invested Companies](index=22&type=section&id=(%E5%85%AD)%E4%B8%BB%E8%90%A5%E5%8F%B8%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) During the reporting period, major controlled subsidiaries like Yulong Copper, Western Copper, Xinyuan Mining, Subei Bolun, and Western Mining Finance Company were profitable, with Yulong Copper achieving the highest net profit, while some subsidiaries incurred losses Operating Performance of Major Controlled and Invested Companies (Jan-Jun 2025) | Company Name | Company Type | Operating Revenue (10,000 RMB) | Operating Profit (10,000 RMB) | Net Profit (10,000 RMB) | | :--- | :--- | :--- | :--- | :--- | | Yulong Copper | Subsidiary | 636,520 | 386,537 | 349,110 | | Western Copper | Subsidiary | 74,974 | 30,277 | 24,123 | | Xinyuan Mining | Subsidiary | 28,176 | 6,704 | 5,763 | | Subei Bolun | Subsidiary | 30,855 | 4,635 | 2,820 | | Western Copper Materials | Subsidiary | 614,166 | -944 | -964 | | Qinghai Copper | Subsidiary | 749,880 | -27,884 | -28,171 | | Xianghe Nonferrous | Subsidiary | 163,840 | -382 | 579 | | Rare and Precious Metals | Subsidiary | 373,390 | -13,997 | -14,004 | | Western Mining Finance Company | Subsidiary | 16,139 | 10,029 | 7,948 | | Western Mining Shanghai | Subsidiary | 568,183 | 2,051 | 1,515 | | Dongtai Lithium Resources | Associate | 49,185 | 20,914 | 17,146 | [V. Other Disclosures](index=23&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces risks from product price fluctuations, high-risk mining and smelting operations, and mineral resource estimation uncertainties, while actively implementing a "quality improvement, efficiency enhancement, and shareholder return" action plan [(1) Potential Risks](index=23&type=section&id=(%E4%B8%80)%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces risks from product price volatility, inherent high risks in mining and smelting (e.g., industrial accidents, equipment failures, environmental damage), and potential discrepancies in mineral resource and recoverable reserve estimates - Risk of product price fluctuations: Prices of base metals like zinc, lead, and copper are influenced by supply and demand changes, global economic conditions, and industry cycles, and sustained declines could have a significant adverse impact on the company's financial position and operating performance[76](index=76&type=chunk) - Mining and smelting are high-risk industries: Involving industrial accidents, mine collapses, severe weather, equipment failures, fires, groundwater seepage, explosions, and other unforeseen events, which could lead to property damage, casualties, environmental damage, and potential legal liabilities[76](index=76&type=chunk) - Risk of mineral resource and recoverable reserve estimation: Due to complex geological structures of mines and limited exploration scope, actual mine conditions may differ from estimates, adversely affecting the company's production, operations, and financial position[76](index=76&type=chunk) [(2) Other Disclosure Items](index=23&type=section&id=(%E4%BA%8C)%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company increased capital in its wholly-owned subsidiary Western Mining Shanghai by 200 million RMB, established an engineering management department, and deregistered its zinc industry branch, while actively executing its "quality improvement, efficiency enhancement, and shareholder return" action plan - In March 2025, the company made a cash capital injection of **200 million RMB** into its wholly-owned subsidiary Western Mining (Shanghai), increasing its registered capital to **300 million RMB** upon completion[77](index=77&type=chunk) - The company established an Engineering Management Department to strengthen overall project management and improve engineering management efficiency and quality[77](index=77&type=chunk) - The Zinc Industry Branch completed its deregistration on July 11[77](index=77&type=chunk) - Controlling shareholder Western Mining Group and its concerted party Western Mining Assets have twice increased their holdings in the company, accumulating **47,660,077 shares**, representing **2%** of the company's total share capital[78](index=78&type=chunk) - The company's 2024 profit distribution plan was a cash dividend of **1 RMB** per share (tax inclusive), totaling **2.383 billion RMB**, and the equity distribution has been completed[78](index=78&type=chunk) - During the reporting period, the company fully advanced **12** government-level scientific research projects and **10** company-level key R&D projects, submitting **23** patent applications and receiving **27** patent grants[79](index=79&type=chunk) - Leading international ESG rating agencies MSCI assigned the company a **BBB** rating, S&P CSA scored **47** points, and domestic mainstream ESG rating agencies assigned an **AA** rating, all ranking among the top in the industry[79](index=79&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=25&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section details changes in the company's directors, supervisors, and senior management, outlines the profit distribution plan, and reports on environmental information disclosure and rural revitalization efforts [I. Changes in Company Directors, Supervisors, and Senior Management](index=25&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were multiple changes in the company's directors, supervisors, and senior management, including the chairman, vice chairman, president, vice president, and employee supervisor - Wang Haifeng was elected Chairman and Director; Zhao Fukang was appointed President and elected Director; Wang Wei was elected Director and appointed Board Secretary and Chief Financial Officer[81](index=81&type=chunk) - Zhong Yongsheng resigned as Chairman and was elected Vice Chairman; Cai Shuguang resigned as Director, Vice Chairman, and President, and was appointed Vice President[81](index=81&type=chunk) - Dong Qiaolong was appointed Vice President, and Hu Huijie was elected Employee Supervisor[81](index=81&type=chunk) [II. Profit Distribution or Capital Reserve to Share Capital Increase Plan](index=25&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company's semi-annual profit distribution plan and capital reserve to share capital increase plan are "No," meaning no distribution or increase - The semi-annual proposed profit distribution plan and capital reserve to share capital increase plan are "No"[82](index=82&type=chunk) - The number of bonus shares, dividends, and capital increase per 10 shares is **0**[82](index=82&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=26&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%83%85%E5%86%B5) The company has 17 subsidiaries on the list for environmental information disclosure, with some completing fixed pollution source registration, hazardous waste permits, and environmental impact assessments during the reporting period - The number of companies included in the list of enterprises required to disclose environmental information by law is **17**[83](index=83&type=chunk) - Subsidiaries such as Yulong Copper, Xitieshan Branch, and Western Copper all have query indexes for their legally disclosed environmental information reports[83](index=83&type=chunk) - Hongfeng Weiye completed the renewal of its fixed pollution source registration receipt, and Rare and Precious Metals completed the processing of its hazardous waste operating license[84](index=84&type=chunk) - Yulong Copper completed the environmental impact assessment for the Yulonggou Tailings Dam heightening and expansion project, and Subei Bolun completed the environmental impact assessment for the deep second-phase project[84](index=84&type=chunk) [V. Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=27&type=section&id=%E4%BA%94%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) The company's Party Committee systematically promotes rural revitalization through various assistance measures, including agricultural product procurement, aid to vulnerable groups, policy promotion, spring farming donations, and volunteer services, while strengthening anti-poverty monitoring and skill training - The company's Party Committee coordinates planning, formulates annual assistance work plans, and has repeatedly visited linked villages for research and guidance[85](index=85&type=chunk) - During the New Year and Spring Festival, the company purchased **12,000 catties** of yak beef from linked assistance villages, increasing collective village economic income by **456,000 RMB**[86](index=86&type=chunk) - Donated **260,000 RMB** to **4** linked villages for **809** farmers to purchase a total of **80.9 tons** of chemical fertilizers, supporting spring plowing and sowing[86](index=86&type=chunk) - In the first half of the year, **12 households** and **51 individuals** were included in poverty return monitoring, and **269** people participated in training courses such as security guard, ramen economy, and ecological education[88](index=88&type=chunk) - Since the beginning of the year, **11** concentrated clean-up campaigns for living environments have been carried out, significantly improving villagers' living conditions[88](index=88&type=chunk) [Section V Important Matters](index=29&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers the fulfillment of commitments, significant related-party transactions, and major contracts, including guarantees [I. Fulfillment of Commitments](index=29&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's controlling shareholder, Western Mining Group, continues to fulfill its commitment to avoid direct or indirect competition with the company's main business - Controlling shareholder Western Mining Group signed the "Agreement on Avoiding Horizontal Competition" in September 2014, committing not to engage in businesses or activities that constitute or may constitute direct or indirect competition with the company's main business[90](index=90&type=chunk) - This commitment letter remains valid from its signing until the day Western Mining Group's direct or indirect shareholding in the company falls below **20%** of the company's issued share capital and it no longer has actual control over the company[90](index=90&type=chunk) - During the reporting period, this commitment was timely and strictly fulfilled[90](index=90&type=chunk) [X. Significant Related-Party Transactions](index=30&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engages in daily operating-related transactions with related parties, including commodity sales, service procurement, and financial services provided by Western Mining Finance Company [(1) Related-Party Transactions Related to Daily Operations](index=30&type=section&id=(%E4%B8%80)%E4%B8%8E%E6%97%A5%E5%B8%B8%E7%BB%8F%E8%90%A5%E7%9B%B8%E5%85%B3%E7%9A%84%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company conducts related-party transactions with Western Mining Tianjin International Trade and Western Mining Hainan International Trade for selling and purchasing copper, lead, and zinc products, as well as agency services, with pricing referenced to SMM Related-Party Transactions Related to Daily Operations | Related Party | Transaction Item | Annual Estimated Amount (10,000 RMB) | Actual Amount in Current Period (10,000 RMB) | Pricing Policy | | :--- | :--- | :--- | :--- | :--- | | Western Mining Tianjin International Trade | Sales of copper, lead, zinc products | 136,038 | 52,522 | Referencing SMM pricing | | Western Mining Tianjin International Trade | Procurement of copper, lead, zinc, sulfur products and agency services | 109,347 | 84,237 | Referencing SMM pricing | | Western Mining Hainan International Trade | Procurement of lead, zinc products and agency services | 88,882 | 31,313 | Referencing SMM pricing | [(5) Financial Business Between the Company and Related Financial Companies, and Between the Company's Controlled Financial Company and Related Parties](index=31&type=section&id=(%E4%BA%94)%E5%85%AC%E5%8F%B8%E4%B8%8E%E5%AD%98%E5%9C%A8%E5%85%B3%E8%81%94%E5%85%B3%E7%B3%BB%E7%9A%84%E8%B4%A2%E5%8A%A1%E5%85%AC%E5%8F%B8%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E8%82%A1%E8%B4%A2%E5%8A%A1%E5%85%AC%E5%8F%B8%E4%B8%8E%E5%85%B3%E8%81%94%E6%96%B9%E4%B9%8B%E9%97%B4%E7%9A%84%E9%87%91%E8%9E%8D%E4%B8%9A%E5%8A%A1) Controlled subsidiary Western Mining Finance Company provides deposit, loan, and credit services to Western Mining Group and its affiliates, with significant balances in deposits, loans, and credit lines at period-end Deposit Business Overview | Related Party | Relationship | Beginning Balance (RMB) | Total Deposits in Current Period (RMB) | Total Withdrawals in Current Period (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Western Mining Group | Associate Shareholder | 430,940,203 | 10,233,921,187 | 10,551,611,796 | 113,249,594 | | Western Mining Tianjin International Trade | Wholly-owned subsidiary of parent company | 218,555,971 | 10,250,962,373 | 10,407,583,773 | 61,934,571 | | Total | / | 1,349,076,653 | 27,259,396,311 | 27,552,978,709 | 1,055,494,255 | Loan Business Overview | Related Party | Relationship | Loan Limit (RMB) | Beginning Balance (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Western Mining Group | Associate Shareholder | 2,150,000,000 | 1,181,225,889 | 1,160,000,000 | | Western Mining Tianjin International Trade | Wholly-owned subsidiary of parent company | 1,200,000,000 | 1,121,586,598 | 1,100,000,000 | | Total | / | / | 3,479,203,269 | 3,618,247,716 | Credit or Other Financial Business Overview | Related Party | Relationship | Business Type | Total Amount (RMB) | Actual Amount Incurred (RMB) | | :--- | :--- | :--- | :--- | :--- | | Western Mining Group | Associate Shareholder | Loans, Acceptances | 3,000,000,000 | 1,570,000,000 | | Western Mining Tianjin International Trade | Wholly-owned subsidiary of parent company | Loans, Discounts, Acceptances | 2,100,000,000 | 1,100,000,000 | | Total | / | / | 7,760,000,000 | / | [XI. Major Contracts and Their Performance](index=33&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company had no external guarantees, but its guarantees for subsidiaries totaled 6.015 billion RMB, representing 35.20% of net assets, with 1.958 billion RMB for entities with a debt-to-asset ratio exceeding 70% [(2) Major Guarantees Performed and Not Yet Performed During the Reporting Period](index=34&type=section&id=(%E4%BA%8C)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E7%9A%84%E5%8F%8A%E5%B0%9A%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no external guarantees during the reporting period, but its guarantees for subsidiaries totaled 6.015 billion RMB, representing 35.20% of net assets, with 1.958 billion RMB for entities with a debt-to-asset ratio exceeding 70% - The company had no external guarantees during the reporting period[104](index=104&type=chunk) - At the end of the reporting period, the total guarantee balance for subsidiaries was **6.01512 billion RMB**[104](index=104&type=chunk) - The total guarantee amount accounted for **35.20%** of the company's net assets[104](index=104&type=chunk) - The amount of debt guarantees provided directly or indirectly for guaranteed entities with a debt-to-asset ratio exceeding **70%** was **1.95771 billion RMB**[104](index=104&type=chunk) [Section VI Share Changes and Shareholder Information](index=35&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details the company's share capital changes and shareholder structure, including the total number of shareholders and the top ten shareholders [I. Changes in Share Capital](index=35&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[107](index=107&type=chunk) [II. Shareholder Information](index=35&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the total number of common shareholders was 113,242, with Western Mining Group and its concerted party holding 30.93% as the controlling shareholder - As of the end of the reporting period, the total number of common shareholders was **113,242**[108](index=108&type=chunk) Shareholding of Top Ten Shareholders | Shareholder Name | Period-end Shareholding (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Western Mining Group Co., Ltd. | 559,459,971 | 23.48 | State-owned Legal Person | | Qinghai Western Mining Asset Management Co., Ltd. | 177,660,077 | 7.46 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 117,152,372 | 4.92 | Other | | Ruizhong Life Insurance Co., Ltd. - Proprietary Funds | 56,913,609 | 2.39 | Other | | Lin Sihua | 43,251,246 | 1.81 | Domestic Natural Person | | Xinjiang Tacheng International Resources Co., Ltd. | 30,000,000 | 1.26 | Domestic Non-state-owned Legal Person | | Xinjiang Tongyu Equity Investment Co., Ltd. | 25,620,000 | 1.08 | Domestic Non-state-owned Legal Person | | Agricultural Bank of China Co., Ltd. - CSI 500 ETF | 24,845,944 | 1.04 | Other | | Taikang Life Insurance Co., Ltd. - Participating - Individual Participating - 019L - FH002 | 24,597,920 | 1.03 | Other | | SDIC Securities Co., Ltd. | 21,979,965 | 0.92 | Other | - Western Mining Group Co., Ltd. and Qinghai Western Mining Asset Management Co., Ltd. are concerted parties, holding a total of **737,120,048 shares**, with a combined shareholding ratio of **30.93%**[111](index=111&type=chunk) - Xinjiang Tacheng International Resources Co., Ltd. pledged **30,000,000 shares**, and SDIC Securities Co., Ltd. pledged **12,000,000 shares**[110](index=110&type=chunk)[111](index

Investment Rating - The investment rating for the non-ferrous metals sector is "Increase" [5] Core Viewpoints - In Q2 2025, the holdings of non-ferrous metal heavy stocks by active equity funds increased, with significant increases in rare earth and minor metals [1][2] - The total market value of active equity funds' holdings in the non-ferrous metals sector reached approximately 70.4 billion yuan, accounting for 4.29% of the total heavy stock holdings, an increase of 0.07 percentage points from Q1 2025 [1] - The top ten heavy stocks are concentrated in copper, gold, and aluminum, with Zijin Mining remaining the largest heavy stock [1] Summary by Sections Heavy Stock Holdings - The market value of the top ten heavy stocks in the non-ferrous metals sector includes Zijin Mining (22.8 billion yuan), Shandong Gold (4.4 billion yuan), and Zhongjin Gold (3 billion yuan) [1] - The increase in holdings is mainly concentrated in rare earth and minor metal sectors, with the largest increases seen in stocks like Guangsheng Nonferrous (rare earth) and Haotong Technology (platinum, palladium, rhodium recovery) [2] Investment Recommendations - Supply constraints are expected to support the price increases of rare earths, copper, and aluminum, while precious metals will benefit from weakened dollar credit and a rate-cutting cycle [2] - Specific recommendations include: - Rare Earth: Favorable outlook for rare earth prices, with recommendations for Northern Rare Earth and Guangsheng Nonferrous [2] - Copper: Limited supply growth due to reduced capital expenditure, with recommendations for Jincheng Mining, Zijin Mining, and Luoyang Molybdenum [2] - Aluminum: Anticipated supply ceiling for electrolytic aluminum, recommending China Hongqiao [2] - Gold: Positive outlook for gold prices due to weakened dollar credit, with recommendations for Zhongjin Gold and Chifeng Jilong Gold Mining [2] Earnings Forecast and Valuation - The earnings per share (EPS) and price-to-earnings (PE) ratios for key companies are as follows: - Zijin Mining: EPS of 1.21 (2024), PE of 16 (2024) [4] - Luoyang Molybdenum: EPS of 0.63 (2024), PE of 14 (2024) [4] - Jincheng Mining: EPS of 2.54 (2024), PE of 19 (2024) [4] - Western Mining: EPS of 1.23 (2024), PE of 14 (2024) [4] - China Hongqiao: EPS of 2.36 (2024), PE of 8 (2024) [4] - Northern Rare Earth: EPS of 0.28 (2024), PE of 126 (2024) [4]

Investment Rating - The report maintains an "Overweight" rating for the steel and non-ferrous metal industries [1] Core Viewpoints - The supply-side reform in China is expected to break the deflationary cycle and create investment opportunities in the steel and non-ferrous metal sectors [1][6] - The report emphasizes the importance of "supply constraints" to manage the supply-demand balance and mitigate economic downturn risks [6][12] - The steel industry is facing severe overcapacity, with state-owned enterprises holding a significant market share, which facilitates the implementation of administrative measures to control production [6][28] Summary by Sections 1. Supply-Side Reform and Economic Management - The socialist market economy in China allows for effective macroeconomic control, contrasting with the cyclical issues faced in capitalist economies [12][13] - Historical experiences show that demand stimulus alone is insufficient to resolve deep-seated deflationary pressures [14][15] - The supply-side reform initiated in 2016 has proven successful in stabilizing prices and improving corporate profitability [21][22] 2. Steel Industry Analysis - The steel industry has been in a state of oversupply from 2007 to 2024, with crude steel production increasing from 490 million tons to 1.01 billion tons, while apparent consumption has not kept pace [28][29] - The production capacity utilization rates for rebar and wire rod are expected to decline from around 70% to 50% due to weak real estate demand [33][34] - The concentration of production among state-owned enterprises is high, with central state-owned enterprises accounting for approximately 63% of total production in 2024 [38][39] 3. Investment Recommendations - The report suggests focusing on three categories of investment targets: profit recovery, stable profit with valuation repair, and stable high-dividend stocks [51] - Specific companies recommended for profit recovery include Liugang Co., Taigang Stainless Steel, and Shandong Iron and Steel, with projected annualized PE ratios improving significantly under favorable conditions [51]

Group 1 - The metal zinc concept declined by 1.18% as of the market close on July 16, ranking among the top declines in the sector, with companies like Tibet Summit, Wolong New Energy, and Xingye Silver Tin experiencing significant drops [1][2] - Among the concept stocks, ST Shengtun, Hongda Co., and Smart Agriculture saw increases of 1.39%, 0.83%, and 0.64% respectively, while the majority faced declines [1][2] - The metal zinc sector experienced a net outflow of 378 million yuan, with 27 stocks seeing outflows, and five stocks with outflows exceeding 30 million yuan, led by Hunan Gold with a net outflow of 92.37 million yuan [1][2] Group 2 - The top stocks with net outflows included Hunan Gold, Xingye Silver Tin, and Western Mining, with outflows of 92.37 million yuan, 80.25 million yuan, and 47.64 million yuan respectively [1][2] - Conversely, the stocks with the highest net inflows were Zijin Mining, ST Shengtun, and Wolong New Energy, attracting net inflows of 24.11 million yuan, 20.38 million yuan, and 18.43 million yuan respectively [1][2] - The trading activity in the metal zinc sector showed a significant turnover rate, with Hunan Gold at 1.90% and Xingye Silver Tin at 2.89%, indicating active trading despite the overall decline [1][2]

Summary of Conference Call Notes Company and Industry Involved - The conference call discusses a mining company involved in copper, lead, and zinc production, with a focus on their operational performance and production plans for the year. Key Points and Arguments Production and Sales Performance - The company reported a stable mineral production output, with a quarter-on-quarter increase in production from Qianxin, which is primarily sourced from Inner Mongolia's Xibu Copper Industry and Huokqi Copper Mine [1] - In Q1, the copper-gold mine production reached 26% of the annual target, indicating a potential to exceed the previously set goal of 168,000 tons for the year, despite a planned reduction of 10,000 tons compared to last year [3] - The company plans to conduct major maintenance in December, which is typically the month with the most adverse mining conditions [4] Financial Performance and Challenges - The copper smelting segment is under pressure, with processing fees currently negative at $30, leading to a loss in Q1 despite an increase in profits compared to the previous year [5][6] - The company aims to reduce losses in the copper smelting segment by improving raw material structure and increasing procurement of lower-cost mixed ores [7] - The overall processing fees for domestic copper are lower than imported copper, with processing costs ranging from 4,800 to 5,300 [9] Raw Material Supply and Procurement - The company anticipates a stable supply of raw materials, with a significant portion of lead and zinc needing to be sourced externally due to insufficient internal production [12][13] - The supply of new raw materials is expected to improve compared to previous years, with lower procurement difficulties noted [13] Cost Management and Future Outlook - The complete cost of copper and lead production is reported to be stable, with expectations of cost reductions as new projects come online [16][17] - The company is focusing on internal management improvements and cost reduction strategies to enhance profitability in the coming year [8] Project Developments - The company is progressing on the Phase III expansion project at Yulong Copper Mine, expected to be completed by late next year, with a short production ramp-up time anticipated [22][23] - The total investment for the project is estimated at 5 billion, with cash flow management indicating that the company can handle the financial burden over the next few years [23] Miscellaneous - The company has experienced a return to asset impairment of 60 million, primarily due to previous inventory adjustments, but expects this to be less significant than last year [20] - The company is actively engaging in exploration and resource expansion as a key focus area for future growth [24] Other Important but Overlooked Content - The company is not currently signing long-term contracts for processing fees, indicating a cautious approach to market fluctuations [9] - The Q1 performance of the company shows a cumulative revenue of 3.1 billion with a profit of 1.89 billion, reflecting a strong operational performance despite market challenges [15]

Summary of Conference Call Records Company and Industry Involved - The discussion revolves around a mining company involved in the production of metals such as lead, copper, and iron, with specific references to operations in Lhasa and Golmud [1][2]. Core Points and Arguments - **Metal Production Focus**: The company is currently focusing on key metals such as lead, copper, and iron, with a specific emphasis on carbonization or storage enhancement methods [1]. - **Market Value Assessment**: The Qinghai State-owned Assets Supervision and Administration Commission has set market value assessment measures for the company, which will directly impact the annual salary of the company's leadership [1]. - **Stable Production at Horgos**: The production at Horgos is expected to remain stable at around 15,000 tons, with minor shortfalls in the first quarter expected to be compensated later in the year [2]. - **Copper Procurement Needs**: The company’s Qinghai Copper Industry requires 120,000 tons of copper-gold ore, which is anticipated to be fully sourced from its subsidiary, Yulong [2][3]. - **Investment Losses**: The company reported a loss of 220 million from futures trading, which is attributed to procurement activities related to its agricultural supply chain [3][4]. - **Inventory and Sales Timing**: As of March, the company has a two-week inventory, with sales expected to ramp up in the second quarter due to weather-related transportation issues affecting sales in the first quarter [4]. - **Dividend Expectations**: The company anticipates that if product prices remain stable, the dividend levels for the current year will be similar to the previous year, with calculations based on cash flow rather than fixed ratios [5]. - **Optimistic Market Outlook**: There is a general optimism regarding the price trends of metals, despite previous impacts from trade wars on stock prices. The company’s operations are reported to be stable, with a high self-sufficiency rate in raw materials for smelting [6]. Other Important but Possibly Overlooked Content - **Impact of Trade Wars**: The company has noted that the trade war has had a significant initial impact on stock prices, but the overall effect on operations is minimal due to the company's low reliance on imports and exports, except for lead-gold ore [6].

Core Viewpoint - The company is facing significant investor concerns regarding its hedging strategies and financial performance amid rising copper prices, with calls for a reassessment of its risk management approach [2][3][10]. Financial Performance - As of July 14, 2025, the company's stock closed at 16.41 yuan, down 0.55%, with a turnover rate of 1.54% and a trading volume of 366,800 hands, amounting to a transaction value of 604 million yuan [1]. - The company has reported substantial losses from hedging activities, totaling over 1 billion yuan in the past two years, raising questions about its financial stability and strategy [7][11]. Hedging Strategy - Investors have expressed concerns that the company's hedging strategy has not effectively mitigated risks, particularly during periods of rising copper prices, leading to losses instead of profits [2][3][5]. - The company acknowledges the need to optimize its hedging strategies and has indicated a willingness to adjust its approach based on market conditions and risk assessments [3][10][11]. Market Conditions - Recent data indicates a significant decline in copper inventories, with LME copper stocks dropping to 9.3 million tons and SHFE copper stocks at 2.1 million tons, raising concerns about potential supply shortages and price volatility [4][9]. - The company is monitoring market dynamics closely, particularly the risks associated with potential short squeezes in the copper futures market, and is considering adjustments to its hedging ratios [5][10][11]. Investor Relations - The company has been responsive to investor feedback, acknowledging concerns about its hedging practices and the impact on shareholder value, and has committed to enhancing transparency and communication [3][6][10].