[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99) Zijin Mining Group Co., Ltd. is a joint-stock company listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange, primarily engaged in the exploration, mining, smelting, and sales of gold, copper, zinc, and other metal mineral resources - Zijin Mining Group Co., Ltd. is a joint-stock company registered in the People's Republic of China, with shares listed on the Hong Kong Stock Exchange (stock code: **02899**) and Shanghai Stock Exchange (stock code: **601899**)[2](index=2&type=chunk)[11](index=11&type=chunk) - The company primarily engages in the exploration, mining, smelting, and sales of gold, copper, zinc, and other metal mineral resources. As of the end of 2020, the Group held **291 prospecting rights** and **236 mining rights**[15](index=15&type=chunk) [Financial Highlights](index=8&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) The company achieved significant financial growth in 2020, with revenue increasing by 26.01% and net profit attributable to parent company shareholders rising by 51.93%, alongside substantial growth in total assets and liabilities 2020 Key Financial Data Summary | Indicator | 2020 (RMB) | 2019 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 171,501,338,490 | 136,097,978,018 | +26.01% | | **Operating Profit** | 11,239,742,530 | 7,242,074,162 | +55.20% | | **Total Profit** | 10,846,027,174 | 6,974,278,766 | +55.51% | | **Net Profit** | 8,458,038,953 | 5,060,904,684 | +67.12% | | **Net Profit Attributable to Parent Company Shareholders** | 6,508,553,913 | 4,283,957,365 | +51.93% | 2020 Year-End Key Balance Sheet Data Summary | Indicator | 2020 Year-End (Thousand RMB) | 2019 Year-End (Thousand RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 182,313,250 | 123,830,947 | +47.23% | | **Total Liabilities** | 107,716,809 | 66,751,349 | +61.37% | | **Total Equity Attributable to Parent Company Shareholders** | 56,538,554 | 51,185,965 | +10.46% | [Chairman's Report](index=10&type=section&id=%E8%91%A3%E4%BA%8B%E9%95%BF%E6%8A%A5%E5%91%8A) Despite the global pandemic and economic recession in 2020, the company achieved exceptional growth in key economic indicators, significant progress in project construction, and major M&A achievements, doubling its total market capitalization - In 2020, amidst the COVID-19 pandemic and global economic recession, the company's key economic indicators grew beyond expectations, with significant achievements in project construction and major mergers and acquisitions. The company's total market capitalization doubled from **RMB 114.8 billion** at the end of 2019 to **RMB 224.9 billion** at the end of 2020[20](index=20&type=chunk) - The company's resource reserves significantly increased, with gold exceeding **2,300 tons** and copper exceeding **62 million tons**, laying a solid foundation for sustainable development. Newly acquired Buriticá Gold Mine in Colombia and Aurora Gold Mine in Guyana generated profits in the same year, and the acquisition of Tibet Julong Copper was successfully completed[21](index=21&type=chunk) - The company established a five-year (2+3) plan and 2030 development goals, aiming to become a large-scale, high-tech, and efficient international mining group. In 2021, the focus will be on promoting reforms, accelerating the conversion of resource advantages, increasing resource ownership, leveraging capital markets, and adhering to technological innovation[22](index=22&type=chunk) [Business Overview](index=13&type=section&id=%E4%B8%9A%E5%8A%A1%E6%A6%82%E5%86%B5) The company is a large multinational mining group with operations across 12 countries and 14 provinces in China, primarily engaged in the exploration and development of gold, copper, and other mineral resources [Global Presence and Industry Position](index=15&type=section&id=%E4%B8%9A%E5%8A%A1%E6%A6%82%E5%86%B5-%E5%85%A8%E7%90%83%E5%B8%83%E5%B1%80%E4%B8%8E%E8%A1%8C%E4%B8%9A%E5%9C%B0%E4%BD%8D) The company is a large multinational mining group with operations across 12 countries and 14 provinces in China, primarily engaged in the exploration and development of gold, copper, and other mineral resources, holding a leading position in overseas copper and gold reserves and production among Chinese enterprises - The company holds significant mining investment projects in **12 countries globally** and **14 provinces (regions) in China**, ranking among the largest and most profitable Chinese enterprises in terms of controlled overseas copper and gold resource reserves and mineral product output[43](index=43&type=chunk) - The company holds a prominent position in the industry, ranking **3rd among global gold companies** and **7th in the non-ferrous metal mining industry** in Forbes Global 2000 in 2020[44](index=44&type=chunk) [Core Competencies](index=18&type=section&id=%E4%B8%9A%E5%8A%A1%E6%A6%82%E5%86%B5-%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B) The company's core competence lies in innovation, having pioneered the "Ore Flow Five-in-One" mining engineering management model, achieving significant resource discoveries and breakthroughs in developing low-grade, refractory resources - The company created the "Ore Flow Five-in-One" mining engineering management model, integrating geological exploration, mining, mineral processing, metallurgy, and environmental protection for comprehensive research and full-process control to maximize economic and social benefits[57](index=57&type=chunk) - Autonomous exploration has yielded fruitful results, with cumulative new discoveries of **27.88 million tons of copper**, **1,207 tons of gold**, and **8.11 million tons of zinc (lead)**. Notably, the newly discovered Kamoa-Kakula copper mine in Congo (DRC) boasts over **18 million tons of copper resources**[59](index=59&type=chunk) - The company possesses leading technology in processing low-grade and refractory resources, having built China's largest gold mine, the world's first ten-million-ton-level copper bio-metallurgy system, and China's first gold mine pressure pre-oxidation plant, among other industry benchmarks[64](index=64&type=chunk) [Five-Year (2+3) Plan and 2030 Development Goals](index=20&type=section&id=%E4%B8%9A%E5%8A%A1%E6%A6%82%E5%86%B5-%E4%BA%94%E5%B9%B4%EF%BC%882%2B3%EF%BC%89%E8%A7%84%E5%88%92%E5%92%8C2030%E5%B9%B4%E5%B1%95%E7%9B%AE%E6%A0%87) The company has formulated a "three-step" development plan for the next decade, aiming to become a large-scale, high-tech, and efficient international mining group by 2030, with specific production targets for each phase - The company plans to achieve its 2030 development goals in three phases: - **Phase 1 (2021-2022):** Achieve leapfrog growth in output and economic indicators, and initially establish a globalized operation and management system - **Phase 2 (2023-2025):** Comprehensively develop resources, intensify M&A and exploration, and largely reach the level of a world-class metal mining company - **Phase 3 (2026-2030):** Fully establish a large-scale, high-tech, and efficient international mining group, striving to enter the **top 3-5 globally** in comprehensive indicators[66](index=66&type=chunk)[67](index=67&type=chunk) Major Mineral Product Output Plan | Product | 2020 Actual | 2021 Plan | 2022 Plan | 2025 Plan | | :--- | :--- | :--- | :--- | :--- | | **Mined Gold (tons)** | 40.5 | 53-56 | 67-72 | 80-90 | | **Mined Copper (10,000 tons)** | 45.3 | 54-58 | 80-85 | 100-110 | | **Mined Zinc (Lead) (10,000 tons)** | 37.8 | 45-48 | 47-50 | - | | **Iron Concentrate (10,000 tons)** | 387 | 350-380 | 290-330 | - | [Key Growth Projects](index=21&type=section&id=%E4%B8%9A%E5%8A%A1%E6%A6%82%E5%86%B5-%E9%87%8D%E7%82%B9%E5%A2%9E%E9%87%8F%E9%A1%B9%E7%9B%AE) The company is advancing several world-class key growth projects across China, Colombia, Serbia, and Congo (DRC), covering core minerals like gold and copper, with most projects under construction or technical upgrade, expected to contribute significant benefits upon commissioning Key Project Overview | Project Name | Location | Mineral Type | Status | Highlights | | :--- | :--- | :--- | :--- | :--- | | **Buriticá Gold Mine, Colombia** | Colombia | Gold, Silver | In Production + Expansion | World-class ultra-high-grade large gold mine, commenced production in 2020, annual gold output to reach **9.1 tons** after technical upgrade | | **Timok Copper-Gold Mine, Serbia** | Serbia | Copper, Gold | Under Construction | Super-large copper-gold mine, upper zone expected to commence production in June 2021, peak annual output of **135,000 tons of copper** and **6.1 tons of gold** | | **Kamoa-Kakula Copper Mine, Congo (DRC)** | Congo (DRC) | Copper | Under Construction | World's fourth-largest undeveloped high-grade copper mine, Phase I expected to commence production by end of Q2 2021, annual copper output up to **400,000 tons** | | **Tibet Julong Copper** | China Tibet | Copper | In Production + Under Construction | China's largest proven porphyry copper deposit, Phase I planned to commence production by end of 2021, annual copper output approximately **160,000 tons**[73](index=73&type=chunk)[76](index=76&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) [Profiles of Directors, Supervisors, and Senior Management](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E4%BA%BA%E5%91%98%E7%AE%80%E4%BB%8B) The company's core leadership comprises experienced industry experts, including Chairman Chen Jinghe, who is renowned in geological exploration and mining engineering management, supported by a team with extensive professional knowledge in various fields - The company's core leadership consists of experienced industry experts. Chairman Mr. Chen Jinghe is the company's founder and core leader, highly regarded in geological exploration and mining engineering management. Other directors, supervisors, and senior management possess extensive professional knowledge and practical experience in corporate management, geology, mineral processing, metallurgy, finance, and law[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) [Management Discussion and Analysis](index=33&type=section&id=%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 an in-depth analysis of the company's business operations, financial performance, investment activities, and future outlook, highlighting key achievements and identified risks [Company Business Overview](index=33&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90-%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) The company engages in global mining exploration and development, with a business model covering resource exploration, M&A, mine design, construction, operation, and management, extending to smelting and mineral trade, holding a prominent position as one of China's largest producers of gold, copper, and zinc - The company's business model core is mining development, adhering to a dual strategy of independent exploration and resource M&A, and pioneering the "Ore Flow Five-in-One" mining engineering management model to achieve full-process control over geological exploration, mining, mineral processing, metallurgy, and environmental protection[96](index=96&type=chunk) - The company is one of China's largest producers of mined gold, copper, and zinc, holding a significant position in domestic resource reserves and output. In 2020, the company's copper resource reserves accounted for approximately **52.56%** of China's total, and mined copper output accounted for **27.10%** of the domestic total[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - The company's core competencies include: sound corporate governance and institutional advantages, robust resource base, continuously growing production capacity, strong technological innovation, leading low-cost operations, and an excellent team and corporate culture[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) [Discussion and Analysis of Operations](index=36&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90-%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In 2020, despite pandemic challenges, the company achieved high-speed growth in performance, with sales revenue reaching RMB 171.501 billion (+26.01%) and net profit attributable to parent company RMB 6.509 billion (+51.93%), driven by stable increases in major product output and significant resource reserve enhancements from M&A and project construction 2020 Major Mineral Product Output | Product | Output | Year-on-Year Change | | :--- | :--- | :--- | | **Mined Gold** | 40,509 kilograms | -0.79% | | **Mined Copper** | 453,447 tons | +22.60% | | **Mined Zinc (Zinc in Concentrate)** | 342,131 tons | -8.54% | | **Mined Lead (Lead in Concentrate)** | 36,072 tons | +5.30% | | **Mined Silver** | 298,715 kilograms | +13.50% | | **Iron Concentrate** | 3.87 million tons | +9.63% | 2020 Resource Reserves (by Equity) | Mineral | Unit | 2020 Year-End | 2019 Year-End | Growth Rate (%) | | :--- | :--- | :--- | :--- | :--- | | **Gold Ore** | Metal tons | 2,333.64 | 1,886.87 | 23.68 | | **Copper Ore** | Metal 10,000 tons | 6,205.58 | 5,725.42 | 8.39 | | **Zinc Ore** | Metal 10,000 tons | 1,032.70 | 855.83 | 20.67 | | **Silver Ore** | Metal tons | 2,923.55 | 1,860.64 | 57.13 | - Through successful acquisitions of Buriticá Gold Mine, Guyana Aurora Gold Mine, and Julong Copper Mine, the company added **385.53 tons of gold**, **5.3684 million tons of copper**, and **867.44 tons of silver** in resource reserves by equity, providing a solid resource guarantee for future growth[124](index=124&type=chunk) - The company's overseas business experienced rapid growth, with overseas mineral product output, mining assets, and profits approaching or exceeding half of the company's total. In the reporting period, overseas mined gold, copper, and zinc output accounted for **58%**, **44%**, and **50%** of the company's total, respectively[129](index=129&type=chunk) [Analysis of Main Business](index=43&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90-%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, rising mineral product prices combined with increased sales volume significantly boosted gross profit, with a comprehensive gross margin of 47.71%, while effective cost control was maintained despite an increase in financial expenses Unit Sales Cost and Gross Margin by Product | Product Name | 2020 Unit Sales Cost | 2020 Gross Margin (%) | 2019 Gross Margin (%) | | :--- | :--- | :--- | :--- | | **Mined Gold** | 177.38 RMB/gram | 51.40 | 41.82 | | **Mined Copper** | 20,095 RMB/ton | 46.15 | 41.42 | | **Mined Zinc** | 6,570 RMB/ton | 31.71 | 37.99 | | **Mined Silver** | 1.45 RMB/gram | 54.19 | 42.71 | | **Iron Concentrate** | 174.91 RMB/ton | 71.97 | 68.99 | - The increase in mineral product gross margin was primarily due to the year-on-year rise in mineral product sales prices (contributing **RMB 3.076 billion** to gross profit growth) and effective cost control (contributing **RMB 454 million** to gross profit growth)[135](index=135&type=chunk) - Net cash inflow from operating activities was **RMB 14.268 billion**, a year-on-year increase of **RMB 3.603 billion**, mainly due to higher gross profit from rising gold and copper prices and increased sales volume[156](index=156&type=chunk) [Analysis of Investment Status](index=58&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90-%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company in 2020 completed two significant equity investments, acquiring Guyana Goldfields and a majority stake in Tibet Julong Copper, substantially increasing gold and copper reserves, while also progressing major non-equity projects to lay the foundation for future capacity release - Acquired **100% equity in Guyana Goldfields** for approximately **CAD 323 million** in cash, whose Aurora Gold Mine is an operating mine that can rapidly increase the company's gold output[174](index=174&type=chunk) - Acquired **50.1% equity in Tibet Julong Copper** for **RMB 3.883 billion** in cash, a company that owns China's largest porphyry copper deposit, the Qulong Copper Mine[174](index=174&type=chunk) Progress of Major Non-Equity Investment Projects | Project Name | Project Amount | Investment in Reporting Period (RMB 100 million) | Cumulative Investment (RMB 100 million) | Progress and Benefits | | :--- | :--- | :--- | :--- | :--- | | **Zijin Bor Copper Technical Upgrade, Serbia** | 1.294 billion USD | 35.11 | 44.78 | Upon completion, annual copper output will be **120,000 tons**, and smelting copper output **180,000 tons** | | **Julong Copper** | 14.6 billion RMB | 23.55 | 96.24 | Qulong Phase I project expected to commence production by end of 2021, with average annual copper output of approximately **160,000 tons** | | **Xinjiang Zijin Nonferrous Zinc Smelting** | 1.497 billion RMB | 6.60 | 15.29 | Qualified zinc ingots produced in December 2020, planned annual output of **100,000 tons** | [Future Development and Risks](index=61&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90-%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E4%B8%8E%E9%A3%8E%E9%99%A9) The company plans a "three-step" strategy for the next decade, focusing on globalization, large-scale projects, and asset securitization, prioritizing gold and copper businesses to become a global leading mining group, while actively managing identified risks such as metal price volatility and cross-cultural management 2021 Major Mineral Product Output Plan | Product | 2021 Planned Output | | :--- | :--- | | **Mined Gold** | 53-56 tons | | **Mined Copper** | 54-58 10,000 tons | | **Mined Zinc (Lead)** | 45-48 10,000 tons | | **Mined Silver** | 240-300 tons | | **Iron Concentrate** | 350-380 10,000 tons | - The company faces major risks including: - **Metal Price Risk**: Operating performance is highly correlated with fluctuations in gold, copper, and other metal prices - **Safety and Environmental Risk**: Potential for safety and environmental accidents and natural disasters during mining production - **Cross-Cultural Management Risk**: Overseas projects face geopolitical, policy, regulatory, and community risks - **Financial Market Risk**: Changes in interest rates, exchange rates, and stock prices may lead to operational pressure - **International Rules and Standards Application Risk**: Changes in international rules and standards may affect production and operations[203](index=203&type=chunk) [Board of Directors' Report](index=68&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%8A%A5%E5%91%8A) The Board of Directors proposed a 2020 profit distribution plan, approved a restricted stock incentive plan, and successfully issued convertible bonds to support the company's global development - The Board of Directors proposed a 2020 profit distribution plan of **RMB 1.2 per 10 shares** (tax inclusive) in cash dividends, with an estimated total dividend of approximately **RMB 3.057 billion**, accounting for **46.97%** of net profit attributable to parent company shareholders[206](index=206&type=chunk)[208](index=208&type=chunk) - The company commenced a restricted stock incentive plan in November 2020, proposing to grant no more than **100 million A-shares**. The initial grant of **95.9806 million shares** to **686 incentive recipients** was completed in January 2021[211](index=211&type=chunk) - The company successfully issued **RMB 6 billion** A-share convertible corporate bonds ("Zijin Convertible Bonds") on November 3, 2020, with a conversion price of **RMB 7.01 per share**, providing financial support for the company's global development[216](index=216&type=chunk) [Independent Directors' Report](index=93&type=section&id=%E7%8B%AC%E7%AB%8B%E8%91%A3%E4%BA%8B%E6%8A%A5%E5%91%8A) The company's Board of Directors includes a significant proportion of independent directors with diverse expertise, who actively participate in governance and provide objective opinions on major matters, safeguarding the interests of the company and minority shareholders - The company's Seventh Board of Directors comprises **13 directors**, including **6 independent directors**, accounting for nearly half, which complies with governance requirements. Independent directors possess extensive professional knowledge in mining, finance, accounting, and law[275](index=275&type=chunk) - Independent directors actively participated in the Board and various special committees, providing objective and fair independent opinions on significant matters such as related party transactions, external guarantees, use of raised funds, and equity incentive plans, effectively safeguarding the interests of the company and minority shareholders[274](index=274&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk)[284](index=284&type=chunk) [Supervisory Board Report](index=97&type=section&id=%E7%9B%91%E4%BA%8B%E4%BC%9A%E6%8A%A5%E5%91%8A) In 2020, the Supervisory Board held nine meetings, reviewed 28 proposals, and oversaw the company's legal operations, financial status, major M&A, and related party transactions, ensuring compliance and safeguarding shareholder interests - In 2020, the Supervisory Board held **9 meetings**, reviewed **28 proposals**, and attended Board and relevant meetings, supervising the company's lawful operations, financial status, major M&A, and related party transactions[293](index=293&type=chunk) - The Supervisory Board believes that the company's decision-making procedures are legal and compliant, financial reports are true and fair, and internal control systems are sound, with no instances of directors or senior management harming the interests of the company or shareholders found[297](index=297&type=chunk) - The Supervisory Board continuously improved the "Five-in-One" supervision mechanism (Supervisory Board, Discipline Inspection Commission, Supervision, Audit, Internal Control), strengthened oversight of key areas such as infrastructure projects and material procurement, and promoted anti-corruption efforts to foster a clean and upright development environment[295](index=295&type=chunk) [Work on Actively Fulfilling Social Responsibilities](index=104&type=section&id=%E7%A7%AF%E6%9E%81%E5%B1%A5%E8%A1%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E7%9A%84%E5%B7%A5%E4%BD%9C%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities by establishing an ESG governance system, responding to the pandemic, prioritizing occupational health and safety, investing in environmental protection, and engaging in community development and targeted poverty alleviation [ESG Key Performance Construction](index=104&type=section&id=%E7%A7%AF%E6%9E%81%E5%B1%A5%E8%A1%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E7%9A%84%E5%B7%A5%E4%BD%9C%E6%83%85%E5%86%B5-ESG%E5%85%B3%E9%94%AE%E7%BB%A9%E6%95%88%E5%BB%BA%E8%AE%BE) The company established a top-down ESG governance system and issued eight policy statements, actively responding to the COVID-19 pandemic, strengthening occupational health and safety, investing in environmental protection, and promoting community development - The company established a top-down ESG governance system by the Board of Directors and issued **8 policy statements** covering ecological environmental protection, human resources, health and safety, business ethics, supply chain, whistleblowing management, water resources, and human rights protection[306](index=306&type=chunk) - Actively participated in the global fight against the pandemic, donating approximately **RMB 30 million** in funds and supplies, and co-building a "Huoyan" virus testing laboratory in Serbia[307](index=307&type=chunk) 2020 Water Resource Utilization Data | Indicator | Data | | :--- | :--- | | **Total Water Consumption** | 693.5447 million tons | | **New Water Usage** | 49.8149 million tons | | **Total Wastewater Discharge** | 41.9274 million tons | | **Water Recycling Rate** | 92.82% | [Targeted Poverty Alleviation Work](index=108&type=section&id=%E7%A7%AF%E6%9E%81%E5%B1%A5%E8%A1%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E7%9A%84%E5%B7%A5%E4%BD%9C%E6%83%85%E5%86%B5-%E7%B2%BE%E5%87%86%E6%89%B6%E8%B4%AB%E5%B7%A5%E4%BD%9C) The company actively responded to national calls by continuously promoting rural revitalization in poverty-stricken areas surrounding mining sites, investing approximately RMB 120 million in 2020 through various initiatives to improve local living and production conditions 2020 Targeted Poverty Alleviation Achievements Summary | Indicator | Quantity and Situation | | :--- | :--- | | **Funds Invested** | 117.9003 million RMB | | **Number of Registered Poor People Lifted Out of Poverty** | 722 persons | | **Investment in Industrial Poverty Alleviation Projects** | 3.145 million RMB | | **Investment in Ecological Protection Poverty Alleviation** | 20.15 million RMB | | **Investment in Education for Poverty Alleviation** | 3.1475 million RMB | - The company's subsidiary, Xinjiang Zijin Zinc Industry Co., Ltd., was awarded "National Advanced Collective for Poverty Alleviation" in 2020 for its outstanding contributions to the "One Hundred Enterprises Helping One Hundred Villages" initiative[314](index=314&type=chunk)[323](index=323&type=chunk) [Corporate Governance Report](index=122&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E6%8A%A5%E5%91%8A) The company is committed to high-level corporate governance, largely complying with the Hong Kong Corporate Governance Code, with a diverse Board of Directors and effective committees overseeing internal control and risk management - The company is committed to maintaining a high level of corporate governance and largely complied with the provisions of the Hong Kong "Corporate Governance Code" during the reporting period. The Board of Directors consists of **13 directors**, including **6 independent non-executive directors**, ensuring a diversified composition that meets regulatory requirements[349](index=349&type=chunk)[351](index=351&type=chunk) - The Board of Directors has established a Strategy and Sustainable Development (ESG) Committee, an Executive and Investment Committee, an Audit and Internal Control Committee, and a Nomination and Remuneration Committee, all of which effectively fulfilled their duties during the reporting period, supporting the Board's scientific decision-making[358](index=358&type=chunk) - The company has established a sound internal control and risk management system, with the Board of Directors, Supervisory Board, and management jointly responsible for the establishment, implementation, and supervision of internal controls, ensuring legal and compliant operations, asset security, and true and complete financial reporting[394](index=394&type=chunk)[395](index=395&type=chunk) [Audit Report](index=135&type=section&id=%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) Ernst & Young Hua Ming LLP issued an unqualified audit opinion on the company's 2020 financial statements, affirming their fair presentation in accordance with accounting standards, while highlighting non-current asset impairment and business combinations as key audit matters - Ernst & Young Hua Ming LLP issued a standard unqualified audit opinion on the company's 2020 financial statements, stating that the financial statements were prepared in all material respects in accordance with enterprise accounting standards, fairly reflecting the company's financial position, operating results, and cash flows[401](index=401&type=chunk) - The audit report identified two key audit matters: - **Impairment of Non-current Assets**: Involving the impairment assessment of fixed assets, construction in progress, intangible assets, and goodwill, due to their material amounts and the significant management estimates involved in their calculation - **Business Combinations Not Under Common Control**: Involving the acquisitions of Continental Gold, Julong Copper, and Guyana Goldfields, due to their material amounts and the complex valuation techniques required to determine the fair value of identifiable assets and liabilities[405](index=405&type=chunk)[407](index=407&type=chunk) [Financial Statements](index=138&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated financial statements, including the income statement, balance sheet, and cash flow statement, providing a detailed overview of its financial performance and position for the reporting period [Consolidated Income Statement](index=141&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In 2020, the company's operating revenue grew by 26.01% to RMB 171.501 billion, with operating profit increasing by 55.2% to RMB 11.240 billion, resulting in a net profit attributable to parent company shareholders of RMB 6.509 billion, up 51.93% 2020 Consolidated Income Statement Summary | Item | 2020 (RMB) | 2019 (RMB) | | :--- | :--- | :--- | | **Operating Revenue** | 171,501,338,490 | 136,097,978,018 | | **Operating Cost** | 151,070,863,441 | 120,582,627,749 | | **Operating Profit** | 11,239,742,530 | 7,242,074,162 | | **Total Profit** | 10,846,027,174 | 6,974,278,766 | | **Net Profit** | 8,458,038,953 | 5,060,904,684 | | **Net Profit Attributable to Parent Company Shareholders** | 6,508,553,913 | 4,283,957,365 | | **Basic Earnings Per Share** | 0.25 | 0.18 | [Consolidated Balance Sheet](index=138&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of year-end 2020, total assets increased by 47.23% to RMB 182.313 billion, driven by significant M&A and project investments, while total liabilities rose by 61.37% to RMB 107.717 billion, and total equity attributable to parent company shareholders grew by 10.46% to RMB 56.539 billion 2020 Year-End Consolidated Balance Sheet Summary | Item | December 31, 2020 (RMB) | December 31, 2019 (RMB) | | :--- | :--- | :--- | | **Total Current Assets** | 39,262,403,933 | 28,594,396,116 | | **Total Non-current Assets** | 143,050,846,470 | 95,236,551,103 | | **Total Assets** | **182,313,250,403** | **123,830,947,219** | | **Total Current Liabilities** | 47,035,701,043 | 33,362,656,029 | | **Total Non-current Liabilities** | 60,681,107,884 | 33,388,693,126 | | **Total Liabilities** | **107,716,808,927** | **66,751,349,155** | | **Total Equity Attributable to Parent Company Shareholders** | 56,538,554,204 | 51,185,965,026 | | **Total Shareholders' Equity** | **74,596,441,476** | **57,079,598,064** | [Consolidated Cash Flow Statement](index=145&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E8%A1%A8) In 2020, net cash inflow from operating activities increased by 33.78% to RMB 14.268 billion, while net cash outflow from investing activities significantly rose to RMB 29.174 billion due to major M&A and capital expenditures, with net cash inflow from financing activities at RMB 20.928 billion 2020 Consolidated Cash Flow Statement Summary | Item | 2020 (RMB) | 2019 (RMB) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 14,268,403,423 | 10,665,557,013 | | **Net Cash Flow from Investing Activities** | (29,174,439,163) | (14,102,830,060) | | **Net Cash Flow from Financing Activities** | 20,928,195,130 | (325,810,301) | | **Net Increase in Cash and Cash Equivalents** | 5,701,094,790 | (3,847,246,701) | | **Cash and Cash Equivalents at Year-End** | 11,786,686,240 | 6,085,591,450 |

Financial Performance - Net profit attributable to shareholders rose by 157.58% to CNY 3.42 billion, with a net profit margin of 7.18%[5] - Operating revenue grew by 31.36% to CNY 47.50 billion, driven by increased production and sales of major mineral products[5] - Basic earnings per share reached CNY 0.099, reflecting a 141.46% increase year-on-year[6] - The company's comprehensive gross profit margin for mining products increased to 57.25%, up from 44.67% in the same period last year[11] - The gross profit margin for gold ingots decreased to 48.74% in 2021 from 49.80% in 2020, while the gross profit margin for copper concentrate increased to 63.74% from 45.28%[12] - The company reported a significant increase in minority shareholders' profit by 216.22% to CNY 905.66 million in Q1 2021 from CNY 286.41 million in Q1 2020[19] - The company’s total comprehensive income for Q1 2021 was ¥2.84 billion, compared to a loss of ¥1.16 billion in Q1 2020[32] Cash Flow and Liquidity - Cash flow from operating activities surged by 125.63% to CNY 5.25 billion, indicating improved liquidity[5] - Cash and cash equivalents increased by 31.93% to CNY 15.77 billion at the end of the period from CNY 11.96 billion at the beginning[17] - The net cash flow from operating activities for Q1 2021 was ¥5,248,175,316, an increase of ¥2,922,142,161 or 125.63% compared to Q1 2020[22] - The company reported a net cash increase of CNY 3,471,516,728 in Q1 2021, compared to CNY 1,601,124,906 in Q1 2020, which is an increase of approximately 117%[39] - The total cash inflow from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of CNY 1,872,821,780 for the quarter[41] Assets and Liabilities - Total assets increased by 4.42% to CNY 190.38 billion compared to the end of the previous year[5] - Current liabilities rose to CNY 50.21 billion, compared to CNY 47.04 billion, marking an increase of about 4.6%[27] - Total liabilities increased to CNY 110.96 billion from CNY 107.72 billion, reflecting a growth of approximately 2.1%[28] - The company's equity attributable to shareholders rose to CNY 59.06 billion from CNY 56.54 billion, an increase of about 4.4%[28] - Non-current assets totaled CNY 62.00 billion, slightly down from CNY 62.58 billion, a decrease of approximately 0.9%[29] Expenses - Sales expenses decreased by 23.22% to CNY 117.07 million in Q1 2021 from CNY 152.47 million in Q1 2020[14] - Management expenses, including R&D, increased by 34.85% to CNY 1.40 billion in Q1 2021 from CNY 1.04 billion in Q1 2020, primarily due to new acquisitions[15] - Financial expenses rose by 6.73% to CNY 432.75 million in Q1 2021 from CNY 405.46 million in Q1 2020, mainly due to a decrease in foreign exchange gains[16] - Tax expenses increased by 93.22% to CNY 934.11 million in Q1 2021 from CNY 483.45 million in Q1 2020, reflecting improved profitability[19] Production and Operations - Gold production increased to 11,178 kg in 2021 from 10,551 kg in 2020, while copper production rose to 126,802 tons from 114,852 tons[12] - The company is progressing well with key projects, including the Timok copper-gold project in Serbia, expected to be operational by June 2021[24] - The company signed a binding framework agreement with the Papua New Guinea government regarding the Porgera project, aiming to resume operations in 2021[24] Shareholder Information - The number of shareholders reached 830,901, indicating a broadening of the shareholder base[7] - The company granted 95,980,600 restricted shares at a price of ¥4.95 per share to 686 individuals as part of its incentive plan[24]

Market Performance - The company's total market value increased from RMB 114.8 billion at the end of 2019 to RMB 224.9 billion by the end of 2020, reflecting a significant growth[8]. - The company’s market capitalization doubled to CNY 224.9 billion, ranking 12th among global mining companies[20]. - The company’s stock price increased significantly, with A-shares rising from CNY 4.75 to CNY 9.29 and H-shares from HKD 4 to HKD 8.78 in 2020[20]. - The company’s market capitalization exceeded 300 billion yuan, with A-share and H-share prices doubling from the beginning of the year[137]. Financial Performance - In 2020, the company's operating revenue reached CNY 171.5 billion, a year-on-year increase of 25.9%[17]. - The total profit for 2020 was CNY 10.8 billion, representing a growth of 54.3% compared to 2019[17]. - The net profit attributable to shareholders was CNY 6.5 billion, with a year-on-year increase of 38.9%[18]. - The company's total assets increased to CNY 182.3 billion, up 47.3% from the previous year[17]. - The company achieved a significant increase in resource reserves, with gold reserves at 2,333.64 tons (up 23.68%), copper at 6,205.58 million tons (up 8.39%), and silver at 2,923.55 tons (up 57.13%) by the end of 2020[146]. - The company reported a total of CNY 186.59 million in non-recurring gains and losses for 2020[100]. - The company achieved a sales revenue of 171.50 billion RMB, a year-on-year increase of 26.01% compared to 136.10 billion RMB in the previous year[152]. Resource Development - The company achieved a substantial increase in resource reserves, with gold reserves exceeding 2,300 tons, copper reserves over 62 million tons, and zinc (lead) reserves exceeding 10 million tons, alongside 2,900 tons of silver[9]. - The company has discovered substantial new resources, including 2.788 million tons of copper and 1,207 tons of gold through independent exploration[56]. - The company has confirmed new mineral reserves including 55 tons of gold, 105,000 tons of copper, and 157 tons of gold from various projects in China[58]. - The company has established China's largest gold mine and the world's first 10 million-ton copper bio-leaching and flotation system, enhancing its resource utilization and environmental technology[59]. Project Development - The company successfully completed major project constructions, including the full production of the Longnan Zijin 10,000 tons/day expansion project and the commencement of several gold increment projects in Guizhou and Shanxi[8]. - The company accelerated its internationalization process, successfully acquiring the Colombia Buriticá gold mine and the Guyana Aurora gold mine, which were delivered and put into production within the same year[9]. - The company plans to complete the construction of the Serbia Peji copper-gold mine by June 2021, with expected annual production of 91,400 tons of copper and 2.5 tons of gold[72]. - Major projects include the successful commissioning of the Colombia Buriticá gold mine and the resumption of production at the Guyana Aurora gold mine, contributing to increased gold capacity[144]. Innovation and Technology - The company emphasizes technology innovation, aiming to solve key technical issues and enhance its global competitiveness through increased investment in technology[12]. - The company has a strong innovation capability, focusing on geological exploration and comprehensive recovery of low-grade resources, enhancing its global competitiveness[124]. - The company’s innovation capabilities were strengthened with 74 R&D projects, including 2 national-level projects and 3 provincial-level projects[148]. - Research and development expenses increased by 22.29% to 582.51 million RMB, compared to 476.34 million RMB in the previous year[160]. Sustainability and Social Responsibility - The company established a reform office to promote the development of a global operational management system, aiming for significant progress in ESG (Environmental, Social, and Governance) framework within two years[9]. - The company has made significant contributions to social responsibility, with a total social contribution of CNY 21.4 billion in 2020[40]. - The company is committed to sustainable mining practices, developing technologies for ecological restoration and resource-efficient mining[59]. - The company has established a robust ESG framework, enhancing environmental protection and social responsibility, including a donation of approximately 30 million yuan for COVID-19 relief efforts[149]. Talent and Human Resources - The company plans to enhance international talent recruitment and training to address the talent shortage within 3-5 years[13]. - The company aims to maximize social and economic benefits through its unique mining engineering management model[110]. Strategic Goals - The company has set a five-year (2+3) plan and a development goal for 2030, aiming to become a high-tech, highly profitable international mining group[10]. - The company plans to enhance its resource advantages and ensure the achievement of strategic goals by seeking important investment and acquisition opportunities globally[11]. - The company is focused on acquiring mid to large-sized gold and copper mining companies to increase resource reserves and production capacity[63]. - The company is committed to sustainable development through resource exploration and acquisitions, aiming to meet long-term growth needs[111].

Financial Performance - The company's operating revenue for 2020 was CNY 171.50 billion, representing a 26.01% increase from CNY 136.10 billion in 2019[89]. - The net profit for 2020 reached CNY 8.46 billion, a 67.13% increase compared to CNY 5.06 billion in 2019[89]. - The basic earnings per share for 2020 was 0.25 CNY/share, representing a year-on-year growth of 38.89% from 0.18 CNY/share in the previous year[20]. - The company achieved a significant increase in gross profit due to higher sales volumes and prices, contributing 7.73 million CNY and 30.76 million CNY respectively to the gross profit growth[135]. - The total profit reached 10.846 billion yuan, up 55.51% compared to the previous year[122]. - The net profit attributable to shareholders was 6.509 billion yuan, reflecting a growth of 51.93% year-on-year[122]. - The company generated a net cash flow from operating activities of CNY 14.27 billion in 2020, a 33.78% increase from CNY 10.67 billion in 2019[89]. - The company reported a net profit of RMB 6,508,553,913 for the year 2020, with a proposed cash dividend of RMB 1.2 per share[195]. Market Value and Stock Performance - The company's total market value increased from RMB 114.8 billion at the end of 2019 to RMB 224.9 billion by the end of 2020, doubling in value[9]. - In 2020, the company's A-share stock price increased from 4.75 CNY/share to 9.29 CNY/share, and the H-share stock price rose from 4 HKD/share to 8.78 HKD/share, resulting in a total market value of 224.9 billion CNY, doubling year-on-year[20]. Resource Reserves and Production - The company reported a resource reserve of over 2,300 tons of gold, over 62 million tons of copper, over 10 million tons of zinc (lead), and 2,900 tons of silver, laying a solid foundation for sustainable development[9]. - The company produced 315,084 kg of gold, an increase of 4.58% from the previous year[122]. - Copper production reached 1,029,090 tons, marking an 18.12% increase year-on-year[124]. - Zinc production was 560,964 tons, a decrease of 6.91% compared to the previous year[125]. - The company’s resource reserves increased significantly, with gold reserves rising by 29.69% to 1,958.70 tons and silver reserves increasing by 57.13% to 2,923.55 tons[130]. Strategic Goals and Future Plans - The company’s strategic goal is to become a high-tech, highly profitable international mining group by 2030, with a five-year (2+3) plan in place[10]. - The company aims to enhance its mineral resource holdings and seek important investment and acquisition opportunities globally, focusing on low-valuation potential projects[10]. - The company plans to enhance resource reserves and production capacity through geological exploration and acquisitions of mid-to-large scale gold and copper mining companies during the 2023-2025 phase[60]. - The company aims to reach top 3-5 global rankings in key economic indicators such as resource reserves, production volume, sales revenue, and profit by 2030[60]. Technological Innovation and Management - The company’s innovative "Five Circles Unified" mining engineering management model has gained significant industry influence and achieved breakthrough technological results[9]. - The company is investing in technological upgrades and process optimization across its mining projects to enhance efficiency and output[60]. - The company emphasizes the importance of technological innovation and aims to achieve international leadership in mining technology and engineering[186]. Social Responsibility and ESG Initiatives - The company actively fulfills social responsibilities and has been recognized as a "National Civilized Unit" for six consecutive years[9]. - The company has committed to building an ESG system according to international standards, focusing on environmental protection, occupational health and safety, and social responsibility[1]. - The company has implemented COVID-19 prevention measures, ensuring no pandemic cases occurred in its domestic projects throughout the year, while also contributing approximately 30 million CNY to community pandemic control efforts[46]. - The company is committed to high-quality sustainable development and aims to improve carbon emission reduction and water resource utilization[192]. Acquisitions and Investments - The company successfully completed acquisitions, including the Colombia Buritica gold mine and the Guyana Aurora gold mine, which were delivered and put into production in the same year, achieving profitability[9]. - The company completed major equity acquisitions of Tibet Julong Copper and Guyana Aurora Gold Mine during the reporting period[108]. - The company acquired 100% equity of Guyana Goldfields for approximately CAD 323 million, enhancing its gold resource reserves[164]. - The company completed the acquisition of 50.1% equity in Jilong Copper for RMB 388.275 million, further strengthening its copper resource portfolio[164]. Financial Management and Risk Control - The company aims to optimize its financial and capital management capabilities while enhancing risk control measures to improve market value[1]. - The company has established a comprehensive risk management system to safeguard shareholder and investor interests, focusing on financial, market, and ESG-related risks[190]. - The company is facing risks related to metal prices, particularly gold and copper, which are significant profit sources, and plans to optimize asset quality and enhance production efficiency[192]. Environmental and Tax Compliance - The company’s resource tax burden has increased due to the implementation of the new Resource Tax Law, effective September 1, 2020[155]. - The environmental protection tax payable by the group's domestic and overseas subsidiaries in 2020 amounted to CNY 19.45 million, with actual payment of CNY 21.27 million[156]. - The resource tax payable was CNY 1,880.50 million, with actual payment of CNY 1,741.99 million[156]. Corporate Governance and Integrity - The company has maintained a good integrity status, with no major debts or court judgments outstanding[200]. - The company has not made any changes to accounting policies or estimates during the reporting period[199]. - The company did not face any risks of suspension or termination of its listing during the reporting period[200].

Financial Performance - The company achieved operating revenue of RMB 130.43 billion in the first nine months of 2020, representing a year-on-year increase of 28.34% compared to RMB 101.63 billion in the same period last year[6]. - The net profit attributable to shareholders of the listed company reached RMB 4.57 billion, up 52.12% from RMB 3.01 billion in the same period last year[6]. - The net cash flow from operating activities for the first nine months was RMB 9.90 billion, an increase of 63.52% compared to RMB 6.06 billion in the same period last year[6]. - The basic earnings per share for the period was RMB 0.180, reflecting a growth of 37.40% from RMB 0.131 in the same period last year[7]. - The company reported a net profit excluding non-recurring gains and losses of RMB 4.67 billion, which is a 69.46% increase from RMB 2.75 billion in the same period last year[7]. - The company reported a significant increase in research and development expenses, rising by 33.06% to ¥374.07 million from ¥281.14 million in the previous year[23]. - The total profit for the first nine months of 2020 was CNY 5,796,951,272, compared to CNY 3,575,375,950 in the same period of 2019, representing an increase of approximately 62.1%[40]. Assets and Liabilities - Total assets at the end of the reporting period amounted to RMB 170.91 billion, a 38.02% increase from RMB 123.83 billion at the end of the previous year[6]. - The net assets attributable to shareholders of the listed company were RMB 52.43 billion, showing a slight increase of 2.42% from RMB 51.19 billion at the end of the previous year[6]. - Current assets rose to CNY 34.43 billion, compared to CNY 28.59 billion in the previous year, reflecting a 20.5% increase[32]. - Non-current assets totaled CNY 136.48 billion, up from CNY 95.24 billion, marking a 43.3% growth[32]. - Total liabilities reached CNY 101.76 billion, compared to CNY 66.75 billion, indicating a 52.5% increase[33]. - Shareholders' equity rose to CNY 69.16 billion, up from CNY 57.08 billion, reflecting a growth of 21.1%[34]. Expenses - The company's overall gross margin for the first three quarters of 2020 was 47.27%, an increase of 3.7 percentage points compared to the same period last year[16]. - The total sales expenses for the first nine months of 2020 were CNY 475.88 million, a decrease of 49% year-on-year[17]. - Management expenses for the first nine months of 2020 were CNY 2.71 billion, down 2.09% from the previous year[18]. - Financial expenses increased by 22.68% year-on-year to CNY 1.42 billion, primarily due to foreign exchange rate fluctuations[19]. - The company reported a 49% decrease in sales expenses, attributed to the inclusion of transportation costs in operating costs[17]. Cash Flow - Cash inflow from operating activities for the first three quarters of 2020 was CNY 135,500,488,626, an increase from CNY 106,472,520,802 in the same period of 2019[44]. - Net cash flow from operating activities for Q3 2020 was CNY 9,904,944,976, compared to CNY 6,057,290,486 in Q3 2019[44]. - Cash outflow from investing activities totaled CNY 25,012,793,644 in Q3 2020, compared to CNY 8,764,718,520 in Q3 2019[46]. - Net cash flow from financing activities for Q3 2020 was CNY 14,962,953,112, a significant increase from a net outflow of CNY 2,491,614,950 in Q3 2019[46]. - The company reported a net increase in cash and cash equivalents of CNY 969,842,875 for Q3 2020, compared to a decrease of CNY 3,723,831,386 in Q3 2019[46]. Shareholder Information - The company recorded a total of 514,637 shareholders by the end of the reporting period[9]. - The company received government subsidies amounting to RMB 197.27 million during the first nine months, which were closely related to its normal business operations[8]. Investment and Growth - The construction in progress surged by 270.64% to CNY 21.78 billion, indicating significant investment in future projects[20]. - The company's goodwill increased by 228.36% to CNY 1.03 billion, reflecting potential acquisitions or investments[20]. - The company plans to issue convertible bonds, pending approval from the China Securities Regulatory Commission[28].

[Business Review](index=5&type=section&id=Business%20Review) [Company Business, Operating Model, and External Environment](index=6&type=section&id=Item%201.%20Description%20of%20the%20Company%27s%20Main%20Business%2C%20Operating%20Model%2C%20and%20Industry%20Situation%20During%20the%20Reporting%20Period) The company is a multinational mining group focused on global exploration and development of gold, copper, and zinc, extending to smelting and trading, utilizing a low-cost, high-tech model. Gold prices hit record highs, while copper and zinc recovered after initial pandemic impacts - The company's core business involves global exploration, development, smelting, and trading of gold, copper, and zinc minerals, with projects across 14 domestic provinces (regions) and 12 overseas countries[7](index=7&type=chunk) - During the reporting period, international gold prices significantly increased, with an average price of **$1,645.42/ounce**, up **25.94%** year-on-year; domestic gold prices averaged **369.98 yuan/gram**, up **28.48%** year-on-year[15](index=15&type=chunk) - Copper and zinc prices, impacted by the pandemic, bottomed out in Q1 and steadily recovered in Q2 due to China's economic recovery and tight supply in South America. The average LME copper price was **$5,500/ton**, and LME zinc price was **$2,047/ton** during the reporting period[17](index=17&type=chunk) - The company ranked **778th** in Forbes Global 2000 list, holding the **No. 1 position** among Chinese gold and non-ferrous metal enterprises[18](index=18&type=chunk) [Core Competitiveness Analysis](index=8&type=section&id=Item%203.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) Core competitiveness is driven by innovative development, encompassing independent technology, unique engineering management, strong resource base, international operations, low-cost efficiency, and modern governance - The company possesses resource reserves of over **2,000 tons of gold**, **62 million tons of copper**, and approximately **10 million tons of zinc (lead)**, with copper resources exceeding half of China's total domestic volume[23](index=23&type=chunk) - The company established the "Ore Flow Five-Ring Unification" engineering management model, implementing full-process control over geological exploration, mining, mineral processing, smelting, and environmental protection to achieve green and efficient development[22](index=22&type=chunk) - Overseas projects contribute significantly, with overseas resource reserves and production of major products approaching or exceeding half of the company's total, and gross profit contribution exceeding **one-third** of the group's total[24](index=24&type=chunk) - The company achieves low-cost operations by acquiring mineral resources at lower costs through independent exploration and counter-cyclical mergers and acquisitions, and by optimizing construction plans using its proprietary design platform[25](index=25&type=chunk) [Operating Performance Overview](index=10&type=section&id=Discussion%20and%20Analysis%20of%20Operating%20Conditions) H1 2020 saw significant growth with **RMB 83.142 billion** sales revenue (+**23.73%**) and **RMB 2.421 billion** net profit (+**30.64%**), primarily from strong gold and copper segments contributing over **75%** of gross profit Key Financial Indicators for H1 2020 | Indicator | H1 2020 (RMB billion) | Y-o-Y Growth (%) | | :--- | :--- | :--- | | **Sales Revenue** | 83.142 | +23.73 | | **Net Profit Attributable to Parent** | 2.421 | +30.64 | | **Total Assets (Period-end)** | 149.805 | +20.98 (vs. beginning of year) | - The gold segment achieved **20.24 tons** of mined gold, a year-on-year increase of **5.93%**, contributing **38.60%** to the group's gross profit[28](index=28&type=chunk)[29](index=29&type=chunk) - The copper segment achieved **230,700 tons** of mined copper, a year-on-year increase of **34.85%**, contributing **37.35%** to the group's gross profit[28](index=28&type=chunk)[31](index=31&type=chunk) - During the reporting period, the company completed the delivery of Continental Gold in Colombia and the acquisition of a **50.1%** equity stake in Julong Copper, further enhancing its resource reserves[39](index=39&type=chunk) - Overseas projects' contribution continued to increase, with mined gold production accounting for **59.95%** of the company's total and mined copper production accounting for **43.71%**[42](index=42&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Operating Results and Sales Analysis](index=14&type=section&id=1.%20Operating%20Results) Operating revenue reached **RMB 83.142 billion** (+**23.73%**), driven by increased mineral product sales volume (**62%**), higher prices (**18%**), and cost control (**20%**), with significant growth in gold sales Sales Performance of Major Products (H1 2020 vs H1 2019) | Product Name | H1 2020 Sales (RMB million) | H1 2019 Sales (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Mined Gold | 6,693.30 | 5,043.14 | +32.72 | | Refined, Processed, and Traded Gold | 52,295.32 | 38,126.76 | +37.16 | | Mined Copper (Total) | 7,642.74 | 5,930.65 | +28.87 | | Refined Copper | 11,458.10 | 9,491.33 | +20.72 | | Mined Zinc | 1,271.76 | 2,219.80 | -42.71 | | Refined Zinc | 1,543.66 | 2,045.68 | -24.54 | - The primary driver for gross profit growth was the year-on-year increase in mineral product sales volume, contributing **RMB 897 million** to gross profit growth, accounting for **62%**[48](index=48&type=chunk) [Cost and Gross Margin Analysis](index=15&type=section&id=2.%20Cost%20and%20Gross%20Margin%20Analysis) Overall gross margin slightly decreased to **10.98%** due to lower-margin segments, but core mining gross margin rose to **45.13%**, indicating enhanced profitability in key operations like mined gold and electrolytic copper Gross Margin and Unit Sales Cost Changes for Major Products (H1 2020) | Item | Gross Margin (%) | H1 2019 Gross Margin (%) | Unit Sales Cost | Y-o-Y Cost Change (%) | | :--- | :--- | :--- | :--- | :--- | | Mined Gold | 51.33 | 36.29 | 170.64 yuan/gram | -2.58 | | Mined Electrolytic Copper | 48.86 | 35.89 | 18,573 yuan/ton | -28.61 | | Mined Copper Concentrate | 43.35 | 50.19 | 18,092 yuan/ton | +6.78 | | Mined Zinc | 12.79 | 48.75 | 6,523 yuan/ton | +9.89 | | **Overall Gross Margin of Mining Enterprises** | **45.13** | **44.00** | - | - | | **Overall Gross Margin** | **10.98** | **11.24** | - | - | [Expense, Profit, and Cash Flow Analysis](index=15&type=section&id=3.%20Financial%20Data%20Analysis) Selling expenses decreased **47.51%**, financial expenses rose **7.91%**, and R&D surged **86.73%**. Operating cash inflow was **RMB 6.475 billion**, while investing outflow increased to **RMB 16.617 billion** due to M&A, and financing inflow was **RMB 13.219 billion** - Selling expenses decreased by **47.51%** year-on-year, primarily due to sales-related transportation costs being reclassified into operating costs[52](index=52&type=chunk) - Financial expenses increased by **7.91%** year-on-year, mainly due to higher interest expenditures[54](index=54&type=chunk) - Research and development expenses significantly increased by **86.73%** year-on-year, primarily due to increased R&D investment[61](index=61&type=chunk)[62](index=62&type=chunk) Changes in Net Cash Flow (H1 2020) | Cash Flow Activity | Amount (RMB billion) | Prior Period (RMB billion) | Reason for Change | | :--- | :--- | :--- | :--- | | **Net Inflow from Operating Activities** | 6.475 | 4.406 | Increased sales volume, rising gold prices | | **Net Outflow from Investing Activities** | (16.617) | (4.656) | Increased M&A and project construction expenditures | | **Net Inflow from Financing Activities** | 13.219 | (0.462) | Significant increase in financing scale | [Operating Plan and Outlook](index=20&type=section&id=Explanation%20of%20Operating%20Plan%20Progress) H2 outlook anticipates supportive gold prices, tight copper, and elastic zinc. The company will focus on epidemic control, production targets, especially gold capacity, and ensure copper/zinc profitability, while promoting convertible bonds and deepening reforms for global operations - Gold prices are expected to fluctuate widely in the second half, copper supply and demand will be in tight balance, and zinc fundamentals are improving[68](index=68&type=chunk) - The core operating strategy for the second half includes: focusing on epidemic prevention, achieving production targets, promoting convertible bond issuance, deepening reforms, continuous innovation, and fulfilling social responsibilities[69](index=69&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - Key project advancements: ensuring high-potential major mines such as Tibet Julong Copper, Timok Copper-Gold Mine, and Kamoa-Kakula Copper Mine in the Democratic Republic of Congo (DRC) commence production as scheduled in **2021**[70](index=70&type=chunk) [Risk Analysis](index=26&type=section&id=Potential%20Risks) Major risks include metal price volatility, financial market fluctuations, country/community risks for overseas projects, and inherent safety/environmental challenges, all managed by specific strategies - Key risk areas: metal price fluctuations, financial markets (interest rates, exchange rates), country and community relations, and safety and environmental protection[86](index=86&type=chunk) [Share Capital and Shareholder Information](index=26&type=section&id=Share%20Capital%20and%20Shareholder%20Information) [Shareholding Status of Shareholders](index=27&type=section&id=Top%20Ten%20Shareholders%27%20Shareholding%20Status) As of June 30, 2020, the company had **590,152** shareholders, with Minxi Xinghang (23.97%) and HKSCC Nominees (22.51%) as top holders. Chairman Chen Jinghe held **0.50%** of total shares Top Three Shareholders' Shareholding Status (as of June 30, 2020) | Shareholder Name | Share Class | Proportion of Total Share Capital (%) | | :--- | :--- | :--- | | Minxi Xinghang State-owned Assets Investment and Management Co., Ltd. | A-share | 23.97 | | Hong Kong Securities Clearing Company Nominees Limited | H-share | 22.51 | | China Securities Finance Co., Ltd. | A-share | 2.72 | - Chairman Mr. Chen Jinghe holds **112,050,000** A-shares and **15,000,000** H-shares in the company, totaling **0.50%** of the total share capital[102](index=102&type=chunk) [Other Matters](index=33&type=section&id=Other%20Matters) [Employees and Corporate Governance](index=34&type=section&id=Employee%20Situation%20of%20Parent%20Company%20and%20Major%20Subsidiaries) The company had **37,954** employees, with **49%** foreign staff, highlighting internationalization. Governance adhered to listing rules, no interim dividend was declared, and the 2019 profit distribution was completed - Total number of employees was **37,954**, of which **18,665** were foreign employees, accounting for approximately **49%**[105](index=105&type=chunk) - The lock-up period for the company's first employee stock ownership plan expired on June 8, 2020, and its duration has been extended to June 6, 2023[110](index=110&type=chunk) - The company did not declare an interim dividend for **2020**, but completed the **2019** profit distribution on July 17, 2020, distributing a cash dividend of **RMB 1** (tax inclusive) per **10** shares[154](index=154&type=chunk)[155](index=155&type=chunk) [Environmental, Social, and Governance (ESG)](index=36&type=section&id=Environmental%20Information%20Status) The company invested over **RMB 46 million** in poverty alleviation and donated for COVID-19. **21** key polluting subsidiaries strictly complied with environmental regulations, achieving zero accidents, with **RMB 361 million** invested in ecological projects - In the first half of **2020**, the company invested **RMB 46.2171 million** in targeted poverty alleviation funds[118](index=118&type=chunk)[119](index=119&type=chunk) - During the pandemic, the company cumulatively donated approximately **RMB 22.5 million** in funds and about **RMB 6.4873 million** in materials domestically and internationally[118](index=118&type=chunk) - **21** of the company's subsidiaries were listed as key polluting units, all strictly adhering to emission standards during the reporting period with no instances of exceeding limits[125](index=125&type=chunk)[126](index=126&type=chunk) - A total of **RMB 361 million** was invested in environmental and ecological engineering funds in the first half, including **RMB 53.9236 million** for ecological restoration[141](index=141&type=chunk) [Consolidated Financial Statements](index=53&type=section&id=Consolidated%20Balance%20Sheet) [Financial Statement Summary](index=54&type=section&id=Summary%20of%20Consolidated%20Financial%20Statements) As of June 30, 2020, the company's total assets reached **RMB 149.805 billion**, a **20.98%** increase from the beginning of the year; total liabilities were **RMB 90.339 billion**, with a debt-to-asset ratio of **60.3%**. Operating revenue was **RMB 83.142 billion**, up **23.73%** year-on-year; net profit was **RMB 3.091 billion**, up **38.04%** year-on-year. Operating cash flow was strong, with a net inflow of **RMB 6.475 billion**, a **46.95%** year-on-year increase Core Data from Consolidated Financial Statements | Indicator | June 30, 2020 (RMB billion) | December 31, 2019 (RMB billion) | | :--- | :--- | :--- | | **Total Assets** | 149.805 | 123.831 | | **Total Liabilities** | 90.339 | 66.751 | | **Equity Attributable to Parent** | 50.310 | 51.186 | | **Indicator** | **Jan-Jun 2020 (RMB billion)** | **Jan-Jun 2019 (RMB billion)** | | **Operating Revenue** | 83.142 | 67.198 | | **Net Profit** | 3.091 | 2.239 | | **Net Profit Attributable to Parent** | 2.421 | 1.853 | | **Net Cash Flow from Operating Activities** | 6.475 | 4.406 | [Notes to Financial Statements](index=69&type=section&id=Notes%20to%20Financial%20Statements) [Basis of Preparation and Significant Accounting Policies](index=72&type=section&id=Item%202.%20Basis%20of%20Preparation%20of%20Financial%20Statements) Financial statements are prepared on a going concern basis under Chinese accounting standards, despite net current liabilities, supported by strong cash flow and bank credit. Key policies include expected credit loss for financial instruments, weighted-average inventory, and units-of-production for mining asset depreciation/amortization - The financial statements are prepared on a going concern basis. Management believes that despite net current liabilities, the group has sufficient working capital and bank credit lines to sustain operations[185](index=185&type=chunk)[186](index=186&type=chunk) - Impairment of financial instruments is assessed using the expected credit loss model[204](index=204&type=chunk) - Depreciation of mine structures and buildings uses the straight-line or units-of-production method, while mining rights amortization uses the units-of-production method[216](index=216&type=chunk)[222](index=222&type=chunk) - Revenue is recognized when control over the related goods or services is transferred to the customer[232](index=232&type=chunk) [Changes in Consolidation Scope](index=179&type=section&id=Item%206.%20Changes%20in%20Consolidation%20Scope) The group's consolidation scope changed significantly, including the **CAD 1.33 billion** acquisition of **100%** of Continental Gold Inc. on March 5, 2020, and the establishment of new subsidiaries like Tibet Zijin Industrial Co., Ltd - On March 5, 2020, the company completed the acquisition of a **100%** equity stake in Continental Gold for approximately **CAD 1.33 billion** (equivalent to **RMB 6.91 billion**), and included it in the consolidated financial statements[506](index=506&type=chunk)[507](index=507&type=chunk) - Several new subsidiaries were established, including Tibet Zijin Industrial Co., Ltd. (registered capital of **RMB 2 billion**) and Xiamen Logistics (registered capital of **RMB 200 million**)[510](index=510&type=chunk)[511](index=511&type=chunk) [Segment Reporting](index=213&type=section&id=Item%2013.%20Other%20Significant%20Matters) The company operates **9** reporting segments. H1 2020 saw processing, smelting, and trading gold as the highest revenue segment (**RMB 52.295 billion**), while gold ingots (**RMB 1.465 billion**) and copper concentrate (**RMB 1.298 billion**) were top profit contributors Performance of Major Reporting Segments (H1 2020) | Reporting Segment | External Transaction Revenue (RMB billion) | Segment Profit (RMB billion) | | :--- | :--- | :--- | | Gold Ingots | 4.731 | 1.465 | | Processed, Smelted, and Traded Gold | 52.295 | 0.175 | | Gold Concentrate | 1.962 | 1.321 | | Copper Cathodes | 2.378 | 0.375 | | Refined Copper | 11.458 | 0.633 | | Copper Concentrate | 5.265 | 1.298 | | Other Concentrates | 2.646 | 0.619 |

[Company Information](index=2&type=section&id=Company%20Information) [Company Profile](index=5&type=section&id=Company%20Profile) Zijin Mining Group Co., Ltd. is a large-scale mining group engaged in the exploration, mining, smelting, and sales of gold, copper, zinc, and other metal mineral resources, listed in Hong Kong and Shanghai - The Group primarily engages in the exploration, mining, smelting, and sales of gold, copper, zinc, and other metal mineral resources, focusing on gold, copper, and zinc mineral development[14](index=14&type=chunk) - As of the end of 2019, the Group held **182 exploration rights** covering **3,260.44 square kilometers** and **233 mining rights** covering **982.59 square kilometers**[14](index=14&type=chunk) - The company completed an A-share public offering in 2019, increasing its total share capital to **25,377,259,946 shares**, with H-shares accounting for approximately **22.61%** and A-shares for approximately **77.39%**[13](index=13&type=chunk) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) During the reporting period, the company's operating revenue reached **RMB 136.1 billion**, with net profit attributable to parent company shareholders at **RMB 4.284 billion**, total assets increasing to **RMB 123.831 billion**, and equity attributable to parent company shareholders growing to **RMB 51.186 billion** 2019 Key Financial Data (RMB Yuan) | Indicator | 2019 | 2018 | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 136,097,978,018 | 105,994,246,123 | +28.40% | | **Operating Profit** | 7,242,074,162 | 6,181,371,066 | +17.16% | | **Total Profit** | 6,974,278,766 | 6,130,179,782 | +13.77% | | **Net Profit** | 5,060,904,684 | 4,682,676,553 | +8.08% | | **Net Profit Attributable to Parent Company Shareholders** | 4,283,957,365 | 4,093,773,630 | +4.65% | Assets and Liabilities as of End of 2019 (RMB Thousand Yuan) | Indicator | End of 2019 | End of 2018 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 123,830,947 | 112,879,303 | +9.70% | | **Total Liabilities** | 66,751,349 | 65,605,591 | +1.75% | | **Total Equity Attributable to Parent Company Shareholders** | 51,185,965 | 40,455,434 | +26.52% | [Chairman's Report](index=8&type=section&id=Chairman%27s%20Report) [Chairman's Statement](index=9&type=section&id=Chairman%27s%20Statement) Chairman Chen Jinghe reviewed the company's 2019 achievements, including asset scale, operating revenue, and market capitalization exceeding **RMB 100 billion**, significant growth in main product output, and successful acquisitions of world-class mineral resources - In 2019, the company's asset scale, operating revenue, and market capitalization all exceeded **RMB 100 billion**[20](index=20&type=chunk) - The acquisition of Serbia's Timok copper-gold mine and Colombia's Buriticá gold mine, two world-class super-large high-grade mineral assets, will significantly increase resource reserves, output, and profit[20](index=20&type=chunk) - The 2020-2022 three-year plan aims to double mineral copper output and achieve explosive performance growth while maintaining stable gold production[20](index=20&type=chunk) [Company Business Overview](index=10&type=section&id=Company%20Business%20Overview) The company is a large multinational mining group engaged in global exploration and development of gold, copper, and zinc mineral resources, with operations in **14 domestic provinces** and **11 overseas countries**, holding leading positions in domestic gold, copper, and zinc - The company engages in global exploration and development of gold, copper, and zinc mineral resources, with operations spanning **14 domestic provinces (regions)** and **11 overseas countries**[23](index=23&type=chunk) Company's Major Mineral Products Industry Position | Mineral Type | Resource Reserves | % of Domestic Total | Mineral Product Output | % of Domestic Total | | :--- | :--- | :--- | :--- | :--- | | **Gold** | 1,886.87 tons | 13.83% | 40.8 tons | 12.98% | | **Copper** | 57.2542 million tons | 50.03% | 369.9 thousand tons | 22.73% | | **Zinc** | 8.5583 million tons | 4.56% | 374.1 thousand tons | 13.33% | [Analysis of Core Competencies During the Reporting Period](index=13&type=section&id=Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies include independent technological innovation, the unique "Ore Flow Five-in-One" engineering management model, robust resource base, international operation advantages, leading low-cost operations, and modern corporate governance - The company's unique "Ore Flow Five-in-One" engineering management model integrates geological exploration, mining, mineral processing, smelting, and environmental protection for optimized economic and social benefits[39](index=39&type=chunk) - The company possesses a strong resource base, with gold resources of approximately **2,130 tons**, copper resources of approximately **57.25 million tons** (about half of the domestic total), and zinc (lead) resources of approximately **9.74 million tons**[40](index=40&type=chunk) - The company's internationalization progress is significant, with overseas gold, copper, and zinc resource reserves and output exceeding or approaching half of the company's total, contributing over **one-third** of the Group's gross profit[41](index=41&type=chunk) [Discussion and Analysis of Operations](index=15&type=section&id=Discussion%20and%20Analysis%20of%20Operations) In 2019, the company achieved sales revenue of **RMB 136.098 billion** (+28.40% YoY) and net profit attributable to parent company of **RMB 4.284 billion** (+4.65% YoY), with asset scale, revenue, and market capitalization all exceeding **RMB 100 billion** 2019 Key Financial Indicators | Indicator | Amount (RMB) | YoY Growth | | :--- | :--- | :--- | | **Sales Revenue** | 136.098 billion yuan | 28.40% | | **Net Profit Attributable to Parent** | 4.284 billion yuan | 4.65% | | **Total Assets** | 123.831 billion yuan | 9.70% | | **Net Assets Attributable to Parent** | 51.186 billion yuan | 26.52% | Comparison of Major Mineral Product Output 2017-2019 | Product | 2019 | 2018 | 2019 YoY Growth | | :--- | :--- | :--- | :--- | | **Mined Gold (tons)** | 40.83 | 36.50 | +11.86% | | **Mined Copper (ten thousand tons)** | 36.99 | 24.86 | +48.79% | | **Mined Zinc (ten thousand tons)** | 37.41 | 27.80 | +34.57% | - Overseas projects made significant contributions, with overseas mined gold, copper, and zinc output accounting for **62.53%**, **41.44%**, and **52.46%** of the company's total, respectively; resource reserves accounted for **69%**, **82%**, and **33%**, respectively; and gross profit contribution exceeded **one-third** of the Group's total[70](index=70&type=chunk) - The successful completion of an **RMB 8 billion** A-share public offering significantly optimized the financial structure, reducing the asset-liability ratio to **53.91%**[71](index=71&type=chunk) [Discussion and Analysis of the Company's Future Development](index=22&type=section&id=Discussion%20and%20Analysis%20of%20the%20Company%27s%20Future%20Development) The company forecasts continued gold price increases and a positive medium-to-long-term outlook for copper prices, outlining a 2020-2022 strategy for "deepening reform, leapfrog growth, and sustainable development" to achieve significant production increases and become a high-tech, efficient, large-scale international mining group 2020-2022 Major Product Output Plan | Product Name | 2019 (Actual) | 2020 (Plan) | 2021 (Plan) | 2022 (Plan) | CAGR | | :--- | :--- | :--- | :--- | :--- | :--- | | **Mined Gold (tons)** | 40.8 | 44 | 42-47 | 49-54 | 6.3%-9.8% | | **Mined Copper (ten thousand tons)** | 37 | 41 | 50-56 | 67-74 | 21.9%-26.0% | | **Mined Zinc (ten thousand tons)** | 37 | 40 | 37-41 | 38-42 | 0.9%-4.3% | - **2020** has been designated as the company's "Project Construction Year," with the core task of transforming resource advantages into product and efficiency advantages and accelerating the commissioning and full production of major projects[82](index=82&type=chunk) - The company faces key risks including metal price risk, financial market risk, country and community risk, and safety and environmental risk[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) [Analysis of Main Business](index=26&type=section&id=Analysis%20of%20Main%20Business) In 2019, the Group's sales revenue reached **RMB 136.1 billion** (+28.4% YoY), with all mineral and smelting products showing increased production and sales volumes, despite falling prices for mined copper and zinc 2019 Sales by Product (Unit: RMB Ten Thousand Yuan) | Product Name | Sales Amount | 2018 Sales Amount | Change | | :--- | :--- | :--- | :--- | | **Mined Gold** | 1,163,447 | 910,774 | +27.74% | | **Smelted & Processed Gold** | 8,082,363 | 5,559,990 | +45.37% | | **Mined Copper (Total)** | 1,314,330 | 881,965 | +49.02% | | **Smelted Copper** | 2,089,846 | 1,896,420 | +10.20% | | **Mined Zinc** | 388,880 | 401,176 | -3.07% | | **Smelted Zinc** | 403,871 | 368,919 | +9.47% | 2019 Gross Profit Margin by Product | Product Name | 2019 GPM (%) | 2018 GPM (%) | Change | | :--- | :--- | :--- | :--- | | **Mined Gold** | 41.82 | 31.37 | Increase 10.45 percentage points | | **Mined Copper Concentrate** | 45.54 | 51.67 | Decrease 6.13 percentage points | | **Mined Zinc** | 37.99 | 65.34 | Decrease 27.35 percentage points | | **Overall Gross Profit Margin** | 11.40 | 12.59 | Decrease 1.19 percentage points | | **Overall Gross Profit Margin (Excluding Smelting)** | 42.63 | 46.31 | Decrease 3.68 percentage points | - Overseas business revenue increased by **129.59%** year-on-year, reaching **RMB 30.957 billion**, with a gross profit margin of **22.79%**[102](index=102&type=chunk) [Analysis of Expenses, R&D, Cash Flow, and Assets & Liabilities](index=32&type=section&id=Analysis%20of%20Expenses%2C%20R%26D%2C%20Cash%20Flow%2C%20and%20Assets%20%26%20Liabilities) Sales expenses decreased due to accounting adjustments, while management and R&D expenses rose; operating cash flow remained stable at **RMB 10.666 billion**, with significant net cash outflows from investing activities for project construction, and the capital-to-debt ratio improved from **1.388 to 1.169** - Sales expenses decreased by **35.27%** year-on-year, mainly due to reclassification of some transportation costs to operating costs; management expenses increased by **28.60%** year-on-year, primarily due to new acquisitions and increased R&D investment[110](index=110&type=chunk) - Net cash flow from operating activities was **RMB 10.666 billion**, an increase of **4.23%** year-on-year; net cash outflow from investing activities was **RMB 14.103 billion**; net cash outflow from financing activities was **RMB 326 million**, compared to a net inflow of **RMB 7.655 billion** in the previous year[114](index=114&type=chunk) - The capital-to-debt ratio (total liabilities/total equity) decreased from **1.388** at the end of 2018 to **1.169** at the end of 2019, indicating a reduction in financial leverage[115](index=115&type=chunk) [Analysis of Industry Operating Information](index=36&type=section&id=Analysis%20of%20Industry%20Operating%20Information) During the reporting period, national policies on natural resource property rights and mine ecological restoration were introduced, and VAT rate reductions benefited the company, which disclosed detailed operating information for its major mines, including significant reserves and high grades for overseas assets like Porgera Gold Mine and Kamoa Copper Mine - Effective April 1, 2019, VAT rates were reduced from **16% to 13%** and from **10% to 9%**, which to some extent reduced the tax burden on enterprises[123](index=123&type=chunk) Resource Reserves of Key Mines | Mine Name | Main Product | Total Retained Resources (Metal Content) | Grade | | :--- | :--- | :--- | :--- | | **Porgera Gold Mine** | Gold | 314,311 kilograms | 4.22 g/ton | | **Zijinshan Gold-Copper Mine** | Gold/Copper | 8,237 kilograms / 1,609,180 tons | 0.35 g/ton / 0.51% | | **Kolwezi Copper Mine** | Copper | 1,269,594 tons | 4.2% | | **Kamoa Copper Mine** | Copper | 43,690,000 tons | 2.53% | | **Timok Copper-Gold Mine (Lower Zone)** | Copper/Gold | 14,300,000 tons / 298,593 kilograms | 0.86% / 0.18 g/ton | [Profiles of Directors, Supervisors, and Senior Management](index=39&type=section&id=Profiles%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) [Profiles of Directors, Supervisors, and Senior Management](index=39&type=section&id=Profiles%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section details the backgrounds, professional qualifications, and resumes of the company's executive directors, non-executive directors, independent non-executive directors, supervisors, and other senior management, noting the leadership team's reshuffle at the end of 2019 - Mr. Chen Jinghe, as the company's founder, core leader, and Chairman, is the primary discoverer and organizer of the Zijinshan Gold-Copper Mine's development[130](index=130&type=chunk) - In December 2019, the company completed the re-election of its Board of Directors, Supervisory Committee, and management team, with Mr. Zou Laichang appointed as President, Mr. Xie Xionghui as Executive Director, and four new independent non-executive directors appointed[4](index=4&type=chunk)[201](index=201&type=chunk) [Board of Directors' Report](index=44&type=section&id=Board%20of%20Directors%27%20Report) [Analysis of Investment Status](index=45&type=section&id=Analysis%20of%20Investment%20Status) In 2019, the company actively pursued its "internationalization, large-scale projects, and asset securitization" strategy, completing significant equity investments including the acquisition of Timok copper-gold mine and Continental Gold Inc., substantially enhancing future gold and copper production capacity and resource base - Completed the acquisition of the remaining equity in the lower zone of Serbia's Timok copper-gold mine, achieving **100% control** over both upper and lower zones, adding **7.72 million tons** of copper resources and **161 tons** of associated gold[144](index=144&type=chunk) - Acquired **100%** equity of Continental Gold Inc. for approximately **CAD 1.33 billion**, gaining its core asset, the world-class high-grade Buriticá gold mine project, which holds **353 tons** of gold resources with an average grade of **9.3 g/ton**[144](index=144&type=chunk)[145](index=145&type=chunk) - Increased equity in Ivanhoe Mines to approximately **13.83%** through exercising anti-dilution rights and market purchases[146](index=146&type=chunk) [Fundraising and Dividend Distribution](index=49&type=section&id=Fundraising%20and%20Dividend%20Distribution) In November 2019, the company completed an A-share public offering, raising a net **RMB 7.847 billion** primarily for the acquisition of Nevsun Resources Ltd., and proposed a 2019 dividend of **RMB 1.0 per 10 shares**, totaling approximately **RMB 2.538 billion** - In November 2019, the company completed an A-share public offering, raising a total of approximately **RMB 8 billion** and a net of **RMB 7.847 billion**, primarily for the acquisition of **100%** equity in Nevsun Resources Ltd[154](index=154&type=chunk)[157](index=157&type=chunk) Dividend Distribution for the Past Three Years (RMB Yuan) | Dividend Year | Dividend per 10 Shares (incl. tax) | Total Cash Dividend | % of Net Profit Attributable to Parent | | :--- | :--- | :--- | :--- | | **2019** | 1.0 | 2,537,725,995 | 59.24% | | **2018** | 1.0 | 2,303,121,889 | 56.26% | | **2017** | 0.9 | 2,072,809,700 | 59.09% | [Analysis of Major Controlled and Invested Companies](index=48&type=section&id=Analysis%20of%20Major%20Controlled%20and%20Invested%20Companies) This section presents operating data for the company's major controlled and invested companies, categorized by gold, copper, zinc, and smelting segments, highlighting significant profit contributions from core mines and the strategic importance of smelting enterprises 2019 Operating Performance of Selected Core Subsidiaries (Unit: RMB Ten Thousand Yuan) | Company Name | Segment | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | | **Barrick (New Guinea) Limited (Equity)** | Gold | 279,597 | 52,674 | | **Xinjiang Ashele Copper Co., Ltd.** | Copper | 182,703 | 65,662 | | **Heilongjiang Duobaoshan Copper Co., Ltd.** | Copper | 302,077 | 60,817 | | **Musonoi Mining SARL** | Copper | 301,583 | 45,460 | | **Xinjiang Zijin Zinc Industry Co., Ltd.** | Zinc | 105,584 | 37,723 | | **Zijin Copper Co., Ltd.** | Smelting | 1,761,089 | 35,372 | [Supervisory Committee Report](index=71&type=section&id=Supervisory%20Committee%20Report) [Work of the Supervisory Committee and Independent Opinions](index=72&type=section&id=Work%20of%20the%20Supervisory%20Committee%20and%20Independent%20Opinions) In 2019, the Supervisory Committee independently performed its oversight duties, holding **8 meetings** and reviewing **22 proposals**, concluding that the company operated compliantly, with legal decision-making processes and fair financial reporting, finding no actions detrimental to shareholders or the company - The Supervisory Committee issued an independent opinion on the company's lawful operations, affirming that the company's decision-making procedures were legal and compliant, directors and senior management diligently performed their duties, and no violations were found[221](index=221&type=chunk) - The Supervisory Committee reviewed the company's 2019 annual financial report and internal control evaluation report, deeming them true, fair, and complete reflections of the company's financial position and operating results[221](index=221&type=chunk) [Work on Actively Fulfilling Social Responsibilities](index=76&type=section&id=Work%20on%20Actively%20Fulfilling%20Social%20Responsibilities) [Targeted Poverty Alleviation Efforts](index=77&type=section&id=Targeted%20Poverty%20Alleviation%20Efforts) The company actively engaged in targeted poverty alleviation around mining areas, investing over **RMB 91.4 million** in 2019 through industrial, employment, and educational initiatives, significantly improving living conditions in impoverished regions and earning recognition as a "Top Ten Charitable Enterprise in China" 2019 Targeted Poverty Alleviation Achievements (Unit: RMB Ten Thousand Yuan) | Item | Investment Amount/Quantity | | :--- | :--- | | **Total Investment** | 9,140.7 | | **Number of Registered Poor People Helped to Escape Poverty** | 1,057 people | | **Investment in Industrial Poverty Alleviation Projects** | 796 | | **Investment in Supporting Poor Students** | 77.5 | | **Investment in Improving Educational Resources in Poor Areas** | 332.8 | | **Investment in Designated Poverty Alleviation Work** | 2,275.6 | [Environmental Information](index=80&type=section&id=Environmental%20Information) The company strictly adheres to environmental regulations, promoting green mining; in 2019, **20 domestic subsidiaries** were designated key pollutant emitters, all achieving compliant management and discharge standards for wastewater, exhaust gas, and noise, with **RMB 725 million** invested in environmental projects - In 2019, **20** of the company's domestic subsidiaries were designated as key pollutant emitters, all strictly adhering to national and local discharge standards and achieving compliant management[238](index=238&type=chunk)[239](index=239&type=chunk) - A total of **RMB 725 million** was invested in environmental and ecological projects throughout the year, including **RMB 94.8105 million** for ecological restoration, restoring over **5.2848 million square meters** of vegetation[252](index=252&type=chunk) - **Nine** of the company's mining enterprises were recognized as national "Green Mines," and **three** smelting enterprises were recognized as provincial "Green Factories"[252](index=252&type=chunk) [Corporate Governance Report](index=90&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Report](index=90&type=section&id=Corporate%20Governance%20Report) The company maintains high corporate governance standards, largely complying with the Hong Kong Corporate Governance Code; its **12-member Board of Directors**, including **five independent non-executive directors**, ensures diverse and compliant composition, with four specialized committees overseeing strategic, executive, audit, and nomination/remuneration functions - The company's Board of Directors consists of **12 directors**, including **5 independent non-executive directors**, accounting for over **one-third** and complying with listing rules[263](index=263&type=chunk) - The Board has established a Strategy Committee, Executive and Investment Committee, Audit and Internal Control Committee, and Nomination and Remuneration Committee, all effectively fulfilling their duties during the reporting period[269](index=269&type=chunk)[296](index=296&type=chunk) - During the reporting period, the company revised and improved its Articles of Association, Rules of Procedure for General Meetings, and working rules for various special committees in accordance with the latest domestic and international laws and regulations[271](index=271&type=chunk) [Audit Report](index=101&type=section&id=Audit%20Report) [Audit Report](index=101&type=section&id=Audit%20Report) Ernst & Young Hua Ming LLP issued a standard unqualified audit opinion on the company's 2019 financial statements, affirming their fair presentation in all material respects, with key audit matters focusing on impairment assessment of non-current assets (fixed assets, construction in progress, intangible assets, and goodwill) - Ernst & Young Hua Ming LLP issued a standard unqualified audit opinion on the company's 2019 annual financial statements[306](index=306&type=chunk) - A key audit matter was "impairment of non-current assets," involving impairment testing of fixed assets, construction in progress, intangible assets, and goodwill, as their calculation requires significant judgment and estimation of key assumptions such as mine life, sales prices, operating costs, and discount rates[308](index=308&type=chunk)[310](index=310&type=chunk) [Financial Statements and Notes](index=105&type=section&id=Financial%20Statements%20and%20Notes) [Consolidated Financial Statements](index=105&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present the company's overall financial position for 2019, with total assets of **RMB 123.83 billion**, total liabilities of **RMB 66.75 billion**, and net profit attributable to parent company shareholders of **RMB 4.28 billion** Consolidated Balance Sheet Summary (December 31, 2019) | Item | Amount (RMB Yuan) | | :--- | :--- | | **Total Current Assets** | 28,594,396,116 | | **Total Non-Current Assets** | 95,236,551,103 | | **Total Assets** | 123,830,947,219 | | **Total Current Liabilities** | 33,362,656,029 | | **Total Non-Current Liabilities** | 33,388,693,126 | | **Total Liabilities** | 66,751,349,155 | | **Total Equity Attributable to Parent Company Shareholders** | 51,185,965,026 | | **Total Shareholders' Equity** | 57,079,598,064 | Consolidated Income Statement Summary (2019) | Item | Amount (RMB Yuan) | | :--- | :--- | | **Operating Revenue** | 136,097,978,018 | | **Operating Profit** | 7,242,074,162 | | **Total Profit** | 6,974,278,766 | | **Net Profit** | 5,060,904,684 | | **Net Profit Attributable to Parent Company Shareholders** | 4,283,957,365 | Consolidated Cash Flow Statement Summary (2019) | Item | Amount (RMB Yuan) | | :--- | :--- | | **Net Cash Flow from Operating Activities** | 10,665,557,013 | | **Net Cash Flow from Investing Activities** | (14,102,830,060) | | **Net Cash Flow from Financing Activities** | (325,810,301) | | **Net Decrease in Cash and Cash Equivalents** | (3,847,246,701) | [Notes to Financial Statements](index=118&type=section&id=Notes%20to%20Financial%20Statements) The notes detail the company's accounting policies and estimates, providing explanations for significant items in the consolidated and company financial statements, including segment reporting, related party transactions, financial instrument risks, and commitments - The company adopted new lease accounting standards effective January 1, 2019, measuring lease liabilities for operating leases prior to the initial adoption date based on the present value of remaining lease payments and adjusting right-of-use assets[418](index=418&type=chunk) 2019 Segment Performance Summary (RMB Yuan) | Segment | External Sales Revenue | Segment Profit | | :--- | :--- | :--- | | **Gold Ingots** | 8,452,851,423 | 1,301,400,545 | | **Processed, Smelted & Traded Gold** | 80,823,631,985 | 13,956,436 | | **Cathode Copper** | 3,774,847,667 | 3,892,312,658 | | **Smelted Copper** | 20,898,462,361 | 372,805,566 | | **Copper Concentrate** | 9,368,451,302 | 1,191,892,772 | | **Other Concentrates** | 7,044,968,521 | 1,879,886,940 | - The company faces key financial risks including credit risk, liquidity risk, and market risk (exchange rate, interest rate, commodity price risk), and employs corresponding risk management strategies, including the use of derivative financial instruments for hedging[738](index=738&type=chunk)

Financial Performance - Operating revenue rose by 24.52% to CNY 36.16 billion year-on-year[4] - Net profit attributable to shareholders increased by 18.93% to CNY 1.04 billion[4] - Basic earnings per share increased by 7.89% to CNY 0.041[4] - The net profit attributable to shareholders reached 1.040 billion yuan, up 18.93% from 0.874 billion yuan in Q1 2019[9] - Operating profit for Q1 2020 was CNY 1,878,643,296, compared to CNY 1,497,254,443 in Q1 2019, indicating a growth of 25.5%[31] - Net profit for Q1 2020 was CNY 1,809,870,169, an increase from CNY 1,430,265,783 in Q1 2019, representing a growth of 26.5%[31] - The company reported a significant increase in investment income to 772,924,375 CNY from 333,166,277 CNY in Q1 2019[33] Cash Flow - Net cash flow from operating activities surged by 81.02% to CNY 2.33 billion[4] - Operating cash flow increased by 81.02% to 2.326 billion yuan from 1.285 billion yuan in the previous year[9] - Cash inflow from operating activities was 37,945,797,834 CNY, up from 30,697,087,270 CNY in the previous year[35] - Net cash flow from operating activities was CNY 1,273,263,527, significantly higher than CNY 476,309,995 in the same period last year, indicating a growth of about 167%[38] - Cash inflow from financing activities amounted to CNY 3,051,315,500, down from CNY 3,370,279,441 in Q1 2019, indicating a decrease of about 9.5%[39] - Net cash flow from financing activities was CNY 1,234,907,149, recovering from a negative cash flow of CNY 1,275,626,555 in the previous year[39] Assets and Liabilities - Total assets increased by 12.80% to CNY 139.68 billion compared to the end of the previous year[4] - Total liabilities amounted to ¥81.10 billion, up from ¥66.75 billion, which is an increase of approximately 21.5%[28] - Long-term payables increased by 104.09% to ¥2,451,950,559, primarily due to newly acquired companies[17][18] - Deferred tax liabilities rose by 86.49% to ¥5,012,602,458, also related to new acquisitions[17][18] - Total current assets amounted to CNY 13,334,815,160, down from CNY 13,801,433,844, a decrease of 3.4%[30] Production and Resources - The production of mineral gold was 10.55 tons, an increase of 8.82% year-on-year, while copper production reached 114.9 thousand tons, up 36.55% year-on-year[9] - The company completed the acquisition of the Buriticá gold mine in Colombia, adding 243 tons of high-grade gold resources, bringing total gold resources to 2,130 tons[9] - The company anticipates maintaining gold production levels in 2020 despite the suspension of operations at the Porgera mine[24] Shareholder Information - The number of shareholders at the end of the reporting period was 656,754[6] - The largest shareholder, Minxi Xinghang State-owned Assets Investment Management Co., Ltd., holds 23.97% of shares[6] Expenses - Sales expenses decreased by 49.75% to 152.47 million yuan from 303.41 million yuan in the same period last year[14] - Financial expenses decreased by 26.25% to 405.46 million yuan from 549.80 million yuan in Q1 2019, mainly due to exchange gains compared to losses in the previous year[16] - Research and development expenses for Q1 2020 were CNY 112,917,998, significantly higher than CNY 51,920,413 in Q1 2019, indicating a growth of 117.5%[31] Comprehensive Income - The total comprehensive income for Q1 2020 was 793,236,573 CNY, compared to 355,335,931 CNY in Q1 2019, indicating significant growth[34] - The company reported a decrease in other comprehensive income, with a loss of ¥3.02 billion compared to a loss of ¥473.93 million in the previous year[28]

Financial Performance - The company's operating revenue for 2019 was CNY 136.1 billion, an increase of 28.40% compared to CNY 106.0 billion in 2018[17]. - Net profit attributable to shareholders for 2019 was CNY 4.28 billion, reflecting a growth of 4.65% from CNY 4.09 billion in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 4.00 billion, up 30.56% from CNY 3.06 billion in 2018[17]. - The total assets at the end of 2019 reached CNY 123.83 billion, a 9.70% increase from CNY 112.88 billion at the end of 2018[17]. - The net assets attributable to shareholders increased by 26.52% to CNY 51.19 billion from CNY 40.46 billion in 2018[17]. - The company generated a net cash flow from operating activities of CNY 10.67 billion, which is a 4.23% increase compared to CNY 10.23 billion in 2018[17]. - Basic earnings per share for 2019 remained at CNY 0.18, while diluted earnings per share also stood at CNY 0.18[18]. - The weighted average return on equity was 11.38%, slightly down from 11.70% in 2018[18]. - The company reported a significant increase in cash flow, particularly in the fourth quarter, with net cash flow from operating activities reaching CNY 4.61 billion[20]. - The company achieved a sales revenue of 136.098 billion yuan, representing a year-on-year growth of 28.40% compared to 105.994 billion yuan in the previous year[57]. - The net profit attributable to shareholders reached 4.284 billion yuan, an increase of 4.65% from 4.094 billion yuan in the previous year[57]. Production and Resource Management - The company achieved over 1,000 billion CNY in total assets, operating income, and market capitalization, with significant increases in gold, copper, and zinc production[5]. - The company completed the acquisition of the Timok copper-gold mine in Serbia and initiated the acquisition of the Buritica gold project in Colombia, enhancing resource reserves and production capacity[5]. - The company aims to double copper production by 2022, with key projects like the Timok copper mine and the Kamoa-Kakula copper mine expected to start production by mid-2021 and reach full capacity by 2023[6]. - The company plans to implement significant upgrades to its gold production facilities, including projects in Gansu, Shanxi, and Guizhou provinces[6]. - The company ranks first among Chinese non-ferrous metal enterprises and first globally in gold production, with gold resources amounting to approximately 1,886.87 tons, representing 13.83% of the national total[39]. - In 2019, the company produced 40.8 tons of gold, accounting for 12.98% of the national gold output of 314.37 tons[40]. - The company's copper resources are approximately 5,725.42 million tons, which is about 50.03% of the national total of 11,443.49 million tons[39]. - The company produced 36.99 million tons of copper in 2019, representing 22.73% of the national copper output of 162.78 million tons[40]. - The company achieved a significant increase in gold and copper resource reserves through exploration and acquisitions[69]. Strategic Initiatives and Future Outlook - The company plans to continue expanding its market presence and invest in new technologies and products to drive future growth[1]. - The company is committed to a new management system that aligns with its international development strategy over the next 2-3 years[6]. - The company emphasizes the importance of technological innovation and effective management in maximizing economic and social benefits[6]. - The company is focused on accelerating the construction of major projects, with the goal of achieving 30% of design capacity at the Timok copper-gold mine and Kamoa-Kakula copper mine by 2021[126]. - The company aims to achieve a compound annual growth rate (CAGR) of 21.9% to 26.0% for copper production from 2020 to 2022[121]. - The company plans to invest approximately RMB 6.575 billion in project construction (including technological upgrades) and RMB 6.8 billion in mergers and acquisitions in 2020[133]. - The company is pursuing both mergers and acquisitions and independent exploration to increase its valuable mineral resources, particularly gold and copper[128]. - The company anticipates that gold will maintain its upward price trend due to ongoing global uncertainties and increased market demand for safe-haven assets[119]. Environmental and Social Responsibility - The company is focusing on sustainable development, aiming for zero fatalities, occupational diseases, and environmental accidents[6]. - The company has established 9 national-level "green mines" and 2 national-level "green factories," enhancing its commitment to environmental sustainability[74]. - The company has implemented strict environmental protection measures, achieving compliance with national and local pollutant discharge standards[165]. - The company reported a total annual discharge of COD at 149.2664 tons, with a concentration of 10.458 mg/L[166]. - The company has implemented internal recycling measures, resulting in zero external wastewater discharge[170]. - The company invested a total of 5,176.56 million in various poverty alleviation projects, including 2,275.6 million for targeted poverty alleviation efforts[161]. - The company has been recognized as one of the top ten charitable enterprises in China at the national level[161]. - The company conducted six industrial poverty alleviation projects with an investment of RMB 796 million[159]. - The company emphasized a combination of "blood transfusion" and "blood production" in its poverty alleviation strategy, focusing on sustainable development[156]. Corporate Governance and Risk Management - The company has developed a modern corporate governance structure, enhancing decision-making efficiency and operational mechanisms[51]. - The company is committed to enhancing its international management system to improve operational efficiency and reduce costs[127]. - The company emphasizes the importance of risk management across financial, market, and environmental sectors to protect shareholder interests[130]. - The company aims to enhance its corporate governance structure to ensure effective decision-making and execution of strategic goals[132]. - The company will strengthen its market research and risk control measures to minimize the adverse impacts of the COVID-19 pandemic on its operations[131].