Report Overview [Overall Performance](index=3&type=section&id=%E6%95%B4%E4%BD%93%E4%B8%9A%E7%BB%A9%E8%A1%A8%E7%8E%B0) The company's Q1-Q3 2019 performance was severely impacted by a major safety accident and production halt at Yinman Mining, resulting in a sharp revenue decline, net loss, and reduced operating cash flow, compounded by controlling shareholder issues - The primary cause of performance decline was the major safety accident at wholly-owned subsidiary Yinman Mining on February 23, 2019, leading to its ordered production halt and a significant decrease in mineral product output and sales, fundamentally deteriorating revenue, profit, and cash flow metrics[11](index=11&type=chunk)[13](index=13&type=chunk)[17](index=17&type=chunk) - Controlling shareholder Xingye Group entered court-ordered restructuring due to inability to repay debts, with most of its company shares pledged and frozen, posing a potential threat to the company's equity structure stability[7](index=7&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Controlling shareholder Xingye Group has an overdue unpaid compensation of **CNY 86.5193 million** for unfulfilled performance commitments by Rongbang Mining and Tanghe Times in 2017 and 2018, highlighting its financial distress[21](index=21&type=chunk)[23](index=23&type=chunk) Company Profile [Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Total assets slightly increased, but operating performance sharply declined, with revenue significantly down and net profit turning from a profit to a loss Key Financial Indicators (Year-to-Date) | Indicator (Year-to-date) | Q1-Q3 2019 | YoY Change | | :--- | :--- | :--- | | Operating Revenue (CNY) | 564,119,613.63 | -68.39% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | -102,858,999.53 | -118.14% | | Net Cash Flow from Operating Activities (CNY) | 275,114,594.53 | -71.85% | | Basic Earnings Per Share (CNY/share) | -0.0560 | -118.44% | | Weighted Average Return on Net Assets | -1.98% | -11.93% | - Total non-recurring gains and losses amounted to **-CNY 35.6668 million**, primarily from other non-operating expenses, negatively impacting net profit[5](index=5&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The controlling shareholder's 30.27% stake was fully pledged and frozen, indicating severe liquidity issues, with other top shareholders also having high pledge ratios Top Ten Shareholders and Their Shareholding Status | Shareholder Name | Shareholding Ratio | Number of Shares | Pledge/Freeze Status | | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Co., Ltd. | 30.27% | 556,075,350 | Pledged 555,000,086; Frozen 556,075,350 | | Gansu Northwest Mining Group Co., Ltd. | 7.94% | 145,823,042 | Pledged 145,823,042; Frozen 145,823,042 | | Chifeng Fulong Public (Group) Co., Ltd. | 7.52% | 138,184,794 | Pledged 40,000,000 | | Li Xianlai | 6.00% | 110,241,798 | Pledged 110,239,999 | - Certain shareholders have related party relationships, such as natural person shareholders Ji Xiang and Ji Wei, who are children of the controlling shareholder's actual controller Ji Xingye[8](index=8&type=chunk) Significant Matters [Analysis of Significant Changes in Financial Indicators and Their Causes](index=6&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Multiple financial indicators fluctuated sharply due to Yinman Mining's production halt, significantly impacting revenue, costs, and operating cash flow, alongside increased administrative expenses and surging short-term debt - Operating revenue, total profit, and net profit attributable to shareholders significantly declined year-on-year, primarily due to decreased mineral product output and sales following the Yinman Mining '2·23' safety accident[11](index=11&type=chunk)[13](index=13&type=chunk) - Administrative expenses increased by **35.84%** year-on-year, primarily due to idle losses related to Yinman Mining's production halt being recognized in current period profit and loss[12](index=12&type=chunk) - Non-current liabilities due within one year increased by **446.32%** from the beginning of the year, primarily due to the reclassification of long-term borrowings, significantly increasing short-term repayment pressure[11](index=11&type=chunk) - Net cash flow from operating activities decreased by **71.85%** year-on-year, primarily due to a reduction in cash received from sales of goods impacted by the accident[13](index=13&type=chunk) [Progress of Significant Events](index=8&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company faced three core challenges: Yinman Mining's major safety accident, controlling shareholder Xingye Group's judicial restructuring, and unfulfilled performance compensation commitments [Progress of Subsidiary's Major Safety Accident](index=9&type=section&id=%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E5%AE%89%E5%85%A8%E4%BA%8B%E6%95%85%E8%BF%9B%E5%B1%95) Wholly-owned subsidiary Yinman Mining remains suspended since February 24, 2019, due to a major safety accident, posing a continuous significant adverse impact on operating performance - Yinman Mining remains suspended, awaiting government administrative penalty decisions and rectification notices, with the company actively implementing rectifications to achieve early resumption of operations[17](index=17&type=chunk) [Controlling Shareholder Restructuring Matters](index=8&type=section&id=%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E9%87%8D%E6%95%B4%E4%BA%8B%E9%A1%B9) Controlling shareholder Xingye Group entered court-ordered restructuring due to its inability to repay debts, potentially leading to a change in company control and significant future uncertainty - Chifeng Intermediate People's Court accepted the restructuring application for controlling shareholder Xingye Group on October 8, 2019, formally initiating the restructuring process[16](index=16&type=chunk) [Overdue Unfulfilled Commitments](index=11&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) Controlling shareholder Xingye Group failed to meet performance commitments for Tanghe Times and Rongbang Mining, with CNY 86.5193 million in compensation remaining unpaid and constituting a breach - Xingye Group has not paid **CNY 86.5193 million** in performance compensation to the company due to Tanghe Times and Rongbang Mining failing to meet their 2017 and 2018 performance targets[23](index=23&type=chunk) [Share Repurchase Progress](index=10&type=section&id=%E8%82%A1%E4%BB%BD%E5%9B%9E%E8%B4%AD%E7%9A%84%E5%AE%9E%E6%96%BD%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5) The company completed its share repurchase plan, repurchasing 31.3083 million shares for approximately CNY 200 million, with all repurchased shares cancelled - The company completed its share repurchase with a total transaction amount of **CNY 199.9 million**, and the shares have been cancelled, resulting in a corresponding reduction in total share capital[19](index=19&type=chunk)[20](index=20&type=chunk) Financial Statement Analysis [Consolidated Income Statement](index=18&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) Total operating revenue significantly declined to CNY 564 million, while total operating costs were CNY 637 million, resulting in a total profit of -CNY 114 million and a net loss attributable to shareholders of -CNY 103 million Consolidated Income Statement (Year-to-Date) | Item (Year-to-Date) | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 564,119,613.63 | 1,784,788,856.71 | | Total Operating Costs | 636,694,621.68 | 1,024,469,505.88 | | Total Profit | -114,135,121.90 | 761,290,550.68 | | Net Profit Attributable to Owners of the Parent Company | -102,858,999.53 | 567,151,832.56 | [Consolidated Cash Flow Statement](index=24&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net operating cash flow significantly decreased to CNY 275 million, driven by a sharp decline in cash from sales; net cash outflows from investing and financing activities were CNY 168 million and CNY 119 million, respectively Consolidated Cash Flow Statement (Year-to-Date) | Item (Year-to-Date) | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 275,114,594.53 | 977,281,179.05 | | Net Cash Flow from Investing Activities | -167,870,144.69 | -811,659,969.62 | | Net Cash Flow from Financing Activities | -119,070,303.53 | -615,984,577.12 | | Net Increase in Cash and Cash Equivalents | -11,825,853.69 | -450,363,367.69 | [Explanation of Accounting Standard Changes](index=26&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) Effective January 1, 2019, the company adopted new financial instrument standards, reclassifying certain investments to 'other equity instrument investments' measured at fair value, impacting opening equity and deferred tax liabilities - Under new financial instrument standards, **CNY 74.0974 million** of 'available-for-sale financial assets' were reclassified to 'other equity instrument investments', with the adjusted amount being **CNY 250.1060 million**, and the difference recognized in other comprehensive income and deferred income tax liabilities[42](index=42&type=chunk)[44](index=44&type=chunk)

Section I [Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Section%20I.%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides essential disclaimers, outlines the report's structure, and defines key terms and the reporting period [Important Notes](index=2&type=section&id=Important%20Notes) The company's management assures the report's accuracy, highlights key business risks, and confirms no profit distribution for the period - The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of the report and assume corresponding legal responsibilities[4](index=4&type=chunk) - The company advises investors to be aware of potential risks in its main business, including price fluctuations, industry cyclicality, and production safety[4](index=4&type=chunk) - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the 2019 semi-annual period[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This report is structured into eleven chapters, covering company overview, financial indicators, business summary, operational discussion, significant events, shareholder information, and financial reports - The report features a clear, eleven-section structure, comprehensively covering information from the company's basic situation to financial details[5](index=5&type=chunk) [Definitions](index=4&type=section&id=Definitions) This chapter defines key abbreviations used in the report, including regulatory bodies, the company itself, its major holding shareholders, and subsidiaries, clarifying the reporting period from January 1 to June 30, 2019 - "Company/This Company" refers to Inner Mongolia Xingye Mining Co., Ltd., with key subsidiaries like Xingye Group and Yinman Mining also defined by their abbreviations[7](index=7&type=chunk) - The reporting period is defined as January 1, 2019, to June 30, 2019[7](index=7&type=chunk) Section II [Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's fundamental information and a summary of its financial performance during the reporting period [Company Profile](index=5&type=section&id=Company%20Profile) This chapter provides the company's basic information, including its stock ticker "Xingye Mining," stock code "000426," full name, legal representative, and contact details for the Board Secretary and Securities Affairs Representative, noting no changes in contact information or disclosure locations during the reporting period - The company's stock ticker is "Xingye Mining," stock code is 000426, listed on the Shenzhen Stock Exchange[8](index=8&type=chunk) - The company's legal representative is Ji Xingye[8](index=8&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's financial performance significantly declined, with revenue decreasing by 70.15% year-over-year and net profit attributable to shareholders turning from profit to loss, down 121.23%, primarily due to subsidiary production halts | Indicator | Current Period | Prior Year Period | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 337,755,185.38 | 1,131,633,023.26 | -70.15% | | Net Profit Attributable to Shareholders (RMB) | -78,041,673.15 | 367,611,001.51 | -121.23% | | Net Cash Flow from Operating Activities (RMB) | 181,605,334.22 | 362,429,499.74 | -49.89% | | Basic Earnings Per Share (RMB/share) | -0.0425 | 0.1966 | -121.62% | | Weighted Average Return on Net Assets | -1.50% | 6.56% | -8.06% | | Total Assets (RMB) | 9,009,623,473.59 | 8,933,497,776.05 | 0.85% | | Item | Amount (RMB) | | :--- | :--- | | Non-current asset disposal gains/losses | 798,928.60 | | Government grants recognized in current profit/loss | 159,405.43 | | Other non-operating income/expenses | -21,078,139.44 | | **Total** | **-20,256,761.08** | Section III [Company Business Overview](index=8&type=section&id=Section%20III.%20Company%20Business%20Overview) This section details the company's primary business activities, significant asset changes, and core competitive advantages [Primary Business Activities](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main business involves the mining, dressing, and smelting of non-ferrous and precious metals, operating through four segments: mining, smelting, investment, and trading, with non-ferrous metal mining being the primary revenue driver - The company's main business is non-ferrous and precious metal mining and smelting, divided into four segments: mining, smelting, investment, and trading[18](index=18&type=chunk) - Key products include concentrates of lead, zinc, silver, tin, copper, and iron, along with associated metals like bismuth and tungsten[19](index=19&type=chunk) - Non-ferrous metal mining and dressing business is the company's core revenue source, accounting for **99.52% of total operating revenue** in the first half of 2019[28](index=28&type=chunk) [Significant Changes in Major Assets](index=11&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) During the reporting period, there were no significant changes in the company's major asset categories, including equity investments, fixed assets, intangible assets, and construction in progress, nor did it hold significant overseas assets - During the reporting period, the company's major assets, including equity investments, fixed assets, intangible assets, and construction in progress, did not undergo significant changes[29](index=29&type=chunk) [Core Competitiveness Analysis](index=11&type=section&id=%E4%B8%89%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness stems from its advantageous location in Inner Mongolia, substantial high-grade multi-metal mineral resources, commitment from its controlling shareholder to inject quality assets, and an experienced management and technical team with leading process equipment - The company's location in resource-rich Inner Mongolia provides a unique geographical advantage, facilitating resource integration and expansion[31](index=31&type=chunk) - It possesses large-scale, high-grade multi-metal resource reserves, with its subsidiary Yinman Mining being the largest silver production mine in China[32](index=32&type=chunk) - The controlling shareholder, Xingye Group, has committed to transferring relevant assets to the listed company once exploration rights are converted to mining rights, ensuring continuous resource supply[33](index=33&type=chunk) - The company boasts an experienced management and technical team, utilizing industry-leading equipment and automated control technologies[34](index=34&type=chunk) Section IV [Discussion and Analysis of Operations](index=13&type=section&id=Section%20IV.%20Discussion%20and%20Analysis%20of%20Operations) This section provides an overview of the company's operational performance, detailed analysis of its main business, asset and liability status, and key risks with corresponding countermeasures [Overview](index=13&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) In the first half of 2019, the company's operating performance significantly declined due to the "2·23" major transportation safety accident at its subsidiary Yinman Mining, leading to production halts and a substantial drop in revenue and net profit | Indicator | H1 2019 | Year-over-Year Change | | :--- | :--- | :--- | | Operating Revenue | 338 million RMB | -70.15% | | Total Profit | -89 million RMB | -117.99% | | Net Profit Attributable to Parent | -78 million RMB | -121.23% | - The primary reason for the performance decline was the production halt and rectification at subsidiary Yinman Mining since February 24, 2019, following the "2·23" major transportation safety accident[35](index=35&type=chunk) - Subsidiaries Rongguan Mining and Xilin Mining have fully resumed production after their halts; Qianjinda Mining awaits inspection approval to resume construction; Rongbang Mining is expected to commence formal production by year-end[35](index=35&type=chunk) [Analysis of Main Business](index=14&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Due to the production halt at Yinman Mining, the company's main business indicators experienced significant declines, with operating revenue and cost decreasing by 70.15% and 59.92% respectively, while management expenses surged by 50.79% due to the inclusion of shutdown losses | Item | Current Period (RMB) | Year-over-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | | Operating Revenue | 337,755,185.38 | -70.15% | Decreased production and sales due to Yinman Mining's shutdown | | Operating Cost | 158,135,878.43 | -59.92% | Decreased production and sales | | Management Expenses | 134,239,449.59 | 50.79% | Shutdown losses at Yinman Mining recognized in current period | | Net Cash Flow from Operating Activities | 181,605,334.22 | -49.89% | Decrease in cash received from sales of goods | | Product | Operating Revenue (RMB) | Revenue Year-over-Year Change | | :--- | :--- | :--- | | Zinc Concentrate | 182,327,393.46 | -69.86% | | Iron Concentrate | 56,174,247.10 | +56.93% | | Copper-bearing Silver Concentrate | 30,249,672.89 | -85.41% | | Tin Concentrate | 38,386,777.14 | -80.13% | - The mining industry, as the company's main business, had a gross profit margin of **53.43%**, a decrease of **11.94 percentage points** compared to the same period last year[39](index=39&type=chunk) [Analysis of Assets and Liabilities](index=15&type=section&id=%E5%9B%9B%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5) At the end of the reporting period, the company's total assets slightly increased by 0.85% to 9.01 billion RMB, with significant changes in cash due to lower sales and debt repayments, and a reclassification of long-term borrowings to current liabilities | Major Asset/Liability | Period-end Amount (RMB) | % of Total Assets | Explanation for Change from Prior Year-end | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 21,814,377.76 | 0.24% | Decreased due to lower production/sales and repayment of payables | | Long-term Equity Investments | 291,339,613.24 | 3.23% | Resulting from the acquisition of 49% equity in Tongdu Mining in 2018 | | Fixed Assets | 2,970,702,484.11 | 32.97% | Decreased due to significant impairment losses recognized at the end of 2018 | | Long-term Borrowings | 544,538,903.11 | 6.04% | Portion of borrowings reclassified to non-current liabilities due within one year | - The company's assets measured at fair value primarily consist of other equity instrument investments, with a period-end balance of **257 million RMB**[43](index=43&type=chunk) [Analysis of Major Holding and Participating Companies](index=18&type=section&id=%E4%B8%83%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This chapter details the financial status of the company's 14 major subsidiaries, highlighting Rongguan Mining as the primary profit contributor with a net profit of 66.69 million RMB, while Xilin Mining, Tanghe Times Mining, and Yinman Mining reported losses, with Yinman Mining's loss of 22.84 million RMB attributed to its production halt | Subsidiary Name | Main Business | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Rongguan Mining Co., Ltd. | Non-ferrous metal mining and dressing | 218.05 million | 66.69 million | | Xiwuzhumuqinqi Yinman Mining Co., Ltd. | Non-ferrous metal mining and dressing | 94.22 million | -22.84 million | | Inner Mongolia Xingye Group Xilin Mining Co., Ltd. | Non-ferrous metal mining and dressing | 2.13 million | -25.43 million | | Tanghe Times Mining Co., Ltd. | Non-ferrous metal mining and dressing | 0.51 million | -15.82 million | [Risks and Countermeasures](index=19&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces three primary risks: market price fluctuations, production safety, and environmental protection, which it plans to address through industrial structure adjustments, increased safety investments, and improved environmental management systems - Key risks include: market price fluctuations of non-ferrous metals, production safety hazards in mining operations, and environmental impact from mining and dressing activities[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - Countermeasures involve: optimizing resource allocation and cost control, strengthening safety education and accountability, and establishing a comprehensive environmental management and supervision system to ensure compliance and ecological restoration[53](index=53&type=chunk) Section V [Significant Events](index=20&type=section&id=Section%20V.%20Significant%20Events) This section details the company's significant events, including the fulfillment of commitments, integrity status of the controlling shareholder, major related-party transactions, social responsibility initiatives, and other important matters [Fulfillment of Commitments](index=21&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, controlling shareholder Xingye Group failed to fully meet its performance commitments for subsidiaries Tanghe Times and Rongbang Mining, with 86.52 million RMB in compensation outstanding for 2017 and 2018, despite repeated company催缴 - Controlling shareholder Xingye Group has an outstanding compensation payment of **86.52 million RMB** due to Tanghe Times and Rongbang Mining failing to meet their performance commitments for 2017 and 2018[59](index=59&type=chunk)[60](index=60&type=chunk) - The company has repeatedly sent letters to Xingye Group to urge payment but has not yet received a feasible fulfillment plan and will continue to communicate and supervise its obligations[60](index=60&type=chunk) [Controlling Shareholder's Integrity Status](index=23&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company's controlling shareholder, Xingye Group, has been petitioned for reorganization by its creditor, Chifeng Yubang Mining Co., Ltd., due to its inability to repay matured debts, which may impact the company's equity structure - Controlling shareholder Xingye Group has been petitioned for reorganization by its creditor to the Chifeng Intermediate People's Court due to its inability to repay matured debts[62](index=62&type=chunk) [Major Related-Party Transactions](index=24&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company engaged in related-party debt and credit transactions, including 86.52 million RMB in performance compensation receivable from the controlling shareholder and 34.10 million RMB in funds lent to joint venture Tongdu Mining, alongside office building leases and inter-company guarantees | Related Party | Relationship | Item | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Co., Ltd. | Controlling Shareholder | Performance Compensation | 86,519,300.00 | | Kunming Dongchuan District Tongdu Mining Co., Ltd. | Joint Venture | Fund Lending | 34,098,000.00 | - The company leases office space from its controlling shareholder, Xingye Group, with an annual rent of **7.18 million RMB**[71](index=71&type=chunk)[72](index=72&type=chunk) - The company provided a **592 million RMB** mortgage guarantee for its subsidiary Tanghe Times and a **1.1 billion RMB** mortgage guarantee for Xingye Mining itself, with inter-subsidiary guarantees also in place[73](index=73&type=chunk) [Social Responsibility](index=27&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company prioritizes environmental protection, ensuring all subsidiaries comply with regulations for waste treatment and ecological restoration, with no subsidiaries listed as key polluting units, and also engages in targeted poverty alleviation efforts - All company subsidiaries are not listed as key polluting units and have implemented various measures to ensure pollutant discharge compliance and circular utilization[76](index=76&type=chunk) - Due to the production accident, subsidiary Yinman Mining's underground dewatering water is discharged into rivers after purification, with project approval obtained[76](index=76&type=chunk) - In terms of social poverty alleviation, subsidiary Rongguan Mining invested **0.05 million RMB** in targeted poverty alleviation during the reporting period[80](index=80&type=chunk)[81](index=81&type=chunk) [Other Significant Matters](index=30&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company terminated its planned acquisition of Turpan Xueyin Metal Mining Co., Ltd. shares, did not proceed with a proposed 600 million RMB financial assistance to Fujian Zhonghe Co., Ltd. due to unfulfilled guarantees, and reiterated the controlling shareholder's reorganization application - On January 31, 2019, the company decided to terminate the acquisition of Turpan Xueyin Metal Mining Co., Ltd. equity through share issuance and cash payment, citing changes in capital market conditions and slower-than-expected transaction progress[82](index=82&type=chunk)[83](index=83&type=chunk) - The proposed financial assistance of up to **600 million RMB** to Fujian Zhonghe Co., Ltd. (ST Zhonghe) was not implemented due to unfulfilled guarantee measures[84](index=84&type=chunk) - The controlling shareholder, Xingye Group, has been petitioned for reorganization by its creditor, an event that remains uncertain but could impact the company's equity structure[85](index=85&type=chunk)[86](index=86&type=chunk) [Significant Subsidiary Matters](index=32&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The most significant subsidiary event during the reporting period was the major transportation safety accident at wholly-owned subsidiary Yinman Mining on February 23, 2019, which remains under investigation, with the subsidiary still in a state of production suspension - On February 23, 2019, wholly-owned subsidiary Yinman Mining experienced a major transportation safety accident[87](index=87&type=chunk) - As of the report disclosure date, Yinman Mining remains in a state of production and business suspension, with the accident investigation still ongoing and no final results yet issued[87](index=87&type=chunk) Section VI [Share Changes and Shareholder Information](index=32&type=section&id=Section%20VI.%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital stability, share repurchase status, and the composition and holdings of its shareholders, including significant pledges and freezes [Share Changes](index=33&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged at 1.87 billion shares, with no share repurchases occurring in the period, though 31.31 million shares previously repurchased were cancelled post-period - During the reporting period, the company's total share capital and share structure remained unchanged, with a total of **1,868,500,557 shares**[89](index=89&type=chunk) - As of June 30, 2019, the company had completed its share repurchase plan, accumulating **31.31 million shares** at a total cost of approximately **200 million RMB**, which were subsequently cancelled on August 12, 2019[89](index=89&type=chunk)[90](index=90&type=chunk) [Shareholder Numbers and Shareholdings](index=34&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had 49,499 common shareholders, with the controlling shareholder, Inner Mongolia Xingye Group Co., Ltd., holding 29.76% of shares, almost entirely pledged and judicially frozen, and the second-largest shareholder, Gansu Northwest Mining Group Co., Ltd., holding 7.80%, also fully pledged and frozen - At the end of the reporting period, the company had **49,499 common shareholders**[92](index=92&type=chunk) | Shareholder Name | Shareholding Percentage | Shareholding Status | | :--- | :--- | :--- | | Inner Mongolia Xingye Group Co., Ltd. | 29.76% | Almost entirely pledged, entirely frozen | | Gansu Northwest Mining Group Co., Ltd. | 7.80% | Entirely pledged, entirely frozen | | Chifeng Fulong Public (Group) Co., Ltd. | 7.40% | Partially pledged | | Li Xianlai | 5.90% | Almost entirely pledged | - Shareholders Ji Xiang and Ji Wei have father-son/daughter relationships with the company's actual controller, Ji Xingye; shareholder Li Xianlai and Li Pei have a father-daughter relationship[93](index=93&type=chunk) Section X [Financial Report](index=40&type=section&id=Section%20X.%20Financial%20Report) This section presents the company's unaudited consolidated and parent company financial statements for the first half of 2019, along with detailed notes on key financial items and related-party transactions [Financial Statements](index=40&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This chapter provides the unaudited consolidated and parent company financial statements for the first half of 2019, showing a significant decline in consolidated operating revenue to 337.76 million RMB and a net loss of 78.04 million RMB, alongside total assets of 9.01 billion RMB and net cash flow from operating activities of 181.61 million RMB Consolidated Balance Sheet Summary (2019-06-30) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 9,009,623,473.59 | | Total Liabilities | 3,841,588,824.71 | | Equity Attributable to Parent Company Owners | 5,177,099,587.22 | Consolidated Income Statement Summary (H1 2019) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 337,755,185.38 | | Total Operating Costs | 405,219,992.37 | | Total Profit | -88,577,723.74 | | Net Profit | -78,042,206.70 | | Net Profit Attributable to Parent Company Owners | -78,041,673.15 | Consolidated Cash Flow Statement Summary (H1 2019) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 181,605,334.22 | | Net Cash Flow from Investing Activities | -134,344,829.04 | | Net Cash Flow from Financing Activities | -70,138,269.21 | | Net Increase in Cash and Cash Equivalents | -22,877,764.03 | [Notes to Consolidated Financial Statements](index=81&type=section&id=%E4%BA%94%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This chapter provides detailed explanations of key items in the consolidated financial statements, including cash and cash equivalents, accounts receivable, inventories, fixed assets, construction in progress, short-term borrowings, and provisions for the "2·23" safety accident - Cash and cash equivalents at period-end amounted to **21.81 million RMB**, of which **7.14 million RMB** was restricted due to litigation freezes and environmental governance deposits[184](index=184&type=chunk) - Accounts receivable at period-end totaled **91.86 million RMB**, with a bad debt provision of **5.48 million RMB** based on aging analysis[189](index=189&type=chunk) - Fixed assets had a book value of **2.97 billion RMB**, including **369 million RMB** in buildings and structures for which property certificates have not yet been obtained[210](index=210&type=chunk)[213](index=213&type=chunk)[215](index=215&type=chunk) - Due to the Yinman Mining "2·23" major transportation safety accident, the company recognized a provision of **3 million RMB** for estimated fines based on relevant regulations[237](index=237&type=chunk) - The total amount of assets whose ownership or use rights are restricted is **2.05 billion RMB**, primarily mining rights, land use rights, and fixed assets pledged for bank borrowings[264](index=264&type=chunk) [Related Parties and Related Party Transactions](index=111&type=section&id=%E4%B9%9D%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) This chapter discloses related-party transactions, identifying Ji Xingye as the actual controller and Inner Mongolia Xingye Group Co., Ltd. as the controlling shareholder with a 29.76% stake, detailing significant transactions such as office leases, substantial loan guarantees by the controlling shareholder, inter-subsidiary guarantees, and funds lent to a joint venture, with 86.52 million RMB in performance compensation receivable from the controlling shareholder at period-end - The company's controlling shareholder is Inner Mongolia Xingye Group Co., Ltd., holding **29.76%** of shares, and the actual controller is Ji Xingye[280](index=280&type=chunk) - Controlling shareholder Xingye Group and its chairman Ji Xingye provided loan guarantees totaling **2.24 billion RMB** for the company and its subsidiaries[283](index=283&type=chunk)[284](index=284&type=chunk) - The company lent **34.10 million RMB** to its joint venture, Kunming Dongchuan District Tongdu Mining Co., Ltd., for its production startup[287](index=287&type=chunk) - Among receivables from related parties, the most significant is the performance compensation receivable from controlling shareholder Xingye Group, with a period-end balance of **86.52 million RMB**[289](index=289&type=chunk) [Other Significant Matters](index=115&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This chapter discloses other important information impacting investor decisions, including the breakdown of main business by product and region, the high proportion of pledged and judicially frozen shares held by the controlling shareholder and second-largest shareholder, and reiterates the significant safety accident at Yinman Mining and the controlling shareholder's reorganization application | Product Category | Operating Revenue (RMB) | Operating Cost (RMB) | | :--- | :--- | :--- | | Zinc Concentrate | 182,327,393.46 | 78,575,577.78 | | Iron Concentrate | 56,174,247.10 | 26,308,270.23 | | Tin Concentrate | 38,386,777.14 | 21,751,851.60 | | Copper-bearing Silver Concentrate | 30,249,672.89 | 16,690,355.51 | - Controlling shareholder Xingye Group's **30.27%** stake in the company is entirely judicially frozen and **99.81%** is pledged[299](index=299&type=chunk) - The second-largest shareholder, Northwest Mining, has its entire **7.94%** stake in the company pledged and judicially frozen[300](index=300&type=chunk) - Reiteration of significant matters includes the major transportation safety accident at subsidiary Yinman Mining, the company's share repurchase and cancellation, and the controlling shareholder's application for reorganization[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk)

Group 1: Event Details - Inner Mongolia Xingye Mining Co., Ltd. will hold the 2019 Annual Online Investor Collective Reception Day on July 10, 2019, from 15:00 to 17:00 [2] - The event will be conducted remotely via the "Panorama Roadshow" platform [2] - Investors can participate in the interactive session by logging into the provided website [2] Group 2: Attendees - The event will feature company executives including Mr. Dong Yong (Executive Vice President and CFO), Mr. Sun Kai (Vice President and Board Secretary), and Ms. Shang Jianan (Securities Affairs Representative) [2] - Company executives will engage with investors on topics such as corporate governance, development strategy, and operational status [2] Group 3: Assurance - The company and its board members guarantee the authenticity, accuracy, and completeness of the announcement, ensuring no false records or misleading statements [2]

Financial Performance - Total assets increased by 3.66% to CNY 9,673,253,413.12 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 7.96% to CNY 5,813,075,434.67 compared to the end of the previous year[8] - Operating revenue for the current period was CNY 653,155,833.45, a 1.43% increase year-on-year, while total revenue for the year-to-date reached CNY 1,784,788,856.71, up 23.35%[8] - Net profit attributable to shareholders for the current period was CNY 199,540,831.05, a 2.22% increase year-on-year, with year-to-date net profit reaching CNY 567,151,832.56, up 41.38%[8] - Basic earnings per share for the current period was CNY 0.1071, a 2.49% increase year-on-year, while year-to-date basic earnings per share was CNY 0.3037, up 41.45%[8] - Operating profit increased by 39.93% to ¥762.36 million, with net profit rising by 41.38% to ¥567.15 million, supported by higher sales prices for zinc concentrate[21] Shareholder Information - The company reported a total of 40,884 shareholders at the end of the reporting period[12] - The largest shareholder, Inner Mongolia Xingye Group Co., Ltd., holds 29.61% of the shares, amounting to 556,075,350 shares[12] Cash Flow and Investments - The net cash flow from operating activities for the year-to-date was CNY 977,281,179.05, an increase of 11.64%[8] - Cash and cash equivalents decreased by 69.79% to ¥162.39 million due to loan repayments, stock buybacks, and increased investments in mining projects[1] - Accounts receivable decreased by 48.02% to ¥62.60 million, attributed to the collection of bank acceptance bills and increased sales on credit[2] - Other receivables surged by 1558.31% to ¥133.86 million, primarily due to pending performance compensation from a related group[4] - Long-term equity investments increased by 100% to ¥294.18 million, resulting from the addition of a joint venture in Yunnan[5] - Prepayments rose by 47.83% to ¥9.67 million, driven by increased advance payments for material purchases[3] - Investment income skyrocketed by 2600.42% to ¥11.91 million, due to increased cash dividends from financial investments[12] - The net cash flow from financing activities improved by 44.81%, reflecting a decrease in cash used for debt repayment[17] Share Repurchase and Incentive Plans - The company did not engage in any repurchase transactions during the reporting period[13] - A stock incentive plan was approved, granting 9.199 million restricted shares at a price of ¥4.42 per share to 42 participants[27] - The company approved the 2018 Restricted Stock Incentive Plan, with the grant date set for June 7, 2018, and the listing date for the granted shares on July 3, 2018[28] - The company plans to repurchase shares with a total amount not exceeding RMB 340 million, at a maximum price of RMB 8.5 per share[29] - As of September 30, 2018, the company had repurchased 31.3083 million shares, accounting for 1.67% of the total share capital, with a total transaction amount of RMB 199.8758 million[30] Asset Acquisition and Restructuring - The company is planning to issue shares to acquire 99.89% of the assets of Turpan Xueyin Metal Mining Co., Ltd., after abandoning the acquisition of 100% equity in Yunnan Maguan Xingyuan Mining Co., Ltd.[31] - The company received an inquiry letter from the Shenzhen Stock Exchange regarding the asset acquisition plan on August 16, 2018, and submitted a response on August 24, 2018[32] - The company’s stock resumed trading on August 27, 2018, after the disclosure of the asset acquisition plan[32] - The company is actively advancing the restructuring work, including auditing and evaluation, and will disclose the restructuring report and related announcements upon completion[34] Performance Commitments and Compensation - The actual profit of Tanghe Era and Rongbang Mining in 2017 did not meet the committed profit, requiring Xingye Group to compensate Xingye Mining with RMB 84,897,436.01[39] - As of the report date, part of the performance compensation amount from the major shareholder Xingye Group has been received, totaling RMB 11,067,011.61, while the remaining compensation is still under communication[39] - The profit forecast for the target mining rights in 2017, 2018, and 2019 is RMB 41,381,600, RMB 165,630,400, and RMB 163,710,000 respectively[38] - The profit forecast for the Rongbang Mining target mining rights in 2017, 2018, and 2019 is RMB 4,222,000, RMB 18,336,800, and RMB 24,270,500 respectively[38] - The company is actively urging the major shareholder to fulfill its performance commitments[39] Compliance and Governance - The company does not have any securities investment during the reporting period[40] - The company does not have any entrusted wealth management during the reporting period[40] - The company does not have any derivative investments during the reporting period[42] - There are no violations of external guarantees during the reporting period[44] - There are no non-operating fund occupations by controlling shareholders and their related parties during the reporting period[45]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥1,131,633,023.26, representing a 40.93% increase compared to ¥802,972,614.33 in the same period last year[15]. - The net profit attributable to shareholders of the listed company reached ¥367,611,001.51, a significant increase of 78.50% from ¥205,939,950.48 in the previous year[15]. - Basic earnings per share rose to ¥0.1966, up 78.40% from ¥0.1102 in the previous year[15]. - The total profit for the period was CNY 49,232.94 million, an increase of 75.49% compared to the previous year[45]. - The net profit attributable to shareholders reached CNY 36,761.10 million, marking a growth of 78.50% year-on-year[45]. - The company achieved a revenue of CNY 1,131,633,023.26 in the first half of 2018, representing a year-on-year growth of 40.93%[45]. - The company reported a net profit margin of 18% for the first half of 2018, reflecting improved cost control measures and operational efficiency[94]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the first half of 2018, representing a year-on-year growth of 15%[111]. Cash Flow and Assets - The net cash flow from operating activities decreased by 25.61% to ¥362,429,499.74, down from ¥487,174,780.87 in the same period last year[15]. - The total assets at the end of the reporting period were ¥9,380,003,113.33, a slight increase of 0.52% from ¥9,331,359,719.75 at the end of the previous year[15]. - The company's fixed assets increased to CNY 3.57 billion, accounting for 38.11% of total assets[55]. - The company's cash and cash equivalents rose to CNY 249.19 million, up from CNY 167.54 million in the previous year[55]. - Current assets decreased to ¥760,219,364.36 from ¥921,149,782.91, a decline of about 17.5%[196]. - Cash and cash equivalents dropped significantly from ¥537,492,049.40 to ¥249,191,283.40, a decrease of approximately 53.7%[196]. - Total liabilities decreased to ¥3,582,702,400.77 from ¥3,956,011,957.03, a reduction of around 9.4%[197]. Business Operations - The company's main business is the mining and smelting of non-ferrous and precious metals, with 14 subsidiaries divided into four major sectors: mining, smelting, investment, and trade[23]. - The company generated 99.61% of its total revenue from non-ferrous metal mining and selection during the first half of 2018[35]. - The company operates the largest single silver mine in China, with an annual silver production of 210 tons[36]. - The company has established a complete industrial chain for non-ferrous metals, including exploration, development, mining, and trading, enhancing its risk resistance and growth potential[35]. - The company has a geographical advantage with rich mineral resources in Inner Mongolia, which supports its resource acquisition and sustainable profitability[38]. - The main products include lead, zinc, silver, tin, copper, and iron, with specific applications in various industries such as electronics, construction, and defense[24][32]. Strategic Plans and Future Outlook - The company plans to continue its strategy of internal resource accumulation and external expansion, focusing on management, exploration, safety, and mergers and acquisitions[47]. - The company provided a positive outlook for the second half of 2018, projecting a revenue growth of 10% to 12% based on current market trends and demand[95]. - New product development efforts are underway, with an investment of 200 million CNY allocated for R&D in innovative mining technologies[93]. - The company plans to expand its market presence by entering two new provinces, aiming for a 25% increase in market share by the end of 2019[94]. - A strategic acquisition of a smaller mining firm is in progress, expected to enhance operational capacity and increase annual revenue by approximately 300 million CNY[95]. Environmental and Safety Commitments - The company emphasizes the importance of environmental protection in its mining operations, addressing potential risks such as waste discharge and ecological imbalance[68]. - The company aims to optimize resource allocation and improve efficiency in resource utilization to mitigate environmental risks[68]. - The company has established a comprehensive environmental management and supervision system to comply with national standards in mining and processing[68]. - The management emphasized the importance of sustainable practices in operations, aiming to reduce environmental impact by 15% over the next year[112]. Corporate Governance and Compliance - The company is committed to maintaining independence in operations and financial matters as a listed entity[74]. - The company has ongoing commitments to ensure the accuracy and completeness of information provided in transactions[74]. - The company is committed to ensuring fair pricing and conditions for related party transactions, promising to compensate any losses incurred due to violations of this commitment[96]. - The company guarantees the authenticity and completeness of the information provided for the restructuring, assuming legal responsibility for any inaccuracies[120]. - The company has committed to timely disclosure of information related to the restructuring in compliance with relevant laws and regulations[82]. Shareholder Relations - The company held two temporary shareholder meetings with participation rates of 68.01% and 54.03% respectively[71]. - The company has a long-term commitment to reduce and regulate related party transactions to protect shareholder interests[74]. - The company will ensure that related transactions do not harm the legitimate rights and interests of the listed company and its shareholders[82]. - The company has committed to maintaining effective internal control and fund management systems to prevent any misuse of funds[96]. Risks and Challenges - The company faces risks related to price fluctuations, industry cyclicality, and safety production, which investors should be aware of[4]. - Safety production risks are present due to potential natural disasters and equipment failures during mining operations[67]. - The company faces risks related to market price fluctuations, which could significantly impact profitability due to the cyclical nature of the non-ferrous metal industry[66].