Section 1 Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Board of Supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report - The company's Board of Directors, Board of Supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report's contents, ensuring there are no false records, misleading statements, or major omissions[5](index=5&type=chunk) - Forward-looking statements in this report, such as future plans and development strategies, do not constitute substantive commitments to investors, who should maintain sufficient risk awareness[5](index=5&type=chunk) [Risk Factors and Countermeasures](index=2&type=section&id=%E9%A3%8E%E9%99%A9%E5%9B%A0%E7%B4%A0%E4%B8%8E%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces five major risks including raw material supply, grade fluctuations, smelting complexity, pollutant emissions, and zinc price volatility - **Raw Material Supply Risk**: The company has limited zinc ore resources and typically purchases **60%-70%** of its zinc concentrate externally, making it susceptible to international politics, trade friction, and shipping costs; countermeasures include diversifying procurement channels and signing long-term supply agreements[6](index=6&type=chunk) - **Grade Fluctuation and Impurity Risk**: Multiple raw material suppliers lead to inconsistent zinc concentrate grades and high impurity content, increasing smelting difficulty and costs; countermeasures include strengthening raw material testing and optimizing ore blending techniques[7](index=7&type=chunk)[9](index=9&type=chunk) - **Complex Smelting Process Risk**: The company's hydrometallurgical process involves hazardous stages like high temperature, high pressure, and strong acids; countermeasures include regular equipment maintenance and enhanced automation control[10](index=10&type=chunk) - **Pollutant Emission Risk**: Zinc smelting is a heavily regulated industry for heavy metal pollution, requiring strict control of wastewater, waste gas, and solid waste; countermeasures include investment in environmental facilities and real-time emission monitoring[11](index=11&type=chunk) - **Zinc Price Volatility Risk**: Zinc prices are highly volatile due to global economic conditions and supply-demand dynamics, impacting company profits; countermeasures include using futures for hedging and implementing flexible sales strategies[12](index=12&type=chunk) [Profit Distribution Plan](index=3&type=section&id=%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E8%AE%A1%E5%88%92) The company does not plan to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this semi-annual period - The company plans **not to distribute cash dividends**, not to issue bonus shares, and not to convert capital reserves into share capital[13](index=13&type=chunk) [Table of Contents and Definitions](index=4&type=section&id=%E7%9B%AE%E5%BD%95%E4%B8%8E%E9%87%8A%E4%B9%89) This section provides the report's detailed table of contents and defines specific terms to ensure accurate information comprehension - The report's table of contents includes nine main sections, covering important notices, company profile, management discussion, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data[15](index=15&type=chunk) Selected Definitions | Term | Definition | | :--- | :--- | | The Company, This Company, Luoping Zinc & Electricity | Yunnan Luoping Zinc & Electricity Co, Ltd | | Reporting Period, This Reporting Period | January 01, 2025 - June 30, 2025 | | Yuan | RMB Yuan | | Company's Designated Information Disclosure Media | China Securities Journal, Securities Times, Securities Daily, Shanghai Securities News, and CNINFO | Section 2 Company Profile and Key Financial Indicators [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section provides basic information about Yunnan Luoping Zinc & Electricity Co, Ltd, including its stock ticker, listing exchange, and legal representative Company Basic Information | Stock Abbreviation | Luoping Zinc & Electricity | | :--- | :--- | | Stock Code | 002114 | | Stock Listing Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | 云南罗平锌电股份有限公司 | | Company's Legal Representative | Li Youli | - The company's registered address, office address, website, email, and information disclosure location remained unchanged during the reporting period, with details available in the 2024 annual report[24](index=24&type=chunk)[25](index=25&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=%E5%9B%9B%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) The company's operating revenue decreased by 25.97% YoY, while net profit attributable to shareholders plummeted by 3964.00% to -RMB 92.19 million Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Reporting Period (RMB Yuan) | Same Period Last Year (RMB Yuan) | Change YoY (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 520,840,809.12 | 703,513,091.73 | -25.97% | | Net Profit Attributable to Shareholders | -92,190,160.58 | 2,385,871.82 | -3,964.00% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -65,462,705.50 | -4,857,795.32 | -1,247.58% | | Net Cash Flow from Operating Activities | 44,702,281.13 | 137,767,184.80 | -67.55% | | Basic Earnings Per Share (RMB Yuan/Share) | -0.29 | 0.01 | -3,000.00% | | Diluted Earnings Per Share (RMB Yuan/Share) | -0.29 | 0.01 | -3,000.00% | | Weighted Average Return on Equity | -10.27% | 0.23% | -10.50% | | **Period-End Indicators** | **End of Current Period (RMB Yuan)** | **End of Last Year (RMB Yuan)** | **Change from Last Year-End (%)** | | Total Assets | 2,238,230,837.18 | 2,352,064,232.90 | -4.84% | | Net Assets Attributable to Shareholders | 849,563,983.39 | 943,923,820.54 | -10.00% | [Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Total non-recurring profit and loss for the reporting period was -RMB 26.73 million, mainly due to penalties for illegal mining and fair value losses Non-recurring Profit and Loss Items and Amounts for H1 2025 | Item | Amount (RMB Yuan) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 62,300.21 | Asset disposal gains | | Government Grants Recognized in Current Profit or Loss | 615,421.15 | Other income | | Fair value gains/losses from financial instruments and their disposal, excluding effective hedging related to normal business operations | -4,581,795.70 | Losses recognized on some zinc products due to price declines after pricing | | Other non-operating income and expenses not listed above | -22,823,380.74 | Primarily penalties for illegal mining by three subsidiaries in Guizhou | | **Total** | **-26,727,455.08** | | Section 3 Management Discussion and Analysis [Principal Business Activities During the Reporting Period](index=10&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 is an integrated operation of hydropower, lead-zinc mining, smelting, and by-product refining, with recent losses driven by production adjustments and penalties - The company's main products include zinc ingots, zinc alloys, electricity, lead concentrate, germanium concentrate, silver concentrate, cadmium ingots, ultra-fine zinc powder, sulfuric acid, and various by-products[34](index=34&type=chunk) - The company's principal business involves hydropower generation, lead-zinc ore mining, beneficiation, smelting, and refining of associated products, following an integrated production model combined with electricity and edible oil sales[36](index=36&type=chunk) - The company has a raw material self-sufficiency rate of **25%-30%**, with an annual production capacity of **120,000 tons** of zinc ingots and **140,000 tons** of sulfuric acid[38](index=38&type=chunk) - The main reasons for the operating loss in the reporting period were planned production adjustments and maintenance in the smelting segment, declining zinc prices, penalties for illegal mining by subsidiaries, and increased inventory write-downs[40](index=40&type=chunk) [Core Competitiveness Analysis](index=11&type=section&id=%E4%BA%8C%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 strengths lie in its experienced team, strong brand recognition, complete industrial chain, and continuous technological innovation - **Team and Corporate Culture Advantage**: With over 20 years in the lead-zinc industry, the company boasts an experienced core management team and a strong focus on talent development and social responsibility[41](index=41&type=chunk) - **Product Brand and Market Advantage**: The "Jiulong" brand electrolytic zinc is a registered trademark on the Shanghai Futures Exchange and a "China Well-Known Trademark," enjoying broad market recognition and a stable customer base[42](index=42&type=chunk) - **Complete Industrial Chain Advantage**: Through asset acquisitions, the company has established a complete industrial chain of mining, beneficiation, and smelting, ensuring operational stability and profitability[43](index=43&type=chunk) - **Resource Utilization and Technical Advantage**: The company invests in environmental protection and technology to enhance resource recovery, including germanium and other precious metals, and has obtained **3 new utility model patents** during the reporting period[43](index=43&type=chunk) [Main Business Analysis](index=11&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Operating revenue decreased by 25.97% to RMB 521 million due to planned production halts, with the non-ferrous metal smelting business accounting for 96.38% of revenue Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB Yuan) | Same Period Last Year (RMB Yuan) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 520,840,809.12 | 703,513,091.73 | -25.97% | Primarily due to a decrease in zinc product output caused by planned production suspension for maintenance in Q1 | | Operating Costs | 525,728,366.59 | 661,070,574.25 | -20.47% | Primarily due to a year-on-year decrease in both production and sales volume | | Selling Expenses | 4,661,710.13 | 2,663,936.30 | 74.99% | Primarily due to an increase in advertising expenses for product promotion by subsidiary Chiwei Trading | | Administrative Expenses | 26,957,949.99 | 36,891,273.70 | -26.93% | Primarily due to the reclassification of production suspension losses from Fule Mine to operating costs | | Income Tax Expense | 1,743,758.03 | 3,411,470.45 | -48.89% | Primarily due to a year-on-year decrease in the total profit of subsidiaries | | Net Cash Flow from Operating Activities | 44,702,281.13 | 137,767,184.80 | -67.55% | Primarily due to a decrease in cash received resulting from lower sales volume | | Net Cash Flow from Investing Activities | -33,688,173.25 | -75,246,073.93 | 55.23% | Primarily due to a year-on-year decrease in fixed asset investment | | Net Cash Flow from Financing Activities | -48,090,564.70 | -102,066,644.60 | 52.88% | Primarily due to an increase in cash received from borrowings and the recovery of matured financing pledge deposits | Operating Revenue Composition (by Industry) | Industry | Current Period Amount (RMB Yuan) | % of Operating Revenue | Same Period Last Year Amount (RMB Yuan) | % of Operating Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Non-ferrous Metal Smelting | 501,967,206.02 | 96.38% | 688,412,251.91 | 97.85% | -27.08% | | Edible Oil and By-products | 3,150,191.47 | 0.60% | 1,271,303.63 | 0.18% | 147.79% | | Power Generation | 15,723,411.63 | 3.02% | 13,829,536.19 | 1.97% | 13.69% | Operating Revenue Composition (by Product) | Product | Current Period Amount (RMB Yuan) | % of Operating Revenue | Same Period Last Year Amount (RMB Yuan) | % of Operating Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Zinc Ingot | 429,289,904.87 | 82.42% | 407,058,977.51 | 57.86% | 5.46% | | Zinc Alloy | 0.00 | 0.00% | 189,725,145.52 | 26.97% | -100.00% | | Germanium Concentrate | 43,186,797.70 | 8.29% | 25,450,343.06 | 3.62% | 69.69% | | Silver Concentrate | 4,356,702.11 | 0.84% | 13,015,497.75 | 1.85% | -66.53% | | Electricity | 15,723,411.63 | 3.02% | 13,829,536.19 | 1.97% | 13.69% | | Cadmium Cake | 577,641.54 | 0.11% | 2,175,152.01 | 0.31% | -73.44% | | Sulfuric Acid | 13,411,142.34 | 2.57% | 13,792,357.16 | 1.96% | -2.76% | | Lead Slag (Lead Ore) | 8,474,158.01 | 1.63% | 23,317,032.65 | 3.31% | -63.66% | | Copper Concentrate | 463,860.21 | 0.09% | 10,216,162.36 | 1.45% | -95.46% | | Used Anode Plates | 993,524.34 | 0.19% | 0.00 | 0.00% | 100.00% | | Edible Oil and By-products | 3,150,191.47 | 0.60% | 1,271,303.63 | 0.18% | 147.79% | | Others | 1,213,474.90 | 0.23% | 3,661,583.89 | 0.52% | -66.86% | Changes in Gross Profit Margin of Major Products | Industry/Product | Operating Revenue (RMB Yuan) | Operating Costs (RMB Yuan) | Gross Profit Margin (%) | Revenue Change YoY (%) | Cost Change YoY (%) | Gross Profit Margin Change YoY (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Non-ferrous Metal Smelting | 501,967,206.02 | 496,286,038.56 | 1.13% | -27.08% | -23.80% | -4.26% | | Zinc Ingot, Zinc Alloy | 429,289,904.87 | 473,037,098.66 | -10.19% | -28.07% | -21.75% | -8.90% | | Germanium Concentrate | 43,186,797.70 | 8,739,882.57 | 79.76% | 69.69% | 35.67% | 5.07% | [Non-core Business Analysis](index=13&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-core business activities negatively impacted total profit, primarily due to fair value losses of -RMB 6.87 million and non-operating expenses of RMB 22.83 million Impact of Non-core Business on Total Profit | Item | Amount (RMB Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 191,728.51 | -0.21% | Profit from the company's associate enterprises | No | | Gains/Losses from Changes in Fair Value | -6,873,402.00 | 7.52% | Losses recognized from forward pricing transactions of zinc products due to price declines | No | | Asset Impairment | -6,015,168.70 | 6.58% | Inventory write-down provision as net realizable value of some inventory was lower than book value | No | | Non-operating Income | 2,001.35 | 0.00% | Fines received during the period | No | | Non-operating Expenses | 22,829,827.39 | -24.99% | Fines imposed by regulatory authorities on three subsidiaries in Guizhou | No | [Analysis of Assets and Liabilities](index=13&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets and net assets attributable to shareholders decreased by 4.84% and 10.00% respectively, with total restricted assets amounting to RMB 968 million Significant Changes in Asset Composition | Item | End of Period Amount (RMB Yuan) | % of Total Assets | Year-End Amount (RMB Yuan) | % of Total Assets | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 108,953,968.62 | 4.87% | 247,876,404.41 | 10.54% | -5.67% | Decrease in financing pledge deposits at the end of the period | | Accounts Receivable | 38,130,724.10 | 1.70% | 3,201,374.58 | 0.14% | 1.56% | Partial payments for sales made during the period have not yet been collected | | Inventory | 186,823,855.86 | 8.35% | 159,852,597.90 | 6.80% | 1.55% | Increase in raw material inventory at the end of the period | | Construction in Progress | 101,162,474.95 | 4.52% | 82,892,843.42 | 3.52% | 1.00% | Increased investment in the construction of the integrated building for the zinc-rich industry fusion project | | Short-term Borrowings | 319,209,252.54 | 14.26% | 417,320,819.45 | 17.74% | -3.48% | Change in credit structure after repaying matured short-term loans, leading to a simultaneous decrease in other cash and short-term borrowings | | Long-term Borrowings | 170,230,000.00 | 7.61% | 212,215,555.53 | 9.02% | -1.41% | Reclassification of borrowings due within one year to the "non-current liabilities due within one year" account | Assets and Liabilities Measured at Fair Value | Item | Opening Balance (RMB Yuan) | Current Period Fair Value Change (RMB Yuan) | Other Changes (RMB Yuan) | Closing Balance (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | | Financial Liabilities | 0.00 | -6,873,402.00 | -4,581,795.70 | -4,581,795.70 | Restricted Assets as of the Reporting Period End | Item | Closing Book Balance (RMB Yuan) | Closing Book Value (RMB Yuan) | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 69,090,748.54 | 69,090,748.54 | Pledge | Note deposits, geological and ecological environment restoration funds, business freezes | | Fixed Assets | 356,408,076.28 | 132,556,503.87 | Mortgage | Loan collateral | | Intangible Assets | 1,051,885,986.68 | 709,218,204.71 | Mortgage | Loan collateral | | Long-term Equity Investments | 57,557,183.88 | 57,557,183.88 | Pledge | Equity pledge for associate enterprise financing | | **Total** | **1,534,941,995.38** | **968,422,641.00** | | | [Investment Status Analysis](index=15&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total investment for the reporting period was RMB 29.58 million, a decrease of 50.69% compared to the same period last year Investment Amount for the Reporting Period | Investment Amount in Reporting Period (RMB Yuan) | Investment Amount in Same Period Last Year (RMB Yuan) | Fluctuation (%) | | :--- | :--- | :--- | | 29,577,905.69 | 59,977,925.58 | -50.69% | - The company had no securities investments, derivatives investments, or use of raised funds during the reporting period[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) [Major Asset and Equity Sales](index=16&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not engage in any major asset or equity sales during the reporting period - The company did not sell any major assets during the reporting period[62](index=62&type=chunk) - The company did not sell any major equity during the reporting period[63](index=63&type=chunk) [Analysis of Major Holding and Participating Companies](index=16&type=section&id=%E5%85%AB%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) Among the company's main subsidiaries, Puding County Xiangrong Mining Co, Ltd achieved a net profit of RMB 5.27 million during the reporting period Major Subsidiaries and Associates with >10% Impact on Net Profit | Company Name | Company Type | Main Business | Registered Capital (RMB Yuan) | Operating Revenue (RMB Yuan) | Net Profit (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Luoping Fuxin Agricultural Development Co, Ltd | Subsidiary | Production, Sales | 115,000,000.00 | 2,924,185.03 | -7,241,770.96 | | Fuyuan County Fucun Town Fuli Lead-Zinc Mine Co, Ltd | Subsidiary | Lead-zinc mining, processing, sales | 1,300,000.00 | 0.00 | -1,156,560.02 | | Puding County Derong Mining Co, Ltd | Subsidiary | Lead-zinc mining, sales | 60,000,000.00 | 0.00 | -6,196,340.44 | | Puding County Xiangrong Mining Co, Ltd | Subsidiary | Lead-zinc mining, processing, sales | 80,000,000.00 | 74,360,374.68 | 5,265,706.80 | | Puding County Hongtai Mining Co, Ltd | Subsidiary | Lead-zinc mining, processing, sales | 100,000,000.00 | 24,137,769.07 | -14,938,317.36 | | Yunnan Hongyuan Industrial Co, Ltd | Subsidiary | Lead-zinc mining, processing, sales | 30,000,000.00 | 0.00 | -853,081.50 | | Yunnan Chiwei Trading Co, Ltd | Subsidiary | Food sales | 18,000,000.00 | 2,584,904.28 | -3,724,842.82 | | Yunnan Luoping Zinc & Electricity New Materials Co, Ltd | Subsidiary | Non-ferrous metal alloy manufacturing, sales, processing | 50,000,000.00 | 0.00 | -1,097,493.94 | | Yunnan Province Luoping County Laodukou Power Generation Co, Ltd | Associate | Hydropower generation, supply | 87,500,000.00 | 6,609,952.55 | 2,049,251.23 | | Xingyi Huangnihe Power Generation Co, Ltd | Associate | Hydropower generation, technical consulting | 140,000,000.00 | 27,014,804.39 | 3,975,544.11 | | Yongshan Jinsha Mining Co, Ltd | Associate | Lead-zinc mining, processing, sales | 80,000,000.00 | 18,367,340.57 | -8,339,407.12 | [Company's Risks and Countermeasures](index=17&type=section&id=%E5%8D%81%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 five major risks including raw material supply, grade fluctuations, smelting complexity, pollutant emissions, and zinc price volatility - **Raw Material Supply Risk**: The company has limited zinc ore resources and typically purchases **60%-70%** of its zinc concentrate externally, making it susceptible to international politics, trade friction, and shipping costs; countermeasures include diversifying procurement channels and signing long-term supply agreements[66](index=66&type=chunk) - **Grade Fluctuation and Impurity Risk**: Multiple raw material suppliers lead to inconsistent zinc concentrate grades and high impurity content, increasing smelting difficulty and costs; countermeasures include strengthening raw material testing and optimizing ore blending techniques[67](index=67&type=chunk) - **Complex Smelting Process Risk**: The company's hydrometallurgical process involves hazardous stages like high temperature, high pressure, and strong acids; countermeasures include regular equipment maintenance and enhanced automation control[67](index=67&type=chunk) - **Pollutant Emission Risk**: Zinc smelting is a heavily regulated industry for heavy metal pollution, requiring strict control of wastewater, waste gas, and solid waste; countermeasures include investment in environmental facilities and real-time emission monitoring[67](index=67&type=chunk)[68](index=68&type=chunk) - **Zinc Price Volatility Risk**: Zinc prices are highly volatile due to global economic conditions and supply-demand dynamics, impacting company profits; countermeasures include using futures for hedging and implementing flexible sales strategies[69](index=69&type=chunk) Section 4 Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=19&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Deputy General Manager and Board Secretary Yang Zhongming resigned for personal reasons on April 14, 2025 - Deputy General Manager and Board Secretary Yang Zhongming resigned on April 14, 2025, for personal reasons[72](index=72&type=chunk) [Profit Distribution and Capitalization of Capital Reserves for the Reporting Period](index=19&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company does not plan to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this semi-annual period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[73](index=73&type=chunk) [Environmental Information Disclosure](index=19&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its main subsidiaries are included in the list of enterprises required to disclose environmental information by law - The listed company and its main subsidiaries (Yunnan Luoping Zinc & Electricity Co, Ltd, Puding County Xiangrong Mining Co, Ltd) are included in the list of enterprises required to disclose environmental information by law[75](index=75&type=chunk) [Social Responsibility](index=19&type=section&id=%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 integrates social responsibility into its strategic planning, core business, and community service, focusing on rural revitalization and employee welfare - **Party-Building Leadership**: The company strengthens ideological guidance, integrates party building with business development to ensure production safety, and contributes to rural revitalization through industrial support and community activities like blood drives[77](index=77&type=chunk)[78](index=78&type=chunk) - **Innovation-Driven Development**: The company focuses on its core business by improving processing capabilities for complex raw materials and has expanded into agriculture by developing a zinc-rich rapeseed industrial park under a "company + base + farmer" model[79](index=79&type=chunk) - **Employee Services**: The company provides comprehensive support, including **RMB 78,000** in aid to 64 employees during the New Year, **RMB 17,800** for sick leave visits, **RMB 15,000** in educational assistance, and various holiday benefits and childcare programs[80](index=80&type=chunk)[81](index=81&type=chunk) Section 5 Important Matters [Commitments Fulfilled or Overdue by Relevant Parties During the Reporting Period](index=21&type=section&id=%E4%B8%80%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) There were no commitments fulfilled or overdue by the company's actual controller, shareholders, related parties, or acquirers during the reporting period - The company reports no commitments that were fulfilled during the reporting period or were overdue as of the period's end by its actual controller, shareholders, related parties, acquirers, or the company itself[83](index=83&type=chunk) [Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties](index=21&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There was no non-operating fund occupation of the listed company by its controlling shareholders or other related parties during the reporting period - The company reports no non-operating fund occupation by its controlling shareholders or other related parties during the reporting period[84](index=84&type=chunk) [Irregular External Guarantees](index=21&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[85](index=85&type=chunk) [Appointment and Dismissal of Accounting Firm](index=21&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual report has not been audited - The company's semi-annual report has not been audited[86](index=86&type=chunk) [Bankruptcy and Reorganization Matters](index=21&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) No bankruptcy or reorganization matters occurred during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[87](index=87&type=chunk) [Litigation Matters](index=21&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no major litigation or arbitration matters during this reporting period - The company had no major litigation or arbitration matters during this reporting period[88](index=88&type=chunk) [Penalties and Rectification](index=22&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) Three of the company's subsidiaries in Guizhou received administrative penalties for illegal mining and unauthorized use of forest land - Puding County Xiangrong Mining Co, Ltd was ordered to cease illegal mining and was fined a total of **RMB 104,442.10** for illegal gains and penalties[89](index=89&type=chunk) - Puding County Derong Mining Co, Ltd was ordered to cease illegal mining and was fined a total of **RMB 2,067,535.30** for illegal gains and penalties[89](index=89&type=chunk) - Puding County Hongtai Mining Co, Ltd was ordered to cease illegal mining at two sites and was fined a total of **RMB 19,115,042.10** for one mine and **RMB 1,162,087.10** for the other[89](index=89&type=chunk) - Puding County Xiangrong Mining Co, Ltd was ordered to restore 2.2642 hectares of forest land by November 2025 and was fined **RMB 339,630.00** for occupying forest land without a permit[89](index=89&type=chunk) [Integrity Status of the Company, its Controlling Shareholders, and Actual Controller](index=22&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) There were no issues concerning the integrity of the company, its controlling shareholders, or its actual controller during the reporting period - The company reports no issues concerning the integrity of itself, its controlling shareholders, or its actual controller during the reporting period[90](index=90&type=chunk) [Material Related-Party Transactions](index=23&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no material related-party transactions related to daily operations but has outstanding related-party debts and receivables - The company had no related-party transactions related to daily operations, asset or equity acquisitions/disposals, or joint investments during the reporting period[91](index=91&type=chunk)[92](index=92&type=chunk) Related-Party Claims and Debts | Related Party | Relationship | Reason | Opening Balance (RMB 10,000) | Current Period Increase (RMB 10,000) | Current Period Recovery (RMB 10,000) | Interest Rate | Current Period Interest (RMB 10,000) | Closing Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Receivables from Related Parties:** | | | | | | | | | | Xingyi Huangnihe Power Generation Co, Ltd | Associate | Maintenance and labor dispatch | 460.44 | 0 | 250 | | 0 | 210.44 | | Yongshan Jinsha Mining Co, Ltd | Associate | Dividend | 178.92 | 0 | 178.92 | | 0 | 0 | | **Payables to Related Parties:** | | | | | | | | | | Jiang Pan | Minority Shareholder | Funds advanced by minority shareholder | 6,750.1 | 0 | 0 | | 0 | 6,750.1 | | Xingyi Huangnihe Power Generation Co, Ltd | Associate | Temporary loan | 4,307.46 | 0 | 0 | 6.20% | 40.09 | 4,347.55 | - **Impact of Related-Party Debt**: Due to consecutive losses, the company's short-term solvency is weak and financing is difficult; repayment of this debt will negatively affect the company's cash flow[93](index=93&type=chunk) [Major Contracts and Their Performance](index=24&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no custody, contracting, major guarantees, entrusted wealth management, or other major contracts during the reporting period - The company had no custody arrangements during the reporting period[97](index=97&type=chunk) - The company had no contracting arrangements during the reporting period[98](index=98&type=chunk) - The company had no leasing projects that generated profit or loss exceeding 10% of the total profit for the reporting period[99](index=99&type=chunk) - The company had no major guarantees during the reporting period[100](index=100&type=chunk) - The company had no entrusted wealth management during the reporting period[101](index=101&type=chunk) - The company had no other major contracts during the reporting period[102](index=102&type=chunk) [Explanation of Other Major Matters](index=25&type=section&id=%E5%8D%81%E4%B8%89%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) There were no other major matters requiring explanation during the reporting period - The company had no other major matters to report for the period[103](index=103&type=chunk) [Major Matters of Company Subsidiaries](index=25&type=section&id=%E5%8D%81%E5%9B%9B%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) There were no major matters concerning the company's subsidiaries during the reporting period - The company had no major matters concerning its subsidiaries to report for the period[104](index=104&type=chunk) Section 6 Changes in Share Capital and Shareholder Information [Changes in Share Capital](index=26&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) The company's total number of shares remained unchanged at 323,395,267 during the reporting period Share Capital Changes | | Pre-Change Quantity (Shares) | Pre-Change Ratio (%) | Change (+,-) New Issuance (Shares) | Change (+,-) Bonus Shares (Shares) | Change (+,-) Capitalization (Shares) | Change (+,-) Other (Shares) | Change (+,-) Subtotal (Shares) | Post-Change Quantity (Shares) | Post-Change Ratio (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 4,444 | 0.00% | 0 | 0 | 0 | 0 | 0 | 4,444 | 0.00% | | II. Unrestricted Shares | 323,390,823 | 100.00% | 0 | 0 | 0 | 0 | 0 | 323,390,823 | 100.00% | | III. Total Shares | 323,395,267 | 100.00% | 0 | 0 | 0 | 0 | 0 | 323,395,267 | 100.00% | - There were no significant changes regarding the reasons for share changes, approvals, transfers, share repurchase progress, or their impact on financial indicators[106](index=106&type=chunk)[107](index=107&type=chunk) [Number of Shareholders and Shareholding Status](index=27&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 37,582 common shareholders, with the controlling shareholder holding a 27.40% stake - Total number of common shareholders at the end of the reporting period: **37,582**[108](index=108&type=chunk) Shareholding of Top 10 Shareholders or Those Holding Over 5% | Shareholder Name | Shareholder Type | Shareholding Ratio (%) | Shares Held at Period End (Shares) | Change During Period (Shares) | Restricted Shares Held (Shares) | Unrestricted Shares Held (Shares) | Share Status | Quantity (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Luoping County Zinc & Electricity Company | State-owned Legal Person | 27.40% | 88,597,600 | 0 | 0 | 88,597,600 | N/A | 0 | | Huarong Jinshang Asset Management Co, Ltd | State-owned Legal Person | 1.59% | 5,155,444 | 0 | 0 | 5,155,444 | N/A | 0 | | Baoning Capital Co, Ltd - Baoning Emerging Markets Small Cap Fund (USA) | Foreign Legal Person | 1.07% | 3,475,691 | -101,200 | 0 | 3,475,691 | N/A | 0 | | Li Chuancheng | Domestic Natural Person | 0.97% | 3,145,800 | 3,145,800 | 0 | 3,145,800 | N/A | 0 | | Xu Kaidong | Domestic Natural Person | 0.87% | 2,821,000 | 1,008,700 | 0 | 2,821,000 | N/A | 0 | | Xu Xiaorong | Domestic Natural Person | 0.69% | 2,220,800 | 473,600 | 0 | 2,220,800 | N/A | 0 | | BARCLAYS BANK PLC | Foreign Legal Person | 0.67% | 2,153,600 | 2,153,600 | 0 | 2,153,600 | N/A | 0 | | Song Danqi | Domestic Natural Person | 0.63% | 2,043,800 | 2,043,800 | 0 | 2,043,800 | N/A | 0 | | Li Ru | Domestic Natural Person | 0.54% | 1,751,300 | 1,751,300 | 0 | 1,751,300 | N/A | 0 | | Chen Ke | Domestic Natural Person | 0.50% | 1,618,100 | 1,618,100 | 0 | 1,618,100 | N/A | 0 | - Among the top 10 unrestricted shareholders, Xu Kaidong, Li Ru, and Chen Ke hold shares through investor credit securities accounts[109](index=109&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=28&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period; for details, please refer to the 2024 annual report[110](index=110&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=28&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[112](index=112&type=chunk) - The company's actual controller did not change during the reporting period[112](index=112&type=chunk) [Preferred Stock Related Matters](index=29&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred stock during the reporting period - The company had no preferred stock during the reporting period[113](index=113&type=chunk) Section 7 Bond-related Matters [Bond-related Matters](index=30&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[115](index=115&type=chunk) Section 8 Financial Report [Audit Report](index=31&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[117](index=117&type=chunk) [Financial Statements](index=31&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the unaudited consolidated and parent company financial statements for H1 2025, showing a net loss of RMB 93.10 million Consolidated Balance Sheet (as of June 30, 2025) | Item | Closing Balance (RMB Yuan) | Opening Balance (RMB Yuan) | | :--- | :--- | :--- | | Total Assets | 2,238,230,837.18 | 2,352,064,232.90 | | Total Liabilities | 1,390,669,660.67 | 1,409,238,252.37 | | Total Equity | 847,561,176.51 | 942,825,980.53 | Consolidated Income Statement (H1 2025) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 520,840,809.12 | 703,513,091.73 | | Operating Profit | -68,523,543.38 | -1,763,513.01 | | Total Profit | -91,351,369.42 | 4,754,095.94 | | Net Profit | -93,095,127.45 | 1,342,625.49 | | Net Profit Attributable to Parent Company Shareholders | -92,190,160.58 | 2,385,871.82 | | Basic Earnings Per Share (RMB Yuan/Share) | -0.29 | 0.01 | Consolidated Cash Flow Statement (H1 2025) | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 44,702,281.13 | 137,767,184.80 | | Net Cash Flow from Investing Activities | -33,688,173.25 | -75,246,073.93 | | Net Cash Flow from Financing Activities | -48,090,564.70 | -102,066,644.60 | | Net Increase in Cash and Cash Equivalents | -37,076,456.82 | -39,545,533.73 | [Company Basic Information](index=49&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Yunnan Luoping Zinc & Electricity Co, Ltd, established in 2000 and listed on the Shenzhen Stock Exchange, primarily engages in hydropower and lead-zinc mining and smelting - Yunnan Luoping Zinc & Electricity Co, Ltd was established on December 21, 2000, is registered in Luoping County, Qujing City, Yunnan Province, and its RMB ordinary A-shares are listed on the Shenzhen Stock Exchange[152](index=152&type=chunk) - The company and its subsidiaries are mainly engaged in hydropower generation, mining of lead-zinc and other non-ferrous metals, zinc smelting, and the production and sale of related products such as zinc ingots, electricity, and sulfuric acid[152](index=152&type=chunk) [Basis of Preparation for Financial Statements](index=50&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis, in accordance with China's Accounting Standards for Business Enterprises and relevant CSRC disclosure rules - The Group's financial statements are prepared on a going concern basis, based on actual transactions and events, and in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and the CSRC's disclosure regulations[153](index=153&type=chunk) - The Group's accounting is based on the accrual basis and historical cost measurement, except for certain financial instruments, with impairment provisions made as required[153](index=153&type=chunk) - The Group and the Company have the ability to continue as a going concern for at least 12 months from the end of this reporting period, with no major events affecting this ability[154](index=154&type=chunk) [Significant Accounting Policies and Estimates](index=51&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the key accounting policies and estimates used, covering areas such as business combinations, financial instruments, revenue recognition, and asset valuation - The financial statements prepared by the Group comply with the requirements of the Accounting Standards for Business Enterprises, truly and completely reflecting the financial position as of June 30, 2025, and the operating results and cash flows for the H1 2025 period[156](index=156&type=chunk) - The Group's accounting period is the calendar year, from January 1 to December 31[157](index=157&type=chunk) - The currency used in the preparation of these financial statements by the Group is the Renminbi (RMB)[159](index=159&type=chunk) - The Group classifies financial assets based on its business model for managing them and their contractual cash flow characteristics into three categories: measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[177](index=177&type=chunk) - Revenue is recognized when the customer obtains control of the related goods, provided that the contract is approved, obligations are clear, payment terms are defined, the contract has commercial substance, and consideration is probable of collection[250](index=250&type=chunk)[251](index=251&type=chunk) - The Group has not made any significant changes to its accounting policies or estimates during this fiscal year[276](index=276&type=chunk)[277](index=277&type=chunk) [Taxation](index=73&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company is subject to VAT, corporate income tax, and resource tax, and benefits from preferential tax policies for Western Development and advanced manufacturing Major Taxes and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable value-added amount | 13% | | Urban Maintenance and Construction Tax | Payable turnover tax amount | 5%, 1% | | Corporate Income Tax | Taxable income | 25%, 15% | | Resource Tax | Sales revenue less freight charges | 5%, 9.5%, 3%, 3.9% | - The company and several of its subsidiaries are eligible for a preferential corporate income tax rate of **15%** under the Western Development Program[281](index=281&type=chunk) - Subsidiaries Yunnan Chiwei Trading Co, Ltd and Yunnan Luoping Zinc & Electricity New Materials Co, Ltd are eligible for preferential tax policies for small and micro enterprises[282](index=282&type=chunk) - The company is eligible for the advanced manufacturing enterprise VAT super-deduction policy, allowing an additional **5%** deduction on current deductible input tax[283](index=283&type=chunk) [Notes to Consolidated Financial Statement Items](index=74&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key items, including cash and cash equivalents of RMB 109 million, inventory of RMB 187 million, and short-term borrowings of RMB 319 million - Cash and cash equivalents at period-end totaled **RMB 108,953,968.62**, of which **RMB 69,090,748.54** was restricted, primarily for note deposits and environmental restoration funds[286](index=286&type=chunk)[287](index=287&type=chunk) Accounts Receivable by Bad Debt Provision Method | Category | Book Balance (RMB Yuan) | Proportion (%) | Bad Debt Provision (RMB Yuan) | Provision Rate (%) | Book Value (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts receivable with provision for bad debts on a portfolio basis | 49,656,171.14 | 100.00% | 11,525,447.04 | 23.21% | 38,130,724.10 | Inventory Classification | Item | Book Balance (RMB Yuan) | Inventory Write-down or Contract Cost Impairment (RMB Yuan) | Book Value (RMB Yuan) | | :--- | :--- | :--- | :--- | | Raw Materials | 108,546,918.32 | 1,289,134.90 | 107,257,783.42 | | Work in Progress | 60,930,800.13 | 3,407,770.94 | 57,523,029.19 | | Finished Goods | 16,389,923.49 | 800,020.12 | 15,589,903.37 | | Revolving Materials | 6,246,228.31 | 0 | 6,246,228.31 | | Consignment Goods | 206,911.57 | 0 | 206,911.57 | | **Total** | **192,320,781.82** | **5,496,925.96** | **186,823,855.86** | - The book value of fixed assets at period-end was **RMB 796,930,854.38**, and the book value of intangible assets was **RMB 809,676,264.37**[348](index=348&type=chunk)[373](index=373&type=chunk) - Short-term borrowings at period-end totaled **RMB 319,209,252.54**, primarily consisting of mortgaged, guaranteed, and pledged loans[399](index=399&type=chunk) - Transactional financial liabilities at period-end were **RMB 4,581,795.70**, mainly representing floating losses from forward-priced zinc sales due to market price declines[402](index=402&type=chunk) Operating Revenue and Costs | Item | Current Period Revenue (RMB Yuan) | Current Period Costs (RMB Yuan) | Prior Period Revenue (RMB Yuan) | Prior Period Costs (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 509,695,791.66 | 518,508,463.23 | 678,445,979.61 | 642,982,453.21 | | Other Business | 11,145,017.46 | 7,219,903.36 | 25,067,112.12 | 18,088,121.04 | | **Total** | **520,840,809.12** | **525,728,366.59** | **703,513,091.73** | **661,070,574.25** | - Non-operating expenses for the current period were **RMB 22,829,827.39**, an increase of **12,523.57%** YoY, primarily due to penalties for illegal mining by three subsidiaries in Guizhou[472](index=472&type=chunk) [Research and Development Expenses](index=116&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) Total R&D expenditure for the reporting period was RMB 27.61 million, all of which was expensed R&D Expenses | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Direct Input | 25,499,487.85 | 29,500,947.61 | | Direct Labor | 2,101,928.66 | 3,287,402.93 | | Depreciation, Amortization, and Other | 7,490.84 | 542,751.53 | | **Total** | **27,608,907.35** | **33,331,102.07** | | Of which: Expensed R&D | 27,608,907.35 | 33,331,102.07 | - The company has no R&D projects that meet the criteria for capitalization and no significant externally acquired ongoing R&D projects[498](index=498&type=chunk)[500](index=500&type=chunk) [Changes in Consolidation Scope](index=117&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) There were no changes in the consolidation scope due to business combinations or disposal of subsidiaries during the reporting period - The company did not engage in any business combinations under non-common control during the reporting period[502](index=502&type=chunk) - The company did not engage in any business combinations under common control during the reporting period[506](index=506&type=chunk) - The company had no reverse acquisitions during the reporting period[508](index=508&type=chunk) - The company had no transactions or events leading to a loss of control over subsidiaries during the reporting period[509](index=509&type=chunk) [Interests in Other Entities](index=120&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section discloses the company's interests in its eight main subsidiaries and three associate companies, which are accounted for using the equity method Significant Non-wholly Owned Subsidiaries | Subsidiary Name | Minority Interest Ratio (%) | Net Profit/Loss Attributable to Minority Interests (RMB Yuan) | Minority Interest Equity Balance at Period End (RMB Yuan) | | :--- | :--- | :--- | :--- | | Fuyuan County Fucun Town Fuli Lead-Zinc Mine Co, Ltd | 40.00% | -462,624.01 | -13,961,518.00 | | Yunnan Hongyuan Industrial Co, Ltd | 49.00% | -442,342.86 | 11,958,711.12 | | **Total** | | **-904,966.87** | **-2,002,806.88** | Significant Associate Companies | Joint Venture or Associate Name | Principal Place of Business | Place of Registration | Business Nature | Direct Shareholding (%) | Indirect Shareholding (%) | Accounting Method for Investment | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yongshan Jinsha Mining Co, Ltd | Yongshan, Yunnan | Yongshan, Yunnan | Mineral mining and sales | 23.20% | 0.00% | Equity Method | | Yunnan Province Luoping County Laodukou Power Generation Co, Ltd | Luoping, Yunnan | Luoping, Yunnan | Power production and sales | 37.00% | 0.00% | Equity Method | | Xingyi Huangnihe Power Generation Co, Ltd | Xingyi, Guizhou | Xingyi, Guizhou | Power production and sales | 33.00% | 0.00% | Equity Method | Key Financial Information of Significant Associate Companies (H1 2025) | Item | Yongshan Jinsha Mining Co, Ltd (RMB Yuan) | Yunnan Province Luoping County Laodukou Power Generation Co, Ltd (RMB Yuan) | Xingyi Huangnihe Power Generation Co, Ltd (RMB Yuan) | | :--- | :--- | :--- | :--- | | Total Assets | 174,613,488.08 | 98,410,938.89 | 832,905,293.78 | | Total Liabilities | 46,544,570.10 | 1,146,391.08 | 658,489,584.74 | | Equity Attributable to Parent Company Shareholders | 128,068,917.98 | 97,264,547.81 | 174,415,709.04 | | Operating Revenue | 18,367,340.57 | 6,609,952.55 | 27,014,804.39 | | Net Profit | -8,339,407.12 | 2,049,251.23 | 3,975,544.11 | [Government Grants](index=126&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) Government grants recognized as deferred income totaled RMB 18.97 million at period-end, with total grants affecting current profit and loss amounting to RMB 2.14 million Liability Items Involving Government Grants | Account | Opening Balance (RMB Yuan) | New Grants (RMB Yuan) | Recognized in Non-operating Income (RMB Yuan) | Transferred to Other Income (RMB Yuan) | Other Changes (RMB Yuan) | Closing Balance (RMB Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 19,563,903.36 | 0 | 0 | 595,113.12 | 0 | 18,968,790.24 | Asset-related | Government Grants Recognized in Current Profit or Loss | Account | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Other Income | 2,143,643.33 | 5,086,534.27 | [Risks Related to Financial Instruments](index=126&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces market, credit, and liquidity risks, with a 50 basis point increase in interest rates estimated to reduce net profit by RMB 2.93 million - **Currency Risk**: The Group's transactions are primarily settled in RMB, and as of June 2025, there were no significant foreign currency assets or liabilities[533](index=533&type=chunk) - **Interest Rate Risk**: As of June 30, 2025, if interest rates on floating-rate borrowings were to rise or fall by 50 basis points, the Group's net profit and shareholders' equity would decrease or increase by approximately **RMB 2.93 million**[533](index=533&type=chunk) - **Other Price Risk**: The Group is exposed to price fluctuations in the non-ferrous metals market, particularly zinc, and manages this risk through various pricing strategies[534](index=534&type=chunk) - **Credit Risk**: The Group's credit risk mainly arises from its financial assets, which is managed through credit limit approvals and pre-payment sales policies[535](index=535&type=chunk) - **Liquidity Risk**: The Group manages liquidity risk by ensuring sufficient funds to meet maturing obligations and maintained an unused bank credit line of **RMB 23.75 million** as of June 30, 2025[536](index=536&type=chunk) Analysis of Financial Liabilities by Undiscounted Remaining Contractual Maturity (as of June 30, 2025) | Item | Within 1 Year (RMB Yuan) | 1-2 Years (RMB Yuan) | 2-5 Years (RMB Yuan) | Over 5 Years (RMB Yuan) | Total (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Short-term Borrowings | 319,209,252.54 | 0 | 0 | 0 | 319,209,252.54 | | Notes Payable | 81,017,840.13 | 0 | 0 | 0 | 81,017,840.13 | | Accounts Payable | 358,895,922.86 | 0 | 0 | 0 | 358,895,922.86 | | Other Payables | 118,649,876.71 | 0 | 0 | 0 | 118,649,876.71 | | Non-current Liabilities Due within One Year | 84,437,250.00 | 0 | 0 | 0 | 84,437,250.00 | | Long-term Borrowings | 0 | 48,015,000.00 | 33,709,000.00 | 88,506,000.00 | 170,230,000.00 | | Long-term Payables | 0 | 24,990,000.00 | 61,187,282.03 | 40,200,000.00 | 126,377,282.03 | | Lease Liabilities | 0 | 191,000.00 | 440,965.78 | 1,161,618.68 | 1,793,584.46 | | Provisions | 20,250,000.00 | 0 | 0 | 27,296,876.10 | 47,546,876.10 | [Fair Value Disclosures](index=129&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) The company's financial liabilities measured at fair value through profit or loss amounted to RMB 4.58 million at the end of the reporting period Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 1 Fair Value Measurement (RMB Yuan) | Level 2 Fair Value Measurement (RMB Yuan) | Level 3 Fair Value Measurement (RMB Yuan) | Total (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | | Financial liabilities designated at fair value through profit or loss | 4,581,795.70 | 0 | 0 | 4,581,795.70 | - The market price for Level 1 fair value measurement items is determined by the difference between the spot price at the time of control transfer for unpriced goods and the corresponding metal price on the Shanghai Metals Market website on the balance sheet date[543](index=543&type=chunk) [Related Parties and Transactions](index=129&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's parent is Luoping County Zinc & Electricity Company, and it has multiple related-party guarantees in place for its subsidiaries and itself - The company's parent company is Luoping County Zinc & Electricity Company, with a registered capital of RMB 50.38 million and a 27.40% shareholding; the ultimate controlling party is the Luoping County State-owned Assets Supervision and Administration Commission[544](index=544&type=chunk) Company as Guarantor | Guaranteed Party | Guarantee Amount (RMB Yuan) | Start Date | End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Luoping Fuxin Agricultural Development Co, Ltd | 127,960,000.00 | May 24, 2023 | May 23, 2038 | No | | Luoping Fuxin Agricultural Development Co, Ltd | 3,920,000.00 | August 02, 2023 | August 02, 2026 | No | | Puding County Xiangrong Mining Co, Ltd | 10,000,000.00 | March 28, 2025 | March 27, 2028 | No | Company as Guaranteed Party | Guarantor | Guarantee Amount (RMB Yuan) | Start Date | End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Luoping County Development and Investment Group Co, Ltd | 150,000,000.00 | September 09, 2024 | September 09, 2025 | No | | Luoping County Development and Investment Group Co, Ltd, Luoping County Huifeng Investment Group Co, Ltd | 90,000,000.00 | May 26, 2025 | May 26, 2026 | No | | Luoping County Development and Investment Group Co, Ltd | 53,030,000.00 | June 28, 2024 | June 28, 2026 | No | | Luoping County Development and Investment Group Co, Ltd | 39,470,000.00 | July 08, 2024 | July 08, 2026 | No | | Luoping County Development and Investment Group Co, Ltd | 80,000,000.00 | September 12, 2024 | September 12, 2025 | No | | Luoping County Development and Investment Group Co, Ltd | 20,000,000.00 | October 08, 2024 | September 29, 2025 | No | | Luoping County Development and Investment Group Co, Ltd | 46,857,500.00 | March 19, 2024 | September 25, 2025 | No | | Luoping County Development and Investment Group Co, Ltd | 40,000,000.00 | June 20, 2025 | June 20, 2026 | No | | Luoping County Development and Investment Group Co, Ltd | 41,860,000.00 | June 24, 2025 | June 25, 2026 | No | Related-Party Fund Borrowing (Inward) | Related Party | Borrowing Amount (RMB Yuan) | Start Date | End Date | Description | | :--- | :--- | :--- | :--- | :--- | | Xingyi Huangnihe Power Generation Co, Ltd | 40,000,000.00 | July 28, 2023 | July 27, 2028 | The loan term is tentatively set for 5 years by both parties | [Share-based Payments](index=132&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) The company had no share-based payment arrangements during the reporting period - The company had no overall share-based payment situation during the reporting period[567](index=567&type=chunk) - The company had no equity-settled share-based payments during the reporting period[567](index=567&type=chunk) - The company had no cash-settled share-based payments during the reporting period[568](index=568&type=chunk) - The company incurred no share-based payment expenses during the reporting period[568](index=568&type=chunk) - There were no modifications or terminations of share-based payment plans during the reporting period[568](index=568&type=chunk) [Commitments and Contingencies](index=133&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company had no significant commitments or material contingencies to disclose - As of June 30, 2025, the Group had no significant commitments to disclose[568](index=568&type=chunk) - The company has no material contingencies to disclose[570](index=570&type=chunk) [Post-Balance Sheet Events](index=133&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) No significant non-adjusting events occurred after the reporting period, and no profit distribution plan has been disclosed - No significant non-adjusting events occurred after the reporting period[572](index=572&type=chunk) - The company has not disclosed a profit distribution plan[573](index=573&type=chunk) [Other Important Matters](index=134&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section discloses that two of the company's mines, Fule Lead-Zinc Mine and Derong Mining's Jinpo Lead-Zinc Mine, have suspended production due to expired mining licenses - Fule Lead-Zinc Mine suspended all production activities on March 7, 2024, due to an expired safety production license and had not resumed production as of June 30, 2025[582](index=582&type=chunk) - Derong Mining's Jinpo Lead-Zinc Mine suspended all mining activities on December 25, 2024, due to an expired mining license and had not resumed production as of June 30, 2025[583](index=583&type=chunk) [Notes to Major Items in the Parent Company's Financial Statements](index=136&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%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 section details key items from the parent company's financial statements, including long-term equity investments of RMB 1.38 billion and investment income of RMB 58.19 million Parent Company Accounts Receivable by Bad Debt Provision Method | Category | Book Balance (RMB Yuan) | Proportion (%) | Bad Debt Provision (RMB Yuan) | Provision Rate (%) | Book Value (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts receivable with provision for bad debts on a portfolio basis | 49,246,153.07 | 100.00% | 11,504,916.05 | 23.36% | 37,741,237.02 | Parent Company Other Receivables by Bad Debt Provision Method | Category | Book Balance (RMB Yuan) | Bad Debt Provision (RMB Yuan) | Book Value (RMB Yuan) | | :--- | :--- | :--- | :--- | | Individually assessed for bad debt | 56,383,498.26 | 0 | 56,383,498.26 | | Assessed for bad debt on a portfolio basis | 29,191,926.78 | 27,297,839.88 | 1,894,086.90 | | **Total** | **85,575,425.04** | **27,297,839.88** | **58,277,585.16** | Parent Company Long-term Equity Investments | Item | Closing Book Value (RMB Yuan) | Opening Book Value (RMB Yuan) | | :--- | :--- | :--- | | Investments in subsidiaries | 1,255,633,535.97 | 1,252,633,535.97 | | Investments in associates and joint ventures | 123,257,055.54 | 125,285,366.23 | | **Total** | **1,378,890,591.51** | **1,377,918,902.20** | Parent Company Operating Revenue and Costs | Item | Current Period Revenue (RMB Yuan) | Current Period Costs (RMB Yuan) | Prior Period Revenue (RMB Yuan) | Prior Period Costs (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 506,545,600.19 | 514,482,632.26 | 657,598,699.31 | 648,488,132.32 | | Other Business | 11,139,369.65 | 17,252,732.20 | 35,608,902.65 | 25,441,704.92 | | **Total** | **517,684,969.84** | **531,735,364.46** | **693,207,601.96** | **673,929,837.24** | Parent Company Investment Income | Item | Current Period Amount (RMB Yuan) | Prior Period Amount (RMB Yuan) | | :--- | :--- | :--- | | Long-term equity investment income under the equity method | 191,728.51 | -3,121,726.84 | | Profit distribution from subsidiaries | 58,000,000.00 | 38,000,000.00 | | **Total** | **58,191,728.51** | **34,878,273.16** | [Supplementary Information](index=148&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides details on non-recurring profit and loss, which totaled -RMB 26.73 million, and reports a weighted average return on equity of -10.27% Detailed Schedule of Current Non-recurring Profit and Loss | Item | Amount (RMB Yuan) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 62,300.21 | Asset disposal gains | | Government Grants Recognized in Current Profit or Loss | 615,421.15 | Other income | | Fair value gains/losses from financial instruments and their disposal, excluding effective hedging related to normal business operations | -4,581,795.70 | Losses recognized on some zinc products due to price declines after pricing | | Other non-operating income and expenses not listed above | -22,823,380.74 | Primarily penalties for illegal mining by three subsidiaries in Guizhou | | **Total** | **-26,727,455.08** | | Return on Equity and Earnings Per Share | Reporting Period Profit | Weighted Average Return on Equity (%) | Basic Earnings Per Share (RMB Yuan/Share) | Dilut

云南罗平锌电股份有限公司（以下简称"公司"）第八届董事会第二十八 次（临时）会议于 2025 年 8 月 25 日上午 9:00 以通讯表决方式召开，会议通 知及资料已于 2025 年 8 月 20 日以传真、电子邮件等方式发给各位董事，并通 过电话确认。公司实有董事 8 人，参加会议的董事 8 人。本次会议发放表决票 8 张，收回有效表决票 8 张，会议的召集、召开符合《公司法》、《公司章程》 的规定。 二、会议议案审议情况 1、会议以 8 票同意、0 票反对、0 票弃权，审议通过了关于《2025 年半年 度报告及摘要》的议案。 本议案已经董事会审计委员会审议通过。 具体内容详见同日披露在《中国证券报》、《证券时报》、《证券日报》、 《上海证券报》和巨潮资讯网(www.cninfo.com.cn)上的关于《2025 年半年度报 告》及《2025 年半年度报告摘要》（公告编号：2025-034）。 三、备查文件 证券代码：002114 证券简称：罗平锌电 公告编号：2025-033 云南罗平锌电股份有限公司 第八届董事会第二十八次（临时）会议决议公告 本公司及董事会全体成员保证公告内容的真实、准确、完整，不存 ...

Core Viewpoint - The non-ferrous metal sector is experiencing a strong rally, with notable gains in various companies following comments from the Federal Reserve Chairman regarding potential interest rate cuts [1] Company Performance - Northern Copper Industry has reached its daily limit increase - Jiangxi Copper, Silver Nonferrous, Electrical Alloy, and Yunnan Copper have all surged over 5% - Other companies such as Luoping Zinc & Electricity, Zijin Mining, Luoyang Molybdenum, and Yun Aluminum have also seen significant gains [1]

Group 1 - The metal zinc concept increased by 2.39%, ranking 9th among concept sectors, with 33 stocks rising, including Luoping Zinc Electric and *ST Zhengping hitting the daily limit [1] - Notable gainers in the zinc sector included Huaxi Nonferrous (up 8.21%), Huayu Mining (up 6.34%), and Zhuhai Group (up 5.36%) [1] - The sector saw a net inflow of 370 million yuan from main funds, with 23 stocks receiving net inflows, and 14 stocks exceeding 10 million yuan in net inflow [2] Group 2 - The top net inflow stock was Huayu Mining, with a net inflow of 212 million yuan, followed by Zijin Mining (146 million yuan), Hunan Gold (53 million yuan), and Luoping Zinc Electric (48 million yuan) [2] - The net inflow ratios for Luoping Zinc Electric, *ST Zhengping, and Zhihua Agriculture were 35.54%, 19.72%, and 15.13% respectively [3] - The trading volume and turnover rates for key stocks in the zinc sector were highlighted, with Luoping Zinc Electric showing a significant turnover rate of 5.38% [3][4]

Market Overview - The market experienced fluctuations with the ChiNext index leading the decline. The total trading volume in the Shanghai and Shenzhen markets was 1.51 trillion yuan, a decrease of 135 billion yuan compared to the previous trading day. Over 3,400 stocks fell, indicating a broad market downturn [1] - The Shanghai Composite Index fell by 0.06%, the Shenzhen Component Index by 0.66%, and the ChiNext Index by 1.71% [1] Sector Performance - Consumer stocks, particularly in the liquor sector, showed signs of rebound, with companies like Jiu Gui Jiu achieving two consecutive trading limits. Other liquor stocks such as She De Jiu Ye and Yi Li Te saw increases of over 5% [4][1] - The non-ferrous metal sector also performed well, with stocks like Luo Ping Zinc Electric and Dongfang Zirconium hitting their daily limits. The AI glasses concept stocks were active, with Ke Sen Technology achieving four consecutive trading limits [1][8] - High-position stocks experienced significant declines, with multiple stocks hitting their daily limits [1] Individual Stock Highlights - A total of 53 stocks hit their daily limits (excluding ST and newly listed stocks), with a limit-up rate of 68%. Notable stocks included Ke Sen Technology with four consecutive limits and Yuan Lin Shares with three consecutive limits [1] - In the consumer sector, Jiu Gui Jiu and other liquor stocks showed strong performance, indicating a potential recovery in consumer sentiment [4][1] Investment Insights - According to CITIC Securities, the liquor industry is rapidly bottoming out, with leading companies likely to benefit from channel adjustments and market expansion if consumer demand improves [4] - The tourism and hotel sectors also showed strength, with stocks like Xi'an Catering and Quanjude hitting their daily limits, indicating a recovery in travel-related consumption [4] AI and Technology Developments - The Shanghai Municipal Economic and Information Commission announced an implementation plan to accelerate the development of "AI + manufacturing," which includes promoting AI glasses and other smart consumer terminals [15][23] - AI glasses concept stocks are gaining traction, with companies like Xingxing Technology and Sanan Optoelectronics seeing significant price increases [12][24]

Group 1 - The industrial metal sector increased by 1.29% on August 20, with Luoping Zinc Electric leading the gains [1] - The Shanghai Composite Index closed at 3766.21, up 1.04%, while the Shenzhen Component Index closed at 11926.74, up 0.89% [1] - Luoping Zinc Electric's stock price rose by 10.03% to 8.01, with a trading volume of 174,000 shares and a transaction value of 135 million yuan [1] Group 2 - The industrial metal sector saw a net outflow of 49.2164 million yuan from institutional funds, while retail investors contributed a net inflow of 415 million yuan [2] - The top gainers in the industrial metal sector included Jin Tian Co., which saw a 9.99% increase, and Yi An Technology, which rose by 7.54% [1][2] - The trading volume and transaction values for several stocks in the sector were significant, with Jin Tian Co. achieving a transaction value of 5.76 billion yuan [1][2] Group 3 - The net inflow from retail investors for Luoping Zinc Electric was 47.4183 million yuan, while it experienced a net outflow of 21.3563 million yuan from speculative funds [3] - The data indicates a mixed sentiment among different investor types, with institutional investors pulling back while retail investors increased their positions [3] - The overall trading activity in the industrial metal sector reflects a dynamic market environment, with varying performances across different stocks [3]

Group 1 - The Science and Technology Innovation 50 Index rose over 3%, reaching a new high for the year, driven by a collective surge in chip stocks [1] - Companies such as Jimin Health, Hanzhong Precision Machinery, and Kesen Technology have seen consecutive trading gains, with Jimin Health achieving a five-day streak [1] - The AI server market is dominated by Inspur Information, which holds over 50% market share in China and has reported a 64.39% year-on-year increase in net profit for the first quarter [1] Group 2 - The domestic leading companies are making significant advancements, with Nvidia reportedly developing an AI chip specifically for the Chinese market [3] - Companies like Fullchai Power and Yuanlin Co. have also seen consecutive trading gains, indicating strong market performance [3] - The company Guangxin Technology is a leader in optical modules and has partnered with Cisco to launch a 1.6T silicon optical module [3] Group 3 - The domestic automotive sector is witnessing significant developments, with China FAW planning to acquire approximately 10% of Leap Motor [6] - Companies like Mould Technology and Shentong Express are also making strides, with Mould Technology providing components for new energy vehicles [6] - The automotive thermal management sector is led by companies like Hanzhong Precision Machinery, which specializes in compressors and refrigeration products [8] Group 4 - The pharmaceutical industry is seeing a surge in domestic innovative drugs going global, with Tianmu Pharmaceutical being the first listed company in traditional Chinese medicine [7] - Companies like Huahai Pharmaceutical are advancing in the development of innovative drugs, with over 20 projects currently in research [7] - The automotive passive safety system sector is represented by companies like Songyuan Safety, which reported a 30.85% year-on-year increase in net profit [7]

Market Overview - The market experienced fluctuations with the Shanghai Composite Index down by 0.06%, the Shenzhen Component down by 0.66%, and the ChiNext Index down by 1.71% as of the midday close [1][2] Sector Performance - Despite the overall market decline, liquor stocks showed resilience, with JiuGuiJiu achieving two consecutive trading limits [1] - The non-ferrous metal sector saw strong performance, with stocks like Luoping Zinc and Yunnan Zinc Industry hitting the daily limit [1] - AI glasses concept stocks were active, with Kosen Technology achieving four consecutive trading limits [1] - Conversely, the CRO sector experienced adjustments, while communication equipment and fintech sectors faced the largest declines [1] Concept Index Performance - The top-performing concept indices included Plant Lighting (up 4.46%), 3D Glass (up 2.81%), and AI Glasses (up 2.33%) [3] - Underperforming sectors included F5G concept (down 2.29%), Hepatitis concept (down 2.40%), and Web3.0 (down 2.46%) [3]

Market Overview - The A-share market showed weakness in the morning of August 20, with the ChiNext index dropping over 2% before recovering slightly, while the Shanghai Composite Index rose by 0.04% and the Shenzhen Component Index fell by 0.53% [1][2] Sector Performance - The liquor sector experienced strong gains, with stocks like JiuGuiJiu hitting the daily limit, followed by SheDeJiuYe, JinZhongZiJiu, and GuJingGongJiu [5][6] - Basic metals and energy equipment sectors also showed strength, while software, internet, and biotechnology sectors faced adjustments [2][3] Liquor Industry Insights - Citic Securities noted that the liquor industry is rapidly bottoming out, with leading companies likely to seize opportunities to adjust channel structures and enhance market development capabilities [7] - If consumer demand gradually warms up, leading liquor companies that have made proactive adjustments are expected to benefit [7] Metals Sector Insights - The non-ferrous and minor metals sectors saw significant gains, with companies like LuoPingZinc and YunNanZhiYe hitting the daily limit [9][10] - Huatai Securities highlighted the strategic significance of rare earths in the context of "de-globalization," with increasing market optimism regarding rare earth prices and company performance [11]

Market Overview - A-shares showed weakness in the morning session, with the ChiNext Index dropping over 2% at one point, but later rebounded slightly, with the Shanghai Composite Index up 0.04% and the Shenzhen Component down 0.53% [2][3] Sector Performance - Strong performance in the liquor sector, with stocks like Guizhou Moutai and Wuliangye seeing significant gains. Basic metals, aviation, and energy equipment sectors also showed strength, while software, internet, and biotechnology sectors experienced fluctuations [7][10][13] - The liquor industry is reportedly in a rapid bottoming phase, with leading companies adjusting channel structures and enhancing market development capabilities, potentially benefiting from a gradual recovery in consumption [13] Stock Highlights - Notable gainers in the liquor sector included: - JiuGui Jiu (涨停) [10] - SheDe JiuYe (涨幅 6.54%) [12] - GuoJing Gong Jiu (涨幅 4.82%) [12] - In the basic metals sector, companies like: - LuoPing Zinc Electric (涨幅 10.03%) [16] - YunNan GeYuan (涨幅 9.99%) [16] - DongFang ZuoYe (涨幅 10.01%) [16] Strategic Insights - The strategic significance of rare earth metals is increasing amid "de-globalization," with the U.S. Department of Defense acquiring a stake in MP Materials and China implementing export controls to combat illegal exports [17]