Financial Performance - The company achieved operating revenue of RMB 84.82 billion, a year-on-year increase of 81%[3] - Net profit attributable to shareholders reached RMB 2.41 billion, up 139% year-on-year; net profit after deducting non-recurring gains and losses was RMB 1.40 billion, an increase of 176%[4] - EBITDA totaled RMB 7.1 billion, reflecting a 120% growth compared to the previous year[3] - The company reported a net cash flow from operating activities of RMB 1.32 billion, a decrease of 68.98% year-on-year[4] - The company reported a total profit of RMB 4.36 billion, a remarkable increase of 1,144.33% compared to RMB 350.52 million last year[63] - The company's net profit increased from RMB 1,002 million in the first half of 2020 to RMB 2,833 million in the first half of 2021, representing a growth of 182.73%[68] - Operating revenue rose by 81.45% from RMB 46,744 million in the first half of 2020 to RMB 84,816 million in the first half of 2021[69] - Gross profit surged to RMB 8,999 million, a significant increase of 1,181.91% compared to RMB 702 million in the same period last year[69] Cost Management - The company reduced production and operational costs by over RMB 360 million across its mining segments, with significant reductions in the Congo (USD 30 million) and Brazil (USD 8 million)[3] - Total operating costs amounted to RMB 77.69 billion, reflecting a 62.01% increase from RMB 47.95 billion year-on-year[63] - The company achieved a reduction in production operating costs exceeding RMB 360 million year-on-year, with the Congo (Kinshasa) copper-cobalt segment reducing cash costs by approximately USD 30 million[48] Market Conditions - The average price of molybdenum oxide in the international market rose by 40.77% to USD 12.74 per pound compared to the previous year[13] - Cobalt prices experienced fluctuations in H1 2021, with supply chain issues in Q1 leading to low inventory levels in China, while demand is expected to rise in the second half of the year[17] - Molybdenum demand in China increased by 25.17% YoY, driven by a 100%+ YoY growth in earnings of 17 listed steel companies, with molybdenum prices reaching around RMB 160,000/ton[19] - The global phosphate market saw prices increase by over 80% in H1 2021, with MAP prices in Brazil rising from $405-$410/ton to $753-$758/ton[26] - In the first half of 2021, copper prices experienced significant volatility, with LME prices reaching $10,747 per ton in March, a 38% increase from the end of 2020[28] Production and Operations - The company produced 98,149 tons of copper metal, 7,010 tons of cobalt metal, and 7,999 tons of molybdenum metal, with production guidance for copper ranging from 187,300 to 228,900 tons[42] - The company successfully launched the 10K project in Congo (Kinshasa) and completed the expansion project in Australia, enhancing production capacity[44] - The TFM copper-cobalt mine in the Democratic Republic of Congo is one of the largest and highest-grade copper-cobalt mines globally, with an area exceeding 1,500 square kilometers, solidifying the company's position in the new energy materials sector[100] Strategic Initiatives - The company signed a strategic cooperation agreement with Contemporary Amperex Technology Co., Ltd., becoming a long-term supplier of cobalt products for the world's largest power battery manufacturer[49] - The company is actively seeking and investing in high-quality projects in Africa, South America, and Southeast Asia, focusing on resources related to the new energy industry and domestic shortages[53] - The company is committed to enhancing its ESG leadership by developing short-term and long-term environmental goals and improving its sustainable development governance model[54] Financial Position - The company maintained a strong balance sheet with cash and cash equivalents of RMB 19.4 billion and unused credit facilities exceeding RMB 120 billion[3] - Total current assets increased by 10.09% to CNY 63,015,732,860.82 from CNY 57,239,645,671.56[58] - Total assets reached CNY 127,008,283,015.83, up 3.73% from CNY 122,441,249,889.87[62] - Total liabilities increased by 6.57% to CNY 80,042,640,406.79 from CNY 75,106,394,886.46[62] Employee and Governance - The company is establishing a multi-level compensation incentive system, including short-term and long-term incentives, to cover more core employees and enhance talent reserves[56] - The company’s management structure was upgraded, completing the election of a new board and enhancing operational efficiency[45] - The company has adhered to the corporate governance code as per the Hong Kong Listing Rules during the reporting period[135] Research and Development - Research and development expenses rose to RMB 64.36 million, up 42.16% from RMB 45.28 million year-on-year[63] - The company has a strong R&D team and has achieved multiple technological innovations, including the development of a smart energy management system for electric mining trucks, which won a first-class award in China[102] Risk Management - The company is actively monitoring global economic recovery uncertainties and potential risks associated with its overseas investments in various countries[105] - The company utilizes various derivative instruments for risk management, including commodity futures and forward contracts, to mitigate price volatility risks[181]
洛阳钼业(03993) - 2021 - 中期财报