紫金矿业(601899) - 2024 Q2 - 季度财报

Definitions This chapter primarily defines company entity abbreviations and common terms used in the report, providing a foundation for understanding its content - This chapter primarily defines company entity abbreviations and common terms used in the report, providing a foundation for understanding its content[8] Company Profile and Key Financial Indicators This section provides an overview of the company's fundamental information and highlights its robust financial performance, including significant growth in net profit and optimized asset structure Company Information This chapter provides basic company information, including Chinese and English names, legal representative, contact details, registered and office addresses, information disclosure channels, and A-share and H-share stock profiles - The company's legal representative is Zou Laichang[9] Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Zijin Mining | 601899 | | H-share | The Stock Exchange of Hong Kong Limited | Zijin Mining | 2899 | Key Accounting Data and Financial Indicators During the reporting period, the company achieved strong performance growth, with net profit attributable to parent company increasing by 46.42% to 15.084 billion Yuan, and non-recurring net profit increasing by 59.84% Key Accounting Data (H1 2024) | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 150,416,514,457 Yuan | 150,333,695,834 Yuan | 0.06% | | Total Profit | 21,587,689,525 Yuan | 15,545,039,647 Yuan | 38.87% | | Net Profit Attributable to Shareholders of Listed Company | 15,084,385,658 Yuan | 10,302,151,544 Yuan | 46.42% | | Net Profit Attributable to Parent Company (Excluding Non-recurring Items) | 15,432,981,734 Yuan | 9,655,314,949 Yuan | 59.84% | | Net Cash Flow from Operating Activities | 20,446,829,834 Yuan | 16,027,707,277 Yuan | 27.57% | | Asset Status | End of Current Reporting Period | End of Prior Year | Period-end vs. Prior Year-end Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 126,441,969,540 Yuan | 107,505,943,323 Yuan | 17.61% | | Total Assets | 368,876,382,001 Yuan | 343,005,706,012 Yuan | 7.54% | Key Financial Indicators (H1 2024) | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.574 | 0.391 | 46.80% | | Weighted Average Return on Net Assets (%) | 12.98% | 10.76 | Increased by 2.22 percentage points | - During the reporting period, total non-recurring gains and losses amounted to -349 million Yuan, primarily due to fair value changes in financial assets and liabilities held by non-financial enterprises[16] Management Discussion and Analysis This section provides an in-depth analysis of the company's operating performance, industry trends, resource reserves, project advancements, and financial health, highlighting strategic achievements and future outlook Industry Landscape and Operating Performance Despite global macroeconomic fluctuations, gold and copper prices reached historical highs during the reporting period, with the company achieving a strong start to its new five-year journey through quality improvement, cost control, and efficiency enhancement, resulting in 21.6 billion Yuan in total profit and 15.1 billion Yuan in net profit attributable to the parent company, up 38.9% and 46.4% respectively - The global macroeconomic environment progressed with twists and turns, metal prices fluctuated significantly, with gold and copper prices reaching historical highs in Q2, and gold's value preservation and safe-haven attributes gaining further market recognition[18] Comparison of Average Prices for Major Metals in H1 2024 | Mineral Type | Market | Unit | H1 2024 Average Price | H1 2023 Average Price | YoY Average Price Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Gold | LME Gold | USD/ounce | 2,203 | 1,932 | 14.0% | | Gold | Domestic | Yuan/g | 521 | 434 | 20.0% | | Copper | LME Copper | USD/ton | 9,206 | 8,729 | 5.5% | | Copper | Domestic | Yuan/ton | 74,668 | 67,900 | 10.0% | | Zinc | LME Zinc | USD/ton | 2,676 | 2,828 | -5.4% | - The company's performance indicators reached new highs, with total profit of 21.6 billion Yuan (up 38.9% YoY), net profit attributable to the parent company of 15.1 billion Yuan (up 46.4% YoY), and non-recurring net profit attributable to the parent company of 15.43 billion Yuan (up 59.8% YoY)[21] - Cost control achieved phased results, with sales costs for copper concentrate and gold concentrate decreasing by 8.8% and 6.7% month-on-month, respectively, during the reporting period[21] Resource Reserves The company achieved significant exploration breakthroughs, adding 18.377 million tons of copper resources at Julong Copper Mine and Heilongjiang Tongshan Copper Mine, further enhancing total resource reserves to 104.67 million tons of copper, 3,528 tons of gold, and 14.11 million tons of lithium (LCE) by the end of the reporting period - Julong Copper Mine and Heilongjiang Tongshan Copper Mine achieved significant geological exploration results, adding a total of 18.377 million tons of copper resources and 5.777 million tons of copper reserves, accounting for approximately 14.2% of China's copper reserves at the end of 2022[22] Major Mineral Resource and Reserve Volumes as of June 30, 2024 | Mineral Type | Total Resources (10,000 tons) | Total Reserves (10,000 tons) | Reserve to Resource Ratio | | :--- | :--- | :--- | :--- | | Copper Ore | 10,466.84 | 4,382.31 | 42% | | Gold Ore (tons) | 3,527.96 | 1,322.28 | 37% | | Lithium Carbonate (LCE 10,000 tons) | 1,411.28 | 505.39 | 36% | | Silver (tons) | 28,380.36 | 2,653.26 | 9% | | Zinc Ore (10,000 tons) | 1,081.42 | 446.96 | 41% | Project Construction and Technological Innovation The company steadily advanced several major growth projects, with Kamoa Copper Mine Phase III commencing production six months ahead of schedule, poised to become Africa's largest copper mine upon full capacity, while also establishing a central research institute to achieve breakthroughs in caving technology and new materials, and making new strides in digital transformation and smart mine construction - Kamoa Copper Mine Phase III concentrator was completed and put into operation six months ahead of schedule, with annual copper production expected to exceed 600,000 tons upon full capacity, becoming Africa's largest and the world's third-largest copper mine[24] - The Salobo Gold Mine's 2.4 million tons/year mining and processing and 5 tons/year gold smelting project was completed and put into operation as scheduled[24] - The company established the Zijin Central Research Institute to strengthen technological innovation, receiving the National Science and Technology Progress Award Second Prize for "New Generation Green and Efficient Extraction Technology and Application of Precious Metals"[24] ESG, Financing, and Shareholder Returns The company continuously improved its global operational management system and actively fulfilled social responsibilities, completing its largest equity financing to date by issuing $500 million in H-shares and $2 billion in convertible bonds, receiving widespread market recognition, and has distributed a cumulative 47.8 billion Yuan in dividends since listing - The company completed its largest equity financing since its establishment, successfully issuing $500 million in H-shares and $2 billion in convertible bonds to overseas investors, totaling approximately 18.1 billion Yuan, and receiving several times oversubscription[26] - During the reporting period, the company successively implemented 5.27 billion Yuan in 2023 annual cash dividends and 2.66 billion Yuan in 2024 interim dividends, with cumulative dividends since listing reaching 47.8 billion Yuan[26] - Actively fulfilling social responsibilities, the company donated 11 million Yuan to Shanghang and Wuping for the "6.16" torrential rains and partnered with Barrick to support $1 million for disaster relief and reconstruction in Papua New Guinea[25] Core Competencies and Future Planning Technological innovation is the company's core competency, possessing full-chain independent system technology, and its new five-year plan aims to achieve the original 2030 targets by 2028, with copper production reaching 1.5-1.6 million tons and gold 100-110 tons, positioning key economic indicators among the global top 3-5 - The company's core competency is innovation, especially technological innovation, possessing full-chain independent system technology and engineering implementation capabilities[27] Major Mineral Product Output Plan for the Next Five Years (until 2028) | Mineral Type | 2028 Annual Output Plan | | :--- | :--- | | Copper | 1.5-1.6 million tons | | Gold | 100-110 tons | | Zinc (Lead) | 550,000-600,000 tons | | Silver | 600-700 tons | | Lithium (LCE) | 250,000-300,000 tons | | Molybdenum | 25,000-35,000 tons | Business Segment Operating Performance Discussion During the reporting period, the company's major mineral product output grew steadily, with mine-produced copper reaching 519,000 tons (up 5.3% YoY) and mine-produced gold 35.4 tons (up 9.5% YoY), while the lithium business adopted a low-cost operating strategy, and clean energy generation increased by 60% YoY Copper Business During the reporting period, mine-produced copper reached 518,570 tons, a 5.3% increase year-on-year, with copper business sales revenue accounting for 29% of total operating revenue and gross profit for 49.1% of the group's gross profit Major Copper Mine Production in H1 2024 | Name | Equity Held by Group | Mine-produced Copper (tons) | Attributable Copper (tons) | | :--- | :--- | :--- | :--- | | Zijin Mining Serbia | 100% | 90,008 | 90,008 | | Kamoa Copper (DRC) (Equity) | 44.47% | 83,593 | 83,593 | | Tibet Julong Copper | 50.10% | 80,758 | 40,460 | | Total | | 518,570 | 425,171 | Gold Business During the reporting period, mine-produced gold reached 35,406 kilograms (approximately 35.4 tons), a 9.5% increase year-on-year, with gold business sales revenue accounting for 46.5% of total operating revenue and gross profit for 28.3% of the group's gross profit Major Gold Mine Production in H1 2024 | Name | Equity Held by Group | Mine-produced Gold (kilograms) | Attributable Gold (kilograms) | | :--- | :--- | :--- | :--- | | Buriticá, Colombia | 69.28% | 5,002 | 3,465 | | Norton Gold Fields, Australia | 100% | 3,817 | 3,817 | | Rosebel, Suriname | 95% | 3,741 | 3,554 | | Total | | 35,406 | 29,886 | Zinc (Lead) Business During the reporting period, mine-produced zinc concentrate contained 200,083 tons of zinc, and mine-produced lead concentrate contained 21,862 tons of lead, with zinc (lead) business sales revenue accounting for 3.4% of total operating revenue and gross profit for 4.2% of the group's gross profit Major Zinc (Lead) Mine Production in H1 2024 | Name | Equity Held by Group | Mine-produced Zinc + Lead Total (tons) | Attributable Zinc + Lead Total (tons) | | :--- | :--- | :--- | :--- | | Xinjiang Zijin Zinc | 100% | 82,412 | 82,412 | | Bisha, Eritrea | 55% | 56,559 | 31,107 | | Wulatehouqi Zijin | 95% | 31,940 | 30,343 | | Total | | 221,945 | 180,048 | Silver and Other Businesses During the reporting period, mine-produced silver reached 210,252 kilograms, a 1.3% increase year-on-year, while the lithium business adopted a low-cost operating strategy amid market oversupply, and sales revenue from other products like iron, molybdenum, tungsten, and cobalt accounted for 20.1% of total revenue - Mine-produced silver reached 210,252 kilograms, a 1.3% increase year-on-year, with silver business sales revenue accounting for 1% of total operating revenue and gross profit for 2.2% of the group's gross profit[33] - Facing global lithium market oversupply and weak prices, the company reinforced its low-cost operating strategy for the lithium business, prudently controlling the construction progress and production pace of the "Two Lakes and Two Mines" lithium projects[35] - Sales revenue from other products such as iron, molybdenum, tungsten, cobalt, and sulfuric acid accounted for 20.1% of total operating revenue (after offset) during the reporting period, with product gross profit accounting for 16.2% of the group's gross profit[36] Clean Energy Generation During the reporting period, the company's renewable energy generation reached 351 million kWh, a 60% increase year-on-year, with solar power generation notably increasing by 332%, as the company advanced its "Environmental Protection + New Energy" dual-driven strategy and accelerated the deployment of wind and solar green power projects at mines Renewable Energy Generation in H1 2024 | Generation Type | Current Reporting Period Cumulative Generation (MWh) | Prior Year Period (MWh) | YoY Growth Rate | | :--- | :--- | :--- | :--- | | Solar Power | 56,223 | 13,002 | 332% | | Hydropower | 206,174 | 143,160 | 44% | | Total | 351,561 | 219,910 | 60% | Main Business Financial Analysis Operating revenue for the reporting period was 150.4 billion Yuan, largely flat year-on-year, while the comprehensive gross profit margin increased by 4.5 percentage points to 19.2% (mineral products gross profit margin reached 57.3%) due to rising metal prices and cost control, with finance expenses decreasing due to exchange rate fluctuations and investment income rising from subsidiary disposals - During the reporting period, the company achieved operating revenue of 150.4 billion Yuan, a 0.06% increase year-on-year, essentially flat compared to the same period last year[39] Changes in Gross Profit Margin of Major Mineral Products | Product Name | Jan-Jun 2024 Gross Profit Margin (%) | Jan-Jun 2023 Gross Profit Margin (%) | Jul-Dec 2023 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | | Mine-produced Gold - Gold Concentrate | 67.75 | 58.37 | 57.73 | | Mine-produced Copper - Copper Concentrate | 66.97 | 60.55 | 58.42 | | Mine-produced Zinc | 34.85 | 23.46 | 20.27 | | Comprehensive Gross Profit Margin of Mining Enterprises | 57.30 | 51.75 | 46.66 | | Comprehensive Gross Profit Margin | 19.15 | 14.65 | 17.02 | - The company's comprehensive gross profit margin was 19.2%, an increase of 4.5 percentage points year-on-year; the gross profit margin for mineral products was 57.3%, an increase of 5.6 percentage points year-on-year, primarily benefiting from increased production and sales of mine-produced copper and gold, rising metal sales prices, and cost control[41] - Finance expenses decreased by 7.79% year-on-year, mainly due to changes in exchange gains and losses[42] Investment income increased by 35.07% year-on-year, primarily due to increased gains from subsidiary disposals in the current period[42] Fair value change gains turned from positive to negative, mainly due to fair value changes in deferred pricing arrangements and trading equity instruments[43] Asset and Liability Analysis As of the end of the reporting period, the company's total assets reached 368.9 billion Yuan, a 7.54% increase from the beginning of the period, with cash and cash equivalents significantly increasing by 36.54% due to H-share and convertible bond issuance, and bonds payable also rising by 53.61%, while overseas assets accounted for 46% of total assets, demonstrating the deep layout of the company's globalization strategy Changes in Major Balance Sheet Items | Item Name | Current Period End Amount | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 25,190,025,947 Yuan | 36.54% | Primarily due to the issuance of H-shares and convertible bonds | | Bonds Payable | 38,842,067,125 Yuan | 53.61% | Primarily due to the issuance of convertible corporate bonds | | Other Comprehensive Income | 12,854,482,504 Yuan | 43.46% | Primarily due to floating profits from equity instruments measured at fair value | - The company's globalization strategy is deeply laid out, with overseas assets reaching 171.1 billion Yuan, accounting for 46% of total assets[45] Major overseas mines such as Kamoa Copper Mine and Čukaru Peki Copper-Gold Mine are important sources of profit growth for the group[46] Investment Status Analysis The company continued to advance major project investments, including Kamoa Phase III mining and processing, Zijin Copper Serbia technological upgrades, and Julong Copper Phase II, aiming to enhance future production capacity, while also engaging in asset management and risk hedging through private equity funds and derivative investments Progress of Major Non-Equity Investment Projects | Project Name | Project Amount | Project Progress | Investment in Current Reporting Period (billion Yuan) | Cumulative Actual Investment (billion Yuan) | | :--- | :--- | :--- | :--- | :--- | | Kamoa Phase III Mining and Processing Project | $1.858-1.998 billion | Trial production started in May, 6 months ahead of schedule | 4.276 | 9.800 | | Julong Copper Phase II Expansion Project | 17.46 billion Yuan | Concentrator and tailings dam construction commenced | 2.386 | 3.183 | | Lithium Cos 3Q Salt Lake Lithium Project Phase I | $620 million | Processing plant sub-project expected to be completed and put into operation in September | 0.886 | 3.863 | - The company invests in private equity and venture capital funds and manages assets through its wholly-owned subsidiaries, with two private equity funds collectively achieving a net profit of 35.23 million Yuan during the reporting period[50] - To hedge against commodity price, interest rate, and exchange rate risks, the company conducted derivative investment activities for hedging purposes[51] Additionally, authorized financial subsidiaries also engaged in limited speculative derivative investments[52] Industry Landscape and Risk Analysis Global economic downturn pressures coexist with the development of new energy and AI industries, leading to differentiated metal demand, with the company anticipating precious metals to benefit from safe-haven demand, copper facing medium-to-long-term supply shortages, and lithium experiencing short-term oversupply, while key risks include geopolitical factors, overseas operational uncertainties, lower-than-expected resource exploration, and production safety - Industry Trends: - Copper: Short-term wide fluctuations, with medium-to-long-term supply shortages unchanged due to clean energy and AI development - Gold: Interest rate cut expectations and geopolitical risks boost safe-haven demand, expected to maintain high-level fluctuations - Zinc: Tight supply but limited demand growth, expected to stabilize within a range - Lithium: Short-term oversupply situation has not reversed, price decline may continue, but medium-to-long-term demand potential remains significant[54] - Risks Faced by the Company: - Geopolitical Risks: Rising resource nationalism may affect metal prices and overseas mergers and acquisitions - Overseas Operational Risks: Significant political, legal, and community differences in project host countries lead to uncertainties - Resource Development Risks: New resources may fall short of expectations, and development cost control presents challenges - Safety and Operational Risks: Safety incidents may occur due to management, personnel, or natural disasters, with some projects facing pressures from dual carbon reduction and permit processing[55] Corporate Governance This section details the company's governance structure, including general meetings, profit distribution, and equity incentive plans, demonstrating its commitment to shareholder returns and employee motivation General Meetings and Profit Distribution The company held its 2023 Annual General Meeting and other meetings on May 17, 2024, and the Board of Directors approved the 2024 interim profit distribution plan, proposing a cash dividend of 1 Yuan (tax inclusive) per 10 shares to all shareholders, totaling approximately 2.66 billion Yuan - The company held its 2023 Annual General Meeting, the first 2024 A-share Class Meeting, and H-share Class Meeting on May 17, 2024[57] - The 2024 interim profit distribution plan proposes a cash dividend of 1 Yuan (tax inclusive) per 10 shares, totaling 2,657,788,894 Yuan (tax inclusive)[58] Equity Incentive Plans During the reporting period, the company continued to advance various employee incentive measures, with the second unlocking period conditions for the first grant of the 2020 Restricted Stock Incentive Plan being met and completed for listing and circulation, while the 2023 Stock Option Incentive Plan and 2023 Employee Stock Ownership Plan also completed grant registration and share transfer - The second unlocking period conditions for the first grant of the 2020 Restricted Stock Incentive Plan were met, with 30,211,698 shares involving 652 incentive recipients unlocked and listed for circulation on February 2, 2024[59] - The 2023 Employee Stock Ownership Plan completed share transfer on April 16, 2024, with 42.2 million repurchased company shares transferred to the employee stock ownership plan's securities account at a price of 8.35 Yuan/share[60] Environmental and Social Responsibility This section outlines the company's commitment to environmental protection and social welfare, detailing its efforts in carbon reduction, ecological restoration, and community contributions Environmental Information During the reporting period, 27 domestic branches/subsidiaries were designated as key environmental monitoring units, with environmental treatment facilities operating stably and transparent pollutant emission information, while the company actively promoted carbon reduction through product carbon footprint accounting, energy structure transformation (e.g., "oil-to-electricity"), and clean energy projects, adding approximately 409 MW of photovoltaic installed capacity and achieving a reduction of approximately 55,000 tons of carbon dioxide - During the reporting period, 27 domestic branches/subsidiaries of the company were listed as key environmental monitoring units, with all environmental treatment facilities operating stably, and pollutant emission information available in the appendix[62][63] - The company invested 667 million Yuan in environmental and ecological funds, restored 2.7055 million square meters of vegetation, and added 2 provincial-level green mines[67] - In terms of carbon reduction, the company promoted product carbon footprint accounting, with Zijin Copper's cathode copper product carbon footprint at an international leading level[68] During the reporting period, approximately 409.3 MW of new photovoltaic installed capacity was added, with cumulative power generation of approximately 56.22 million kWh, achieving a reduction of approximately 55,000 tons of carbon dioxide[70] - The company actively promoted energy structure transformation, introducing 183 electric mining trucks, 6 electric shovels, and LNG mining trucks during the reporting period[71] Social Responsibility Adhering to the principle of "developing mining, benefiting society," the company actively fulfilled its social responsibilities, investing approximately 72.91 million Yuan in rural revitalization funds during the reporting period, and continuously contributing to educational, social, and ecological revitalization, including establishing Zijin Middle School, implementing relief projects for elderly and orphans, and donating to support ecological restoration - During the reporting period, the company, in conjunction with the Zijin Mining Charity Foundation, cumulatively invested approximately 72.91 million Yuan in rural revitalization funds[72] - Educational Revitalization: Shanghang County Zijin Middle School, established with an investment of over 800 million Yuan, achieved a 94.61% undergraduate admission rate for its first graduating class in the college entrance examination[73] - Social Contribution: For fourteen consecutive years, the company has implemented relief projects for elderly residents over 80 and orphans in Shanghang County, donating over 20 million Yuan annually and benefiting over 16,000 people[74] Significant Matters This section covers key corporate actions and disclosures, including commitments, related party transactions, material contracts, guarantees, and the utilization of raised funds Commitments and Related Party Transactions During the reporting period, the controlling shareholder, Minxi Xinghang State-owned Assets Investment and Management Co., Ltd., strictly fulfilled its commitment to avoid horizontal competition, and the company's daily related party transactions with Zijin Tianfeng Futures Co., Ltd. were conducted within authorized limits, with deposit business with related financial companies also disclosed - The controlling shareholder, Minxi Xinghang State-owned Assets Investment and Management Co., Ltd., strictly fulfilled its commitment to avoid horizontal competition made when the company listed its A-shares in 2008[77] - The company expects daily related party transactions with Zijin Tianfeng Futures Co., Ltd. to amount to 2.113 billion Yuan in 2024, with actual transaction value of 65,000 Yuan (excluding tax) during the current reporting period[78] Material Contracts and Guarantees As of the end of the reporting period, the company's total guarantees amounted to 38 billion Yuan, representing 30% of its net assets, with 35.86 billion Yuan guaranteed for subsidiaries and 2.14 billion Yuan for associates, and 19.37 billion Yuan in debt guarantees provided for guaranteed entities with an asset-liability ratio exceeding 70% Guarantee Status at the End of the Reporting Period | Guarantee Category | Amount (Yuan) | | :--- | :--- | | Guarantee Balance for Associates at Period End (A) | 2,140,489,830 | | Guarantee Balance for Subsidiaries at Period End (B) | 35,863,455,578 | | Total Guarantees (A+B) | 38,003,945,408 | | Ratio of Total Guarantees to Company's Net Assets (%) | 30% | | Debt Guarantee Amount Provided for Guaranteed Entities with Asset-Liability Ratio Exceeding 70% (D) | 19,372,684,833 | Use of Raised Funds The 6 billion Yuan raised from the convertible bonds issued by the company in 2020 has been substantially utilized, with a cumulative investment progress of 99.93%, and during the reporting period, the company reallocated 770 million Yuan of surplus funds from the "Kamoa Copper Mine Project in DRC" to the "Aurora Gold Mine Underground Mining Phase I Project in Guyana" - The 6 billion Yuan convertible bonds issued in 2020, with a net amount of 5.97 billion Yuan after deducting issuance expenses, had a cumulative investment of 5.966 billion Yuan as of the end of the reporting period, with an investment progress of 99.93%[82] - During the reporting period, there was a change in the use of raised funds, with 770 million Yuan (including interest) of surplus funds from the "Kamoa-Kakula Copper Mine Project of Kamoa Holding Limited in DRC" reallocated to the "Aurora Gold Mine Underground Mining Phase I Project in Guyana"[83] Share Changes and Shareholder Information This section details changes in the company's share capital, provides an overview of its shareholder structure, and reports on shareholding changes among directors, supervisors, and senior management Share Capital Changes During the reporting period, the company's total share capital increased from 26.327 billion shares to 26.578 billion shares, primarily due to the completion of a 252 million new H-share placement, the repurchase and cancellation of 582,300 shares under an equity incentive plan, and the unlocking and listing of 30.21 million restricted shares - The company's total share capital increased from 26,326,571,240 shares to 26,577,888,940 shares[84] - Reasons for share capital changes include: - Completion of 251,900,000 new H-share placement - Repurchase and cancellation of 582,300 restricted shares that did not meet conditions - 30,211,698 restricted shares unlocked and listed for circulation[85] Shareholder Information As of the end of the reporting period, the company had 352,521 common shareholders, with the top two shareholders being Minxi Xinghang State-owned Assets Investment and Management Co., Ltd. (holding 22.89%) and HKSCC Nominees Limited (holding 22.48%), indicating a relatively concentrated shareholding structure - As of the end of the reporting period, the company had a total of 352,521 common shareholders[87] Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End | Percentage (%) | | :--- | :--- | :--- | | Minxi Xinghang State-owned Assets Investment and Management Co., Ltd. | 6,083,517,704 | 22.89 | | HKSCC Nominees Limited | 5,974,179,970 | 22.48 | | Hong Kong Securities Clearing Company Limited | 1,590,149,164 | 5.98 | | China Securities Finance Corporation Limited | 691,190,770 | 2.60 | Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, the company implemented the 2023 Employee Stock Ownership Plan, transferring 42.2 million repurchased shares to the plan, with several directors and senior management participating in the subscription, including Chairman Chen Jinghe subscribing for 270,000 shares and Vice Chairman and President Zou Laichang for 225,000 shares - The company's directors and senior management subscribed for a total of 2.195 million shares through the 2023 Employee Stock Ownership Plan, accounting for 5.20% of the total allocation[93][94][95] Bond-Related Information This section provides an overview of the company's outstanding corporate bonds and debt financing instruments, details the use of raised funds, analyzes the debt situation, and outlines the terms of its convertible corporate bonds Corporate Bonds and Debt Financing Instruments As of the end of the reporting period, the company's outstanding corporate bonds amounted to 12.5 billion Yuan, and non-financial enterprise debt financing instruments totaled 14.45 billion Yuan, with a new 2 billion Yuan technology innovation corporate bond ("24 Zijin K1") issued during the period - As of the end of the reporting period, the company's outstanding corporate bonds (including enterprise bonds) amounted to 12.5 billion Yuan, and non-financial enterprise debt financing instruments totaled 14.45 billion Yuan[96][99] - On May 14, 2024, the company newly issued the "24 Zijin K1" technology innovation corporate bond, with an issuance size of 2 billion Yuan, a 5-year term, and a coupon rate of 2.30%[96] Use of Raised Funds and Debt Situation The 2 billion Yuan raised from the newly issued "24 Zijin K1" bond during the reporting period has been used as planned to repay interest-bearing debt and supplement working capital, with the company's consolidated interest-bearing debt balance reaching 148.64 billion Yuan at period-end, a 3.63% increase from the beginning of the period, while key financial indicators like current ratio, quick ratio, and interest coverage ratio improved due to debt structure adjustments, and the asset-liability ratio decreased to 56.65% - Of the 2 billion Yuan raised from the "24 Zijin K1" bond, 450 million Yuan was used to repay bank gold leases, 1.5 billion Yuan to repay corporate bonds, and 50 million Yuan to supplement working capital[103] - As of the end of the reporting period, the company's consolidated interest-bearing debt balance was 148.64 billion Yuan, an increase of 3.63% from 143.435 billion Yuan at the beginning of the period[113] Changes in Key Solvency Indicators | Key Indicator | Current Period End / Current Period | Prior Year End / Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Current Ratio (%) | 106.37 | 92.21 | Increased by 14.16 percentage points | | Quick Ratio (%) | 66.45 | 57.42 | Increased by 9.03 percentage points | | Asset-Liability Ratio (%) | 56.65 | 59.66 | Decreased by 3.01 percentage points | | Interest Coverage Ratio | 7.837 | 6.615 | Increased by 18.46% | Convertible Corporate Bonds To optimize capital structure and reduce financing costs, the company's wholly-owned subsidiary successfully issued $2 billion of guaranteed convertible corporate bonds with a 1% annual interest rate, due in 2029, on June 25, 2024, convertible into the company's H-shares at an initial conversion price of HK$19.84 per share under specific conditions, with net proceeds of approximately $1.979 billion to be used for overseas debt replacement - On June 25, 2024, the company issued $2 billion of H-share convertible corporate bonds due in 2029, with a coupon rate of 1%[119] - The initial conversion price is HK$19.84 per H-share, with net proceeds of approximately $1.979 billion to be used for overseas debt replacement[119] Financial Report This section presents the company's unaudited financial statements and detailed notes, offering a comprehensive view of its financial position, performance, and underlying accounting policies Financial Statements This chapter presents unaudited consolidated and company-level balance sheets, income statements, statements of changes in shareholders' equity, and cash flow statements, showing continuous growth in total assets, significant improvement in profitability, and robust cash flow - This semi-annual report is unaudited[4][136] Consolidated Balance Sheet Summary (June 30, 2024) | Item | Amount (RMB Yuan) | | :--- | :--- | | Assets | | | Total Current Assets | 89,785,569,534 | | Total Non-current Assets | 279,090,812,467 | | Total Assets | 368,876,382,001 | | Liabilities and Shareholders' Equity | | | Total Current Liabilities | 84,405,315,840 | | Total Non-current Liabilities | 124,578,391,231 | | Total Liabilities | 208,983,707,071 | | Total Equity Attributable to Parent Company Shareholders | 126,441,969,540 | | Minority Interests | 33,450,705,390 | | Total Shareholders' Equity | 159,892,674,930 | Consolidated Income Statement Summary (Jan-Jun 2024) | Item | Amount (RMB Yuan) | | :--- | :--- | | Operating Revenue | 150,416,514,457 | | Operating Costs | (121,607,748,070) | | Operating Profit | 21,984,065,074 | | Total Profit | 21,587,689,525 | | Net Profit | 18,475,781,413 | | Net Profit Attributable to Parent Company Shareholders | 15,084,385,658 | Notes to Financial Statements The notes to the financial statements detail the company's basic information, basis of financial statement preparation, significant accounting policies and estimates, taxation, notes to consolidated financial statement items, related party relationships and transactions, and other key information, providing essential context and details for understanding the financial statements - The financial statements are prepared in accordance with Chinese Enterprise Accounting Standards, presented on a going concern basis, with the functional currency being RMB[163][166] - The notes provide detailed disclosures on the classification, measurement, and impairment methods of financial instruments[177], specific revenue recognition policies (categorized by mining, smelting, trading, environmental protection, and other businesses)[193][198](index=198&type=chunk], and depreciation and amortization methods for fixed assets and intangible assets (especially mining rights)[207] - The notes include explanations of key accounting estimates and judgments, such as mine reserve estimates, asset impairment tests, and deferred income tax asset recognition, which are crucial for understanding the uncertainties in the company's financial position[236][250][251]