腾远钴业(301219) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, the report's table of contents, and definitions of key terms Company Profile and Key Financial Indicators This section introduces the company and presents its key financial performance metrics Company Profile Ganzhou Tengyuan Cobalt New Material Co., Ltd. (Stock Code: 301219) is a company listed on the Shenzhen Stock Exchange, primarily engaged in the R&D, production, and sales of new materials such as cobalt and copper Company Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Tengyuan Cobalt | | Stock Code | 301219 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Luo Jie | Key Accounting Data and Financial Indicators In the first half of 2024, the company achieved strong performance growth with operating revenue reaching ¥3.203 billion, a 30.64% year-over-year increase, and net profit attributable to shareholders significantly rising by 428.04% to ¥427 million, while basic earnings per share grew by 437.04% to ¥1.45, though net cash flow from operating activities decreased by 15.59% Key Financial Indicators | Key Financial Indicators | Current Period (Yuan) | Prior Period (Yuan) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,202,652,210.46 | 2,451,563,855.00 | 30.64% | | Net Profit Attributable to Shareholders of Listed Company | 426,650,950.37 | 80,799,439.54 | 428.04% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 422,396,734.77 | 78,114,550.23 | 440.74% | | Net Cash Flow from Operating Activities | 287,166,681.98 | 340,203,241.99 | -15.59% | | Basic Earnings Per Share (Yuan/share) | 1.45 | 0.27 | 437.04% | | Weighted Average Return on Net Assets | 4.94% | 0.97% | Increased 3.97 percentage points | | Total Assets | 9,984,849,774.54 | 9,831,100,993.40 (Prior Year-End) | 1.56% | | Net Assets Attributable to Shareholders of Listed Company | 8,516,241,282.54 | 8,519,120,067.14 (Prior Year-End) | -0.03% | Non-recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to ¥4.2542 million, primarily from government subsidies, with a minor impact on net profit Non-recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Non-current Asset Disposal Gains and Losses | -1,716,400.05 | | Government Subsidies Included in Current Period Profit and Loss | 5,919,760.44 | | Other Non-operating Income and Expenses | 552,064.66 | | Less: Income Tax Impact | 501,209.45 | | Total | 4,254,215.60 | Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial condition, and future outlook Overview of Principal Business The company focuses on new energy metal resource development and utilization, primarily engaged in the R&D, production, and sales of cobalt, copper, nickel, lithium, and battery material precursors, with a new 15,000-ton battery waste comprehensive recycling workshop now operational - Company's core products include cobalt salts like cobalt chloride and cobalt sulfate, electrolytic cobalt and electrolytic copper metals, as well as nickel sulfate and battery-grade lithium carbonate[21] - In 2024, new products such as cobalt tetroxide, cobalt oxide, and ternary precursors were added, extending the value chain downstream into consumer and power battery sectors[21] - The company is accelerating its expansion into waste lithium battery recycling, with a 15,000-ton battery waste comprehensive recycling workshop already in operation, and new products like lithium carbonate and nickel sulfate expected to achieve sales in the second half of the year[19] Analysis of Core Competencies The company's core competencies span production technology, process design, product quality, resource acquisition, and management, highlighted by its integrated recycling of retired lithium batteries and stable raw material supply from diverse sources including its Congo (DRC) subsidiary - Production technology advantage: Achieved full-process traceability from recycling to reuse of retired lithium batteries, and improved key processes such as pretreatment, lithium extraction, and hydrometallurgical leaching, enhancing lithium recovery rates and reducing costs[28][29] - Industrial chain integration: Achieved production line衔接 with subsidiary Tengchi New Energy, ensuring stable supply of solutions like cobalt sulfate and nickel sulfate; Tengchi now possesses 20,000 tons of ternary precursor and 5,000 tons of cobalt tetroxide capacity[29] - Resource acquisition advantage: Holds exploration and mining rights in Congo (DRC) and utilizes core technologies to process various cobalt-containing raw materials, broadening raw material sources, while also collaborating with automotive and battery manufacturers to build a waste power battery recycling system[33] Analysis of Principal Business During the reporting period, the company's principal business performed strongly, with operating revenue increasing by 30.64%, driven by increased cobalt and copper product capacity and rising copper prices, notably with copper product revenue growing 38.67% and its gross margin improving by 7.97 percentage points Key Financial Data | Key Financial Data | Current Period (Yuan) | Prior Period (Yuan) | Year-over-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,202,652,210.46 | 2,451,563,855.00 | 30.64% | Release of cobalt and copper production capacity, increase in output and sales; simultaneously, copper selling prices increased compared to the prior year | | Operating Cost | 2,415,757,658.43 | 2,002,157,521.48 | 20.66% | Increase in business revenue scale, leading to a corresponding increase in costs recognized | | Income Tax Expense | 128,174,960.63 | 79,014,740.19 | 62.22% | Increase in current period profit led to an increase in income tax expense | Operating Revenue and Cost by Product/Service | By Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Year-over-Year Change in Operating Revenue | Year-over-Year Change in Operating Cost | Year-over-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cobalt Products | 1,155,513,664.21 | 1,097,564,787.53 | 5.01% | 7.55% | 5.23% | 2.09% | | Copper Products | 1,759,613,998.88 | 1,097,158,863.60 | 37.65% | 38.67% | 22.95% | 7.97% | Analysis of Assets and Liabilities As of the end of the reporting period, total assets reached ¥9.985 billion, a 1.56% increase from the prior year-end, with fixed assets significantly increasing due to the completion of construction in progress, while the company's ¥2.998 billion overseas assets in Congo (DRC) represent 35.20% of net assets and are operating well - Fixed assets significantly increased from the prior year-end, primarily due to the completion and transfer of construction in progress, with its proportion of total assets increasing from 22.47% to 31.13%[41] - Construction in progress significantly decreased from the prior year-end, primarily due to project completion and transfer to fixed assets, with its proportion of total assets decreasing from 11.08% to 3.95%[41] - The company's significant overseas asset is Tengyuan Cobalt Copper Resources Co., Ltd. in Congo (DRC), with an asset scale reaching ¥2.998 billion, accounting for 35.20% of the company's net assets, operating well with no significant impairment risk[42] Analysis of Investment Status During the reporting period, the company's investment amounted to ¥301 million, a 43.27% year-over-year decrease, primarily due to the ongoing completion of fundraising projects, with the Congo (DRC) Cobalt-Copper Hydrometallurgical Plant Phase IV project progressing to 79.09% completion with cumulative investment of ¥507 million - Investment during the reporting period was ¥301 million, a 43.27% year-over-year decrease, primarily due to the ongoing completion of fundraising projects, leading to reduced asset investment[45] - The significant ongoing project is the "Congo (DRC) Cobalt-Copper Hydrometallurgical Plant Phase IV Project," with cumulative investment of ¥507 million and a project progress of 79.09%[45] Use of Raised Funds | Use of Raised Funds | Amount (Million Yuan) | | :--- | :--- | | Total Raised Funds | 5,203.78 | | Total Investment in Reporting Period | 209.00 | | Total Cumulative Investment | 3,072.22 | | Balance of Raised Funds at Period End | 2,272.30 | Risks and Countermeasures The company faces significant risks including market price fluctuations for cobalt and copper, uncertainties in overseas operations in Congo (DRC), foreign exchange rate volatility from international transactions, and management challenges due to business expansion, which it addresses through strategic adjustments and internal controls - Market price fluctuation risk: Prices of major products like cobalt and copper are highly volatile due to international market influences, potentially impacting the company's revenue and gross profit[65] - Overseas operation risk: Operations in Congo (DRC) face potential risks such as political instability, strikes, and energy supply disruptions[65][66] - Exchange rate risk: The increasing proportion of overseas sales and purchases means Renminbi-to-US dollar exchange rate fluctuations will impact the company's profitability[67] - Management risk: As business scale expands and the industrial chain extends, the company faces challenges in investment decisions, internal control, and talent acquisition[68] Corporate Governance This section details the company's governance structure, including changes in its board and supervisory personnel, and profit distribution policies Changes in Directors, Supervisors, and Senior Management During the reporting period, there was a change in the company's independent directors, with Cheng Lin resigning for personal reasons and Lai Dan being elected as the new independent director Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Cheng Lin | Independent Director | Resignation | May 14, 2024 | Personal Reasons | | Lai Dan | Independent Director | Election | May 14, 2024 | Nominated and Elected by the Board of Directors | Profit Distribution Plan The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the first half of 2024 - The company plans no profit distribution or capital reserve capitalization for the half-year period[74] Environmental and Social Responsibility This section outlines the company's commitments and actions regarding environmental protection and social responsibility initiatives Environmental Protection The company and its subsidiaries are designated key pollutant-discharging entities, adhering strictly to environmental regulations, with all emissions meeting standards and no administrative penalties incurred during the reporting period, while also implementing carbon reduction measures - The company and its subsidiaries are listed as key pollutant-discharging entities, required to comply with regulations such as the "Emission Standard of Pollutants for Copper, Nickel, Cobalt Industry"[75][77] - During the reporting period, major pollutants such as wastewater and solid waste met discharge standards, with no instances of exceeding limits or environmental administrative penalties[77][80] Social Responsibility The company actively fulfills its social responsibilities across occupational health and safety, employee rights, supply chain responsibility, business ethics, and community development, maintaining responsible mineral sourcing and contributing to local education and employment - Supply chain responsibility: The company maintains compliant smelter status under the Responsible Minerals Initiative (RMI) and has obtained an A-level rating certificate for mineral supply chain due diligence management[83] - Community development: The company donated ¥0.1 million each to the Jiangxi Women and Children Development Foundation and Jiangxi University of Science and Technology in the first half of the year, and aided in infrastructure construction in Congo (DRC) to improve local residents' lives[85] Significant Matters This section highlights key events and transactions, including major related-party transactions and significant project developments Significant Related-Party Transactions During the reporting period, the company engaged in ordinary course related-party transactions with shareholder Xiamen Tungsten Co., Ltd. and its subsidiaries, selling products worth ¥127 million, representing 3.95% of similar transactions and within the approved ¥800 million limit Significant Related-Party Transactions | Related Party | Relationship | Type of Related-Party Transaction | Content of Related-Party Transaction | Amount of Related-Party Transaction (Million Yuan) | Proportion of Similar Transactions | Approved Transaction Limit (Million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xiamen Tungsten Co., Ltd. and its controlled subsidiaries | Shareholder | Sale of Products to Related Parties | Sale of Goods | 126.54 | 3.95% | 800 | Other Significant Matters As of June 30, 2024, significant progress was made on subsidiary Ganzhou Tengchi (Phase I)'s 40,000-ton ternary precursor and 10,000-ton cobalt tetroxide projects, with the first phase of 20,000 tons of ternary precursors entering trial production and the 5,000-ton cobalt tetroxide line officially commencing production and sales - Subsidiary Ganzhou Tengchi project is progressing smoothly: 20,000 tons of ternary precursors entered trial production, and the 5,000 tons of cobalt tetroxide production line has commenced production and sales[97] Share Changes and Shareholder Information This section details changes in the company's share capital, share repurchase activities, and the composition of its shareholder base Share Change Status During the reporting period, the company's total share capital remained unchanged at 294,717,182 shares, with minor structural adjustments due to executive restricted shares, and the completion of a share repurchase plan on April 22, 2024, totaling 4,944,347 shares or 1.68% of total capital for ¥181 million - As of April 22, 2024, the company completed its share repurchase plan, cumulatively repurchasing 4,944,347 shares, accounting for 1.68% of total share capital, with a total expenditure of ¥181 million[101] - Total share capital of 294,717,182 shares remained unchanged during the reporting period, with the share structure seeing minor adjustments due to executive restricted shares[100] Shareholder Numbers and Shareholding Status As of the end of the reporting period, the company had 24,845 common shareholders, with the top ten shareholders holding a relatively concentrated stake, and Luo Jie, Xie Fubiao, and Wu Yanghong identified as co-controllers Top Ten Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Luo Jie | Domestic Natural Person | 22.43% | 66,093,066 | | Xie Fubiao | Domestic Natural Person | 10.36% | 30,546,602 | | Xiamen Tungsten Co., Ltd. | State-owned Legal Person | 9.05% | 26,676,000 | | Jiangxi Ganfeng Lithium Group Co., Ltd. | Domestic Non-state-owned Legal Person | 6.09% | 17,934,017 | | Ningbo Meishan Bonded Port Area Chendao Investment Partnership... | Other | 5.14% | 15,137,933 | | Wu Yanghong | Domestic Natural Person | 5.10% | 15,035,366 | - Luo Jie, Xie Fubiao, and Wu Yanghong are the company's co-controllers, controlling shareholders, and actual controllers[104] Financial Report This section presents the company's comprehensive financial statements, including balance sheets, income statements, and cash flow statements, along with detailed notes Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2024, detailing financial position, operating results, and cash flows - The report includes the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[110][113][116] Consolidated Balance Sheet As of June 30, 2024, the company's total assets were ¥9.985 billion, total liabilities were ¥1.469 billion, and owners' equity attributable to the parent company was ¥8.516 billion, resulting in a debt-to-asset ratio of 14.71% Consolidated Balance Sheet Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 9,984,849,774.54 | 9,831,100,993.40 | | Total Liabilities | 1,468,608,492.00 | 1,311,980,926.26 | | Owners' Equity Attributable to Parent Company | 8,516,241,282.54 | 8,519,120,067.14 | Consolidated Income Statement In the first half of 2024, the company achieved total operating revenue of ¥3.203 billion, total operating costs of ¥2.627 billion, total profit of ¥555 million, and net profit of ¥427 million Consolidated Income Statement Data | Item | H1 2024 (Yuan) | H1 2023 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 3,202,652,210.46 | 2,451,563,855.00 | | Total Operating Costs | 2,627,361,524.52 | 2,129,763,365.95 | | Total Profit | 554,825,911.00 | 159,814,179.73 | | Net Profit | 426,650,950.37 | 80,799,439.54 | Consolidated Cash Flow Statement In the first half of 2024, net cash flow from operating activities was ¥287 million, from investing activities was -¥300 million, and from financing activities was -¥399 million, resulting in a net decrease in cash and cash equivalents of ¥408 million Consolidated Cash Flow Statement Data | Item | H1 2024 (Yuan) | H1 2023 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 287,166,681.98 | 340,203,241.99 | | Net Cash Flow from Investing Activities | -299,974,210.66 | -530,016,688.42 | | Net Cash Flow from Financing Activities | -399,392,950.28 | -318,837,930.84 | | Net Increase/Decrease in Cash and Cash Equivalents | -408,262,218.29 | -503,969,091.09 | Notes to Consolidated Financial Statements This section provides detailed explanations of the composition and changes in major items within the consolidated financial statements, including cash, accounts receivable, inventory, fixed assets, construction in progress, short-term borrowings, accounts payable, operating revenue, and costs - Period-end monetary funds were ¥3.352 billion, of which ¥14.3464 million was restricted funds (deposits)[213] - Period-end accounts receivable book balance was ¥204 million, with a bad debt provision of ¥10.3008 million, resulting in a book value of ¥193 million; accounts receivable from the top five customers accounted for 55.85%[220][224] - Period-end inventory book value was ¥2.386 billion, an increase of 21.26% from the beginning of the period, primarily composed of raw materials, work-in-progress, and finished goods[248]