西部矿业(601168) - 2025 Q2 - 季度财报

Important Notice The board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, with no false records, misleading statements, or major omissions[4] - This semi-annual report has not been audited[4] - There is no profit distribution plan or capital reserve to share capital increase plan approved by the board of directors for this reporting period[4] - Forward-looking statements regarding future plans in this report do not constitute a substantive commitment to investors due to uncertainties[4] - The company has detailed potential risks in the "Risks Faced" section of "Section III Management Discussion and Analysis" in this report[6] Section I Definitions This section provides definitions for key terms and entities used throughout the report - This reporting period refers to January 1, 2025, to June 30, 2025[11] - Company, this company, this group, and Western Mining all refer to Western Mining Co., Ltd[11] - The report lists definitions for common terms such as CSRC and SSE, as well as names of major subsidiaries like Western Copper, Yulong Copper, and Western Mining Finance Company[11][12] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents key financial data and indicators for the reporting period I. Company Information This section introduces Western Mining Co., Ltd.'s Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Western Mining Co., Ltd., and its Chinese abbreviation is Western Mining[13] - The company's legal representative is Wang Haifeng[13] II. Contact Persons and Contact Information This section discloses the contact information for the company's Board Secretary and Securities Affairs Representative - The Board Secretary is Wang Wei, and the Securities Affairs Representative is Han Yingmei[14] - The contact address for both is Building 1, Western Mining Haishu Business Center, No. 4 Wenyilu, Haihu New District, Xining City, Qinghai Province[14][15] III. Brief Introduction to Changes in Basic Information The company's registered address changed on October 12, 2024, to No. 4 Wenyilu, Haihu New District, Xining City, Qinghai Province - The company's registered address changed on October 12, 2024[16] - The company's website is www.westmining.com, and its email address is wm@westmining.com[16] IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations The company's designated information disclosure newspapers are Shanghai Securities News, China Securities Journal, and Securities Times - The company's designated information disclosure newspapers include Shanghai Securities News, China Securities Journal, and Securities Times[17] - The website address for publishing the semi-annual report is www.sse.com.cn[17](index=17&type=chunk) V. Brief Introduction to Company Shares The company's A-shares are listed on the Shanghai Stock Exchange under the stock name Western Mining and stock code 601168 - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[18] - The stock abbreviation is Western Mining, and the stock code is 601168[18] VII. Company's Key Accounting Data and Financial Indicators Key accounting data for H1 2025 shows revenue, total profit, and net profit attributable to shareholders increased, while net cash flow from operating activities slightly decreased Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 31,619,198,164 | 24,977,279,448 | 27 | | Total Profit | 3,879,846,174 | 3,158,427,506 | 23 | | Net Profit Attributable to Shareholders of Listed Company | 1,869,364,113 | 1,620,653,829 | 15 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 1,833,607,095 | 1,675,718,452 | 9 | | Net Cash Flow from Operating Activities | 5,010,092,508 | 5,039,673,859 | -1 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 16,599,474,964 | 17,089,849,771 | -3 | | Total Assets (Period-end) | 54,585,506,730 | 54,939,668,740 | -1 | Key Financial Indicators for H1 2025 | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.78 | 0.68 | 15 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (RMB/share) | 0.77 | 0.70 | 10 | | Weighted Average Return on Net Assets (%) | 11.10 | 10.45 | Increase 0.65 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 10.89 | 10.81 | Increase 0.08 percentage points | IX. Non-Recurring Gains and Losses Items and Amounts This section details non-recurring gains and losses for H1 2025, totaling 35,757,018 RMB, and clarifies the company's recognition of derivative instrument gains and losses Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -13,763,452 | | Government grants recognized in current profit or loss | 36,954,796 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 764,345 | | Gains and losses from debt restructuring | 459,812 | | Other non-operating income and expenses apart from the above | 12,106,099 | | Less: Income tax impact | 3,990,820 | | Impact on minority interests (after tax) | -3,226,238 | | Total | 35,757,018 | - The company classifies gains and losses from commodity futures contracts, commodity option contracts, and deferred pricing arrangements as recurring gains and losses, as they are directly related to ordinary business operations[23] Section III Management Discussion and Analysis This section provides a comprehensive discussion and analysis of the company's operations, financial performance, and future outlook for the reporting period I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period This section analyzes H1 2025 market trends for major mineral products and describes the company's main business, covering mining, smelting, salt lake chemicals, trade, and financial services (1) Industry Overview In H1 2025, copper prices fluctuated upwards, lead prices widely fluctuated, zinc prices declined, gold prices surged, silver prices broke out, iron ore prices rose then fell, and molybdenum concentrate prices rebounded - Copper prices rose by 8.3% from the beginning of the year, influenced by tight concentrate supply, US tariff investigations, and downstream restocking[25] - Lead prices rose by 2.2% from the beginning of the year, influenced by battery plant restarts, environmental factors, and tight concentrate supply[27][28] - Zinc prices fell by 12% from the beginning of the year, influenced by overseas zinc mine restarts, pessimistic macroeconomic sentiment, and increased refined zinc output[30] - Gold prices rose by 23.3% from the beginning of the year, driven by safe-haven demand, central bank gold purchases, and strengthened de-dollarization trends[32] - Silver prices rose by 20.8% from the beginning of the year, influenced by its industrial commodity attributes and the convergence of the gold-silver ratio[33] - Molybdenum concentrate prices rose by 5% from the beginning of the year, influenced by tightening supply, recovering demand, and stricter export quotas[36] (2) Main Business Operations The company's main business spans mining, smelting, salt lake chemicals, trade, and finance, leveraging rich mineral resources and a complete industrial chain for green development and innovation - The company's core resources include key varieties such as copper, lead-zinc, and iron, with main businesses spanning the entire mineral industry chain, including mining, beneficiation, smelting, and trade[38] - The company wholly owns or controls fourteen mines, with main products including mined copper, mined zinc, mined lead, mined molybdenum, iron concentrate, and nickel concentrate[40] Company's Total Mineral Resource Reserves (10,000 tons) | Copper Metal | Lead Metal | Zinc Metal | Molybdenum Metal | Vanadium Pentoxide | | :--- | :--- | :--- | :--- | :--- | | 566 | 140.59 | 243.69 | 35.6 | 65.8 | | Iron (Ore Volume) | Nickel | Gold (tons) | Silver (tons) | Magnesium Chloride | | 28,245.22 | 27 | 11.23 | 1,911.64 | 3,046.25 | - The smelting segment has formed production capacities of 350,000 tons/year for electrolytic copper, 200,000 tons/year for electrolytic lead, and 200,000 tons/year for zinc ingots[46] - The salt lake chemical business actively participates in the construction of world-class salt lake industrial bases, promoting high-end, green, intelligent, and diversified development of the salt lake industry[46] - In addition to producing and selling proprietary products, the trading business also engages in non-ferrous metal trading (copper, lead, zinc, aluminum, nickel) and futures hedging[47] - The controlled subsidiary, Western Mining Finance Company, provides financial services to member units, functioning as a platform for fund aggregation, settlement, monitoring, and financial services[48] II. Discussion and Analysis of Operations During the reporting period, the company achieved significant growth in operating revenue and total profit, primarily driven by increased mined copper output and prices, alongside progress in production, project construction, diversification, technology, and green manufacturing (1) Focusing on Core Business, Achieving Both Quantity and Quality in Production and Operations During the reporting period, the company achieved substantial growth in both mineral and smelting product output, with significant increases in mined copper, zinc, and smelted copper, enhancing production efficiency and core competitiveness Production of Major Products, Jan-Jun 2025 | Product | Actual Jan-Jun 2025 (gold tons/tons/kilograms) | YoY Change (%) | | :--- | :--- | :--- | | Mined Copper | 91,752 (gold tons) | 7.65 | | Mined Zinc | 62,875 (gold tons) | 18.61 | | Mined Lead | 35,071 (gold tons) | 24.63 | | Mined Molybdenum | 2,525 (gold tons) | 31.10 | | Iron Concentrate | 718,954 (tons) | 11.93 | | Gold in Concentrate | 134 (kilograms) | 32.67 | | Smelted Copper | 182,249 (tons) | 49.94 | | Smelted Lead | 85,770 (tons) | 3,534.32 | | Smelted Zinc | 70,970 (tons) | 17.07 | - Yulong Copper Mine's Workshop 1 saw copper and molybdenum recovery rates increase by 4.08 and 5.36 percentage points respectively, while Workshop 2's copper and molybdenum recovery rates increased by 3.9 and 15.99 percentage points[50] - Qinghai Copper's total copper smelting recovery rate increased by 3.3 percentage points, and electrolytic direct recovery rate increased by 2.09 percentage points[50] - Smelted zinc and lead did not meet planned output, primarily due to a gradual increase in production load after commissioning in Q4 2024[51] (2) Coordinated Efforts, Efficient Project Advancement The company is efficiently advancing multiple mine upgrade and expansion projects, including beneficiation plant renovations and the Yulong Copper Mine Phase III project, which will significantly boost ore processing and concentrate production capacity - Xinyuan Mining's 800,000 tons/year beneficiation plant upgrade project has commenced, with an annual ore processing capacity of 800,000 tons upon completion[52] - Subei Bolun Qijiaojing Iron Mine's beneficiation plant technical upgrade and deep second-phase mining project has commenced, with an annual mining and beneficiation capacity of 3.1 million tons of ore and 1 million tons of iron concentrate upon completion[52] - Shuangli Mining's No. 2 Iron Mine beneficiation system upgrade and expansion project has commenced, expected to be operational by year-end, increasing beneficiation capacity to 3 million tons/year and annual iron concentrate output to 870,000 tons[52] - Yulong Copper Mine Phase III project received approval on June 23, and upon completion, its production scale will increase from 19.89 million tons/year to 30 million tons/year[52] (3) Diversified Efforts, Enhancing Comprehensive Development Resilience The company is enhancing its development resilience through capacity doubling, smart operations, lean management, and market value management, including mine upgrades, exploration, unmanned technology, 6S management, cost control, and investor relations - All three major beneficiation plant upgrade projects at the mining units have commenced construction, and the mining license for Youre Lead-Zinc Mine in Baiyu County, Sichuan Province, has been obtained[53][54] - Xitieshan Branch has initially achieved "dark factory" construction through unmanned underground electric locomotives, unmanned concentrate warehouse cranes, beneficiation APC, and Deepseek integration[54] - Controlling shareholder Western Mining Group and its concerted party Western Mining Assets have twice increased their holdings in the company, accumulating 47,660,077 shares, representing 2% of the company's total share capital[54] - The company received the "Best Practice Award for Investor Relations Management" from the China Association for Public Companies, and the 16th "Tianma Award for Investor Relations Management of Chinese Listed Companies" and "Shareholder Return Award for Investor Relations Management" from Securities Times[55] - The company was selected for the 2025 S&P Global "Sustainability Yearbook (China Edition)" and ranked 314th in Fortune China 500[55] (4) Concentrating Capabilities, Driving Development with Technology and Talent The company achieved significant technological innovation, advancing 12 government-level and 10 company-level research projects, with a breakthrough in high-purity magnesium hydroxide production from salt lake brine, and actively expanded talent acquisition channels - The company is fully advancing 12 government-level scientific research projects, including 3 national key scientific research projects[56] - The "Research on Capacity Enhancement for High-Purity Magnesium Hydroxide Production from Salt Lake Bischofite" project achieved a major breakthrough, with refractory material performance improvements far exceeding expectations[56] - During the reporting period, 23 patent applications were submitted (4 invention patents, 18 utility model patents, 1 design patent), and 27 patents were granted concurrently[56] - The company has cumulatively selected 20 individuals for Qinghai Province's "Kunlun Talent" Action Plan and actively signed strategic cooperation agreements with renowned industry universities and partners[56] (5) Multiple Measures, Building a Green Manufacturing System The company is actively building a "green and low-carbon" production environment by implementing a three-year action plan for safety production, continuously eliminating major accident hazards, optimizing emergency systems, and formulating green mine construction and ecological restoration plans - The company is diligently implementing a three-year action plan for fundamental safety production improvements, continuously promoting dynamic clearance of major accident hazards and optimizing the emergency system[58] - The company formulated and issued the "2025 Green Mine and Garden-Style Factory Construction Project Plan," "2025 Greening Special Plan," and "2025 Green Western Mining Construction Plan"[58] - Innovatively promoting differentiated construction of "one mine, one ecological landscape; one factory, one green brand," with systematic planning in environmental comprehensive management, energy conservation, and emission reduction[58] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness stems from its advantageous western resource location, strategic resource layout, technological innovation, high-altitude mining and beneficiation expertise, ESG leadership, and consistent performance and shareholder returns - The company's industries are primarily located in the western regions, with abundant mineral resources and significant water and electricity cost advantages, facilitating preferential access to high-quality western mineral resources[59] - The company's major mines are located in important metallogenic belts within China, possessing favorable metallogenic geological conditions and significant exploration potential[60] - The company has established national-level enterprise technology centers, postdoctoral research workstations, and other scientific research platforms, with its mining and beneficiation processes ranking among the industry's best[61] - The company has accumulated extensive experience in mining and beneficiation technologies and production management in high-altitude environments at its high-altitude mines[62] - Leading international ESG rating agencies MSCI assigned the company a BBB rating, S&P CSA scored 47 points, and domestic mainstream ESG rating agencies assigned an AA rating, all ranking among the top in the industry[63] - The company's performance is steadily improving, with cumulative cash dividends of 10.724 billion RMB since listing, accounting for 57.72% of cumulative net profit, ranking among the top in the industry[64] IV. Major Operating Conditions During the Reporting Period During the reporting period, the company's financial statement items showed significant changes, with R&D expenses increasing by 99%, various asset and liability structure changes, and good operating conditions for major subsidiaries (1) Analysis of Main Business Operations During the reporting period, the company's operating revenue and operating costs both achieved significant growth, with R&D expenses increasing by 99%, indicating continued investment in research and development Analysis of Changes in Financial Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 31,619,198,164 | 24,977,279,448 | 27 | | Operating Cost | 25,302,493,983 | 19,718,280,876 | 28 | | Selling Expenses | 18,745,058 | 16,198,668 | 16 | | Administrative Expenses | 508,807,656 | 400,326,507 | 27 | | Financial Expenses | 286,142,759 | 347,124,873 | -18 | | R&D Expenses | 592,748,586 | 297,567,029 | 99 | | Net Cash Flow from Operating Activities | 5,010,092,508 | 5,039,673,859 | -1 | - R&D expenses increased by 99% compared to the prior period, primarily due to increased R&D investment in the current period[65] (3) Analysis of Assets and Liabilities At the end of the reporting period, the company's asset and liability structure saw multiple changes, with significant increases in accounts receivable, prepayments, non-current assets due within one year, and construction in progress, while other receivables and non-current loans and advances decreased Changes in Assets and Liabilities (Changes Exceeding 30%) | Item Name | Current Period-end Amount (RMB) | Change from Prior Year-end (%) | Reason for Change | | :--- | :--- | :--- | :--- | | Accounts Receivable | 207,507,545 | 63 | Increased receivables from goods sold in current period | | Prepayments | 763,679,435 | 392 | Increased prepayments for raw material purchases in current period | | Other Receivables | 521,142,507 | -40 | Decreased receivables from futures, options margins, and dividends from investees in current period | | Non-current assets due within one year | 1,256,239,582 | 113 | Increased loans and advances due within one year issued by Western Mining Finance Company to member units in current period | | Other Current Assets | 241,236,109 | -30 | Decreased deferred input VAT in current period | | Loans and Advances (Non-current) | 700,440,000 | -49 | Decreased medium and long-term loans issued by Western Mining Finance Company to member units in current period | | Construction in Progress | 2,152,307,568 | 41 | Increased investment in ongoing construction projects in current period | | Other Non-current Assets | 97,387,450 | 101 | Increased prepayments for engineering equipment in current period | | Notes Payable | 235,010,170 | -56 | Maturing notes payable settled in current period | | Contract Liabilities | 1,058,076,167 | 73 | Increased advance receipts for goods at current period-end | | Employee Benefits Payable | 78,097,487 | -48 | Performance bonuses paid in current period | | Taxes Payable | 563,425,627 | 32 | Increased mined copper output and rising non-ferrous metal prices in current period | | Non-current liabilities due within one year | 3,673,912,478 | 40 | Increased long-term borrowings due within one year in current period | | Other Current Liabilities | 213,910,250 | 75 | Increased deferred output VAT in current period | | Special Reserves | 74,267,990 | 51 | Increased safety production fund balance at current period-end | - Overseas assets totaled 441,419,885 RMB, accounting for 0.81% of total assets[70] Major Restricted Assets as of Report Period-end | Item | Carrying Amount (RMB) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 717,440,593 | Margin/Statutory Reserve/Frozen/Restricted | Acceptance bill and letter of credit margins, mine reclamation margins, central bank statutory reserves, litigation frozen funds, entrusted payment restricted funds | | Notes Receivable | 6,269,215 | Pledged | Pledged to obtain bank loans | | Fixed Assets | 70,957,443 | Mortgaged | Machinery and equipment mortgaged to obtain bank loans | | Intangible Assets | 472,039,227 | Mortgaged | Mining rights and land use rights mortgaged to obtain bank loans | | Total | 1,266,706,478 | / | / | (4) Analysis of Investment Status The company had no significant equity or non-equity investments during the reporting period, with financial assets measured at fair value totaling 1,523,568,307 RMB at period-end, showing decreases in trading financial assets and notes receivable financing - There were no significant equity or non-equity investments during the reporting period[73] Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB) | Fair Value Change in Current Period (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 280,172,204 | -8,688,985 | 257,711,606 | | Notes Receivable Financing | 68,731,883 | -16,364,511 | 52,367,372 | | Other Equity Instrument Investments | 1,213,489,329 | 0 | 1,213,489,329 | | Total | 1,562,393,416 | -8,688,985 | 1,523,568,307 | (6) Analysis of Major Controlled and Invested Companies During the reporting period, major controlled subsidiaries like Yulong Copper, Western Copper, Xinyuan Mining, Subei Bolun, and Western Mining Finance Company were profitable, with Yulong Copper achieving the highest net profit, while some subsidiaries incurred losses Operating Performance of Major Controlled and Invested Companies (Jan-Jun 2025) | Company Name | Company Type | Operating Revenue (10,000 RMB) | Operating Profit (10,000 RMB) | Net Profit (10,000 RMB) | | :--- | :--- | :--- | :--- | :--- | | Yulong Copper | Subsidiary | 636,520 | 386,537 | 349,110 | | Western Copper | Subsidiary | 74,974 | 30,277 | 24,123 | | Xinyuan Mining | Subsidiary | 28,176 | 6,704 | 5,763 | | Subei Bolun | Subsidiary | 30,855 | 4,635 | 2,820 | | Western Copper Materials | Subsidiary | 614,166 | -944 | -964 | | Qinghai Copper | Subsidiary | 749,880 | -27,884 | -28,171 | | Xianghe Nonferrous | Subsidiary | 163,840 | -382 | 579 | | Rare and Precious Metals | Subsidiary | 373,390 | -13,997 | -14,004 | | Western Mining Finance Company | Subsidiary | 16,139 | 10,029 | 7,948 | | Western Mining Shanghai | Subsidiary | 568,183 | 2,051 | 1,515 | | Dongtai Lithium Resources | Associate | 49,185 | 20,914 | 17,146 | V. Other Disclosures The company faces risks from product price fluctuations, high-risk mining and smelting operations, and mineral resource estimation uncertainties, while actively implementing a "quality improvement, efficiency enhancement, and shareholder return" action plan (1) Potential Risks The company faces risks from product price volatility, inherent high risks in mining and smelting (e.g., industrial accidents, equipment failures, environmental damage), and potential discrepancies in mineral resource and recoverable reserve estimates - Risk of product price fluctuations: Prices of base metals like zinc, lead, and copper are influenced by supply and demand changes, global economic conditions, and industry cycles, and sustained declines could have a significant adverse impact on the company's financial position and operating performance[76] - Mining and smelting are high-risk industries: Involving industrial accidents, mine collapses, severe weather, equipment failures, fires, groundwater seepage, explosions, and other unforeseen events, which could lead to property damage, casualties, environmental damage, and potential legal liabilities[76] - Risk of mineral resource and recoverable reserve estimation: Due to complex geological structures of mines and limited exploration scope, actual mine conditions may differ from estimates, adversely affecting the company's production, operations, and financial position[76] (2) Other Disclosure Items The company increased capital in its wholly-owned subsidiary Western Mining Shanghai by 200 million RMB, established an engineering management department, and deregistered its zinc industry branch, while actively executing its "quality improvement, efficiency enhancement, and shareholder return" action plan - In March 2025, the company made a cash capital injection of 200 million RMB into its wholly-owned subsidiary Western Mining (Shanghai), increasing its registered capital to 300 million RMB upon completion[77] - The company established an Engineering Management Department to strengthen overall project management and improve engineering management efficiency and quality[77] - The Zinc Industry Branch completed its deregistration on July 11[77] - Controlling shareholder Western Mining Group and its concerted party Western Mining Assets have twice increased their holdings in the company, accumulating 47,660,077 shares, representing 2% of the company's total share capital[78] - The company's 2024 profit distribution plan was a cash dividend of 1 RMB per share (tax inclusive), totaling 2.383 billion RMB, and the equity distribution has been completed[78] - During the reporting period, the company fully advanced 12 government-level scientific research projects and 10 company-level key R&D projects, submitting 23 patent applications and receiving 27 patent grants[79] - Leading international ESG rating agencies MSCI assigned the company a BBB rating, S&P CSA scored 47 points, and domestic mainstream ESG rating agencies assigned an AA rating, all ranking among the top in the industry[79] Section IV Corporate Governance, Environment, and Society This section details changes in the company's directors, supervisors, and senior management, outlines the profit distribution plan, and reports on environmental information disclosure and rural revitalization efforts I. Changes in Company Directors, Supervisors, and Senior Management During the reporting period, there were multiple changes in the company's directors, supervisors, and senior management, including the chairman, vice chairman, president, vice president, and employee supervisor - Wang Haifeng was elected Chairman and Director; Zhao Fukang was appointed President and elected Director; Wang Wei was elected Director and appointed Board Secretary and Chief Financial Officer[81] - Zhong Yongsheng resigned as Chairman and was elected Vice Chairman; Cai Shuguang resigned as Director, Vice Chairman, and President, and was appointed Vice President[81] - Dong Qiaolong was appointed Vice President, and Hu Huijie was elected Employee Supervisor[81] II. Profit Distribution or Capital Reserve to Share Capital Increase Plan The company's semi-annual profit distribution plan and capital reserve to share capital increase plan are "No," meaning no distribution or increase - The semi-annual proposed profit distribution plan and capital reserve to share capital increase plan are "No"[82] - The number of bonus shares, dividends, and capital increase per 10 shares is 0[82] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company has 17 subsidiaries on the list for environmental information disclosure, with some completing fixed pollution source registration, hazardous waste permits, and environmental impact assessments during the reporting period - The number of companies included in the list of enterprises required to disclose environmental information by law is 17[83] - Subsidiaries such as Yulong Copper, Xitieshan Branch, and Western Copper all have query indexes for their legally disclosed environmental information reports[83] - Hongfeng Weiye completed the renewal of its fixed pollution source registration receipt, and Rare and Precious Metals completed the processing of its hazardous waste operating license[84] - Yulong Copper completed the environmental impact assessment for the Yulonggou Tailings Dam heightening and expansion project, and Subei Bolun completed the environmental impact assessment for the deep second-phase project[84] V. Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work The company's Party Committee systematically promotes rural revitalization through various assistance measures, including agricultural product procurement, aid to vulnerable groups, policy promotion, spring farming donations, and volunteer services, while strengthening anti-poverty monitoring and skill training - The company's Party Committee coordinates planning, formulates annual assistance work plans, and has repeatedly visited linked villages for research and guidance[85] - During the New Year and Spring Festival, the company purchased 12,000 catties of yak beef from linked assistance villages, increasing collective village economic income by 456,000 RMB[86] - Donated 260,000 RMB to 4 linked villages for 809 farmers to purchase a total of 80.9 tons of chemical fertilizers, supporting spring plowing and sowing[86] - In the first half of the year, 12 households and 51 individuals were included in poverty return monitoring, and 269 people participated in training courses such as security guard, ramen economy, and ecological education[88] - Since the beginning of the year, 11 concentrated clean-up campaigns for living environments have been carried out, significantly improving villagers' living conditions[88] Section V Important Matters This section covers the fulfillment of commitments, significant related-party transactions, and major contracts, including guarantees I. Fulfillment of Commitments The company's controlling shareholder, Western Mining Group, continues to fulfill its commitment to avoid direct or indirect competition with the company's main business - Controlling shareholder Western Mining Group signed the "Agreement on Avoiding Horizontal Competition" in September 2014, committing not to engage in businesses or activities that constitute or may constitute direct or indirect competition with the company's main business[90] - This commitment letter remains valid from its signing until the day Western Mining Group's direct or indirect shareholding in the company falls below 20% of the company's issued share capital and it no longer has actual control over the company[90] - During the reporting period, this commitment was timely and strictly fulfilled[90] X. Significant Related-Party Transactions The company engages in daily operating-related transactions with related parties, including commodity sales, service procurement, and financial services provided by Western Mining Finance Company (1) Related-Party Transactions Related to Daily Operations The company conducts related-party transactions with Western Mining Tianjin International Trade and Western Mining Hainan International Trade for selling and purchasing copper, lead, and zinc products, as well as agency services, with pricing referenced to SMM Related-Party Transactions Related to Daily Operations | Related Party | Transaction Item | Annual Estimated Amount (10,000 RMB) | Actual Amount in Current Period (10,000 RMB) | Pricing Policy | | :--- | :--- | :--- | :--- | :--- | | Western Mining Tianjin International Trade | Sales of copper, lead, zinc products | 136,038 | 52,522 | Referencing SMM pricing | | Western Mining Tianjin International Trade | Procurement of copper, lead, zinc, sulfur products and agency services | 109,347 | 84,237 | Referencing SMM pricing | | Western Mining Hainan International Trade | Procurement of lead, zinc products and agency services | 88,882 | 31,313 | Referencing SMM pricing | (5) Financial Business Between the Company and Related Financial Companies, and Between the Company's Controlled Financial Company and Related Parties Controlled subsidiary Western Mining Finance Company provides deposit, loan, and credit services to Western Mining Group and its affiliates, with significant balances in deposits, loans, and credit lines at period-end Deposit Business Overview | Related Party | Relationship | Beginning Balance (RMB) | Total Deposits in Current Period (RMB) | Total Withdrawals in Current Period (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Western Mining Group | Associate Shareholder | 430,940,203 | 10,233,921,187 | 10,551,611,796 | 113,249,594 | | Western Mining Tianjin International Trade | Wholly-owned subsidiary of parent company | 218,555,971 | 10,250,962,373 | 10,407,583,773 | 61,934,571 | | Total | / | 1,349,076,653 | 27,259,396,311 | 27,552,978,709 | 1,055,494,255 | Loan Business Overview | Related Party | Relationship | Loan Limit (RMB) | Beginning Balance (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Western Mining Group | Associate Shareholder | 2,150,000,000 | 1,181,225,889 | 1,160,000,000 | | Western Mining Tianjin International Trade | Wholly-owned subsidiary of parent company | 1,200,000,000 | 1,121,586,598 | 1,100,000,000 | | Total | / | / | 3,479,203,269 | 3,618,247,716 | Credit or Other Financial Business Overview | Related Party | Relationship | Business Type | Total Amount (RMB) | Actual Amount Incurred (RMB) | | :--- | :--- | :--- | :--- | :--- | | Western Mining Group | Associate Shareholder | Loans, Acceptances | 3,000,000,000 | 1,570,000,000 | | Western Mining Tianjin International Trade | Wholly-owned subsidiary of parent company | Loans, Discounts, Acceptances | 2,100,000,000 | 1,100,000,000 | | Total | / | / | 7,760,000,000 | / | XI. Major Contracts and Their Performance During the reporting period, the company had no external guarantees, but its guarantees for subsidiaries totaled 6.015 billion RMB, representing 35.20% of net assets, with 1.958 billion RMB for entities with a debt-to-asset ratio exceeding 70% (2) Major Guarantees Performed and Not Yet Performed During the Reporting Period The company had no external guarantees during the reporting period, but its guarantees for subsidiaries totaled 6.015 billion RMB, representing 35.20% of net assets, with 1.958 billion RMB for entities with a debt-to-asset ratio exceeding 70% - The company had no external guarantees during the reporting period[104] - At the end of the reporting period, the total guarantee balance for subsidiaries was 6.01512 billion RMB[104] - The total guarantee amount accounted for 35.20% of the company's net assets[104] - The amount of debt guarantees provided directly or indirectly for guaranteed entities with a debt-to-asset ratio exceeding 70% was 1.95771 billion RMB[104] Section VI Share Changes and Shareholder Information This section details the company's share capital changes and shareholder structure, including the total number of shareholders and the top ten shareholders I. Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[107] II. Shareholder Information As of the end of the reporting period, the total number of common shareholders was 113,242, with Western Mining Group and its concerted party holding 30.93% as the controlling shareholder - As of the end of the reporting period, the total number of common shareholders was 113,242[108] Shareholding of Top Ten Shareholders | Shareholder Name | Period-end Shareholding (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Western Mining Group Co., Ltd. | 559,459,971 | 23.48 | State-owned Legal Person | | Qinghai Western Mining Asset Management Co., Ltd. | 177,660,077 | 7.46 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 117,152,372 | 4.92 | Other | | Ruizhong Life Insurance Co., Ltd. - Proprietary Funds | 56,913,609 | 2.39 | Other | | Lin Sihua | 43,251,246 | 1.81 | Domestic Natural Person | | Xinjiang Tacheng International Resources Co., Ltd. | 30,000,000 | 1.26 | Domestic Non-state-owned Legal Person | | Xinjiang Tongyu Equity Investment Co., Ltd. | 25,620,000 | 1.08 | Domestic Non-state-owned Legal Person | | Agricultural Bank of China Co., Ltd. - CSI 500 ETF | 24,845,944 | 1.04 | Other | | Taikang Life Insurance Co., Ltd. - Participating - Individual Participating - 019L - FH002 | 24,597,920 | 1.03 | Other | | SDIC Securities Co., Ltd. | 21,979,965 | 0.92 | Other | - Western Mining Group Co., Ltd. and Qinghai Western Mining Asset Management Co., Ltd. are concerted parties, holding a total of 737,120,048 shares, with a combined shareholding ratio of 30.93%[111] - Xinjiang Tacheng International Resources Co., Ltd. pledged 30,000,000 shares, and SDIC Securities Co., Ltd. pledged 12,000,000 shares[110][111](index