宝地矿业(601121) - 2025 Q2 - 季度财报

Definitions This chapter defines key professional terms and abbreviations used throughout the report, essential for report comprehension - The chapter provides definitions for professional terms and abbreviations of the company and related parties, essential for report comprehension[13] Company Profile and Key Financial Indicators This section provides the company's basic information, key accounting data, financial indicators, and details on non-recurring gains and losses Company Basic Information This chapter details the company's basic business information, including its full name, stock code 601121, and legal representative Gao Wei | Item | Content | | :--- | :--- | | Company Full Chinese Name | Xinjiang Baodi Mining Co., Ltd. | | Company Chinese Abbreviation | Baodi Mining | | Legal Representative | Gao Wei | | Stock Exchange | Shanghai Stock Exchange | | Stock Abbreviation | Baodi Mining | | Stock Code | 601121 | Key Accounting Data and Financial Indicators Operating revenue increased by 23.65%, but net profit attributable to shareholders declined by 40.11% due to lower iron concentrate prices and rising costs, while operating cash flow grew steadily | Key Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 721,459,395.05 | 583,489,722.00 | 23.65 | | Net Profit Attributable to Shareholders | 61,592,025.04 | 102,848,848.61 | -40.11 | | Net Profit Attributable to Shareholders (Excl. Non-recurring) | 54,053,926.12 | 91,933,753.51 | -41.20 | | Net Cash Flow from Operating Activities | 259,196,687.53 | 236,604,114.57 | 9.55 | | Asset Status | End of Current Period (RMB) | End of Prior Year (RMB) | Change from Prior Year-End (%) | | Total Assets | 6,727,187,950.03 | 6,531,272,777.84 | 3.00 | | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.08 | 0.13 | -38.46 | | Basic EPS (Excl. Non-recurring) (RMB/share) | 0.07 | 0.11 | -36.36 | | Weighted Average Return on Net Assets (%) | 2.00 | 3.33 | decreased by 1.33 percentage points | - The company's profit decline was primarily due to a decrease in iron concentrate selling prices and increased costs compared to the prior period, leading to a lower gross profit margin[24][25] Non-recurring Gains and Losses Items and Amounts Total non-recurring gains and losses for the period were RMB 7.54 million, mainly from investment income on structured deposits and government subsidies | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Fair Value Changes and Disposal Gains/Losses from Financial Assets Held | 5,412,052.70 | | Government Subsidies Recognized in Current Profit/Loss | 2,826,473.17 | | Funds Occupancy Fees Received from Non-financial Enterprises | -1,173,938.67 | | Other Non-operating Income/Expenses and Non-current Asset Disposal Gains/Losses | 546,044.27 | | Total | 7,538,098.92 | Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, operations, core competitiveness, and key financial changes during the reporting period Industry and Main Business Overview The company primarily engages in iron ore mining, beneficiation, and iron concentrate sales, facing a challenging market with the Platts index declining by 7.01% in the first half of 2025, while actively advancing multiple mining projects - In the first half of 2025, the iron ore market experienced a "rise first, then fall" trend, with the Platts index decreasing from $106.9 at the beginning of the year to $94.47 in June, a 7.01% decline, with an average Platts index of $100.7, down $16.7 year-on-year[32] - The company's main business involves iron ore mining, beneficiation, and iron concentrate sales, operating four major mining areas (Haxiyatu, Baoshan, Songhu, Beizhan) with an approved iron ore mining capacity of 13.7 million tons/year[38] - The company is actively advancing key projects, including the 10 million tons/year mining and beneficiation project at Beizhan Iron Mine, the expansion of Songhu Iron Mine to 2 million tons/year, and production at Haxiyatu multi-metal iron mine, aiming to enhance capacity and consolidate its industry position[39] Discussion and Analysis of Operations In the first half of 2025, the company made significant progress on key projects, enhanced resource reserves, technological innovation, and internal controls, and is currently pursuing the acquisition of an 87% stake in Congling Energy - Key project progress includes: Beizhan Company's 10 million tons/year mining and beneficiation project obtaining a mining license; Songhu Iron Mine's 2 million tons/year renovation and expansion project receiving approval; and Haxiyatu multi-metal iron mine's production and operation proceeding in an orderly manner[42] - The company has made progress in intelligent mine construction, with safety control platforms, integrated communication systems, 3D geological models, and unattended fixed equipment projects completed and in trial operation[45] - A significant event during the reporting period is the proposed acquisition of an aggregate 87% equity stake in Congling Energy through share issuance and cash payment, along with raising supporting funds; this application was accepted by the Shanghai Stock Exchange on July 29, 2025[49][50] Analysis of Core Competitiveness The company's core competitiveness stems from its rich, high-grade resource endowment, geographical advantage in Xinjiang, significant potential scale from ongoing projects, and strong governance and shareholder support as a state-controlled listed entity - The company's mines boast iron ore grades higher than the national average, with Songhu Iron Mine averaging 44.46% and Beizhan Iron Mine 42.45%, indicating a strong and rare resource endowment[52][53] - With the Songhu, Haxiyatu, and Beizhan projects reaching full production, the company's raw ore mining capacity and iron concentrate output will significantly increase, while the proposed acquisition of Congling Energy will further enhance its resource base in Southern Xinjiang[55] - As a state-controlled listed company and a "Double Hundred Enterprise" under the State-owned Assets Supervision and Administration Commission, the company possesses a standardized corporate governance structure, an excellent management team, and effective support from its controlling shareholder, Xin Mining Group, in resource acquisition and technological advancement[56] Analysis of Key Operating Conditions This section analyzes the company's H1 operating performance across financial data, asset-liability structure, investment activities, and subsidiary operations, noting profit decline despite revenue growth, increased capital expenditure, and reduced subsidiary performance Analysis of Financial Statement Item Changes Operating costs surged by 62.31% due to increased sales volume, while management and R&D expenses rose by 30.71% and 49.56% respectively; net cash flow from investing activities saw a 1,969.33% outflow due to infrastructure investments and structured deposits, while financing cash flow turned positive from increased borrowings | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 721,459,395.05 | 583,489,722.00 | 23.65 | | Operating Cost | 477,816,672.57 | 294,384,561.62 | 62.31 | | Administrative Expenses | 69,680,242.98 | 53,308,026.49 | 30.71 | | Net Cash Flow from Investing Activities | -655,865,482.61 | 35,085,682.32 | -1,969.33 | | Net Cash Flow from Financing Activities | 137,805,033.95 | -56,707,232.37 | Not Applicable | Analysis of Assets and Liabilities As of the end of the reporting period, the company's asset-liability structure significantly changed, with trading financial assets increasing by 84.28% due to structured deposit purchases, accounts receivable surging by 1,143.04% from increased credit sales, and notes payable and long-term borrowings rising by 101.79% and 139.03% respectively to support project construction | Item Name | End of Current Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 664,835,602.82 | 360,766,962.76 | 84.28 | | Accounts Receivable | 143,022,725.12 | 11,505,890.36 | 1,143.04 | | Notes Payable | 211,702,189.44 | 104,913,603.90 | 101.79 | | Long-term Borrowings | 239,127,462.62 | 100,041,500.00 | 139.03 | Analysis of Investment Status During the reporting period, the company's external investments focused on major non-equity projects, with significant capital commitments to the Songhu Iron Mine expansion (RMB 980 million), Beizhan Iron Mine project (RMB 5.23 billion), and Haxiyatu multi-metal iron mine project (RMB 812 million), while also deregistering Baodi Technology and Mengxi Mining - The company is advancing three key projects: - Songhu Iron Mine: 2 million tons/year renovation and expansion, planned investment of RMB 980 million, with RMB 522 million completed - Beizhan Iron Mine: 10 million tons/year project, estimated investment of RMB 5.23 billion, with RMB 437 million completed - Haxiyatu Multi-metal Iron Mine: 1.44 million tons/year project, planned investment of RMB 812 million, with RMB 680 million completed - The company deregistered its wholly-owned subsidiary Baodi Technology (due to unsuccessful bidding for lithium mine exploration rights) and its associate company Mengxi Mining[64][65] Analysis of Major Holding and Associate Companies During the reporting period, net profits of major subsidiaries Tianhua Mining and Hejing Beizhan significantly declined by 35.95% and 42.22% respectively, primarily due to lower iron concentrate selling prices and increased costs, which largely impacted the company's overall net profit | Company Name | Net Profit (RMB 10,000) | Notes | | :--- | :--- | :--- | | Tianhua Mining | 2,956.48 | Decreased by 35.95% YoY | | Hejing Beizhan | 8,234.92 | Decreased by 42.22% YoY | | Yi Wu Baoshan | 566.95 | - | | Haxiyatu | -131.40 | - | - The company's net profit decline was mainly due to the significant drop in net profits of subsidiaries Tianhua Company and Beizhan Company, fundamentally caused by decreased iron concentrate selling prices and increased costs[71] Potential Risks The company faces significant risks including macroeconomic cyclical fluctuations impacting the steel industry, iron ore price volatility, policy adjustments, high customer concentration, safety production risks in mining, and potential delays in new and expansion projects - The company faces six major risks: economic cycle risk, iron ore price fluctuation risk, industrial policy risk, customer concentration risk, safety production risk, and project progress falling short of expectations risk[74][76][77][78][79][80] Corporate Governance, Environment, and Society This section details changes in the company's board and senior management, including new appointments and governance structure adjustments, and confirms the absence of a profit distribution plan for the reporting period Changes in Directors and Senior Management During the reporting period, the company underwent significant personnel changes, with Mr. Gao Wei elected as the new Chairman and Mr. Zhao Qiwei appointed as the new General Manager, while the former Chairman Mr. Zou Yanping resigned, and the supervisory board was abolished, with its functions now exercised by the Audit and Compliance Management Committee - Company senior management adjustments: - Gao Wei: Transitioned from General Manager to Chairman - Zhao Qiwei: Promoted from Deputy General Manager to General Manager and Director - Wang Jiangpeng: Appointed as Deputy General Manager - Zou Yanping: Resigned from Chairman and all other positions - Corporate Governance Structure Adjustment: The supervisory board was abolished, and its functions are now exercised by the Audit and Compliance Management Committee[83][85][86][87] Profit Distribution Plan The company has no profit distribution or capital reserve capitalization plan for this reporting period - For the first half of 2025, the company has no profit distribution or capital reserve capitalization plan[90] Significant Matters This section covers the fulfillment of commitments by the company and related parties, details of a major related-party transaction involving the acquisition of Congling Energy, and the progress of raised funds utilization Fulfillment of Commitments During the reporting period, the company, its controlling shareholder, actual controller, and other related parties strictly fulfilled all commitments made in the initial public offering, major asset restructuring, and acquisition reports, including share lock-ups, avoiding horizontal competition, regulating related-party transactions, maintaining the listed company's independence, and stabilizing stock prices, with no breaches of commitment - The company and related parties strictly fulfilled all public commitments during the reporting period, covering aspects such as initial public offering, major asset restructuring, and acquisitions, with all commitments being timely and rigorously met[93] Major Related-Party Transactions The most significant related-party transaction during the reporting period is the company's proposed acquisition of an 87% equity stake in Congling Energy through share issuance and cash payment, along with raising supporting funds; this transaction, approved by the Xinjiang SASAC, was accepted by the Shanghai Stock Exchange on July 31, 2025, and is currently under review - The company is advancing a major related-party transaction to acquire an 82% equity stake in Congling Energy through share issuance and cash payment, and an additional 5% stake via cash payment, while raising supporting funds not exceeding RMB 560 million, aiming to make Congling Energy a wholly-owned subsidiary[49][192] - This acquisition has received in-principle approval from the Xinjiang SASAC and was formally accepted by the Shanghai Stock Exchange on July 31, 2025, entering the review stage[194][195] Progress of Raised Funds Utilization The company's net proceeds from its initial public offering amounted to RMB 814.45 million, with RMB 598.17 million cumulatively invested as of the end of the reporting period, representing a 73.45% investment progress, primarily for the Songhu Iron Mine mining and beneficiation renovation and expansion project and supplementing working capital; the Songhu Iron Mine project's construction scale was changed from 1.5 million tons/year to 2 million tons/year during the period | Item | Amount (RMB) | | :--- | :--- | | Net Proceeds from IPO | 814,448,113.05 | | Cumulative Investment as of Period-End | 598,174,750.28 | | Cumulative Investment Progress | 73.45% | | Amount Invested This Year | 24,186,341.79 | - The construction scale of the "Xinjiang Tianhua Mining Co., Ltd. Songhu Iron Mine Mining and Beneficiation Renovation and Expansion Project" has been changed from 1.5 million tons/year to 2 million tons/year, but the amount of raised funds invested, implementation location, and entity remain unchanged[202] Share Capital Changes and Shareholder Information This section confirms no changes in the company's total share capital or structure during the reporting period and provides details on its 31,035 shareholders, highlighting the stable and concentrated ownership by its top two state-owned corporate shareholders Share Capital Changes During the reporting period, the company's total share capital and equity structure remained unchanged - During the reporting period, the company's total share capital and equity structure remained unchanged[204] Shareholder Information As of the end of the reporting period, the company had 31,035 common shareholders, with the top two state-owned corporate shareholders, Xinjiang Geology and Mineral Investment (Group) Co., Ltd. and Turpan Jinyuan Mining and Metallurgy Co., Ltd., collectively holding 52.5%, indicating a stable and concentrated ownership structure - As of the end of the reporting period, the company had a total of 31,035 common shareholders[205] | Shareholder Name | Shares Held at Period-End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Xinjiang Geology and Mineral Investment (Group) Co., Ltd. | 282,000,000 | 35.25 | State-owned Legal Person | | Turpan Jinyuan Mining and Metallurgy Co., Ltd. | 138,000,000 | 17.25 | State-owned Legal Person | | Xinjiang Haiyi Equity Investment Co., Ltd. | 37,189,669 | 4.65 | Domestic Non-state-owned Legal Person | | Xu Sihan | 20,726,471 | 2.59 | Domestic Natural Person | | Xinjiang State-owned Capital Industry Investment Fund Limited Partnership | 14,705,883 | 1.84 | Other | Bond-Related Information This section confirms that the company had no outstanding corporate bonds or other debt financing instruments during the reporting period Corporate Bonds and Other Debt Financing Instruments During the reporting period, the company had no outstanding corporate bonds, enterprise bonds, or non-financial enterprise debt financing instruments - The company has no outstanding corporate bonds, enterprise bonds, or non-financial enterprise debt financing instruments[212] Financial Report This section presents the company's unaudited financial statements, detailing key accounting policies and estimates, and providing comprehensive notes to the consolidated financial statement items Financial Statements This semi-annual report is unaudited; the financial statements show total assets of RMB 6.73 billion, a 3.00% increase from the beginning of the period, operating revenue of RMB 721.46 million, a 23.65% year-on-year increase, but net profit attributable to parent company shareholders of RMB 61.59 million, a significant 40.11% year-on-year decrease, while net cash flow from operating activities remained robust at RMB 259.20 million Consolidated Balance Sheet Key Data | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 6,727,187,950.03 | 6,531,272,777.84 | | Total Liabilities | 2,758,078,646.53 | 2,663,886,137.71 | | Equity Attributable to Parent Company Owners | 3,089,032,361.93 | 3,046,008,479.50 | Consolidated Income Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 721,459,395.05 | 583,489,722.00 | | Total Operating Costs | 595,982,152.66 | 392,151,624.35 | | Total Profit | 134,629,529.07 | 210,982,385.07 | | Net Profit Attributable to Parent Company Shareholders | 61,592,025.04 | 102,848,848.61 | Consolidated Cash Flow Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 259,196,687.53 | 236,604,114.57 | | Net Cash Flow from Investing Activities | -655,865,482.61 | 35,085,682.32 | | Net Cash Flow from Financing Activities | 137,805,033.95 | -56,707,232.37 | | Cash and Cash Equivalents at Period-End | 570,027,006.19 | 1,053,207,690.21 | Significant Accounting Policies and Estimates The company's financial statements are prepared on a going concern basis, adhering to enterprise accounting standards, with key policies including revenue recognition upon customer control transfer, inventory valuation using the weighted average method, long-term equity investments accounted for by cost or equity method, fixed asset depreciation by straight-line or units-of-production method, and capitalization of qualifying development stage R&D expenditures, with no significant changes in accounting policies or estimates during the reporting period - The company uses a 12-month operating cycle as the standard for classifying assets and liabilities as current or non-current[246] - Revenue is recognized when the customer obtains control of the related goods or services; for sales, revenue is recognized upon product weighing and delivery or when both parties sign the settlement statement, as per contract terms[299][300] - The company accrues safety production fees in accordance with national regulations, charging them to relevant product costs or current profit/loss, and simultaneously recording them in the "Special Reserve" account[313] Notes to Consolidated Financial Statement Items This chapter provides detailed explanations of the composition and changes in major consolidated financial statement accounts, highlighting significant increases in trading financial assets due to structured deposit purchases, fluctuations in notes and accounts receivable from business model changes, substantial growth in construction in progress reflecting ongoing project investments, and increased long-term borrowings and notes payable supporting project funding