西藏珠峰(600338) - 2025 Q2 - 季度财报

Important Notice This semi-annual report is unaudited, with management assuring its accuracy and completeness, no profit distribution plan, and forward-looking statements are not commitments - This semi-annual report is unaudited[6] - Company head Huang Jianrong, chief accountant Zhao Jianxiong, and head of accounting department Zhao Jianxiong declare the financial report in the semi-annual report is true, accurate, and complete[6] - No profit distribution or capital reserve to share capital plan is applicable for this reporting period[7] - There are no non-operating funds occupied by controlling shareholders or other related parties, nor any external guarantees provided in violation of decision-making procedures[8] Section I Definitions This section defines key terms used in the report, including company names, controlling shareholders, subsidiaries, operating countries, financial markets, and the reporting period - Tibet Summit Resources Co., Ltd. refers to Tibet Summit Resources Co., Ltd[13] - The controlling shareholder is Xinjiang Tacheng International Resources Co., Ltd.[13] - Major business involves mining projects in Tajikistan (Tajik-China Mining) and Argentina (Argentina Lithium and Potassium, Argentina Tosa)[13] - The reporting period is from January 1, 2025, to June 30, 2025[13] Section II Company Profile and Key Financial Indicators In the first half of 2025, the company achieved significant performance growth with substantial increases in operating revenue and net profit, and a positive shift in net cash flow from operating activities I. Company Information The company's full Chinese name is Tibet Summit Resources Co., Ltd., abbreviated as Tibet Summit Resources, with Huang Jianrong as its legal representative - The company's Chinese name is Tibet Summit Resources Co., Ltd., abbreviated as Tibet Summit Resources[15] - The company's legal representative is Huang Jianrong[15] II. Contact Person and Contact Information The company's Board Secretary is Sun Hua, and the Securities Affairs Representative is Gong Chaoran, with contact details publicly disclosed - The Board Secretary is Sun Hua, and the Securities Affairs Representative is Gong Chaoran[16] - The contact phone number is 021-66284908, and the email address is zhufengdb@zhufenggufen.com[16] III. Brief Introduction to Changes in Basic Information The company's registered address is in Lhasa, Tibet Autonomous Region, and its office address is in Jing'an District, Shanghai, with its website and email remaining unchanged - The company's registered address is No. 65 Beijing Middle Road, Lhasa, Tibet Autonomous Region, and its office address is 8th Floor, No. 305 Liuying Road, Jing'an District, Shanghai[17] IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations The company's designated information disclosure newspapers are China Securities Journal, Shanghai Securities News, and Securities Times, with the semi-annual report published on www.sse.com.cn - The company's selected information disclosure newspapers are China Securities Journal, Shanghai Securities News, and Securities Times[18] - The website address for publishing the semi-annual report is **www.sse.com.cn**[18](index=18&type=chunk) V. Company Stock Profile The company's A-shares are listed on the Shanghai Stock Exchange, with the stock abbreviation Tibet Summit Resources and stock code 600338 - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation Tibet Summit Resources and stock code 600338[19] VII. Key Accounting Data and Financial Indicators In the first half of 2025, the company's key accounting data and financial indicators showed strong performance, with operating revenue up 53.53% and net profit attributable to shareholders up 135.08% 2025 H1 Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,122,628,421.42 | 731,197,183.83 | 53.53 | | Total Profit | 393,006,017.78 | 155,592,845.63 | 152.59 | | Net Profit Attributable to Shareholders of Listed Company | 300,824,148.85 | 127,964,129.81 | 135.08 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 301,537,099.33 | 127,563,031.48 | 136.38 | | Net Cash Flow from Operating Activities | 271,706,730.63 | -6,801,693.97 | - | | End of Current Period | End of Prior Year | Period-end vs. Prior Year-end Change (%) | | | Net Assets Attributable to Shareholders of Listed Company | 4,143,702,080.90 | 3,674,953,661.58 | 12.76 | | Total Assets | 6,528,960,339.97 | 6,261,826,245.33 | 4.27 | 2025 H1 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.3291 | 0.1400 | 135.07 | | Diluted Earnings Per Share (RMB/share) | 0.3291 | 0.1400 | 135.07 | | Basic EPS (Excluding Non-recurring Gains/Losses) (RMB/share) | 0.3298 | 0.1395 | 136.42 | | Weighted Average Return on Net Assets (%) | 7.86 | 3.94 | 3.92 | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 7.88 | 3.93 | 3.95 | IX. Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to -0.71 million RMB, primarily from disposal of non-current assets and other non-operating income/expenses 2025 H1 Non-recurring Gains and Losses and Amounts | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -22,264.12 | | Other non-operating income and expenses apart from the above | -878,826.46 | | Less: Income tax impact | -189,480.96 | | Impact on minority interests (after tax) | 1,340.86 | | Total | -712,950.48 | Section III Management Discussion and Analysis This section analyzes the company's industry, main business, operating results, core competitiveness, financial position, risks, and significant matters, highlighting progress in non-ferrous metals and lithium resources I. Description of the Company's Industry and Main Business during the Reporting Period This section details market conditions and supply-demand for lead, zinc, copper, and lithium, along with the company's progress in non-ferrous metal mining, beneficiation, smelting, and lithium salt lake resource development (I) Industry Overview During the reporting period, lead prices fluctuated, zinc prices remained weak, copper prices showed an "N" shaped upward trend, and lithium carbonate prices generally "rose first, then fell, then rebounded," with supply remaining loose - In the first half of 2025, the average LME lead price was 1,981.05 USD/ton, a 7.80% year-on-year decrease; global lead concentrate output grew significantly, but consumption growth may not continue[29] - In the first half of 2025, the average LME zinc price was 2,700 USD/ton, a 3.57% year-on-year increase; global refined zinc output gradually recovered, but consumption slightly decreased year-on-year[31] - During the reporting period, the average LME copper price was 9,448 USD/ton, a 1.91% year-on-year increase; global copper mine increments fell short of expectations, with consumption growth driven by trade-in programs and government subsidies[31][32] - In the first half of 2025, the average lithium carbonate futures price was 70,400 RMB/ton, a 32.1% year-on-year decrease and 28.0% quarter-on-quarter decrease; global lithium resource capacity was released intensively, leading to a continuously loose supply-demand balance[35] (II) Main Business Overview The company's main business includes non-ferrous metal mining, beneficiation, and smelting, as well as lithium salt lake resource development, with significant projects in Tajikistan and Argentina - The company's main business is non-ferrous metal mining, beneficiation, and smelting, and it develops lithium salt lake resources through its holding companies[36] - Tajik-China Mining owns an operating super-large lead-zinc-copper-silver polymetallic mine with proven reserves of 70.11 million tons, a 4 million tons/year mining and beneficiation capacity, and 50,000 tons crude lead smelting capacity, with an additional 2 million tons mining and beneficiation expansion project underway[36] - The Argentina Angeles project has 2.05 million tons of lithium carbonate equivalent (LCE) lithium resources, and the Argentina Tosa Arizaro project has a reserve potential exceeding 10 million tons LCE[36] II. Discussion and Analysis of Operating Conditions In the first half of 2025, the company achieved significant results in production, project construction, safety, market value management, efficiency, external cooperation, and technological innovation, leading to substantial growth in revenue and net profit (I) Main Business Operations: Quality Improvement and Efficiency Enhancement Tajik-China Mining's production system operated smoothly and efficiently, with increased mining and beneficiation volumes, higher output of main metal products, significantly improved recovery rates, and effective cost reduction - Tajik-China Mining completed 1.81 million tons of mining, 1.50 million tons of ore extraction, and 1.52 million tons of beneficiation processing in the first half of the year[38] - Total output of lead, zinc, and copper concentrates reached 58,400 tons, a 34.22% increase year-on-year[38] Output and Growth Rate of Main Metal Products | Metal Type | Output (tons) | YoY Growth Rate (%) | | :--- | :--- | :--- | | Lead Metal | 29,200 tons | 44.53 | | Zinc Metal | 28,400 tons | 25.15 | | Copper Metal | 737.82 tons | 29.90 | | Silver Metal | 46.80 tons | 40.08 | - The beneficiation recovery rates for lead, zinc, and copper increased by 1.77, 2.05, and 3.87 percentage points, respectively, compared to 2024[39] (II) Key Projects: Empowering Future Growth Tajik-China Mining continues to optimize production management and advance beneficiation plant upgrades, while the Argentina salt lake project completed preliminary compliance and infrastructure optimization, with main construction planned for the second half - Tajik-China Mining's beneficiation plant upgrade project's main structure is expected to be completed within the year, enhancing beneficiation capacity[40] - The Argentina salt lake project successfully completed preliminary compliance procedures and optimized infrastructure construction plans, significantly reducing operating costs[40] - The focus for the second half of the year will be on advancing the main construction of the salt lake lithium extraction project and further strengthening cost control[40] (III) Safety Production: Strengthening Foundations The company comprehensively strengthened its safety production management system, achieving "zero fatalities, zero serious injuries" in the first half through regulatory mechanism restructuring, all-staff training, and a three-tier safety supervision network - The company comprehensively strengthened its safety production management system, establishing a system for hazard identification, rectification, and assessment standards[40] - Safety production achieved excellent results in the first half with "zero fatalities and zero serious injuries"[40] (IV) Market Value Management: Multi-faceted Efforts The company continuously enhances capital market recognition through strengthened investor communication, optimized shareholder return mechanisms, and a solid operating foundation, achieving significant revenue and net profit growth - In the first half, 40 investor questions were answered via the SSE E-interaction platform, over a hundred consultations were handled, and the annual performance briefing was successfully held[41] - The 2024 annual cash dividend plan of 0.55 RMB (tax inclusive) per 10 shares was implemented, with cash dividends accounting for 21.90% of net profit attributable to parent company[41] - In the first half of 2025, revenue increased by 53.53% year-on-year, and net profit increased by 135.08% year-on-year, indicating a continuous positive operating trend[42] (V) Management Efficiency: Comprehensive Improvement The company continues to advance digital transformation of financial management, enhancing operational efficiency and management levels through systematic information technology construction, while strengthening internal control systems for business compliance - The company continues to advance the digital transformation of financial management, comprehensively improving operational efficiency and management levels through systematic information technology construction[42] - Key optimizations include internal transaction settlement processes, the innovative introduction of an intelligent expense control system, and the completion of historical data standardization and verification[42] - Internal control system construction was comprehensively strengthened, contract management processes were optimized, a special action for subsidiary internal control standardization was launched, and a regular risk monitoring mechanism was established[43] (VI) External Work: Significant Achievements The company actively fulfills its social responsibilities, making donations for disaster relief, creating local employment through investments, supporting education and traditional festivals abroad, and integrating ESG principles into overseas operations - Donated 3.38 million RMB in cash to the earthquake-stricken area of Shigatse, Tibet, for emergency relief, resettlement, and reconstruction efforts[43] - Invested in and built a silver jewelry processing factory in Tajikistan, creating local employment; donated educational materials to schools and sponsored traditional festival activities in Argentina[43] - Utilized the "Chinese Workshop" platforms in Tajikistan and Argentina to cultivate interdisciplinary talents and promote youth exchanges between China and Argentina[44] - Actively participated in global mining governance, attending international mining conferences and sharing technological innovations, deeply integrating ESG principles into overseas project operations[45] (VII) Technological Innovation: Breakthroughs in Progress The company deeply implements an innovation-driven development strategy, continuously increasing R&D investment, focusing on salt lake lithium extraction technology and green beneficiation process upgrades, with R&D expenditure growing significantly - The company continuously increases R&D investment, focusing on technological breakthroughs in salt lake lithium extraction technology innovation and green beneficiation process upgrades[45] - R&D investment in the reporting period significantly increased compared to the same period last year, highlighting the growing support of technological innovation for the company's quality improvement and efficiency enhancement[46] III. Analysis of Core Competitiveness during the Reporting Period The company's core competitiveness stems from world-leading non-ferrous metal and lithium resource reserves, rapid capacity expansion, low operating costs, a product portfolio mitigating cyclical risks, extensive overseas development experience, and an internationalized management mechanism 1. World-Leading Non-Ferrous Metal Resource Reserves The company possesses world-leading non-ferrous metal and lithium resource reserves in its Tajik-China Mining and Argentina lithium salt lake projects, characterized by high quality and favorable development conditions - Tajik-China Mining's resource reserves within its mining rights rank 6th globally among similar mines[47] - Argentina Lithium and Potassium's Angeles project holds 2.05 million tons of lithium carbonate equivalent (LCE) lithium resources, with brine quality far exceeding average lithium concentrations[47] - Argentina Tosa's Arizaro project has a reserve potential estimated to exceed 10 million tons LCE[47] 2. Capability for Rapidly Expanding Resource Development Capacity The company demonstrates systematic capabilities in large-scale mining resource development, with Tajik-China Mining's capacity increasing from 1.5 million to 4 million tons, and the Argentina Angeles 30,000 tons LCE project leading in South America and globally - Tajik-China Mining's annual capacity increased from 1.5 million tons in 2015 to 4 million tons by the end of 2019[47] - The Angeles 30,000 tons LCE salt lake lithium extraction project ranks among the top in Argentina, South America, and globally[47] 3. Comprehensive Operating Management System with Low Operating Costs The company maintains a cost control strategy through refined management and economies of scale, ensuring high overall gross profit margins and strong adaptability to market fluctuations - Cost control strategy is a core operating management philosophy, integrated across the entire resource development value chain[48] - As one of the few listed companies primarily engaged in mining, it maintains a favorable overall gross profit margin to mitigate industry cyclical fluctuations[48] 4. Product Portfolio Structure Mitigating Cyclical Risks By diversifying into lithium, the company has formed a product portfolio of basic non-ferrous metals and energy metals, effectively smoothing and improving the impact of industry cyclical fluctuations on operations - The company expanded its focus to lithium, as a new profit growth point, to smooth and improve the impact of industry cyclical fluctuations on its operations[48] - The current product portfolio of basic non-ferrous metals and energy metals is a long-term correct strategic choice[48] 5. Accumulated Years of Comprehensive Experience in Overseas Resource Development The company's actual controllers and controlling shareholders, leveraging years of international commodity trading experience, successfully acquired and operate the Tajik-China Mining project, accumulating rich overseas management expertise - The company's actual controllers and controlling shareholders, with years of international bulk commodity trading experience, successfully acquired the Tajik-China Mining resource project[48] - Since its registration in 2007, Tajik-China Mining has accumulated rich and valuable management experience and practical approaches, becoming one of the most influential industrial enterprises in Tajikistan[48] 6. Internal Management Mechanism Emphasizing Both Internationalization and Commercialization The company adopts a modern mining enterprise operating model of "(internal) international management team + (external) professional operating team" in its Tajik-China Mining and Argentina lithium salt lake projects, evaluating its work against international market standards - The company adheres to a modern mining enterprise operating model of "(internal) international management team + (external) professional operating team"[49] - Evaluating and measuring its work against international market standards helps in understanding the key demands of investment host countries and achieving synergistic win-win outcomes[49] IV. Major Operating Conditions during the Reporting Period This section analyzes the company's financial statement item changes, asset-liability status, and overseas assets, revealing significant revenue and profit growth, balance sheet shifts, and restricted asset details (I) Main Business Analysis During the reporting period, the company's operating revenue increased by 53.53% due to higher sales volume, while operating costs rose by 19.85% but unit costs decreased, and net cash flow from operating activities significantly improved Analysis of Changes in Financial Statement Items | Item | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,122,628,421.42 | 731,197,183.83 | 53.53 | | Operating Cost | 527,714,847.21 | 440,322,368.90 | 19.85 | | Selling Expenses | 10,316,634.31 | 9,053,190.73 | 13.96 | | Administrative Expenses | 119,043,053.23 | 87,806,751.53 | 35.57 | | Financial Expenses | -53,069,485.39 | -14,843,982.03 | -257.52 | | R&D Expenses | 2,508,860.69 | - | - | | Net Cash Flow from Operating Activities | 271,706,730.63 | -6,801,693.97 | 4094.69 | | Net Cash Flow from Investing Activities | -238,807,401.47 | -160,805,189.76 | -48.51 | | Net Cash Flow from Financing Activities | -143,667,245.54 | 185,452,429.30 | -177.47 | - The increase in operating revenue was primarily due to the company's production recovering to normal capacity and a year-on-year increase in sales volume[52] - The decrease in financial expenses was mainly due to the company repaying borrowings, with interest expenses decreasing as interest-bearing liabilities reduced, and exchange gains/losses[52] - Net cash flow from operating activities increased by 4,094.69% compared to the same period last year, primarily due to increased sales revenue and strengthened cash management[53] (III) Analysis of Assets and Liabilities At the end of the reporting period, the company saw decreases in monetary funds, inventories, short-term borrowings, contract liabilities, and other payables, while fixed assets and construction in progress increased, reflecting project investments and debt repayments Changes in Assets and Liabilities | Item Name | Current Period-end (RMB) | % of Total Assets at Period-end | Prior Year-end (RMB) | % of Total Assets at Prior Year-end | % Change from Prior Year-end | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 21,924,454.13 | 0.34 | 153,618,517.01 | 2.45 | -85.73 | | Inventories | 162,985,754.43 | 2.50 | 171,416,755.21 | 2.74 | -4.92 | | Fixed Assets | 2,975,661,720.53 | 45.58 | 2,673,449,966.57 | 42.69 | 11.30 | | Construction in Progress | 870,806,173.85 | 13.34 | 790,542,503.86 | 12.62 | 10.15 | | Short-term Borrowings | 112,600,601.34 | 1.72 | 147,308,074.16 | 2.35 | -23.56 | | Contract Liabilities | 638,588,261.21 | 9.78 | 686,520,559.97 | 10.96 | -6.98 | | Other Payables | 588,265,178.52 | 9.01 | 626,345,750.45 | 10.00 | -6.08 | - Overseas assets amounted to 6.24 billion RMB, accounting for 95.60% of total assets[57] Major Overseas Asset Information | Overseas Asset Name | Reason for Formation | Operating Model | Current Period Operating Revenue (million RMB) | Current Period Net Profit (million RMB) | | :--- | :--- | :--- | :--- | :--- | | Tajik-China Mining | Business Combination under Common Control | Non-ferrous Metal Industry | 1,122.48 | 244.92 | | Tibet Summit Resources Hongkong Limited | Business Combination not under Common Control | Non-ferrous Metal Industry | 0 | -59.66 | Major Asset Restrictions as of the End of the Reporting Period | Item | Book Value (RMB) | Type of Restriction | Reason for Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds - Bank Deposits | 571.53 | Frozen | Judicial control and freezing of balance | | Monetary Funds - Bank Deposits | 1,487.37 | Frozen | Judicial control and freezing of balance | | Fixed Assets | 716,000,000.00 | Pledged | Pledge of movable assets in Tajikistan to Shandong Port Tok | | Long-term Equity Investment - 70% Equity in Tajik-China Mining Co., Ltd. | 551,812,869.62 | Pledged | Pledge of 70% equity in Tajik-China Mining to Shandong Port Tok | | Fixed Assets | 214,896,825.47 | Pledged | Oriental Bank, Enterprise Bank, International Bank | | Long-term Equity Investment - 30% Equity in Tajik-China Mining Co., Ltd. | 236,491,229.84 | Pledged | Pledge of 30% equity in Tajik-China Mining to Jiangsu Bank | | Total | 1,719,202,983.83 | / | / | (IV) Analysis of Investment Status During the reporting period, the company established TIBET SUMMIT RESOURCES SINGAPORE PTE. LTD., with Tibet Summit Resources Hongkong Limited holding 60% equity, though no capital contribution has been made yet - On February 25, 2025, TIBET SUMMIT RESOURCES SINGAPORE PTE. LTD. was established with a registered capital of 10 million USD, and Tibet Summit Resources Hongkong Limited holds 60% of its equity[64] - As of June 30, 2025, Tibet Summit Resources Hongkong Limited has not yet made its capital contribution[64] V. Other Disclosures This section discloses potential risks including market price fluctuations, exchange rate volatility, overseas country risks, liquidity issues, and safety/environmental compliance risks, along with updates on capital increases for Argentina Lithium and Potassium and Tajik-China Mining, and the establishment of Tibet Summit Singapore (I) Potential Risks The company faces risks from product market price fluctuations, foreign exchange rate volatility, overseas country risks, accumulated operational liquidity issues, and safety/environmental compliance risks, which it addresses through various mitigation strategies - The company's main products are lead-zinc-copper concentrates and associated silver, whose price fluctuations may lead to unstable operating performance[65] - The company's daily operations involve multiple foreign currencies such as USD, Somoni, and Peso, and exchange rate fluctuations may bring exchange loss risks[67] - The company's investments in Tajikistan, Argentina, and other regions face country-specific risks arising from differences in political and legal environments[67] - The company faces the risk of accumulated operational liquidity issues and is addressing them by increasing production, reducing capital expenditures, and seeking cooperation[68] - Mineral resource extraction and processing operations carry risks of safety and environmental accidents[69] (II) Other Disclosure Matters Argentina Lithium and Potassium's capital increase resolution has been passed by shareholders, pending local registration; Tajik-China Mining's capital increase is progressing in Tajikistan and China; Tibet Summit Hongkong Limited established a joint venture in Singapore, with domestic filing underway - Argentina Lithium and Potassium's capital increase has been approved by the shareholders' meeting, pending local registration and filing procedures[70] - Tajik-China Mining's capital increase is being advanced in Tajikistan and domestically, aiming to raise its registered capital to 300 million USD[71][72] - Tibet Summit Hongkong Limited has established a 60%-owned joint venture, TIBET SUMMIT RESOURCES SINGAPORE PTE. LTD., in Singapore, with domestic Outbound Direct Investment (ODI) filing procedures currently underway[72] Section IV Corporate Governance, Environment and Society This section discloses changes in directors, supervisors, and senior management, the inapplicability of profit distribution plans, and the progress of employee stock ownership plans, emphasizing the company's transparency in governance, environmental, and social responsibilities I. Changes in the Company's Directors, Supervisors, and Senior Management During the reporting period, Mr. Yang Hongjun resigned as a director, and Mr. Wei Jianhua was elected as a non-independent director of the company's ninth board of directors - Mr. Yang Hongjun resigned from his position as a company director due to personal reasons[74] - Mr. Wei Jianhua was elected as a non-independent director of the company's ninth board of directors[74] II. Profit Distribution or Capital Reserve to Share Capital Plan This semi-annual report does not include a profit distribution or capital reserve to share capital plan - This semi-annual report does not include a profit distribution or capital reserve to share capital plan[75] III. Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact The first phase of the company's medium-to-long-term employee stock ownership plan completed stock purchases in June 2022, acquiring 1.655 million shares for 44.98 million RMB, with a lock-up period until April 30, 2026 - The first phase of the company's medium-to-long-term employee stock ownership plan completed stock purchases on June 15, 2022[75] - A total of 1.655 million shares were purchased, using 44.98 million RMB[75] - The lock-up period for these shares is from June 16, 2022, to April 30, 2026[75] Section V Significant Matters This section details the fulfillment of important commitments, confirms the absence of illegal guarantees and major litigation, discloses related party debt and credit, and outlines significant guarantees provided for subsidiaries I. Fulfillment of Commitments The company's actual controllers, Ms. Huang Ying and Mr. Huang Jianrong, committed to ensuring the company's independence, avoiding competition, and regulating related party transactions, commitments that are long-term and strictly fulfilled - The company's actual controllers, Ms. Huang Ying and Mr. Huang Jianrong, committed to ensuring the company's independence, avoiding horizontal competition, and reducing and regulating related party transactions[79] - The commitment was made on April 17, 2009, is long-term effective, and has been timely and strictly fulfilled[79] III. Illegal Guarantees During the reporting period, the company had no illegal guarantees - During the reporting period, the company had no illegal guarantees[80] VII. Major Litigation and Arbitration Matters During the reporting period, the company had no major litigation or arbitration matters - The company had no major litigation or arbitration matters during this reporting period[81] X. Major Related Party Transactions This section discloses the company's related party debt and credit transactions, primarily involving borrowings from controlling shareholder Xinjiang Tacheng International Resources Co., Ltd. and related individual Zhu Kun, which helped alleviate the company's liquidity strain (IV) Related Party Debt and Credit Transactions As of the end of the reporting period, the company owed its controlling shareholder Xinjiang Tacheng International Resources Co., Ltd. 122.50 million RMB in principal and 36.94 million RMB in interest, and Zhu Kun 88.63 million RMB in principal and 27.24 million RMB in interest, which helped ease liquidity constraints Related Party Debt and Credit Transactions | Related Party | Relationship | Beginning Balance (million RMB) | Amount Incurred (million RMB) | Ending Balance (million RMB) | | :--- | :--- | :--- | :--- | :--- | | Tacheng International | Controlling Shareholder | 122.50 | 0 | 122.50 | | Zhu Kun | Other Related Party | 136.17 | -47.54 | 88.63 | | Total | | 258.67 | -47.54 | 211.13 | - As of the end of the reporting period, the company owed controlling shareholder Xinjiang Tacheng International Resources Co., Ltd. 122.50 million RMB in principal and 36.94 million RMB in interest[83] - As of the end of the reporting period, the company owed Zhu Kun 88.63 million RMB in principal and 27.24 million RMB in interest[83] XI. Major Contracts and Their Fulfillment This section discloses significant guarantees provided by the company for its subsidiaries, totaling 706.50 million RMB at the end of the reporting period, representing 16.81% of the company's net assets (II) Major Guarantees Performed and Unfulfilled during the Reporting Period The company provided joint and several liability guarantees for Tajik-China Mining's zinc and lead concentrate business with Shandong Gold Smart and Shandong Port Tok, and a general liability guarantee for Tibet Summit Hongkong Limited's diesel generator procurement Company Guarantee Total | Indicator | Amount (million RMB) | | :--- | :--- | | Total Guarantee Balance for Subsidiaries at Period-end (B) | 706.50 | | Total Guarantees (A+B) | 706.50 | | Total Guarantees as % of Company's Net Assets | 16.81 | - The company provided a joint and several liability guarantee of up to 500 million RMB for Tajik-China Mining's zinc and lead concentrate business with Shandong Gold Smart; this business was settled on July 29, 2025, and procedures for releasing the guarantee are underway[86][87] - The company provided a joint and several liability guarantee of up to 98 million USD for Tajik-China Mining's concentrate sales contract with Shandong Port Tok, with 70% of Tajik-China Mining's equity and movable assets in Tajikistan pledged as collateral[87] - The company provided a general liability guarantee for Tibet Summit Hongkong Limited's procurement of diesel generators, with a total contract amount of 34.09 million USD, and the related guarantee letter has not yet been issued[87] Section VI Changes in Shares and Shareholder Information This section details that the company's share capital structure remained unchanged, discloses the total number of shareholders, top ten shareholders, and circulating shareholders, and reports on shareholding changes of directors, supervisors, and senior management I. Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share capital structure - During the reporting period, there were no changes in the company's total share capital or share capital structure[90] II. Shareholder Information As of the end of the reporting period, the company had 99,189 common shareholders; among the top ten shareholders, China Global New Technology Import & Export Co., Ltd. and Sichuan Trust Co., Ltd. held significant stakes, with some shares of controlling shareholder Xinjiang Tacheng International Resources Co., Ltd. frozen (I) Total Number of Shareholders As of the end of the reporting period, the total number of common shareholders was 99,189 - As of the end of the reporting period, the total number of common shareholders was 99,189[90] (II) Shareholding of Top Ten Shareholders and Top Ten Circulating Shareholders (or Unrestricted Shareholders) as of the End of the Reporting Period Among the top ten shareholders, China Global New Technology Import & Export Co., Ltd. held 4.91%, and Sichuan Trust Co., Ltd. held 4.76%; controlling shareholder Xinjiang Tacheng International Resources Co., Ltd. held 3.07%, all of which were frozen Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period-end (shares) | Percentage (%) | Share Status | Number of Shares (shares) | | :--- | :--- | :--- | :--- | :--- | | China Global New Technology Import & Export Co., Ltd. | 44,864,380 | 4.91 | Unrestricted | 0 | | Sichuan Trust Co., Ltd. - Sichuan Trust - Jinxiu Youzhai No. 1 Collective Fund Trust Plan | 43,534,884 | 4.76 | Unrestricted | 0 | | Xinjiang Tacheng International Resources Co., Ltd. | 28,065,116 | 3.07 | Frozen | 28,065,116 | | Hong Kong Securities Clearing Company Limited | 16,981,700 | 1.86 | Unrestricted | 0 | | Lou Pengfei | 13,331,000 | 1.46 | Unrestricted | 0 | | Shenwan Hongyuan Securities Co., Ltd. | 13,072,183 | 1.43 | Unrestricted | 0 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | 8,435,700 | 0.92 | Unrestricted | 0 | | China Securities Co., Ltd. | 8,412,200 | 0.92 | Unrestricted | 0 | | Wu Chengzhi | 8,226,000 | 0.90 | Unrestricted | 0 | | Li Zhi | 8,226,000 | 0.90 | Unrestricted | 0 | - Xinjiang Tacheng International Resources Co., Ltd. and China Global New Technology Import & Export Co., Ltd. are parties acting in concert[93] III. Information on Directors, Supervisors, and Senior Management Company Vice President Hong Yuwei mistakenly reduced his shareholding by 16,600 shares on July 5, 2024, and subsequently repurchased them on January 15, 2025 - Vice President Hong Yuwei, due to an operational error, reduced his holding of 16,600 company shares through centralized bidding on July 5, 2024[95] - The aforementioned shares were repurchased on January 15, 2025[95] Section VII Bond-Related Information During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[98] - The company has no convertible corporate bonds[98] Section VIII Financial Report This section includes the company's consolidated and parent company financial statements for the first half of 2025, along with detailed notes, reflecting a stable financial position, improved profitability, and enhanced operating cash flow II. Financial Statements This section presents 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 2025 Consolidated Balance Sheet Key Data as of June 30, 2025 | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 6,528,960,339.97 | 6,261,826,245.33 | | Total Liabilities | 2,326,933,890.75 | 2,524,370,782.61 | | Total Owners' Equity Attributable to Parent Company | 4,143,702,080.90 | 3,674,953,661.58 | Consolidated Income Statement Key Data for January-June 2025 | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 1,122,628,421.42 | 731,197,183.83 | | Total Profit | 393,006,017.78 | 155,592,845.63 | | Net Profit | 293,366,465.96 | 126,530,352.63 | | Net Profit Attributable to Parent Company Shareholders | 300,824,148.85 | 127,964,129.81 | | Basic Earnings Per Share (RMB/share) | 0.3291 | 0.1400 | Consolidated Cash Flow Statement Key Data for January-June 2025 | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 271,706,730.63 | -6,801,693.97 | | Net Cash Flow from Investing Activities | -238,807,401.47 | -160,805,189.76 | | Net Cash Flow from Financing Activities | -143,667,245.54 | 185,452,429.30 | | Net Increase in Cash and Cash Equivalents | -128,905,973.39 | 19,817,060.70 | III. Company Basic Information The company was established on November 30, 1998, listed on the Shanghai Stock Exchange in December 2000, and its main business shifted to mineral resource exploration, mining, beneficiation, and smelting after acquiring Tajik-China Mining in 2015 - The company was established on November 30, 1998, and listed on the Shanghai Stock Exchange on December 27, 2000[130][131] - In 2015, through share issuance, it acquired 100% equity of Tajik-China Mining Co., Ltd., shifting its main business to mineral resource exploration, mining, beneficiation, and smelting[131][133] - The company's registered capital changed to 914.21 million RMB[132] IV. Basis for Preparation of Financial Statements The company's financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and relevant CSRC regulations, with management implementing measures to ensure continued operations despite current liquidity challenges 1. Basis of Preparation The company's financial statements are prepared on a going concern basis, in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and the CSRC's Information Disclosure Rules for Companies Issuing Securities No. 15 - The company's financial statements are prepared on a going concern basis, in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and the CSRC's Information Disclosure Rules for Companies Issuing Securities No. 15[134] 2. Going Concern As of June 30, 2025, the company's current liabilities exceeded current assets by 1.44 billion RMB; to ensure going concern, the company plans to accelerate project construction, pursue multi-channel financing, and secure financial support from its actual controllers - As of June 30, 2025, the company's current liabilities exceeded current assets by 1.44 billion RMB[135] - The company plans to take measures including accelerating expansion and technical upgrade projects, initiating capacity construction for the Angeles project, exploring multi-channel financing, and securing financial support from its actual controllers[135] - The company evaluated its ability to continue as a going concern for the 12 months from the end of the reporting period and found no significant doubts or circumstances regarding its going concern ability[136] V. Significant Accounting Policies and Accounting Estimates This section details the company's adherence to enterprise accounting standards, covering accounting periods, operating cycles, functional currency, business combinations, financial instruments, inventories, long-term equity investments, fixed assets, intangible assets, revenue recognition, and other key policies and estimates - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows[138] - The company uses a 12-month operating cycle as the standard for classifying assets and liabilities as current or non-current[140] - The company and its domestic subsidiaries use RMB as their functional currency, while overseas subsidiaries determine their functional currency based on their primary economic environment[141] - The company classifies financial assets into three categories based on its business model for managing financial assets and the contractual cash flow characteristics: measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[158] - The company provides for impairment losses on notes receivable, accounts receivable, other receivables, debt investments, other debt investments, and long-term receivables based on expected credit losses[165] - The company's revenue recognition principle is to recognize revenue when the customer obtains control of the related goods, primarily from the sale of concentrate products[212][214] VI. Taxes This section lists the company's and its domestic and overseas subsidiaries' main tax types and rates, including VAT, corporate income tax, urban maintenance and construction tax, education surcharges, local education surcharges, Hong Kong income tax, Tajikistan's social security tax, mining royalties, export rent, export duties, corporate profit tax, and dividend tax, as well as Argentina's corporate income tax and VAT 1. Main Tax Types and Rates The company and its domestic subsidiaries are subject to VAT at 13% and corporate income tax at 25%; Tajik-China Mining faces corporate profit tax at 18%, dividend tax at 12%, mining royalties at 6%, export rent at 8-10%, and export duties at 10%; Argentina has progressive corporate income tax rates and 21% VAT Main Tax Types and Rates | Tax Type | Rate | | :--- | :--- | | Company and Domestic Subsidiaries' Tax Types: | | | Value-Added Tax (VAT) | 13.00% | | Corporate Income Tax | 25.00% | | Urban Maintenance and Construction Tax | 5.00%, 7.00% | | Education Surcharge | 3.00% | | Local Education Surcharge | 2.00% | | Hong Kong Income Tax Rate | 16.50% | | Tajik-China Mining Co., Ltd. (Tajikistan) Tax Types: | | | Value-Added Tax (VAT) | Export exempt | | Customs Duty | 5.00-15.00% | | Social Security Tax | 20.00% | | Mining Royalty | 6.00% | | Corporate Profit Tax | 18.00% | | Dividend Tax | 12.00% | | Argentina Tax Policies: | | | Corporate Income Tax | 25%-35% (Progressive rates) | | Value-Added Tax (VAT) | 21% | - According to the China-Tajikistan Double Taxation Avoidance Agreement, the dividend tax rate should not exceed 5% under specific conditions[231] - The Government of the Republic of Tajikistan issued a document on May 14, 2025, stating that the export rent tax rate is 8% from June 1, 2025, and 10% from January 1, 2027[232] - The Government of the Republic of Tajikistan issued a resolution on June 14, 2025, applying a 10% export duty rate to lead, zinc, copper, and other ores and concentrates[232] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, offering an in-depth understanding of the company's financial position and operating results - The ending balance of monetary funds is 21.92 million RMB, of which 10.91 million RMB is deposited overseas[234] - The ending balance of derivative financial assets is 21.64 million RMB, primarily from sales pricing contracts[237] - The ending balance of accounts receivable is 1.62 million RMB, with a full provision for bad debts[240][242] - The ending balance of other receivables is 16.04 million RMB, with a 9.90 million RMB reversal of bad debt provision this period, mainly due to the recovery of receivables from Vimo Asia Limited[253][262][264] - The ending balance of inventories is 162.99 million RMB, primarily including raw materials, work-in-progress, finished goods, and goods in transit[268] - The ending book value of fixed assets is 2.98 billion RMB, with an increase of 607.46 million RMB this period, mainly due to transfers from construction in progress and foreign currency translation effects[287][288] - The ending book value of construction in progress is 661.69 million RMB, primarily including the lead smelting extension project and the Argentina salt lake project[293][294] - Total assets with restricted ownership or use rights amount to 1.72 billion RMB, mainly comprising fixed assets and pledged equity in Tajik-China Mining[321] - Operating revenue for the current period is 1.12 billion RMB, and operating cost is 527.71 million RMB, with main business revenue primarily from the mining and beneficiation industry in the Tajikistan segment[367][369] - Financial expenses for the current period are -53.07 million RMB, mainly influenced by net exchange gains[380] - Fair value change gains for the current period are 39.48 million RMB, primarily from derivative financial instruments[384] - Net cash flow from operating activities is 271.71 million RMB, a significant improvement from the previous period[399] VIII. Research and Development Expenses During the reporting period, the company's R&D expenses totaled 2.51 million RMB, all expensed, primarily for project research and development - Current R&D expenses amounted to 2.51 million RMB, all recognized as expense[408] IX. Changes in Consolidation Scope During the reporting period, the company's consolidation scope changed due to the establishment of TIBET SUMMIT RESOURCES SINGAPORE PTE. LTD., in which Tibet Summit Hongkong Limited holds 60% equity, though no capital contribution has been made yet - On February 25, 2025, TIBET SUMMIT RESOURCES SINGAPORE PTE. LTD. was established with a registered capital of 10 million USD[411] - Tibet Summit Hongkong Limited holds 60% of its equity, but as of June 30, 2025, no capital contribution has been made[411] X. Interests in Other Entities This section outlines the company's group structure, including subsidiaries like Tajik-China Mining, Tibet Summit Resources Hongkong Limited, and its indirect holdings, with Tibet Summit Resources Hongkong Limited being a significant non-wholly owned subsidiary 1. Interests in Subsidiaries The company holds 100% equity in Tajik-China Mining and Tibet Summit International Trade, 87.50% in Tibet Summit Resources Hongkong Limited, and indirectly controls several overseas subsidiaries, including the newly established TIBET SUMMIT RESOURCES SINGAPORE PTE. LTD. Composition of the Enterprise Group | Subsidiary Name | Shareholding Ratio (%) | | :--- | :--- | | Tajik-China Mining Co., Ltd. | Direct: 100.00 | | Tibet Summit International Trade (Shanghai) Co., Ltd. | Direct: 100.00 | | Tibet Summit Resources Hongkong Limited | Direct: 87.50 | | NNEL Holding Corp. | Indirect: 87.50 | | Lithium X Energy Corp. | Indirect: 87.50 | | Tortuga de Oro S.A. | Indirect: 87.50 | | Potasio Y Litio De Argentina S.A. | Indirect: 87.50 | | TIBET SUMMIT RESOURCES SINGAPORE PTE. LTD. | Indirect: 52.50 | Key Financial Information of Important Non-Wholly Owned Subsidiaries (million RMB) | Subsidiary Name | Minority Shareholding Ratio (%) | Current Period Profit/Loss Attributable to Minority Shareholders (million RMB) | Minority Interests Balance at Period-end (million RMB) | | :--- | :--- | :--- | :--- | | Tibet Summit Resources Hongkong Limited | 12.50 | -7.46 | 58.32 | Key Financial Data of Tibet Summit Resources Hongkong Limited (million RMB) | Item | Total Assets at Period-end | Total Liabilities at Period-end | Current Period Operating Revenue | Current Period Net Profit | Current Period Total Comprehensive Income | Current Period Net Cash Flow from Operating Activities | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tibet Summit Resources Hongkong Limited | 2,147.01 | 1,680.41 | 0 | -59.66 | -33.42 | -12.22 | XII. Risks Related to Financial Instruments The company faces liquidity, market (commodity price volatility), exchange rate, and interest rate risks, which it manages through various financing tools, financial instrument combinations, a stable currency asset structure, and a mix of fixed and variable rate debt 1. Risks of Financial Instruments The company manages liquidity risk through diverse financing, market risk from commodity price fluctuations via pricing and hedging tools, exchange rate risk from multi-currency settlements by monitoring trends, and interest rate risk from floating-rate debt through a balanced fixed/variable rate debt portfolio - The company manages liquidity risk by utilizing various financing methods, such as bank loans and other borrowings, to maintain a balance between financing continuity and flexibility[419] - The company's main products are lead-zinc-copper concentrates and associated silver, whose price fluctuations may lead to unstable operating performance; the company mitigates market risk through pricing and futures hedging financial instruments[420] - The company's subsidiaries use Somoni, Hong Kong Dollar, Peso, and other currencies as their functional currencies, and foreign exchange rate fluctuations will impact financial position and operating performance[420] - The company's market interest rate risk primarily relates to floating-rate liabilities, and it manages interest costs by maintaining an appropriate combination of fixed-rate and variable-rate debt[421] XIII. Disclosure of Fair Value This section discloses the fair value of assets and liabilities measured at fair value at the end of the period, primarily including trading financial assets (derivative financial assets) and other equity instrument investments, mostly measured using Level 1 fair value inputs 1. Fair Value of Assets and Liabilities Measured at Fair Value at Period-end As of period-end, the total assets continuously measured at fair value amounted to 25.87 million RMB, primarily comprising trading financial assets (derivative financial assets) of 21.64 million RMB and other equity instrument investments of 4.23 million RMB, all measured using Level 1 fair value inputs Period-end Fair Value Measurement Items | Item | Level 1 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | | I. Continuous Fair Value Measurement | | | | (I) Trading Financial Assets | 21,636,508.14 | 21,636,508.14 | | (3) Derivative Financial Assets | 21,636,508.14 | 21,636,508.14 | | (III) Other Equity Instrument Investments | 4,232,626.43 | 4,232,626.43 | | Total Assets Continuously Measured at Fair Value | 25,869,134.57 | 25,869,134.57 | 2. Basis for Determining Market Price of Continuous and Non-continuous Level 1 Fair Value Measurement Items Th