稀美资源(09936) - 2025 - 中期业绩

Financial Highlights Condensed Financial Highlights Ximei Resources Holding Limited's interim results for the six months ended June 30, 2025, show revenue increased by 5.7% to RMB 954,200 thousand, with profit for the period surging by 71.4% to RMB 107,493 thousand. Gross margin improved by 2.6 percentage points to 23.7%. Basic earnings per share grew by 47.5% to RMB 0.26. Current ratio and quick ratio decreased, while the gearing ratio increased. Financial Performance (RMB thousand) | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 954,200 | 902,593 | 5.7% | | Cost of Sales | (727,878) | (712,017) | 2.2% | | Gross Profit | 226,322 | 190,576 | 18.8% | | Gross Margin | 23.7% | 21.1% | 2.6 percentage points | | Profit Before Tax | 130,397 | 75,695 | 72.3% | | Profit for the Period | 107,493 | 62,721 | 71.4% | | Profit Attributable to Owners of the Company | 91,821 | 62,266 | 47.5% | | Basic Earnings Per Share (RMB) | 0.26 | 0.17 | 47.5% | Financial Position (RMB thousand) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current Ratio | 2.00 | 2.26 | (11.5%) | | Quick Ratio | 0.84 | 1.20 | (30%) | | Gearing Ratio | 32.2% | 26.7% | 5.5 percentage points | Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company's revenue increased by 5.7%, gross profit by 18.8%, and profit for the period by 71.4%, driven by significant growth in other income and net gains and a reduction in administrative expenses. Condensed Consolidated Statement of Profit or Loss (RMB thousand) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 954,200 | 902,593 | 5.7% | | Cost of Sales | (727,878) | (712,017) | 2.2% | | Gross Profit | 226,322 | 190,576 | 18.8% | | Other Income and Net Gains | 10,930 | 7,302 | 49.7% | | Selling and Distribution Expenses | (9,725) | (9,841) | (1.2%) | | Administrative Expenses | (73,938) | (87,491) | (15.5%) | | Finance Costs | (12,504) | (13,874) | (9.9%) | | Profit Before Tax | 130,397 | 75,695 | 72.3% | | Income Tax Expense | (22,904) | (12,974) | 76.5% | | Profit for the Period | 107,493 | 62,721 | 71.4% | | Profit Attributable to Owners of the Company | 91,821 | 62,266 | 47.5% | | Basic Earnings Per Share (RMB) | 0.26 | 0.17 | 52.9% | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's total comprehensive income for the period was RMB 101,599 thousand, a 52.2% increase from RMB 66,732 thousand in the prior year, primarily driven by a significant increase in profit for the period despite higher other comprehensive losses. Condensed Consolidated Statement of Comprehensive Income (RMB thousand) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 107,493 | 62,721 | 71.4% | | Other Comprehensive (Loss)/Income for the Period | (5,894) | 4,011 | (247.0%) | | Total Comprehensive Income for the Period | 101,599 | 66,732 | 52.2% | | Attributable to Owners of the Company | 85,927 | 66,277 | 29.6% | | Non-controlling Interests | 15,672 | 455 | 3344.4% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total net assets increased to RMB 1,381,981 thousand. Total current assets rose by RMB 255,399 thousand, mainly due to a significant increase in inventories. Total current liabilities increased by RMB 217,877 thousand, primarily driven by higher bank borrowings. Condensed Consolidated Statement of Financial Position (RMB thousand) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 540,539 | 550,990 | (1.9%) | | Total Current Assets | 1,846,364 | 1,590,965 | 16.1% | | Inventories | 1,074,556 | 744,508 | 44.3% | | Trade and Bills Receivables | 437,399 | 406,222 | 7.7% | | Cash and Bank Balances | 145,132 | 182,039 | (20.3%) | | Total Current Liabilities | 921,506 | 703,629 | 30.9% | | Bank Borrowings (Current) | 717,241 | 470,249 | 52.5% | | Net Assets | 1,381,981 | 1,300,625 | 6.3% | | Total Equity | 1,381,981 | 1,300,625 | 6.3% | Notes to the Condensed Consolidated Financial Information Basis of Preparation This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules, and should be read in conjunction with the 2024 annual consolidated financial statements. - Financial information is prepared in accordance with Hong Kong Accounting Standard 34 and Listing Rules, and should be read with the annual consolidated financial statements[7] Changes in Accounting Policies and Disclosures The accounting policies adopted in this period are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of HKAS 21 (Amendment) "Lack of Exchangeability," which had no material impact on the preparation of the interim financial information. - Initial adoption of HKAS 21 (Amendment) "Lack of Exchangeability" had no material impact on the interim financial information[8] Operating Segment Information The Group primarily engages in the manufacturing, sale, and trading of non-ferrous metal products and provides related processing services. Management views the Group's operating results as a whole and does not identify separate operating segments, thus no operating segment information is presented. - The Group primarily engages in non-ferrous metal product manufacturing, sales, and processing services, with management viewing operating results as a whole, thus no operating segment information is presented[9] Geographical Information For the six months ended June 30, 2025, revenue from Mainland China accounted for 76.5% of total revenue, remaining the primary market, while revenue from Asia and EU markets grew significantly. Over 90% of non-current assets are located in Mainland China. Revenue by Geographical Region (RMB thousand) | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | China | 730,539 | 708,787 | 3.1% | | United States of America | 53,382 | 86,128 | (38.0%) | | Canada | 48,601 | 54,841 | (11.4%) | | United Kingdom | 19,594 | 22,388 | (12.5%) | | European Union | 38,399 | 22,076 | 73.9% | | Asia | 53,701 | 7,270 | 638.7% | | Other Countries | 9,984 | 1,103 | 805.2% | | Total Revenue | 954,200 | 902,593 | 5.7% | - Over 90% of non-current assets are located in Mainland China, thus no geographical information for non-current assets is presented[11] Information About Major Customers For the six months ended June 30, 2025, revenue from major customer A was RMB 208,591 thousand, a significant increase of 103.9% from the prior year, indicating increased reliance on this key customer. Revenue from Major Customer (RMB thousand) | Customer | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Customer A | 208,591 | 102,303 | 103.9% | Revenue For the six months ended June 30, 2025, total revenue was RMB 954,200 thousand, entirely derived from contracts with customers. Revenue from tantalum-niobium wet-process compounds decreased by 23.6%, while revenue from tantalum-niobium metals and products increased by 20.3%, and revenue from trading products, processing services, and others grew by 22.0%. - For the six months ended June 30, 2025, all revenue was derived from contracts with customers[13] Revenue by Category of Goods or Services (RMB thousand) | Category of Goods or Services | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Tantalum-Niobium Wet-Process Compounds | 233,840 | 306,263 | (23.6%) | | Tantalum-Niobium Metals and Products | 504,590 | 419,538 | 20.3% | | Trading Products, Processing Services and Others | 215,770 | 176,792 | 22.0% | | Total | 954,200 | 902,593 | 5.7% | Profit Before Tax For the six months ended June 30, 2025, profit before tax was RMB 130,397 thousand, a 72.3% increase from the prior year. Among major cost items, cost of self-produced goods decreased, while cost of trading goods and services increased, and R&D costs decreased. Profit Before Tax Components (RMB thousand) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Inventories Sold: Self-produced Goods | 516,587 | 551,758 | (6.4%) | | Cost of Inventories Sold: Trading Goods | 183,186 | 142,636 | 28.4% | | Cost of Services Provided | 28,105 | 17,623 | 59.5% | | Depreciation of Property, Plant and Equipment | 19,949 | 15,681 | 27.2% | | Research and Development Costs | 33,466 | 36,993 | (9.5%) | | Impairment of Trade Receivables | 4,910 | 1,366 | 259.4% | | Net Exchange Differences | (1,703) | 7,585 | (122.5%) | Income Tax For the six months ended June 30, 2025, income tax expense was RMB 22,904 thousand, a 76.5% increase from the prior year. The corporate income tax rate in Mainland China is 25%, but two high-tech enterprise subsidiaries enjoy a preferential tax rate of 15%. The Hong Kong profits tax rate is 16.5%, with some eligible entities enjoying a preferential rate of 8.25% on the first HK$2,000,000 of assessable profits. - The corporate income tax rate in Mainland China is 25%, with two high-tech enterprise subsidiaries (Ximei Resources (Guangdong) Co., Ltd. and Ximei Resources (Guizhou) Technology Co., Ltd.) enjoying a preferential tax rate of 15%[16] - The Hong Kong profits tax rate is 16.5%, with some eligible subsidiaries paying 8.25% on the first HK$2,000,000 of assessable profits[16] Income Tax Expense (RMB thousand) | Tax Category | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current – China | 28,928 | 10,308 | 180.6% | | Current – Hong Kong | 954 | 141 | 576.6% | | Deferred | (6,978) | 2,525 | (376.3%) | | Total Tax Expense for the Period | 22,904 | 12,974 | 76.5% | Dividends The Board of Directors has declared a final dividend of HK cents 5.56 per share for the year ended December 31, 2024, totaling RMB 18,254 thousand. The Board does not recommend paying any interim dividend for the six months ended June 30, 2025. - The Board of Directors declared a final dividend of HK cents 5.56 per share for the year ended December 31, 2024, totaling RMB 18,254 thousand[18] - The Board of Directors does not recommend paying any interim dividend for the six months ended June 30, 2025[18] Earnings Per Share Attributable to Owners of the Company For the six months ended June 30, 2025, both basic and diluted earnings per share were RMB 0.26, a 52.9% increase from RMB 0.17 in the prior year. Calculations are based on profit attributable to owners of the company and the weighted average number of ordinary shares outstanding. Earnings Per Share (RMB thousand) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 91,821 | 62,266 | 47.5% | | Basic Earnings Per Share (RMB) | 0.26 | 0.17 | 52.9% | | Diluted Earnings Per Share (RMB) | 0.26 | 0.17 | 52.9% | - The weighted average number of ordinary shares used for calculating basic and diluted earnings per share was 359,123,395 in 2025 and 359,404,533 in 2024[20] Property, Plant and Equipment For the six months ended June 30, 2025, the Group's cost of acquiring property, plant and equipment items was RMB 25,368 thousand, a significant increase from the prior year. The net book value increased from RMB 387.0 million to RMB 390.5 million, primarily due to ongoing expansion of production facilities. Property, Plant and Equipment (RMB thousand) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Acquiring Property, Plant and Equipment | 25,368 | 8,275 | 206.6% | | Net Book Value of Disposed Plant and Machinery | 351 | 2,092 | (83.2%) | | Net Gain on Disposal | 121 | 98 | 23.5% | - The net book value of property, plant and equipment increased from RMB 387.0 million as of December 31, 2024, to RMB 390.5 million as of June 30, 2025, primarily due to the continuous expansion of wet-process and pyro-process product production facilities[72] Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables amounted to RMB 437,399 thousand, a 7.7% increase from December 31, 2024. Among these, trade receivables overdue by more than three months increased. Trade and Bills Receivables by Ageing (RMB thousand) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 month | 168,984 | 211,100 | (20.0%) | | 1 to 2 months | 99,010 | 80,694 | 22.7% | | 2 to 3 months | 87,691 | 62,617 | 40.0%) | | Over 3 months | 81,714 | 51,811 | 57.7% | | Total | 437,399 | 406,222 | 7.7% | Trade Payables As of June 30, 2025, total trade payables were RMB 48,620 thousand, a 22.0% decrease from December 31, 2024, primarily due to timely settlement of procurement payments to certain suppliers. Trade Payables by Ageing (RMB thousand) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 1 month | 26,179 | 27,323 | (4.2%) | | 1 to 2 months | 11,242 | 24,011 | (53.2%) | | 2 to 3 months | 2,800 | 764 | 266.5% | | Over 3 months | 8,399 | 10,168 | (17.3%) | | Total | 48,620 | 62,266 | (22.0%) | Share Capital As of June 30, 2025, the company's authorized share capital was HK$10,000 thousand, and issued and fully paid share capital was HK$3,600 thousand, equivalent to RMB 3,228 thousand, remaining consistent with December 31, 2024. Issued and Fully Paid Share Capital (RMB thousand) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital | 3,228 | 3,228 | Management Discussion and Analysis Tantalum and Niobium Product Market Review In the first half of 2025, the price of tantalum pentoxide shifted upwards, with an average annual price increase of 8.6%, mainly due to geopolitical conflicts affecting supply and increased procurement by smelting enterprises. Niobium pentoxide prices remained stable with an upward trend, increasing by 0.1% on average, supported by tight niobium ore supply and optimistic downstream demand. - In the first half of 2025, the average annual price of tantalum pentoxide (99.5% ex-factory China) was RMB 1,728.4 per kg, an increase of 8.6% compared to the 2024 full-year average price[25] - The rapid increase in tantalum ore prices was primarily due to geopolitical conflicts between Congo (DRC) and Rwanda affecting tantalum ore supply, and increased procurement by smelting enterprises after the Chinese New Year[25] - In the first half of 2025, the average annual tax-inclusive price of niobium pentoxide (99.5% min ex-factory China) was RMB 378.6 per kg, an increase of 0.1% compared to the 2024 full-year average price[28] - Tight niobium ore supply and optimistic downstream demand supported the high-level consolidation of niobium pentoxide prices[28] Tantalum and Niobium Downstream Application Trends Tantalum and niobium products demonstrate broad application prospects and growth potential across various downstream sectors, particularly benefiting from the development of emerging technologies and industries such as consumer electronics, automotive electronics, aerospace, new energy, semiconductors, and optoelectronic integration. - Tantalum and niobium products have wide applications across many fields due to their excellent performance, with stable industry demand and emerging new demand hotspots[31] Tantalum Capacitor Sector - Tantalum capacitors play a specific role in PCB design due to their high capacitance density, low leakage current, and stability[31] - Consumer electronics, automotive electronics, industrial and energy, medical, and aerospace are the primary application areas for tantalum capacitors[31] - Demand for tantalum capacitors in the consumer electronics sector is projected to grow by 6%-7% in 2024, reaching US$820-830 million, and further increase to US$870-890 million in 2025[31] - With the rise of future industries such as AI large models, brain-computer interfaces, and humanoid robots, the demand for tantalum in tantalum capacitors will significantly increase[31] - According to CPM Group LLC, global tantalum demand is expected to exceed 4,000 tonnes per year by 2030, with demand from the tantalum capacitor sector potentially surpassing 1,000 tonnes per year[31] High-Temperature Alloy Sector - Tantalum and niobium significantly enhance the rupture life (up to 200-300 hours with niobium addition, compared to 100 hours without), creep resistance (reducing deformation by 30%-40%), and yield strength (increasing by 15%-20%) of high-temperature alloys[32] - High-temperature alloy market growth is primarily driven by demand from aerospace (commercial aviation recovery, military aircraft upgrades), energy equipment (gas turbines, nuclear energy, hydrogen energy), and industrial sectors[32][33] - China's Aero Engine Corporation of China (AECC) CJ-1000A turbofan engine has completed airworthiness certification, supporting the C919 passenger aircraft's mass delivery phase and accelerating domestic substitution[32] - Rolls-Royce expects civil aerospace large engine flying hours to recover to 110-115% of 2019 levels by 2025[32] Superconducting Materials Sector - Niobium and niobium alloys are the preferred materials for low-temperature superconductors, accounting for approximately 96% of the superconducting market[34] - Demand for superconducting materials is concentrated in scientific research, nuclear fusion, medical equipment, national defense, transportation, and power energy sectors[34] - The global superconducting materials market size was Euro 6.8 billion in 2022, with a projected compound annual growth rate of 23.1% by 2027[34][36] Semiconductor Sector - High-purity tantalum targets are used in conjunction with high-purity copper targets in the fabrication of ultra-large-scale integrated circuits (chips)[37] - The global chip market is projected to grow by 19% to US$630 billion in 2024, and by 13.8% to US$716.7 billion in 2025[37][39] - Growth is primarily driven by surging demand for AI-related semiconductors, recovery in electronics production, and momentum from memory and logic chips[37] - Tantalum is widely used as a barrier layer material in semiconductor manufacturing due to its high conductivity, thermal stability, and atomic blocking properties[39] Medical Sector - Tantalum metal is widely applied in the medical field, particularly in orthopedic surgery for treatments such as femoral head necrosis, joint replacement and revision, and bone defect repair[40] - Porous tantalum has been developed for orthopedic implant materials, with 3D printing technology driving the development of customized porous tantalum prostheses[40] - Tantalum coatings play an important protective role in implantable medical devices[40] New Energy Sector - Niobium-based anode technology can help lithium-ion batteries achieve miniaturization, lightweighting, greater stability, enhanced safety, long cycle life (over 10,000 cycles), and fast charging (full charge in 6 minutes or less)[42] - Niobium and tantalum are primarily used as oxides in inorganic solid-state electrolytes; solid-state lithium batteries offer higher energy density and better safety, potentially becoming a new growth point for niobium in the new energy sector[42] - Application scenarios for niobium-based anode batteries include commercial vehicles, ferries, mining trucks, handling equipment, energy storage systems, AGVs, and uninterruptible power supplies[43][44] Optoelectronic Integration Sector - Lithium niobate is used to prepare electro-optic modulators, which are core components in modern communication and photonic integrated circuits[45] - Thin-film lithium niobate (TFLN) exhibits excellent electro-optic effects, nonlinear optical properties, and acousto-optic effects, making it suitable for 5G communication, quantum computing, and other fields[45] - Germany's Q.ANT and IMS CHIPS have launched a TFLN photonic chip production line, with their photonic processor prototype achieving 30 times higher energy efficiency and 50 times faster computing speed than traditional chips[46] - Lithium tantalate PICs demonstrate extremely high efficiency, with optical loss rates as low as 5.6 dB/m and electro-optic bandwidth up to 40 GHz, making them ideal for next-generation optical communication systems[46] - The global lithium niobate thin-film modulator market size is projected to grow from US$200 million in 2023 to US$2 billion in 2029, with a compound annual growth rate (CAGR) of 41.0%[46] Business Review In the first half of 2025, under the guidance of its "specialization, integration, scale, high-end, internationalization, and capitalization" strategy, the Group achieved significant growth in operating revenue and profit for the period. By optimizing product structure, strengthening R&D innovation, enhancing production efficiency, and promoting green development, the Group's position and competitiveness in the tantalum-niobium industry continued to improve. - In the first half of 2025, the Group's operating revenue reached RMB 954.2 million, a year-on-year increase of 5.7%; profit for the period reached RMB 107.5 million, a year-on-year increase of 71.4%[48][70] - The Group successfully implemented its "specialization, integration, scale, high-end, internationalization, and capitalization" strategic positioning, with all core departments achieving significant performance improvements[48] - The proportion of tantalum-niobium pyro-process products in the revenue structure achieved leapfrog development, accounting for nearly half, which is key to steady revenue growth[49] Fruitful Achievements in Operations Management Operating Performance (RMB million) | Metric | H1 2025 (RMB million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 954.2 | 5.7% | | Profit for the Period | 107.5 | 71.4% | - The proportion of tantalum-niobium pyro-process products in the Group's revenue structure achieved a leapfrog development from zero to significant, accounting for nearly half, which is key to steady revenue growth[49] Continuous Optimization of Talent Structure - The Group adheres to the talent philosophy that "human resource leadership strategy is the primary competitive strategy," continuously advancing the refinement of its organizational and talent structures[50] - Through the implementation of the "Pioneer Program," "Successor Program," and "Management Trainee Program," the Group cultivates a composite talent梯队 with both professional expertise and innovative vision[50] - Several master's graduates from renowned universities have assumed middle management positions, and the retention rate of management trainees has increased year by year, becoming important production backbones[50] Deepening Cultivation and Advancing with Honors - As of June 30, 2025, the Group has accumulated 120 authorized patents (28 invention patents, 92 utility model patents), with another 79 patents under application review[51] - Ximei Guizhou was recognized as a "Key Specialized, Refined, Unique, and New Small and Medium-sized Enterprise in Guizhou Province" and obtained qualifications such as "High-tech Enterprise," "Innovative Small and Medium-sized Enterprise in Guizhou Province," and "Guizhou Provincial Enterprise Technology Center"[51] - Ximei Guangdong was rated as a "High-Quality Manufacturing Enterprise" by Qingyuan City, is a National High-tech Enterprise and a National Specialized, Refined, Unique, and New "Little Giant" Enterprise, and its self-owned testing center obtained CNAS laboratory accreditation[51] - The high-capacitance tantalum powder developed for polymer tantalum capacitors passed a 2,000-hour life test, and tantalum-niobium smelting products entered the qualified product list of leading domestic and international high-temperature alloy enterprises[52] - Ultra-high purity tantalum metal is supplied in large quantities to semiconductor tantalum target manufacturers, and the annual shipment of lithium tantalate for photonic communication exceeded 10 tonnes[52] Capacity Unleashed with Impressive Output - The Group has deeply explored production line potential through various measures such as "automation upgrade for high-niobium drying and calcination," "niobium liquid absorption of ammonia gas," "ultra-high pressure membrane concentration," and "research on key technologies for smelting tantalum preparation"[53] - The direct recovery rate of tantalum-niobium wet smelting increased year-on-year, unit consumption of products like superconducting niobium ingots significantly decreased, unit energy consumption for smelting tantalum and niobium continued to decline, and the comprehensive utilization rate of by-products reached a new high[53] Strengthening and Extending Supply Chains for Green Development - Ximei Guangdong has completed the "700 tonnes/year high-niobium expansion and technical upgrade project," strengthening its oxide production capacity[54] - Ximei Guizhou passed the second audit and certification for various systems, including the Weapon Equipment Quality Management System, Energy Management System, Occupational Health and Safety Management System, Quality Management System, and Environmental Management System[54] - Ximei Leizhou factory fully completed its civil engineering works, laying a solid foundation for the Group's future market upgrades and high-quality sustainable development[54] Financial Review In the first half of 2025, the Group's revenue increased by 5.7% to RMB 954.2 million, primarily driven by growth in metal products and trading businesses. Both gross profit and gross margin improved, and profit for the period surged by 71.4%. Other income and net gains increased, while selling and distribution expenses, administrative expenses, and finance costs all decreased. - The Group's revenue increased by 5.7% to RMB 954.2 million, with profit for the period significantly growing by 71.4% to RMB 107.5 million[56][70] - Gross margin improved from 21.1% to 23.7%, primarily due to further release of the Group's production capacity, an increased proportion of high-purity metal sales, and enhanced process efficiency in production, including the utilization of recycled materials and by-products, driving cost reduction and efficiency gains[62] Revenue Revenue by Source (RMB thousand) | Revenue Source | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Tantalum-Niobium Wet-Process Compounds | 233,840 | 24.5 | 306,263 | 33.9 | (23.6%) | | Tantalum-Niobium Metals and Products | 504,590 | 52.9 | 419,538 | 46.5 | 20.3% | | Trading Products, Processing Services and Others | 215,770 | 22.6 | 176,792 | 19.6 | 22.0% | | Total Revenue | 954,200 | 100.0 | 902,593 | 100.0 | 5.7% | - The increase in revenue was primarily attributable to the Group's proactive adjustment of its product structure, with significant year-on-year growth in metal products (especially niobium metal products) and trading businesses in the first half of the year[56] - Revenue from tantalum-niobium wet-process compounds decreased by 23.6%, mainly because of higher market demand for metal products, leading to an increased proportion of wet-process compounds consumed internally and reduced external sales[57] - Revenue from tantalum-niobium metals and products increased by 20.3%, primarily due to enhanced pyro-process project capacity and increased market sales of niobium metal products[58] - Revenue from trading products, processing services, and others increased by 22.0%, mainly due to an increase in trading volume[59] Cost of Sales Cost of Sales Breakdown (RMB thousand) | Cost of Sales Item | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Raw Materials | 439,888 | 60.4 | 476,238 | 66.9 | (7.6%) | | Cost of Trading Products | 183,186 | 25.2 | 142,636 | 20.0 | 28.4% | | Fixed Factory Overhead | 28,823 | 4.0 | 23,767 | 3.3 | 21.3% | | Electricity and Fuel | 53,377 | 7.3 | 46,796 | 6.6 | 14.1% | | Labor | 13,306 | 1.8 | 12,036 | 1.7 | 10.6% | | Processing Fees | 9,298 | 1.3 | 10,544 | 1.5 | (11.8%) | | Total Cost of Sales | 727,878 | 100.0 | 712,017 | 100.0 | 2.2% | - The increase in cost of sales was primarily due to increased sales volume[61] Gross Profit and Gross Margin Gross Profit and Gross Margin (RMB million) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 226.3 | 190.6 | 18.7% | | Gross Margin | 23.7% | 21.1% | 2.6 percentage points | - The improvement in gross margin was primarily due to the further release of the Group's production capacity, an increased proportion of metal products (especially high-purity metals) in sales, and enhanced process efficiency in production, including the utilization of recycled materials and by-products, driving cost reduction and efficiency gains[62] Other Income and Net Gains Other Income and Net Gains (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank Interest Income | 473 | 906 | (47.8%) | | Government Grants | 5,335 | 5,089 | 4.8% | | Net Fair Value Gain on Derivative Financial Instruments | 1,900 | 98 | 1838.8% | | Net Gain on Disposal of Scraps | 954 | 760 | 25.5% | | Others | 2,268 | 449 | 405.1% | | Total | 10,930 | 7,302 | 49.7% | - Government grants primarily refer to additional input VAT credits obtained by high-tech enterprise subsidiaries and subsidies supporting R&D activities[63] Selling and Distribution Expenses Selling and Distribution Expenses (RMB thousand) | Item | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Distribution Costs | 2,706 | 27.8 | 2,891 | 29.4 | (6.5%) | | Staff Costs | 5,231 | 53.8 | 5,407 | 54.9 | (3.2%) | | Consulting and Advisory Fees | 454 | 4.7 | 350 | 3.5 | 29.7% | | Travel and Entertainment Expenses | 690 | 7.1 | 439 | 4.5 | 57.2% | | Total Selling and Distribution Expenses | 9,725 | 100.0 | 9,841 | 100.0 | (1.2%) | - The decrease in selling and distribution expenses was primarily due to the Group's strengthened personnel management and assessment, resulting in a slight reduction in staff costs[65] Administrative Expenses Administrative Expenses (RMB thousand) | Item | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Research and Development Expenses | 33,466 | 45.3 | 36,993 | 42.3 | (9.5%) | | Staff Costs | 20,407 | 27.6 | 26,951 | 30.8 | (24.3%) | | Total Administrative Expenses | 73,938 | 100.0 | 87,491 | 100.0 | (15.5%) | - The decrease in administrative expenses was primarily due to reduced staff costs (strengthened management personnel assessment and adjustments) and lower research and development expenses (completion of some R&D projects)[67] Finance Costs Finance Costs (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs on Interest-bearing Bank Borrowings | 9,220 | 7,977 | 15.6% | | Interest on Bills Discounted | 3,181 | 4,545 | (30.0%) | | Interest on Lease Liabilities | 103 | 1,352 | (92.4%) | | Total Net Finance Costs | 12,504 | 13,874 | (9.9%) | - The decrease in finance costs was primarily due to a reduction in discounted bills raised, leading to lower finance costs on discounted bills[68] Income Tax Expense Income Tax Expense (RMB million) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 22.9 | 13.0 | 76.2% | | Effective Tax Rate | 17.6% | 17.1% | 0.5 percentage points | - Two subsidiaries were recognized as high-tech enterprises, enjoying a preferential tax rate of 15%; eligible tantalum metal product export sales are entitled to a 13% tax refund[69] Profit for the Period Profit for the Period (RMB million) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 107.5 | 62.7 | 71.4% | | Net Profit Margin | 11.3% | 6.9% | 4.4 percentage points | Profit Attributable to Owners of the Company Profit Attributable to Owners of the Company (RMB million) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 91.8 | 62.3 | 47.5% | Analysis of Key Statement of Financial Position Items As of June 30, 2025, the Group's net book value of property, plant and equipment slightly increased, while right-of-use assets slightly decreased. Inventories significantly rose by 44.3%, mainly due to the extension of production business downstream and new factory plans. Trade and bills receivables increased by 7.7%, while trade payables decreased by 22.0%. Total bank borrowings increased by 32.7%, primarily for raw material reserves. - Inventories significantly increased by 44.3% to RMB 1,074.6 million, primarily due to the further extension of production business downstream, leading to increased raw materials and work-in-progress, as well as delays in delivery and acceptance by some downstream customers[74][75] - Total bank borrowings increased by 32.7% to RMB 795.5 million, primarily due to increased raw material reserves[88] Property, Plant and Equipment Property, Plant and Equipment Net Book Value (RMB million) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment Net Book Value | 390.5 | 387.0 | 0.9% | - The increase was primarily due to the Group's continuous expansion of wet-process and pyro-process product production facilities[72] Right-of-Use Assets Right-of-Use Assets (RMB million) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Right-of-Use Assets | 67.3 | 68.1 | (1.2%) | | Leased Land | 56.8 | 57.2 | (0.7%) | | Leased Plant and Machinery | 7.7 | 8.6 | (10.5%) | | Leased Offices | 2.8 | 2.3 | 21.7% | - The decrease in leased land was primarily due to increased depreciation expense; the decrease in leased plant and machinery was mainly due to depreciation expense and transfer to property, plant and equipment; the increase in leased offices was primarily due to the acquisition of new office premises in Hong Kong[73] Inventories Inventories by Category (RMB thousand) | Inventory Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials | 424,176 | 251,302 | 68.8% | | Work-in-Progress | 269,342 | 268,051 | 0.5% | | Finished Goods | 381,038 | 225,155 | 69.2% | | Total Inventories | 1,074,556 | 744,508 | 44.3% | - The increase in inventories was primarily due to the Group's production business extending further downstream, leading to an increase in raw materials and intermediate work-in-progress[75] - Considering the planned commissioning of the new Leizhou factory, raw material inventory was moderately increased; simultaneously, delays in delivery and acceptance by some downstream customers led to an increase in finished goods inventory[75] - The average inventory to revenue from products sold ratio increased from 40.2% to 47.7%[74][75] Trade and Bills Receivables Trade and Bills Receivables (RMB thousand) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables | 387,267 | 287,210 | 34.8% | | Less: Impairment | (9,895) | (4,903) | 101.8% | | Bills Receivables | 60,027 | 123,915 | (51.6%) | | Net Book Value | 437,399 | 406,222 | 7.7% | - The increase in trade and bills receivables was primarily due to increased revenue[77] - The average turnover days decreased from 80.5 days to 80.0 days, mainly due to strengthened management of sales collection during the review period, resulting in slightly shorter credit terms[80][81] - As of June 30, 2025, the expected credit loss for trade receivables was RMB 9.9 million, an increase of 101.8% from RMB 4.9 million as of December 31, 2024[78] Prepayments, Deposits and Other Receivables Prepayments, Deposits and Other Receivables (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments – Non-current | 18,075 | 29,277 | (38.3%) | | Deposits – Non-current | 32,000 | 32,000 | 0.0% | | Less: Impairment Provision | (11,000) | (11,000) | 0.0% | | Prepayments – Current | 148,673 | 227,680 | (34.7%) | | Other Recoverable Taxes | – | 567 | (100.0%) | | Deposits and Other Receivables – Current | 9,813 | 8,531 | 15.0% | | Total | 197,561 | 287,055 | (31.1%) | - The decrease in prepayments, deposits, and other receivables was primarily due to a reduction in prepaid deposits[83] Trade Payables Trade Payables by Ageing (RMB thousand) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 26,179 | 27,323 | (4.2%) | | 31 to 60 days | 11,242 | 24,011 | (53.2%) | | 61 to 90 days | 2,800 | 764 | 266.5% | | Over 90 days | 8,399 | 10,168 | (17.3%) | | Total | 48,620 | 62,266 | (22.0%) | - The decrease in trade payables was primarily due to timely settlement of procurement payments to certain suppliers[84] - The average turnover days decreased from 14.9 days to 13.8 days, mainly due to a reduction in trade payables[85] Other Payables and Accrued Expenses Other Payables and Accrued Expenses (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Accrued Expenses | 23,357 | 21,250 | 9.9% | | Deferred Income | 9,151 | 8,886 | 3.0% | | Contract Liabilities | 20,011 | 50,290 | (60.2%) | | Other Payables | 42,038 | 31,449 | 33.7% | | Total | 94,557 | 111,875 | (15.4%) | - The decrease in other payables and accrued expenses was primarily due to a reduction in customer prepayments[86] Bank Borrowings Bank Borrowings (RMB thousand) | Borrowing Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current | 78,259 | 129,100 | (39.3%) | | Current | 717,241 | 470,249 | 52.5% | | Total Bank Borrowings | 795,500 | 599,349 | 32.7% | - The increase in total bank borrowings was primarily due to increased raw material reserves during the review period[88] - Bank borrowings accounted for approximately 79.2% of total liabilities (December 31, 2024: 71.2%)[87] Liquidity and Capital Resources As of June 30, 2025, the company's cash and cash equivalents were RMB 145.1 million, a decrease from December 31, 2024. The gearing ratio increased to 32.2%, mainly influenced by changes in financing scale and period-end cash levels. The Board believes the Group has sufficient working capital for at least the next 12 months. - As of June 30, 2025, cash and cash equivalents were approximately RMB 145.1 million, a decrease from RMB 182.0 million as of December 31, 2024[89] - The Board of Directors believes the Group has sufficient working capital to meet its requirements for at least the next 12 months from the date of this announcement[89] Working Capital Cash and Bank Balances (RMB million) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 145.1 | 182.0 | (20.3%) | - The Group intends to fund its operations through cash generated from operating activities, bank borrowings, and proceeds from the listing[89] Capital Structure Total Debt (RMB million) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Debt | 800.7 | 607.3 | 31.8% | - The Group encountered no difficulties in renewing bank loans[90] Gearing Ratio Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | Change (percentage points) | | :--- | :--- | :--- | :--- | | Gearing Ratio | 32.2% | 26.7% | 5.5 | - The change in the gearing ratio was primarily due to changes in the Group's financing scale and period-end cash levels during the review period[91] Pledge of Assets - Bank borrowings are secured by leased land with a net book value of approximately RMB 48.3 million and property, plant and equipment with a net book value of approximately RMB 88.6 million[92] Capital Expenditure Capital Expenditure (RMB million) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure | 25.4 | 8.3 | 206.0% | - Capital expenditure primarily consisted of expenses for purchasing property, plant and equipment[93] Contingent Liabilities, Legal and Potential Proceedings - As of June 30, 2025, the Group had no material contingent liabilities, legal proceedings, or potential proceedings[94] Capital Commitments Capital Commitments (RMB million) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Commitments | 44.1 | 37.7 | 17.0% | Segment Information The Group primarily engages in the manufacturing and sale of metallurgical products and provides processing services to customers. Management focuses on the Group's overall operating performance and does not identify separate operating segments, thus no operating segment information is presented. - The Group primarily engages in metallurgical product manufacturing, sales, and processing services, with management viewing operating results as a whole, thus no operating segment information is presented[96] Significant Acquisitions and Disposals by the Group For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals. - For the six months ended June 30, 2025, the Group did not undertake any significant acquisitions or disposals[97] Material Investments For the six months ended June 30, 2025, the Company did not hold any material investments. - For the six months ended June 30, 2025, the Company did not hold any material investments[98] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Group has no definite plans regarding material investments or capital assets. Any such plans will be announced in due course and in compliance with the Listing Rules. - As of June 30, 2025, the Group has no definite plans regarding material investments or capital assets[99] Future Outlook Looking ahead to the second half of 2025, global economic recovery faces uncertainties, but demand for rare metals in new energy, semiconductors, and high-end manufacturing sectors still holds growth potential. The Group will adhere to safety and environmental protection bottom lines, optimize production processes and product structures, expand markets, increase R&D investment, and complete key project constructions to achieve sustainable growth and enhance market position. - In the second half of 2025, global economic recovery still faces uncertainties, but demand for rare metals in new energy, semiconductors, and high-end manufacturing sectors still holds growth potential[100] - The Group will adhere to safety and environmental protection bottom lines, strengthen production organization, and optimize production processes and product structures to achieve full capacity and exceed production targets[101] - The Group will target market frontiers and strategic customers, continuously expand markets, reasonably adjust procurement structures and rhythms, and maintain stable supply, production, and sales operations[101] - Efforts will be made to complete key project constructions, extend the industrial chain, expand industrial scale, and enhance industry influence; the Group will adhere to technological innovation and increase R&D investment[101] - With the development of new technologies such as new energy, 5G upgrades, semiconductors, and high-end equipment manufacturing, downstream demand for tantalum and niobium will significantly increase, and the import substitution space for high-end products will gradually be released[102] - The Group will continue to adhere to its "six-pronged" strategic positioning of "specialization, integration, scale, high-end, internationalization, and capitalization"[102] Other Information Human Resources and Training The Group adheres to the philosophy that "human resource leadership strategy is the primary competitive strategy," cultivating talent through the "Starry Plan," "Mentorship Program," and "Management Trainee Program," and providing systematic training. As of June 30, 2025, the total number of employees was 663, with total staff costs of RMB 64.5 million. - The Group adheres to the talent philosophy that "human resource leadership strategy is the primary competitive strategy," continuously advancing the refinement of its organizational and talent structures[103] - By launching the "Starry Plan" for cultivating young core cadres and the "Mentorship Program," a dual-mentor training mechanism has been established[103] - As of June 30, 2025, the Group had a total of 663 employees (December 31, 2024: 632 employees)[104] Total Staff Costs (RMB million) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Staff Costs | 64.5 | 57.7 | 11.8% | - The Group provides systematic training programs for employees, including induction, safety, professional skills, and management training, enriching online and offline courses, and increasing external visit and training programs[104] Dividends The Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2025. - The Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2025[106] Principal Activities The Company is an investment holding company, and its subsidiaries are principally engaged in the manufacturing and sale of non-ferrous metal products and providing processing services to customers. - The Company is an investment holding company, and its subsidiaries are principally engaged in the manufacturing and sale of non-ferrous metal products and providing processing services to customers[107] Public Float From the end of the reporting period to the date of this announcement, at least 25% of the Company's issued shares were held by public shareholders in accordance with the Listing Rules. - From the end of the reporting period to the date of this announcement, at least 25% of the Company's issued shares were held by public shareholders in accordance with the Listing Rules[108] Purchase, Sale or Redemption of the Company's Listed Securities From the end of the reporting period to the date of this announcement, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares. - From the end of the reporting period to the date of this announcement, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[109] - During this reporting period, the Company held no treasury shares[109] Going Concern Based on its current financial position and available financing, the Group has sufficient financial resources to continue operating for the foreseeable future, thus the financial report is prepared on a "going concern" basis. - The Group has sufficient financial resources to continue operating for the foreseeable future, and the financial report is prepared on a "going concern" basis[110] Use of Proceeds from Listing The net proceeds from the Company's listing were approximately RMB 92.7 million, of which RMB 91.0 million had been utilized as of June 30, 2025. The unutilized amount of RMB 1.7 million, intended for strengthening the European sales network and Brazilian procurement channels, is expected to be fully utilized by the end of 2025, primarily due to delays in business expansion caused by changes in the macroeconomic and international business environment. Use of Proceeds from Listing (RMB million) | Fund Usage | Plan Disclosed in Prospectus (RMB million) | Actual Utilized as of June 30, 2025 (RMB million) | Unutilized as of June 30, 2025 (RMB million) | | :--- | :--- | :--- | :--- | | Construction of new production facilities for tantalum powder and tantalum bars | 26.8 | 26.8 | – | | Purchase and installation of related machinery and equipment for tantalum powder and tantalum bars production | 33.4 | 33.4 | – | | Other expenses related to establishing new production facilities | 3.6 | 3.6 | – | | Expenses required for providing financial support to five R&D projects | 16.6 | 16.6 | – | | Strengthening European sales network and Brazilian procurement channels | 3.2 | 1.5 | 1.7 | | General working capital | 9.1 | 9.1 | – | | Total | 92.7 | 91.0 | 1.7 | - The unutilized amount of RMB 1.7 million, intended for strengthening the European sales network and Brazilian procurement channels, is expected to be fully utilized by the end of 2025[113] - The delay in utilization was primarily due to changes in the macroeconomic environment and international business environment, leading to delays in the Company's business expansion in Europe and Brazil[113] Corporate Governance Functions The Board is committed to upholding the Corporate Governance Code and has adopted various measures to strengthen internal controls. The Company complies with all applicable code provisions, except for the combined roles of Chairman and Chief Executive Officer, which deviates from code provision C.2.1, but the Board believes this arrangement is in the Group's best interest and adequate safeguards are in place. - The Board is committed to upholding the Corporate Governance Code and has adopted various measures to strengthen internal control systems, ongoing professional training for directors, and other routine areas[114] - The Company complies with all applicable code provisions, except that the roles of Chairman and Chief Executive Officer are combined and held by Mr. Wu Lijue, which deviates from code provision C.2.1[114][115] - The Board believes that Mr. Wu's dual role is in the Group's best interest, and adequate safeguards are in place to ensure a balance of power between the Board and management[115] Model Code for Securities Transactions The Company has adopted the Model Code for Securities Transactions as set out in Appendix C3 of the Listing Rules, and all Directors have confirmed full compliance with the required dealing standards of the Model Code after due enquiry. - The Company has adopted the Model Code for Securities Transactions as set out in Appendix C3 of the Listing Rules[116] - All Directors have confirmed full compliance with the required dealing standards of the Model Code during the reporting period and up to the date of this announcement[116] Review by Audit Committee The Audit Committee has reviewed the unaudited financial statements, results announcement, and interim report for the six months ended June 30, 2025, and agreed with the accounting treatments adopted by the Company, deeming the financial statements to comply with applicable accounting standards and Listing Rules requirements and to have made sufficient disclosures. - The Audit Committee has reviewed the unaudited financial statements, results announcement, and interim report for the six months ended June 30, 2025[117] - The Audit Committee agreed with the accounting treatments adopted by the Company and was satisfied that the financial statements comply with applicable accounting standards and Listing Rules requirements and have made sufficient disclosures[117] Events After the Reporting Period As of the date of this announcement, there are no material events after the reporting period. - As of the date of this announcement, there are no material events after the reporting period[118] Publication of Information This interim results announcement and interim report will be published on the website of The Stock Exchange of Hong Kong Limited and the Company's website. - This interim results announcement will be published on the website of The Stock Exchange of Hong Kong Limited and the Company's website[119] - The Company's 2025 interim report will be dispatched to the Company's shareholders in due course and published on the website of The Stock Exchange of Hong Kong Limited and the Company's website[119]