灵宝黄金(03330) - 2025 - 中期业绩

Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss The company achieved significant growth in revenue and net profit for the six months ended June 30, 2025, driven by increased gold production and higher selling prices - Revenue increased by 82.02% year-on-year, and profit for the period increased by 338.92% year-on-year[4] Condensed Consolidated Statement of Profit or Loss Table | Indicator | For the six months ended June 30, 2025 (thousand RMB) | For the six months ended June 30, 2024 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 7,792,736 | 4,281,228 | | Cost of sales | (6,654,557) | (3,873,542) | | Gross profit | 1,138,179 | 407,686 | | Operating profit | 947,985 | 256,570 | | Profit before tax | 879,939 | 182,511 | | Profit for the period | 670,041 | 152,658 | | Profit attributable to equity holders of the Company | 663,969 | 152,538 | | Basic and diluted earnings per share (RMB cents) | 52.33 | 12.54 | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Total comprehensive income for the period significantly increased, primarily due to a substantial rise in profit for the period, with other comprehensive income items also contributing - Total comprehensive income for the period increased by 364.09% year-on-year[5] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Table | Indicator | For the six months ended June 30, 2025 (thousand RMB) | For the six months ended June 30, 2024 (thousand RMB) | | :--- | :--- | :--- | | Profit for the period | 670,041 | 152,658 | | Exchange differences arising from translation of financial statements of overseas subsidiaries | 985 | (7,522) | | Fair value changes of equity instruments at fair value through other comprehensive income | 2,544 | — | | Other comprehensive income for the period | 3,529 | (7,522) | | Total comprehensive income for the period | 673,570 | 145,136 | | Total comprehensive income attributable to equity holders of the Company | 666,725 | 146,257 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets and shareholders' equity increased, with net current assets turning positive, indicating improved liquidity - Net current assets improved significantly, from negative 16,520 thousand RMB at the end of 2024 to positive 357,153 thousand RMB in mid-2025[6] - Capital investments increased, with construction in progress rising from 404,065 thousand RMB to 668,697 thousand RMB, and intangible assets from 899,808 thousand RMB to 1,050,122 thousand RMB[6] Condensed Consolidated Statement of Financial Position Table | Indicator | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Non-current assets | 4,570,026 | 4,206,351 | | Current assets | 4,481,195 | 3,008,793 | | Current liabilities | 4,124,042 | 3,025,313 | | Net current assets/(liabilities) | 357,153 | (16,520) | | Total assets less current liabilities | 4,927,179 | 4,189,831 | | Non-current liabilities | 986,659 | 1,031,647 | | Net assets | 3,940,520 | 3,158,184 | | Total equity attributable to equity holders of the Company | 4,161,263 | 3,385,772 | | Total equity | 3,940,520 | 3,158,184 | Notes to the Condensed Interim Financial Report 1 Basis of Preparation This interim financial report is prepared in accordance with HKAS 34 and complies with HKEX Listing Rules, reviewed by the Audit Committee and authorized for issue - The report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[8] - It adopts the historical cost basis and going concern basis, with the Board assessing the Group's ability to continue as a going concern[8] 2 Changes in Accounting Policies The Group has applied HKAS 21 (Amendment) "Lack of Exchangeability," which had no material impact on the results or financial position for the current or prior periods - Applied HKAS 21 (Amendment) "Lack of Exchangeability," with no material impact[10] 3 Segment Reporting The Group manages and reports its operations across four segments: mining (China), mining (Kyrgyzstan), smelting, and retail, all showing significant growth - The Group has four reportable segments: Mining—China, Mining—Kyrgyzstan, Smelting, and Retail[11][12] Segment Revenue and Profit (For the six months ended June 30, 2025) Table | Segment | 2025 Revenue (thousand RMB) | 2024 Revenue (thousand RMB) | 2025 Profit (thousand RMB) | 2024 Profit (thousand RMB) | | :--- | :--- | :--- | :--- | :--- | | Mining—China | 1,614,816 | 706,577 | 949,664 | 267,377 | | Mining—Kyrgyzstan | 190,383 | 71,521 | 62,467 | 5,900 | | Smelting | 7,960,292 | 4,291,005 | 47,379 | (24,444) | | Retail | 7,425 | 4,995 | 283 | 61 | | Total reportable segments | 9,772,916 | 5,074,098 | 1,059,793 | 248,894 | | Consolidated Revenue | 7,792,736 | 4,281,228 | | | | Consolidated Profit Before Tax | | | 879,939 | 182,511 | 3(a) Segment Results, Assets and Liabilities Both Mining (China) and Smelting segments achieved substantial growth in revenue and profit, with the Smelting segment turning profitable, indicating improved operational efficiency - Mining—China segment revenue increased by 128.56%, and profit increased by 255.18%[13] - Smelting segment revenue increased by 85.51%, turning from a loss in the same period of 2024 to a profit of 47,379 thousand RMB in 2025[13] 3(b) Reconciliation of Reportable Segment Revenue and Profit or Loss The reconciliation shows consolidated revenue of 7,792,736 thousand RMB and consolidated profit before tax of 879,939 thousand RMB after inter-segment eliminations, reflecting enhanced overall profitability - Inter-segment revenue eliminations amounted to 1,980,180 thousand RMB, resulting in consolidated revenue of 7,792,736 thousand RMB[14] - Inter-segment profit eliminations amounted to 6,148 thousand RMB, resulting in consolidated profit before tax of 879,939 thousand RMB[14] 4 Revenue The Group's primary business involves the mining, beneficiation, smelting, and sale of gold and other metal products, with revenue primarily from gold sales showing significant growth - The main business involves the mining, beneficiation, smelting, and sale of gold and other metal products in China[15] - Revenue from gold sales increased by 84.25% year-on-year, serving as the primary driver for total revenue growth[17] Revenue Breakdown by Major Product Line Table | Product Line | For the six months ended June 30, 2025 (thousand RMB) | For the six months ended June 30, 2024 (thousand RMB) | | :--- | :--- | :--- | | Sales of gold | 7,862,157 | 4,267,444 | | Sales of other metals | 101,258 | 81,098 | | Sales of jewelry | 5,613 | 2,347 | | Others | 2,416 | 4,535 | | Less: Sales tax and levies | (178,708) | (74,196) | | Total Revenue | 7,792,736 | 4,281,228 | 5 Profit Before Tax Profit before tax increased, influenced by a decrease in finance costs, a significant reduction in net other losses, and an increase in government grants - Finance costs decreased by 8.12% year-on-year[18] - Net other losses significantly reduced from 24,680 thousand RMB to 1,626 thousand RMB, primarily due to financial instruments at fair value through profit or loss turning from loss to gain[18] - Government grants increased by 92.02%[18] Profit Before Tax Components Table | Item | For the six months ended June 30, 2025 (thousand RMB) | For the six months ended June 30, 2024 (thousand RMB) | | :--- | :--- | :--- | | Finance costs | 68,046 | 74,059 | | Net other losses | 1,626 | 24,680 | | Net (gain)/loss on financial instruments at fair value through profit or loss | (36,003) | 20,324 | | Government grants | (5,367) | (2,795) | | Bank interest income | (9,102) | (14,150) | 6 Income Tax in the Condensed Consolidated Statement of Profit or Loss Income tax expense significantly increased due to a substantial rise in profit for the period, with Chinese subsidiaries applying a 25% statutory rate and high-tech enterprises enjoying a 15% preferential rate - Income tax expense increased by 603.78% year-on-year[20] - Chinese subsidiaries are subject to a 25% statutory tax rate, while high-tech enterprises (e.g., Habahe Huatai Gold Co., Ltd.) enjoy a 15% preferential tax rate[21] - The corporate income tax rate in Kyrgyzstan is 0%[24] Income Tax Components Table | Item | For the six months ended June 30, 2025 (thousand RMB) | For the six months ended June 30, 2024 (thousand RMB) | | :--- | :--- | :--- | | Current tax — Provision for China income tax for the period | 195,173 | 43,449 | | Under/(over) provision in prior years | 14,991 | (19,335) | | Deferred tax | (266) | 5,739 | | Total Income Tax | 209,898 | 29,853 | 7 Earnings Per Share Basic earnings per share significantly increased, reflecting the company's enhanced profitability, with diluted EPS being the same due to no dilutive potential ordinary shares - Basic earnings per share increased by 317.31% year-on-year[22] - The weighted average number of ordinary shares outstanding increased from 1,216,246,829 to 1,268,710,862 shares[22] Earnings Per Share Table | Indicator | For the six months ended June 30, 2025 (RMB cents) | For the six months ended June 30, 2024 (RMB cents) | | :--- | :--- | :--- | | Basic earnings per share | 52.33 | 12.54 | | Diluted earnings per share | 52.33 | 12.54 | 8 Property, Plant and Equipment and Construction in Progress The Group's investments in property, plant and equipment and construction in progress significantly increased, reflecting its strategy to expand production capacity and infrastructure - Acquisitions/additions of property, plant and equipment increased by 97.43% year-on-year[25] - Additions to construction in progress increased by 49.65% year-on-year[25] - Disposal of property, plant and equipment resulted in a loss of 3,922 thousand RMB, compared to a gain of 873 thousand RMB in the prior period[25] Property, Plant and Equipment and Construction in Progress Changes Table | Item | Acquisitions/Additions for the six months ended June 30, 2025 (thousand RMB) | Acquisitions/Additions for the six months ended June 30, 2024 (thousand RMB) | | :--- | :--- | :--- | | Property, plant and equipment | 19,939 | 10,099 | | Construction in progress | 309,987 | 207,136 | 9 Intangible Assets The Group's investments in exploration and evaluation assets and mining rights substantially increased, highlighting its focus on future resource reserves and production capacity - Additions to mining rights significantly increased from zero in the prior period to 157,297 thousand RMB[26] - Of the total intangible asset acquisitions at period-end, 124,056 thousand RMB remained unpaid and recognized as other payables[26] Intangible Assets Additions Table | Item | Additions for the six months ended June 30, 2025 (thousand RMB) | Additions for the six months ended June 30, 2024 (thousand RMB) | | :--- | :--- | :--- | | Exploration and evaluation assets | 25,863 | 25,706 | | Mining rights | 157,297 | 0 | 10 Inventories Total inventories increased, primarily due to growth in gold concentrate, doré, and gold bar inventories, reflecting enhanced production volumes - Total inventories increased by 11.11% compared to the end of 2024[27] - The carrying amount of inventories sold increased from 3,872,711 thousand RMB to 6,653,504 thousand RMB, and inventory write-downs increased from 831 thousand RMB to 1,053 thousand RMB[28] Inventories Components Table | Item | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Gold ore | 70,391 | 68,182 | | Gold concentrate and doré | 1,122,674 | 1,026,615 | | Gold bars | 480,114 | 410,385 | | By-products | 28,985 | 24,564 | | Spare parts and consumables | 112,193 | 103,219 | | Total Inventories | 1,814,357 | 1,632,965 | 11 Trade and Other Receivables Total trade and other receivables significantly increased, mainly due to substantial growth in purchase deposits and prepayments, reflecting business expansion and increased supply chain activities - Total trade and other receivables increased by 99.40% year-on-year[29] - Purchase deposits (net of provision for irrecoverable amounts) significantly increased from 46,478 thousand RMB to 362,717 thousand RMB[29] - Prepayments increased from 131,872 thousand RMB to 387,635 thousand RMB[29] Trade and Other Receivables Components Table | Item | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade and bills receivables (net of loss allowance) | 161,718 | 193,477 | | Other receivables (net of loss allowance) | 36,031 | 102,970 | | Purchase deposits (net of provision for irrecoverable amounts) | 362,717 | 46,478 | | Prepayments | 387,635 | 131,872 | | Total | 949,630 | 476,258 | 12 Cash and Cash Equivalents and Restricted Cash Total cash and cash equivalents and restricted cash significantly increased, reflecting enhanced liquidity, with restricted cash growth primarily from pledged deposits for letters of credit and bank acceptance bills - Total cash and cash equivalents and restricted cash increased by 82.84% year-on-year[30] - Pledged deposits for bank acceptance bills significantly increased from 250,000 thousand RMB to 685,000 thousand RMB[30] Cash and Restricted Cash Components Table | Item | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Cash at bank and in hand | 435,835 | 279,985 | | Restricted cash — Pledged deposits for letters of credit | 350,000 | 265,000 | | Restricted cash — Pledged deposits for bank acceptance bills | 685,000 | 250,000 | | Restricted cash — Security deposits for environmental governance | 18,084 | 27,820 | | Restricted cash — Others | 155,872 | 76,765 | | Total | 1,644,791 | 899,570 | 13 Bank Borrowings Total bank borrowings increased, with short-term borrowings accounting for the largest proportion, and secured borrowings significantly rising, reflecting the company's ability to obtain financing using assets - Total bank borrowings increased by 28.47% year-on-year[32] - Secured bank borrowings increased by 100.97% from 515,000 thousand RMB to 1,035,000 thousand RMB[33] Carrying Amount of Bank Borrowings Table | Item | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Short-term bank borrowings | 2,928,781 | 2,081,810 | | Long-term bank borrowings | 468,700 | 562,700 | | Total Bank Borrowings | 3,397,481 | 2,644,510 | Bank Borrowings Collateralization Table | Collateral Type | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Secured | 1,035,000 | 515,000 | | Guaranteed | 389,105 | 783,680 | | Unsecured | 1,973,376 | 1,345,830 | | Total | 3,397,481 | 2,644,510 | 14 Trade and Other Payables Total trade and other payables significantly increased, influenced by payables for mining rights, exploration rights, and dividends to shareholders, reflecting business expansion and dividend policy changes - Total current trade and other payables increased by 33.89% year-on-year[34] - Payables for mining rights significantly increased from 8,460 thousand RMB to 87,949 thousand RMB[34] - New payables for exploration rights amounted to 35,787 thousand RMB[34] - New dividends payable to equity holders of the Company amounted to 95,572 thousand RMB[34] Trade and Other Payables Components Table | Item | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Total trade payables | 477,512 | 464,901 | | Other payables and accrued expenses | 321,861 | 283,981 | | Payables for mining rights | 87,949 | 8,460 | | Payables for exploration rights | 35,787 | — | | Dividends payable to equity holders of the Company, net of withholding tax | 95,572 | — | | Total Current Trade and Other Payables | 1,046,938 | 781,947 | | Total Non-current Other Payables | 511,662 | 451,993 | 15 Share Capital and Reserves The Group's share capital increased through H share issuance and conversion of domestic shares to H shares, with the Board proposing an interim dividend reflecting improved profitability and shareholder returns - On January 23, 2025, 385,578,033 domestic shares were converted into H shares[38] - On March 18, 2025, 43,500,000 H shares were issued, raising net proceeds of approximately 211,724 thousand RMB[38] - The Board recommended an interim dividend of RMB 0.164 per share (nil for the same period in 2024), totaling 211,064 thousand RMB[39] Share Capital Changes Table | Item | As of December 31, 2024 (Total Shares) | As of June 30, 2025 (Total Shares) | | :--- | :--- | :--- | | Total registered, issued and fully paid shares | 1,243,476,055 | 1,286,976,055 | | Share capital amount (thousand RMB) | 248,695 | 257,395 | Business Review and Outlook Overall Performance Overview In H1 2025, the Group achieved record high gold ingot production and revenue, with net profit significantly increasing due to efficient production, capacity release, and rising gold prices - Gold ingot production was approximately 10,821 kg (approximately 347,884 ounces), an increase of approximately 2,870 kg (approximately 92,286 ounces) year-on-year[41] - Revenue was approximately 7,792,736 thousand RMB, an increase of approximately 82.02% year-on-year[41] - Net profit was approximately 670,041 thousand RMB, a year-on-year increase of 338.92%[41] - Basic earnings per share were RMB 0.52, a year-on-year increase of 300%[41] - As of June 30, 2025, the Group held 37 mining and exploration rights, covering an area of 216.04 square kilometers, with total gold reserve resources of approximately 128.50 tons (4,131,365 ounces)[41] 1. Mining Segment The mining segment achieved substantial growth in both revenue and profit, primarily driven by increased production capacity, improved beneficiation recovery rates, and higher gold prices in China and Kyrgyzstan - The mining business primarily sells gold concentrate and doré, with most sales being inter-group[42] Revenue and Production Total revenue for the mining segment increased by 132.00% year-on-year, with significant increases in gold concentrate and doré production, attributed to improved mine production levels and rising gold prices - Total revenue for the mining segment was approximately 1,805,199 thousand RMB, an increase of approximately 132.00% year-on-year[43] - Gold concentrate production increased by approximately 1,043 kg to 2,499 kg, and doré production increased by approximately 38 kg to 386 kg[43] Mining Segment Production and Sales Volume Table | Product | Unit | 2025 Production Volume | 2025 Sales Volume | 2024 Production Volume | 2024 Sales Volume | | :--- | :--- | :--- | :--- | :--- | :--- | | Gold concentrate (contained gold) | kg | 2,499 | 2,514 | 1,456 | 1,378 | | Doré | kg | 386 | 386 | 348 | 347 | | Total | kg | 2,884 | 2,900 | 1,805 | 1,725 | | Total | ounces | 92,731 | 93,243 | 58,022 | 55,465 | Segment Performance Total profit for the mining segment increased by 270.37% year-on-year, mainly due to enhanced beneficiation capacity, cost reduction, and efficiency improvements in China, along with increased production and refined management in Kyrgyzstan - Total profit for the mining segment was approximately 1,012,131 thousand RMB, an increase of approximately 270.37% year-on-year[44][45] - Profit from mining in China was approximately 949,664 thousand RMB, an increase of approximately 255.18% year-on-year[44] - Profit from mining in Kyrgyzstan significantly increased year-on-year to approximately 62,467 thousand RMB[44] - The ratio of mining business segment performance to segment revenue was approximately 56.07%, up from 35.12% in the prior period[44] 2. Smelting Segment The smelting segment turned profitable with a substantial increase in total revenue, driven by higher mining segment output, increased doré production, rising prices of precious metals and sulfuric acid, and enhanced cost control - The smelting plant is located in Henan Province and can comprehensively recover gold, silver, copper products, and sulfuric acid[46] Sales and Production Total revenue for the smelting segment increased by 85.51% year-on-year, primarily influenced by increased output from the mining segment and higher doré production - Total revenue for the smelting segment was approximately 7,960,292 thousand RMB, an increase of approximately 85.51% year-on-year[47] - Gold ingot production from processing externally purchased doré increased from 3,148 kg to 6,224 kg, a growth of 97.71%[46] Smelting Segment Production and Sales Volume Table | Product | Unit | 2025 Production Volume | 2025 Sales Volume | 2024 Production Volume | 2024 Sales Volume | | :--- | :--- | :--- | :--- | :--- | :--- | | Gold ingot (processed from gold concentrate) | kg | 4,597 | 4,617 | 4,802 | 4,795 | | Gold ingot (processed from externally purchased doré) | kg | 6,224 | 6,225 | 3,148 | 3,119 | | Silver | kg | 4,442 | 4,313 | 4,785 | 4,860 | | Copper products | ton | 845 | 829 | 775 | 792 | | Sulfuric acid | ton | 39,346 | 38,851 | 53,165 | 51,597 | Segment Performance The smelting segment successfully turned a loss into a profit of 47,379 thousand RMB, primarily due to capitalizing on rising precious metal and sulfuric acid prices, alongside enhanced cost control and management - The smelting segment recorded a profit of 47,379 thousand RMB, compared to a loss of approximately 24,444 thousand RMB in the prior period[48] - Profitability was mainly attributed to seizing opportunities from rising precious metal and sulfuric acid prices, and strengthening cost control and production organization[48] Consolidated Operating Results The Group's consolidated revenue and gross profit significantly increased, with a notable improvement in gross profit margin, driven by higher output of externally purchased doré and mining segment, rising prices, and improved profitability across segments Revenue The Group's total revenue increased by 82.02% year-on-year, primarily driven by a substantial increase in gold ingot sales, with gold concentrate sales also growing significantly - Gold ingot sales increased by 83.94% year-on-year, and gold concentrate sales increased by 91.19% year-on-year[49] - The average selling price of gold ingots increased by 34.25% from RMB 517,812/kg to RMB 695,176/kg[49] Sales Analysis by Product Category Table | Product Name | 2025 Amount (thousand RMB) | 2025 Sales Volume | 2025 Average Selling Price per Unit (RMB/kg or ton) | 2024 Amount (thousand RMB) | 2024 Sales Volume | 2024 Average Selling Price per Unit (RMB/kg or ton) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gold ingot | 7,537,559 | 10,842 kg | 695,176 | 4,097,968 | 7,914 kg | 517,812 | | Silver | 31,393 | 4,313 kg | 7,278 | 29,642 | 4,860 kg | 6,099 | | Copper products | 56,541 | 829 tons | 68,217 | 51,456 | 792 tons | 64,970 | | Sulfuric acid | 13,324 | 38,851 tons | 343 | 2,419 | 51,597 tons | 47 | | Gold concentrate | 324,016 | 471 kg | 687,208 | 169,476 | 332 kg | 510,470 | | Others | 8,611 | | | 4,463 | | | | Revenue Before Tax | 7,971,444 | | | 4,355,424 | | | | Less: Sales tax and surcharges | (178,708) | | | (74,196) | | | | Total Revenue | 7,792,736 | | | 4,281,228 | | | Gross Profit and Gross Profit Margin The Group's gross profit and gross profit margin significantly improved, primarily due to increased gross profit from Nanshan Branch, Xingyuan Company, Fujin Company, and the smelting segment turning profitable - Gross profit increased by 179.19% year-on-year, and gross profit margin improved by 5.09 percentage points[50] Gross Profit and Gross Profit Margin Table | Indicator | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | | :--- | :--- | :--- | | Gross profit | 1,138,179 | 407,686 | | Gross profit margin | 14.61% | 9.52% | Review of H1 2025 In H1 2025, the Group achieved record high total revenue and net profit by focusing on cost control, efficiency, quality, and capacity expansion, capitalizing on high gold prices, and making significant progress in production, technology, management, digitalization, ESG, and internationalization - Total revenue and net profit reached new historical highs, laying a solid foundation for a new round of development[51] Efficient and Orderly Production Organization, Smooth Progress of Key Projects In H1, the Group accelerated production, with major units like Fujin, Xingyuan, and Nanshan Branch making smooth progress in mining, infrastructure, and beneficiation plant construction, while the smelting green upgrade project entered trial operation and the new materials industrial park refinery topped out - Fujin Company rationally allocated mining faces, increasing daily ore output and grade[51] - Xingyuan Company added 23 mining points, continuously increasing average daily ore output[51] - Nanshan Branch efficiently advanced infrastructure, development, and production exploration projects, accelerating the construction of Baihua beneficiation plant and tailings pond[51] - The smelting branch's green upgrade project was successfully completed and entered trial operation[51] - The first phase of the Lingbao Gold New Materials Industrial Park refinery topped out, entering the equipment installation and commissioning phase[51] Dual-Track Drive of Technological Transformation and Operational Optimization for Cost Reduction and Efficiency Improvement The Group achieved cost reduction and efficiency improvement through technological transformation and operational optimization, including Huatai Company's introduction of mechanized mining equipment, Xingyuan Company's innovative tailings disposal, and the smelting branch's personnel optimization and competitive mechanisms - Huatai Company introduced new semi-automatic mechanized mining equipment, increasing grinding capacity from 1,800 tons/day to 2,200 tons/day, a 22.2% increase[52] - Huatai Company optimized the high-pressure water pump power distribution system modification plan, saving approximately 10 million RMB in equipment investment[52] - Xingyuan Company completed the online auction and disposal of 950,000 tons of tailings, extending the service life of the tailings pond[52] - The smelting branch's labor costs decreased by 6.62 million RMB year-on-year, iron-silicon slag disposal costs decreased by 6.10 million RMB year-on-year, and sulfuric acid sales net profit increased by 9.38 million RMB in H1[52] - Various mines re-evaluated and adjusted industrial grades to increase resource volume and maximize resource recovery[52] Orderly Advancement of Internal Reforms, Continuous Improvement in Refined Management The Group deepened internal reforms by establishing a specialized geological exploration company, setting up an engineering management team, advancing salary reforms, streamlining structures, and successfully recruiting 83 professionals and 91 fresh graduates, while continuously strengthening cost control - Established a specialized geological exploration company to enhance mineral resource exploration effectiveness and resource assurance capabilities[53] - Added a professional engineering management team to strengthen full-lifecycle control of engineering construction projects[53] - Advanced salary reforms and "three-fixed" (fixed responsibilities, fixed positions, fixed personnel) work at headquarters and subsidiaries, achieving precise control of human resource costs and upgrading the full-staff performance incentive system[54] - Successfully recruited 83 professional talents, including 27 core technical talents, through a special talent introduction program[54] - Hired 91 fresh graduates, with 49 in geology, surveying, and mining-related majors[54] - Strengthened dynamic control over key links such as engineering design, production operations, material procurement, material consumption, and expense expenditures, promoting refined management of production costs[54] - The share award scheme was approved by the general meeting of shareholders on August 5 and will be implemented[55] Deepening Digital Transformation, New Breakthroughs in 3D Digital Mine Construction The Group fully advanced digital transformation, completing the overall plan design, with 3 out of 11 digital projects implemented, launching the Lingjin AI Lab, building an enterprise-level AI knowledge base, and piloting AI-assisted office in finance and HR, while deepening MES system application and achieving 3D collaborative design at Huatai Company - Completed the overall plan design for digital transformation, with 3 out of 11 digital projects successfully implemented[56] - Launched the Lingjin AI Lab project, deployed localized AI large models, built an enterprise-level AI knowledge base, and piloted AI-assisted office in finance and HR[56] - Deepened MES system application, launched the second phase of the BI and data visualization system project, and successfully launched the first phase of the asset management system[57] - Huatai Company achieved 3D collaborative design for geology, surveying, and mining professionals, fully applying digital technology[57] Comprehensive Improvement in ESG Governance, Stable Safety and Environmental Operations The Group comprehensively improved ESG governance, launched a "Beautiful Mine Construction Project" pilot, increased safety and environmental investments, advanced the construction of a comprehensive safety management platform and mine equipment upgrades, and actively fulfilled social responsibilities through various donations - Launched the "Beautiful Mine Construction Project," with Nanshan Branch as the first pilot[58] - Invested a cumulative 23.37 million RMB in safety and environmental protection, focusing on the construction of the Lingjin comprehensive safety management platform[58] - Implemented a safety confirmation system for underground mining operations and improved the safety management assessment and incentive mechanism[58] - Donated 10 million RMB for the reconstruction of village roads in Zhuyang Town, Lingbao City[59] - Donated smart eye-protection lamps, energy-saving air conditioners, and advanced integrated teaching machines worth over 500,000 RMB to five primary and secondary schools in Lingbao City[59] - Donated 100,000 RMB to the judicial assistance public fund of the Lingbao City Procuratorate[59] Steady Progress in Internationalization The Group steadily advanced its internationalization process, establishing a standardized overseas project database, successfully completing a strategic investment in an Oceania gold mine project, and initially building an overseas business network covering Asia, Africa, and Oceania - Established a standardized overseas project database and improved full-process management of M&A information[60] - Successfully completed a strategic investment in an Oceania gold mine project[60] - Initially built an overseas business network covering Asia, Africa, and Oceania[60] Outlook for H2 2025 In H2, the Group will maintain strategic focus, capitalize on rising gold prices and favorable policies, accelerate key projects, deepen reforms, enhance operational efficiency, optimize cost structure, expedite internationalization and digitalization, and uphold safety and environmental standards for stable development Strengthening Production Organization for Steady Performance Growth In H2, the Group will continue to seize opportunities from high gold prices, advance exploration, reserve enhancement, capacity expansion, and technological transformation projects, strengthen production scheduling, and consolidate operating results for steady performance growth - Seize opportunities from high gold prices, advance exploration, reserve enhancement, capacity expansion, and technological transformation projects[61] Implementing Prospecting Breakthrough Actions to Continuously Solidify the Foundation for Industrial Development The Group will leverage its geological exploration company to intensify independent prospecting efforts, introduce advanced technologies, and accelerate key exploration projects and deep exploration to ensure resource continuity and sustainable development - Rely on the geological exploration company to intensify independent prospecting efforts, introducing advanced prospecting concepts and technologies[62] - Accelerate the advancement of key exploration projects, deep exploration, and exploration planning work[62] Focusing on Key Projects to Expand New Development Space The Group will accelerate the construction of key projects for major production units, including Nanshan Branch, Xingyuan Company, Huatai Company, Fujin Company, Jinchan Company, and the Smelting Branch, covering infrastructure, beneficiation plants, tailings ponds, technological upgrades, and green transformation - Accelerate the construction of Nanshan Branch's Qiangma infrastructure project, Baihua beneficiation plant, and new tailings pond project[62] - Advance Xingyuan Company's Shangshanghe-Laowan mining section infrastructure project, new tailings pond project, and preliminary feasibility study for a new beneficiation plant project[62] - Advance Huatai Company's 3D digital mine construction, optimization of mining methods, and new tailings pond project[62] - Advance the Smelting Branch's iron-silicon slag disposal and green upgrade project[62] Improving Overseas Project Management, Steadily Advancing Internationalization Strategy The Group will actively advance the screening, inspection, tracking, and implementation of key overseas projects, strengthen new project information collection, expand its partner network, and establish a comprehensive risk management system for overseas investments, aiming to complete key M&A projects in target regions - Actively advance the screening, inspection, tracking, and implementation of key overseas projects[62] - Strengthen new project information collection and expand connections with domestic and international mining companies and investment institutions[62] - Establish and improve a comprehensive risk management system covering the entire process of overseas investments[62] - Aim to complete key M&A projects in target regions in H2[62] Deepening Application Synergy, Advancing Digital Strategy Implementation The Group will comprehensively advance the iteration and upgrade of MES and BI systems, promote 3D digitalization in geology and surveying at mine units, accelerate AI and data team building, deploy AI knowledge base systems, and explore innovative applications of RPA and AI in finance and other business scenarios - Comprehensively advance the iteration and upgrade of MES and BI systems, achieving deep application and value realization[63] - Mine units will vigorously promote 3D digitalization in geology and surveying, achieving full-element data collection, visualization, and full-lifecycle application[63] - Accelerate AI and data team building, deploy AI knowledge base systems, and explore innovative applications of RPA and AI technologies in finance and other business scenarios[63] Comprehensive Cost Reduction and Control to Forge New Cost Advantages The Group will precisely target key breakthroughs in cost optimization, analyze cost composition across all dimensions, implement precise measures to control fixed costs, dynamically optimize variable costs, and uncover hidden cost optimization opportunities to enhance refined cost management - Build a comprehensive cost control system, analyzing cost composition across all dimensions including production operations, investment construction, technological innovation, safety, and environmental protection[63] - Implement precise measures to control fixed costs, dynamically optimize variable costs, and uncover hidden cost optimization opportunities[63] - The engineering management team will strengthen full-lifecycle project control to ensure cost input translates into economic benefits[63] Upholding Safety and Environmental Bottom Line, Ensuring Stable Production Operations The Group will focus on the three-year action plan for fundamental safety production improvements, strictly investigate hidden hazards, manage dangerous operations, strengthen mine management, and improve online monitoring of tailings ponds to eliminate major risks - Focus on the three-year action plan for fundamental safety production improvements, strictly investigate hidden hazards, and strictly manage dangerous operations[63] - Improve online monitoring of tailings ponds to ensure major hazards are eliminated and risks are fully controlled[63] - Fully launch the comprehensive safety management platform to achieve intelligent full-process supervision[63] Financial Review Liquidity and Financial Resources The Group's liquidity significantly improved, with a substantial increase in cash and cash equivalents, an enhanced current ratio, and a stable gearing ratio, planning further reductions in gearing and improved financing capabilities - Restricted cash, cash and cash equivalents increased by 82.84% year-on-year[64] - The current ratio improved from 99.45% to 108.66%, indicating improved liquidity[64] - Unutilized unsecured bank facilities amounted to approximately 787,150 thousand RMB[65] - Plans to reduce the gearing ratio and enhance financing capabilities through refined management, optimized fund allocation, reasonable supply chain financing, optimized financing structure, and placement of new H shares[66][67] Liquidity and Financial Resources Overview Table | Indicator | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Restricted cash, cash and cash equivalents | 1,644,791 | 899,570 | | Total equity | 3,940,520 | 3,158,184 | | Current assets | 4,481,195 | 3,008,793 | | Current liabilities | 4,124,042 | 3,025,313 | | Current ratio | 108.66% | 99.45% | | Outstanding bank and other borrowings | 3,397,481 | 2,644,510 | | Gearing ratio | 37.54% | 36.65% | Pledges and Guarantees Details of the Group's pledges and guarantees, primarily related to bank borrowings, are disclosed in Note 13 to the financial statements - Details of pledges and guarantees are referred to Note 13 — Bank Borrowings in the financial statements[68] Market Risks The Group faces market risks from fluctuations in gold and other commodity values, interest rates, and foreign currency exchange rates, strictly prohibiting speculative use of commodity derivatives - Faces risks from fluctuations in gold prices and other commodity values, with products sold at market prices[69][70] - Strictly prohibits the use of commodity derivatives or futures for speculative purposes; all commodity derivatives are used to hedge against potential fluctuations[70] - Faces risks from fluctuations in debt interest rates, with People's Bank of China interest rate adjustments potentially affecting financing costs[71] - Primarily transacts in RMB, but some bank deposits, trade receivables, trade payables, and bank loans are denominated in foreign currencies (mainly USD), exposing the Group to exchange rate risks[72] Contractual Obligations The Group's total capital commitments increased, primarily related to contracted costs not yet provided for in the financial statements - As of June 30, 2025, total capital commitments were approximately 29,555 thousand RMB, an increase of approximately 11,984 thousand RMB year-on-year[74] Capital Expenditure The Group's capital expenditure significantly increased, mainly for mine construction, renewal of mining rights, and upgrades of production equipment, reflecting continuous investment in infrastructure and production capacity - Capital expenditure for the period was approximately 402,720 thousand RMB, an increase of approximately 39.81% year-on-year[75] - Capital expenditure primarily involved mine construction, renewal of mining rights for subsidiaries, development project equipment, and upgrades of production equipment[75] Contingent Liabilities As of the end of the reporting period, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[76] Human Resources The Group's employee count slightly increased, with remuneration policies based on merit, seniority, and competence, focusing on employee training, development, and incentive policies - As of June 30, 2025, the Group had 3,655 employees, a slight increase from 3,618 at the end of 2024[77] - Remuneration policies are determined based on employee merit, seniority, and competence[77] - Provides induction training, on-the-job training, and remuneration incentive policies[77] Funding and Treasury Policies The Group maintains prudent funding and treasury policies, depositing surplus funds with licensed financial institutions and closely monitoring liquidity to ensure operational working capital needs are met - Maintains prudent funding and treasury policies, depositing surplus funds with licensed banks and financial institutions[78] - The Board closely monitors liquidity to ensure funding needs are met[78] Material Investments As of the end of the reporting period, the Group held no material investments - As of June 30, 2025, the Group held no material investments[79] Material Acquisitions and Disposals of Subsidiaries and Associates As of the end of the reporting period, the Group had no material acquisitions or disposals of subsidiaries or associates - As of June 30, 2025, there were no material acquisitions or disposals of subsidiaries or associates[80] Future Plans for Material Investments or Capital Assets Except as disclosed elsewhere in this announcement, the Group has no other future plans for material acquisitions, investments, or capital assets as of the date of this announcement - Except as disclosed, there are no other future plans for material acquisitions, investments, or capital assets[81] Events After Reporting Period No significant events occurred after the period-end up to the date of this announcement - No significant events occurred after the period-end up to the date of this announcement[82] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares, and the Company held no treasury shares - No purchase, sale, or redemption of the Company's listed securities occurred during the period[83] - As of June 30, 2025, the Company held no treasury shares[83] Interim Dividend The Board recommended an interim dividend of RMB 0.164 per share, detailing tax arrangements for H share shareholders and periods for closure of the register of members - The Board recommended an interim dividend of RMB 0.164 per share (H1 2024: nil)[84] - The interim dividend is expected to be paid on or about October 22, 2025, subject to shareholder approval[84] Dividend Tax Arrangements The Company will withhold enterprise income tax at a 10% rate for non-resident enterprise H share shareholders and individual income tax for H share individual shareholders based on tax treaties between their resident countries/regions and China - Before distributing interim dividends to non-resident enterprise H share shareholders, enterprise income tax will be withheld at a 10% rate[84] - Individual income tax rates for H share individual shareholders depend on tax treaties between their resident countries/regions and China, potentially 10%, below 10% (requiring refund application), above 10% but below 20%, or 20%[86] Closure of Register of Members To determine H share shareholders eligible to attend and vote at the EGM, the Company will close its register of members from September 12 to September 17, 2025; for interim dividend eligibility, it will be closed from September 23 to September 28, 2025 - To determine H share shareholders eligible to attend and vote at the extraordinary general meeting, the register of members will be closed from September 12 to September 17, 2025[88] - To determine H share shareholders eligible for the interim dividend, the register of members will be closed from September 23 to September 28, 2025[89] Corporate Governance and Others Corporate Governance The Company is committed to maintaining high standards of corporate governance, having adopted relevant code provisions of the Corporate Governance Code and confirming compliance with all applicable provisions during the period - Adopted relevant code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules[90] - The Board believes that all applicable code provisions of the Corporate Governance Code were complied with during the period[91] Standard Code for Securities Transactions The Company adopted the Standard Code for Securities Transactions as a code of conduct for directors, supervisors, and employees with inside information, confirming compliance by all directors and supervisors during the period - Adopted the Standard Code set out in Appendix C3 of the Listing Rules as a code of conduct for directors, supervisors, and employees with inside information regarding securities transactions[92] - All directors and supervisors confirmed compliance with the Standard Code during the period, with no breaches by employees identified[92] Audit Committee The Audit Committee, comprising four independent non-executive directors and one non-executive director, reviewed this interim financial report, which was also reviewed by external auditors in accordance with HKSRS 2410 - The Audit Committee comprises four independent non-executive directors and one non-executive director[93] - The Audit Committee reviewed the unaudited interim financial report for the six months ended June 30, 2025[93] - External auditors reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[93] Publication of Results Announcement and Interim Report This results announcement has been published on the HKEX and company websites, with the 2025 interim report to be dispatched to shareholders and published online in due course - The results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.irasia.com/listco/hk/lingbao)[94](index=94&type=chunk) - The 2025 interim report will be dispatched to shareholders and published on the website in due course[94] Board of Directors As of the date of this announcement, the Board of Directors comprises five executive directors, two non-executive directors, and four independent non-executive directors - The Board of Directors includes five executive directors, two non-executive directors, and four independent non-executive directors[96]