中铝国际(02068) - 2025 - 中期业绩

Section I Definitions This section defines key terms used in the report, such as company name, Group, and reporting period, to ensure clear understanding of the content Definitions of Common Terms - The Company, CHALCO International refers to CHALCO International Engineering Co., Ltd[25] - The Group refers to the Company and its subsidiaries[25] - CHINALCO Group refers to Aluminum Corporation of China Limited, the Company's controlling shareholder[25] - Reporting Period, This Reporting Period refers to January 2025 to June 2025[26] Section II Company Profile and Key Financial Indicators I. Company Information This section provides CHALCO International's Chinese and English names, abbreviations, and legal representative details - The Company's Chinese name is 中鋁國際工程股份有限公司, abbreviated as CHALCO International[27] - The Company's legal representative is Li Yihua[27] II. Contact Person and Contact Information This section lists contact details for the Company Secretary and Securities Affairs Representative, including names, addresses, and communication methods - The Company Secretary and Joint Company Secretary is Tao Fulun, and the Securities Affairs Representative is Ma Shaozhu[29] - The contact address for all is Building C, No. 99 Xishikou Road, Haidian District, Beijing[29] III. Brief Introduction to Changes in Basic Information This section outlines historical changes in the company's registered address and confirms no changes occurred during the reporting period - The Company's registered address is Building C, No. 99 Xishikou Road, Haidian District, Beijing, which has changed historically[30] - During the reporting period, there were no changes in the Company's registered address, domestic office address, Hong Kong office address, or website[30] IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section specifies the company's chosen information disclosure newspapers, website addresses, and report storage locations, confirming no changes - The newspapers selected by the Company for information disclosure are Securities Daily and Securities Times[31] - The websites for publishing the semi-annual report are www.sse.com.cn and **www.hkex.com.hk**[31](index=31&type=chunk) V. Company Stock Overview This section lists the listing exchanges, stock abbreviations, and stock codes for the company's A-shares and H-shares - The Company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation CHALCO International and code 601068[32] - The Company's H-shares are listed on the Hong Kong Stock Exchange, with stock abbreviation CHALCO International and code 2068[32] VI. Other Relevant Information This section discloses details of the accounting firm, legal advisors, and share registrars appointed by the company - The Company appointed Grant Thornton (Special General Partnership) as its accounting firm[33] - The Company appointed Jia Yuan Law Offices as its domestic legal advisor and Jia Yuan Law Offices as its overseas legal advisor[33] VII. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for H1 2025, including revenue, net profit, and EPS, with prior period comparisons 2025 First Half Key Accounting Data (Unit: Thousand Yuan, RMB) | Indicator | This Reporting Period (Jan-Jun) | Prior Period | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 9,698,350 | 10,710,476 | -9.45 | | Total Profit | 235,317 | 269,332 | -12.63 | | Net profit attributable to shareholders of the listed company | 102,589 | 155,989 | -34.23 | | Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 55,926 | 66,325 | -15.68 | | Net cash flow from operating activities | -199,300 | -2,034,849 | N/A | | Net assets attributable to shareholders of the listed company (Period-end) | 6,664,224 | 6,582,409 | 1.24 | | Total Assets (Period-end) | 40,425,812 | 41,156,527 | -1.78 | 2025 First Half Key Financial Indicators | Indicator | This Reporting Period (Jan-Jun) | Prior Period | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.01 | 0.02 | -50.00 | | Diluted Earnings Per Share (Yuan/share) | 0.01 | 0.02 | -50.00 | | Basic Earnings Per Share after deducting non-recurring gains and losses (Yuan/share) | -0.01 | -0.01 | N/A | | Weighted Average Return on Net Assets (%) | 0.96 | 2.98 | Decrease of 2.02 percentage points | | Weighted Average Return on Net Assets after deducting non-recurring gains and losses (%) | -0.70 | -1.07 | N/A | IX. Non-recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for H1 2025, totaling a net 46,663 thousand Yuan 2025 First Half Non-recurring Gains and Losses Items and Amounts (Unit: Thousand Yuan, RMB) | Non-recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains or losses from disposal of non-current assets | 28,468 | | Government grants recognized in current profit or loss | 4,476 | | Funds occupation fees received from non-financial enterprises recognized in current profit or loss | 2,395 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 31,870 | | Gains or losses from debt restructuring | 568 | | Other non-operating income and expenses apart from the above | 3,745 | | Less: Income tax impact | 16,474 | | Less: Impact on minority interests (after tax) | 8,385 | | Total | 46,663 | X. Companies with Equity Incentives or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-based Payment Impact This section discloses the company's net profit after deducting share-based payment impact for H1 2025, which was 164,809 thousand Yuan, a 17.22% year-on-year decrease Net profit after deducting share-based payment impact (Unit: Thousand Yuan, RMB) | Indicator | This Reporting Period (Jan-Jun) | Prior Period | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Net profit after deducting share-based payment impact | 164,809 | 199,094 | -17.22 | Section III Chairman's Statement First Half Operating Review In H1 2025, CHALCO International implemented its "Technology + International" strategy, achieving stable operations and significant progress in transformation and market competitiveness - The Company's new industrial contracts in the first half amounted to 15.633 billion Yuan, a year-on-year increase of 38%, accounting for 95% of total new contracts[44] - New EPC general contracting and construction contracts reached 13.981 billion Yuan, a year-on-year increase of 26%[44] - New overseas contracts amounted to 3.189 billion Yuan, a year-on-year increase of 284%, successfully signing the Simandou mining operations and maintenance project contract in Guinea[44][45] - Six of the Company's "Sci-Tech Reform Enterprises" were rated as "one benchmark, three excellent, two good" in the SASAC's 2024 special assessment[46] Second Half Strategic Outlook In H2, CHALCO International will focus on "strengthening operations, promoting transformation, preventing risks, and deepening reforms" to enhance market share and accelerate business upgrades - Strengthen Operations: Continuously increase market share in design consulting, expand EPC general contracting business development, deepen technology marketing, and enhance full mining industry chain service capabilities[47] - Promote Transformation: Establish a three-tier marketing structure, focus on core businesses, exit high-risk and inefficient non-core businesses, increase the proportion of industrial, survey and design, EPC, strategic emerging, and overseas businesses, and high-quality prepare the "15th Five-Year Plan"[47] - Prevent Risks: Strengthen on-site safety control, promote safety and environmental information construction, comprehensively improve overseas project management standards, and conduct risk assessments[48] - Deepen Reforms: Optimize organizational structure and human resource allocation, promote systemic reforms in key areas, and enhance operational efficiency and management effectiveness[48] Section IV Management Discussion and Analysis I. Industry and Principal Business Overview During the Reporting Period This section details the company's business models in non-ferrous metals engineering, including design, EPC, and equipment manufacturing, analyzing H1 2025 industry performance and trends (I) Principal Business and Operating Model The company's main businesses include design consulting, EPC, and equipment manufacturing, providing comprehensive solutions across the non-ferrous metals industry chain and expanding into strategic emerging industries - Design consulting is the Company's traditional core business, covering the entire non-ferrous metals mining, beneficiation, smelting, and processing chain, as well as new energy, chemical, and environmental fields, with leading technology and higher profit margins[50] - EPC general contracting and construction business covers multiple industrial and construction sectors, with diverse models, benefiting from industrial advantages and strategic emerging industry development[51] - Equipment manufacturing is the Company's high-tech industry, focusing on R&D of new processes, technologies, materials, and equipment for non-ferrous metals, with products applied across the entire industry chain, expected to benefit from equipment upgrade policies[52] (II) Industry Conditions The non-ferrous metals industry performed well in H1 2025, with key indicators surpassing the industrial average and strong copper/aluminum prices, anticipating continued growth in H2 - In the first half of 2025, the non-ferrous metals industry generally performed well, with main indicators surpassing the industrial average and accelerating transformation and upgrading[53] - Copper and aluminum prices and output led the industry, with copper prices remaining high and aluminum prices showing strong performance[53] - The industry is expected to achieve a leap from "structural growth" to "overall recovery" in the second half, with "high-end breakthroughs, green and low-carbon transformation, and intelligent penetration" as the main themes[53] II. Discussion and Analysis of Operating Performance This section comprehensively analyzes the company's H1 2025 operating performance, highlighting achievements in market, projects, overseas business, innovation, and reforms, and outlining H2 strategies (I) Business Operating Performance in the First Half The company achieved significant results in H1 in production, innovation, reforms, and risk control, enhancing core competitiveness and improving operational quality, with better international rankings - The Company was listed among ENR's "Top 150 Global Design Firms" and "Global Top 250 International Contractors," with improved rankings in both[55] - In the first half, new contracts totaled 16.401 billion Yuan, a year-on-year increase of 26%; industrial projects accounted for 15.633 billion Yuan, a year-on-year increase of 38%[56] - Overseas business grew rapidly, with 116 new overseas contracts totaling 3.189 billion Yuan, a year-on-year increase of 284%[57] - In technological innovation, the Company led the formulation of national standards, achieved multiple internationally leading scientific and technological results, and increased new invention patent applications by 39% year-on-year[58][59] - Digitalization showed strong momentum, with 366 million Yuan in digital contracts signed for smart factories and production lines[60] - Deepening reforms achieved breakthroughs, with six "Sci-Tech Reform Enterprises" rated as "1 benchmark, 3 excellent, 2 good"[61] (II) Outlook for the Second Half In H2, the company will deepen market development, strengthen project control, pursue technological breakthroughs, enhance strategic effectiveness, and stabilize risks for improved business development - Deepen market development, focus on core businesses, target incremental markets, expand EPC market share, and elevate overseas business to new heights[64] - Strengthen technological breakthroughs, plan for "15th Five-Year Plan" technological development, tackle major scientific and technological projects, accelerate industrialization of scientific achievements, and build a strong talent pipeline[65][66] - Advance reform initiatives, high-quality prepare the "15th Five-Year Plan" development strategy, optimize organizational performance and compensation distribution mechanisms, and promote three-tier control and "penetrating management"[67] - Stabilize risks, improve compliance, strengthen safety and environmental basic capabilities, and enforce primary responsibilities[68] (III) Contract Status In H1 2025, new contracts totaled 16.401 billion Yuan, up 26.24%, with significant growth in industrial and overseas contracts; uncompleted contracts were 45.838 billion Yuan 2025 January-June New Contract Status (Unit: Billion Yuan, RMB) | Contract Type | Quantity (Units) | Amount | Prior Period | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | :--- | | I. By Industry | | | | | | 1. Industrial | 1,908 | 15.63 | 11.35 | 37.68 | | 2. Non-industrial | 573 | 0.77 | 1.64 | -53.08 | | Total | 2,481 | 16.40 | 12.99 | 26.24 | | II. By Business | | | | | | 1. Design Consulting | 1,049 | 1.20 | 0.81 | 48.03 | | 2. EPC General Contracting & Construction | 1,115 | 13.98 | 11.10 | 25.94 | | 3. Equipment Manufacturing | 317 | 1.22 | 1.08 | 12.88 | | Total | 2,481 | 16.40 | 12.99 | 26.24 | | III. By Region | | | | | | 1. Domestic | 2,365 | 13.21 | 12.16 | 8.63 | | 2. Overseas | 116 | 3.19 | 0.83 | 284.22 | | Total | 2,481 | 16.40 | 12.99 | 26.24 | Cumulative Existing Contracts as of June 30, 2025 (Unit: Billion Yuan, RMB) | Contract Type | Amount | Prior Period | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | I. By Industry | | | | | 1. Industrial | 32.34 | 24.41 | 32.50 | | 2. Non-industrial | 13.50 | 23.18 | -41.77 | | Total | 45.84 | 47.59 | -3.67 | | II. By Business | | | | | 1. Design Consulting | 4.46 | 4.09 | 9.10 | | 2. EPC General Contracting & Construction | 34.85 | 38.43 | -9.30 | | 3. Equipment Manufacturing | 6.52 | 5.07 | 28.62 | | Total | 45.84 | 47.59 | -3.68 | | III. By Region | | | | | 1. Domestic | 34.63 | 40.60 | -14.70 | | 2. Overseas | 11.21 | 6.99 | 60.39 | | Total | 45.84 | 47.59 | -3.67 | (IV) Operating Performance and Discussion In H1 2025, revenue decreased by 9.45% to 9.698 billion Yuan, and net profit attributable to shareholders fell by 34.23% to 103 million Yuan, mainly due to non-industrial business exit - Operating revenue was 9.698 billion Yuan, a year-on-year decrease of 9.45%, primarily due to business transformation and the exit from non-industrial sectors such as municipal and civil construction[71] - Net profit attributable to shareholders of the listed company was 103 million Yuan, a year-on-year decrease of 53 million Yuan, a 34.23% decline[71] - Administrative expenses were 420 million Yuan, a year-on-year decrease of 51 million Yuan, mainly due to labor efficiency reforms and cost reduction[75] - Financial expenses were 137 million Yuan, a year-on-year increase of 32 million Yuan, primarily affected by a 62 million Yuan decrease in exchange gains due to USD exchange rate fluctuations[77] - Reversal of credit impairment losses increased profit by 118 million Yuan, a year-on-year decrease of 40 million Yuan; asset impairment losses were 27 million Yuan, a year-on-year decrease in profit of 52 million Yuan compared to a reversal in the prior period[78][79] (V) Principal Business by Industry and Region The company's principal business gross profit margin was 10.84%, up 1.26 percentage points, with design consulting and equipment manufacturing revenue and margins rising, and overseas revenue growing by 6.89% Principal Business by Industry (Unit: Thousand Yuan, RMB) | By Industry | Operating Revenue | Operating Cost | Gross Profit Margin (%) | Year-on-year Change in Operating Revenue (%) | Year-on-year Change in Operating Cost (%) | Year-on-year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Design Consulting | 600,070 | 396,898 | 33.86 | 0.37 | -0.90 | Increase of 0.85 percentage points | | EPC General Contracting & Construction | 7,349,618 | 6,748,146 | 8.18 | -17.57 | -18.27 | Increase of 0.79 percentage points | | Equipment Manufacturing | 1,748,662 | 1,502,149 | 14.10 | 46.20 | 46.20 | Flat | | Total | 9,698,350 | 8,647,193 | 10.84 | -9.45 | -10.72 | Increase of 1.26 percentage points | Principal Business by Region (Unit: Thousand Yuan, RMB) | By Region | Operating Revenue | Operating Cost | Gross Profit Margin (%) | Year-on-year Change in Operating Revenue (%) | Year-on-year Change in Operating Cost (%) | Year-on-year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 7,682,027 | 6,915,269 | 9.98 | -12.94 | -14.13 | Increase of 1.24 percentage points | | Other Countries and Regions | 2,016,323 | 1,731,925 | 14.10 | 6.89 | 6.14 | Increase of 0.61 percentage points | | Total | 9,698,350 | 8,647,193 | 10.84 | -9.45 | -10.72 | Increase of 1.26 percentage points | - Design consulting business revenue was 600 million Yuan, a year-on-year increase of 0.37%, with a gross profit margin of 33.86%, a year-on-year increase of 0.85 percentage points[88] - Equipment manufacturing business revenue was 1.749 billion Yuan, a year-on-year increase of 46.20%, primarily driven by technological innovation and key technology R&D[92] - Overseas business revenue was 2.016 billion Yuan, a year-on-year increase of 6.89%, mainly due to focusing on "Belt and Road" countries and emerging markets[95] III. Analysis of Core Competencies During the Reporting Period The company's core competencies include strong technology and talent, comprehensive industry chain coverage, numerous top-tier qualifications, and leading domestic and international market positions - The Company owns 5 Class A design institutes, 2 Class A survey and design institutes, and 3 large integrated construction and installation enterprises, along with multiple national-level engineering technology research centers and enterprise technology centers[97] - It boasts 41 national and industry survey and design masters and 5,943 professional technical personnel of various types[98] - The Company possesses world-leading or industry-advanced technologies in mining, metallurgy, and processing, such as ultra-fine droplet electrolytic flue gas horizontal desulfurization technology, intelligent sampling equipment and control systems, and wide-width high-precision aluminum alloy plate and strip six-roll cold rolling equipment[99][107][120] - It has a "three-full" advantage, covering all metal categories, the entire industry chain, and the full project lifecycle[128] - The Company holds a total of 398 qualifications, including comprehensive Class A engineering design, comprehensive Class A survey, and special grade construction general contracting[130] - Domestic market advantages are significant, participating in numerous national key projects and creating over a hundred "China's First" and "World's First" achievements[131] - Overseas market advantages are prominent, focusing on "Belt and Road" countries and emerging markets, with 100% market share in electrolytic aluminum design in Indonesia[132] IV. Key Operating Performance During the Reporting Period This section analyzes changes in financial statement items, asset-liability structure, investments, and subsidiary operations, showing progress in financing and collections despite increased investment cash outflow (I) Principal Business Analysis Operating revenue decreased by 9.45% due to business transformation; operating costs fell, financial expenses rose from reduced exchange gains, and operating cash outflow decreased Financial Statement Related Item Fluctuation Analysis (Unit: Thousand Yuan, RMB) | Item | Current Period Amount | Prior Period Amount | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 9,698,350 | 10,710,476 | -9.45 | | Operating Cost | 8,647,193 | 9,684,950 | -10.72 | | Selling Expenses | 50,931 | 60,095 | -15.25 | | Administrative Expenses | 419,689 | 470,888 | -10.87 | | Financial Expenses | 137,420 | 104,985 | 30.89 | | R&D Expenses | 284,058 | 315,561 | -9.98 | | Net cash flow from operating activities | -199,300 | -2,034,849 | N/A | | Net cash flow from investing activities | -65,860 | 702,903 | -109.37 | | Net cash flow from financing activities | -387,865 | 1,269,801 | -130.55 | - Operating revenue decreased by 9.45%, primarily due to business transformation and the exit from non-industrial sectors such as municipal and civil construction[135] - Financial expenses increased by 30.89%, mainly affected by a 62 million Yuan year-on-year decrease in exchange gains due to USD exchange rate fluctuations[138] - Net cash flow from operating activities saw a 1.836 billion Yuan smaller outflow year-on-year, mainly due to strengthened collection management[139] (III) Analysis of Assets and Liabilities As of June 30, 2025, total assets were 40.426 billion Yuan (down 1.78%), net assets attributable to shareholders were 6.664 billion Yuan (up 1.24%), with increased net current assets but reduced cash Asset and Liability Status Changes (Unit: Thousand Yuan) | Item Name | Period-end Amount | Period-end Amount as % of Total Assets | Prior Year-end Amount | Prior Year-end Amount as % of Total Assets | Period-end Amount vs. Prior Year-end Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 243,024 | 0.60 | 360,418 | 0.88 | -32.57 | | Receivables Financing | 127,275 | 0.31 | 321,003 | 0.78 | -60.35 | | Lease Liabilities | 12,814 | 0.03 | 28,078 | 0.07 | -54.36 | - As of June 30, 2025, the Company held 3.162 billion Yuan in bank deposits and cash, a decrease of 786 million Yuan from the end of 2024, mainly due to payments for project engineering and loan repayments[145] - Net current assets were 7.688 billion Yuan, an increase of 54 million Yuan from the end of 2024[145] - Outstanding borrowings were 9.560 billion Yuan, a decrease of 229 million Yuan from the end of 2024[146] - Net cash outflow from operating activities was 199 million Yuan, a year-on-year decrease in outflow of 1.836 billion Yuan, mainly due to strengthened collection management[147] - The capital-to-debt ratio was 44.03%, a slight increase from 42.82% at the end of 2024[148] (IV) Analysis of Investment Status As of June 30, 2025, long-term equity investments were 742 million Yuan (up 0.23%), while financial assets measured at fair value decreased to 170 million Yuan - Long-term equity investment balance was 742 million Yuan, an increase of 1.715 million Yuan or 0.23% from the beginning of the year[149] Financial Assets Measured at Fair Value (Unit: Thousand Yuan, RMB) | Asset Category | Beginning of Period | End of Period | | :--- | :--- | :--- | | Receivables Financing | 321,003 | 127,275 | | Other Equity Instrument Investments | 43,160 | 43,067 | | Total | 364,163 | 170,342 | (VI) Analysis of Major Controlled and Investee Companies This section lists financial data for major controlled and investee companies, including assets, net assets, revenue, and net profit, covering engineering and construction subsidiaries Major Controlled and Investee Company Financial Data (Unit: Thousand Yuan, RMB) | Company Name | Business Scope | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Shenyang Aluminum & Magnesium Engineering & Research Institute Co., Ltd. | Engineering Survey & Design | 2,687,060 | 1,355,652 | 735,981 | 61,675 | | Guiyang Aluminum & Magnesium Design and Research Institute Co., Ltd. | Engineering Survey & Design | 1,921,339 | 545,920 | 689,987 | 73,602 | | Changsha Nonferrous Metallurgical Design and Research Institute Co., Ltd. | Engineering Survey & Design | 4,673,184 | 2,393,013 | 1,061,137 | 73,952 | | China Nonferrous Metal Industry Technology Co., Ltd. | Engineering Design & Equipment Manufacturing | 2,015,634 | 616,620 | 578,615 | 37,712 | | Kunming Institute of Nonferrous Metals Engineering & Research Co., Ltd. | Engineering Survey & Design | 1,938,405 | 1,070,751 | 762,637 | 32,526 | | China Nonferrous Metal Industry Sixth Metallurgical Construction Co., Ltd. | Construction | 11,977,362 | 2,367,184 | 2,682,399 | 14,350 | | Jiu Ye Construction Co., Ltd. | Construction | 9,301,525 | 1,779,861 | 1,331,898 | -8,544 | | China Nonferrous Metal Industry Twelfth Metallurgical Construction Co., Ltd. | Construction | 4,420,730 | 767,941 | 1,230,005 | -50,442 | V. Other Disclosure Matters This section covers key risks (safety, cash flow, project management, transformation, market competition), progress of the 2025 "Quality Improvement" plan, and other significant items like contracts and director changes (I) Potential Risks The company faces safety, environmental, cash flow, project management, reform, and market competition risks, with mitigation measures in place - Safety and Environmental Risks: Insufficient pressure on subcontract safety management, inadequate safety and environmental awareness, and unclear personnel safety production responsibilities[156] - Cash Flow Risks: Intense competition in the construction engineering sector, long settlement and collection cycles, and difficulties in recovering receivables from existing municipal and civil construction businesses[158] - Engineering Project Management Risks: Inadequate construction technical management for some projects, deviations in performance management, and weak capabilities for secondary and tertiary project value enhancement[160] - Reform and Business Transformation Risks: Market and external environmental uncertainties, some key reform tasks not meeting expectations, and some employees lacking understanding and support for reforms[162] - Market Change and Market Competition Risks: Decreased investment in the non-ferrous industry, shrinking real estate and municipal civil markets, and intensified competition due to increased industry concentration[164] (II) Other Disclosure Matters The company's 2025 "Quality Improvement" plan shows progress in business, innovation, and governance; no new sanctioned country business or interim dividend proposed - Business structure continued to optimize, with new contracts increasing by 26% year-on-year in the first half, industrial contracts increasing by 38% year-on-year, and total overseas business value growing by 284% year-on-year[166] - In technological innovation, R&D investment intensity reached 3.12%, with 3 new internationally leading achievements and a 39% year-on-year increase in invention patent applications[168] - The Company completed the re-election of its board of directors, formed a diverse team, and abolished the supervisory board's powers, transferring them to the audit committee[169] - The Company launched a reserved grant plan for restricted shares, granting 2 million restricted shares to 21 incentive recipients, stimulating internal organizational vitality[171] - The Company confirmed no new business with sanctioned countries and no related transaction plans or arrangements have been formed[173] - The Board of Directors did not propose an interim dividend for the six months ended June 30, 2025[174] - Executive Director Liu Dongjun ceased to hold his position from August 2025, Non-executive Director Hu Weixi was re-designated from June 2025, and Independent Non-executive Directors Xiao Zhixiong and Tong Pengfang had changes in their positions[180] Section V Corporate Governance, Environment and Society I. Changes in Directors and Senior Management During the Reporting Period During the period, the board completed re-election with new directors, Mr. Liu Dongjun resigned, and the supervisory board's powers transferred to the audit committee - The Company's fourth board of directors' term expired, and the fifth board of directors was elected, including 4 executive directors, 2 non-executive directors, and 3 independent non-executive directors[182] - New directors include Mr. Tao Fulun, Mr. Liu Changkui, and Ms. Hu Weixi[182] - The Company abolished the supervisory board, and its powers are exercised by the Board of Directors' Audit Committee[184] - Mr. Liu Dongjun resigned as an executive director of the Company on August 18, 2025[184] II. Profit Distribution or Capital Reserve to Share Capital Increase Plan The semi-annual profit distribution and capital reserve to share capital increase plans both propose no distribution or increase, with zero bonus shares, dividends, and capital increase - The Company's semi-annual profit distribution plan proposes no distribution or increase[184] - The number of bonus shares, dividends (including tax), and capital increase per 10 shares are all 0[184] III. Company Equity Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentive Measures and Their Impact The 2023 Restricted Stock Incentive Plan, approved by SASAC, completed initial and reserved grants to incentivize management and core personnel, with performance targets for unlocking - The Company's 2023 Restricted Stock Incentive Plan has received approval from the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, agreeing in principle to its implementation[185] - The initial grant date was June 18, 2024, granting 26.7696 million restricted shares to 237 incentive recipients at a grant price of 2.37 Yuan/share[186][191] - The reserved grant date was May 26, 2025, granting 2 million restricted shares to 21 incentive recipients at a grant price of 2.28 Yuan/share[187][214] - Restricted shares are unlocked in three tranches, with lock-up periods of 24 months, 36 months, and 48 months from the date of grant registration completion, and unlocking ratios of 40%, 30%, and 30% respectively[196][197][198] - Performance assessment targets for unlocking include Return on Net Assets (EOE), Compound Growth Rate of Net Profit Attributable to Parent Company Shareholders, and Economic Value Added Improvement (ΔEVA)[200][201] - The incentive plan has a maximum validity period of 72 months, from July 26, 2024 (date of initial grant registration completion) to July 26, 2028[215] V. Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work In H1 2025, CHALCO International invested 1.9993 million Yuan in rural revitalization, achieving phased results through anti-poverty monitoring, industrial cultivation, and livelihood improvements - In the first half, 1.9993 million Yuan was invested, including 1.9503 million Yuan for purchasing agricultural products for assistance[218] - Subsidiaries such as Guiyang Institute, Changsha Institute, and China Nonferrous Metal Industry Technology Co., Ltd. diligently carried out dynamic monitoring to prevent a return to poverty, ensuring zero new cases of re-impoverishment[218] - In industrial cultivation, Jinkeng Village achieved collective economic dividends for three consecutive years, and China Nonferrous Metal Industry Technology Co., Ltd. led 8 villagers to participate in a sheep farm project, increasing annual income by 30,000 Yuan per household[219] - In livelihood improvement, the Jinkeng Village drinking water renovation project was completed, and road, water conservancy, and high-standard farmland construction in Tianmashan Village were advanced[219] VI. Corporate Governance Code The company adheres to HKEX Listing Rules' Corporate Governance Code and Model Code, with a diverse board and an effective audit committee that reviewed interim results - The Company complies with all code provisions of Appendix C1 of the HKEX Listing Rules' Corporate Governance Code[220] - All directors confirmed strict compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[221] - The Company appointed three independent non-executive directors with appropriate professional qualifications[222] - The Audit Committee, composed of three directors with Mr. Xiao Zhixiong as chairman, has reviewed and confirmed the unaudited interim results for the first half of 2025[224][225] Section VI Significant Matters I. Fulfillment of Commitments The controlling shareholder and related parties strictly fulfilled commitments regarding independence, related party transactions, competition, and dilution mitigation measures - CHINALCO Group and its concerted parties, Luoyang Institute and Yunnan Aluminum International, committed to maintaining the listed company's independence, reducing and regulating related party transactions, and avoiding horizontal competition, all of which have been strictly fulfilled[226] - The Company's directors, senior management, and CHINALCO Group, among others, committed to measures to mitigate dilution of immediate returns, all of which have been strictly fulfilled[226] VII. Significant Litigation and Arbitration Matters During the reporting period, the company was involved in multiple significant litigation and arbitration cases, with some concluded and others remaining unresolved in court or arbitration Significant Litigation and Arbitration Cases Concluded During the Reporting Period (Unit: Ten Thousand Yuan, RMB) | Plaintiff (Applicant) | Defendant (Respondent) | Type of Litigation (Arbitration) | Amount Involved | Progress | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | :--- | | Kunming Haokun Concrete Manufacturing Co., Ltd. | Sixth Metallurgical, Sixth Metallurgical Yunnan Branch | Sales Contract Dispute | 6,262.79 | Concluded | Fully performed | | Duyun Economic Development Zone Tongda Construction Co., Ltd. | Duyun Industrial Agglomeration Zone Capital Operation Co., Ltd. etc. | Construction Project Contract Dispute | 9,929.75 | Concluded | Fully performed | | CHALCO International Engineering Equipment Co., Ltd. | Shandong Jialun Tire Co., Ltd. etc. | Sales Contract Dispute | 34,868.06 | Concluded | Case closed due to inability to execute | | Jiu Ye Construction Co., Ltd. | Shaanxi Weida Real Estate Development Co., Ltd. | Construction Project Contract Dispute | 26,113.6 | Concluded | Settled by asset-for-debt swap | Significant Unresolved Litigation and Arbitration Cases During the Reporting Period (Unit: Ten Thousand Yuan, RMB) | Plaintiff (Applicant) | Defendant (Respondent) | Type of Litigation (Arbitration) | Amount Involved | Progress | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | :--- | | Twelfth Metallurgical | Luohe Shengxu Real Estate Development Co., Ltd. etc. | Construction Project Contract Dispute | 6,474.67 | First instance ongoing | Undecided | | Twelfth Metallurgical | Xiangcheng State-owned Investment Resources Development Investment Management Co., Ltd. | Construction Project Contract Dispute | 12,484.16 | First instance ongoing | Undecided | | Twelfth Metallurgical | Guiyang Yuncheng Real Estate Co., Ltd. | Construction Project Contract Dispute | 5,887.03 | Arbitration ongoing | Undecided | | Jiu Ye | Zhengzhou Erqi District Housing and Urban-Rural Development Bureau | Construction Project Contract Dispute | 10,771 | First instance ongoing | Undecided | X. Significant Related Party Transactions The company engages in daily operational related party transactions with CHINALCO Group and its affiliates, including procurement, sales, leasing, and fund transfers, primarily at market rates and within approved limits Daily Operations Related Party Procurement and Sales (Unit: Thousand Yuan, RMB) | Related Party | Type of Related Party Transaction | Related Party Transaction Item | Related Party Transaction Amount | | :--- | :--- | :--- | :--- | | CHINALCO Group and its subsidiaries | Procurement of Goods | Procurement of main and auxiliary materials | 249,228 | | CHINALCO Group and its subsidiaries | Provision of Services | EPC General Contracting & Construction | 1,966,759 | | The Company's Associates | Provision of Services | EPC General Contracting & Construction | 500,198 | | CHINALCO Group and its subsidiaries | Sale of Goods | Equipment Manufacturing | 234,854 | | CHINALCO Group and its subsidiaries | Provision of Services | Design & Consulting | 120,208 | Related Party Creditor and Debtor Balances (Unit: Thousand Yuan, RMB) | Related Party | Related Party Relationship | Beginning of Period Balance (Funds Provided) | Amount Incurred (Funds Provided) | End of Period Balance (Funds Provided) | | :--- | :--- | :--- | :--- | :--- | | CHINALCO Finance Co., Ltd. | Wholly-owned subsidiary of parent company | 4,727,200 | -837,000 | 3,890,200 | Financial Business with Related Finance Company (Unit: Thousand Yuan, RMB) | Related Party | Business Type | Beginning of Period Balance (Deposits) | Amount Deposited (Deposits) | Amount Withdrawn (Deposits) | End of Period Balance (Deposits) | | :--- | :--- | :--- | :--- | :--- | :--- | | CHINALCO Finance Co., Ltd. | Deposit Business | 1,466,513 | - | 659,823 | 806,690 | | CHINALCO Finance Co., Ltd. | Loan Business | 4,727,200 | - | 837,000 | 3,890,200 | | CHINALCO Finance Co., Ltd. | Factoring Business | - | - | - | 0 | | CHINALCO Finance Co., Ltd. | Other Financing Business | - | - | - | 0 | XI. Significant Contracts and Their Performance The company primarily provided loan guarantees for PPP project companies, totaling 8.723 billion Yuan (97.58% of net assets), mostly to entities with over 70% debt-to-asset ratio Company External Guarantees (Excluding Guarantees to Subsidiaries) (Unit: Thousand Yuan, RMB) | Guarantor | Guaranteed Party | Guarantee Amount | Guarantee Start Date | Guarantee End Date | Has Guarantee Been Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | CHALCO International Engineering Co., Ltd. | Ningyong Expressway Co., Ltd. | 983,315 | 2019/10/31 | 2047/10/31 | No | | CHALCO International Engineering Co., Ltd. | Ningyong Expressway Co., Ltd. | 1,390,914 | 2022/3/31 | 2047/3/21 | No | | CHALCO International Engineering Co., Ltd. | Linyun Expressway Co., Ltd. | 590,214 | 2019/10/31 | 2047/10/31 | No | | CHALCO International Engineering Co., Ltd. | Linshuang Expressway Co., Ltd. | 673,503 | 2021/12/24 | 2046/12/24 | No | Company Total Guarantee Status (Including Guarantees to Subsidiaries) (Unit: Thousand Yuan, RMB) | Indicator | Amount | | :--- | :--- | | Total Guarantees (A+B) | 8,723,446 | | Total Guarantees as % of Company Net Assets | 97.58% | | Of which: Guarantees to Shareholders, Actual Controllers and their Related Parties (C) | 0 | | Debt Guarantees provided directly or indirectly to guaranteed parties with debt-to-asset ratio exceeding 70% (D) | 6,818,056 | | Amount of Total Guarantees exceeding 50% of Net Assets (E) | 4,253,669 | | Total of the above three guarantee amounts (C+D+E) | 11,071,725 | Section VII Share Changes and Shareholder Information I. Changes in Share Capital The company's total share capital increased by 2 million shares due to the 2023 Restricted Stock Incentive Plan's reserved grant, with a corresponding rise in restricted shares Share Change Table (Unit: Shares) | | Number Before This Change | Percentage Before This Change (%) | Increase/Decrease in This Change (+, -) Subtotal | Number After This Change | Percentage After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 26,769,600 | 0.90 | 2,000,000 | 28,769,600 | 0.96 | | 3. Other Domestic Shares | 26,769,600 | 0.90 | 2,000,000 | 28,769,600 | 0.96 | | Domestic Natural Persons' Shares | 26,769,600 | 0.90 | 2,000,000 | 28,769,600 | 0.96 | | II. Unrestricted Tradable Shares | 2,959,066,667 | 99.10 | ╱ | 2,959,066,667 | 99.04 | | III. Total Shares | 2,985,836,267 | 100.00 | 2,000,000 | 2,987,836,267 | 100.00 | - The Company granted 2 million restricted shares to 21 incentive recipients on May 26, 2025, and completed registration and transfer on June 13, 2025[253] Restricted Share Change Status (Unit: Shares) | Shareholder Name | Restricted Shares at Period-beginning | Restricted Shares Increased During Reporting Period | Restricted Shares at Period-end | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Company 2023 Restricted Stock Incentive Plan Reserved Grant Recipients | 26,769,600 | 2,000,000 | 28,769,600 | Restricted stock incentive plan lock-up period requirement | II. Shareholder Information As of June 30, 2025, total issued shares were 2,987,836,267 (86.63% A-shares, 13.37% H-shares), with 41,233 ordinary shareholders and CHINALCO Group holding 72.85% - As of June 30, 2025, the Company's total issued shares were 2,987,836,267 shares[258] Share Capital Structure as of June 30, 2025 | Share Class | Number of Shares | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | | A-shares | 2,588,360,267 | 86.63 | | Of which: Unrestricted Tradable Shares | 2,559,590,667 | 85.67 | | Restricted Shares | 28,769,600 | 0.96 | | H-shares | 399,476,000 | 13.37 | | Total | 2,987,836,267 | 100.00 | - As of the end of the reporting period, the total number of ordinary shareholders was 41,233[260] Top Ten Shareholders' Shareholding (Excluding Shares Lent Through Securities Lending) (Unit: Shares) | Full Name of Shareholder | Shares Held at Period-end | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Aluminum Corporation of China Limited | 2,176,758,534 | 72.85 | State-owned Legal Person | | HKSCC Nominees Limited | 399,476,000 | 13.37 | Overseas Legal Person | | Luoyang Nonferrous Metals Processing Design and Research Institute Co., Ltd. | 86,925,466 | 2.91 | State-owned Legal Person | | Aladdin Legend Technology Group Co., Ltd. | 5,600,000 | 0.19 | Other | | Hong Kong Securities Clearing Company Limited | 5,481,889 | 0.18 | Other | - CHINALCO Group, together with its subsidiaries, held a total of 2,283,179,000 shares in the Company, accounting for 76.42% of the Company's total share capital[263] III. Directors and Senior Management Information As of June 30, 2025, the company had 10,613 employees, predominantly engineering technical personnel, with a comprehensive compensation and training system, and some directors/senior management holding restricted shares - As of June 30, 2025, the Company had 10,613 employees on duty[270] Employees on Duty by Business Segment (June 30, 2025) | | Number of Employees on Duty | Percentage of Total (%) | | :--- | :--- | :--- | | Management Personnel | 3,219 | 30.33% | | Engineering Technical Personnel | 5,912 | 55.71% | | Production Operators | 1,223 | 11.52% | | Service and Other Personnel | 259 | 2.44% | | Total | 10,613 | 100.00% | - In the first half of 2025, the Company actually paid RMB 1,044 million in employee compensation[273] Directors and Chief Executive Officers' Shareholding (June 30, 2025) | Name | Position | Nature of Interest | Number of A-shares Held in the Company | Percentage of Total Share Capital as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Li Yihua | Chairman, Executive Director | Beneficial Owner | 267,400 shares | 0.01% | | Liu Jing | Executive Director, General Manager | Beneficial Owner | 267,400 shares | 0.01% | | Liu Dongjun | Executive Director | Beneficial Owner | 200,600 shares | 0.01% | | Tao Fulun | Executive Director | Beneficial Owner | 183,900 shares | 0.01% | Section VIII Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company issued 2.8 billion Yuan in perpetual medium-term notes and an additional 2 billion Yuan in August 2025, showing stable liquidity ratios and improved debt coverage Basic Information on Non-Financial Enterprise Debt Financing Instruments (Unit: Thousand Yuan, RMB) | Bond Name | Abbreviation | Code | Issue Date | Interest Commencement Date | Maturity Date | Bond Balance | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CHALCO International 2023 First Perpetual MTN | 23CHALCO MTN001 | 102382877 | 2023/10/27 | 2023/10/27 | 2025/10/27 | 1,500,000 | 4.17% | | CHALCO International 2023 Second Perpetual MTN | 23CHALCO MTN002 | 102383165 | 2023/11/24 | 2023/11/24 | 2025/11/24 | 1,300,000 | 3.77% | - The Company issued 2 billion Yuan of perpetual medium-term notes in the interbank market on August 4, 2025, with a term of 3+N and an interest rate of 2.25%[281] Key Accounting Data and Financial Indicators (Unit: Thousand Yuan, RMB) | Key Indicator | End of This Reporting Period | End of Prior Year | Year-on-year Change at Period-end (%) | | :--- | :--- | :--- | :--- | | Current Ratio | 1.32 | 1.30 | 0.02 | | Quick Ratio | 1.21 | 1.21 | 0.00 | | Asset-Liability Ratio (%) | 77.89 | 78.52 | -0.63 | | EBITDA to Total Debt Ratio | 0.02 | 0.01 | 100.00 | | Interest Coverage Ratio | 2.77 | 2.71 | 2.21 | | Cash Interest Coverage Ratio | -1.50 | -12.95 | N/A | | EBITDA Interest Coverage Ratio | 3.69 | 3.15 | 17.14 | | Loan Repayment Rate (%) | 100% | 100% | 0.00 | | Interest Payment Rate (%) | 100% | 100% | 0.00 | Section IX Financial Report Review Report Grant Thornton reviewed CHALCO International's H1 2025 unaudited financial statements, concluding they fairly reflect the company's financial position, operating results, and cash flows in all material respects - Grant Thornton (Special General Partnership) reviewed the Company's consolidated and company balance sheets as of June 30, 2025, and other financial statements[288] - The review results indicated that the financial statements were not prepared in accordance with enterprise accounting standards and did not fairly reflect the Company's financial position, operating results, and cash flows in all material respects[289] Consolidated Balance Sheet This section presents the consolidated balance sheets as of June 30, 2025, and December 31, 2024, detailing the company's assets, liabilities, and shareholders' equity Company Balance Sheet This section presents the company balance sheets as of June 30, 2025, and December 31, 2024, reflecting the parent company's assets, liabilities, and shareholders' equity Consolidated Income Statement This section presents the consolidated income statements for H1 2025 and H1 2024, detailing the company's operating revenue, costs, expenses, total profit, and net profit Company Income Statement This section presents the company income statements for H1 2025 and H1 2024, reflecting the parent company's revenue, costs, expenses, and net profit Consolidated Cash Flow Statement This section presents the consolidated cash flow statements for H1 2025 and H1 2024, detailing net cash flows from the company's operating, investing, and financing activities Company Cash Flow Statement This section presents the company cash flow statements for H1 2025 and H1 2024, reflecting net cash flows from the parent company's operating, investing, and financing activities Consolidated Statement of Changes in Equity This section presents the consolidated statements of changes in equity for H1 2025 and H1 2024, detailing changes in share capital, reserves, comprehensive income, and minority interests Company Statement of Changes in Equity This section presents the company statements of changes in equity for H1 2025 and H1 2024, reflecting changes in the parent company's share capital, reserves, and comprehensive income Notes to Financial Statements This section provides detailed notes to the financial statements, covering company overview, accounting policies, taxation, financial statement item details, equity in other entities, and other significant matters I. Company Overview CHALCO International, restructured in 2011 and listed on HKEX and SSE, focuses on engineering technology, construction, and equipment manufacturing, with CHINALCO Group as its ultimate controlling party - The Company was listed on the Main Board of the HKEX in July 2012 (stock code 2068) and on the Shanghai Stock Exchange on August 31, 2018 (stock code 601068)[323][324] - The Company's registered capital changed to RMB 2,987,836,267 Yuan, with Aluminum Corporation of China Limited as the ultimate controlling party[325][328] - The Company's business scope includes engineering technology and design consulting, engineering construction and installation, and equipment manufacturing[327] II. Basis of Preparation of Financial Statements These financial statements are prepared according to Enterprise Accounting Standards, presented on a going concern basis, with accounting based on the accrual method and historical cost measurement - The financial statements are prepared in accordance with Enterprise Accounting Standards and comply with the information disclosure requirements of the China Securities Regulatory Commission[330] - The financial statements are presented on a going concern basis, with accounting based on the accrual method, and, except for certain financial instruments, are measured at historical cost[331] III. Significant Accounting Policies and Accounting Estimates This section details the company's accounting policies and estimates, including accounting period, financial instruments, revenue recognition, and share-based payments - The Company's accounting period adopts the calendar year, with the reporting period from January 1, 2025, to June 30, 2025[333][334] - Financial instruments are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[360] - Revenue recognition principle is to recognize revenue when performance obligations are fulfilled and the customer obtains control of the related goods or services[455] - Revenue from construction contracts is recognized based on progress of performance; revenue from design services is recognized over time or upon acceptance based on contract nature; revenue from equipment manufacturing is recognized based on progress of performance or upon completion and delivery based on contract nature[459][460][461] - Share-based payments are classified as equity-settled and cash-settled, measured at the fair value of the equity instruments granted to employees[446][449] IV. Taxation This section discloses the company's main tax types and rates, including VAT and corporate income tax, with most subsidiaries benefiting from preferential rates or tax incentives Main Tax Types and Rates | Tax Type | Tax Base | Statutory Tax Rate % | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value Added | 3, 5, 6, 9, 13 | | Urban Maintenance and Construction Tax | Calculated based on total VAT actually paid | 1, 5, 7 | | Education Surcharge | Calculated based on total VAT actually paid | 2, 3 | | Corporate Income Tax | Taxable Income | 25 (except for overseas subsidiaries and preferential policies described in Note IV (II)) | - The Company and several subsidiaries (e.g., CHALCO International Engineering Co., Ltd., Shenyang Aluminum & Magnesium Engineering & Research Institute Co., Ltd., Guiyang Aluminum & Magnesium Design and Research Institute Co., Ltd.) apply a 15% preferential corporate income tax rate for high-tech enterprises[503][506][507][510][511][512] - Some subsidiaries apply small and micro-enterprise tax incentives, with 25% included in taxable income and a 20% tax rate for corporate income tax[513] - The Company has assessed the impact of the OECD "Pillar Two legislative model" and believes it did not have a significant impact on the financial position and operating results for January-June 2025[517] V. Notes to Consolidated Financial Statement Items This section provides detailed notes to major consolidated financial statement items, including monetary funds, receivables, contract assets, revenue, costs, and cash flows - As of June 30, 2025, restricted monetary funds totaled 634,151 thousand Yuan, mainly for letter of guarantee deposits, acceptance bill deposits, and frozen funds[520] - Accounts receivable period-end balance was 20,037,580 thousand Yuan, with bad debt provision of 3,860,700 thousand Yuan, of which 15.21% was individually assessed for bad debt provision[525] - Contract assets period-end balance was 8,177,931 thousand Yuan, with impairment provision of 1,387,602 thousand Yuan[557] - Operating revenue was 9,698,350 thousand Yuan, operating cost was 8,647,193 thousand Yuan, with principal business revenue accounting for 99.15%[630] - Net cash flow from operating activities was -199,300 thousand Yuan, a year-on-year decrease in outflow of 1,835,549 thousand Yuan[655] VI. Equity in Other Entities This section discloses the company's significant subsidiaries and equity interests in joint ventures/associates, noting two former subsidiaries were deregistered Important Components of Enterprise Group (Partial) | Subsidiary Name | Business Nature | Shareholding Ratio % (Direct) | Method of Acquisition | | :--- | :--- | :--- | :--- | | China Nonferrous Metal Industry Technology Co., Ltd. | Technology Development & Sales | 92.35 | Business combination under common control | | China Nonferrous Metal Industry Sixth Metallurgical Construction Co., Ltd. | Construction Engineering | 100.00 | Business combination under common control | | Changsha Nonferrous Metallurgical Design and Research Institute Co., Ltd. | Survey & Design | 64.90 | Business combination under common control | | Jiu Ye Construction Co., Ltd. | Engineering Construction | 73.17 | Business combination not under common control | | Shenyang Aluminum & Magnesium Engineering & Research Institute Co., Ltd. | Engineering Survey & Design | 60.22 | Investment establishment | Key Financial Information of Important Non-Wholly Owned Subsidiaries (June 30, 2025, Unit: Thousand Yuan, RMB) | Subsidiary Name | Current Assets | Non-current Assets | Total Assets | Current Liabilities | Non-current Liabilities | Total Liabilities | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Changsha Nonferrous Metallurgical Design and Research Institute Co., Ltd. | 3,722,189 | 950,995 | 4,673,184 | 2,144,382 | 135,790 | 2,280,172 | | Shenyang Aluminum & Magnesium Engineering & Research Institute Co., Ltd. | 2,404,576 | 282,484 | 2,687,060 | 1,272,732 | 58,676 | 1,331,408 | | Kunming Institute of Nonferrous Metals Engineering & Research Co., Ltd. | 1,766,033 | 172,372 | 1,938,405 | 790,959 | 76,695 | 867,654 | | Jiu Ye Construction Co., Ltd. | 8,062,420 | 1,239,105 | 9,301,525 | 6,652,918 | 868,746 | 7,521,664 | - During the reporting period, Guangxi Tongrui Investment Construction Co., Ltd. and Henan Sixth Metallurgical Trading Co., Ltd. were deregistered and no longer included in the consolidation scope[674] VII. Government Grants This section discloses government grants re