中国大冶有色金属(00661) - 2025 - 中期业绩

Performance Summary The Group's unaudited condensed consolidated results for the six months ended June 30, 2025, show decreased revenue and gross profit, a shift from profit to loss, and a basic loss per share of RMB 0.06 cents | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Revenue | 29,306.1 | 32,825.2 | | Gross Profit | 514.2 | 821.6 | | Profit/(Loss) for the period | (5.8) | 147.8 | | (Loss)/Profit for the period attributable to owners of the Company | (9.9) | 77.4 | | Basic (Loss)/Profit per share | RMB (0.06) cents | RMB 0.43 cents | - For the six months ended June 30, 2025, revenue decreased by 10.72% to RMB 29,306,100,000 compared to the same period in 2024[4] - For the six months ended June 30, 2025, gross profit decreased by 37.41% to RMB 514,215,000 compared to the same period in 2024[4] Condensed Consolidated Financial Statements This section presents the Group's condensed consolidated financial statements for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This section details the Group's financial performance for the six months ended June 30, 2025, showing a shift from profit to loss compared to the prior year | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 29,306,100 | 32,825,163 | | Cost of sales | (28,791,885) | (32,003,601) | | Gross profit | 514,215 | 821,562 | | Other income | 31,727 | 20,831 | | Selling expenses | (24,811) | (16,191) | | Administrative expenses | (305,687) | (335,015) | | Other operating expenses | (17,637) | (22,819) | | Net reversal of impairment losses under expected credit loss model | 1,087 | 698 | | Other gains and losses | 40,042 | 25,464 | | Finance costs | (235,240) | (257,744) | | Share of loss of associates | (674) | (450) | | Profit before tax | 3,022 | 236,336 | | Income tax expense | (8,786) | (88,576) | | (Loss)/Profit and total comprehensive (expense)/income for the period | (5,764) | 147,760 | | (Loss)/Profit and total comprehensive (expense)/income for the period attributable to owners of the Company | (9,900) | 77,442 | | Non-controlling interests | 4,136 | 70,318 | | (Loss)/Profit per share – Basic and diluted | RMB (0.06) cents | RMB 0.43 cents | Condensed Consolidated Statement of Financial Position This section presents the Group's assets, liabilities, and equity as of June 30, 2025, showing an increase in net current assets but a slight decrease in net assets compared to December 31, 2024 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 8,498,402 | 8,790,387 | | Right-of-use assets | 866,951 | 855,593 | | Exploration and evaluation assets | 5,280 | 5,280 | | Intangible assets | 500,583 | 533,803 | | Interests in associates | 7,407 | 8,081 | | Deferred tax assets | 154,667 | 157,765 | | Other deposits | 75,171 | 75,196 | | Total non-current assets | 10,108,461 | 10,426,105 | | Current assets | | | | Inventories | 14,933,637 | 12,215,866 | | Trade and bills receivables | 61,280 | 85,587 | | Other deposits | 632,674 | 531,260 | | Prepayments and other receivables | 604,826 | 1,013,953 | | Derivative financial instruments | 27,577 | 63,551 | | Structured bank deposits | 500,000 | – | | Restricted bank deposits | 3,762 | 3,219 | | Cash, deposits and bank balances | 1,878,029 | 1,532,031 | | Total current assets | 18,641,785 | 15,445,467 | | Current liabilities | | | | Trade payables | 4,658,976 | 2,456,859 | | Other payables and accrued expenses | 1,268,855 | 1,481,762 | | Contract liabilities | 138,922 | 218,834 | | Bank and other borrowings | 7,551,798 | 8,130,983 | | Lease liabilities | 15,028 | 5,779 | | Derivative financial instruments | 24,390 | 20,211 | | Early retirement obligations | 5,208 | 10,650 | | Current income tax liabilities | 474 | 2,864 | | Total current liabilities | 13,663,651 | 12,327,942 | | Net current assets | 4,978,134 | 3,117,525 | | Total assets less current liabilities | 15,086,595 | 13,543,630 | | Non-current liabilities | | | | Other payables | 380,252 | 375,039 | | Bank and other borrowings | 8,406,701 | 6,899,371 | | Lease liabilities | 132,640 | 117,980 | | Bills payable | 1,244,012 | 1,223,012 | | Provision for mine reclamation, restoration and dismantling | 101,043 | 99,901 | | Deferred income | 114,797 | 115,413 | | Early retirement obligations | 26,400 | 26,400 | | Total non-current liabilities | 10,405,845 | 8,857,116 | | Net assets | 4,680,750 | 4,686,514 | | Capital and reserves | | | | Share capital | 727,893 | 727,893 | | Share premium and reserves | 2,345,818 | 2,355,718 | | Equity attributable to owners of the Company | 3,073,711 | 3,083,611 | | Non-controlling interests | 1,607,039 | 1,602,903 | | Total equity | 4,680,750 | 4,686,514 | Notes to the Condensed Consolidated Financial Statements This section provides explanatory notes to the condensed consolidated financial statements 1. General Information This section introduces China Daye Non-Ferrous Metals Mining Limited's basic information, including its registration, listing, main businesses, and holding companies - The Company's principal activities are investment holding, and its subsidiaries are principally engaged in ore mining and processing and sales/trading of metal products[8] - The functional currency of the Company is Renminbi[9] 2. Basis of Preparation This section explains that the condensed consolidated financial statements are prepared in accordance with HKAS 34 and Listing Rules, on a going concern basis, with sufficient working capital for the next 12 months - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Listing Rules[10] - The directors believe the Group will have sufficient working capital to fund its normal operations for the next twelve months, thus prepared on a going concern basis[10] 3. Principal Accounting Policies This section briefly states that the financial statements are prepared on a historical cost basis, with no significant impact from the first-time application of revised HKFRS accounting standards - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value where applicable[11] - The application of revised HKFRS accounting standards had no significant impact on the Group's financial performance, position, and/or disclosures for the current and prior periods[12] 4. Revenue This section analyzes the Group's revenue by product, service, and geographical location, showing mainland China as the primary source Revenue by Product and Service Category | Product and Service Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of goods | 29,296,097 | 32,806,937 | | Provision of services | 10,003 | 18,226 | | Total Revenue | 29,306,100 | 32,825,163 | Sales of Goods Breakdown | Sales of Goods Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cathode copper | 23,047,740 | 27,736,350 | | Other copper products | 330,701 | 243,112 | | Gold and other gold products | 3,024,809 | 1,534,245 | | Silver and other silver products | 2,128,495 | 2,853,446 | | Sulfuric acid and sulfur concentrate | 569,082 | 163,003 | | Iron ore | 85,814 | 105,630 | | Others | 109,456 | 171,151 | | Total Sales of Goods | 29,296,097 | 32,806,937 | Revenue by Customer Location | Customer Location | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 25,934,568 | 32,275,614 | | Hong Kong | 728,466 | 196,893 | | Others | 2,643,066 | 352,656 | | Total Revenue | 29,306,100 | 32,825,163 | 5. Segment Information This section states that no operating segment information is presented due to the lack of further specific financial data, with all non-current assets located in mainland China - The Company's chief operating decision-maker reviews revenue by individual product and service categories, and no further specific financial information is provided, thus no operating segment information is presented[14] - All of the Group's non-current assets (excluding financial instruments and deferred tax assets) are located in mainland China by geographical location[15] 6. Other Income This section lists the Group's other income sources for the six months ended June 30, 2025, primarily including interest income, recognized deferred income, and government grants, with government grants showing a significant year-on-year increase | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income from banks | 337 | 564 | | Interest income from CNMC Finance Co., Ltd. | 5,248 | 4,005 | | Recognized deferred income | 7,991 | 7,717 | | Other government grants | 17,128 | 7,998 | | Others | 1,023 | 547 | | Total | 31,727 | 20,831 | - Government grants for the six months ended June 30, 2025, mainly for domestic and foreign trade incentive funds, increased compared to the same period last year[17] 7. Net Reversal of Impairment Losses under Expected Credit Loss Model This section discloses the Group's net reversal of impairment losses for trade and other receivables under the expected credit loss model, with the net reversal amount increasing year-on-year | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 987 | 899 | | Other receivables | 100 | (201) | | Total | 1,087 | 698 | 8. Other Gains and Losses This section details the Group's other gains and losses for the period, primarily including gains on disposal of right-of-use assets, write-off of property, plant and equipment, and net exchange gains, with net exchange gains being the largest contributor | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss on disposal of property, plant and equipment | – | (12,430) | | Gain on disposal of right-of-use assets | 1,914 | – | | Write-off of property, plant and equipment | (3,555) | (110) | | Net exchange gains | 41,683 | 38,004 | | Total | 40,042 | 25,464 | 9. Finance Costs This section discloses the Group's finance costs for the six months ended June 30, 2025, primarily interest on bank and other borrowings, with total finance costs decreasing by 8.73% year-on-year due to lower bank loan interest rates | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 191,847 | 212,504 | | Interest on loans from Daye Non-Ferrous Metals Group Holding Co., Ltd. and its subsidiaries | 14,023 | 14,300 | | Interest on loans from finance companies | 3,920 | 1,549 | | Interest on loans from a fellow subsidiary | – | 4,311 | | Interest on lease liabilities | 3,308 | 3,129 | | Interest on bills payable | 21,000 | 21,116 | | Reversal of interest on provision for mine reclamation, restoration and dismantling | 1,142 | 835 | | Total | 235,240 | 257,744 | - Finance costs decreased by 8.73% compared to the previous period, primarily due to lower bank loan interest rates year-on-year[57] 10. Income Tax Expense This section details the Group's income tax expense for the period, including PRC corporate income tax and deferred tax, with total income tax expense significantly decreasing year-on-year | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC corporate income tax | 5,688 | 66,019 | | Deferred tax | 3,098 | 22,557 | | Total | 8,786 | 88,576 | 11. (Loss)/Profit for the Period This section provides the main components of the loss/profit for the period, including depreciation and amortization, capitalized inventory, employee benefit expenses, and a detailed breakdown of cost of sales Total Depreciation and Amortization | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 343,194 | 380,536 | | Depreciation of right-of-use assets | 19,929 | 16,908 | | Amortization of intangible assets | 35,706 | 35,465 | | Total Depreciation and Amortization | 398,829 | 432,909 | Employee Benefit Expenses | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and benefits | 434,031 | 403,875 | | Contributions to retirement benefit schemes | 51,105 | 53,047 | | Total Staff Costs | 485,136 | 456,922 | Composition of Cost of Sales | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories recognized as expense | 28,778,386 | 31,994,754 | | Direct operating expenses incurred for services provided | 13,499 | 8,847 | | Total | 28,791,885 | 32,003,601 | 12. Dividends This section states that no dividends were paid or proposed to the Company's shareholders during the current interim period and the prior interim period - No dividends were paid or proposed to the Company's shareholders during the current interim period and the prior interim period[23] 13. (Loss)/Profit Per Share This section provides the data required to calculate basic and diluted loss/profit per share, showing a basic loss per share of RMB (0.06) cents (Loss)/Profit Per Share Calculation Data | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the Company used for calculating basic and diluted (loss)/profit per share | (9,900) | 77,442 | | Weighted average number of ordinary shares for calculating basic and diluted (loss)/profit per share (thousand shares) | 17,895,580 | 17,895,580 | 14. Trade and Bills Receivables This section discloses the Group's trade and bills receivables as of June 30, 2025, and their aging analysis, showing a decrease in total trade receivables, with receivables within one year accounting for the largest proportion Total Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 100,531 | 126,637 | | Less: Provision for credit losses | (41,214) | (42,382) | | Net Trade Receivables | 59,317 | 84,255 | | Bills receivables | 1,963 | 1,332 | | Total Trade and Bills Receivables | 61,280 | 85,587 | Aging Analysis of Trade and Bills Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 35,733 | 66,286 | | Over 1 year but within 2 years | 7,491 | 1,245 | | Over 2 years | 18,056 | 18,056 | | Total | 61,280 | 85,587 | 15. Trade Payables This section discloses the Group's aging analysis of trade payables as of June 30, 2025, showing a significant increase in payables within one year, reflecting changes in working capital management or procurement activities Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 4,640,482 | 2,440,717 | | Over 1 year but within 2 years | 15,191 | 12,958 | | Over 2 years but within 3 years | 1,313 | 1,215 | | Over 3 years | 1,990 | 1,969 | | Total | 4,658,976 | 2,456,859 | Management Discussion and Analysis This section provides management's discussion and analysis of the Group's financial condition and results of operations Review of First Half Year Operations In the first half of 2025, the company overcame challenges to exceed expectations in core indicators, maintaining a "stable yet progressive, quality and efficiency improving" operational trend - In the first half of the year, the company overcame challenges such as tight raw material supply and continuously declining copper concentrate processing fees, exceeding expectations in core indicators like main product output, resource assurance, cost control, and operating efficiency[32] 2025 First Half Year Main Product Output and Year-on-Year Change | Product | 2025 H1 Output | YoY Change | | :--- | :--- | :--- | | Mine Copper | Approx. 9,700 tonnes | Increase approx. 17.44% | | Cathode Copper | Approx. 343,200 tonnes | Decrease approx. 18.57% | | Precious Metal Products | Approx. 311.23 tonnes | Decrease approx. 0.87% | | Chemical Products | Approx. 1,355,600 tonnes | Increase approx. 13.36% | | Iron Concentrate | Approx. 109,300 tonnes | Increase approx. 27.00% | | Molybdenum Concentrate | Approx. 19.90 tonnes | Decrease approx. 10.12% | Seizing Opportunities for Stable and Increased Production, Deeply Activating Development Momentum The company seized opportunities from high market prices for key products, boosting production to achieve stable and increased output, with several products exceeding planned targets - Seized opportunities from high market prices for copper, gold, silver, and sulfuric acid products, boosting production to achieve stable and increased output[33] - Gold, silver, sulfuric acid, mine copper, and iron concentrate production exceeded planned targets[33] Addressing Losses and Overcoming Difficulties with Both Symptoms and Root Causes, Continuously Improving Operational Quality The Group significantly improved operational quality by enhancing efficiency, strengthening process control, and implementing cost reduction measures, leading to increased crude copper output and improved recovery rates - Smelters and Yangxin Hongsheng Copper Co., Ltd. ("Yangxin Hongsheng") leveraged their respective advantages and collaborated to organize high-load production, improving overall operational efficiency, with crude copper output increasing by 9% year-on-year[34] - Through strengthened process control, the comprehensive copper recovery rate at both plants increased by 0.18 percentage points compared to the previous year[34] - Tonglüshan Mine, Fengshan Copper Mine, and Tongshankou Mine strengthened control over the "three rates" in mining, reducing unit production costs by 16%, 5%, and 8% respectively year-on-year[34] - Yangxin Hongsheng's unit variable costs for cathode copper and sulfuric acid decreased by 17% and 20% respectively against budget targets; the smelter's unit variable cost for sulfuric acid decreased by 6% against budget targets; and the precious metals branch's unit variable cost for anode mud decreased by 10% against budget targets[34] Dual Focus on Increasing Reserves and Production, Effectively Enhancing Resource Assurance The company simultaneously focused on releasing mine capacity and increasing exploration and reserves, effectively enhancing mineral resource assurance through large-panel mechanized mining, optimizing mining methods, and deep exploration - Tonglüshan Mine implemented large-panel mechanized mining, increasing mining capacity to 400 tonnes per day, and completed the main shaft hoisting system upgrade, increasing hoisting capacity by 10% compared to design values[35] - In the first half of the year, a total of 16,811 meters of production exploration was completed, adding 470,000 tonnes of copper ore, achieving 117% of the annual plan[36] - Implemented deep exploration on the northern edge of Fengshan Copper Mine, predicting an additional 2.84 million tonnes of copper ore and 25,300 tonnes of copper metal; advanced peripheral exploration of Xinjiang Sarike Copper Mine, estimating an additional 3.31 million tonnes of copper ore and 12,500 tonnes of copper metal in the southern ore belt[36] Technology-Driven Breakthrough in New Materials, Accelerating Cultivation of Innovation Momentum The Group made progress in technological innovation, including completing kilogram-scale verification tests for 5N grade gold and silver, determining the preparation process for 3N selenium, and launching trial operation of the Tongshankou Mine integrated control platform - Completed kilogram-scale verification tests for 5N grade gold and silver, successfully establishing the preparation process for high-purity gold and silver products[37] - Determined the preparation process for 3N selenium, completed the design of the 3N selenium preparation project, and is currently undertaking on-site construction[37] - The Tongshankou Mine integrated control platform was launched for trial operation, and pilot construction of intelligent equipment operation and maintenance systems was carried out at the headquarters and some plants/mines[37] - Commissioned the nation's first roller-cutter rock tunneling machine at Tongshankou Mine, filling a gap in China's non-full-face hard rock tunneling equipment field[37] Solidifying the Bottom Line of Safety and Compliance, Continuously Strengthening the Foundation for Development The company achieved "zero" fatalities in production safety and zero occupational diseases, with a 50% reduction in injury accidents, and met environmental compliance targets, while continuously improving its legal compliance management system - Achieved "zero" fatalities in production safety, zero occupational diseases, and a 50% reduction in injury accidents year-on-year in the first half[38] - Achieved targets for sudden environmental incidents and environmental penalties in the first half, with major pollutant emissions around 30% of annual control targets[38] - Conducted 79 compliance inspections in the first half, rectifying 19 non-compliant issues in procurement, sales, and other segments[39] - The company faces challenges such as the need to enhance resource assurance, an unstable foundation for loss reduction (affected by continuously low copper concentrate processing fees), and delays in project investment plan implementation[39] Second Half Year Work Plan Facing complex international situations and market pressures, the company will strive to win the battle against losses and exceed loss reduction targets, guided by high-quality development principles - In the second half of the year, the international situation is complex and volatile, the global copper concentrate supply gap is expanding, import processing fees remain low, and there is increased likelihood of downward pressure on main product prices, making overall operational challenges significantly greater than in the first half[40] - The company will deeply understand the high-quality development principle of "effective operations, growth potential, and development value," striving to exceed loss reduction targets[40] Winning the Battle Against Losses and Overcoming Difficulties, Ensuring Achievement of Annual Loss Reduction Targets In the second half, the company will ensure the achievement of annual loss reduction targets through stable and increased production, deep excavation of cost reduction and efficiency improvement, precise judgment to seize opportunities, and activating existing assets to release value - Mining units should seize the favorable opportunity of high metal prices, strengthen exploration and prospecting, coordinate permit processing, and stably increase production to exceed planned output targets[40] - Smelting units should ensure balanced supply, production, and sales, strengthen preventive inspections and operational maintenance of key and critical equipment, ensuring high operating and load rates[40] - Consolidate the positive trend of cost reduction, further tightening and implementing cost control responsibilities across all personnel, elements, and processes, focusing on optimizing quota standards for new technologies and equipment, precise energy consumption control, and reducing repair costs[41] - Both plants should dynamically calculate the breakeven point for smelting efficiency, striving for overproduction and quick sales at high prices, and vigorously push for the implementation of decision-making projects to ensure early production and benefits from project investments[41] - Strengthen policy tracking and research, actively seek various subsidies and special policy funds to be implemented and realized, strictly control and reduce the scale of outsourced business, and improve internal resource coordination efficiency and effectiveness[42] Deepening Actions to Increase Reserves and Production, Solidifying the Foundation of Resource Assurance The company will accelerate the implementation of key resource projects to maximize mine capacity and comprehensively enhance resource assurance capabilities through maintenance optimization, equipment maintenance, mining method improvements, and expanding raw material acquisition channels - Accelerate the implementation of resource projects such as deep exploration of Tonglüshan copper-iron mine below -800 meters, expansion of Sarike copper mine's northern section, and supplementary detailed exploration of Fengshan copper mine below -550 meters[43] - Tonglüshan Mine will coordinate maintenance work, accelerate underground infrastructure progress, and vigorously carry out recovery of residual ore resources in pillars[43] - Expand resource acquisition channels, intensify domestic mine contract fulfillment and market development, stabilize the procurement volume of gold-bearing high-sulfur concentrate for Yangxin Hongsheng, and strive to add 1-2 local mining enterprises and anode plate suppliers, increasing the proportion of domestic mine procurement for smelters to over 22%[44] Accelerating Technology Empowerment for New Materials, Cultivating and Strengthening Development Momentum The company will lead with technological innovation to drive industrial transformation and upgrading towards high-end, intelligent, and green development, accelerating new material projects, building intelligent factory benchmarks, and strengthening innovation incentive mechanisms to attract and cultivate highly skilled talents - The precious metals branch should accelerate technical research on precious metal recycling from copper anode mud treatment systems, speed up the construction and commissioning of the 3N selenium production line, aiming to achieve an output value of RMB 10 million within the year[45] - Advance the construction of Yangxin Hongsheng's "dark factory," completing the application of slag selection and batching process scenarios within the year; accelerate the progress of the smelter's intelligent transformation phase two, completing the upgrade and iteration of the smart operation center within the year[45] - Fully implement the "Science and Technology Achievement Award Management Measures," explore new talent introduction models such as headhunting recommendations, and recruit mid-to-high-level professional and technical talents[46] Deepening Reform Efforts, Activating Internal Development Momentum The company will activate internal development momentum by improving incentive and restraint mechanisms, deepening the "three systems" reform, promoting rigid application of assessment results, improving management personnel mechanisms, and strengthening position management - Deepen the implementation of new operational responsibility systems for all levels of management, emphasizing performance contributions, strengthening incentives and restraints, and reasonably widening income gaps[47] - Deepen the "three systems" reform, promote rigid application of assessment results, improve management personnel mechanisms; further strengthen position management, implement differentiated staffing, and employ multiple measures to select outstanding talents[47] Strengthening Risk Prevention and Control Management, Strictly Adhering to the Bottom Line of Compliant Operations The company will strictly implement regulatory requirements and internal control systems, building a robust risk defense line with rigid constraints and enhancing prevention and control effectiveness with precise management, providing solid assurance for the company's high-quality development - Prevent market operational risks: optimize the export layout of cathode copper and sulfuric acid, strictly control risks related to futures hedging, and Yangxin Hongsheng should continue to work hard to obtain processing trade qualifications[48] - Prevent safety and environmental risks: closely monitor key areas such as tailings dams, open-pit slopes, smelting, construction, equipment safety, and fire protection, strictly investigate and rectify safety hazards, and promote dynamic elimination of hazards[48] - Prevent compliance management risks: deepen the construction of a full-level compliance system, establish a normalized working mechanism for dynamic updates of laws and regulations and identification and interpretation of compliance obligations[48] - Prevent quality management risks: improve a market-oriented quality demand system, solidify the foundation of standardized management, strengthen the application of measurement data, and enhance closed-loop management, responsibility implementation, and target control capabilities[49] - Strengthen organizational assurance: consolidate responsibility chains, strengthen assessment incentives, and build synergistic efforts to ensure high-quality completion of annual targets and tasks[49] Safety and Environmental Protection Work Status This section reports on the Group's safety and environmental protection initiatives and performance Rectification of Central Environmental Protection Inspection All rectification measures from the company's central environmental protection inspection were completed and verified by the end of 2024, receiving high praise from the Ministry of Ecology and Environment during an on-site review in February 2025 - All rectification measures from the company's central environmental protection inspection were completed and verified by the end of 2024[50] - In February 2025, the Ministry of Ecology and Environment conducted an on-site review of the company's rectification of typical environmental inspection cases, giving high praise[50] Safety and Environmental Protection Work Status in the First Half of 2025 In the first half of the year, the company continuously strengthened its safety system and standardization, achieving zero production safety fatalities and zero sudden environmental incidents, with all safety and environmental binding indicators met - In the first half of the year, the company continuously strengthened its safety system and standardization, achieving zero production safety fatalities and zero sudden environmental incidents, and received no environmental administrative penalties[51] - Consolidated primary responsibility chains, with the company signing safety production target responsibility letters with each production unit, revising the headquarters department's safety and environmental responsibility清单, and incorporating all-staff safety and environmental responsibilities into monthly performance assessments[52] - Focused on fundamental improvements, revised 8 systems including the "Management Measures for Investigation and Rectification of Major Accident Hazards," reported and received over 236 accident hazards in the first half, and completed the closed-loop rectification of 28 major accident hazards[53] - Intelligent mine construction and technology-driven safety and environmental protection achieved phased results, with 111 key intelligent construction projects, 67 of which have been completed, with a cumulative investment of RMB 146 million[54] - Basic management reached a new level, completing the underground mining safety permit application for Tongshankou Mine 40 days ahead of schedule, fully implementing the three-level safety officer system in mines, with 27 three-level safety officers and 79 machine-level safety officers[55] - Focused on cultural leadership, conducted 4,208 safety warning education trainings, 4,533 online trainings on resumption of work and production, with 98% participation rate in all-staff hazard identification[56] Financial Review This section summarizes the Group's main changes in revenue, gross profit, and finance costs for the first half of 2025 and their reasons Key Financial Indicators Change | Indicator | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | Approx. RMB 29,306,100,000 | Approx. RMB 32,825,163,000 | Decrease 10.72% | | Gross Profit | Approx. RMB 514,215,000 | Approx. RMB 821,562,000 | Decrease 37.41% | | Finance Costs | Approx. RMB 235,240,000 | Approx. RMB 257,744,000 | Decrease 8.73% | - Revenue decreased primarily due to the concentrated and accelerated release of smelting capacity domestically and internationally, coupled with tight copper concentrate supply, leading to continuously low smelting processing fees, and reduced product output[57] - Gross profit decreased primarily due to reduced revenue and narrowed profit margins[57] - Finance expenses decreased primarily due to lower bank loan interest rates year-on-year[57] Other Information This section provides other relevant information about the Group's operations and governance Details of Material Acquisitions and Disposals During the period ended June 30, 2025, the Group had no material investments, acquisitions, or disposals - During the period ended June 30, 2025, the Group had no material investments[58] Performance and Prospects of Material Investments In the first half of 2025, the company primarily invested in non-ferrous metal resource development, mine digitalization and intelligent construction, optimization of smelting production processes, and research and industrialization of high-value-added products, aiming to enhance mineral resource assurance, total factor productivity, and product added value - In the first half of 2025, the company primarily invested in non-ferrous metal resource development, mine digitalization and intelligent construction, optimization of smelting production processes, and research and industrialization of high-value-added products[59] - Investment objectives include enhancing mineral resource assurance, total factor productivity, and inherent safety levels of mines, promoting the transformation of traditional industries towards the mid-to-high end of the industrial chain, and extending the precious metal industrial chain and researching and developing new materials[59] Capital Structure, Liquidity and Financial Resources As of June 30, 2025, the Group's restricted bank deposits, cash, and bank balances were approximately RMB 1.882 billion, with a current ratio of 1.36 and a gearing ratio of 503.25%, an increase from the end of 2024, mainly due to increased capital tied up in inventories as Yangxin Hongsheng resumed production Liquidity and Financial Resources Indicators | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Restricted bank deposits, cash and bank balances | Approx. RMB 1,881,791,000 | Approx. RMB 1,535,250,000 | | Current assets | Approx. RMB 18,641,785,000 | Approx. RMB 15,445,467,000 | | Current liabilities | Approx. RMB 13,663,651,000 | Approx. RMB 12,327,942,000 | | Current ratio | 1.36 | 1.25 | | Net debt | Approx. RMB 15,468,388,000 | Approx. RMB 14,841,875,000 | | Equity attributable to owners of the Company | Approx. RMB 3,073,711,000 | Approx. RMB 3,083,611,000 | | Gearing ratio | 503.25% | 481.31% | - The increase in gearing ratio was mainly due to the impact of increased capital tied up in inventories as Yangxin Hongsheng resumed production at the beginning of the year[62] Borrowings As of June 30, 2025, the Group's total debt was approximately RMB 17.203 billion, with most borrowings denominated in RMB and bearing fixed interest rates, and no derivative financial instruments used to hedge interest rate risk Total Borrowings and Composition | Item | June 30, 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total debt (including non-current and current bank and other borrowings and bills payable) | Approx. 17,202,511 | Approx. 16,253,366 | | Bank and other borrowings (due within one year) | Approx. 7,551,798 | Approx. 8,130,983 | | Bank and other borrowings (due after one year) | Approx. 8,406,701 | Approx. 6,899,371 | - Most of the Group's bank and other borrowings are denominated in Renminbi and bear fixed interest rates[63] - The Group did not use derivative financial instruments to hedge its interest rate risk during the period[63] Employees and Remuneration Policy As of June 30, 2025, the Group had 5,177 employees, with total staff costs of approximately RMB 485 million, and remuneration reviewed periodically based on market terms, individual qualifications, and performance Employee Count and Costs | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of employees | 5,177 | 5,551 | | Total staff costs | Approx. RMB 485,136,000 | Approx. RMB 456,922,000 | - The remuneration package is generally determined based on market terms, individual qualifications, and performance, and is reviewed periodically based on individual merit and other market factors[64] Foreign Exchange Risk The Group faces foreign exchange risk primarily involving the US dollar due to international procurements and borrowings, managed by regularly reviewing net foreign exchange exposure and potentially using derivative financial instruments - The Group faces foreign exchange risk primarily involving the US dollar, as certain international procurements and borrowings are denominated in US dollars[65] - The Group manages foreign exchange risk by regularly reviewing its net foreign exchange exposure and may enter into derivative financial instruments such as currency forward contracts, currency swap contracts, and currency option contracts[65] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[66] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[67] Pledge of Assets As of June 30, 2025, other deposits of approximately RMB 633 million were placed with futures exchanges and certain financial institutions as collateral for commodity derivative contracts Pledged Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other deposits (as collateral for commodity derivative contracts) | Approx. 632,674 | Approx. 531,260 | Purchase, Sale or Redemption of Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries redeemed, purchased, or sold any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries redeemed, purchased, or sold any of the Company's listed securities[69] Interim Dividend The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[70] Share Capital As of June 30, 2025, the Company's total issued and fully paid ordinary shares were 17,895,579,706 shares, with a par value of HKD 0.05 per share, and total issued share capital of approximately RMB 728 million Share Capital Details | Item | June 30, 2025 | | :--- | :--- | | Total issued and fully paid ordinary shares | 17,895,579,706 shares | | Par value per share | HKD 0.05 | | Total issued share capital | Approx. RMB 727,893,000 | Audit Committee and Independent Auditor Review The Company's Audit Committee, comprising three independent non-executive directors, oversees financial reporting and internal controls, and the independent auditor, BDO Limited, has reviewed the interim financial statements - The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting process and internal controls[72] - The independent auditor, BDO Limited, has reviewed the Group's condensed consolidated interim financial statements for the six months ended June 30, 2025[72] Standard Code for Securities Transactions by Directors The Company has adopted the Model Code for directors' securities transactions, and all directors confirmed compliance for the six months ended June 30, 2025 - The Company has adopted the Model Code set out in Appendix 10 of the Listing Rules as the standard for directors' securities transactions[73] - All directors have confirmed their compliance with the required standards of the Model Code for the six months ended June 30, 2025[73] Compliance with Corporate Governance Code Throughout the six months ended June 30, 2025, the Company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules - Throughout the six months ended June 30, 2025, the Company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules[74] Continuing Connected Transactions and Revision of Annual Caps for Continuing Connected Transactions This section discloses revisions to annual caps for several continuing connected transactions between the company and China Nonferrous Metals Mining Group and the parent group, primarily involving service provision and product sales, due to business growth and one-off large orders - The annual cap for the China Nonferrous Metals Mining Services Framework Agreement for the year ending December 31, 2025, has been revised to RMB 34,500,000, due to an expected decrease in transaction amounts[75] - The annual cap for the China Nonferrous Metals Mining Group Sales Framework Agreement for the year ending December 31, 2025, has been revised to RMB 11,000,000, due to a one-off cathode copper order exceeding the original cap[78] - The annual cap for the Parent Group Services Framework Agreement for the year ending December 31, 2025, has been revised to RMB 10,000,000, considering the Group's business growth and undertaking of new businesses[80] Publication of this Performance Announcement and Interim Report This section provides information on the publication channels for this performance announcement and interim report, including the websites of The Stock Exchange of Hong Kong Limited and the Company - This performance announcement is published on the website of The Stock Exchange of Hong Kong Limited www.hkexnews.hk and the Company's website www.hk661.com[83](index=83&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders[83] Acknowledgements The Company Chairman expresses sincere gratitude to all colleagues, management, and staff for their contributions to the Group's continuous development, and to shareholders, suppliers, customers, and business partners for their unwavering support - The Company Chairman expresses sincere gratitude to all colleagues, management, staff, shareholders, suppliers, customers, and business partners[84] Board of Directors This section lists the members of the Board of Directors as of the announcement date (August 29, 2025), including three executive directors and three independent non-executive directors - As of August 29, 2025, the Board of Directors includes three executive directors: Mr. Xiao Shuxin, Mr. Zhang Jinzhong, and Ms. Zhang Aijun; and three independent non-executive directors: Ms. Liu Fang, Mr. Wang Qihong, and Mr. Kong Hua[85]