2021-08-22 16:00Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 25% in the first half of 2021[5]. - The company's operating revenue for the first half of 2021 was CNY 84.82 billion, an increase of 81.45% compared to the same period last year[13]. - Net profit attributable to shareholders was CNY 2.41 billion, representing a 138.99% increase year-on-year[13]. - The basic earnings per share for the period was CNY 0.112, up 138.30% from CNY 0.047 in the previous year[14]. - The weighted average return on equity increased by 3.76 percentage points to 6.20%[14]. - The company achieved a main business revenue of 84.56 billion RMB, an increase of 38.00 billion RMB (or 81.63%) compared to the same period last year[67]. - The main business gross profit reached 8.98 billion RMB, a significant increase of 8.33 billion RMB (or 1,280.92%) year-on-year[67]. - The net profit attributable to shareholders for the first half of 2021 reached approximately RMB 1.40 billion, representing a year-on-year increase of 175.92%[155]. Market Outlook - The company provided a positive outlook for the second half of 2021, projecting a revenue growth of 20%[5]. - New product launches are expected to contribute an additional 10% to overall revenue in the upcoming quarters[5]. - The company expects demand for cobalt intermediates to rise in the second half of 2021 due to improved terminal demand and global alloy consumption recovery[45]. - The company expects domestic tungsten market demand to reach new highs due to infrastructure investments and high-tech industry upgrades[62]. - The niobium market is anticipated to maintain high prices due to tight supply and recovering demand in the automotive and mobile phone sectors[63]. - The copper market is projected to have sufficient supply, but risks remain from potential production interruptions in Chile[66]. Production and Operations - The company has completed a strategic acquisition that is expected to enhance its production capacity by 25%[5]. - The company’s production guidance for 2021 includes 18.73-22.89 thousand tons of copper and cobalt from the Congo, with actual production of 98,149 tons in the first half of 2021[27]. - The company has successfully implemented a 5G smart mining system, significantly enhancing production efficiency and safety[24]. - The company has launched the 10K project in the Congo, which has officially commenced operations, and the Australian copper expansion project has reached full production capacity[29]. - The company achieved a cash cost reduction of over 360 million RMB across its mining operations, with specific reductions of approximately 30 million USD in the Congo (Copper-Cobalt) segment and 8 million USD in the Brazil (Niobium-Phosphate) segment[34]. Research and Development - Research and development investments increased by 18%, focusing on innovative technologies in the mining sector[5]. - Research and development expenses increased by 42.16%, totaling 643.65 million RMB compared to 452.76 million RMB in the previous year[68]. - The company has received multiple awards for its technological innovations, including first prizes in national and provincial competitions for its mining technologies[24]. Sustainability and Environmental Commitment - The management highlighted a commitment to sustainability, aiming for a 40% reduction in carbon emissions by 2025[5]. - The company has joined various sustainable development initiatives, enhancing its commitment to responsible mining practices[19]. - The company has committed to transitioning to cleaner energy sources, such as coal-to-gas initiatives, and has implemented resource recycling measures to enhance sustainability[123]. - The company achieved zero exceedance of emission standards for particulate matter as of the end of June[112]. - The company reported a total of 0 tons of COD and ammonia nitrogen in wastewater, indicating effective recycling measures[113]. - The company has implemented effective measures to prevent wastewater discharge, maintaining a total of 0 tons for COD and ammonia nitrogen[114]. Financial Position and Investments - The total assets at the end of the reporting period were CNY 127.01 billion, a 3.73% increase from the end of the previous year[13]. - The company maintains a strong cash position with a cash balance of 19.4 billion RMB and unused credit facilities exceeding 120 billion RMB from over 60 banks[26]. - The company has invested USD 25.1 billion in the TFM copper-cobalt mixed ore project, which is expected to increase annual copper production by 200,000 tons and cobalt production by 17,000 tons after reaching full capacity[82]. - The company plans to expand its investment and acquisition efforts in high-quality projects related to the new energy industry and resources that are in short supply domestically[88]. Corporate Governance and Shareholder Relations - The company has no non-operational fund occupation by controlling shareholders or related parties[3]. - There were no violations of decision-making procedures regarding external guarantees[3]. - The company’s board received a resignation from the secretary of the board, Yue Yuanbin, on July 30, 2021, due to personal reasons[106]. - The company initiated an employee stock ownership plan, acquiring 48,513,287 shares at a total cost of approximately RMB 193.83 million, representing 0.2246% of the total share capital[109]. - The company’s stock repurchase plan aims to enhance shareholder value and support employee incentives[109]. Legal and Compliance - The company believes that ongoing legal disputes in its Congo and Brazil operations will not have a significant adverse impact on its financial condition or cash flow[134]. - The company has no significant legal obstacles affecting its production and operation[133]. - The company has a good integrity status, with no outstanding court judgments or significant overdue debts[135]. Market and Commodity Prices - The average price of molybdenum concentrate in the domestic market for the first half of 2021 was RMB 1,760 per ton, a year-on-year increase of 14.43%[36]. - The average price of copper cathodes in the international market reached $9,092 per ton in the first half of 2021, a year-on-year increase of 65.25%[40]. - The average price of cobalt metal in the first half of 2021 was $21.02 per pound, a year-on-year increase of 34.14%[41]. - The average price of phosphoric acid in the first half of 2021 was $607 per ton, a year-on-year increase of 94.55%[41]. - The average price of black tungsten concentrate was RMB 1,452.38 per ton, an increase of 12.78% year-on-year; the average price of APT was RMB 141,900 per ton, up 10.34% year-on-year[49]. Employee and Community Engagement - The company has actively participated in poverty alleviation efforts, coordinating over 2 million RMB in funding for various projects to support rural revitalization[125]. - The company is committed to establishing a multi-layered compensation incentive system, including employee stock ownership plans, to enhance talent retention and motivation[91].