中国有色矿业(01258) - 2023 - 中期业绩

Financial Highlights This section provides a concise overview of the company's key financial performance indicators for the period Key Financial Indicators | Indicator | H1 2023 | H1 2022 (Restated) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,843.8 USD million | 2,206.9 USD million | -16.5% | | Net Profit | 264.0 USD million | 294.0 USD million | -10.2% | | Profit attributable to owners of the Company | 185.7 USD million | 196.7 USD million | -5.6% | | Basic earnings per share | 4.97 US cents | 5.26 US cents | -5.5% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[2] Financial Statements Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the company's revenues, expenses, and overall profitability for the interim period Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item | For the six months ended June 30, 2023 (USD thousand) | For the six months ended June 30, 2022 (USD thousand, Restated) | | :--- | :--- | :--- | | Revenue | 1,843,778 | 2,206,948 | | Cost of sales | (1,322,394) | (1,675,972) | | Gross profit | 521,384 | 530,976 | | Profit before tax | 381,819 | 431,521 | | Profit for the period | 263,963 | 293,966 | | Profit attributable to owners of the Company | 185,701 | 196,679 | | Basic earnings per share (US cents) | 4.97 | 5.26 | Interim Condensed Consolidated Statement of Financial Position This statement details the company's assets, liabilities, and equity at the end of the reporting period Interim Condensed Consolidated Statement of Financial Position | Item | June 30, 2023 (USD thousand) | December 31, 2022 (USD thousand, Restated) | | :--- | :--- | :--- | | Total assets | 4,087,203 | 4,022,659 | | Non-current assets | 1,719,648 | 1,776,581 | | Current assets | 2,367,555 | 2,246,078 | | Total liabilities | 1,594,130 | 1,679,075 | | Non-current liabilities | 478,628 | 555,262 | | Current liabilities | 1,115,502 | 1,123,813 | | Total equity | 2,493,073 | 2,343,584 | Interim Condensed Consolidated Statement of Cash Flows This statement outlines the cash inflows and outflows from operating, investing, and financing activities Interim Condensed Consolidated Statement of Cash Flows | Item | For the six months ended June 30, 2023 (USD thousand) | For the six months ended June 30, 2022 (USD thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 463,915 | 276,858 | | Net cash used in investing activities | (172,808) | (14,189) | | Net cash used in financing activities | (120,407) | (61,264) | | Net increase in cash and cash equivalents | 170,700 | 201,405 | | Cash and cash equivalents at end of period | 902,653 | 808,151 | Notes to the Financial Statements Accounting Policies and Changes in Disclosures This section explains the accounting principles applied and any significant changes in disclosure practices - Adoption of HKAS 12 (Amendments) narrowed the scope of initial recognition exemption, requiring recognition of deferred tax assets and liabilities for temporary differences arising from transactions like leases and decommissioning liabilities[11] - This accounting policy change resulted in an increase of USD 0.76 million to total equity as of January 1, 2022, and an increase of USD 0.06 million to profit and total comprehensive income for the first half of 2022[13][15] Segment Information This section provides a breakdown of the Group's performance across its distinct business segments Segment Performance (H1 2023) | Segment (H1 2023) | External Sales Revenue (USD thousand) | Segment Profit (USD thousand) | | :--- | :--- | :--- | | Hydrometallurgy | 580,247 | 158,373 | | Smelting | 1,263,531 | 117,100 | | Total | 1,843,778 | 275,473 | Segment Performance (H1 2022) | Segment (H1 2022) | External Sales Revenue (USD thousand) | Segment Profit (USD thousand) | | :--- | :--- | :--- | | Hydrometallurgy | 680,999 | 172,840 | | Smelting | 1,525,949 | 136,760 | | Total | 2,206,948 | 309,600 | Revenue This section details the sources of the Group's revenue by product/service and geographical market Revenue by Product/Service (H1 2023) | Product/Service (H1 2023) | Revenue (USD thousand) | | :--- | :--- | | Blister copper and anode copper | 1,111,628 | | Cathode copper | 570,350 | | Sulphuric acid | 114,764 | | Others | 47,036 | Revenue by Geographical Market (H1 2023) | Geographical Market (H1 2023) | Revenue (USD thousand) | | :--- | :--- | | Mainland China | 1,159,666 | | Hong Kong | 255,298 | | Switzerland | 289,533 | | Others | 139,281 | Management Discussion and Analysis Overview and Business Review This section provides a high-level review of the Group's operational performance and key business developments - The primary reasons for the Group's performance decline were decreased sales volume of blister copper and anode copper and fluctuations in international copper prices[38] Production Volume by Product (H1 2023) | Product | H1 2023 Production Volume (tonnes) | YoY Change (%) | | :--- | :--- | :--- | | Blister copper and anode copper | 144,833 | (12.2) | | Cathode copper | 71,648 | (0.4) | | Cobalt hydroxide containing cobalt | 745 | (11.8) | | Sulphuric acid | 487,670 | (6.7) | | Liquid sulfur dioxide | 6,591 | (51.7) | | Copper product processing services | 46,347 | 26.6 | Financial Review This section offers a detailed analysis of the Group's financial performance, liquidity, and capital Operating Results This subsection analyzes the factors influencing the Group's revenue, costs, and profitability - The 16.5% decrease in revenue was primarily due to lower sales volume and average selling price of blister copper and anode copper[59] - The 21.1% decrease in cost of sales was mainly due to lower sales volume of blister copper and anode copper, and a decline in raw material costs for purchased copper concentrate and oxidized ore in line with international copper price fluctuations[61] - Gross margin increased from 24.1% to 28.3%, primarily due to lower raw material costs for purchased copper concentrate and oxidized ore[62] Liquidity and Capital Resources This subsection discusses the Group's cash flow, working capital, and funding sources - Net cash generated from operating activities was USD 464 million, a year-on-year increase of USD 187 million, primarily due to decreased copper concentrate purchases during the reporting period[67] - Net cash used in investing activities was USD 173 million, a year-on-year increase of USD 159 million, mainly due to investments in property, plant, and equipment and increased fixed deposits[68] - Inventories decreased to USD 679 million at period-end, a reduction of USD 141 million from the beginning of the year, primarily due to a decrease in raw material inventory[71] Capital Expenditure This subsection outlines the Group's investments in property, plant, and equipment during the period Capital Expenditure by Entity (H1) | Item | H1 2023 (USD thousand) | H1 2022 (USD thousand) | | :--- | :--- | :--- | | CNMC Africa Mining | 16,068 | 22,217 | | CNMC Luanshya Copper Mines | 13,560 | 877 | | Chambishi Copper Smelter | 7,505 | 2,048 | | Others | 8,824 | 9,294 | | Total | 45,957 | 34,436 | Market Risk Disclosure This section identifies and explains the Group's exposure to various market risks and mitigation strategies - Commodity Price Risk: Primarily from fluctuations in copper market prices, controlled through copper futures trading contracts and provisional pricing agreements[73] - Foreign Exchange Risk: Primarily from exchange rate fluctuations of Zambian Kwacha, Congolese Franc, and RMB, hedged by locking contract and settlement currencies and accelerating tax refunds[74] - Interest Rate Risk: Primarily from financial assets and liabilities with floating interest rates, with no current interest rate hedging policy[75] Outlook This section provides management's perspective on future market conditions and the Group's strategic priorities - Management assesses that, absent widespread demand recession or systemic risk events globally, the downside for copper prices is limited, with volatile upward movement likely to be the norm for the foreseeable future[77] - Second-half strategic focus: continue stable production and profit, prioritize safety, environmental protection, compliant operations, sustainable development, and advance reforms to ensure completion of full-year production and operation tasks[77] Other Information Company Information and Shareholding Structure This section provides details on the company's registration, ultimate ownership, and major shareholders - The Company's ultimate controlling shareholder is China Nonferrous Metal Mining (Group) Co., Ltd. ('CNMC Group'), wholly owned by SASAC[78] Major Shareholders | Major Shareholder | Capacity/Nature of Interest | Shareholding Percentage | | :--- | :--- | :--- | | CNMC Mining Development | Registered Owner | 69.54% | | CNMC Group | Interest in Controlled Corporation | 69.54% | Corporate Governance This section describes the company's adherence to corporate governance principles and practices - The Company has established an Audit Committee, comprising one non-executive Director and two independent non-executive Directors, which has reviewed these interim results[85] - The Company has adopted a Model Code for Securities Transactions by Directors, and all Directors complied with it during the reporting period[86]