Section 1 Definitions [1.1 Definitions of Common Terms](index=4&type=section&id=1.1%20Definitions%20of%20Common%20Terms) This section defines common terms and abbreviations used in the report, primarily covering the company itself, its domestic and overseas subsidiaries, and related entities, laying the foundation for understanding the report content - Company/JCHX/JCHX Mining refers to JCHX Mining Management Co., Ltd[12](index=12&type=chunk) - The report lists numerous domestic and overseas subsidiaries and affiliates, such as Yunnan JCHX, JCHX Design Institute, JCHX Zambia, JCHX Congo, JCHX Serbia, covering the company's global business presence[12](index=12&type=chunk)[13](index=13&type=chunk) Section 2 Company Profile and Key Financial Indicators [2.1 Company Information](index=7&type=section&id=2.1%20Company%20Information) This section outlines the company's basic identification information, including its full Chinese and English names, abbreviations, and legal representative - Company Chinese Name: 金诚信矿业管理股份有限公司, Abbreviation: 金诚信[16](index=16&type=chunk) - Company English Name: JCHX MINING MANAGEMENT CO.,LTD., Abbreviation: JCHX[16](index=16&type=chunk) - Legal Representative: Wang Qinghai[16](index=16&type=chunk) [2.2 Contact Persons and Information](index=7&type=section&id=2.2%20Contact%20Persons%20and%20Information) This section provides contact information for the company's Board Secretary and Securities Affairs Representative for investor communication - Board Secretary: Wu Bangfu, Securities Affairs Representative: Wang Lidong[17](index=17&type=chunk) - Contact Phone/Fax: 010-82561878, Email: jchxsl@jchxmc.com[17](index=17&type=chunk) [2.3 Overview of Changes in Basic Information](index=7&type=section&id=2.3%20Overview%20of%20Changes%20in%20Basic%20Information) This section states that the company's registered address, office address, and website remained unchanged during the reporting period - Company Registered Address: Room 101, Building 1, No. 28 Yuanyuan West Road, Miyun Economic Development Zone, Beijing[18](index=18&type=chunk) - Company Office Address: Building 3, No. 3 Yuren South Road, Fengtai District, Beijing[18](index=18&type=chunk) - No changes in the company's basic information during the reporting period[18](index=18&type=chunk) [2.4 Overview of Changes in Information Disclosure and Document Custody Locations](index=7&type=section&id=2.4%20Overview%20of%20Changes%20in%20Information%20Disclosure%20and%20Document%20Custody%20Locations) This section discloses the company's designated newspapers and website for information disclosure, confirming no changes during the reporting period - Designated newspapers for information disclosure: "China Securities Journal", "Shanghai Securities News", "Securities Daily", "Securities Times"[19](index=19&type=chunk) - Website for semi-annual report publication: www.sse.com.cn[19](index=19&type=chunk) - No changes in information disclosure and document custody locations during the reporting period[19](index=19&type=chunk) [2.5 Company Stock Profile](index=7&type=section&id=2.5%20Company%20Stock%20Profile) This section provides basic information about the company's stock, including the listing exchange, stock abbreviation, and code - Stock Type: A-share, Listing Exchange: Shanghai Stock Exchange[20](index=20&type=chunk) - Stock Abbreviation: JCHX, Stock Code: 603979[20](index=20&type=chunk) [2.6 Key Accounting Data and Financial Indicators](index=8&type=section&id=2.6%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, the company's operating revenue increased by **47.82%**, and net profit attributable to shareholders increased by **81.29%**, driven by higher production and sales in mining resource development and cost control. Net cash flow from operating activities significantly grew by **255.08%** 2025 Semi-Annual Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) Amount (Yuan) | Prior Year Period Amount (Yuan) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 6,316,025,397.70 | 4,272,753,906.14 | 47.82 | | Total Profit | 1,557,383,813.56 | 807,181,029.09 | 92.94 | | Net Profit Attributable to Shareholders of Listed Company | 1,110,910,265.44 | 612,774,566.24 | 81.29 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 1,087,680,753.47 | 609,296,080.98 | 78.51 | | Net Cash Flow from Operating Activities | 1,725,885,887.16 | 486,052,469.62 | 255.08 | | Net Assets Attributable to Shareholders of Listed Company (Period-End) | 9,887,921,901.99 | 8,984,300,857.46 | 10.06 | | Total Assets (Period-End) | 18,413,855,810.04 | 16,980,646,682.64 | 8.44 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 1.78 | 1.00 | 78.00 | | Diluted Earnings Per Share (Yuan/Share) | 1.69 | 0.95 | 77.89 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (Yuan/Share) | 1.74 | 1.00 | 74.00 | | Weighted Average Return on Net Assets (%) | 11.65 | 8.05 | Increased by 3.60 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 11.41 | 8.01 | Increased by 3.40 percentage points | - Operating revenue increased by **47.82%**, and net profit attributable to shareholders increased by **81.29%**, primarily due to increased production and sales of mineral products in the mining resource development business and the company's continuous cost reduction and control measures[24](index=24&type=chunk) [2.7 Non-Recurring Gains and Losses Items and Amounts](index=9&type=section&id=2.7%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section lists the detailed composition and total amount of the company's non-recurring gains and losses during the reporting period, totaling **23.2295 million yuan** - Disposal gains and losses of non-current assets: **14.1578 million yuan**[26](index=26&type=chunk) - Government grants recognized in current profit and loss: **7.4405 million yuan**[26](index=26&type=chunk) - Total non-recurring gains and losses: **23.2295 million yuan**[27](index=27&type=chunk) Section 3 Management Discussion and Analysis [3.1 Industry and Main Business Overview During the Reporting Period](index=10&type=section&id=3.1%20Industry%20and%20Main%20Business%20Overview%20During%20the%20Reporting%20Period) The company adheres to a "mining services" and "resource development" dual-driven business model, actively transforming into a diversified mining group. Performance is primarily driven by mining service volume, mineral product sales, and cost control - The company's business model is "mining services" and "resource development" dual-driven, promoting a comprehensive transformation from a single mining service enterprise to a diversified mining group[29](index=29&type=chunk) - The company's current performance is primarily driven by mining service business volume, mineral product sales, and control over procurement and other management costs[43](index=43&type=chunk) [3.1.1 Mining Services](index=10&type=section&id=3.1.1%20Mining%20Services) The company holds a leading position in mining engineering construction and mining operations management, possessing multiple advanced qualifications and extensive international experience and brand influence in Africa and Eurasia - The company's mining services business covers integrated services such as mining engineering construction, mining operations management, mining design and technology R&D, and mining machinery equipment manufacturing[30](index=30&type=chunk) - Possesses Grade I qualification for mining engineering general contracting, Grade II qualification for tunnel engineering specialized contracting, and Grade I qualification for blasting operations[31](index=31&type=chunk) - The company is one of the earliest Chinese mining service providers to "go global," with operations primarily in Africa and Eurasia, serving mines in Zambia, DRC, Ghana, Botswana, Serbia, and Laos[32](index=32&type=chunk) [3.1.2 Mining Resource Development](index=11&type=section&id=3.1.2%20Mining%20Resource%20Development) The company's proprietary mining resource projects primarily involve copper and phosphate rock, having acquired control of Liangchaha Phosphate Mine, Dikulushi Copper Mine, Lonshi Copper Mine, and Lubambe Copper Mine, and holding an equity stake in San Matias Copper-Gold-Silver Mine, with significant resource reserves - The company's proprietary mining resource projects primarily involve copper and phosphate rock products[33](index=33&type=chunk) - In H1 2025, the average LME copper price was approximately **9,410 USD/ton**, showing an upward trend; phosphate rock prices remained stable at a high level, with 30% grade ore in major producing areas long staying at **900–1100 yuan/ton**[33](index=33&type=chunk)[34](index=34&type=chunk) Company's Total Mineral Resources (Equity Resources) | Copper Metal (10,000 tons) | Silver Metal (tons) | Gold Metal (tons) | Phosphate Rock (10,000 tons, 31.00% grade) | | :--- | :--- | :--- | :--- | | 328 | 179 | 19 | 2,123 | - Guizhou Liangchaha Phosphate Mine: The company holds **90%** equity, with mining rights for **23.59 million tons** of phosphate rock; the southern mining area officially commenced production in H2 2023[36](index=36&type=chunk) - DRC Lonshi Copper Mine: The company holds **95%** equity; the western mining, beneficiation, and smelting integrated project commenced production in Q4 2023, with an annual copper metal output of approximately **40,000 tons** at full capacity; the eastern area, once fully operational, will bring the total annual output to approximately **100,000 tons** of copper metal[37](index=37&type=chunk)[38](index=38&type=chunk) - Colombia San Matias Copper-Gold-Silver Mine: The company currently directly holds **50%** equity in CMH; the Environmental Impact Assessment (EIA) report is still awaiting approval, posing uncertainties[40](index=40&type=chunk)[41](index=41&type=chunk) [3.2 Discussion and Analysis of Operations](index=14&type=section&id=3.2%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company deepened its "mining services" and "resource development" dual-driven strategy, achieving operating revenue of **6,316.0254 million yuan**, a **47.82%** year-on-year increase; net profit attributable to shareholders was **1,110.9103 million yuan**, an **81.29%** year-on-year increase. Overseas main business revenue accounted for **78.53%** - Achieved operating revenue of **6,316.0254 million yuan**, a **47.82%** year-on-year increase[44](index=44&type=chunk) - Net profit attributable to shareholders was **1,110.9103 million yuan**, an **81.29%** year-on-year increase[44](index=44&type=chunk) - Overseas main business revenue accounted for **78.53%**[44](index=44&type=chunk) [3.2.1 Mining Services Segment](index=15&type=section&id=3.2.1%20Mining%20Services%20Segment) The mining services segment generated revenue of **3,322.4628 million yuan** in H1, with overseas mining services accounting for **63.74%**. New and renewed contracts totaled approximately **7.1 billion yuan**, expanding into Zambian and Botswanan markets. Operations at DRC's Kamoa-Kakula Copper Mine were temporarily suspended due to seismic activity but have gradually recovered to about **70%** of previous levels - Mining services business revenue was **3,322.4628 million yuan**, accounting for **52.60%** of total operating revenue during the reporting period[45](index=45&type=chunk) - Overseas mining services achieved operating revenue of **2,117.6752 million yuan** in H1, accounting for **63.74%** of mining services operating revenue[45](index=45&type=chunk) - In H1, new and renewed mining services contracts totaled approximately **7.1 billion yuan**, including the first undertaking of the Mufulira mine construction project in Zambia and underground mining operations at the Khoemacau Copper Mine's fifth mining area in Botswana[45](index=45&type=chunk) - Underground mining operations at DRC's Kamoa-Kakula Copper Mine were temporarily suspended due to seismic activity, but mining volume has gradually recovered to about **70%** of pre-suspension levels[46](index=46&type=chunk) [3.2.2 Proprietary Mining Resource Projects](index=15&type=section&id=3.2.2%20Proprietary%20Mining%20Resource%20Projects) Proprietary mining resource projects showed good development momentum, achieving resource sales revenue of **2,912.1138 million yuan** in H1, a **238.03%** year-on-year increase, accounting for **46.11%** of operating revenue. Both copper metal and phosphate rock production and sales saw significant growth - Achieved resource sales revenue of **2,912.1138 million yuan** in H1, a **238.03%** year-on-year increase, accounting for **46.11%** of total operating revenue during the reporting period[47](index=47&type=chunk) H1 Copper Metal and Phosphate Rock Production and Sales | Product | Unit | 2025 Jan-Jun Production Volume | 2025 Jan-Jun Sales Volume | 2024 Jan-Jun Production Volume | 2024 Jan-Jun Sales Volume | | :--- | :--- | :--- | :--- | :--- | :--- | | Copper Metal (Equivalent) | tons | 39,442.09 | 43,912.62 | 13,212.47 | 12,631.26 | | Phosphate Rock | tons | 174,299.87 | 169,287.34 | 163,698.35 | 167,674.14 | [3.2.3 Scientific and Technological Innovation Achievements](index=15&type=section&id=3.2.3%20Scientific%20and%20Technological%20Innovation%20Achievements) The company achieved significant scientific and technological innovation results in H1, leading the compilation of national standards, participating in major national research projects, and having several experts selected for ministerial expert databases - The company, as the lead drafting unit, initiated the compilation of the national standard "Safety Technical Specification for Ultra-Deep Shaft Construction in Metal and Non-Metal Mines"[49](index=49&type=chunk) - Successfully participated in the research of a major national project, "Key Technologies for Large-Scale Enhanced Caving and Efficient Low-Dilution Mining in Underground Metal Mines"[49](index=49&type=chunk) - **8 experts** were selected for the Ministry of Natural Resources expert database, and **2 experts** were selected for the Ministry of Human Resources and Social Security postdoctoral fund review expert database[49](index=49&type=chunk) [3.3 Analysis of Core Competencies During the Reporting Period](index=16&type=section&id=3.3%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) During the reporting period, the company's core competencies in technology, management, deep resource development capabilities, and integrated equipment maintenance model remained stable, earning widespread recognition from clients - The company's core competencies remained unchanged, primarily reflected in its scientific research and technological advantages, deep resource development capabilities, and integrated equipment and maintenance operation model[50](index=50&type=chunk) [3.4 Major Operating Conditions During the Reporting Period](index=16&type=section&id=3.4%20Major%20Operating%20Conditions%20During%20the%20Reporting%20Period) This section provides a detailed analysis of the company's financial statement item changes, business type, and profit composition changes during the reporting period, along with an in-depth analysis of asset and liability conditions, including overseas assets and restricted assets [3.4.1 Main Business Analysis](index=16&type=section&id=3.4.1%20Main%20Business%20Analysis) The company's operating revenue increased by **47.82%**, primarily due to increased production efficiency in the resource development business. The decline in gross profit for mining services was mainly affected by internal management after the acquisition of Lubambe Copper Mine, the initial phase of Terra Mining's open-pit mining services, and seismic activity at Kamoa-Kakula Copper Mine Analysis Table of Changes in Financial Statement Items | Item | Current Period Amount (10,000 Yuan) | Prior Year Period Amount (10,000 Yuan) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 631,602.54 | 427,275.39 | 47.82 | | Operating Cost | 414,520.73 | 296,749.59 | 39.69 | | Taxes and Surcharges | 21,423.67 | 9,053.22 | 136.64 | | Net Cash Flow from Operating Activities | 172,588.59 | 48,605.25 | 255.08 | | Net Cash Flow from Financing Activities | -21,655.24 | 5,379.73 | -502.53 | - Operating revenue increased by **47.82%**, mainly due to increased production efficiency in the company's resource development business during the current period[52](index=52&type=chunk) - Net cash flow from operating activities increased by **255.08%**, mainly due to the growth in operating revenue and good collection of mineral product sales and mining services receivables[52](index=52&type=chunk) Profit Composition by Main Business Type | Main Business Type | Current Period Operating Revenue (10,000 Yuan) | Current Period Operating Cost (10,000 Yuan) | Current Period Gross Profit (10,000 Yuan) | Current Period Gross Profit Change Ratio from Prior Year Period | | :--- | :--- | :--- | :--- | :--- | | Mining Services | 332,246.28 | 255,513.46 | 76,732.82 | -17.26% | | Mining Resource Development | 291,211.38 | 152,370.33 | 138,841.05 | 276.83% | | Total | 623,457.66 | 407,883.79 | 215,573.87 | 66.35% | - The decline in gross profit for mining services was mainly due to internal management after the acquisition of Lubambe Copper Mine, the initial phase of Terra Mining's open-pit mining services, and the impact of seismic activity at Kamoa-Kakula Copper Mine[56](index=56&type=chunk) [3.4.2 Analysis of Assets and Liabilities](index=17&type=section&id=3.4.2%20Analysis%20of%20Assets%20and%20Liabilities) The company's total assets at period-end were **18.414 billion yuan**, an **8.44%** increase from the end of the previous year. Monetary funds, financial assets held for trading, prepayments, and construction in progress all showed significant growth, reflecting business expansion and increased investment. Overseas assets accounted for **69.66%** of total assets Changes in Assets and Liabilities | Project Name | Current Period-End Amount (Yuan) | Prior Year-End Amount (Yuan) | Change Ratio from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Monetary Funds | 3,790,678,516.49 | 2,615,933,682.66 | 44.91 | | Financial Assets Held for Trading | 4,367,375.58 | 1,761,845.79 | 147.89 | | Accounts Receivable Financing | 172,767,258.63 | 322,661,178.65 | -46.46 | | Prepayments | 253,039,824.14 | 102,232,905.00 | 147.51 | | Construction in Progress | 333,206,529.10 | 135,924,646.88 | 145.14 | | Contract Liabilities | 346,904,071.68 | 79,185,637.46 | 338.09 | | Other Current Liabilities | 120,342,086.13 | 35,861,236.86 | 235.58 | | Long-Term Borrowings | 1,365,919,847.65 | 729,991,681.55 | 87.11 | | Lease Liabilities | 97,573,280.13 | 68,175,912.54 | 43.12 | - The increase in monetary funds was mainly due to the growth in operating revenue, strengthened collection of engineering payments and mineral product sales, and unused new long-term financing funds[59](index=59&type=chunk) - The increase in construction in progress was mainly due to investments in the Lonshi Copper Mine East Area mining and beneficiation project, Liangchaha Phosphate Mine North Area infrastructure project, and Lubambe Copper Mine technical upgrades[59](index=59&type=chunk) - Overseas assets totaled **12.827 billion yuan**, accounting for **69.66%** of total assets[61](index=61&type=chunk) Major Asset Restrictions as of the End of the Reporting Period | Project | Period-End Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 111,716,451.41 | Deposits/Funds in Transit | | Fixed Assets | 46,415,323.13 | Mortgage | | Intangible Assets | 298,350,296.88 | Mortgage | [3.4.3 Analysis of Investment Status](index=20&type=section&id=3.4.3%20Analysis%20of%20Investment%20Status) During the reporting period, the company's long-term equity investments increased by **24.19%**, primarily due to the final payment for the acquisition of CMH equity. The company continued to advance major non-equity investment projects such as the Liangchaha Phosphate Mine North Area, Lubambe Copper Mine technical upgrades, and Lonshi Copper Mine East Area mining and beneficiation project - Long-term equity investments totaled **530.426 million yuan**, an increase of **24.19%** from the previous year, mainly due to the final payment of **20 million USD** for the acquisition of **50%** equity in CMH, a subsidiary of Cordoba Minerals[67](index=67&type=chunk)[68](index=68&type=chunk) - Cumulative investment in the construction of Liangchaha Phosphate Mine North Area was **595.7661 million yuan**, with new construction investment of **21.151 million yuan** in the current reporting period[69](index=69&type=chunk) - Cumulative investment in technical upgrades for Lubambe Copper Mine mining and beneficiation project was **54.8898 million USD**[71](index=71&type=chunk) - The Lonshi Copper Mine East Area mining and beneficiation project is planned to invest **751.344 million USD**, with an infrastructure construction period of **4.5 years**, and preparatory work was carried out during the reporting period[72](index=72&type=chunk) Financial Assets Measured at Fair Value | Asset Category | Period-End Amount (Yuan) | Period-Beginning Amount (Yuan) | Fair Value Change Gain/Loss for Current Period (Yuan) | | :--- | :--- | :--- | :--- | | Private Equity Funds | 15,526,999.80 | 15,509,572.26 | 17,427.54 | | Stocks - 600117 | 50,554,904.96 | 50,780,596.50 | -225,691.54 | | Convertible Bonds | 49,601,213.73 | 49,212,396.91 | 592,830.15 | | Stocks - WA8 | 4,367,375.58 | 1,761,845.79 | 2,537,237.25 | - The company holds **8,884,391 shares** of Warriedar Resources Limited, held by Terra Mining Australia, which are classified as financial assets measured at fair value[77](index=77&type=chunk) [3.4.4 Analysis of Major Holding and Participating Companies](index=25&type=section&id=3.4.4%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, the company established two new subsidiaries, JCHX Botswana and Jinghang Resources, both in the preparatory stage, with no significant impact on overall performance yet. The company's major subsidiaries are operating well, with some, like Sabwe Company, contributing significantly to net profit - During the reporting period, JCHX Botswana and Jinghang Resources were newly established, both in the initial preparatory stage, and have not yet commenced substantive business operations, thus having no impact on the company's overall production, operations, and performance[82](index=82&type=chunk) Financial Data of Major Subsidiaries (10,000 Yuan) | Company Name | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | JCHX Zambia | 166,885.45 | 125,868.47 | 33,086.94 | 3,072.60 | 853.85 | | Yuancheng Technology | 129,687.80 | 32,860.74 | 268,378.55 | 6,257.08 | 4,635.98 | | JCHX International | 164,685.04 | 102,985.31 | 43,963.85 | 2,758.83 | 1,985.24 | | Zhiyong Industrial | 139,894.13 | 32,046.94 | 54,467.21 | 8,942.91 | 5,720.41 | | Liangchaha Mining | 62,840.65 | 42,386.82 | 13,380.34 | 2,573.72 | 1,917.78 | | Jinjing Mining | 55,206.18 | 5,021.28 | 22,833.07 | 4,692.09 | 3,211.76 | | Sabwe Company | 412,098.59 | 42,640.42 | 172,320.19 | 62,422.93 | 38,813.49 | | Zhaoyuan Mining | 315,492.01 | -910.78 | 57,582.82 | 3,254.40 | 2,655.63 | | Terra Mining Company | 67,775.65 | -7,354.05 | 41,116.22 | -7,419.01 | -7,068.78 | [3.5 Other Disclosure Matters](index=27&type=section&id=3.5%20Other%20Disclosure%20Matters) This section details the macroeconomic, industry cyclical, customer concentration, accounts receivable, overseas operations, safety and environmental, funding, talent competition, and force majeure risks faced by the company, and summarizes the progress of the company's "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan, including focusing on main business, innovation-driven, strengthening corporate governance, management upgrades, and emphasizing shareholder returns [3.5.1 Potential Risks](index=27&type=section&id=3.5.1%20Potential%20Risks) The company faces multiple risks including macroeconomic fluctuations, resource price volatility, high customer concentration, large accounts receivable, dispersed operating locations, overseas market operations, safety and environmental, quality, mineral resource estimation, funding, talent competition, and force majeure - Macroeconomic fluctuations may suppress demand growth in the mining services industry[85](index=85&type=chunk) - Fluctuations in copper, phosphate rock, and other resource prices will affect the company's profitability[86](index=86&type=chunk) - The top five customers' revenue accounted for **54.11%** of current operating revenue, indicating customer concentration risk[87](index=87&type=chunk) - Accounts receivable at the end of the reporting period were substantial, accounting for **12.64%** of total assets, posing bad debt risk[90](index=90&type=chunk) - Overseas assets totaled **12.827 billion yuan**, accounting for **69.66%** of total assets, facing overseas market operating risks such as political, economic, labor, fiscal, and exchange rate changes[93](index=93&type=chunk) - Mining services and resource development inherently involve high risks, potentially leading to casualties and property losses[94](index=94&type=chunk)[95](index=95&type=chunk) - Proprietary mining resource projects require significant capital investment, posing risks of insufficient funding or increased financing costs[98](index=98&type=chunk) - The company will strengthen risk identification and control, enhance market development, improve safety and environmental management, accelerate cash collection, introduce digital management, optimize financing structure, and strengthen talent development to mitigate risks[102](index=102&type=chunk) [3.5.2 Other Disclosure Matters](index=30&type=section&id=3.5.2%20Other%20Disclosure%20Matters) The company actively implemented its "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan, achieving record-high performance in H1. Through technological innovation, improved corporate governance, management upgrades, and enhanced investor communication, the company continuously increased its value and shareholder returns - The company deeply promoted its "mining services" and "resource development" dual-driven development plan, with H1 2025 operating revenue of **6,316.0254 million yuan**, a **47.82%** year-on-year increase; net profit attributable to parent company was **1,110.9103 million yuan**, an **81.29%** year-on-year increase[103](index=103&type=chunk) - Significant scientific and technological innovation achievements, including leading the compilation of national standards, participating in major national research projects, and independently developing unmanned shovel-loader systems[106](index=106&type=chunk) - Strengthened corporate governance, revised the "Articles of Association," abolished the Supervisory Board, and enhanced the functions of the Board's Audit and Risk Management Committee[107](index=107&type=chunk) - Emphasized shareholder returns, with a 2024 annual cash dividend of approximately **280.7 million yuan**, and cash dividend per share increasing by **125%** year-on-year, reaching a record high[110](index=110&type=chunk) - Formulated a "Market Value Management System" to enhance investor communication and information transparency through performance briefings, e-interaction platforms, and other channels[111](index=111&type=chunk) Section 4 Corporate Governance, Environment, and Society [4.1 Changes in Directors and Senior Management](index=32&type=section&id=4.1%20Changes%20in%20Directors%20and%20Senior%20Management) During the reporting period, there were changes in the company's board of directors, including the resignation of a vice chairman and the election of a new director. Additionally, the company abolished the Supervisory Board as required by the new "Company Law," with its responsibilities assumed by the Board's Audit and Risk Management Committee - Mr. Wang Xinyu resigned from his positions as director and vice chairman, Mr. Ye Pingxian was elected as a non-independent director of the Fifth Board of Directors, and Director Mr. Wang Xiancheng was elected as vice chairman of the Fifth Board of Directors[114](index=114&type=chunk) - The company's 2024 Annual General Meeting approved the abolition of the Supervisory Board, with its responsibilities to be exercised by the Board's Audit and Risk Management Committee[115](index=115&type=chunk) [4.2 Profit Distribution or Capital Reserve Conversion Plan](index=33&type=section&id=4.2%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) No profit distribution or capital reserve conversion to share capital plan was proposed in this semi-annual report - No profit distribution plan or capital reserve conversion to share capital plan in this semi-annual report[116](index=116&type=chunk) [4.3 Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=33&type=section&id=4.3%20Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans,%20Employee%20Stock%20Ownership%20Plans,%20or%20Other%20Employee%20Incentive%20Measures) The company's second phase employee stock ownership plan has completed equity distribution for the first two allocation periods, currently holding **2,434,415 shares** of the company, with the duration expiring on December 13, 2025 - The company's second phase employee stock ownership plan completed share purchases on December 10, 2021, totaling **6,119,910 shares**[118](index=118&type=chunk) - The duration of the stock ownership plan is **48 months**, expiring on December 13, 2025[118](index=118&type=chunk) - Equity distribution for the first two allocation periods has been completed, with company-level performance completion rates of **100%** and **98%** respectively[119](index=119&type=chunk) - As of the end of the reporting period, this employee stock ownership plan still holds **2,434,415 shares** of the company[119](index=119&type=chunk) [4.4 Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=34&type=section&id=4.4%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company's mining services business is not classified as a heavily polluting industry, and its proprietary mining resource development operations strictly comply with domestic and international environmental regulations, actively fulfilling environmental and social responsibilities. No significant environmental information changes or penalties from ecological environment authorities occurred during the reporting period - Mining services business is not classified as a heavily polluting industry by the Ministry of Environmental Protection[121](index=121&type=chunk) - The company's proprietary mining resource projects strictly adhere to domestic or project-location country laws and regulations, preparing environmental or social impact reports and actively fulfilling environmental and social responsibilities[121](index=121&type=chunk) - During the reporting period, the company did not receive penalties from ecological environment administrative authorities in the project locations[122](index=122&type=chunk) Section 5 Significant Matters [5.1 Fulfillment of Commitments](index=36&type=section&id=5.1%20Fulfillment%20of%20Commitments) The company's actual controller, shareholders, related parties, and the company itself strictly fulfilled all commitments during or continuing into the reporting period, including those related to initial public offering, refinancing, authenticity, avoiding horizontal competition, and standardizing related-party transactions - The company and its related parties strictly fulfilled commitments regarding the truthfulness, accuracy, and completeness of documents related to the initial public offering of shares[125](index=125&type=chunk) - JCHX Group and the actual controller strictly fulfilled commitments to avoid horizontal competition and standardize related-party transactions[125](index=125&type=chunk) - The company's directors and senior management strictly fulfilled share lock-up commitments[125](index=125&type=chunk) [5.2 Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period](index=38&type=section&id=5.2%20Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20During%20the%20Reporting%20Period) During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties[7](index=7&type=chunk) [5.3 Irregular Guarantees](index=38&type=section&id=5.3%20Irregular%20Guarantees) During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[8](index=8&type=chunk) [5.4 Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=38&type=section&id=5.4%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company,%20its%20Controlling%20Shareholder,%20and%20Actual%20Controller%20During%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or overdue large debts - During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled court judgments or large overdue debts[127](index=127&type=chunk) [5.5 Significant Related-Party Transactions](index=38&type=section&id=5.5%20Significant%20Related-Party%20Transactions) This section discloses related-party transactions related to the company's daily operations, including property leases with Jingyun Industrial and design & procurement services and shareholder loans with CMH. It also details the progress of the company's acquisition of CMH equity, including the completed **100 million USD** payment and the plan to acquire an additional **5%** equity [5.5.1 Related-Party Transactions Related to Daily Operations](index=38&type=section&id=5.5.1%20Related-Party%20Transactions%20Related%20to%20Daily%20Operations) The company renewed a property lease contract with Jingyun Industrial, a wholly-owned subsidiary of the controlling shareholder, with total lease payments of **20,918,436.30 yuan** (including tax) for 2025. Additionally, the company provided design and procurement services (**15.8 million USD**) and a shareholder loan (not exceeding **5 million USD**) to related party CMH, which has been repaid with **249,300 USD** in interest income recognized - The company signed a property lease contract with Beijing Jingyun Industrial Investment Co., Ltd., with total lease payments of **20,918,436.30 yuan** (including tax) for 2025[128](index=128&type=chunk) - The company signed a design and procurement service agreement for the Alacran Copper-Gold-Silver Mine with CMH, with a service fee of **15.8 million USD**; project optimization, design, and equipment selection are steadily progressing[131](index=131&type=chunk) - The company provided a shareholder loan not exceeding **5 million USD** to CMH, which has been repaid, with cumulative interest income of **249,300 USD** recognized from this loan[132](index=132&type=chunk) [5.5.2 Related-Party Transactions Involving Asset or Equity Acquisition/Disposal](index=39&type=section&id=5.5.2%20Related-Party%20Transactions%20Involving%20Asset%20or%20Equity%20Acquisition%2FDisposal) The company has completed the **100 million USD** payment for **50%** equity in CMH. Currently, the company plans to acquire an additional **5%** equity in CMH to gain control, with a transaction price including **10 million USD** and contingent consideration, but the successful completion of this transaction depends on closing conditions such as EIA approval, posing uncertainties - As of the end of June 2025, the company invested **20 million USD** to subscribe for new shares in CMH, with a cumulative investment of **100 million USD**, completing the acquisition of **50%** equity in CMH[135](index=135&type=chunk) - The company plans to acquire an additional **5%** equity in CMH and obtain control, with a transaction price including **10 million USD** and contingent consideration (**4.4 million USD** or **15.4 million USD**)[136](index=136&type=chunk) - The successful completion of this transaction depends on fulfilling necessary external approval/filing procedures, approval of the Environmental Impact Assessment (EIA) for the Alacran Copper-Gold-Silver deposit, and other closing conditions, which currently involve certain uncertainties[136](index=136&type=chunk) [5.6 Significant Contracts and Their Performance](index=41&type=section&id=5.6%20Significant%20Contracts%20and%20Their%20Performance) This section details the company's significant guarantees performed and unfulfilled during the reporting period, including a total guarantee amount of **2,539.4547 million yuan** for subsidiaries, and multiple mining operations management, mining engineering construction contracts, and bank loan and guarantee contracts [5.6.1 Significant Guarantees Performed and Unfulfilled During the Reporting Period](index=42&type=section&id=5.6.1%20Significant%20Guarantees%20Performed%20and%20Unfulfilled%20During%20the%20Reporting%20Period) The company's total guarantee balance for subsidiaries is **2,539.4547 million yuan**, accounting for **25.48%** of the company's net assets. Among these, debt guarantees provided for guaranteed entities with an asset-liability ratio exceeding **70%** amounted to **2,227.3758 million yuan**. The company provided multiple significant guarantees for subsidiaries such as JCHX Congo, JCHX Botswana, Zhiyuan Mining, and Lubambe Copper Mine - As of the end of the reporting period, the total guarantee balance for subsidiaries was **2,539.4547 million yuan**, accounting for **25.48%** of the company's net assets[139](index=139&type=chunk) - Debt guarantees provided for guaranteed entities with an asset-liability ratio exceeding **70%** amounted to **2,227.3758 million yuan**[139](index=139&type=chunk)[140](index=140&type=chunk) - The company provided a parent company guarantee for its subsidiary JCHX Congo to fulfill a 5-year contracting agreement for the Kamoa-Kakula Copper Mine underground drift mining project, with an estimated contract value of approximately **993.4054 million USD**[140](index=140&type=chunk) - The company provided guarantee for its wholly-owned subsidiary Zhiyuan Mining Investment Co., Ltd. (Lonshi Copper Mine) for **80 million USD** and **20 million USD**[141](index=141&type=chunk) - The company provided a performance guarantee of **30 million USD** for its controlling subsidiary Lubambe Copper Mine Co., Ltd[140](index=140&type=chunk) [5.6.2 Other Significant Contracts](index=46&type=section&id=5.6.2%20Other%20Significant%20Contracts) The company has multiple ongoing mining operations management and mining engineering construction contracts, including large-scale projects such as Pulang Copper Mine, Khoemacau Copper Mine, Cukaru-Peki Copper-Gold Mine, and Kamoa-Kakula Copper Mine. Additionally, the company has signed loan and guarantee contracts with several banks to support its operations and project construction Mining Operations Management and Mining Engineering Construction Contracts (Partial) | No. | Contract Party | Project Content | Estimated Contract Period | Contract Amount (Estimated based on workload) (10,000 Yuan/10,000 USD) | Performance Status | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Yunnan Diqing Nonferrous Metals Co., Ltd. | Pulang Copper Mine Phase I Mining and Beneficiation Project Northern Mining Section Mining and Cutting Engineering and Mining General Contracting Project | Oct 10, 2024 to Oct 9, 2034 | 133,000 | Ongoing | | 5 | Khoemacau Copper Mining Proprietary Limited | Khoemacau Copper Mine Fifth Mining Area Underground Mining Business | Jul 1, 2025 to Jun 30, 2030 | US$8,050.17 | Ongoing | | 6 | Serbia Zijin Mining Co., Ltd. | Cukaru-Peki Copper-Gold Mine Lower Ore Body Shaft and Tunnel Engineering (Section 2) | 1 Air Intake Shaft Project: Apr 1, 2022 to Apr 19, 2027 | 71,785.00 | Ongoing | | 8 | Kamoa Copper SA | Kamoa-Kakula Copper Mine Underground Drift Mining Project | Dec 13, 2023 to Dec 12, 2028 | US$9,934.05 | Ongoing | Loan and Guarantee Contracts (Partial) | No. | Contract Party | Loan Contract Content | Guarantee Status | Credit Line (10,000 Yuan/10,000 USD) | Credit Period | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Bank of Beijing Youanmen Branch | Comprehensive credit line of up to 30,000 10,000 yuan | JCHX Group, Wang Xiancheng provide joint and several liability guarantee for 30,000 10,000 yuan under the "Comprehensive Credit Contract" | 30,000.00 | Jun 23, 2025 to Jun 22, 2026 | | 10 | HSBC Bank (China) Co., Ltd. Beijing Branch | Credit line of up to 1,500 10,000 USD | JCHX Group, Wang Xiancheng provide joint and several liability guarantee for 1,500 10,000 USD under the "Credit Contract" | 1,500 10,000 USD | Sep 6, 2024 to Sep 30, 2025 | | 34 | Mugunghwa (Hong Kong) Investment Co., Ltd. | Loan of 8,000 10,000 USD | JCHX Mining provides guarantee | 8,000 10,000 USD | Sep 29, 2022 to Sep 29, 2027 | [5.7 Explanation of Progress in Use of Raised Funds](index=51&type=section&id=5.7%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company's convertible corporate bond (JCHX Convertible Bond) fundraising investment projects have been completed as planned, with remaining funds permanently used to supplement working capital, and relevant special accounts were closed in January 2024 - The company's convertible corporate bond (bond code 113615) fundraising investment projects have been completed as planned[149](index=149&type=chunk) - Remaining raised funds have been permanently used to supplement working capital, and the special accounts for convertible corporate bonds were closed in January 2024[149](index=149&type=chunk) Section 6 Share Changes and Shareholder Information [6.1 Share Capital Changes](index=52&type=section&id=6.1%20Share%20Capital%20Changes) From January 1 to June 30, 2025, the company's share count increased by **2,118 shares** due to "JCHX Convertible Bond" conversion, representing **0.0004%** of the total shares issued before conversion Share Change Table | | Quantity Before This Change | Proportion Before This Change (%) | Net Increase/Decrease in This Change (+, -) | Quantity After This Change | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | II. Unrestricted Shares | 623,775,770 | 100 | 2,118 | 623,777,888 | 100 | | III. Total Shares | 623,775,770 | 100 | 2,118 | 623,777,888 | 100 | - From January 1, 2025, to June 30, 2025, the number of shares resulting from the conversion of "JCHX Convertible Bond" was **2,118 shares**, accounting for **0.0004%** of the total shares issued before the conversion[154](index=154&type=chunk) - As of June 30, 2025, the cumulative number of shares resulting from conversion was **40,369,456 shares**, accounting for **6.9196%** of the total shares issued before the "JCHX Convertible Bond" conversion[154](index=154&type=chunk) - The impact of this period's share change on earnings per share was **-0.000006 yuan/share**, and on net assets per share was **-0.00004 yuan/share**[155](index=155&type=chunk) [6.2 Shareholder Information](index=53&type=section&id=6.2%20Shareholder%20Information) As of the end of the reporting period, the total number of common shareholders was **16,603**. JCHX Group Co., Ltd. was the largest shareholder, holding **38.88%** of shares and pledging a portion. Hong Kong Securities Clearing Company Limited held **2.23%** - Total number of common shareholders as of the end of the reporting period: **16,603**[156](index=156&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name (Full Name) | Change During Reporting Period | Period-End Shareholding | Proportion (%) | Number of Restricted Shares Held | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | JCHX Group Co., Ltd. | 0 | 242,519,049 | 38.88 | 0 | Pledged | 42,600,000 | | National Social Security Fund 406 Portfolio | 630,500 | 14,792,688 | 2.37 | 0 | Unknown | - | | Hong Kong Securities Clearing Company Limited | -20,194,421 | 13,893,186 | 2.23 | 0 | Unknown | - | | National Social Security Fund 111 Portfolio | 2,748,860 | 9,820,591 | 1.57 | 0 | Unknown | - | | Monetary Authority of Macao - Own Funds | 384,000 | 9,074,437 | 1.45 | 0 | Unknown | - | | Yingtan Jincheng Investment Development Co., Ltd. | 0 | 8,736,584 | 1.40 | 0 | None | 0 | | Yingtan Jinxin Investment Development Co., Ltd. | 0 | 7,491,777 | 1.20 | 0 | None | 0 | | Kuwait Investment Authority - Own Funds | 879,900 | 7,111,472 | 1.14 | 0 | Unknown | - | | National Social Security Fund 418 Portfolio | 6,972,754 | 6,972,754 | 1.12 | 0 | Unknown | - | | Generali China Life Insurance Co., Ltd. - Participating Product 2 | 0 | 6,894,557 | 1.11 | 0 | Unknown | - | - JCHX Group Co., Ltd. holds **100%** equity in Yingtan Jincheng Investment Development Co., Ltd. and Yingtan Jinxin Investment Development Co., Ltd[159](index=159&type=chunk) [6.3 Directors and Senior Management Information](index=55&type=section&id=6.3%20Directors%20and%20Senior%20Management%20Information) During the reporting period, there were no changes in the shareholdings of the company's current and former directors and senior management Changes in Shareholdings of Current and Former Directors and Senior Management During the Reporting Period | Name | Position | Shares Held at Period-Beginning | Shares Held at Period-End | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Qinghai | Chairman | 254,200 | 254,200 | 0 | Not applicable | | Wang Xiancheng | Vice Chairman | 5,601,121 | 5,601,121 | 0 | Not applicable | | Huang Haigen | Director, President | 0 | 0 | 0 | Not applicable | | Wang Cicheng | Director, Executive Vice President | 1,399,514 | 1,399,514 | 0 | Not applicable | | Wang Youcheng | Director, Vice President | 1,399,514 | 1,399,514 | 0 | Not applicable | | Ye Pingxian | Director, Vice President | 0 | 0 | 0 | Not applicable | | Zhang Jianliang | Independent Director | 0 | 0 | 0 | Not applicable | | Pan Shuai | Independent Director | 0 | 0 | 0 | Not applicable | | Ye Xishan | Independent Director | 0 | 0 | 0 | Not applicable | | Yin Shizhou | Former Chairman of Supervisory Board | 712,265 | 712,265 | 0 | Not applicable | | Wang Qinghan | Former Supervisor | 0 | 0 | 0 | Not applicable | | Xu Wangqing | Former Employee Supervisor | 0 | 0 | 0 | Not applicable | | Zhou Genming | Vice President | 0 | 0 | 0 | Not applicable | | Wang Gang | Vice President | 0 | 0 | 0 | Not applicable | | Hu Zhou | Vice President, Chief Economist | 0 | 0 | 0 | Not applicable | | Ding Jingang | Vice President, Chief Engineer | 0 | 0 | 0 | Not applicable | | Liu Fengkun | Vice President | 0 | 0 | 0 | Not applicable | | Meng Zhuhong | CFO | 300,000 | 300,000 | 0 | Not applicable | | Wu Bangfu | Board Secretary | 300,000 | 300,000 | 0 | Not applicable | Section 7 Bond-Related Information [7.1 Convertible Corporate Bonds](index=57&type=section&id=7.1%20Convertible%20Corporate%20Bonds) The company publicly issued **1 billion yuan** "JCHX Convertible Bond" in December 2020. As of the end of the reporting period, the unconverted amount was **495.957 million yuan**. The company's long-term credit rating is AA, with a stable outlook. The company has decided not to exercise its early redemption right for "JCHX Convertible Bond" and will not redeem it early within the next six months - The company publicly issued **1 million lots** of convertible corporate bonds on December 23, 2020, with a total issuance amount of **1,000 million yuan**, abbreviated as "JCHX Convertible Bond," code 113615[166](index=166&type=chunk) - Number of convertible bondholders at period-end: **1,923**[167](index=167&type=chunk) Top Ten Convertible Bondholders (Partial) | Convertible Corporate Bondholder Name | Period-End Bondholding (Yuan) | Holding Proportion (%) | | :--- | :--- | :--- | | Agricultural Bank of China Co., Ltd. - Penghua Convertible Bond Fund | 45,148,000 | 9.10 | | Ping An Stable Allocation No. 3 Fixed Income Pension Product - Industrial and Commercial Bank of China Co., Ltd. | 39,737,000 | 8.01 | | China Merchants Bank Co., Ltd. - Boshi CSI Convertible Bond and Exchangeable Bond ETF | 22,290,000 | 4.49 | Convertible Bond Changes During the Reporting Period | Convertible Corporate Bond Name | Before This Change (Yuan) | Converted to Shares (Yuan) | After This Change (Yuan) | | :--- | :--- | :--- | :--- | | JCHX Convertible Bond | 495,983,000 | 26,000 | 495,957,000 | - Cumulative converted shares: **40,369,456 shares**, accounting for **6.9196%** of the total shares issued before conversion. Unconverted amount: **495.957 million yuan**, accounting for **49.5957%** of the total convertible bond issuance[170](index=170&type=chunk) - The conversion price has been adjusted multiple times, with the latest conversion price at the end of this reporting period being **11.78 yuan/share**[173](index=173&type=chunk) - The company's long-term credit rating is **AA**, with a stable outlook[174](index=174&type=chunk) - The company decided not to exercise its early redemption right for "JCHX Convertible Bond" and will not exercise it within the next six months (April 10, 2025, to October 9, 2025)[176](index=176&type=chunk) Section 8 Financial Report [8.1 Financial Statements](index=61&type=section&id=8.1%20Financial%20Statements) This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting the company's financial position, operating results, and cash flows [8.2 Company Basic Information](index=77&type=section&id=8.2%20Company%20Basic%20Information) The company was established through overall restructuring on May 9, 2011, and listed on the Shanghai Stock Exchange on June 30, 2015. As of the end of the reporting period, its registered capital was **623.776176 million yuan**, with main businesses in mining services and mining resource development - JCHX Mining Management Co., Ltd. was established through overall restructuring on May 9, 2011, and listed on the Shanghai Stock Exchange on June 30, 2015[202](index=202&type=chunk) - As of the end of the reporting period, the company's registered capital was **623.776176 million yuan**, and its share capital increased to **623.777888 million shares**[203](index=203&type=chunk) - The company belongs to the mining services industry and mining resource development industry[204](index=204&type=chunk) [8.3 Basis of Financial Statement Preparation](index=77&type=section&id=8.3%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, in accordance with accounting standards issued by the Ministry of Finance and relevant disclosure regulations of the China Securities Regulatory Commission, with no significant doubts about its ability to continue as a going concern - The company prepares its financial statements on a going concern basis, based on actual transactions and events, in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and the disclosure requirements of "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 – General Provisions for Financial Reports" (Revised in 2023) by the China Securities Regulatory Commission[204](index=204&type=chunk) - There are no matters or circumstances that cause significant doubt about the going concern assumption for the 12 months from the end of the reporting period[205](index=205&type=chunk) [8.4 Significant Accounting Policies and Estimates](index=78&type=section&id=8.4%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's accounting policies and estimates for revenue recognition, financial instrument measurement, inventory impairment provisions, fixed asset depreciation, intangible asset amortization, and deferred income tax assets, and clarifies various materiality standards - The company sets materiality standards for various financial indicators and transactions, such as significant accounts receivable/other receivables for which bad debt provisions are individually recognized if the current period's individual provision amount exceeds **10 million yuan**[211](index=211&type=chunk) - Financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[226](index=226&type=chunk) - The company uses the transfer of control as the judgment criterion for revenue recognition; for performance obligations satisfied over time, revenue is recognized according to the progress of performance; for performance obligations satisfied at a point in time, revenue is recognized when the customer obtains control of the related goods[316](index=316&type=chunk)[317](index=317&type=chunk) - The company uses the moving weighted average method for measuring the cost of inventories issued; at the balance sheet date, inventories are measured at the lower of cost and net realizable value[260](index=260&type=chunk)[261](index=261&type=chunk) - Fixed assets are depreciated using the straight-line method; depreciation periods are **20 years** for buildings, **2-20 years** for machinery and equipment, and **2-10 years** for transportation vehicles[282](index=282&type=chunk) - Mining rights within intangible assets are amortized using the units-of-production method based on related proven and probable reserves; other intangible assets are amortized using the straight-line method[293](index=293&type=chunk) [8.5 Taxation](index=118&type=section&id=8.5%20Taxation) This section details the main tax categories and applicable tax rates for the company and its subsidiaries, including VAT, corporate income tax, and resource tax. The company and some subsidiaries enjoy a **15%** corporate income tax preferential rate as high-tech enterprises, while some overseas subsidiaries also benefit from local tax incentives or exemptions Major Tax Categories and Tax Rates (Partial) | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax | Taxed at rates such as 1%, 3%, 5%, 6%, 9%, 10%, 12%, 13%, 14%, 15%, 16%, 20% | | Urban Maintenance and Construction Tax | 7%, 5%, 1% | | Corporate Income Tax | 15%, 20%, 25%, 27%, 8.25%, 16.50%, 30%, 3%, 2.5% | | Resource Tax | 3.5%, 7.5% | Taxable Entities with Different Corporate Income Tax Rates (Partial) | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | Company, JCHX Research Institute, JCHX Design Institute, Intelligent Equipment Company, Jinuo Company, Zhiyong Industrial, Yuancheng Technology | 15% | | JCHX International, Mingzhu Exploration, Zhiyuan Mining, Zhaoyuan Mining | 0% | | JCHX Technology Company, Beijing Zhongchengcheng, Lijiang JCHX, Liangchaha Mining, Yunnan JCHX, Hubei JCHX, Pioneer Company, Guizhou JCHX | 25% | | JCHX Congo, Baian Mining, Jinjing Mining, Yuanjing Mining, Jinke Construction, Sabwe Company, JCHX Congo (DRC), Jinji Mining, Terra Mining, Jinrong Mining | 30% | - The company and JCHX Research Institute 2022-2024 passed the high-tech enterprise re-certification, enjoying a reduced corporate income tax rate of **15%**; this tax incentive policy has expired this year, and the re-application process for high-tech enterprise status is currently underway[353](index=353&type=chunk) - JCHX Design Institute, Intelligent Equipment Company, Jinuo Company, and Zhiyong Industrial enjoy a reduced corporate income tax rate of **15%** for 2023-2025[354](index=354&type=chunk)[355](index=355&type=chunk) - JCHX Serbia can reduce corporate income tax based on the effective investment ratio, with a reduction ratio of **97.60%** in 2024[356](index=356&type=chunk) - Yuancheng Technology applies a **15%** corporate income tax rate for encouraged enterprises in Hainan Free Trade Port[356](index=356&type=chunk) [8.6 Notes to Consolidated Financial Statement Items](index=122&type=section&id=8.6%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for each item in the consolidated financial statements, including monetary funds, accounts receivable, inventories, fixed assets, intangible assets, short-term borrowings, long-term borrowings, and bonds payable, explaining their period-end balances, reasons for changes, and related accounting treatments [8.6.1 Monetary Funds](index=122&type=section&id=8.6.1%20Monetary%20Funds) The company's period-end monetary funds balance was **3,790.6785 million yuan**, of which **2,448.6220 million yuan** was deposited overseas. Other monetary funds include various restricted funds such as guarantees and funds in transit Composition of Monetary Funds | Project | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Cash on Hand | 6,948,069.56 | 5,828,076.24 | | Bank Deposits | 3,671,951,258.34 | 2,532,172,695.32 | | Other Monetary Funds | 111,779,188.59 | 77,932,911.10 | | Total | 3,790,678,516.49 | 2,615,933,682.66 | | Of which: Funds Deposited Overseas | 2,448,622,016.70 | 1,487,859,574.32 | - Other monetary funds at period-end include restricted funds such as bank acceptance bill deposits of **299,010.47 yuan**, letter of guarantee deposits of **28,766,168.85 yuan**, borrowing deposits of **26,394,830.06 yuan**, mine geological environment restoration fund of **8,432,999.62 yuan**, and funds in transit of **47,821,557.64 yuan**[357](index=357&type=chunk) [8.6.2 Accounts Receivable](index=126&type=section&id=8.6.2%20Accounts%20Receivable) The company's period-end accounts receivable book balance was **2,848.0389 million yuan**, with the highest proportion being within 1 year. Bad debt provisions of **519.6417 million yuan** have been made. The top five debtors' accounts receivable and contract assets combined accounted for **49.48%** of the total Accounts Receivable by Aging | Aging | Period-End Book Balance (Yuan) | | :--- | :--- | | Within 1 year (inclusive) | 1,982,728,181.87 | | 1 to 2 years | 231,976,104.42 | | 2 to 3 years | 109,698,790.12 | | 3 to 4 years | 63,350,983.17 | | 4 to 5 years | 211,818,127.59 | | Over 5 years | 248,466,739.17 | | Total | 2,848,038,926.34 | Accounts Receivable Classified by Bad Debt Provision Method | Category | Book Balance (Yuan) | Proportion (%) | Bad Debt Provision (Yuan) | Provision Ratio (%) | Book Value (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bad debt provision by portfolio | 2,848,038,926.34 | 100.00 | 519,641,686.87 | 18.25 | 2,328,397,239.47 | - The total accounts receivable of the top five debtors and contract assets at period-end, grouped by debtor, amounted to **1,762.4236 million yuan**, accounting for **49.48%** of the total accounts receivable and contract assets at period-end[381](index=381&type=chunk) [8.6.3 Inventories](index=140&type=section&id=8.6.3%20Inventories) The company's period-end inventory book value was **1,549.5736 million yuan**, primarily consisting of raw materials, work-in-progress, and finished goods. Inventory impairment provisions of **3.9076 million yuan** were made in the current period, with a period-end impairment provision balance of **27.2816 million yuan** Inventory Classification | Project | Book Balance (Yuan) | Inventory Impairment Provision/Contract Performance Cost Impairment Provision (Yuan) | Book Value (Yuan) | | :--- | :--- | :--- | :--- | | Raw Materials | 1,025,873,200.22 | 25,835,616.66 | 1,000,037,583.56 | | Work-in-Progress | 124,387,113.39 | - | 124,387,113.39 | | Finished Goods | 189,053,675.50 | 1,445,980.14 | 187,607,695.36 | | Revolving Materials | 9,814,260.34 | - | 9,814,260.34 | | Contract Performance Costs | 190,369,611.35 | - | 190,369,611.35 | | Goods in Transit | 37,151,706.77 | - | 37,151,706.77 | | Low-Value Consumables | 205,617.05 | - | 205,617.05 | | Total | 1,576,855,184.62 | 27,281,596.80 | 1,549,573,587.82 | - Inventory impairment provisions increased by **3.9076 million yuan** in the current period, with a period-end inventory impairment provision balance of **27.2816 million yuan**[415](index=415&type=chunk) [8.6.4 Fixed Assets](index=149&type=section&id=8.6.4%20Fixed%20Assets) The company's period-end fixed assets book value was **5,771.3983 million yuan**, with machinery and equipment accounting for the largest proportion. Some fixed assets, such as the Lonshi mining area office camp and Maituo office building, have not yet completed property title certificates Book Value of Fixed Assets | Project | Period-End Book Value (Yuan) | | :--- | :--- | | Buildings and Structures | 474,326,641.09 | | Machinery and Equipment | 3,646,053,812.73 | | Transportation Vehicles | 116,323,270.81 | | Electronic and Other Equipment | 43,375,045.58 | | Temporary Facilities | 4,821,299.52 | | Tunnel Assets | 1,486,498,182.45 | | Total | 5,771,398,252.18 | Fixed Assets for Which Property Title Certificates Have Not Been Completed | Project | Book Value (Yuan) | Reason for Not Completing Property Title Certificates | | :--- | :--- | :--- | | Lonshi Mining Area Office Camp | 167,745,463.17 | No need to process | | Maituo Office Building | 53,656,080.29 | In process | | Dikulushi Mining Area Office Camp | 20,751,124.40 | No need to process | | Pulang Project Department Office Building | 6,870,504.49 | No need to process | | Zhongnan Dormitory Building | 1,548,000.00 | In process | | Subtotal | 250,571,172.35 | | [8.6.5 Intangible Assets](index=156&type=section&id=8.6.5%20Intangible%20Assets) The company's period-end intangible assets book value was **1,321.7718 million yuan**, with mining rights being the main component. Intangible assets increased by **24.9802 million yuan** in the current period, primarily due to the acquisition of land use rights and software Book Value of Intangible Assets | Project | Period-End Book Value (Yuan) | | :--- | :--- | | Land Use Rights | 67,415,387.14 | | Trademarks | 12,400,000.00 | | Non-Patented Technology | 82,363,345.15 | | Software | 21,757,132.68 | | Mining Rights | 1,137,835,941.75 | | Total | 1,321,771,806.72 | - Intangible assets increased by **24.9802 million yuan** in the current period, mainly due to the acquisition of land use rights of **23.1840 million yuan** and software of **1.7962 million yuan**[460](index=460&type=chunk) [8.6.6 Short-Term Borrowings](index=162&type=section&id=8.6.6%20Short-Term%20Borrowings) The company's period-end total short-term borrowings amounted to **852.2444 million yuan**, primarily guarantee-backed borrowings. There were no overdue short-term borrowings unpaid during the reporting period Short-Term Borrowing Classification | Project | Period-End Balance (Yuan) | | :--- | :--- | | Guarantee-Backed Borrowings | 852,199,881.26 | | Credit Borrowings | 44,469.69 | | Total | 852,244,350.95 | - The total amount of overdue short-term borrowings unpaid at the end of the current period was **0 yuan**[482](index=482&type=chunk) [8.6.7 Long-Term Borrowings](index=168&type=section&id=8.6.7%20Long-Term%20Borrowings) The company's period-end total long-term borrowings amounted to **1,365.9198 million yuan**, primarily consisting of guarantee-backed borrowings and pledged guarantee-backed borrowings Long-Term Borrowing Classification | Project | Period-End Balance

Core Viewpoint - Jin Chengxin (603979.SH) reported significant growth in both revenue and net profit for the first half of 2025, driven by increased production and cost control measures [1] Financial Performance - The company achieved operating revenue of 6.316 billion yuan, representing a year-on-year increase of 47.82% [1] - Net profit attributable to shareholders reached 1.111 billion yuan, marking a year-on-year growth of 81.29% [1] - The net profit excluding non-recurring gains and losses was 1.088 billion yuan, up 78.51% year-on-year [1] - Basic earnings per share stood at 1.78 yuan [1] Operational Highlights - The growth in revenue and profit was primarily due to increased production and sales of mineral products from mining resource development [1] - The company has effectively controlled production costs through ongoing cost reduction and expense management measures [1]

Summary of Key Points from Conference Call Records Industry Overview: Cobalt Industry - Global cobalt demand is expected to grow, reaching 240,000 to 250,000 tons by 2025, with the U.S. storage plan having a noticeable impact on market demand, particularly in the metal cobalt sector [1][2][3] - The supply-demand dynamics in the cobalt industry are shifting due to the export ban from the Democratic Republic of Congo (DRC), leading to reduced supply, while the U.S. storage plan and demand for ternary materials from large cylindrical batteries are driving demand [1][3] Core Insights and Arguments - Cobalt prices are anticipated to rise significantly starting in September, with projections indicating an increase from the current price of 260,000 CNY/ton to over 350,000 CNY/ton, representing a rise of more than one-third [1][8] - The strategic nature of cobalt is increasing, similar to the transition seen in the rare earth and tungsten markets, suggesting a favorable outlook for the cobalt sector [1][6] - The recent dovish comments from the Federal Reserve have boosted the non-ferrous metals sector, highlighting investment opportunities in cobalt and tungsten [1][7] Company-Specific Insights - Huayou Cobalt is highlighted as a key investment target, with expected profits of around 6 billion CNY in 2025 and a market capitalization increase from 70 billion CNY to 80 billion CNY, resulting in a price-to-earnings ratio of approximately 13 times [1][9] - Other companies such as Tengyuan and Hanrui are also noted for their potential, although their benefits may diminish in the third quarter due to the DRC's export ban [1][10] Market Dynamics and Future Outlook - The overall valuation of the non-ferrous metals sector remains low, with companies like Zijin Mining and Luoyang Molybdenum maintaining low price-to-earnings ratios, making cobalt and other small commodities particularly attractive for investment [1][11] - The copper market is expected to recover in demand during the third quarter, with no significant increase in global copper supply, indicating a favorable window for copper price increases [1][14][15] Additional Important Insights - The cobalt market is sensitive to strategic metal attributes, and the U.S. procurement plan for cobalt, which includes 7,500 tons over five years, will have a significant impact on the metal cobalt market despite its small overall industry share [2][10] - The supply situation is expected to tighten in September due to the DRC's export ban, leading to a relative vacuum in supply and subsequent price increases [1][5][6]

Group 1 - The core viewpoint of the news highlights a strong performance of the CSI 500 Free Cash Flow Index, which rose by 1.75% as of August 25, 2025, with notable increases in constituent stocks such as Jincheng Holdings (up 7.08%) and Xiyex Co. (up 5.34%) [2] - The CSI 500 Free Cash Flow Index is composed of 50 listed companies with high free cash flow rates selected from the CSI 500 Index, with the top ten weighted stocks accounting for 45.03% of the index as of July 31, 2025 [2] - The current asset securitization rate in the domestic market is 0.83, indicating potential upward valuation space, as this metric has historically remained below 1 except during bull markets [2] Group 2 - The CSI 500 Free Cash Flow ETF (560120) has seen a 2.17% increase, marking its fourth consecutive rise, with the latest price reported at 1.08 yuan [2] - The top ten weighted stocks in the CSI 500 Free Cash Flow Index include CIMC Group, Zhejiang Longsheng, Yuntianhua, Shougang Co., and others, with varying weight percentages [4] - The MACD golden cross signal formation indicates a positive trend for these stocks, suggesting a favorable market sentiment [4]

Market Overview - The Shanghai Composite Index rose by 3.49% and the CSI 300 Index increased by 4.18% during the week of August 18-22 [2][3] - The SW Nonferrous Metals Index saw a gain of 1.33%, while COMEX gold and silver prices increased by 1.05% and 2.26%, respectively [2][3] Industrial Metals - Industrial metal prices showed mixed movements: LME aluminum +0.73%, copper +0.50%, zinc +0.32%, lead +0.56%, nickel -1.45%, and tin +0.70% [2][3] - The SMM imported copper concentrate index reported a decrease of $3.47/ton to $-41.15/ton, while the copper rod enterprises' operating rate rose to 71.80%, up by 1.20 percentage points [3] - Domestic electrolytic aluminum social inventory decreased by 11,000 tons, totaling 596,000 tons, indicating a slight increase in production and improved demand expectations [3] - Recommended companies in the industrial metals sector include Zijin Mining, Luoyang Molybdenum, Minmetals Resources, China Nonferrous Mining, and others [3] Energy Metals - Cobalt raw material imports continue to decline, suggesting a potential price surge for cobalt, while lithium supply disruptions remain a concern [4] - Carbonate lithium prices have rebounded due to increased market activity, with expectations for a strong short-term performance [4] - Cobalt prices are expected to strengthen as domestic inventory continues to deplete, with stable price increases for cobalt sulfate [4] - Recommended companies in the energy metals sector include Cangge Mining, Huayou Cobalt, and others [4] Precious Metals - The expectation of interest rate cuts by the Federal Reserve has positively influenced gold prices, with the People's Bank of China continuing to increase gold reserves for nine consecutive months [5] - Silver prices are also rising due to its industrial properties and recovery dynamics [5] - Recommended companies in the precious metals sector include Shandong Gold, Tongguan Gold, and others, with a focus on potential opportunities if gold prices stabilize above $3,500/oz [5]

Group 1: Copper Market - The expectation of a Federal Reserve rate cut in September has increased, which is likely to support copper prices [1][2] - This week, the price changes for copper were -0.05% for LME copper, -0.47% for SHFE copper, and -0.62% for COMEX copper, indicating a period of fluctuation [2] - Domestic copper inventory has increased, with LME copper at 156,000 tons, COMEX copper at 271,000 short tons, and SHFE copper at 82,000 tons, showing a month-on-month change of +0.11%, +1.60%, and -5.4% respectively [2] - The downstream demand for copper has rebounded, with the copper rod operating rate at 71.8%, up by 1.19 percentage points [2] Group 2: Aluminum Market - The aluminum market is expected to maintain a fluctuating trend due to rising inventory levels [3] - The price of alumina has decreased by 0.15% to 3,225 CNY/ton, while the main futures contract for alumina fell by 0.41% to 3,192 CNY/ton [3] - The operating capacity for metallurgical-grade alumina reached 91.57 million tons per year, with a weekly operating rate down by 0.2 percentage points to 83.0% due to routine maintenance [3] - Domestic electrolytic aluminum prices fell by 0.34% to 20,700 CNY/ton, with a profit margin of 4,405 CNY/ton, up by 1.84% [3] Group 3: Lithium Market - Lithium salt prices are expected to rise due to seasonal demand, with carbonate lithium prices increasing by 1.45% to 84,000 CNY/ton [4][5] - The production of carbonate lithium this week was 19,000 tons, a decrease of 4.2% month-on-month [5] - SMM weekly inventory for carbonate lithium is at 142,000 tons, down by 0.5% [5] Group 4: Cobalt Market - The import volume of cobalt raw materials has continued to decline, which may accelerate the digestion of raw material inventory, leading to potential price increases [5] - Domestic cobalt prices fell by 0.38% to 261,000 CNY/ton [5] - The extension of the cobalt export ban by the Democratic Republic of Congo is expected to accelerate the reduction of cobalt raw material inventory, potentially leading to a tight supply situation in Q4 [5]

Investment Rating - The report maintains an "Accumulate" rating for the copper industry [7]. Core Viewpoints - The macroeconomic sentiment is improving, and copper prices are expected to strengthen starting in September 2025. The SHFE copper closing price is 78,690 RMB/ton, down 0.47% from August 15, while the LME copper closing price is 9,797 USD/ton, up 0.37% from the same date [2]. - Domestic copper demand is anticipated to improve post-September, driven by the end of the off-season and increased demand from sectors such as power grids and air conditioning [2][5]. - The report suggests that with tightening supply and improving demand, copper prices are likely to continue rising in 2025 [5]. Supply and Demand Summary - **Supply**: - Global copper concentrate production in June increased by 3.6% year-on-year but decreased by 4.1% month-on-month. China's copper concentrate production in May was 158,000 tons, up 22.7% month-on-month and 11.2% year-on-year [3][49]. - Domestic copper social inventory increased by 4.9% week-on-week, while LME copper inventory rose by 0.2% [3][26]. - **Demand**: - In July, the production of household air conditioners was 16.12 million units, down 0.01% year-on-year but higher than the previous forecast of 15.81 million units [4][92]. - The cable sector accounts for approximately 31% of domestic copper demand, with the operating rate of cable enterprises at 68.88%, down 0.42 percentage points week-on-week [4][73]. Key Companies and Investment Recommendations - The report recommends the following companies for investment: Jincheng Mining, Zijin Mining, Luoyang Molybdenum, and Western Mining, while also suggesting to pay attention to Tongling Nonferrous Metals [5][6]. - The earnings per share (EPS) and price-to-earnings (PE) ratios for these companies indicate a favorable investment outlook, with all rated as "Accumulate" [6].

证券研究报告 | 行业定期报告 2025 年 08 月 24 日 总量管控政策落地助力稀土 看好钴锑钨 金属行业周报 周期/金属及材料 下周关注美 PCE 和国内外 PMI 数据。美联储政策不确定扰动近期市场节奏。 全球流动性宽松大周期，近期为金属价格提供底部支持，远期提供上涨动力和 空间。稀土总量管控政策落地，加上稀土战略金属地位提升，我们继续看好稀 土价格和稀土板块估值提升。近期重点关注，稀土和钨依然在主升浪，钴锑有 望再迎上涨。此外，关注自主可控相关以及时间友好的科技、机器人、可控核 聚变等相关材料标的。 推荐（维持） 行业规模 | | | 占比% | | --- | --- | --- | | 股票家数（只） | 235 | 4.6 | | 总市值（十亿元） | 5040.8 | 5.0 | | 流通市值（十亿元） | 4680.7 | 5.1 | 敬请阅读末页的重要说明 ❑ 有色金属（801050）申万一级行业指数本周涨幅 1.33%，排名第 26。本周 申万二级行业指数，能源金属（1.48%），工业金属（-1.16%），小金属 （10.53%），贵金属（-0.43%）。 ❑ 本周最大涨幅个股：宜安 ...

Investment Rating - The investment rating for the non-ferrous metals industry is "Positive" (maintained) [4][108]. Core Views - The report highlights that the expectation of a rate cut by the Federal Reserve in September is likely to support copper prices, with a potential upward trend anticipated due to increased demand during the peak season [3][5]. - The report emphasizes the importance of monitoring the Federal Reserve's actions in September and the demand support during the "golden September and silver October" period [5]. Summary by Sections 1. Industry Overview - The report notes that the U.S. initial jobless claims for the week ending August 16 were higher than expected, indicating economic uncertainty [9]. - Fed Chairman Powell's dovish remarks suggest a stronger likelihood of a rate cut in September, which could positively impact the non-ferrous metals market [9]. 2. Industrial Metals Copper - Copper prices showed slight declines this week, with LME copper down 0.05%, SHFE copper down 0.47%, and COMEX copper down 0.62% [25]. - Domestic copper inventories increased, with LME copper stocks at 155,975 tons (+0.11%) and SHFE copper stocks at 81,698 tons (-5.40%) [22][25]. - The report suggests that copper prices may rise due to improved downstream demand and the upcoming peak season [5]. Aluminum - Aluminum prices are expected to remain stable, with SHFE aluminum down 0.34% to 20,670 yuan/ton and LME aluminum down 0.58% [36]. - The report indicates that aluminum inventories are rising, with domestic spot inventories at 595,000 tons (+0.85%) [36]. Lithium - Lithium carbonate prices increased by 1.45% to 83,900 yuan/ton, while lithium spodumene prices decreased by 0.64% to 934 USD/ton [78]. - The report anticipates a reduction in lithium inventories due to seasonal demand, which may drive prices higher [78]. Cobalt - Domestic cobalt prices fell by 0.38% to 261,000 yuan/ton, with a significant drop in imports from the Democratic Republic of Congo [89]. - The report suggests that the extended export ban from Congo may lead to a tightening of cobalt supplies in Q4, potentially increasing prices [89]. 3. Market Performance - The non-ferrous metals sector underperformed compared to the Shanghai Composite Index, with a weekly increase of 1.33% versus the index's 3.49% [11][12]. - The report identifies the top-performing stocks in the sector and notes the overall market sentiment [11]. 4. Valuation Changes - The PE_TTM for the non-ferrous metals sector is reported at 22.80, with a slight increase of 0.27 [20]. - The PB_LF for the sector stands at 2.63, reflecting a change of 0.03 [20].

Investment Rating - Industry Rating: Outperforming the market (maintained rating) [7] Core Views - The report emphasizes a bullish outlook on non-ferrous metals due to the dovish stance of Powell and the dual easing of fiscal and monetary policies, which are expected to support the sector [1] - The copper market is currently in a state of relative weakness, with prices expected to rebound in September due to seasonal demand increases, despite short-term price weakness [2][14] - Aluminum prices are under pressure due to increased supply and demand concerns, with a forecasted range for aluminum prices between 20,300 and 21,000 yuan/ton [19][20] - Precious metals are experiencing downward pressure, but the dovish signals from the Jackson Hole meeting may lead to a rebound in gold prices [23][24] - Tungsten prices are on the rise, supported by tight supply, although demand from downstream sectors remains weak [54][55] - The rare earth sector is seeing improvements in supply management, with expectations for significant price elasticity and potential for volume and price increases in the third quarter [5] Summary by Sections Base Metals & Precious Metals - Copper prices have slightly decreased, with the current price at 79,110 yuan/ton, and the market is expected to remain relatively weak in the short term [2][14] - Aluminum prices have dropped to 20,775 yuan/ton, influenced by increased supply and concerns over demand, particularly in the real estate sector [19][20] - Gold prices have decreased to 767.33 yuan/gram, with expectations for a rebound due to renewed interest in rate cuts [23][24] - Lead and zinc prices are also under pressure, with lead prices at 16,783 yuan/ton and zinc prices at 22,248 yuan/ton, reflecting weak demand [27][35] Minor Metals - Lithium prices are rising, driven by strong cost support, with current prices around 73,000-76,000 yuan/ton [39] - Cobalt prices are experiencing slight fluctuations, with current prices for electrolytic cobalt at 257,000-275,000 yuan/ton [43][44] - Tin prices are supported by low inventory levels, with current prices at 33,775 USD/ton [49][50] Tungsten - Tungsten prices have increased, with black tungsten concentrate averaging 224,000 yuan/ton, reflecting tight supply conditions [54][55] Rare Earths - The release of new regulations is expected to optimize supply in the rare earth sector, with light rare earth prices rising to 622,500 yuan/ton [5]