Core Viewpoint - Ningxia Orient Tantalum Industry Co., Ltd. plans to issue A-shares to specific investors in 2025, aiming to raise up to RMB 120 million for various projects and to enhance its production capacity in the tantalum and niobium industry [16][25]. Group 1: Issuance Overview - The company intends to issue A-shares to no more than 35 specific investors, including China Nonferrous Metal Group and Zhongse (Ningxia) Oriental Group [20][21]. - The issuance will require approval from the State-owned Assets Supervision and Administration Commission, the shareholders' meeting, Shenzhen Stock Exchange, and the China Securities Regulatory Commission [30]. Group 2: Use of Proceeds - The total investment for the projects funded by the issuance is RMB 137.358 million, with RMB 120 million expected to be raised [25][26]. - The funds will be allocated to three main projects, including the construction of a hydrometallurgical digital factory and upgrades to existing production lines [18][19]. Group 3: Market Context - The tantalum and niobium industry is supported by national policies, with applications in electronics, aerospace, and defense sectors, indicating a stable market demand [16][18]. - The company aims to optimize its product and market structure to meet domestic and international demand, particularly for high-temperature alloy materials [19]. Group 4: Shareholder Relations - The issuance constitutes a related party transaction, as both China Nonferrous Metal Group and Zhongse (Ningxia) Oriental Group are significant shareholders [21][28]. - The shareholding structure will remain stable post-issuance, with no expected change in control [28][29]. Group 5: Financial Implications - The issuance may lead to short-term dilution of earnings per share, but the company has measures in place to mitigate this impact [10][11]. - The company has committed to a shareholder return plan for the next three years, which has been approved by the board [11].

Financial Overview - The total assets of Ningxia Dongfang Tantalum Industry Co., Ltd. reached approximately 3.36 billion yuan at the end of the reporting period, an increase from 3.06 billion yuan at the beginning of the period, reflecting a growth of about 9.8% [1][2][3] - Total liabilities increased to approximately 635.87 million yuan from 454.18 million yuan, marking a rise of about 40.1% [2][3] - The total equity of the company rose to approximately 2.73 billion yuan from 2.61 billion yuan, indicating an increase of about 4.5% [2][3] Income Statement Highlights - The total operating revenue for the first half of 2025 was approximately 796.81 million yuan, up from 592.66 million yuan in the same period of 2024, representing a growth of about 34.4% [4][5] - Total operating costs increased to approximately 706.67 million yuan from 537.29 million yuan, which is an increase of about 31.5% [4][5] - The net profit for the first half of 2025 was approximately 145.16 million yuan, compared to 112.61 million yuan in the same period of 2024, reflecting a growth of about 28.9% [4][5] Cash Flow Analysis - The net cash flow from operating activities was negative at approximately -59.64 million yuan, an improvement from -200.19 million yuan in the previous year [5][6] - Cash inflows from operating activities totaled approximately 587.75 million yuan, while cash outflows were about 647.39 million yuan [5][6] - The net cash flow from investing activities was approximately -53.81 million yuan, compared to -64.53 million yuan in the previous year, indicating a reduction in cash outflow [5][6] Balance Sheet Details - Current assets totaled approximately 1.65 billion yuan, up from 1.55 billion yuan, reflecting an increase of about 6.5% [1][2] - Non-current assets increased to approximately 1.71 billion yuan from 1.51 billion yuan, marking a growth of about 12.6% [1][2] - The company's cash and cash equivalents at the end of the reporting period were approximately 395.81 million yuan, down from 502.74 million yuan at the beginning of the period [5][6]

Core Viewpoint - Ningxia Orient Tantalum Industry Co., Ltd. reported a significant increase in revenue and net profit for the first half of 2025, driven by market expansion and product structure adjustments, despite facing challenges in cash flow and rising costs [1][2]. Company Overview and Financial Indicators - The company is primarily engaged in the research, production, and sales of rare metals such as tantalum and niobium, with a strong market position and competitive advantages [3]. - The total revenue for the reporting period was approximately 796.81 million yuan, representing a 34.45% increase compared to the same period last year [2]. - The net profit attributable to shareholders was approximately 137.60 million yuan, a 34.93% increase year-on-year [2]. - Basic earnings per share increased by 30.00% to 0.2886 yuan [2]. Business Operations - The company focuses on the production of tantalum and niobium products, which are widely used in various industries including electronics, aerospace, and energy [3]. - The company maintains strong relationships with international manufacturers, enhancing its market presence [3]. Financial Performance Analysis - Operating income increased due to market expansion and product structure adjustments, with operating costs rising by 36.02% to approximately 649.63 million yuan [4]. - Sales expenses surged by 158.11%, attributed to increased packaging and service costs [4]. - The net cash flow from operating activities improved significantly, showing a 70.21% reduction in cash outflow compared to the previous year [4]. Competitive Advantages - The company has established a strong brand presence and technical expertise in the tantalum and niobium industry, supported by a robust research and development framework [3]. - It has received numerous awards and recognitions, solidifying its reputation in the market [3]. Market and Sales Analysis - Domestic sales accounted for approximately 64.71% of total revenue, while international sales contributed 35.29%, reflecting a balanced market approach [4]. - The company’s product mix includes a significant increase in titanium and titanium alloy products, which saw a 154.69% rise in revenue [4].

Group 1 - The company held its 22nd meeting of the 9th Board of Directors on June 16, 2025, with all members ensuring the accuracy and completeness of the disclosed information [1] - The Board approved the issuance of A-shares to specific investors, confirming compliance with relevant laws and regulations [1][2] - The issuance will involve no more than 35 specific investors, including China Nonferrous Metal Mining Group Co., Ltd. and China Nonferrous Metal (Ningxia) Oriental Group Co., Ltd. [2][3] Group 2 - The shares will be issued at a price not lower than 80% of the average trading price over the previous 20 trading days [3][4] - The total amount raised from this issuance will not exceed RMB 1.2 billion, with funds allocated to three projects and working capital [5] - The maximum number of shares to be issued is capped at 151,490,478 shares [5] Group 3 - The company plans to use the raised funds for the construction of a digital hydrometallurgy factory, the renovation of a smelting production line, and the establishment of a high-end product production line [5] - The company will utilize self-raised funds for initial investments in these projects before the raised funds are available [5] Group 4 - After the issuance, if the shareholding of China Nonferrous Group and China Nonferrous Oriental Group increases by no more than 2%, the shares will be locked for 18 months; if the increase exceeds 2%, the lock-up period extends to 36 months [7][11][12] - The shares will be listed on the Shenzhen Stock Exchange [8] Group 5 - The Board authorized the management to handle all matters related to the issuance, including the establishment of a special account for the raised funds [14][15] - The company will hold a shareholders' meeting to discuss and vote on the issuance plan [16]

Core Viewpoint - The company has established a three-year shareholder return plan for 2025-2027 to enhance its dividend decision-making and regulatory mechanisms, ensuring a stable and transparent return to shareholders [1] Group 1: Factors Considered in the Shareholder Return Plan - The plan considers long-term sustainable development, analyzing operational performance, shareholder expectations, social capital costs, and external financing environments [1] - The company aims to create a systematic arrangement for profit distribution to maintain continuity and stability in its profit distribution policy [1] Group 2: Principles for Formulating the Shareholder Return Plan - The formulation of the plan adheres to relevant laws and regulations, balancing shareholder returns with the company's long-term development [2] - The profit distribution policy emphasizes reasonable returns to investors, ensuring continuity and stability [2] Group 3: Profit Distribution Policy - The company will distribute profits through cash, stock, or a combination of both, prioritizing cash dividends when operational and financial conditions allow [2] - Cash dividends will only be implemented if the company is profitable, has positive retained earnings, and meets specific financial conditions [2][3] Group 4: Conditions for Cash Dividends - Cash dividends are contingent upon the company achieving profitability, having sufficient retained earnings, and not having significant investment plans or cash expenditures exceeding 30% of the latest audited net assets [3] - The company plans to distribute cash dividends at least once a year, with a minimum of 10% of the current year's distributable profits or 30% of the average annual distributable profits over the last three years [3] Group 5: Differentiated Cash Dividend Policy - The board will consider industry characteristics, development stages, and significant capital expenditures to propose a differentiated cash dividend policy [3][4] - The minimum cash dividend proportions are set at 80%, 40%, and 20% for different scenarios [4] Group 6: Conditions for Stock Dividends - Stock dividends may be issued when revenue grows rapidly, and the board believes the stock price does not align with the capital structure, provided cash dividends are also distributed [4] Group 7: Protection of Public Investors - The company will deduct cash dividends from shareholders who have misappropriated company funds to repay the occupied amounts [4] Group 8: Profit Distribution Decision Mechanism - The board must discuss profit distribution plans with independent directors and obtain a two-thirds majority approval from the board and independent directors before presenting to the shareholders' meeting [4][5] Group 9: Communication with Shareholders - The company will actively communicate with shareholders, especially minority shareholders, to gather feedback on cash dividend proposals [5] Group 10: Adjustments to Profit Distribution Policy - Any modifications to the profit distribution policy must comply with laws and regulations and require approval from the shareholders' meeting [5] Group 11: Other Matters - The plan will be executed in accordance with relevant laws and regulations, with the board responsible for its interpretation [5]

Group 1 - Key Point 1: Major project construction is viewed as a "ballast stone" for stabilizing economic operations and a "strong engine" for driving economic growth [1] - Key Point 2: The tax authorities in Hotan region are enhancing intelligent, refined, and personalized tax services to support major project construction [1] Group 2 - Key Point 1: Xinjiang Kunlun Blue Diamond Lithium Industry Co., Ltd. was established in 2023 to develop a comprehensive smelting project for rare metal resources [2] - Key Point 2: The company faces significant financial pressure due to high investment costs and long production cycles in photovoltaic projects [2] - Key Point 3: The Hotan tax bureau provided targeted support, including tax reductions and risk prevention guidance, which alleviated the company's financial pressure [2] Group 3 - Key Point 1: The construction project in Minfeng County has a total investment of 132 million yuan and is expected to generate an annual output value of 170 million yuan upon completion [3] - Key Point 2: The Hotan tax bureau established a special guidance team to assist with tax registration, invoice management, and tax declaration throughout the project [3] - Key Point 3: The tax bureau aims to optimize services by implementing a mechanism for precise policy delivery, dynamic risk prevention, and rapid response to demands [3]