Investment Rating - The report maintains a "Recommended" rating for the company, considering the current upward trend in precious metal prices [4][6]. Core Insights - The company reported a revenue of 906 million yuan in the first half of 2025, a year-on-year increase of 6.34%, but the net profit attributable to shareholders decreased by 15.03% to 70 million yuan [1]. - The increase in metal prices has led to a rise in gross margins, but the net profit margin has declined due to increased taxes and fees [2][3]. - The company is expected to see significant profit growth in the coming years, with projected net profits of 496 million yuan in 2025, 870 million yuan in 2026, and 1.415 billion yuan in 2027 [5]. Revenue and Profit Analysis - In Q2 2025, the company achieved a revenue of 554 million yuan, a decrease of 5.99% year-on-year but an increase of 57.01% quarter-on-quarter [1]. - The gross profit from silver-lead and silver-zinc concentrates increased by 49.34% and 34.27% respectively, with overall gross margin rising to 44.02% [2]. - The main reason for the decline in net profit is attributed to a 119% increase in taxes and additional charges, amounting to approximately 46 million yuan [3]. Future Production and Growth Potential - The company is progressing well with its existing mines, with the Caiyuanzi copper-gold mine expected to enter trial production between July and September 2025, potentially yielding about 1 ton of gold annually [4]. - The company anticipates a significant increase in revenue and profit over the next few years, driven by the ongoing development of its mining projects and favorable market conditions for precious metals [4][5].