Group 1: Resource and Mining Operations - The company prioritizes resource strategy, aiming to build a globally competitive non-ferrous metal industry chain, with significant holdings in major lead-zinc-silver mines in Asia [1] - As of the end of 2024, the company holds metal resources of 7.13 million tons of zinc, 3.66 million tons of lead, 143,000 tons of copper, 6,607 tons of silver, 90 tons of gold, 92,400 tons of nickel, 717 tons of gallium, 240 tons of germanium, and 16,500 tons of tungsten [1] Group 2: New Materials Sector - The company has entered the high-end new materials sector through internal innovation and external acquisitions, focusing on advanced materials such as high-performance powder materials and energy storage materials [2] - In 2023, the company acquired a leading domestic enterprise in thermal bimetals, rapidly entering the high-end composite metal materials market [2] Group 3: Future Development Strategy - The company adopts a "one body, two wings" strategy, focusing on mastering rich metal resources and developing deep processing industries for various metals and new materials [3] - The strategy emphasizes both external and internal development, aiming to enhance industrial chain layout and optimize product structure for high-quality growth [3] Group 4: Financial Performance (H1 2025) - In the first half of 2025, the company achieved a revenue of 31.089 billion yuan, a year-on-year increase of 1.54%, and a net profit of 559 million yuan, up 3.12% [4] - The company produced 125,400 tons of lead-zinc metal from its mining operations and 447,800 tons of copper-lead-zinc products from its smelting operations during the same period [4]

Group 1: Company Performance - In the first half of 2025, the company achieved an operating income of 31.089 billion yuan, a year-on-year increase of 1.54% [1] - The net profit attributable to shareholders was 559 million yuan, reflecting a year-on-year growth of 3.12% [1] - The company produced 125,400 tons of refined lead and zinc metals, with domestic mines contributing 76,000 tons [1] Group 2: Stock Issuance and Financial Strategy - The company plans to issue A-shares to raise no more than 1.5 billion yuan, aimed at supplementing working capital and repaying bank loans [2] - The funding from the controlling shareholder, Guangsheng Holdings Group, is expected to help reduce the asset-liability ratio and alleviate financial pressure [2] - The issuance is pending approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission, with uncertain timelines for approval [2] Group 3: Resource and Exploration Activities - The company prioritizes resource strategy, aiming to build a globally competitive non-ferrous metal industry chain [3] - As of the end of 2024, the company holds metal resources of 7.13 million tons of zinc, 3.66 million tons of lead, and 1.43 million tons of copper [3] - The company has successfully acquired several mining rights in Guangdong Province, enhancing its resource development capabilities [3] Group 4: New Materials Sector - The company has entered the high-end new materials sector through innovation and acquisitions, focusing on advanced materials [4] - Its subsidiary, Zhongjin Technology, specializes in high-performance powder materials and has received multiple national awards [4] - In 2023, the company acquired a leading domestic enterprise in the thermal bimetal sector, furthering its capabilities in composite metal materials [5]

Resource and Exploration - As of the end of 2024, the company holds metal resources of 7.13 million tons of zinc, 3.66 million tons of lead, 1.43 million tons of copper, 6,607 tons of silver, 90 tons of gold, 92,400 tons of nickel, 717 tons of gallium, 240 tons of germanium, and 16,500 tons of tungsten [1] - In 2024, the company added 1.5145 million tons of lead, zinc, and copper resources, along with 24 tons of gold and 10,000 tons of tungsten through exploration and mining rights acquisition [1] - Significant breakthroughs in exploration include 141,800 tons of lead and zinc resources and 67 tons of silver at the Fankou lead-zinc mine, and 32,000 tons of lead and zinc at the Panlong lead-zinc mine [1][2] Production and Financial Performance - In 2024, the company achieved a revenue of 59.812 billion CNY and a net profit of 1.082 billion CNY, marking a year-on-year increase of 57.30% [3] - In Q1 2025, the company reported a revenue of 16.072 billion CNY and a net profit of 273 million CNY [3] - The company plans to produce 251,700 tons of lead and zinc metals in 2025, including 71,000 tons of lead and 180,700 tons of zinc [4] New Materials Sector - The company has successfully entered the high-end new materials sector, focusing on advanced materials and holding multiple patents and awards [5][6] - In 2023, the company acquired a leading domestic enterprise in the field of thermal bimetals, enhancing its position in high-end composite metal materials [6] Strategic Planning - The company aims to build a world-class production and management system in the non-ferrous metals sector, focusing on copper, lead, and zinc [7] - Future strategies include enhancing traditional industries' high-end, intelligent, and green transformation, and expanding into strategic emerging industries like new materials and advanced manufacturing [7]

Core Viewpoint - Shenzhen Zhongjin Lingnan Nonfemet Company maintains a stable credit rating of AA+ based on its strong resource reserves, operational advantages, and improved debt repayment indicators, despite facing challenges from fluctuating metal prices and rising inventory costs [2][4][9]. Financial Overview - Total assets increased from 326.57 billion in 2022 to 484.78 billion in 2025 [7]. - Owner's equity rose from 152.95 billion in 2022 to 178.73 billion in 2025 [7]. - Total liabilities increased from 173.62 billion in 2022 to 306.06 billion in 2025 [7]. - Total revenue decreased from 656.47 billion in 2023 to 598.62 billion in 2024, with a net profit of 13.21 billion in 2024 [7][31]. - The operating cash flow showed a decline, with a net cash flow of -2.82 billion in the first quarter of 2025 [7]. Industry Context - The nonferrous metal industry is cyclical and closely tied to global economic conditions, with significant price volatility impacting profitability [11]. - The lead and zinc market is expected to face supply pressures in 2025, with potential price declines due to increased production and changing consumption patterns [12][13]. - Copper prices are projected to rise in 2025, supported by domestic demand, although processing fees are under pressure [15][31]. Company Strengths - The company has rich lead and zinc resource reserves and a complete industrial chain, with significant scale and technical advantages in smelting operations [9][11]. - The company benefits from strong external support from its state-owned parent company, enhancing its operational stability [11][16]. - The company is actively expanding its new materials segment, which is expected to contribute to future growth [19][31]. Risks and Challenges - The company faces challenges from declining processing fees and rising inventory costs, which could pressure profit margins [4][9][26]. - The ongoing construction of new projects may require significant capital expenditures, impacting liquidity [30][31]. - The company must navigate the uncertainties in global economic conditions and commodity prices, which could affect its financial performance [11][12].

Core Viewpoint - The new materials industry in Shenzhen is emerging as a significant player in the technological revolution and industrial transformation, with Shenzhen Zhongjin Lingnan Nonfemet Company Limited's subsidiary, Zhongjin Technology, leading the way through innovation and industry expertise [1][2]. Group 1: Company Overview - Zhongjin Technology is a key member of the Guangsheng Holding Group, focusing on advanced materials in the non-ferrous metal sector and addressing critical technological challenges [2]. - The company has established itself as a leader in high-performance powder materials, battery storage materials, and composite metal materials, achieving significant market share in various segments [2][3]. Group 2: Product Development - Zhongjin Technology's star product, the mercury-free zinc alloy for alkaline zinc-manganese batteries, has captured over 50% of the domestic market, ranking first in China and among the top three globally [2]. - The company also maintains strong production and sales volumes in other key products such as thermal bimetals and punched nickel-plated steel strips, solidifying its leadership position in the industry [2]. Group 3: Quality and Management - The company emphasizes quality as its lifeline, implementing a "three precision management" model focused on organizational efficiency, detailed management, and lean operations [4]. - Zhongjin Technology has achieved multiple certifications, including ISO quality management and environmental management, reinforcing its commitment to high standards and innovation [4]. Group 4: Future Development - The company plans to continue its commitment to the FAITH management philosophy, focusing on innovation, quality, and a collaborative development model to enhance its core competitiveness [7]. - Zhongjin Technology aims to evolve into a world-class new materials manufacturer characterized by outstanding products, exceptional brands, leading innovation, and modern governance [7].