Company Overview - Northern Copper Industry Co., Ltd. is located in Yuan City, Shanxi Province, established on April 2, 1996, and listed on April 28, 1997. The company specializes in copper mining, smelting, and processing, with a revenue composition of 73.68% from cathode copper, 19.74% from precious metals, 4.93% from copper strips and rolled copper foil, and 0.85% from other products [2][3]. Stock Performance - As of September 12, Northern Copper's stock reached a peak of 13.63 CNY per share, with a trading volume of 6.51 billion CNY and a turnover rate of 2.56%, resulting in a total market capitalization of 259.61 billion CNY [1]. - The stock has increased by 77.24% year-to-date, with a 12.37% rise over the last five trading days, 15.02% over the last 20 days, and 55.59% over the last 60 days [1]. Capital Flow - The net inflow of main funds was 1.40 billion CNY, with large orders accounting for 43.02% of total purchases and 17.17% of total sales. The large orders bought 1.06 billion CNY, representing 16.28% of total purchases, while sales accounted for 20.67% [1]. Financial Performance - For the first half of 2025, Northern Copper achieved a revenue of 12.811 billion CNY, reflecting a year-on-year growth of 3.13%, and a net profit attributable to shareholders of 487 million CNY, up by 5.87% [2]. Shareholder Information - As of August 29, the number of shareholders increased to 122,500, with an average of 15,552 shares per person, a slight decrease of 0.03% [2]. - The company has distributed a total of 601 million CNY in dividends since its A-share listing, with 387 million CNY distributed in the last three years [3]. Institutional Holdings - As of June 30, 2025, Hong Kong Central Clearing Limited was the seventh-largest circulating shareholder with 11.309 million shares, a decrease of 13.578 million shares from the previous period. The Southern CSI 1000 ETF entered as the eighth-largest shareholder with 8.796 million shares [3].

Core Viewpoint - Northern Copper Industry has demonstrated resilience and strength in a complex market environment, achieving significant revenue and profit growth in the first half of 2025 [1][3]. Financial Performance - The company reported operating revenue of 12.811 billion yuan, an increase of 2.81% year-on-year [1]. - Net profit attributable to shareholders reached 487 million yuan, reflecting a year-on-year growth of 5.85% [1]. Product Structure - The main product, cathode copper, generated revenue of 9.439 billion yuan, a decrease of 7.85% due to copper price fluctuations [3]. - Precious metals business revenue surged to 2.529 billion yuan, marking a significant year-on-year increase of 52.04%, accounting for 19.74% of total revenue [3]. - Sulfuric acid business revenue reached 102 million yuan, up 197.33% year-on-year [3]. - Revenue from copper strips and rolled copper foil amounted to 632 million yuan, reflecting a year-on-year growth of 52.59% [3]. Resource Advantages - Northern Copper Industry possesses a large underground mine with an annual processing capacity of 9 million tons [4]. - The copper mine has a resource reserve of 218.6092 million tons and a copper metal reserve of 1.330925 million tons, with an average geological grade of 0.608% [4]. - The company can sustain its mining operations for over 20 years at the current extraction scale [4]. - In 2024, gold sales reached 6,319 kilograms, generating revenue of 3.56 billion yuan, which constituted 14.77% of total revenue [4]. - The company plans to produce 6 tons of gold ingots in 2025, with precious metals expected to contribute around 13% to total revenue [4]. Technological Innovation - The company increased R&D investment to 26.463 million yuan, a year-on-year growth of 48.60% [5]. - Advanced smelting processes have been implemented to ensure safe and stable production while maximizing the recovery of valuable elements [5]. - The company aims to focus on high-end, high-value-added products and is advancing digital transformation in traditional industries [5]. - The high-performance rolled copper strip and copper-clad laminate project is currently in trial production, expected to positively impact financial metrics as production processes improve [5].

Core Viewpoint - Northern Copper achieved significant revenue growth in 2024, but its profitability did not improve correspondingly, indicating challenges in cost control and debt management [2][12]. Financial Overview - Total revenue reached 24.107 billion yuan, a year-on-year increase of 156.6%, while net profit attributable to shareholders was 613 million yuan, a decrease of 1.37% [2]. - In Q4, total revenue was 5.931 billion yuan, up 145.35% year-on-year, but net profit fell to 66.29 million yuan, down 34.81% [3]. Revenue Composition - Main revenue sources included cathode copper at 19.278 billion yuan (79.97% of total revenue) with a gross margin of 7.78%, and precious metals at 3.715 billion yuan (15.41%) with a gross margin of 7.71% [5]. Cash Flow and Debt Situation - The ratio of cash and cash equivalents to current liabilities was only 24.45%, and the ratio of interest-bearing debt to average operating cash flow over the past three years was 21.92%, indicating significant debt pressure [6]. Profitability and Cost Control - Despite revenue growth, gross margin and net margin decreased by 51.23% and 61.56%, respectively, highlighting challenges in cost management [7]. - The gross margin for sulfuric acid products was -63.62%, negatively impacting overall profitability [7]. Key Financial Metrics - Gross margin: 7.12%, down 51.23% year-on-year - Net margin: 2.54%, down 61.56% year-on-year - Earnings per share: 0.35 yuan, down 1.42% year-on-year [10].