NFC(000758)2025-01-06 09:30Group 1: Company Overview - China Nonferrous Metal Construction Co., Ltd. (中色股份) was established in 1983 and listed on the Shenzhen Stock Exchange in 1997, evolving from a foreign engineering contracting company to a comprehensive international nonferrous metal enterprise covering the entire industry chain [2][3]. - The company has established a broad international engineering contracting business, primarily centered in Central Asia (Kazakhstan) and Southeast Asia (Indonesia), as well as surrounding countries in China [2][3]. Group 2: Business Distribution - As of the first half of 2024, the company's revenue composition by region shows that domestic business accounts for 49.85%, a year-on-year decrease of 11.51%, while overseas business accounts for 50.15%, a year-on-year increase of 84.13% [2][3]. Group 3: Resource Development - The company holds mining rights for five mines and four exploration rights, with total metal resources amounting to 3.8 million tons of zinc and 1.73 million tons of lead as of December 31, 2023 [2][3]. - The company’s ongoing projects involve metals such as copper, aluminum, and zinc, with significant projects including the copper selection and smelting plant in Indonesia [3]. Group 4: Financial Performance - The gross profit margin for the engineering contracting business is subject to fluctuations, influenced by project complexity and service content. The gross margin for the engineering segment decreased in the first half of 2024 compared to the same period in 2023 [3]. Group 5: International Risks and Management - The company faces international operational risks due to political and economic factors, including trade restrictions and currency fluctuations. It employs strategies such as cost control, price adjustments based on exchange rates, and financial tools to hedge against foreign exchange risks [3]. Group 6: Project Examples - The company successfully developed the Tumuertin-Aobao zinc mine in Mongolia through an "engineering for resources" model, which has been recognized as a successful collaboration model by the former President of Mongolia. The project has produced over 90,000 tons of zinc metal since its completion in 2005 [4].