YCC(SZ:000878)2025-10-31 10:58Financial Performance - In Q3 2025, the company reported a revenue of CNY 48.83 billion, a year-on-year increase of 11.52%, while the net profit attributable to shareholders was CNY 235 million, a significant decline of 49.36% [7] - For the first three quarters of 2025, the company achieved a revenue of CNY 137.743 billion, representing a year-on-year growth of 6.73%, and a net profit of CNY 1.551 billion, up by 1.91% [7] Inventory and Production - The company holds over CNY 20 billion in inventory, which includes raw materials, work-in-progress, and finished goods necessary for continuous production [2] - The copper smelting process is continuous, leading to a significant amount of materials being in processing status, contributing to the inventory [2] Challenges and Strategic Responses - The decline in net profit is attributed to persistently low copper smelting processing fees, which have pressured the industry [3][10] - The company is implementing a "Cost Reduction 3.0" strategy to enhance operational efficiency, focusing on reducing costs and increasing the profitability of by-products such as sulfuric acid, selenium, tellurium, platinum, palladium, and rhenium [3][10] Resource Acquisition and Development - The company is actively investing in geological research and exploration to ensure resource replacement and increase reserves, with a focus on acquiring a 40% stake in Liangshan Mining [9] - The company has successfully increased its annual reserve volume for four consecutive years, exceeding the consumption of existing mines [5] Market Position and Future Outlook - The company acknowledges concerns regarding its copper reserves and stock price compared to local state-owned enterprises, emphasizing its commitment to high-quality development and resource acquisition [3] - Despite current challenges, the management remains confident in the company's long-term development and is focused on enhancing competitiveness and profitability [3][10]