> **来源：[研报客](https://pc.yanbaoke.cn)** # 2022 Annual Report Summary ## Core Content This annual report provides an overview of the financial performance and operational status of the Group for the year ended 31 December 2022. It outlines the company's core values, vision, and mission, while detailing the business strategies, market conditions, and financial results. ## Main Points ### Corporate Information - The Company has been listed on the Hong Kong Stock Exchange since 8 October 2009. - The Group is primarily engaged in mining and ore processing, sale of self-produced products, trading of steels, mining facilities management, and strategic investments. - The Group owns one ordinary iron ore mine (Maoling-Yanglongshan Mine), one gypsum mine (Shigou Gypsum Mine), and one processing plant (Maoling Processing Plant), all located in Sichuan, China. - As of 31 December 2022, the total number of issued shares was 2,249,015,410. ### Board of Directors - **Non-executive Director**: Teh Wing Kwan (Chairman) - **Executive Directors**: Jiang Zhong Ping (resigned on 13 July 2022), Hao Xiemin (appointed as acting CEO on 13 July 2022), Wang Hu - **Independent Non-executive Directors**: Yu Haizong, Liu Yi, Wu Wen - **Audit Committee**: Yu Haizong (Chairman), Liu Yi, Wu Wen - **Remuneration Committee**: Liu Yi (Chairman), Jiang Zhong Ping (ceased to be a member on 13 July 2022), Yu Haizong, Wang Hu (appointed on 13 July 2022) - **Nomination Committee**: Teh Wing Kwan (Chairman), Jiang Zhong Ping (ceased to be a member on 13 July 2022), Yu Haizong, Liu Yi, Wu Wen - **Company Secretary**: Chong Eng Wee - **Authorised Representatives**: Wang Hu (appointed on 13 July 2022), Chong Eng Wee ### Corporate Governance - The Group is registered in the Cayman Islands with its principal place of business in Hong Kong. - Legal advisors for Hong Kong law: MinterEllison LLP - Legal advisors for Cayman Islands law: Conyers Dill & Pearman - Investor relations consultant: Cornerstones Communications Ltd. - Auditor: Ernst & Young - Website: www.chinavtmmining.com - Stock Code: 00893 - Share Information: Board lot size is 1,000 shares - Financial Year: 1 January to 31 December ## Key Information ### Vision and Mission - **Vision**: To explore exceptional potential in mining, with the slogan "中國鐵鈇，太（鈇）不平凡（鈎)" - **Mission**: To reward shareholders and care for the community ### Core Values - **Integrity**: Commitment to honesty and ethical practices - **Exploration**: Focus on discovering new opportunities - **Responsibility**: Upholding a sense of duty and accountability ### Financial Highlights - **Revenue**: Increased by 1.6% to approximately RMB725.9 million in FY2022, compared to RMB714.8 million in FY2021. - **Gross Profit Margin**: Maintained relatively stable at 3.5%. - **Operating Profit**: Net operating profit after tax from the Remaining Group was RMB1,038,000, up by 5.7% from FY2021. - **Facility Management**: The reorganised facilities management unit recorded its maiden profit of RMB8.0 million for the nine months ended 31 December 2022. ### Operational Overview - The Group faced significant challenges due to supply chain disruptions, geopolitical tensions, and weak demand. - The Maoling-Yanglongshan Mine experienced temporary suspensions due to natural disasters, power restrictions, and the resurgence of the pandemic. - The Group initiated preliminary engineering works for mine expansion, which affected production cycles. - The Group's average selling prices for high-grade iron concentrates and steel products fell substantially due to weak market sentiment. ### Market Review - The global economy faced immense challenges in 2022, including record-high inflation, global energy price surges, and the impact of the Russo-Ukrainian War. - China's GDP growth in 2022 was 2.9% year-on-year, which was the second slowest growth in decades. - The Chinese Purchasing Manager's Index (PMI) remained below the 50.0 threshold for much of 2022, indicating contraction in the manufacturing sector. - The China Iron Ore Price Index showed a continuous slump since March 2022, with a new low reached in October 2022. - Steel prices also experienced fluctuations, with a notable drop in July 2022, and remained low throughout the year. ### Business Risks and Uncertainties - The Group operates in a highly dynamic macro business environment, where any adverse change in market conditions may affect its businesses. - Unfavourable price fluctuations of iron concentrates, lower-than-expected capacity utilisation, and negative market sentiment due to geopolitical tensions and the pandemic may lead to re-assessment of intangible assets. - Changes in government policies, laws, and regulations in the PRC may affect the Group's operations and increase compliance costs. - Significant changes in credit risk policies may require additional time and effort in negotiating with financial institutions. - Delays in implementing growth and transformational strategies or deviation from original business plans may impact operations and financial results. ### Financial Review | Item | FY2022 (RMB'000) | FY2021 (RMB'000) | Variance (%) | |------|------------------|------------------|---------------| | Revenue | 725,869 | 714,760 | 1.6 | | Cost of sales | (700,591) | (690,098) | 1.5 | | Gross profit | 25,278 | 24,662 | 2.5 | | Other income and gain | 8,371 | 3,888 | 115.3 | | Selling and distribution expenses | (904) | (373) | 142.4 | | Administrative expenses | (21,592) | (19,003) | 13.6 | | Other expenses | (4,198) | (2,288) | 83.5 | | Reversal of impairment losses, net | 4,528 | 4,130 | 9.6 | | Finance costs | (5,965) | (5,393) | 10.6 | | Operating profit before tax from the Remaining Group | 5,518 | 5,623 | -1.9 | | Income tax expenses | (4,480) | (4,641) | -3.5 | | Operating profit after tax from the Remaining Group | 1,038 | 982 | 5.7 | ## Conclusion The Group has navigated through a challenging year marked by economic uncertainty, market volatility, and operational disruptions. Despite these challenges, the Group managed to maintain profitability in its core operations and recorded its first profit from the facilities management segment. The Group remains committed to its long-term strategies, including expanding high-grade iron ore production and enhancing operational efficiency. The financial results for FY2022 reflect resilience and strategic adjustments in a difficult macroeconomic environment.