> **来源：[研报客](https://pc.yanbaoke.cn)** # 2024 Annual Report Summary ## Core Content This summary provides an overview of the **2024 Annual Report** of the Group, highlighting its **business operations**, **financial performance**, **strategic direction**, and **organizational structure**. The report reflects the Group's focus on **inclusiveness and adaptability**, with a mission to be a **top-notch enterprise** and a vision to **explore exceptional potential in mining**. --- ## Main Business and Operations ### Mines The Group operates two mines and one processing plant in **Sichuan Province, China**: - **Maoling-Yanglongshan Mine** - **Location**: Wenchuan County, Sichuan - **Mining Area**: 2.7366 sq.km. - **Resource Type**: Ordinary magnetite - **Resource as of 1 January 2025**: 90.30 Mt - **Average Grade**: 24.32% TFe - **Mining Method**: Underground mining - **Shigou Gypsum Mine** - **Location**: Hanyuan County, Sichuan - **Mining Area**: 0.1228 sq.km. - **Resource Type**: Gypsum - **Resource as of 1 January 2025**: 10.37 Mt (Types 331 and 333) - **Average Grade**: 90.64% (Gypsum + Anhydrite) - **Mining Method**: Underground mining - **Maoling Processing Plant** - **Location**: Near the Maoling-Yanglongshan Mine - **Capacity**: High-grade iron concentrates: 150.0 Ktpa ### Key Business Activities - Mining and ore processing - Sale of self-produced products - Trading of steels - Mining facilities management - Management of strategic investments --- ## Financial Highlights | Financial Item | FY2024 (RMB'000) | FY2023 (RMB'000) | |----------------|------------------|------------------| | Revenue | - | - | | Gross Profit | - | - | | Profit/(Loss) | -20,700 | +9,700 | | Equity attributable to owners | - | - | | Net Operating Cash Flows | +26,200 | - | --- ## Key Financial Performance - **High-grade iron concentrates**: - Production volume decreased by **44.9%** to **62.7 Kt** in FY2024. - Sales volume decreased by **48.3%** to **58.8 Kt** in FY2024. - **Steels trading volume**: Decreased by **23.5%** to **148.9 Kt** in FY2024. - **Average selling price for high-grade iron concentrates**: Increased by **12.6%**. - **Average selling price for steels**: Decreased by **8.5%**. - **Gross margin**: Declined, resulting in a **gross profit of RMB14.2 million** for FY2024. - **Administrative expenses**: Decreased to **RMB19.1 million** (FY2023: RMB21.8 million). - **Non-cash impairment losses**: Recorded **RMB13.8 million** due to the **temporary suspension** of operations at the Maoling-Yanglongshan Mine from **July to November 2024**. --- ## Chairman's Statement ### Overview of Market Conditions - **Global Economic Recovery**: Continued gradually, with **GDP growth projected at ~2.7%** for 2025 and 2026. - **China's Economic Performance**: - **GDP growth of 5.0%** in 2024, with a **4Q2024 increase to 5.4%**. - Projected to moderate to **4.5% in 2025** due to evolving consumption patterns, financial market adjustments, and demographic changes. - **Steel Industry**: - Global crude steel production: **1,882.6 million tonnes** (down **0.8%** year-on-year). - China's crude steel production: **1,005.1 million tonnes** (down **1.7%** year-on-year). - Steel consumption: **863 million tonnes** (down **4.4%** year-on-year). - Steel exports remained strong, reaching the **highest levels since 2015**. - **Iron Ore Market**: - Price volatility throughout the year. - Iron Ore Price Index peaked at **1,138.5** in January 2024, then fell to **765.9** in September 2024, and rebounded to **845.7** by year-end. ### Outlook and Strategies - The Group expects **slower recovery** and **more measured expansion** in the coming years. - **Facility management services** are expected to play a **key role in diversifying revenue streams**. - The Group plans to **enhance service scopes**, **extend its value chain**, and **forge strategic collaborations**. - The **steel sector PMI** was **47.5** in December 2024, indicating **weaker performance** than the broader manufacturing sector. --- ## Business Risks and Uncertainties - **Dynamic macroeconomic environment**: Market conditions for iron concentrate sales and steel trading may significantly impact the Group's operations. - **Price fluctuations and market sentiment**: Iron concentrate prices and steel trading sentiment are influenced by **geopolitical tensions**, **demand changes**, and **capacity utilisation rates**. - **Potential impairment losses**: Due to **reduced value-in-use** and **lower economic returns**, the Group may face further **valuation re-assessments** of intangible assets related to **exploration and mining rights**. --- ## Organizational Structure ### Board of Directors - **Non-executive Director**: Mr. Teh Wing Kwan (Chairman) - **Executive Directors**: Mr. Hao Xiemin (CEO), Mr. Wang Hu - **Independent Non-executive Directors**: Mr. Yu Haizong, Mr. Liu Yi, Mr. Wu Wen, Mdm. Tang Guoqiong (appointed w.e.f. 31 December 2024) ### Committees - **Audit Committee**: Mr. Yu Haizong (Chairman), Mr. Liu Yi, Mr. Wu Wen, Mdm. Tang Guoqiong - **Remuneration Committee**: Mr. Liu Yi (Chairman), Mr. Yu Haizong, Mr. Wang Hu, Mdm. Tang Guoqiong - **Nomination Committee**: Mr. Teh Wing Kwan (Chairman), Mr. Yu Haizong, Mr. Liu Yi, Mr. Wu Wen, Mdm. Tang Guoqiong ### Company Secretary - **Mr. Leung Ming Shan, John Bosco** (appointed w.e.f. 10 March 2025) ### Authorised Representatives - **Mr. Wang Hu** - **Mr. Leung Ming Shan, John Bosco** (appointed w.e.f. 10 March 2025) ### Registered Office - **Cricket Square, Hutchins Drive, P.O.Box 2681, Grand Cayman, KY1-1111, Cayman Islands** ### Principal Place of Business in Hong Kong - **Suite 3201, 32/F, Alexandra House, 18 Chater Road, Central, Hong Kong** (w.e.f. 10 March 2025) ### Principal Share Registrar and Transfer Agent - **Suntera (Cayman) Limited**, **Camana Bay, Grand Cayman, KY1-1110, Cayman Islands** ### Legal Advisors - **Hong Kong**: Llinks Law Offices LLP, Suite 3201, 32/F, Alexandra House, 18 Chater Road, Central, Hong Kong - **Cayman Islands**: Conyers Dill & Pearman, 29th Floor, One Exchange Square, 8 Connaught Place, Central, Hong Kong ### Investor Relations Consultant - **Cornerstones Communications Ltd.**, Office 8105, 10/F, YF Life Tower, 33 Lockhart Road, Wanchai, Hong Kong - Email: **ir@chinavtmmining.com** ### Competent Person - **BAW Mineral Partners Limited**, Room 1603, Mega Trade Centre, 1 Mei Wan Street, Tsuen Wan, Hong Kong ### Website - **www.chinavtmmining.com** ### Stock Code - **00893** ### Share Information - **Board lot size**: 1,000 - **Financial Year**: 1 January to 31 December --- ## Summary of Financial Performance - **Net Loss for FY2024**: RMB20.7 million - **Net Profit for FY2023**: RMB9.7 million - **Facility Management Revenue**: RMB20.5 million (FY2023: RMB19.5 million) - **Maiden Profit from Joint Ventures**: RMB1.7 million - **Non-cash Impairment Losses**: RMB13.8 million --- ## Conclusion The Group faced **significant operational and financial challenges** in FY2024, primarily due to the **temporary suspension** at the Maoling-Yanglongshan Mine and **market uncertainties**. Despite these, the Group managed to **expand its facility management services**, contributing positively to **revenue and cash flow**. Looking ahead, the Group is focusing on **strategic collaborations**, **service diversification**, and **measured business expansion** to navigate the **complex and uncertain economic environment**.