2025-04-25-港交所-中国铁钛_2024年报_263页_4mb

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.

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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

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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	-

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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.

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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.

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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.

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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

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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

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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.