Interim Report 2014 3 Basic Information for the Report (English Translation Is for Reference
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CONTENTS Corporate Information 2 Definition 3 Basic Information for the Report 4 Operation Overview 5 Management Discussion and Analysis 9 Share Capital and Shareholders 18 Disclosure of Interests and Short Positions of the Directors and Supervisors of the Company 26 Others 27 Consolidated Balance Sheet 35 Consolidated Statement of Profit or Loss and Other Comprehensive Income 37 Consolidated Statement of Changes in Owners’ Equity 38 Consolidated Statement of Cash Flows 40 Balance Sheet 43 Statement of Profit or Loss and Other Comprehensive Income 45 Statement of Changes in Owners’ Equity 46 Statement of Cash Flows 48 Notes to Financial Statements 50 Corporate Information EXECUTIVE DIRECTORS COMPANY SECRETARY Chen Jinghe (Chairman) Fan Cheung Man Wang Jianhua (President) Qiu Xiaohua Lan Fusheng PRINCIPAL PLACE OF BUSINESS IN Zou Laichang HONG KONG Lin Hongfu Unit 7503A, Level 75, International Commerce Centre NON-EXECUTIVE DIRECTOR 1 Austin Road West, Kowloon, Hong Kong Li Jian LEGAL ADDRESS AND PRINCIPAL PLACE OF BUSINESS IN THE PRC INDEPENDENT NON-EXECUTIVE DIRECTORS 1 Zijin Road, Shanghang County, Fujian Province, Lu Shihua The PRC Ding Shida Jiang Yuzhi LEGAL CONSULTANT OF THE COMPANY Sit Hoi Wah, Kenneth (HONG KONG LAWS) AUDIT AND INTERNAL CONTROL Li & Partners COMMITTEE AUDITORS Lu Shihua Wang Jianhua (President) PRC Auditors: Qiu Xiaohua Ernst & Young Hua Ming LLP Li Jian Ding Shida HONG KONG H SHARE REGISTRAR AND Jiang Yuzhi TRANSFER OFFICE Sit Hoi Wah, Kenneth Computershare Hong Kong Investor Services Limited AUTHORISED REPRESENTATIVE Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong Chen Jinghe Lan Fusheng WEBSITE SUPERVISORS www.zjky.cn Lin Shuiqing STOCK CODE Xu Qiang Zhang Yumin Hong Kong Stock Exchange: 02899 Liu Wenhong Shanghai Stock Exchange: 601899 Fan Wensheng 2 ZIJIN MINING GROUP CO., LTD. Definition (English translation is for reference. If there is any discrepancy, Chinese version will prevail.) In this report, unless otherwise indicated in the context, the following expressions have the meanings set out below: Xinyi Zijin Xinyi Zijin Mining Company Limited, a wholly-owned subsidiary Ting River Hydropower Fujian Shanghang Ting River Hydropower Co., Ltd., an associate of the Company Minxi Xinghang Minxi Xinghang State-owned Assets Investment Company Limited, a substantial shareholder of the Company Xinjiang Ashele Xinjiang Ashele Copper Company Limited, a subsidiary of the Company Qinghai West Qinghai West Copper Mining Company Limited, a wholly-owned subsidiary of the Company Jin Jiang Mining Jin Jiang Mining Limited, a wholly-owned subsidiary of the Company Norton Norton Gold Fields Limited, a subsidiary of the Company Guizhou Zijin Guizhou Zijin Mining Company Limited, a subsidiary of the Company Zijin Copper Zijin Copper Company Limited, a wholly-owned subsidiary of the Company Makeng Mining/ Fujian Makeng Mining Company Limited, an associate of the Company Longyan Makeng Wancheng Commercial Wancheng Commercial Dongshengmiao Co., Ltd., an associate of the Company Bayannaoer Zijin Bayannaoer Zijin Non-ferrous Metals Company Limited, a subsidiary of the Company Zijin Finance Zijin Mining Group Finance Co., Ltd., a subsidiary of the Company Wuping Zijin Wuping Zijin Mining Company Limited, a subsidiary of the Company Wulatehouqi Zijin Wulatehouqi Zijin Mining Company Limited, a subsidiary of the Company Heilongjiang Duobaoshan Heilongjiang Duobaoshan Copper Company Limited, a subsidiary of the Company Zijin Yinhui Luoyang Zijin Yinhui Gold Refinery Company Limited, a subsidiary of the Company Wuqia Jinwang Wuqia County Jinwang Mining Development Company Limited, a wholly-owned subsidiary of the Company Xinjiang Jinbao Xinjiang Jinbao Mining Company Limited, a subsidiary of the Company Hebei Chongli Hebei Chongli Zijin Mining Company Limited, a subsidiary of the Company Shanxi Zijin Shanxi Zijin Mining Company Limited, a wholly-owned subsidiary of the Company ZGC JV Zeravshan LLC, a subsidiary of the Company Hunchun Zijin Hunchun Zijin Mining Company Limited, a wholly-owned subsidiary of the Company Longnan Zijin Longnan Zijin Mining Company Limited, a subsidiary of the Company NKWE NKWE Platinum Limited, an associate of the Company Bullabulling Bullabulling Gold Limited, an acquisition target of Norton Kunyu Mining Luoyang Kunyu Mining Co., Ltd., a subsidiary of the Company Tongling Zijin Tongling Zijin Mining Company Limited, a subsidiary of the Company Fuyun Jinshan Fuyun Jinshan Mining Company Limited, a subsidiary of the Company Jinhao Iron Xinjiang Aletai Jinhao Iron Company Limited, a subsidiary of the Company Fujian Zijin Investment Fujian Zijin Investment Company Limited, a wholly-owned subsidiary of the Company Liancheng Jiuxin Liancheng Jiuxin Mining Company Limited, a wholly-owned subsidiary of the Company Interim Report 2014 3 Basic Information for the Report (English translation is for reference. If there is any discrepancy, Chinese version will prevail.) The board of directors (the “Board”) of Zijin Mining Group Co., Ltd.* (the “Company”) announces the unaudited interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2014 (“this period”/the “reporting period”). This report has been reviewed and passed by the Board and the audit and internal control committee. The following unaudited consolidated financial information was prepared in accordance with China Accounting Standards for Business Enterprises (“CAS”) and the related laws and regulations. This report contains some forward looking statements and future plans of the Company, which do not constitute any actual commitment to investors. Investors are advised to exercise caution when dealing in the shares of the Company. The report is published in both Chinese and English. In the case of any discrepancies, the Chinese version shall prevail over its English version. 4 ZIJIN MINING GROUP CO., LTD. Operation Overview (English translation is for reference. If there is any discrepancy, Chinese version will prevail.) EXTERNAL BUSINESS ENVIRONMENT During the reporting period, the price of gold, which was mainly affected by the changes of the economic recovery situation in the United States and the geopolitical situation, remained low and volatile. The opening price of gold was US$1,205.7 per ounce, it reached its highest at US$1,392.3 per ounce and dropped to its lowest at US$1,203.2 per ounce. The closing price was US$1,327.35 per ounce and the average price was US$1,291.1 per ounce which represented a 15.2% decrease over the same period last year. During the reporting period, the price trends of non-ferrous metals differentiated. Copper price rebounded sharply after a drop. The opening price of copper in the London Metals Exchange (“LME”) was US$7,389 per tonne, its highest price was US$7,460 per tonne and its lowest price was US$6,321 per tonne. The closing price was US$7,014 per tonne and the average price was US$6,912 per tonne which represented a decrease of 8.3% over the same period last year. During the reporting period, having rectified from the continuous horizontal fluctuation for almost six months, the price of lead and zinc increased rapidly at the end of the second quarter. The price of zinc reached the highest for the year. The opening price of zinc in the LME was US$2,060 per tonne, its highest price was US$2,219 per tonne and its lowest price was US$1,937 per tonne. The closing price was US$2,216 per tonne and the average price was US$2,050 per tonne which represented a 5.9% increase over the same period last year. During the reporting period, the price of iron ore dropped continuously. The opening and highest domestic futures prices of iron ore were both RMB912 per tonne, its lowest price was RMB656 per tonne and the closing price was RMB694 per tonne. Its average price decreased by 12.8% over the same period last year. MANAGEMENT ANALYSIS Operation Overview During the reporting period, under the strong leadership of the Board together with the efforts of all staff of the Group and by implementing effective measures including tightening management, reducing cost and increasing production capacity, etc., the Group realized a relatively high growth rate for the production of major products, which included gold, copper, zinc and iron, etc., over the same period last year, and sharply reduced the losses from refinery and processing enterprises which led to a positive growth of the Company’s net profit attributable to owners of the parent. During the reporting period, the Group generated a turnover of RMB23.986 billion, representing a 7.7% decrease over the same period last year (same period last year: RMB25.988 billion), and realised a net profit attributable to the owners of the parent of RMB1.109 billion, representing an increase of 1.03% over the same period last year (same period last year: RMB1.098 billion). As at the end of June 2014, the Group’s total assets was RMB73.994 billion, representing a 10.61% increase over the beginning of the year (at beginning of the year: RMB66.898 billion), and net assets attributable to the owners of the parent was RMB27.069 billion, representing a 1.97% decrease as compared with the beginning of the year (at beginning of the year: RMB27.612 billion). 1. Gold Business During the reporting period, the Group produced 59,655.95kg (1,917,981.90 ounces) of gold representing a 7.17% growth over the same period last year (same period last year: 55,664.45kg). Among which the Group produced 15,611.82kg (501,931.29 ounces) of mine-produced gold representing a 6.03% growth (14,724.19kg the same period last year) over the same period last year, among which Zijinshan gold mine produced 5,021.29kg (161,438.10 ounces); Norton of Australia produced 2,517.02kg (80,924.01 ounces); Hunchun Zijin produced 966.98kg (31,089.11 ounces); Guizhou Zijin produced 880.91kg (28,321.89 ounces); Tajikistan ZGC produced 772.23kg (24,827.75 ounces); and the other gold enterprises in the Group produced 5,453.39kg (175,330.43 ounces) of mine-produced gold.