The company's mid-term results in 2013 were significantly lower than we expected. The company's revenue fell 37.5% year-on-year to 426 million yuan, and the company's net profit fell 68.4% to 5.9 million yuan.

The nickel market improved in 2014 as the Chinese government shut down production of laterite nickel ore. In order to control air pollution, the government has temporarily shut down the production of nickel laterite, and we expect that the production of nickel laterite will gradually shrink in the future.

The company's output of mineral nickel and copper is expected to increase steadily with the expansion of mining capacity, and the company's refined copper production will increase significantly after the completion of the Wuxin Copper smelter.

Xinxin Mining raised its target price to HK $1.26, maintaining a "neutral" investment rating.