Financial Association News, September 26th (Reporter Liang Xiangcai) Mining service company JCHX Mining Management (603979.SH) is making efforts in the resource development sector. At today's performance briefing, the secretary of the board of directors of the company, Wu Bangfu, stated that while the company excels in its traditional main business of mine services, the focus on cultivating the resource development sector has become the company's second largest core business.

In response to inquiries about the planning and resource increment of the resource development sector, Director Wang Qinghai responded that the company's current focus is to promote the smooth construction, production, and completion of existing resource projects. In terms of increasing reserves, the company currently believes that exploring and increasing reserves in existing projects is a more economical way to obtain resources at this stage. In the long run, there is a greater focus on copper and precious metals that match the company's scale.

Regarding projects under construction, Wu Bangfu stated that the Lonshi Copper Mine in the Congo (Kinshasa) is striving to achieve production status by the end of 2024. The company's previously released investor relations activity record shows that the Lonshi Copper Mine plans to produce 20,000 tons of copper metal annually, with sales of 22,000 tons of copper metal.

Regarding the invested Colombian San Matias project Alacran copper-gold-silver mine, Wu Bangfu mentioned that the feasibility study for the mine has been completed, and the environmental impact assessment has been submitted to the Colombian National Environmental Licensing Authority (ANLA) for approval, pending approval.

In terms of performance, JCHX Mining Management's total revenue in the first half of the year was 4.273 billion yuan, a year-on-year increase of 30.31%. During the same period, the net income was 0.613 billion yuan, a year-on-year increase of 52.29%, setting a new half-year performance record since its listing. The mine service and mine resource development business contributed approximately 70% and 30% respectively to the company's main profit.

As for the reasons behind the first-half performance growth, Wang Qinghai stated at the performance briefing that it was mainly due to an increase in gross profit from the main business. The gross profit of the mine service sector increased by 15.33% compared to the same period last year, and the gross profit of the resource sector increased by 406.59% compared to the same period last year, leading to an overall gross profit growth of 47.79% for the two major sectors in the first half of the year.

It is worth noting that JCHX Mining Management's resource development business began contributing to performance in the first half of 2023, achieving approximately 0.073 billion yuan in main profit, accounting for about 8%. By the end of 2023, the company's total mineral asset reserve rights included 1.2 million tons of copper metal, 179 tons of silver metal, 19 tons of gold metal, and 19.1 million tons of phosphate ore (grade 31.87%).