Our Company

North Mining Shares Company Limited (the “Company”) was incorporated in Bermuda as an exempted company with limited liabilities. The address of the registered office of the Company is located at Richmond House, 12 Par-Ia-Villa Road, Hamilton HM 08, Bermuda. The principal place of business has been changed to Room 2004–05, 20/F, Kwan Chart Tower, 6 Tonnochy Road, Wan Chai, Hong Kong. The shares of the Company are listed on The Stock Exchange of Hong Kong Limited (“Stock Exchange”).

Business Review

The principal activities of the Company are investment holdings. The principal activities of the Company and its subsidiaries (the “Group”) is mining operations — exploitation, exploration, manufacture of mineral resources.

Mining Operations – Exploitation and Exploration and Trading of Mineral Resources

The Group’s mining operation mainly includes the exploitation, exploration and production of molybdenum concentrate in the PRC. Our molybdenum concentrate was produced by the molybdenum mine operated by Shaanxi Province Luo Nan Xian Jiu Long Kuang Ye Company Limited (“Jiu Long Kuang Ye”), a non-wholly owned subsidiary of the Group. The grading of molybdenum concentrate produced by our molybdenum mine was approximately 45%–50%.

The mining licence has been successfully renewed and the renewed licence, which is valid up to 22 February 2034, has been granted by the Ministry of Natural Resources of the PRC and issued to the Company on 10 February 2023. The mining licence is the major licence required for the Group to conduct its mining activities of its molybdenum mine.

The Safety Production Licence has been successfully renewed and the renewed Safety Production Licence, which is valid up to 17 October 2027, has been granted by the Shaanxi Provincial Emergency Management Department of PRC and issued to the Group on 18 October 2024. The Safety Production Licence is the major licence required for the Group to conduct its mining activities of its molybdenum mine. Due to obtain of the Safety Production Licence, mining operation of the Group is able to resume full operation.

During the period 30 June 2026, the volume of molybdenum concentrate sold was about 2,240 tonnes (six months ended 30 June 2025: 3,487 tonnes), whereas the grade of molybdenum concentrate was approximately 45%–50%. The average selling price of molybdenum concentrate was approximately HK$160,476 per tonne. During the period under review, the mining operation contributed a revenue of approximately HK$472,517,000 to the Group, of which approximately HK$359,409,000 was contributed by sales of molybdenum concentrate and approximately HK$113,108,000 was contributed by sales of sulfuric acid and iron concentrate. Molybdenum concentrate sales accounted for approximately 76.06% of core business revenue, representing the Group’s primary revenue source. Gross profit was approximately HK$237,269,000 and the gross profit margin was 50.21%. During the period, the Group recognised an amortisation of mining rights included in cost of sales of approximately HK$21,838,000.

DISCONTINUED OPERATIONS

On 4 December 2025, the Company and a purchaser entered into a sale and purchase agreement to disposal of 久龍投資(上海)有限公司 (Jiulong Investment (Shanghai) Company Limited) (the “Disposal Company”) and its subsidiaries (collectively referred as the “Disposal Group”), which involved in manufacturing and sales of chemical products and sale of aluminum plate products (the “Chemical and Metal Products Operation”). Reference to the announcements were made on 4 December 2025, 13 February 2026 and 19 March 2026, in relation to the very substantial disposal of the Chemical and Metal Products Operation for consideration of HK$1,000,000. Such disposal was completed on 25 March 2026. The Board considered that the disposal had no material negative impact on the Group’s financial position, and the consideration of the disposal arrived at arm’s length negotiations between the Company and the purchaser on normal commercial terms, and was fair and reasonable and in the interests of the Company and its shareholders as a whole. The Board also take into account a number of factors in making their decision, in particular the current financial situation of the subsidiary and its business prospects.

FUND RAISING EXERCISE
During the period under review, there was no fund raising exercise carried out by the Group.

PROSPECTS
As we enter second half of 2026, our Group is striving to build resilience in a time of uncertainty.

The economic outlook remains uncertain in second half of 2026. Global economies will continue to face multiple macroeconomic headwinds, including geopolitical uncertainties, inflation and tightened financial conditions. Many industries are still plagued by supply chain issues that emerged in recent years. Ongoing inflation and subdued economic growth are expected. In order to combat this, our Group aims to improve our resilience in through strategic management, development and expansion of our two core businesses as well as building protective measures into supply chains to deal with shortages and rising business costs.

For mining operation, following the infrastructure upgrades and licence renewals, our mining operation delivered enhanced performance in 2026. A stronger global market for molybdenum concentrate pushed average selling prices higher, which, combined with improved plant efficiency, resulted in an increase in net profit compared to the prior period. The Group will continue to invest in technological refinements to secure sustainable, long-term margins.

The operation environment of China’s steel industry is the key factor that affects the development of the country’s molybdenum market. As required by China’s environmental protection policy and supplyside reform policy, steel factories have no alternative but to transform and shift to produce high quality special steel. Meanwhile, the normalization of fall/winter production restriction will further accelerate the enhancement and reconstruction of the steel industry, there are still ample room to increase the production of stainless steel and high strength steel. All the factors stated above will further drive up the demand for molybdenum, and it was expected that the demand for molybdenum in China will keep increasing. It was expected that the molybdenum market would continue to improve in the second half of 2026.

The Group will continue to be receptive to the market’s views candidly and humbly. It will endeavor to maintain effective communication with stakeholders. As a way to gauge capital markets’ perception of the Group, we will continue to improve the quality of investor relations management and will ponder on investors’ concerns and advices in order to further enhance the Group’s operating management and corporate governance. The investor relations department will maintain professionalism at its work so that capital markets will be able to gain a thorough understanding of the Group’s business. This will help unlock the potential investment value and contribute to the long term and healthy development of the Group.