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 Clarendon House, 2 Church Street, Hamilton HM 11, 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”) are mining operations — exploitation, exploration, manufacture of mineral resources, sales of chemical products and sales of aluminium plates.

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 year under review, the volume of molybdenum concentrate sold was about 714 tonnes (2023: Nil), whereas the grade of molybdenum concentrate was approximately 45%-50%. The average selling price of molybdenum concentrate was approximately HK$135,710 per tonne. During the year under review, the mining operation contributed a revenue of approximately HK$116,378,000 to the Group, of which approximately HK$105,052,000 was contributed by sales of molybdenum concentrate and approximately HK$11,326,000 was contributed by sales of sulfuric acid and iron concentrate. Gross profit was approximately HK$54,745,000 and the gross profit margin was 47.04%. During the year, the Group recognised an amortisation of mining rights of approximately HK$13,086,000.

Chemical trading operations Aluminum metal trading operations

The Group’s chemical trading operations mainly includes manufacturing and sale of chemical products in the PRC. Our chemical products were produced by Anhui Tongxin New Material Technology Company Limited, a non-wholly owned subsidiary of the Company. During the year ended 31 December 2024, the Group’s revenue generated from chemical trading operation was approximately HK$993,830,000 (2023: approximately HK$1,533,714,000).

Aluminum metal trading operations

The Group established a new business during the year ended 31 December 2024, the overall economic landscape of the PRC’s aluminum metal trading industry is very competitive, as a new competitor in the market, the Group faced pressure on source of customers and suppliers and the market share of business. As at 31 December 2024, the Group revenue generated from aluminum metal trading operation was approximately HK$18,000. The Group will continue to expand aluminum metal trading operation under limited resources and pressure in order to strive for position in the markets.

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

PROSPECTS
As we enter 2025, our Group is striving to build resilience in a time of uncertainty. The economic outlook remains uncertain in 2025. 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, the Group has successful renewed the mining licence of molybdenum mine and will further invest in and upgrade the mining operation machine system in production to improve the production efficiency, safety and environmental level. For chemical operation, through research and development and additional production facilities, we continue to improve our product quality and increase our product competitiveness.

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 cooperate 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.

Molybdenum market
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 supply-side 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 2025.

The Group will make every endeavor to keep abreast of the changing market conditions, to proactively identify investment opportunities and expand its mineral resources in order to broaden the revenue base of the Group, enhance its future financial performance and profitability, and fine tune its business strategies when appropriate. Moreover, the Group is seeking for further operating efficiency for its business. We are confident in the future prospect and committed to the continuous growth of the Company.

Chemical business market
Chemical market in China has stringent regulatory requirements for safety and environmental protection, which have inevitably created short-term operation pressure on the chemicals manufacturing industry. However, corporate with competitive advantage on environmental protection will eventually capture the opportunities emerged in an operation environment with sound regulation. The Group will continue to invest on safety and environmental protection, impose stringent control over its costs, enhance its production efficiency, and will formulate effective marketing strategy to meeting the challenges of increasing competition in the market. The Group will make every endeavor to keep abreast of the challenging market conditions, proactively identify investment opportunities and expand its mineral resources in order to broaden the revenue base of the Group, enhance its future financial performance and profitability, and fine tune its business strategies when the Directors of the Company think appropriate. Moreover, the Group is seeking for further operating efficiency across the business. We are confident in the future and committed to continuous growth of the Company.