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.