On August 26, Hainan Mining released its 2025 interim report. During the reporting period, both the Platts Iron Ore Index and Brent crude oil price dropped by approximately 15% year-on-year. However, Hainan Mining effectively mitigated the impact of price fluctuations through industrial operation measures such as technological optimization, lean management, and production increase with cost reduction, demonstrating strong counter-cyclical profitability and operational resilience.

In the first half of the year, the company achieved an operating revenue of RMB 2.415 billion, a year-on-year increase of 10.46%; the net amount of operating cash flow rose to RMB 690 million, a year-on-year increase of 39.76%; and the net profit attributable to owners of the parent stood at RMB 281 million.

While releasing the interim report, Hainan Mining also announced its 2025 interim dividend plan, proposing to distribute a cash dividend of RMB 0.30 per 10 shares. This marks the second consecutive year that the company has distributed an interim cash dividend to all shareholders.

Iron ore operations maintain stable production and resilient profitability.

In the first half of the year, Shilu Branch recorded a finished ore output of 1.2075 million tons, representing a year-on-year increase of 5.79%. This has enabled the branch to meet the budget target of "half the time, half the output". Despite the cyclical downturn, the gross profit margin of lump ore has remained above 50%, continuing to serve as a stable performance buffer.

In terms of production management, the branch has actively expanded ore sources: the newly added underground mining operation area of Nankuang (South Mine) has contributed to medium-to-short-term raw ore increments, while efforts to advance the construction of underground mining middle sections are in progress to ensure stable medium-to-long-term ore supply.

Regarding gross profit margin management, the branch has implemented multi-dimensional beneficiation technological transformations to improve quality. It has enhanced the efficiency of existing beneficiation processes through photoelectric intelligent beneficiation technology, and continued to promote the full-process commissioning of the magnetic roasting project. These technological upgrades aim to optimize product structure and further improve product gross profit margin.

Oil and gas production surges significantly, effectively smoothing out oil price cycle fluctuations.

Benefiting from the consolidated financial contribution of the Oman Oilfield Project and the output increase of the Bajiaochang Gasfield, ROC Oil’s H1 equity production of oil and gas reached 6.0429 million barrels of oil equivalent (BOE), representing a significant year-on-year growth of 51.35%.

Facing downward pressure on oil prices, the company has increased its crude oil reserves and output through the acquisition of the Oman Oilfield Project. Currently, it is advancing the minority shareholder squeeze-out process and organizational integration of Tethys Company as planned. Meanwhile, it is actively communicating with partners to promote the optimization of the operation plan for Blocks 3&4 and the development plan for Block 56.

The Bajiaochang Gasfield has quickly implemented production enhancement measures, achieving a year-on-year increase of 40.22% in equity production during the reporting period. Since the sales price of its natural gas products is fixed and not linked to oil prices, the increase in output directly boosts the project’s earnings and strengthens the company’s performance buffer.

Complete Integrated Lithium Resource Layout Lays Foundation for Performance Growth

The new energy business is the third key business segment that the company is committed to developing. During the reporting period, the Phase I mining and processing project of the Bougouni Lithium Mine in Mali has been completed and entered the trial production phase, with approximately 35,000 tons of lithium concentrate produced so far. The off-take agreement for lithium ore has been signed, while the procedures for the Malian government's equity participation and export license are still being actively advanced.

The Xingzhihai Lithium Hydroxide Project successfully produced qualified products in May and officially entered the trial production phase. In the subsequent phase, while promoting capacity ramping-up and reaching full production capacity,  Xingzhihai Company will also actively carry out product certification work for downstream customers.

As one of the few domestic upstream lithium resource enterprises with the integrated advantage of owning high-quality self-operated mines and advanced high-quality processing lines, the company will leverage its cost and regional advantages to create new performance growth drivers once the industry cycle rebounds.

Accelerate industrial investment and mergers and acquisitions to expand resource sector Layout

The company continues to focus on strategic resources, accelerates its pace of going global, and constantly strengthens its global industrial layout of "minerals + energy". In the first half of 2025, the overseas subsidiaries of the company achieved an operating revenue of 1.383 billion yuan, with the proportion increasing to 57%; the overseas assets were 7.068 billion yuan, accounting for more than 48%.

The acquisition project of the producing zirconium-titanium mines in Mozambique, which the company launched in December 2024, is actively promoting the due diligence and audit evaluation work of the project.

In August 2025, the company announced that it would increase the capital of Luoyang Fengrui Fluorine Co., Ltd. by 300 million yuan to obtain a 15.79% equity stake, marking that the company has expanded its resource layout to the strategic key mineral field of fluorite ore.

Place High Priority on Shareholder Returns Mid-Year Dividends Paid for Two Consecutive Years

In recent years, the company has effectively implemented the action plan of "improving quality, enhancing efficiency, and prioritizing returns", continued to distribute cash dividends, and actively created value for shareholders. From 2022 to 2024, it distributed a total of RMB 600 million in cash dividends.

Based on its confidence in the company’s sustained future development, the company announced a new share repurchase plan on March 14 this year, proposing to repurchase shares with RMB 75 million to RMB 150 million. All repurchased shares will be used for cancellation to reduce the registered capital.

To further reward shareholders, the company has formulated the 2025 interim dividend plan based on its first-half profitability and capital needs for development, proposing to distribute a cash dividend of RMB 0.30 per 10 shares to all shareholders.

2025 marks a crucial milestone for the Hainan Free Trade Port to launch the full-island closed operation, which will bring important opportunities for the company’s development. Hainan Mining will adhere to strategic guidance, base itself in Hainan, face the global market, expand and strengthen its core businesses within Hainan, continue to advance the global resource layout, focus on overseas strategic resource acquisition opportunities, and strive to become an "internationally influential industrial development group centered on strategic resources".