Net Profit of 265 Million Yuan in the First Half of the Year, a Year - on - Year Increase of 14.02%

August 22, 2022

Facing the severe challenges of the intertwined spread of the COVID - 19 pandemic in multiple locations and the economic downturn, Humon Smelting Co., Ltd. once again delivered an outstanding "mid - year exam" report. In the first half of 2022, the company achieved sales revenue of 21.442 billion yuan, a year - on - year increase of 0.46%; the net profit attributable to shareholders of the listed company was 265 million yuan, a year - on - year increase of 14.02%. Among them, the net profit in the second quarter alone was 144 million yuan, a year - on - year increase of 47.57%, setting the best record for the same period in history. The net cash flow from operating activities was 1.49 billion yuan, a year - on - year increase of 953.13%. At present, the company is aiming at the goal of becoming an "internationally - leading gold mining and smelting enterprise", with a strong development momentum and more robust internal driving force.

Forging Ahead Under Pressure: Major Indicators Exceeded Expectations

In the first half of the year, affected by the multiple outbreaks of the domestic epidemic and imported inflation, the company faced difficulties and challenges such as weak consumer demand in the downstream market and 不畅的产业链 and supply chain. On the one hand, the company did a good job in epidemic prevention and control; on the other hand, it made every effort to ensure the rapid flow of raw materials and products around the goal of stable and increased production, achieving many results such as optimal utilization of mineral resources, optimal smelting production efficiency, and optimal production - finance synergy efficiency. In the first half of the year, the production of major products such as gold and silver reached record highs. Specifically, the gold production reached 23 tons, and the silver production reached 439 tons.

Each business unit scientifically coordinated the supply of production raw materials and the exploration of product sales markets, enabling domestic and international trade to advance in parallel with equal emphasis on quantity and quality. In the first half of the year, under the unfavorable environment of severely restricted personnel and logistics, the Raw Materials Company changed its inherent raw material procurement channels, laid out new procurement paths, strived to defuse risks, and constructed a "multi - channel" procurement chain. In the first half of the year, the proportion of direct mining from the company's mines increased to 80.7%, a year - on - year increase of 11 percentage points, effectively ensuring the company's raw material supply. The Sales Company closely monitored both ends of the market, oriented by the market, grasped the market price trend, and sold products at a high point in the market cycle. In the first half of the year, the revenue from sulfuric acid was 352 million yuan, a year - on - year increase of 141.46%, with a gross profit margin of 55.84%, and the gross profit margin increased by 36.48 percentage points compared with the same period last year. In addition, through technological breakthroughs, the production capacity and recovery rate of minor metals such as antimony, palladium, and tellurium were further increased. At the same time, by accurately grasping the market situation, in the first half of the year, the revenue from metals such as zinc, antimony, bismuth, and selenium reached 371 million yuan, with a gross profit margin of 48.29%, and the gross profit margin increased by 19.13 percentage points compared with the same period last year, opening up room for the company's future performance growth.

Focusing on Key Points and Stimulating the Driving Force of Innovation and Efficiency

Positive progress has been made in key project construction. The multi - element comprehensive recovery project of complex gold concentrates has been transferred from the preparatory category of provincial major projects to the implementation category. The production process of the second - phase laboratory of the high - purity new material research, development, and industrialization project has been fully connected, and the industrialization is being implemented. Currently, the infrastructure construction of the project is being carried out in an orderly manner. These projects with strong driving capabilities have accumulated strong momentum for the company's high - quality development.

New breakthroughs have been achieved in scientific and technological innovation management. As of the first half of 2022, the company has obtained 16 invention patents such as "Methods for Extracting Multiple Elements from High - Arsenic Complex Gold Concentrates" and 20 utility model patents such as "A Quench Tower". One invention patent won the China Patent Excellence Award. In the first half of the year, the company also participated in the formulation of 10 industry standards, and 17 standards are still under revision. In - depth participation in the formulation of industry standards has further enhanced the company's popularity and discourse power. Among them, the national standard "Methods for Sampling and Sample Preparation of Gold Nugget Ores" led by the company for revision won the second prize of the National Non - ferrous Metals Standardization Technology. The "Key Technology for Green and Efficient Utilization of High - Arsenic Complex Gold Concentrates" passed the online review for the first prize of the Shandong Provincial Science and Technology Progress Award and is currently under review. The high - purity new material research and development team of the company won the honorary title of "The Most Beautiful Scientists and Technologists in Yantai City", and the company was rated as a leading enterprise in the "Top Ten" industrial clusters in Shandong Province.

Working Together to Build a Firewall for Safety, Environment, and Risk Control

In the first half of the year, in accordance with the new round of national heavy metal pollution prevention and control opinions and the soil pollution prevention and control plan, the company vigorously implemented the green upgrading and transformation of material yards and sheds. At the same time, it vigorously promoted the implementation of the "Dual Prevention Mechanism", improved the level of "Work Safety Standardization", firmly curbed the occurrence of various safety and environmental protection accidents, and ensured a stable and orderly work safety situation. In addition, the company actively fulfilled its social responsibility of green development, taking the lead in low - carbon emissions reduction, setting an example in ecological reclamation, and making demonstrations in industrial transformation and upgrading, and successfully passed safety and environmental protection inspections at all levels. The company was recognized as a provincial - level green factory, and its affiliated Lazigou Gold Mine was recognized as a provincial - level green mine.

The company is determined to forge a new path and bravely climb the heights despite heavy responsibilities. After achieving a new victory in the "Double Half" goal, in the face of multiple uncertainties in production and operation brought about by energy shortages, etc., the company's cadres and employees have no intention of taking a break. They continue to forge ahead, break through barriers, and set off again towards the annual production and operation goals, determined to make greater achievements in the new journey of striving to become an internationally - leading gold mining and smelting enterprise and to welcome the successful convening of the 20th National Congress of the Communist Party of China with more excellent results.

Facing the severe challenges of the intertwined spread of the COVID - 19 pandemic in multiple locations and the economic downturn, Humon Smelting Co., Ltd. once again delivered an outstanding "mid - year exam" report. In the first half of 2022, the company achieved sales revenue of 21.442 billion yuan, a year - on - year increase of 0.46%; the net profit attributable to shareholders of the listed company was 265 million yuan, a year - on - year increase of 14.02%. Among them, the net profit in the second quarter alone was 144 million yuan, a year - on - year increase of 47.57%, setting the best record for the same period in history. The net cash flow from operating activities was 1.49 billion yuan, a year - on - year increase of 953.13%. At present, the company is aiming at the goal of becoming an "internationally - leading gold mining and smelting enterprise", with a strong development momentum and more robust internal driving force.

Forging Ahead Under Pressure: Major Indicators Exceeded Expectations

In the first half of the year, affected by the multiple outbreaks of the domestic epidemic and imported inflation, the company faced difficulties and challenges such as weak consumer demand in the downstream market and 不畅的产业链 and supply chain. On the one hand, the company did a good job in epidemic prevention and control; on the other hand, it made every effort to ensure the rapid flow of raw materials and products around the goal of stable and increased production, achieving many results such as optimal utilization of mineral resources, optimal smelting production efficiency, and optimal production - finance synergy efficiency. In the first half of the year, the production of major products such as gold and silver reached record highs. Specifically, the gold production reached 23 tons, and the silver production reached 439 tons.

Each business unit scientifically coordinated the supply of production raw materials and the exploration of product sales markets, enabling domestic and international trade to advance in parallel with equal emphasis on quantity and quality. In the first half of the year, under the unfavorable environment of severely restricted personnel and logistics, the Raw Materials Company changed its inherent raw material procurement channels, laid out new procurement paths, strived to defuse risks, and constructed a "multi - channel" procurement chain. In the first half of the year, the proportion of direct mining from the company's mines increased to 80.7%, a year - on - year increase of 11 percentage points, effectively ensuring the company's raw material supply. The Sales Company closely monitored both ends of the market, oriented by the market, grasped the market price trend, and sold products at a high point in the market cycle. In the first half of the year, the revenue from sulfuric acid was 352 million yuan, a year - on - year increase of 141.46%, with a gross profit margin of 55.84%, and the gross profit margin increased by 36.48 percentage points compared with the same period last year. In addition, through technological breakthroughs, the production capacity and recovery rate of minor metals such as antimony, palladium, and tellurium were further increased. At the same time, by accurately grasping the market situation, in the first half of the year, the revenue from metals such as zinc, antimony, bismuth, and selenium reached 371 million yuan, with a gross profit margin of 48.29%, and the gross profit margin increased by 19.13 percentage points compared with the same period last year, opening up room for the company's future performance growth.

Focusing on Key Points and Stimulating the Driving Force of Innovation and Efficiency

Positive progress has been made in key project construction. The multi - element comprehensive recovery project of complex gold concentrates has been transferred from the preparatory category of provincial major projects to the implementation category. The production process of the second - phase laboratory of the high - purity new material research, development, and industrialization project has been fully connected, and the industrialization is being implemented. Currently, the infrastructure construction of the project is being carried out in an orderly manner. These projects with strong driving capabilities have accumulated strong momentum for the company's high - quality development.

New breakthroughs have been achieved in scientific and technological innovation management. As of the first half of 2022, the company has obtained 16 invention patents such as "Methods for Extracting Multiple Elements from High - Arsenic Complex Gold Concentrates" and 20 utility model patents such as "A Quench Tower". One invention patent won the China Patent Excellence Award. In the first half of the year, the company also participated in the formulation of 10 industry standards, and 17 standards are still under revision. In - depth participation in the formulation of industry standards has further enhanced the company's popularity and discourse power. Among them, the national standard "Methods for Sampling and Sample Preparation of Gold Nugget Ores" led by the company for revision won the second prize of the National Non - ferrous Metals Standardization Technology. The "Key Technology for Green and Efficient Utilization of High - Arsenic Complex Gold Concentrates" passed the online review for the first prize of the Shandong Provincial Science and Technology Progress Award and is currently under review. The high - purity new material research and development team of the company won the honorary title of "The Most Beautiful Scientists and Technologists in Yantai City", and the company was rated as a leading enterprise in the "Top Ten" industrial clusters in Shandong Province.

Working Together to Build a Firewall for Safety, Environment, and Risk Control

In the first half of the year, in accordance with the new round of national heavy metal pollution prevention and control opinions and the soil pollution prevention and control plan, the company vigorously implemented the green upgrading and transformation of material yards and sheds. At the same time, it vigorously promoted the implementation of the "Dual Prevention Mechanism", improved the level of "Work Safety Standardization", firmly curbed the occurrence of various safety and environmental protection accidents, and ensured a stable and orderly work safety situation. In addition, the company actively fulfilled its social responsibility of green development, taking the lead in low - carbon emissions reduction, setting an example in ecological reclamation, and making demonstrations in industrial transformation and upgrading, and successfully passed safety and environmental protection inspections at all levels. The company was recognized as a provincial - level green factory, and its affiliated Lazigou Gold Mine was recognized as a provincial - level green mine.

The company is determined to forge a new path and bravely climb the heights despite heavy responsibilities. After achieving a new victory in the "Double Half" goal, in the face of multiple uncertainties in production and operation brought about by energy shortages, etc., the company's cadres and employees have no intention of taking a break. They continue to forge ahead, break through barriers, and set off again towards the annual production and operation goals, determined to make greater achievements in the new journey of striving to become an internationally - leading gold mining and smelting enterprise and to welcome the successful convening of the 20th National Congress of the Communist Party of China with more excellent results.