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The Management - China Nonferrous Metals Company Limited

The Management - China Nonferrous Metals Company Limited

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QUICK FACTS<br />

Year of<br />

Establishment<br />

Principal<br />

Business<br />

Mines<br />

Acquired<br />

IR & Media<br />

Contacts<br />

SHAREHOLDING STRUCTURE<br />

Name of Shareholders<br />

<strong>China</strong> <strong>Nonferrous</strong> <strong>Metals</strong> <strong>Company</strong> <strong>Limited</strong><br />

An emerging leading company in nonferrous metals industry in PRC<br />

2004<br />

Engaged in mining,<br />

processing and trading of<br />

nonferrous metals, currently<br />

lead and zinc in the PRC<br />

1. New Jiashenpan Resources<br />

Inner Mongolia (Lead/Zinc Mine)<br />

2. Naimanqi Mining Co Ltd<br />

Inner Mongolia (Lead/Zinc Mine)<br />

3. Yumen, Gansu (Gold Mine)<br />

4. Chifeng City Gujingdong<br />

Kuangye Inner Mongolia<br />

(Lead/Zinc)<br />

Clara Chan<br />

clara@cnm.com.hk<br />

Callaway Group <strong>Limited</strong>1<br />

Ruffy investments <strong>Limited</strong>2<br />

Mr. Mei Wei<br />

Stichting Shell Pensioenfonds<br />

An Yu<br />

Public<br />

TOTAL<br />

Present –<br />

Issued Shares<br />

758,147,164<br />

453,131,818<br />

56,050,000<br />

150,000,000<br />

142,857,125<br />

1,501,260,484<br />

3,061,446,591<br />

FINANCIAL AND INVESTOR INFORMATION<br />

Trading Bourse<br />

Revenue<br />

Gross Profit<br />

Net Profit<br />

Basic earnings per<br />

share<br />

Market<br />

Capitalization<br />

Present -<br />

Shareholding<br />

24.76%<br />

14.8%<br />

1.83%<br />

4.90%<br />

4.67%<br />

49.04%<br />

100.00%<br />

8306.HK<br />

RMB322.7M<br />

(mining: RMB216.2M )<br />

RMB103.5M<br />

(mining:RMB37.7M )<br />

RMB37.1M<br />

RMB1.2cents<br />

Page 1 of 4<br />

For the nine months ended<br />

30 Sep 2009<br />

HK$ 780million<br />

(as at 30 Nov 2009)<br />

Enlarged -<br />

Issued Shares<br />

758,147,164<br />

3,035,171,932<br />

56,050,000<br />

150,000,000<br />

142,857,125<br />

1,503,660,484<br />

5,643,486,705<br />

Enlarged -<br />

Shareholding<br />

13.43%<br />

53.78%<br />

0.99%<br />

2.66%<br />

2.53%<br />

26.60%<br />

100.00%<br />

Note 1: <strong>The</strong>se Shares are held by Callaway Group <strong>Limited</strong>, a company wholly-owned by Mr. Zhuo Ze Fan, an executive Director.<br />

Note 2: <strong>The</strong>se Shares are held by Ruffy Investments <strong>Limited</strong>, a company wholly-owned by Mr. Mei Wei.<br />

INVESTMENT HIGHLIGHTS<br />

Proven mineral reserves by reputable SRK Consulting Engineers and Scientists<br />

Strong financial track records<br />

BUSINESS OBJECTIVES<br />

To become a leader of nonferrous metals company in the PRC, via joint<br />

ventures and acquisition of assets, including downstream smelting and alloying businesses<br />

To work for a possible migration to the main board of HKEX<br />

To implement low cost strategy and maintain competitiveness


MILESTONES<br />

Date Events<br />

Oct 2009 Conditionally acquired Naimanqi Mining Co. Ltd., a company with a zinc-lead Mine in Naimanqi,<br />

Tongliao City, Inner Mongolia<br />

Page 2 of 4<br />

Aug 2009 Conditionally acquired Tianzhu Yutian Construction Material Co. Ltd, a company with a gold mine in<br />

Gansu Province, the PRC<br />

Sep 2008 1. Acquired Qinghai Yuyang Trading <strong>Limited</strong>, a company principally engaged in trading of zinc, lead<br />

and other minerals and precious metals<br />

2. <strong>Company</strong> name changed to <strong>China</strong> <strong>Nonferrous</strong> <strong>Metals</strong> <strong>Company</strong> <strong>Limited</strong><br />

Aug 2008 Entered into a conditional agreement for the acquisition of Chifeng City Gujingdong Kuangye <strong>Limited</strong><br />

Corporation<br />

July 2008 Completion on the acquisition of New Jiashengpan Resources Inner Mongolia, the PRC.<br />

Feb 2008 Entered into agreement for acquisition of New Jiashengpan Resources, a lead & zinc mine located in<br />

Inner Mongolia, the PRC.<br />

Feb 2005 Listed on GEM of HKEx (Stock code: 8306) Engaged in fertilizers business<br />

MINING AND Processing<br />

New Jiashengpang Resources<br />

Ownership: 75%<br />

Location:<br />

Coverage: 1.1014km 2<br />

Minerals Reserve: Lead: 160,000 tons<br />

Production<br />

Capacity:<br />

Production<br />

Output:<br />

115 Km NW of Baotou, Inner Mongolia, the PRC<br />

Zinc: 1.2 million tons<br />

Phase 1: 420,000 tpa<br />

Phase 2: invested RMB150 million for additional 600,000 tpa processing capacity, to be<br />

commissioned by May 2009<br />

Current Capacity:<br />

TOTAL: 420,000 tpa<br />

Zinc: 15,000 mtpa<br />

Lead: 3,000 mtpa<br />

Sulphuric acid: 80,000 tpa<br />

Iron: 42,000m tpa<br />

Value chain: Exploration → Exploitation → Separation<br />

Net Profit:<br />

2006: RMB123 million<br />

2007: RMB167 million<br />

2008: RMB108 million<br />

Market position: Top 5 in PRC lead and zinc resources<br />

After Capacity Expansion:<br />

TOTAL: 1.02 million tpa<br />

Zinc: 35,000 mtpa<br />

Lead: 7,200 mtpa<br />

Sulphuric acid: 232,500 tpa<br />

Iron: 103,000 mtpa


Naimanqi Mining Co Ltd Inner Mongolia<br />

Ownership: 55%<br />

Location:<br />

Coverage: 1.4325km 2<br />

Minerals Reserve: Lead: 34,393 tons<br />

Naimanqi, Tongliao City, Inner Mongolia, the PRC<br />

Zinc: 17,481 tons<br />

Planned Capacity: 300,000 tpa<br />

Existing Capacity: TOTAL: 109,500 tpa<br />

Zinc: 2,520 mtpa<br />

Lead: 8,400mtpa<br />

Value chain: Exploration → Exploitation → Separation<br />

Yumen, Gansu<br />

Ownership: 100%<br />

Location:<br />

Coverage: 13.67 km 2<br />

Minerals Reserve: Gold: 9.99 tons<br />

Planned Capacity: 36,500 tpa<br />

Yumen City, Jiuquan Region, Gansu Province of the PRC<br />

Value chain: Exploration → Exploitation → Separation<br />

Chifeng City Gujingdong Kuangye Inner Mongolia<br />

Ownership: 100%<br />

Location:<br />

Kalaqinqi Liutiaogou Village,Chifeng city,<br />

Inner Mongolia of the PRC<br />

Coverage: 15.30 km 2<br />

Minerals Reserve: Lead: 1,464 tons<br />

Zinc: 1,042 tons<br />

Copper: 412 tons, Gold:0.064 tons, Silver:1.6 tons<br />

Planned Capacity: 100,000 tpa<br />

Value chain: Exploration → Exploitation → Separation<br />

COMPETITIVE EDGES<br />

Good management team with strong technical supports<br />

Good mining conditions with fully mechanized and automated operation<br />

Low cost structure<br />

Close to railway station for delivery<br />

Strong Government support for future expansion<br />

Preferential tax rate<br />

Good safety record<br />

Strict compliance with environmental requirements<br />

Low preferential electricity tariff<br />

Page 3 of 4


<strong>The</strong> <strong>Management</strong> Page 4 of 4<br />

Mr. Zhuo Ze Fan – Mr. Zhuo is the Founder of the Group, has rich experience in planning, corporate management and<br />

business development. Mr. Zhuo graduated with an MBA in 1999 from Shaanxi MBA College in association with North<br />

West University. He is current the Honorable Chairman of MBA Association of Northwest University; associate member of<br />

Global Inventor in Geneva and International Patent Affairs Estimator. He was honored as “2006 <strong>The</strong> Outstanding<br />

Contributions Experts in Shaanxi Province” as well as being the Vice Chairman of the National Organization of<br />

Agriculture Industry under All-<strong>China</strong> Federation of Industry and Commerce. Mr. Zhuo is also a member of the Tenth<br />

Session Shaanxi Provincial Political Consultative Committee.<br />

Ms. Xie Yi Ping – Ms Xie had more than 20 years working at finance departments of several companies before joining the<br />

Group. She graduated from Shaanxi University of Finance and Economics in Accounting in 1997.<br />

Dr. Yu Heng Xiang – Dr. Yu is a professor in Department of Resources and Environmental Engineering in Guilin<br />

University of Technology. He holds a bachelor degree in Geology, specializing in Exploration Geochemistry and a master<br />

degree in Geology, specializing in Mining Exploration and Survey from Guilin University of Technology and a doctorate<br />

degree in Geology, specializing in Structural Geology from Changsha Institute of Geotectonics, Chinese Academy of<br />

Sciences. Currently, he is also a director, DGM and Chief Geology of Western Mining Xizang Resources Investment Co.,<br />

Ltd.<br />

Mr. Ng Tang – Mr. Ng has more than 13 years of experience in corporate management in Hong Kong and the PRC. He<br />

graduated from East <strong>China</strong> University in Politics and Law.<br />

Mr. Xu Bing – Mr. Xu graduated from Peking University with an Executive Master of Business Administration and from<br />

Beijing University of Aeronautics and Astronautics with a Bachelor’s Degree in mechanical engineering. He is currently<br />

the chairman of Jiashengpan Resources Co. Ltd, a subsidiary of the <strong>Company</strong>. Mr. Xu has extensive experience in the<br />

chemical and metal industry. He worked for Yinli Chemical and Metallurgical (Group) Co. Ltd., a company principally<br />

engaged in business of zinc smelting for over ten years. Prior to joining the <strong>Company</strong>, he was a director and general<br />

manager of Hong Kong <strong>Metals</strong> and Mines <strong>Limited</strong>.<br />

Mr. Kang Hongbo - Mr. Kang graduated with a Bachelor’s degree in investment management from Zhongnan<br />

University of Finance and Economics, and a Master’s degree in finance from Hubei and Nankai University, Tianjin, <strong>China</strong><br />

respectively. Mr. Kang is a seasoned banker who began his banking career as a sub-branch manager in <strong>China</strong> Construction<br />

Bank, Shenzhen Branch in 2001. He joined Shenzhen Development Bank in 2005. He was director of personal finance when<br />

he left Shenzhen Development Bank in 2008.<br />

Ms. Han Qiong - Ms. Han, graduated with a Bachelor’s degree in financial management from Peking University, Beijing,<br />

<strong>China</strong> in 2002. Ms. Han started her career in an accounting firm in <strong>China</strong>, in which she obtained substantial experience in<br />

the field of auditing. Ms. Han is currently a certified public accountant (practicing) in <strong>China</strong>, as well as a certified tax agent<br />

(practicing) in <strong>China</strong>.<br />

Mr. Eddie Tsang – Mr. Tsang is the Director of Business Development. He holds a Bachelor’s degree in Commerce and a<br />

Master’s degree in Business Accounting. Mr. Tsang is a fellow member of the Hong Kong Institute of Certified Public<br />

Accountants and CPA Australia He has more than twenty years of experience in auditing and finance gained locally and<br />

abroad. Prior to joining the Group in December 2007, Mr. Tsang was the Deputy General Manager and Chief Financial<br />

Officer of <strong>China</strong> Water Affairs Group.<br />

Ms. Irene Liu - Ms. Liu is the Financial Controller of the Group, graduated from Ocean University of Qingdao with a<br />

Bachelor’s Degree in Ecology and a Master’s degree in Accounting from California State University, LA, USA. Ms<br />

Liu is a member of the Chinese Institute of Certified Public Accountants. Prior to joining the Group in November 2009, Ms.<br />

Liu was a Manager of KPMG, Shenzhen, <strong>China</strong>.

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