The Management - China Nonferrous Metals Company Limited
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>.