CMOC Group Limited — Interim / Quarterly Report 2021

Sep 29, 2021

SUMMARY OF THE 2021 INTERIM REPORT

• Pandemic prevention and control were effectively deployed, and business performance remained stable. During the reporting period, the Company recorded an operating revenue of RMB84.8 billion, representing a year-on-year increase of 81%. Net profit attributable to the parent company amounted to RMB2.4 billion, representing a year-on-year increase of 139%. Among them, net profits attributable to the parent company after deduction of non-recurring gains and losses amounted to RMB1.4 billion, representing a year-on-year increase of 176%. Total EBITDA amounted to RMB7.1 billion, representing a year-on-year increase of 120%. The Company continued to maintain a healthy asset and liability structure at the end of the reporting period. The monetary capital balance amounted to RMB19.4 billion, over 60 banks in and outside China have extended credit line to the Company of not less than RMB120 billion, with a large amount of unused credit line and currency fund balances providing the Company with sufficient liquidity.
• Key projects have been steadily advanced, and endogenous growth potential has been brought into play. During the reporting period, the key projects for expanding production and increasing efficiency in the DRC (10K Project) and the copper and gold mine expansion project in Australia actively laid out by the Company have been officially put into operation; at the same time, the feasibility study of TFM copper-cobalt mixed mineral project has been completed, and the project is progressing steadily; KFM copper-cobalt mine project is also actively carrying out feasibility study and analysis.
• Taking measures to improve the operational level, and continuing to implement the concept of "cost reduction and efficiency enhancement". During the reporting period, the production and operating costs of the Company's mining business segments were reduced by more than RMB0.36 billion year-on-year, of which, DRC copper and cobalt segment achieved a reduction in production and operating cash costs of approximately USD30 million; Brazil's niobium and phosphorus segment achieved a reduction in production and operating cash costs of USD8.00 million; and the business in China achieved a year-on-year reduction in production and operating cash costs of more than RMB80 million.
• The mining and trading sector cooperated effectively, and the trading sector continued to exert its strength. During the reporting period, the mining sector and the trading sector were further integrated. Through the operation combination model of futures and spot commodities, IXM fully enhanced its risk resistance capability and achieved good results, achieving a net profit attributable to the parent company of RMB0.369 billion.

MAJOR FINANCIAL INDICATORS FOR THE FIRST HALF OF 2021

(I) Major Accounting Data

Unit: Yuan Currency: RMB

Major accounting data	During the reporting period (from January to June)	Same period last year	Increase/decrease for the reporting period as compared with the same period last year (%)
Operating revenue	84,815,930,336.26	46,743,857,426.26	81.45
Net profit attributable to shareholders of the listed company	2,408,598,438.70	1,007,820,700.18	138.99
Net profit after deduction of non-recurring profits or losses attributable to shareholders
of the listed company	1,401,022,073.13	507,764,801.78	175.92
Net cash flow from operating activities	1,318,661,759.73	4,251,397,720.59	-68.98

	At the end of the reporting period	At the end of last year	Increase/decrease at the end of the reporting period as compared with the end of last year (%)
Net assets attributable to the shareholders of the listed company Total assets	38,345,225,837.90 127,008,283,015.83	38,891,780,788.15 122,441,249,889.87	-1.41 3.73

Note: After excluding the impact of fundamental metal trading business, the net cash flow generated from operating activities for the reporting period was RMB5.261 billion, representing an increase of 17.96% compared with the same period of last year under the same caliber.

(II) Major Financial Indicators

Major financial indicators	During the reporting period (from January to June)	Same period last year	Increase/decrease for the reporting period as compared with the same period last year (%)
Basic earnings per share (RMB/share) Diluted earnings per share (RMB/share) Basic earnings per share excluded non	0.112 0.112	0.047 N/A	138.30 N/A
recurring profits or losses (RMB/share) Weighted average rate of return on net assets (%)	0.065 6.20	0.024 2.44	170.83 Increased by 3.76 percentage points
Weighted average rate of return on net assets excluded non-recurring profits or losses (%)	3.61	1.23	Increased by 2.38 percentage points

COMPANY PROFILE

China Molybdenum Co., Ltd. (hereinafter referred to as "CMOC" or the "Company", and together with its subsidiaries, the "Group") is a joint stock company established in the People's Republic of China (the "PRC" or "China") on 25 August 2006. The Company was successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 26 April 2007 and the Shanghai Stock Exchange (the "SSE") on 9 October 2012.

The Company engages in the non-ferrous metal industry, mainly the mining and processing business, which includes mining, beneficiation, smelting and refining of base and rare metals, and mineral trading business. With its main business located over five continents: Asia, Africa, South America, Oceania and Europe, the Company is the world's leading producer of tungsten, cobalt, niobium and molybdenum and a major copper producer. It is also a leading producer of phosphatic fertilizers in Brazil. In terms of trading business, the Company is among the third biggest base metal merchants in the world. The Company ranks 1,046 among the top 2,000 global listed companies by Forbes 2021 and 15 among top 40 global mining companies (by market value) in 2021.

MARKET REVIEW AND OUTLOOK

(I) Market Review

1. Price comparison of major products in the same period

	Domestic market prices
	Products	First half of 2021 First half of 2020		Increase/ decrease on a year-on-year basis (%)
	Molybdenum concentrates (RMB/
Molybdenum	metric tonne unit) Ferromolybdenum (RMB0'000/	1,760	1,538	14.43
	tonne) Wolframite concentrates (RMB/	11.87	10.58	12.19
Tungsten	metric tonne unit)	1,452.38	1,287.78	12.78
	APT (RMB0'000/tonne)	14.19	12.86	10.34

Note: Data from the average prices quoted on the website of Comelan (product standard: 47.5% for molybdenum concentrate, 60% for ferromolybdenum, grade I for wolframite concentrate in YS/T 231-2015, and Grade APT-O in GB/T 10116-2007).

Ferromolybdenum

2020

2021

Wolframite concentrate (RMB/metric tonne unit)

		International market prices
	Products	First half of 2021 First half of 2020		Increase/ decrease on a year-on-year basis (%)
Molybdenum Copper Cobalt Phosphorus Lead Zinc Aluminum Nickel	Molybdenum oxide (USD/Pound Mo) Copper cathode (USD/tonne) Cobalt metal (USD/pound) MAP (USD/tonne) Lead metal (USD/tonne) Zinc metal (USD/tonne) Aluminum metal (USD/tonne) Nickel metal (USD/tonne)	12.74 9,092 21.02 607 2,072 2,832 2,246 17,466	9.05 5,502 15.67 312 1,763 2,049 1,591 12,475	40.77 65.25 34.14 94.55 17.53 38.21 41.17 40.01

Note: The price of molybdenum oxide is the average price on the Metals Week (MW); the prices of copper, lead, zinc, aluminium and nickel are the market official settlement on LME (London Metal Exchange); cobalt price is the average price of MB (Metal Bulletin) standard grade cobalt (low-end); phosphorus price is from Argus Media.

Molybdenum oxide (USD/Pound Mo) Copper cathode (USD/tonne)

2. Market Review of Major Products

(1) Copper market

The Company mainly sells both copper cathode and copper concentrate to the international markets. In the first quarter of 2021, due to widespread vaccination coverage, the global economy, especially overseas, has further recovered from the pandemic. With a lower visible global inventory, increasingly weakening of U.S. Dollar Index, plentiful liquidity in the U.S. dollar, as well as a steady decline in copper concentrate TC/RC, the copper price kept rising. It has climbed to a record high from around USD8,000/tonne at the beginning of the year to over USD10,000/tonne. In turn, the increasing price restrained production in the manufacturing industry. This has aroused attention of relevant authorities in China. To properly control speculation, they adopted a series of control measures. However, U.S. Dollar Index rebounded with higher inflation expectations, copper concentrate TC/RC started to increase significantly since May, and copper cathode sales in peak season was also limited by the high price. Driven by such factors, the copper price retraced to around USD9,500/tonne from a high level.

(2) Cobalt market

The Company sells intermediate products of cobalt hydrometallurgy process to the international markets. In the first half of 2021, the cobalt price increased amid volatility, while the fundamentals of supply and demand worldwide has significantly improved. In the first quarter, the prices of cobalt metal and its raw material increased, which was contributed by limitations in shipping and delivery facing by suppliers, low inventory of cobalt metal and its raw materials in Chinese market. In the second quarter, market expectations of tight supply eased as shipping and delivery situation was improved. The metal price experienced a minor pullback, while price coefficient of cobalt hydroxide remained high due to the shortage of raw materials. In the second half of the year, it is expected that the demand for cobalt intermediate products will benefit from further upturn in terminal boom, while the demand for cobalt metal will gradually pick up under the background of global alloy consumption recovery.

(3) Molybdenum market

The major molybdenum product of the Company is ferromolybdenum, which is sold mainly in the domestic market in China. Affected by monetary inflation, economic stimulus policies in many countries and energy reform under the background of carbon neutrality in the first half of 2021, prices of metal commodities, like copper and iron ore, repeatedly reached record highs, which raised the price growth expectation of other relevant products. Against this backdrop, China's GDP in the first quarter increased by 18.30% on a year-on-year basis and the domestic steel industry benefits most from it. The quarterly weighted earnings per share of 17 listed steel enterprises (with molybdenum as raw materials) increased by more than 100.00% year-on-year, stimulating the domestic demand for ferromolybdenum to increase by 25.17% year-on-year. Based on market quotations, the price of ferro molybdenum has soared amid volatility to about RMB160,000/tonne, its highest level in the recent decade. In the first half of the year, the price of molybdenum concentrates (47.5% Mo) ranged from RMB1,500/metric tonne unit to RMB2,350/metric tonne unit, with the average price of RMB1,760/ metric tonne unit, representing a year-on-year increase of 14.43%; the price of ferromolybdenum ranged from RMB100,000/tonne to RMB162,000/tonne, with the average price of RMB118,700/tonne, representing a year-on-year increase of 12.19%.

In the first half of 2021, as the vaccination coverage gradually expanded and continuous economic policies stimulated, the global economies has recovered rapidly. In particular, USA, Japan and South Korea almost restored their economy to pre-pandemic levels. In addition, production accidents in some international molybdenum mines and delay of international shipments jointly contributed to short supply of molybdenum in the global market. The international price of molybdenum oxide has soared to approximate USD20/pound Mo, its highest level in the recent decade. According to MW, the average price of molybdenum oxide in the first half of 2021 was USD12.74/pound Mo, representing a year-on-year increase of 40.77%, with the lowest price of USD9.85/pound Mo and the highest price of USD20.65/pound Mo.

(4) Tungsten market

The major tungsten products of the Company are ammonium paratungstate (APT) and tungsten concentrate, which are sold in the domestic market in China. In the first half of 2021, in the context of the Spring Festival holiday, the Two Sessions, environmental supervision and a surge in the price of metals commodities, the tungsten market showed an upward trend amid volatility as a whole. From the beginning of the year to early March, the output of tungsten concentrate and APT have both declined. In addition, a price increase was expected with the surge of metals commodities prices and the better-than-expected export of tungsten products jointly promoted an upward trend of domestic tungsten concentrate and APT prices. In the mid-to-late March, after the domestic APT price rose to its previous high of around RMB148,000/tonne, traders first cut prices slightly, which rapidly changed the diversified market atmosphere, and APT transaction price gradually fell back to around RMB140,000 per tonne. As the national environmental protection team visited Jiangxi province and Hunan province again in April, coupled with the increase in the price of long-term contracts, the price of tungsten raw materials climbed up near the upward pressure point again in early to mid-April. However, due to the poor demand, tungsten raw material market subsequently maintained stable for nearly two months. In late June, large tungsten enterprises raised their raw material prices by RMB500/tonne. This has disrupted the plan of some downstream enterprises to supplement raw materials at a low price and forced them to purchase APT in the market, thusly increasing the trading volume in the market and driving the price of APT up to around RMB150,000 per tonne.

In the first half of 2021, the average price of wolframite concentrate was RMB1,452.38/metric tonne unit, a year-on-year increase of 12.78%. The average price of APT was RMB141,900 per tonne, a year-on-year increase of 10.34%.

According to statistics from Metal Bulletin, the average price of APT in the European market in the first half of 2021 was USD266.33/metric tonne unit, a year-on-year increase of 14.35%, with the lowest price of USD235/metric tonne unit and the highest price of USD286/metric tonne unit.

(5) Niobium market

The major niobium product of the Company is ferroniobium, which is sold to the international market and Chinese market. In the first half of 2021, with the normalization of the pandemic containment in China, the gradual implementation of the 14th Five-Year Plan, and the advance of rapid development of new-type 5G technology as well as New Urbanization under economic stimulus plans, China's economy led the global recovery at a rapid speed. In May, the domestic crude steel output hit a monthly high of 99.45 million tonnes, driving a rapid increase in domestic niobium resource demand. Meanwhile, affected by factors such as delays of international shipping, the quantity of ferroniobium transported from Brazil to China decreased considerably (only 5,280 tonnes in the first quarter, which had decreased by 36% month-on-month). Subsequently, the supply capacity in Chinese market decreased. The imbalance between supply and demand in the domestic niobium market began to escalate, and drove the quotation of 65% ferroniobium on related websites to steadily increase from RMB195,000 per tonne to RMB202,000 per tonne.

(6) Phosphorous market

The major phosphorus products of the Company are phosphate fertilizer, phosphoric acid and DCP, which are sold in the Brazilian domestic market. In the first half of 2021, the global phosphate market witnessed one of the greatest recoveries in history, rebounding from its low level in the previous year. As driven by the increased global demand for and the price increases of crop products, the benchmark prices of major international phosphate increased by over 80%. In the last week of June 2021, the CFR price (cost and transportation fees, the same below) of MAP in Brazil ranged from USD753/tonne to USD758/tonne, representing an 85% rise compared with that at the end of December 2020 (ranged from USD405/tonne to USD410/tonne). Similar price trend also appeared in other major consumer countries such as the United States, India and China. On the supply end, since global leading manufacturers, including OCP, Ma'aden and PhosAgro, suffered from plant maintenance or logistical problems, the global phosphate market experienced tension in supply due to scarcity in products and low inventory level. On the demand end, the demand for phosphate remained high. These jointly raised its price, aligning with the trend of chemical fertilizer.

(7) Mineral trading market

Copper: Copper saw significant price volatility in the first half of 2021, with the LME three-month copper price hit an all-time high of USD10,747/tonne, an increase of 38% from the price at the end of 2020, mainly attributable to opinion on macroeconomic and long-term demand expectation for copper due to "green" revolution in the automotive sector and electrification promoting. Meanwhile, demand for copper in the United States was very strong and more orders and forward contracts were entered into by European refined copper consumers. In addition, the consuming of secondary copper will also affect the demand for copper cathode.

In the first half of 2021, the copper concentrate market showed clear signs of tightness, with spot TC/RC of melting enterprises reaching its low level of 25/2.5 in May. The market then showed a downward trend due to the increase in domestic inventories in 2021. Since parts of manufacturers underwent maintenance at the same time, the TC/RC increased towards 50/5 at the end of June.

Lead and zinc concentrates: Spot treatment charge for zinc concentrates eventually declined from approximately USD310/dry metric tonne in early 2020 to USD70-80/dry metric tonne. In the first half of 2021, despite the tense market, the treatment charge for zinc concentrate was virtually unchanged, ranging from USD60/dry metric tonne to USD80/dry metric tonne. At the same period, the spot treatment charge reached USD40-50/dry metric tonne due to the tight lead concentrate market. In addition to overall market supply and demand, the COVID-19 pandemic led to severe production disruptions, with some mine production affected and a large carryover of sales contracts to 2021, resulting in reduced market spot supply.

Aluminum: The aluminum market was volatile during the first half of 2021. Aluminum price achieved a strong performance. The LME three-month price rose from USD1,980/tonne at the end of December 2020 to USD2,535/tonne at the end of June 2021. Regional premiums increased across the board. Demand in most consumer markets was strong. In addition, arbitrage between Shanghai Futures Exchange and London Metal Exchange markets opened from time to time, stimulating China's aluminum imports in the first half of the year.

Specialty metals: Driven by strong demands for electric vehicle battery and demand for stainless steel in Chinese market, both cobalt and nickel were off to a strong start in 2021. The lowest range price for standard grade cobalt from Metal Bulletin rose from USD15.30/pound at the start of the year to a peak of USD25.30/pound in early March, while the price for LME nickel reached USD19,000/ tonne. In the niobium market, the first half of 2021 saw a significant rebound in the ferrous metal industry. The restart and replenishment program of steel manufacturers after the pandemic contributed to a substantial increase in demand. Since the logistics of supplies outside Brazil was limited, the increasing demand could not be met and this resulted in a 20% price increase.

(II) MARKET PROSPECTS

1. Copper market

In the second half of 2021, the supply of copper cathodes and copper concentrate is expected to improve. However, the uncertainty of the outbreak remains, especially the risk of disruption on the supply side of copper from the Delta strain and the risk of a delayed exit from the central bank stimulus program cannot be underestimated. Domestic demand in China may also be gradually released, which was suppressed previously due to high prices. In general, it is expected that the supply and demand in the copper cathode and copper concentrate market in the second half of 2021 will be slightly looser than that in the first half of the year. However, the risks and uncertainties brought by the pandemic shall be alerted. The relative weakness of the U.S. dollar will still support the copper prices. China's stimulus policy will not make a "swift turn", which will also help maintain market sentiment and physical consumption. Clean energy-related consumption under the carbon neutralization target will continue to support demand for copper.

2. Cobalt market

It is expected that cobalt price will remain high in the second half of 2021. On the supply side, new and expansion projects in DRC/Africa and Southeast Asia will release capacity in a steady manner, but in view of the overall low inventory level of the industry chain, the supply pressure is not significant. On the demand side, with the rising market penetration of the European new energy vehicle, some countries desire to grab the opportunities and earn sales in the second half of the year. North America's focus on the development of clean energy is also growing, with demand growth benefiting from increased government subsidies and the launch of star models. Chinese market faces short-term market share expansion of lithium iron phosphate battery, fueling the trend of electrification popularity. As more and more vehicle models equipped with highperformance NCM batteries made by leading battery producers entered the market, the middle and highend market is expected to usher in explosive growth. In addition, benefiting from the popularization of 5G base stations and the expansion of emerging consumer electronics market, consumer electronics will embrace an opportunity to develop. During the 14th Five-Year Plan period, there will be a promising demand in the energy storage market of China. The cobalt prices still have the growth potential in the medium and long term.

3. Molybdenum market

In the second half of 2021, in view of the government's determination to stimulate the economy, investment in railway, highway and infrastructure construction will continue to increase. In particular, in the first half of the year, the approval and construction progress of a large number of key projects were accelerated, which would benefit the overall demand for steel. It is expected that the crude steel output of China will remain at a high level in the second half of the year, which will drive the continuous growth of global molybdenum demand. In terms of the market trend of molybdenum, in the second half of the year, its supply is expected to tighten and its demand is expected to remain at a relatively high level in the world. In addition, the Federal Reserve raised interest rates earlier than previously expected, which is expected to affect the price trend of bulk metal. The price of molybdenum remains at a historic high, and its domestic inventories are continually being consumed. As a result of the above, it is expected that the price of molybdenum in domestic market will fluctuate at a high level in the second half of 2021, followed by a gradual callback.

4. Tungsten market

In the second half of 2021, with the stricter supervision on environmental protection, the steadily decline in reserves and grades of tungsten in large mining enterprises, as well as the level-by-level strengthening of entry threshold for regional small mines, the overall operation cost of the mines will maintain upward boom, and the mining cost of tungsten mines will increase rigidly. These will provide cost support for the healthy operation of the tungsten market. It is difficult to reverse the steady decline in the production of domestic tungsten concentrate, despite the fact that some tungsten mines in Shaanxi are scheduled to be put into operation in the second half of the year. Besides, economic recovery is in continuous progress, and the terminal demand for tungsten is expected to increase. This requires the gradual consumption of the surplus inventories in 2020, to provide support for the supply and demand in tungsten market and ensure its healthy operation. In terms of domestic economic development trend, in the first year of the National 14th Five-Year Plan, the State vigorously promoted the upgrade of the high-tech industry and equipment manufacturing industry under the influence of increasing infrastructure investment and the in-depth development of the "Belt and Road" initiative. As a result, demand for tungsten in domestic market is expected to climb to a new record high, which will provide policy support for the healthy operation of tungsten market. In general, in the second half of the year, the supply of tungsten in domestic market is relatively restrained and the demand for it shows a relatively optimistic growth, in light of which, the tungsten market is expected to fluctuate at a high level.

5. Niobium market

In the second half of 2021, the tightening capacity of international shipping has not significantly improved. As a result, the supply of domestic niobium will remain restrained. With the gradual resumption of chip supplies, the end demand for domestic niobium, especially in the fields of vehicles and mobile phones, is expected to significantly drive the demand for niobium. In early July, to support the development of the real economy, the central bank lowered the reserve deposit ratio of financial institutions by 0.5 percentage points, which kicked off the State's policy support for the development of the real economy and facilitated the healthy development of the non-ferrous metal industry, including niobium resources. In addition, due to the high concentrated supply of domestic niobium resources, the price of domestic niobium products is expected to remain stable at a high level in the second half of 2021.

6. Phosphorus market

In the second half of 2021, the price of agricultural products is expected to remain high, and demand in key consumption areas (particularly India, Pakistan and Bangladesh) will rise, so global phosphate supply is expected to remain constrained in the coming months. In the upcoming fourth quarter, prices of MAP and DAP will show a downward trend as seasonal demand weakens. MAP price in Brazil is expected to reach a high level in the third quarter, and then fall back gradually. To grab the opportunity brought by high prices, global leading phosphate producers will increase production through restarting mothballed facilities and expediting the commencement of new projects, which will pose pressure on prices by the end of 2021 and the beginning of 2022.

7. Mineral trading market

Copper: In the second half of 2021, the demand for copper cathode is expected to improve and the demand for copper is partially sustained, partially due to the fall in copper prices. In China, however, the consumption balance between copper cathode and secondary copper is still very sensitive to the price. In the concentrate markets, on the one hand, significant additional concentrate will be produced and marketed, such as Spence, Timok, Kamoa-Kakula, Grasberg Mine and Quellaveco. On the other hand, China's smelting capacity will be expanded through the restart of promising old projects and the new projects that will be put into operation in 2022. In general, there will be relatively sufficient market supply in the second half of 2021, but mineral production is still exposed to risks of interruptions or output reductions caused by labour negotiations in Chile or other factors.

Lead and zinc concentrates: Supply will be more stable in the second half of 2021, and spot processing fees will be slightly higher in the third quarter. However, due to seasonal shutdown for maintenance, spot processing fees may weaken in the fourth quarter.

Aluminium: In the second half of 2021, the market is expected to remain fluctuant. We expect that the overall market will keep robust, however, many domestic and foreign policy issues need to be considered and addressed to ensure its further development.

Specialty metals: In the second half of 2021, the growth in electric vehicle industry and the development in global electrification, low carbon and zero emissions continue to support the demand for cobalt and nickel. For the niobium market, the ferrous metal sector will maintain robust growth momentum with the accelerated recovery from the COVID-19 pandemic. In particular, the industry will remain dynamic with the support from the government act on infrastructure and construction, and the inflexible supply and mismatched supply chain will provide solid support for niobium and iron prices.

This section is for informational purposes only and does not constitute any investment advice. The Company has endeavoured to make the information contained in this section accurate and reliable, but does not assume any responsibility or provide any warranty for the accuracy, completeness or validity of all or part of the information contained therein. The Company will not be liable for any errors and omissions. The contents in this section may contain some predictive statements based on certain subjective assumptions and judgments about the future politics and economy and may therefore be subject to uncertainty. The Company shall not be responsible for updating the data or correcting any subsequent errors. The opinions, estimates and other data contained herein are subject to change or withdrawal without prior notice. The main source of the data involved in this section is comelan.com, US Metals Week, London Metal Exchange, UK Metal Bulletin, etc.

BUSINESS REVIEW

In the first half of 2021, the production volume of major products of the Company is as follows:

Major products	Business sector	Production guidance range for 2021 (0'000 tonnes)	Production volume in the first half of 2021 (tonnes)
TFM copper metal Cobalt metal	Copper and cobalt business in Congo (DRC)	18.73–22.89 1.65–2.01	98,149 7,010
Molybdenum metal Tungsten metal (excluding Yulu Mining)	Molybdenum and tungsten business in China	1.38–1.69 0.69–0.84	7,999 4,272
Iron concentrates (65%)		/	144,950
Niobium metal Phosphate fertilizer (HA+LA)	Niobium and phosphorus business in Brazil	0.87–1.06 99.9–122.1	3,947 520,506
NPM copper metal (80% equity interest of NPM)	Copper and gold business in Australia	2.41–2.94	11,656
NPM gold (80% equity interest of NPM)		2.13–2.60 (0'000 ounces)	9,643 (ounces)
IXM metal trading (sales volume)
Concentrate products		479–585 (physical	1,303,955
Refined metal products	Trading business	trading volume)	1,844,022

OPERATION REVIEW

1. Pandemic prevention and control

In the first half of 2021, the COVID-19 pandemic had been effectively controlled in China, while the pandemic was still severe in foreign countries. Adhering to the concept of "Life safety is above everything", the Company continued to increase the pandemic prevention and control efforts. It managed to ensure business operations in all sectors are running in a good order by strengthening protection and control, integrating prevention with control and other means. At the same time, the Company actively paid attention to the "Spring Vaccination Program" promoted by the State, and provided support and assistance for overseas vaccination for Chinese and foreign employees. In the business communities in Congo (DRC), the Company actively assisted the local government in promoting vaccination to protect the lives of employees in the mining areas and residents in the communities.

2. Acceleration of key project progress

In order to further explore the endogenous growth potential of proprietary mines and turn resource advantages into productivity advantages to enhance the Company's profitability and core competitiveness, the Company was actively committed to production expansion and effectiveness increase in the key project in the DRC (10K project) and expansion project of copper and gold mine in Australia. Since the commencement of each project, TFM site, Australia site and the contractor have received strong support from the Company and other parties. While fighting against the pandemic, they have taken effective measures with cooperation units to continuously refine and optimize the construction plan and have integrated the resources from all parties to ensure smooth running of the project construction. As of the reporting date, the 10K project has been officially put into operation and the expansion project in Australia has fully reached production.

Meanwhile, in the first half of the year, the Company organized domestic and overseas third-party institutions to conduct feasibility study and analysis on project development of TFM Copper and Cobalt Mixed Mine and KFM Copper and Cobalt Mine in the DRC, laying a solid theoretical foundation for the further development of Copper and Cobalt resources in the DRC.

3. Upgrade of the management structure

In the first half of 2021, the Company continued to push forward the transformation of its management structure, successfully completed the general election of the Board and the Supervisory Committee. Establishment of this new senior management team has facilitated further upgrade of the management structure. During the reporting period, while continuing to improve the structure of headquarters, the Company further promoted management structure adjustment of business segments in Brazil. It adopted a new model of "joint management by Chinese and Brazilian personnel with the Chinese personnel at the dominant position", which was proven to be successful at this stage.

4. Construction of incentive system

The Company is committed to establishing an effective, three-dimensional and multi-level compensation incentive system, adhering to the concept of "achievement sharing" to realize consistency and long-term benefits for the Company, employees and shareholders. In the first half of 2021, the Company launched the first Employee Share Ownership Plan, covering members of the core senior management team. Meanwhile, the Company has formulated the second Share Repurchase Scheme and actively studied the follow-up incentive measures to cover more employees, so as to effectively achieve win-win development for both the Company and the employees.

5. Trading sector optimization

In the first half of 2021, since the synergy between mining and trading sector was further brought into play, the trading sector continued to make efforts to maintain strong operating results, with IXM achieving a net profit attributable to the parent company of approximately RMB0.369 billion.

6. Deepened cost reduction and efficiency enhancement

In the first half of 2021, the Company continued to implement the concept of "cost reduction and efficiency enhancement" through various measures, including exploring to establish a sharing system for cost reduction, promoting and applying the excellent cost reduction sharing model of TFM in each business segment. During the reporting period, the production and operating costs of the Company's mining business segments were reduced by more than RMB0.36 billion year-on-year, of which, Congo (DRC) copper and cobalt segment achieved a reduction in production and operating cash costs of approximately USD30 million; Brazil's niobium and phosphorus segment achieved a reduction in production and operating costs of USD8.00 million; and the business in China achieved a year-on-year decrease of more than RMB80 million in production and operating cash costs.

7. Progress of joint venture project

In December 2020, the Company acquired 95% equity interest in Kisanfu copper-cobalt mine project in Congo (DRC) at a consideration of USD550 million. In order to enhance the cooperation with the resource end-use customers for promoting the long-term and healthy sustainable development of industries, the Company signed the Strategic Cooperation Agreement with Ningbo Brunp Contemporary Amperex Co., Ltd. ("Brunp CATL"), which is indirectly held by Contemporary Amperex Technology Co., Limited in April 2021, pursuant to which, Brunp CATL, through its wholly owned subsidiary Hongkong Brunp and CATL Co., Limited, transfered 23.75% interest of the Company's Kisanfu copper-cobalt mine at a total consideration of USD137.5 million, and will also cooperate with the Company in respect of product purchase and sale and establishment of comprehensive strategic partnership of resource development of new energy metals.

This cooperation agreement not only makes the Company become the long-term supplier of cobalt products for the world's largest power battery manufacturer, but also strengthens the long-term strategic synergy between the Company and its world-class battery raw material purchasing customers. Powerful combinations between the Company and its partners will fuel the future development and construction of the KFM project, contributing to the development of all stakeholders and the new energy industry. At present, the equity transfer is steadily moving forward.

Operation Prospects

1. Preventing and controlling the COVID-19 pandemic, consolidating the management foundation, maintaining stable production and operation, and ensuring the achievement of the annual target

Facing the normalization of the global epidemic, the Company will continue to strengthen the deployment of pandemic prevention and control, coordinate global resources to secure on-site operation and vaccination of business sectors, ensure the safety of global employees, and maintain stable business operations. Meanwhile, the Company will speed up the construction and commissioning of major projects, make every effort to promote the smooth implementation of 10K project in the Congo (DRC), releasing the production capacity to tap potential and increase efficiency. The Company will continuously improve the "5233" management structure and actively explore effective combination China's management mode with overseas practice, achieving the goal of cost reduction and efficiency increase by process reengineering.

2. Transforming resource advantages into production capacity advantages, and greatly improving profitability and cash flow generation ability

With the help of the Company's advantageous resource deployment in Congo (DRC), focusing on the TFM mixed mine project and the KFM development project, the Company will strive to significantly increase the annual production capacity of copper and cobalt within two years, so as to bring the Company's overall profitability and operating cash flow to a new level. In the second half of the year, the Company will make every effort to guarantee the equipment and engineering bidding and procurement of the TFM mixed mine project, as well as the construction of various infrastructures, and meanwhile, accelerate the process of the design optimization of the KFM development project and the preliminary development preparations such as clearing and stripping.

Meanwhile, China operation of the Company will continue to properly carry out the comparison and optimization of the feasibility design plan of the Xinjiang Hami molybdenum mine, actively promote the government approval and initiation procedures involved in the project, and jointly implement the supporting infrastructure deployment with the project partner of Hami District Administrative Office.

3. Deepening the integration and synergy between the mining and trading sectors to give full play to the competitiveness of IXM in the global trading sector

The Company will continue to deepen the integration of the mining and trading sectors, further promote logistics collaboration in key regions such as Africa, improve the integration of bulk raw materials sourcing and procurement, and leverage IXM's advantages in international logistics, warehousing, quality inspection, risk control, etc. The Company will continue to provide IXM with strong support to broaden its product line and expand its global market share, especially in the metal and commodity sectors related to the new energy industry, to build IXM into a new profit growth point for the Company, and to enhance the Company's industry and market influence.

4. Vigorously accelerating the deployment in key regions and key varieties, and cultivating new business and profit growth points in the future

Relying on the existing deployment in Africa, South America and Southeast Asia, and with the help of IXM's global network, the Company will focus on resource varieties related to the new energy industry and domestic shortages, actively searching, screening, and investigating high-quality projects at different phases, increasing investment and M&A intensity. Drawing lessons from IXM's trade finance experience, the Company will also try different investment methods and structures. While maintaining prudence and self-discipline, the Company will focus on changes in the industry's long-term supply and demand structure and corporate development, and cultivate new business and profit growth points in the future as soon as possible.

5. Further consolidating its leading position in the global industry ESG, and continuously improving the sustainable development governance model

According to the latest guideline of Environmental, Social and Governance Practice Disclosure issued by the Hong Kong Stock Exchange, the Company will complete the formulation of short-term and long-term environmental goals, further improve its strategic planning in the field of sustainable development, and consolidate its leading position in the industry. Meanwhile, the Company continues to promote sustainable development risk governance, focusing on continuously strengthening the responsible supply chain of mineral products, especially continuing to promote the operation in Congo (DRC) to meet the leading responsible supply chain international standards, and by cooperating with industry partners to develop new technologies such as blockchain to enhance the transparency of the mineral supply chain. Moreover, the Company will further play its leading role in the global mining ESG field, strengthen dialogue with different stakeholders, and promote best practices in the ESG field.

6. Dynamically managing the balance sheet around the development strategy and accelerating the construction of the information system

Liquidity management and balance sheet security are the basis for realizing long-term development strategies of the Company. In July, the Company successfully issued the first inter-bank market green bond for a private enterprise in Henan Province, setting a new low for domestic private enterprises in the same industry with the same period of interest rate issued during the year. At the end of the first half of 2021, the Company's total credit line increased by more than RMB10 billion compared with the end of 2020, monetary funds increased by more than RMB2.4 billion, and overall financing costs decreased significantly compared with the same period of last year. In the second half of 2021, the Company will continue to strengthen cooperation with financial institutions, broaden financing channels, and secure liquidity and a stable balance sheet while ensuring the financial support required for various strategic projects.

In the second half of 2021, the Company will continue to further promote the construction of integrated information network, draw on TFM's existing proven information system and form management systems and concepts, reorganize and deploy information management in the process of group operations, and integrate the information technology system of each business segment into a complete and unified information network, fully implement across the Company from the tactical level to the strategic level, and apply it in every process to support the entire process of the Group's operation and management.

7. Speeding up the construction of the incentive system and strengthening the strategic reserve of talents

The Company is committed to establishing an effective, three-dimensional, multi-level compensation incentive system, which will continuously improve various effective mechanisms including business incentives, equity incentives, immediate incentives, and long-term incentives. Each business sectors has formed a relatively mature salary system and long-term and short-term incentive policies that comply with local laws, regulations and labor union policies.

During the reporting period, the Company has launched the first phase Employee Share Ownership Plan for 2021 for the first time. In order to cover more core employees in management, business, and technology, and establish a long-term mechanism for risk-sharing and benefit-sharing, the Company has announced the implementation of the second phase Share Repurchase Scheme, which will be advanced in a timely manner based on the market and stock prices.

According to the rapid development of the global business needs, the Company will continue to promote organizational upgrades, adapt the structure, optimize the talent team at the headquarters level, build and train the group talent pool, implement the "5233" management concept, and strive to create three key talent teams: a team of business managers with an international vision and modern corporate management capabilities; a team of technical experts who master the core technology of the industry and strong R&D and innovation capabilities; and a team of highly skilled personnel who are proficient in specialized knowledge and technology, and have superb operational skills.

8. Strengthening the corporate culture construction and internal & external communication, and enhancing the brand influence globally

Cultural construction is the cornerstone to ensure the Company's long-term stable development. With the continuous deepening of the Company's global layout, the Company has established a new mission of "becoming a respected, modern and world-class resource company", initially forming development requirements of an excellent traditional and international smelting company, representing its company culture with CMOC's characteristics and mining feature. Relying on the spirit of the new corporate culture, the Company will continue to promote brand image and influence by promoting the brand upgrading around four dimensions of "more responsible", "more dynamic", "international" and "modern".

Based on the principle of "truth, openness and transparency", the Company will further enhance communication with investors and expand exchange channels. Moreover, we will actively promote the dissemination and interpretation of information, so as to enhance investors' recognization, understanding and support with respect to the Company and create a good external environment for the development of the Company.

FINANCIAL HIGHLIGHTS

Consolidated Balance Sheet

Item	Closing balance	Opening balance	Change
Current assets:
Cash and bank balances	19,427,350,078.33	16,947,648,080.87	14.63%
Held-for-trading financial assets	7,644,893,191.05	7,435,128,840.50	2.82%
Derivative financial assets	1,944,249,248.52	2,060,111,110.42	-5.62%
Accounts receivable	991,616,453.08	702,193,713.91	41.22%
Financing receivables	415,022,057.97	405,697,607.38	2.30%
Prepayments	2,355,414,982.47	1,405,838,288.25	67.55%
Other receivables	1,921,048,453.61	1,676,752,484.31	14.57%
Including: Interests receivable	385,498,054.06	344,628,170.18	11.86%
Inventories	24,219,215,358.99	21,170,188,531.54	14.40%
Other current assets	4,096,923,036.80	5,436,087,014.38	-24.63%
Total current assets	63,015,732,860.82	57,239,645,671.56	10.09%
Non-current assets:
Long-term equity investment	1,310,577,852.35	1,348,252,898.68	-2.79%
Other investments in equity instruments	86,213,230.14	86,214,350.23	0.00%
Other non-current financial assets	4,069,330,734.78	4,678,191,536.17	-13.01%
Non-current derivative financial assets	16,177,479.71	0.00	100.00%
Fixed assets	22,167,428,135.65	23,328,330,597.04	-4.98%
Construction in progress	4,641,223,299.23	3,958,981,388.37	17.23%
Right-of-use assets	472,161,787.77	487,786,129.11	-3.20%
Intangible assets	20,473,698,405.43	21,511,518,662.57	-4.82%
Long-term inventory	6,034,053,611.19	5,845,918,877.35	3.22%
Goodwill	392,329,871.83	396,265,256.07	-0.99%
Long-term prepaid expenses	112,375,513.06	127,533,613.45	-11.89%
Deferred income tax assets	770,771,009.50	497,166,341.93	55.03%
Other non-current assets	3,446,209,224.37	2,935,444,567.34	17.40%
Total non-current assets	63,992,550,155.01	65,201,604,218.31	-1.85%
Total assets	127,008,283,015.83	122,441,249,889.87	3.73%

Item	Closing balance	Opening balance	Change
Current liabilities:
Short-term borrowings Held-for-trading financing liabilities	25,457,860,790.16 4,951,066,912.87	20,464,481,097.49 4,291,950,709.21	24.40% 15.36%
Derivative financial liabilities	3,962,468,946.40	5,021,779,572.93	-21.09%
Notes payable	681,851,707.84	627,937,567.02	8.59%
Accounts payable	1,272,661,795.97	876,914,865.30	45.13%
Contract liabilities	524,778,522.42	371,984,342.17	41.08%
Employee benefits payable	628,474,938.30	769,350,564.51	-18.31%
Taxes payable	1,664,629,933.27	845,217,960.37	96.95%
Other payables	3,661,351,367.05	1,599,240,517.18	128.94%
Including: Interests payable	149,284,088.38	222,893,031.58	-33.02%
Dividends payable	727,234,004.84	27,885,796.67	2,507.90%
Non-current liabilities due within one year	4,027,603,223.15	5,329,646,086.38	-24.43%
Other current liabilities	207,541,466.32	2,159,431,822.36	-90.39%
Total current liabilities	47,040,289,603.75	42,357,935,104.92	11.05%
Non-current liabilities:
Long-term borrowings	16,316,178,935.39	15,360,372,820.17	6.22%
Bonds payable	3,615,025,000.00	3,631,225,000.00	-0.45%
Non-current derivative financial liabilities	388,920,337.79	417,159,248.94	-6.77%
Lease liabilities	231,125,926.25	247,794,476.14	-6.73%
Long-term employee benefits payable	337,692,428.99	323,797,716.11	4.29%
Estimated liabilities	2,381,371,348.16	2,750,507,412.49	-13.42%
Deferred income	56,798,922.50	60,587,483.62	-6.25%
Deferred income tax liabilities	6,103,324,769.11	6,269,305,883.30	-2.65%
Other non-current liabilities	3,571,913,134.85	3,687,709,740.77	-3.14%
Total non-current liabilities	33,002,350,803.04	32,748,459,781.54	0.78%
Total liabilities	80,042,640,406.79	75,106,394,886.46	6.57%
Owners' equity (or Shareholders' equity) Paid-in capital (or share capital)	4,319,848,116.60	4,319,848,116.60	0.00%
Capital reserve	27,494,989,738.63	27,582,794,983.23	-0.32%
Less: treasury share	192,239,528.01	193,840,466.48	-0.83%
Other comprehensive income	-5,742,389,344.19	-3,585,690,161.76	-60.15%
Special reserve	755,937.91	230,899.06	227.39%
Surplus reserve	1,295,599,051.54	1,295,599,051.54	0.00%
Undistributed profits	11,168,661,865.42	9,472,838,365.96	17.90%
Total equity attributable to owners of the parent company	38,345,225,837.90	38,891,780,788.15	-1.41%
Minority interests	8,620,416,771.14	8,443,074,215.26	2.10%
Total owners' equity (or Shareholders' equity)	46,965,642,609.04	47,334,855,003.41	-0.78%
Total liabilities and owners' equity (or Shareholders' equity)	127,008,283,015.83	122,441,249,889.87	3.73%

Consolidated Income Statement

Item	The period	Same period last year	Change
I. Total operating income	84,815,930,336.26	46,743,857,426.26	81.45%
Including: Operating income	84,815,930,336.26	46,743,857,426.26	81.45%
II. Total operating costs	77,686,108,379.70	47,951,278,525.39	62.01%
Including: Operating costs	75,816,658,403.88	46,042,234,134.31	64.67%
Taxes and levies	527,866,553.80	473,523,891.24	11.48%
Selling expenses	37,415,774.00	42,397,113.57	-11.75%
Administrative expenses	684,666,806.20	652,396,360.62	4.95%
Research and development expenses	64,364,765.73	45,276,058.60	42.16%
Financial expenses	555,136,076.09	695,450,967.05	-20.18%
Including: Interest expense	891,376,235.11	924,037,414.16	-3.53%
Interest income	354,935,485.05	370,946,927.96	-4.32%
Add: Other income	19,567,029.71	12,913,448.92	51.52%
Investment income (losses are indicated by "-") Including: Income from investments in associates and	100,644,308.04	126,538,507.86	-20.46%
joint ventures	8,462,846.28	4,063,829.99	108.25%
Gains from changes in fair value (losses are indicated by
"-")	-2,851,031,616.92	1,402,251,271.09	-303.32%
Credit impairment losses (losses are indicated by "-")	-1,501,651.67	-691,868.25	-117.04%
Asset impairment losses (losses are indicated by "-")	-37,041,130.65	10,936,023.88	-438.71%
Income from the disposal of assets (losses are indicated
by "-")	-249,973.49	5,989,609.46	-104.17%
III. Operating profit (losses are indicated by "-")	4,360,208,921.58	350,515,893.83	1,144.33%
Add: Non-operating incomes	18,841,499.16	5,483,440.40	243.61%
Less: Non-operating expenses	19,360,877.27	5,456,346.06	254.83%
IV. Total profit (total losses are indicated by "-")	4,359,689,543.47	350,542,988.17	1,143.70%
Less: Income tax expenses	1,526,413,671.96	-651,605,940.69	334.25%
V. Net profit (net losses are indicated by "-")	2,833,275,871.51	1,002,148,928.86	182.72%
(I) Classified by business continuity
1. Net profit from continuing operations (net losses are indicated by "-")	2,833,275,871.51	1,002,148,928.86	182.72%
(II) Classified by ownership
1. Net profit attributable to owners of the parent company
(net losses are indicated by "-")	2,408,598,438.70	1,007,820,700.18	138.99%
2. Profit or loss of minority shareholders
(net losses are indicated by "-")	424,677,432.81	-5,671,771.32	7,587.56%

Item	The period	Same period last year	Change
VI. Other comprehensive income, net of tax	-2,267,385,789.96	-31,369,801.88	-7,127.93%
(I) Ot her comprehensive income attributable to owners of the parent
company, net of tax	-2,185,166,228.12	-150,121,562.57	-1,355.60%
1. Other comprehensive income that cannot be
reclassified that subsequently into the profit or
loss	0.00	-16,626,602.20	100.00%
(1) Ch anges arising from remeasurement of defined
benefit plan	0.00	-16,626,602.20	100.00%
2. Other comprehensive income that will be reclassified
subsequently into the profit or loss	-2,185,166,228.12	-133,494,960.37	-1,536.89%
(1) Cash flow hedge reserve	-1,849,123,160.57	-592,344,995.71	-212.17%
(2) Tr anslation difference of foreign currency
financial statements	-336,043,067.55	458,850,035.34	-173.24%
(II) O ther comprehensive income, net of tax attributable to minority
shareholders	-82,219,561.84	118,751,760.69	-169.24%
VII. Total comprehensive income	565,890,081.55	970,779,126.98	-41.71%
(I) Attributable to owners of the parent company	223,432,210.58	857,699,137.61	-73.95%
(II) Attributable to minority shareholders	342,457,870.97	113,079,989.37	202.85%
VIII. Earnings per share
(I) Basic earnings per share (RMB/share)	0.112	0.047	138.30%
(II) Diluted earnings per share (RMB/share)	0.112	N/A	N/A

Consolidated Statement of Cash Flow

			Unit: Yuan	Currency: RMB
Item		The period	Same period last year	Change
I.	Cash flows from operating activities Cash receipts from sales of goods and rendering of services Other cash receipts relating to operating activities	83,869,453,898.42 434,207,489.44	48,949,846,676.45 781,707,825.21	71.34% -44.45%
	Subtotal of cash inflows from operating activities	84,303,661,387.86	49,731,554,501.66	69.52%
	Cash payments for goods purchased and services received Cash payments to and on behalf of employees Payments of various types of taxes Other cash payments relating to operating activities	78,867,055,040.66 1,553,128,379.24 2,352,455,580.56 212,360,627.67	42,288,527,671.78 1,296,728,745.08 1,689,369,433.90 205,530,930.31	86.50% 19.77% 39.25% 3.32%
	Subtotal of cash outflows from operating activities	82,984,999,628.13	45,480,156,781.07	82.46%
	Net cash flows from operating activities	1,318,661,759.73	4,251,397,720.59	-68.98%
	II. Cash flows from investing activities Cash receipts from disposal of investments Cash receipts from investment income Net cash receipts from the disposal of fixed assets, intangible assets, and other long-term assets Net cash receipts from the disposal of subsidiaries and other operating units Other cash receipts relating to investment activities	4,115,727,545.54 111,508,011.79 6,284,951.00 55,505,000.00 3,773,981,091.30	10,397,960,735.43 107,643,039.24 358,336.64 0.00 262,090,210.78	-60.42% 3.59% 1,653.92% 100.00% 1,339.95%
	Subtotal of cash inflows from investing activities	8,063,006,599.63	10,768,052,322.09	-25.12%
	Cash payments to acquire or construct fixed assets, intangible assets, and other long-term assets Cash payments to acquire investments Other cash payments relating to investing activities Subtotal of cash outflows from investing activities	1,368,373,680.45 5,951,838,555.85 4,376,787,806.15 11,697,000,042.45	1,090,311,581.94 10,806,594,084.80 620,792,511.33 12,517,698,178.07	25.50% -44.92% 605.03% -6.56%
	Net cash flows from investing activities	-3,633,993,442.82	-1,749,645,855.98	-107.70%

Item		The period	Same period last year	Change
	III. Cash flows from financing activities Cash receipts from investments Cash receipts from borrowings Other cash receipts relating to financing activities	97,026,574.00 44,774,074,809.78 1,843,520,236.88	0.00 34,133,407,773.74 3,728,554,335.62	100.00% 31.17% -50.56%
	Subtotal of cash inflows from financing activities	46,714,621,620.66	37,861,962,109.36	23.38%
	Cash repayments of borrowings Cash payments for distribution of dividends, profits or payment of interest expenses Other cash payments relating to financing activities	41,757,711,467.08 755,251,753.49 674,196,485.02	32,237,322,920.13 1,580,264,427.41 3,608,659,212.86	29.53% -52.21% -81.32%
	Subtotal of cash outflows from financing activities	43,187,159,705.59	37,426,246,560.40	15.39%
	Net cash flows from financing activities	3,527,461,915.07	435,715,548.96	709.58%
	IV. Ef fect of foreign exchange rate changes on cash and cash equivalents	-34,851,683.66	44,484,344.76	-178.35%
	V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents	1,177,278,548.32 11,448,950,438.25	2,981,951,758.33 12,392,247,511.85	-60.52% -7.61%
	VI. Closing balance of cash and cash equivalents	12,626,228,986.57	15,374,199,270.18	-17.87%

MANAGEMENT DISCUSSION AND ANALYSIS

Overview

For the six months ended 30 June 2021, the net profit of the Group increased by RMB1,831 million or 182.73% from RMB1,002 million for the six months ended 30 June 2020 to RMB2,833 million. For the six months ended 30 June 2021, the net profit of the Group attributable to owners of the parent company was RMB2,409 million, representing an increase of RMB1,401 million or 138.99% from RMB1,008 million for the six months ended 30 June 2020.

Operating Results

For the six months ended 30 June 2021, the operating revenue of the Group increased by RMB38,072 million or 81.45% from RMB46,744 million for the six months ended 30 June 2020 to RMB84,816 million. For the six months ended 30 June 2021, the gross profit of the Group was RMB8,999 million, representing an increase of RMB8,297 million or 1,181.91% from RMB702 million for the same period last year.

The operating revenue, operating cost and gross profit margin of the principal businesses in the first half of 2021 and the same period of last year are set out as below:

Principal businesses by industry, by product and by region:

By industry	Operating revenue	Principal businesses by industry Operating cost	Gross profit margin (%)	Increase or decrease of operating revenue as compared to the same period last year (%)	Increase or decrease of operating cost as compared to the same period last year (%)	Increase or decrease of gross profit margin as compared to the same period last year (%)
Mineral exploration and processing Mineral trading (Note) Others	11,860,818,484.22 72,700,181,793.42 41,080.72	6,894,417,732.53 68,690,214,813.69 41,826.81	41.87 5.52 -1.82	30.51 94.08 -99.60	-6.82 78.42 -99.56	Increase of 23.28 percentage points Increase of 8.30 percentage points Decrease of 9.73 percentage points

			Principal businesses by product
				Increase or	Increase or
				decrease of	decrease of	Increase or
				operating	operating cost	decrease of gross
				revenue as	as compared	profit margin as
				compared to	to the same	compared to the
			Gross profit	the same period	period	same period
By product	Operating revenue	Operating cost	margin	last year	last year	last year
			(%)	(%)	(%)	(%)
Mineral exploration and processing
Molybdenum and	2,596,501,361.11	1,694,165,707.33	34.75	29.23	36.06	Decrease of 3.27
tungsten						percentage points
Copper and gold	658,495,921.53	442,130,457.27	32.86	2.87	-13.93	Increase of 13.11
						percentage points
Niobium and	2,545,728,713.68	1,760,798,404.00	30.83	18.84	-0.96	Increase of 13.83
phosphate						percentage points
Copper and cobalt	6,060,092,487.90	2,997,323,163.93	50.54	41.04	-22.39	Increase of 40.42
						percentage points
Mineral trading (Note)
Mineral metals	21,944,753,057.21	21,238,150,142.79	3.22	54.37	51.88	Increase of 1.59
						percentage points
Refined metals	50,755,428,736.21	47,452,064,670.90	6.51	118.37	93.56	Increase of 11.98
						percentage points
Others	41,080.72	41,826.81	-1.82	-99.60	-99.56	Decrease of 9.73
						percentage points

			Principal businesses by region
				Increase or decrease of operating revenue as compared to	Increase or decrease of operating cost as compared	Increase or decrease of gross profit margin as
By region	Operating revenue	Operating cost	Gross profit margin (%)	the same period last year (%)	to the same period last year (%)	compared to the same period last year (%)
Mineral exploration and processing
China	2,596,501,361.11	1,694,165,707.33	34.75	29.23	36.06	Decrease of 3.27
Australia	658,495,921.53	442,130,457.27	32.86	2.87	-13.93	percentage points Increase of 13.11 percentage points
Brazil	2,545,728,713.68	1,760,798,404.00	30.83	18.84	-0.96	Increase of 13.83
DRC	6,060,092,487.90	2,997,323,163.93	50.54	41.04	-22.39	percentage points Increase of 40.42 percentage points
Mineral trading (Note) China	23,542,445,385.02	23,085,099,193.61	1.94	100.07	87.47	Increase of 6.59 percentage points
Overseas	49,157,736,408.40	45,605,115,620.08	7.23	91.34	74.17	Increase of 9.15
						percentage points
Others China	41,080.72	41,826.81	-1.82	-99.60	-99.56	Decrease of 9.73 percentage points

Notes: IXM is engaged in the metal trading business which combines the futures and spot commodities. The Group only included the corresponding cost of the spot commodities in accordance with the requirements of the Accounting Standards for Enterprises when calculating the operating cost of the metal trade; the profit and loss related to the futures business is recognized in gains in fair value change. The gross profit margin of mineral trading business calculated in accordance with the International Accounting Standards for Business for the period was 1.21%.

Table of Major Products

					Increase or decrease of production volume as compared to the same	Increase or decrease of sales volume as compared to the same	Increase or decrease of inventory volume as compared
Major products	Unit	Production volume	Sales volume	Inventory/ volume	period last year	period last year	to the end of last year
					(%)	(%)	(%)
Mineral exploration and processing (Note 1)
Molybdenum	Tonnes	7,999	9,469	1,283	13.13	29.11	-15.03
Tungsten	Tonnes	4,272	3,857	844	-8.40	-8.34	-2.99
Niobium	Tonnes	3,947	3,679	781	-20.76	-24.24	-75.43
Phosphate fertilizer (HA+LA)	Tonnes	520,506	604,753	77,251	-5.39	25.45	-47.51
Copper (TFM)	Tonnes	98,149	96,720	6,281	7.89	12.01	-83.84
Cobalt Copper (80% equity	Tonnes	7,010	7,779	427	7.15	-14.39	-96.33
interest of NPM)	Tonnes	11,656	8,577	4,406	-16.34	-38.13	670.00
Gold (80% equity interest
of NPM)	Ounces	9,643	7,509	–	-11.44	-35.73	–
		Procurement	Sales	Inventory	Increase or decrease of procurement volume as compared to the same period	Increase or decrease of sales volume as compared to the same period	Increase or decrease of inventory volume as compared to the end
	Unit	volume	volume	volume	last year (%)	last year (%)	of last year (%)
Mineral trading
Concentrate products (Note 2)	Tonnes	1,360,478	1,303,955	367,153	1.89	5.32	-0.92
Refined metal products (Note 3)	Tonnes	1,949,879	1,844,022	377,892	41.83	61.02	-16.72

Note 1: Data relating to production volume, sales volume and inventory volume in the mineral mining and processing stage is from the mines.

Note 2: The primary products of metal minerals, mainly are the concentrates.

Note 3: The smelting of metal minerals and chemical products.

Operating Income

For the six months ended 30 June 2021, the operating income of the Group amounted to RMB84,816 million, representing an increase of RMB38,072 million or 81.45% from RMB46,744 million for the same period in 2020. Such year-on-year sharp increase in operating income was mainly due to increasing copper and cobalt prices and the growth of fundamental metal trading business during the current period.

Operating Costs

For the six months ended 30 June 2021, the operating costs of the Group amounted to RMB75,817 million, representing an increase of RMB29,775 million or 64.67% from RMB46,042 million for the same period in 2020. Such year-on-year sharp increase in operating costs was mainly due to the growth of fundamental metal trading business during the current period.

Research and Development Expenses

For the six months ended 30 June 2021, research and development expenses of the Group amounted to RMB64 million, representing an increase of RMB19 million or 42.22% from RMB45 million for the same period in 2020, mainly due to a year-on-year increase in research and development investment during the current period.

Gains from Changes in Fair Value

For the six months ended 30 June 2021, gains from changes in fair value of the Group amounted to RMB-2,851 million, representing a decrease of approximately RMB4,253 million or 303.35% from RMB1,402 million for the same period in 2020, mainly due to a year-on-year increase in losses from changes in fair value of derivative financial instruments during the current period.

Impairment Losses on Assets

For the six months ended 30 June 2021, the impairment losses on assets of the Group amounted to RMB-37 million, representing a decrease of RMB48 million or 436.36% from RMB11 million for the same period in 2020, mainly due to a year-on-year increase in impairment losses of inventories and fixed assets during the current period.

Income Tax Expenses

For the six months ended 30 June 2021, the income tax expenses of the Group amounted to RMB1,526 million, representing an increase of RMB2,178 million or 334.05% from RMB-652 million for the same period in 2020, mainly due to a year-onyear increase in income tax expenses as a result of significant growth of profits from copper and cobalt business during the current period.

Financial Position

For the six months ended 30 June 2021, the total assets of the Group amounted to RMB127,008 million, comprising noncurrent assets of RMB63,992 million and current assets of RMB63,016 million.

Current Assets

For the six months ended 30 June 2021, the current assets of the Group increased by RMB5,776 million or 10.09% to RMB63,016 million from RMB57,240 million for the year ended 31 December 2020, which was mainly due to changes in the following items:

Items	Balance as at the end of the current period (RMB)	Balance as at the end of last year (RMB)	Change in balance as at the end of the current period as compared to balance as at the end of last year (%)	Explanation
Accounts receivables	991,616,453.08	702,193,713.91		41.22 Accounts receivables for mineral trading business increased during the current period due to the increase in prices of commodity.
Prepayments	2,355,414,982.47	1,405,838,288.25		67.55 Prepayments for fundamental metal trading business increased during the current period.

Non-current Assets

For the six months ended 30 June 2021, the non-current assets of the Group decreased by RMB1,210 million or 1.86% to RMB63,992 million from RMB65,202 million for the year ended 31 December 2020, which was mainly due to changes in the following items:

Items	Balance as at the end of the current period (RMB)	Balance as at the end of last year (RMB)	Change in balance as at the end of the current period as compared to balance as at the end of last year (%)	Explanation
Deferred income tax assets	770,771,009.50	497,166,341.93		55.03 Deferred income tax assets increased due to the decrease in fair value of derivative financial instruments during the current period.

Current Liabilities

For the six months ended 30 June 2021, the current liabilities of the Group increased by RMB4,682 million or 11.05% to RMB47,040 million from RMB42,358 million for the year ended 31 December 2020, which was mainly attributable to changes in the following items:

Items	Balance as at the end of the current period (RMB)	Balance as at the end of last year (RMB)	Change in balance as at the end of the current period as compared to balance as at the end of last year (%)	Explanation
Accounts payables	1,272,661,795.97	876,914,865.30		45.13 Accounts payables for mineral exploration and processing business increased during the current period.
Taxes payables	1,664,629,933.27	845,217,960.37		96.95 Enterprise income taxes payable for copper and cobalt business increased during the current period.
Other payables	3,661,351,367.05	1,599,240,517.18		128.94 During the current period, the Company recognized the dividends payable for A Shares and H Shares, and received the earnest money for transfer of equity interests from Kisanfu
Other current liabilities	207,541,466.32	2,159,431,822.36		copper-cobalt mine. -90.39 Ultra short-term financing bonds were repaid during the current period.

Gearing Ratio

The gearing ratio (total liabilities divided by total assets) of the Group increased to 63.02% for the six months ended 30 June 2021 from 61.34% for the year ended 31 December 2020.

Capital Structure

The Group maintains sound capital structure and credit rating by issuing shares or loans to ensure normal production and operating activities. The Group might make adjustments to the capital structure in due course in light of changes in the economic environment by way of borrowing new debts or issuing new shares.

As at 30 June 2021, the equity interests of shareholders of the Company amounted to approximately RMB47 billion, among which the equity attributable to shareholders of the parent company was approximately RMB38.3 billion.

As at 30 June 2021, the Company issued 21,599,240,583 shares, comprising 17,665,772,583 A shares and 3,933,468,000 H shares.

As at 30 June 2021, details of the Group's borrowing and issuance of bonds are set out in Note V.22, Note V.31, Note V.32, Note V.33 and Note V.34 to the financial statements.

Cash Flow

For the six months ended 30 June 2021, the Group had cash and cash equivalents of RMB12,626 million, representing an increase of RMB1,177 million or 10.28% from RMB11,449 million for the year ended 31 December 2020.

Net Cash Flow from Operating Activities

For the six months ended 30 June 2021, net cash flow from operating activities of the Group amounted to RMB1,319 million, representing a decrease of RMB2,932 million or 68.97% from RMB4,251 million for the same period of 2020, mainly due to a year-on-year decrease of RMB3.7 billion of net inflow from operating activities of fundamental metal trading business during the current period.

Net Cash Flow from Investing Activities

For the six months ended 30 June 2021, net cash flow from investment activities of the Group amounted to RMB-3,634 million, representing a decrease of RMB1,884 million or 107.66% from RMB-1,750 million for the same period of 2020, mainly due to a year-on-year increase in payment for the settlement of derivative financial instruments and a year-on-year decrease in structured deposits due for collection during the current period.

Net Cash Flow from Financing Activities

For the six months ended 30 June 2021, net cash flow from financing activities of the Group amounted to RMB3,527 million, representing an increase of RMB3,091 million or 708.94% from RMB436 million for the same period of 2020, mainly due to a year-on-year increase in borrowings and the year-on-year decrease in repayment of gold lease during the current period.

Scope of Restricted Assets

At the end of the reporting period, details of the Group's major restricted assets are set out in the Note V of the Notes to the Financial Statements of this report, namely 1. Cash and bank balances, 2. Held-for-trading financial assets, 5. Financing receivables, 8. Inventories and 9. Other current assets.

Contingent Liabilities

For details, please refer to Note XII.2 of the notes to the financial statements.

Core Competitiveness

(I) The Company carries out and implements advanced sustainable development policies to escort the Company's long-term stable development

The Company is fully aware of the importance of sustainability to its access to resources, markets and capital, and has nurtured and actively implemented it as our new core competitiveness. The Company engaged an internationally renowned law firm to review and update its compliance and sustainability policies applicable across the Company, which took reference from international best practice frameworks, including the Sustainability Principles of the International Council on Mining and Metals (ICMM), the IFC Environmental and Social Performance Standards, the International Labour Organization Conventions, the International Bill of Rights, etc., to continuously improve the Company's governance framework on sustainability through continuous learning of international corporate good practice.

The Company has established a Sustainable Development Executive Committee, which is specifically responsible for promoting the decision-making of the Board and the Strategic and Sustainability Committee, and the implementation of the Company's sustainable development strategy at the executive level. All of the Company's mining zones are regularly reviewed by a third party to verify their compliance with the requirements of the Environmental, Health and Safety Management Certification System, which includes ISO14001 and OSHAS18001 certification. These measures have laid a solid policy and practice foundation for future sustainable development.

During the reporting period, the Company, together with IXM, joined Better Mining Programme and "Fair Cobalt Alliance (FCA)", and became a member of "Responsible Minerals Initiative (RMI)". The Company teamed up with Glencore and ERG to publish Re|Source project, aiming to promote traceability and responsible procurement of cobalt through blockchain technology. In view of the important role of being involved in the cobalt supply chain, the Company was elected as Vice Chairman of the Executive Committee of Cobalt Institute.

(II) The Company possesses unique and scarce products portfolio which effectively resist and reduce the impact of periodic fluctuation

Currently, the Company possesses a unique and scarce product portfolio including copper, cobalt, molybdenum, tungsten, niobium, phosphate, nickel and gold, and has industry-leading status for each resource variety. The resource varieties cover the basic metals, specialty metals and precious metals which are closely related to new energy applications, and the Company enters into the market of agricultural applications with metals phosphorus.

As important metals for consumption purpose, iron and copper enjoy a broad prospect of application. Cobalt, as one of the main raw materials of ternary batteries for electronic products and new energy vehicles, is very scarce for strategic purpose because of its low reserve in land resources. Molybdenum has excellent corrosion resistance and is widely used in stainless and specialty steels;The tungsten is known as "industrial teeth" and are mainly used in the production of hard-pressed alloys;Niobium is a specialty metal used in the steel industry, and its periodical volatility is weaker than other non-ferrous metals, and therefore the price is relatively stable, and the risk of industry volatility is relatively low. Phosphorus is mainly applied in agricultural field. Brazil, where the Company's business is operated, is bestowed with the vastest potential cultivable land in the world and represents the fourth largest consumer of fertilizer worldwide. Considering the shortage of local phosphates ore resources, phosphorus business of the Company in Brazil has obvious geographical advantages and develops steadily. Nickel metal has good corrosion resistance, magnetic and other properties, and is mainly applied in stainless steel and power battery field. In the future, the demand for nickel sulfate required by electric vehicles' power batteries may enter a burst period and become the biggest growth point of demand for nickel.

Product portfolio with unique and diversified natures enables the Company to better resist periodic fluctuation risks in resource sectors, enhance the ability to resist risks and fully enjoy the enormous benefits brought by the periodic changes in prices from various resources. At the same time, after entering the new energy track with copper, cobalt and nickel resources, the Company will cooperate more closely with the terminal customers of resource applications, to further consolidate the Company's leading position in the supply of new energy raw materials and enhance its competitiveness in the industry.

(III) The Company has a vast reserve of distinctive resources with excellent resource endowment

The Company is a leading global producer of cobalt and a significant producer of copper. The TFM Copper and Cobalt Mine operated by the Company in the Congo (DRC) represents one of the largest reserve and highest grade copper-cobalt mines in the world, with a mining area that covers over 1,500 sq. km. KFM copper and cobalt mine adjacent to TFM mining area acquired in 2020 is a world-class project. It is rich in copper and cobalt mine resources, with high average grade of copper and cobalt mine and huge exploration potential. It further consolidates the Company's position in the field of new energy raw materials, making the Company play an important role in the transformation of the global green energy industry. The Company's niobium/phosphate mining area in Brazil has rich reserves and bright prospect for exploration, with rich and high quality niobium and phosphate resources. The Company is one of the world's leading molybdenum producers and owns the Sandaozhuang Molybdenum/ Tungsten Mine in Luanchuan, Henan, China, a native molybdenum/tungsten mine large in scale, being a part of Luanchuan molybdenum mining field, the largest native molybdenum mining field in the world. The Luanchuan Shangfanggou molybdenum mine in close proximity to the Sandaozhuang Molybdenum Mine, which is owned by Luoyang Fuchuan Mining Co., Ltd., a joint venture of the Company, restarted mining and molybdenum ore supply was steadily improving, which effectively alleviated the molybdenum production decline brought by the reduction of molybdenum grade of the Sandaozhuang mine of the Company. Meanwhile, abundant iron resources accompanied by the Sandaozhuang molybdenum mine have been efficiently recovered. The Donggebi Molyubdenum Mine in Hami, Xinjiang, which is possessed by a subsidiary of the Company, is still to be developed.

(IV) The Company possesses leading production technology and extremely strong cost competitiveness

The Company currently owns a variety of mine resources, which have the advantage of integrated utilization. Therefore, the Company proactively pushes forward the comprehensive recovery and utilization of resources. Within the PRC, the Sandaozhuang Molybdenum/Tungsten Mine, a mine currently exploited and operated by the Company, recovers the by-product scheelite out of the molybdenum tailings, making the Company one of the largest tungsten producers. The successful industrialized production of by-products copper and iron created a new profit growth point for the Company. The industrialized production of by-products fluorite ore upon comprehensive recovery is being steadily promoted. Abroad, the TFM copper and cobalt mine operated in the Congo (DRC), which produces cobalt in hydrogen while producing copper anode, with the high-efficient hydrometallurgy recycling and utilization technology of copper and cobalt resources, which makes the cobalt production rank among the top in the world. Part of the niobium output of the niobium business segment operating in Brazil comes from the comprehensive recovery of phosphate tailings. With advanced low-grade niobium ore resource efficient recovery and comprehensive utilization technology, phosphate ore resource processing and utilization, and development and production of high value-added products technology. There are still a variety of recyclable metals in mines located in Brazil which are yet to be researched and utilized by the Company. In the future, experience in production techniques and technology research and development can be shared by comprehensive recovery operation at home and aboard, enjoying broad prospect.

The NPM mine operated by the Company in Australia adopted advanced mining technology of block caving, and the automation level of its underground block caving mining has reached 100%. All of the mines (except for NPM) currently operated by the Company have adopted the effective large scale open-pit mining. The Company strengthened the efficiency of ore mining and transportation through automation procedures to achieve lower mining costs. The Company made use of by-products with value from comprehensively recycling associated resources, strengthening the profitability of the mines operated and expanding the competitive edge in costs. Besides, the cash costs of all business sectors of the Company stand at an internationally leading position in the industry, and the Company enjoys relatively strong competitive edge in the industry.

(V) The Company has advanced technical capabilities in the industry and industry-leading innovative technologies

The Company has a strong technological research and development team. The Company successfully implemented industrialization of its various scientific research results, leading industrial technology improvement and further promoting the competitiveness of the Company.

The Company continuously invests in technological research, and passed the review of China's high-tech enterprises in December 2020. The Company won the award of "Industry-University-Research Collaboration Innovation and Promotion of China (First Prize)" (中國產學研合作創新成果獎一等獎) with its "Development and Application of Energy Management System of Pure Electric Mineral Card for Intelligent Road Condition"(純電動礦 卡智能路況能源管理系統開發與應用), and the Company was awarded the "First Prize for Science and Technology Achievement in China's Non-Ferrous Metal Industry" (中國有色金屬工業科學技術一等獎) with "Open-pit Mine Unmanned Mining Equipment and Key Technology of Intelligent Control Integration" (露天礦無人採礦裝備及智能管 控一體化關鍵技術). The Company's "5G smart mine construction based on cloud platform, Internet of Things, and big data" (基於雲平台、物聯網、大數據條件下的5G智慧礦山建設) and "Efficient Recovery of Rare Metal Rhenium in Molybdenum Smelting Eluent" (鉬冶煉淋洗液中稀散金屬錸的高效回收) were awarded the first prize of Henan Province Resource Science and Technology. It won the title of "National Enterprise Technology Centre" (國家企業 技術中心) jointly awarded by five ministries, including the National Development and Reform Commission and the Ministry of finance; won the Sixth China Industry Award. During the reporting period, the Company won the 22nd China Patent Excellence Awards with "A Method for Efficient Recovery of Rhenium in Molybdenum Smelting Waste Acid (一種從鉬冶煉廢酸中高效回收錸的方法)" and won the title of "2021 Leading Enterprise of Traditional Industries in Henan Province"(2021年河南省傳統產業頭雁企業).

The Company has successfully applied 5G technology to mine production. It created an unmanned intelligent mine through the application of unmanned mining equipment in a 5G environment, effectively saving costs while significantly enhancing the ability to guarantee safe production in the mine area and significantly improving production efficiency.

(VI) The Company creates a new model of Mining + Trading to create profit growth point

Through IXM basic metals trading company, the Company achieves a high degree of synergy and complementarity in customer, sales, supply chain and logistics, risk control and other aspects of the existing businesses while extending the Company's mine industry chain. IXM makes full use of existing global leading industry research and information advantages, deeply participates in the Company's resource integration and profit realization at many levels, and continues to give play to the industrial status and channel advantages of traders to help the Company expand its layout and influence in the resource field. By cooperating with the mining sector and the Company's investment, financing and research capabilities, it has created a new profit growth point, which helped the Company enhance global industry competitiveness and influence, and form new commercial competitive advantages.

(VII) The Company possesses a stable governance structure and balance sheet, safeguards the healthy development of the Company and values shareholder returns

The Company, as a pioneer and role model for the state-owned enterprises reform in China, had completed the mixed ownership reform of state-owned enterprises in 2014. Currently, a stable shareholder structure has been formed, which includes controlling equity by private institution, participation by state-owned capital and investment from industrial, strategic and large investment institutions. At present, the operating businesses basically are mature in-production projects, with stable profitability and strong cash generating capacity of each business segment. Shareholders collectively foster the development of the Company in accordance with the endorsement of industry development and Company's strategies.

At the end of the reporting period, the Company maintained a solid asset-liability structure, with cash and bank balances of RMB19.4 billion, credit of more than RMB120 billion granted to the Company by more than 60 domestic and overseas banks, and a large amount of unused credit and cash and bank balances provided sufficient liquidity for the Company.

Since the listing, the Company's annual average percentage of dividend has reached 52.96% of net profit attributable to the parent company for the year. The dividend policy is stable and the dividend return is considerable.

Possible Risks

• 1. As global prevention and control to the new pandemic peaks and mutated virus spreads, uncertainty about global economic recovery has increased, which could lead to financial and economic risks. The Company continues to pay close attention to the development of the pandemic, strengthen its prevention and control efforts, so as to ensure the safety of life and health of all employees and stable production and operation.
• 1. The Company has a large number of overseas investment projects, mainly located in DRC, Brazil, Australia, Switzerland and other countries and regions. As there are major discrepancies in state politics and economy development level among different countries, we may face different state policies and political risks.
• 1. The Company, which is in the non-ferrous metal mining and processing industry, primarily faces operational risks such as product price fluctuation, lack of mineral resources, safe production and natural disasters.

For details of the Company's "Possible Risks", please refer to the relevant sections of the Company's previous annual reports.

Basic Information of Major Controlled Subsidiaries and Invested Companies

Unit: Thousand yuan Currency: RMB

					Net profit attributable to the parent
Company name	Mine / Business		Interest held Operating revenue	Operating profit	company	Total assets	Net assets
CMOC Mining Pty Limited	Copper and gold mine in Australia Northparks	80%	669,272	157,877	115,956	5,190,394	3,233,557
TF Holdings Limited	Copper and cobalt mine in Congo (DRC)	80%	7,091,126	3,350,031	1,822,791	44,355,280	33,632,289
CMOC Brasil	Niobium and phosphorus mine in Brazil	100%	2,323,199	547,099	308,513	11,369,734	5,712,271
IXM	Global trading business	100%	79,301,212	438,828	369,481	35,428,783	4,980,593
PT.Huayue Nickel Cobalt	Nickel and cobalt business in Indonesia	30%	0	6,549	6,529	5,188,339	1,668,988

Material Events

1. Successful acquisition of 95% equity of the Kisanfu copper cobalt mine in DRC

Despite the challenges and restrictions on the global investment and acquisition business due to the pandemic, the Company still actively explored the path of development and looked for opportunities to improve global asset allocation.

The "Resolution on the Acquisition of the Kisanfu Copper and Cobalt Mine Project in DRC" was considered and approved at the 17th meeting of the third session of the Investment Committee of the Company on 1 December 2020. The Company acquired the DRC Kisanfu copper cobalt project with USD550 million. The total resource of the project is about 365 million tonnes of ore. The average copper grade is about 1.72%, and the copper metal contained is about 6.28 million tonnes; the average cobalt grade is about 0.85%, and the cobalt metal contained is about 3.1 million tonnes. Kisanfu copper-cobalt mine is rich in resources, with high average grade of copper and cobalt, which has huge exploration potential and has the potential to become a world-class cobalt ore in the future. The acquisition will be highly coordinated with the existing business in DRC, and further consolidate the Company's position in the field of electric vehicles and battery metals.

2. Signing of a Strategic Cooperation Agreement with Brunp CATL

On 11 April 2021, the Company entered into a Strategic Cooperation Agreement with Brunp CATL, a company indirectly controlled by Contemporary Amperex Technology Co., Limited, so as to integrate with our resource terminal application customers more closely. Brunp CATL acquired 23.75% equity interests of the Kisanfu copper cobalt mine from the Company through its wholly owned subsidiary Hong Kong Brunp CATL New Energy Co., Ltd. at a total consideration of USD137.5 million, and will cooperate on product purchase and sale and establish a comprehensive strategic partnership for the development of new energy metal resources. Through the signing of such cooperation agreement, the Company not only becomes the long-term cobalt product supplier of the world's largest power battery manufacturer, but also strengthens the Company's long-term strategic synergy with worldclass battery raw material procurement customers. The strong cooperation between the Company and its partners will boost the future development and construction of KFM project, and therefore contribute to all stakeholders and the development of new energy industry.

At present, the equity interests transfer is being steadily promoted.

3. Successful launch of the first phase of 2021 employee stock ownership plan

On 5 May 2021, the "Resolution on the First Phase of Employee Stock Ownership Plan of China Molybdenum Co., Ltd. in 2021 (Draft)" was considered and approved at the seventeenth extraordinary meeting of the fifth session of the Board, so as to further improve the corporate governance structure, fully mobilize the enthusiasm of the Company's management and core employees, and promote the long-term, sustainable and healthy development of the Company. The source of shares under the Employee Share Ownership Plan is ordinary A Shares of China Molybdenum repurchased through the Company's special account for repurchase. The size is 48,513,287 shares, and the price of the shares to be obtained by the holders is RMB2 per share, no less than 50% of the actual cost of the Company's repurchase. The launch of the plan will further improve the level of corporate governance and fully integrate the long-term development of the Company with the interests of employees.

4. TFM mixed mining project in DRC is being steadily promoted

On 6 August 2021, the "Resolution on the Mixed Mining Development Project in relation to TFM Copper/Cobalt Mixed Mine in DRC" was approved at the second extraordinary general meeting of the sixth session of the Board of Directors of the Company. To further enhance the core competitiveness of the Company in the international copper and cobalt industry, increase the revenue structure of copper and cobalt and efficiently recover the cobalt resources in copper and cobalt mines, the Board agreed to implement the mining development project in TFM Copper/Cobalt Mixed Mine within the total investment amount not more than USD2.51 billion. The project was a key project of the Company in DRC to increase production and improve efficiency. The purpose was to enhance internal potential of the Company and turn our resource advantage into productivity advantage. This is an important measure to enhance the Company's profitability and core competitiveness.

For details of the above, please refer to the relevant announcements published on the Company's website, designated disclosure media and the websites of the SSE and the Hong Kong Stock Exchange.

EXPLORATION, DEVELOPMENT AND MINING ACTIVITIES

(1) Exploration Activities

Mines in the PRC:

Sandaozhuang Molybdenum and Tungsten Mine: During the reporting period, production exploration of mines was conducted in the northern mine areas, with drilling work from the surface of the opencast mine. The Company performed the construction of 5 drilling holes with core drill rigs, with the hole depth of 577.8 metres. In order to prevent the geological disasters and ensure the safety of open-pit mining, we carried out mined-out area exploration in the northern and southern mine areas, drilled from the surface of the opencast mine, and used reverse circulation drill rigs to drill 25 exploration holes, with the hole depth of 948.5 metres.

Shangfanggou Molybdenum Mine: During the reporting period, in order to ensure the production safety and stability of the ore supply, we carried out mined-out area exploration and production exploration at 1,202 metres and 1,180 metres in the horizontal area and key production area, used the reverse circulation drill rigs to drill 12 exploration holes in mined-out area, with the hole depth of 940 metres, and used the core drill rigs to drill 13 production exploration holes, with the hole depth of 3,103 metres.

Xinjiang Molybdenum Mine: No exploration activities were conducted during the reporting period.

Mines outside the PRC:

TFM Copper and Cobalt Mine in the DRC: In 2021, exploration activities were carried out mainly around coppercobalt deposits and limestone deposits. During the reporting period, the total drilling was 22,649 metres (including 20,192 metres in the copper-cobalt deposit and 2,457 metres in the Mofya limestone deposit). The main geological exploration activities were conducted in the areas of Pumpi, Kamalondo, Fungurume Hill, Lumupuya, Kamanyingu, Kansalawile and Mambilima. We will continue drilling in the areas of Pumpi, Kamalondo, Kachimilombe and Mofya in the second half of the year.

KFM Copper and Cobalt Mine in the DRC: In 2021, exploration activities were mainly based on the analysis of footprints and resource distribution characteristics of the industrial plants in the eastern mining area and the northwestern mining area, verification of the authenticity and reliability of previous analysis results of the drilling and sample in relation to the main ore bodies in the first mining area. We drilled a total of 14 core holes with the total footage of 4,937.5 metres.

Niobium and Phosphate Mine in Brazil:

Niobium: During the reporting period, medium-and long-term drilling activities at Boa Vista Mine was conducted, with a view to converting resources into reserves. As of 30 June 2021, 4 diamond drilling holes with a total depth of 832.30 metres have been completed. It is scheduled to be finished in late September 2021. For short-term activities at Boa Vista Mine, in order to support mining plan and grade control, we drilled 455 holes through reverse circulation (RC), with the depth of 12,101 metres. From February 2021 to April 2021, the Company drilled 6 verification holes and 1 downward geophysical survey hole in the Leste area of Niobium Mine, and carried out geophysical survey on these holes, with the total depth of 1,172.25 meters, to verify some historical drilling data in the area.

Phosphate: During the reporting period, short-term drilling for Chapadão Mine commenced in February 2021 and was completed in May 2021, with 60 drilling holes and the total depth of 2,764.35 metres, which is for the purposes of preparing mining plan and improving grade control. In the second half of this year, we will finish the update of the ore body model of Mina Chapadão.

NPM Copper and Gold Mine in Australia: During the reporting period, we completed the resource assessment of NPM in relation to the drilling for ML1247, to make out ore distributions in the north and the east of E26. We completed the drilling for EL5323 and EL5801 that had been authorized to be explored, with the drilling depth of 6,293 metres. We have completed the resource assessment for E44, and are conducting the feasibility study.

(2) Project Development Activities

Mines in the PRC:

Sandaozhuang Molybdenum and Tungsten Mine: During the reporting period, a new crushing station was built to optimize the transportation route and reduce the transportation cost. The Company made further efforts to promote ecological restoration, with the green reclamation area up to 289.4 thousand metres. Besides, we have reclaimed the land on the slope of the mine viewing platform and Bijiajian slope with a total area of 8,933 square metres. We have completed the fixed road hardening for one-side drainage ditch and Bijiajian interception ditches, with an area of 3,414 metres.

Shangfanggou Molybdenum Mine: During the reporting period, we completed the land reclamation and ecological restoration in areas covering greening area of the mine dump of Xiaosiyuangou, greening area of No. 1 industrial plant and both sides of slag discharge roads, with an area of 60.9 thousand metres. We also completed road hardening with an area of 220 metres.

Xinjiang Molybdenum Mine: No development activities were conducted during the reporting period.

Mines outside the PRC:

TFM Copper and Cobalt Mine in the DRC: During the reporting period, we completed surface cleaning, preparation work before exploration and external road construction at the new stopes KANZ1, SHIK1; carried out smoothly the mining activity at Western Mofya after the surface cleaning and preparation work before exploration for pit sizes extension; completed the surface cleaning work at the mining dump of KASA. Besides, external road construction at FWAL4 and the surface cleaning work for the relocation of the railway are underway right now. In the first half of the year, we drilled 10 dewatering wells with the total depth of 1,411 metres, and 17 monitoring wells with the total depth of 1,641 metres.

KFM Copper and Cobalt Mine in the DRC: During the reporting period, we commenced construction stripping in April 2021, with the total stripping volume of 4.1 million cubic metres as of the end of June; completed the preliminary and detailed geotechnical engineering surveys on the industrial plants; completed the construction of temporary offices and accommodation camp for Chinese personnel and put them into use; completed the feasibility study report of high voltage power supply in industrial plants; completed the construction design for river diversion and project bidding; commenced the construction after completing project bidding for construction of access roads.

Niobium and Phosphate Mine in Brazil:

Niobium: Since June 2021, an earth-disposing site has been built at the northwest of Boa Vista Mine.

Phosphate: In April 2021, the Company obtained the authorization from ANM (National Mining Administration) to mine phosphate in some areas of FFG-04 and commenced testing of fragmented ore in June 2021, with a view to achieving capacity enhancement by the end of 2021.

NPM Copper and Gold Mine in Australia: During the reporting period, the E26L1N project was completed 3 months ahead of schedule. Production preparation work is proceeding as scheduled and system construction for minerals transportation is underway. The crushing station has been expanded and put into use, and No. 3 tailing storage facility will be completed in November 2021.

(3) Mining Activities

	Unit: 0'000 tonnes
Domestic mining activities
Production volume of Sandaozhuang Molybdenum and Tungsten Mine	971.69
Production volume of Shangfanggou Molybdenum Mine	232.28
Overseas mining activities
Production volume of TFM Copper and Cobalt Mine in the DRC	792.79
Production volume of Niobium Mine in Brazil	164.62
Production volume of Phosphate Mine in Brazil	256.30
Production volume of NPM Copper and Gold Mine in Australia	322.07

(4) Costs of Exploration, Development and Mining

Projects	Mining costs	Exploration costs	Development costs
Domestic mines (RMB 0'000) Sandaozhuang Molybdenum and Tungsten Mine	26,831.93	42.74	5,787.95
Shangfanggou Molybdenum Mine	7,961.88	125.42	485.00
Overseas mines (USD million)
TFM Copper and Cobalt Mine in the DRC	114.55	5.07	10.67
KFM Copper and Cobalt Mine in the DRC	16.67	0.63	5.57
Niobium Mine in Brazil	12.83	0.66	0.34
Phosphate Mine in Brazil	4.75	0.29	0.75
NPM Copper and Gold Mine in Australia	10.62	1.81	50.04

Directors and Supervisors

As at 20 August 2021, the Board of the Company consisted of the following 8 directors (the "Directors"), and the Supervisory Committee consisted of the following 3 supervisors (the "Supervisors"). Pursuant to the Company's articles of association, all Directors and Supervisors have a term of three years and are subject to re-election.

Executive Directors	:	Sun Ruiwen, Li Chaochun
Non-executive Directors	:	Yuan Honglin, Guo Yimin, Cheng Yunlei
Independent Non executive Directors	:	Wang Gerry Yougui, Yan Ye, Li Shuhua
Supervisors	:	Kou Youmin, Zhang Zhenhao, Xu Wenhui

Employees

As of 30 June 2021, the Group had approximately 11,079 full-time employees, classified by functions and departments as follows:

Category of professional composition	Number of professionals
Production staff	6,855
Technical staff	1,120
Finance staff	291
Administrative staff	1,092
Sales and other supporting personnel	1,721
Total	11,079

Remuneration Policy

The remuneration policy for the employees of the Company principally consists of a salary point and performance remuneration system, based on employees' positions and responsibilities and their quantified assessment results. The employees' remuneration is evaluated in line with the Company's operating results and personal performance in order to provide a consistent, fair and equitable remuneration system for all employees. The subsidiaries of the Company domiciled in China have participated in the social insurance contribution plans introduced by China's local governments. In accordance with the laws and regulations regarding the national and local labour and social welfares in China, the Company is required to pay on behalf of its employees a monthly social insurance premium covering pension insurance, health insurance, unemployment insurance, work injury insurance and housing provident fund. Pursuant to current applicable local regulations in China, the percentages of certain insurances are as follows: the pension insurance, health insurance, unemployment insurance, work injury insurance and the contribution to housing provident fund of our Chinese employees represent 16%, 6.5%, 0.7%, 0.72% to 1.52% and 12% of his or her total basic monthly salary respectively (while health insurance was reduced by 1%).

The overseas employees of the Company participate in pension and healthcare plans under the requirement of the laws in the countries where they reside.

In order to further motivate the employees, the Company implemented the first phase Employee Share Ownership Plan during the reporting period. For details, please refer to the Section of Material Events in this report.

Training Plan

The Company's employees training plan is designed primarily to cater for the Company's strategic development needs, enhance the level of management personnel and improve the business skills and education level of the employees, and improve the overall quality of the employee team through training.

In China's mining areas, the Company established the institutional foundation of the training system, and increased training efforts through hierarchical management. During the reporting period, focusing on the team building of mid-level leaders, the Company implemented the management training for mid-to-high level management employees and on-line training for the basic-level management personnel. Focusing on improving job-specific skill of employees, the Company organized Siemens PLC training and welding training to improve the technical level of skilled workers to train up first-class internal welding trainers in China. The Company has checked the current situation of talents, optimized the talent team, built various talent pools, and carried out the training of talents with Chinese characteristics; carried out the training of internal trainers, further enhanced the development and application ability of lecturers within the Group, and promoted the dissemination and precipitation of internal knowledge of the Company. Through the filing and acceptance by the vocational skill level identification institution, the Company has realized the level certification of five types of work, namely electrician, fitter, chemical inspector, lifting worker and lifting loading and unloading machinery operator, and issued certificates, which are widely used in the whole country. The training base for skilled workers in China has realized the whole process training mode of training + certification; all departments and subsidiaries carried out training around safety and business promotion. As of the end of June 2021, a total of 11,472 staff had been trained.

Share Capital

	As at 30 June 2021
	Number of shares	Amount RMB
A Shares at a nominal value of RMB0.20 per share	17,665,772,583	3,533,154,516.60
H Shares at a nominal value of RMB0.20 per share	3,933,468,000	786,693,600.00
Total	21,599,240,583	4,319,848,116.60

Substantial Shareholders' interests in Shares and Underlying Shares and Short Positions

To the best knowledge of all Directors and Supervisors, as at 30 June 2021, the persons or companies (other than Directors, the chief executives or Supervisors of the Company) who had interests or short positions in the shares and underlying shares of the Company which would fall to be disclosed under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance ("SFO") or who were deemed to be directly or indirectly interested in 5% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the Company are as follows:

				Approximate percentage of shareholding in
Name	Number of shares held	Capacity	Class of Share	relevant class of shares
Luoyang Mining Group Co.,Ltd. ("LMG")	5,329,780,425	Beneficial owner	A Share	30.17%
Luoyang Guohong Investment Group Co., Ltd.	5,329,780,425	Interest in controlled corporation	A Share	30.17%
Cathay Fortune Corporation ("CFC")	5,030,220,000 303,000,000(L)	Beneficial owner Interest in controlled corporation	A Share H Share	28.47% 7.70%(L)
Cathay Fortune Investment Limited ("Cathay Hong Kong")(1)	91,518,000(L)	Beneficial owner	H Share	2.33%(L)
Cathay Fortune International Company Limited	211,482,000(L)	Beneficial owner	H Share	5.38% (L)
Yu Yong(2)	5,030,220,000	Interest in controlled corporation	A Share	28.47%
	303,000,000(L)	Interest in controlled corporation	H Share	7.70% (L)

	Number of		Class of	Approximate percentage of shareholding in relevant class
Name	shares held	Capacity	Share	of shares
Citigroup Inc.(3)	438,195,174(L) 56,978,052 (S) 386,515,048(P)	Interest in controlled corporation/Approved lending agent	H Share	11.14%(L) 1.45%(S) 9.83%(P)
BlackRock, Inc.(4)	370,279,573(L) 6,699,000(S)	Interest in controlled corporation	H Share	9.41%(L) 0.17%(S)
JPMorgan Chase & Co.(5)	291,273,372 (L) 43,445,155(S) 34,938,754(P)	Interest in controlled corporation/Investment manager/Person having a security interest in shares/ Approved lending agent	H Share	7.41%(L) 1.10%(S) 0.89%(P)
GIC Private Limited	318,399,729 (L)	Investment manager	H Share	8.09%(L)

Notes: (L) – Long position, (S) – Short position, (P) – Lending pool

• (1) Cathay Hong Kong and Cathay Fortune International Company Limited are wholly-owned subsidiaries of CFC.
• (2) Mr. Yu Yong holds 99% interest in CFC and is deemed to hold 5,030,220,000 A shares of the Company held directly by CFC. In addition, Mr. Yu Yong is deemed to hold long position of 303,000,000 H shares of the Company. CFC, Cathay Fortune International Company Limited and Cathay Hong Kong, being the controlled corporations, directly or indirectly hold the shares of the Company.
• (3) Citigroup Inc. is deemed to hold a total of long position of 438,195,174 H shares, a short position of 56,978,052 H shares and a lending pool of 386,515,048 H shares of the Company available for lending due to its control rights over a number of companies. Citicorp LLC, Citibank, N.A., Citigroup Global Markets Holdings Inc., Citigroup Financial Products Inc., Citigroup Global Markets Hong Kong Limited, Citigroup Global Markets Inc., Citigroup Global Markets Holdings Bahamas Limited and Citigroup Global Markets Limited, being the controlled corporations, directly or indirectly hold the shares of the Company.
• (4) BlackRock, Inc. is deemed to hold a total of long position of 370,279,573 H shares and a short position of 6,699,000 H shares of the Company due to its control rights over a number of companies. Trident Merger, LLC, BlackRock Investment Management, LLC, BlackRock Holdco 2, Inc., BlackRock Financial Management, Inc., BlackRock Holdco 4, LLC, BlackRock Holdco 6, LLC, BlackRock Delaware Holdings Inc., BlackRock Institutional Trust Company, National Association, BlackRock Fund Advisors, BlackRock Capital Holdings, Inc., BlackRock Advisors, LLC, BlackRock International Holdings, Inc., BR Jersey International Holdings L.P., BlackRock Lux Finco S.àr.l., BlackRock Japan Holdings GK, BlackRock Japan Co., Ltd., BlackRock Holdco 3, LLC, BlackRock Canada Holdings LP, BlackRock Canada Holdings ULC, BlackRock Asset Management Canada Limited, BlackRock Australia Holdco Pty. Ltd., BlackRock Investment Management (Australia) Limited, BlackRock (Singapore) Holdco Pte. Ltd., BlackRock HK Holdco Limited, BlackRock Asset Management North Asia Limited, BlackRock Cayman 1 LP, BlackRock Cayman West Bay Finco Limited, BlackRock Cayman West Bay IV Limited, BlackRock Group Limited, BlackRock Finance Europe Limited, BlackRock (Netherlands) B.V., BlackRock Advisors (UK) Limited, BlackRock Group Limited-Luxembourg Branch, BlackRock Luxembourg Holdco S.àr. l., BlackRock Investment Management Ireland Holdings Limited, BlackRock Asset Management Ireland Limited, BLACKROCK (Luxembourg) S.A., BlackRock Investment Management (UK) Limited, BlackRock Fund Managers Limited, BlackRock (Singapore) Limited, BlackRock UK Holdco Limited and BlackRock Asset Management Schweiz AG, being the controlled corporations, directly or indirectly hold the shares of the Company.

(5) JPMorgan Chase & Co. is deemed to hold a total of long position of 291,273,372 H shares, a short position of 43,445,155 H shares and a lending pool of 34,938,754 H shares of the Company due to its control rights over a number of companies. JPMorgan Asset Management (Taiwan) Limited, J.P. Morgan Securities LLC, JPMORGAN CHASE BANK, N.A. – LONDON BRANCH, J.P. Morgan Investment Management Inc., JPMORGAN ASSET MANAGEMENT (UK) LIMITED, JPMorgan Chase Bank, National Association, JPMorgan Asset Management (Asia Pacific) Limited, J.P. MORGAN SECURITIES PLC, JPMorgan Asset Management (Asia) Inc., JPMorgan Asset Management Holdings Inc., JPMorgan Chase Holdings LLC, J.P. Morgan Broker-Dealer Holdings Inc., JPMORGAN ASSET MANAGEMENT INTERNATIONAL LIMITED, J.P.MORGAN CAPITAL HOLDINGS LIMITED and J.P. Morgan International Finance Limited, being the controlled corporations, directly or indirectly hold the shares of the Company.

Save as disclosed above, as at 30 June 2021, the Directors were not aware of any other persons (other than a Director, chief executive or Supervisor of the Company) who had interests or short positions in the shares and underlying shares of the Company as recorded in the register required to be kept by the Company under Section 336 of the SFO.

Directors', Supervisors' and chief executives' interests and short positions in securities

As at 30 June 2021, details of the shareholdings of A Shares by current Directors, Supervisors and the chief executives of the Company are as follows:

Name	Number of shares held (shares)	Percentage of shareholding in total share capital (%)
Yuan Honglin Sun Ruiwen Li Chaochun Zhang Zhenhao	9,063,887 18,000,000 9,087,692 1,063,500	0.042% 0.083% 0.042% 0.005%
Total	37,215,079	0.172%

Note:

Mr. Yuan Honglin, Mr. Sun Ruiwen and Mr. Li Chaochun, being the incentive participants under the employee share ownership plan of the Company (the "Employee Share Ownership Plan") adopted on 21 May 2021, were deemed to be interested in 8,013,287, 18,000,000 and 7,500,000 A shares of the Company, respectively. As of the date of this interim report, the A shares under the Employee Share Ownership Plan have not yet vested.

Save as disclosed above, so far as was known to the Directors, as at 30 June 2021, none of the Directors, Supervisors and chief executives of the Company or their respective associates had interests and short positions in the shares, underlying shares and debentures of the Company or its associated corporations (defined in Part XV of the SFO), which required the Company and the Stock Exchange to be notified pursuant to Part XV of the SFO or which were required to be entered into the register required to be kept by the Company under Section 352 of the SFO or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix 10 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Hong Kong Listing Rules")

Dividends

At the second meeting of the sixth session of the Board held on 20 August 2021, the Board resolved not to declare any interim dividend for the six months ended 30 June 2021 (for the six months ended 30 June 2020: nil).

Purchase, Sale or Redemption of the Company's Listed Securities

Repurchase of A shares

On 30 September 2020, the Company held the 15th extraordinary meeting of the fifth session of the Board, deliberated and approved the Proposal on Repurchase of A Shares by Centralized Competitive Trading, and agreed that the Company would use its own funds of no more than RMB450 million to repurchase A shares of the Company at a price of no more than RMB4.5 per share. The number of repurchased shares would be not less than 50 million shares and not more than 100 million shares, accounting for about 0.23% to 0.46% of the Company's total share capital before repurchase. During the reporting period, the Company had cumulatively repurchased 48,513,287 shares through centralized competitive trading, accounting for 0.2246% of the Company's current total share capital. The highest and lowest transaction prices were RMB4.00 per share and RMB3.96 per share, respectively, and the amount paid was RMB193,787,974.28 (excluding transaction costs). All the above repurchases occurred in October 2020. The repurchase of treasury shares is limited to the subsequent implementation of share incentive plan or employee stock ownership plan; if the Company fails to use the repurchased shares within 36 months after the implementation of share repurchase, the repurchased shares that have not been used will be cancelled in accordance with relevant laws, regulations and policies.

On 13 July 2021, the Company held the first extraordinary meeting of the sixth session of the Board, deliberated and approved the Proposal to Terminate the Program to Repurchase A Shares of the Company by Centralized Competitive Trading (Phase I), and agreed to terminate the implementation of the Program (Phase I). On the same day, the meeting deliberated and approved the Proposal on Repurchase Program of A Shares of the Company by Centralized Competitive Trading (Phase Ⅱ), and agreed that the Company would use its own funds of no more than RMB800 million to repurchase A shares of the Company at a price of no more than RMB8.0 per share. The number of repurchased shares would not be less than 50 million shares and not more than 100 million shares, accounting for about 0.23% to 0.46% of the Company's total share capital before repurchase.

Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed any listed securities of the Company or any of its subsidiaries during the six months ended 30 June 2021.

Corporate Governance

The Group has striven to uphold high standard of corporate governance to safeguard the interests of shareholders, and to enhance corporate value and accountability. During the six months ended 30 June 2021, in the opinion of the Board, the Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix 14 to the Hong Kong Listing Rules.

Board of Directors

The Board of the Company consists of 8 Directors, including 2 executive Directors, 3 non-executive Directors and 3 independent non-executive Directors. During the six months ended 30 June 2021, the fifth and the sixth session of the Board convened four and one meetings, respectively (with an attendance rate of 100%).

Supervisory Committee

The Supervisory Committee of the Company comprises 3 Supervisors to exercise supervision over the Board and its members as well as members of the senior management; and to prevent them from abusing their powers and authorities and jeopardizing the legal interests of shareholders, the Company and its employees. The fifth and the sixth session of the Supervisory Committee respectively convened four and one meetings during the six months ended 30 June 2021 (with an attendance rate of 100%).

Securities Transactions Conducted by Directors, Supervisors and Employees

The Company has adopted the Model Code as set out in Appendix 10 to the Hong Kong Listing Rules as the code of conduct for trading in securities by its own Directors and Supervisors. After specific enquiry made on all Directors and Supervisors, all Directors and Supervisors have confirmed that they have been complied with the required standards set out in the Model Code throughout the six months ended 30 June 2021.

The Company has also formulated written guidelines (the"Employees Written Guidelines") on terms no less exacting than the Model Code for securities transactions by employees of the Company who are likely to be in possession of unpublished inside information of the Company. No incident of non-compliance against the Employees Written Guidelines by the employees has been noted by the Company after making reasonable enquiry.

Disclosures of Directors and Supervisors Pursuant to Rule 13.51B(1) of the Hong Kong Listing Rules

Directors/Supervisors/the Board Committee Position

• On 11 March 2021, Ms. Wang Zhengyan, an employee representative supervisor, resigned her position as a supervisor due to job adjustment. On 12 March 2021, the employee representatives meeting of the Company deliberated and approved the Resolution on Nominating Mr. Xu Wenhui as the Supervisor Candidate of Employee Representatives Meeting of China Molybdenum Co., Ltd., and agreed to elect Mr. Xu Wenhui as the employee representative supervisor of the Company to hold office until the expiry of the term of the new Supervisor of the Supervisory Committee elected at the annual general meeting of the Company in 2023.
• On 21 May 2021, the Company's 2020 annual general meeting deliberated and approved the relevant proposals on the election of members of the sixth session of the Board and Supervisors of the Company, and agreed to elect Mr. Sun Ruiwen and Mr. Li Chaochun as executive directors of the sixth session of the Board of the Company; Mr. Yuan Honglin, Mr. Guo Yimin and Mr. Cheng Yunlei as non-executive directors of the sixth session of the Board of the Company; Mr. Wang Gerry Yougui, Ms. Yan Ye and Mr. Li Shuhua as independent non-executive directors of the sixth session of the Board of the Company. The meeting agreed to elect Ms. Kou Youmin and Mr. Zhang Zhenhao as members of the sixth session of the Supervisory Committee of the Company and to form the sixth session of the Supervisory Committee together with Mr. Xu Wenhui. On the same day, Mr. Li Faben retired as an executive director at the expiration upon the term of office of the fifth session of the Board.
• On 21 May 2021, the first meeting of the sixth session of the Board of the Company deliberated and approved the Proposal on Election of the Chairman of the Sixth Session of the Board of the Company and Proposal on Election of the Vice Chairman of the Sixth Session of the Board of the Company, and the Board agreed to elect Mr. Yuan Honglin as the Chairman of the sixth session of the Board of the Company, and to elect Mr. Guo Yimin and Mr. Li Chaochun as the Vice Chairmen of the sixth session of the Board of the Company, whose terms of office expire on the date of the 2023 annual general meeting of the Company.

• On 21 May 2021, the first meeting of the sixth session of the Board of the Company deliberated and approved the Proposal on Election of Members of the Special Committee of the Sixth Session of the Board of the Company and elected the members of the special committees of the sixth session of the Board. The details were as follows:

• 1. Strategic and Sustainability Committee: Mr. Yuan Honglin, Mr. Sun Ruiwen, Mr. Li Chaochun and Mr. Wang Gerry Yougui; Mr. Yuan Honglin was appointed as the Chairman of the Committee.
• 1. Audit and Risk Committee: Mr. Li Shuhua, Ms. Yan Ye and Mr. Yuan Honglin; Mr. Li Shuhua was appointed as the Chairman of the Committee.
• 1. Nomination and Governance Committee: Mr. Wang Gerry Yougui, Mr. Yuan Honglin, Mr. Li Shuhua and Ms. Yan Ye; Mr. Wang Gerry Yougui was appointed as the Chairman of the Committee and Mr. Yuan Honglin was appointed as the Vice Chairman of the Committee.
• 1. Remuneration Committee: Mr. Wang Gerry Yougui, Mr. Li Shuhua and Mr. Yuan Honglin; Mr. Wang Gerry Yougui was appointed as the Chairman of the Committee.

The term of office of the above members shall expire on the date of the 2023 annual general meeting of the Company.

• On 30 July 2021, the Board of the Company received a written resignation report from Mr. Yue Yuanbin. For personal reasons, Mr. Yue Yuanbin applied to resign as Secretary of the Board and Joint Company Secretary. In accordance with the relevant provisions of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and the Measures for the Administration of the Secretary to the Board of Directors of Listed Companies on the Shanghai Stock Exchange, Mr. Yuan Honglin, Chairman of the Board of the Company, shall perform the duties of the Secretary of the Board on behalf of the Company until a new Secretary to the Board is appointed.

Save as disclosed above, as of the date of this report, there is no change in any other information relating to the Directors and Supervisors which is required to be disclosed pursuant to Rule 13.51B(1) of the Hong Kong Listing Rules.

Audit and Risk Committee

The Audit Committee was renamed as the Audit and Risk Committee from 4 August 2018 as to more adequately reflect its functions and responsibilities, and constantly oversee the risk management function of the Company.

The Terms of Reference of the Audit Committee based on "A Guide for Effective Audit Committees" issued by the Hong Kong Institute of Certified Public Accountants have been adopted by the Board. The Audit and Risk Committee provides an important connection between the Board and the Company's auditors in matters falling within the scope of the audit of the Company and the Group. The Audit and Risk Committee will review the effectiveness of the external audit as well as the internal control, evaluate risks and provide advice and guidance to the Board. The current Audit and Risk Committee comprises two independent non-executive Directors and one non-executive Director, namely, Mr. Li Shuhua (Chairman of the Committee), Ms. Yan Ye and Mr. Yuan Honglin. The Audit and Risk Committee has reviewed the unaudited financial statements of the Company for the six months ended 30 June 2021 and considered that the statements complied with relevant accounting standards and that the Company has made appropriate and relevant disclosures.

I. FINANCIAL STATEMENTS

Consolidated Balance Sheet

30 June 2021

		Unit: Yuan	Currency: RMB
Item	Note	30 June 2021	31 December 2020
Current assets:
Cash and bank balances	V.1	19,427,350,078.33	16,947,648,080.87
Held-for-trading financial assets	V.2	7,644,893,191.05	7,435,128,840.50
Derivative financial assets	V.3	1,944,249,248.52	2,060,111,110.42
Accounts receivable	V.4	991,616,453.08	702,193,713.91
Financing receivables	V.5	415,022,057.97	405,697,607.38
Prepayments	V.6	2,355,414,982.47	1,405,838,288.25
Other receivables	V.7	1,921,048,453.61	1,676,752,484.31
Including: Interests receivable		385,498,054.06	344,628,170.18
Inventories	V.8	24,219,215,358.99	21,170,188,531.54
Other current assets	V.9	4,096,923,036.80	5,436,087,014.38
Total current assets		63,015,732,860.82	57,239,645,671.56
Non-current assets:
Long-term equity investment	V.10	1,310,577,852.35	1,348,252,898.68
Other investments in equity instruments	V.11	86,213,230.14	86,214,350.23
Other non-current financial assets	V.12	4,069,330,734.78	4,678,191,536.17
Non-current derivative financial assets	V.13	16,177,479.71	0.00
Fixed assets	V.14	22,167,428,135.65	23,328,330,597.04
Construction in progress	V.15	4,641,223,299.23	3,958,981,388.37
Right-of-use assets	V.16	472,161,787.77	487,786,129.11
Intangible assets	V.17	20,473,698,405.43	21,511,518,662.57
Long-term inventory Goodwill	V.8 V.18	6,034,053,611.19 392,329,871.83	5,845,918,877.35 396,265,256.07
Long-term prepaid expenses	V.19	112,375,513.06	127,533,613.45
Deferred tax assets	V.20	770,771,009.50	497,166,341.93
Other non-current assets	V.21	3,446,209,224.37	2,935,444,567.34
Total non-current assets		63,992,550,155.01	65,201,604,218.31
Total assets		127,008,283,015.83	122,441,249,889.87

Item	Note	30 June 2021	31 December 2020
Current liabilities:
Short-term borrowings	V.22	25,457,860,790.16	20,464,481,097.49
Held-for-trading financing liabilities	V.23	4,951,066,912.87	4,291,950,709.21
Derivative financial liabilities	V.24	3,962,468,946.40	5,021,779,572.93
Notes payable	V.25	681,851,707.84	627,937,567.02
Accounts payable	V.26	1,272,661,795.97	876,914,865.30
Contract liabilities Employee benefits payable	V.27 V.28	524,778,522.42 628,474,938.30	371,984,342.17 769,350,564.51
Taxes payable	V.29	1,664,629,933.27	845,217,960.37
Other payables	V.30	3,661,351,367.05	1,599,240,517.18
Including: Interests payable		149,284,088.38	222,893,031.58
Dividends payable		727,234,004.84	27,885,796.67
Non-current liabilities due within one year	V.31	4,027,603,223.15	5,329,646,086.38
Other current liabilities	V.32	207,541,466.32	2,159,431,822.36
Total current liabilities		47,040,289,603.75	42,357,935,104.92
Non-current liabilities:
Long-term borrowings	V.33	16,316,178,935.39	15,360,372,820.17
Bonds payable Non-current derivative financial liabilities	V.34 V.13	3,615,025,000.00 388,920,337.79	3,631,225,000.00 417,159,248.94
Lease liabilities	V.35	231,125,926.25	247,794,476.14
Long-term employee benefits payable	V.36	337,692,428.99	323,797,716.11
Provisions	V.37	2,381,371,348.16	2,750,507,412.49
Deferred income	V.38	56,798,922.50	60,587,483.62
Deferred tax liabilities	V.20	6,103,324,769.11	6,269,305,883.30
Other non-current liabilities	V.39	3,571,913,134.85	3,687,709,740.77
Total non-current liabilities		33,002,350,803.04	32,748,459,781.54
Total liabilities		80,042,640,406.79	75,106,394,886.46
Owners' equity (or Shareholders' equity):
Paid-in capital (or share capital)	V.40	4,319,848,116.60	4,319,848,116.60
Capital reserve	V.41	27,494,989,738.63	27,582,794,983.23
Less: Treasury stock	V.42	192,239,528.01	193,840,466.48
Other comprehensive income	V.43	-5,742,389,344.19	-3,585,690,161.76
Special reserve	V.44	755,937.91	230,899.06
Surplus reserve	V.45	1,295,599,051.54	1,295,599,051.54
Undistributed profits Total equity attributable to owners of the parent company	V.46	11,168,661,865.42	9,472,838,365.96
(or Shareholders' equity)		38,345,225,837.90	38,891,780,788.15
Minority interests		8,620,416,771.14	8,443,074,215.26
Total owners' equity (or Shareholders' equity)		46,965,642,609.04	47,334,855,003.41
Total liabilities and owners' equity (or Shareholders' equity)		127,008,283,015.83	122,441,249,889.87

Balance Sheet of the Company

30 June 2021

Item	Note	30 June 2021	31 December 2020
Current assets:
Cash and bank balances		8,813,213,579.30	7,045,029,428.45
Held-for-trading financial assets		412,760,220.34	200,032,876.71
Accounts receivable	XIV.1	747,336,104.64	365,342,418.35
Financing receivables		26,079,212.31	7,966,803.02
Prepayments		172,845,954.02	143,016,792.20
Other receivables	XIV.2	3,971,983,186.51	3,682,649,191.28
Including: Interests receivable		409,377,370.34	468,074,888.87
Dividends receivable		294,006,084.08	44,006,084.08
Inventories		140,799,549.61	199,847,211.21
Other current assets		44,233,071.55	80,818,294.02
Total current assets		14,329,250,878.28	11,724,703,015.24
Non-current assets:
Long-term equity investment	XIV.3	31,880,994,789.31	31,912,290,109.90
Other non-current financial assets		483,208,425.28	580,980,901.35
Fixed assets		1,562,189,713.83	1,640,559,215.13
Construction in progress		376,655,672.88	268,937,597.32
Intangible assets		255,505,085.06	282,262,342.23
Long-term prepaid expenses		116,213,430.84	132,147,350.14
Deferred tax assets		145,538,214.98	116,038,320.48
Other non-current assets		77,089,457.11	77,089,457.11
Total non-current assets		34,897,394,789.29	35,010,305,293.66
Total assets		49,226,645,667.57	46,735,008,308.90

Item	30 June 2021 Note	31 December 2020
Current liabilities:
Short-term borrowings	2,880,051,000.00	2,195,747,000.00
Held-for-trading financing liabilities	1,679,471,191.36	449,732,550.75
Derivative financial liabilities Notes payable	390,133,817.75 144,732,557.98	449,661,924.05 122,572,692.44
Accounts payable	163,834,786.77	152,707,814.98
Contract liabilities	808,575,576.77	169,168,094.52
Employee benefits payable	71,389,443.49	92,673,541.26
Taxes payable	56,101,893.57	10,422,432.90
Other payables	3,668,574,483.17	2,162,049,869.58
Including: Interests payable	63,650,275.23	129,344,304.05
Non-current liabilities due within one year	57,200,000.00	2,000,000,000.00
Other current liabilities	140,726,660.89	2,101,491,643.61
Total current liabilities	10,060,791,411.75	9,906,227,564.09
Non-current liabilities:
Long-term borrowings	2,823,800,000.00	200,000,000.00
Bonds payable	2,000,000,000.00	2,000,000,000.00
Non-current derivative financial liabilities	388,920,337.79	406,801,357.57
Provisions	47,570,371.67	47,570,371.67
Deferred income	18,209,617.40	18,402,410.30
Other non-current liabilities	86,070,546.63	165,364,319.14
Total non-current liabilities	5,364,570,873.49	2,838,138,458.68
Total liabilities	15,425,362,285.24	12,744,366,022.77
Owners' equity (or Shareholders' equity):
Paid-in capital (or share capital)	4,319,848,116.60	4,319,848,116.60
Capital reserve	27,545,428,842.62	27,633,234,087.22
Less: Treasury stock	192,239,528.01	193,840,466.48
Special reserve	458,786.33	230,899.06
Surplus reserve	1,295,599,051.54	1,295,599,051.54
Undistributed profits	832,188,113.25	935,570,598.19
Total owners' equity (or Shareholders' equity)	33,801,283,382.33	33,990,642,286.13
Total liabilities and owners' equity
(or Shareholders' equity)	49,226,645,667.57	46,735,008,308.90

Consolidated Income Statement

January – June 2021

Item	Note	Six months ended 30 June 2021	Six months ended 30 June 2020
I. Total operating income Including: Operating income	V.47	84,815,930,336.26 84,815,930,336.26	46,743,857,426.26 46,743,857,426.26
II. Total operating costs Including: Operating costs Taxes and levies Selling expenses Administrative expenses	V.47 V.48 V.49 V.50	77,686,108,379.70 75,816,658,403.88 527,866,553.80 37,415,774.00 684,666,806.20	47,951,278,525.39 46,042,234,134.31 473,523,891.24 42,397,113.57 652,396,360.62
Research and development expenses Financial expenses Including: Interest expenses Interest income Add: Other income	V.51 V.52 V.53	64,364,765.73 555,136,076.09 891,376,235.11 354,935,485.05 19,567,029.71	45,276,058.60 695,450,967.05 924,037,414.16 370,946,927.96 12,913,448.92
Investment income (losses are indicated by "-") Including: Income from investments in	V.54	100,644,308.04	126,538,507.86
associates and joint ventures Gains from changes in fair value (losses are indicated by "-")	V.55	8,462,846.28 -2,851,031,616.92	4,063,829.99 1,402,251,271.09
Credit impairment losses (losses are indicated by "-") Asset impairment losses (losses are indicated	V.56	-1,501,651.67	-691,868.25
by "-") Income from disposal of assets (losses are	V.57	-37,041,130.65	10,936,023.88
indicated by "-")	V.58	-249,973.49	5,989,609.46
III. Operating profit (losses are indicated by "-") Add: Non-operating income Less: Non-operating expenses	V.59 V.60	4,360,208,921.58 18,841,499.16 19,360,877.27	350,515,893.83 5,483,440.40 5,456,346.06
IV. Total profit (total losses are indicated by "-") Less: Income tax expenses	V.61	4,359,689,543.47 1,526,413,671.96	350,542,988.17 -651,605,940.69
V. Net profit (net losses are indicated by "-") (I) Classified by business continuity		2,833,275,871.51	1,002,148,928.86
1. Ne t profit from continuing operations (losses are indicated by "-") (II) Classified by ownership 1. Ne t profit attributable to owners of the parent		2,833,275,871.51	1,002,148,928.86
company (net losses are indicated by "-") 2. No n-controlling interests (net losses are indicated		2,408,598,438.70	1,007,820,700.18
by "-")		424,677,432.81	-5,671,771.32

Item		Note	Six months ended 30 June 2021	Six months ended 30 June 2020
	VI. Other comprehensive income, net of tax (I) Ot her comprehensive income attributable to owners		-2,267,385,789.96	-31,369,801.88
	of the parent company, net of tax 1. Ot her comprehensive income that cannot be	V.62	-2,185,166,228.12	-150,121,562.57
	reclassified into profit or loss subsequently (1) Re measurement of changes in defined		0.00	-16,626,602.20
	benefit plans 2. Ot her comprehensive income that will be		0.00	-16,626,602.20
	reclassified subsequently into profit or loss		-2,185,166,228.12	-133,494,960.37
	(1) Cash flow hedge reserve (2) Fo reign exchange differences from	V.62	-1,849,123,160.57	-592,344,995.71
	translation of financial statements (II) Ot her comprehensive income attributable to non	V.62	-336,043,067.55	458,850,035.34
	controlling interests, net of tax	V.62	-82,219,561.84	118,751,760.69
	VII. Total comprehensive income		565,890,081.55	970,779,126.98
	(I) Attributable to owners of the parent company		223,432,210.58	857,699,137.61
	(II) Attributable to non-controlling interests		342,457,870.97	113,079,989.37
	VIII. Earnings per share:
	(I) Basic earnings per share (RMB Yuan per Share) (II) Diluted earnings per share (RMB Yuan per Share)		0.112 0.112	0.047 N/A

Income Statement of the Company

January – June 2021

Item		Note	Six months ended 30 June 2021	Six months ended 30 June 2020
I.	Operating income Less: Operating costs Taxes and levies Selling expenses Administrative expenses Research and development expenses Financial expenses Including: Interest expenses Interest income	XIV.4 XIV.4	1,901,380,409.98 1,015,684,143.76 76,721,545.78 0.00 104,037,795.56 53,971,188.35 -35,091,653.49 214,862,548.51 210,339,520.60	1,524,864,912.12 774,968,507.92 110,895,873.45 8,135.31 129,588,346.08 30,684,544.34 29,266,349.12 201,678,971.85 168,852,269.02
	Add: Other income Investment income (losses are indicated by "-") Including: Income from investments in associates and joint ventures Gains from changes in fair value (losses are indicated by "-") Credit impairment losses (losses are indicated by "-") Asset impairment losses (losses are indicated by "-") Income from disposal of assets (losses are indicated by "-")	XIV.5	12,644,826.93 686,551,608.03 -4,571,020.21 -745,403,453.71 -270,121.49 -15,599,493.99 114,434.47	3,927,387.08 106,380,937.28 14,312,740.99 -237,060,880.79 -46,362.70 0.00 -370,336.64
	II. Operating profit (losses are indicated by "-") Add: Non-operating income Less: Non-operating expenses		624,095,190.26 3,440,639.49 17,676,988.28	322,283,900.13 17,703.82 3,670,071.38
	III. Total profit (total losses are indicated by "-") Less: Income tax expenses		609,858,841.47 466,387.17	318,631,532.57 24,159,352.28
	IV. Net profit (net losses are indicated by "-") (I) Ne t profit from continuing operations (net losses are indicated by "-")		609,392,454.30 609,392,454.30	294,472,180.29 294,472,180.29
	V. Total comprehensive income		609,392,454.30	294,472,180.29

Consolidated Statement of Cash Flow

January – June 2021

Item		Note	Six months ended 30 June 2021	Six months ended 30 June 2020
I.	Cash flows from operating activities Cash receipts from the sale of goods and the rendering of services Cash receipts from other operating activities	V.63	83,869,453,898.42 434,207,489.44	48,949,846,676.45 781,707,825.21
	Sub-total of cash inflows from operating activities		84,303,661,387.86	49,731,554,501.66
	Cash payments for goods purchased and services received Cash payments to and on behalf of employees Payments of various types of taxes Cash payments from other operating activities	V.63	78,867,055,040.66 1,553,128,379.24 2,352,455,580.56 212,360,627.67	42,288,527,671.78 1,296,728,745.08 1,689,369,433.90 205,530,930.31
	Sub-total of cash outflow from operating activities		82,984,999,628.13	45,480,156,781.07
	Net cash flow from operating activities		1,318,661,759.73	4,251,397,720.59
	II. Cash flows from investing activities Cash receipts from disposals and recovery of investments Cash receipts from investment income Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets Net cash payments for acquisitions or disposals of subsidiaries and other business units Cash receipts from other investing activities	V.63 V.63	4,115,727,545.54 111,508,011.79 6,284,951.00 55,505,000.00 3,773,981,091.30	10,397,960,735.43 107,643,039.24 358,336.64 0.00 262,090,210.78
	Sub-total of cash inflows from investing activities		8,063,006,599.63	10,768,052,322.09
	Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets Cash payments to acquire investments Cash payments for other investing activities	V.63 V.63	1,368,373,680.45 5,951,838,555.85 4,376,787,806.15	1,090,311,581.94 10,806,594,084.80 620,792,511.33
	Sub-total of cash outflow from investing activities		11,697,000,042.45	12,517,698,178.07
	Net cash flow from investing activities		-3,633,993,442.82	-1,749,645,855.98

Item		Note	Six months ended 30 June 2021	Six months ended 30 June 2020
	III. Cash flows from financing activities Cash receipts from capital contributions Cash receipts from borrowings Cash receipts from other financing activities	V.63	97,026,574.00 44,774,074,809.78 1,843,520,236.88	0.00 34,133,407,773.74 3,728,554,335.62
	Sub-total of cash inflows from financing activities		46,714,621,620.66	37,861,962,109.36
	Cash repayments of borrowings Cash payments for distribution of dividends or profits and settlement of interests Cash payments for other financing activities	V.63	41,757,711,467.08 755,251,753.49 674,196,485.02	32,237,322,920.13 1,580,264,427.41 3,608,659,212.86
	Sub-total of cash outflow from financing activities		43,187,159,705.59	37,426,246,560.40
	Net cash flow from financing activities		3,527,461,915.07	435,715,548.96
	IV. Ef fect of foreign exchange rate changes on cash and cash equivalents		-34,851,683.66	44,484,344.76
	V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents	V.64 V.64	1,177,278,548.32 11,448,950,438.25	2,981,951,758.33 12,392,247,511.85
	VI. Closing balance of cash and cash equivalents	V.64	12,626,228,986.57	15,374,199,270.18

Statement of Cash Flow of the Company

January – June 2021

Item		Note	Six months ended 30 June 2021	Six months ended 30 June 2020
I.	Cash flows from operating activities: Cash receipts from the sale of goods and the rendering of services Cash receipts from other operating activities		2,350,268,446.36 2,752,077,478.09	4,621,702,974.34 1,989,309,860.50
	Sub-total of cash inflows from operating activities		5,102,345,924.45	6,611,012,834.84
	Cash payments for goods purchased and services received Cash payments to and on behalf of employees Payments of various types of taxes		320,173,059.24 240,649,228.74 215,817,420.10	485,200,533.68 233,231,500.74 326,034,504.21
	Cash payments from other operating activities		2,704,902,524.30	5,419,082,537.31
	Sub-total of cash outflow from operating activities		3,481,542,232.38	6,463,549,075.94
	Net cash flow from operating activities		1,620,803,692.07	147,463,758.90
II.	Cash flows from investing activities: Cash receipts from disposals and recovery of investments Cash receipts from investment income Net cash receipts from disposals of fixed assets, intangible assets and other long term assets Net cash payments for acquisitions or disposals of subsidiaries and other business units		1,720,000,000.00 491,455,576.50 6,284,951.00 55,505,000.00	7,968,183,761.13 87,055,285.34 163,089.70 0.00
	Cash receipts from other investing activities Sub-total of cash inflows from investing activities		5,975,358,873.88 8,248,604,401.38	2,905,297,938.40 10,960,700,074.57
	Cash payments to acquire or construct fixed assets, intangible assets and other long term assets Cash payments to acquire investments Cash payments for other investing activities		79,554,046.71 3,770,703,338.49 5,577,987,234.38	128,424,958.65 6,870,000,000.00 3,850,705,867.80
	Sub-total of cash outflow from investing activities		9,428,244,619.58	10,849,130,826.45
	Net cash flow from investing activities		-1,179,640,218.20	111,569,248.12

Item		Note	Six months ended 30 June 2021	Six months ended 30 June 2020
	III. Cash flows from financing activities: Cash receipts from capital contributions Cash receipts from borrowings Cash receipts from other financing activities		97,026,574.00 16,020,854,500.00 3,530,638,075.68	0.00 8,436,283,000.00 4,704,088,290.99
	Sub-total of cash inflows from financing activities		19,648,519,149.68	13,140,371,290.99
	Cash repayments of borrowings Cash payments for distribution of dividends or profits and settlement of interests Cash payments for other financing activities		16,652,842,992.35 244,901,110.23 2,540,564,545.98	5,778,000,000.00 895,049,188.82 3,971,532,645.20
	Sub-total of cash outflow from financing activities		19,438,308,648.56	10,644,581,834.02
	Net cash flow from financing activities		210,210,501.12	2,495,789,456.97
	IV. Ef fect of foreign exchange rate changes on cash and cash equivalents		1,806,244.11	387,914.93
V.	Net increase in cash and cash equivalents Add: Op ening balance of cash and cash		653,180,219.10	2,755,210,378.92
	equivalents VI. Cl osing balance of cash and cash equivalents		4,948,637,106.52 5,601,817,325.62	3,233,637,947.06 5,988,848,325.98

Consolidated Statement of Changes in Owners' Equity

January – June 2021

	Six months ended 30 June 2021
						Attributable to the owners of the Parent Company
					Other
		Paid-in capital	Capital	Less: Treasury	comprehensive	Special	Surplus	Undistributed		Minority	Total owners'
Item		(or share capital)	reserve	stock	income	reserve	reserve	profits	Sub-total	interests	equity
	I. Balance at 31 December 2020	4,319,848,116.60	27,582,794,983.23	193,840,466.48	-3,585,690,161.76	230,899.06	1,295,599,051.54	9,472,838,365.96	38,891,780,788.15	8,443,074,215.26	47,334,855,003.41
	II. Balance at 1 January 2021	4,319,848,116.60	27,582,794,983.23	193,840,466.48	-3,585,690,161.76	230,899.06	1,295,599,051.54	9,472,838,365.96	38,891,780,788.15	8,443,074,215.26	47,334,855,003.41
	III. Changes in the current period
	(decrease is indicated by
	"-")	–	-87,805,244.60	-1,600,938.47	-2,156,699,182.43	525,038.85	–	1,695,823,499.46	-546,554,950.25	177,342,555.88	-369,212,394.37
(i)	To tal comprehensive
	income	–	–	–	-2,185,166,228.12	–	–	2,408,598,438.70	223,432,210.58	342,457,870.97	565,890,081.55
(ii)	Ow ners' contributions and
	reduction in capital	–	-87,805,244.60	-1,600,938.47	28,467,045.69	–	–	–	-57,737,260.44	–	-57,737,260.44
	1. Sh are-based payment
	recognized in
	owners' equity	–	-87,805,244.60	-1,600,938.47	–	–	–	–	-86,204,306.13	–	-86,204,306.13
	2. Ca sh flow hedge
	reserve
	transferred to
	fixed assets	–	–	–	28,467,045.69	–	–	–	28,467,045.69	–	28,467,045.69
	(iii) Profit distribution	–	–	–	–	–	–	-712,774,939.24	-712,774,939.24	-165,417,320.60	-878,192,259.84
	3. Di stribution to
	owners (or
	shareholders)	–	–	–	–	–	–	-712,774,939.24	-712,774,939.24	-165,417,320.60	-878,192,259.84
	(iv) Special reserve	–	–	–	–	525,038.85	–	–	525,038.85	302,005.51	827,044.36
	1. Pr ovision for current
	period	–	–	–	–	62,710,928.52	–	–	62,710,928.52	693,784.87	63,404,713.39
	2. Am ount utilized in	–	–	–	–		–	–
	the period IV. Balance at 30 June 2021	4,319,848,116.60	27,494,989,738.63	192,239,528.01	-5,742,389,344.19	62,185,889.67 755,937.91	1,295,599,051.54	11,168,661,865.42	62,185,889.67 38,345,225,837.90	391,779.36 8,620,416,771.14	62,577,669.03 46,965,642,609.04

							Six months ended 30 June 2020
						Attributable to the owners of the Parent Company
			Paid-in capital		Other comprehensive	Special	Surplus	Undistributed		Minority	Total owners'
Item			(or share capital)	Capital reserve	income	reserve	reserve	profits	Sub-total	interests	equity
		I. Balance at 31 December 2019	4,319,848,116.60	27,582,794,983.23	-468,588,363.13	302,145.46	1,286,827,000.91	8,081,590,250.78	40,802,774,133.85	8,692,821,959.41	49,495,596,093.26
		II. Balance at 1 January 2020	4,319,848,116.60	27,582,794,983.23	-468,588,363.13	302,145.46	1,286,827,000.91	8,081,590,250.78	40,802,774,133.85	8,692,821,959.41	49,495,596,093.26
		III. Changes in the current period
		(decrease is indicated by "-")	–	–	-150,121,562.57	531,491.03	–	79,053,354.07	-70,536,717.47	112,933,269.89	42,396,552.42
	(i)	To tal comprehensive income	–	–	-150,121,562.57	–	–	1,007,820,700.18	857,699,137.61	113,079,989.37	970,779,126.98
		(ii) Profit distribution	–	–	–	–	–	-928,767,346.11	-928,767,346.11	–	-928,767,346.11
		1. Di stribution to owners (or
		shareholders)	–	–	–	–	–	-928,767,346.11	-928,767,346.11	–	-928,767,346.11
		(iii) Special reserve	–	–	–	531,491.03	–	–	531,491.03	-146,719.48	384,771.55
		1. Pr ovision for current
		period	–	–	–	85,059,433.10	–	–	85,059,433.10	589,613.08	85,649,046.18
		2. Am ount utilized in the
		period	–	–	–	84,527,942.07	–	–	84,527,942.07	736,332.56	85,264,274.63
		IV. Balance at 30 June 2020	4,319,848,116.60	27,582,794,983.23	-618,709,925.70	833,636.49	1,286,827,000.91	8,160,643,604.85	40,732,237,416.38	8,805,755,229.30	49,537,992,645.68

Statement of Changes in Owners' Equity of the Company

January – June 2021

	Six months ended 30 June 2021
Items		Paid-in capital (or share capital)	Capital reserve	Less: Treasury stock	Special reserve	Surplus reserve	Undistributed profits	Total owners' equity
I. II.	Balance at 31 December 2020 Balance at 1 January 2021 III. Changes in the current period	4,319,848,116.60 4,319,848,116.60	27,633,234,087.22 27,633,234,087.22	193,840,466.48 193,840,466.48	230,899.06 230,899.06	1,295,599,051.54 1,295,599,051.54	935,570,598.19 935,570,598.19	33,990,642,286.13 33,990,642,286.13
	(decrease is indicated by "-") (i) Total comprehensive income	- -	-87,805,244.60 -	-1,600,938.47 -	227,887.27 -	– -	-103,382,484.94 609,392,454.30	-189,358,903.80 609,392,454.30
	(ii) Owners' contributions and reduction in capital 1. Share-based payment recognized in owners'	-	-87,805,244.60	-1,600,938.47	–	–	–	-86,204,306.13
	equity	-	-87,805,244.60	-1,600,938.47			–	-86,204,306.13
	(iii) Profit distribution 1. Distribution to owners (or	-	-	-	–	–	-712,774,939.24	-712,774,939.24
	shareholders)	-	-	-	–	–	-712,774,939.24	-712,774,939.24
	(iiii) Special reserve	-	-	-	227,887.27	–	–	227,887.27
	1. Provision for current period	-	-	-	57,995,006.19	–	–	57,995,006.19
	2. Amount utilized in the period IV. Balance at 30 June 2021	- 4,319,848,116.60	- 27,545,428,842.62	- 192,239,528.01	57,767,118.92 458,786.33	– 1,295,599,051.54	– 832,188,113.25	57,767,118.92 33,801,283,382.33

				Six months ended 30 June 2020
		Paid-in capital	Capital	Special	Surplus	Undistributed	Total owners'
Item		(or share capital)	reserve	reserve	reserve	profits	equity
I.	Balance at 31 December 2019	4,319,848,116.60	27,636,530,888.88	100,628.26	1,286,827,000.91	1,833,691,067.78	35,076,997,702.43
II.	Balance at 1 January 2020	4,319,848,116.60	27,636,530,888.88	100,628.26	1,286,827,000.91	1,833,691,067.78	35,076,997,702.43
	III. Changes in the current period (decrease is indicated
	by "-")	–	–	392,117.99	–	-634,295,165.82	-633,903,047.83
	(i) Total comprehensive income	–	–	–	–	294,472,180.29	294,472,180.29
	(ii) Profit distribution	–	–	–	–	-928,767,346.11	-928,767,346.11
	1. Distribution to owners (or shareholders)	–	–	–	–	-928,767,346.11	-928,767,346.11
	(iii) Special reserve	–	–	392,117.99	–	–	392,117.99
	1. Provision for current period	–	–	77,992,171.21	–	–	77,992,171.21
	2. Amount utilized in the period	–	–	77,600,053.22	–	–	77,600,053.22
	IV. Balance at 30 June 2020	4,319,848,116.60	27,636,530,888.88	492,746.25	1,286,827,000.91	1,199,395,901.96	34,443,094,654.60

II. PREPARATION BASIS OF THE FINANCIAL STATEMENTS

1. Preparation basis

The Group implements the Accounting Standards for Business Enterprises and related regulations promulgated by the Ministry of Finance. The Group also disclosed relevant financial information in accordance with the Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public – General Provisions on Financial Reporting (Revised in 2014). In addition, the financial statements also include relevant disclosures required in accordance with the Hong Kong Companies Ordinance and the Listing Rules of Hong Kong Stock Exchange. The financial statements are not audited by independent auditors.

2. Going concern

The Group has assessed its ability to continue as a going concern for next 12 months from 30 June 2021, and didn't notice any events or circumstances that may cast significant doubts on its ability to continue as a going concern. Therefore, the financial statements have been prepared on a going concern basis.

3. Basis of accounting and principle of measurement

The Group has adopted the accrual basis of accounting. Except for certain financial instruments and trade inventories which are measured at fair value, the Group has adopted the historical cost as the principle of measurement of the financial statements. Where assets are impaired, provisions for asset impairment are made in accordance with relevant requirements.

Under the historical cost basis, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation, or in some circumstances, at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Regardless of whether that price is directly observable or estimated using another valuation technique, fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis.

In measuring non-financial assets at fair value, the Group considers the ability of market participants to use the assets for their best purpose to generate economic benefits, or the ability to sell the assets to other market participants who can use the assets for their best purpose to generate economic benefits.

For the financial assets whose fair value is the transaction price in their initial recognition and the valuation technique involving unobservable inputs is used in the subsequent measurement of fair value, the valuation technique will be corrected in the valuation process so as to make the initial recognition result determined by the valuation technique equal to the transaction price.

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.

III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES

The significant accounting policies and accounting estimates adopted by the Group in the preparation of the financial statements for the six months ended 30 June 2021 are consistent with those described in the audited financial report for the year ended 31 December 2020.

IV. TAXATION

1. Major categories of taxes and tax rates

Major categories of taxes and tax rates

Category of tax	Basis of tax assessment	Tax rate
City maintenance and construction tax	Actual turnover tax	For city urban area, tax rate is 7%; For county town, tax rate is 5%; For others, tax rate is 1%.
Enterprise income tax	Taxable income: the amount of taxable income is computed on basis of adjusted pre- tax accounting profit of the period in accordance with the relevant provisions of the tax law multiplying by the statutory tax rate.	Note 4
Chinese value added tax ("VAT")	The Company is a general taxpayer. VAT payable is the balance of output VAT less deductible input VAT.	Note 1
Chinese resource tax	Raw ore production or sales volume of concentrate	6.5%, 11%,/8% collection on ad valorem basis (Note 2)
Chinese educational surtax and surcharge	Actual turnover tax	3%
Chinese regional educational surtax and surcharge	Actual turnover tax	2%
Australia goods and services tax ("GST")	Amount of the income from rendering of goods and services in Australia less the deductible purchase cost. It is not required to pay goods and services tax for export goods and the refund policy of goods and services tax is also applicable.	10% of the sales price of goods or services
Australia mining royalty	Royalty of mineral resources can be levied by volume or by price. If levied by volume, the royalty will be levied per the unit of exploited minerals. If levied by price, it will be levied per 4% of the total value or the sales price of exploited minerals.	4% ex-mine value

Category of tax	Basis of tax assessment	Tax rate
Brazil social contribution tax and goods circulation tax	Brazil local social contribution tax (PIS & CONFINS) and the goods circulation tax (ICMS) are applicable to CMOC Brazil, of which the tax basis is the balance of income from rendering of goods and services in Brazil less the deductible costs. It is not required to pay social contribution tax and goods circulation tax for export goods.	The social contribution tax is 9.25% of the sales price of goods or services. The goods circulation tax is 4%–18% of the sales price of goods or services. The tax rates imposed by the local states of Brazil are different.
Congo (DRC) VAT	VAT of the Democratic Republic of the Congo ("DRC") is applicable to TFM.	The output VAT is calculated at 16% of the sales amount calculated in accordance with the relevant tax provisions.
Royalties of mining rights in Congo (DRC)	Sales of related products	Note 3
Congo (DRC) exchange tax	The amount of foreign currency paid to or received from countries other than Congo (DRC).	0.2%

If there are taxpayers subject to different enterprise income tax rates, disclosures are described below:

• Note 1: According to the "Announcement on Policies Related to Deepening Value-Added Tax (VAT) Reform" (Announcement No. 39 of 2019 by the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs) issued by the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs, tax rates of taxpayers who engage in VAT taxable sales or imported goods have changed from 16% and 10 % to 13% and 9 % respectively from 1 April 2019.
• Note 2: Pursuant to the Notice on Implementation of the Reform of Resource Tax of Rare Earth, Tungsten and Molybdenum Featured by Price-based Tax Calculation and Collection (Cai Shui [2015] No. 52) issued by the Ministry of Finance and State Administration of Taxation, the implementation of calculation and collection of Molybdenum resources tax shall be changed from volume- based tax to price-based tax on and after 1 May 2015.

The applicable resource tax rate of tungsten is 6.5% and the applicable resource tax rate of molybdenum is 11%. Pursuant to the Instruction on the Scheme (Draft) on the Applicable Tax Rate of Resource Tax of Henan Province, the applicable resource tax rate of molybdenum shall be adjusted to 8% since 1 September 2020.

Note 3: In accordance with the mining act of Congo (DRC), the Group paid royalties of mining rights at 3.5% and 10% respectively in respect of the revenue from sales of products relating to copper and cobalt business in Congo (DRC).

Note 4: Applicable income tax rate:

The applicable enterprise income tax rate for the Company and its domestic subsidiaries was 25%.

China Molybdenum (Hong Kong) Company Limited and CMOC Co., Ltd. were incorporated in Hong Kong, thus were subject to Income Tax levied at a rate of 16.5%.

CMOC Mining Pty Limited ("CMOC Mining") and CMOC Mining Services Pty. Limited ("CMOC Mining Services") were incorporated in Australia, thus were subject to Income Tax levied at a rate of 30%.

CMOC UK Limited ("CMOC UK") was incorporated in the United Kingdom, thus was subject to the applicable income tax rate of 19%.

CMOC Brazil Mineração, Indústria e Participações Ltda. ("CMOC Brazil") was incorporated in Brazil, thus was subject to the income tax rate of 34%.

There's no enterprise income tax for the subsidiaries of the Group established in Bermuda and the British Virgin Islands ("BVI").

TFM was incorporated in Congo (DRC) and was subject to the enterprise income tax rate of 30%.

IXM and its subsidiaries principally operate in Switzerland and China. Applicable income tax rate of its subsidiaries in Switzerland is 13.99%.

2. Tax incentive

On 10 May 2015, the Decision of the State Council on Cancelling Non-Administrative Licensing Approval Items cancelled the recognition process of enterprise of comprehensive utilization of resources. However, the Company sold powdered Tungsten (scheelite concentrates) is still within the scope of catalogue of income tax preferential program of enterprise of comprehensive utilization of resources. Therefore, the Company still recognized 90% of sales of powdered Tungsten (scheelite concentrates) to taxable income during the year 2020 and first half of 2021.

On 26 August 2019, the 12th Session of the Standing Committee of the 13th National People's Congress voted on and passed the "Resource Tax Law of the People's Republic of China" (hereinafter referred to as the "New Resource Tax Law"), which will come into force on 1 September 2020. The New Resource Tax Law stipulates that the resource tax rate for molybdenum mines will be reduced from 11% to 8%. The exemption or reduction of the associated resource tax shall be decided by the Provincial People's Congress. According to the decision of the 19th meeting of the Standing Committee of the 13th People's Congress of Henan Province on 31 July 2020, associated mines are exempt from resource tax. The Company's tungsten, iron and other associated mines will continue to be exempted from resource tax from 1 September 2020.

On 9 September 2020, the Company received a "high-tech enterprise certificate", No. GR202041000074, which was jointly issued by the Henan Science and Technology Department, Henan Finance Department and Henan Provincial Tax Service, State Taxation Administration. This is the new recognition upon the expiry of the Company's original high-tech enterprise certificate, and the qualification is valid for 3 years. The preferential period for enterprise income tax is from 1 January 2020 to 31 December 2022, during which the Company is subject to the enterprise income tax rate of 15%.

V. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Cash and bank balances

Unit: Yuan Currency: RMB

Item	30 June 2021	31 December 2020
Cash	1,319,792.42	756,268.21
Bank balances	12,624,909,194.75	11,448,194,170.04
Other cash and bank balances	6,801,121,091.16	5,498,697,642.62
Total	19,427,350,078.33	16,947,648,080.87
Including: Total amount deposited abroad	4,823,073,907.00	5,464,807,563.48

Note: Included in the above other cash and bank balances at 30 June 2021 mainly comprise mines deposits, loan interest deposits, certificates of deposit pledged to obtain short-term borrowings, derivative financial instruments deposits, notes deposits and other deposits, which amounted to RMB44,766,423.32, RMB792,270,892.52, RMB3,435,000,000.00, RMB1,702,722,409.94, RMB779,651,969.29 and RMB500,000.00 respectively (31 December 2020: RMB52,646,910.15, RMB917,953,604.25, RMB3,319,600,000.00, RMB1,027,486,051.85, RMB180,502,591.40 and RMB500,000.00).

2. Held-for-trading financial assets

Unit: Yuan Currency: RMB

Item	30 June 2021	31 December 2020
Financial assets at fair value through profit or loss
Including:
Receivables (Note 1)	6,599,327,862.51	7,205,799,964.69
Structured deposits (Note 2)	1,007,580,969.95	200,166,402.26
Fund products of financial institutions	20,125,303.30	19,877,241.18
Others	17,859,055.29	9,285,232.37
Total	7,644,893,191.05	7,435,128,840.50

Note 1: The major products of the Group are copper, lead and zinc concentrates and cobaltous hydroxide etc., selling price of which is provisionally determined according to the market price upon delivery. Generally, the price is finally determined according to the monthly average spot price quoted by the London Metals Exchange (LME) or other agreed pricing methods within a specified period or a period subsequent to the delivery. The Group classifies the accounts receivable generated from relevant business as financial assets at FVTPL.

As at 30 June 2021, held-for-trading financial assets with a book value of USD105,911,080.19 (equivalent to RMB684,196,169.11) were pledged to obtain short-term borrowings. (2020: USD108,022,000.00 (equivalent to RMB704,832,747.80)).

Note 2: They are the structured deposits of RMB purchased by the Group from domestic financial institutions, the yield of which is linked to Shanghai gold benchmark price of Shanghai Gold Exchange. The Group classifies such deposits as financial assets at fair value through profit or loss.

3. Derivative financial assets

Unit: Yuan Currency: RMB Item 30 June 2021 31 December 2020 De rivative financial instruments of which hedging relationship is not designated (Note 1) Forward commodity contracts 840,250,943.03 724,237,223.86 Forward foreign exchange contracts 44,524,450.96 139,026,031.58 Commodity futures contracts 929,950,164.69 1,191,450,847.31 Commodity option contracts 67,380,868.31 4,634,323.27 Interest rate swap contracts – 762,684.40 De rivative financial products of which hedging relationship is designated Forward foreign exchange contracts (Note 2) 37,628,887.38 – Commodity futures contracts (Note 3) 24,513,934.15 – Total 1,944,249,248.52 2,060,111,110.42

Note 1: The Group uses commodity (copper, lead, zinc concentrates, refined metals etc.) futures contracts, forward commodity contracts and commodity option contracts to manage the risk of commodity purchases and future sales so as to avoid bearing the risk of significant changes in the price of relevant products arising from the fluctuation of the market price. Besides, the Group uses forward foreign exchange contracts and interest rate swap contracts for risk management to avoid exchange rate and interest rate risk. The forward commodity contracts, forward foreign exchange contracts, commodity futures contracts, commodity option contracts and interest rate swap contracts are not designated as hedging instruments. The gains or losses arising from changes in fair value of these contracts shall be directly recorded into profit or loss. See Note V. 55.

• Note 2: Forward foreign exchange contracts and exchange rate option contracts are in relation to the forward foreign exchange contracts and exchange rate option contracts purchased by the Group, which are used to hedge the cash flow risk arising from capital expenditure of Brazil subsidiary. The Group accounted for the above hedging instrument and corresponding hedged items according to hedge accounting. Refer to Note V. 66 for details.
• Note 3: Commodity futures contracts are in relation to the commodity futures contracts purchased by the Group, which are used to hedge the fair value risk arising from price fluctuation of a part of the Group's cooper products or the cash flow risk arising from expected sales. The Group accounted for the above hedging instrument and corresponding hedged items according to hedge accounting. Refer to Note V. 66 for details.

4. Accounts receivable

	Currency: RMB Unit: Yuan
Aging	30 June 2021
Within 1 year Sub-total 1 – 2 years 2 – 3 years Over 3 years	949,892,814.78 20,587,324.94 21,136,313.36 –
Total	991,616,453.08

(1) Disclosure by aging

(2) Disclosure by provision method for bad debts

As the Group has a long-term and stable transaction relationship with the customers with high credit rating in respect of the niobium business in Brazil and acid business in Congo (DRC), the management believes that the credit risk is low. As part of the credit risk management, the Group measures internal credit rating for the customers of tungsten and molybdenum business in China and phosphorus business in Brazil, and recognizes expected loss rate of accounts receivable in all ratings. At the balance sheet date, the Group recognizes the expected credit loss allowance for accounts receivables based on provision matrix.

Unit: Yuan Currency: RMB

	30 June 2021				31 December 2020
	Expected				Expected
Internal credit rating	average loss rate	Book balance	Provision for loss	Book value	average loss rate	Book balance	Provision for loss	Book value
Low risk	0.06%	797,400,741.17	485,859.39	796,914,881.78	0.06%	546,882,993.62	312,451.03	546,570,542.59
Normal	2.27%	187,670,689.42	4,258,876.06	183,411,813.36	2.66%	85,279,852.28	2,267,621.16	83,012,231.12
Attention	7.59%	397,821.80	30,184.67	367,637.13	9.02%	77,544,928.02	6,994,572.95	70,550,355.07
Doubtful (impaired)	54.87%	24,200,607.40	13,278,486.59	10,922,120.80	54.93%	4,572,094.18	2,511,509.05	2,060,585.13
Loss (impaired)	100.00%	20,845,319.60	20,845,319.60	–	100.00%	24,212,835.28	24,212,835.28	–
Total		1,030,515,179.39	38,898,726.31	991,616,453.08		738,492,703.38	36,298,989.47	702,193,713.91

The expected average loss rate is measured based on historical actual impairment rate with the current situation and prediction on future economy taken into consideration. There are no changes in evaluation approach and significant assumption in the reporting period.

(3) Changes in expected credit loss provision for accounts receivable

	Lifetime ECL (not-credit-impaired)	Lifetime ECL (credit-impaired)	Total
1 January 2021 Book balance of accounts receivable in the current period on 1 January 2021	9,574,645.14	26,724,344.33	36,298,989.47
– Transfer to credit-impaired	-6,912,249.60	6,912,249.60	–
– Transfer from credit-impaired	178,511.82	-178,511.82	–
Provision of ECL for the period	3,660,569.02	96,212.95	3,756,781.97
Reversal of ECL for the period	-1,673,771.06	0.00	-1,673,771.06
Write-off for the period	–	-25,290.62	-25,290.62
Changes in exchange rate	-52,785.21	594,801.76	542,016.55
30 June 2021	4,774,920.11	34,123,806.20	38,898,726.31

(4) Top five accounts receivable balances at the end of the report period based on debtors:

Unit: Yuan Currency: RMB

Name of entity	Relationship with the Company	Amount	Proportion of the amount to the total accounts receivable (%)	Credit impairment loss
30 June 2021 Funchuan Mining	Related Party	143,712,402.46	13.95	–
Company A	Third Party	70,507,207.31	6.84	84,951.47
Company B	Third Party	47,353,231.66	4.60	5,655,067.60
Company C	Third Party	43,629,345.58	4.23	–
Company D	Third Party	38,744,252.21	3.76	46,681.49
Total	/	343,946,439.22	33.38	5,786,700.56

5. Financing receivables

Total	415,022,057.97	405,697,607.38
Including: Bank acceptances Commercial acceptances	415,022,057.97 –	380,763,917.60 24,933,689.78
Notes receivable
Item	30 June 2021	31 December 2020
		Unit: Yuan Currency: RMB

Part of notes receivable are endorsed or discounted by the Group in accordance with the daily fund requirement, and classified as financial assets at fair value through other comprehensive income.

Bad debt provision is made based on the general model of expected credit loss:

(1) Credit risk on financing receivables:

The Group measures the ECL of financing receivables on the basis of the table of credit rating and loss given default ("LGD"). The ECL in financing receivables is as follows:

Unit: Yuan Currency: RMB

Internal credit rating	Expected average loss rate	30 June 2021 Book balance	Expected credit loss	Expected average loss rate	31 December 2020 Book balance	Expected credit loss
Low risk (non-credit-impaired) Normal (non-credit-impaired) Losses (credit-impaired)	0.01% – 100.00%	415,067,203.98 – 11,350,000.00	45,146.01 – 11,350,000.00	0.00% 2.95% 100.00%	381,499,760.65 24,933,689.92 11,350,000.00	– 735,843.19 11,350,000.00
Total		426,417,203.98	11,395,146.01		417,783,450.57	12,085,843.19

(2) At the end of the current and lost period, endorsed or discounted financing receivables by the Group but still outstanding at balance sheet date are as follows:

Unit: Yuan Currency: RMB

Category	Amount derecognized as at 30 June 2021	Amount derecognized as at 31 December 2020
Bank acceptances	1,636,083,216.96	2,064,202,071.72
Total	1,636,083,216.96	2,064,202,071.72

Note: Since major risks and reward including the interest rate risks related to such bank acceptances have been substantially transferred to the bank or another party, the Group ceased to recognize the discounted or endorsed bank acceptances.

• (3) At the end of the current period, the Group's financing receivables of RMB295,405,400.59 (2020: RMB334,501,519.98) were pledged for issue of notes payable.
• (4) At the end of the current period, the Group had no notes converted into accounts receivable due to the drawer's inability to perform obligations.

6. Prepayments

(1) Disclosure by aging

Unit: Yuan Currency: RMB

	30 June 2021		31 December 2020
Aging	Amount	Proportion		Proportion
		(%)		(%)
Within 1 year	2,321,609,656.12	98.56	1,400,634,872.31	99.63
1 – 2 years	29,412,248.46	1.25	667,432.50	0.05
2 – 3 years	4,162,018.09	0.18	4,379,293.39	0.31
Over 3 years	231,059.80	0.01	156,690.05	0.01
Total	2,355,414,982.47	100.00	1,405,838,288.25	100.00

(2) Top five of prepayments balances at the end of the period based on debtors

Name of entity	Relationship with the Company	30 June 2021 Amount	Proportion of the amount to the total prepayments (%)
Company E Company F Company G Funchuan Mining Company H	Third Party Third Party Third Party Related Party Third Party	608,140,448.31 199,666,197.87 197,830,113.09 143,392,360.03 105,329,097.68	25.82 8.48 8.40 6.09 4.47
Total	/	1,254,358,216.98	53.26

7. Other receivables

Unit: Yuan Currency: RMB

Unit: Yuan Currency: RMB

Item	30 June 2021	31 December 2020
Interests receivable Other receivables	385,498,054.06 1,535,550,399.55	344,628,170.18 1,332,124,314.13
Total	1,921,048,453.61	1,676,752,484.31

Interests receivable

(1) Category of interests receivable

Item	30 June 2021	31 December 2020
Interests receivable on bank deposits Interests receivable from the related	341,833,833.82	321,343,382.12
parties (Note X. 6)	36,336,876.55	13,061,072.16
Interests receivable from third parties (Note V. 21)	7,327,343.69	10,223,715.90
Total	385,498,054.06	344,628,170.18

Other receivables

(1) Other receivables disclosed by nature

		Unit: Yuan Currency: RMB
Nature of other receivables	30 June 2021	31 December 2020
Deductible Brazil social contribution tax
(Note 1)	173,134,125.75	298,091,775.81
Congo (DRC) VAT refunds receivable
(Note 2)	957,597,986.10	786,257,280.33
Deposits	22,296,967.26	23,338,724.22
Gains in close position (Note 3)	78,064,536.49	21,478,008.50
Delivery of financial assets receivable	516,661.00	10,765,916.13
Others	332,988,052.93	221,131,201.38
Total	1,564,598,329.53	1,361,062,906.37

Note 1: See Note V. 21 for details.

• Note 2: The VAT refundable amount is generated from the export business of subsidiaries situated in the Congo (DRC). The entity has applied for tax refund from the government and is expected to receive the tax refund within one year.
• Note 3: It is the closing position part of forward commodity contracts of the Group, and the gains of which will be received at the settlement after the period.

(2) Bad debt provision for other receivables

The Group had other receivables of which the loss provision was recognized on the basis of ECL as below:

					Unit: Yuan	Currency: RMB
		30 June 2021 Book balance Bad debt provision	Book value	Book balance	31 December 2020 Bad debt provision	Book value
Other receivables of which the loss provision was recognized on the basis of ECL	433,866,217.68	29,047,929.98	404,818,287.70	276,713,850.23	28,938,592.24	247,775,257.99

At 30 June 2021, the management of the Group believes that there's no ECL on other receivables as their credit risk has not increased significantly since initial recognition except for the receivables amounting to RMB29,047,929.98 (31 December 2020: RMB28,938,592.24) that has credit-impaired and of which impairment has been provided fully.

(3) Changes in bad debt provision

2021:

Unit: Yuan Currency: RMB

Category	1 January 2021	Increase	Reversal	Changes in the current period Write-off	Other changes	30 June 2021
Impairment provision	28,938,592.24	144,337.74	35,000.00	–		– 29,047,929.98
2020:
Item	1 January 2020		Increase	Decrease Reversal	Write-off	31 December 2020
Impairment provision	28,941,171.79		–	2,579.55	–	28,938,592.24

Note: The expected credit loss provision for other receivables is the provision for credit-impaired other receivables.

(4) Top five other receivables balances at the end of period based on debtors

Unit: Yuan Currency: RMB

Name of entity	Nature	30 June 2021	Aging	Proportion of the amount to the total other receivable (%)	Closing balance of bad debt provision
DRC government Federal government of	Third Party	957,597,986.10	Within 3 years	61.20	-
Brazil	Third Party	173,134,125.75	Within 3 years	11.07	-
Company I	Third Party	69,925,307.83	Within 1 year	4.47	-
Company J	Third Party	60,368,886.68	Within 2 years	3.86	-
Company K	Third Party	14,896,990.60	Within 1 year	0.95	-
Total	/	1,275,923,296.96	/	81.55	-

8. Inventories

Unit: Yuan Currency: RMB

Item	30 June 2021 Book value	31 December 2020 Book value
Inventories: – measured at cost – measured at fair value	13,375,081,340.29 16,878,187,629.89	14,870,767,881.23 12,145,339,527.66
Total	30,253,268,970.18	27,016,107,408.89

Note: As at 30 June 2021, the book value of the inventories, which are pledged by the Group to acquire short-term borrowings, is USD2,863,788,919.81 (equivalent to RMB18,500,362,800.89) (2020: USD2,052,418,000.00 (equivalent to RMB13,391,822,208.20)).

As at 30 June 30 2021, the Group pledged the warehouse receipt in respect of the inventories with the book value of RMB nil (2020: RMB229,106,688.00) to obtain the futures trading quota.

Inventories measured at cost

(1) Categories of inventories

Current:

Unit: Yuan Currency: RMB

		30 June 2021 Provision for decline in value of inventories/Provision for impairment			31 December 2020 Provision for decline in value of inventories/Provision for impairment
Item	Book balance	of contract performance cost	Book value	Book balance	of contract performance cost	Book value
Raw materials Work-in-progress Finished goods Trading inventories	2,551,115,135.46 2,867,037,914.56 757,409,160.79 1,221,465,560.93	26,002,128.15 390,434.59 830,552.46 –	2,525,113,007.31 2,866,647,479.97 756,578,608.33 1,221,465,560.93	2,244,807,129.62 2,634,348,053.90 1,296,884,917.62 2,895,210,662.29	7,788,548.68 1,032,555.28 2,149,701.75 –	2,237,018,580.94 2,633,315,498.62 1,294,735,215.87 2,895,210,662.29
Total	7,397,027,771.74	27,223,115.20	7,369,804,656.54	9,071,250,763.43	10,970,805.71	9,060,279,957.72

Non-current:

Unit: Yuan Currency: RMB

Item	Book balance	30 June 2021 Provision for decline in value	Book value	Book balance	31 December 2020 Provision for decline in value	Book value
Raw materials (Note)	6,022,459,009.82	17,182,326.11	6,005,276,683.71	5,828,267,350.71	17,779,427.20	5,810,487,923.51
Total	6,022,459,009.82	17,182,326.11	6,005,276,683.71	5,828,267,350.71	17,779,427.20	5,810,487,923.51

Note: Non-current raw materials are minerals reserved by the Group for future production or sales, including:

1. The sulfide ore exploited and reserved in Australian Northparkes Copper and gold business. According to the estimation of the management, it is expected that these ore material reserves will not be sold before the end of 2024, the mining period of E48 mine shaft. Therefore, the amount is presented as non-current assets.

2. Low-grade ores were produced from Tenke Copper-Cobalt mine in Congo, ore recovery process is further demanded in the future; the management estimates that these ores will not be ready for sales within one year, so it is presented as non-current assets.

(2) Provision for decline in value of inventories/Provision for impairment of contract performance cost

Current:

Unit: Yuan Currency: RMB

		Increase in the current period	Reversal or	Decrease in the current period
Item	1 January 2021	Provision	write-off	Others	30 June 2021
Raw materials Work-in-progress Finished goods	7,788,548.68 1,032,555.28 2,149,701.75	18,400,322.55 170,092.10 2,092,689.93	– 595,428.87 –	186,743.08 216,783.92 3,411,839.22	26,002,128.15 390,434.59 830,552.46
Total	10,970,805.71	20,663,104.58	595,428.87	3,815,366.22	27,223,115.20

Non-current:

Unit: Yuan Currency: RMB

		Increase in the current period		Decrease in the current period
Item	1 January 2021	Provision	Reversal or write-off	Others	30 June 2021
Raw materials	17,779,427.20	–	–	597,101.09	17,182,326.11
Total	17,779,427.20	–	–	597,101.09	17,182,326.11

Note: Other increase in the current period represents foreign exchange difference from translation of financial statements.

Inventories measured at fair value

(1) Categories of inventories

Item	30 June 2021 Book value	31 December 2020 Book value
Current: Trading inventories outside China Non-current: Consumable biological	16,849,410,702.41	12,109,908,573.82
assets	28,776,927.48	35,430,953.84
Total	16,878,187,629.89	12,145,339,527.66

(2) Changes in consumable biological assets are set out below:

Unit: Yuan Currency: RMB

			Increase in the current period Transferred from		Decrease in the current period	Translation differences arising on translation of financial statements
Item	Quantity	1 January 2020	construction in progress	Changes in fair value	Used	denominated in foreign currencies	30 June 2021
Eucalyptus forest in Brazil	2,824 hectares	35,430,953.84	–	-4,933,877.47	1,399,885.32	-320,263.57	28,776,927.48

9. Other current assets

Unit: Yuan Currency: RMB

Item	30 June 2021	1 January 2021
Derivative financial instruments deposits
(Note 1)	3,122,049,673.97	4,393,525,659.84
Prepayment of VAT/input VAT to be deducted
(Note 2)	669,116,594.74	706,477,505.26
Prepayment of enterprise income tax	45,553,682.97	70,536,492.28
Loans to suppliers (Note 3)	29,199,652.00	66,734,193.76
Loans receivable from Société Nationale
d'Electricité (Note 4)	85,940,551.17	88,409,227.36
Prepaid insurance expenses (Note 5)	6,528,416.76	26,687,224.46
Others	138,534,465.19	83,716,711.42
Total	4,096,923,036.80	5,436,087,014.38

The Group accounts the financial assets in the other current assets according to ECL model. At 30 June 2021, the management believes that the relevant financial assets have a low credit risk.

Note 1: It is the deposit paid by the Group to acquire derivative financial instruments.

• Note 2: It is the VAT input to be deducted arising from the subsidiaries of the Group in China and the subsidiaries of IXM outside the PRC.
• Note 3: It represents a long-term loan to third- party supplier A that is due within one year. See Notes V. 21 for details.
• Note 4: The loans receivable is due from Société Nationale d'Electricité ("SNEL") which is provided by the subsidiary of the Group in DRC. According to the agreement, the amount will be offset with electricity bill when the Company actually uses electricity. The current part is the portion expected to be offset in the next year. For the non-current part, see Note V. 21.
• Note 5: It is the insurance expenses paid by the Group for the overseas business, which are amortized over the corresponding period of benefits.

10. Long-term equity investment

				Investment income	Adjustment		Declare a
				recognized	to other	Other	cash dividend	Provision for
		Additional	Decreased	under equity	comprehensive	changes in	or profit	impairment
										30 June 2021
										- 705,170,141.73
		-	-		-	-	-	-	-
	743,599,603.49	-	-	-38,429,461.76	-	-	-	-		- 705,170,141.73
		-	-	-	-	-	-	-	-
Note 2	78,399,984.45	-	-	42,604,173.55	-	-	45,600,000.00	-		75,404,158.00
Note 3	-	-	-	-	-	-	-	-	-	-
Note 4	2,454,764.46	-	-	440,192.15	-	-	-	-	-	2,894,956.61
Note 5	607,800.71	-	-		-	-	-	-	-6,036.18	601,764.53
Note 6	2,923,706.58	-	-	-2,278,584.53	-	-	-	-	-	645,122.05
Note 7	4,115,390.46	5,819,615.87		329,651.88			1,281,516.20		74,934.00	9,058,076.01
										705,042.82
Note 10	467,581.57	-	-	-467,581.57	-	-	-	-	-	-
	604,653,295.19	5,819,615.87	-	46,892,308.03	-	-	46,881,516.20
	1,348,252,898.68	5,819,615.87	-	8,462,846.27	-	-	46,881,516.20
	Notes Note 1 Note 8 Note 9	1 January 2021 743,599,603.49 514,832,338.53 851,728.43	investment - - -	investment - - - -	method -38,429,461.76 6,411,142.16 -146,685.61	income - - - -	Changes in the current period equity - - - -	distribution - - -	losses - - -	Others - -5,144,890.09 516,098,590.60 - - -5,075,992.27 605,407,710.62 - -5,075,992.27 1,310,577,852.35

Note 1: Huan Yu, a joint venture of the Group, holds 90% of equity in Luoyang Fuchuan Mining Co., Ltd. ("Fu Chuan"). Meanwhile, the Group holds 10% of equity in Fu Chuan indirectly by its subsidiary, Fu Kai. Therefore, the Group holds directly and indirectly 55% of equity in Fu Chuan totally by Huan Yu.

According to the agreement with local government, the local government is entitled to 8% of the dividend rights of Fu Chuan. Thus, the Group actually holds 47% of the profit or loss of Fu Chuan under equity method.

• Note 2: According to the resolution of Yulu Mining's 2007 annual general meeting of shareholders, both investors would share the net profit at the ratio of 1:1 since year 2008. Therefore, the Group holds 40% equity interest in Yulu Mining but recognizes investment income at 50% out of its net profit.
• Note 3: The Group holds 40% of Nanomoly Development's equity and accounts investment therein based on equity method. In accordance with Articles of Association of Nanomoly Development, the Group does not assume any additional liabilities for additional loss. As at the end of the period end, the Group has written down its investment in Nanomoly Development to zero.
• Note 4: On 7 April 2016, the Company entered into a collaboration agreement with a third party, and the Company invested RMB1.5 million by way of intangible assets and the counterparty invested RMB8.5 million of cash to incorporate Luoyang Shenyu. Meanwhile, the Company appointed a director and a supervisor to Luoyang Shenyu. Therefore, Luoyang Shenyu was accounted as an associate due to its significant influence.
• Note 5: The Group held 45% shares of Natural Resources Investment Fund as a limited partner, and had significant influence on the operating decision of relevant investment entities. The relevant investment was accounted under equity method.
• Note 6: On 11 October 2019, the Company signed an equity transfer agreement with a third party, purchasing 30% of equity in You Qing held by a third party at a cash consideration price of RMB1.5 million, and assigning two directors and one supervisor. Therefore, it is accounted as an associate due to significant influence of the Group.
• Note 7: Walvis Bay is an associate of IXM Holding, a wholly-owned subsidiary of the Company.
• Note 8: In November 2019, the Group's wholly-owned subsidiary Luoyang Molybdenum Holding signed an equity transfer agreement with Newstride Limited, acquiring 100% of equity in W-Source Holding Limited ("W-Source Holding") at a consideration price of USD1,125.87, and indirectly acquiring 21% share of PT.Huayue Nickel Cobalt held by W-Source Holding. On 25 July 2020, Luoyang Molybdenum Holding increased its equity in Huayue Nickel Cobalt to 30% through subscription of W-Source Holding for the new registered capital of Huayue Nickel Cobalt. W-Source Holding assigns a director and a supervisor to PT.Huayue Nickel Cobalt. Therefore, it is accounted as an associate due to the significant influence of the Group.
• Note 9: Beijing Youhong was incorporated on 27 August 2020. As the shareholder holding 30% of the shares, the Company made cash contribution of RMB900,000 on 22 October 2020 while assigning one director and one supervisor. Therefore, it is accounted as an associate due to significant influence of the Group.
• Note 10: Tongxiang Hua'ang was incorporated on 31 August 2019. As the shareholder holding 30% of the shares, the Company made cash contribution of RMB600,000 on 22 October 2020 while assigning one director and one supervisor. Therefore, it is accounted as an associate due to significant influence of the Group.

11. Other investments in equity instruments

(1) Details of other investments in equity instruments

Unit: Yuan Currency: RMB

80,306,124.92 80,306,124.92 5,795,576.24 5,795,576.24
111,528.98 112,649.07 86,213,230.14 86,214,350.23

Changes in other investments in equity instruments in the current period:

Unit: Yuan Currency: RMB

Item	1 January 2021	Increase	Changes in fair value	Expiry/ Disposal	Translation differences arising on translation of financial statements denominated in foreign currencies	30 June 2021
Equity L Equity M Equity N	80,306,124.92 5,795,576.24 112,649.07	– – –	– – –	– – –	– – -1,120.09	80,306,124.92 5,795,576.24 111,528.98
Total	86,214,350.23	–	–	–	-1,120.09	86,213,230.14

Note: As the investments in equity instruments of the Group and its subsidiaries are the investments that the Group and its subsidiaries plan to hold for a long term, they are designated as financial assets at FVTOCI.

12. Other non-current financial assets

Unit: Yuan Currency: RMB

Item	30 June 2021	1 January 2021
Entrusted wealth management products of non-banking
financial institutions (Note 1)	350,358,236.99	450,743,063.75
Entrusted wealth management products of banking
financial institutions (Note 2)	132,845,260.29	130,232,909.60
O Partnership shares (Note 3)	1,119,752,484.27	1,041,332,403.16
P Partnership shares	334,258,631.47	334,258,631.47
Q Partnership shares	165,462,382.42	99,660,324.78
R Fund shares	357,838,087.66	255,763,407.58
S Fund shares	–	219,726,007.50
Target asset management plans	1,029,002,486.58	1,448,583,564.47
T Company equity	–	260,185,385.43
U Company equity	18,524,479.12	43,896,693.44
V Company equity	78,195,386.99	79,093,795.68
W Fund shares	333,088,370.99	314,710,421.31
X Partnership	150,000,000.00	–
Others	4,928.00	4,928.00
Total	4,069,330,734.78	4,678,191,536.17

Note 1: Other wealth management products of non-banking financial institutions are in relation to wealth management product plans provided by the non-banking financial institutions within China purchased by the Group, with expected yield of 5.4041%. The management of the Group believes that the interests in these wealth management product plans and the risk exposures are not significantly different from their book value, and are accounted as financial assets at FVTPL. In the current period, the Group obtained RMB12,151,719.31 of income from wealth management investment.

Note 2: It is the non-principle preservation wealth management with floating yield purchased by the Group from banks and financial institutions in China, with an expected yield of 5.00% over a period of 5 years.

Note 3: AC Partnership shares are in relation to the shares of the Group invested in the partnership. Dividends of RMB264,594.76 are received from relevant investment items in the current period. In accordance with the terms of the partnership agreement, the investment costs and the corresponding investment income withdrawn by the Group from the partnership in current year are RMB25,958,967.10 and RMB155,370,906.53 respectively.

13. Non-current derivative financial assets and non-current derivative financial liabilities

Unit: Yuan Currency: RMB

Item	30 June 2021	1 January 2021
Non-current derivative financial assets Commodity futures contracts (Note 2)	16,177,479.71	–
Total	16,177,479.71	–
Non-current derivative financial liabilities
Interest rate swap contracts (Note 1) Commodity futures contracts (Note 2)	388,920,337.79 –	406,801,357.57 10,357,891.37

Note 1: Interest rate swap contracts are in relation to the forward interest rate swap contracts purchased by the Group, which are used to hedge the cash flow risk due to the part of loans with floating interest rate on the balance sheet of the Group. The Group accounted the above hedging instrument and corresponding hedged items according to hedge accounting. Refer to Note V. 66 for details.

Note 2: Commodity futures contracts are purchased by the Group to hedge the cash flow risk arising from the expected sales of some of the Group's copper products. The Group accounted the above hedging instrument and corresponding hedged items according to hedge accounting. Refer to Note V. 66 for details.

14. Fixed assets

Item	30 June 2021	31 December 2020
Fixed assets	22,167,428,135.65	23,328,330,597.04
Total	22,167,428,135.65	23,328,330,597.04

(1) Details of fixed assets

Unit: Yuan Currency: RMB

Item		Buildings	Machinery equipment	Transportation devices	Electronic equipment, fixture and furniture	Total
	I. Total original carrying amount
	1. 1 January 2021	15,211,442,396.39	20,425,875,973.33	81,566,048.03	236,406,029.30	35,955,290,447.05
	2. Increase in the current period	-241,028,094.84	57,005,217.81	3,873,249.04	1,298,034.69	-178,851,593.30
	(1) Purchase	120,454,633.86	35,024,434.93	3,924,573.96	1,373,019.58	160,776,662.33
	(2) Tr ansferred from construction
	in progress	125,236,166.30	222,254,834.20	-	-	347,491,000.50
	(3) Re valuation of recultivation and asset retirement obligations
	(Note 1)	-328,602,320.04	-	-	-	-328,602,320.04
	(4) Tr anslation differences
	of financial statements
	denominated in foreign
	currencies	-158,116,574.96	-200,274,051.32	-51,324.92	-74,984.89	-358,516,936.09
	3. Decrease in the current period	1,876,425.10	22,054,183.22	2,175,436.64	-1,009,701.93	25,096,343.03
	(1) Disposal or scrap	1,876,425.10	22,054,183.22	2,175,436.64	-1,009,701.93	25,096,343.03
	4. 30 June 2021	14,968,537,876.45	20,460,827,007.92	83,263,860.43	238,713,765.92	35,751,342,510.72
	II. Accumulated depreciation
	1. 1 January 2021	5,601,390,556.38	6,773,707,195.10	39,700,694.17	182,655,813.53	12,597,454,259.18
	2. Increase in the current period	423,376,829.76	654,975,253.17	4,345,953.75	7,674,140.66	1,090,372,177.34
	(1) Provision	423,376,829.76	654,975,253.17	4,345,953.75	7,674,140.66	1,090,372,177.34
	3. Decrease in the current period	64,074,753.92	84,218,592.36	1,945,165.12	152,595.82	150,391,107.22
	(1) Disposal or scrap	34,889.36	21,748,730.64	1,926,655.10	118,049.17	23,828,324.27
	(2) Tr anslation differences
	of financial statements
	denominated in foreign currencies	64,039,864.56	62,469,861.72	18,510.02	34,546.65	126,562,782.95
	4. 30 June 2021	5,960,692,632.22	7,344,463,855.91	42,101,482.80	190,177,358.37	13,537,435,329.30
	III. Provision for impairment
	1. 1 January 2021	27,200,779.13	1,355,513.96	–	949,297.74	29,505,590.83
	2. Increase in the current period	2,144,479.90	14,741,736.09	31,921.95	55,317.00	16,973,454.94
	(1) Provision	2,144,479.90	14,741,736.09	31,921.95	55,317.00	16,973,454.94
	3. Decrease in the current period	–	–	–	–	–
	(1) Disposal or scrap 4. 30 June 2021	– 29,345,259.03	– 16,097,250.05	– 31,921.95	– 1,004,614.74	– 46,479,045.77
	IV. Carrying amount
	1. Closing carrying amount	8,978,499,985.20	13,100,265,901.96	41,130,455.68	47,531,792.81	22,167,428,135.65
	2. Opening carrying amount	9,582,851,060.88	13,650,813,264.27	41,865,353.86	52,800,918.03	23,328,330,597.04

Note 1: At the end of the period, the Group reviewed the future recultivation and asset retirement obligations in the Congo (DRC), and adjusted the carrying amount of recultivation and asset retirement obligations according to the updated recultivation plan.

Note 2: Buildings include land, housing and mining projects.

As at the end of the period, no fixed assets are used as collateral.

(2) The temporary idle fixed assets

Unit: Yuan Currency: RMB

Item	Original carrying	Accumulated	Provision for	Net carrying
	amount	depreciation	impairment	amount
30 June 2021 -Machinery equipment 30 June 2021 -Electronic equipment, fixture	42,315,543.97	39,518,932.13	2,167,858.19	628,753.65
and furniture	1,028,036.63	896,551.70	131,484.93	–
30 June 2021 – Transportation devices	230,032.00	218,530.40	11,501.60	–

(3) The Group has no fixed assets leased under finance leases.

(4) The Group has no fixed assets leased out under operating leases.

(5) Details of the fixed assets without certificate of titles

Item	Carrying amount	The reason of not completing the certificate of title
High-pressure roller mill workshop	22,448,108.10	Co mpleted and settled, asset right transaction is in progress
High-pressure roller mill slope retaining	5,749,323.19	Co mpleted and settled, asset right
Main extraction workshop	5,450,639.95	transaction is in progress Co mpleted and settled, asset right
Main decomposition workshop	5,346,421.11	transaction is in progress Co mpleted and settled, asset right
Tungsten and molybdenum extraction	5,596,437.91	transaction is in progress Co mpleted and settled, asset right
and separation workshop		transaction is in progress
Office staff dining hall	4,942,932.32	Co mpleted and settled, asset right transaction is in progress
Main crystallization workshop	4,571,637.73	Co mpleted and settled, asset right
		transaction is in progress
Others	19,283,634.64	Co mpleted and settled, asset right transaction is in progress

15 Construction in progress

Unit: Yuan Currency: RMB

Item	30 June 2021	31 December 2020
Construction in progress	4,641,223,299.23	3,958,981,388.37
Total	4,641,223,299.23	3,958,981,388.37

Construction in progress

(1) Construction in progress status:

		30 June 2021			31 December 2020
	Book	Provision for	Net carrying	Book	Provision for	Net carrying
Item	balance	impairment	amount	balance	impairment	amount
TFM production process optimization study	1,347,604,618.08		– 1,347,604,618.08 1,188,403,052.08			– 1,188,403,052.08
TFM Kwatebala KT2 tailings pond project Phase I	386,622,341.95	–	386,622,341.95	338,096,789.07	–	338,096,789.07
TFM Mining zone power supply project	80,137,785.07	–	80,137,785.07	80,941,631.52	–	80,941,631.52
TFM dehydration equipment installation project	29,508,356.04	–	29,508,356.04	15,303,242.39	–	15,303,242.39
TF M mining zone transportation road construction
projects	15,665,370.85	–	15,665,370.85	15,139,971.27	–	15,139,971.27
No rthparkes E26 underground mine development
project	647,341,299.63	–	647,341,299.63	478,637,364.32	–	478,637,364.32
Northparkes E48 mine northern extension project	5,247,831.20	–	5,247,831.20	1,287,461.03	–	1,287,461.03
Co pebras phosphorus production plant maintenance
project	275,525,627.34	–	275,525,627.34	202,030,111.36	–	202,030,111.36
Copebras phosphorus production process		–			–
improvement project	25,867,469.49	–	25,867,469.49	16,411,690.64	–	16,411,690.64
Niobras niobium production plant maintenance project	125,716,340.12	–	125,716,340.12	92,223,756.59	–	92,223,756.59
Niobras tailing dam heightening project	3,127,311.03	–	3,127,311.03	15,643,492.97	–	15,643,492.97
Quicklime Plant	10,836,179.40	–	10,836,179.40	169,706,956.94	–	169,706,956.94
Building acquisition and decoration project	242,521,266.64	–	242,521,266.64	208,073,405.62	–	208,073,405.62
18 Construction project replacing Luchanggou Tailing	242,629,367.89	–	242,629,367.89	171,953,532.68	–	171,953,532.68
Eo lybdenum mine project in East Gobi of Hami of
Xinjiang	92,027,473.24	31,615,388.19	60,412,085.05	92,027,473.24	31,615,388.19	60,412,085.05
Project replacing Xuanshan Tailing	34,853,862.03	–	34,853,862.03	34,355,496.18	–	34,355,496.18
TF M projects for tapped potential and increased
efficiency	118,074,812.97	–	118,074,812.97	–	–	–
Preliminary cost of TFM mixed ore development	2,007,368.35	–	2,007,368.35	–	–	–
Others	987,524,006.10	–	987,524,006.10	870,361,348.66	–	870,361,348.66
Total	4,672,838,687.42		31,615,388.19 4,641,223,299.23 3,990,596,776.56			31,615,388.19 3,958,981,388.37

(2) Changes in significant construction in progress:

Name of project	Budget	Opening balance	Increase in the current period	Transfer to fixed assets	Transfer to intangible assets	Other decrease in the current period	Translation difference of financial statements denominated in foreign currencies	30 June 2021	Proportion of project investment to budget amount (%)	Source of fund
TFM production
process										Funds in
optimization study 1,985,834,740.00 1,188,403,052.08 TFM Kwatebala KT2			171,861,471.50	–	–	–		-12,659,905.50 1,347,604,618.08	71	hand
tailings pond										Funds in
project Phase I TFM mining zone	763,583,820.00	338,096,789.07	52,143,470.60	–	–	–	-3,617,917.72	386,622,341.95	51	hand
power supply										Funds in
project	92,095,185.60	80,941,631.52	–	–	–	–	-803,846.45	80,137,785.07	87	hand
TFM dehydration equipment										Funds in
installation project	83,335,290.00	15,303,242.39	14,429,147.36	–	–	–	-224,033.71	29,508,356.04	35	hand
TFM mining zone
transportation
road construction projects	58,722,309.00	15,139,971.27	1,352,927.08	673,780.42	–	–	-153,747.08	15,665,370.85	39	Funds in hand
Northparkes E26
underground mine
development										Funds in
project Northparkes E48 mine	1,277,319,812.83	478,637,364.32	170,965,573.27	–	–	–	-2,261,637.96	647,341,299.63	46	hand
northern extension										Funds in
project	168,919,428.82	1,287,461.03	4,813,752.51	1,154,564.34	–	–	301,182.00	5,247,831.20	80	hand
Copebras phosphorus
production plant maintenance										Funds in
project	795,762,338.07	202,030,111.36	96,089,693.46	20,160,783.36	–	48,322.90	-2,385,071.22	275,525,627.34	66	hand
Copebras phosphorus
production process
improvement project	105,551,277.70	16,411,690.64	10,876,491.29	1,209,482.89	–	–	-211,229.55	25,867,469.49	69	Funds in hand
Niobras niobium
production plant
maintenance										Funds in
project	440,948,567.44	92,223,756.59	55,631,084.09	21,050,036.87	–	–	-1,088,463.69	125,716,340.12	68	hand
Niobras tailing dam heightening project 144,949,760.25		15,643,492.97	15,456,553.15	27,879,371.14	–	–	-93,363.95	3,127,311.03	83	Funds in hand

Name of project	Budget	Opening balance	Increase in the current period	Transfer to fixed assets	Transfer to intangible assets	Other decrease in the current period	Translation difference of financial statements denominated in foreign currencies	30 June 2021	Proportion of project investment to budget amount (%)	Source of fund
Quicklime Plant Building acquisition	258,404,000.00	169,706,956.94	28,259,380.42	186,233,162.18	–	–	-896,995.78	10,836,179.40	76	Funds in hand
and decoration project Construction project replacing	343,246,800.00	208,073,405.62	34,447,861.02	–	–	–	–	242,521,266.64	81	Funds in hand
Luchanggou Tailing Eolybdenum mine project in East	70,675,835.21	171,953,532.68	70,675,835.21	–	–	–	–	242,629,367.89	35	Funds in hand
Gobi of Hami of Xinjiang Project replacing	2,849,000,000.00	60,412,085.05	–	–	–	–	–	60,412,085.05	3	Funds in hand Funds in
Xuanshan Tailing TFM projects for tapped potential	348,730,000.00	34,355,496.18	498,365.85	–	–	–	–	34,853,862.03	3	hand
and increased efficiency Preliminary cost of	431,482,999.20	–	118,667,005.65	–	–	–	-592,192.68	118,074,812.97	27	Funds in hand
FM mixed ore development Others	67,508,045.00	–	2,017,435.82	–	–	–	-10,067.47	2,007,368.35	3	Funds in hand Funds in
	–	870,361,348.66	227,724,845.84	89,129,819.30	73,079.39	11,502,836.74	-9,856,452.97	987,524,006.10	–	hand
Total		10,286,070,209.12 3,958,981,388.37 1,075,910,894.12		347,491,000.50	73,079.39	11,551,159.64	-34,553,743.73 4,641,223,299.23			– –

At 30 June 2021, the Group made provision for impairment of RMB31,615,388.19 (31 December 2020: RMB31,615,388.19) for construction in progress.

16. Right-of-use assets

		Machinery	Transportation
Item	Buildings	equipment	devices	Total
I. Total original carrying amount
1. Opening balance at 1 January 2021	231,122,689.70	476,526,571.41	2,123,137.15	709,772,398.26
2. Increase in the current period	120,593,862.82	1,407.64	–	120,595,270.46
(1) Leasehold	120,593,862.82	1,407.64	–	120,595,270.46
3. Decrease in the current period	8,446,722.44	5,363,390.13	21,084.96	13,831,197.53
(1) Other decreases	6,560,815.77	598,535.00	–	7,159,350.77
(2) Tr anslation differences
of financial statements
denominated in foreign
currencies	1,885,906.67	4,764,855.13	21,084.96	6,671,846.76
4. Closing balance at 30 June 2021	343,269,830.08	471,164,588.92	2,102,052.19	816,536,471.19
II. Accumulated depreciation
1. Opening balance at 1 January 2021	48,131,551.66	172,793,148.61	1,061,568.88	221,986,269.15
2. Increase in the current period	34,944,517.52	94,599,259.45	264,074.39	129,807,851.36
(1) Provision	34,944,517.52	94,599,259.45	264,074.39	129,807,851.36
3. Decrease in the current period	4,776,607.63	2,630,968.99	11,860.47	7,419,437.09
(1) Other decreases	4,355,193.48	409,525.34	–	4,764,718.82
(2) Tr anslation differences
of financial statements
denominated in foreign
currencies	421,414.15	2,221,443.65	11,860.47	2,654,718.27
4. Closing balance at 30 June 2021	78,299,461.55	264,761,439.07	1,313,782.80	344,374,683.42
III. Provision for impairment
1. Opening balance at 1 January 2021	–	–	–	–
2. Increase in the current period	–	–	–	–
(1) Provision	–	–	–	–
3. Decrease in the current period	–	–	–	–
(1) Disposal	–	–	–	–
4. Closing balance at 30 June 2021	–	–	–	–
IV. Carrying amount
1. Closing carrying amount	264,970,368.53	206,403,149.85	788,269.39	472,161,787.77
2. Opening carrying amount	182,991,138.04	303,733,422.80	1,061,568.27	487,786,129.11

17. Intangible assets

(1) Details of intangible assets

Unit: Yuan Currency: RMB

		Mining	Rights to a copper off take contract	Supplier relationship
Item	Land use rights	rights	(Note)	(Note)	Others	Total
I. Total original carrying amount 1. Opening balance at 1 January 2021	656,333,189.12	26,925,525,813.00	125,145,107.56	267,520,900.00	205,131,824.90	28,179,656,834.58
2. Increase in the current period	–	-198,578,537.11	-1,242,839.43	-2,656,800.00	11,518,623.17	-190,959,553.37
(1) Purchase	–	55,024,464.11	–	–	13,206,014.06	68,230,478.17
(2) Tr ansfer from construction in
progress	–	–	–	–	73,079.39	73,079.39
(3) Tr anslation difference of
financial statements
denominated in foreign currencies	–	-253,603,001.22	-1,242,839.43	-2,656,800.00	-1,760,470.28	-259,263,110.93
3. Decrease in the current period	57,179,008.55	–	–	–	2,193,314.46	59,372,323.01
(1) Disposal	–	–	–	–	2,193,314.46	2,193,314.46
(2) De crease due to exclusion from
the consolidation	57,179,008.55	–	–	–	–	57,179,008.55
4. Closing balance at 30 June 2021	599,154,180.57	26,726,947,275.89	123,902,268.13	264,864,100.00	214,457,133.61	27,929,324,958.20
II. Accumulated amortization
1. Opening balance at 1 January 2021	135,576,848.39	6,397,996,122.03	11,984,801.45	25,265,862.76	97,314,537.38	6,668,138,172.01
2. Increase in the current period	7,272,721.37	757,715,597.74	9,090,061.91	8,577,883.35	11,172,728.78	793,828,993.15
(1) Provision	7,272,721.37	821,402,514.35	9,255,272.48	8,873,083.35	11,927,810.73	858,731,402.28
(2) Tr anslation difference of
financial statements denominated in foreign
currencies	–	-63,686,916.61	-165,210.57	-295,200.00	-755,081.95	-64,902,409.13
3. Decrease in the current period	4,986,700.14	–	–	–	1,353,912.25	793,828,993.15
(1) Disposal	–	–	–	–	1,353,912.25	1,353,912.25
(2) De crease due to exclusion from
the consolidation	4,986,700.14	–				4,986,700.14
4. Closing balance at 30 June 2021	137,862,869.62	7,155,711,719.77	21,074,863.36	33,843,746.11	107,133,353.91	7,455,626,552.77
III. Provision for impairment
1. Opening balance at 1 January 2021	–	–	–	–	–	–
2. Increase in the current period	–	–	–	–	–	–
(1) Provision 3. Decrease in the current period	– –	– –	– –	– –	– –	– –
(1) Disposal	–	–	–	–	–	–
4. Closing balance at 30 June 2021	–	–	–	–	–	–
IV. Carrying amount 1. Closing carrying amount	461,291,310.95	19,571,235,556.12	102,827,404.77	231,020,353.89	107,323,779.70	20,473,698,405.43
2. Opening carrying amount	520,756,340.73	20,527,529,690.97	113,160,306.11	242,255,037.24	107,817,287.52	21,511,518,662.57

Note: Rights to a copper off-take contract and supplier relationship were acquired through acquisition of IXM.

The land use rights were acquired with the lease period of 50 years and were situated in the PRC.

18. Goodwill

(1) Original cost of goodwill

Unit: Yuan Currency: RMB

Unit: Yuan Currency: RMB

Name of investee or events generating goodwill	1 January 2021	Arising from Business combination	Increase Translation differences of financial statements denominated in foreign currencies	Decrease Disposal	30 June 2021
Brazil phosphorus business (Note)	616,806,146.52	–	-6,125,616.99	–	610,680,529.53
Total	616,806,146.52	–	-6,125,616.99	–	610,680,529.53

Note: It represents the difference of the consideration paid for acquiring the phosphorus business in Brazil and the fair value of identifiable net assets in respect of the business combination involving enterprises not under common control on 1 October 2016.

(2) Provision for impairment of goodwill

Name of investee or events generating goodwill	1 January 2021	Increase Provision	Decrease Disposal	Increase Translation differences of financial statements denominated in foreign currencies	30 June 2021
Brazil phosphorus business (Note)	220,540,890.45	–		– 2,190,232.76	218,350,657.69
Total	220,540,890.45	–		– 2,190,232.76	218,350,657.69

(3) Information about the asset group or the portfolio of asset groups to which goodwill belongs

Allocation of goodwill to asset groups

The Group uses business segments as its primary segment for reporting segment information. For the purpose of impairment testing, goodwill has been allocated to asset groups. The carrying amount of goodwill as at 30 June 2021 allocated to the asset groups is as follows:

Unit: Yuan Currency: RMB

	Cost	Translation differences of financial statements denominated in foreign currencies	Provision for impairment	30 June 2021
Asset group – Brazil phosphorus business	850,671,685.12	-239,991,155.60	218,350,657.69	392,329,871.83

(4) Specify test procedure, parameters (e.g. growth rate in the forecast period, growth rate in the stable period, profit rate, discount rate, forecast period, where applicable, for estimating the present value of the future cash flows) of impairment of goodwill as well as recognition method for impairment loss

The recoverable amount of the asset group of Brazil phosphorus business is determined according to the present value of the expected future cash flows. Future cash flows are determined based on the financial budget of the next five years approved by the management and based on the production life of available reserves and future mining plans, and discount rate of 10.32% is used. As the sale of the products in phosphorus business is priced in USD and settled in BRL, the management believes that the inflation risk faced with by the relevant business in the operation process mainly comes from the inflation risk in the environment denominated in USD. Therefore, the inflation rate used to infer the cash flow from the asset group after 5 years is 2.2% (based on the USD environment). According to the characteristics of upstream mineral prices and costs, the management believes that the forecast method is reasonable.

The key assumptions for calculating the present value of future cash flows for the above asset group as at 30 June 2021 are as follows:

Key assumptions	Consideration of the management
Budget gross margin	On the basis of realized the average gross margin in the year before the budget year, appropriately modify the average gross margin according to the changes in the expected efficiency and the fluctuation of metal market price.
Discount rate	Th e discount rate used is the pre-tax discount rate that reflects the specific risk of the related asset group.
Inflation of raw material price	Co nsider the expected price index for the operating environment in the budget year.

The data of key assumptions of the sales price, discount rate, raw material price inflation used in the above asset group are consistent with the external information.

According to the above impairment test, the management believes that the relevant goodwill has not been impaired in the current period.

19. Long-term prepaid expenses

Unit: Yuan Currency: RMB

Item	1 January 2021	Addition for the current period	Amortization for the current period	30 June 2021
Relocation compensation (Note 1) Geological Museum project (Note 2) Mining compensation (Note 3)	30,967,079.98 25,200,000.00 4,222,240.00	– – –	3,214,763.76 300,000.00 3,166,662.00	27,752,316.22 24,900,000.00 1,055,578.00
Others	67,144,293.47	2,007,956.17	10,484,630.80	58,667,618.84
Total	127,533,613.45	2,007,956.17	17,166,056.56	112,375,513.06

Note 1: The Company paid relocation compensation to the villagers around the areas of tailing dams.

Note 2: According to the Geological Museum use right agreement signed by Luanchuan Finance Bureau and the Company on 18 December 2012, the Company would be allocated with 2,000 square meters showroom area in the Geological Museum for promoting the Company's products for 50 years from 1 January 2013.

Note 3: Mining compensation is in relation to the mining compensation paid by the Company in previous years, which is amortized over the benefit period.

20. Deferred tax assets/Deferred tax liabilities

(1) Deferred tax assets before offsetting

Unit: Yuan Currency: RMB

	30 June 2021		31 December 2020
	Deductible	Deferred	Deductible	Deferred
Item	temporary difference	tax assets	temporary difference	tax assets
Provision for asset impairment	474,885,499.75	138,602,640.44	456,331,374.60	135,157,063.48
Unrealized gross profit	1,058,280,349.89	198,576,559.43	1,521,349,964.26	205,073,716.92
Deductible losses (Note 1)	3,451,925,621.15	740,992,362.92	1,864,343,453.89	621,163,702.49
Differences in inventory costs	155,149,075.63	46,544,722.69	142,350,200.28	42,705,060.08
Deferred income from government
grant	58,487,618.24	12,800,942.82	59,357,483.62	12,999,129.88
Profit or loss from changes in fair
value	810,030,343.38	125,680,777.19	831,268,589.14	123,265,161.38
Outstanding expenses – net	1,946,270,180.03	529,248,233.52	2,225,314,661.71	602,419,461.42
Losses on disposal of fixed assets
without filing	21,611,375.27	3,241,706.29	21,611,375.27	3,241,706.29
Differences in depreciation of fixed
assets	34,787,055.15	6,150,153.69	21,379,062.99	3,974,367.81
Others	96,828,169.93	17,534,300.26	68,611,187.32	13,994,909.46
Total	8,108,255,288.42	1,819,372,399.25	7,211,917,353.08	1,763,994,279.21

Note 1: Deductible losses represent the amount of loss that the Group can finally deduct before income tax in 2021, subject to the amount verified by the local tax authorities. Deductible losses arising from the tax statements of the subsidiaries of the Brazilian business in the current year are set out in Note 2 of this note.

(2) Deferred tax liabilities before offsetting

Unit: Yuan Currency: RMB

	30 June 2021		31 December 2020
Item	Taxable temporary differences	Deferred tax liabilities	Taxable temporary differences	Deferred tax liabilities
Appreciation of assets in business combination not involving enterprises under common
control (Note 4)	11,232,820,873.73	3,345,566,735.53	11,907,443,335.50	3,553,979,914.11
Differences in depreciation of fixed assets	8,927,613,314.21	2,676,808,095.84	9,147,217,974.82	2,743,716,224.60
Profit or loss from changes in fair
value Additional provision under	1,224,003,937.17	194,809,344.88	1,216,128,169.38	191,645,732.15
Switzerland tax Laws (Note 3)	1,656,477,169.13	292,855,751.39	1,583,203,704.35	295,793,330.20
Accrued interest income	583,448,481.55	106,426,739.16	555,785,718.30	95,107,336.60
Effects of non-monetary items on exchange rates (Note 2) Others	1,486,539,416.10 104,716,327.39	504,157,780.50 31,301,711.56	1,826,863,688.33 122,622,477.51	621,133,654.03 34,757,628.89
Total	25,215,619,519.28	7,151,926,158.86	26,359,265,068.19	7,536,133,820.58

Note 2: Certain enterprises of the Group's business in Brazil adopt USD as functional currency, while make tax declaration and annual filing in BRL for the operating activities in Brazil in accordance with local tax regulations in Brazil. Management recognizes tax losses in the related financial statements denominated in BRL as a deferred tax assets and makes it an adjusting item for tax. In the meanwhile, the non-monetary items including inventories and fixed assets of such enterprises on the balance sheet are recognized and subsequently measured at historical exchange rate, resulting temporary difference between their tax bases and carrying amounts upon tax accounting, the Company accordingly recognize the relevant temporary difference as one deferred tax asset/liability.

Note 3: It represents the taxable temporary differences arising from additional provision made to certain extent based on the carrying amount of inventories under Switzerland tax laws.

Note 4: The appreciation in valuation of assets arising from business combinations not involving enterprises under common control mainly represents the deferred tax liabilities arising from adjustments to the fair value of assets for the acquisition of Congo (DRC) business in 2016, the acquisition of Brazilian business in 2016 and the acquisition of Switzerland metal business platform in 2019.

(3) Deferred tax assets or liabilities at net after offsetting

Unit: Yuan Currency: RMB

Item	Closing set-off	Closing balance of	Opening set-off	Opening balance
	amount of deferred	deferred tax assets	amount of deferred	of deferred tax
	tax assets and	and deferred tax	tax assets and	assets and deferred
	deferred tax	liabilities after	deferred tax	tax liabilities after
	liabilities	offsetting	liabilities	offsetting
Deferred tax assets	1,048,601,389.75	770,771,009.50	1,266,827,937.28	497,166,341.93
Deferred tax liabilities	1,048,601,389.75	6,103,324,769.11	1,266,827,937.28	6,269,305,883.30

(4) Details of unrecognized deferred tax assets

Unit: Yuan Currency: RMB

Item	30 June 2021	1 January 2021
Deductible temporary differences Deductible losses	82,666,595.93 334,294,836.70	80,421,844.09 339,890,472.56
Total	416,961,432.63	420,312,316.65

Note: Due to the uncertainty in availability of sufficient taxable income in the future, deferred tax assets are not recognized.

(5) Deductible losses, for which deferred tax assets are not recognized, will expire in the following years:

30 June 2021	1 January 2021
119,679,914.44	119,906,853.89
71,091,190.19	73,138,819.21
31,980,154.08	33,176,370.62
45,795,629.22	47,157,053.83
65,747,948.77	66,511,375.01
334,294,836.70	339,890,472.56

21. Other non-current assets

Unit: Yuan Currency: RMB

		30 June 2021 Provision for			31 December 2020 Provision for
Item	Book balance	impairment	Book value	Book balance	impairment	Book value
Loans receivable from Société
Nationale d'Electricité (Note 1)	1,041,160,320.10	–	1,041,160,320.10	1,071,702,771.62	–	1,071,702,771.62
Amount due from TFM minority
shareholders (Note 2)	233,205,291.23	–	233,205,291.23	374,279,502.29	–	374,279,502.29
Brazil deductible social contribution
tax (Note 3)	101,235,074.10	–	101,235,074.10	67,640,511.63	–	67,640,511.63
Prepayments for water charges
(Note 4)	63,000,000.00	–	63,000,000.00	63,000,000.00	–	63,000,000.00
Prepayments for farmland
occupation tax (Note 5)	8,028,346.01	–	8,028,346.01	8,028,346.01	–	8,028,346.01
Prepayments for land (Note 6)	8,659,900.00	–	8,659,900.00	8,659,900.00	–	8,659,900.00
Compensatory assets (Note 7) Litigation guarantee (Note 8)	113,719,296.75	–	113,719,296.75	88,650,982.27	–	88,650,982.27
Loans to suppliers (Note 9)	27,939,970.23 79,330,040.92	– –	27,939,970.23 79,330,040.92	26,473,111.70	– –	26,473,111.70
Related party borrowings (Note 10)	1,081,224,565.24	–	1,081,224,565.24	101,825,725.17 414,831,595.86	–	101,825,725.17 414,831,595.86
Purchases of tailings pond
(Note 11)	514,061,111.10	–	514,061,111.10	514,061,111.10	–	514,061,111.10
Term deposits of over one year	170,000,000.00	–	170,000,000.00	170,000,000.00	–	170,000,000.00
Others	4,645,308.69	–	4,645,308.69	26,291,009.69	–	26,291,009.69
Total	3,446,209,224.37	–	3,446,209,224.37	2,935,444,567.34	–	2,935,444,567.34

The Group recognizes ECL provision of relevant financial assets in the other non-current assets on the basis of ECL. At 30 June 2021, the management of the Group believes that the credit risk of the relevant financial assets excluding loans to suppliers has not increased significantly since its initial recognition, and has no significant ECL. Credit risk on loans to suppliers is set out in Note 9.

• Note 1: The loan of the subsidiary of Congo (DRC) due from SNEL. The applicable interest rate for the loan is determined by 6-months Libor interest rate plus 3%, which will be settled by electricity charges payable in the future.
• Note 2: The principal and interest of loans of the subsidiary of Congo (DRC) due from La Générale des Carrières etdes Mines ("Gécamines"). The applicable interest rate for the loan is determined based on the 1-year Libor interest rate plus 6%, which will be charged against dividends of Gécamines in the future.
• Note 3: Brazil social contribution tax applicable to CMOC Brazil, of which the tax base is the balance of income from the sales of goods and rendering of services in Brazil after deducting deductible cost. As it is not required to pay the social contribution tax and goods circulation tax for export goods, tax payment remains undeducted at the end of the year. The social contribution tax is levied by the Brazil's federal government, so the tax credit can be used to deduct the enterprise income tax levied by the federal government without expiry date. The portion of deductible balance within one year is accounted for as other receivables by the Group. See Note V. 7 for details.
• Note 4: Refer to prepayments for water charges of Xinjiang Luomu Mining Co., Ltd (Xinjiang Luomu).
• Note 5: The land occupation tax related to the land to be used in the future of the tailings owned by the mine.
• Note 6: The Group paid the land compensation and transfer payments in advance, and shall continue to handle the land transfer procedures after the relevant subsidiaries have resumed their production.
• Note 7: Based on the agreement between the Group and Anglo American in the course of the acquisition of the Brazilian Niobium Phosphorus business, if CMOC's Brazilian subsidiaries have incurred cash outflows in the course of the business due to tax-related contingencies, compensation will be provided by Anglo American. The Group recognized a liability for CMOC's Brazilian subsidiaries related contingencies at fair value (Note V. 37), accordingly recognizes the right of relevant tax related compensation as non-current assets.
• Note 8: CMOC Brazil have some disputes and litigation arising from some of the tax, labor and civil related legal proceedings in the course of business. Some of these proceedings require the submission of litigation collateral at the request of the court. The deposit is restricted for use and the interest is calculated at the Brazilian benchmark interest rate during this period. After the end of the litigation, according to the results, the Company can call back the deposit or settle the litigation by the deposit.
• Note 9: It represents loans that IXM provided to its suppliers. As at 30 June 2021, balance of loans to suppliers amounted to USD16,800,000, equivalent to RMB108,529,680.00, which is the loan provided to third party suppliers A and B by the Group, with interest rate of 6.24% per annum, including the portion due within 1 year amounting to USD4,520,000 (equivalent to RMB29,199,652.00) recognized in other current assets.
• Note 10: It represents the shareholder loan provided by the Group to Huayue Nickel Cobalt.
• Note 11: It represents the relevant amount prepaid by the Group for acquisition of the tailings pond.

`

22. Short-term borrowings

(1) Categories of short-term borrowings

Item 30 June 2021 31 December 2020 Secured loans with securities under the custody of lenders 16,945,415,937.33 15,370,544,411.90 Credit loan 8,512,444,852.83 5,093,936,685.59 Total 25,457,860,790.16 20,464,481,097.49

Note: Details of secured loans with securities under the custody of lenders are set out in Note V.2 and 8.

(2) At the end of the period, there were no outstanding short-term borrowings of the Group that were overdue.

23. Held-for-trading financing liabilities

Unit: Yuan Currency: RMB Item 1 January 2021 Increase Decrease Translation differences of financial statements foreign currencies 30 June 2021 Held-for-trading financing liabilities Including: 1. Li abilities from forward commodity contracts and gold lease measured at fair value (Note 1) 449,732,550.75 1,779,840,040.61 550,101,400.00 - 1,679,471,191.36 Financial liabilities designated as at FVTPL Including: 1. Ac counts payable at FVTPL (Note 2) 3,842,218,158.46 - 535,135,175.48 -35,487,261.47 3,271,595,721.51 Total 4,291,950,709.21 1,779,840,040.61 1,085,236,575.48 -35,487,261.47 4,951,066,912.87

Note 1: The Group concluded gold lease agreement with the bank. During the lease term, the Group may sell the leased gold to a third party, and then return the gold in the same specification and with the same weight to the bank until the lease is matured. The obligation of the Group to return the gold is recognized as a financial liability at fair value. Meanwhile, in order to hedge the risk in commodity price of related liabilities, the Group uses gold forward contract to manage the risk in the obligations to return the gold with the same quantity and quality to the bank under the gold lease agreement so as to evade the risk undertaken by the Group in the fluctuation of fair value of held-fortrading financial liabilities with the fluctuation of gold market price.

Note 2: The major products of the Group are copper, lead and zinc concentrates and cobaltous hydroxide etc., purchase price of which is provisionally determined according to the market price upon delivery. Generally, the price is finally determined according to the monthly average spot price quoted by the London Metals Exchange (LME) or other agreed pricing methods within a specified period or a period subsequent to the delivery. The Group classifies the accounts receivable generated from relevant business as financial assets at FVTPL.

24. Derivative financial liabilities

Unit: Yuan Currency: RMB

Item	30 June 2021	31 December 2020
Derivative financial instruments not designated as hedge instruments (Note)
Commodity futures contracts	1,636,585,375.51	2,517,217,226.28
Forward foreign exchange and exchange rate option
contracts	68,696,723.60	110,232,117.41
Commodity option contracts	45,094,287.15	127,672,025.42
Forward commodity contracts	894,191,668.21	875,579,866.00
Derivative financial instruments designated as hedge instruments
Forward foreign exchange and exchange rate option
contracts (Note)	18,685,133.74	50,528,509.05
Commodity futures contracts (Note)	1,299,215,758.19	1,340,549,828.77
Total	3,962,468,946.40	5,021,779,572.93

Note: For details, please refer to Note V. 3.

25. Notes payable

	Unit: Yuan	Currency: RMB
Categories	30 June 2021	31 December 2020
Commercial acceptances Bank acceptances	669,559,030.31 12,292,677.53	614,768,644.58 13,168,922.44
Total	681,851,707.84	627,937,567.02

Note: Details of bank acceptances are set out in Note V. 5(3).

26. Accounts payable

(1) Accounts payable

Unit: Yuan Currency: RMB

Item	30 June 2021	31 December 2020
Payables for purchasing of goods Others	817,351,140.39 455,310,655.58	470,194,264.33 406,720,600.97
Total	1,272,661,795.97	876,914,865.30

Aging analysis on Accounts payable is set out as follows:

Unit: Yuan Currency: RMB

Item	30 June 2021	31 December 2020
Within 1 year 1 – 2 years Over 2 years	1,247,437,984.72 12,296,088.98 12,927,722.27	848,671,903.21 13,698,902.29 14,544,059.80
Total	1,272,661,795.97	876,914,865.30

27. Contract liabilities

(1) Contract liabilities

Item	30 June 2021	31 December 2020
Receipts in advance of sales of goods (Note 1) Receipts in advance for gold streaming	427,332,081.46	275,206,453.60
transactions (Note 2)	97,446,440.96	96,777,888.57
Total	524,778,522.42	371,984,342.17

Note 1: The Group recognized the receipts in advance collected on a basis of commodity sales contract as contract liabilities, and relevant contract liabilities were recognized as sales income when the control over the goods were transferred to the customers.

In the book value of receipts in advance of sales of goods at the end of the year, RMB420,658,096.28 is expected to be recognized as revenue in 2021 and RMB6,673,985.18 is expected to be recognized as revenue in 2022 or subsequent years.

Note 2: On 10 July 2020, the Group and Triple Flag Mining Finance Bermuda Ltd., a wholly-owned subsidiary of Triple Flag Precious Metals Corp., (collectively referred to as "Triple Flag") entered into a metal purchase and sales agreement ("Gold Streaming Agreement"). In accordance with the contract, Triple Flag made cash prepayments of USD550 million to the Group. For each ounce of gold and silver delivered according to the Gold Streaming Agreement, Triple Flag will make additional payments based on 10% of the price of spot goods of gold and silver when they are actually delivered.

In accordance with the Gold Streaming Agreement, the volume of deliveries promised by the Group to Triple Flag is as follows: (1) the Group deliveries 54% of the gold output of Northparkes' copper and gold mine and shall deliver 27% of the goods after the cumulative delivery volume reaches 630,000 ounces; (2) the Group deliveries 80% of the silver output of Northparkes' copper and gold mine and shall deliver 40% of the goods after the cumulative delivery volume reaches 9,000,000 ounces. There is no stipulation as to the minimum delivery volume for these gold streaming transactions.

Prepayments are firstly recognized as liabilities when received by the Group and will be transferred to revenue when the control over goods is transferred to the customers after relevant performance obligations are satisfied. The amount of contract liabilities is estimated by the Group based on the volume expected to be delivered in the next 12 months, and the remaining amount is classified as other non-current liabilities (Note V. 39)

These contracts of metal flow transactions contain significant financing components. Thus, when signing a metal flow contract, the Group determines the transaction price based on the assumption that the amount payable is paid in cash by the customers when obtaining control over the goods. The difference between the transaction price and the contract consideration will be amortized over the contract term, using the effective interest method.

Meanwhile, there is variable consideration in the contracts of metal flow transactions. When the mineral reserves or the expected delivery time and quantity of goods change, the Group will adjust revenue during the reporting period in which the changes occur.

28. Employee benefits payable

(1) Employee benefits payable

Unit: RMB

Item		31 December 2020	Increase in the current period	Decrease in the current period	Translation difference of financial statements denominated in foreign currencies	30 June 2021
I. II.	Short-term compensation Re tirement benefits-defined	715,337,202.55	1,340,405,075.15	1,481,317,530.00	6,209,528.17	574,424,747.70
	contribution plans	276,447.71	102,785,176.08	102,151,827.35	-20.57	909,796.44
III.	Others (Note)	53,736,914.25	9,532,713.01	10,129,233.10	1,799,963.11	53,140,394.16
Total		769,350,564.51	1,452,722,964.24	1,593,598,590.45	8,009,470.71	628,474,938.30

Note: It represents the liabilities related to annual leave and long service leave which are provided by Group's subsidiary in Australia to its employees and short-term compensation plan which is provided by Group's subsidiary in Congo (DRC) to its employees, expected to be paid within 12 months.

(2) Details of short-term compensation are as follows:

Unit: RMB

Item		31 December 2020	Increase in the current period	Decrease in the current period	Translation difference of financial statements denominated in foreign currencies	30 June 2021
	I. Wages or salaries, bonuses, allowances and subsidies	668,840,602.17	1,201,316,276.80	1,360,289,234.35	7,657,324.33	509,867,644.62
	II. Staff welfare	132,278.97	15,212,284.15	15,190,115.42	1,257.91	154,447.70
	III. Social security contributions	35,322,799.11	72,527,632.60	53,706,660.28	-1,449,058.92	54,143,771.43
	Including: Medical insurance	27,084,834.40	69,492,708.26	49,747,813.22	360,545.02	46,829,729.44
	Work injury insurance	8,237,964.71	3,034,924.34	3,958,847.06	-1,809,603.94	7,314,041.99
	IV. Housing funds	328,531.77	42,938,082.06	43,141,686.95	–	124,926.88
	V. Labor union and staff education fund	10,712,990.53	8,410,799.54	8,989,833.00	4.85	10,133,957.07
Total		715,337,202.55	1,340,405,075.15	1,481,317,530.00	6,209,528.17	574,424,747.70

All the employee benefits payable are not overdue and not related to non-cash benefits.

(3) Defined contribution plans

Unit: RMB

Unit: RMB

Item	31 December 2020	Increase in the current period	Decrease in the current period	Translation difference of financial statements denominated in foreign currencies	30 June 2021
1. Ba sic pension insurance	276,447.71	99,948,944.16	99,343,944.52	-20.57	881,447.35
2. Un employment insurance	–	2,836,231.92	2,807,882.83	–	28,349.09
Total	276,447.71	102,785,176.08	102,151,827.35	-20.57	909,796.44

The Group participates, as required, in the pension insurance and unemployment insurance plan established by government institutions. According to such plans, the Group contributes monthly to such plans based the employee's basic salary. Except for above monthly contributions, the Group does not assume further payment obligations. The related expenditures are either included in cost of related assets or charged to profit or loss in the period when they are incurred.

In this period, the Group should contribute pension insurance and unemployment plans amounting to RMB99,948,944.16 and RMB2,836,231.92 (January to June 2020: RMB52,777,585.88 and RMB1,967,982.76). As at 30 June 2021, the Group has outstanding contributions to pension insurance and unemployment plans that is due as of the reporting period amounting to RMB881,447.35 and RMB28,349.09 (31 December 2020: RMB276,447.71 and RMB0.00). The relevant contributions have been paid after the reporting period.

29. Taxes payable

Item	30 June 2021	31 December 2020
Value added tax	78,295,126.24	48,001,752.63
Individual income tax	27,103,414.67	27,950,882.97
Urban maintenance and construction tax	59,973.52	96,277.72
PRC enterprise income tax	66,789,820.78	55,843,153.14
Australia enterprise income tax	–	22,433,502.20
Brasil enterprise income tax	87,872,141.61	158,835,945.80
Congo (DRC) enterprise income tax	1,082,596,754.69	410,754,889.18
UK enterprise income tax	1,321,143.88	1,010,921.35
Enterprise income tax for IXM and its subsidiaries	267,478,183.27	74,493,912.23
Resource tax and royalties of mineral rights	9,711,597.71	13,406,206.29
Education surcharges	70,320.21	121,242.46
Congo (DRC) exchange tax	2,278,058.20	1,487,728.62
Others	41,053,398.49	30,781,545.78
Total	1,664,629,933.27	845,217,960.37

30. Other payables

Unit: RMB

Unit: RMB

Item	30 June 2021	31 December 2020
Interest payable	149,284,088.38	222,893,031.58
Dividends payable Other payables	727,234,004.84 2,784,833,273.83	27,885,796.67 1,348,461,688.93
Total	3,661,351,367.05	1,599,240,517.18

Interest payable

Item	30 June 2021	31 December 2020
Interest payable on bank borrowings	83,024,498.94	68,800,612.08
Interest payable on medium-term notes with periodic
payments of interest payable and return of principal
at maturity (Note (V), 34)	3,912,328.76	91,217,534.25
Interest payable on corporate bonds in USD	36,876,404.15	37,246,304.21
Interest payable on super short-term commercial paper
(Note)	–	21,495,890.41
Interest payable on corporate bonds in RMB
(Note (V), 34)	25,210,958.88	3,986,849.30
Interest payable for related parties outside the Group
(Note (X), 6)	259,897.65	145,841.33
Total	149,284,088.38	222,893,031.58

Note: Interest payable on bonds in USD arises from the issuance of bonds in USD by CMOC Capital Limited ("CMOC Capital"), a subsidiary of the Group. For the details, refer to Note V, 34.

Dividends payable

Unit: RMB

Total	727,234,004.84	27,885,796.67
Luanchuan Taifeng Industry and Trading Co., Ltd. (Note) Luanchuan Hongji Mining Co., Ltd. (Note) Luanchuan Chengzhi Mining Co., Ltd. (Note) Common shareholders	6,623,109.24 15,943,017.89 5,319,669.54 699,348,208.17	6,623,109.24 15,943,017.89 5,319,669.54 –
Item	30 June 2021	31 December 2020

Note: Minority shareholders of subsidiaries of the Group.

Other payables

(1) Other payables by nature

Item	30 June 2021	31 December 2020
Project and equipment funds	585,927,291.93	834,503,595.25
Loyalties due to Gécamines	83,951,322.75	68,191,336.71
Service and transportation expenses	143,086,913.35	108,038,813.05
Deposits and advances	720,274,619.68	170,439,336.75
Service fees payable	39,199,986.54	47,593,322.52
Resource expenses payable	15,311,920.95	15,702,995.42
Land compensation	10,000.00	40,000.00
Obligation of repurchasing restricted stock	192,239,528.01	–
Earnest payment for equity transfer (Note)	907,533,000.00	–
Others	97,298,690.62	103,952,289.23
Total	2,784,833,273.83	1,348,461,688.93

Note: The intention payment for equity transfer of copper and cobalt of Kisanfu.

31. Non-current liabilities due within one year

Unit: RMB

Item	30 June 2021	31 December 2020
Long-term borrowings due within one year Bonds payable due within one year Lease liabilities due within one year	3,789,830,472.47 – 237,772,750.68	3,091,054,941.91 2,000,000,000.00 238,591,144.47
Total	4,027,603,223.15	5,329,646,086.38

Note: Please refer to Note V, 33, Note V, 34 and Note V, 35 for details.

32. Other current liabilities

		Unit: RMB
Item	30 June 2021	31 December 2020
Other accrued expenses Super short-term commercial paper	207,541,466.32 –	159,431,822.36 2,000,000,000.00
Total	207,541,466.32	2,159,431,822.36

Changes in short-term bonds payable:

Unit: RMB

Name	Par value	Issue date	Term	Issue amount	1 January 2021	Issue amount for the period	Accrued interest at par value	Amortization of premium and depreciation	Repayment in the period	30 June 2020
20 Luanchuan Molybdenum SCP003 (Note 1)
20 Luanchuan Molybdenum SCP004 (Note 2)	100 100	2020/8/14 2020/9/9	180 days 180 days	1,000,000,000.00 1,000,000,000.00	1,000,000,000.00 1,000,000,000.00	– –	3,375,342.47 5,605,479.45	– –	1,000,000,000.00 1,000,000,000.00	– –
Total	–	–	–	2,000,000,000.00	2,000,000,000.00	–	8,980,821.92	–	2,000,000,000.00	–

Note 1: The Company issued super short-term commercial paper (20 Luanchuan Molybdenum SCP003) with par value of RMB1,000,000,000.00 at a fixed rate of 3.08% per annum with a maturity of 180 days, on 14 August 2020. The commercial paper is fully repaid within the reporting period.

Note 2: The Company issued super short-term commercial paper (20 Luanchuan Molybdenum SCP004) with par value of RMB1,000,000,000.00 at a fixed rate of 3.10% per annum with a maturity of 180 days, on 9 September 2020. The commercial paper is fully repaid within the reporting period.

33. Long-term borrowings

(1) Categories of long-term borrowings

Unit: RMB

Item	30 June 2021	31 December 2020
Secured borrowings (Note 1)	11,616,781,463.02	11,483,428,347.71
Unsecured and non-guaranteed loans (Note 2) Less: Lo ng-term borrowings due within one year	8,489,227,944.84	6,967,999,414.37
(Note V, 31)	-3,789,830,472.47	-3,091,054,941.91
Total	16,316,178,935.39	15,360,372,820.17

Descriptions of categories of long-term borrowings:

Note 1: Borrowings obtained by the Group are through pledge of fixed deposits, equity of subsidiaries, held-fortrading financial assets, inventories, and etc. including:

In September 2016, CMOC LUXEMBOURG S.À.R.L (hereinafter referred to as "CMOC LUXEMBOURG") and CMOC BRASIL, the subsidiaries of the Group, obtained a total of USD900 million (equivalent to RMB6.2 billion) acquisition syndicated loan for the payment of the consideration of acquisition of the Brazil Niobium-Phosphorus business, which will be repaid by the agreed installments during the period from 14 September 2018 to 14 September 2023, with interest rates range from 3-month USD LIBOR+1.8% to 3-month USD LIBOR+2.75%; the Group pledged the 100% equity interest in CMOC LUXEMBOURG to the Bank of China Luxembourg branch and provide a joint guarantee.

In November 2016, CMOC DRC LIMITED (hereinafter referred to as "CMOC DRC"), a subsidiary of the Group, obtained a total of US \$1.59 billion (equivalent to RMB11 billion) acquisition syndicated loan for the payment of the consideration of acquisition of the Congo Copper-Cobalt business, which will be repaid by the agreed installments during the period from 15 March 2018 to 15 November 2023, with interest rates range from 3-month USD libor + 1.7% to 3-month USD libor + 2.2%; the Group pledged the 100% equity interest in CMOC DRC to the bank and provide a joint guarantee.

In December 2020, the Group's subsidiary China Molybdenum Refining Co., Ltd. (hereinafter referred to as "Ye Lian") acquired working capital loans amounting to RMB287 million and RMB300 million, which will fall due on 21 June 2022 and 24 June 2022 respectively, with the interest rate of 1-year loan prime rate ("LPR") -0.95% and 1-year LPR-0.55% issued by the National Interbank Funding Center; the Group pledged the RMB300 million and RMB400 million certificate of term deposits

Note 2: Details of unsecured and non-guaranteed loans are: On 6 April 2017, the Group's subsidiary BHR signed a syndicated credit loan agreement of a total loan commitment amounting to USD690 million for the acquisition of 30% equity in TFHL. The syndicated loan will be repaid in instalments between 6 July 2019 and 6 April 2024 according to the agreement, and interest rate ranges from 3-month USD LIBOR plus 2.50% to 3-month USD LIBOR plus 2.64%.

In February 2020, the Group's subsidiary CMOC Limited acquired syndicated loans amounting to USD357.5 million (equivalent to RMB2.3 billion) and RMB700 million, for the Company's daily operations and optimizing financing costs. Interest of both loans will be paid as agreed from 5 February 2020 to 5 February 2023 and 2 June 2020 to 2 June 2023, principal will be repaid in a lump sum when it falls due. The interest rate is 1-month LIBOR+ 1.7% and fixed interest rate of 3.4%.

In November 2020, the Company acquired a 3-year working capital loans amounting to RMB200 million for purchasing ferromolybdenum and molybdenum concentrates. The interest rate is 1-month LPR-0.05%.

According to the above loan agreements between the Group and the bank, the Group shall comply with a series of financial indicators and requirements as agreed, in case of breaching relevant clauses, the bank is entitled to require the Company to repay the loans in advance.

(2) Analysis of long-term borrowings due over one year:

Unit: RMB

Unit: RMB

Expiration date	30 June 2021	31 December 2020
1 to 2 years 2 to 5 years	6,776,034,607.56 9,540,144,327.83	3,075,331,509.56 12,285,041,310.61
Total	16,316,178,935.39	15,360,372,820.17

As 30 June 2021, the interest rate for the above loans was 1.0300% to 4.0000% per annum (31 December 2020: 1.0090% to 3.9000% per annum).

As at 30 June 2021, there is no outstanding long-term borrowing of the Group due but not paid.

34. Bonds payable

(1) Bonds payable

Item	30 June 2021	31 December 2020
Medium-term note	1,000,000,000.00	1,000,000,000.00
Corporate bonds in RMB	1,000,000,000.00	1,000,000,000.00
Corporate bonds in USD	1,615,025,000.00	1,631,225,000.00
Total	3,615,025,000.00	3,631,225,000.00

(2) Changes in bonds payable (Other financial instruments such as preferred shares and perpetual bonds classified as financial liabilities are excluded)

						Accrued	Interest	Closing	Converted difference in	Amortization of	Repayment
				31 December	Issued amount	interest at	paid during	interest	foreign currency	premium and	during	30 June
Name	Issue date	Term	Issue amount	2020	for the period	par value	the period	payable	statements	depreciation	the period	2021
19 CMOC 01
(Note 1)	28 November 2019		3 years 1,000,000,000.00 1,000,000,000.00		–	21,224,109.58	42,800,000.00	25,210,958.88	–	–		– 1,000,000,000.00
20 Luanchuan Molybdenum MTN001
(Note 2)	28 May 2020		5 years 1,000,000,000. 00 1,000,000,000.00		–	20,827,397.26	42,000,000.00	3,912,328.76	–	–		– 1,000,000,000.00
16 Luanchuan Molybdenum MTN001
(Note 3)	21 March 2016		5 years 2,000,000,000.00 2,000,000,000.00		–	18,267,397.25	84,400,000.00	66,132,602.75	–		– 2,000,000,000.00	–
CMOC CAP B2202 (Note 4)	1 February 2019		3 years 2,010,750,000.00 1,631,225,000.00		–	44,251,684.94	44,251,685.00	37,061,354.15	-16,200,000.00	–		– 1,615,025,000.00
Total	/		/ 6,010,750,000.00 5,631,225,000.00		–	104,570,589.03	213,451,685.00	132,317,244.54	-16,200,000.00		– -2,000,000,000.00 3,615,025,000.00

• Note 1: The Company issued medium-term notes with a total par value of RMB2,000,000,000.00 (herein after referred to as 16 Luanchuan Molybdenum MTN001) on 17 March 2016; and the relevant bonds are permitted to trade and circulate on the National Inter-bank Bond Market. The proceeds from the issue of the medium-term financing bonds were used to supply the Company and its subsidiaries' working capital and repayment of bank borrowings. The annual interest rate of the medium-term notes is a fixed rate, 4.22% with a term of 5 years and the interest is paid once a year in the duration. Please refer to Note (V), 30 for the details of interest payable.
• Note 2: The Company issued corporate bonds with par value of RMB1,000,000,000.00 (herein after referred to as 19 CMOC 01) on 28 November 2019. The relevant bonds are permitted to trade and circulate on the National Inter-bank Bond Market. Proceeds from issuance of the bonds were used as supplement to working capital of the Company and its subsidiaries and repayment of bank loans. The bonds bear a fixed interest rate of 4.28% per annum, with a term of 3 years and the interest is paid once a year in the duration. Please refer to Note (V), 30 for the details of interest payable.
• Note 3: The Company's subsidiary issued bonds in USD with par value of USD300,000,000.00 on 1 February 2019 (herein after referred to as CMOC CAP B2202). Relevant bonds are issued in HKEX. Proceeds from issuance of the bonds were used for the Company's general operation, including but not limit to repayment of partial existing debts of the Company. The bonds bear a fixed interest rate of 5.45% per annum, with a term of 3 years and the interest is paid once a year in the duration. USD50,000,000.00 has been repaid in advance for the period. Please refer to Note (V), 30 for the details of interest payable.
• Note 4: The Company issued medium-term notes with a total par value of RMB1,000,000,000.00 (herein after referred to as 20 Luanchuan Molybdenum MTN001) on 28 May 2020; and the relevant bonds are permitted to trade and circulate on the National Inter-bank Bond Market. The proceeds from the issue of the mediumterm financing bonds were used to replenish working capital of the Company and its subsidiaries and repay bank loans. The annual interest rate of the medium-term notes is a fixed rate, 4.2% with a term of 5 years and the interest is paid once a year in the duration. Please refer to Note (V), 30 for the details of interest payable.

35. Lease liabilities

Unit: RMB

Item	30 June 2021	31 December 2020
Operating lease payables (Note) Less: Le ase liabilities included in non-current liabilities	468,898,676.93	486,385,620.61
due within one year (Note V, 31)	-237,772,750.68	-238,591,144.47
Total	231,125,926.25	247,794,476.14

Note: It include operating lease payables to related parties amounting to RMB95,802,606.91, in which the portion expected to be paid within 12 months is presented in non-current liabilities due within one year. Details of relatedparty leases are set out in Note X, 5.

The Group is not exposed to significant liquidity risk related to lease liabilities.

36. Long-term employee benefits payable

			Unit: RMB
Item		30 June 2021	31 December 2020
I. II. III.	Re tirement benefits-net liability from defined benefit plan Long service leave (Note) Others	319,506,311.33 16,151,560.84 2,034,556.82	308,834,615.99 12,908,135.09 2,054,965.03
Total		337,692,428.99	323,797,716.11

Note: It represents liabilities relating to annual leave and long service leave accrued for employees by overseas companies of the Group, in which the portion expected to be paid within 12 months is accounted for in employee benefits payable.

37. Provisions

Unit: RMB

Item	31 December 2020	30 June 2021	Reasons
Pending litigation (Note 2) Rehabilitation and asset abandonment cost (Note 1)	301,310,164.27 2,449,197,248.22	257,713,120.86 2,123,658,227.30	– –
Total	2,750,507,412.49	2,381,371,348.16	–

Note 1: The Group has the obligation of rehabilitation, environmental restoration and dismantling of related assets due to the environmental impact caused by mineral production and development activities. The management's best estimate of future economic benefits outflow generated from the above obligations is recognized as provision upon discounting. The above estimate is determined based on the industry practices and the current local laws and regulations, and significant changes in related laws and regulations may have a significant impact on the Group's estimate.

Note 2: The Group's Niobium-Phosphorus business in Brasil is facing with a series of local litigations and disputes related to tax matters, labors and other civil cases. When the relevant litigations are likely to lose and result in economic benefits outflow, the management of the Group estimate the amount of potential economic benefits outflow and make corresponding provisions.

38. Deferred income

Item	31 December 2020	Increase in the period	Decrease in the period	30 June 2021	Reasons
Government grants	60,587,483.62	–	3,788,561.12	56,798,922.50	–
Total	60,587,483.62	–	3,788,561.12	56,798,922.50	–

Projects related to government grants:

Unit: RMB

	1 January	Increase in	Recorded in non-operating	Recorded in	Other	30 June	Related to
Item of liabilities	2021	the period	income	other income	changes	2021	assets/ income
Deferred income-subsidies for low-grade scheelite demonstration project
(Note 2)	40,861,740.00	–	–	3,502,434.90	–		37,359,305.10 Related to assets
Subsidies of the return of Nannihu land premium (Note 1)	14,202,410.30	–	–	192,792.90	–		14,009,617.40 Related to assets
Special funds for comprehensive utilization of 3,000 tons/day
Molybdenum selection tailings (Note 2)	3,000,000.00	–	–	–	–		3,000,000.00 Related to assets
Comprehensive tax and industrialization award for large-scale tungsten
associated copper rhenium	1,200,000.00	–	–	–	–		1,200,000.00 Related to assets
Subsidy for closing Luchanggou Tailing	1,230,000.00	–	–	–	–		1,230,000.00 Related to assets
Construction of Heluo Craftman
Workshop	93,333.32	–	–	-6,666.68	-100,000.00		– Related to assets
Total	60,587,483.62	–	–	3,688,561.12	-100,000.00	56,798,922.50 /

Note 1: They refer to refunds of land transaction fees received by the Group, recognized as deferred income, and evenly amortized using straight-line method within the useful life of the land.

• Note 2: They refer to special funds for major scientific and technological projects of Henan Province, special funds for mineral resources saving and comprehensive utilization and subsidies for demonstration base of mineral resources comprehensive utilization by the central government received by the Group, which are planned to be used for researching on key technologies for molybdenum and tungsten mineral processing and deep processing and recognized as deferred income and will be recognized as other income for the current period when relevant technical research expenses incurred in the future.
• Note 3: For the government grants to be received by the Company, it will be divided to asses-related government grants and income-related government grants according to the definition and requirements by the government. For those not clearly defined by the government, the Company divides the subsidies based on whether they can form assets.

39. Other non-current liabilities

Unit: RMB Item 30 June 2021 31 December 2020 Principal, interest and others payable to third parties 753,346.69 1,046,323.63 Production progress fees payable to Gécamines (Note 1) 32,300,500.00 32,624,500.00 Deferred management bonus (Note 2) 16,742,757.45 16,910,700.78 Share-based payments (Note 3) 102,533,861.44 152,383,326.69 Receipts in advance of gold streaming transaction (Note 4) 3,419,471,781.63 3,484,632,889.76 Others 110,887.64 111,999.91 Total 3,571,913,134.85 3,687,709,740.77

Note 1: In accordance with the mining agreement entered into between the Group and Gécamines, Gécamines needs to charge TFM production progress fees. On 30 June 2021, the outstanding payment is USD5,000,000.00; according to TFM's production plan, the remaining amount is expected to be paid after 2021.

Note 2: It represents the management bonus determined before IXM becoming a subsidiary of the Group. The closing balance of the period will be paid by installment in two years, of which, the portion expected to be paid within 12 months is presented under employee benefits payable.

Note 3: In 2018 and 2019, IXM announced a cash-settled share-based payment plan (Phantom Equity Retention Plan, "PERP") which will be exercised in five years and a cash-settled share-based payment plan (Phantom Equity Participant Plan, "PEPP") which will be exercised in four years, respectively. Both PERP and PEPP vested 25% per annum during the period from 2020 to 2023, and will be expired in 2029. Vesting conditions of PERP are mainly related to the net assets of IXM and employees' personal performance, while requiring employees continuing employment with IXM; Vesting conditions of PEPP are mainly related to requirement for continuing employment with IXM. In the current period, other non-current liabilities related to PERP and PEPP amounting to RMB70,719,987.86 and RMB31,813,873.58 were recognized respectively.

Note 4: It refers to receipts in advance of metal flow, please refer to Note V, 27 for details.

40. Share capital

Unit: RMB

			Issuing new		Changes for the period (+, -) Capitalization
		1 January 2021	shares	Bonus	of surplus reserve	Others	Sub-total	30 June 2021
I.	Sh ares with restricted conditions for sale
	Ordinary shares in RMB	–	–	–	–	9,702,657.40	9,702,657.40	9,702,657.40
	To tal Shares with restricted conditions for sale	–	–	–	–	9,702,657.40	9,702,657.40	9,702,657.40
II.	Sh ares without restricted conditions for sale
	1. Ordinary shares in RMB 2. Ov erseas listed foreign	3,533,154,516.00	–	–	–	-9,702,657.40	-9,702,657.40	3,523,451,858.60
	shares	786,693,600.60	–	–	–	–	–	786,693,600.60
	To tal Shares without restricted conditions for sale	4,319,848,116.60	–	–	–	-9,702,657.40	-9,702,657.40	4,310,145,459.20
	Total shares	4,319,848,116.60	–	–	–	–	–	4,319,848,116.60

41. Capital reserve

Unit: RMB

Item	1 January 2021	Increase in the period	Decrease in the period	30 June 2021
Capital premium(share capital
premium)	27,582,794,983.23	–	96,813,892.48	27,485,981,090.75
Including: Ca pital invested by
investors	27,580,672,943.23	–	–	27,580,672,943.23
Others (Note 1)	2,122,040.00	–	96,813,892.48	-94,691,852.48
Other capital reserve (Note 2)	–	9,008,647.88	–	9,008,647.88
Total	27,582,794,983.23	9,008,647.88	96,813,892.48	27,494,989,738.63

Note1: The company implements the restricted stock incentive plan at this period, and the difference between the subscription price and the Treasury stock is included in the capital reserve because the equity granted has not reached the conditions for the release of restricted sales stipulated in the employee stock ownership plan.

Note2: Other capital reserves are the restricted stock incentive plan implemented by the company during the current period, and the allocated incentive cost from January to June 2021 is RMB 9,008,647.88.

42. Treasury shares

Unit: RMB

Item	1 January 2021	Increase in the period	Decrease in the period	30 June 2021
Repurchase of treasury shares	193,840,466.48	–	1,600,938.47	192,239,528.01
Total	193,840,466.48	–	1,600,938.47	192,239,528.01

Note: The 17th interim meeting of the fifth Board of Directors and the 2020 Annual General Meeting of Shareholders were held on May 5, 2021 and May 21, 2021 respectively. Deliberating and adopting motions related to this ESOP such as motion on the First Phase of ESOP Plan (Draft) of China Molybdenum Co., LTD in 2021 and its Abstract, motion on the Management Measures of the First Phase of ESOP Plan of China Molybdenum Co., LTD. in 2021, etc. It is determined that the grant date of restricted stock under this Incentive Plan is May 21, 2021, and that 48,513,287 restricted stock shares will be granted to five incentive subjects at a grant price of 2 yuan per share.

On June 17, 2021, the Company completed the registration of non-transaction transfer with China Securities Depository and Clearing Co., LTD., and granted 48,513,287 restricted stock shares to five incentive parties. As the equity granted has not reached the conditions for the release of restricted sales stipulated in the employee stock ownership plan, the corresponding repurchase obligation of RMB192,239,528.01 shall be confirmed at the end of the period.

43. Other comprehensive income

Item		1 January 2021	Actual amount before income tax in the period	Less: Amount previously included in other comprehensive income transferred into profit or loss	Amount recognized in the current period Less: Amount previously included in other comprehensive income transferred into retained earnings	Less: Income tax expenses	After-tax amount attributable to owners of the parent company	After-tax amount attributable to minority shareholder	Less: Amount previously included in other comprehensive income transferred into cost of long term assets	30 June 2021
I.	O ther comprehensive income that will not be reclassified to profit or
	loss	-53,027,565.21	–	–	–	–	–	–	–	-53,027,565.21
	Including: Remeasurement of changes
	in defined benefit plans	-29,769,871.83	–	–	–	–	–	–	–	-29,769,871.83
	Ch anges in fair value of
	other investments in
	equity instruments	-23,257,693.38	–	–	–	–	–	–	–	-23,257,693.38
II.	Other comprehensive income that may be reclassified
	subsequently to profit or loss	-3,532,662,596.55	-2,539,164,893.93	-160,803,588.30	–	-110,975,515.67	-2,185,166,228.12	-82,219,561.84	-28,467,045.69	-5,689,361,778.98
	Including: Cash flow hedge reserve	-1,412,459,302.80	-2,120,902,264.54	-160,803,588.30	–	-110,975,515.67	-1,849,123,160.57	–	-28,467,045.69	-3,233,115,417.68
	Fo reign exchange difference
	from translation of
	financial statements	-2,120,203,293.75	-418,262,629.30	–	–	–	-336,043,067.55	-82,219,561.84	–	-2,456,246,361.30
	Total other comprehensive income	-3,585,690,161.76	-2,539,164,893.93	-160,803,588.30	–	-110,975,515.67	-2,185,166,228.12	-82,219,561.84	-28,467,045.69	-5,742,389,344.19

44. Special reserve

Unit: RMB

Item	1 January 2021	Increase in the period	Decrease in the period	30 June 2021
Safety production expense	230,899.06	62,710,928.52	62,185,889.67	755,937.91
Total	230,899.06	62,710,928.52	62,185,889.67	755,937.91

45. Surplus reserve

Unit: RMB

Item	1 January 2021	Increase in the period	Decrease in the period	30 June 2021
Statutory surplus reserve	1,295,599,051.54	–	–	1,295,599,051.54
Total	1,295,599,051.54	–	–	1,295,599,051.54

46. Retained profits

Item	Amount for the current period	Amount for the prior period
Retained profits at the end of the previous period (before adjustment)	9,472,838,365.96	8,081,590,250.78
Adjustment of total retained profits at the beginning of the current period (Add +, Less -)	–	–
Retained profits at the beginning of the current period (after adjustment)	9,472,838,365.96	8,081,590,250.78
Add: Ne t profit attributable to owners of the parent company for the period	2,408,598,438.70	2,328,787,511.92
Less: Appropriation to statutory surplus reserve Dividends of ordinary shares payable	– 712,774,939.24	8,772,050.63 928,767,346.11
Retained profits at the end of the current period	11,168,661,865.42	9,472,838,365.96

47. Operating income and operating costs

(1) Operating income and operating costs

Unit: RMB

Item	Amount for the current period Revenue	Costs	Amount for the prior period Revenue	Costs
Principal operating activities Other operating activities	84,561,041,358.36 254,888,977.90	75,584,674,373.03 231,984,030.85	46,556,672,079.04 187,185,347.22	45,907,052,689.74 135,181,444.57
Total	84,815,930,336.26	75,816,658,403.88	46,743,857,426.26	46,042,234,134.31

(2) Operating income (by products)

Amount for the current period			Amount for the prior period
Name of products	Operating income	Operating costs	Operating income	Operating costs
Molybdenum, tungsten
and related products	2,596,501,361.11	1,694,165,707.33	2,009,137,777.19	1,245,173,857.27
Niobium related products	1,007,785,178.96	737,749,444.97	1,028,899,675.55	803,284,093.14
Phosphorus related
products	1,537,943,534.72	1,023,003,959.03	1,113,176,133.42	974,584,074.95
Copper, cobalt and
related products	6,060,092,487.90	2,997,323,163.93	4,296,670,158.37	3,862,013,612.70
Copper, gold and related
products	658,495,921.53	442,130,457.27	640,110,019.54	513,699,180.83
Concentrates metal
trading	21,944,753,057.21	21,238,150,142.79	14,215,340,676.75	13,983,606,530.88
Refined metal trading	50,755,428,736.21	47,452,064,670.90	23,243,114,588.35	24,515,277,357.78
Others	41,080.72	41,826.81	10,223,049.87	9,413,982.19
Total	84,561,041,358.36	75,584,674,373.03	46,556,672,079.04	45,907,052,689.74

(3) Description of performance obligations

Sales of goods and metal business:

The Group sells mineral products including molybdenum, tungsten, niobium, phosphorus, copper, cobalt and gold, and copper, lead and zinc concentrates, refined metals, aluminum and other secondary metals to customers. In general, contracts on sales of relevant products solely contain one performance obligation, i,e, delivery of goods. The consideration for sales of products is determined based on the fixed price in the sales contract or temporary pricing arrangement. Revenue is recognized upon transfer of control to the client. Revenue from sales in the temporary pricing arrangement is recognized based on the fair value of products upon recognition of sales. Subsequent changes in the fair value of accounts receivable is included in revenue from sales of goods.

In the meanwhile, the Group carries out business by receipts in advance or sales on credit based on credit status of counterparties.

Income from hotel services:

The Group renders services to clients based on its own hotels, relevant revenue is recognized in the period when clients receives and consumes relevant services.

Other income:

The Group also provides customers with ancillary services including diesel and electricity, and receives revenue. Relevant revenue is recognized in the period when the customer obtains and consumes the goods.

(4) Description of allocation to remaining performance obligations

At the end of the reporting period, the revenue corresponding to the contracted but unfulfilled (or incompletely performed) performance obligations amounts to RMB632,542,954.05 of which RMB630,699,211.33 is expected to be recognized as revenue within one year after the balance sheet date, RMB1,843,742.72 is expected to be recognized as revenue over one year after the balance sheet date.

48. Taxes and levies

		Unit: RMB
Item	Amount for the current period	Amount for the prior period
Urban maintenance and construction tax Education surcharges	8,180,130.20 7,146,909.70	6,827,927.62 6,748,712.62
Resource tax Others	460,329,617.85 52,209,896.05	410,179,461.61 49,767,789.39
Total	527,866,553.80	473,523,891.24

Note: The resource tax include the royalties of mineral rights in Congo (DRC).

49. Selling expenses

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Salary, bonus and allowances	10,448,377.27	14,958,585.42
Entertainment expenditures	504,552.87	299,516.28
Traveling expense	237,391.77	824,637.89
Market consulting fee	21,709,717.13	15,853,587.14
Others	4,515,734.96	10,460,786.84
Total	37,415,774.00	42,397,113.57

50. Administrative expenses

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Salary, bonus and allowances Depreciation and amortization Consulting and agency fees Business entertainment expenditure Insurance costs Others	330,512,618.60 95,979,146.16 73,972,422.37 8,991,572.71 23,677,349.37 151,533,696.99	242,701,785.28 95,055,728.69 72,804,948.98 9,007,454.27 59,768,625.67 173,057,817.73
Total	684,666,806.20	652,396,360.62

51. R&D expenses

	Amount for	Amount for
Item	the current period	the prior period
Technical R&D expenses	64,364,765.73	45,276,058.60
Total	64,364,765.73	45,276,058.60

52. Financial expenses

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Interest expenses on bonds Discount interest of notes receivables Bank loans interest expenses Gold streaming financing costs Interest expenses on lease liabilities Less: Interest income Exchange differences Gold lease charges Others	113,773,350.95 15,497,533.62 695,474,804.62 54,659,822.39 11,970,723.53 -354,935,485.05 -41,211,672.91 20,190,043.86 39,716,955.08	154,270,471.63 15,007,252.04 749,889,990.12 – 4,869,700.37 -370,946,927.96 26,987,130.49 33,313,726.84 82,059,623.52
Total	555,136,076.09	695,450,967.05

53. Other income

Item	Amount for the current period	Amount for the prior period
Nannihu land transfer compensation Deferred income-subsidies for low-grade	192,792.90	192,792.90
scheelite demonstration project	3,502,434.90	3,502,434.90
Rewards for research and development	7,001,600.00	2,498,000.00
Sinosure financial support fund	–	3,000,000.00
Government subsidies for stabilizing job posts	–	1,689,415.17
Tax refunds	5,972,656.14	–
Others	2,897,545.77	2,030,805.95
Total	19,567,029.71	12,913,448.92

54. Investment income

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Income from long-term equity investments under equity method	8,462,846.28	4,063,829.99
Investment income from holding held-for-trading financial assets	6,703,857.19	80,622,896.36
Investment income on disposal of other non current financial assets	-4,814,764.48	9,818,727.41
Investment income from holding other non current financial assets	88,948,532.60	26,294,807.78
Interest income from holding other financial assets at amortized cost	–	5,738,246.32
Investment income on disposal of subsidiaries	1,343,836.45	–
Total	100,644,308.04	126,538,507.86

There are no significant restrictions on remittance of investment income.

Investment income for both current and prior periods is generated from the unlisted entities.

55. Gains from changes in fair value

Unit: RMB Sources resulting in gains from changes in fair values Amount for the current period Amount for the prior period Losses from changes in fair values of gold lease and forward contract measured at fair value (Note V, 23) -2,068,040.61 -2,954,095.22 Losses (gains) from changes in fair value of consumable biological assets (Note V, 8) -4,933,877.47 2,176,208.19 Gains from the changes in the fair value of other non-current financial assets at FVTPL 375,444,645.34 -43,991,147.33 Gains from changes in fair value of other heldfor-trading financial assets 7,837,936.19 8,737,766.41 Gains (losses) from changes in fair value of derivative financial instruments -3,227,312,280.37 1,438,282,539.04 Total -2,851,031,616.92 1,402,251,271.09

56. Losses from credit impairment

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Losses from bad debt of notes receivable Losses from bad debt of accounts receivable Losses from bad debt of other receivables	690,696.98 -2,083,010.91 -109,337.74	212,333.58 -904,201.83 –
Total	-1,501,651.67	-691,868.25

57. Losses from assets impairment

		Unit: RMB
Item	Amount for the current period	Amount for the prior period
I. Lo sses from decline in value of inventories and impairment loss of contract performance cost II. Impairment loss of fixed assets	-20,067,675.71 -16,973,454.94	10,936,023.88 –
Total	-37,041,130.65	10,936,023.88

58. Gains from disposal of assets

Item	Amount for the current period	Amount for the prior period
Gains (losses) from disposal of fixed assets	-249,973.49	5,989,609.46
Total	-249,973.49	5,989,609.46

59. Non-operating income

Unit: RMB

Item	Amount for the current period	Amount for the prior period	Amount included in non-recurring profit or loss for the period
Government grants Others	– 18,841,499.16	50,000.00 5,433,440.40	– 18,841,499.16
Total	18,841,499.16	5,483,440.40	18,841,499.16

60. Non-operating expenses

Unit: RMB

Item	Amount for the current period	Amount for the prior period	Amount included in non-recurring profit or loss for the period
External donations Others	8,742,795.89 10,618,081.38	1,445,334.19 4,011,011.87	8,742,795.89 10,618,081.38
Total	19,360,877.27	5,456,346.06	19,360,877.27

61. Income tax expenses

(1) Income tax expenses

Item	Amount for the current period	Amount for the prior period
Current tax expenses Deferred tax expenses Differences arising on settlement of income tax for the previous year	1,722,669,660.59 -242,750,651.46 46,494,662.83	784,662,031.38 -1,468,419,805.33 32,151,833.26
Total	1,526,413,671.96	-651,605,940.69

(2) Reconciliation of income tax expenses to the accounting profit is as follows:

Unit: RMB

Item	Amount for the current period
Accounting profit	4,359,689,543.47
Income tax expenses calculated at statutory/applicable tax rate	653,953,431.52
Impact of different tax rate in subsidiaries in other jurisdictions	921,394,023.21
Impact of adjustment of income tax for previous periods	46,494,662.83
Tax impact of tax free income	-262,804,856.77
Tax impact of non-deductible cost, expenses and losses	48,178,000.27
Tax impact of utilizing deductible loss not recognized for deferred tax
assets for prior period	-618,205.81
Tax impact of deductible losses and deductible temporary
differences for which deferred tax assets are not recognized	10,506,033.12
Impact of non-currency monetary items	-43,869,026.78
Deductible losses generated from tax reports	79,320,945.69
Tax for registered capital (Note)	4,965,356.35
Changes in deferred income tax due to changes in tax rate	6,639,547.37
Others	62,253,760.96
Income tax expenses	1,526,413,671.96

Note: It represents the income tax paid based on the proportion of the registered capital under the tax law in Switzerland by IXM, the Group's subsidiary.

62. Details of other comprehensive income are set out in Note V, 43.

63. Items in the cash flow statements

(1) Other cash received relating to operating activities

		Unit: RMB
Item	Amount for the current period	Amount for the prior period
IXM's receipts of deposits for derivative financial instruments Receipts of compensation and penalty Receipts of interest income	– 1,679,684.99 220,552,845.71	141,576,312.31 82,560.00 359,700,386.53
Receipts of government grants Others	8,996,355.83 202,978,602.91	8,913,437.69 271,435,128.68
Total	434,207,489.44	781,707,825.21

(2) Other cash payments relating to operating activities

Unit: RMB

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Payments for consulting fee, technology development fee and transportation fee, etc. Payments of donations and penalty, etc.	156,542,013.33 –	143,757,722.26 289,457.18
Payments of bank charges, etc. IXM's payments for settlement on investment loss from derivative	2,689,251.11	5,759,409.37
financial instruments Others	– 53,129,363.23	6,920,834.90 48,803,506.60
Total	212,360,627.67	205,530,930.31

(3) Cash receipts from disposals and recovery of investments

		Unit: RMB
Item	Amount for the current period	Amount for the prior period
Cash receipts from recovery of bank structured deposits and investments in financial products of other financial institutions Cash receipts from recovery of non	2,988,314,717.41	10,143,667,157.44
current financial assets	1,127,412,828.13	254,293,577.99
Total	4,115,727,545.54	10,397,960,735.43

(4) Other cash receipts relating to investing activities

Item	Amount for the current period	Amount for the prior period
Cash receipts from repayments of third
parties	133,757,988.91	200,000,000.00
Cash receipts from guarantee deposits Cash receipts from intention payment for	2,701,017,210.22	–
equity transfer	907,533,000.00	–
Others	31,672,892.17	62,090,210.78
Total	3,773,981,091.30	262,090,210.78

(5) Cash payments to acquire investments

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Cash payments to acquire bank structured deposits and financial
products of other financial institutions	4,504,830,128.53	9,981,406,090.70
Cash payments to acquire non-current
financial assets	187,371,964.24	17,036,132.69
Settlement of derivative financial
instruments	1,259,636,463.08	205,764,718.58
Others	–	602,387,142.83
Total	5,951,838,555.85	10,806,594,084.80

(6) Other cash payments relating to investing activities

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Cash payments for loans to third parties Payments for guarantee deposits Others	673,875,630.49 3,679,573,231.18 23,338,944.48	594,590,712.61 – 26,201,798.72
Total	4,376,787,806.15	620,792,511.33

(7) Other cash receipts relating to financing activities

Item	Amount for the current period	Amount for the prior period
Cash receipts from gold lease business Cash receipts from third-party	1,777,772,000.00	3,465,378,700.00
borrowings	–	263,173,396.62
Others	65,748,236.88	2,239.00
Total	1,843,520,236.88	3,728,554,335.62

(8) Other cash payments relating to financing activities

Unit: RMB

Item	Amount for the current period	Amount for the prior period
Cash paid for gold leasing business Commission charge related to gold	550,101,400.00	3,334,872,270.00
leasing business	26,614,934.66	43,320,844.09
Borrowing guarantee deposit and arrangement fee	858,466.77	60,656,640.77
Cash repayments to third parties Others	– 96,621,683.59	127,501,116.00 42,308,342.00
Total	674,196,485.02	3,608,659,212.86

64. Supplementary information to the cash flow statement

(1) Supplementary information to the cash flow statement

	Amount for	Amount for
Supplementary information	the current period	the prior period
1. Re conciliation of net profit to cash flow from
operating activities:
Net profit	2,833,275,871.51	1,002,148,928.86
Add: Provision for impairment on assets	37,041,130.65	-10,936,023.88
Credit impairment loss	1,501,651.67	691,868.25
Depreciation of fixed assets, depletion of
oil and gas assets, depreciation of bearer
biological assets	1,090,372,177.35	1,123,667,796.88
Amortization of right-of-use assets	129,807,851.36	49,816,223.70
Amortization of intangible assets	858,731,402.28	765,760,740.72
Amortization of long-term prepaid expenses	17,166,056.56	13,694,688.09
Losses on disposal of fixed assets,
intangible assets and other long-term
assets (gains are indicated by "-")	249,973.49	-5,989,609.46
Losses on write-off of fixed assets (gains
are indicated
by "-")	35,110.64	495.00
Losses on changes in fair values (gains are
indicated by "-")	2,851,031,616.92	109,079,596.70
Financial expenses (income is indicated by
"-")	759,433,825.51	962,213,481.47
Losses arising from investments (gains are
indicated by "-")	-100,644,308.04	-126,538,507.86
Decrease in deferred tax assets (increase is
indicated by "-")	-273,604,667.57	-538,739,450.31

		Amount for	Amount for
Supplementary information		the current period	the prior period
	Increase in deferred tax liabilities (decrease
is indicated by "-")		-165,981,114.19	-964,683,480.24
	Decrease in inventories (increase is
indicated by "-")		-3,237,161,564.03	-1,373,440,773.80
	Decrease in receivables from operating
	activities (increase is indicated by "-")	-5,352,309,682.37	1,900,827,601.13
	Increase in payables from operating
activities	(decrease is indicated by "-")	1,856,259,581.54	911,060,365.68
Increase in provisions		16,720,368.72	–
Others		-3,263,522.27	432,763,779.66
	Including: Amortization of deferred income	-3,788,561.12	-3,695,227.80
	Increase in special reserve
	(decrease is indicated by "-")	525,038.85	531,491.03
	Decrease in restricted bank
	deposits (increase is indicated
	by "-")	–	435,927,516.43
	Net cash flow from operating activities	1,318,661,759.73	4,251,397,720.59
2.	Si gnificant investing and financing activities
	that do not involve cash receipts and
payments:
Conversion of debt into capital		–	–
Convertible bonds due within one year		–	–
Fixed assets hold under finance lease		–	–
3.	Net changes in cash and cash equivalents:
Closing balance of cash		12,626,228,986.57	15,374,199,270.18
Less: Opening balance of cash		11,448,950,438.25	12,392,247,511.85
Add: Closing balance of cash equivalents		–	–
	Less: Opening balance of cash equivalents	–	–
	Net increase in cash and cash equivalents	1,177,278,548.32	2,981,951,758.33

(2) Net cash receipts of disposal of subsidiaries

Unit: RMB

Item	Amount
Cash or cash equivalents received in the current period from disposal
of subsidiaries in the current period	55,505,000.00
Including: Luochuan Huqi Mining Company Limited	5,000.00
Luoyang Yuehe Properties Co., Ltd.	55,500,000.00
Less: Ca sh and cash equivalents held by the subsidiaries at the date
when control is lost	–
Including: Luochuan Huqi Mining Company Limited	–
Luoyang Yuehe Properties Co., Ltd.	–
Add: Ca sh or cash equivalents received in the current period from
disposal of subsidiaries in the prior periods	–
Net cash receipts of disposal of subsidiaries	55,505,000.00

Note: Details are set out in Note VI, I

(3) Constitution of cash and cash equivalents

Item		30 June 2021	31 December 2020
I.	Cash Including: Cash on hand Bank deposits always available for payment	12,626,228,986.57 1,319,792.42 12,624,909,194.15	11,448,950,438.25 756,268.21 11,448,194,170.04
	II. Cash equivalents Including: B onds investment with a maturity within 3 months	– –	– –
	III. Cl osing balance of cash and cash equivalents Including: R estricted cash and cash equivalents used by the parent company or subsidiaries within the Group	12,626,228,986.57 –	11,448,950,438.25 –

65. Foreign currency monetary items

(1) Foreign currency monetary items

Item	Closing balance denominated in foreign currency	Exchange rate	Closing balance of foreign currency translated into RMB
Monetary funds	–	–	419,764,629.19
Including: USD	23,886,480.20	6.4601	154,309,050.77
EUR	1,405,633.93	7.6862	10,803,983.54
HKD	3,667,657.55	0.8321	3,051,857.85
RMB	2,921,171.69	1.0000	2,921,171.69
CAD	1,205,866.38	5.2097	6,282,202.07
AUD	14,186,706.11	4.8528	68,845,247.43
BRL	121,822,092.26	1.2915	157,333,232.15
GBP	338,815.74	8.9410	3,029,351.49
CDF	346,828,859.38	0.0032	1,109,852.35
ZAR	16,984,959.36	0.4501	7,644,930.21
SGD	213,483.39	4.8027	1,025,296.68
AED	2,584.15	1.7587	4,544.74
CHF	126,922.76	7.0134	890,160.05
CLP	5,307,677.27	0.0088	46,707.56
MXN	6,669,339.66	0.3260	2,174,204.73
NAD	126,269.45	0.4521	57,086.42
PEN	139,315.36	1.6710	232,795.97
TRY	3,992.82	0.7397	2,953.49
Short-term borrowings	–	–	1,734,561,835.85
Including: USD	228,507,191.42	6.4601	1,476,179,307.28
MXN	253,932,379.82	0.3260	82,781,955.82
PEN	105,087,117.15	1.6710	175,600,572.75
Non-current liabilities due
within one year	–	–	3,360,915.86
Including: PEN	2,011,320.08	1.6710	3,360,915.86
Long-term borrowings Including: RMB	– 700,000,000.00	– 1.0000	704,763,891.38 700,000,000.00
PEN	2,850,922.43	1.6710	4,763,891.38

(2) Description of overseas operations

Name of subsidiaries	The main operating location abroad	Functional currency Basis of choice
CMOC Brasil	Brasil	USD	According to the primary economic environment
CMOC Mining	Australia	USD	According to the primary
CMOC Mining Services	Australia	AUD	economic environment According to the primary economic environment
TFM	Congo (DRC)	USD	According to the primary economic environment
Purveyors South Africa Mine Services CMOC("CMOC South Africa")	Republic of South Africa	USD	According to the primary economic environment
IXM Holding	Switzerland	USD	According to the primary economic environment

66. Hedges

Disclosures of qualitative and quantitative information of hedged items and related hedge instruments, hedged risk by category of hedges:

cash flow hedges

Interest rate swap contracts

The Group enters into interest rate swap contracts to mitigate the cash flow risk arising from its floating rate borrowings, i.e., some of the floating-rate borrowings are converted into fixed-rate borrowings. The Group designated the acquired interest rate swap contracts as hedging instrument, and the critical terms of these interest rate swap contracts are similar to those of the borrowings. The Group determines the quantitative proportion between hedging instrument and the items hedged is 1:1 through qualitative analysis, and believes that it is highly effective.

At the balance sheet date, the income arising from the changes in fair value of cash flow hedging instruments recognized in the other comprehensive income is RMB17,881,019.78 (January to June 2020: the loss of RMB237,712,267.75), and is expected to be transferred gradually to the income statement within 29 months after the balance sheet date.

In this period, the amount transferred from other comprehensive income to profit or loss by the Group is the loss of RMB60,141,702.46 (January to June 2020: the loss of RMB29,397,402.65).

Forward foreign exchange contracts and foreign exchange option contracts

The Group uses forward foreign exchange contracts and foreign exchange option contracts to reduce the cash flow risks of fluctuation of foreign exchange on capital expenditure of Brasil subsidiary. In 2020, the Group designated some of the acquired forward foreign exchange contracts and foreign exchange option contracts denominated in BRL as hedging instrument, which were expired and settled in 2020 and 2021 respectively. The Group used ratio analysis method to assess effectiveness of hedges and believed that it was highly effective. The amount of invalid hedges recognized in the current year was not significant. At the balance sheet date, the loss arising from the changes in fair value of cash flow hedging instruments recognized in the other comprehensive income is RMB40,849,323.57 (January to June 2020: RMB362,951,497.12).

Commodity futures contract

The Group is engaged in mining and sales business of copper products and expects that the copper products sold will be exposed to cash flow risks arising from changes in copper prices. Therefore, the Group adopts the futures contract of copper to reduce cash flow risks arising from changes in prices of commodities expected to be sold. A class copper produced and sold by the Group is the same as the corresponding A class copper in the futures contract of copper, the Group determines that the proportion of hedging instruments and hedged items is 1:1 through qualitative analysis and believes that it is highly effective. As of the balance sheet date, the loss arising from the changes in fair value of cash flow hedging instruments recognized in the other comprehensive income is RMB2,166,906,894.64 (January to June 2020: nil).

In this period, the amount reclassified from other comprehensive income to profit or loss by the Group is the loss of RMB106,037,909.93 (January to June 2020: nil).

Fair value hedging

Futures contracts of refined copper

The Group adopts futures contracts of refined copper to hedge risks of fluctuation in prices of refined copper stocks. The Group determines that the proportion of hedging instruments and hedged items is 1:1 through qualitative analysis and believes that it is highly effective. As of the balance sheet date, inventories amounting to RMB80,668,528.42 are regarded as hedged item of fair value hedging.

Hedging instruments

Main information of the Group's hedging instruments is as follows:

	Assets	Carrying amount of hedging instruments as at 30 June 2021 Liabilities
Cash flow hedging Interest rate risk – interest rate swap contracts	–	388,920,337.79	Non-current derivative financial liabilities
Foreign exchange – forward foreign exchange contracts and foreign exchange option contracts	37,628,887.38	18,685,133.74	Derivative financial assets and derivative financial liabilities
Commodity price risk-commodity futures contract	40,691,413.86	1,218,547,229.77	Derivative financial assets, non-current derivative financial assets and derivative financial liabilities
Fair value hedging
Commodity price risk-commodity futures contract	–	80,668,528.42	Derivative financial liabilities

VI. CHANGES IN SCOPE OF CONSOLIDATION

1. Disposal of subsidiaries

Unit: RMB

Name of subsidiary	Equity disposal consideration	Equity disposal proportion (%)	Equity disposal approach	Time point of losing control	Determination basis for time point of losing control	Difference between disposal consideration and shares of corresponding net assets of the subsidiary at consolidated level	Proportion of remaining equity at the date of losing control (%)	Carrying a mount of remaining equity at the date of losing control	Fair value of remaining equity at the date of losing control	Gains or losses arising from re measuring remaining equity at fair value	Determination method and major assumptions of fair value of remaining equity at the date of losing control	Amount of other comprehensive income related to equity investments of the original subsidiary transferred to investment profit or loss
Luoyang Yuehe Properties Co., Ltd.	55,500	100	Transfer as agreed	30 June 2021	Completing changes in industrial and commercial registration and not participating in the company's operating decisions and	1,339	–	–	–	N/A	N/A	–
Luochuan Huqi Mining Company Limited	5	100	Transfer as agreed	14 April 2021	management Completing changes in industrial and commercial registration and not participating in the company's operating decisions and management	5	–	–	–	N/A	N/A	–

2. Other reasons for changes in scope of consolidation

On 17 June 2021, the Group established a level 4 wholly-owned subsidiary Shanghai Moju Engineering & Consulting Co., Ltd., which is mainly engaged in engineering technology services, information consulting services, nonferrous metals trading, import and export trading and etc., as of the balance sheet date, it has not yet launched operations.

On 11 June 2021, the Group established a level 4 wholly-owned subsidiary Shanghai Fuyi Engineering & Consulting Co., Ltd., which is mainly engaged in engineering technology services, information consulting services, nonferrous metals trading, import and export trading and etc., as of the balance sheet date, it has not yet launched operations.

On 11 January 2021, the Group established a level 2 wholly-owned subsidiary CMOC Singapore Pte. Ltd. in Singapore, which is mainly engaged in metals trading. On 23 March 2021, the Group established a level 2 wholly-owned subsidiary KFM Holding Limited in Hong Kong, which is mainly engaged in investing holding, as of the balance sheet date, it has not yet launched operations.

On 23 March 2021, the Group established a level 2 wholly-owned subsidiary KFM Holding Limited in Hong Kong, which is mainly engaged in investing holding, as of the balance sheet date, it has not yet launched operations.

On 12 April 2021, the Group established a level 3 wholly-owned subsidiary Kisanfu Africa Holding (Pty) Limited in South Africa, which is mainly engaged in investing holding, as of the balance sheet date, it has not yet launched operations.

VII. INTERESTS IN OTHER ENTITIES

1. Interests in subsidiaries

(1) Constitution of the Group

Name of the subsidiary	Main business site	Place of incorporation	Nature of business	Shareholding ratio (%) Direct	Indirect	Acquisition method
China Molybdenum Refining Co., Ltd. ("Ye Lian")	China	Luanchuan, Henan	Refining and sales of mineral	100.00	–	Investment establishment
China Molybdenum Tungsten Sales and Trading Co., Ltd. ("Sales and Trading")	China	Luanchuan, Henan	products Trading of mineral products	100.00	–	Investment establishment
Luoyang Mudu International Hotel Co., Ltd. ("International Hotel")	China	Luoyang, Henan	Hotel	100.00	–	Investment establishment
China Molybdenum Tungsten Co., Ltd. ("Wu Ye")	China	Luanchuan, Henan	Refining and sales of mineral products	100.00	–	Investment establishment
China Molybdenum (Hong Kong) Company Limited ("CMOC HK")	Hong Kong, China	Hong Kong, China	Trading of mineral products	100.00	–	Investment establishment
China Molybdenum Metal Material Company Limited ("Metal Material")	China	Luoyang, Henan	Processing and sales of mineral products	100.00	–	Investment establishment
Xinjiang Luomu Mining Co., Ltd. ("Xin Jiang Luo Mu")	China	Xinjiang	Production and sales of mineral	65.10	–	Investment establishment
China Molybdenum Sales Co., Ltd. ("Sales company")	China	Luanchuan, Henan	Trading of mineral products	100.00	–	Investment establishment
CMOC Limited	Hong Kong, China	Hong Kong, China	Investment & Holding	100.00	–	Investment establishment
CMOC Mining Pty Limited("CMOC Mining")	Australia	Australia	Production, processing and sales of mineral products	–	100.00	Investment establishment
CMOC Mining Services Pty. Limited ("CMOC Mining Services")	Australia	Australia	Mining services	–	100.00	Investment establishment
Luanchuan Fu Kai Trading Co., Ltd. ("Fu Kai")	China	Luanchuan, Henan	Trading of Molybdenum and tungsten products	100.00	–	Investment establishment
Luochuan Qixing Mining Company Limited ("Qi Xing")	China	Luanchuan, Henan	Refining and sales of mineral products	90.00	–	Investment establishment
Luanchuan Furun Mining Co., Ltd. ("Fu Run")	China	Luanchuan, Henan	Refining and sales of mineral products	100.00	–	Investment establishment
Luanchuan County Dadongpo Tungsten Molybdenum Co., Ltd. ("Da Dong Po")	China	Luanchuan, Henan	Refining and sales of mineral	51.00	–	Investment establishment

products

	Main	Place of Nature of Shareholding ratio (%)				Acquisition
Name of the subsidiary	business site	incorporation	business	Direct	Indirect	method
Luanchuan County Jiuyang Mining Co., Ltd. ("Jiu Yang")	China	Luanchuan, Henan	Refining and sales of mineral	51.00	–	Investment establishment
Luanchuan County Sanqiang Molybdenum Tungsten Co., Ltd. ("San Qiang")	China	Luanchuan, Henan	products Refining and sales of mineral products	51.00	–	Investment establishment
Luoyang Mudulihao Business Co., Ltd. ("Mu Du Li Hao")	China	Luoyang, Henan	Hotel management	–	100.00	Investment establishment
Schmoke (Shanghai) International Trading Co., Ltd. ("Schmocke")	China	Shanghai	Import and export of goods and technology	100.00	–	Investment establishment
CMOC Mining USA LTD ("CMOC USA")	USA	USA	Consultancy	–	100.00	Investment establishment
CMOC overseas recruitment Entity – US ("CMOC ORE")	USA	USA	Consultancy	–	100.00	Investment establishment
Shanghai Ruichao Investment Co., Ltd ("Rui Chao")	China	Shanghai	Consulting and enterprise operating and management	–	100.00	Investment establishment
Tibet Schmocke Investment Co., Ltd. ("Tibet Schmocke")	China	Tibet	Consulting and asset management and sales	–	100.00	Investment establishment
Upnorth Investment Limited("Upnorth")	China	BVI	Investment & Holding	–	100.00	Investment establishment
Beijing Yongbo Resources Investment holding Co., Ltd. ("Beijing Yongbo")	China	Beijing	Consulting and asset management and sales	100.00	–	Investment establishment
CMOC DRC Limited ("CMOC DRC")	Hong Kong, China	Hong Kong, China	Mining services	–	100.00	Investment establishment
CMOC UK Limited ("CMOC UK")	UK	UK	Mining services and sales	–	100.00	Investment establishment
CMOC Luxembourg S.A.R.L.("CMOC LUXEMBOURG")	Luxembourg	Luxembourg	Investment & Holding	–	100.00	Investment establishment
CMOC Brasil	Brasil	Brasil	Mining, processing and sales	–	100.00	Investment establishment
Long March No. 1 Investment Limited ("Long March")	China	Hong Kong, China	Investment & Holding	–	100.00	Investment establishment
Bandra Investment Limited ("Bandra")	China	BVI	Investment & Holding	–	100.00	Investment establishment
CMOC International DRC Holdings Limited ("CIDHL")	Bermuda	Bermuda	Investment & Holding	–	100.00	Business combination not involving enterprises

under common control

	Main	Place of	Nature of	Shareholding ratio (%)		Acquisition
Name of the subsidiary	business site	incorporation	business	Direct	Indirect	method
TF Holdings Limited ("TFHL")	Bermuda	Bermuda	Investment & Holding	–	100.00	Business combination not involving enterprises under common control
Tenke Fungurume Mining S.A. ("TFM")	Congo (DRC)	Congo (DRC)	Mining and processing	–	80.00	Business combination not involving enterprises under common control
Purveyors South Africa Mine Services CMOC ("CMOC South Africa")	The Republic of South Africa	The Republic of South Africa	Logistics transportation	–	100.00	Business combination not involving enterprises under common control
Oriental Red Investment Limited	BVI	BVI	Investment & Holding	–	100.00	Investment establishment
Natural Resource Elite Investment Limited ("NREIL")	Hong Kong, China	Hong Kong, China	Investment & Holding	–	100.00	Investment establishment
New Frontier Elite Investment Limited ("NRFIL")	Hong Kong, China	Hong Kong, China	Investment & Holding	–	100.00	Investment establishment
BHR Newwood Investment Management Limited ("BHR")	BVI	BVI	Investment & Holding	–	100.00	Business combination not involving enterprises under common control
BHR Newwood DRC Holding Ltd ("DRC Holding")	BVI	BVI	Investment & Holding	–	100.00	Business combination not involving enterprises under common control
Ningbo Baiya Investment Co., Ltd.	China	Ningbo, Zhejiang	Investment management	–	100.00	Investment establishment
CMOC Congo	Congo (DRC)	Congo (DRC)	Consulting services	–	100.00	Investment establishment
Congo Construction Company SARL	Congo (DRC)	Congo (DRC)	Refining and sales of mineral products	–	100.00	Business combination not involving enterprises under common control
CMOC Capital Limited ("CMOC Capital")	BVI	BVI	Investment &	–	100.00	Investment
CMOC BHR Limited	Hong Kong,	Hong Kong,	Holding Investment &	–	100.00	establishment Investment
Luoyang High-tech Molybdenum & Tungsten Materials Co., Ltd. ("High-tech")	China China	China Luoyang, Henan	Holding Production, processing and sales of metal products	100.00	–	establishment Business combination not involving enterprises under common control
Shanghai Aoyide Trading Co., Ltd. ("Shanghai Aoyide")	China	Shanghai	Domestic non ferrous trading	–	100.00	Investment establishment

	Main	Place of	Nature of	Shareholding ratio (%)		Acquisition
Name of the subsidiary	business site	incorporation	business	Direct	Indirect	method
Luoyang Dinghong Trading Co., Ltd. ("Dinghong")	China	Luoyang, Henan	Trading of metal materials and mineral products etc.	–	100.00	Investment establishment
Ridgeway Commodities S.A.	Switzerland	Switzerland	Metal trading	–	100.00	Investment
IXM Holding S.A.	Switzerland	Switzerland	Investment & Holding	–	100.00	establishment Business combination not involving enterprises under common control
CMOC Metals Holding Limited	Hong Kong,	Hong Kong,	Investment &	–	100.00	Investment
IXM B.V.& ITS SUBSIDIARY	China Switzerland	China Netherlands	Holding Metal trading	–	100.00	establishment Business combination not involving enterprises under common control
W-Source Holding Limited	Hong Kong, China	Hong Kong, China	Investment & Holding	–	100.00	Business combination not involving enterprises under common control
Shanghai Donghe Trading Co., Ltd.	China	Shanghai	Trading of metal materials and mineral products etc.	–	100.00	Investment establishment
Jenny East Holding Ltd	Bermuda	Bermuda	Investment & Holding	–	100.00	Business combination not involving enterprises under common control
Kisanfu Holding Ltd	Bermuda	Bermuda	Investment & Holding	–	100.00	Business combination not involving enterprises under common control
Phelps Dodge Conge S.A.R.L.	Congo (DRC)	Congo (DRC)	Mining and processing	–	95.00	Business combination not involving enterprises under common control
Shanghai Moju Engineering & Consulting Co., Ltd.	China	China	Consultancy	–	100.00	Investment establishment
Shanghai Fuyi Engineering & Consulting Co., Ltd.	China	China	Consultancy	–	100.00	Investment establishment
CMOC Singapore Pte. Ltd.	Singapore	Singapore	Metal trading	–	100.00	Investment
KFM Holding Limited	Hong Kong,	Hong Kong,	Investment &	–	100.00	establishment Investment
Kisanfu Africa Holding (Pty) Limited	China South Africa	China South Africa	Holding Investment & Holding	–	100.00	establishment Investment establishment

(2) Significant non-wholly owned subsidiaries

Unit: RMB

Name of the subsidiary	Minority shareholder's shareholding ratio (%)	Profit or loss attributable to minority interests in the current period	Dividends distributed to minority shareholders in the current period	Closing balance of minority interests
TFM	20	433,315,622.55	165,417,320.60	5,363,430,781.43

(3) Key financial information of significant non-wholly owned subsidiaries

Unit: RMB

			30 June 2021						31 December 2020
Name of the	Current	Non-current	Total	Current	Non-current	Total	Current	Non-current	Total	Current	Non-current	Total
subsidiary	assets	assets	Assets	liabilities	liabilities	liabilities	assets	assets	Assets	liabilities	liabilities	liabilities
TFM	8,812,609,996.04	32,445,210,685.39	41,257,820,681.43	2,845,928,275.48	11,594,738,498.73	14,440,666,774.21	6,827,422,443.12	33,669,888,767.71	40,497,311,210.83	1,587,457,897.15	13,165,708,978.63	14,753,166,875.78
					Amount for the current period					Amount for the prior period
Name of the subsidiary			Operating income	Net profit	Total comprehensive	income	Cash flow from operation activities	Operating income	Net profit	Total comprehensive	income	Cash flow from operation activities

TFM 7,091,125,575.66 2,166,578,112.62 2,166,578,112.62 2,278,624,699.98 4,410,195,525.95 -6,464,077.91 -6,464,077.91 875,587,877.13

2. Interest in joint ventures and associates

(1) Significant joint ventures and associates

Unit: RMB

Name	Main business site	Place of incorporation	Nature of business=	Shareholding ratio (%) Direct	Indirect	Accounting treatments for investments in joint ventures or associates
Huan Yu	Xuzhou, Jiangsu	Xuzhou, Jiangsu	Investment	50	–	Equity method
Yulu Mining (Note)	Luoyang, Henan	Luoyang, Henan	Refining and sales of mineral products	40	–	Equity method
Huayue Nickel Cobalt	Indonesia	Indonesia	Refining and sales of mineral products	–	30	Equity method

Note: According to the resolution of shareholders' meeting in 2007 of Yulu Mining Co., Ltd., both investment parties share net profits of the company by ratio of 1 to 1 from 2008. Therefore, the Group actually shares 50% of profits or losses of Yulu Mining under equity method.

(2) Major financial information of key joint ventures

Unit: RMB

	30 June 2021/ Jan.-Jun.2021 Huan Yu (Note 1)	30 June 2020/ Jan.-Jun.2020 Huan Yu (Note 1)
Current assets Including: cash and cash equivalents Non-current assets	439,022,613.51 26,180,253.38 2,466,658,741.90	261,826,141.05 9,495,437.55 2,638,904,311.20
Total assets	2,905,681,355.41	2,900,730,452.25
Current liabilities Non-current liabilities	1,171,772,608.18 358,045,405.11	1,024,340,241.40 458,045,405.11
Total liabilities	1,529,818,013.29	1,482,385,646.51
Minority interests Equity attributable to equity holders of the Company	-49,174,419.97 1,425,037,762.09	-59,349,212.52 1,477,694,018.26
Share of net assets calculated based on shareholding proportion Adjusting events (Note 2) – Others Carrying amount of equity investments in joint ventures	712,518,881.05 -7,348,739.32 -7,348,739.32 705,170,141.73	738,847,009.13 4,752,594.36 4,752,594.36 743,599,603.49
Fair value of equity investments of joint ventures where there is quoted price	N/A	N/A
Operating income Financial expenses Income tax expenses Net profit Profit from discontinued operations Other comprehensive income Total comprehensive income	477,499,412.39 24,347,577.80 5699283.94 91,853,319.67 – – 91,853,319.67	100,574,427.59 33,688,405.22 – -35,031,229.73 – – -35,031,229.73

Dividends received from joint ventures in the current year – –

Note 1: Huan Yu, a joint venture of the Group, has 90% equity interest of Fu Chuan; meanwhile, through its subsidiary Fu Kai, the Group holds the remaining 10% interests of Fu Chuan.

Note 2: According to the agreement with local government, the local government shares 8% dividend rights of Fu Chuan. Therefore, the Group actually shares 47% of profit or loss of Fu Chuan under equity method.

(3) Major financial information of significant associates

Unit: RMB

	30 June 2021/ Jan. -Jun.2021 Yulu Mining Huayue Nickel Cobalt (Note)		30 June 2020/ Jan. -Jun.2020 (Note)	Yulu Mining Huayue Nickel Cobalt
Current assets Including: ca sh and cash	143,094,498.41	381,600,020.93	155,929,030.34	146,957,754.96
equivalents Non-current assets	462,844.04 49,223,794.60	185,434,052.47 4,806,738,807.57	312,295.86 51,063,721.79	70,230,215.54 2,954,002,024.60
Total assets	192,318,293.01	5,188,338,828.50	206,992,752.13	3,100,959,779.56
Current liabilities Non-current liabilities	19,851,375.35 500,000.00	3,519,351,186.11 /	28,950,764.97 /	1,394,502,488.63 /
Total liabilities	20,351,375.35	3,519,351,186.11	28,950,764.97	1,394,502,488.63
Minority interests Equity attributable to equity holders of the Company Share of net assets calculated based on shareholding	/ 171,966,917.66	/ 1,668,987,642.39	/ 178,041,987.16	/ 1,706,457,290.93
proportion Adjusting events – Others Carrying amount of equity	68,786,767.06 6,617,390.93 6,617,390.93	500,696,292.72 15,402,301.09 15,402,301.09	71,216,794.86 7,183,189.59 7,183,189.59	511,937,187.30 2,895,151.23 2,895,151.23
investments in associates Fair value of equity investments of associates where there is quoted price	75,404,157.99 N/A	516,098,593.81 N/A	78,399,984.45 N/A	514,832,338.53 N/A
Operating income Financial expenses Income tax expenses Net profit Net profit from discontinued operations Other comprehensive income	153,078,725.11 -72,641.32 12,307,017.11 84,803,720.50 / /	/ -8,722,411.19 / 6,529,412.59 / /	155,558,888.22 / / 88,008,926.06 / /	/ / / -28,793,759.40 / /
Total comprehensive income	84,803,720.50	6,529,412.59	88,008,926.06	-28,793,759.40
Dividends received from associates in the current period	45,600,000.00	/	75,800,000.00	/

Note: Although the Group holds 40% equity interest of Yulu Mining, but shares 50% dividend rights. Refer to Note V.10 for the details.

3. Significant joint operation

	Principal operating	Registration	Business	Shareholding proportion/shares (%)
Name of joint operation	place	place	nature	Direct	Indirect
Northparkes Joint Venture ("NJV") (Note)	Australia	Australia	Copper gold mining	–	80

Note: On 1 December 2013, the Company had completed acquiring 80% joint control interests of unincorporated joint venture in Northparkes Copper gold mining and some relevant assets related to Copper gold mining business of NJV held by North Mining Limited. Afterwards, the unincorporated joint venture NJV became a joint operation of the Company.

Northparkes mine held by NJV is a quality Copper and gold mining operation with advanced mining method of block caving in Goonumbla, situated northwest of the town of Parkes in New South Wales, Australia. The Northparkes mine started operating from 1993 and the remaining useful life is more than 20 years. The headquarters of NJV is located in the town of Parkes in New South Wales, Australia. The 80% interest of NJV under joint control is held by CMOC Mining, a subsidiary of the Company. The remaining 20% interest is held by Sumitomo Metal Mining Oceania Pty Ltd ("SMM") and SC Mineral Resources Pty Ltd ("SCM").

Pursuant to the NJV Management Agreement, the Company as the manager arranges the daily operation of the Northparkes mine which is held by the Company, as joint controllers of NJV, and both parties of the joint ventures are responsible for the assets and liabilities according to their respective proportion. The joint ventures have agreed to protect the rights of individual party (including their respective shares of the production volume) from the event of default by any other joint venture to ensure the benefits of all parties.

VIII. RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS

The Group's major financial instruments include cash and bank balances, held-for-trading financial assets,derivative financial assets, accounts receivable, financing receivables, other receivables, other current assets, other investments in equity instruments, other non-current financial assets, non-current derivative financial assets, other non-current assets, held-for-trading financial liabilities, derivative financial liabilities, notes payable, accounts payable, other payables, borrowings, other current liabilities, non-current derivative financial liabilities, non-current liabilities due within one year, bonds payable, and other non-current liabilities, etc. Details of these financial instruments are disclosed in Note VII. The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure the risks are monitored within a certain range.

RMB'000

	30 June 2021	31 December 2020
Financial assets
At fair value through profit or loss
Held-for-trading financial assets	7,644,893	7,435,129
Derivative financial assets	1,944,249	2,060,111
Other non-current financial assets	4,069,331	4,678,192
Non-current derivative financial assets At fair value through other comprehensive income	1,677,480	–
Financing receivables	415,022	405,698
Other equity instrument investment	86,213	86,214
At amortized cost
Cash and bank balances	19,427,350	16,947,648
Accounts receivable	991,616	702,194
Other receivables	790,316	592,403
Other current assets	3,151,249	4,460,260
Other non-current assets	2,219,480	1,712,116
Financial liabilities
At fair value through profit or loss Held-for-trading financial liabilities	4,951,067	4,291,951
Derivative financial liabilities	3,962,469	5,021,780
Non-current derivative financial liabilities	388,920	417,159
At amortized cost
Short-term loan	25,457,861	20,464,481
Notes payable	681,852	627,938
Accounts payable	1,272,662	876,915
Other payables	3,661,351	1,599,241
Non-current liabilities due within one year	3,789,830	5,091,055
Other current liabilities	–	2,000,000
Long-term borrowings	16,316,179	15,360,373
Bonds payable Other non-current liabilities	3,615,025 33,054	3,631,225 33,671

The Group adopts sensitivity analysis technique to analyze how the profit or loss for the period or shareholders' equity would have been affected by reasonably possible changes in the relevant risk variables. As it is unlikely that risk variables will change in an isolated manner, and the interdependence among risk variables will have significant effect on the amount ultimately influenced by the changes in a single risk variable, the following are based on the assumption that the change in each risk variable is on a stand-alone basis.

1. Risk management objectives and policies

The Group's risk management objectives are to achieve a proper balance between risks and benefits, and minimize the adverse impacts of risks on the Group's operation performance, and maximize the benefits of the shareholders and other stakeholders. Based on these risk management objectives, the Group's basic risk management strategy is to identify and analyze the Group's exposure to various risks, establish an appropriate maximum tolerance to risk and practice risk management, and monitors these exposures regularly and effectively to ensure the risks are controlled within a certain range.

1.1 Market risk

1.1.1. Foreign exchange risk

Foreign exchange risk refers to the risk of loss due to exchange rate changes. The Group is subject to foreign exchange risk mainly related to USD, HKD, EUR, CAD, RMB, BRL, GBP, ZAR, SGD, CDF, CHF and AUD. The Group's subsidiaries in the PRC use RMB for settlement of their principal business activities. The Group's subsidiaries in Australia mainly use AUD or USD for settlement, the Group's Niobium and Phosphorus businesses in Brazil are principally settled in USD and BRL and the Group's Copper-Cobalt business in Congo (DRC) is principally settled in USD and CDF. Foreign currency transactions are mainly financing activities of domestic and Hong Kong subsidiaries settled in USD, operating activities of subsidiaries in Australia of which the functional currency is USD settled in AUD, operating activities of subsidiaries in Brazil of which the functional currency is USD settled in BRL, and operating activities of subsidiaries in Congo (DRC) of which the functional currency is USD settled in CDF. The Group pays close attention to the influence of exchange rate on the foreign exchange risk, and meanwhile manages the foreign exchange risk by buying forward foreign exchange contracts and foreign exchange options contracts. Please refer to Note V. 3, 13, and 24 for the details.

As at 30 June 2021, except for the financial assets and liabilities balance of each entity mentioned below use USD, HKD, AUD, EUR, CAD, RMB, BRL, GBP, CDF, ZAR, SGD, AED, CHF, CLP, MXN, NAD, PEN, PLN and TRY (converted to RMB) as functional currency, the Group's financial assets and financial liabilities are settled on the basis of the functional currency of each entity. The foreign exchange risk arising from the assets and liabilities of such foreign currency balances may have an impact on the Group's operating results.

RMB'000

Item	30 June 2021	31 December 2020
USD Cash and bank balances Short-term borrowings	154,309 (1,476,179)	14,969 (195,747)
Sub-total	(1,321,870)	(180,778)
HKD Cash and bank balances	3,052	6,183
Sub-total	3,052	6,183
AUD Cash and bank balances	68,845	47,463
Sub-total	68,845	47,463
EUR Cash and bank balances	10,804	6,406
Sub-total	10,804	6,406
CAD Cash and bank balances	6,282	6,176
Sub-total	6,282	6,176
RMB Cash and bank balances Long-term borrowings	2,921 (700,000)	296,675 (700,000)
Sub-total	(697,079)	(403,325)
BRL Cash and bank balances	157,333	72,254
Sub-total	157,333	72,254
GBP Cash and bank balances	3,029	18,074
Sub-total	3,029	18,074
CDF Cash and bank balances	1,110	2,474
Sub-total	1,110	2,474

Item	30 June 2021	31 December 2020
ZAR
Cash and bank balances	7,645	12,240
Sub-total	7,645	12,240
SGD
Cash and bank balances	1,025	921
Sub-total	1,025	921
AED
Cash and bank balances	5	5
Sub-total	5	5
CHF
Cash and bank balances	890	536
Sub-total	890	536
CLP
Cash and bank balances	47	70
Sub-total	47	70
MXN
Cash and bank balances Short-term borrowings	2,174 (82,782)	422 (50,494)
Sub-total	(80,608)	(50,072)
PEN Cash and bank balances	233	208
Short-term borrowings	(175,601)	(134,412)
Long-term borrowings Non-current liabilities due	(4,764)	(7,361)
within one year	(3,361)	(19,580)
Sub-total	(183,493)	(161,145)
PLN Cash and bank balances	–	32
Sub-total	–	32

Item	30 June 2021	31 December 2020
TRY
Cash and bank balances	3	277
Sub-total	3	277
Total	(2,022,923)	(622,152)

The following table sets out in detail the sensitivity of the Group to the 10% rate of change in the exchange rate when exchanging the foreign currencies with the functional currency (including RMB, USD, HKD, and BRL) of each entity. 10% ratio is used internally to report foreign exchange risk to the senior management, which represents the management's estimate of possible changes in the foreign exchange rate. Foreign exchange risk sensitivity analysis at the Group's reporting date is based on the changes on the settlement date and throughout the reporting period. A positive number indicates that an increase in profit before tax of a company with RMB as its functional currency is resulted from having USD assets and liabilities while RMB increases against those foreign currencies. A negative number indicates that a decrease in profit before tax of a company with HKD as its functional currency is resulted from having cash and bank balances denominated in USD and RMB while HKD increases against them, of a company with USD as its functional currency is resulted from having assets and liabilities denominated in AUD, HKD, EUR, CAD, RMB, BRL, GBP, CDF, ZAR, SGD, AED, CHF, CLP, MXN, NAD, PEN, PLN and TRY while USD increases against them. If the relevant functional currency decreases against these foreign currencies, it will have an opposite effect on the pre-tax profit. When performing the following sensitivity analysis, the Group does not consider the effect of existing forward foreign exchange contracts and foreign exchange options contracts.

RMB'000

			Jan. -Jun.2021		Jan. -Jun.2020
		Impact on	Impact on shareholders'	Impact on	Impact on shareholders'
Item	Changes in exchange rates	profit	equity	profit	equity
Entities choose RMB as functional currency
Pre-tax profit and equity	Depreciation by 10% of USD	132,643	132,643	121,705	121,705
	against RMB
Entities choose HKD as functional currency
Pre-tax profit and equity	Depreciation by 10% of USD against HKD	-456	-456	-1,060	-1,060
Depreciation by 10% of RMB against HKD Entities choose USD as		-92	-92	-92	-92
functional currency
Pre-tax profit and equity	Depreciation by 10% of AUD against USD	-6,885	-6,885	-17,423	-17,423
	Depreciation by 10% of HKD against USD	-305	-305	-175	-175
	Depreciation by 10% of EUR	-1,080	-1,080	-3,786	-3,786
	against USD
	Depreciation by 10% of CAD	-628	-628	-624	-624
	against USD Depreciation by 10% of RMB	69,800	69,800	69,756	69,756
	against USD
	Depreciation by 10% of BRL	-15,733	-15,733	-14,925	-14,925
	against USD
	Depreciation by 10% of GBP	-303	-303	-397	-397
	against USD Depreciation by 10% of CDF	-111	-111	-1,295	-1,295
	against USD
	Depreciation by 10% of ZAR	-764	-764	-859	-859
	against USD
	Depreciation by 10% of SGD against USD	-103	-103	-50	-50
	Depreciation by 10% of AED	–	–	-7	-7
	against USD
	Depreciation by 10% of CHF	-89	-89	-150	-150
	against USD
	Depreciation by 10% of CLP against USD	-5	-5	-41	-41
	Depreciation by 10% of MXN	8,061	8,061	-159	-159
	against USD
	Depreciation by 10% of NAD	-6	-6	-5	-5
	against USD
	Depreciation by 10% of PEN against USD	18,349	18,349	4,164	4,164
	Depreciation by 10% of PLN	–	–	-3	-3
	against USD
	Depreciation by 10% of TRY	–	–	-74	-74
	against USD

The management of the Group believes that closing date foreign currency risk cannot reflect the risk of the duration. Sensitivity analysis cannot reflect inherent foreign currency risk.

1.1.2. Interest rate risk

The Group's cash flow interest rate risk of financial instruments relates primarily to variablerate bank borrowings (see Note V. 33 for details). The Group paid close attention to the impact on cash flow change risks from the changes in interest rate and also hedges part of the interest rate risk assumed by the Group through interest rate swap contracts (see Note V. 66 for details).

Interest rate risk sensitivity analysis is based on the following assumptions:

• Changes in market interest rates affect the interest income or expense of floating rate financial instruments;

On the basis of the above assumptions, where all other variables are held constant, the reasonably possible changes in the interest rate may have the following pre-tax effect on the profit or loss for the year and shareholders' equity:

RMB'000

Item	Changes in interest rates	Effect on profit	Jan. -Jun.2021 Effect on shareholders' equity	Jan. -Jun.2020 Effect on profit	Effect on shareholders' equity
Floating interest rate	Increase 50 base points of interest rate	-111,667	-115,084	-114,463	-122,413
Floating interest rate	Decrease 50 base points of interest rate	111,667	115,084	114,463	122,413

1.1.3 Commodity price risk

International Copper prices and Cobalt prices have a significant impact on the operating results of the subsidiaries in Australia and Congo (DRC) of the Group. Copper and Cobalt prices fluctuated in the past and the factors causing fluctuation were uncontrollable by the Group. The Group has not hedged all risks of Copper and Cobalt price fluctuations. In addition, IXM engages in business related to metal trading platform, of which the operating result is significantly affected by the international price fluctuation of metals. IXM hedges the risk of the metal price fluctuation through commodity futures contract and commodity option contract. Details are set out in Note V. 3 and 24.

The table below shows the sensitivity analysis of the price of Copper and Cobalt on the balance sheet date, which reflects pre-tax impact of unpricing accounts receivable in the Group's subsidiaries in Australia and Congo (DRC) at the end of the year on the total profit and shareholders' equity when the market price of Copper and Cobalt is changed reasonably and possibly under the assumption that other variables remain unchanged.

RMB'000

Jan. -Jun.2021		Jan. -Jun.2020
Increase/		Effect on		Effect on
(decrease)	Effect on	shareholders'	Effect on	shareholders'
percentage	profit	equity	profit	equity
5%	4,049	4,049	2,864	2,864
-5%	-4,049	-4,049	-2,864	-2,864

RMB'000

		Jan. -Jun.2021		Jan. -Jun.2020
	Increase/		Effect on		Effect on
Item	(decrease) percentage	Effect on profit	shareholders' equity	Effect on profit	shareholders' equity
Market price of cobalt	5%	62,502	62,502	11,134	11,134
Market price of cobalt	-5%	-62,502	-62,502	-11,134	-11,134

1.1.4. Other price risk

The equity instrument investments held by the Group, including financial assets classified as other non-current financial assets measured at fair value at each balance sheet date. As at the end of the reporting period, the equity instrument investments held by the Group mainly comprise listed securities and assets management plans, therefore, the Group is directly or indirectly exposed to the risk of the fluctuation of securities market price. If equity price of the equity instrument investments directly or indirectly held by the Group at the end of the period increases or decreases by 5% while other variables remain the same, the interests of shareholders of the Group will increase or decrease by RMB70,331,000 at the end of the year (excluding the impact of income tax).

1.2. Credit risk

As at 30 June 2021, the Group's maximum exposure to credit risk which will cause a financial loss to the Group due to failure of other party to fulfill an obligation, including the book value of the financial assets has been recognized in the balance sheet of the Group.

In order to minimize the credit risk, the Group has specific personnel of the credit management department responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of financial assets at each balance sheet date to ensure that adequate expected credit losses are made for irrecoverable amounts. In this regard, the management of the Group considers that the Group's credit risk is significantly reduced.

Please refer to Note III for the Group's policies on assessment of significant increase in credit risk since initial recognition, basis for determination of credit impairment on financial assets, classification of financial instruments on expected credit loss on a portfolio basis, and direct writtendown of financial instruments.

The credit risk on the Group's monetary funds is limited because they are deposited with banks with high credit ratings. The Group holds bank acceptances and commercial acceptances. Of which, most bank acceptances are issued by banks with higher credit rating, therefore, management of the Group considers relevant credit risk on bank acceptances is low; all clients corresponding to commercial acceptances have long-term cooperation with the Group, relevant provision for impairment on credit risk is accounted for based on credit levels of counterparties. Details are set out in Note V. 5.

The Group only trades with well-known, creditworthy third parties. Total amount of top five entities with the largest balances of accounts receivable as at 30 June 2021 accounts for 33.38% of the amount of total accounts receivable (31 December 2020: 29.50%). Accounts receivable balances are monitored on an ongoing basis with the result that the Group's exposure to credit risk is controlled. Products are sold only to companies whose credit information is in an acceptable range. Credit limits have been set for most of the customers and they are monitored systematically. For overseas sales, letters of credit are generally in use. Details of analysis related credit risk is in Note V. 4.

In respect of credit risk arising from the other receivables, other current assets and other non-current assets, the Group's exposure to credit risk arising from default of counterparties is limited as most of the counterparties are entities with good credit standing and the Group does not expect any significant loss for uncollected advances to these entities. Details of analysis related credit risk is set out in Note V. 7, 9 & 21.

Unit: RMB'000

1.3. Liquidity risk

In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The following is the maturity analysis for financial liabilities held by the Group which is based on undiscounted remaining contractual obligations:

30 June 2021	Within 1 year	1–2 years	2–5 years	Over 5 years	Total
Non-derivative financial liabilities
Borrowings	25,540,885	6,963,322	10,746,385	–	43,250,592
Held-for-trading financial liabilities	4,951,067	–	–	–	4,951,067
Notes payable	681,852	–	–	–	681,852
Accounts payable	1,272,662	– –	– –	– –	1,272,662
Other payables	3,661,351	–	–	–	3,661,351
Non-current liabilities due within one year Other current liabilities	4,027,603				4,027,603
Bonds payable	–	2,746,328	1,168,000	–	3,914,328
Lease liabilities	–	54,338	114,191	62,597	231,126
Derivative financial instrument
Derivative financial liabilities	3,962,469	–	–	–	3,962,469
Non-current derivative financial liabilities	–	–	388,920	–	388,920
Total	44,097,889	9,763,988	12,417,496	62,597	66,341,970
					Unit: RMB'000
31 December 2020	Within 1 year	1–2 years	2–5 years	Over 5 years	Total
Non-derivative financial liabilities
Borrowings	21,078,416	3,262,619	13,491,283	–	37,832,318
Held-for-trading financial liabilities	4,291,951	–	–	–	4,291,951
Notes payable	627,938	–	–	–	627,938
Accounts payable	876,915	876,915
Other payables	1,599,241	–	–	–	1,599,241
Non-current liabilities due within one year	5,422,581	–	–	–	5,422,581
Other current liabilities	2,009,404	–	–	–	2,009,404
Bonds payable	/	2,812,550	1,187,717	/	4,000,267
Lease liabilities	/	82,918	103,426	73,840	260,184
Derivative financial instrument
Derivative financial liabilities	5,021,780	–	–	–	5,021,780
Non-current derivative financial liabilities	–	–	417,159	–	417,159
Total	40,928,226	6,158,087	15,199,585	73,840	62,359,738

IX. DISCLOSURE OF FAIR VALUE

1. The closing fair value of assets and liabilities measured at fair value

				Fair value on 30 June 2021
Item			Level 1 fair value	Level 2 fair value	Level 3 fair value	Total
I.		Persistent fair value measurement
	(I)	Held-for-trading financial assets
		1. Financial assets at FVTPL (1) Accounts receivable	–	6,599,328	–	6,599,328
		(2) Others	–	20,125	1,025,440	1,045,565
	(II)	Other investments in equity instruments	–	–	86,213	86,213
	(III)	Financing receivables	–	–	415,022	415,022
	(IV)	Other non-current financial assets
		1. En trusted wealth management products of non
		bank financial institutions	–	–	350,358	350,358
		2. En trusted wealth management products of banking financial institutions	–	–	132,845	132,845
		3. Share of partnership	–	–	1,769,474	1,769,474
		4. Share of funds	–	–	690,927	690,927
		5. Targeted asset management plan	–	–	1,029,002	1,029,002
		6. Equity of non-listed company	–	–	78,200	78,200
		7. Equity of listed company	18,525	–	–	18,525
	(V) (VI)	Derivative financial assets Inventory	970,642	922,404	67,381	1,960,427
		1. Trade inventory		16,849,411	–	16,849,411
		2. Consumable biological assets	–	–	28,777	28,777
		Total assets continuously measured at fair value	989,167	24,391,268	5,673,639	31,054,074
		(VII) Held-for-trading financial liabilities
		1. Financial liabilities at FVTPL	–	1,679,471	–	1,679,471
		Including: Li a b i l i t i e s a r i s i n g f r o m f o r w a r d
		commodity contracts and gold lease 2. Financial liabilities designated as at FVTPL	– –	1,679,471 3,271,596	– –	1,679,471 3,271,596
		Including: Accounts payable	–	3,271,596	–	3,271,596
		(VIII) Derivative financial liabilities	2,936,294	1,370,001	45,094	4,351,389
		Total liabilities measured continuously at fair value	2,936,294	6,321,068	45,094	9,302,456

2. Qualitative and quantitative information of valuation technique and key parameters used for items that are continuously and non-continuously measured at level 2 fair value

Items that are continuously measured at the second level of fair value are accounts receivable at FVTPL, trade inventories, derivative financial assets, held-for-trading financial liabilities and derivative financial liabilities, and the related fair value is determined with reference to the closing price and long-term offer of similar products and the yield rate of similar debt instruments in open market.

3. Qualitative and quantitative information of valuation technique and key parameters used for items that are continuously and non-continuously measured at level 3 fair value

Items that are continuously measured at the third level of fair value are held-for-trading financial assets, financing receivables, consumable biological assets, derivative financial assets, other investments in equity instruments, other non-current financial assets and derivative financial liabilities. The fair value of held-for-trading assets and wealth management products included in other non-current financial assets is measured based on the expected yield rate provided by the third party financial institution and discounting of the future cash flow. The fair value of consumable biological assets is measured based on the prices of same kind wood, the growth period of tree and the discounting of the subsequently input and maintenance fee. The fair value of financing receivables is based on the note discount rate provided by the third party financial institution and discounting of the future cash flow. The fair values of share of partnership, share of funds, directional capital management plan and equity in unlisted company included in other equity instrument and other non-current financial assets are determined based on the comparable company analysis, the agreed price for transfer or the valuation report provided by third-party financial institutions, or the financial statements provided by the investee with appropriate adjustments. The fair values of derivative financial assets and derivative financial liabilities are determined by management's application of option pricing model.

4. Fair value of financial assets and financial liabilities not measured at fair value

The management of the Group has assessed cash and bank balances, accounts receivable, other receivables, other current assets, short-term borrowings, notes payable, accounts payable, other payables, non-current liabilities due within one year, other current liabilities, etc. As the remaining term is not long, fair values approximate their book values.

The Group's financial liabilities subsequently not measured at fair value include other non-current liabilities. Financial liabilities include long-term borrowings and other non-current liabilities. The floating rates of the long-term borrowings of the Group are linked to market interest rates.

X. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS

1. Parent of the Company

Unit: RMB0'000

Name of the parent	Place of registration	Nature of business	Registered capital	Proportion of the Company's ownership interest held by the parent (%)	Proportion of the Company's voting power held by the parent (%)
Cathay Fortune Corporation	Shanghai	Investment management	18,181.82	24.69%	24.69%

Description of the parent of the Company

On 12 January 2014, the Company received the Notice of Change of Control Rights of Luoyang Luanchuan Molybdenum Group Co., Ltd. from the shareholders Cathay Fortune Corporation ("CFC") and Luoyang Mining Group Co., Ltd. ("LMG"), notifying that CFC increased its shareholding H shares of the Company in the secondary market through its wholly-owned subsidiary, Cathy Fortune Investment, incorporated in Hong Kong. Upon completion, CFC and its persons acting in concert totally hold 1,827,706,322 shares of the Company (approximately 36.01% of the total share capital of the Company), surpassing 1,776,594,475 shares (approximately 35.01% of the total share capital of the Company) held by the original largest shareholder LMG, and become the Company's largest shareholder. CFC and LMG exchanged views on the change of control of the Company. LMG confirmed that it no longer had control over the Company and had no intention to increase its shareholding in the Company. Therefore, the controlling shareholder of the Company changed to CFC.

As at 30 June 2021, CFC actually holds 5,333,220,000.00 shares of the Company accounting for 24.69% of the total share capital of the Company.

CFC is the ultimate controller of the Company.

2. Subsidiaries of the Company

For details of the subsidiaries of the Company, please refer to Note VII. 1.

3. Associates and joint ventures of the Company

For details of associates and joint ventures of the Company, please refer to Note VII. 2.

Other associates or joint ventures which have transactions with the Company in the current period or in previous years with balances are as follows:

Associates or joint ventures	Relationship with the Company
Fu Chuan Mining	A subsidiary held by joint venture
Yulu Mining	Associate
Luoyang Shenyu	Associate
Huayue Nickel Cobalt	Associate
You Qing	Associate

4. Other related parties

Other related parties	Relationship with the Company
LMG	Shareholder of the Company
CFC	Shareholder of the Company
Shanghai Shangju Industrial Co., Ltd.	Subsidiary of shareholder
Shanghai Yunsheng International Trade Co., Ltd.	Subsidiary of shareholder

Note: Gécamines is an investor who holds 20% of the shares of TFM, a subsidiary of the Group. According to the Accounting Standards for Business Enterprises No. 36 – Disclosure of Related Parties, Rules Governing the Listing of Stocks on Shanghai Stock Exchange and the principle of substance over form, the Company believes that Gécamines does not constitute a related party of the Group. Starting from 2020, the Group will no longer disclose transactions with Gécamines.

5. Related party transactions

(1) Sales and purchase of goods, rendering and receipt of services

Purchase of goods/receipts of services

Unit: RMB

Related party	Details of transaction	Jan. -Jun. 2021	Jan. -Jun. 2020
Luoyang Shenyu	Purchase of products	2,007,472.00	–
Fuchuan Mining	Purchase of products	381,738,960.96	99,795,482.95
Fuchuan Mining	Purchase of service	2,387,006.46	–
Yulu Mining	Purchase of products	28,934,129.25	–

Sales of goods/rendering of services

Unit: RMB

Related party	Details of transaction	Jan. -Jun. 2021	Jan. -Jun. 2020
Luoyang Shenyu	Sales of products	25,145,234.79	17,729,655.05
Luoyang Shenyu	Rendering of service	476,190.46	–
Yulu Mining	Sales of products	11,339,507.98	7,241,602.16
Fuchuan Mining	Sales of products	245,751,783.94	–
Fuchuan Mining	Rendering of service	5,482,629.95	–
Huayue Nickel Cobalt	Interest income	23,522,905.98	–

(2) Lease

The Company as lessee:

Unit: RMB

Lessor	Category of leased assets	Lease expenses confirmed in the current period	Lease expenses confirmed in the prior period
Shanghai Shangju Industrial Co., Ltd. Shanghai Yunsheng	Building	5,559,278.11	–
International Trade Co., Ltd.	Building	3,628,024.95	–

On 29 January 2021, the 16th extraordinary meeting of the Company's fifth board meeting deliberated and approved the Proposal on the Signing of the House Leasing Framework Agreement between the Company and Cathay Fortune Corp. and Daily Related/Continuous Related Transactions. Pursuant to the Framework Agreement, the upper limit of daily related transaction leasing business in 2021, 2022 and 2023 is RMB30 million per year. For details, please refer to the relevant announcements issued by the information disclosure media the Company designates.

(3) Borrowings/loans with related parties

Unit: RMB

Related party	Amount of borrowing/loan	Inception date	Maturity date
Lent to: Huayue Nickel Cobalt	666,392,969.38	January to June 2021	Two years after the withdrawals date

Note: Amount of borrowing is the amount lent out for the current period.

(4) Compensation for key management personnel

		Unit: RMB'000
Item	Jan. -Jun. 2021	Jan. -Jun. 2020
Compensation for key management
personnel	35,566	17,210

6. Amounts due from/to related parties

(1) Receivables

30 June 2021 31 December 2020 Item Related party Carrying amount Bad debt provision Carrying amount Bad debt provision Accounts receivable Fu Chuan Mining 143,712,402.46 – – – Accounts receivable Yulu Mining 49,881.44 – – – Other receivables Luoyang Shenyu 346,784.31 – 583,333.33 – Other receivables Fu Chuan Mining 9,766,675.60 – 3,755,087.85 – Other receivables You Qing – – 508,536.00 – Prepayments Fu Chuan Mining 143,392,360.03 – 130,506,458.61 – Interest receivable Huayue Nickel Cobalt 36,336,876.55 – 13,061,072.16 – Other non-current assets Huayue Nickel Cobalt 1,081,224,565.24 – 414,831,595.86 –

(2) Payables

Unit: RMB

Item	Related party	30 June 2021	31 December 2020
Accounts payable	Fu Chuan Mining	108,156,394.62	17,336,117.62
Accounts payable	Yulu Mining	10,021,710.50	–
Other payables	Fu Chuan Mining	90,000.00	11,455,538.22
Interest payable	Fu Chuan Mining	259,897.66	145,841.33

XI. SHARE-BASED PAYMENT

1. Summary of share-based payments

Unit: Share Currency: RMB

Total number of the Company's equity instruments granted during the period	48,513,287
Total number of the Company's equity instruments vested during the period	0
Total number of the Company's equity instruments lapsed during the period	0
Range of exercise prices and remaining contractual life of the Company's share options
outstanding at the end of the period	N/A
Range of exercise prices and remaining contractual life of the Company's other equity
instruments outstanding at the end of the period	N/A

2. Equity-settled share-based payments

The method of determining the fair value of equity instruments at the grant date	At the closing price of the Company's A shares on the grant date less the exercise price of restricted stocks
Basis for determining the number of exercisable equity instruments	Number of employees receiving incentives at the end of the period
Reasons for the significant difference between the estimate in the current period and that in the prior period	N/A
Amounts of equity-settled share-based payments accumulated in capital reserve	-87,805,244.60
Total expenses recognized arising from equity-settled share-based payments	9,008,647.88

RMB'000

XII. COMMITMENTS AND CONTINGENCIES

1. Significant commitments

(1) Capital commitment

	30 June 2021	31 December 2020
Contracted but not recognized in the financial statements: – Commitment for acquisition and construction of long-term assets – Commitment for investment (Note)	1,861,639 382,915	1,512,479 164,986
Total	2,244,554	1,677,465

Note: The above commitment for investment included the Group's investment in two other non-current financial assets.

As of 30 June 2021, the Group had no other commitments that need to be disclosed.

2. Contingencies

(1) Significant contingencies at the balance sheet date

Pending litigation

Copper-Cobalt business of the Group in Congo (DRC)

The Group's Copper-Cobalt business in Congo (DRC) may have some lawsuits, claims and liability claims in the daily business. The management considers that the results of such contingencies will not have a material adverse effect on the financial position, operating performance or cash flows of the business based on the information currently available.

The Group's Niobium-Phosphorus business in Brazil

The Group's Niobium-Phosphorus business in Brazil may face various litigations and disputes in its daily business activities. The management determines the possibility of losing and consequent economic benefits outflow in accordance with the information available and the professional advice of external legal experts. If the possibility of economic benefits outflow was low, the management would determine as contingencies. The results of such contingencies will not have a material adverse effect on the financial position, operating performance or cash flows of the business based on the information currently available.

Guarantees

As at 30 June 2021, the Group provides guarantees for the Australian Northparkes copper and gold mine business to Southwest Welsh government agencies of Australia, with guaranteed amount of AUD 47,040,000 (equivalent to RMB228,280,000). The relevant business venture agrees to any liability of the business compulsory executed from this guarantee. As at 30 June 2021, no material guarantee responsibility was undertaken.

During the period, IXM, a subsidiary of the Group, provided guarantee for a supplier to assist it in getting credit facility of USD50,000,000 from the bank. The upper limit of guarantee undertaken by IXM in the relevant guarantee arrangements is limited to 5.0% of the total outstanding principal and interest under the relevant credit facilities, and IXM has no obligation for the remaining principal and interest under these credit facilities. As at 30 June 2021, the draw-down of the relevant credit facilities in accordance with the guarantee obligations of the Group is USD710,000 (equivalent to RMB4,580,000) and corresponding interest.

(2) Except for the above events, the Company has no other significant events that need to be disclosed.

XIII. OTHER SIGNIFICANT EVENTS

1. Segment information

(1) Reporting segment's determination basis and accounting policies

The management divided the Group's business into six (2020: six) operating segments, namely Molybdenum Tungsten related products, Copper and gold-related products, Niobium and Phosphorus related products, Copper and Cobalt related products, metal business and others on the basis of the Group's internal organization structure, management requirements and internal reporting system. The Group's management evaluates the operating results of these segments regularly, in order to determine the allocation of resources and assess their performance.

These reporting segments are determined on the basis of internal management and reporting system. Information of segment reporting is disclosed according to segment accounting policies and measurement standards. The measurement basis should be consistent with that of financial statements.

(2) Reporting segment's financial information

Jan.– Jun 2021

Item	Molybdenum & tungsten related products	Copper & gold related products	Niobium and Phosphorus related products	Copper & Cobalt related products	Metal trading	Others	Unallocated items	Intersegment eliminations	Total
Operating income External income Inter-segment income	2,596,501 –	658,496 –	2,545,729 –	6,060,092 –	72,700,182 –	254,930 –	– –	– –	84,815,930 –
Total segment operating income	2,596,501	658,496	2,545,729	6,060,092	72,700,182	254,930	–	–	84,815,930
Total operating income in the financial statements	2,596,501	658,496	2,545,729	6,060,092	72,700,182	254,930	–	–	84,815,930
Operating cost Taxes and levies Selling expenses Administrative expenses	1,694,166 – – –	442,130 – – –	1,760,798 – – –	2,997,323 – – –	68,690,215 – – –	232,026 – – –	– 527,867 37,416 684,667	– – – –	75,816,658 527,867 37,416 684,667
Research and development expenses Financial expenses Less: Im pairment losses of	– –	– –	– –	– –	– –	– –	64,365 555,136	– –	64,365 555,136
assets Credit impairment losses Gains from changes	– –	– –	– –	– –	– –	– –	-37,041 -1,502	– –	-37,041 -1,502
in fair value Investment income Gains (losses) from disposal of assets	– – –	– – –	– – –	– – –	– – –	– – –	-2,851,032 100,644 -250	– – –	-2,851,032 100,644 -250
Other income Segment operating profit	– –	– –	– –	– –	– –	– –	19,567 4,360,207	– –	19,567 4,360,207
Operating profit in the financial statements Add: No n-operating	–	–	–	–	–	–	4,360,207	–	4,360,207
income Less: No n-operating expenses	– –	– –	– –	– –	– –	– –	18,841 19,361	– –	18,841 19,361
Total profit Less: In come tax	–	–	–	–	–	–	4,359,687	–	4,359,687
expenses Net profit	– –	– –	– –	– –	– –	– –	1,526,414 2,833,273	– –	1,526,414 2,833,274

Jan. – Jun 2020

Item	Molybdenum & tungsten related products	Copper & gold related products	Niobium and Phosphorus related products	Copper & Cobalt related products	Metal trading	Others	Unallocated items	Intersegment eliminations	Total
Operating income External income Inter-segment income	2,009,138	640,110	2,142,076	4,296,670	37,458,456	197,407	–	–	46,743,857
Total segment operating income	2,009,138	640,110	2,142,076	4,296,670	37,458,456	197,407	–	–	46,743,857
Total operating income in the financial statements	2,009,138	640,110	2,142,076	4,296,670	37,458,456	197,407	–	–	46,743,857
Operating cost Taxes and levies Selling expenses Administrative expenses	1,245,174 – – –	513,699 – – –	1,777,868 – – –	3,862,014 – – –	38,498,884 – – –	144,595 – – –	– 473,524 42,397 652,396	– – – –	46,042,234 473,524 42,397 652,396
Research and development expenses Financial expenses Less: Im pairment losses of assets	– – –	– – –	– – –	– – –	– – –	– – –	45,276 695,451 10,936	– – –	45,276 695,451 10,936
Credit impairment losses Gains from changes	–	–	–	–	–	–	-692	–	-692
in fair value Investment income Gains (losses) from disposal of assets	– – –	– – –	– – –	– – –	– – –	– – –	1,402,251 126,539 5,990	– – –	1,402,251 126,539 5,990
Other income Segment operating profit	– –	– –	– –	– –	– –	– –	12,913 2,221,602	– –	12,913 350,516
Operating profit in the financial statements	–	–	–	–	–	–	2,221,602	–	350,516
Add: Non-operating income Less: Non-operating expenses	– –	– –	– –	– –	– –	– –	5,483 5,456	– –	5,483 5,456
Total profit Less: In come tax	–	–	–	–	–	–	2,221,629	–	350,543
expenses Net profit	– –	– –	– –	– –	– –	– –	-651,606 2,873,235	– –	-651,606 1,002,149

XIV. NOTES TO MAJOR ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS

1. Accounts receivable

		Unit: RMB
Category	30 June 2021	31 December 2020
Accounts receivable – At amortized cost	747,336,104.64 747,336,104.64	365,342,418.35 365,342,418.35
Total	747,336,104.64	365,342,418.35

Disclosure by categories based on the method of bad debt provision

Bad debt provision is made using general model of expected credit loss:

Al 30 June 2021, the Company's loss allowance for accounts receivable provided based on expected credit loss is as follows:

Gross amount	Impairment provision	Carrying amount
749,562,034.02	2,225,929.38	747,336,104.64

AL 31 December 2020, the Company's loss allowance for accounts receivable provided based on expected credit loss is as follows:

Unit: RMB

Unit: RMB

Gross amount	Impairment provision	Carrying amount
367,442,563.98	2,100,145.63	365,342,418.35

Movement of provision for expected credit loss/bad debt of accounts receivable is as follows:

	Lifetime ECL (not credit impaired)	Lifetime ECL (credit-impaired)	Total
1 January 2021 Expected credit loss charged for the period Reversal of ECL for the period	49,330.04 175,113.79 -49,330.04	2,050,815,59 – –	2,100,145.63 175,113.79 -49,330.04
30 June 2021	175,113.79	2,050,815,59	175,113.79

2. Other receivables

Unit: RMB

Unit: RMB

Item	30 June 2021	31 December 2020
Interest receivable Dividends receivable Other receivables	409,377,370.34 294,006,084.08 3,268,599,732.09	468,074,888.87 44,006,084.08 3,170,568,218.33
Total	3,971,983,186.51	3,682,649,191.28

Interest receivable

Categories of interest receivable

Item	30 June 2021	31 December 2020
Term deposits	153,013,847.28	104,181,858.50
Intra-group interest receivable	254,110,052.03	286,289,665.61
Step deposit interest	2,253,471.03	77,603,364.76
Total	409,377,370.34	468,074,888.87

Dividends receivable

Unit: RMB

Item (or investee)	30 June 2021	31 December 2020
Jiu Yang San Qiang Da Dong Po Ye Lian Wu Ye	26,993,751.76 10,118,892.09 6,893,440.23 134,000,000.00 116,000,000.00	26,993,751.76 10,118,892.09 6,893,440.23 – –
Total	294,006,084.08	44,006,084.08

Other receivables

(1) Categories by nature

Unit: RMB

Nature	30 June 2021	31 December 2020
Deposits Intra-group balances Others	3,000,000.00 3,237,374,303.85 51,227,239.06	3,000,000.00 3,146,882,586.80 43,543,104.58
Total	3,291,601,542.91	3,193,425,691.38

(2) Bad debt provision

At the end of the period, other receivables with impairment provision recognized by the Company based on the expected credit loss are as follows:

			Unit: RMB
	Gross amount	Impairment provision	Carrying amount
Other receivables with impairment provision recognized based on the expected credit loss	3,291,601,542.91	23,001,810.82	3,268,599,732.09

3. Long-term equity investment

Item	Gross amount	30 June 2021 Impairment provision	Carrying amount	Gross amount	31 December 2020 Impairment provision	Carrying amount
Investments in subsidiaries Investments in associates and joint	31,381,042,713.28	60,769,322.96	31,320,273,390.32	31,362,167,013.66	60,769,322.96	31,301,397,690.70
ventures	560,721,398.99	–	560,721,398.99	610,892,419.20	–	610,892,419.20
Total	31,941,764,112.27	60,769,322.96	31,880,994,789.31	31,973,059,432.86	60,769,322.96	31,912,290,109.90

(1) Investments in subsidiaries

Unit: RMB

						Impairment
Investee	31 December 2020	Increase in the period	Decrease in the period	30 June 2021	Provision for the period	provision at 30 June 2021
International Hotel	210,000,000.00	80,000,000.00	–	290,000,000.00	–	–
Ye Lian	5,638,250.27	–	–	5,638,250.27	–	–
Metal Material	650,000,000.00	–	–	650,000,000.00	–	–
Sales Company (Note)	50,700,000.00	–	–	50,700,000.00	–	–
Sales and Trading	2,000,000.00	–	–	2,000,000.00	–	–
Wu Ye	100,000,000.00	–	–	100,000,000.00	–	–
Hu Qi	9,900,000.00	–	9,900,000.00	–	–	–
Fu Run	–	–	–	–	–	-8,803,190.84
Luoyang Yuehe	60,232,948.26	–	60,232,948.26	–	–	–
Beijing Yongbo	267,800,000.00	–	–	267,800,000.00	–	–
Qi Xing	46,963,636.00	–	–	46,963,636.00	–	–
Da Dong Po	13,557,261.67	–	–	13,557,261.67	–	-19,926,488.19
San Qiang	16,900,901.94	–	–	16,900,901.94	–	-16,496,136.47
Jiu Yang	1,485,392.54	–	–	1,485,392.54	–	-15,543,507.46
Xinjiang Luo Mu	980,000,000.00	–	–	980,000,000.00	–	–
Fu Kai	261,520,000.00	–	–	261,520,000.00	–	–
Molybdenm UK	1,869,455,300.96	–	–	1,869,455,300.96	–	–
Schmocke	660,000,000.00	–	–	660,000,000.00	–	–
CMOC Limited (Note)	25,866,849,209.48	–	–	25,866,849,209.48	–	–
CMOC Mining Pty (Note)	39,000,000.00	–	–	39,000,000.00	–	–
High-tech	189,394,789.58	–	–	189,394,789.58	–	–
Donghe Trading	–	9,008,647.88	–	9,008,647.88	–	–
Total	31,301,397,690.70	89,008,647.88	70,132,948.26	31,320,273,390.32	–	-60,769,322.96

Note: The Company provides guarantees for USD loans of its subsidiaries and confirms investment costs based on the fair value of the guarantees.

(2) Investments in associates and joint ventures

Unit: RMB

					Adjustment	Changes in the period
Investee	31 December 2020	Additional investments	Reduction of investments	Investment Income or loss under equity method	of other comprehensive income	Other changes inequity	Cash dividends or profit declared	Impairment provision	Others	30 June 2021	Impairment provision at 30 June 2021
I. Joint venture Huan Yu	530,037,670.29	–	–	-47,615,385.91	–	–	–	–	–	482,422,284.38	–
Sub-total	530,037,670.29	–	–	-47,615,385.91	–	–	–	–	–	482,422,284.38	–
II. Associate Yulu Mining Nanomoly	78,399,984.45	–	–	42,604,173.55	–	–	45,600,000.00	–	–	75,404,158.00	–
Development Luoyang Shenyu	2,454,764.46	–	–	440,192.15	–	–	–	–	–	2,894,956.61	–
Sub-total	80,854,748.91	–	–	43,044,365.70	–	–	45,600,000.00	–	–	78,299,114.61	–
Total	610,892,419.20	–	–	-4,571,020.21	–	–	45,600,000.00	–	–	560,721,398.99	–

4. Operating income and operating cost

Unit: RMB

	Jan.-Jun. 2021		Jan.-Jun. 2020
Item	Income	Cost	Income	Cost
Principal operating activities Other operating activities	1,804,743,430.79 96,636,979.19	928,741,685.26 86,942,458.50	1,458,971,946.93 65,892,965.19	713,142,648.86 61,825,859.06
Total	1,901,380,409.98	1,015,684,143.76	1,524,864,912.12	774,968,507.92

5. Investment income

Unit: RMB
-----------	--

Item	Jan.-Jun. 2021	Jan.-Jun. 2020
Income from long-term equity investment under cost method
Income from long-term equity investment under equity
method	-4,571,020.21	14,312,740.99
Investment income from holding held-for-trading financial
assets	6,703,857.19	65,773,388.50
Investment income from holding non-current financial assets	12,151,719.31	26,294,807.79
Dividend income from subsidiaries	677,000,000.00	–
Investment income from disposal of subsidiaries	-4,732,948.26	–
Total	686,551,608.03	106,380,937.28

XV. SUPPLEMENTARY INFORMATION

1. Breakdown of non-recurring profit or loss

Unit: RMB

Item	Amount	Explanation
Gains or losses on disposal of non-current assets Government grants included in profit or loss (exclusive of those relating closely to the enterprise's business and subject to the uniform national standards on amount and quantity)	-249,973.49 19,567,029.71	Including subsidies of RMB4 million from low-grade scheelite project
Profit or loss on changes in the fair value from held for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, and derivative financial liabilities, as well as the income from disposal of held-for-trading financial assets and derivative financial assets, held-for trading financial liabilities, derivative financial liabilities and other debt investments, other than those used in the effective hedging activities related to the Company's normal operating business.	-2,755,260,114.13	Including losses of RMB3,292 million from the changes in fair value of derivatives of metal trading industry of IXM
Other profit or loss on changes in fair value	-4,933,877.47
Loss on impairment of long-term assets	-16,973,454.94
Donations	-8,742,795.89
Gains or losses relating to changes in fair value of assets and liabilities of IXM metal trading business, including the inventories at fair value	3,893,257,488.93
Other non-operating income or expenses other than the above	8,223,417.78
Other profit or loss that meets the definition of non recurring profit or loss	1,343,836.45	Income from disposal of subsidiary
Tax effects	-128,945,727.93
Effects attributable to minority interests	290,536.55
Total	1,007,576,365.57

2. Return on net assets and earnings per share

	Weighted average return on net	EPS
Profit for the reporting period	assets (%)	Basic EPS	Diluted EPS
Net profit attributable to ordinary shareholders of the Company Net profit after deduction of non-recurring profits or losses attributable to ordinary	6.20	0.112	0.112
shareholders of the Company	3.61	0.065	0.065

CORPORATE INFORMATION

DIRECTORS

Executive Directors

Sun Ruiwen (President) (appointed on 21 May 2021) Li Chaochun (Vice Chairman)

Non-executive Directors

Yuan Honglin (Chairman) Guo Yimin (Vice Chairman) Cheng Yunlei

Independent Non-Executive Directors

Wang Gerry Yougui Yan Ye Li Shuhua

SUPERVISORS

Kou Youmin (Chairperson of the Supervisory Committee) Zhang Zhenhao Xu Wenhui (appointed on 12 March 2021)

BOARD COMMITTEES

Remuneration Committee

Wang Gerry Yougui (Chairman) Li Shuhua Yuan Honglin

Audit and Risk Committee

Li Shuhua (Chairman) Yan Ye Yuan Honglin

Strategic and Sustainability Committee

Yuan Honglin (Chairman) Sun Ruiwen (appointed on 21 May 2021) Li Chaochun Wang Gerry Yougui

Nomination and Governance Committee

Wang Gerry Yougui (Chairman) Yuan Honglin Yan Ye Li Shuhua

COMPANY SECRETARY

Ng Sau Mei (FCG,FCS)

REGISTERED OFFICE IN THE PRC

North of Yihe, Huamei Shan Road Chengdong New District, Luanchuan County Luoyang City, Henan Province, the PRC

PRINCIPAL PLACE OF BUSINESS IN THE PRC

North of Yihe, Huamei Shan Road Chengdong New District, Luanchuan County Luoyang City, Henan Province, the PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

31/F, Tower Two, Times Square 1 Matheson Street Causeway Bay, Hong Kong

LEGAL REPRESENTATIVE

Yuan Honglin

AUTHORIZED REPRESENTATIVES

Yuan Honglin Ng Sau Mei

ENQUIRY DEPARTMENT OF THE COMPANY

Office of the Board of Directors

INFORMATION ENQUIRY TELEPHONE NO. OF THE COMPANY

(+86) 379 6860 3993

SHANGHAI A SHARE REGISTRAR

China Securities Depository and Clearing Corporation Limited, Shanghai Branch 36/F, China Insurance Building No. 166 Lujiazui Road East Pudong New Area Shanghai, the PRC

HONG KONG H SHARE REGISTRAR

Computershare Hong Kong Investor Services Limited Shops 1712–1716, 17th Floor, Hopewell Centre 183 Queen's Road East, Wanchai, Hong Kong

PLACES OF LISTING

Place of listing of A share – The Shanghai Stock Exchange Pl ace of listing of H share – The Stock Exchange of Hong Kong Limited

NAME OF THE STOCK

China Molybdenum Co., Ltd. (CMOC)

STOCK CODE

Stock code of A share: 603993 (Listed on 9 October 2012) Stock code of H share: 03993 (Listed on 26 April 2007)

PRINCIPAL BANKERS

• 1. Industrial and Commercial Bank of China Limited
• 1. Agricultural Bank of China Limited
• 1. China Construction Bank Corporation
• 1. Bank of China Limited
• 1. China Minsheng Banking Corp., Ltd.
• 1. China CITIC Bank Corporation Limited
• 1. China Development Bank Corporation
• 1. Ping An Bank Co., Ltd.

AUDITOR

Deloitte Touche Tohmatsu Certified Public Accountants LLP

LEGAL ADVISORS

As to Hong Kong law:

Freshfields Bruckhaus Deringer 55/F, One Island East, Taikoo Place Quarry Bay, Hong Kong

As to PRC law:

Llinks Law Offices 19/F, One Lujiazui 68 Yin Cheng Road Middle Shanghai, the PRC

COMPANY WEBSITE

www.cmoc.com

DEFINITIONS

"APT"	ammonium paratungstate
"CFC"	Cathay Fortune Corporation, a controlling shareholder of the Company
"CMOC", the "Company" or "Group"	洛陽欒川鉬業集團股份有限公司 (China Molybdenum Co., Ltd.*)
"CMOC Brasil"	CMOC Brasil Mineração Indústria e Participações Ltda. During the Reporting Period, the Group's Brazil Niobium-Phosphorus business underwent a reorganization through merger of three legal entities and renamed the reorganized company as CMOC Brasil Mineração Indústria e Participações Ltda
"Fuchuan Mining"	Luoyang Fuchuan Mining Co., Ltd., a controlled subsidiary of Xuzhou Huanyu
"IXM "	generally refers to IXM B.V. and its affiliates
"LMG"	Luoyang Mining Group Co., Ltd., the second largest shareholder of the Company
"MAP"	ammonium dihydrogen phosphate, a chemical agent, also known as monoammonium phosphate
"NPM"	copper/gold mine in Northparkes, situated at northwest of the town of Parkes in New South Wales, Australia, 80% equity of which was held by a wholly owned subsidiary of the Company registered as the manager
"reporting period"	six months ended 30 June 2021
"Sandaozhuang Mine" or "Sandaozhuang Molybdenum/Tungsten Mine"	located in Luanchuan County, Henan Province, China, the mine where the Company is carrying out major mining work of molybdenum/tungsten at present
"Shangfanggou Molybdenum Mine"	located in Luanchuan County, Henan Province, China, which is owned by a controlled subsidiary of Xuzhou Huanyu Molybendum Co., Ltd, a joint venture of the Company
"TFM"	Tenke Fungurume Mining S.A. (DRC)
"TFM Copper and Cobalt Mine"	Tenke Fungurume Copper/Cobalt Mine Area located in Congo (DRC)
"Yulu Mining"	Luoyang Yulu Mining Co., Ltd., a non wholly-owned subsidiary of the Company

Note: In case of any inconsistency, the Chinese text of this interim report shall prevail over the English text.

* For identification purposes only