A：Our company's iron ore business is mainly carried out domestically. Since 1993, through continuous exploration and surrounding expansion, we have successfully obtained new resources, leading to a significant increase in original production compared to the early 1990s. In the first half of this year, the iron ore business achieved significant achievements in resource development, with nearly 80 million tons of new resources and the iron ore reserves increasing to 170 million tons, laying a solid foundation for the company's long-term development. Additionally, we have obtained new resources in the exploration of the Kudofang pit, further extending the service life of the Maogong iron ore mine. In the first half of this year, the high-purity iron business operated well, with stable production and a significant increase in output through technological transformation and management optimization. Production increased by more than 20% compared to last year, reaching 470,000 tons. Due to stable production and efforts to control costs, the gross profit margin of the high-purity iron business has greatly increased, from 2.5% in the first half of last year to 7%, achieving a pre-tax profit of 15 million RMB and turning losses into profits.

A：In the first half of this year, the production and sales volume of iron ore and iron concentrate has slightly increased, and the price of gold ore has been rising since the second half of last year, with an average untaxed price of 56 yuan per ton. Due to stable output and the addition of new resources, the company's production costs have decreased, dropping to 339 yuan per ton in the first half of this year, a 9.6% decrease from last year. In terms of cash operating costs, it remained the same as last year at 340 yuan per ton, despite a nearly 15% decrease in the prices of iron and gold ore, the gross profit margin still remains at around 60%.

A：As a growing business, the gold mining industry is developing rapidly. We have a new gold mining project in Western Australia and another project in the Orlia region. Recently, we have made progress in the research work of the new project, and on July 22nd, we announced the resource volume of the new project. After preliminary design, we plan to produce an average of 90,000 ounces of gold per year in the coming years. The current production plan is a conservative estimate, and with further research, the actual production is expected to increase. In addition, the total cost control of the new project is at a relatively low level, demonstrating good economic benefits.

A：Because during the research stage, many costs are allocated to short-term issues that need to be addressed, such as dealing with a fine of 2 million yuan within a year, and the short life span of the mine leading to concentrated expenses. However, when the project enters the production stage, these costs will be spread out as the life span lengthens and income increases, and the actual costs will relatively decrease.

A：The project has a relatively high return on investment, with the ability to recoup all investment within three years. Calculating based on the fixed price of gold, the investment return speed will be even faster. Current preliminary estimates show a significant increase in the project's net present value (NPV) and, with optimized production planning, both production output and NPV will further improve.

A：For low-grade ore, it will be gradually incorporated into the mining production plan through the optimization of drilling and production plans, thereby reducing overall costs. At the same time, mining design will also be continuously adjusted and optimized to ensure the efficient use of resources.

A：The next step will be to optimize the existing technology and production companies, detailed planning of the production process to improve efficiency and reduce costs, and further explore the amount of recoverable resources, encrypted drilling holes to incorporate into the production plan. As the drilling work progresses, the life of the mine will continue to extend, thereby diluting the overall cost.

A："High-grade" ore bodies will not be completely mined at once. Because only resources within a certain index range are currently controlled, it can only be gradually verified by mining from both sides and below. As mining progresses, costs will gradually decrease, and the continuous exploitation of the mining area will further reduce costs.

A：For the Much Money project, a reserve recalibration and pricing were conducted based on market changes and the new gold price ($5152 per ounce). Consideration was given to policy changes regarding Australia's government 5G Logical Rights Fund, as well as the impact of inflation rates and updated quotes from construction contractors. After adjustments, the framework equipment lifespan of the project has been extended to 16 years, with an average annual production of 150,000 ounces of gold in the first ten years. The unit production cost has decreased to over 1600 Australian dollars per ounce. Based on the current gold price, the project shows promising economic returns.

A：Okay, in the first half of 2025, this group achieved a gross profit of 361 million Yuan, an increase of 14 million Yuan compared to the same period last year, with a gross profit margin of 25.67%, a decrease of 1.7 percentage points from the same period last year. The iron concentrate business saw an increase in production and sales volume through refined management and cost reduction, with a 9.6% decrease in sales costs. As for the high-purity iron business, both production and sales volume increased compared to the same period last year. Although the selling price per ton decreased, the selling cost per ton also decreased by 18.26% due to well-controlled purchase costs, resulting in an increase in both gross profit and gross profit margin. In the first half of 2025, the pre-tax profit was 175 million Yuan, and the net profit was 105 million Yuan. Due to the impact of annual tax items, the net asset return rate was 7.01%, a decrease of 0.18 percentage points compared to the same period last year.

A：The listing and spin-off plan is divided into two stages. The first stage is the spin-off, where we have already submitted the P15 application form and are in the process of answering questions from the Hong Kong Institute. We expect to complete the spin-off process within three months. The second stage is the listing, where we will submit the A1 form and also expect to complete the process within two months. Currently, although the spin-off and listing processes have not yet been completed, preparations are underway and many domestic funds and industry peers have shown strong interest. Regarding financing, once the project's value is clear, we will initiate it and expect to complete it within six months.

A：We will select several investors with new funds for the project during the C round of financing, and complete the necessary staffing and capacity building before submitting the A round. Since we do not plan to raise funds after going public, we are currently in the main financing stage. In terms of costs, because we are still in the early stages of the project and have only completed preliminary research, we have about two million company resources. As work progresses, more resources will enter the production technology stage and costs will further decrease.

A：Time is limited, especially in Australia where the exam standards are strict, and if the mineral density is not high enough, the current stage cannot be mined. For example, we are waiting for a crucial data to progress the approval process for a new project, but the data does not meet the requirements, causing a delay in development.

A：Costs will gradually decrease, but may not reach the level of the mountain money project. Although costs will decrease, they will also be affected by scale. The unit cost of high-quality minerals will decrease as the production volume increases. On the other hand, projects like Moto Body, due to their larger scale and longer lifespan, will spread infrastructure investments over a longer period of time, resulting in relatively lower costs.

A：The current plan remains unchanged, which is to first focus on production, starting with the current project and expecting to recover the construction investment within three years. The goal is to raise the necessary funds through commodity financing while minimizing disruption to China's existing maritime and air defense goals during the project completion. Construction is expected to begin in the first half of 2026, with production scheduled to start by the end of 2027.

A：The final split ratio will be announced after the delay in the listing application, and the specific timing is still uncertain. Currently, China Haiwang's total share capital is 1.96 billion shares, and both China Haiwang Biology and Haiwang Gold hold 1.96 billion shares as well. With third-party investments in the IPO process and the capital increase of Haiwang Gold by China Haiwang, the final shareholding ratio will be recalculated after all the capital increases are completed.

A：We just obtained a mining license in July, and next we will carry out feasibility studies and other restructuring approval work. According to the annual mining volume of 4 million tons approved by the mining license, compared to the annual mining volume of 2.9 million tons for the Laogang iron mine, the approved mining scale of the Shanghai project is relatively large. However, due to factors such as grade, the actual output may be close to 1.5 million tons. Final investment decisions and production timing will need to wait for the feasibility study data to be discussed and agreed upon.

A：During this annual report, we promise to distribute cash dividends of no less than 30% of profits. In the mid-term financing stage, although there are dividends, we are more focused on demonstrating our financing capabilities. Recently, we have acquired some gold mines, significantly increasing our resource reserves. Now, based on conservative estimates, if calculated according to the current gold price, the core resource quantity will be even greater. In addition, our projects in Australia are progressing well, and once the relevant work is completed, the average match will increase. As for the specific dividend ratio, we will consider resource quantity, reserves, and project monetization comprehensively, which has not yet been finalized.

A：This is a very good question. Our production design has already adopted a more conservative pricing strategy, for example, the current price of gold is 5152 yuan per ounce, while our actual pricing in use is lower. As the price of gold rises, our cost advantage will become more apparent. In addition, we are putting some projects into production, and although the reports may not look as expected, the higher income brought by high grade will actually result in higher profits.

A：Currently, the valuation of overseas gold has not been determined. However, from a macro perspective analysis, after the upgrade and transformation of the project in Matbang, even with a lower gold price calculation, the after-tax net present value is still over ten billion. The specific valuation will be obtained after considering factors such as resource volume, reserves, project realization, and is currently in the evaluation stage.

A：Currently there is not much additional content to add. In terms of exploration, both the domestic and Australian Orinia projects are ongoing and have achieved significant results, increasing resources by over a billion. In addition, the sales of Xiangzhou and ADB two mining projects are expected to begin construction in the first half of next year and the first half of 2027, with annual iron ore processing volumes of 2 million tons and 5 million tons respectively, and gold ore processing volumes expected to exceed 250,000 pounds. This financing amount is 700,000 Australian dollars, with 50% to be covered by the bank and the remaining 50% to be solved by the company itself. Over the next 18 months, we will continue exploration work, and the phased listing arrangements will ensure the stability of the funding chain. At the same time, independent listing may lead to faster development and support for the company, bringing more value to shareholders. We have long planned to separate and list the business, now we are just waiting for the right time. This decision is also based on confidence in the company's future development and enhancing shareholder value.