2024 Mid-Year Performance Forecasts and Environmental Efforts in Nickel Mining

TISCO Turns Loss to Profit in the First Half of 2024

On July 9th, TISCO disclosed a performance forecast, predicting a turnaround from loss to profit for the period of January to June 2024. The net profit attributable to the shareholders of the listed company is expected to be between 105 million and 150 million yuan, with a net profit year-on-year growth of 121.19% to 130.27%. The estimated basic earnings per share are 0.018 to 0.026 yuan.

The company attributes this forecast to its comprehensive implementation and continuous deepening of "accounting management", focusing on QCDVS (Quality, Cost, Delivery, Variety, and Service) to advance product management, cultivate core profitable varieties, and enhance customer service capabilities. The company insists on comprehensive benchmarking to find gaps, improve efficiency and reduce costs in all aspects, and improve product profitability. It also emphasizes the concept of "living within its means", implementing the idea that "all expenses can be reduced", and strengthening centralized production and production line collaboration, which has significantly improved the company's overall profitability.

Yongjin Shares Announces an Increase in Half-Year Performance for 2024

On July 10th, Yongjin Technology Group Co., Ltd. announced its performance for the first half of 2024, with the net profit attributable to the parent company ranging from 400 million to 450 million yuan, a year-on-year increase of 87.34% to 110.76%. The net profit attributable to the parent company, excluding non-recurring gains and losses, is expected to be between 280 million and 325 million yuan, a year-on-year increase of 41.41% to 64.14%.

The reasons for the performance change are mainly due to the main business: 1. The newly added production capacity from the "Annual Processing of 350,000 Tons of Wide-width Precision Stainless Steel Plate and Strip Technology Renovation Project" in Guangdong Yongjin and the "Annual Processing of 195,000 Tons of Ultra-thin Precision Stainless Steel Plate and Strip Project" in Zhejiang Yongjin; 2. The further improvement of the utilization rate of Yongjin's production capacity in Vietnam. The impact of non-operating gains and losses is mainly due to the net income of 108.9 million yuan from the relocation compensation of the A area of the Zhejiang headquarters confirmed in this period.

Yongxing Material Releases 2024 Performance Profit Forecast

On July 10th, Yongxing Special Material Technology Co., Ltd. released a half-year performance forecast for 2024, with the net profit attributable to the shareholders of the listed company between 710 million and 820 million yuan, a year-on-year decrease of 56.93% to 62.70%; the net profit excluding non-recurring gains and losses is between 540 million and 650 million yuan, a year-on-year decrease of 65.96% to 71.72%. The basic earnings per share are 1.32 yuan/share to 1.53 yuan/share.

In the first half of the year, the company's special steel new material business has increased market development efforts, continued to adjust and optimize the product structure, and steadily improved profitability. However, the price of lithium carbonate in the company's lithium battery new energy business has decreased significantly compared to the same period last year, which has affected the year-on-year decrease in the net profit attributable to the shareholders of the listed company.

Indonesian Government Committed to Reducing Environmental Impact of Nickel Mining

It is well known that nickel mining in Indonesia can have environmental impacts, such as deforestation and loss of biodiversity. To address this issue, the government has taken specific measures to minimize the negative impact on the environment, as described in the online seminar "ESG Requirements for Indonesian Nickel and Cobalt Producers".

"Environmental protection is the top priority of the Indonesian government," said Tubagus Nugraha, representative of Septian Hario Seto, Deputy Coordinator for Investment and Mining of the Coordinating Ministry of Maritime Affairs and Investment of the Republic of Indonesia. The government has established strict regulations to ensure effective implementation and supervision of environmental protection.

Some of the measures taken by the government include:

• Environmental Impact Assessment (Amdal): This mandatory requirement aims to reduce environmental impacts, including the use of forest areas and the protection of biodiversity, accompanied by regular monitoring activities.
• Forest Area Use Approval Mechanism (PPKH): A mandatory requirement that limits the use of forest areas to within 10% of the total forest area in the region.
• Payment of Reclamation Guarantee: This mandatory payment is a deposit collected from companies, which can be reclaimed based on the completed reclamation area.
• Sanctions and Fines Mechanism: Applicable to violations of environmental and forestry regulations.
• Mineral and Coal Information System (Simbara): This integrated digital system serves as a tracking and transparency tool and will also be integrated with environmental and forestry aspects to monitor company compliance.

In addition to the above policies, the government is also drafting a Presidential Regulation on Accelerating the Development and Management of Nursery Facilities in Mineral and Coal Mining Business Activities to improve reclamation quality. "According to this regulation, mining companies must build their own nursery facilities, and their progress will be closely monitored and evaluated by the Ministry of Environment and Forestry and the provincial government," he added.

This acceleration plan will be implemented until December 31, 2025, targeting 764 mining companies. Through these steps, the Indonesian government is committed to ensuring that nickel mining operations are not only sustainable but also environmentally friendly, in line with applicable national and international standards.