Our results of operations have been and will continue to be affected by our ability to effectively manage our operations amid commodity price volatility.
Financial Information · p. 156
Our basis trading and unilateral spot trading are primarily exposed to spot price risk.
Business · p. 133
For example, we use futures contracts, together with spot commodity trading, to mitigate spot price fluctuations.
Key components of our products include DRAM/NAND chips, microprocessors and other semiconductors.
Summary · p. 15
We therefore continue to monitor supply conditions closely and maintain relationships with multiple chip suppliers to mitigate potential supply chain risks.
During the Track Record Period, our revenue was in large part derived from the mining and sales of silver, gold, lead and zinc contained in metal concentrates.
Financial Information · p. 216
A sustained significant decline in these market prices would materially and adversely affect our business, financial condition and results of operations.
Financial Information · p. 216
Our production and sales volumes may also be affected by changes in prices of silver, gold, lead, zinc and other metals because such decrease in prices may render current mineral resources uneconomical to mine and process.
Our financial results have been, and will continue to be, affected by changes in the fair value of our biological assets.
Financial Information · p. 233
Therefore, the fair value of our biological assets could be affected by, among other things, the accuracy of such assumptions, and any changes in the estimates may affect the fair value of our biological asset significantly.
Financial Information · p. 233
Our net other gains and losses changed from a loss of RMB18.3 million in 2024 to a gain of RMB78.3 million in 2025, primarily due to the increase in gain arising from changes in fair value less costs to sell of biological assets (unrealized) and (realized), which in turn due to the increase in market price during the same year.
Historically, international gold prices have experienced significant volatility.
Financial Information · p. 471
During the Track Record Period, we obtained short-term financing via gold leasing contracts. Meanwhile, we entered into futures contracts to hedge the risk of gold price fluctuations.
Financial Information · p. 472
Furthermore, during the Track Record Period, we entered into hedging transactions, such as gold forward sales contracts and forward exchange contracts, to secure our revenue in view of the volatility in gold prices.