1
Xinjiang Xinxin Mining Industry Co., Ltd.

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock code: 3833)
INTERIM RESULTS ANNOUNCEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

The Board of Directors (the “Board”) of Xinjiang Xinxin Mining Industry Co., Ltd. (the
“Company”) is pleased to announce the audited interim financial results of the Company
and its subsidiary (collectively referred to as the “Group”) for the six months ended 30
June 2007.
CONSOLIDATED INTERIM INCOME STATEMENT

For the six months ended 30 June 2007
Six months ended
30 June
(RMB’000) Note 2007 2006
(Unaudited)
Revenue 3 731,744 387,384
Cost of sales 4 (204,228) (160,027)
Gross profit 527,516 227,357
Selling and marketing expenses 4 (4,980) (5,375)
Administrative expenses 4 (41,015) (26,910)
Other income 6 4,659 2,484
Other gains/(losses) – net 7 3,995 (337)
Operating profit 490,175 197,219
Finance costs 8 (5,031) (4,863)
Profit before income tax 485,144 192,356
Income tax expense 9 (238) –
Profit for the period 484,906 192,356
Attributable to:
Equity holders of the Company 486,069 192,888
Minority interests (1,163) (532)
484,906 192,356

Earnings per share for profit attributable to
the equity holders of the Company during
the period
(expressed in Renminbi per share)
– basic and diluted 10 0.3198 0.1512
Proposed special dividend 12 480,914 –

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CONSOLIDATED INTERIM BALANCE SHEET

As at 30 June 2007
As at
30 June 31 December
(RMB’000) Note 2007 2006
ASSETS

Non-current assets
Property, plant and equipment 442,690 468,028
Mining rights 279,161 284,117
Land use rights 78,751 77,995
Other intangible assets 78 94
Total non-current assets 800,680 830,234
Current assets
Inventories 222,375 163,299
Accounts and bills receivable 13 10,441 1,099
Other receivables, prepayments
and other current assets 50,820 6,871
Cash and bank balances 474,667 562,482
Total current assets 758,303 733,751
Total assets 1,558,983 1,563,985
EQUITY

Capital and reserves attributable to equity
holders of the Company
Share capital 14 380,000 380,000
Capital reserve 90,750 90,750
Other reserves 251,785 213,457
Retained earnings
– Proposed profit distribution 11 – 13,045
– Proposed dividend 12 480,914 400,000
– Others 8,418 51,436
1,211,867 1,148,688

Minority interests – 23,613
Total equity 1,211,867 1,172,301
LIABILITIES

Non-current liabilities
Long-term borrowings – 50,000
Long-term payables 15 121,990 122,002
Provision for close down, restoration
and environmental costs 4,239 4,092
Deferred income 16,560 13,360
Total non-current liabilities 142,789 189,454
Current liabilities
Short-term borrowings 44,800 44,800
Current portion of long-term borrowings – 10,000
Current portion of long-term payables 15 7,195 4,011
Trade payables 16 44,388 60,390
Other payables and accruals 107,944 82,910
Income tax payable – 119
Total current liabilities 204,327 202,230
Total liabilities 347,116 391,684
Total equity and liabilities 1,558,983 1,563,985
Net current assets 553,976 531,521
Total assets less current liabilities 1,354,656 1,361,755

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CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2007
Attributable to equity holders of the Company
Share Capital Other Retained Minority Total
(RMB’000) capital reserve reserves earnings Total interests equity
At 1 January 2006 300,000 62,712 175,663 70,264 608,639 – 608,639
Profit for the period – – – 192,888 192,888 (532) 192,356
Contribution from equity
holders of the Company 80,000 28,038 – – 108,038 – 108,038
Contribution from minority
interests – ––––28,42028,420
Listing expenses charged
to other reserves – – (6,528) – (6,528) – (6,528)
Acquisition of equity
interests in a subsidiary
from minority interests – ––––(3,480)(3,480)
At 30 June 2006
(Unaudited) 380,000 90,750 169,135 263,152 903,037 24,408 927,445
At 1 January 2007 380,000 90,750 213,457 464,481 1,148,688 23,613 1,172,301
Profit for the period – – – 486,069 486,069 (1,163) 484,906
Profit distribution – – – (13,045) (13,045) – (13,045)
Dividend – – – (400,000) (400,000) – (400,000)
Appropriation to statutory
reserve – – 48,173 (48,173) – – –
Listing expenses charged
to other reserves – – (9,845) – (9,845) – (9,845)
Disposal of a subsidiary – ––––(22,450) (22,450)
At 30 June 2007 380,000 90,750 251,785 489,332 1,211,867 – 1,211,867

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CONSOLIDATED INTERIM CASH FLOW STATEMENT

For the six months ended 30 June 2007
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Cash flows from operating activities
Cash generated from operations 397,980 265,340
Interest paid (1,188) (2,590)
Income tax paid (357) –
Net cash generated from operating activities 396,435 262,750
Cash flows from investing activities
Purchase of property, plant and equipment (88,791) (89,358)
Purchase of land use rights (927) –
Instalment payment of mining rights – (1,148)
Net cash outflow in respect of the disposal of a subsidiary (35,780) –
Proceeds from disposal of property, plant and equipment – 190
Interest received 4,293 2,024
Net cash used in investing activities (121,205) (88,292)
Cash flows from financing activities
Profit distribution to Holding Company (13,045) (123,625)
Dividend paid (400,000) –
Proceeds of capital contribution from equity holders – 28,966
Capital contribution from minority shareholders in a subsidiary – 24,940
Proceeds from borrowings 50,000 –
Repayment of borrowings – (10,000)
Net cash used in financing activities (363,045) (79,719)
Net (decrease)/increase in cash and bank balances (87,815) 94,739
Cash and bank balances at beginning of the period 562,482 327,468
Cash and bank balances at end of the period 474,667 422,207

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NOTES:
1 General information
The Group is principally engaged in the mining, ore processing, smelting, refining and sales of nickel,
copper and other non-ferrous metal products. The Company was incorporated in the People’s Republic
of China (“the PRC”) on 1 September 2005 as a joint stock limited company. The address of the
Company’s office is Youse Building, No.4 You Hao North Road, Urumqi, Xinjiang Uygur Autonomous
Region of the PRC.
2 Basis of preparation
The consolidated interim financial statements of the Company have been prepared in accordance
with Hong Kong Financial Reporting Standards (“HKFRS”).
The consolidated interim financial statements have been prepared under the historical cost convention
except that certain financial assets and financial liabilities at fair value as appropriate.
The preparation of financial statements in conformity with HKFRS requires management to make
judgments, estimates and assumptions that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and associated assumptions are based
on historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgments about carrying values of
assets and liabilities that are not readily apparent from other sources. Actual results may differ from
these estimates.
The following new standards, amendments to existing standards and interpretations to existing
standards have been published that are mandatory for the Group’s accounting period beginning on or
after 30 June 2007 or later periods that the Group has not early adopted:
• HKFRS 8, “Operating Segments”, effective for annual periods beginning on or after 1 January
2009. This requires the disclosures of information about an entity’s operating segments and
also about the entity’s products and services, the geographical areas in which it operates and
its major customers. Management is currently assessing the impact of HKFRS 8;
• HK(IFRIC)-Int 11, “HKFRS 2 – Group and Treasury Share Transactions”, effective for annual
periods beginning on or after 1 March 2007. Management believes that this interpretation
should not have a significant impact to the Group;
• HK(IFRIC)-Int 12, “Service Concession Arrangements”, effective for annual periods beginning
on or after 1 January 2008. Management believes that this interpretation should not have a
significant impact to the Group;
• HK(IFRIC)-Int 13, “Customer Loyalty Programmes”, effective for annual periods beginning on or
after 1 July 2008. Management believes that this interpretation should not have a significant
impact to the Group;
• HK(IFRIC)-Int 14, “HKAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction”, effective for annual periods beginning on or after 1 January
2008. Management believes that this interpretation should not have a significant impact to the
Group.
• HKAS 23 (revised), “Borrowing Cost”, effective after annual periods beginning on or after 1
January 2009. Management believes that this revised standard should not have a significant
impact to the Group.

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3 Revenue
Revenue represents the sales value of goods sold to customers net of value added tax.
Revenue recognised during the six months ended 30 June 2006 and 2007 is analysed as follows:
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Nickel cathode 567,119 241,069
Copper cathode 78,384 89,491
Copper concentrate 67,889 48,437
Others 18,352 8,387
731,744 387,384

4 Expenses by nature
The following items have been (credited)/charged to the operating profit during the period:
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Depreciation 12,513 11,414
Amortisation 5,765 5,228
Reversal of impairment of inventories (3,913) –
Provision for/(reversal of) impairment of accounts receivable 415 (490)
Provision for/(reversal of) impairment of other receivables 63 (347)
Staff costs (Note 5) 94,785 61,652
Changes in inventories of finished goods and work-in-progress (41,874) 9,424
Raw materials and consumables used 111,218 41,327
Power and fuel consumed 26,578 28,896
Subcontracting expenses 11,601 10,199
Other manufacturing overheads 4,374 3,828
Transportation expenses 4,112 4,729
Sales tax levies 7,573 3,631
Others 17,013 12,821
Total cost of sales, selling and marketing expenses and
administrative expenses 250,223 192,312

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5 Staff costs
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Wages and salaries 71,765 45,330
Housing benefits (Note a) 3,055 2,577
Contributions to pension plans (Note b) 5,860 5,621
Welfare and other expenses 14,105 8,124
94,785 61,652

Notes:
(a) These represent the Group’s contributions to government-sponsored housing funds at a rate of
10% of the employees’ basic salary for the six months ended 30 June 2006 and 2007.
(b) These represent the Group’s contributions to the defined contribution pension plans organised
by the relevant municipal and provincial governments at a rate of 20% of the employees’ basic
salary for the six months ended 30 June 2006 and 2007.
6 Other income
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Interest income 4,293 2,024
Subsidy income 366 460
4,659 2,484

7 Other gains/(losses) – net
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Gains on disposal of a subsidiary 3,301 –
Scrap sales 1,002 584
Losses on disposal of property, plant and equipment (493) (1,021)
Others 185 100
3,995 (337)

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8 Finance costs
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Bank borrowings 479 145
Unwinding of discount 4,552 4,718
5,031 4,863

9 Income tax expense
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Current tax 238 –
Deferred tax – –
238 –
The provision for PRC current income tax is calculated based on the statutory income tax rate of 33%
of the assessable income of each of the companies/branches now comprising the Group determined
in accordance with the relevant PRC income tax rules and regulations for the six months ended 30
June 2006 and 2007.
The Company, except for its Shanghai branch, is exempted from enterprise income tax from 2005 to
2006 pursuant to the approval obtained from the Xinjiang Uygur Autonomous Region Government.
This tax exemption was further extended to 2010 pursuant to the approval subject to annual review
for the tax exemption from 2007 to 2010. The tax on profit during the six months ended 30 June 2007
mainly represented the tax for the Company’s Shanghai branch.
On 16 March 2007, the National People’s Congress approved the Corporate Income Tax Law of the
PRC (the “new CIT Law”). The new CIT Law reduces (increases) the corporate income tax rate for
domestic enterprises (foreign invested enterprises) from 33% (15% or 24%) to 25% with effect from 1
January 2008. The new CIT Law also provides for preferential tax rates, tax incentives for prescribed
industries and activities, grandfathering provisions as well as determination of taxable profit. As at the
date that the interim financial statements are approved, detailed implementing rules concerning these
items have yet to be issued by the State Council. Consequently, the Company is not in a position to
assess the impact, if any, to the carrying value of deferred tax assets and liabilities as at 30 June
2007. The Company will continue to evaluate the impact as more detailed implementing rules are
announced.
Reconciliation between actual tax expense and accounting profit at applicable tax rates is as follows:
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Profit before tax 485,144 192,356
Tax recalculated at statutory income tax of 33% 160,098 63,477
Effect of tax exemptions/preferential tax rate (159,860) (63,477)
Income tax expense 238 –

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10 Earnings per share
Six months ended
30 June
2007 2006

(Unaudited)
Profit attributable to equity holders of the Company (RMB’000) 486,069 192,888
Adjusted weighted average number of shares in issue (thousand) 1,520,000 1,276,022
Basic and diluted earnings per share (RMB) 0.3198 0.1512
Upon incorporation on 1 September 2005, the Company issued 300,000,000 shares at par value of
RMB1 each to Xinjiang Non-ferrous Metal Industry (Group) Ltd. (-n8"
!) (“Xinjiang Non-ferrous” or the “Holding Company”), Shanghai Yilian Kuangneng Industry Co.,
Ltd. (jL$8"!), Zhongjin Investment (Group) Ltd. ("!), Xiamen
Zijin High-tech Co., Ltd. ("!), Xinjiang Xinying New Material Co., Ltd. (-
-"!) and Shaanxi Honghao Industry Co., Ltd. (/8"!). On 19 May
2006, the Company increased its paid-up capital from RMB300,000,000 to RMB380,000,000 by issuing
of 80,000,000 new shares at par value of RMB1 each to existing equity holders of the Company. In
addition, the weighted average number of shares in issue has been adjusted for the share split
effective on 27 September 2007 (Note 14).
Diluted earnings per share is equal to basic earnings per share as there was no dilutive potential
share outstanding for all periods presented.
11 Profit distribution
The net assets contributed by Xinjiang Non-ferrous as at 1 September 2005 was in excess of the net
assets which was approved by the State-owned Assets Supervision and Administration Commission
of Xinjiang Uygur Autonomous Region. The excessive net assets of RMB13,045,000 would be
distributed to Xinjiang Non-ferrous according to the reorganisation agreement. The distribution was
approved by the directors of the Company on 7 March 2007 and subsequently approved by the
Company’s equity holders on 22 March 2007. The Company paid cash of RMB13,045,000 to the
Holding Company as profit distribution in March 2007.
12 Dividend
Six months ended
30 June
(RMB’000) 2007 2006
(Unaudited)
Proposed special dividend 480,914 –
Pursuant to a resolution passed at the meeting of the Board of Directors held on 19 November 2007,
it was resolved to declare and pay a special dividend of RMB1.2656 per share, amounting to a total
of approximately RMB480,914,000 based on the original number of shares prior to the share split
(Note 14), to the Company’s Promoters.
A dividend in respect of the period from 1 September 2005 to 31 December 2006 of RMB1.0526 per
share, amounting to a total of RMB400,000,000, was proposed by the directors on 7 March 2007 and
subsequently approved by the Company’s equity holders on 22 March 2007. The dividend of
RMB400,000,000 was paid to the Company’s Promoters during the six months ended 30 June 2007.

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13 Accounts and bills receivable
As at
30 June 31 December
(RMB’000) 2007 2006
Accounts receivable (Note (a)) 6,615 4,478
Bills receivable 7,700 80
Less: Impairment provision (3,874) (3,459)
10,441 1,099

Notes:
(a) Accounts receivable is analysed as follows:
As at
30 June 31 December
(RMB’000) 2007 2006
Accounts receivable
– Fellow subsidiaries 1,507 1,907
– Other state-owned enterprises 498 498
– Third parties 4,610 2,073
Accounts receivable, gross 6,615 4,478
Aging analysis of the gross accounts receivable at the respective balance sheet date is as
follows:
As at
30 June 31 December
(RMB’000) 2007 2006
0 – 90 days 2,580 –
91 – 180 days 116 –
181 – 365 days – 233
Over 365 days 3,919 4,245
6,615 4,478

As at 30 June 2007 and 31 December 2006, the aging of bills receivable are all within 180
days.
(b) The credit period of accounts receivable is generally from 1 to 3 months.
(c) Accounts receivable from related parties are unsecured, interest free and repayable in accordance
with the relevant contract entered into between the Group and these related parties. Accounts
receivable from third parties are unsecured and non-interest bearing.
(d) The carrying amounts of accounts and bills receivable approximate their fair values.

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(e) The movements of impairment of receivables are as follows:
As at
30 June 31 December
(RMB’000) 2007 2006
Opening balance 3,459 4,059
Additional/(write-back) provision 415 (600)
Closing balance 3,874 3,459
14 Share capital
Number of Share Capital
shares capital reserve Total
(RMB’000) (RMB’000) (RMB’000)
At 1 January 2006 300,000,000 300,000 62,712 362,712
Issue of new shares for the
acquisition of land use rights from
Holding Company 58,551,000 58,551 20,521 79,072
Capital contribution of cash from other
equity holders of the Company 21,449,000 21,449 7,517 28,966
At 31 December 2006 and
30 June 2007 380,000,000 380,000 90,750 470,750
Pursuant to a resolution passed in the extraordinary shareholders meeting on 10 May 2006, the
Company increased its registered capital from RMB300,000,000 to RMB380,000,000 by creation of
80,000,000 shares of RMB1 each. 58,551,000 shares of RMB1 each were issued to Xinjiang Non-
ferrous for the acquisition of land use rights at fair value of approximately RMB79,072,000 contributed
to the Company and 21,449,000 shares of RMB1 each were issued to the other five promoters of the
Company for capital contribution of cash of approximately RMB28,966,000. The fair value of land use
rights was determined by market price and valued by a qualified PRC valuer. The land use rights
acquired from Xinjiang Non-ferrous were administratively authorised land. Xinjiang Non-ferrous
confirmed that they would pay the charges to government if the Company transfers such land use
rights to third party.
Pursuant to a resolution of the shareholders of the Company dated 11 May 2007 and the approval
from China Securities Regulatory Commission dated 29 August 2007, each share of RMB1 was
subdivided into four shares of RMB0.25 each with effect from 27 September 2007. The total number
of shares immediately after the share split was 1,520,000,000.
In October 2007, the Company issued 690,000,000 H shares at HK$6.50 per H share of the Company
for cash (including 600,000,000 new H shares of the Company and over-allotment of 90,000,000 H
shares of the Company on 12 October 2007) in connection with the Company’s Global Offering and
listing of the Company’s H shares on

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15 Long-term payables
As at
30 June 31 December
(RMB’000) 2007 2006
Mining rights payable (Note) 124,138 119,947
Early retirement benefit obligation 5,047 6,066
129,185 126,013

Less: Amounts due within one year (7,195) (4,011)
121,990 122,002

Analysis of mining rights payable
Current 5,573 1,382
Non-current 118,565 118,565
124,138 119,947

Note:
The fair value of mining rights payable is estimated based on discounted future cash flow using
applicable interest rates for loan facility offered to the Group with terms of the same maturities and
characteristics.
Pursuant to the Mining Rights Transfer Agreement dated 3 September 2005 (the “Mining Rights
Transfer Agreement”), the Company obtained the mining rights to the Company’s mine in Kalatongke
(the “Kalatongke Mine”) from Xinjiang Non-ferrous. On 25 July 2007, the Company entered into a new
agreement with Xinjiang Non-ferrous (the “New Agreement”) to terminate the Mining Rights Transfer
Agreement pursuant to which the Company acquired the mining rights at Kalatongke Mine from
Xinjiang Non-ferrous at a consideration of approximately RMB297,332,000 to be paid by 30 instalments
over 30 years. Pursuant to the New Agreement, it was agreed that Xinjiang Non-ferrous will refund
the money that the Company paid in the past two years pursuant to the Mining Right Transfer
Agreement. On 25 July 2007, the Company entered into an agreement with the Land and Resources
Department of Xinjiang Uygur Autonomous Region (the “New Mining Rights Transfer Agreement”) to
acquire for the mining rights at Kalatongke Mine at a consideration of approximately RMB297,021,000.
Pursuant to the New Mining Rights Transfer Agreement, the consideration would be settled by a
down-payment of approximately RMB59,466,000 and the remaining balance of approximately
RMB237,555,000 would be paid in the next nine years with interest charged at market rate. Since
these agreements were entered after 30 June 2007, these agreements have not affected the Company’s
ownership of the mining rights as at 30 June 2007.
16 Trade payables
Trade payables are analysed as follows:
As at
30 June 31 December
(RMB’000) 2007 2006
Trade payables
– Fellow subsidiaries 8,182 11,848
– Other state-owned enterprises 2,933 6,790
– Third parties 33,273 41,752
44,388 60,390

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As at 30 June 2007 and 31 December 2006, the aging analysis of trade payables are as follows:
As at
30 June 31 December
2007 2006

0 – 90 days 30,113 40,146
91 – 180 days 4,709 4,260
181 – 365 days 2,438 13,640
Over 365 days 7,128 2,344
44,388 60,390

Trade payables are repayable according to normal trade terms within one year.
The carrying amounts of trade payable approximate their fair values.
RESULTS REVIEW

1. Market Review
Nickel
As indicated by the London Metal Exchange (“LME”) at its website (www.lme.com),
world nickel prices have fluctuated during the period from 1 January 2007 to 30 June
2007 (the “Reporting Period”) with spot nickel prices varying from a low of
approximately US$33,000 per tonne in January 2007 to a high of approximately
US$51,500 per tonne in May 2007 and retreated to approximately US$36,200 per
tonne towards the end of June 2007.
In the PRC market, as indicated by the Changjiang spot rates of Shanghai Non-
ferrous Metal (jnc$) at its website (www.smm.com.cn), nickel
prices for the Reporting Period averaged at RMB401,337 per tonne, representing an
increase of approximately 148% as compared with RMB162,016 per tonne for the
same period in 2006.
Copper
World copper prices have also fluctuated during the Reporting Period with LME spot
copper prices varying from a low of approximately US$6,225 per tonne in January
2007 to a high of approximately US$8,325 per tonne in May 2007 and retreated to
approximately US$7,560 per tonne towards the end of June 2007.
In respect of the PRC market, according to Shanghai Non-ferrous Metals (j
nc) at its website (www.smm.com.cn), the average copper spot price slightly
increased during the Reporting Period by approximately 9% to RMB61,249 per tonne
from RMB56,176 per tonne for the same period in 2006.
Nickel and copper prices are affected by numerous factors beyond our control as
described further in the section headed “Risk Factors” of the prospectus of the
Company dated 27 September 2007 (the “Prospectus”).
Commodity prices of nickel and copper are inclusive of value-added tax.

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2. Business Review
For the Reporting Period, the Group achieved a marginal increase in sales volume of
nickel cathode to 1,770.3 tonnes from 1,767.9 tonnes for the same period in 2006.
However, sales volume of copper cathode dropped to 1,517.0 tonnes from 1,869.3
tonnes, and sales volume of copper concentrate also decreased to 4,805.0 tonnes
from 5,102.8 tonnes. The major reason for such decreases was the over-haul of the
Group’s production facilities in May 2007. During the Reporting Period, the Group
continued to invest in mining and ore processing operations for its Kalatongke Mine
and for the expansion of the Company’s refinery operation in Fukang, Xinjiang.
On 25 May 2007, the Company disposed its 57% equity interest in Xinjiang Zhongxin
Mining Company Limited (-:4$8"!) to an independent third party
for a consideration of RMB33,060,000.
The directors of Company believe that the PRC economy will maintain a moderate
overall growth despite certain macro-economic control measures to be launched in a
continuous manner by the PRC government to curb inflation and stabilise the stock
markets. Based on the economic conditions and the robust demand of nickel products
in the PRC, the directors of the Company consider that the current underlying supply
and demand conditions in the PRC nickel market remain supportive with the prevailing
nickel price. In the second half of 2007, the Company will continue its investment
plan in expanding its refinery operation and strive to make progress towards its goal
for the year and beyond.
3. Financial Review
Summary
The consolidated interim financial statements of the Group for the Reporting Period
have been audited by PricewaterhouseCoopers, Certified Public Accountants, Hong
Kong. There were no significant changes in accounting policies.
For the Reporting Period, the Group recorded a profit attributable to equity holders of
RMB486.1 million, representing a 152% increase from the same period in 2006 and
outperforming the estimated profit of RMB466.0 million as stated in the Prospectus
by approximately 4.3%.
Turnover and gross profit
For the six months ended For the six months ended
30 June 2007 30 June 2006
(Unaudited)
% of % of
RMB’000 turnover RMB’000 turnover +/(-) %
Nickel cathode 567,119 77.5% 241,069 62.2% 135.3%
Copper cathode 78,383 10.7% 89,491 23.1% (12.4)%
Copper concentrate 67,889 9.3% 48,437 12.5% 40.1%
Other products 18,353 2.5% 8,387 2.2% 118.8%
Total turnover 731,744 100.0% 387,384 100.00% 88.9%
Cost of sales 204,228 27.9% 160,027 41.3% 27.6%
Gross profit 527,516 72.1% 227,357 58.70% 132.0%

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Total turnover for the Reporting Period increased by 88.9% to approximately RMB731.7
million from RMB387.4 million for the same period in 2006. Such increase was primarily
due to the increase in average selling prices of nickel cathode and copper products
and other metal prices in general.
Sales of nickel cathode were 1,770.3 tonnes during the Reporting Period, yielding a
turnover of approximately RMB567.1 million and representing an increase of 135.3%
as compared with that for the same period in 2006. It was mainly due to the average
selling price of nickel cathode soaring by 134.9% to RMB320,352 per tonne from
RMB136,359 per tonne for the same period in 2006. Turnover of copper products for
the Reporting Period increased by 6.1% to RMB146.3 million from RMB137.9 million
for the same period in 2006, mainly due to the increases in average selling prices of
copper cathode and copper concentrate by 7.9% and 48.8%, respectively. Turnover
of other products was RMB18.4 million for the Reporting Period, an increase of
118.8% from RMB8.4 million for the same period in 2006, mainly due to the increases
of sales in palladium (#<), cobalt products (eK) and ultra-fine nickel powder (tZC
j).
Gross profit for the Reporting Period significantly increased by 132.0% to RMB527.5
million from RMB227.4 million for the same period in 2006. Gross profit margin for
the Reporting Period was approximately 72.1%, as compared with approximately
58.7% for the same period in 2006, mainly due to the increase in the average selling
price of nickel cathode.
Selling, marketing and administration expenses and finance costs
Selling and marketing expenses for the Reporting Period slightly dropped to RMB5.0
million from RMB5.4 million for the same period in 2006. Such decrease was primarily
due to a decrease in transportation and freight expenses as a result of decreases in
the sales volume of both copper cathode and copper concentrate to the provinces
outside Xinjiang in the first half 2007 as compared with the same period in 2006.
Administration expenses for the Reporting Period increased to RMB41.0 million from
RMB26.9 million for the same period in 2006, representing an increase of 52.4%.
Such increase was mainly due to increases in staff costs and resource compensation
fees as a result of the increased turnover.
Finance costs for the Reporting Period slightly increased by 2% to RMB5.0 million
from RMB4.9 million for the same period in 2006.
Other income
Other income for the Reporting Period amounted to RMB4.7 million, representing an
increase of 88.0% as compared with that for the same period in 2006, mainly due to
the increase in interest income as a result of the increase in cash and bank balances.

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DIRECTOR’S INTEREST
Directors’ and supervisors’ interest in contract
As at 30 June 2007, none of the directors or supervisors had a material interest, either
directly or indirectly, in any contract of significance to the business of the Company to
which the Company, its holding company, its subsidiary or any of its fellow subsidiaries
was a party during the period.
Interests of directors, chief executives and supervisors in share capital
As at 30 June 2007, none of the directors, chief executives or supervisors of the Company
or their respective associates had any interests or short positions in the shares, underlying
shares or debentures of the Company or any of its associated corporations (within the
meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of
Hong Kong) (the “SFO”)), which would be required to be notified to the Company and The
Stock Exchange of Hong Kong Limited (the “Stock Exchange”) pursuant to Part XV of the
SFO or which would be required, pursuant to Section 352 of the SFO, to be entered into
the register referred to therein or as otherwise required to be notified to the Company and
the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors
of Listed Issuers in the Rules Governing the Listing of Securities on the Stock Exchange
(the “Listing Rules”).
Directors’ and supervisors’ rights to acquire shares or debentures
At no time during the Reporting Period were rights to acquire benefits by means of the
acquisition of shares in or debentures of the Company granted to any directors and
supervisors of the Company or their respective spouse or minor children, or were any such
rights exercised by them; or was the Company, its holding company, its subsidiary or any
of its fellow subsidiaries a party to any arrangement to enable the directors or supervisors
of the Company to acquire such rights in any other body corporate.
DIVIDENDS

A dividend in respect of the period from 1 September 2005 to 31 December 2006 of
RMB1.0526 per share, amounting to a total dividend of RMB400,000,000, was proposed
by the directors on 7 March 2007 and subsequently approved by the Company’s equity
holders on 22 March 2007. The Company paid cash of approximately RMB385,120,000 of
dividend to its equity holders in March 2007 and RMB14,880,000 in April 2007.
Pursuant to the Board meeting held on 19 November 2007, the directors of the Company
proposed payment of a special dividend of RMB480,914,360 to the promoters of the
Company in respect of the retained profit as at 31 December 2006 and the profit for the
Reporting Period after appropriation to the statutory reserve.
PURCHASE, SALE OR REDEMPTIONS OF THE COMPANY’S LISTED SECURITIES
The Company’s H shares were listed on the main board of the Stock Exchange on 12
October 2007. The Company and its subsidiary did not purchase, sell or redeem any
securities of the Company during the Reporting Period.

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CORPORATE GOVERNANCE

The Company is committed to improving its corporate governance, and enhancing the
transparency to its shareholders. For the Reporting Period, in the opinion of the Board, the
Company has complied with the code provisions of the Code on Corporate Governance
Practices as set out in Appendix 14 of the Listing Rules.
BOARD OF DIRECTORS

The Board consists of nine directors, including four executive directors, two non-executive
directors and three independent non-executive directors. During the Reporting Period, the
Board convened three meetings (with an average attendance rate of 100%) in which all
four executive directors attended all Board meetings.
SUPERVISORY COMMITTEE

The Company has a supervisory committee comprising five supervisors to exercise
supervision over the Board and its members and senior management; and preventing
them from abusing their power and authorities and jeopardizing the legal interests of the
shareholders, the Company and its employees. The supervisory committee convened one
meeting during the Reporting Period (with an attendance rate of 100%).
MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS OF LISTED
ISSUERS

Since the Company listed its H shares on the Stock Exchange on 12 October 2007, the
Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix
10 of the Listing Rules was not applicable to the directors of the Company for the Reporting
Period.
AUDIT COMMITTEE

Written terms of reference of the audit committee of the Board (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 Committee provides
an important link between the Board and the Company’s auditors in matters falling within
the scope of the audit of the Company. The Audit Committee reviews the effectiveness of
the external audit and of internal controls, evaluate risks and will provide comments and
advice to the Board. The Audit Committee comprises one non-executive director, namely,
Mr. Zhou Chuanyou and two independent non-executive directors, namely, Mr. Chen Jianguo
and Mr. Ng Yuk Keung. The Audit Committee is chaired by Mr. Chen Jianguo. The Audit
Committee has reviewed the audited financial results of the Company for the Reporting
Period and considered that they are in compliance with the relevant accounting standards,
and that the Company has made appropriate disclosure thereof.
By Order of the Board
Xinjiang Xinxin Mining Industry Co., Ltd.
Yuan Ze
Chairman
Xinjiang, the PRC, 19 November 2007


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As at the date of this announcement, the executive directors are Mr. Yuan Ze, Mr. Shi
Wenfeng, Mr. Zhang Guohua and Mr. Liu Jun; the non-executive directors are Mr. Zhou
Chuanyou and Mr. Niu Xuetao; and the independent non-executive directors are Mr. Chen
Jianguo, Mr. Sun Baosheng and Mr. Ng Yuk Keung.