Hengshi Mining Investments Limited

Climate Impact & Sustainability Data (2015)

The Group carried out performance assessment to stimulate employee initiatives, so as to enhance the operation efficiency of the Group.
As at 31 December 2015, the Group had 1,026 employees in total (1,447 employees in total as at 31 December 2014). The total remuneration expenses and the amounts of other employees’ benefit were approximately RMB85.1 million (the corresponding period in 2014: approximately RMB113.9 million).

The Company has adopted the code provisions in the Corporate Governance Code (the “Corporate Governance Code”) as set out in Appendix 14 to the Listing Rules as its own code of corporate governance.
The Company has established the Policy on Diversification of Members of the Board (the “Policy”) in November 2013, to ensure that in setting the composition of the Board, the Company will consider the diversification of members of the Board from various aspects, including but not limited to age, cultural and educational background, professional experience, skills and knowledge.

The iron ore industry experienced unprecedented challenge, which had huge influence on the Group’s operation results.
The macro-economy of China was complicated and fluctuating. Affected by factors including overcapacity and restructuring of industry, the economic growth showed indications of slowing down.
The domestic high-cost mines were forced out of the market, bringing further challenge to the domestic iron ore mining industry.
The average selling price of the Company also decreased from RMB 607.1/t to RMB 423.4/t, having negative effect on the operation results of the Group.
The recession of upstream and downstream markets, the slide of the product’s price as well as the decreasing domestic demand of iron ore further led to the intermittent discontinuation of some of our subsidiaries in the second half of the year, which had negative effect on the Group’s results.

all members of the Group had took positive measures including technology upgrade, refined management, adjustment of the production plan of high-cost mines and cutting down of staff to reduce cost
The Group has taken measures to cut cost, including improving productivity through facility upgrade, cutting personnel of administrative functions and increasing the levels of refined management.
positive marketing strategy was also adopted in an effort to deal with the challenge brought by decreasing downstream demand and lowering price.
The Group will adhere to its core value and keep close eye on the periodical and local opportunities of the domestic economy
The Group will leverage on its low-cost advantage and increase production and sale in good market conditions to hedge the risk of declining price.
The Group will also reduce cost by technology upgrade and refined management and cutting administrative expenses through reducing staff.

Climate Change Data