Financial Performance - The company's operating revenue for Q1 2022 was ¥746,844,037.01, representing a year-on-year increase of 22.43%[6] - The net profit attributable to shareholders was ¥32,568,552.19, showing a decrease of 10.18% compared to the same period last year[6] - The basic earnings per share (EPS) was ¥0.016, down by 10.11% year-on-year[6] - Total operating revenue for Q1 2022 was 746,844,037.01 CNY, an increase of 22.3% compared to 610,016,393.57 CNY in Q1 2021[36] - Net profit for Q1 2022 was 32,598,866.40 CNY, a decrease of 10.5% from 36,269,407.00 CNY in Q1 2021[38] - Earnings per share for Q1 2022 were 0.0160 CNY, compared to 0.0178 CNY in Q1 2021[40] - Other income for Q1 2022 was 4,467,316.68 CNY, significantly higher than 1,120,727.73 CNY in Q1 2021, showing improved financial performance[36] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,300,998,386.29, an increase of 1.76% from the end of the previous year[9] - The company's current assets amounted to approximately ¥1.03 billion, up from ¥995.47 million in the previous year, indicating an increase of about 3.5%[31] - The total liabilities of the company were approximately ¥1.92 billion, slightly up from ¥1.91 billion, reflecting a marginal increase of about 0.7%[34] - The company reported a significant liability of 629,446,290.27 RMB, including a principal repayment of 492,756,063.13 RMB and delayed performance fees of 136,690,227.14 RMB[19] Production and Sales - The production of zinc ingots (including zinc alloys) in Q1 2022 was 9,656.26 tons, a year-on-year decrease of 20.20%[10] - The sales volume of zinc ingots in Q1 2022 was 9,861.41 tons, down by 25.87% compared to the previous year[10] Cash Flow - The company's cash flow from operating activities was ¥37,418,843.27, with no applicable year-on-year comparison provided[6] - Cash flow from operating activities for Q1 2022 was 37,418,843.27 CNY, a significant improvement from a negative cash flow of -16,501,233.52 CNY in Q1 2021[40] - The net increase in cash and cash equivalents was -$55.16 million, compared to -$67.69 million previously[41] - The ending balance of cash and cash equivalents was $142.66 million, up from $111.76 million in the previous period[41] Shareholder Information - The total number of common shareholders at the end of the reporting period is 127,817, with Sichuan Hongda Industrial Co., Ltd. holding 536,237,405 shares, accounting for 26.39% of the total share capital[15] - As of January 27, 2022, Sichuan Hongda's shareholding decreased by 10 million shares, now holding 536,237,405 shares, all of which are unrestricted circulating shares[18] Legal and Regulatory Issues - The company is currently involved in significant litigation, with a total of approximately ¥637.21 million in profit return and delayed performance fees owed to Jinding Zinc Industry[23] - The company has frozen assets including bank deposits of approximately ¥52.20 million and real estate valued at approximately ¥50.55 million due to ongoing legal disputes[23] - The company is facing a court ruling requiring it to pay approximately ¥16.80 million to Jianchuan Pengfa Zinc Industry, which has been accounted for in the 2020 financial results[26] Strategic Initiatives - The company aims to enhance overall revenue and profit levels by improving zinc processing and expanding into new materials and fine chemicals[21] - The company plans to increase production capacity of ammonia at its subsidiary to reduce costs of phosphate products and improve economic efficiency[21] - The company will focus on product structure adjustments and expanding sales channels to increase market share of high-value-added products[21] - The company intends to strengthen internal management to reduce manufacturing costs and enhance operational efficiency[21] - The company will broaden financing channels to ensure sufficient working capital for stable development[21] - The company emphasizes improving governance and internal control systems to enhance risk prevention capabilities[21]

Financial Performance - The company achieved a net profit attributable to the parent company of CNY 305,773,112.41 in 2021, with the parent company alone reporting a net profit of CNY 186,062,110.64[8]. - The company's operating revenue for 2021 was approximately RMB 2.91 billion, representing a 27.46% increase compared to RMB 2.28 billion in 2020[28]. - The net profit attributable to shareholders in 2021 was approximately RMB 305.77 million, a significant recovery from a net loss of RMB 2.25 billion in 2020[28]. - The basic earnings per share for 2021 was RMB 0.1505, compared to a loss of RMB 1.1055 per share in 2020[31]. - The total assets at the end of 2021 were approximately RMB 2.26 billion, a decrease of 2.84% from RMB 2.33 billion at the end of 2020[31]. - The company's net assets attributable to shareholders increased to approximately RMB 348.76 million, a 619.24% increase from RMB 48.49 million in 2020[31]. - The cash flow from operating activities for 2021 was approximately RMB 132.44 million, a recovery from a negative cash flow of RMB 23.86 million in 2020[28]. - The weighted average return on equity for 2021 was 151.77%, an increase of 343.24 percentage points from -191.47% in 2020[31]. - The company reported a significant increase in net profit margins, indicating improved operational efficiency and profitability[28]. Market Strategy and Development - The company plans to enhance its competitive advantage in the non-ferrous metal zinc smelting and processing sector, focusing on improving overall revenue and profit levels through new equipment and process improvements[4]. - The company aims to expand its market share in phosphate and high-value-added products by adjusting product structure and enhancing sales channels[7]. - The company plans to continue expanding its market presence and invest in new product development to drive future growth[28]. - The company is committed to reducing manufacturing costs and management expenses while optimizing personnel allocation to enhance operational efficiency[7]. - The company will invest in new products, including compound fertilizers and high-nutrient phosphate products, to improve profitability[7]. - The company plans to enhance product innovation and development of high-value products such as zinc alloys and high-concentration ammonium phosphate[150]. Risk Management and Financial Stability - The company will focus on risk management and internal control system improvements to ensure long-term development[7]. - The company is actively addressing uncertainties affecting its ongoing operations through communication and negotiation with involved parties[4]. - The company has received an unqualified audit report with an emphasis on significant uncertainties related to going concern, reflecting the company's financial status and operational results[4]. - The company will continue to strengthen communication with financial institutions to secure sufficient working capital for stable development[7]. - The company faces risks related to contract disputes, including a court ruling that invalidated its 60% stake in Jinding Zinc Industry, leading to a profit return of approximately 1.07 billion yuan[152]. Production and Capacity - The company has a zinc ingot production capacity of 100,000 tons per year and a zinc alloy production capacity of 100,000 tons per year[50]. - The company’s phosphoric acid production capacity includes 100,000 tons/year of high-nutrient ammonium phosphate and 300,000 tons/year of compound fertilizer, meeting both domestic and international market demands[55]. - The company produced 36,090 tons of phosphate products against a capacity of 350,000 tons/year in 2021[67]. - The total production of zinc ingots (including zinc alloys) was 53,980.06 tons, a decrease of 17.02% year-over-year[79]. - The company has increased its purchase of external zinc ingots by 26,723.214 tons while reducing its own zinc ingot production by 39,387.951 tons due to high procurement costs[117]. Environmental and Sustainability Initiatives - The company has implemented upgrades to its environmental facilities, focusing on resource recovery and ultra-low emissions treatment to meet future green factory standards[111]. - The company has made significant investments in environmental upgrades and new technology to enhance operational efficiency[130]. - The company has achieved IATF16949:2016 certification for its hot-dip zinc alloy ingots, enhancing its competitive advantage in high-end applications such as the automotive industry[111]. - The company has implemented advanced pollution control measures to mitigate environmental risks associated with hazardous chemical production[163]. Corporate Governance and Compliance - The company has established a robust corporate governance structure, holding multiple board meetings to ensure compliance and protect shareholder rights[167]. - The internal control system has been strengthened, with an internal control self-evaluation report prepared and audited, ensuring the authenticity and completeness of the company's assets[169]. - The company has maintained a transparent relationship with investors, ensuring equal access to information through designated disclosure platforms[169]. - The board of directors has ensured complete operational independence from the controlling shareholder, with no significant differences in governance structure[172]. - The company has not been penalized by securities regulatory authorities in the past three years[199]. Future Outlook - In 2022, the company plans to achieve revenue of 2.8 billion yuan and control operating costs at 2.5 billion yuan, with a fixed asset investment of 50 million yuan[151]. - The company expects to see growth in zinc demand due to a recovery in the real estate sector and infrastructure projects over the next five years[144]. - The phosphate chemical industry is anticipated to remain in a tight supply-demand balance, with no new capacity expected due to environmental regulations[146]. - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[181].

Financial Performance - The company's operating revenue for Q3 2021 was ¥735,044,068.78, representing a year-on-year increase of 21.76%[7] - The net profit attributable to shareholders for the same period was ¥70,510,762.72, with a year-to-date net profit of ¥293,447,979.19[7] - The basic earnings per share for Q3 2021 was ¥0.0347, while the diluted earnings per share was also ¥0.0347[9] - The company's operating revenue increased by 30.16% compared to the same period last year, primarily due to rising prices and sales volume of non-ferrous products and phosphate chemical products[15] - Net profit for the first three quarters of 2021 was ¥293,509,615.77, compared to a net loss of ¥301,814,183.53 in the same period of 2020[46] - The company achieved a total comprehensive income of ¥293,504,756.09, compared to a loss of ¥302,477,735.35 in the previous year[46] - Earnings per share for the first three quarters of 2021 was ¥0.1444, recovering from a loss of ¥0.1485 in the same period of 2020[46] Assets and Liabilities - The total assets at the end of the reporting period were ¥2,191,739,170.45, a decrease of 5.82% compared to the end of the previous year[9] - The company reported a total liability of ¥1,848,271,147.55, down from ¥2,278,081,662.52, indicating a reduction of approximately 18.9%[40] - The company’s non-current assets totaled ¥1,249,215,528.92, down from ¥1,521,560,890.39, reflecting a decrease of about 17.8%[38] - The company’s current assets increased to ¥942,523,641.53 from ¥805,634,796.85, representing a growth of about 17% year-over-year[34] - The company’s inventory decreased to ¥325,756,503.19 from ¥428,597,688.95, a decline of approximately 24%[34] Cash Flow - The company reported a cash flow from operating activities of ¥59,186,993.98 year-to-date, which decreased by 18.16% compared to the same period last year[7] - The net cash flow from operating activities decreased by 18.16% year-on-year, mainly due to increased cash payments for goods and services[15] - Cash flow from operating activities generated ¥59,186,993.98, down from ¥72,324,488.70 in the same period of 2020[49] - The cash inflow from operating activities totaled ¥1,712,797,183.42, an increase from ¥1,438,929,784.55 in the same period of 2020[49] - The company disposed of fixed assets and other long-term assets, generating cash inflow of ¥68,172,026.70, compared to ¥9,472,489.09 in the previous year[49] Shareholder Equity - The return on equity (ROE) for Q3 2021 was 22.87%, significantly lower than the previous year's 149.84%[9] - The net profit attributable to shareholders of the listed company increased, leading to an increase in equity attributable to shareholders by 607.77 million yuan compared to the same period last year[15] - The company's total equity attributable to shareholders increased to ¥343,197,366.72 from ¥48,490,044.45, a significant rise of approximately 608%[40] Production and Sales - Zinc ingot production in Q3 2021 was 13,641.59 tons, a decrease of 24.11% year-on-year, while sales volume was 13,795.37 tons, down 22.98%[11] Other Financial Activities - The company completed the judicial disposal of three properties, generating a total disposal price of 309 million yuan, with a gain of 156 million yuan recognized in the current period[15] - The company has signed a land guarantee agreement, resulting in a decrease in other non-current assets by 100% compared to the beginning of the year[15] - The company’s tax payable increased by 1,498.31 million yuan compared to the beginning of the year, mainly due to an increase in value-added tax payable[15] - The company has seen an increase in other current liabilities by 222.05 million yuan compared to the beginning of the year, primarily due to an increase in estimated related taxes[15] - The company holds a 22.1605% stake in Sichuan Trust, which is currently facing liquidity issues and regulatory scrutiny[23] Research and Development - Research and development expenses decreased to ¥74,521.95 from ¥167,075.49, indicating a reduction in R&D investment[44]

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥1,376,408,275.87, representing a 35.14% increase compared to ¥1,018,506,668.43 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was ¥222,937,216.47, a significant recovery from a loss of ¥73,910,763.73 in the previous year[20]. - Basic earnings per share for the first half of 2021 were ¥0.1097, a recovery from a loss of ¥0.0364 per share in the same period last year[21]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, reaching ¥46,564,937.75 compared to a loss of ¥90,228,080.89 in the previous year[20]. - The company's revenue for the current period reached ¥1,376,408,275.87, representing a 35.14% increase compared to ¥1,018,506,668.43 in the same period last year[40]. - The company achieved a revenue of 1.376 billion yuan and a net profit attributable to shareholders of 223 million yuan in the first half of 2021[31]. - The company reported a significant increase in tax payable, reaching ¥22,211,892.00, which is 1.03% of total assets, a 6,643.40% increase from the previous year[47]. - The company reported a net loss of CNY 4,971,370,667.41, an improvement from a loss of CNY 5,194,307,883.88 in the previous period[181]. - The company's total assets decreased to CNY 2,444,286,565.55 from CNY 2,635,936,057.70, representing a decline of 7.2%[185]. - The company's equity increased to CNY 642,856,136.64, up from CNY 462,809,428.94, marking a growth of 38.9%[185]. Cash Flow and Assets - The net cash flow from operating activities decreased by 59.60% to ¥32,991,818.90, down from ¥81,654,407.34 in the same period last year[20]. - The company's cash and cash equivalents were partially frozen, with ¥14,882,451.27 subject to judicial restrictions[50]. - Accounts receivable increased to ¥207,133,388.92, representing 9.65% of total assets, a 120.98% increase compared to the previous year[47]. - The company's cash and cash equivalents decreased to CNY 145,945,160.64 from CNY 180,714,130.15, representing a drop of 19.2%[179]. - The ending cash and cash equivalents balance was CNY 19,130,459.20, up from CNY 16,075,657.14 at the end of the first half of 2020[197]. - The company has frozen assets including a land parcel of 45,853.60 square meters located in Sichuan, as part of the ongoing legal proceedings[142]. Legal and Regulatory Issues - The company is currently involved in a legal dispute regarding its 60% stake in Yunnan Jinding Zinc Industry Co., which has resulted in a court ruling declaring the stake invalid, leading to a repayment obligation of 1.07 billion CNY[126]. - The company has been involved in multiple legal proceedings affecting its operations and financial standing[139]. - The company is actively managing its legal risks and pursuing appeals to protect its interests[139]. - The company has received a civil judgment requiring it to repay RMB 35,454,318.39 to Jinding Zinc Industry, with interest calculated at 1.5 times the LPR from September 27, 2020, until payment is completed[144]. - The company has been ordered to pay litigation costs of RMB 234,312 and preservation fees of RMB 5,000 as part of the court's ruling[144]. - The company has filed an appeal against the ruling, seeking to overturn the decision made by the Yunnan Provincial High People's Court[1]. Environmental and Safety Compliance - The company has implemented advanced pollution control measures, including a comprehensive wastewater treatment station and online monitoring systems to prevent environmental pollution[84]. - The company has established pollution prevention facilities, including gas absorption towers and washing towers, which are operating normally[98]. - The company has achieved a 97.89% compliance rate in the storage and management of phosphogypsum waste[104]. - The company has committed to environmental protection and has publicly disclosed its environmental information at the factory entrance[112]. - The company has implemented measures to reduce carbon emissions, resulting in a reduction of over 17,000 tons of CO2 during the reporting period[118]. - The company has established a comprehensive emergency response plan for environmental incidents, following national guidelines[108]. Strategic Initiatives and Market Position - The company has formed strategic partnerships with several research institutions to enhance product structure and sustainable development through technology innovation[34]. - The company plans to enhance production of phosphate products to meet the growing demand from traditional agriculture and emerging industries like new energy batteries[39]. - The company is focusing on optimizing its product structure and enhancing competitive advantages to improve profitability amid financial constraints[81]. - The company is actively responding to national policies promoting the development of new fertilizers, aiming for "water-saving agriculture" and "green ecology"[36]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[1]. - The company announced a strategic acquisition of a smaller tech firm for $300 million to bolster its product offerings[1]. Shareholder and Governance Matters - The company has appointed three new non-independent directors, effective from the shareholders' meeting on May 21, 2021[92]. - The company has not reported any non-operating fund occupation by its controlling shareholder or related parties during the reporting period[123]. - The company confirms that the pledge and freeze of shares will not impact its production, operation, control, or governance structure[166]. - The company maintains independence in assets, business, and finance from the controlling shareholder[166]. - The controlling shareholder, Sichuan Hongda Industrial Co., Ltd., holds 546,237,405 shares, accounting for 26.88% of the total share capital[164].

Financial Performance - Operating income for the period was CNY 610,016,393.57, representing a year-on-year increase of 32.62%[12] - Net profit attributable to shareholders of the listed company was CNY 36,260,754.93, a significant recovery from a loss of CNY 15,290,381.67 in the same period last year[12] - The weighted average return on net assets increased by 54.69 percentage points to 54.03% compared to the previous year[12] - The company's operating revenue for the current period reached ¥610,016,393.57, an increase of 32.62% compared to ¥459,978,836.02 in the same period last year[24] - Total operating revenue for Q1 2021 was CNY 610,016,393.57, an increase of 32.5% compared to CNY 459,978,836.02 in Q1 2020[66] - Net profit for Q1 2021 reached CNY 36,269,407.00, a significant recovery from a net loss of CNY 15,409,316.33 in Q1 2020[66] - Total comprehensive income amounted to 24,070,655.67, down from 32,286,104.90 in the previous period[72] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,247,311,360.77, a decrease of 3.43% compared to the end of the previous year[12] - Current assets decreased to ¥746,503,101.99 from ¥805,634,796.85, a decline of approximately 7.3%[51] - Total liabilities decreased to ¥2,161,262,777.34 from ¥2,278,081,662.52, a reduction of about 5.1%[56] - The company's total liabilities decreased to CNY 2,114,222,418.04 from CNY 2,173,126,628.76, a reduction of approximately 2.7%[62] - Non-current assets totaled ¥1,500,808,258.78, down from ¥1,521,560,890.39, a decrease of about 1.4%[54] - Current liabilities decreased to ¥2,146,474,888.69 from ¥2,246,263,232.19, a decrease of approximately 4.4%[54] Cash Flow - The net cash flow from operating activities was negative at CNY -16,501,233.52, a decline of 155.12% year-on-year[12] - Cash flow from operating activities showed a net outflow of -16,501,233.52, compared to a net inflow of 29,934,828.73 in the previous year[76] - Cash flow from investing activities resulted in a net outflow of -11,864,197.34, an improvement from -39,466,520.08 in the prior year[78] - Cash flow from financing activities recorded a net outflow of -39,336,579.07, compared to -80,165,495.58 in the previous year, indicating a reduction in outflows[78] Shareholder Information - Net assets attributable to shareholders of the listed company increased by 76.82% to CNY 85,740,946.53 compared to the end of the previous year[12] - The total number of shareholders at the end of the reporting period was 96,444[17] - Shareholders' equity increased to ¥86,048,583.43 from ¥49,114,024.72, an increase of approximately 75.1%[56] - Basic earnings per share for Q1 2021 were CNY 0.0178, compared to a loss per share of CNY -0.0075 in Q1 2020[68] Production and Sales - Zinc ingot production for Q1 2021 was 12,100.73 tons, with a year-on-year increase of 0.35%[17] - The sales volume of zinc ingots in Q1 2021 was 13,302.99 tons, reflecting a year-on-year increase of 5.10%[17] Operational Strategies - The company plans to take measures to eliminate uncertainties affecting its ongoing operations to ensure stable and healthy development[30] - The company aims to strengthen its competitive advantages in metallurgy and expand market share of its advantageous products while optimizing product sales channels[32] - The company plans to enhance internal management to reduce manufacturing costs and management expenses, thereby improving operational efficiency[32] - The company is focused on optimizing resource allocation and disposing of idle assets to improve asset operation efficiency[33] - The company has identified potential acquisition targets to enhance its market position and product offerings[64] Legal and Compliance - The company has completed judicial disposal of three properties due to a lawsuit, with total proceeds amounting to ¥309,177,032, which will be used to pay profit return to Jinding Zinc Industry[39] - The company has received a first-instance judgment requiring it to pay ¥35,454,318.39 to Jinding Zinc Industry, along with associated overdue payment fees[41] Research and Development - Research and development expenses for Q1 2021 were CNY 27,614.36, a decrease from CNY 39,984.06 in Q1 2020[66] - R&D expenses decreased from 39,984.06 million to 27,614.36 million, a reduction of approximately 30.9%[72]

Financial Performance - The company reported a net profit attributable to the parent company of -2,246,326,308.10 CNY for the year 2020, with a cumulative undistributed profit of -5,555,756,705.31 CNY by the end of the year[12]. - The company's operating revenue for 2020 was ¥2,280,777,892.06, a decrease of 10.39% compared to ¥2,545,255,748.56 in 2019[34]. - The net profit attributable to shareholders for 2020 was -¥2,246,326,308.10, a significant decline from a profit of ¥84,503,461.45 in 2019, representing a decrease of 2,758.27%[34]. - The net cash flow from operating activities for 2020 was -¥23,857,240.33, down 138.46% from ¥62,024,107.41 in 2019[34]. - The total assets at the end of 2020 were ¥2,327,195,687.24, a decrease of 49.96% from ¥4,650,664,204.55 at the end of 2019[34]. - The net assets attributable to shareholders at the end of 2020 were ¥48,490,044.45, a drastic drop of 97.89% compared to ¥2,296,369,390.26 at the end of 2019[34]. - The basic earnings per share for 2020 was -¥1.1055, a decrease of 2,757.45% from ¥0.0416 in 2019[35]. - The weighted average return on net assets for 2020 was -191.47%, a decrease of 195.21 percentage points from 3.74% in 2019[35]. - The company reported a non-recurring loss of approximately RMB 1.91 billion for the year 2020, significantly impacted by asset impairment and other extraordinary items[41]. Operational Challenges - The company experienced a decrease in zinc production and sales volume due to tight supply of zinc concentrate, resulting in a decline in profitability compared to the previous year[45]. - The company's financial results were adversely affected by the COVID-19 pandemic, leading to reduced demand and lower prices for zinc products[47]. - The company reported a significant liquidity issue due to the suspension of the Sichuan Trust TOT project in 2020, which was caused by regulatory violations[174]. - The company faced significant litigation, with a total litigation amount of 2,117,076,022 RMB related to a contract dispute involving its subsidiary, Yunnan Jinding Zinc Industry Co., Ltd.[193]. - The Yunnan Provincial High People's Court froze the company's deposits amounting to 210,242,161 RMB and equity stakes in Sichuan Trust and Jinding Zinc, restricting any changes or transfers during the freeze period[193]. Strategic Initiatives - The company aims to strengthen its market position by expanding market share of its competitive products and adjusting its product structure to enhance overall revenue and profit levels[8]. - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[1]. - The company aims to expand its production capacity and improve economic efficiency in response to the increasing importance of food security and fertilizer supply[48]. - The company is focusing on resource recycling in non-ferrous and chemical businesses, integrating zinc smelting and phosphate chemical operations[143]. - The company plans to enhance product development in high-value-added products such as zinc alloys and compound fertilizers[143]. Financial Management - The company has established good relationships with financial institutions to ensure normal loan turnover and is actively exploring other financing channels[9]. - The company will not distribute profits or increase capital reserves for the year due to negative cumulative undistributed profits[12]. - The company has committed to taking all possible measures to protect the value of its investment in Sichuan Trust and safeguard shareholder interests[136]. - The company has signed a financial support agreement with banks to ensure existing credit limits remain unchanged and loans are repaid normally[154]. Risk Management - The company emphasizes the importance of risk management and has outlined various risks and corresponding measures in its report[17]. - The company is currently facing funding risks due to significant litigation, impacting financing channels and scale[154]. - The company has undertaken measures to track the risk management of Sichuan Trust, but has been unable to obtain sufficient information for reliable impairment estimates[174]. - The company fully provided for impairment on its long-term equity investment in Sichuan Trust, considering it a reasonable judgment based on accounting standards[175]. Audit and Compliance - The company has received a qualified audit opinion from its auditing firm regarding its 2020 financial statements, indicating significant uncertainties related to its ongoing operations[4]. - The annual audit firm issued a qualified opinion on the company's 2020 financial report, but no significant violations of accounting standards were found[176]. - The audit report from Sichuan Huaxin (Group) CPA firm included a reserved opinion related to substantial uncertainties regarding the company's ability to continue as a going concern[171]. Production and Sales - The company produced 64,400 tons of electrolytic zinc in 2020, with a production capacity of 100,000 tons per year[68]. - The actual production of zinc alloys was 50,400 tons in 2020, with the same production capacity of 100,000 tons per year[68]. - The company maintained a production capacity of 360,000 tons per year for phosphate products, achieving an actual production of 360,400 tons in 2020[68]. - The company produced 137,600 tons of compound fertilizer in 2020, with a production capacity of 200,000 tons per year[68]. - The production of zinc ingots (including zinc alloys) was 65,049.87 tons, a decrease of 19.83% year-on-year, while sales dropped by 23.12% to 66,200.35 tons[73]. Market Conditions - The average monthly price of 0 zinc dropped from 18,400 yuan/ton in January to a low of 15,400 yuan/ton, before stabilizing at 21,500 yuan/ton[63]. - Zinc consumption is primarily driven by the real estate and automotive industries, with potential declines in these sectors posing risks to zinc product sales[156]. - The global zinc concentrate supply is expected to remain tight in the first half of 2021, with a potential shift to oversupply in the second half[138]. - China's zinc consumption accounts for over 50% of global demand, indicating significant growth potential in the domestic market[139].

Financial Performance - Operating income for the period from January to September was CNY 1,622,171,167.12, a decrease of 12.25% year-on-year[18]. - Net profit attributable to shareholders of the listed company was a loss of CNY 301,673,373.36, a decline of 509.33% compared to the same period last year[18]. - Total revenue for the period was CNY 1,622,171,167.12, a decrease of 12.25% compared to the previous year[25]. - The company reported a net loss of CNY 227,733,839.48 for the current quarter, compared to a net profit of CNY 7,789,532.19 in the same quarter last year, indicating a significant decline in profitability[60]. - The total comprehensive income for the quarter was CNY -232,740,986.59, compared to CNY -12,348,169.91 in the same quarter last year, highlighting a worsening financial position[62]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,246,290,276.78, a decrease of 8.69% compared to the end of the previous year[18]. - The company's total liabilities decreased to ¥2,235,908,253.05 from ¥2,335,415,046.74, a reduction of approximately 4.3%[46]. - The total equity decreased to CNY 2.40 billion from CNY 2.66 billion, indicating a decline of approximately 9.8%[54]. - The company’s non-current assets totaled ¥3,437,339,403.28, down from ¥3,752,332,300.47, indicating a decrease of approximately 8.4%[42]. Cash Flow - The net cash flow from operating activities for the period was CNY 72,324,488.70, an increase of 106.70% year-on-year[18]. - The net cash flow from financing activities was -CNY 71,041,320.66, compared to -CNY 44,847,571.10 in the same period last year[18]. - The company's cash and cash equivalents at the end of the third quarter of 2020 were CNY 226,089,479.56, down from CNY 286,593,130.32 at the end of the same period in 2019, a decrease of approximately 21.06%[75]. - The cash flow from operating activities netted CNY 72,324,488.70 in the third quarter of 2020, compared to CNY 34,990,147.65 in the same quarter of 2019, showing an increase of approximately 106.73%[73]. Shareholder Information - The number of shareholders at the end of the reporting period was 91,743, with the largest shareholder holding 26.88% of the shares[24]. - Basic earnings per share were -0.1485 CNY, a decrease of 509.09% compared to the same period last year[18]. Operational Challenges - The company has faced significant uncertainties regarding its ability to continue as a going concern due to ongoing legal disputes[30]. - The company continues to monitor the litigation case closely, as further court actions may adversely affect its ongoing operations[34]. - The company reported a provision for delayed performance of ¥38,495,396.53 for the first nine months of 2020, which impacted the current profit and loss[34]. Investment and Expenses - Investment income showed a significant decline, with a loss of CNY 259,345,000.02, down 320.19% year-on-year due to economic downturns and the impact of COVID-19[28]. - Research and development expenses for Q3 2020 were CNY 83.41 million, significantly lower than CNY 653.54 million in Q3 2019, showing a reduction of about 87.3%[57]. - The company reported a decrease in management expenses to CNY 84,184,301.25, down 27.88% due to the resumption of trial production at a subsidiary[28].

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 1,018,506,668.43, a decrease of 19.78% compared to CNY 1,269,647,080.59 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was a loss of CNY 73,910,763.73, representing a decline of 212.00% compared to a profit of CNY 65,991,569.08 in the previous year[23]. - The basic earnings per share for the first half of 2020 was -CNY 0.0364, a decrease of 212.00% compared to CNY 0.0325 in the same period last year[26]. - The diluted earnings per share also stood at -CNY 0.0364, reflecting the same decline as the basic earnings per share[26]. - The company reported a net loss of ¥74,080,344.05, compared to a net profit of ¥65,903,271.02 in the previous period, indicating a significant decline in profitability[198]. - Total comprehensive income for the period was ¥-69,736,748.76, down from ¥76,613,817.51 in the prior period, reflecting a substantial decrease in overall financial performance[200]. - Operating profit was reported at ¥-74,271,873.09, a stark contrast to the operating profit of ¥66,361,201.30 from the previous period[198]. - The total profit before tax was ¥-74,080,344.05, compared to a profit of ¥65,899,748.68 in the previous period, showing a drastic decline in pre-tax profitability[198]. Cash Flow and Assets - The net cash flow from operating activities was CNY 81,654,407.34, an increase of 891.28% from CNY 8,237,232.06 in the same period last year[23]. - The total assets at the end of the reporting period were CNY 4,419,890,935.89, down 4.96% from CNY 4,650,664,204.55 at the end of the previous year[25]. - The net assets attributable to shareholders of the listed company decreased by 3.02% to CNY 2,227,015,873.48 from CNY 2,296,369,390.26 at the end of the previous year[23]. - Total current assets decreased to ¥728,264,845.50 from ¥898,331,904.08, a decline of approximately 18.9%[181]. - Total non-current assets decreased to ¥3,691,626,090.39 from ¥3,752,332,300.47, a decline of about 1.6%[185]. - Total liabilities decreased to ¥2,193,849,342.05 from ¥2,355,100,112.94, a reduction of approximately 6.9%[187]. - Current liabilities decreased to ¥2,176,652,232.91 from ¥2,335,415,046.74, a decline of about 6.8%[185]. Investment and Subsidiaries - The company recognized an investment loss of RMB 3,053.03 million from its stake in Sichuan Trust, a decrease of RMB 11,009.60 million compared to the previous year[35]. - The company reported a net profit attributable to the parent company of RMB -137,769,165.67 from its investment in Sichuan Trust Co., Ltd.[79]. - The company has invested 6 million yuan in Tibet Hongda Duolong Mining Co., Ltd., holding a 30% equity stake[68]. - The company has invested 1.9 million yuan in Sichuan Huaphosphor Technology Co., Ltd., holding a 9.5% equity stake[70]. - The company’s subsidiary, Jianchuan Yiyun Nonferrous Metals Co., Ltd., has been suspended from production since September 12, 2019, due to raw material supply issues[78]. Legal and Compliance Issues - The company is currently facing a legal risk regarding a contract dispute, with a required profit return of RMB 800,852,899.68 to Jinding Zinc Industry Co., Ltd.[82]. - The company is currently undergoing a significant litigation process regarding the invalidation of its 60% equity in Jinding Zinc Industry[112]. - The company has incurred legal fees totaling RMB 11,295,431.54 related to the litigation process[112]. - The company has signed a financial support agreement with banks to ensure that existing credit limits remain unchanged and loans are being repaid normally[84]. - The company has committed to strictly adhere to relevant laws and regulations regarding the issuance of new shares following the non-public offering, ensuring timely and accurate disclosure of significant information to investors[95]. Environmental Management - The company has been recognized for its environmental management, achieving a level of waste disposal capability that exceeds industry averages[3]. - The company emitted a total of 98.35 tons of SO2, 53.20 tons of NOX, and 0.306437 tons of lead compounds during the reporting period[128]. - The company has established a total of 14 exhaust outlets for gas emissions, with 0 outlets for wastewater[131]. - The company achieved compliance with emission standards, with SO2 and NOX emissions below 400 mg/m3 and 240 mg/m3 respectively[131]. - The company has implemented various pollution control measures, including alkaline washing and multi-stage scrubbing for SO2 and particulate matter reduction[131]. - The company has established a comprehensive pollution prevention system, including tail gas absorption towers and wastewater treatment stations[131]. - The company has a total of 532.33 tons of zinc-copper slag, with 100% of it safely stored and managed according to hazardous waste standards[139]. Shareholder and Capital Structure - The controlling shareholder, Sichuan Hongda Industrial Co., Ltd., holds 546,237,405 shares, accounting for 26.88% of the total share capital[158]. - As of the report date, 540,000,000 shares held by the controlling shareholder are pledged, representing 26.57% of the total share capital[158]. - The second largest shareholder, Xinhua Lian Holdings Co., Ltd., holds 175,436,620 shares, which is 8.63% of the total share capital[164]. - A total of 175,436,620 shares, representing 8.63% of the company's total share capital, have been judicially frozen since March 20, 2020[168]. - The company has reported that the judicial freezing of shares held by significant shareholders will not impact its daily operations[171]. Operational Adjustments and Strategies - The company has actively adjusted its production load and product structure in response to the challenges posed by the COVID-19 pandemic[42]. - The company is focusing on optimizing its product structure and enhancing its competitive edge to improve profitability amidst industry challenges[87]. - The company is actively pursuing new strategies for market expansion and product development, although specific figures were not disclosed in the report[186]. - The company has established a highly specialized marketing team to monitor market dynamics and price trends effectively[3]. - The company is committed to maintaining long-term cooperative relationships with financial institutions and suppliers to ensure a stable funding chain[84].

2020 年第一季度报告 公司代码：600331 公司简称：宏达股份 四川宏达股份有限公司 2020 年第一季度报告 1 / 21 2020 年第一季度报告 重要提示 . 一、 二、 公司基本情况 . 11Í 重要事项 . 四、 附录 . 目录 2 / 21 2020 年第一季度报告 单位：元 币种：人民币 一、 重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人黄建军、主管会计工作负责人帅巍 及会计机构负责人（会计主管人员）帅巍保证 季度报告中财务报表的真实、准确、完整。 1.4 本公司第一季度报告未经审计。 二、 公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | |-----------------------------------------------|------------------|----------------------|----------------------- ...

Financial Performance - The company reported a net profit attributable to shareholders of the parent company for 2019 of RMB 84,503,461.45, while the parent company achieved a net profit of RMB 134,420,767.91[11]. - The company's operating revenue for 2019 was ¥2,545,255,748.56, a decrease of 5.38% compared to ¥2,690,012,210.01 in 2018[28]. - The net profit attributable to shareholders of the listed company was ¥84,503,461.45, a significant recovery from a loss of ¥2,672,012,978.11 in 2018[28]. - The net cash flow from operating activities increased by 111.70% to ¥62,024,107.41 from ¥29,298,376.53 in the previous year[28]. - The basic earnings per share for 2019 was ¥0.0416, compared to a loss of ¥1.3150 per share in 2018[31]. - The total assets at the end of 2019 were ¥4,650,664,204.55, a decrease of 3.20% from ¥4,804,338,993.07 in 2018[31]. - The company's net assets attributable to shareholders increased by 3.54% to ¥2,296,369,390.26 from ¥2,217,810,692.78 in 2018[31]. - The company reported non-recurring gains and losses of ¥30,555,636.02 from government subsidies in 2019[37]. - The weighted average return on net assets increased by 78.60 percentage points to 3.74% in 2019 from -74.86% in 2018[31]. Operational Highlights - The company’s main operations include the smelting, processing, and sales of non-ferrous metals, particularly zinc, and the production and sales of phosphate chemical products[5]. - The company’s electrolytic zinc production capacity is 100,000 tons per year, with actual production reaching 81,135.77 tons in 2019[45]. - The company produced 33,100 tons of electrolytic zinc in 2019, with a production capacity of 100,000 tons per year[57]. - The production of zinc alloy reached 48,000 tons against a capacity of 100,000 tons per year[57]. - The company’s phosphate series products had a production capacity of 360,000 tons per year, with actual production of 297,600 tons in 2019[57]. - The company achieved a comprehensive utilization rate of 97.47% for phosphogypsum in 2019, reflecting its commitment to sustainable practices[48]. Market and Sales - The company achieved a significant increase in zinc product sales volume compared to the previous year, driven by lower procurement costs for zinc concentrate and improved production efficiency[42]. - The company’s main products, "Cishan" and "G Cishan" zinc ingots, are registered for trading on the Shanghai Futures Exchange and the London Metal Exchange, enhancing their market presence[48]. - The company’s marketing team has effectively adapted to market dynamics, contributing to stable sales and a strong reputation for its zinc products across various regions[48]. - The company’s industrial-grade monoammonium phosphate sales accounted for approximately 20% of the market share in the Northwest region, with a demand growth rate of about 10% annually[53]. Strategic Initiatives - The company plans to enhance cost control and optimize management in response to market changes, focusing on high-value new product development and production scale[6]. - The company aims to maintain communication with financial institutions to ensure stable loan turnover and expand financing channels to secure the funding chain[8]. - The company plans to continue expanding its market presence and invest in new product development[28]. - The company is focusing on the research and development of new zinc alloy products, including zinc-aluminum-magnesium alloys and zinc-copper-titanium alloys, with plans to invest more resources in these areas[79]. Environmental and Compliance - The company has implemented advanced pollution control measures, including tail gas treatment processes and closed-loop wastewater management, to mitigate heavy metal pollution risks[110]. - The company has established a wastewater treatment station that recycles wastewater without discharge, achieving a COD Cr emission of 0.66 tons[166]. - The company has implemented measures such as two-stage absorption and alkaline washing to ensure that waste gas emissions meet standards[167]. - The company has achieved a 100% treatment rate for hazardous waste, with proper storage and disposal measures in place[173]. - The company has not experienced any violations of environmental laws or pollution incidents during the reporting period[181]. Legal and Litigation Matters - The company has been involved in significant litigation, with the Yunnan Provincial High People's Court freezing RMB 210.24 million in deposits and equity stakes in Sichuan Trust and Jinding Zinc Industry, totaling RMB 135.65 million[140]. - The company faced a lawsuit regarding a contract dispute, with the involved amount being RMB 2.11 billion, resulting in a first-instance judgment against the company[144]. - The company has returned a total of RMB 1,074,102,155.4 to Yunnan Jinding Zinc Industry Co., Ltd. after deducting previously paid capital contributions of RMB 496,342,200[146]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 97,643, an increase from 92,764 in the previous month[191]. - The top shareholder, Sichuan Hongda Industrial Co., Ltd., holds 546,237,405 shares, representing 26.88% of total shares[191]. - The second-largest shareholder, Xinhua Lian Holdings Co., Ltd., holds 195,547,610 shares, accounting for 9.62% of total shares[191]. - The largest shareholder has pledged 540,000,000 shares, indicating a significant level of collateralization[191]. Future Outlook - The company plans to achieve an operating revenue of 2.5 billion yuan and an operating cost of 2.2 billion yuan for 2020, with a target of producing 80,000 tons of zinc ingots (zinc alloys) and 300,000 tons of phosphate products[104]. - The company anticipates that the global zinc market will face dual pressures of oversupply in zinc concentrate and refined zinc, making it difficult for zinc prices to recover in the next 1-2 years[101]. - The company is actively managing risks related to macroeconomic policies and industry dynamics that could affect profitability, particularly in the zinc and phosphate sectors[109].