Financial Performance - In 2021, the net profit attributable to shareholders of the listed company was CNY 584,417,261.51, while the parent company achieved a net profit of CNY 1,438,146,515.29[7] - The company plans to distribute a cash dividend of CNY 1.20 per 10 shares, totaling CNY 610,954,988.16, which accounts for 104.54% of the net profit attributable to shareholders for the year[7] - The company's operating revenue for 2021 was CNY 21.72 billion, representing a year-on-year increase of 13.31%[19] - Net profit attributable to shareholders for 2021 was CNY 584.42 million, up 23.90% from the previous year[19] - The basic earnings per share for 2021 was CNY 0.1148, reflecting a 23.97% increase compared to 2020[19] - The weighted average return on equity (ROE) increased to 3.93%, up by 0.8 percentage points from the previous year[19] - The net profit after deducting non-recurring gains and losses was CNY 945.63 million, a significant increase of 128.36% year-on-year[19] - The total distributable profit for 2021 was CNY 730,269,772.08, after accounting for the surplus reserve and retained earnings[7] Cash Flow and Dividend Policy - The operating cash flow has shown continuous improvement, indicating a positive trend in the company's financial health[16] - The company has maintained a high cash dividend payout ratio since its listing, sharing development results with investors[16] - The net cash flow from operating activities for 2021 was CNY 3.24 billion, an increase of 21.29% year-on-year[19] - The company has implemented a cash dividend policy, distributing at least 10% of the annual distributable profits in cash, with a cumulative distribution of no less than 30% of the average annual distributable profits over the last three years[180] Asset Management - The asset-liability ratio has been decreasing for three consecutive years, reflecting an optimized capital structure[16] - The company's asset-liability ratio decreased to 39.85%, marking a continuous decline over six years[19] - Total assets at the end of the reporting period were CNY 28,589.72 million, a decrease of CNY 106.30 million, down 3.58% from the beginning of the year[64] - The company's total liabilities decreased by CNY 88.89 million to CNY 1,139.26 million, a decline of 7.24%[64] Production and Operations - The company completed zinc product production of 38.77 million tons in 2021, with zinc ingots at 29.08 million tons and zinc alloys at 9.69 million tons[29] - The company produced 241,300 tons of zinc concentrate in 2021, accounting for 5.83% of the domestic total, and 387,700 tons of refined zinc, representing 6.05% of the domestic output[49] - The company achieved a lead concentrate production of 89,900 tons, which is 4.58% of the domestic total, and refined lead production of 106,700 tons, accounting for 2.05% of the domestic market[50] - The company produced 57.48 tons of germanium products, which is 52.25% of the estimated domestic germanium metal output of 110 tons[51] - The company’s lead mining grade is 15.11%, significantly higher than the industry average of 6.73%[53] - The lead recovery rate in the company’s mining operations is 88.65%, above the industry average of 85.60%[53] - The zinc recovery rate is 94.12%, exceeding the industry average of 90.85%[54] - The company has established a comprehensive production capacity utilization rate of 95.75% for mining, selection, and smelting operations[55] Research and Development - The company filed for 6 key R&D projects at the national and provincial levels, significantly enhancing its technological capabilities[35] - Research and development expenses increased by 38.67% to CNY 74.19 million, indicating a stronger focus on innovation[66] - Total R&D expenditure for the year 2021 amounted to ¥623,781,058.39, representing 2.87% of total revenue[84] - The number of R&D personnel is 425, accounting for 4.98% of the total workforce[85] - The company applied for 120 patents in 2021, including 30 invention patents and 90 utility model patents, with a total of 759 valid patents by the end of the reporting period[86] Environmental Responsibility - The company is committed to environmental responsibility, with specific pollutant discharge data reported for its subsidiaries[190] - The company achieved a total industrial solid waste generation of 1.445 million tons, with all waste entrusted for comprehensive utilization[191] - The company reported a carbon emission of 80.80 thousand tons from its smelting division, with sulfur dioxide emissions at 275.48 tons[191] - The company has implemented a complete wastewater recycling system, with no external discharge reported from its operations[193] - The company conducted 38 emergency drills for environmental incidents at its mining division, ensuring preparedness[197] - The company reported no environmental administrative penalties or judicial judgments in 2021, indicating compliance with ecological regulations[200] Governance and Compliance - The company held 3 shareholder meetings during the reporting period, reviewing 17 major matters, ensuring compliance with legal regulations and internal rules[135] - The board of directors consists of 11 members, with 8 external directors, accounting for 72.73%, enhancing decision-making quality[136] - The supervisory board convened 5 times, reviewing 19 matters including financial audits and budget reports, adhering to legal and internal regulations[137] - The company completed 111 temporary announcements and related disclosures throughout the year, maintaining high standards of information transparency[138] - The company has established an independent financial accounting department, ensuring no assets are occupied by the controlling shareholder[142] Strategic Initiatives - The company aims to enhance production efficiency and profitability through a focus on value creation and full industry chain advantages[28] - The company aims to become the absolute leader in the domestic lead, zinc, and germanium industry by integrating resources and improving production efficiency[36] - The company is expanding its industrial layout into the northwest region of China and overseas markets[58] - The company is focusing on enhancing its environmental governance capabilities in response to new regulations on heavy metal pollution control[98] - The company is committed to optimizing labor cost efficiency and enhancing employee motivation through its salary policies[177]

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Report Authenticity Statement](index=3&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the truthfulness and completeness of this unaudited quarterly report, assuming legal responsibility - The company's management guarantees the truthfulness, accuracy, and completeness of this quarterly report and assumes corresponding legal responsibilities[3](index=3&type=chunk) - This company's Q1 2021 report is unaudited[3](index=3&type=chunk) [Basic Company Information](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) In Q1 2021, the company achieved strong performance with significant year-on-year growth in revenue and net profit, alongside increased basic EPS and steady asset growth | Key Financial Indicators | Q1 2021 (CNY) | Q1 2020 (CNY) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 5,258,072,085.54 | 3,400,156,099.52 | 54.64% | | Net Profit Attributable to Shareholders (CNY) | 369,674,336.66 | 176,779,484.45 | 109.12% | | Basic EPS (CNY/share) | 0.0726 | 0.0347 | 109.22% | | Weighted Average ROE (%) | 2.50% | 1.18% | Increased by 1.32 percentage points | | Net Cash Flow from Operating Activities (CNY) | 528,571,905.87 | 564,543,266.80 | -6.37% | - Total non-recurring gains and losses for the period amounted to **CNY 39.84 million**, primarily comprising government grants of **CNY 48.28 million**[5](index=5&type=chunk) [Shareholder Information](index=4&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had 165,695 shareholders, with controlling shareholder Yunnan Metallurgical Group holding 38.19%, and the top ten including diverse institutional and individual investors - As of the end of the reporting period, the company had **165,695 shareholders**[7](index=7&type=chunk) | Shareholder Name | Number of Shares Held | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | | Yunnan Metallurgical Group Co., Ltd. | 1,944,142,784 | 38.19 | | Su Tingbao | 315,511,064 | 6.20 | | Huaneng Guicheng Trust Co., Ltd. - Huaneng Trust·Yuesheng No. 1 | 203,665,987 | 4.00 | | Zhuhai Jinrun Zhongze Investment Center (Limited Partnership) | 162,932,790 | 3.20 | | Bank of China Ltd. - Fullgoal Innovation Trend Stock Investment Fund | 92,897,286 | 1.82 | [Significant Events](index=5&type=section&id=%E4%B8%89%E3%80%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Analysis of Significant Changes in Financial Statement Items](index=5&type=section&id=3.1%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) This period saw significant changes across financial statements, with asset increases from prepayments and receivables, simultaneous high growth in revenue and costs, reduced financial expenses, and increased investment cash outflows due to equity acquisitions [Significant Changes in Balance Sheet Items](index=5&type=section&id=3.1.1%20%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%8C%87%E6%A0%87%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant balance sheet changes include a 1,206.31% surge in prepayments, a 10,358.87% increase in receivables financing, and a 233.16% rise in accounts receivable, driven by acquisitions, bill receipts, and sales growth | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Prepayments | 1,206.31 | Increased prepaid equity acquisition payments and imported raw material payments | | Receivables Financing | 10,358.87 | Increased amount of bills received not yet endorsed or matured for acceptance | | Accounts Receivable | 233.16 | Increased zinc alloy sales and accounts receivable within credit limits | | Development Expenditures | 583.25 | Increased capitalized R&D project amounts and ongoing projects | | Contract Liabilities | 93.43 | Increased advance payments for goods under contracts | [Significant Changes in Income Statement Items](index=5&type=section&id=3.1.2%20%E5%88%A9%E6%B6%A6%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8) Income statement changes reflect business expansion and cost control, with operating revenue and costs up 54.64% and 60.76% respectively, R&D expenses up 178.10%, and financial expenses down 34.75% due to lower financing costs | Account | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | 54.64 | Increased sales of self-produced products and trade volume | | Operating Cost | 60.76 | Increased purchases of raw materials and trade volume | | R&D Expenses | 178.10 | Increased R&D investment | | Financial Expenses | -34.75 | Decreased interest-bearing debt and financing costs | | Non-operating Income | 1,274.53 | Increased government grants received | [Significant Changes in Cash Flow Statement Items](index=6&type=section&id=3.1.3%20%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E9%A1%B9%E7%9B%AE%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8) Cash flow structure shifted significantly, with operating cash flow slightly down, investing cash outflow sharply up due to acquisitions, and financing cash outflow increasing due to debt repayments | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Reason for Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 528,571,905.87 | 564,543,266.80 | Increase in operating receivables | | Net Cash Flow from Investing Activities | -448,011,127.33 | -204,847,887.58 | Increased payments for equity acquisitions | | Net Cash Flow from Financing Activities | -152,141,487.80 | 44,775,784.50 | Increased repayment of interest-bearing debt | [Appendix](index=7&type=section&id=%E5%9B%9B%E3%80%81%E9%99%84%E5%BD%95) [Financial Statements](index=7&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This appendix presents the company's unaudited consolidated and parent company financial statements as of March 31, 2021, including the balance sheet, income statement, and cash flow statement [Consolidated Balance Sheet](index=7&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2021, total assets reached CNY 29.56 billion (up 1.11%), total liabilities were CNY 12.18 billion (stable), and parent company equity was CNY 14.96 billion (up 2.26%), indicating a stable financial position | Item | March 31, 2021 (CNY) | December 31, 2020 (CNY) | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 29,562,712,221.12 | 29,239,050,333.49 | 1.11% | | Total Liabilities | 12,183,284,152.80 | 12,188,814,966.49 | -0.05% | | Total Equity Attributable to Parent Company Owners | 14,959,895,767.75 | 14,628,684,123.56 | 2.26% | [Parent Company Balance Sheet](index=10&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2021, the parent company's total assets were stable at CNY 27.19 billion, total liabilities decreased by 2.46% to CNY 9.89 billion, and total owner's equity increased by 1.45% to CNY 17.30 billion [Consolidated Income Statement](index=13&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2021, the company reported total operating revenue of CNY 5.26 billion (up 54.64%), total profit of CNY 440 million (up 88.41%), and net profit attributable to parent shareholders of CNY 370 million (up 109.12%), demonstrating enhanced profitability | Item | Q1 2021 (CNY) | Q1 2020 (CNY) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | I. Total Operating Revenue | 5,258,072,085.54 | 3,400,156,099.52 | 54.64% | | IV. Total Profit | 439,508,235.20 | 233,265,605.30 | 88.41% | | Net Profit Attributable to Parent Company Shareholders | 369,674,336.66 | 176,779,484.45 | 109.12% | | VIII. Basic EPS (CNY/share) | 0.0726 | 0.0347 | 109.22% | [Parent Company Income Statement](index=15&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2021, the parent company's operating revenue grew by 79.32% to CNY 3.40 billion, with net profit increasing by 41.50% to CNY 246 million [Consolidated Cash Flow Statement](index=17&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1 2021, operating cash flow slightly decreased to CNY 529 million, while investing activities resulted in a CNY 448 million net outflow due to acquisitions, and financing activities led to a CNY 152 million net outflow from debt repayments, with period-end cash at CNY 719 million | Item | Q1 2021 (CNY) | Q1 2020 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 528,571,905.87 | 564,543,266.80 | | Net Cash Flow from Investing Activities | -448,011,127.33 | -204,847,887.58 | | Net Cash Flow from Financing Activities | -152,141,487.80 | 44,775,784.50 | | Cash and Cash Equivalents at Period-End | 718,620,023.98 | 1,213,331,104.04 | [Parent Company Cash Flow Statement](index=19&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1 2021, the parent company's operating cash flow was a net outflow of CNY 92 million (vs. CNY 135 million inflow prior year), investing activities had a CNY 5 million net inflow, and financing activities a CNY 63 million net outflow

Financial Performance - Operating revenue for the first nine months was CNY 13,779,942,681.72, an increase of 2.46% year-on-year[4] - Net profit attributable to shareholders for the first nine months was CNY 683,069,282.18, a decrease of 17.10% compared to the same period last year[4] - The net cash flow from operating activities for the first nine months was CNY 1,735,622,532.88, down 23.77% year-on-year[4] - Total operating revenue for Q3 2020 reached ¥5,519,137,654.87, a 49.0% increase from ¥3,705,538,607.73 in Q3 2019[21] - Net profit attributable to shareholders for Q3 2020 was ¥313,995,779.41, compared to ¥126,623,952.97 in Q3 2019, reflecting a 148.5% increase[24] - Total operating profit for the first three quarters of 2020 was CNY 587.47 million, a decrease of 39% from CNY 961.82 million in the same period of 2019[28] - The total comprehensive income for Q3 2020 was ¥259,801,178.35, compared to ¥197,804,772.86 in Q3 2019, reflecting a 31.3% increase[26] Assets and Liabilities - Total assets at the end of the reporting period were CNY 30,983,944,817.79, a decrease of 1.24% compared to the end of the previous year[4] - Total liabilities amounted to CNY 13,283,831,900.80, a decrease of 2.73% from CNY 13,655,365,272.95 in the previous year[17] - Total equity reached CNY 17,700,112,916.99, slightly down from CNY 17,717,414,109.73 year-over-year[17] - Current assets increased to CNY 5,959,291,979.69, up 22.73% from CNY 4,855,963,876.61 in the previous year[18] - Non-current assets decreased to CNY 21,635,889,167.88, down from CNY 22,875,921,776.76 year-over-year[18] - Long-term borrowings increased by 97.43% to ¥5,203,063,344.00 from ¥2,635,402,232.00 year-on-year[9] - Total liabilities for the current period were CNY 11,061,085,541.66, a slight decrease from CNY 11,073,433,269.60 year-over-year[19] Cash Flow - The net cash flow from operating activities decreased by 23.77% to ¥1,735,622,532.88 compared to ¥2,276,867,156.96 in the previous year[11] - Total cash inflow from operating activities for the first nine months of 2020 was 6,715,455,320.55 RMB, up 21% from 5,551,220,909.39 RMB in the same period of 2019[32] - The cash outflow from investing activities in Q3 2020 was 626,745,262.47 RMB, down 51% from 1,275,272,260.51 RMB in Q3 2019[31] - The net cash flow from financing activities in Q3 2020 was -1,254,904,824.95 RMB, an improvement from -1,998,310,568.07 RMB in Q3 2019[31] Research and Development - The company's R&D expenses increased by 289.89% to ¥29,122,308.53 compared to ¥7,469,405.02 in the same period last year[10] - Research and development expenses in Q3 2020 amounted to ¥15,303,639.68, significantly up from ¥3,181,345.35 in Q3 2019, indicating a 380.5% increase[21] - R&D expenses increased significantly to CNY 5.61 million in Q3 2020, compared to CNY 0.90 million in Q3 2019, reflecting a focus on innovation[28] Shareholder Information - The total number of shareholders at the end of the reporting period was 158,331, with Yunnan Metallurgical Group holding 38.19% of shares[6] - Shareholders' equity totaled approximately $17.72 billion, with total equity attributable to the parent company amounting to about $14.91 billion[36] Other Financial Metrics - The weighted average return on equity decreased by 1.08 percentage points to 4.55%[4] - The company reported a significant increase in trading financial assets, rising by 1,150.07% to CNY 45,169,929.49 due to substantial floating profits from futures positions[8] - Accounts receivable increased by 59.89% to CNY 38,467,775.55, attributed to delayed payments for zinc alloy sales[8] - Other receivables rose by 140.89% to CNY 349,618,574.39, mainly due to an increase in futures margin deposits[8] - The company reported a significant increase in credit impairment losses, with a loss of ¥10,010,919.13 compared to a gain of ¥7,343,255.11 in the previous year[10]