GuoCheng Mining(000688)2024-04-26 13:47Mining Resources and Exploration - The company's subsidiary, Zhongdu Mining, holds a total of 9.956 million tons of ore, including 32,958 tons of zinc, 41,946 tons of lead, 1,544 tons of copper, 16,227 kilograms of gold, and 147 tons of silver[8] - The company invested 88.4541 million yuan in resource exploration, including 39,495 meters of underground drilling and 22,125.43 meters of tunneling[8] - Jinxin Mining holds 50.759 million tons of lithium ore resources, including 675,390 tons of Li2O resources[17] - Mining license: Jinyin Mining received approval to increase its mining scale to 1 million tons per year[134] Operating Costs and Financial Performance - The operating cost of non-ferrous metal product mining and selection was 721,090,285.77 yuan, accounting for 91.61% of the total operating cost, an increase of 4.76% year-on-year[14] - The total operating cost was 787,157,374.35 yuan, with a year-on-year increase of 3.33%, and the internal offset amount decreased by 5.61%[20] - The company's income tax expense increased by 112.97% year-on-year to 31,685,189.68 yuan, mainly due to the recognition of deferred income tax[22] - The net cash flow from operating activities was 580,671,551.52 yuan, a decrease of 18.04% year-on-year[22] - The net cash flow from investing activities was -617,039,553.70 yuan, an increase of 61.35% year-on-year, mainly due to reduced project construction payments[22] - The net cash flow from financing activities was 105,774,266.41 yuan, a decrease of 87.63% year-on-year, mainly due to the repayment of financial assistance and financing lease loans[22] - The net increase in cash and cash equivalents was 69,406,264.23 yuan, an increase of 311.92% year-on-year, mainly due to reduced project construction payments[22] - The company's operating cash flow decreased by 18.04% year-on-year to 580.67 million yuan, while investment cash flow improved significantly, with a 61.35% reduction in net cash outflow to -617.04 million yuan[75] - The company's cash and cash equivalents increased by 311.92% year-on-year, reaching 69.41 million yuan, a significant improvement from the previous year's decrease of 32.75 million yuan[75] - The company's financing cash flow decreased by 87.63% year-on-year to 105.77 million yuan, primarily due to a 444.34% increase in financing cash outflows[75] - The company's total revenue for 2023 was RMB 11,958.425 million, primarily from the sales of lead and zinc ore products[113] - Profit decline: Net profit after deducting non-recurring gains and losses decreased by 66.04% to RMB 65.05 million[122] - The company's weighted return on equity (ROE) decreased to 2.16% from 6.85% year-on-year, a decline of 68.47%[158] - The net profit margin dropped to 2.48% from 10.05%, a significant decrease of 75.32%[160] - The asset-liability ratio increased to 62.52% from 58.40%, up by 7.05%[160] - The company's total asset turnover rate decreased by 39.13% year-on-year[158] - The inventory turnover days increased significantly by 79.36% to 33.81 days[158] - The company's cash ratio improved to 6.88% from 5.69%, an increase of 20.91%[160] Sales and Production Volumes - Domestic sales decreased by 22.70% to 1,195,842,471.08 RMB compared to the previous year[43] - Sales volume of zinc concentrate increased by 2.77% to 53,549.49 metal tons[45] - Production volume of lead concentrate increased by 8.06% to 9,486.54 metal tons[45] - Inventory of silver concentrate surged by 548.62% to 428.09 metal tons[45] - Sales volume of copper concentrate increased by 38.56% to 1,237.65 metal tons[45] - Production volume of sulfur concentrate decreased by 41.61% to 180,134.73 tons[45] - Inventory of sulfuric acid increased by 222.57% to 2,215.36 tons[45] Subsidiaries and Guarantees - The total approved guarantee amount for subsidiaries during the reporting period was RMB 86,900 million, with actual guarantees issued amounting to RMB 76,253.86 million[111] - The actual guarantee balance for subsidiaries at the end of the reporting period was RMB 178,761.5 million, accounting for 61.46% of the company's net assets[99] - The company provided a guarantee of RMB 110,000 million for its subsidiary Guocheng Resources, with an actual guarantee amount of RMB 92,705.19 million by the end of the reporting period[111] - The company's total approved guarantee amount for subsidiaries at the end of the reporting period was RMB 211,095 million[98] - The company's total actual guarantee amount (A4+B4+C4) accounted for 61.46% of its net assets[99] - The company's subsidiary Guocheng Resources received a guarantee of RMB 110,000 million, with an actual guarantee amount of RMB 92,705.19 million by the end of the reporting period[111] - The company's subsidiary Dong Mining received a guarantee of RMB 5,700 million, with an actual guarantee amount of RMB 4,242.11 million[110] - The company's subsidiary Guocheng Jiahua received a guarantee of RMB 3,000 million, with an actual guarantee amount of RMB 3,000 million[110] - The company's subsidiary Sichuan Herong received a guarantee of RMB 1,000 million, with an actual guarantee amount of RMB 100 million[110] - Guarantees: The total approved guarantee amount at the end of the reporting period was RMB 2.14 billion, with an actual guarantee balance of RMB 1.81 billion[121] Internal Controls and Compliance - The company's subsidiaries have obtained pollution discharge permits and manage them dynamically, ensuring compliance with environmental regulations[34] - The company's internal control defects are classified into three categories: major defects (misstatement ≥ 1.5% of total assets or ≥ 5% of total profit), significant defects (1% ≤ misstatement < 1.5% of total assets or 3% ≤ misstatement < 5% of total profit), and general defects (misstatement < 1% of total assets or < 3% of total profit)[32] - The company completed rectification measures related to trade business and improved internal controls[65] - The company's management is responsible for preparing financial statements in accordance with accounting standards and maintaining necessary internal controls to prevent material misstatements[183] Shareholder and Stock Information - The company's largest shareholder, Gansu Jianxin Industrial Group Co., Ltd., has pledged a total of 215,000 million yuan in stock for financing purposes, with repayment due by March 2, 2025[175] - Gansu Jianxin Industrial Group Co., Ltd. also pledged an additional 85,000 million yuan in stock for financing, with repayment due by April 30, 2025[175] - The controlling shareholder, Guocheng Holding Group Co., Ltd., pledged 250,000 million yuan in stock for a tender offer, with repayment due by April 23, 2025[175] - The company's largest shareholder holds 41.71% of the total shares, amounting to 466,139,241 shares, all of which are pledged[188] - The controlling shareholder holds 28.47% of the total shares, amounting to 318,160,511 shares, with 318,046,900 shares pledged[188] - During the reporting period, the company converted 51,036 shares from convertible bonds, which had a minimal impact on key financial indicators such as basic and diluted earnings per share[184] - The actual controller, Wu Cheng, holds no other controlling stakes in domestic or foreign listed companies over the past 10 years[194] - The company's top 10 shareholders did not engage in any repurchase agreements during the reporting period[192] - The company's largest shareholder and controlling shareholder are under the same actual control, with no known relationships or concerted actions among other shareholders[190] - The controlling shareholder or the largest shareholder and their concerted parties have pledged 80% of their shares[196] Financial Ratios and Credit Ratings - Financial ratios: The current ratio increased by 6.54% to 0.1467, while the debt-to-asset ratio rose by 4.12% to 62.52%[122] - Interest coverage: The interest coverage ratio dropped by 44.49% to 7.35 times[122] - The company's credit rating remained stable at AA, with no changes in the credit rating of its convertible bonds, as confirmed by United Credit Rating Co., Ltd.[94] Investments and Projects - The company invested 3.357 billion yuan in the construction of a lithium salt project with an annual capacity of 200,000 tons[161] - The company established four new subsidiaries in 2023, including Guocheng Lithium with a registered capital of 1 billion yuan and Guocheng Mining (Hong Kong) with a registered capital of 100,000 HKD[80] Convertible Bonds and Share Information - Convertible bonds: During the reporting period, 51,036 shares were converted from the company's convertible bonds[137] - The total number of shares increased by 51,036 due to the conversion of convertible bonds, reaching 1,117,698,861 shares[163] - The total number of ordinary shareholders at the end of the reporting period was 21,398, an increase from 20,652 at the end of the previous month[167] - The top 10 convertible bond holders include China Bank and China Construction Bank, holding 3.13% and 2.60% respectively[152] Audit and Financial Reporting - The company paid 2.03 million RMB in audit fees, including 1.35 million RMB for financial report auditing and 680,000 RMB for internal control auditing[64] - Audit opinion: The company received a standard unqualified audit opinion from Tianjian Certified Public Accountants[125] - The company's annual report is disclosed on the website http://www.cninfo.com.cn and is also available at the company's office in Beijing[35] Goodwill and Impairment - Goodwill impairment: The company's goodwill book value as of December 31, 2023, was RMB 194.23 million, with an impairment provision of RMB 1.15 million, resulting in a net book value of RMB 194.23 million[118] Related Party Transactions - The company renewed its equity trusteeship agreement with related party Guocheng Group, managing six companies for an annual fee of 2 million yuan, effective from April 1, 2023, to March 31, 2024[68] - The company's procurement of non-ferrous metal products from related party Bohai Mining accounted for 29.67% of similar transactions, with a total approved transaction amount of 300 million yuan[66] Share-Based Payments - The company confirmed share-based payment expenses of 44,502,023.90 RMB for employee stock ownership plans[49] Debt and Financing - The company did not issue any non-financial corporate debt financing instruments during the reporting period[200] Customer and Supplier Information - The company's top five customers accounted for a total sales amount of 871,159,513.43 yuan, representing 72.85% of the annual sales total[41] - The company's top five suppliers accounted for 34.57% of total annual procurement, with the largest supplier, Beijing Jielang Consulting Services Co., Ltd., contributing 13.11% of total procurement[72] Business Focus and Changes - The company's main business has undergone multiple changes since its listing, with the latest change in October 2020 focusing on mining and metal-related activities[36]