SDR(SZ:000603)2024-08-30 07:55Financial Performance - Revenue for the reporting period was RMB 852.15 million, a 4.27% increase year-over-year[10] - Net profit attributable to shareholders of the listed company was RMB 82.49 million, up 34.90% compared to the same period last year[10] - Operating cash flow surged to RMB 226.87 million, a 299.19% increase year-over-year[10] - Basic earnings per share (EPS) rose to RMB 0.1201, a 35.55% increase from the previous year[10] - Total assets at the end of the reporting period were RMB 6.55 billion, a slight decrease of 0.06% compared to the end of the previous year[10] - Equity attributable to shareholders of the listed company increased by 1.32% to RMB 3.17 billion[10] - Revenue increased by 4.27% YoY to RMB 852.15 million, with net profit attributable to shareholders rising by 34.90% YoY to RMB 82.49 million[21] - Q2 revenue grew by 9.79% YoY to RMB 588.88 million, with net profit attributable to shareholders surging by 103.32% YoY to RMB 91.27 million[21] - Total revenue for the first half of 2024 reached 852.15 million yuan, a 4.3% increase compared to 817.25 million yuan in the same period of 2023[125] - Net profit for the first half of 2024 was 106.74 million yuan, up 27.7% from 83.58 million yuan in the first half of 2023[125] - Total assets as of the end of the first half of 2024 amounted to 4.34 billion yuan, a 4.8% increase from 4.14 billion yuan at the end of the first half of 2023[122][123] - Long-term equity investments increased by 4.9% to 2.77 billion yuan in the first half of 2024, compared to 2.64 billion yuan in the same period of 2023[122] - Other receivables rose by 10% to 1.12 billion yuan in the first half of 2024, up from 1.02 billion yuan in the first half of 2023[122] - Total liabilities increased by 12.7% to 965.52 million yuan in the first half of 2024, compared to 794.63 million yuan in the same period of 2023[123] - Operating profit for the first half of 2024 was 131.74 million yuan, a 31.5% increase from 100.15 million yuan in the first half of 2023[125] - Financial expenses surged by 46.3% to 40.46 million yuan in the first half of 2024, compared to 27.66 million yuan in the same period of 2023[125] - Investment income grew by 33.8% to 34.80 million yuan in the first half of 2024, up from 26.01 million yuan in the first half of 2023[125] - Total equity increased by 0.9% to 3.37 billion yuan in the first half of 2024, compared to 3.34 billion yuan in the same period of 2023[123] Non-Recurring Gains and Losses - Non-recurring gains and losses include government subsidies of 1,398,989.00 yuan and financial asset gains of 1,980,265.65 yuan[12] - The company's total non-recurring profit for the period is 4,847,401.19 yuan[13] Market and Industry Trends - China's GDP grew by 5.0% year-on-year in the first half of 2024, driving strong demand for non-ferrous metals[14] - Domestic photovoltaic installations reached 102.48GW in the first half of 2024, a year-on-year increase of 30.68%[15] - London silver spot prices rose by 22.39% in the first half of 2024, with an average price of 24.07 USD/oz, up 5.68% year-on-year[15] - COMEX gold prices increased by 12.8% in the first half of 2024, with an average price of 2,343.8 USD/oz, up 14.67% year-on-year[15] - Domestic lead metal production fell by 3.7% year-on-year to 388.9 million tons in the first half of 2024[15] - Domestic zinc metal production increased by 5.5% year-on-year to 355.4 million tons in the first half of 2024[15] - SMM1 electrolytic nickel prices rose by 5.80% in the first half of 2024, with an average price of 137,692.52 yuan/ton, down 28.61% year-on-year[16] - Silver, lead, and zinc spot prices increased by 28.41%, 11.41%, and 0.20% YoY respectively[21] - Silver production increased by 12.51% YoY, while lead and zinc production decreased by 6.92% and 23.14% YoY respectively[21] - Zinc metal sales decreased by 34.73% YoY, lead metal sales decreased by 25.90% YoY, and silver metal sales decreased by 15.35% YoY[21] Mining Operations and Subsidiaries - The company's main business is non-ferrous metal mining and beneficiation, with no cash dividends, stock dividends, or capital reserve transfers planned[1] - The company has 7 mining subsidiaries, including Yindu Mining, Jinshan Mining, Guangda Mining, Jindu Mining, Dongsheng Mining, Honglin Mining, and Deyun Mining, with a total annual mining and processing capacity of nearly 2 million tons[17][20] - Yindu Mining completed the resource reserve review and filing for the Bayan Daba (North Mining Area) silver polymetallic mine, marking a milestone in the company's exploration and reserve expansion efforts[17] - Jinshan Mining is undergoing technical upgrades, expected to be completed by the end of Q3 2024, and is actively exploring the western area of the Eren Tolgoi silver mine, covering 11.04 square kilometers[17] - Dongsheng Mining obtained a mining license for the Bayan Wula silver polymetallic mine with a production capacity of 250,000 tons/year, and construction is expected to start this year[17] - Honglin Mining's Caiyuanzi copper-gold mine project has received temporary land use approval and tailings reservoir construction approval, with construction currently underway[17] - Deyun Mining obtained a mining license for the Bayan Baolege silver polymetallic mine with a production capacity of 900,000 tons/year, and the company is advancing the project development[17] - The company's subsidiary, Jinye Environmental Protection, focuses on the resource utilization of solid and hazardous waste containing nickel, copper, and chromium, aiming to improve economic benefits through secondary nickel resource utilization[17] - The company's main products include silver ingots, gold ingots, lead concentrates containing silver, and zinc concentrates containing silver, with silver ingots and gold ingots being the primary products of Jinshan Mining[18] - The company's sales channels include direct sales to smelters, metal processing companies, and traders, with silver and gold ingots also traded on the Shanghai Futures Exchange and Shanghai Gold Exchange[19] - The company has a total silver resource reserve of nearly 10,000 tons, with Yindu Mining's Bayan Daba silver polymetallic mine being one of the highest-margin mines among domestic listed companies[20] - The company owns 7 mining subsidiaries with significant silver resources, with proven silver reserves close to 10,000 tons[22] - The company's subsidiary, Inner Mongolia Yindu Mining Co., Ltd., generated a net profit of 114.09 million yuan, contributing significantly to the company's overall profitability[49] - Inner Mongolia Guangda Mining Co., Ltd., another subsidiary, reported a net profit of 17.37 million yuan, further bolstering the company's financial performance[49] - The company's subsidiary, Chifeng Jindu Mining Co., Ltd., achieved a net profit of 17.02 million yuan, adding to the company's diversified revenue streams[50] - The company's subsidiary, Inner Mongolia Jinshan Mining Co., Ltd., experienced a net loss of 40.93 million yuan, highlighting potential risks in certain operational areas[50] - The company's subsidiaries primarily engage in the mining and processing of non-ferrous metals, contributing significantly to the company's revenue and profitability[49][50] - The company is exposed to industry cyclical risks due to its reliance on the non-ferrous metals market, and it plans to adjust production, sales, and hedging strategies to mitigate these risks[50] Environmental and Sustainability - Dust removal efficiency in the crushing and screening workshops of the concentrator exceeds 99%[63] - The concentrator's wastewater treatment capacity is 600m³/day[63] - The company has a general solid waste warehouse of approximately 2,600m² and a hazardous waste warehouse of 6,000m²[63] - Environmental governance and protection costs for Yindu Mining in the first half of 2024 amounted to 122,110.00 yuan[65] - Jinshan Mining's environmental governance and protection costs for the first half of 2024 were 494,225.14 yuan[65] - Guangda Mining's environmental governance and protection costs for the first half of 2024 were 231,606.09 yuan[65] - Jindu Mining's environmental governance and protection costs for the first half of 2024 were 21,466.22 yuan[65] - Jinye Environmental Protection's environmental governance and protection costs for the first half of 2024 were 3,632,547.53 yuan[65] - Yindu Mining's environmental protection tax payment for the first half of 2024 was 7,011.07 yuan[65] - Jinye Environmental Protection's environmental protection tax payment for the first half of 2024 was 55,290.09 yuan[65] Financial Assets and Investments - The company's financial assets decreased by 6,004,498.32 yuan, with a total of 367,861,447.61 yuan at the end of the period[36] - The company's restricted assets at the end of the reporting period amounted to 19,345,439.56 yuan, a decrease from 23,470,228.17 yuan at the beginning of the period[37] - The company's total fixed assets, intangible assets, and long-term equity investments amounted to 2,375,210,763.15 yuan, an increase from 1,888,253,446.34 yuan at the beginning of the period[38] - The company invested 110,000,000.00 yuan in Sichuan Honglin Mining Co., Ltd., acquiring a 42.91% stake[39] - After the capital increase, the company holds 53% of Sichuan Honglin Mining Co., Ltd., making it a subsidiary and consolidating it into the company's financial statements[40] - The company's investment in Jinmo Technology resulted in a loss of 5,313,298.32 yuan, with a final book value of 8,126,220.96 yuan[41] - The company's derivative investments for hedging purposes amounted to 891.37 yuan at the end of the period, accounting for 0.28% of the company's net assets[42] - The company's derivative investments in the Shanghai Futures Exchange resulted in a profit of 2.75 million yuan, with a final investment amount of 6.94 million yuan, accounting for 0.22% of the company's net assets at the end of the reporting period[45] - The company has implemented stringent risk control measures for derivative investments, including setting a maximum loss limit of 6 million yuan to mitigate market and liquidity risks[45] - The company's derivative investments are funded entirely by its own capital, ensuring no reliance on external financing for these activities[45] - The company has established comprehensive internal controls and risk management protocols for derivative investments, including strict approval processes and continuous risk monitoring[46] Guarantees and Share Repurchases - The company's total approved guarantee amount during the reporting period was 54,000 million RMB, with actual guarantees issued totaling 49,796.56 million RMB[94] - The company's total actual guarantee balance at the end of the reporting period was 163,335.35 million RMB, accounting for 51.57% of the company's net assets[94] - The company repurchased 5,381,500 shares, accounting for 0.78% of the total share capital, with a total repurchase amount of 50,297,133.34 RMB[98] - The company repurchased 5,381,500 shares, accounting for 0.78% of the total shares, with a total transaction value of RMB 50,297,133.34[105] - The company adjusted the upper limit of the repurchase price from RMB 15 per share to RMB 14.93 per share after the 2023 annual equity distribution[105] Strategic Agreements and Certifications - The company became a member of the Shanghai Gold Exchange during the reporting period[98] - The company signed a strategic cooperation framework agreement with the China Chemical Geology and Mine Bureau for cooperation in mineral exploration, mining rights investment, and environmental restoration[98] - The company received a total of 70 million RMB in returned deposits from Dong Ying and Bai Guanghui, and obtained a 30% equity pledge in Guizhou Dingshengxin[98] - The company's subsidiary, Yindu Mining, completed the integration of mining rights and peripheral exploration rights, achieving a phased result[100] - Yindu Mining received the "High-tech Enterprise Certificate" with a validity period of three years[100] - The company's subsidiary, De Yun Mining, obtained a mining license for the Bayanbaolege lead-zinc polymetallic mine with an annual production capacity of 900,000 tons and a mining area of 2.3206 square kilometers[101] - Jin Ye Environmental Technology, a subsidiary, was awarded the national "Green Factory" title[102] - Hong Lin Mining received various permits for the Caiyuanzi copper-gold mine, including the use of 0.7472 hectares of grassland and 14.7705 hectares of forest land[102] - Dong Sheng Mining received approval for the safety facility design of the Bayanwula silver polymetallic mine project with an annual production capacity of 250,000 tons[102] Revenue Breakdown - Revenue from renewable new energy metals surged by 65.06% to 125,608,869.67 yuan, accounting for 14.74% of total revenue[30] - Revenue from lead concentrate (including silver) increased by 8.76% to 283,777,403.07 yuan, representing 33.30% of total revenue[30] - Revenue from zinc concentrate (including silver) decreased by 15.48% to 144,466,949.07 yuan, accounting for 16.95% of total revenue[30] - Revenue from outside Inner Mongolia Autonomous Region grew by 9.22% to 707,029,629.11 yuan, representing 82.97% of total revenue[30] - Gross profit margin for non-ferrous metal mining increased by 5.98% to 61.12%, driven by a 1.69% revenue increase and an 11.87% cost reduction[31] - Gross profit margin for renewable new energy metals stood at 16.63%, with revenue and costs increasing by 65.06% and 56.36% respectively[32] Cash Flow and Investments - Operating cash flow surged by 299.19% YoY to RMB 226.87 million, driven by increased sales collections from mining operations[29] - Investment cash flow turned positive at RMB 70.13 million, a 175.12% YoY increase, mainly due to the recovery of equity acquisition deposits[29] - Net cash flow from financing activities decreased by 179.18% to -213,092,324.45 yuan, mainly due to increased repayment of borrowings and share repurchases[30] - Net increase in cash and cash equivalents rose by 35.66% to 83,914,176.69 yuan, driven by increased sales collections from mining operations[30] Financial Instruments and Risk Management - The company uses expected credit loss (ECL) as the basis for impairment accounting of financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial guarantee contracts[182] - For financial assets purchased or originated that have experienced credit impairment, the company recognizes loss provisions based on the cumulative changes in expected credit losses over the entire life of the asset[182] - The company assesses whether the credit risk of financial instruments has increased significantly since initial recognition and measures loss provisions accordingly, with three stages of credit risk assessment[182] - Financial instruments with low credit risk are assumed not to have experienced a significant increase in credit risk since initial recognition[183] - Evidence of credit impairment includes observable information such as significant financial difficulties of the issuer or debtor, breach of contract, or bankruptcy likelihood[184] - The company determines ECL based on both individual and portfolio assessments, considering past events, current conditions, and reasonable forecasts of future economic conditions[184] - For financial assets where full or partial recovery of contractual cash flows is no longer reasonably expected, the company directly writes down the carrying amount[185] - Financial assets and liabilities are presented separately in the balance sheet and are not offset unless specific conditions are met[186] - The company divides receivables into portfolios based on credit risk characteristics to calculate ECL when individual assessment is not feasible[187] - For commercial acceptance bills, the company calculates ECL using default risk exposure and lifetime expected credit loss rates[187]