Chihong Zinc(SH:600497)2014-04-18 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 589,423,146.96 for the year 2013, with a parent company net profit of RMB 340,772,257.40, after allocating 10% to statutory surplus reserves[4]. - The company's operating revenue for 2013 reached ¥18,077,619,669.21, representing a 38.91% increase compared to ¥13,014,320,681.36 in 2012[30]. - The net profit attributable to shareholders for 2013 was ¥589,423,146.96, an increase of 28.80% from ¥457,620,837.55 in 2012[30]. - The net profit after deducting non-recurring gains and losses was ¥329,177,858.12, reflecting a 17.85% increase from ¥279,312,676.33 in 2012[30]. - Basic earnings per share for 2013 were ¥0.3789, up 13.31% from ¥0.3344 in 2012[32]. - The weighted average return on net assets for 2013 was 8.89%, an increase of 0.79 percentage points from 8.10% in 2012[32]. - The net profit for 2013 was ¥608.9 million, an increase of 8.66% year-on-year, with the net profit attributable to the parent company rising by 28.80% to ¥589.4 million[60]. Dividends and Share Capital - A cash dividend of RMB 1.5 per 10 shares (including tax) will be distributed, totaling RMB 250,134,133.50, based on a total share capital of 1,667,560,890 shares as of December 31, 2013[5]. - The company distributed cash dividends of 1.5 RMB per 10 shares, totaling 250,134,133.50 RMB for the year 2013, which represents 42.44% of the net profit attributable to shareholders[112]. - The total share capital increased from 1,310,095,749 shares to 1,667,560,890 shares after a rights issue, with 357,465,141 shares issued at a price of CNY 9.98 per share[140]. Assets and Liabilities - The company's total assets as of the end of 2013 were ¥29,699,205,136.95, a 12.55% increase from ¥26,386,674,366.51 in 2012[30]. - Total liabilities increased to CNY 18,046,510,188.91 from CNY 16,148,683,401.98, representing a growth of approximately 11.7% year-over-year[196]. - Current liabilities decreased to CNY 8,767,994,861.72 from CNY 10,680,430,270.72, a reduction of about 17%[196]. - Long-term borrowings rose to CNY 6,540,071,600.58 from CNY 4,848,459,521.68, indicating an increase of approximately 34.9%[196]. - The company's retained earnings increased to CNY 1,248,930,104.68 from CNY 943,718,316.96, reflecting a growth of about 32.3%[196]. Production and Operations - The company completed a total production of 195,400 tons of lead and zinc, with specific outputs of 90,280 tons of zinc, 35,250 tons of zinc alloy, and 69,860 tons of lead[39]. - The company faced a 0.46% decline in lead and zinc production compared to the previous year due to project delays and maintenance[46]. - The company’s mining production and operations met all target tasks, despite delays in the 160,000-ton lead-zinc smelting project[64]. Market and Risk Management - The company plans to enhance market analysis capabilities and utilize hedging tools to mitigate market risks associated with lead and zinc product price fluctuations[11]. - The company is actively conducting market research to manage risks associated with its significant trading volume in basic metal products, which are subject to price volatility[16]. - The company faces risks related to price fluctuations of lead and zinc products, which directly impact profit levels[100]. Environmental and Safety Management - Environmental protection measures are being strengthened in response to stricter national regulations, which may increase operational costs[15]. - The company is focused on improving safety management systems to prevent production accidents, which are prevalent in the mining and metallurgy industry[13]. - The company reported zero environmental accidents in 2013, reflecting effective control over environmental risks[111]. - The company plans to enhance its environmental risk management by establishing strict regulations on pollutant emissions and increasing investment in environmental protection facilities[104]. International Expansion and Acquisitions - The company has acquired 51% equity in Bolivia D Copper Mine and 51% equity in Bolivia Yangfan Mining Co., indicating a strategic move towards international expansion[116]. - The company completed the acquisition of 100% equity in Selwyn Chihong Mining Ltd. by acquiring the 50% stake from Selwyn Resources Ltd.[77]. - The company has acquired multiple mining sites in regions such as Yunnan, Tibet, and Canada, enhancing its resource advantages with high-grade lead-zinc reserves[73]. Governance and Management - The company has a structured management team with specific roles in finance, engineering, and strategic development, ensuring a comprehensive approach to governance[156]. - The total compensation for the current board members and senior management during the reporting period amounted to 424.92 million CNY, with an additional 166.45 million CNY received from shareholder units[151]. - The company has not faced any administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[133]. Employee and Training Programs - The company has a total workforce of 12,124 employees, with 7,136 in production, 1,030 in technical roles, and 153 in sales[165]. - The company has established a training program aimed at improving organizational quality and developing internal training resources[166]. - The company has a strategy for talent development through its training academy, aiming to foster a learning organization[166].