Chihong Zinc(SH:600497)2015-04-20 16:00Financial Performance - The net profit for the parent company in 2014 was CNY 215,971,938.70, with a 10% statutory surplus reserve of CNY 21,597,193.87, leaving a distributable profit of CNY 194,374,744.83[3]. - The total distributable profit available to shareholders after accounting for the beginning retained earnings of CNY 868,814,551.56 and deducting the cash dividends of CNY 250,134,133.50 was CNY 813,055,162.89[3]. - The company achieved operating revenue of CNY 18.90 billion in 2014, a year-on-year increase of 4.54%[30]. - Net profit attributable to shareholders was CNY 161.17 million, a decrease of 72.66% compared to the previous year[30]. - The adjusted net profit, excluding non-recurring gains and losses, was CNY 137.75 million, down 58.15% year-on-year[30]. - The company’s total assets increased by 10.57% to CNY 32.84 billion by the end of 2014[30]. - The net assets attributable to shareholders decreased by 1.98% to CNY 7.19 billion at the end of 2014[30]. - Basic earnings per share were CNY 0.0966, reflecting a decline of 74.50% from the previous year[24]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2014, representing a 15% growth compared to the previous year[126]. Dividend Policy - The company plans to distribute a cash dividend of CNY 1.5 per 10 shares, totaling CNY 250,134,133.50, based on a total share capital of 1,667,560,890 shares as of December 31, 2014[3]. - The company has implemented a cash dividend policy, distributing a total of 250,134,133.50 RMB in cash dividends for the fiscal year 2013, amounting to 1.5 RMB per 10 shares[86]. - The company plans to distribute cash dividends amounting to no less than 10% of the distributable profit each year for the next three years, with a cumulative distribution of no less than 30% of the average annual distributable profit over the next three years[101]. Operational Highlights - The company produced 326,300 tons of refined lead and zinc products in 2014, with zinc ingots accounting for 183,210 tons[31]. - The company initiated a 140,000 tons/year zinc and 60,000 tons/year lead smelting project in October 2014[32]. - The company planned to produce a total of 292.35 million tons of oxidized and sulfide ore in 2014, but actual mining volume was 262 million tons, with a zinc and lead metal output of 350,000 tons[53]. - The company reported total operating revenue of 18.90 billion RMB in 2014, exceeding the planned target of 18 billion RMB[53]. Financial Position - The company’s total profit for 2014 was 227 million RMB, achieving only 56.75% of the planned target of 400 million RMB due to exploration expenses and declining metal prices[53]. - The company’s total assets reached ¥32,839,802,236.64, up from ¥29,699,205,136.95, reflecting an increase of approximately 10.8%[167]. - Total liabilities increased to ¥21,403,499,378.35 from ¥18,046,510,188.91, indicating a rise of about 18.5%[166]. - Total owner's equity decreased to ¥11,436,302,858.29 from ¥11,652,694,948.04, a decline of about 1.9%[167]. Research and Development - Research and development expenses totaled ¥9,995,401.71, a decrease of 47.69% from ¥19,108,850.37 in the previous year[35]. - The total amount of R&D expenditure accounted for 0.05% of operating revenue, indicating a focus on innovation despite the decrease in spending[47]. - The company has applied for 23 patents in 2014, with 13 patents authorized, demonstrating its commitment to intellectual property and technological advancement[48]. Risk Management - The report includes a risk statement regarding forward-looking statements, indicating that future plans and strategies do not constitute a commitment to investors[4]. - The company faces risks related to price fluctuations of lead and zinc products, which directly impact profit levels[76]. - The company has implemented long-term management for its main products to mitigate price fluctuation risks, particularly for zinc and lead[37]. Corporate Governance - The audit report issued by Ruihua Certified Public Accountants was a standard unqualified opinion[5]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[5]. - The company has established a sound governance structure, ensuring no discrepancies with the Company Law and relevant regulations from the China Securities Regulatory Commission[144]. - The company actively communicates with investors and respects their rights, following the Investor Relations Management System[144]. Shareholder Information - The total number of shareholders increased to 153,360 by the end of the reporting period, up from 134,808 five trading days prior[115]. - The largest shareholder, Yunnan Metallurgical Group Co., Ltd., holds 49.74% of the shares, totaling 829,505,201 shares, with 202,960,431 shares pledged[117]. - The company has a total of 10 major shareholders, with various percentages of shareholding, reflecting a diverse ownership structure[116]. Environmental and Safety Compliance - The company operates in a high-risk industry for safety production, with ongoing efforts to enhance safety management systems and prevent accidents[79]. - Environmental protection pressures are significant due to the company's involvement in heavily regulated industries, leading to increased operational costs and the need for stricter compliance with environmental laws[80]. Strategic Initiatives - The company plans to optimize smelting technology and enhance environmental protection measures in response to new regulations[71]. - The company aims to enhance operational efficiency and economic benefits by improving mining output and reducing production costs[53]. - The company is focused on expanding its control over quality mineral resources through self-exploration, third-party cooperation, and strategic partnerships, but faces risks of declining mineral resource reserves that could adversely affect operational performance[78].