Chihong Zinc(SH:600497)2019-03-18 16:00Financial Performance - The net profit attributable to shareholders for 2018 was CNY 622,792,483.84, while the parent company achieved a net profit of CNY 1,042,292,675.90[2]. - The actual distributable profit for 2018 was CNY 523,758,769.74 after deducting the statutory surplus reserve of CNY 104,229,267.59[2]. - The company reported a total share capital of 5,091,291,568 shares as of December 31, 2018[2]. - The company's operating revenue for 2018 was approximately CNY 18.95 billion, an increase of 2.61% compared to CNY 18.47 billion in 2017[10]. - The net profit attributable to shareholders for 2018 was CNY 622.79 million, a decrease of 46.09% from CNY 1.16 billion in 2017[10]. - The net cash flow from operating activities decreased by 26.26% to CNY 2.69 billion in 2018 from CNY 3.65 billion in 2017[10]. - The basic earnings per share for 2018 was CNY 0.1223, down 53.67% from CNY 0.2640 in 2017[11]. - The company's total assets as of the end of 2018 were approximately CNY 31.85 billion, a decrease of 2.92% from CNY 32.80 billion at the end of 2017[10]. - The company reported a net asset attributable to shareholders of CNY 14.36 billion at the end of 2018, an increase of 4.03% from CNY 13.80 billion at the end of 2017[10]. - The company achieved operating revenue of CNY 18,950,719,417.68, an increase of 2.61% year-on-year[50]. - Operating costs rose to CNY 15,352,058,690.29, reflecting a 3.81% increase compared to the previous year[52]. - Net profit attributable to shareholders decreased to CNY 62,279.25 million, a decline of 46.09% year-on-year[50]. - Basic earnings per share fell to CNY 0.1223, down 53.67% from CNY 0.2640 in the previous year[50]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.7 per 10 shares, totaling CNY 356,390,409.76[2]. - In 2018, the company distributed cash dividends totaling approximately RMB 356.39 million, representing 57.22% of the net profit attributable to ordinary shareholders[103]. - The cash dividend per 10 shares was RMB 0.7 in 2018, an increase from RMB 0.3 in 2017[103]. - The company plans to distribute at least 10% of its annual distributable profits as cash dividends, with a cumulative cash distribution of no less than 30% of the average annual distributable profits over the last three years[100]. - The company has committed to distributing at least 10% of the annual distributable profit in cash dividends over the next three years, with a cumulative distribution of no less than 30% of the average annual distributable profit[105]. Operational Capacity and Production - The company has a comprehensive production capacity of 3 million tons of ore selection, 622,000 tons of lead-zinc smelting, and 150 tons of silver as of the end of 2018[16]. - The company produced 25.55 million tons of zinc metal and 9.74 million tons of lead metal in 2018, with a total output of 35.29 million tons of lead-zinc metals[43]. - The company’s lead and zinc smelting capacity is 622,000 tons, with lead smelting capacity at 230,000 tons and zinc smelting capacity at 392,000 tons[29]. - The company’s mining operations in Yunnan and Inner Mongolia have a combined lead and zinc selection capacity of 286,000 tons per year[27]. - The company plans to produce 350,000 tons of lead and zinc concentrate in 2019, a decrease of 2.9% compared to 2018[90]. Market and Sales Performance - The average selling price of zinc ingots increased by 10.72% compared to the previous year, reaching 20,728.15 RMB per ton, with total sales amounting to 621,513.88 million RMB[46]. - The total revenue from the top five customers was 567,753.83 million RMB, accounting for 29.96% of annual sales[57]. - The total revenue from zinc products was ¥806,913.33 million, with a gross margin of 29.31%, reflecting an 8.17% increase in revenue compared to the previous year[68]. - The company reported a significant increase in germanium product sales, with production up 87.78% to 40,483.63 kg and sales up 264.31% to 24,271.34 kg[54]. Environmental Management - The company has maintained zero environmental pollution incidents and zero government environmental penalties in 2018[47]. - The company’s environmental investment was 63.44 million RMB, accounting for 3.35% of sales revenue[36]. - The company has implemented advanced mining techniques, including the use of paste filling technology to minimize environmental impact[39]. - The company is committed to improving its environmental management practices in response to increasing regulatory pressures and aims to enhance pollution prevention measures[96]. - The company has established a comprehensive environmental protection strategy, ensuring compliance with national environmental impact assessments and obtaining necessary permits, including hazardous waste management licenses[175]. Risk Management - The company has outlined potential risks in its operations, which are detailed in the fourth section of the report[2]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[2]. - The company is actively managing risks associated with its overseas operations, including cultural and legal differences, to ensure successful international expansion[98]. - The company will enhance market analysis capabilities and utilize futures hedging tools to mitigate market risks associated with lead and zinc price fluctuations[92]. Research and Development - Research and development expenses totaled 86,696,986.38 RMB, accounting for 0.46% of operating revenue[60]. - The company increased its research and development expenditure by 202.66% to ¥72,423,699.53, indicating a focus on innovation[64]. - The company was awarded two provincial and ministerial-level scientific and technological achievements, highlighting its commitment to technological innovation[61]. Corporate Governance - The report includes a standard unqualified audit opinion from Ruihua Certified Public Accountants[2]. - The company has not disclosed any non-operational fund occupation by controlling shareholders or related parties[2]. - The company has confirmed that it will strictly adhere to its profit distribution policy as outlined in its articles of association[105]. - The company has no significant litigation or arbitration matters for the current year, indicating a stable legal standing[111]. Community Engagement and Social Responsibility - The company invested 36.65 million yuan in poverty alleviation efforts, assisting 1,984 individuals in escaping poverty out of 6,683 targeted[128]. - The company has established a comprehensive poverty alleviation plan, aligning with national strategies to combat poverty effectively[125]. - The company has provided vocational skills training with an investment of 7.7 million, training 232 individuals, and assisted 40 registered impoverished households in achieving employment[130]. - The company donated a total of 200,000 yuan in educational resources, including computers and teaching materials, to improve the educational environment for local schools[127]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 181,995, down from 182,188 the previous month[194]. - The largest shareholder, Yunnan Metallurgical Group Co., Ltd., holds 1,944,142,784 shares, representing 38.19% of the total shares[195]. - The company has 285,132,382 restricted shares that will become tradable on November 30, 2020, subject to a 36-month lock-up period[197]. - The company has no significant changes in controlling shareholders during the reporting period, maintaining stability in ownership[199].