Chihong Zinc(SH:600497)2023-04-20 16:00Financial Performance - In 2022, the net profit attributable to shareholders of the listed company was CNY 689,220,007.62, representing 91.24% of the total profit available for distribution[3]. - The company plans to distribute a cash dividend of CNY 1.20 per 10 shares, totaling CNY 610,954,988.16, based on a total share capital of 5,091,291,568 shares[3]. - The operating revenue for 2022 was CNY 217.17 billion, with a net profit of CNY 34.28 billion, reflecting a continuous improvement in profitability[6]. - The company achieved operating revenue of 21.9 billion RMB in 2022, a year-on-year increase of 0.85%[23]. - Net profit attributable to shareholders reached 669.6 million RMB, reflecting a growth of 14.58% compared to the previous year[23]. - The net cash flow from operating activities was 3.43 billion RMB, up 5.78% year-on-year[23]. - The company's total assets decreased by 6.96% to 26.6 billion RMB as of the end of 2022[23]. - The asset-liability ratio improved to 35.26%, a decrease of 4.59 percentage points year-on-year, marking the best performance since the company went public[29]. - Basic earnings per share increased to 0.1315 RMB, representing a growth of 14.55% from the previous year[24]. - The weighted average return on net assets rose to 4.50%, an increase of 0.57 percentage points year-on-year[24]. Environmental Initiatives - The company has invested CNY 5.23 billion in environmental protection initiatives, achieving a 100% compliance rate for pollutant discharge and solid waste disposal[10]. - In 2022, the company invested 5.23 billion yuan in environmental protection, achieving a 100% completion rate for rectifying issues identified by central ecological inspections[41]. - The company constructed 6 green mines and 4 green factories, enhancing its commitment to environmental protection and sustainable development[81]. - The company is committed to strict compliance with national environmental protection regulations, continuously improving pollution prevention levels through technology upgrades[134]. Technological Innovation - The company has developed 37 technological achievements recognized at the provincial and ministerial levels, and added 133 new effective patents, including 18 invention patents[12]. - The company is focusing on technology innovation, having undertaken 15 provincial and ministerial projects and hosting a national forum on sustainable development in the lead-zinc industry[11]. - The company successfully completed 15 provincial and above-level projects, including 4 national key R&D projects, enhancing its technological capabilities[34]. - The company has implemented advanced mining and smelting technologies, including deep well mining and comprehensive recovery of various valuable metals[80]. Market and Industry Trends - The lead and zinc industry in China is expected to experience a high-level fluctuation in prices in 2023, with lead prices projected to range between 14,000 and 16,500 RMB per ton[127]. - The domestic lead and zinc market is expected to maintain a tight balance in supply and demand, with a slight increase in consumption anticipated[127]. - The lead and zinc industry is witnessing a trend towards green and low-carbon transformation, with an emphasis on resource recycling and sustainable practices[124]. - The global mining landscape is undergoing restructuring, with countries seeking to reduce reliance on foreign resources, increasing the difficulty of securing stable resource supplies from abroad[112]. Governance and Management - The board of directors consists of 11 members, including 8 external directors, with a structure that ensures effective checks and balances[139]. - The company has established a governance structure that integrates party leadership, ensuring a scientific and standardized decision-making process[138]. - The company has established a dual prevention mechanism for safety management, focusing on major hazard control and enhancing safety skills across the workforce[134]. - The company has implemented a comprehensive internal control system to enhance management effectiveness and risk management[185]. Production and Operations - In 2022, the company produced 8.56 million tons of lead and 23.17 million tons of zinc, with total lead and zinc products reaching 43.83 million tons[31]. - The company achieved a zinc recovery rate of 100% in its innovative low-alkali process, setting an industry benchmark[33]. - The company has a total mining capacity of 3 million tons per year and a zinc-lead smelting capacity of 630,000 tons[54]. - The company has established four major smelting bases, ensuring a stable industrial layout in resource-rich regions of Inner Mongolia and Yunnan[78]. Risk Management - The company has identified ten major risks for the year and has developed corresponding strategies and measures to address them[42]. - The company is exposed to metal price fluctuation risks, particularly in zinc and lead, which significantly impact profit levels due to their volatility influenced by economic cycles and market supply-demand dynamics[134]. - The company has implemented measures to enhance market analysis capabilities and utilize financial derivatives to manage metal price risks effectively[134]. Shareholder Engagement - The company held 3 shareholder meetings during the reporting period, reviewing 23 major matters, adhering strictly to legal regulations and internal rules[138]. - The company engaged in 69 investor communication sessions, reaching 358 participants, and responded to 200 investor calls and 140 inquiries via email and online platforms[140]. - The company has a strategic focus on employee engagement through stock ownership, aligning employee interests with company performance[156]. Future Outlook - The company aims to achieve an operating income of over 22 billion RMB in 2023, with a net cash flow from operating activities expected to exceed 3 billion RMB[131]. - The company has set a development goal of becoming a world-class lead, zinc, and germanium enterprise by 2035, focusing on resource enhancement and technological innovation[128]. - The company plans to enhance production organization and efficiency through intelligent management and full-cycle management practices[130].