CTM(SH:600711)2019-03-27 16:00Financial Performance - The company's operating revenue for 2018 was approximately CNY 30.75 billion, representing a 48.80% increase compared to CNY 20.67 billion in 2017[24]. - Net profit attributable to shareholders for 2018 was CNY 420.26 million, a decrease of 31.14% from CNY 610.33 million in 2017[24]. - The net profit after deducting non-recurring gains and losses was CNY 286.22 million, down 52.77% from CNY 606.04 million in 2017[24]. - The company's total assets increased by 19.77% to CNY 13.48 billion at the end of 2018, compared to CNY 11.25 billion at the end of 2017[24]. - Basic earnings per share for 2018 were CNY 0.245, a decline of 39.95% from CNY 0.408 in 2017[25]. - The weighted average return on equity decreased to 6.56% in 2018, down 7.65 percentage points from 14.20% in 2017[25]. - The cash flow from operating activities for 2018 was CNY 859.45 million, a decrease of 13.76% from CNY 996.56 million in 2017[24]. - The company received government subsidies amounting to CNY 31.09 million in 2018, compared to CNY 7.33 million in 2017[30]. - The company achieved a total revenue of 30.75 billion RMB in 2018, representing a year-on-year increase of 48.80%[57]. - The net profit attributable to shareholders was 420 million RMB, a decrease of 31.14% year-on-year[57]. Shareholder Returns - The board of directors proposed a cash dividend of RMB 0.23 per 10 shares, totaling RMB 42,107,071.22 for 2018[6]. - The cash dividend for 2018 was set at 0.23 RMB per share, with a total cash distribution amounting to approximately 42.11 million RMB, representing 10.02% of the net profit attributable to shareholders[134]. Company Structure and Governance - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - There are no violations of decision-making procedures for external guarantees[7]. - The company reported a commitment to avoid any direct or indirect competition with its controlled enterprises as of March 22, 2018, ensuring no conflicts in business activities[138]. - The company has pledged to minimize and avoid related party transactions, committing to fair and equitable agreements when such transactions are unavoidable[141]. - The company will maintain complete independence in personnel, assets, business, organization, and finance post-transaction, ensuring no harm to the interests of other shareholders[147]. - The company has established a long-term commitment to transparency and compliance with legal and regulatory requirements regarding related party transactions[144]. Acquisitions and Investments - The company completed the acquisition of Zhuhai Keli Xin, a cobalt deep processing enterprise, for CNY 1.2 billion in August 2018[54]. - The company announced the acquisition of the Nzuri project, which includes the Kalongwe mining project with proven resources of 13.46 million tons of ore, containing 302,000 tons of copper and 42,700 tons of cobalt[55]. - The company plans to acquire 97.22% equity in SiHuan Zinc and Germanium for a total transaction price of CNY 213,874.60 million, with an evaluation value of CNY 209,419.60 million[191]. - The performance commitments for SiHuan Zinc and Germanium are set at CNY 1.4 billion, CNY 3.4 billion, CNY 6.0 billion, and CNY 8.6 billion for the years 2018 to 2021 respectively[191]. Industry and Market Position - The company operates primarily in the non-ferrous metals industry, focusing on zinc, cobalt, copper, and nickel[37]. - The company ranked 356th in the Fortune China 500 list and 30th in the Fujian Top 100 Enterprises list[56]. - The company is actively involved in the exploration and mining of lead and zinc, with a reported revenue of 106,053.26 million CNY from these activities[110]. - The lead and zinc industry is entering a stable development phase, with supply-side structural reforms progressing smoothly and industry concentration increasing[118]. Risk Management - The report includes forward-looking statements regarding future plans and strategies, with a caution on investment risks[7]. - The company recognizes risks associated with metal price fluctuations and plans to use futures market hedging to stabilize profits[129]. - The company has established a professional international business team to mitigate foreign exchange risks associated with its overseas operations[130]. Research and Development - The total R&D investment was 2,617.02 million yuan, representing 0.09% of operating revenue, with 184 R&D personnel, accounting for 13.37% of the total workforce[77]. - The company is exploring new product development and technological advancements to enhance its competitive edge in the market[118]. Financial Health - The company's total liabilities increased by 86.86% to 1,638,678,044.52 yuan, driven by increased trade activities and expanded consolidation scope[81]. - The company has no outstanding guarantees that may incur joint liability for repayment[197]. - The company has entrusted cash asset management with a total amount of 526,000,000 RMB, sourced from its own funds[198]. Operational Performance - The company’s mining operations for zinc, copper, lead, tungsten, and tin generated sales revenue of CNY 453 million, a decrease of 2.00% year-on-year[51]. - The company’s total external equity investment balance increased by 43.21% year-on-year, reaching 986,529,219.77[97]. - The company has ongoing investments in futures products to hedge against precious metal price fluctuations[98].