ZHUYE GP(SH:600961)2019-04-25 16:00Financial Performance - In 2018, the company reported a total revenue of ¥13,008,429,316.13, a decrease of 5.71% compared to ¥13,796,828,901.74 in 2017[22] - The net profit attributable to shareholders was -¥1,631,818,694.33, representing a significant decline of 3,042.89% from a profit of ¥55,449,577.75 in 2017[22] - The company's net assets decreased by 75.25% to ¥50,700,065.07 at the end of 2018, down from ¥204,834,698.48 at the end of 2017[22] - The basic earnings per share for 2018 was -¥3.09, a decrease of 2,909.09% compared to ¥0.11 in 2017[25] - The weighted average return on net assets was -11.58% in 2018, a decrease of 41.94 percentage points from 30.36% in 2017[25] - The net profit after deducting non-recurring gains and losses was -¥992,525,497.26, a decline of 2,889.21% from ¥35,584,415.69 in 2017[22] - The total non-recurring losses for 2018 amounted to CNY 639 million, indicating significant financial challenges faced during the year[27] - The company reported a net profit of -1,667,793,312.24 RMB for the fiscal year 2018, resulting in a total distributable profit of -3,075,172,473.57 RMB, leading to no profit distribution for the year[89] Cash Flow and Investments - The net cash flow from operating activities increased by 103.54% to ¥682,082,698.14 in 2018, compared to ¥335,114,362.41 in 2017[22] - The company’s investment activities generated a net cash flow of approximately -948 million RMB, a significant increase in outflow compared to the previous year[46] - The company reported an investment income of 10,470.72 million yuan, a significant increase of 15,501.14 million yuan compared to the previous year's loss of 5,030.42 million yuan, mainly due to substantial profits from commodity futures hedging[64] - The company’s total revenue from zinc and zinc alloys was 8,467,696,547.42 yuan, a decrease of 16.21% year-on-year, with a gross margin of -4.35%, down 8.93 percentage points[72] Production and Operations - The company achieved a total lead and zinc production of 430,200 tons and reported a revenue of 13 billion RMB, a year-on-year decrease of 5.71%[42] - The company experienced a 17.44% decrease in zinc production volume and a 19.75% decrease in lead production volume compared to the previous year[54] - The company has no raw material base and relies entirely on external procurement, which influences its production planning and operational efficiency[36] - The company completed the main engineering construction of the zinc project within about one year, with trial production starting on December 26[41] Market and Sales - Domestic revenue accounted for 99.54% of total revenue, amounting to CNY 12,949,089,850.12, with a year-over-year decline of 4.85%[75] - Foreign revenue was CNY 59,339,466.01, representing only 0.46% of total revenue, with a significant decline of 68.33% year-over-year[75] - The company plans to achieve a total zinc production of 373,000 tons and an expected revenue of CNY 9 billion in 2019[83] - The company is focusing on expanding its market share by increasing channel development and maintaining stable customer relationships[83] Environmental and Social Responsibility - The company has committed to strengthening environmental management and implementing clean production practices in response to increasing regulatory demands[84] - The company achieved a 30% reduction in sulfur dioxide emissions compared to 2017, and wastewater discharge was also reduced by 30%[120] - The company has invested significantly in green transformation and upgrading, focusing on building green factories and complying with local industrial relocation requirements[117] - The company actively participated in poverty alleviation efforts, sending a dedicated team to support local development in Huayuan County, Hunan Province since 2018[117] Governance and Compliance - The company has maintained compliance with corporate governance standards as per the requirements of the China Securities Regulatory Commission[173] - The audit committee confirmed that the financial statements fairly reflect the company's operating results and cash flow for the year 2017, adhering to accounting standards[183] - The company has established a performance evaluation mechanism linking executive salaries to the achievement of annual business goals[187] - The company has not reported any major asset or equity acquisitions or disposals during the reporting period[108] Research and Development - The company’s R&D expenses increased by 45.13% to approximately 24.71 million RMB compared to the previous year[46] - The total R&D expenditure was CNY 24.71 million, accounting for 0.19% of total revenue, with 368 R&D personnel representing 9.83% of total employees[59] - The company is focusing on the development of new zinc alloy products and has ongoing research in areas such as high-aluminum zinc coatings and low-copper high-aluminum zinc alloys[62] Employee and Management - The total number of employees in the parent company and major subsidiaries is 4,778, with 3,619 in production, 1,022 in technical roles, and 40 in sales[168] - The company conducted 129 training sessions in 2018, training a total of 3,745 employees, with 1,746 employees receiving training certificates[170] - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.484 million yuan[162] - The company has a salary management system that ties compensation to company performance and individual contributions, ensuring transparency in salary distribution[169]