HY(SH:601020)2019-04-26 16:00Financial Performance - The net profit attributable to shareholders for 2018 was CNY 224,609,903.77, with a proposed cash dividend of CNY 0.90 per 10 shares, totaling CNY 47,332,467.00[3]. - The company's operating revenue for 2018 was approximately CNY 1.14 billion, representing a 26.57% increase compared to CNY 904.63 million in 2017[17]. - The net profit attributable to shareholders decreased by 26.23% to CNY 224.61 million in 2018 from CNY 304.47 million in 2017[17]. - The net cash flow from operating activities increased by 35.69% to CNY 387.97 million in 2018, up from CNY 285.92 million in 2017[17]. - The total assets of the company reached CNY 3.90 billion at the end of 2018, a 31.58% increase from CNY 2.96 billion at the end of 2017[19]. - The basic earnings per share decreased by 25.86% to CNY 0.43 in 2018, down from CNY 0.58 in 2017[19]. - The net profit after deducting non-recurring gains and losses was CNY 205.70 million in 2018, a decrease of 27.23% from CNY 282.69 million in 2017[17]. - The company achieved a sales revenue of CNY 1.145 billion, representing a year-on-year increase of 26.57%[108]. - Operating costs increased by 81.56% to CNY 645 million, primarily due to rising raw material and manufacturing expenses[109]. - The gross profit margin for the non-ferrous metal segment was 60.58%, a decrease of 8.96 percentage points compared to the previous year[110]. Shareholder Returns - The company plans to actively return profits to shareholders based on future development expectations and confidence[3]. - The company distributed a cash dividend of 1.20 RMB per 10 shares for the 2017 fiscal year, totaling 63,109,956 RMB (including tax) paid to shareholders[191]. - In 2018, the company reported a net profit attributable to ordinary shareholders of 224,609,903.77 RMB, with a dividend payout ratio of 21.07%[194]. - The cash dividend policy stipulates a minimum payout of 80% during mature phases without major capital expenditures, and 20% during growth phases with significant expenditures[191]. - The company has committed to maintaining shareholder rights and ensuring adequate communication during profit distribution decisions[191]. - No cash profit distribution proposal was made for the 2018 fiscal year despite positive profits available for distribution[194]. Risk Management - The report includes a detailed description of potential risks and countermeasures related to future plans and strategies[3]. - The company has established a hedging business model to mitigate market risks and ensure stable profitability, successfully implementing its 2018 hedging plan[32]. - The company faces risks from fluctuating metal prices, which significantly impact profitability, and is engaging in futures hedging to mitigate these risks[184]. Strategic Initiatives - The company plans to acquire 100% equity of Shan Hai Gong Mao Company and Lhasa Pin Zhi Company, with agreements signed in April 2018[27]. - A framework cooperation agreement was signed with China Nonferrous Geological Exploration Co., Ltd. in May 2018 to enhance collaboration on mining projects[27]. - The company plans to prioritize the development of advantageous minerals such as gold, silver, copper, lead, zinc, and antimony, in line with the Belt and Road Initiative, to enhance its reputation and influence in Central Asia[29]. - The company is focusing on expanding its market presence and enhancing its product offerings in response to industry trends[155]. - The company plans to invest a total of 56.65 million yuan in the Tibet region for 2019, focusing on key projects such as the tailings dam and surface engineering[172]. Operational Highlights - The company has two operating mines and is in the construction phase of one overseas mining project, along with several exploration projects[25]. - The company exceeded its production targets for 2018, achieving a total ore output of 749,500 tons, which is 107.07% of the annual plan, and a processing volume of 777,000 tons, reaching 111.00% of the target[88]. - The company reported a decrease in the production of zinc concentrate by 5.89% and an increase in sales volume by 2.50%[114]. - The company maintained a "zero accident" safety record throughout 2018, emphasizing safety management and compliance with local regulations[99]. Market Conditions - In 2018, global zinc concentrate production reached 10.43 million tons, a year-on-year increase of 1.2%, indicating a shift towards a surplus supply situation[36]. - Domestic zinc concentrate production in China for 2018 was estimated at 4.172 million tons, a decrease of 3.0% year-on-year, primarily due to environmental regulations and production challenges[37]. - The average price of LME zinc in 2018 was $2,896 per ton, with a year-end price of $2,454 per ton, representing a decline of 26.0% for the year[35]. - The anticipated price for zinc in 2019 is expected to fluctuate between USD 2,200 and USD 2,800 per ton, with domestic prices between CNY 18,000 and CNY 22,000 per ton[155]. Corporate Governance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[3]. - The company does not have any non-operating fund occupation by controlling shareholders or related parties[3]. - The company has not violated decision-making procedures for external guarantees[3]. - The company’s financial report is guaranteed to be true, accurate, and complete by its responsible persons[3]. - The company has established measures to stabilize stock prices if the stock price falls below the latest audited net asset value for 20 consecutive trading days[200]. Environmental and Social Responsibility - The company is committed to environmental responsibility, establishing waste treatment systems to control pollution risks during mining and production processes[187]. - The company established a charity fund in June 2018, donating approximately CNY 1.8 million for various social welfare activities[106].