HY(SH:601020)2019-05-06 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 approximately 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 approximately CNY 387.97 million in 2018, up from CNY 285.92 million in 2017[17] - The total assets of the company reached approximately CNY 3.90 billion in 2018, a 31.58% increase from CNY 2.96 billion in 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 approximately 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 1.145 billion RMB, representing a year-on-year increase of 26.57%[108] - The net profit attributable to shareholders decreased by 26.23% to 225 million RMB[108] Dividend Distribution - The company plans to distribute dividends based on a total share capital of 525,916,300 shares as of the end of 2018[3] - The cash dividend policy stipulates a minimum cash dividend ratio of 80% during mature development stages without major capital expenditures, and 20% during growth stages with significant expenditures[192] - In 2017, the company distributed a cash dividend of 1.20 RMB per 10 shares, totaling 63,109,956 RMB[195] - The company reported a net profit attributable to ordinary shareholders of 304,466,035.79 RMB in 2017, with a dividend payout ratio of 20.73%[195] Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[3] - The financial report is prepared in accordance with the relevant accounting standards and regulations[3] - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[3] - There are no violations of decision-making procedures for providing guarantees to external parties[3] - The company emphasizes the importance of investor awareness regarding investment risks associated with future developments[3] - The company has committed to maintaining operational independence and protecting shareholder interests as part of its governance practices[199] - The company has a structured approach to ensure compliance with its commitments related to stock stability and information disclosure[199] - The company has implemented a cash dividend distribution plan that requires timely communication of any changes to shareholders[192] Operational Highlights - The company has two operating mines and one overseas mining project currently under construction, 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 maintained a "zero injury" safety record throughout 2018, emphasizing its commitment to safety management and compliance with local regulations[99] - The company focused on resource exploration, successfully collecting information on 152 mining rights and conducting field investigations on 20 projects involving various minerals[90] - The company is actively participating in the "Belt and Road" initiative, focusing on resource development in Central Asia[78] Strategic Initiatives - The company plans to acquire 100% equity of Shanhai Trade Company and Lhasa Pinzhi Company, with the agreements signed in April 2018[27] - The company has signed a framework cooperation agreement with China Nonferrous Geological Exploration to enhance collaboration in mining project exploration and development[27] - The company plans to prioritize the development of gold, silver, copper, lead, zinc, and antimony resources, aiming to strengthen its risk resistance and profitability[29] - The company aims to develop potential mining projects leveraging its partnership with Talu Jinye, aligning with national development strategies[29] - The company plans to establish a wholly-owned subsidiary in Hong Kong with an investment of RMB 50 million, focusing on non-ferrous metals and mineral products trading[146] - The company plans to invest a total of 56.65 million yuan in the Tibet region in 2019, focusing on key projects such as the expansion of tailings storage and surface engineering[174] Market and Economic Conditions - In 2018, global zinc concentrate production increased by 1.2% year-on-year, reaching 10.43 million tons, while China's zinc concentrate production decreased by 3.0% to 4.172 million tons[36][37] - China's zinc concentrate imports rose by 23% year-on-year, totaling 2.723 million tons from January to November 2018, compensating for domestic supply shortages[37] - The average price of LME three-month zinc in 2018 was $2,896 per ton, a slight increase of 0.2% compared to 2017, while the average price of Shanghai zinc futures fell by 2.5% to 23,024 RMB per ton[35] - The company anticipates that zinc prices may experience downward pressure in 2019, with LME zinc expected to fluctuate between USD 2,200-2,800 per ton[157] - The company expects lead prices to remain under pressure due to a potential oversupply, with LME lead projected to range between USD 1,800-2,200 per ton in 2019[160] - The overall market sentiment for zinc is expected to improve in the latter half of 2019 due to government infrastructure policies[157] Research and Development - The total R&D investment amounted to ¥11,551,481.05, representing 1.01% of operating revenue, with 90.16% of the R&D costs capitalized[126] - The company has established long-term partnerships with geological research institutions and universities to enhance its technological capabilities and talent management[79] - The company is enhancing its digital infrastructure, including the implementation of SURPAC and LIMS systems to improve production data management and operational efficiency[183] Environmental and Safety Practices - The company initiated the creation of green mines, with three contracts signed for green mine construction, positioning itself as a leader in sustainable mining practices in Tibet[100] - The company has established comprehensive waste treatment and environmental assessment systems to mitigate pollution risks during the mining and production processes[188] - The company emphasizes strict safety management in mining operations to prevent accidents that could impact personnel and assets[187] Financial Management - The company reported a significant increase in accounts receivable, which rose by 197.71% to ¥271,450,846.36, indicating improved sales performance[129] - The company's inventory decreased by 40.38% to CNY 50,323,494.46 from CNY 84,401,764.87[131] - The company's short-term borrowings increased by 37.50% to CNY 55,000,000.00 from CNY 39,999,806.20[131] - Accounts payable increased by 110.68% to CNY 167,176,177.02 from CNY 79,352,014.60, attributed to increased trust from suppliers[131] - The company's long-term borrowings decreased by 41.36% to CNY 387,000,000.00 from CNY 660,000,000.00 due to repayment of project loans[131] Future Outlook - The company anticipates a challenging economic environment in 2019, with ongoing external risks and a focus on strategic development and organizational optimization[173] - The company aims to strengthen its core business in non-ferrous metals and expand into precious metals, focusing on strategic transformation and upgrading[165] - The company plans to enhance its talent development and management capabilities to address challenges arising from rapid expansion and increased operational scale[186] - The company will prioritize resource exploration to increase reserves, focusing on high-quality projects for mergers and acquisitions that align with its strategic goals[182]