HY(SH:601020)2020-04-28 16:00Financial Performance - The company's operating revenue for 2019 was CNY 1,519,274,646.32, representing a 32.69% increase compared to CNY 1,144,988,699.50 in 2018[23]. - The net profit attributable to shareholders for 2019 was CNY 125,149,564.34, a decrease of 44.28% from CNY 224,609,903.77 in 2018[23]. - The net cash flow from operating activities for 2019 was CNY 429,302,111.50, reflecting a 10.65% increase from CNY 387,967,924.18 in 2018[23]. - The total assets at the end of 2019 were CNY 4,538,015,773.36, a 16.49% increase from CNY 3,895,675,113.63 at the end of 2018[24]. - The basic earnings per share for 2019 was CNY 0.24, down 44.19% from CNY 0.43 in 2018[25]. - The weighted average return on equity for 2019 was 4.63%, a decrease of 7.07 percentage points from 11.70% in 2018[25]. - The net assets attributable to shareholders at the end of 2019 were CNY 2,188,039,775.05, a 9.98% increase from CNY 1,989,539,226.25 at the end of 2018[24]. - The consolidated net profit was 107 million yuan, a decrease of 50.70% year-on-year, with the net profit attributable to shareholders declining by 44.28% to 125 million yuan[94]. Strategic Developments - The company plans to not distribute cash dividends or bonus shares for the year 2019, with retained earnings to be reinvested in core business development[5]. - The company has outlined potential risks in its future development strategy, which are detailed in the report[7]. - The company’s future plans and strategic developments are subject to investment risks, as highlighted in the forward-looking statements[6]. - The company plans to acquire 100% equity of Yunnan Shanhai Industrial Co., Ltd. and Lhasa Pinzhi Co., Ltd. through framework agreements signed on April 2, 2018[34]. - The estimated price for acquiring 40% equity of Guizhou Asia-Pacific Mining Co., Ltd. is approximately 776.82 million RMB, based on a pre-evaluation price of 1.94206 billion RMB[35]. - The total assessed value of Asia-Pacific Mining's equity is 1.8434245 billion RMB, with the final transaction price agreed at 1.25 billion RMB for the 40% equity transfer[35]. - A strategic cooperation agreement was signed with Minmetals Rare Earth Group on December 31, 2019, to establish a joint venture for antimony products, impacting global pricing and decision-making in the antimony industry[37]. - The company aims to strengthen cooperation in mineral resources along the Belt and Road Initiative, focusing on gold, silver, copper, lead, zinc, and antimony projects[39]. Operational Highlights - The company has two domestic production mines and two overseas mining rights projects currently under construction[33]. - The company reported non-recurring gains of CNY 11,694,958.75 for 2019, compared to CNY 18,907,018.44 in 2018[30]. - The company achieved a significant milestone in safety production, with no major accidents reported throughout the year[91]. - In 2019, the company completed a total ore output of 720,000 tons, exceeding the annual plan by 2.86%[76]. - The company conducted exploration work in three mining areas, completing 4,188.7 meters of drilling and discovering new lead-zinc ore bodies[79]. Market Conditions - In 2019, the global refined zinc production reached a historical high, with an average price of $2,506 per ton, down 13.5% from 2018[46]. - The average price of lead in 2019 was $2,004 per ton, a decrease of 10.8% year-on-year, while domestic lead prices also showed a downward trend[47]. - Antimony production from January to November 2019 was 56,300 tons, a year-on-year decrease of 14.67%, while antimony ingot prices averaged $6,632.95 per ton, down 19.2%[50][51]. - The global gold supply in 2019 was estimated at 4,800 tons, with demand reaching 4,650 tons, resulting in a surplus of 150 tons[53]. - The average international gold price in 2019 was $1,392.60 per ounce, an increase of 9.73% compared to the previous year[52]. Resource Management - The company controls domestic resource reserves of lead, zinc, copper, antimony, and silver amounting to 695,700 tons, 1,107,600 tons, 25,200 tons, 149,500 tons, and 1,587.71 tons respectively, all registered with the Ministry of Natural Resources[59]. - The overseas joint venture "Talu Aluminum Industry" has controllable resource reserves of antimony and gold reaching 264,600 tons and 499,000 tons respectively, with production expected to yield 16,000 tons of antimony concentrate and 2,200 tons of gold ingots annually[59]. - The company has increased its gold resource reserves to a total of 59.375 tons, with 49.9 tons from Talu Aluminum and 9.475 tons from the Ethiopia project[61]. - The company aims to produce 21,000 tons of antimony annually post the Talu Aluminum project, controlling nearly 15% of the global antimony supply[62]. Financial Management - The company has been recognized as an "A-level tax credit enterprise" for two consecutive years, which provides it with various financial benefits[73]. - The company reported a significant increase in financing cash flow, amounting to CNY 328,662,096.36, compared to a negative cash flow of CNY 104,691,773.60 in the previous year, marking a 413.93% change[96]. - The company issued 640 million yuan in convertible bonds to finance the acquisition of the Tal Aluminum project, with approval from the China Securities Regulatory Commission[85]. - The company is actively pursuing non-public stock issuance to attract long-term strategic investors, optimizing its equity structure[186]. Environmental and Safety Management - The company emphasizes environmental protection and safety management, aiming to create a "green mine" while adhering to national environmental regulations[71]. - The company is committed to strict safety management in mining operations to prevent accidents that could harm personnel and affect its reputation[200]. Research and Development - Total R&D investment amounted to 7.92 million RMB, accounting for 0.52% of operating revenue, with 83.33% of R&D costs capitalized[117]. - The company has established a long-term cooperation mechanism with several geological research institutions and universities to enhance its technological capabilities[69]. Future Outlook - The company anticipates zinc prices to fluctuate between $2,050 and $2,450 per ton in 2020, with domestic prices expected to range from ¥16,500 to ¥19,500 per ton[157]. - The company expects lead prices to range from $1,700 to $2,100 per ton in 2020, with domestic prices between ¥13,500 and ¥16,800 per ton[158]. - The company aims to achieve a production target of 650,000 tons for both ore extraction and beneficiation in the Tibet region in 2020[174]. - The company plans to invest a total of 80 million yuan in fixed assets for 2020, with 15 million yuan allocated for shaft projects and 65 million yuan for infrastructure[176].