HY(SH:601020)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,378,942,506.55, representing a 56.58% increase compared to CNY 1,519,274,646.32 in 2019[25]. - The net profit attributable to shareholders for 2020 was CNY 72,380,454.50, a decrease of 42.16% from CNY 125,149,564.34 in 2019[25]. - The net cash flow from operating activities increased by 26.58% to CNY 543,397,713.82 in 2020, up from CNY 429,302,111.50 in 2019[27]. - The total assets at the end of 2020 were CNY 4,914,793,515.33, an 8.30% increase from CNY 4,538,015,773.36 at the end of 2019[27]. - The basic earnings per share for 2020 was CNY 0.14, down 41.67% from CNY 0.24 in 2019[27]. - The weighted average return on equity for 2020 was 3.16%, a decrease of 1.47 percentage points from 4.63% in 2019[27]. - The company reported a non-operating income of CNY 9,275,982.39 in 2020, related to government subsidies[30]. - The net profit after deducting non-recurring gains and losses for 2020 was CNY 68,966,288.87, a decrease of 39.21% from CNY 113,454,605.59 in 2019[27]. - The company achieved a sales revenue of CNY 2.378 billion in 2020, representing a year-on-year increase of 56.58%[95]. - The net profit attributable to shareholders decreased by 42.16% to CNY 0.72 billion, while the overall net profit dropped by 56.02% to CNY 0.47 billion[95]. Investments and Acquisitions - The acquisition of 40% equity in Guizhou Asia-Pacific Mining Co., Ltd. was valued at 125 million RMB, with the transaction price set at 50 million RMB[37]. - The Asia-Pacific Mining project has gold reserves of 59.14 tons, aimed at enhancing the company's gold resource reserves and overall profitability[38]. - The company completed the acquisition of 70% equity in Tigray Resources Private Limited for 1.2 million USD, which holds gold reserves of 9.475 tons[41]. - The company successfully acquired a 40% stake in Guizhou Apac Mining for a transaction value of 500 million CNY, enhancing its gold resource reserves by 59.14 tons[134]. - The company is actively expanding its precious metals sector through acquisitions, including the "Ethiopian Gold Project" and the "Guizhou Asia-Pacific Mining Co., Ltd. Niubao Gold Mine Project"[181]. Operational Highlights - The actual ore output in 2020 was 613,000 tons, achieving 94.31% of the planned 650,000 tons, while the actual selection output was 610,700 tons, achieving 93.95% of the planned[65]. - Fixed asset investment in Tibet for 2020 totaled 96.19 million yuan, with significant investments in shaft engineering and infrastructure projects[66]. - The company completed the construction of a 30-kilometer 110KV high-voltage power supply line and two substations for the Talu Jinye project in 2020[69]. - The mining system engineering plan aimed to excavate 28,995 meters, with 26,353 meters completed by the end of 2020, achieving 91% of the target[72]. - The company aims to complete a mining output of 620,000 tons and a selection output of 620,000 tons in the Tibet region for 2021[161]. Market and Industry Trends - The zinc price increased by over 20% year-on-year, recovering from a low of 14,265 RMB/ton to exceed the initial price by year-end[46]. - In 2020, domestic lead consumption increased by 0.8% year-on-year, reaching 4.977 million tons, supported by strong growth in lead-acid batteries and electric bicycles[47]. - Antimony ingot prices rose from $5,750-$6,100 per ton in January to a peak of $6,675-$6,950 per ton in December, marking a 15.0% increase from January[49]. - Gold prices surged to a historical high of $2,075.14 per ounce in August 2020, with an annual increase of 25.07%, and the average price for the year was $1,769.59 per ounce, up 27.07% year-on-year[50]. - The company expects continued high volatility in the non-ferrous metals market due to increased demand from new infrastructure and renewable energy sectors[150]. Corporate Governance and Compliance - The audit report from Lixin Certified Public Accountants indicated a qualified opinion, but the financial statements fairly reflect the company's financial position as of December 31, 2020[6]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[10]. - The company has not disclosed any significant changes in shareholder structure or stock variations during the reporting period[13]. - The company has not faced any risks of suspension or termination of its listing status during the reporting period[198]. - There are no significant accounting policy changes or major accounting errors reported during the period[198]. Research and Development - The company reported a significant increase in R&D expenses, which rose by 178.17% to CNY 3.67 million, reflecting a focus on innovation[96]. - The total R&D investment amounted to CNY 4,346,677.30, representing 0.18% of total revenue, with 15 R&D personnel accounting for 3.59% of the total workforce[112]. Social Responsibility and Community Engagement - The company’s charity foundation has donated over CNY 3 million to support social welfare initiatives, demonstrating its commitment to corporate social responsibility[94]. - The company is committed to improving safety management and environmental protection measures to mitigate operational risks[173][174]. Future Outlook and Strategic Plans - The company anticipates a significant rebound in China's economy, projecting an 8.1% growth in 2021, which will positively impact global economic recovery[149]. - The company plans to non-publicly issue 150,000,000 shares, raising up to RMB 680 million to support the expansion into the precious metals sector and alleviate operational funding pressure[165]. - The company is focused on integrating resource development with capital operations to establish itself as a benchmark enterprise in the domestic non-ferrous industry[151]. - The company is leveraging the "Belt and Road" initiative to enhance cooperation in mineral resources and technology with countries along the route, particularly in Central Asia and Africa[153]. Risk Management - The company faces risks related to price fluctuations of non-ferrous metals, which significantly impact profitability[171]. - The company has not distributed dividends in the last three years, maintaining a cash dividend policy of at least 20% of distributable profits when no major investments are planned[178].