Western Mining(SH:601168)2021-05-26 16:00Financial Performance - In 2020, the company's operating revenue was CNY 28.55 billion, a decrease of 6.60% compared to CNY 30.57 billion in 2019[25]. - The net profit attributable to shareholders was CNY 907.79 million, down 9.86% from CNY 1.01 billion in the previous year[25]. - The basic earnings per share decreased by 9.52% to CNY 0.38 from CNY 0.42 in 2019[24]. - The company's total assets increased by 7.61% to CNY 47.90 billion at the end of 2020, compared to CNY 44.52 billion at the end of 2019[25]. - The net asset attributable to shareholders rose by 8.74% to CNY 10.91 billion from CNY 10.03 billion in 2019[25]. - The company achieved an operating income of 28.55 billion RMB in 2020, a decrease of 7% compared to the previous year, with a total profit of 1.651 billion RMB and a net profit of 1.346 billion RMB, of which the net profit attributable to shareholders was 908 million RMB[57]. - The total operating revenue for the company reached ¥28,038,025,667, a decrease of 7.01% compared to the previous year, while the gross profit margin increased by 2.18 percentage points to 14.13%[62]. - The revenue from non-ferrous metal mining and smelting was ¥15,819,576,495, with a gross profit margin of 23.41%, reflecting an increase of 1.07 percentage points year-on-year[62]. Dividends and Share Capital - The company distributed cash dividends of 1.2 CNY per 10 shares, totaling 285.96 million CNY, which accounts for 31.5% of the distributable profit for 2020[5]. - The total share capital at the end of 2020 was 2,383 million shares[5]. - The company has established a cash dividend policy requiring that the cumulative cash dividends in the last three years be no less than 30% of the distributable profits[96]. - In 2019, the company distributed a total of 238.3 million RMB in cash dividends, with a net profit attributable to shareholders of 1.007 billion RMB[98]. Audit and Compliance - The company received a standard unqualified audit report from Ernst & Young Hua Ming[5]. - There were no non-operating fund occupations by controlling shareholders or related parties[7]. - The company has not violated decision-making procedures for external guarantees[7]. - The company has not reported any significant changes in its accounting policies that would affect its financial statements[101]. - There are no significant litigation or arbitration matters reported for the year[105]. - The company has no major accounting errors to correct during the reporting period[102]. Governance and Management - The company has a comprehensive governance structure, including a board of directors and supervisory board ensuring the accuracy of the financial report[4]. - The company has maintained a stable relationship with its controlling shareholders and actual controllers[106]. - The company’s governance structure is compliant with regulatory requirements, ensuring clear responsibilities and checks and balances among its governing bodies[195]. - The board of directors consisted of 7 members, including 3 independent directors, and held 10 meetings during the reporting period, ensuring compliance with legal and regulatory requirements[198]. - The company’s supervisory board, comprising 3 members, held 6 meetings and effectively supervised the operations and compliance of the company[200]. Operational Segments - The company operates in four main segments: mining, smelting, trading, and finance, focusing on non-ferrous and ferrous metals[29]. - The mining segment includes ownership or control of 13 mines, with significant reserves in lead, zinc, and copper[29]. - The smelting segment has an annual capacity of 100,000 tons for lead, 160,000 tons for electrolytic copper, and 100,000 tons for zinc ingots[30]. - The company plans to continue expanding its mining and smelting operations to enhance production capacity and market presence[29]. Market Position and Production - The company is the second largest lead concentrate producer, fourth largest zinc concentrate producer, and eighth largest copper concentrate producer in China[31]. - As of December 31, 2020, the company holds copper metal reserves of 655.83 thousand tons, lead metal reserves of 160.69 thousand tons, and zinc metal reserves of 311.60 thousand tons[32]. - The company has a total annual ore processing capacity of 33.51 million tons, with key mines such as Tibet Yulong Copper Mine processing 1.989 million tons annually[39]. - The company reported a completion rate of 106% for lead concentrate production, while zinc concentrate and electrolytic copper production were at 90% and 90% of their respective targets[51]. Research and Development - The company’s research and development expenses rose by 21.38% to 149.65 million RMB, indicating a commitment to innovation[58]. - Research and development expenses totaled ¥261,892,700, representing 0.92% of total operating revenue, with 1,014 R&D personnel, accounting for 18.49% of the total workforce[69]. Social Responsibility and Community Engagement - The company has successfully helped five villages achieve poverty alleviation, currently in the consolidation phase[121]. - The company has committed to social responsibility, particularly in poverty alleviation efforts, aligning with national policies[120]. - The company donated a total of 18.58 million yuan for social responsibility initiatives, primarily supporting poverty alleviation and education[128]. - The company contributed 8.21 million yuan for pandemic prevention efforts, including a donation of 7 million yuan to the Qinghai Red Cross[128]. Environmental Management - All units have obtained pollution discharge permits and registered fixed pollution sources, with monitoring results meeting current standards[131]. - Wastewater treatment facilities effectively recycle tailings wastewater, with domestic sewage treated for irrigation purposes[132]. - The company has successfully implemented a comprehensive environmental monitoring program, ensuring compliance with regulations[131]. - The company has established a wastewater treatment station that recycles all production wastewater, with no external discharge[143]. Employee Management and Development - The company has a total of 5,484 employees, with 159 in the parent company and 5,325 in major subsidiaries[186]. - The employee composition includes 4,145 production personnel, 197 sales personnel, 304 technical personnel, 141 financial personnel, and 697 administrative personnel[186]. - The company has implemented a talent development strategy, focusing on internal training and recruitment to enhance human resource capabilities[191]. - The company organized 828 training sessions for 32,451 employees in 2020, incurring training costs of 1.5986 million yuan, enhancing employee skills and adaptability[193].