Jinduicheng Molybdenum (SH:601958)2022-04-26 16:00Financial Performance - The company reported a net profit of 9,469,000 CNY to be retained for future distribution[3]. - In 2021, the company's operating revenue reached approximately ¥7.97 billion, an increase of 5.24% compared to ¥7.58 billion in 2020[16]. - The net profit attributable to shareholders was approximately ¥494.79 million, representing a significant increase of 171.85% from ¥182.01 million in 2020[16]. - The net profit after deducting non-recurring gains and losses was approximately ¥464.18 million, up 181.06% from ¥165.15 million in 2020[16]. - The basic earnings per share for 2021 was ¥0.15, a 150% increase from ¥0.06 in 2020[18]. - The weighted average return on equity increased to 4.08%, up 2.66 percentage points from 1.42% in 2020[18]. - The total profit reached CNY 71.94 million, a year-on-year increase of 135.40%[27]. - The company reported a significant increase in foreign operating revenue, reaching CNY 1,425,499,502.22, with a year-on-year growth of 92.39%[32]. - The company achieved total operating revenue of CNY 797.38 million, completing 122.67% of the annual operating plan, with a year-on-year increase of 5.24%[27]. - The company reported a total revenue of 384.89 million in 2021, reflecting a significant performance in the molybdenum industry[67]. Cash Flow and Assets - The company reported a net cash flow from operating activities of approximately ¥969.12 million, a 125.85% increase from ¥429.09 million in 2020[17]. - The total assets at the end of 2021 were approximately ¥14.46 billion, a slight increase of 1.12% from ¥14.30 billion at the end of 2020[17]. - The company's total assets include cash and cash equivalents of CNY 1.75 billion, which is 12.10% of total assets, a decrease of 31.10% from the previous year[44]. - The inventory of molybdenum concentrate increased by 59.59% year-on-year, totaling 466 tons[33]. - The cash flow from financing activities increased by CNY 124.84 million year-on-year, mainly due to a reduction in dividend distribution[42]. - The company's cash and cash equivalents decreased to RMB 1,749,444,845.38 from RMB 2,538,998,229.94, representing a decline of approximately 30.9%[141]. - The ending cash and cash equivalents balance for 2021 was CNY 1,322,139,268.07, down from CNY 2,062,684,383.09 at the end of 2020[159]. Research and Development - The company has established a strong R&D platform and collaborates with renowned research institutions, enhancing its technological leadership in the molybdenum industry[25]. - Research and development expenses increased by 9.51% to CNY 193.18 million[29]. - The total R&D expenditure amounted to CNY 193,182,804.60, representing 2.42% of the operating revenue[38]. - The company is investing in research and development to innovate new molybdenum-based products, aiming to capture a larger market share[68]. - New product development initiatives are underway, with an investment of 100 million CNY allocated for R&D in advanced molybdenum materials[72]. Market and Competition - The company operates in an integrated international market for molybdenum products, participating in both domestic and global competition[5]. - The average price of molybdenum oxide in 2021 was $15.7 per pound, an increase of 81% year-on-year[24]. - The average price of domestic molybdenum iron was approximately ¥136,000 per ton, reflecting a year-on-year increase of about 36%[24]. - The company sold 33,027 tons of various molybdenum products, ranking second globally in market share[27]. - The global molybdenum market is expected to maintain a tight balance in supply and demand in 2022, with a positive growth trend anticipated[45]. Risks and Challenges - The company faces risks including geopolitical tensions, market demand fluctuations affecting molybdenum prices, and changes in national environmental regulations[5]. - The company is subject to various financial market risks, including interest rate and exchange rate fluctuations[5]. - The ongoing COVID-19 pandemic poses risks to current operations, with the potential for recurring outbreaks affecting economic development and company performance[58]. - The company faces risks from product market price fluctuations due to geopolitical conflicts, macroeconomic trends, and trade disputes, particularly influenced by the Russia-Ukraine war and US-China tensions, which may lead to significant molybdenum price volatility[58]. - Exchange rate fluctuations significantly impact export revenues, creating uncertainty for the company's overseas business income[58]. Corporate Governance - The company has received a standard unqualified audit opinion from Da Xin Accounting Firm[3]. - The company emphasizes the importance of accurate and complete financial reporting, with key management personnel affirming the integrity of the annual report[3]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[4]. - The company has not encountered any violations in decision-making procedures regarding external guarantees[4]. - The company has established specialized committees under the board, including an audit committee and a strategic committee[80]. Sustainability and Social Responsibility - The company emphasizes the importance of ESG management and aims to balance economic, environmental, and social benefits[57]. - The company invested CNY 58 million in air pollution control measures, achieving A-level performance in air pollution prevention in Henan Province[97]. - The company reported zero incidents of environmental pollution and maintained compliance with all relevant environmental standards[97]. - The company donated 950,000 RMB to local education in support of poverty alleviation and rural revitalization efforts[106]. - The company actively supports employment for impoverished households in the local area, enhancing labor utilization mechanisms[106]. Future Outlook - The company plans to achieve an operating revenue of 7.6 billion CNY in 2022, focusing on high-quality and efficient development[56]. - Future guidance indicates a projected revenue growth of approximately 15% for the next fiscal year, driven by new product launches and technological advancements[67]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[71]. - The company aims to enhance its sustainability practices, targeting a 25% reduction in carbon emissions by 2025[68]. - The management provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion CNY[71].