Kings(SH:603505)2023-04-20 16:00Financial Performance - The company reported a net profit decline for the first time since its listing, primarily due to the production halt at Ziqing Company, which impacted overall performance [12]. - The company achieved a profit of 13.46 million from the mineral processing project in 2022, with the third production line expected to be operational by July or August 2023 [16]. - The company plans to distribute a cash dividend of 1.60 RMB per 10 shares, totaling approximately 69 million RMB, which accounts for 31.02% of the net profit attributable to shareholders for 2022 [37]. - The company reported a total revenue of RMB 1,071,138,978.87 for the year 2022, with a quarterly breakdown showing Q4 revenue at RMB 397,094,000.39, the highest among the quarters [88]. - The net profit attributable to shareholders for the year was RMB 222,433,264.78, with Q4 net profit reaching RMB 69,660,255.07, indicating a strong performance in the last quarter [88]. - Net profit attributable to shareholders decreased by 9.19% to 222.43 million RMB, while the net profit excluding non-recurring gains and losses fell by 12.95% to 212.87 million RMB [137]. Resource Recovery and Expansion - The company is expanding its resource recovery projects, including the lithium extraction from tailings in Jiangxi, marking a strategic shift towards comprehensive resource utilization [17]. - The company has established a joint venture with Jiuling Lithium Industry to develop lithium-bearing tailings in Yichun, with a potential annual recovery of 200,000 tons of lithium carbonate, representing 10%-15% of global supply and 15%-20% of China's supply [46]. - The company aims to increase resource volume by 20%-30% through advanced mining techniques, reducing boundary grades from 20% to 10% and industrial grades from 30% to 15% [47]. - The company has made significant progress in the lithium extraction project, completing construction by the end of 2022 and moving towards industrial-scale production within a year [63]. - The company is actively exploring new technologies for the recovery of rare earth elements associated with fluorite, as well as low-grade fluorite for hydrofluoric acid production [90]. Technological Advancements - The company emphasizes a "resource + technology" strategy, which has garnered positive recognition for its projects, showcasing its competitive edge in the industry [18]. - The company has a unique technology that allows for a recovery rate of over 60% from previously discarded lithium-bearing tailings, significantly improving resource utilization [46]. - The company has achieved a major breakthrough in lithium extraction technology, transitioning from laboratory to industrial application in under a year [64]. - The company is the first in the global fluorite industry to apply the pre-treatment process for tailings, which significantly reduces comprehensive costs and enhances product value [90]. - The company has established a strong R&D team with expertise in mining and mineral processing, collaborating closely with several research institutions to enhance its technological capabilities [90]. Financial Management and Investments - The company has significantly increased its investment in recent years, anticipating a qualitative leap in business structure and profit scale with the completion of new projects [21]. - The company reported a non-operating income of 9,561,435.78 RMB in 2022, a significant increase from 404,404.70 RMB in 2021 [58]. - The government subsidies recognized in the current period amounted to 19,112,465.30 RMB, up from 6,876,815.82 RMB in the previous year [58]. - The company’s financial expenses surged by 54.30% to ¥31.21 million, mainly due to increased bank borrowings and corresponding interest expenses [118]. - The company has a total of 52 R&D personnel, with 33 holding bachelor's degrees and 7 holding master's degrees [177]. Market Presence and Sales - The company has significantly increased its investment in recent years, anticipating a qualitative leap in business structure and profit scale with the completion of new projects [21]. - The company reported a significant increase in overseas sales volume, approximately 42,000 tons, representing a year-on-year increase of about 312% [121]. - The sales price of high-grade fluorite block increased by ¥295 per ton, primarily due to higher prices in the southern market and an increase in export sales [122]. - The production volume of self-produced acid-grade fluorite powder was 272,700 tons, a decrease of 6.99% compared to the previous year, while the sales volume was 273,600 tons, down 9.88% year-on-year [123]. - The company is actively expanding its overseas market presence, particularly in the fluorite product sector [121]. Sustainability and Community Engagement - The company is committed to sustainable development and community engagement, evidenced by a donation of 5 million RMB to support rural revitalization projects [41]. - The company conducted its first carbon audit in 2022, estimating total carbon emissions at approximately 404,800 tons, positioning itself with a lower carbon intensity compared to industry peers [95]. - The company has a strategic focus on ESG initiatives, having published its first social responsibility and ESG report in April 2022, and aims to integrate ESG principles into its corporate culture and strategy [95]. Operational Efficiency - The company has incorporated 16 subsidiaries into its consolidated financial statements, enhancing its operational scale and market presence [33]. - The company has established a unique "Jinshi Model" for green mining development, focusing on resource conservation and recycling [110]. - The company maintained a stable fluorite resource reserve of approximately 27 million tons, with a corresponding mineral quantity of about 13 million tons [133]. - The company has six large-scale mines, with significant resource reserves and mining capacity, positioning it as a leader in the fluorite industry [133]. - The company implemented a new filling mining system, enhancing safety and increasing resource recovery rates [135].