NFC(SZ:000758)2020-04-20 16:00Financial Performance - China Nonferrous Metal Construction Co., Ltd. reported a significant loss in 2019, with no detailed analysis provided in the annual report regarding the reasons for the loss[4]. - The company's operating revenue for 2019 was ¥11,077,988,721.23, a decrease of 25.16% compared to ¥14,802,064,398.94 in 2018[20]. - The net profit attributable to shareholders for 2019 was -¥1,059,949,942.82, representing a decline of 985.32% from ¥119,725,590.77 in 2018[20]. - The net cash flow from operating activities was ¥763,712,405.29, down 72.16% from ¥2,742,843,022.50 in the previous year[20]. - The total assets at the end of 2019 were ¥25,473,356,455.04, an increase of 0.79% from ¥25,273,727,481.22 at the end of 2018[20]. - The net assets attributable to shareholders decreased by 7.14% to ¥4,856,580,520.23 from ¥5,229,899,136.34 in 2018[20]. - The company reported a basic earnings per share of -0.5382 for 2019, a significant drop from 0.0608 in 2018[20]. - The weighted average return on equity was -19.72% in 2019, down from 2.31% in 2018[20]. - The company recorded a non-operating income of ¥7,360,475.89 for 2019, compared to ¥57,811,435.02 in 2018[25]. Dividend Policy - The company plans to not distribute cash dividends, issue bonus shares, or increase capital from reserves for the year[5]. - The company did not distribute cash dividends for the fiscal year 2019, nor did it issue bonus shares or increase capital through reserves[151]. - In 2018, the cash dividend amounted to ¥29,540,676.36, representing 24.67% of the net profit attributable to ordinary shareholders[150]. - In 2017, the cash dividend was also ¥29,540,676.36, which accounted for 14.70% of the net profit attributable to ordinary shareholders[150]. Internal Control and Governance - The board of directors has raised concerns about internal control deficiencies and has suggested hiring an external professional agency for targeted internal control audits[4]. - The company has acknowledged the need for a comprehensive analysis of the significant losses experienced in 2019[4]. - The company’s management has confirmed the accuracy and completeness of the financial report[5]. - The company has committed to not transferring funds, profits, or resources through related transactions that could harm the interests of the listed company or its shareholders[158]. - The company has promised to adhere to fair market pricing principles in transactions with related parties and to reduce related transactions over the next five years[158]. Business Operations and Strategy - The company faces multiple risks including international engineering contracting, resource development industry downturns, and ongoing losses in equipment manufacturing[5]. - The company’s future plans include addressing the risks associated with its business operations[5]. - The company has expanded its business scope to include the leasing of self-owned properties and the import and export of various goods and technologies[18]. - The company operates in international engineering contracting and non-ferrous metal mining and smelting, evolving into a comprehensive international non-ferrous metal enterprise over 30 years[33]. - The company plans to enhance its project financing and integrated service capabilities to adapt to the evolving demands of international engineering projects[41]. Market and Economic Conditions - The company faced challenges in 2019 due to global economic adjustments and trade tensions, impacting its international engineering project opportunities[40]. - The macroeconomic environment in 2019 showed a downward trend in the non-ferrous metal industry, with a weak supply-demand balance expected to continue into 2020[129]. - The COVID-19 pandemic has negatively impacted the Chinese economy and global trade, affecting the profitability of the non-ferrous metal industry and international engineering projects[130]. - Zinc metal supply is expected to remain loose due to the resumption of overseas zinc mines and new projects, while demand is projected to decline due to slowing sales in real estate, home appliances, and automotive sectors[132]. Resource Development - The company has a total metal resource of 3.7161 million tons of zinc and 1.6307 million tons of lead as of December 31, 2019[38]. - The company is actively expanding its controllable resources, particularly through the Darui zinc-lead mine project, which is expected to significantly increase zinc-lead output and enhance self-sufficiency[38]. - The company aims to maintain its resource development advantage by exploring new mining areas and increasing resource reserves, particularly in Africa, Central Asia, and South America[135]. Risk Management - The company faces risks related to fixed-price contracts in international projects, which require effective cost control to avoid potential losses[50]. - The company is committed to improving safety management systems and implementing a dual prevention mechanism to mitigate risks associated with mining operations[140]. - Environmental protection policies are becoming stricter, and the company will promote green mining initiatives and improve pollution treatment facilities to meet increasing regulatory standards[140]. Related Party Transactions - The company reported significant related party transactions, including service agreements with Xin Cheng Construction Supervision Co., Ltd. totaling RMB 12.27 million, which accounted for 0.11% of similar transaction amounts[196]. - The total expected amount of related party transactions for 2019 is 57.10 million yuan, with an actual amount of 48.79 million yuan, achieving a completion rate of 85.45%[199]. - The actual amount of related party transactions in 2019 was 48.79 million yuan, which is less than the approved limit[199]. Legal and Compliance Issues - As of December 31, 2019, the company faced 132 ongoing lawsuits and arbitration cases, with a total amount involved of approximately RMB 301.63 million, excluding a specific case with Minsheng Bank involving RMB 64.97 million[190]. - The company was fined RMB 100,000 by the Inner Mongolia Ba Lin Left Banner Environmental Protection Bureau for violating air pollution regulations[191].