NFC(SZ:000758)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was ¥6,785,792,161.28, a decrease of 38.75% compared to the previous year[21]. - The net profit attributable to shareholders was ¥21,548,930.58, representing a 102.03% increase from a net loss of ¥1,059,949,942.82 in 2019[21]. - The net cash flow from operating activities was ¥763,712,405.29, a significant improvement from a negative cash flow of ¥1,067,310,418.71 in the previous year[21]. - Basic and diluted earnings per share were both ¥0.0109, recovering from a loss of ¥0.5382 per share in 2019[21]. - The total assets at the end of 2020 were ¥22,096,234,431.71, down 12.66% from ¥25,473,356,455.04 in 2019[21]. - The net assets attributable to shareholders decreased by 4.81% to ¥4,572,236,124.61 from ¥4,856,580,520.23 in 2019[21]. - The company achieved operating revenue of 678,579.22 million yuan in 2020, a decrease of 38.75% compared to the previous year, while net profit attributable to the parent company was 2,154.89 million yuan, an increase of 102.03% year-on-year[70]. - The revenue from the non-ferrous metals segment was ¥3,958,827,576.19, accounting for 58.34% of total revenue, down 16.52% from ¥4,742,179,507.10 in 2019[78]. - The gross profit margin for the contracting engineering segment was 25.54%, with a year-on-year decrease of 18.70%[78]. Risk Factors - The company faces potential risks including systemic risks from the COVID-19 pandemic, multiple risks in international engineering contracting, cyclical risks in resource development, restructuring risks in equipment manufacturing, safety production risks, and environmental policy risks[5]. - The company emphasizes the importance of risk awareness for investors regarding its future plans and projections[4]. - The company anticipates challenges from the global economic environment, including instability and uncertainty due to the COVID-19 pandemic and geopolitical tensions[128]. - The global economic downturn and geopolitical tensions are creating significant risks for the international engineering contracting business, with increased sovereign debt default risks in developing countries[136]. - Environmental protection policies are tightening, with increased scrutiny on emissions from lead-zinc mining and smelting processes, posing operational pressures[139]. Corporate Governance - The company has committed to ensuring the accuracy and completeness of its financial reports, with key personnel affirming the integrity of the annual report[4]. - The company has not experienced any changes in its controlling shareholders since its listing[20]. - The company has a dedicated investor relations team to facilitate communication with stakeholders[16]. - The company has committed to not reducing its shareholding by 5% or more within six months after the lifting of restrictions on shares, ensuring transparency in any future sales[150]. - The company has maintained compliance with all commitments made by its controlling shareholders and related parties[150]. Business Operations - The company has expanded its main business scope to include leasing of self-owned properties and various import and export activities since its establishment[20]. - The company is actively expanding its lead and zinc mining resources, with ongoing construction and investment in the Darui lead-zinc mine project, which is expected to significantly increase production capacity[44]. - The company has developed a comprehensive project development model that includes project financing, EPC contracting, product sales, and operational services[51]. - The company has implemented various management measures for procurement, bidding, and supplier management to ensure quality and cost control in its international engineering projects[52]. - The company is committed to optimizing resource allocation and expanding high-quality supply in the non-ferrous metal industry[129]. Investment and Financing - The company plans not to distribute cash dividends, issue bonus shares, or increase capital using reserves[5]. - The company reported an investment loss of -595,156,327.14 CNY, which accounted for 209.80% of the total profit, primarily due to changes in the consolidation scope of subsidiaries[105]. - The total investment amount for the reporting period was ¥149,991,138.14, a decrease of 78.02% compared to ¥682,425,120.75 in the same period last year[111]. - The company invested ¥149,991,138.14 in the Indonesia Darai Lead-Zinc Mine project, with a cumulative actual investment of ¥367,162,405.45 as of the end of the reporting period[111]. - The company engaged in derivative investments, with an initial investment amount of ¥566.21 million in zinc futures, resulting in a reported loss of -¥1,277.45 million for the period[116]. Research and Development - The company filed 46 patents during the reporting period, including 9 invention patents, and two subsidiaries were recognized as "National High-tech Enterprises"[64]. - The company’s research and development expenses increased by 7.13% to ¥6,831,822.40 in 2020 from ¥6,377,352.89 in 2019[96]. - The number of R&D personnel decreased by 26.49% from 185 in 2019 to 136 in 2020, with the proportion of R&D personnel to total employees dropping from 2.92% to 2.22%[100]. Legal and Compliance - As of December 31, 2020, the company had 16 ongoing litigation and arbitration cases with a total amount involved of approximately 107.49 million yuan[165]. - The company has not disclosed any major litigation or arbitration matters during the reporting period[165]. - The company has no non-operating fund occupation by controlling shareholders or related parties during the reporting period[153]. - The company has not made any significant accounting errors that require retrospective restatement during the reporting period[156]. Market and Industry Trends - The average zinc price fluctuated significantly in 2020, initially dropping due to the pandemic but rebounding as domestic conditions improved and international supply tightened[41]. - The zinc metal resource development is currently in a down cycle, with potential downward pressure on zinc prices in 2021 due to demand constraints from infrastructure and automotive sectors[136]. - The company is actively pursuing talent management strategies to retain high-quality engineers and enhance its international project capabilities[65].