LPXD(SZ:002114)2019-04-07 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,073,923,466.10, a decrease of 33.66% compared to CNY 1,618,758,049.50 in 2017[18]. - The net profit attributable to shareholders for 2018 was a loss of CNY 257,773,420.38, representing a decline of 566.22% from a profit of CNY 55,289,658.19 in 2017[18]. - Basic earnings per share for 2018 were -CNY 0.80, down 570.59% from CNY 0.17 in 2017[19]. - The total revenue for the year was approximately 1.03 billion yuan, with a significant decrease of 42.18% compared to the previous year[62]. - The company achieved operating revenue of CNY 1,073.92 million, a decrease of 33.66% compared to CNY 1,618.76 million in the same period last year[51]. - The operating cost for the period was CNY 1,029.65 million, down 25.87% from CNY 1,388.98 million year-on-year, primarily due to reduced zinc ingot production and sales[51]. - The company reported a significant increase in lead concentrate revenue, which rose by 119.02% to CNY 51,829,400.25, with a gross margin of 54.34%[55]. - The company reported a substantial inventory impairment provision of approximately ¥32 million due to the continuous decline in zinc prices[40]. Cash Flow and Assets - The net cash flow from operating activities improved significantly to CNY 226,538,320.08, a 2,095.91% increase from a negative cash flow of CNY 11,350,131.97 in 2017[18]. - The company's total cash inflow from operating activities decreased by 33.88% to approximately 1.31 billion yuan, primarily due to a reduction in zinc ingot sales volume[69]. - The company's cash and cash equivalents decreased by 12.01 million yuan, a 66.00% improvement compared to the previous year[72]. - Total assets at the end of 2018 were CNY 2,194,100,379.94, a decrease of 6.85% from CNY 2,355,346,377.04 at the end of 2017[19]. - The net assets attributable to shareholders decreased by 14.53% to CNY 1,540,020,532.70 from CNY 1,801,811,296.74 in 2017[19]. Operational Challenges - The company reported a significant decline in net profit due to various operational challenges faced during the year[18]. - The company faced increased losses in 2018 due to environmental compliance costs and a decline in zinc prices, leading to substantial inventory write-downs[31]. - The company incurred a loss of over 31 million yuan from inventory write-downs and fixed asset disposals in 2018[97]. - The company faced a significant increase in operating expenses due to environmental compliance measures, including over CNY 50 million in waste disposal fees[51]. Environmental Compliance and Management - The company has implemented measures to improve safety and compliance, including staff training and asset upgrades, to strengthen its operational foundation[31]. - The company is committed to enhancing environmental management and compliance with stricter pollution control standards[105]. - The company has committed to regular public announcements regarding the progress of environmental remediation efforts[155]. - The company has taken steps to ensure compliance with environmental regulations and improve operational practices[155]. - The company plans to continue investing in environmental protection measures and pollution control technologies[156]. Strategic Initiatives - The company has actively pursued a strategy of acquiring and integrating mining assets to increase self-sufficiency in raw materials, with significant reserves acquired in recent years[29]. - The company plans to produce 93,000 tons of zinc ingots in 2019, aiming to maximize profits from the smelting segment based on the results of environmental remediation[48]. - The company aims to strengthen its integrated operations in mining, electricity, and metallurgy, while seeking acquisition opportunities in the industry[97]. - The company plans to produce 32,000 tons of lead-zinc concentrate, 93,000 tons of zinc ingots, and 24 million kWh of electricity in 2019[99]. Governance and Compliance - The company has established a strict governance structure in compliance with the Company Law and Securities Law, ensuring transparency and accuracy in information disclosure[194]. - The company has committed to ensuring that any related party transactions are conducted at fair market prices[129]. - The company has undertaken to fulfill obligations related to profit compensation agreements with its shareholders[127]. - The company is under investigation by the China Securities Regulatory Commission for alleged violations of information disclosure laws[157]. Risks and Future Outlook - The company has identified various risks including policy risk, product price fluctuation risk, and environmental risk[4]. - The company expects zinc consumption growth to maintain at 1.8% in 2019, supported by government infrastructure investments[47]. - Zinc prices are expected to fluctuate between $2,200 and $2,800 per ton in 2019, with domestic prices ranging from 18,000 to 22,000 yuan per ton[96]. - The company will adjust zinc production based on seasonal water and electricity supply variations to manage costs effectively[104].