LPXD(SZ:002114)2021-09-08 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,722,517,785.81, a decrease of 7.72% compared to CNY 1,866,674,820.12 in 2019[17] - The net profit attributable to shareholders of the listed company was a loss of CNY 127,336,221.24, representing a decline of 598.08% from a profit of CNY 25,565,427.57 in 2019[17] - The net cash flow from operating activities was CNY 51,373,422.98, down 84.79% from CNY 337,662,898.05 in the previous year[17] - The basic earnings per share for 2020 was -CNY 0.39, a decrease of 587.50% compared to CNY 0.08 in 2019[17] - The company reported a weighted average return on net assets of -8.47% for 2020, down from 1.65% in 2019[18] - The net profit after deducting non-recurring gains and losses was also negative, indicating ongoing financial challenges[18] - Non-recurring gains and losses for 2020 totaled -9,757,837.65 CNY, compared to 15,595,123.35 CNY in 2019, indicating a significant shift in financial performance[24] - The company reported a significant decrease in other income, down 89.12% to 2.1754 million yuan from 19.9933 million yuan, due to reduced government subsidies[47] - The company reported a net profit attributable to shareholders of -127.34 million yuan for 2020, with a cash dividend distribution of 0.00%[118] - In 2019, the company had a net profit of 25.57 million yuan, also with a cash dividend distribution of 0.00%[118] Revenue Breakdown - The revenue from non-ferrous metal smelting was ¥1,598,672,883.69, accounting for 92.81% of total revenue, down 12.92% from the previous year[57] - Zinc ingot revenue decreased by 43.97% to ¥418,404,961.26, while zinc alloy revenue surged by 535.33% to ¥1,099,134,825.85[57] - The revenue from trade was ¥99,982,906.28, representing 5.80% of total revenue, with a 100% increase in this segment[57] - The company experienced a significant increase in revenue from zinc concentrate, which was ¥57,892,293.12, marking a 100% increase from the previous year[57] - The revenue from the Guangdong region increased by 163.92% to ¥84,565,962.32, while the revenue from the Yunnan region decreased by 81.70% to ¥170,691,141.99[58] Production and Operations - The company produced a total of 89,519.517 tons of zinc ingots and zinc alloys, including 24,317.358 tons of zinc ingots and 65,202.159 tons of zinc alloys[47] - The company’s main business includes zinc smelting and processing, lead-zinc ore mining, hydropower generation, and resource utilization, which provides a diversified revenue stream[26] - The company has a zinc ingot production capacity of 120,000 tons per year and a comprehensive utilization plant capable of processing 120,000 tons of leach residue annually[31] - The company reported a gross margin of 3.80% for the non-ferrous metal smelting sector, down from the previous year by 5.73%[60] - The company’s hydropower plant, Lazhuang Power Plant, has an installed capacity of 60,000 kW, contributing to its energy generation capabilities[31] Cost Management - The company's operating costs were 1,654.8633 million yuan, down 1.44% from 1,678.9753 million yuan in the previous year, attributed to lower production and sales volume[47] - The total operating cost for zinc ingots decreased by 42.75% to CNY 400.10 million, with raw material costs dropping by 43.46%[66] - The operating cost for zinc alloy increased significantly by 584.35% to CNY 1.10 billion, primarily due to the inclusion of the subsidiary's production costs[66] - Financial expenses rose by 34.76% to 23.5200 million yuan from 17.4534 million yuan, primarily due to increased bank financing and interest expenses[47] Investment and Financing - Investment cash inflow increased by 9,757.96% to 13,070,085.95 yuan, mainly from cash received from property transactions and the acquisition of a subsidiary[74] - Financing cash inflow rose by 238.79% to 571,540,000.00 yuan, driven by increased bank loans and cash from minority shareholders[74] - The company made a significant equity investment of CNY 16.73 million in Yunnan Shengkai Zinc Industry Co., Ltd., holding a 51% stake[84] - The company has a total external guarantee amount of CNY 6,600 million, with an actual guarantee balance of CNY 3,630 million, representing 2.52% of the company's net assets[167] Environmental and Social Responsibility - The company is committed to environmental protection and aims to meet the standards set by the Ministry of Industry and Information Technology for the zinc industry[95] - The company has implemented various air pollution control technologies, including cyclone dust removal and bag dust collectors, ensuring compliance with emission standards[194] - The company reported a total of 182.017 tons of particulate matter emissions, with a compliance status of no exceedance[189] - The company has invested a total of 99.16 million yuan in poverty alleviation efforts in 2020[184] - The company aims to improve production and living facilities in the village to further enhance poverty alleviation quality[186] Risk Management - The company highlighted risks including macroeconomic fluctuations, product price volatility, and environmental risks in its report[6] - The company faces risks from macroeconomic fluctuations, product price volatility, and raw material supply, and is implementing strategies to mitigate these risks[108][109][110] - The company is enhancing its environmental risk management in response to stricter regulations and is committed to sustainable practices[111] Corporate Governance - The company has maintained compliance with securities laws and regulations, as per commitments made by the controlling shareholder[121] - The company has ensured the independence of its operations and assets as per commitments made during acquisitions[121] - The company has committed to minimizing related party transactions with listed companies, ensuring compliance with market principles and legal regulations[122] - The company has established a clear framework for handling potential disputes related to asset transfers[122] Future Outlook - The company plans to produce 95,000 tons of zinc ingots in 2021, along with 10,000 kg of germanium concentrate and 4,000 kg of silver concentrate[101] - The company aims to enhance its wet metallurgy to achieve industry-leading levels within the next 3-5 years[98] - The company plans to optimize marketing management by analyzing market trends and adjusting strategies to capture opportunities, while ensuring reasonable inventory levels[103] - The company is actively pursuing new economic growth points and extending its product offerings in the zinc downstream sector to improve economic quality and core competitiveness[107]