Humon Share(SZ:002237)2022-06-27 16:00Corporate Structure and Governance - The company has not changed its main business since its listing [21]. - The controlling shareholder changed from Yantai Humon Group Co., Ltd. to Jiangxi Copper Corporation in 2019 [21]. - The company is headquartered in Yantai, Shandong Province, with a registered address in Shidao Town, Muping District [17]. - The company’s legal representative is Qu Shengli [17]. - The company’s website is http://www.hbyl.cn [17]. - The company has engaged He Xin Certified Public Accountants for auditing services [22]. - The company has established a complete and independent internal management system, ensuring no interference from the controlling shareholder in its operations [196]. - The company maintains an independent financial department with its own accounting system and bank accounts, ensuring financial autonomy [197]. - The company has a dedicated internal audit department that conducts regular audits to prevent risks and ensure asset integrity [195]. - The company has developed an independent raw material procurement, production, and sales system, demonstrating its capability to operate independently in the market [196]. - The company has implemented a transparent information disclosure system, enhancing the timeliness and accuracy of its financial reporting [195]. - The company has established four specialized committees under the board, including an audit committee, to promote sound governance practices [192]. - The company has a clear separation of assets from the controlling shareholder, ensuring no unauthorized use of company assets [197]. - The company has actively engaged with stakeholders to balance interests and promote sustainable development [195]. - The board of directors consists of 9 members, including 3 independent directors with expertise in industry, finance, and law, complying with regulatory requirements [192]. - The company held 3 shareholder meetings during the reporting period, ensuring equal rights for all shareholders, especially minority investors, with separate voting counts for significant matters [191]. Financial Performance - The company's operating revenue for 2021 was ¥41,382,878,466.59, representing a year-over-year increase of 14.78% from ¥36,053,110,407.67 in 2020 [23]. - The net profit attributable to shareholders for 2021 was ¥454,817,448.22, up 24.16% from ¥366,302,529.81 in 2020 [23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥596,173,798.03, an increase of 28.77% compared to ¥462,974,937.46 in 2020 [23]. - The net cash flow from operating activities reached ¥473,588,014.86, a significant increase of 144.74% from ¥193,506,524.10 in 2020 [23]. - The basic earnings per share for 2021 was ¥0.40, reflecting a growth of 5.26% from ¥0.38 in 2020 [23]. - The diluted earnings per share also stood at ¥0.40, consistent with the basic earnings per share growth of 5.26% from ¥0.38 in 2020 [23]. - The total assets at the end of 2021 were ¥19,411,932,567.00, an increase of 8.52% from ¥17,888,036,639.43 at the end of 2020 [26]. - The net assets attributable to shareholders at the end of 2021 were ¥7,811,709,218.21, up 4.28% from ¥7,490,782,754.48 at the end of 2020 [26]. - The company reported a weighted average return on equity of 7.81% for 2021, down from 10.97% in 2020 [26]. - The company reported a significant decrease in sulfuric acid sales revenue, down 104.41% year-over-year, indicating a major shift in production strategy [77]. - The company reported a net loss from investment income of ¥145,006,594.63, accounting for -29.42% of total profit [112]. - The cash and cash equivalents net increase was ¥807,210,552.82, a decrease of -23.98% compared to the previous year [111]. - The company reported a total of CNY 248,905.88 million in promised investment projects, with all funds fully utilized [144]. Production and Operations - The company primarily produces gold, silver, electrolytic copper, lead, zinc ingots, and sulfuric acid, with gold and silver being the main products [44]. - The company has established a procurement model that combines direct mining purchases and trade, enhancing control over raw material channels and reducing costs [45]. - The sales model for precious metals includes selling gold through the Shanghai Gold Exchange and silver through long-term contracts [46]. - The company has developed a strong competitive edge through advanced technology in processing complex gold concentrates, achieving high recovery rates [49]. - The company has successfully implemented projects for comprehensive recovery of complex gold concentrates, enhancing its processing capabilities [49]. - The company has a production capacity of 50 tons of gold, 1,000 tons of silver, 250,000 tons of electrolytic copper, and 1.3 million tons of sulfuric acid annually [54]. - The company has completed the registration of gold resource reserves amounting to 150.38 tons, enhancing its self-sufficiency in raw materials [55]. - The company has achieved international advanced levels in production technology, winning four provincial and ministerial-level science and technology progress awards and one national second-class award [41]. - The company has developed 13 invention patents and 18 utility model patents, enhancing its technological capabilities in metallurgy [50]. - The company aims to enhance its gold smelting core business and leverage multi-metal recovery advantages, focusing on improving ore processing capabilities and achieving comprehensive recovery of valuable elements [166]. Market and Revenue - Gold revenue was ¥14.70 billion, accounting for 35.53% of total revenue, with a decrease of 15.13% from the previous year [71]. - Silver revenue increased by 30.03% to ¥4.06 billion, representing 9.80% of total revenue [71]. - Electrolytic copper revenue surged by 89.58% to ¥12.01 billion, making up 29.02% of total revenue [71]. - The company successfully issued short-term financing bonds and mid-term notes, raising a total of ¥1.1 billion at an average interest rate of 3.65% [64]. - Domestic revenue accounted for 84.41% of total revenue, while international revenue increased by 61.37% to ¥6.45 billion, representing 15.59% of total revenue [69]. - The chemical production segment saw a significant revenue increase of 111.88% to ¥782.67 million, contributing 1.89% to total revenue [67]. - The total sales revenue from non-ferrous metal trading was approximately ¥6.41 billion, with a slight increase of 0.71% year-over-year [74]. - The company's self-sales revenue reached approximately ¥41.27 billion, an increase of 4.89% year-over-year [74]. - Gold sales revenue was approximately ¥17.32 billion, with a year-over-year increase of 58.16% [74]. Costs and Expenses - The cost of raw materials for precious metal smelting was CNY 17,260,273,301.14, accounting for 43.92% of operating costs, a decrease of 5.24% year-on-year [87]. - The cost of raw materials for non-ferrous metal mining and smelting increased by 71.35% year-on-year, amounting to CNY 12,235,909,458.41, which accounted for 31.13% of operating costs [87]. - The cost of raw materials for gold was CNY 13,654,951,319.90, representing 34.74% of operating costs, down 13.33% year-on-year [89]. - The cost of raw materials for electrolytic copper increased by 85.90% year-on-year, totaling CNY 11,118,190,791.19, which accounted for 28.29% of operating costs [89]. - The company reported a 46.69% increase in the cost of raw materials for silver, amounting to CNY 3,604,387,186.71, which represented 9.17% of operating costs [89]. - Direct labor costs for zinc, antimony, bismuth, and selenium metals increased by 49.63% to ¥19,688,283.24 [94]. - Research and development expenses increased by 30.62% to ¥135,344,216.27, reflecting higher investment in R&D [100]. Strategic Initiatives and Future Plans - The company aims to increase its self-supply capacity of gold concentrates by investing more in exploration and mining, while establishing long-term supply relationships with vendors [174]. - The company will enhance its gold mining and smelting capabilities while pursuing mergers and acquisitions to strengthen profitability, with a focus on managing geological, legal, and political risks associated with foreign acquisitions [177]. - Future strategic goals include vertical integration, related diversification, and targeting high-purity materials manufacturing, with an emphasis on producing high-purity arsenic, antimony, bismuth, tellurium, and their compounds [167]. - The company plans to strengthen its mining foundation by utilizing current exploration results and focusing on key mining projects to increase self-produced gold output [167]. - The company is committed to improving its governance structure and compliance management to ensure transparent operations and protect shareholder interests [183]. - The company will enhance its environmental management and invest in clean production to comply with national environmental policies and standards [173]. - The company will implement risk control measures across trading, futures, and investment to prevent systemic risks, particularly focusing on safety and environmental risks [180]. - The company is actively preparing for the construction of a multi-element comprehensive recovery project, which has received necessary approvals [64]. - The company is exploring new strategies for market expansion and product development in response to changing market dynamics [83]. Industry Context and Challenges - In 2020, China's gold consumption was 820.98 tons, a year-on-year decrease of 18.13%, with jewelry processing accounting for 490.58 tons, down 27.45% [40]. - The company acknowledges exploration and mining risks due to regulatory constraints and the unpredictability of resource discovery, and plans to enhance talent and resource exploration planning to mitigate these risks [168]. - Policy risks related to mining rights and environmental regulations are recognized, with measures to ensure compliance and timely renewal of mining licenses [171]. - The risk analysis for derivative investments indicates low risk, with market risk being controllable [139]. - The company has established a comprehensive supervision mechanism for its hedging business, ensuring compliance with relevant laws and regulations [139]. - The company has not experienced any significant changes in accounting policies or principles regarding derivative investments compared to the previous reporting period [139]. - Jiangxi Copper Company acquired Hengbang Shares, both operating in the non-ferrous metal smelting and processing industry [200]. - Jiangxi Copper committed to comply with regulations and ensure equal shareholder rights during the control of Hengbang Shares [200].