HUNAN SILVER(SZ:002716)2019-08-30 16:00Financial Performance - The company's operating revenue for the reporting period was ¥4,247,648,835.05, a decrease of 22.55% compared to ¥5,484,405,934.57 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of ¥37,956,026.61, representing a decline of 128.89% from a profit of ¥131,397,206.30 in the previous year[17]. - The basic earnings per share were -¥0.04, a decrease of 117.39% compared to ¥0.23 in the same period last year[17]. - The company reported a sales revenue of RMB 424,764.88 million, a decrease of 22.55% year-on-year, with silver products accounting for 55.62% of total revenue[38]. - The net profit attributable to shareholders was -RMB 3,795.6 million, representing a decline of 128.89% compared to the previous year[38]. - The company produced 756.69 tons of silver, an increase of 19.65% year-on-year, while lead production decreased by 30.19% to 29,531.58 tons[38]. - The estimated net profit for the period from January to September 2019 is projected to be between -146.70 million and -41.97 million RMB, compared to a net profit of 209.58 million RMB in the same period of 2018, indicating a significant decline[73]. - The net profit for the third quarter of 2019 is expected to decrease by 170% to 120% compared to the same period last year[73]. Cash Flow and Assets - The net cash flow from operating activities was ¥280,639,694.99, an increase of 4.77% compared to ¥267,874,549.95 in the same period last year[17]. - The total assets at the end of the reporting period were ¥11,651,331,316.60, a decrease of 0.58% from ¥11,719,662,468.15 at the end of the previous year[17]. - The company's total assets decreased, with cash and cash equivalents dropping to ¥1,210,340,316.76, down 11.20% from ¥2,141,257,333.67 year-on-year[52]. - The net increase in cash and cash equivalents was negative at -¥132,469,623.70, a decline of 601.81% compared to an increase of ¥26,398,115.90 in the previous year[44]. - The company's total liabilities reached CNY 7,772,726,866.06, compared to CNY 7,728,186,084.50 in the same period last year, showing a marginal increase[175]. - The total liabilities at the end of the period were reported at 1,122,000 yuan, indicating a stable financial position[195]. Investments and Projects - The company has applied for a total of 197 national patents, including 162 invention patents, and has been awarded 115 patents, with 90 being invention patents[27]. - The "5万吨铅冰铜渣资源综合利用项目" utilizes a globally pioneering "oxygen pressure acid leaching - swirling electrolysis" technology, enhancing resource utilization and economic benefits[28]. - The "30,000t/a secondary antimony resource comprehensive utilization project" is set to enhance the company's recycling capabilities and profitability, with production expected to start in 2020[31]. - The company is expanding its silver production capacity with the "2000t/a high-purity silver clean extraction expansion project," expected to reach full production in 2019, positioning the company among the global leaders[31][40]. - The company has ongoing projects that are under construction, including the 50,000 t/a lead-copper slag resource comprehensive utilization project[65]. Risk Management - The company faces risks including industry cycle fluctuations, inventory impairment, and environmental risks[5]. - The decline in performance is attributed to low market prices for non-ferrous metals such as lead, copper, antimony, and bismuth, along with decreased gross profit margins for lead and comprehensive recycling products[73]. - The company faces risks from industry cycle fluctuations and product price declines, which significantly impact operating performance due to sensitivity to non-ferrous metal prices[74]. - The company is addressing environmental risks by increasing investment in environmental protection and developing cleaner production technologies, such as the arsenic-free silver smelting process[77]. - The company has implemented measures to mitigate risks from industry cycles and price fluctuations through point pricing and hedging strategies[77]. Corporate Governance and Compliance - The company has implemented measures to strengthen internal control and governance, including training for management and staff on relevant laws and regulations[96]. - The company has committed to maintaining accurate and complete information disclosure to protect shareholder interests[96]. - The company has not engaged in any major related party transactions during the reporting period[98]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[140]. Shareholder Information - The total number of shares is 960,478,100, with 35.19% being limited shares and 64.81% being unrestricted shares[132]. - The largest shareholder, Cao Yonggui, holds 32.74% of the shares, amounting to 314,470,479 shares, with 6,654,956 shares pledged[136]. - The company has a total of 354,671,000 shares held by directors and senior management at the end of the reporting period[145]. - The company’s controlling shareholder, Cao Yonggui, signed a share transfer agreement to transfer 54.94 million shares, representing 5.7201% of the total share capital, to Caixin Changqin[125]. Environmental Compliance - The company is classified as a key pollutant discharge unit by environmental protection authorities[113]. - The total emissions of sulfur dioxide are 49.4 tons, which is within the approved discharge limit of 340 tons[113]. - The company has implemented measures to control dust emissions during mining operations, including wet drilling and dust suppression during transportation[115]. - The company has established a comprehensive emergency response plan for environmental incidents, with recent drills conducted in June 2019[116].