JINHUIINC.(SH:603132)2024-03-22 16:00Production and Revenue - The company produced 63,900.97 tons of zinc concentrate, an increase of 18.11% year-on-year, and 21,341.72 tons of lead concentrate (including silver), up 22.08% year-on-year[5]. - The total operating revenue for the period was 1,282.89 million RMB, with a net profit of 342.89 million RMB[5]. - The company reported a stable annual revenue, with a total operating income of approximately 1.28 billion RMB from direct sales, reflecting a 3.55% increase year-on-year[39]. - The lead concentrate (including silver) production was 21,341.72 tons, with a sales volume of 21,159.74 tons, showing a production increase of 22.08% year-on-year[39]. Strategic Investments and Acquisitions - The company signed a strategic cooperation framework agreement with the Huixian government in August 2023, planning to invest approximately 5 billion RMB to build a green mine with an annual processing capacity of 3 million tons of lead-zinc ore[5]. - The company completed the acquisition of multiple mining companies and processing plants, enhancing its resource base and production capacity[5]. - The company completed the acquisition of Yangshan Mining, which has a certified mining capacity of 100,000 tons per year[73]. - The company has made significant acquisitions, including a 100% stake in Minghao Mining Company for approximately 59.95 million RMB and a 100% stake in Xiejiaogou Mining for 29 million RMB[88]. Environmental and Social Governance (ESG) - The company invested 18.51 million RMB in environmental protection during the reporting period[19]. - The company is committed to ESG governance, establishing a top-down decision-making management mechanism to promote ESG principles[6]. - The company aims to enhance green mining practices and contribute to local resource exploration and employment in Gansu, particularly in Longnan[110]. - The company is committed to building a world-class eco-friendly, safe, and intelligent green mine, with a focus on technological innovation and talent development[83]. Financial Performance and Management - Non-recurring losses totaled -63.92 million RMB for the year, compared to a gain of 6.83 million RMB in the previous year[2]. - The gross profit margin for lead concentrate decreased by 6.73 percentage points to 62.99%[39]. - The operating cost increased due to changes in mining rights transfer revenue policies and increased material usage, leading to a rise in costs associated with the release of production capacity from acquired subsidiaries[35]. - The company reported a significant increase in short-term borrowings, which reached RMB 890,961,902.79, a 71.12% increase from the previous period[66]. Research and Development - R&D expenses totaled RMB 42,235,714.63, representing 3.29% of operating revenue[61]. - The proportion of R&D personnel in the total workforce is 8.48%[62]. - The company is actively engaged in the research and development of new products and technologies to enhance its competitive edge in the market[171]. Internal Control and Governance - The company aims to enhance its operational standards by revising internal control systems in line with the latest regulatory policies[6]. - The company has established a comprehensive internal control system to enhance operational efficiency and governance, ensuring effective execution without significant internal control deficiencies[116]. - The company is committed to improving corporate governance and transparency, enhancing investor relations and communication strategies[119]. - The company has established an investor relations management system to protect investors' rights and ensure timely information disclosure[135]. Employee Management and Development - The total number of employees in the parent company is 1,060, with a combined total of 1,297 employees across the parent and major subsidiaries[190]. - The company has 940 production personnel, 100 technical personnel, and 236 administrative personnel, indicating a strong operational workforce[190]. - The company is enhancing pre-job training for new employees, focusing on management system training and professional skills to ensure quick integration into their roles[197]. - The company has a performance-based salary system for its employees, which is linked to their work performance[194]. Risk Management - The company is exposed to risks from natural disasters such as heavy rain and earthquakes, which could adversely affect production facilities and personnel safety[125]. - The company faces risks related to discrepancies between mining plans and actual results, which could negatively impact operational performance[122]. - The company emphasizes risk management and internal control to promote sustainable development[153]. Future Outlook - The company aims to complete a mining and selection volume of 1.75 million tons in 2024, targeting a revenue of approximately 1.4 billion RMB and a net profit of around 400 million RMB[96]. - The company anticipates a gradual recovery in the global economy in 2024, which may positively impact lead-zinc prices due to expected interest rate cuts by the Federal Reserve[79]. - In 2024, the company plans to conduct geological exploration in the Jiangkou, Dongpo, and Jiangluo mining areas, targeting a breakthrough in resource identification[111].