Group 1 - The controlling shareholder of Luoping Zinc & Electricity is planning to transfer control of the company to a municipal state-owned asset management entity, which would elevate the control from county-level to city-level [1] - The transfer involves the agreement to transfer 72.4276 million shares, accounting for 22.3960% of the total share capital, to Qujing Development Investment Group [1] - The stock of Luoping Zinc & Electricity will be suspended from trading starting May 28, with an expected suspension period of no more than two trading days [1] Group 2 - Luoping Zinc & Electricity has faced operational challenges in recent years due to environmental pollution and litigation issues, resulting in a lack of performance highlights [2] - In Q1 2025, the company reported a revenue of 185 million yuan, a year-on-year decrease of 53.55%, and a loss of 45.0088 million yuan compared to a loss of 29.526 million yuan in the same period last year [2] - The company aims to produce 80,000 tons of zinc ingots and achieve a revenue of 1.918 billion yuan in 2025 [2] Group 3 - In the 2024 annual performance meeting, the company indicated a significant improvement in profitability, with a gross margin turning positive, reflecting effective cost control and production efficiency [2] - The net cash flow from operating activities for 2024 was 103 million yuan, indicating sustained net inflow from operations [2] - The zinc industry is characterized by "tight supply, weak recovery, and high volatility," with long-term trends pointing towards green transformation and new technology applications reshaping the industry landscape [2]

Company Overview - Guocheng Mining Co., Ltd. has been downgraded to a long-term credit rating of A+ by Lianhe Credit Rating Co., Ltd. with a stable outlook for both the company and its convertible bonds [1][3] - The company primarily engages in non-ferrous metal mining and selection, with a focus on zinc, lead, and sulfur iron resources [10][12] Financial Performance - As of the end of 2024, the company reported total assets of 9.272 billion yuan and total equity of 3.431 billion yuan, with an operating revenue of 1.918 billion yuan and a net profit of -55 million yuan [10][12] - The company experienced a decline in profitability, with total capital return rate and net asset return rate at 0.12% and -3.40% respectively in 2024 [5][9] - The company’s cash flow from operating activities decreased, resulting in a net cash outflow of 338 million yuan in the first quarter of 2025 [9] Operational Developments - The company’s subsidiary, Inner Mongolia Dongshengmiao Mining Co., Ltd., maintains good resource endowment and is gradually expanding production, with a sulfur-titanium iron resource recycling project having completed trial production [3][6] - The company plans to acquire at least 60% of the equity of Inner Mongolia Guocheng Industrial Co., Ltd., which is a large molybdenum metal mine, enhancing its resource base [6][12] Management and Governance - The company has a relatively stable corporate governance structure, but frequent changes in board members and senior management have been noted [5][12] - The company has faced administrative penalties due to safety production incidents, indicating areas for improvement in management capabilities [7][16] Industry Context - The non-ferrous metal industry is characterized by significant cyclicality and is influenced by international supply-demand dynamics and geopolitical factors [11] - The industry has seen a rise in demand for traditional industrial metals like copper and aluminum, while new energy metals face price pressures due to supply-demand imbalances [11]

祁玉蓉（F03100031, Z0021060），联系电话：010-8229 5006 | 铅锌日评20250513：原料不足引发炼厂减产，铅价下方支撑较强；沪锌区间整理 | | | | | --- | --- | --- | --- | | 2025/5/13 指标 单位 今值 变动 近期趋势 | | | | | 元/吨 16,750.00 0.75% SMM1#铅锭平均价格 | | | | | 沪铅期现价格 期货主力合约收盘价 元/吨 16,995.00 1.13% | | | | | 元/吨 -245.00 -65.00 沪铅基差 | | | | | 升贴水-上海 元/吨 -15.00 -15.00 | | | | | 升贴水-LME 0-3 美元/吨 4.69 14.01 升贴水-LME 3-15 美元/吨 -58.90 4.40 | | | | | 价差 沪铅近月-沪铅连一 元/吨 -40.00 -60.00 | | | | | 元/吨 沪铅连一-沪铅连二 -5.00 -15.00 | | | | | 铅 沪铅连二-沪铅连三 元/吨 - -10.00 | | | | | 手 42,622.00 47 ...

Core Viewpoint - Guocheng Mining (000688.SZ) reported a significant increase in revenue for 2024, reaching 1.918 billion yuan, a year-on-year growth of 60.37%. However, the company faced a substantial decline in net profit, dropping 279.51% to a loss of 113 million yuan, marking a return to losses since 2010. The poor performance is attributed to unprofitable sales of newly produced titanium dioxide and declining performance of its equity subsidiaries [1][2]. Financial Performance - The total revenue for 2024 was 1.918 billion yuan, up from 1.196 billion yuan in 2023 [3]. - The gross profit for 2024 was 535.5 million yuan, compared to 435.5 million yuan in 2023 [3]. - The net profit attributable to shareholders was -112.6 million yuan, down from 62.7 million yuan in 2023 [3]. - The net profit excluding non-recurring items was -9.018 million yuan, compared to 6.505 million yuan in 2023 [3]. - The year-on-year revenue growth rate was 60.37%, while the net profit growth rate was -279.51% [3]. Business Operations - Guocheng Mining primarily engages in non-ferrous metal mining and resource recycling, with key products including zinc concentrate, lead concentrate, silver concentrate, copper concentrate, titanium dioxide, and sulfuric acid [2]. - The revenue increase in 2024 was mainly driven by the production launch of Guocheng Resources and increased sales volume and price of silver concentrate [2]. - The newly launched titanium dioxide business faced high production costs and a market price decline, resulting in a gross margin of -24.86% [4]. Asset Management and Strategic Moves - Guocheng Mining is planning to acquire molybdenum mining assets from Guocheng Group for an estimated value of 3.3 billion yuan while selling profitable silver mining assets to improve its product portfolio [1][8]. - The company is under financial pressure, with cash reserves of only 174 million yuan against short-term debts of 670 million yuan, raising concerns about the feasibility of the acquisition [8][9]. - The company has also sold a 65% stake in its subsidiary Yubang Mining for 1.6 billion yuan to enhance liquidity and optimize its asset structure [9]. Market Conditions - The market price for titanium dioxide has been under pressure, with a decline from an average of 16,483.33 yuan/ton at the beginning of 2024 to 14,900 yuan/ton by year-end, reflecting a drop of 9.61% [4]. - Molybdenum prices have also decreased from their peak in 2023, which could impact the performance of Guocheng Resources post-acquisition [10][12]. - The performance of Guocheng's equity subsidiary, Malkang Jinxin Mining, has declined significantly due to falling lithium product prices, with net profit dropping nearly 90% in 2024 [5].