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- Revenue and Profit Attributable to Owners of the Parent Company Rises 13.21% and 14.66% Respectively;
- Steady Increase in Total Gold Output Marked Progress in Management Reform
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HONG KONG, Mar 19, 2017 - (ACN Newswire) - Zhaojin Mining Industry Company Limited ("Zhaojin Mining" or the "Company", together with its subsidiaries, the "Group", stock code: 1818), a leading gold enterprise in the PRC, announced its annual results for the year ended 31 December 2016 (the "year under review").
In 2016, as the gold market was facing the backdrop of the referendum of Britain's exit from the European Union ("Brexit"), the rate hike by the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") and other factors, the fluctuations in the gold prices were intensified, resulting in an inverted-V-shaped development for the Year in general. Facing the challenge of fluctuations in the gold prices, the Group maintained steady operation and actively seized market opportunities, thus achieved an ideal earning growth. For the year ended 31 December 2016, the Group's revenue was approximately RMB6,664,785,000, representing a year-on-year increase of approximately 13.21%. Gross profit and gross profit margin were approximately RMB2,729,320,000 and approximately 40.95%, representing a year-on-year an increase in gross profit of approximately 22.33% and an increase in gross profit margin of approximately 3.05 pps. Net profit was approximately RMB433,519,000, representing a year-on-year increase of approximately 8.49%. The basic and diluted earnings per share attributable to ordinary equity holders of the parent company amounted to approximately RMB0.12, representing a year-on-year increase of approximately 20%. The profit attributable to owners of the parent company was approximately RMB353,322,000, representing a year-on-year increase of approximately 14.66%. The Board of Directors proposed the payment of a cash dividend of RMB0.04 (tax included) per share to all shareholders.
Mr. Weng Zhanbin, Chairman of Zhaojin Mining Industry Company Limited, remarked, "The year of 2016, is a year of unrest in which global gold and commodity market witnessed intensive fluctuations and surging risks of uncertainty; it is also a year of endeavor for Zhaojin Mining in which the Company persisted in internal market-oriented reform and strived to enhance internal management. Facing the multiple pressures and challenges from production operation and reform and development, the Company strictly adhered to the core principle of 'reform, innovation, integrity, and evolution', and held emphasis with clear thoughts to response to challenges and difficulties in calm and determined manner, thus achieved fast yet stable development in adversity."
An Internal Market-Oriented Reform Achieved New Effect
During the year under review, guided by the internal market-oriented reform, the Company introduced a set of reform policies and support systems in respect of contract operation, institutional downsizing and delegation of power. By adjusting the assessment methods and improving the control mechanism, the Company enhanced the workplace autonomy of all cadres and employees. As a result, the Company recorded a total output of gold amounted to 1,160,411.85 ozs (approximately 36,092.87 kg), representing an increase of approximately 6.29% as compared with the same period of last year, among which, 655,225.62 ozs (approximately 20,379.81 kg) of gold was mined, representing an increase of approximately 0.52% as compared with the same period of last year, and 505,186.23 ozs (approximately 15,713.06 kg) of gold was smelted and processed, representing a rise of approximately 14.83% as compared with the same period of last year.
The Coordinated Growth of the Mines Inside and Outside the District
In respect of project development, the Company focused on the acceleration of the construction of key projects, in particular, the Company invested RMB816 million for implementing 30 key projects. Various key projects including the continuous transformation of the production process and processing plants were completed on time, creating favorable conditions for continuous enhancement in our production capacity, and the development strategy of "half inside and half outside the district" has been successfully adopted. During the year under review, the gold output completed by mining enterprises outside the district amounted to 284,044.56 ozs (approximately 8,834.78 kg), representing an increase by 5.09% on a year-on-year basis and accounting for nearly 50% of the Company's total output. Meanwhile, the Company continued to explore new strategy and invested mineral prospecting funds of RMB140 million, which led to the production of 61 additional tons of gold metals and over 3,000 tons of copper metals.
Internal Management Approaches Achieved Sound Outcomes
In respect of management efficiency, a series of innovative and effective activities were introduced by the Company to promote cost reduction and efficiency enhancement, including the enhancement of the integration of information technology and financials and the online operation of the management systems for mineral resources planning; the enhancement of a sound and traditional management model and the launch of the TOPS Star Rating Assessment System in 21 enterprises, leading to a substantial improvement in terms of equipment management, on-site management and management approach. Also, the Company made great efforts to carry out special rectification in respect of projects, procurement and sales, inspect the Company in respect of its audit, financials and disciplinary performance, and refine the management system, which led to an accumulated management potential tapping an amount exceeding RMB150 million, and an enhancement of our management efficiency.
Technological Innovations Emerging
In respect of technology innovations, in 2016, the Company completed the investment of RMB83.3 million in technological research. "The two national brands" technological research projects, namely the construction of the base for demonstrating and integrated utilization of gold resources and the research in the gold ore short distanced grinding and flotation technology, were completed and passed the acceptance inspection by the government. Moreover, the cooperation between the production, academic and research sector of the Company achieved new progress as exemplified by the collaboration between the technology centre, the design institute in Yanjing and the production enterprises, the implementation of the "academician workstation of Zhaojin Mining" with the Chinese Academy of Engineering and the construction of a new platform for technological research and development. In 2016, the Company applied for 89 patents and successfully applied for 29 achievement awards in various sectors and sought for the subsidies on technological innovation of RMB11.47 million.
Positive Entrepreneurial Culture
In respect of safety and environmental protection, the Company strictly adhered to the "red lines" for safety, ecological and environmental protection and invested RMB120 million in adopting safety measures for the Year and over 30 hectares of afforested area. Consistent performance has been maintained in respect of safety and environmental protection, which enabled the Company to pass the state supervision and examination on safety and environmental protection. In addition, the Company launched professional training plan and organized 51 professional skill competitions for over 3,000 persons in the Year. To carry forward the craftsman's spirit, the Company set up an innovation studio for employees, who have carried out 725 small reforms and innovations, resulting in a direct creation of RMB27.85 million in revenue.
Looking forward to year of 2017, it is a key year for the Company as it will implement the "13th Five-Year" Plan to speed up development and improve quality and efficiency. The Company will focus on the core business for the strengthening and betterment of the gold mining industry. The Company plans to carry out various activities to promote production organization to a new level and to achieve four new breakthroughs in different respects, namely, breakthrough in key project construction, in technological innovation, in integration of the "four modernizations" (mechanization, informatization, automation and intellectualization), and in mineral prospecting. Meanwhile, the Company will continue to enhance enterprise management with an aim to maintain a sound and efficient development by improving its operation vitality, management efficiency and labor productivity. In addition, the Company also aims to address three difficult issues: firstly, the issue of operating capital; secondly, the issue of safety, environmental and ecological protection; and thirdly, the issue of investment and development; so as to propel the development of stable and healthy transport to a new level.
Mr. Weng Zhanbin concluded, "Looking ahead to 2017, although global economy uncertainties will still weighing on gold prices, the profitability fundamentals of gold industry remains unchanged, which give us strong confidence in the future development of gold industry. In the critical year of implementing the "13th Five-Year" Plan, we will in strict accordance with the development keynote of "focus, intensive cultivate, assault", focus on development of gold mining as our main business, enhance mutual promotion between industries and financial institutions, enhance innovation and efficiency, so as to ensure a harmonious and steady development and fulfill various operational goals of the Year. We will strive as always to become the leading gold mining company in China and the globe, and to create the maximum value to shareholders with all efforts."
Topic: Press release summary
Source: Zhaojin Mining
Sectors: Daily Finance, Print & Package, Daily News
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From the Asia Corporate News Network
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