Financial Performance - The company's operating revenue reached a historical high of RMB 186.3 billion, representing an 8% year-on-year increase[11]. - Net profit attributable to shareholders hit a record high of RMB 8.25 billion, up 36% year-on-year[11]. - The company achieved a significant revenue increase of 187.24% in the Democratic Republic of Congo, totaling RMB 28 billion, with a gross profit of RMB 12.402 billion[19]. - The Chinese segment reported an operating revenue of RMB 8.611 billion, a 23.63% increase year-on-year, achieving the best historical performance[17]. - The company's operating revenue for 2023 reached RMB 186.27 billion, an increase of 7.68% compared to RMB 172.99 billion in 2022[28]. - Net profit attributable to shareholders was RMB 8.25 billion, representing a significant growth of 35.98% from RMB 6.07 billion in the previous year[28]. - The basic earnings per share increased to RMB 0.38, up 35.71% from RMB 0.28 in 2022[29]. - The company achieved a cash flow from operating activities of RMB 15.54 billion, a slight increase of 0.57% compared to RMB 15.45 billion in 2022[28]. - Total assets as of December 31, 2023, amounted to RMB 172.97 billion, reflecting a growth of 4.82% from RMB 165.02 billion in 2022[31]. - The company's total direct economic contribution for 2023 was approximately RMB 182.9 billion[27]. Production and Operations - The company maintained leading global resource volumes for copper (3,463.82 thousand tons), cobalt (524.64 thousand tons), molybdenum (136.25 thousand tons), tungsten (10.97 thousand tons), niobium (203.6 thousand tons), and phosphorus (8,222.63 thousand tons) as of 2023[9]. - In 2023, the company achieved copper production of over 520,000 tons and cobalt production of over 60,000 tons, positioning itself among the top ten copper producers globally and maintaining its status as the largest cobalt producer[39]. - The company aims to produce 800,000 to 1,000,000 tons of copper, 90,000 to 100,000 tons of cobalt, 25,000 to 30,000 tons of molybdenum, and over 10,000 tons of niobium annually by 2024[38]. - The company reported a total operating income of CNY 168.08 billion for mineral trading, with a year-on-year increase of 5.67%[82]. - The mining and processing segment generated an operating income of CNY 44.52 billion, reflecting a significant year-on-year increase of 75.44%[82]. - The company produced 419,537 tons of copper, a 51% increase from 276,992 tons in 2022[66]. - Cobalt production reached 55,526 tons, marking a significant 174% increase from 20,286 tons in the previous year[66]. - Molybdenum output was 15,635 tons, a slight increase of 3% compared to 15,114 tons in 2022[66]. - The KFM project produced 113,700 tons of copper and 33,900 tons of cobalt in 2023, while the TFM project achieved an annual capacity of 450,000 tons of copper and 37,000 tons of cobalt across five production lines[69]. Strategic Initiatives - The company is positioned as the world's largest cobalt producer and aims to enter the top ten copper producers globally by 2024[13][19]. - The company plans to leverage its Brazilian operations in niobium and phosphorus to support strategic metal development in 2024[21]. - In January 2024, the company signed an agreement to establish a pilot plant for lithium extraction in Bolivia, marking a strategic move into lithium production[10]. - The company plans to deepen cooperation with CATL to accelerate projects in the African battery value chain and the lithium lake industry chain in Bolivia[79]. - The company is focusing on resource acquisition in response to market fluctuations, particularly in new energy metals like nickel, lithium, and cobalt[43]. - The company aims to enhance global governance capabilities and improve operational efficiency through a refined international operational system and digitalization efforts[76]. Environmental, Social, and Governance (ESG) - The company's carbon intensity is 95% lower than the industry average, with renewable energy accounting for 41% of total energy consumption[27]. - The company invested RMB 296 million in global community projects, focusing on education, healthcare, and infrastructure development[27]. - The company’s EcoVadis rating improved to gold level, placing it among the top 3 global metal and mineral traders[26]. - The company released its first TCFD report in 2023, enhancing its ESG management system to solidify its leading position in ESG practices domestically and globally[44]. - The company aims to integrate Chinese wisdom and technology with global resources to contribute to global energy transition efforts[44]. - The company is committed to improving its ESG governance model to maintain its leading position in the global industry[81]. - The company has set long-term goals for climate change and biodiversity, including a carbon neutrality roadmap to contribute to global sustainability efforts[196]. Risk Management - The company faces significant risks from price fluctuations of its main products, including copper, cobalt, molybdenum, tungsten, niobium, and phosphorus, which are critical to its profitability[120]. - The company operates in regions with varying political and economic conditions, including China, the Democratic Republic of Congo, and Brazil, which may impact operations due to geopolitical and policy risks[121]. - Interest rate risk arises from fluctuations in bank loan rates, with the company utilizing interest rate swap tools to mitigate risks associated with rising rates in the U.S.[122]. - The company is exposed to foreign exchange risks related to its non-local currency assets and liabilities, primarily involving USD, HKD, EUR, CAD, RMB, BRL, GBP, and CDF[123]. - IXM, the trading segment, employs a comprehensive risk management framework to address price volatility, foreign exchange, credit, and liquidity risks[125]. - Market risk is managed through diversification, position control, stress testing, and monitoring risk limits, with a Value at Risk (VaR) model set at a 95% confidence level[126]. Corporate Governance - The board held a total of ten meetings during the year ending December 31, 2023, to review and approve financial and operational matters[131]. - The company has adopted the principles and code provisions of the Corporate Governance Code as per the Hong Kong Listing Rules[130]. - The company has established various committees under the board to delegate responsibilities, including those related to corporate governance functions[132]. - The company has established a formal and transparent procedure for determining the remuneration policy for directors, supervisors, and senior management[146]. - The Audit and Risk Committee held seven meetings during the year, reviewing the financial performance for the fiscal year ending December 31, 2022, and the quarterly results for 2023[151]. - The company has established a risk management and internal control system, with the Audit and Risk Committee overseeing its effectiveness and reporting significant issues to the board[151]. Market Conditions - The international price of cobalt decreased by 50.12% to USD 15.11 per pound in 2023, down from USD 30.29 in 2022[46]. - The average LME copper spot price in 2023 was USD 8,483 per ton, a decrease of 4% compared to the previous year[49]. - The average price of ammonium phosphate fell by 38.77% to USD 556 per ton in 2023, down from USD 908 in 2022[46]. - The cobalt price decline was attributed to lower-than-expected performance in the new energy vehicle supply chain and increased cobalt supply from Congo and Indonesia[51]. - The molybdenum industry is expected to see stable and healthy development due to strong demand from the steel and military sectors[52]. Shareholder Returns - The company emphasizes a cash dividend policy that prioritizes reasonable returns to investors while ensuring sustainable development, with a minimum cash distribution of 30% of distributable profits each year[198]. - The company distributed a cash dividend of RMB 0.8508 per 10 shares, totaling RMB 1,820,227,909.77 during the reporting period[200].
洛阳钼业(03993) - 2023 - 年度财报