Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
SHANDONG GOLD MINING CO., LTD.
山東黃金礦業股份有限公司
(a joint stock company incorporated in the People's Republic of China with limited liability)
(Stock Code: 1787)
OVERSEAS REGULATORY ANNOUNCEMENT
This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Set out below is the Announcement on the Proposed Public Issuance of Renewable Corporate Bonds of Shandong Gold Mining Co., Ltd. (the "Company") on the website of the Shanghai Stock Exchange at www.sse.com.cn, for information purpose only.
By order of the Board
Shandong Gold Mining Co., Ltd.
Li Guohong
Chairman
Jinan, the PRC, 18 September 2020
As at the date of this announcement, the executive directors of the Company are Mr. Wang Peiyue, Mr. Li Tao and Mr. Tang Qi; the non-executive directors of the Company are Mr. Li Guohong, Mr. Wang Lijun and Ms. Wang Xiaoling; and the independent non-executive directors of the Company are Mr. Gao Yongtao, Mr. Lu Bin and Ms. Hui Wing.
Stock Abbreviation: SD GOLD | Stock Code: 600547 | Announcement No.: Lin 2020-069 |
SHANDONG GOLD MINING CO., LTD.
ANNOUNCEMENT ON THE PROPOSED PUBLIC ISSUANCE OF
RENEWABLE CORPORATE BONDS
The Company and all members of its board of directors guarantee the truthfulness, accuracy and completeness of the contents of this announcement, and severally and jointly accept the responsibility in case there are false representations and misleading statements contained in, or material omissions from, this announcement.
Shandong Gold Mining Co., Ltd. (the "Company") convened the 41st meeting of the fifth session of the Board on 18 September 2020, at which the Resolution on the Company's Satisfaction of the Conditions for Public Issuance of Renewable Corporate Bonds, the Resolution on the Company's Proposed Issuance of Renewable Corporate Bonds and the Resolution on Proposing at the General Meeting to Authorize the Board of Directors with Full Discretion to Handle the Matters related to the Company's Issuance of Renewable Corporate Bonds have been considered and approved. The Company proposes to publicly issue renewable corporate bonds to professional investors (the "Issuance"). The Issuance shall be submitted to the general meeting for consideration.
- STATEMENT ON THE SATISFACTION OF THE CONDITIONS FOR ISSUANCE OF CORPORATE BONDS
In accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Measures for the Issuance and Trading of Corporate Bonds and other relevant laws, regulations and normative documents, the Board compares the actual conditions of the Company with provisions of the said laws, regulations and normative documents item by item, and considers that the Company complies with the current policies on corporate bonds and the provisions regarding conditions for issuing corporate bonds and is eligible for the public issuance of renewable corporate bonds to professional investors.
- SUMMARY OF THE ISSUANCE
-
Issue Size
The size of the Issuance will not exceed RMB4 billion (inclusive of RMB4 billion).
-
Issue Size
- Par Value and Issue Price
The par value of bonds under the Issuance is RMB100, and the bonds are issued at par.
- I-1 -
(III) Issue Method
The bonds are publicly issued within China in one lot or by tranches after Shanghai Stock Exchange has reviewed the Issuance and the registration with China Securities Regulatory Commission has been completed.
(IV) Issue Target and Arrangement for Placement to Shareholders of the Company
The issue target of the bonds is professional investors. No preferential allotment of the bonds will be offered to shareholders of the Company.
- Term of the Bonds
The proposed term of the bonds is 3+N years.
(VI) Interest Rate and Payment of Interests
The coupon rate of the Issuance is determined by the Board with the authorization of the general meeting of the Company and the lead underwriter based on the result of book-building.
Public Issuance of the renewable corporate bonds bears interest on an annual basis at simple rate rather than at compound rate. In the case of deferral, interest shall be accrued on each deferred interest at the coupon rate prevailing at the deferral period. The coupon rate of the first repricing cycle of the bonds is determined based on the result of offline book-building, fixed within the interest rate inquiry range by the Board with the authorization of the general meeting of the Company and the lead underwriter with reference to the result of book-building and through negotiation according to relevant provisions of the State. The coupon rate remains unchanged in the first repricing cycle, and is reset in each repricing cycle from the second repricing cycle.
(VII) Terms of Guarantee
The Issuance is unguaranteed.
- I-2 -
(VIII) Use of Proceeds
Replenishing working capital, repaying interest-bearing debts, project constructions and other related purposes that comply with relevant laws and regulations.
(IX) Proposed Place of Listing:
Shanghai Stock Exchange.
- Measures to Secure Repayment
In the case that the failure of repaying the principal and interest of the bonds on schedule or at maturity is foreseeable after the Company's issuance of renewable corporate bonds, one or more of the following measures shall be adopted according to actual conditions of the Company and the market within the scope permitted by laws and regulations:
- not to distribute profit to the Shareholders;
- to suspend the implementation of capital expenditure projects including significant foreign investments, acquisitions and mergers;
- to reduce or freeze the salaries and bonuses of directors and senior management;
- the person in charge shall remain in its position.
(XI) Underwriting
The Issuance is underwritten by the underwriting syndicate organized by the lead underwriter by way of standby commitment underwriting.
(XII) Validity of the Resolution
Resolutions related to the Issuance remain effective for 24 months from the date of approval by the general meeting.
- I-3 -
- SELECTED FINANCIAL AND ACCOUNTING INFORMATION
-
Historical Financial Statements
1. Consolidated Financial Statements
-
Historical Financial Statements
The consolidated balance sheet, the consolidated income statement, the consolidated cash flow statement of the Company for the last three years and the latest period are set out below:
Consolidated Balance Sheet
Unit: RMB'0,000 | ||||||||
As at | As at | As at | As at | |||||
the end of | the end of | the end of | the end of | |||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||
Current Assets: | ||||||||
Cash and cash equivalents | 402,052.11 | 324,192.18 | 283,991.51 | 307,275.57 | ||||
Held-for-trading financial assets | 123,666.63 | 152,835.34 | 42,119.93 | - | ||||
Derivative financial assets | 851.48 | 43.12 | - | - | ||||
Notes receivable | - | - | 52.23 | 1,906.63 | ||||
Accounts receivable | 18,468.25 | 29,014.33 | 59,174.80 | 12,666.28 | ||||
Receivables financing | 1,057.20 | 34.10 | - | - | ||||
Prepayments | 73,942.55 | 11,673.70 | 15,007.82 | 17,530.40 | ||||
Dividends receivable | 0.00 | 5.54 | 40.78 | 622.11 | ||||
Interests receivable | 11.62 | 1.44 | 240.22 | - | ||||
Other receivables | 163,298.73 | 116,989.02 | 118,838.98 | 30,128.24 | ||||
Proceeds from financial assets | ||||||||
purchased under agreements to | ||||||||
resell | - | - | 15,892.22 | - | ||||
Inventories | 437,559.39 | 363,978.73 | 338,538.19 | 310,221.76 | ||||
Assets classified as held for sale | - | - | - | 39.59 | ||||
Other current assets | 29,763.48 | 35,378.63 | 30,897.92 | 10,521.25 | ||||
Other current financial assets | 3,137.93 | 2,035.04 | - | - | ||||
Total current assets | 1,253,809.37 | 1,036,181.17 | 904,794.59 | 690,911.84 | ||||
- I-4 -
As at | As at | As at | As at | |||||||
the end of | the end of | the end of | the end of | |||||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||||
Non-current Assets: | ||||||||||
Available-for-sale financial assets | - | - | - | 201.61 | ||||||
Other investments in equity | ||||||||||
instruments | 730.00 | 730.00 | 730.00 | - | ||||||
Other non-current financial assets | 607,907.23 | 568,809.77 | 584,452.02 | - | ||||||
Long-term receivables | 566.26 | - | - | - | ||||||
Long-term equity investments | 115,628.20 | 104,225.93 | 104,094.06 | 39,920.81 | ||||||
Investment properties | 22,532.99 | 23,145.85 | 24,399.71 | 22,668.40 | ||||||
Fixed assets | 2,158,191.95 | 2,203,355.22 | 2,030,678.44 | 1,843,772.39 | ||||||
Construction in progress | 543,704.73 | 398,187.46 | 315,874.33 | 265,675.66 | ||||||
Right-of-use assets | 13,072.84 | 13,655.11 | - | - | ||||||
Intangible assets | 1,056,449.11 | 1,062,830.63 | 1,015,000.92 | 981,936.59 | ||||||
Development expenditures | 2,636.30 | 1,966.57 | 1,025.78 | 245.39 | ||||||
Goodwill | 282,672.82 | 281,082.45 | 289,139.37 | 270,798.56 | ||||||
Long-term deferred expenditures | 3,365.25 | 3,542.79 | 4,601.81 | 3,408.17 | ||||||
Deferred income tax assets | 34,564.09 | 26,787.22 | 39,403.43 | 12,288.50 | ||||||
Other non-current assets | 106,493.27 | 91,057.10 | 75,281.15 | 79,801.04 | ||||||
Total non-current assets | 4,948,515.03 | 4,779,376.12 | 4,484,681.02 | 3,520,717.13 | ||||||
Total assets | 6,202,324.40 | 5,815,557.28 | 5,389,475.61 | 4,211,628.97 | ||||||
- I-5 -
As at | As at | As at | As at | |||||||
the end of | the end of | the end of | the end of | |||||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||||
Current liabilities: | ||||||||||
Short-term borrowings | 678,726.58 | 315,425.75 | 362,335.20 | 78,930.00 | ||||||
Held-for-trading financial liabilities | 1,184,823.54 | 1,305,637.23 | 1,083,400.92 | 575,141.06 | ||||||
Derivative financial liabilities | 827.41 | 391.98 | - | - | ||||||
Notes payable | 86,072.55 | 82,801.63 | 63,164.27 | 38,887.80 | ||||||
Accounts payable | 203,014.20 | 202,315.98 | 197,303.22 | 176,685.03 | ||||||
Advances receivable | - | - | - | 12,721.93 | ||||||
Contract liabilities | 13,513.79 | 4,093.97 | 8,504.91 | - | ||||||
Employee salaries payable | 47,396.34 | 15,631.32 | 12,793.87 | 14,938.88 | ||||||
Taxes payable | 33,895.80 | 34,115.07 | 34,590.92 | 31,279.42 | ||||||
Interests payable | - | - | 10,035.12 | 11,057.57 | ||||||
Dividends payable | 34,411.94 | 12,395.31 | 12,395.31 | 18,886.36 | ||||||
Other payables | 276,045.41 | 219,159.28 | 304,412.26 | 104,939.50 | ||||||
Non-current liabilities due within | ||||||||||
one year | 4,519.81 | 294,968.45 | 4,191.32 | 3,899.25 | ||||||
Other current liabilities | 200,664.53 | 409.34 | - | - | ||||||
Total current liabilities | 2,763,911.91 | 2,487,345.31 | 2,093,127.33 | 1,067,366.80 | |||
Non-current liabilities: | |||||||
Long-term borrowings | 111,395.32 | 120,156.75 | 209,096.00 | 685,756.80 | |||
Bonds payable | 101,226.51 | 103,135.06 | 68,786.20 | 329,447.97 | |||
Lease liabilities | 8,906.38 | 6,593.95 | - | - | |||
Long-term payables | 48,686.58 | 41,014.68 | 4,515.21 | 5,988.39 | |||
Special payables | 507.72 | 507.72 | 345.55 | - | |||
Long-term salaries payables | 21.12 | 49.41 | 366.11 | 283.78 | |||
Accrued liabilities | 97,916.09 | 90,995.79 | 78,880.46 | 57,830.68 | |||
Deferred income tax liabilities | 386,212.61 | 381,862.21 | 391,661.73 | 346,273.85 | |||
Deferred income - non-current | |||||||
liabilities | 1,616.26 | 1,244.40 | 1,218.61 | 1,752.63 | |||
Other non-current liabilities | 870.94 | 877.70 | - | - | |||
Total non-current liabilities | 757,359.53 | 746,437.67 | 754,869.88 | 1,427,334.11 | |||
Total liabilities | 3,521,271.44 | 3,233,782.98 | 2,847,997.21 | 2,494,700.91 | |||
- I-6 -
As at | As at | As at | As at | |||||||
the end of | the end of | the end of | the end of | |||||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||||
Owners' equity: | ||||||||||
Paid-in capital (or share capital) | 309,961.16 | 309,961.16 | 221,400.83 | 185,711.88 | ||||||
Capital reserve | 752,207.40 | 752,207.40 | 1,007,017.87 | 421,636.34 | ||||||
Less: Treasury stock | 638.46 | 638.46 | 638.46 | 638.46 | ||||||
Other comprehensive income | 11,013.20 | 4,401.65 | -2,557.61 | -243.34 | ||||||
Special reserve | 166.13 | 154.57 | 307.41 | 339.10 | ||||||
Surplus reserve | 82,086.64 | 82,086.64 | 56,488.60 | 55,264.27 | ||||||
Undistributed profit | 1,247,740.96 | 1,163,248.29 | 1,081,774.26 | 970,364.03 | ||||||
Total equity attributable to owners of | ||||||||||
the parent company | 2,402,537.03 | 2,311,421.25 | 2,363,792.90 | 1,632,433.83 | ||||||
Non-controlling interests | 278,515.92 | 270,353.06 | 177,685.49 | 84,494.23 | ||||||
Total owners' equity | 2,681,052.96 | 2,581,774.30 | 2,541,478.39 | 1,716,928.06 | ||||||
Total liabilities and owners' equity | 6,202,324.40 | 5,815,557.28 | 5,389,475.61 | 4,211,628.97 | ||||||
- I-7 -
Consolidated Income Statement
Unit: RMB'0,000 | |||||
January to | |||||
Items | June 2020 | 2019 | 2018 | 2017 | |
I. | Total operating income | 3,305,073.78 | 6,263,069.93 | 5,625,647.58 | 5,104,130.34 |
Operating income | 3,305,073.78 | 6,263,069.93 | 5,625,647.58 | 5,104,130.34 | |
II. | Total operating costs | 3,136,862.25 | 6,055,335.64 | 5,489,228.51 | 4,938,227.61 |
Operating costs | 2,936,528.63 | 5,658,566.14 | 5,137,069.19 | 4,641,236.90 | |
Taxes and surcharges | 27,888.95 | 55,326.37 | 36,668.47 | 24,065.80 | |
Selling expenses | 4,647.31 | 18,811.95 | 12,699.48 | 3,115.22 | |
Management expenses | 110,638.25 | 204,623.25 | 185,754.77 | 189,122.03 | |
Research and development expenses | 15,577.48 | 33,305.00 | 32,104.10 | 30,976.37 | |
Finance costs | 41,581.63 | 84,702.94 | 89,645.51 | 49,996.81 | |
Asset impairment loss | - | -12,312.97 | 6.78 | -285.52 | |
Credit impairment loss | -107.17 | -1,432.72 | -4,719.78 | - | |
Net gains from changes in fair value | -2,489.00 | 17,536.34 | 24,373.60 | -8,682.75 | |
Net investment gains | 3,193.50 | -1,067.75 | 7,378.01 | 6,230.52 | |
Among which: Investment gains from | |||||
associates and joint | |||||
ventures | 783.01 | 131.88 | 3,806.64 | 3,402.43 | |
Gains from disposal of assets | 140.07 | -3.09 | -18.68 | 68.29 | |
Other income | 1,171.41 | 3,791.32 | 1,487.97 | 1,597.92 | |
III. Gains from operation | 170,120.34 | 214,245.42 | 169,639.98 | 165,116.70 | |
Add: Non-operating income | 162.18 | 1,709.00 | 1,156.08 | 2,387.08 | |
Less: Non-operating expenses | 1,275.10 | 4,210.29 | 3,915.53 | 4,642.47 | |
Among which: Net loss from disposal | |||||
of non-current | |||||
assets | |||||
IV. | Total profits | 169,007.43 | 211,744.12 | 166,880.52 | 162,861.31 |
Less: Income tax | 38,873.45 | 69,605.52 | 58,317.54 | 43,522.20 | |
V. | Net profit | 130,133.98 | 142,138.60 | 108,562.99 | 119,339.11 |
Net profit from continuous operation | 130,133.98 | 142,138.60 | 108,562.99 | 119,339.11 | |
Less: Profit or loss of non-controlling | |||||
interests | 14,862.28 | 13,191.85 | 6,153.63 | 5,596.73 | |
Net profit attributable to owners of | |||||
the parent company | 115,271.69 | 128,946.75 | 102,409.35 | 113,742.38 | |
Add: Other comprehensive income | 6,611.54 | 6,959.26 | -2,314.27 | -253.85 | |
VI. | Total comprehensive income | 136,745.52 | 149,097.87 | 106,248.72 | 119,085.26 |
Less: Total comprehensive income | |||||
attributable to | |||||
non-controlling interests | 14,862.28 | 13,191.85 | 6,153.63 | 5,596.73 | |
Total comprehensive income | |||||
attributable to ordinary | |||||
shareholders of the parent company | 121,883.24 | 135,906.02 | 100,095.08 | 113,488.53 |
- I-8 -
Consolidated Cash Flow Statement
Unit: RMB'0,000 | ||||
January to | ||||
Items | June 2020 | 2019 | 2018 | 2017 |
I. | Cash flows generated from operating | |||||||
activities: | ||||||||
Cash received from sales of goods and | ||||||||
provision of labor service | 3,308,436.27 | 6,277,463.34 | 5,922,293.80 | 5,312,637.64 | ||||
Tax refunds received | 389.56 | 5,317.62 | 293.32 | 127.77 | ||||
Cash received from other operating | ||||||||
activities | 1,829,156.82 | 3,737,887.35 | 2,882,896.05 | 29,069.77 | ||||
Sub-total of cash inflows from | |||||||
operating activities | 5,137,982.64 | 10,020,668.31 | 8,805,483.17 | 5,341,835.18 | |||
Cash paid for purchase of goods and | |||||||
engagement of labor service | 2,870,785.74 | 5,403,967.05 | 5,250,537.53 | 4,652,901.75 | |||
Cash paid to and for employees | 117,956.73 | 262,923.19 | 250,898.46 | 201,233.00 | |||
Payments of all types of taxes | 73,365.95 | 126,138.02 | 85,265.66 | 67,441.04 | |||
Cash paid for other operating activities | 1,866,422.64 | 3,809,631.98 | 2,803,625.71 | 50,391.45 | |||
Sub-total of cash outflows used in | |||||||
operating activities | 4,928,531.07 | 9,602,660.24 | 8,390,327.35 | 4,971,967.24 | |||
Net cash flow generated from | |||||||
operating activities | 209,451.57 | 418,008.07 | 415,155.82 | 369,867.94 | |||
II. Cash flows generated from investing | |||||||
activities: | |||||||
Cash received from disposal of | |||||||
investment | - | 29,826.00 | 106,836.23 | - | |||
Cash received from investment gains | - | 5,254.66 | 3,984.04 | - | |||
Net cash from disposal of fixed assets, | |||||||
intangible assets and other long-term | |||||||
assets | 79.00 | 60.57 | 83.14 | 494.26 | |||
Cash received from other investing | |||||||
activities | 107,617.80 | 120,793.06 | 174,693.89 | 120,389.90 | |||
Sub-total of cash inflows from | |||||||
investing activities | 107,696.80 | 155,934.29 | 285,597.30 | 120,884.16 | |||
Cash paid for acquisition of fixed assets, | |||||||
intangible assets and other long-term | |||||||
assets | 205,663.48 | 417,463.52 | 362,961.58 | 380,160.67 | |||
Cash paid for investments | - | 25,047.00 | 299,916.97 | - | |||
Net cash paid for acquisition of | |||||||
subsidiaries and other operating units | - | - | - | 641,372.56 | |||
Cash paid for other investing activities | 136,038.46 | 96,566.67 | 78,975.99 | 140,127.67 | |||
Sub-total of cash outflows used in | |||||||
investing activities | 341,701.93 | 539,077.19 | 741,854.53 | 1,161,660.90 | |||
Net cash flow generated from investing | |||||||
activities | -234,005.13 | -383,142.91 | -456,257.24 | -1,040,776.74 | |||
- I-9 -
January to | ||||||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||
III. Cash flows generated from financing | ||||||||
activities: | ||||||||
Cash received from investments | - | 150,000.00 | 561,881.89 | - | ||||
Among which: Cash received from | ||||||||
absorbing minority shareholders' | ||||||||
investment by subsidiaries | - | 150,000.00 | 100,000.00 | - | ||||
Cash received from obtaining borrowings | 764,923.38 | 801,929.20 | 815,431.50 | 1,164,519.60 | ||||
Cash received from other financing | ||||||||
activities | 450,241.68 | 1,482,639.06 | 1,478,821.84 | 613,342.49 | ||||
Sub-total of cash inflows from | ||||||||
financing activities | 1,215,165.06 | 2,434,568.26 | 2,856,135.23 | 1,777,862.09 | ||||
Cash paid for repayment of debt | 493,228.69 | 636,420.84 | 1,309,892.39 | 449,983.97 | ||||
Cash paid for distribution of dividends, | ||||||||
profits or payment of interests | 48,148.33 | 84,706.34 | 98,665.79 | 66,173.22 | ||||
Among which: Dividend and profits paid | ||||||||
to minority shareholders by | ||||||||
subsidiaries | 6,717.50 | 7,852.29 | 2,204.21 | 3,173.87 | ||||
Cash paid for other financing activities | 573,024.33 | 1,711,267.10 | 1,441,415.77 | 465,005.66 | ||||
Sub-total of cash outflows used in | ||||||||
financing activities | 1,114,401.34 | 2,432,394.28 | 2,849,973.94 | 981,162.84 | ||||
Net cash flow generated from financing | ||||||||
activities | 100,763.72 | 2,173.98 | 6,161.29 | 796,699.25 | ||||
IV. | Effect on cash from changes of | |||||||
exchange rate | 1,066.03 | 1,306.86 | 2,236.57 | -1,381.52 | ||||
V. | Net increase in cash and cash | |||||||
equivalents | 77,276.19 | 38,346.00 | -32,703.56 | 124,408.93 | ||||
Balance of cash and cash equivalents at | ||||||||
the beginning of the period | 301,904.03 | 263,558.03 | 296,261.58 | 115,424.92 | ||||
VI. | Balance of cash and cash equivalents at | |||||||
the end of the period | 379,180.22 | 301,904.03 | 263,558.03 | 239,833.86 | ||||
- I-10 -
2. Financial Statements of the Parent Company
The balance sheet, the income statement, the cash flow statement of the parent company for the last three years and the latest period are set out below:
Balance Sheet of the Parent Company
Unit: RMB'0,000 | ||||||||||
As at | As at | As at | As at | |||||||
the end of | the end of | the end of | the end of | |||||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||||
Current Assets: | ||||||||||
Cash and cash equivalents | 51,391.02 | 76,501.47 | 82,035.74 | 191,064.17 | ||||||
Accounts receivable | 47,242.20 | 8,502.19 | 24,983.93 | 21,816.68 | ||||||
Prepayments | 465.56 | 240.73 | 801.91 | 2,352.72 | ||||||
Dividends receivable | 122,950.81 | 137,531.14 | 89,823.11 | 91,984.51 | ||||||
Other receivables | 561,937.21 | 439,760.12 | 808,271.68 | 325,884.43 | ||||||
Inventories | 6,945.04 | 7,688.76 | 4,684.48 | 3,753.17 | ||||||
Other current assets | 2,829.04 | 3,443.16 | 4,341.80 | 1,930.69 | ||||||
Total current assets | 793,760.88 | 673,667.57 | 1,014,942.66 | 638,786.37 | ||||||
Non-current Assets: | ||||||||||
Available-for-sale financial assets | - | - | - | 50.00 | ||||||
Other investments in equity | ||||||||||
instruments | 50.00 | 50.00 | 50.00 | - | ||||||
Long-term receivables | 566.26 | - | - | - | ||||||
Long-term equity investments | 1,882,857.26 | 1,882,074.25 | 1,205,010.01 | 1,131,216.39 | ||||||
Investment properties | 17,979.11 | 18,444.64 | 19,337.09 | 20,170.69 | ||||||
Fixed assets | 140,768.39 | 143,137.87 | 106,447.33 | 104,920.43 | ||||||
Construction in progress | 128,858.14 | 104,462.83 | 85,900.93 | 55,728.03 | ||||||
Right-of-use assets | 1,151.09 | 1,257.44 | - | - | ||||||
Intangible assets | 68,679.61 | 68,411.83 | 57,939.46 | 3,645.43 | ||||||
Long-term deferred expenditures | 1,641.17 | 1,629.89 | 1,384.42 | 473.23 | ||||||
Deferred income tax assets | - | - | 4,066.43 | 1,073.42 | ||||||
Other non-current assets | 13,260.41 | 9,538.83 | 10,675.59 | 43,740.63 | ||||||
Total non-current assets | 2,255,811.44 | 2,229,007.59 | 1,490,811.27 | 1,361,018.25 | ||||||
Total assets | 3,049,572.32 | 2,902,675.17 | 2,505,753.93 | 1,999,804.63 | ||||||
- I-11 -
As at | As at | As at | As at | ||||
the end of | the end of | the end of | the end of | ||||
Items | June 2020 | 2019 | 2018 | 2017 | |||
Current liabilities: | |||||||
Short-term borrowings | 290,336.84 | 195,282.57 | 268,000.00 | 67,000.00 | |||
Held-for-trading financial liabilities | 634,650.17 | - | 643,872.62 | 543,679.12 | |||
Notes payable | 15,977.69 | 9,816.60 | 7,078.10 | 7,525.67 | |||
Accounts payable | 41,902.54 | 39,923.65 | 45,216.76 | 47,533.66 | |||
Advances receivable | - | - | - | 275.27 | |||
Contract liabilities | 211.05 | 48.76 | 240.37 | - | |||
Employee salaries payable | 5,687.65 | 730.97 | 409.72 | 469.41 | |||
Taxes payable | 593.44 | 1,243.99 | 753.44 | 2,116.08 | |||
Interests payable | - | - | 5,353.45 | 10,782.04 | |||
Dividends payable | 30,830.74 | 16.83 | 16.83 | 15,358.83 | |||
Other payables | 32,670.03 | 76,787.41 | 90,581.28 | 46,212.55 | |||
Non-current liabilities due within | |||||||
one year | 287.51 | 72,055.27 | - | - | |||
Other current liabilities | 200,619.92 | 701,003.81 | - | - | |||
Total current liabilities | 1,253,767.57 | 1,096,909.85 | 1,061,522.57 | 740,952.63 | ||||||
Non-current liabilities: | ||||||||||
Long-term borrowings | 111,395.32 | 120,156.75 | - | - | ||||||
Bonds payable | 101,226.51 | 103,135.06 | 68,786.20 | 329,447.97 | ||||||
Lease liabilities | 970.30 | 810.22 | - | - | ||||||
Long-term payables | - | - | 245.28 | 471.70 | ||||||
Accrued liabilities | 1,019.02 | 1,019.02 | 2,106.27 | 1,526.39 | ||||||
Deferred income - non-current | ||||||||||
liabilities | 300.13 | 186.96 | 129.04 | 75.74 | ||||||
Total non-current liabilities | 214,911.28 | 225,308.01 | 71,266.80 | 331,521.80 | ||||||
Total liabilities | 1,468,678.85 | 1,322,217.86 | 1,132,789.37 | 1,072,474.43 | ||||||
Owners' equity: | ||||||||||
Paid-in capital (or share capital) | 309,961.16 | 309,961.16 | 221,400.83 | 185,711.88 | ||||||
Capital reserve | 557,985.54 | 557,985.54 | 673,133.88 | 267,876.28 | ||||||
Other comprehensive income | - | - | - | 4.91 | ||||||
Surplus reserve | 99,134.21 | 99,134.21 | 73,536.17 | 72,311.84 | ||||||
Undistributed profit | 613,812.56 | 613,376.40 | 404,893.69 | 401,425.28 | ||||||
Total equity attributable to owners of | ||||||||||
the parent company | 1,580,893.47 | 1,580,457.31 | 1,372,964.56 | 927,330.20 | ||||||
Total owners' equity | 1,580,893.47 | 1,580,457.31 | 1,372,964.56 | 927,330.20 | ||||||
Total liabilities and owners' equity | 3,049,572.32 | 2,902,675.17 | 2,505,753.93 | 1,999,804.63 | ||||||
- I-12 -
Income Statement of the Parent Company
Unit: RMB'0,000 | |||||
January to | |||||
Items | June 2020 | 2019 | 2018 | 2017 | |
I. | Total operating income | 85,052.49 | 136,838.52 | 117,142.39 | 121,203.66 |
Operating income | 85,052.49 | 136,838.52 | 117,142.39 | 121,203.66 | |
II. | Total operating costs | 75,455.55 | 146,370.04 | 130,428.16 | 119,503.59 |
Operating costs | 31,758.57 | 56,105.33 | 52,384.11 | 53,362.65 | |
Taxes and surcharges | 2,685.82 | 4,686.39 | 4,063.85 | 3,778.45 | |
Selling expenses | 52.84 | 1,246.59 | 1,056.72 | 84.82 | |
Management expenses | 18,941.17 | 38,476.12 | 32,500.45 | 28,398.18 | |
Research and development expenses | 1,385.02 | 5,047.38 | 4,241.33 | 5,065.92 | |
Finance costs | 20,632.13 | 40,808.23 | 36,359.50 | 29,749.88 | |
Add: Other income | 300.74 | 1,077.37 | 143.67 | 109.48 | |
Net investment gains | 22,202.68 | 269,500.69 | 22,950.86 | 83,791.15 | |
Among which: Investment gains from | |||||
associates and joint | |||||
ventures | 783.01 | 127.25 | 3,798.53 | 3,402.43 | |
Net gains from changes in fair value | - | - | - | -3,921.62 | |
Asset impairment loss | - | - | - | -936.31 | |
Credit impairment loss | -30.51 | -89.13 | -177.80 | - | |
Gains from disposal of assets | 140.07 | -3.09 | -2.45 | 28.47 | |
III. Gains from operation | 32,209.92 | 260,954.32 | 9,806.31 | 81,707.55 | |
Add: Non-operating income | 30.71 | 26.25 | 134.42 | 42.89 | |
Less: Non-operating expenses | 990.57 | 933.78 | 690.46 | 709.35 | |
IV. | Total profits | 31,250.06 | 260,046.80 | 9,250.27 | 81,041.08 |
Less: Income tax | - | 4,066.43 | -2,993.01 | -447.41 | |
V. | Net profit | 31,250.06 | 255,980.37 | 12,243.28 | 81,488.49 |
Net profit from continuous operation | 31,250.06 | 255,980.37 | 12,243.28 | 81,488.49 | |
Net profit attributable to owners of the | |||||
parent company | 31,250.06 | 255,980.37 | 12,243.28 | 81,488.49 | |
Add: Other comprehensive income | - | - | -4.91 | -5.60 | |
VI. | Total comprehensive income | 31,250.06 | 255,980.37 | 12,238.38 | 81,482.89 |
Total comprehensive income attributable | |||||
to ordinary shareholders of the parent | |||||
company | 31,250.06 | 255,980.37 | 12,238.38 | 81,482.89 |
- I-13 -
Cash Flow Statement of the Parent Company
Unit: RMB'0,000 | ||||
January to | ||||
Items | June 2020 | 2019 | 2018 | 2017 |
I. Cash flows generated from operating | |||||||
activities: | |||||||
Cash received from sales of goods and | |||||||
provision of labor service | 44,429.84 | 148,795.91 | 110,488.45 | 123,958.34 | |||
Cash received from other operating | |||||||
activities | 234,320.07 | 937,635.86 | 417,037.61 | 240,607.54 | |||
Sub-total of cash inflows from | |||||||
operating activities | 278,749.91 | 1,086,431.77 | 527,526.07 | 364,565.88 | |||
Cash paid for purchase of goods and | |||||||
engagement of labor service | 12,893.50 | 26,833.36 | 32,105.83 | 28,621.12 | |||
Cash paid to and for employees | 16,410.34 | 40,051.05 | 39,799.67 | 31,694.66 | |||
Payments of all types of taxes | 2,970.76 | 4,489.22 | 5,345.82 | 3,721.24 | |||
Cash paid for other operating activities | 400,921.98 | 1,024,817.57 | 865,770.82 | 324,797.35 | |||
Sub-total of cash outflows used in | |||||||
operating activities | 433,196.58 | 1,096,191.21 | 943,022.13 | 388,834.37 | |||
Net cash flow generated from | |||||||
operating activities | -154,446.67 | -9,759.44 | -415,496.07 | -24,268.49 | |||
II. Cash flows generated from investing | |||||||
activities: | |||||||
Cash received from investment gains | 36,000.00 | 221,665.41 | 21,313.73 | 7,915.27 | |||
Net cash from disposal of fixed assets, | |||||||
intangible assets and other long-term | |||||||
assets | 78.42 | 45.91 | 15.02 | 470.71 | |||
Cash received from other investing | |||||||
activities | 0.65 | 0.36 | 52,041.69 | - | |||
Sub-total of cash inflows from | |||||||
investing activities | 36,079.08 | 221,711.68 | 73,370.44 | 8,385.97 | |||
- I-14 -
January to | ||||||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||
Cash paid for acquisition of fixed assets, | ||||||||
intangible assets and other long-term | ||||||||
assets | 29,159.87 | 85,515.22 | 62,340.86 | 68,671.40 | ||||
Cash paid for investments | - | 253,231.91 | 70,000.00 | 4,000.00 | ||||
Cash paid for other investing activities | 0.69 | 580.35 | 528.33 | 4,003.43 | ||||
Sub-total of cash outflows used in | ||||||||
investing activities | 29,160.57 | 339,327.48 | 132,869.19 | 76,674.84 | ||||
Net cash flow generated from investing | ||||||||
activities | 6,918.51 | -117,615.80 | -59,498.75 | -68,288.86 | ||||
III. Cash flows generated from financing | ||||||||
activities: | ||||||||
Cash received from investments | - | - | 461,881.89 | - | ||||
Cash received from obtaining borrowings | 359,915.98 | 665,900.00 | 576,000.00 | 305,000.00 | ||||
Cash received from other financing | ||||||||
activities | 265,781.09 | 843,725.22 | 849,190.82 | 610,015.40 | ||||
Sub-total of cash inflows from | ||||||||
financing activities | 625,697.07 | 1,509,625.22 | 1,887,072.70 | 915,015.40 | ||||
Cash paid for repayment of debt | 142,649.60 | 519,000.00 | 636,100.40 | 277,000.00 | ||||
Cash paid for distribution of dividends, | ||||||||
profits or payment of interests | 23,451.84 | 64,603.84 | 67,158.19 | 50,979.35 | ||||
Cash paid for other financing activities | 339,043.34 | 805,493.44 | 765,522.04 | 454,641.95 | ||||
Sub-total of cash outflows used in | ||||||||
financing activities | 505,144.78 | 1,389,097.28 | 1,468,780.63 | 782,621.30 | ||||
Net cash flow generated from financing | ||||||||
activities | 120,552.29 | 120,527.94 | 418,292.08 | 132,394.10 | ||||
IV. | Effect on cash from changes of | |||||||
exchange rate | - | 186.16 | -245.38 | - | ||||
V. | Net increase in cash and cash | |||||||
equivalents | -26,975.87 | -6,661.15 | -56,948.12 | 39,836.75 | ||||
Balance of cash and cash equivalents at | ||||||||
the beginning of the period | 73,874.98 | 80,536.13 | 137,484.25 | 97,647.50 | ||||
VI. | Balance of cash and cash equivalents at | |||||||
the end of the period | 46,899.11 | 73,874.98 | 80,536.13 | 137,484.25 | ||||
- I-15 -
- Key Financial Indicators for the Last Three Years and the Latest Period
As at | ||||
the end of | ||||
June 2020/ | As at | As at | As at | |
January to | the end of | the end of | the end of | |
Items | June 2020 | 2019/2019 | 2018/2018 | 2017/2017 |
Current ratio (times) | 0.45 | 0.42 | 0.43 | 0.65 |
Quick ratio (times) | 0.30 | 0.27 | 0.27 | 0.36 |
Gearing ratio (%) | 56.77 | 55.61 | 52.84 | 59.23 |
EBITDA interest | ||||
coverage multiple | ||||
(times) | 8.80 | 6.66 | 5.97 | 8.16 |
Debt-to-EBITDA ratio | ||||
(times) | - | 0.17 | 0.17 | 0.17 |
Gross profit margin (%) | 11.15 | 9.65 | 8.68 | 9.07 |
Weighted average return | ||||
on equity (%) | 4.87 | 5.49 | 5.17 | 7.12 |
- In the last three years and the latest period, there is no material asset acquisition, disposal or replacement that leads to substantive changes of the Company's core businesses and productive assets.
- I-16 -
(IV) The Management's Brief Conclusion about the Financial Analysis for the Last Three Years
and the Latest Period
1. Analysis of Asset Structure
Main Assets as at the end of 2017-2019 and the end of June 2020
Unit: RMB'0,000 | ||||||||
As at | As at | As at | As at | |||||
the end of | the end of | the end of | the end of | |||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||
Current Assets: | ||||||||
Cash and cash equivalents | 402,052.11 | 324,192.18 | 283,991.51 | 307,275.57 | ||||
Held-for-trading financial assets | 123,666.63 | 152,835.34 | 42,119.93 | - | ||||
Derivative financial assets | 851.48 | 43.12 | - | - | ||||
Notes receivable | - | - | 52.23 | 1,906.63 | ||||
Accounts receivable | 18,468.25 | 29,014.33 | 59,174.80 | 12,666.28 | ||||
Receivables financing | 1,057.20 | 34.10 | - | - | ||||
Prepayments | 73,942.55 | 11,673.70 | 15,007.82 | 17,530.40 | ||||
Dividends receivable | 0.00 | 5.54 | 40.78 | 622.11 | ||||
Interests receivable | 11.62 | 1.44 | 240.22 | - | ||||
Other receivables | 163,298.73 | 116,989.02 | 118,838.98 | 30,128.24 | ||||
Proceeds from financial assets | ||||||||
purchased under agreements to | ||||||||
resell | - | - | 15,892.22 | - | ||||
Inventories | 437,559.39 | 363,978.73 | 338,538.19 | 310,221.76 | ||||
Assets classified as held for sale | - | - | - | 39.59 | ||||
Other current assets | 29,763.48 | 35,378.63 | 30,897.92 | 10,521.25 | ||||
Other current financial assets | 3,137.93 | 2,035.04 | - | - | ||||
Total current assets | 1,253,809.37 | 1,036,181.17 | 904,794.59 | 690,911.84 | ||||
- I-17 -
As at | As at | As at | As at | |||||||
the end of | the end of | the end of | the end of | |||||||
Items | June 2020 | 2019 | 2018 | 2017 | ||||||
Non-current Assets: | ||||||||||
Available-for-sale financial assets | - | - | - | 201.61 | ||||||
Other investments in equity | ||||||||||
instruments | 730.00 | 730.00 | 730.00 | - | ||||||
Other non-current financial assets | 607,907.23 | 568,809.77 | 584,452.02 | - | ||||||
Long-term receivables | 566.26 | - | - | - | ||||||
Long-term equity investments | 115,628.20 | 104,225.93 | 104,094.06 | 39,920.81 | ||||||
Investment properties | 22,532.99 | 23,145.85 | 24,399.71 | 22,668.40 | ||||||
Fixed assets | 2,158,191.95 | 2,203,355.22 | 2,030,678.44 | 1,843,772.39 | ||||||
Construction in progress | 543,704.73 | 398,187.46 | 315,874.33 | 265,675.66 | ||||||
Right-of-use assets | 13,072.84 | 13,655.11 | - | - | ||||||
Intangible assets | 1,056,449.11 | 1,062,830.63 | 1,015,000.92 | 981,936.59 | ||||||
Development expenditures | 2,636.30 | 1,966.57 | 1,025.78 | 245.39 | ||||||
Goodwill | 282,672.82 | 281,082.45 | 289,139.37 | 270,798.56 | ||||||
Long-term deferred expenditures | 3,365.25 | 3,542.79 | 4,601.81 | 3,408.17 | ||||||
Deferred income tax assets | 34,564.09 | 26,787.22 | 39,403.43 | 12,288.50 | ||||||
Other non-current assets | 106,493.27 | 91,057.10 | 75,281.15 | 79,801.04 | ||||||
Total non-current assets | 4,948,515.03 | 4,779,376.12 | 4,484,681.02 | 3,520,717.13 | ||||||
Total assets | 6,202,324.40 | 5,815,557.28 | 5,389,475.61 | 4,211,628.97 | ||||||
As at the end of 2017-2019 and the end of June 2020, the business scale continued to expand, and total assets grew year on year accordingly, reaching RMB42,116,289,700, RMB53,894,756,100, RMB58,155,572,800 and RMB62,023,244,000 respectively.
Analyzed by the asset structure, assets of the Company mainly comprise cash and cash equivalents, inventories, net fixed assets and intangible assets, while other assets have lower proportions in total assets, with some of them accounting for over 5%. As at the end of June 2020, the said four assets accounted for 6.48%, 7.05%, 34.80% and 17.03% of the total assets, respectively.
- I-18 -
2. Analysis of liabilities structure
The Company's main liability components at the end of
2017 to 2019 and the end of June 2020
Unit: RMB'0,000 | |||||||||||
At the | |||||||||||
end of June | At the | At the | At the | ||||||||
Items | 2020 | end of 2019 | end of 2018 | end of 2017 | |||||||
Current liabilities: | |||||||||||
Short-term borrowings | 678,726.58 | 315,425.75 | 362,335.20 | 78,930.00 | |||||||
Held-for-trading financial liabilities | 1,184,823.54 | 1,305,637.23 | 1,083,400.92 | 575,141.06 | |||||||
Derivative financial liabilities | 827.41 | 391.98 | - | - | |||||||
Notes payable | 86,072.55 | 82,801.63 | 63,164.27 | 38,887.80 | |||||||
Accounts payable | 203,014.20 | 202,315.98 | 197,303.22 | 176,685.03 | |||||||
Advances receivable | - | - | - | 12,721.93 | |||||||
Contract liabilities | 13,513.79 | 4,093.97 | 8,504.91 | - | |||||||
Employee salaries payable | 47,396.34 | 15,631.32 | 12,793.87 | 14,938.88 | |||||||
Taxes payable | 33,895.80 | 34,115.07 | 34,590.92 | 31,279.42 | |||||||
Interest payable | 0.00 | - | 10,035.12 | 11,057.57 | |||||||
Dividend payable | 34,411.94 | 12,395.31 | 12,395.31 | 18,886.36 | |||||||
Other payables | 276,045.41 | 219,159.28 | 304,412.26 | 104,939.50 | |||||||
Non-current liabilities due within | |||||||||||
one year | 4,519.81 | 294,968.45 | 4,191.32 | 3,899.25 | |||||||
Other current liabilities | 200,664.53 | 409.34 | - | - | |||||||
Total current liabilities | 2,763,911.91 | 2,487,345.31 | 2,093,127.33 | 1,067,366.80 | |||||||
Non-current liabilities: | |||||||||||
Long-term borrowings | 111,395.32 | 120,156.75 | 209,096.00 | 685,756.80 | |||||||
Bonds payable | 101,226.51 | 103,135.06 | 68,786.20 | 329,447.97 | |||||||
Lease liabilities | 8,906.38 | 6,593.95 | - | - | |||||||
Long-term payables | 48,686.58 | 41,014.68 | 4,515.21 | 5,988.39 | |||||||
Special payables | 507.72 | 507.72 | 345.55 | - | |||||||
Long-term salaries payables | 21.12 | 49.41 | 366.11 | 283.78 | |||||||
Accrued liabilities | 97,916.09 | 90,995.79 | 78,880.46 | 57,830.68 | |||||||
Deferred income tax liabilities | 386,212.61 | 381,862.21 | 391,661.73 | 346,273.85 | |||||||
Deferred income - non-current | |||||||||||
liabilities | 1,616.26 | 1,244.40 | 1,218.61 | 1,752.63 | |||||||
Other non-current liabilities | 870.94 | 877.70 | - | - | |||||||
Total non-current liabilities | 757,359.53 | 746,437.67 | 754,869.88 | 1,427,334.11 | |||||||
Total liabilities | 3,521,271.44 | 3,233,782.98 | 2,847,997.21 | 2,494,700.91 | |||||||
During the reporting period, with the continuous expansion of business scale of the Company, its demand for funds increased year by year while its liabilities scale continued to
- I-19 -
grow. At the end of 2017, 2018, 2019 and the end of June 2020, the total liabilities of the Company was RMB24,947,009,100, RMB28,479,972,100, RMB32,337,829,800 and RMB35,212,714,400, respectively. During the reporting period, the Company's current liabilities accounted for 42.79%, 73.49%, 76.92% and 78.49% of total liabilities, respectively.
The Company's current liabilities mainly include short-term borrowings, financial liabilities at fair value through profit or loss, accounts payable and other payables. As at the end of June 2020, the ratio of the above items to current liabilities was 19.28%, 33.65%, 5.77% and 7.84%, respectively. The Company's non-current liabilities are mainly long-term borrowings, bonds payable and deferred income tax liabilities. As at the end of June 2020, the ratio of the three items to non-current liabilities was 3.16%, 2.87% and 10.97% respectively.
3. | Cash flow analysis | ||||
Unit: RMB'0,000 | |||||
January to | |||||
Item | June 2020 | 2019 | 2018 | 2017 | |
Net cash flows from operating | |||||
activities | 209,451.57 | 418,008.07 | 415,155.82 | 369,867.94 | |
Net cash flows from investing | |||||
activities | -234,005.13 | -383,142.91 | -456,257.24 | -1,040,776.74 | |
Net cash flows from financing | |||||
activities | 100,763.72 | 2,173.98 | 6,161.29 | 796,699.25 | |
Increase in cash and cash equivalents | 77,276.19 | 38,346.00 | -32,703.56 | 124,408.93 | |
Balance of cash and cash equivalents | |||||
at the end of the period | 379,180.22 | 301,904.03 | 263,558.03 | 239,833.86 |
- Cash flows generated from operating activities
In the previous three years and the last period, net cash flows from operating activities of the Company was RMB3,698,679,400, RMB4,151,558,200, RMB4,180,080,700 and RMB2,094,515,700, respectively. In 2018, net cash flows from operating activities of the issuer increased by 12.24% over 2017, mainly due to the increase in net cash inflows generated from gold purchases and sales.
- I-20 -
- Cash flows generated from investing activities
In the previous three years and the last period, net cash flows from investing activities was RMB-10,407,767,400,RMB-4,562,572,400,RMB-3,831,429,100 and RMB-2,340,051,300, respectively. In the previous three years and the last period, net cash flows from investing activities of the Company continued to be negative, mainly due to: (1) more cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets, the amount of which in the previous three years and the last period was RMB3,801,606,700, RMB3,629,615,800, RMB4,174,635,200 and RMB2,056,634,800, respectively. The above-mentioned funds were mainly expended on land, properties, buildings, right of special tools for mine detection, carparks, gate ways and its auxiliary engineering, excavation and installation works and large-scale equipments; (2) more cash paid for other investing activities, the amount of which in the previous three years and the last period was RMB1,401,276,700, RMB789,759,900, RMB965,666,700 and RMB1,360,384,600, respectively. The above-mentioned funds were mainly expended on futures investment, gold leasing, mine environment recovery margin. Net cash flows from investment activities of the issuer was relatively low in 2017, mainly due to a large amount of cash outflows generated from investing activities as a result of acquisition of 50% equity interest in the Veladero Gold Mine.
- Cash flows generated from financing activities
In the previous three years and the last period, net cash flows from financing activities of the Company amounted to RMB7,966,992,500, RMB61,612,900, RMB21,739,800 and RMB1,007,637,200, respectively. In 2017, the higher net cash flows generated from financing activities was mainly due to an increase in cash inflows from financing activities as a result of financing for acquisition of 50% equity interest in the Veladero Gold Mine.
- I-21 -
4. Solvency analysis
The major solvency indicators of the issuer in the previous three years and the last period are shown as follows:
At the | ||||
end of June/ | At the | At the | At the | |
January to end of 2019/ end of 2018/ end of 2017/ | ||||
Item | June 2020 | in 2019 | in 2018 | in 2017 |
Current ratio (times) | 0.45 | 0.42 | 0.43 | 0.65 |
Quick ratio (times) | 0.30 | 0.27 | 0.27 | 0.36 |
Gearing ratio (%) | 56.77 | 55.61 | 52.84 | 59.23 |
EBITDA interest coverage | ||||
multiple (times) | 8.80 | 6.66 | 5.97 | 8.16 |
Debt-to-EBITDA ratio | ||||
(times) | - | 0.17 | 0.17 | 0.17 |
- Short-termSolvency
In the previous three years and the last period, the issuer's current ratio was 0.65, 0.43, 0.42 and 0.45, respectively and quick ratio was 0.36, 0.27, 0.27 and 0.30, respectively. The current ratio and quick ratio were relatively low in absolute value mainly due to set up of the strategic goal of "optimising and expanding to become one of the top ten gold mining enterprises in the world in respect of comprehensive strengths". The Company is at the stage of exploring new developments and expansion of scale. In order to explore high-quality resources, accelerate overseas acquisitions, ensure long-term production and increase competitiveness, more funds are necessary to be raised in the short term, while the related assets acquired are mainly long-term assets such as intangible assets and fixed assets.
In the previous three years and the last period, the issuer's EBITDA interest coverage multiple was 8.16, 5.97, 6.66 and 8.80 respectively, showing a volatile trend. In general, the issuer's EBITDA can cover interest expenses of the Company in full, representing an interest coverage multiple of exceeding 1.
- I-22 -
- Long-termSolvency
As at the end of the previous three years and in the last period, the Company's gearing ratio was 59.23%, 52.84%, 55.61% and 56.77%, respectively. The issuer's gearing ratio remained basically stable and within a reasonable range at the end of each period during the reporting period.
5. Profitability analysis
As a leading domestic gold production enterprise, the issuer has steadily carried on various tasks in recent years. Its various results have shown a good development trend, its economic benefits have grown steadily, and its development capabilities have been greatly improved. The Company learns and leverages the global operation management and control experience from Barrick Gold Corporation. While ensuring operation management and control of domestic subsidiaries, the Company will establish and improve management control mechanism for its overseas projects, so as to regulate supervision on overseas projects and guarantee its profitability. Adhering to the principle of "guaranteed output, guaranteed profit and reduced costs", the issuer increases efforts on Veladero project management, striving to break through the bottleneck of capacity and increase mine output through measures such as technological transformation and equipment upgrade.
Since 30 June 2017, the Company and Barrick Gold Corporation have operated the Veladero Gold Mine in Argentina jointly. Both parties recognize assets and liabilities respectively according to the proportion of 50% each as agreed in the purchase agreement, and are entitled to 50% of the products produced from and recognize 50% of the expenses incurred by the Veladero Gold Mine. This acquisition will help the Company speed up the process of internationalization, rapidly expand the reserves of mineral resources, and enhance its competitiveness in domestic and overseas markets. Upon completion of the transaction, total assets and reserves of mineral resources of the Company will be greatly increased while its overall profitability and capability against operating risks will be further improved and enhanced.
The major profitability indicators of the Company in the previous three years and the last period are shown as follows:
January to | ||||
Indicator | June 2020 | 2019 | 2018 | 2017 |
Net profit (RMB'0,000) | 130,133.98 | 142,138.60 | 108,562.99 | 119,339.11 |
Net profit attributable to | ||||
owners of the parent | ||||
company (RMB'0,000) | 115,271.69 | 128,946.75 | 102,409.35 | 113,742.38 |
Gross profit margin (%) | 11.15 | 9.65 | 8.68 | 9.07 |
Weighted average return on | ||||
equity (%) | 4.87 | 5.49 | 5.17 | 7.12 |
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6. Future business targets and sustainability of profitability
In 2020, the Company has determined the following production and operation plan: gold production of not less than 39.586 tonnes. The plan is based on the current economic situation, market conditions and the Company's operating situation. The Board will make corresponding adjustments according to future developments. The main measures are as follows:
- Strengthen production and operation management and increase the Company's economic benefits
We will fulfill the responsibilities by transmitting pressure from each level and focus on mobilizing all employees' production enthusiasm by organizing various kinds of labor competitions. Firstly, we will highlight the strengthening of production management. The Company will continue to enhance production organization, optimize production layout and exercise strict technical index management in order to constantly improve the quality and efficiency of operation and achieve quality development. Secondly, we will accelerate the construction of key projects. The Company will accelerate key projects such as the deep area of Xincheng Gold Mine and Dongfeng Mining Area of Linglong Gold Mine and the progress of production connection project, and deeply explore potentials to ensure stable improvement in the Company's production capacity. Thirdly, we will accelerate geological prospecting work. The Company will carry out mines geological exploration and strengthen mine prospecting and reserves increasing in order to possess sustainable resources and further extend the life of mines. In particular, we will conduct mine prospecting in key target areas to ensure the balance of third class reserves. Fourthly, we will conduct good operation management. The Company will further refine the appraisal of index including cash flow, net profit, asset-liability ratio and revenue margin, actively explore the incorporated reform management of trading centers, and continuously enhance the research and judgment ability of the trend of gold price so as to grasp sales opportunities flexibly and maximize profits from sales.
- Carry out quality and efficiency enhancement and raise the level of high-quality development
Firstly, we will thoroughly streamline and analyze our production process and management aspect, comprehensively promote technological and management cost reduction, and effectively control the level of cost. Secondly, we will further strengthen technology management, improve technical index, tap internal potential, broaden development space, seek benefits from technology and management, and follow the path of high-quality development. Thirdly, we will comprehensively improve our ability to reserve resources, and adhere to resource acquisition as a breakthrough in strategic implementation. The Company will expand its footprint into other provinces and abroad in reliance upon resources within the province, give full play to the role of the Canada representative office, and actively participate in global resources allocation. We will actively select high-quality projects in markets along the "One Belt and One Road" initiative and various resource-rich areas around the world, and adopt a combination of overall acquisition, equity cooperation and other methods to achieve new breakthroughs in our acquisitions.
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- Increase the efforts in technological innovation and drive the enterprise development momentum
By relying on Shandong Gold think tank and innovative platforms including three major laboratories, the Company targets to reinforce its all-round cooperation with leading enterprises in the same industry and science research institutions. Aiming at strategic, basic and cutting-edge mining fields, we will condense major technological issues and coordinate overall technical break-through projects with a target of creating great scientific research results and jointly building a national research platform. We will focus on the innovation of key and core technologies in industries such as mining, beneficiation and filling, and actively promote the transformation of research results. We will accelerate the research on comprehensive utilisation projects of tailings and focus on creating green mines. The Company will vigorously promote the application of 5G technology in the mining industry and explore a new model of "5G + smart mines".
- Accelerate the promotion of world-class demonstration mines construction and create a high development benchmark
We will focus on the construction of "ramp comprehensive execution information system" and "the big data platform based on the ROMA system of Huawei". We will also accelerate the progress promotion of projects such as smart site selection, ground pressure monitoring, industrial network renovation and the upgrading and reconstruction of coastal sightseeing zones and ecological restoration demonstration areas. The Company strives to improve the level of three-dimensional mining planning and design, automated mining, intensive production management and control, and geological resource informatization to ensure the successful completion of construction goals. We target to form a set of replicable and propagable world-class mine construction standards and experience, and become a world-class leader in "smart mines" and "ecological mining".
- Continuously consolidate the foundation for safe production and ecological and environmental protection construction, and comprehensively build a first-class corporate brand image
We will adhere to the "double zero" goal of safety and environmental protection, improve risk classification control and the construction of potential risk identification system and continue to enhance our intrinsic safety level. We will also put our green development philosophy into practice, and proactively promote construction of green mines. We will ensure that all our mines in production will be included in the national or provincial green mine list and all our smelting companies will be included in the national or provincial green factory list at the end of this year, so as to further improve our brand image of "Shandong Gold, Ecological Mining".
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IV. USE OF PROCEEDS FROM THE BOND ISSUE
The proceeds from the Bond Issue, after deducting issue expenses, are intended to be used in replenishing working capital, repaying interest-bearing debts, project constructions and other related purposes that comply with relevant laws and regulations.
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OTHER SIGNIFICANT EVENTS
1. External guarantees
As at 30 June 2020, the total amount of guarantees provided by the Company to its controlling subsidiaries was RMB3.257 billion, accounting for 12.15% of the net assets of the Company.
As at the date of this announcement, the Company does not provide any guarantee to other companies or relevant entities other than its controlling subsidiaries.
2. Pending litigation or arbitration
As at the date of this announcement, the Company has no pending litigation or arbitration which may have a significant impact on its financial conditions, results of operations, reputation, business activities and future prospects.
Announcement is hereby made.
The Board of Directors of
Shandong Gold Mining Co., Ltd.
18 September 2020
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