Most Chinese lead & zinc companies expected profits to grow in 2019; Huludao Zinc Industry up 267.44-323.97 %

SHANGHAI, Feb 14 (SMM) – Most of Chinese lead and zinc miners, smelters and consumers reported positive profit growth for 2019, according to annual results released so far.

Western Mining: Profit returned to growth, 2019 net profit expected to be 1 billion yuan

The Qinghai-based company on January 13 released its preliminary performance report for 2019. It expected the net profit attributable to shareholders from January to December 2019 to be 100 billion yuan, up 148.62% year on year, as production and sales of main products improved.

The company noted in its report that it is estimated to lose 2.522 billion yuan in its long-term equity investment in Qinghai Provincial Investment Group last year, as that company devalued.

Xingye Mining: Net profit estimated to increase 141.02-187.91% in 2019

The Inner Mongolia-based company expected its net profit attributable to shareholders to be 70 million-150 million yuan for the year ended December 2019. This would increase 141.02-187.91% year on year, as it sold 51% of Old Barag Banner Tiantong Mining’s equities, 100% of Chifeng Fusheng Mining’s equities and 100% of Bairin Right Banner Juyuan Mining’s equities to Linxi County Yixin Mining Industry, for 212.88 million yuan, 1.07 million yuan, and 1 yuan, respectively.

Guocheng Mining: Lower lead, zinc prices and higher TCs to reduce 2019 net profit

The Chongqing-based company on January 10 issued its 2019 performance forecasts, saying net profit attributable to shareholders for the January to December period will decline 60.50-49.39% to 160 million-205 million yuan, as sales and settlement unit prices of its main products dropped on lower market prices and higher treatment charges.

According to the report, the company’s average sales price for lead concentrate decreased 12.52% or 1,770.72 yuan/mt in Pb content last year, while that for zinc concentrate fell 27.20% or 3,979.37 yuan/mt in Zn content.

Sichuan Hongda: Profits expected to return to growth in 2019

The company said on January 15 that it is expected to see net profit of 65 million-85 million yuan in 2019, compared to a loss of 2.7 billion yuan in 2018. Lower costs and higher sales helped the company to return to positive territory.

Relatively low purchasing price for zinc concentrate in a well-supplied market, together with producing technique improvement and energy consumption reduction, reduced production costs, while production and sales of zinc products expanded on the back of management optimisation, product portfolio adjustment and sales channel expansion. Profitability of its zinc smelting business improved last year. On December 27, the company received 2.1 million yuan from the Deyang city government for unemployment insurance subsidy, which was included in profits for 2019, the company noted in its report.

Sichuan Hongda’s investment in Sichuan Trust, holding 22.1605% of equities of that company, generated approximately 122 million yuan in 2019, 40 million yuan less than the previous year, according to the report.

Huludao Zinc Industry: Net profit expected to increase 267.44-323.97% in 2019

Liaoning province's Huludao Zinc Industry said in its preliminary report on last year’s performance that its profits are expected to grow 267.44-323.97% year on year to 195-225 million in 2019, citing higher processing fees for zinc products as a major driver of profit growth. Lower fuel prices, meanwhile, reduced smelting costs, it added.

Zhuzhou Smelter Group: 2019 net profits estimated to be 60 million to 80 million yuan

The Hunan-based company estimated to see 60 million-80 million yuan of net profit attributable to shareholders in 2019, returning to positive territory as its newly-commissioned project ramped up to designed capacity.

It noted in its report that purchase and marketing price differentials hit the highest in recent years. Preferential policies also helped the company. It received 17.75 million yuan of refunds in urban land use tax and real estate tax, and received 40 million yuan of financial subsidies for relocation.

Luoping Zinc & Electricity: Net profit estimated to increase 109.31-110.86% in 2019

The Yunnan-based company expected its net profit attributable to shareholders to be 24 million-28 million yuan in 2019, up 109.31-110.86% year on year as higher treatment charges lowered costs and due to a special government subsidy of more than 18 million yuan.

The company suffered hefty losses in 2018, as zinc prices fell and as it was required to shut for environmentally-friendly rectification.

Yuguang Gold & Lead: Net profit expected to increase 45-65% in 2019

The Henan-based company estimated its 2019 net profit attributable to shareholders to be 190.75 million-207.06 million yuan, up 45-65% year on year as gross profit of gold and silver increased.  It reduced financial costs by adjusting strategies for inventory control and financing structure. This, together with Beijing’s tax and fee cuts, also helped grow the company’s profits last year.

Narada Power: Net profit expected to increase 50-80% in 2019

The Zhejiang battery producer is estimated to see net profit grow 50-80% in 2019 to 363 million-436 million yuan, according to its annual report released on January 14. It reported increases in both operating revenue and operating performance, and good cash flow in operating activities.

Gross profit margin of lead-acid battery business increased, while revenues from lithium battery and secondary lead businesses grew, the company noted in the report. It expected that non-recurring gains and losses affected net profit by approximately 250 million yuan last year.