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[enterprise Annual report] Tin Industry first share released 2019 Annual report: tight supply in the Upper and Middle reaches of Tin City will continue in the Future
Apr 17,2020 15:08CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM4, 17 / PRNewswire-Asianet / on the evening of April 16, tin shares announced its 2019 annual report that the world's top tin company had an operating income of 42.887 billion yuan in 2019, an increase of 8.29 percent over the same period last year, and an operating profit of 1.361 billion yuan, an increase of 1.20 percent over the same period last year. It is worth noting that the company realized a non-net profit of 824 million yuan in 2019, an increase of 11.52 percent over the same period last year.

Composition of business income: (sub-industry, sub-product, sub-region)

Industry, product or region that accounts for more than 10% of the company's operating income or profit

Summary of production capacity and reserves

According to the annual report, the company produced 299800 tons of non-ferrous metals, including 72600 tons of tin, 110000 tons of copper, 114200 tons of zinc, 2596 tons of lead and 422 tons of tungsten. Among them, the company tin metal domestic market share of 48.98%, the global market share of 21.53%. With the production of 100000 tons / year zinc and 60 tons / year indium smelting project, the company already has the production capacity of zinc ingots and indium ingots, which further enriches the company's product and business structure.

The main reason for the increase in inventory of tin, tin chemical and cathode copper products in 2019 is that the production and marketing rate of this part of products decreased in 2019 compared with the same period last year. During the reporting period, with the commissioning of the annual production of 100000 tons of zinc and 60 tons of indium smelting project, the zinc concentrate produced by Hualian Zinc Indium Company not only meets the production needs of Wenshan Zinc Indium Company, but also carries on the market sale.

At present, the company has tin smelting capacity of 80, 000 tons / year, tin production capacity of 40, 000 tons / year, tin chemical production capacity of 24000 tons / year, cathode copper production capacity of 100000 tons / year, zinc smelting capacity of 100000 tons / year, indium smelting capacity of 60 tons / year.

In terms of mineral resources reserves, as of December 31, 2019, the company's reserves of various metals include 268 million tons of ore, 700100 tons of tin metal, 1.2392 million tons of copper metal, 98900 tons of lead metal, 3.9967 million tons of zinc metal, 85100 tons of tungsten metal, 2974 tons of silver and 5987 tons of indium.

In 2019, the company actively carried out tin concentrate processing trade business, optimized tin concentrate processing trade business process, actively communicated and coordinated with customs, in order to lay a solid foundation for the purpose of "using two kinds of resources and regulating two markets". The tin concentrate imported in the whole year contains 3334.70 tons of tin metal, and the re-export of tin ingots in the whole year of 2019 was 2608 tons.

The Prospect of the Future Development of the Company

The scale of China's non-ferrous metals industry ranks first in the world for more than a decade, accounting for more than 40% of the world's consumption. At present, the development of the industry has changed from a "period of rapid development" to a "period of transformation and adjustment". The growth rate of production, consumption and investment of non-ferrous metals will all slow down. However, the total consumption of non-ferrous metals in China has a large base, and the overall demand is still strong, and with the continuous deepening of China's industrialization, information technology, urbanization and agricultural modernization, especially the rapid development of energy conservation and environmental protection, new generation information technology, high-end equipment manufacturing, new energy and other strategic emerging industries, the field of non-ferrous metal consumption will be continuously broadened. Therefore, for some time to come, China's demand for major non-ferrous metals will still be in a period of growth. During the reporting period, the non-ferrous metals industry continued to operate smoothly on the whole. According to the statistics of the Ministry of Industry and Information Technology, the output of ten kinds of non-ferrous metals was 58.4159 million tons in 2019, an increase of 3.55 percent over the same period last year. Of this total, copper production was 9.78 million tons, up 10.2 percent from the same period last year, and zinc production was 6.2364 million tons, up 9.22 percent from the same period last year. According to Shanghai Nonferrous Network, tin production was 139700 tons, down 9.97 percent from the same period last year.

At present, with the slowdown of global economic growth and the intensification of trade protectionism and friction risks, the company's tin, copper and zinc industry is facing new risks and challenges. In the short term, affected by the outbreak of the global new crown epidemic, market economic activities have shrunk seriously, but in the later stage, as the epidemic gradually receded, global market economic activities tended to be normal, coupled with quantitative easing policies and large-scale fiscal stimulus policies in major economies, the demand for tin, copper and zinc market will rise steadily, and industrial development opportunities and challenges will co-exist, mainly showing the following development trends:

1. Mining and smelting, smelting and downstream consumption, adjustment of non-ferrous metal industry chain, integration and reconstruction of benefit distribution pattern.

2. With the continuous advance of the national supply-side structural reform, the legal system of environmental protection is more stringent, the requirements of green development are higher and higher, the optimization and reorganization of industries is gradually increased, and the degree of industrial concentration will be significantly improved. the factors of production will be further concentrated to large mining groups and companies, forming a new pattern in which large mining companies dominate the development of industries and improve the efficiency of resource utilization.

3. The market demand of the company's tin products is stable, and the application prospect is broad. Although the demand has declined slightly due to the influence of trade frictions and the global new crown epidemic situation in the short term, the output of upstream mines and mid-stream smelters has shrunk even more, which has formed a strong support for the tin market price. In the future, the supply in the upper and middle reaches of tin city will continue to be tight. With the rapid development of electronic products, semiconductor equipment, 5G smart phones and other advanced equipment manufacturing industry and the development of new application fields, downstream consumption will continue to grow steadily, and the medium-and long-term development of tin city will be positive.

4. The company's copper and zinc product market has been suppressed for a short time, but with the easing of trade tensions and the gradual dissipation of the new crown epidemic, the cyclical decline of non-ferrous metals has ended. Under the incentive of global quantitative easing and fiscal stimulus, including the structural adjustment, transformation and upgrading of the copper and zinc industry, improve the comprehensive recovery and utilization level of resources, take the road of high-quality development, the copper and zinc market will recover steadily in the future.

5. With the continuous progress of the national "Belt and Road" strategy, Yunnan Province is in the strategic location advantage of opening wider to South and Southeast Asia, the pace of going out has been further accelerated, and the space for international development has been further enhanced.

6. The promotion of the national "made in China 2025" and new infrastructure plan will further enhance the large-scale application of advanced equipment, manufacturing, artificial intelligence, big data, cloud computing, 5G network and application, the Internet of things and other technologies. The company's main product tin, copper and zinc will usher in the growth of demand, but also will enhance the level of production, operation and management services and operational efficiency.

For this year, tin shares are expected to have a total operating income of 43.5 billion yuan in 2020, with production of 37600 tons of tin ingots, 28500 tons of tin, 20, 000 tons of tin chemical industry, 120000 tons of cathode copper, 100000 tons of zinc ingots and 60 tons of indium ingots.

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