Revenue exceeded 300 billion! Where is the "core competitiveness" of Jiangxi Copper Industry?

On March 29th, Jiangxi Copper disclosed its annual report for 2020, which showed that Jiangxi Copper achieved an operating income of 318.563 billion yuan in 2020, an increase of 32.54% over the same period last year, a five-year high; the net profit belonging to shareholders of the parent company was 2.32 billion yuan, down 5.92% from the same period last year; the output of some products reached record highs.

Six core competencies

After years of development, Jiangxi copper industry mainly covers the mining, smelting and processing of copper and gold, extraction and processing of scattered metals. Sulfur chemical industry, finance, trade and other fields, and has established a complete industrial chain integrating exploration, mining, mineral processing, smelting and processing in the fields of copper and related non-ferrous metals. It is an important production base of copper, gold, silver and sulfur chemical industry in China. At the same time, its business scope involves trade and other fields, with the following core competitive advantages:

1. Advantages of mine resources

Jiangxi Copper is the largest copper production base in China, the largest associated gold and silver production base, as well as an important sulfur chemical base. Jiangxi Copper has the largest Dexing Copper Mine and many copper mines in China. As of December 31, 2020, the 100% ownership of retained resources is about 8.744 million tons of copper, 270.3 tons of gold, 8326 tons of silver and 201000 tons of molybdenum. The resources controlled by Jiangxi Copper and other companies are approximately 4.435 million tons of copper and 52 tons of gold based on the company's interests. Jiangxi Copper holding subsidiary Hengbang Co., Ltd. and its subsidiaries have completed the reserve record of 156.57 tons of identified gold resources.

2. Business layout advantages

(1) Jiangxi Copper is the largest comprehensive copper production enterprise in China, which has formed an industrial chain with gold and copper mining, mineral processing, smelting and processing, as well as sulfur chemical industry and rare, precious and scattered metal extraction and processing as its core business. Jiangxi Copper has an annual production capacity of more than 200000 tons of copper concentrate. Hengbang, a subsidiary of Jiangxi Copper, has an annual production capacity of 50 tons of gold and 1000 tons of silver, as well as 250000 tons of electrolytic copper and 1.3 million tons of sulfuric acid.

(2) Jiangxi Copper is now the largest copper processing manufacturer in China, with an annual processing of more than 1.4 million tons of copper products.

(3) the output of cathode copper in Jiangxi Copper Industry is more than 1.6 million tons / year, and its Guixi smelter is the largest copper smelter in the world.

3. Technological advantages

Guixi smelter is the first unit in China to introduce a full set of flash smelting technology production line, the overall production technology and main technical and economic indicators have reached the international advanced level. Dexing Copper Mine is the largest modern copper mine with leading technological level in China, and it is the first to introduce international mining design planning optimization software and global positioning truck dispatching system. Hengbang has strong smelting technology, as the first professional factory to use oxygen bottom blowing smelting-reduction furnace pulverized coal bottom blowing direct reduction technology to deal with high lead complex gold concentrate, ranking first among the "Top Ten Gold smelting Enterprises in China".

4. Cost advantage

Dexing Copper Mine, owned by Jiangxi Copper, is the largest open-pit copper mine in China, and its unit cash cost is lower than the industry average; at the same time, the advantage of mine resources further ensures the self-sufficiency rate of copper concentrate, which helps the company to smooth the risk of raw material cost fluctuations. Secondly, the Guixi smelter owned by Jiangxi Copper is the largest single smelter in the world, with advanced technology and economies of scale, giving the company a more cost advantage.

5. Brand advantage

Jiangxi Copper "Guiye Brand" cathode Copper was successfully registered in LME as early as 1996 and is the first worldwide copper brand in China. Jiangxi Copper is also the first Chinese copper industry to register its cathode copper, gold and silver products in LME and LBMA. The copper testing plant based on the laboratory of Guixi smelter Center of the company is the only cathode copper testing plant recognized by LME in China, and has completed the cathode copper testing registered by many domestic enterprises in LME. Jiangxi Copper has established a long-term and good partnership with world-class mining enterprises.

6. Advantages of management and talents

Jiangxi Copper Management team has rich experience, actively participates in corporate governance for a long time, and has a professional and leading management level in the industry. In addition, Jiangxi Copper Industry also reserves a large number of mining and smelting talents, with the expansion ability and advantages of copying and operating the same type of mines or smelting enterprises.

Business objectives for 2021

2021 is the first year of the 14th five-year Plan. The main task of Jiangxi Copper Industry is to continuously improve the quality and service level of all types of products, to promote the optimization and upgrading of the industrial chain with solid reform and innovation, and to achieve a good start to the "14th five-year Plan".

The production and operation plan for 2021 is as follows: 208900 tons of copper concentrate, 1.73 million tons of cathode copper, 96 tons of gold, 1279 tons of silver, 4.82 million tons of sulfuric acid and 1.73 million tons of copper processing materials.

Specific business strategy for 2021:

(1) to promote the layout of high-quality industries. We will thoroughly implement the blueprint of the 14th five-year Plan, make every effort to improve the traditional industries of copper, gold and finance, highlight scientific and technological innovation and reform and innovation, and focus on cultivating two strategic emerging industries, namely, new materials and equipment manufacturing. We should deeply grasp the format innovation and management innovation, refine the trade and sulfur chemical business that support the development of the real industry and the production capacity of non-ferrous metals smelting, so as to consolidate the industrial foundation for the company's high-quality leapfrog development.

(2) optimize investment mergers and acquisitions. Closely follow up the undervalued high-quality companies and projects in the fields of mineral resources, high-end copper processing and new copper-based materials, seize the favorable window of M & An investment, and strive for breakthroughs. In particular, mineral resources as the fundamental and lifeline of the company's sustainable development, Jiangxi Copper will give new strong support in policy mechanism, team building and staffing.

(3) do a good job in project construction with high quality. On the basis of ensuring that the epidemic situation can be prevented and controlled, we should do a good job in the construction of key projects. Fully complete the annual construction tasks of key projects such as Jiangtong Guoxing 180000 tons / year cathode copper smelting and Wuzhong Phase III 10000 ton / day expansion project. Speed up the realization of Yinshan underground 8000 tons / day, Jiangtong Hongyuan 100000 tons / year cathode copper, copper foil company 15000 tons / year lithium copper foil, ten thousand copper environmental protection and other projects to meet the production standards. In the second quarter, we will start the construction of the Mexican slag dressing project in an all-round way, and ensure that the main project of the Harbin tungsten project will start construction in May.

(4) to build a solid bottom line for safety and development. We should do a good job in the implementation of the major risk control system, strictly implement the responsibility for risk control, give full play to the regulatory role of auditors and the board of supervisors, strengthen the management of weak links in the supply chain, continuously improve the level of risk control and the ability to deal with risks, and resolutely prevent and resolve various risks. We will continue to do a good job in the supervision of customer credit in various business units, implement measures for the normalization of exchange rate risk management and control, and strictly control the risk of business access. We will begin to establish a research and decision-making mechanism to deal with the complex and changeable international political and economic situation, further improve the risk prevention and control system for international operations, and comprehensively and effectively guard against all kinds of political, legal, financial, environmental protection and other risks in the country where the project is located.

(5) do a good job in safety and environmental protection. The responsibility for safe production and eco-environmental protection is more important than Mount Tai. Jiangxi Copper Industry will implement major decisions and arrangements for carbon peak and carbon neutralization, and promote the high-quality and great-leap-forward development of Jiang Copper with the best eco-environmental protection results and safety development trend. Jiangxi Copper Industry will fully implement the responsibility system of production safety and ecological environmental protection, improve and improve the responsibility system of clear responsibility, due diligence, supervision and accountability, build "green factories and green mines" in an all-round way, and plant a solid foundation for green development. be careful to do a good job of epidemic prevention and control from the beginning to the end, and persist in thinking, responsibility, measures and work.