Stock Code: China Molybdenum Co.Ltd(603993) stock abbreviation: China Molybdenum Co.Ltd(603993) No.: 2022011 China Molybdenum Co.Ltd(603993)
Announcement on receiving investor research
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. 1、 China Molybdenum Co.Ltd(603993) reception of investor research
Meeting time: 17:00 PM, March 15, 2022
Research method: Online teleconference
Participants: Huaxia Fund, Yinhua Fund, Jingshun Great Wall Fund, Haifutong, ICBC Credit Suisse, CCB fund, Haitong Securities Company Limited(600837)
RECEPTIONIST: Yang Xiaoying, assistant to the president, Xu Yanger, senior director of capital market and investor relations. Main research questions and replies
1. The total revenue and net profit of the company have reached a record high. Please introduce the reasons
A: according to the preliminary accounting of the company, the operating revenue during the reporting period was 173863 billion yuan, a year-on-year increase of 53.89%; The net profit attributable to the parent company was 5.106 billion yuan, a year-on-year increase of 119.26%; The net profit deducted from non return to parent amounted to 4.103 billion yuan, a year-on-year increase of 276.24%.
The increase in revenue was mainly due to the rise in market prices of copper and cobalt and the growth in the scale of base metal trading business. The growth of various profit indicators mainly benefited from the rise in the price of the company’s main products, the increase in output and the measures to reduce costs and increase efficiency.
At the group working meeting at the beginning of this year, the company determined the next step to realize the new vision of lomo according to the “three steps”, and is committed to becoming a respected, modern and world-class resource company. The company is implementing the TFM mixed ore development project to expand production, and will start the construction of KFM project in 2022. After the above project is completed, the production capacity of copper and cobalt products will double, and the company or one of the companies with large growth in similar mining enterprises in the next few years. We are full of confidence in the development of the company and hope to form common expectations for the future with investors.
In addition, in 2021, the company will complete the repurchase of the second phase of the employee stock ownership plan. In 2022, the company will launch a multi-level employee incentive scheme to promote the deep binding of the company’s management and core backbone with the company and be consistent with the interests of investors.
2. How was the company’s production in the first two months
A: according to the monthly report of internal operation, the output and sales indicators of the first two months have a good year-on-year increase. The specific increase range needs to further confirm the sales data of the first two months.
3. Logistics in South Africa
A: it is better than the roadshow of the third quarterly report in October last year. Ixm, a trading company subordinate to the company, has alleviated the logistics pressure of Durban port by opening up ports in the West and east of South Africa. However, the improvement of global logistics generally needs some time, and the company is also actively taking measures. 4. Management integration, especially the management integration of niobium and phosphorus in Brazil a: in 2021, the company promoted the mode of “China led, China Brazil integration and joint management” in lomo Brazil, which has achieved initial results. Brazil achieved good cost reduction and efficiency increase throughout the year. In 2022, more efforts will be made to promote the integrated development of the team. The company is a leading phosphate fertilizer producer in Brazil. Brazil has also put forward requirements to improve the self-sufficiency rate of chemical fertilizer from the national level. We believe that the phosphate fertilizer business in Brazil will have better development in the future.
5. Efforts made by the company on ESG
A: ESG is the core competitiveness of lomo, the cornerstone of ensuring the sustainable and stable development of the company, and the catalyst for us to promote the development of M & A. With the practice of these years, the company fully practices the operation of world-class mines in accordance with international concepts. In 2021, the company’s MSCI ESG rating was upgraded to a, which was at the same level as Rio Tinto, BHP Billiton and Anglo American resources. It was the highest rating of an international mining company with the same volume. Ixm also obtained the silver award certification of ecopodis, ranking among the top 25% in the industry. The company will disclose its environmental vision and objectives in the ESG annual report.
6. The way of cost reduction is the goal of cost reduction in the future
A: (1) strengthen technical research, reduce material consumption, implement energy-saving projects, save consumption, etc.
(2) Carry out management reform and continue to promote full centralized purchase.
(3) The specific target of cost reduction has requirements for business units in the annual budget.
