On August 31, Intime Gold announced its operating results for the first half of the year. Relying on the high-grade and profitable gold mining assets owned by Heihe Yintai, Jilin Banmiaozi and Qinghai Dachaidan, the performance in the first half of 2020 increased significantly year-on-year, and operating income was 3,802,347,900 yuan, an increase of 50.40% over the same period last year; attribution The net profit of shareholders of the listed company was RMB 610,034,500, an increase of 39.26% over the same period last year.
The main business of Yintai Gold is precious metal and non-ferrous metal mining and metal trading. It owns a total of 4 mining companies in production, including a lead-zinc mine: Yulong Mining; and three gold mines: Heihe Yintai, Jilin Banmiaozi and Qinghai Dachaidan.
In the first half of 2020, Heihe Yintai, Jilin Banmiaozi and Qinghai Dachaidan sold 3.85 tons of gold and realized a net profit of 648,708,500 yuan. The contribution rate to the company's net profit attributable to shareholders of the parent company was 86.04%.
In the first half of 2020, Yulong Mining achieved operating income of RMB 266,503,900 and net profit of RMB 30,759,600. The year-on-year decrease in net profit was mainly due to the fact that Yulong Mining was affected by the epidemic prevention and control, and the resumption of work in spring was delayed compared with previous years; in May 2020, Yulong Mining paid the mineral resource compensation fees and late fees that were owed in previous years (the original shareholders have already granted the listing in proportion Company compensation), resulting in Yulong Mining's profit in the first half of the year was lower than expected.
In addition to mining business, Yintai, through its subsidiary Yintai Shenghong, is engaged in the trading of precious metals and non-ferrous metals. In the first half of 2020, Yintai Shenghong continued to develop upstream and downstream markets and non-ferrous metal trading products. As a sales platform for the company’s mineral products, in addition to selling gold and lead concentrates, Yintai Shenghong also developed silver, copper, tin, nickel, and aluminum. , Zinc and other trade activities, and through hedging and other methods to reduce trade risks and lock in trade profits. The overseas subsidiary Singapore company has invested in place, laying a foundation for realizing domestic and foreign trade linkage and business model expansion. In the first half of 2020, the net profit was 14.3053 million yuan, an increase of 62.05% over the same period last year.
The main operating indicators for the first half of 2020 are as follows. It can be seen that operating income, net profit, and cash flow from operating activities have all achieved substantial year-on-year growth.
The gold business has made Intime's position in the capital market completely reborn, and it also brings up a question: where will the lead and zinc business go?
On September 25, 2019, Yintai planned to purchase from Dong Ying and Bai Guanghui the 83.75% equity of Guizhou Dingshengxin Mining Development Co., Ltd. (Hezhang County Zhugongtang Lead-zinc Mine) and pay a deposit of 600 million yuan.
On May 19, 2020, due to the expected disagreement between the two parties of the transaction, Intime announced the termination of this major asset restructuring, but the two parties did not negotiate a peaceful breakup. Sellers Dong Ying and Bai Guanghui refused to return the deposit and compensation for capital occupation.
After that, Yintai chose the blanking procedure. On June 1, Yintai filed an application for property preservation before arbitration to the People's Court of Yunyan District, Guiyang City. On June 18, the court ruled to seal up and freeze Dong Ying and Bai Guanghui’s total value of 629,562,630.1 yuan, and to seal and freeze the 100% equity, bank deposits, and real estate of Guizhou Dingshengxin Mining Development Co., Ltd. held by Dong Ying and Bai Guanghui. . On August 19, Yintai received the hearing notice issued by the Beijing Arbitration Commission.
Regardless of the outcome of the arbitration, the question that Intime has to answer is a strategic question. Does Intime Gold concentrate on gold?
