Four core competitiveness to force Pengxin resources revenue doubled

On April 27, Peng Xin Resources released the 2018 quarterly report. From January to March 2018, the operating income was 2.591 billion yuan, compared with 8.44 yuan in the same period last year, an increase of 207.05 % year-on-year; The average operating income growth rate of non-ferrous smelting industry is 15.42 %; The net profit attributable to shareholders of listed companies was 8,62.056 million yuan, compared with 8,427.76 yuan last year, an increase of 2.29 % year-on-year. The average net profit growth rate of the non-ferrous smelter industry was 91.97 %, and the company's earnings per share were 0.05 yuan.

In addition, in response to the post-inquiry letter on the 2017 annual report, Peng Xin Resources responded:

In the previous year's main business cathode copper operation, two factors have a relatively large impact on net profit, product inventory, product mining costs and selling prices. However, the consolidated balance sheet of the 2017 Annual Report showed that the closing inventory was about 711 million, which was about 570 million at the end of the previous year, an increase of 24.7 % year-on-year; The price of cathode copper in the main product during the reporting period, although there was a shock, but it was still higher than in the same period of the previous year.

On April 24, 2018, Peng Xin Resources released a report on the response to the 2017 annual report inquiry letter that showed that the increase in the cost of cathode copper mining was lower than the increase in the unit price of product sales. Based on the above two factors, it is inferred that in 2018, both the net profit of owned shareholders and the net profit of owned shareholders should be greatly increased, but the net profit of owned shareholders should increase by 2.29 %, and the net profit of owned shareholders should be negative-43.35 %, deviating from expectations.

Combined with the above factors, it is judged that: First, Pengxin Resources expects that the later price of the product inventory will have better performance, so it has not released profits in the current period; The silver current trade business that began to increase in the second half of the year has suffered losses, affecting net profits.

The core competitiveness of Pengxin resources mainly focuses on the following aspects.

1, possess high-quality mineral resources

The core assets of Pengxin Resources are located in the Congo (Golden), which is located in the world's most famous Katanga curved copper-cobalt metallogenic belt. Under the premise of integrating SMCO's existing mineral resources, Pengxin Resources actively promoted the development of mine resources, laying a certain foundation for safeguarding the ore raw materials required for Pengxin's mining production and increasing the mineral reserves of Pengxin Resources. In addition, Pengxin Resources is acquiring the assets of South Africa's Oni Gold Mine under the actual controller. It has abundant resource reserves, high gold grade, and has the natural advantages of slow dip angle and multi-mine mining. It is further enriched by existing copper metal resources. Mineral resources reserve diversified mineral resources, and strengthen the comprehensive competitiveness of the industrial production business segment.

2, master advanced production technology

The Xitulu Copper Mine owned by Pengxin Resources has been successfully produced for 6 years. The process technology is mature. The production indicators such as cathode copper output and recovery rate all meet the design requirements. It is an advanced level in the world and the products sold are hailed by the customers as "the best quality cathode copper in Africa.". During the process of copper smelting by Pengxin resource wet process, semi-self-grinding ball mill is used in the grinding stage, and the ore processing volume is large, the grinding efficiency is high, and the production cost is low. High-frequency vibration sieves are used in the grading process, and the classification efficiency is good and the cost is low. This is the first in China's colored industry. The vacuum belt filter is used in the process of solid-liquid separation, which is suitable for large-scale continuous automation production. The degree of automation is high, and the cost of manpower consumption is low. The whole production process is smooth, the production index is good, and the copper leaching rate is more than 90 %.

3, expand the upstream and downstream industrial layout

Peng Xin Resources is committed to becoming "the world's leading integrated resource service provider" and is committed to developing the entire industrial chain of mining, smelting, sales, and large-scale non-ferrous metal trade of non-ferrous metals such as copper and cobalt. Peng Xin Resources has laid out the upstream industry of power battery raw materials through the construction of a new cobalt hydroxide production line project at SMCO and investment in CleanTeQ. The reconstruction of the tailings reservoir backwater pipeline and the migration of the 10kv high-voltage line in the site of the first phase of the cobalt hydroxide production line(3000 tons of cobalt metalloid/year) project has been completed; In the site, the earth and flat foundation projects have completed about 90 % of the total project volume of the earth; Cobalt ore ground pound and raw material warehouse are under construction. The Sunrise Nickel and Cobalt Project under CleanTeQ is one of the few large-scale nickel and cobalt deposits that can be mass-produced, further ensuring the source of upstream resources. In addition, while stabilizing mining production, the deployment of new materials, trade, and financial investment business areas has been continuously accelerated. Pengxin Resources has invested in New carbon materials (graphene, carbon fiber, etc.) in the layout of China Carbon Chongqing. Through the layout of upstream and downstream industries, combined with traditional business and emerging business, it will further enrich Pengxin's resource business, greatly enhance its risk-tolerance ability, and create more profit growth points.

4, realize the talent team optimization upgrade

Peng Xin Resources has always adhered to the concept of "loyalty, integrity, talents, and good people" and established a team of talents with high comprehensive quality, comprehensive knowledge, and excellent style of work. Most senior managers of Peng Xin Resources have rich management and operation experience in the mining industry., Familiar with the international mining rules and have the ability to operate similar mines or smelting enterprises; Peng Xin Resources has a long-term working overseas, excellent loyal, smooth communication, strong implementation of the workforce, ensuring the stability of the overall production and operation; In order to meet the requirements of Pengxin's strategic transformation of resources and the rapid development of various business sectors, Pengxin Resources has also introduced a group of senior management personnel with senior experience in cross-border investment mergers and acquisitions, new materials, commodity international trade, and finance. Be prepared in terms of human resources.

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