Who "stole" the vigor of the gold and lead of Yu Guang

As the world's largest lead smelting enterprises, has been ranked in the vitality of the eight-bright gold in 2008 to achieve business income of 7.62 billion yuan, only 6.19% year-on-year growth, and profitability is a substantial decline, net profit of only 61.2538 million yuan, down as high as 61.42%.　　　　The vigor of the gold lead in Henan is suppressed, which can be regarded as the epitome of China's nonferrous metals industry. In the last year's energy list of "new finance", Henan Yu Guang Jin Lead Co., Ltd. (Yu Guang Jin Lead, 600531.SH) was ranked 8th, its 2007 annual operating income of 7.176 billion yuan, the year-on-year growth of 55.46%.　　After a year, affected by the financial crisis, Henan Light Gold lead book is another situation. The energetic performance of the 2008 annual Henan-Guang-jin lead can be summed up in three aspects: first, the domestic and foreign economic influence produces the industry cyclical fluctuation, thus causes its operating income vigor to descend; Secondly, because of the operation of hedging, the vigor has been "shifted", from the operating income to the investment income project;　　Third, large inventory impairment of the preparation of the net profit generated negative vitality, that is, a sharp decline in year-on-year. The industry adjustment vigor transfer is affected by the global financial turmoil, 2008, the nonferrous metals price has the big margin to fall. In the face of severe market environment, Henan Light Gold lead timely adjustment business strategy, the hedging as the focus of the company's management, and actively prevent and defuse risks.　　However, due to the rapid decline of non-ferrous metal market, its inventory formation of a larger price drop, economic benefits are greatly affected.　　Although the 2008 annual operating income of Henan-Guang-jin has increased, but the actual operating results are losses. For example, the main products electrolytic lead, 2008 output of 290,300 tons, the proportion of domestic production of 9.05%, operating income of 4.456 billion yuan, but the operating cost is as high as 4.522 billion yuan, gross margin of 1.49%.　　Fortunately, through the operation of hedging, Yu-guang gold lead profitable, so as to avoid the annual loss. In the 2008 years ' investment income, the trading financial assets have confirmed the investment income as high as 107 million yuan, while the 2007 is only 11.02 million yuan, of which the investment income of overseas futures trading is 101 million yuan. In other words, for the Henan Light Gold lead, due to the decline in the price of non-ferrous metals caused by the loss of business income, through the hedging operation, in the investment income to get a certain degree of compensation.　　This can be regarded as the shift of enterprise "vigor" between different income statement projects or business modules, that is, the vigor of operating revenue into investment income or hedging.　　The prospect of increasing domestic demand we believe that the future vigor and performance of Henan-Guang-jin lead face four challenges: first, the volatility of commodity prices leads to fluctuations in income and performance, the other is the bottleneck of its own resources, and the third is the external economic recession affects exports and industry competition is fierce; four is the price The electrolytic lead production of Henan-Guang-lead is relatively stable, but due to its limited resources, the lead concentrate is completely outsourced, which is made to some extentAbout the company's lead business development and profitability. Of course, the current renewable lead in Henan light lead business prospects, will be in the future to ease a certain amount of resources pressure. As for prices upside down at home and abroad, despite the recent strong lead price performance, but the simultaneous increase in imports of lead also brings about worries.　　The reason is: at home and abroad lead price upside down, importers profitable, resulting in the recent continuous rise in import lead, not conducive to China's lead smelting enterprises.　　However, in terms of long-term trends, the vitality of the gold and lead will reappear, which is the cause of the development of the industry, but also determined by the company's own characteristics. On the one hand, the main products of Henan Light gold lead-lead, gold, silver, the future is promising. Electrolytic lead has a large part of the demand from the automotive lead-acid battery replacement, although the western consumption of such products has been reduced, but with the implementation of China's auto industry revitalization plan, domestic demand will gradually increase. At the same time, the issuance of 3G licences will also stimulate the growth in demand for communications batteries.　　As for gold and silver, according to the current data, because some economies are on the brink of recession, the global economy in 2009 a rapid recovery is difficult, but the world Economic outlook concerns the future of precious metals such as gold and silver, the risk-aversion function is strengthened, gold and silver prices are expected to remain high. On the other hand, the advantages of Yu-guang gold lead also make it in the economic downturn, in a strong cyclical non-ferrous metals industry can calmly deal with. Henan Light Gold Lead is not only the world's largest lead smelting enterprises, and China's largest silver production enterprises, but also the country's first batch of circular economy pilot units, renewable resources utilization will become the company's new economic growth point.　　At the same time, Henan Light Gold lead in the project 80kt/a melting pool smelting direct lead smelting environmental engineering construction progress, the project using self-developed special technology liquid High lead slag direct reduction process, can make smelting comprehensive energy consumption level greatly reduced. According to the introduction, Yu-Guang gold lead in the domestic cash sales, in foreign countries to settle the letter of credit. Despite the impact of the financial crisis, the main products electrolytic lead, silver, gold, sulfuric acid, zinc oxide, crude copper prices have different degrees of decline, but Henan light gold lead still has a more stable customer base, the main product production and sales rate reached more than 98% a year, the main equipment utilization rate reached more than 92%.　　All these increase the risk-resisting ability of the enterprise to some extent, and enhance the stability of vigor.　　To inventory slow-release pressure in the domestic enterprises to inventory of the "tide", at the end of 2008, Henan Light Gold lead inventory balance of 1.735 billion yuan, compared to the beginning of 2.108 billion yuan reduced 373 million yuan or 18%. The main reasons for the significant decrease of the inventory of gold and lead in Henan are the impairment of assets. 2008 Henan Light Gold lead asset impairment loss as high as 187 million yuan, and 2007 only 37.94 million Yuan, the company said this is because of the fall in product prices and to the inventory price.　　But the bigger incentive to inventory is likely to come from the financial pressures it faces. The capital pressure of Henan-Guang-jin lead is embodied in 5 aspects: first, the short-term borrowing is high.At the end of 2008, Yu-Guang gold lead short-term borrowing as high as 1.197 billion yuan, the beginning of 1.22 billion yuan. The second is the rapid increase of bills payable.　　At the end of 2008, the paper was 250 million yuan, with a huge increase of 30 million yuan at the beginning of the year. Third, the stock of money is limited.　　At the end of 2008, Yu-Guang Gold lead Monetary Fund for 431 million yuan, although compared to the beginning of the 200 million yuan increased by 231 million yuan, but mainly the final notes payable increase corresponding to the acceptance of bills of exchange margin increases, in fact, the money stock situation has not been greatly improved. Four is the accounts receivable substantial increase.　　At the end of 2008, Yu-Guang Golden lead accounts receivable 161 million yuan, increased by 86.29 million yuan earlier than the beginning, an increase of 115.9%, the main reason is that the final accounts of foreign customers not to the checkout period. Five is the futures margin also began to occupy funds.　　At the end of 2008, Henan Light Gold lead other receivables 89.4 million yuan, and the beginning of only 18.77 million yuan, the main reason is the increase in futures margin. Of course, despite the financial pressure, Yu-Guang-Jin still adhere to the cash dividend dividend policy, this is worth affirming. According to the plan of profit distribution, the Henan-Guang Jin lead scheme is based on the 228 million shares of the total share capital at the end of 2008, distributing the cash dividend of 0.5 yuan (including tax) to all the shareholders 10 shares, and distributing a total dividend of 11.41 million yuan.　　In the past 3 years, the amount of cash dividend (including tax) on gold and lead in Henan has accounted for 39.5%, 29.12% and 28.76% respectively. Henan Light Gold lead announced that the plan will focus on doing 7 jobs in 2009. Among them, the first is to actively focus on the national macroeconomic situation changes, study the price trend of non-ferrous metals, make full use of hedging and other means to avoid market risk, improve the spot market and futures sales decision-making linkage mechanism and procurement, financial linkage operation mechanism; The seventh is to continue to increase the production and development of comprehensive recovery products and new products, Especially the production of antimony, bismuth and alloy lead.　　These two content, one is facing the realistic risk control and the management adjustment, another is the company future development and the achievement increment source, deserves the high attention. (the author is a member of the Expert Group on dynamic Evaluation of new financial management)