Dahe Newspaper, Dahe Financial Cube reporter Pei Rongrong
On the evening of August 31, Lingbao Gold Group Co., Ltd. (hereinafter referred to as "Lingbao Gold") released its 2018 interim results announcement.
In the first half of the year, Lingbao Gold and its subsidiaries produced about 6444 kg of gold, an increase of about 1884 kg over the same period last year, an increase of about 41.3% year-on-year. As of June 30, the total gold reserves and resources were about 50.02 tons and 136.08 tons respectively.
Achieved revenue of 2.880 billion yuan, an increase of about 24.7% year-on-year. The loss attributable to shareholders was 67.544 million yuan, compared with a profit of 26.45 million yuan in the same period last year, which turned from profit to loss. Basic loss per share was RMB0.08, compared to basic earnings per share of RMB0.03 in the same period last year. No dividends.
Lingbao Gold said that the group's loss in the first half of the year was mainly due to the decline in gross profit margin of the smelting segment and the increase in financing costs caused by the increase in bank loans.
Among them, the gross profit margin of the smelting segment declined, on the one hand, due to the fact that the company did not have sufficient working capital to purchase gold concentrate to maintain the high utilization rate of the smelting production facilities; on the other hand, due to the maintenance of the smelter and the upgrading of environmental protection equipment, the smelter suspended operation for about a month. The increase in financing costs was due to an increase of about 694 million yuan to 5.587 billion yuan in total bank loans during the period.
Lingbao Gold said that in the second half of the year, the company will focus on various types of mine exploration work, accelerate the construction of major projects, strictly control costs, and ensure the company's profitability. At the same time, due to the high level of risk of the company's debt level, especially in the credit crunch environment in China, the relevant high level of debt will hinder the group's ability to raise funds for future business development and its ability to continue to operate risks. On August 20, the Company issued an announcement on the sale of Lingbao Huaxin Copper Foil Co., Ltd. The successful sale of BauerXin Copper will provide Lingbao Gold with additional financial resources, reduce the Group's outstanding debt and focus on mining and smelting as its main business, but will also look for potential new investment opportunities that may arise. In addition, Lingbao Gold will ensure that the production capacity of the production plant is maximized.
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