Hong Kong, Mar 31, 2009 - (ACN Newswire) - Jiangxi Copper Company Limited ("Jiangxi Copper" or "the Company"; Stock code: 0358) announced the consolidated financial results for the year ended 31 December 2008 ("2008" or the "reporting period") of the Company and its subsidiaries (the "Group").
As at 31 December 2008, total assets of the Group reached RMB34.51 billion; Equity attributable to the equity holders of the Company amounted to approximately RMB20.75 billion, representing an increase of RMB1.21 billion over the end of 2007. Net asset per share attributable to equity holders of the Company surged RMB0.40 over the end of last year to RMB6.87.
Despite the impact of global financial crisis in 2008, the Group still realized an operating revenue of RMB53.69 billion, an increase of 24.38% or RMB10.53 billion over last year, due to remarkable increases in sales volume of self-produced copper cathode and trade volume.
Under the impact of price decline, realized net profit attributable to equity holders of the Company amounted to RMB2.29 billion, a decrease of 49.60% as compared to last corresponding period. Basic earnings per share amounted to RMB0.76. The drop in earnings is mainly attributable to the decline in product prices, increased costs of fuel and electricity, as well as increased rates of resource taxes and income taxes.
Reviewing Jiangxi Copper's 2008 annual results, Mr. Li Yihuang, the Chairman, commented, "A decline in global copper price after an upsurge was witnessed in 2008. In the first half of the reporting period, the short supply of copper cathode and depreciation of US dollar supported high copper price in London Metal Exchange. However, around the end of September, United States subprime mortgage crisis further deteriorated leading to a global financial crisis, and it rapidly affected the substantial economy. The sudden global economic downturn brought a slump in both capital market and commodity market causing a collapse in global copper price. Despite greater operating risks led by the financial crisis and the rigid market environment we faced, the Group has enhanced its comprehensive capacity through the rapid expansion in the past few years. The increase in resources reserves and the improvement of the financial position proactively pushed ahead by the Company have greatly enhanced the Group's capacity to resist risks."
During the reporting period, the Group promoted its resource development strategy, which successfully acquired copper related business from the controlling shareholder JCC, and two overseas entities, hence further expanded its resources reserve.
The additional copper metal, gold and silver reserves of the Group amounted to 6.09 million tonnes, 145 tonnes, and 1,700 tonnes respectively.
The Group's wholly owned copper metal, gold, silver, molybdenum and sulphur reserves amounted to 11.14 million tonnes, 363 tonnes, 9,098 tonnes, 0.277 million tonnes and 104 million tonnes respectively.
In accordance with the interest attributable to the Group, copper and gold reserves jointly-controlled by the Company and other entities are 4.07 million tonnes and 42.16 tonnes respectively.
The Group acquired rare metal businesses such as molybdenum, selenium, rhenium, tellurium, and bismuth from its controlling shareholder JCC, thus becoming one of the largest rare metal producers in China.
The Group greatly upgraded production capacity of its major product, copper cathode, through technology innovations. By the end of 2008, the Group's production capacity of copper cathode has exceeded 800,000 tonnes per year; by-products like gold, silver and sulfuric acid have also experienced remarkable increases in the production capacity.
With more diversified copper processing products, the Group started to expand into copper pipe, copper foil and enamelled wire fields with higher technology requirements. As a result, a more comprehensive copper processing product line has formed, boosting the production capacity of copper processing products from 370,000 tonnes to over 450,000 tonnes.
At the end of 2008, copper smelting and processing fee started to rebound. In 2009, copper treatment charge would be increased to US$75 per tonne and refinery charge would be US 7.5 cents per pound. The rise of smelting and processing fee would enhance the Company's profitability. However, the price of sulfuric acid, the by-product of refinery, experienced a steep plunge at the end of 2008, nullified any substantial consolidated income from smelting.
Looking ahead, Chairman Li expressed, "There are both crisis and opportunity in 2009. With domestic demand stimulation and revival plans for nonferrous metal sector by the PRC government, copper price decline will be buffered in short term and profound positive effects are expected for metal prices. In addition, merger and acquisition and restructuring in the resources industry in 2009 around the globe are expected to be intensified and in larger scale. The trend that, resources are concentrating toward a few mining oligarchs, would become obvious, which facilitates long-term development of the industry."
Chairman Li continued, "To seize further opportunities, the Group will strengthen its internal managementand system efficiency, so as to meet yearly production target. In the background of more investments by the government, tax reduction and revival plans for nonferrous metal sector, the Group will utilize the low tide of production factors and resources to turn crisis into opportunity. Guided by its development strategy, the Group will proactively seek opportunities to acquire enterprises whose business are closely related to the Group's business and expand at low cost. The present resources price bottom provides an opportunity for the Group to control more resources reserves. Amid the decline in prices of the materials, equipment, resources and other production materials, the Group will speed up the development and construction of internaland overseas projects. We shall continue devoting to future growth and striving for ideal returns to the shareholders."
About Jiangxi Copper Company Limited
Jiangxi Copper Company Limited was incorporated on 24 January 1997 and listed simultaneously on The Stock Exchange of Hong Kong Limited and London Stock Exchange on 12 June 1997. It is the first mining company listed abroad in China. Jiangxi Copper is the largest integrated copper manufacturer in the PRC with its operation covering mining, milling, smelting, trade and technology. www.jxcc.com
This press release is distributed by Wonderful Sky Financial Group Limited for Jiangxi Copper Company Limited.
Source: Jiangxi Copper Company Limited
Contact:
As at 31 December 2008, total assets of the Group reached RMB34.51 billion; Equity attributable to the equity holders of the Company amounted to approximately RMB20.75 billion, representing an increase of RMB1.21 billion over the end of 2007. Net asset per share attributable to equity holders of the Company surged RMB0.40 over the end of last year to RMB6.87.
Despite the impact of global financial crisis in 2008, the Group still realized an operating revenue of RMB53.69 billion, an increase of 24.38% or RMB10.53 billion over last year, due to remarkable increases in sales volume of self-produced copper cathode and trade volume.
Under the impact of price decline, realized net profit attributable to equity holders of the Company amounted to RMB2.29 billion, a decrease of 49.60% as compared to last corresponding period. Basic earnings per share amounted to RMB0.76. The drop in earnings is mainly attributable to the decline in product prices, increased costs of fuel and electricity, as well as increased rates of resource taxes and income taxes.
Reviewing Jiangxi Copper's 2008 annual results, Mr. Li Yihuang, the Chairman, commented, "A decline in global copper price after an upsurge was witnessed in 2008. In the first half of the reporting period, the short supply of copper cathode and depreciation of US dollar supported high copper price in London Metal Exchange. However, around the end of September, United States subprime mortgage crisis further deteriorated leading to a global financial crisis, and it rapidly affected the substantial economy. The sudden global economic downturn brought a slump in both capital market and commodity market causing a collapse in global copper price. Despite greater operating risks led by the financial crisis and the rigid market environment we faced, the Group has enhanced its comprehensive capacity through the rapid expansion in the past few years. The increase in resources reserves and the improvement of the financial position proactively pushed ahead by the Company have greatly enhanced the Group's capacity to resist risks."
During the reporting period, the Group promoted its resource development strategy, which successfully acquired copper related business from the controlling shareholder JCC, and two overseas entities, hence further expanded its resources reserve.
The additional copper metal, gold and silver reserves of the Group amounted to 6.09 million tonnes, 145 tonnes, and 1,700 tonnes respectively.
The Group's wholly owned copper metal, gold, silver, molybdenum and sulphur reserves amounted to 11.14 million tonnes, 363 tonnes, 9,098 tonnes, 0.277 million tonnes and 104 million tonnes respectively.
In accordance with the interest attributable to the Group, copper and gold reserves jointly-controlled by the Company and other entities are 4.07 million tonnes and 42.16 tonnes respectively.
The Group acquired rare metal businesses such as molybdenum, selenium, rhenium, tellurium, and bismuth from its controlling shareholder JCC, thus becoming one of the largest rare metal producers in China.
The Group greatly upgraded production capacity of its major product, copper cathode, through technology innovations. By the end of 2008, the Group's production capacity of copper cathode has exceeded 800,000 tonnes per year; by-products like gold, silver and sulfuric acid have also experienced remarkable increases in the production capacity.
With more diversified copper processing products, the Group started to expand into copper pipe, copper foil and enamelled wire fields with higher technology requirements. As a result, a more comprehensive copper processing product line has formed, boosting the production capacity of copper processing products from 370,000 tonnes to over 450,000 tonnes.
At the end of 2008, copper smelting and processing fee started to rebound. In 2009, copper treatment charge would be increased to US$75 per tonne and refinery charge would be US 7.5 cents per pound. The rise of smelting and processing fee would enhance the Company's profitability. However, the price of sulfuric acid, the by-product of refinery, experienced a steep plunge at the end of 2008, nullified any substantial consolidated income from smelting.
Looking ahead, Chairman Li expressed, "There are both crisis and opportunity in 2009. With domestic demand stimulation and revival plans for nonferrous metal sector by the PRC government, copper price decline will be buffered in short term and profound positive effects are expected for metal prices. In addition, merger and acquisition and restructuring in the resources industry in 2009 around the globe are expected to be intensified and in larger scale. The trend that, resources are concentrating toward a few mining oligarchs, would become obvious, which facilitates long-term development of the industry."
Chairman Li continued, "To seize further opportunities, the Group will strengthen its internal managementand system efficiency, so as to meet yearly production target. In the background of more investments by the government, tax reduction and revival plans for nonferrous metal sector, the Group will utilize the low tide of production factors and resources to turn crisis into opportunity. Guided by its development strategy, the Group will proactively seek opportunities to acquire enterprises whose business are closely related to the Group's business and expand at low cost. The present resources price bottom provides an opportunity for the Group to control more resources reserves. Amid the decline in prices of the materials, equipment, resources and other production materials, the Group will speed up the development and construction of internaland overseas projects. We shall continue devoting to future growth and striving for ideal returns to the shareholders."
About Jiangxi Copper Company Limited
Jiangxi Copper Company Limited was incorporated on 24 January 1997 and listed simultaneously on The Stock Exchange of Hong Kong Limited and London Stock Exchange on 12 June 1997. It is the first mining company listed abroad in China. Jiangxi Copper is the largest integrated copper manufacturer in the PRC with its operation covering mining, milling, smelting, trade and technology. www.jxcc.com
This press release is distributed by Wonderful Sky Financial Group Limited for Jiangxi Copper Company Limited.
Source: Jiangxi Copper Company Limited
Contact:
Wonderful Sky Financial Group Limited Ally Cheung/ Kent Lau/ Casey Tang Tel: (852)2851 1038 Fax: (852)2815 1352 E-mail: allycheung@wsfg.hk / kentlau@wsfg.hk / caseytang@wsfg.hkCopyright 2009 ACN Newswire. All rights reserved.
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