Comments:

The decline in zinc prices has led to a decline in performance, and the rise in the quantity and price of phosphate and compound fertilizer has helped enterprises to avoid losses. The depression of the general environment of non-ferrous metals in 2011 has led to a decline in profits in zinc smelting. At present, the structural contradictions in the domestic lead and zinc industry are still prominent, and the output of products with high added value and intensive processing is not enough. The overall technology of the industry is still relatively backward. The level of key technology and equipment needs to be improved; the concentration of enterprises is not high, the awareness of environmental protection is not strong, and large-scale, scale and standardization need to be strengthened. The increasingly severe pressure on environmental resources, especially the recent introduction of the 12th five-year Plan of Environmental Protection, adds to the hardship of these high energy consumption and pollution smelting industry. Fortunately, in the chemical industry, due to frequent international and domestic natural disasters and rising food prices since this year, the state has issued a number of policies to stimulate the enthusiasm of food and agriculture, which has had a positive impact on phosphorus chemical production. In addition, after the company completed the asset related party transaction last year, the real estate business was successfully transferred to the controlling shareholder, HTC shares not only avoided the risk of state regulation and control of the real estate industry, but also achieved considerable investment income, avoided continued losses in 2011, and improved the asset-liability structure.

Wait for the industry to recover and raise funds to expand resources for deep processing. In the second half of last year, the enterprise raised 4.5 billion yuan for the project of deep processing and comprehensive utilization of molybdenum and copper polymetallic resources and supplementary working capital. This will lead to a significant increase in the company's capacity and comprehensive upgrades. It is expected that the recovery of the industry and the gradual correction of zinc prices will bring a pick-up to the company's performance, but zinc prices may continue to be under pressure in the first quarter of this year, making it difficult to pull back to the ideal price in the short term. Companies must make greater efforts in product innovation and energy saving and consumption reduction.